Document:

1999 U.S. Incentive Stock Option Plan

			
	EXHIBIT 10.30	  	 + 49 89 8565 2600 (phone)
 + 49 89 8565 2610
fax
 www.gpc-biotech.com

		
	 	  	 GPC Biotech AG
 Postfach 1455

82143 Planegg
 Germany
 Fraunhoferstrasse 20
 82152 Martinsried/München
 Germany

  
 GPC Biotech AG

  
 1999 US INCENTIVE STOCK OPTION PLAN 
  
 ADOPTED MAY 1999 
 APPROVED BY STOCKHOLDERS MAY 12, 1999 
 EFFECTIVE AS OF SEPTEMBER 1, 1999 
  

	1.	PURPOSES. 

  

	 	(a)	The purpose of this Plan is to provide a means by which selected Employees and Directors of GPC Biotech, Inc. (the “Subsidiary”), a wholly owned subsidiary of GPC
Biotech AG Munich/Germany (the “Company”) as well as independent Advisors of the Company, including members of the Supervisory Board, residing in the U.S. (“U.S.-Advisors)” may be given an opportunity to benefit from increases in
value of the stock of the Company through the granting of (i) Incentive Stock Options, and (ii) Nonstatutory Stock Options, all as defined below. The Plan does not provide for the granting of stock appreciation rights or restricted stock.

  

	 	(b)	The Company, by means of this Plan, seeks to retain the services of persons who are now Employees or Directors of its Subsidiary as well as U.S.-Advisors of the Company, to
secure and retain the services of such persons and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Subsidiary. 

  

	 	(c)	The Company intends that the Stock Option Grants issued under this Plan shall, in the discretion of the Board of Directors (“Vorstand”) and in coordination with the
Supervisory Board (“Aufsichtsrat”) of the Company or any Committee to which responsibility for administration of the Plan has been delegated pursuant to Section 3(c), be Options granted pursuant to Section 6 hereof, including Incentive
Stock Options and Nonstatutory Stock Options. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and in such form as required pursuant to Section 6, and a separate certificate or
certificates will be issued for shares purchased on exercise of each type of Option. 

  

					
	 	  	  
 GPC Biotech
AG
  
 Amtsgericht München HRB
119 555
 Ust-ID-Nr.: DE 190 457 435
  
 Deutsche Bank AG (BLZ 700 700 10) Konto-Nr. 199 01 18
 Dresdner Bank AG (BLZ 700 800 00) Konto-Nr. 300 906 300
	  	 Vorstand:
  
 Prof. Dr. Bernd Seizinger (Vorsitzender des Vorstands)
 Dr. Elmar Maier,
 Dr. Sebastian Meier-Ewert,
 Dr. Mirko Scherer
  
 Vorsitzender des Aufsichtsrates:

 
 Dr. Michael Steinmetz

  

	2.	DEFINITIONS. 

  

	 	(a)	“Affiliate” means any subsidiary corporation of the Company, whether now or hereafter existing, as defined in Section 424(f) of the Code, including
GPC Biotech, Inc., a Delaware corporation with its seat in Monmouth Junction (New Jersey). 

  

	 	(b)	“Aktiengesetz” (abbr.: AktG) means the German Stock Corporation Act. 

  

	 	(c)	“Aufsichisrat” means the Supervisory Board of the Company. 

  

	 	(d)	“Code” means the United States Internal Revenue Code of 1986, as amended. 

  

	 	(e)	“Committee” means a Committee appointed by the Aufsichtsrat in accordance with Section 3(c) of the Plan. 

  

	 	(f)	“Company” means GPC Biotech AG, a German Aktiengesellschaft (stock corporation) with its seat in Munich/Martinsried (Germany).

  

	 	(g)	“Continuous Status as an Employee, Director; or U.S. Advisor” means the employment or relationship as an Employee, a Director or an U.S.-Advisor is
not interrupted or terminated. The Aufsichtsrat, in its sole discretion, may determine whether Continuous Status as an Employee, a Director or U.S.-Advisor shall be considered interrupted in the case of: (i) any leave of absence approved by the
Vorstand, including sick leave, military leave, or any other personal leave; or (ii) transfers between locations of the Company or between the Company and the Affiliates or their successors. 

  

	 	(h)	“Director” means a member of the Vorstand of the Company or a member of the board of directors of an Affiliate as long as he or she is not an Outside
Director. 

  

	 	(i)	“Employee” means any person, employed by the Company or any Affiliate of the Company. Neither service as a Director nor payment of a director’s
fee by the Company shall be sufficient to constitute “employment” by the Company. 

  

	 	(j)	“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 

  

	 	(k)	“Fair Market Value” means, as of any date, the value of the common stock of the Company determined as follows and in each case in a manner consistent
with the Code: 

  

	 	(1)	 If the Company’s common stock is listed or quoted on any established stock exchange or a national market system, including without limitation the Neue
Markt of Frankfurt Stock Exchange, the Nasdaq National Market or The Nasdaq SmallCap, the Fair Market Value of a share of common stock shall be the closing sale price for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system (or, if the Company’s common stock is listed or quoted on more than one such 

  

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system or exchange, the exchange or system where the initial public offering was placed, as reported in the Wall Street Journal or such other source as the
Aufsichtsrat deems reliable, or 

  

	 	(2)	In the absence of an established market for the Company’s common stock, the Fair Market Value shall be determined in good faith by the Aufsichtsrat.

  

	 	(l)	“Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder. 

  

	 	(m)	“Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 

  

	 	(n)	“Option” means a stock option granted pursuant to the Plan. 

  

	 	(o)	“Optionee” means any Employee, Director or U.S.-Advisor who holds an outstanding Option. 

  

	 	(p)	“Outside Director” means a Director who (i) is not a current employee of the Company or an Affiliate or an “affiliated corporation” (within
the meaning of the Treasury regulations promulgated under Section 162(m) of the Code), (ii) is not a former employee of the Company or an Affiliate, or an “affiliated corporation” receiving compensation for prior services (other than
benefits under a tax qualified pension plan), (iii) has not been an officer of the Company or an Affiliate or an “affiliated corporation” at any time, (iv) is not currently receiving direct or indirect remuneration from the Company or an
Affiliate of an “affiliated corporation” for services in any capacity other than as a Director, (v) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code and (vi) is otherwise considered a
“non-employee director” for purposes of Rule 16b-3 under the Exchange Act. 

  

	 	(q)	“Plan” means this 1999 US Incentive Stock Option Plan, 

  

	 	(r)	“Registered Company” means a Company that has a class of equity securities registered pursuant to Section 12 of the Exchange Act.

  

	 	(s)	“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the
Plan. 

  

	 	(t)	“Stock Option Grant” means any Option right granted under the Plan. 

  

	 	(u)	“Stock Option Agreement” means a written agreement between the Company and a holder of a Stock Option Grant evidencing the terms and conditions of an
individual Stock Option Grant. Each Stock Option Agreement shall be subject to the terms and conditions of the Plan. 

  

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	 	(v)	“Subsidiary” means GPC Biotech, Inc., a wholly owned subsidiary of the Company, incorporated under the laws of Delaware with its business location in
Monmouth Junction, NJ. 

  

	 	(w)	“U.S.-Advisor” means an independent Advisor of the Company, including a member of the Aufsichtsrat of the Company, residing in the U.S.

  

	 	(x)	“Vorstand” means the Board of Directors of the Company. 

  

	3.	ADMINISTRATION. 

  

	 	(a)	The Plan shall be administered by the Vorstand in accordance with the respective resolutions of the Company’s stockholders and, where applicable, in coordination with
the Aufsichtsrat and internal guidelines of the Company, if any, unless and until the Vorstand in coordination with the Aufsichtsrat delegates administration to a Committee, as provided in Section 3(c). 

  

	 	(b)	Notwithstanding subparagraph (a) above, the Vorstand shall have the power subject to and within the limitations of the express provisions of the Plan:

  

	 	(1)	To determine from time to time which of the persons eligible under the Plan shall be granted Stock Option Grants; when and how each Stock Option Grant shall be granted;
whether a Stock Option Grant will be an Incentive Stock Option, a Nonstatutory Stock Option or a combination of the foregoing; the provisions of each Stock Option Grant granted (which need not be identical), including the time or times when a person
shall be permitted to receive stock pursuant to a Stock Option Grant and the number of shares with respect to which a Stock Option Grant shall be granted to each such person. 

  

	 	(2)	To construe and interpret the Plan and Stock Option Grants under it, and to establish, amend and revoke rules and regulations for its administration. The Vorstand, in the
exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Option Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. All decisions by the
Vorstand shall be made in the Vorstand’s sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Option. No Director or person acting pursuant to the authority delegated by the
Vorstand shall be liable for any action or determination relating to or under the Plan made in good faith. 

  

	 	(3)	To amend the Plan or a Stock Option Grant as provided in Section 12. 

  

	 	(c)	 To the extent permitted by applicable law, the Vorstand in coordination with the Aufsichtsrat may delegate administration of the Plan to a committee or
committees (“Committee”) of one (1) or more persons. If the Company shall be a Registered Company, a Committee may consist solely of two (2) or more Outside 

  

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Directors. If administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan, the powers theretofore
possessed by the Vorstand (and references in this Plan to the Vorstand shall thereafter be to the Committee). The Vorstand in coordination with the Aufsichtsrat may abolish the Committee at any time and revert in the Vorstand the administration of
the Plan. 

  

	4.	SHARES SUBJECT TO THE PLAN. 

  

	 	(a)	Subject to the respective resolutions of the Company’s stockholders as subject to the provisions of Section 11 relating to adjustments upon changes in stock, the maximum
number of shares of Common Stock that may be issued pursuant to Stock Option Grants made under the Plan may not exceed the lesser of (i) 15,000 shares or (ii) the corresponding number of shares that can be issued according to existing
conditional and/or authorized capital which, from time to time, has been or will be created by a resolution of the Company’s stockholders according to subparagraph (b). If any Stock Option Grant shall for any reason expire or otherwise
terminate, in whole or in part, without having been exercised in full, the stock not acquired under such Stock Option Grant shall revert to and again become available for issuance under the Plan subject, however, in the case of Incentive Stock
Options, to any limitation required under the Code. 

  

	 	(b)	The stock subject to the Plan may be new shares which will be issued by way of capital increase using up conditional and/or authorized capital which has been created or is to
be created by a resolution of the Company’s stockholders in due time in order to satisfy the Company’s obligations under the Plan. The provisions of the Aktiengesetz, in particular Sections 192 para. 2 cif. 3, 193 para. 2 cif. 4, 202 para.
3 AktG, have to be obeyed. However, an exercised Option subject to the Plan may be satisfied with reacquired shares, bought on the market or otherwise in accordance with Section 71 AktG. 

  

	5.	ELIGIBILITY. 

  

	 	(a)	Incentive Stock Options may be granted only to Employees and shall be subject to and construed consistently with the requirements of Section 422 of the Code. Stock Option
Grants other than Incentive Stock Options may be granted only to Employees, Directors and U. S.-Advisors. The Company shall have no liability to an Employee, or any other party, if an Option (or any part thereof) which is intended to be an Incentive
Stock Option is not an Incentive Stock Option. 

  

	 	(b)	 No Employee shall be eligible for the grant of an Incentive Stock Option if, at the time of grant, such person owns (or is deemed to own pursuant to Section
424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of any of its Affiliates (a “10% Stockholder”) unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of such stock at the date of 

  

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grant and the Option is not exercisable after the expiration of five (5) years from the date of grant. 

  

	 	(c)	Subject to the provisions of Section 11 relating to adjustments upon changes in stock, no person shall be eligible to be granted Options covering more than five thousand
(5,000) shares of the Company’s common stock in any calendar year. This Section 5(c) shall not apply until the Company becomes a Registered Company and then shall not apply until (i) the earliest of: (A) the first material modification of the
Plan (including any increase to the number of shares reserved for issuance under the Plan in accordance with Section 4) as determined under Section 162(m) of the Code and the rules and regulations promulgated thereunder; (B) the issuance of all of
the shares of common stock reserved for issuance under the Plan; (C) the expiration of the Plan; or (D) the first meeting of stockholders at which directors are to be elected that occurs after the close of the third calendar year following the
calendar year in which the Company first becomes a Registered Company; or (ii) such other date required by Section 162(m) of the Code and the rules and regulations promulgated thereunder. 

  

	6.	OPTION PROVISIONS. 

  
 Each Option shall be evidenced by a written instrument in such form as the Vorstand shall determine and shall contain such terms and conditions as the
Vorstand in co-ordination with the Aufsichtsrat shall deem appropriate. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the
substance of each of the following provisions: 
  

	 	(a)	Term. Each Option shall be exercisable at such times and subject to such terms as the Vorstand may specify in the applicable Stock Option Grant, provided, however,
that no Option shall be exercisable after the expiration of ten (10) years from the date it was granted. 

  

	 	(b)	Price. The Vorstand shall establish the exercise price at the time each Option is granted and shall specify it in the applicable Stock Option Grant, provided however,
that, except as provided in Section 5(b), the exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the Average Fair Market Value of the stock subject to the Option of the last five bank working days on
the date the Option is granted. Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than that set forth in the preceding sentence if such Option is
granted pursuant to an assumption or substitution for another Option in a manner satisfying the provisions of Section 424(a) of the Code. 

  

	 	(c)	 Consideration. According to applicable German Law, the exercise price (strike price) of stock acquired pursuant to an Option can only be paid to the
Company, 

  

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at the latest, when the Option is exercised either (i) in cash (EURO), or (ii) by money transfer onto an account of the Company with a (German or
international) bank residing in Germany. Any other means of payment or payment in kind is prohibited according to Section 199 para. 1, 54 para. 3, 36 para. 2 AktG. Details of payment at exercise are regulated in the Exercise Note that is attached
hereto as Exhibit 1. 

  

	 	(d)	Transferability. An Incentive Stock Option shall transferable except by will or by the laws of descent and distribution, and shall be exercisable during the lifetime
of the person to whom the Option is granted only by such person. Notwithstanding the foregoing, the person to whom an Incentive Stock Option Agreement is granted may, by delivering written notice to the Company, in a form satisfactory to the
Company, designate a third party who, in the event of the death of the Optionee, shall thereafter be entitled to exercise the Option. 

  

	 	(e)	Vesting. The total number of shares of stock subject to an Option may, but need not, be allotted in periodic installments (which may, but need not, be equal). The
Stock Option Agreement may provide that from time to time during each of such installment periods, the Option, notwithstanding Section 6(i), may become exercisable (“vest”) with respect to some or all of the shares allotted to that period,
and may be exercised with respect to some or all of the shares allotted to such period and/or any prior period as to which the Option became vested but was not fully exercised. The Option may be subject to such other terms and conditions on the time
or times when it may be exercised (which may be based on performance or other criteria according to the then applicable resolution of the Company’s stockholders) as the Vorstand in coordination with the Aufsichtsrat may deem appropriate.

  

	 	(f)	 Termination of Employment or Relationship as a Director or a U.S-Advisor. In the event an Optionee’s Continuous Status as an Employee, Director
or U.S.-Advisor terminates (other than upon the Optionee’s death or disability, as defined below), the Optionee may exercise his or her Option to the extent that the Optionee was entitled to exercise it according to Sections 6(e), 6(i), and
6(j) at the date of termination but only within such period of time ending on the earlier of (i) the date three (3) months after the termination of the Optionee’s Continuous Status as an Employee, Director or U.S.-Advisor (or such longer or
shorter period as specified in the Stock Option Agreement) or (ii) the expiration of the term of the Option as set forth in the Stock Option Agreement. However, notwithstanding the foregoing, should the date of termination be prior to that of the
expiration of the two-year waiting period mentioned in Section 6(i), the Optionee may exercise his or her Option at the date of expiration of such waiting period but only within three (3) months after the expiration of the two-year waiting period;
provided, however, that, unless otherwise provided in the Code or the Treasury regulations thereunder, any such Option which was intended to be an Incentive Stock Option which is exercised at any time after three (3) months of the termination of the
Optionee’s Continuous Status as an Employee shall no longer qualify as an Incentive Stock Option, but shall be treated as, and have the consequences of, a 

  

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Nonstatutory Stock Option. If the Optionee does not exercise his or her Option within the time required, the Option shall terminate, and the shares covered
by such Option shall revert to and again become available for issuance under the Plan subject, however, in the case of Incentive Stock Options to any limitation required under the Code. 

  

	 	(g)	Disability of Optionee. In the event an Optionee’s Continuous Status as an Employee, Director or U. S.-Advisor terminates as a result of the Optionee’s
disability (within the meaning of Section 22(e)(3) of the Code), the Optionee may exercise his or her Option to the extent that the Optionee was entitled to exercise it according to Sections 6(e), 6(i), and 6(j) at the date of termination, but only
within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer or shorter period as specified in the Stock Option Agreement ) or (ii) the expiration of the term of the Option as set
forth in the Stock Option Agreement; provided, however, should the date of termination be prior to that of the expiration of the two-year waiting period mentioned in Section 6(i), the Optionee may exercise his or her Option at the date of expiration
of such waiting period but only within the later of three (3) months after the expiration of the two-year waiting period or twelve (12) months following such termination; provided further, however, that, unless otherwise provided in the Code or the
Treasury regulations thereunder, any such Option which was intended to be an Incentive Stock Option which is exercised at any time after one year of the termination of the Optionee’s Continuous Status as an Employee shall no longer qualify as
an Incentive Stock Option but shall be treated as, and have the consequences of, a Nonstatutory Stock Option. If, at the date of termination, the Optionee is not entitled to exercise his or her entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance under the Plan subject, however, in the case of Incentive Stock Options to any limitations under the Code. If, after termination, the Optionee does not exercise his or her
Option within the time specified herein, the Option shall terminate, and the shares covered by the unexercisable portion of the Option shall revert to and again become available for issuance under the Plan subject, however, in the case of Incentive
Stock Options to any limitations under the Code. 

  

	 	(h)	 Death of Optionee. In the event of the death of an Optionee during, or within a period specified in the Option after the termination of, the
Optionee’s Continuous Status as an Employee, Director or U.S.-Advisor, the Option may be exercised to the extent the Optionee was entitled to exercise it according to Sections 6(e), 6(i), and 6(j) at the date of death by the Optionee’s
estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionee’s death pursuant to Section 6(d), but only within the period ending on the earlier of
(i) the date eighteen (18) months following the date of death (or such longer or shorter period as specified in the Stock Option Agreement) or (ii) the expiration of the term of such Option as set forth in the Stock Option Agreement. However, should
the date of termination be prior to that of the expiration of the-two-year waiting period 

  

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mentioned in Section 6(i), the Optionee may exercise his or her Option at the date of expiration of such waiting period but only within the later of three
(3) months after the expiration of the two-year waiting period or eighteen (18) months following such termination. If, at the time of death, the Optionee was not entitled to exercise his or her entire Option, the shares covered by the unexercisable
portion of the Option shall revert to and again become available for issuance under the Plan subject, however, in the case of Incentive Stock Options to any limitations under the Code. If, after death, the Option is not exercised within the time
specified herein, the Option shall terminate, and the shares covered by such Option shall revert to and again become available for issuance under the Plan subject, however, in the case of Incentive Stock Options to any limitations under the Code.

  

	 	(i)	Exercise. Before any Option subject to the Plan may be exercised according to Section 193 para. 2. cif. 4 AktG a mandatory minimum waiting period of two years, counted
as of the date of the Stock Option Grant, has to be observed. No shares shall be issued before the aforementioned waiting period has expired. This waiting period shall also apply if and when authorized capital is used for the issuing of shares.

  
 The Option granted hereunder shall in any case
not be exercisable unless and until the price for one share of the Company has exceeded on five bank working days within a period of one month before the Exercise 15% of the price according to Sec. 6(b) and stated in the Stock Option Agreement. The
aforementioned percentage is applicable for the first year after the 2-year waiting period has lapsed and is increased by 5% for each of the following years. 
  

	 	(j)	Exercise of Options. Options may be exercised by returning the original option certificate and by delivery to the Company of a written notice of exercise (Exercise
Note as attached hereto as Exhibit 1) signed by the proper person or by any other form of notice approved by the Vorstand together with payment in full as specified in Section 6(c) for the number of shares for which the Option is exercised.

  
 Furthermore, the Option may be exercised after
the expiration of the two-year waiting period in four designated exercise periods lasting one month each and beginning on the third bank working day after publication of the quarterly reports. 
  
 Any exercise during the period of time from the day on which the Company
announces an offer to all of its stockholders to acquire new shares or partial debentures with convertible or option rights by letter to all stockholders or by publication in the official stock exchange gazette, up to the day on which the shares of
the Company bearing a pre-emptive right are officially quoted at a stock exchange in Germany on which day the shares of the company were initially publicly offered as “ex-acquisition right” for the first time is prohibited. 
  

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 Details of the exercise procedure are regulated in the Exercise Note which is attached hereto as
Exhibit 1. 
  

	 	(k)	Right of Repurchase. The Option may, but need not, include a provision whereby the Company may elect, prior to such time as it becomes a Registered Company or when
Fair Market Value is required to be determined pursuant to clause (1) of Section 2(k), to repurchase all or any part of the vested shares exercised pursuant to the Option; provided, however, that (i) such repurchase right shall be exercisable only
within (A) the ninety (90)-day period following the last date upon which the Option could have been exercised by the Optionee, or (B) such longer period as may be agreed to by the Company and the Optionee and (ii) such right shall be exercisable
only for cash for the shares at a repurchase price equal to the greater of (A) the stock’s Fair Market Value at the time of such termination, or (B) the purchase price paid for such shares by the Optionee. 

  

	 	(l)	Right of First Refusal. The Option may, but need not, include a provision whereby the Company may elect, prior to such time as it becomes a Registered Company or when
Fair Market Value is required to be determined pursuant to clause (1) of Section 2(k), to exercise a right of first refusal following receipt of notice from the Optionee of the intent to transfer all or any part of the shares exercised pursuant to
the Option. 

  

	 	(m)	Initial Public Offering. Each Optionee, for as long as any shareholder of the Company who had previously been an Optionee, may be restricted from selling shares in
connection with the Company’s initial public offering or a subsequent public offering of shares by the Company, subject to the same restrictions should he exercise his Options during the period within which such former Optionee is so
restricted. 

  

	 	(n)	Vorstand Discretion. Except as otherwise provided in the Plan, each Stock Option Grant may be made alone or in relation to any other Stock Option Grant. The terms of
each Stock Option Grant need not be identical, and the Vorstand need not treat Optionees uniformly. Stock Option Grants to members of the Vorstand and to US advisors will be effected by approval of the Aufsichtsrat. 

  

	7.	CANCELLATION AND RE-GRANT OF OPTIONS. 

  

	 	(a)	 The Vorstand in coordination with the Aufsichtsrat shall have the authority to effect, at any time and from time to time, (i) the repricing of any
outstanding Options under the Plan and/or (ii) with the consent of the affected holders of Options, the cancellation of any outstanding Options under the Plan and the grant in substitution therefor of new Options under the Plan covering the same or
different numbers of shares of stock, but having an exercise price per share not less than one hundred percent (100%) of the Fair Market Value in the case of an Incentive Stock Option, or, in the case of a 10% Stockholder (as described in Section
5(b) and to the extent provided for in Section 5(b)), not less than one hundred ten percent (110%) of the Fair Market Value per share of stock on the 

  

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new grant date. Notwithstanding the foregoing, the Vorstand in coordination with the Aufsichtsrat may grant an Option with an exercise price lower than that
set forth above if such Option is granted as part of a transaction to which section 24(a) of the Code applies. 

  

	 	(b)	Shares subject to an Option canceled under this Section 7 shall continue to be counted against the maximum award of Options permitted to be granted pursuant to Section 5(c)
of the Plan. The repricing of an Option under this Section 7, resulting in a reduction of the exercise price, shall be deemed to be a cancellation of the original Option and the grant of a substitute Option. In the event of such repricing, both the
original and the substituted Options shall be counted against the maximum awards of Options permitted to be granted pursuant to Section 5(c) of the Plan. The provisions of this Section 7(b) shall be applicable only to the extent required by Section
162(m) of the Code. 

  

	 	(c)	In case of a capital increase out of retained earnings by the Company, any existing conditional capital will be increased according to Section 218 AktG in the same ratio as
the Company’s share capital, instead of a deduction of the exercise price. The right of an Option holder to purchase stock the Company, at the point in time of exercise, will increase in the same ratio the Company’s share capital increase.

  

	 	(d)	In case of a share increase (stock dividend) any existing conditional capital will be increased according to Section 218 AktG in the same ratio as the Company’s share
capital. The exercise price will be deducted as follows: 

  

	 	(e)	The deduction of the exercise price will be calculated using following formula: 

  
 KA – B 
 E =      –––––––– 
 V
+1 
  
 Meaning: 
  

			
	 E =
	  	deduction of the exercise price due to section 6 (b)
	 KA =
	  	fair market value of the stock or the closing price for such stock before the change in capital
	 B =
	  	offer price for the new stock
	 V =
	  	ratio of subscription of the new stock

  

	8.	COVENANTS OF THE COMPANY. 

  

	 	(a)	During the terms of the Option, the Company shall keep available sufficient conditional and/or authorized capital required to satisfy such Stock Option Grants.

  

	 	(b)	 The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required to issue and
sell shares of stock upon exercise of the Stock Option Grant; provided, however, that this undertaking shall not require the Company to register under the 

  

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Securities Act of 1933, as amended (the “Securities Act”) either the Plan, any Stock Option Grant or any stock issued or issuable pursuant to any
such Stock Option Grant. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful issuance and sale of stock under the
Plan, the Company shall be relieved from any liability for failure to issue and sell stock upon exercise of such Stock Option Grants unless and until such authority is obtained. 

  

	9.	USE OF PROCEEDS FROM STOCK. 

  
 Proceeds from the sale of stock pursuant to Stock Option Grants shall
constitute capital reserves of the Company: 
  

	10.	MISCELLANEOUS. 

  

	 	(a)	The Vorstand in coordination with the Aufsichtsrat shall have the power to accelerate the time at which a Stock Option Grant may first be exercised or the time during which a
Stock Option Grant or any part thereof will vest pursuant to Section 6(e), notwithstanding the provisions in the Stock Option Grant stating the time at which it may first be exercised or the time during which it will vest. 

 

	 	(b)	Neither an employee, Director or U.S.-Advisor nor any person to whom a Stock Option Grant is transferred under Section 6(d) shall be deemed to be the holder of, or to have
any of the rights of a holder with respect to, any shares subject to such Stock Option Grant unless and until such person has satisfied all requirements for exercise of the Stock Option Grant pursuant to its terms. Notwithstanding the foregoing, in
the event the Company effects a split of its common stock by means of a stock dividend and the exercise price of and the number of shares subject to such Option are adjusted as of the date of distribution of the dividend (rather than as of the
record date for such dividend), then an Optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be entitled to receive, on the distribution date, the stock dividend with respect to the shares
of common stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record date for such stock dividend. 

  

	 	(c)	Nothing in the Plan or any instrument executed or Stock Option Grant granted pursuant thereto shall confer upon any Employee, Director or U.S.-Advisor or other Optionee any
right to continue in the employment of the Company or any Affiliate (or to continue acting as a Director) or shall affect the right of the Company or any Affiliate to terminate the employment of any such person with or without cause.

  

	 	(d)	 For so long as the Code provides, to the extent that the aggregate Fair Market Value (determined at the time of grant) of stock with respect to which
Incentive Stock Options are exercisable for the first time by any Option holder during any 

  

 12 

	 	 
calendar year under all stock plans of the Company and its Affiliates exceeds one hundred thousand dollars ($100,000), the Options or portions thereof which
exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 

  

	 	(e)	The Company may require any person to whom an Option is granted, or any person to whom an Option is transferred pursuant to Section 6(d), as a condition of exercising or
acquiring stock under any Stock Option Grant, (i) to give written assurances satisfactory to the Company as to such person’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably
satisfactory to the Company who is knowledgeable and experienced in financial and business matters, and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Option
Grant; and (ii) to give written assurances satisfactory to the Company stating that such person is acquiring the stock subject to the Stock Option Grant for such person’s own account and not, with any present intention of selling or otherwise
distributing the stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (i) the issuance of the shares upon the exercise or acquisition of stock under the Stock Option Grant has been
registered under a then currently effective registration statement under the Securities Act, or (ii) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances
under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities
laws, including, but not limited to, legends restricting the transfer of the stock. 

  

	 	(f)	To the extent provided by the terms of a Stock Option Agreement, the person to whom an Option is granted must satisfy any federal, state or local tax withholding obligation
relating to the exercise or acquisition of stock under the Plan by any of the following means or by a combination of such means: (i) tendering a cash payment; (ii) authorizing the Company or Subsidiary to withhold shares from the shares of the
common stock otherwise issuable to the participant as a result of the exercise or acquisition of stock under the Plan; or (iii) delivering to the Company or Subsidiary owned and unencumbered shares of the common stock of the Company. Payment of such
withholding obligation shall be made no later than the date of the event creating the tax liability. 

  

	11.	ADJUSTMENTS UPON CHANGES IN STOCK. 

  

	 	(a)	 If any change is made in the stock subject to the Plan, or subject to any Stock Option Grant, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other
transaction not involving the receipt of consideration by the Company), the Plan 

  

 13 

	 	 
will be appropriately adjusted in the class(es) and maximum number of shares subject to the Plan pursuant to Section 4(a) and the maximum number of shares
subject to award to any person during any calendar year pursuant to Section 5(c), and the outstanding Stock Option Grants will be appropriately adjusted in the class(es) and number of shares and price per share of stock subject to such outstanding
Stock Option Grants. Such adjustments shall be made by the Vorstand in coordination with the Aufsichtsrat, the determination of which shall be final, binding and conclusive. The conversion of any convertible securities of the Company shall not be
treated as a “transaction not involving the receipt of consideration by the Company”. 

  

	 	(b)	In the event of: (i) a dissolution, liquidation, or sale of all or substantially all of the assets of the Company; (ii) a merger or consolidation in which the Company is not
the surviving corporation but the shares of the Company’s common stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; or (iv) the
acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the Exchange Act or any other security laws, or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or
maintained by the Company or any Affiliate of the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act or any other security laws, or comparable successor rule) of securities of the Company
representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors, then: (i) any surviving or acquiring corporation shall assume Stock Option Grants outstanding under the Plan or shall substitute
similar Stock Option Grants for those outstanding under the Plan, then the Vorstand shall, upon written notice to the Optionees, provide that all then unexercised Options will become exercisable in full as of a specified time prior to the event and
will terminate immediately prior to the consummation of such event, except to the extent exercised by the Optionees before the consummation of such event; provided, however, that if upon the occurrence of such event, the holders of common stock will
receive upon consummation thereof a cash payment for each share of common stock surrendered (the “Acquisition Price”), then the Vorstand may instead provide that all outstanding Options shall terminate upon consummation of such event and
that each Optionee shall receive, in exchange therefor, a cash payment equal to the amount (if any) by which (A) the Acquisition Price multiplied by the number of shares of common stock subject to such outstanding Options (whether or not then
exercisable), exceeds (B) the aggregate exercise price of such Options. 

  

	 	(c)	Subparagraph (a) and (b) are subject to the provisions of the German Stock Corporation Act. 

  

	12.	AMENDMENT OF THE PLAN AND STOCK OPTION GRANTS.

  

	 	(a)	 The Vorstand in coordination with the Aufsichtsrat at any time, and from time to time, may amend the Plan and/or some or all outstanding Stock Option Grants

  

 14 

	 	 
granted under the Plan. However, except as provided in Section 11 relating to adjustments upon changes in stock, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval is necessary for the Plan to satisfy the requirements of the Aktiengesetz as well as of Section 422 of the Code, or any security laws or any Nasdaq or securities exchange
listing requirements and provided, further, that to the extent required by Section 162(m) of the Code, no Stock Option Grant granted to a participant designated as subject to Section 162(m) by the Vorstand after the date of such amendment shall
become exercisable, realizable or vested, as applicable, to such Stock Option Grant (to the extent that such amendment to the Plan was required to grant such Stock Option Grant to a particular Optionee), unless and until such amendment shall have
been approved by the Company’s stockholders as required by Section 162(m) (including the vote required under Section 162(m)). 

  

	 	(b)	The Vorstand in coordination with the Aufsichtsrat may in its discretion submit any other amendment to the Plan for stockholder approval, including, but not limited to,
amendments to the Plan intended to satisfy the requirements of the Aktiengesetz and/or Section 162(m) of the Code and the regulations promulgated thereunder regarding the exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers. 

  

	 	(c)	It is expressly contemplated that the Vorstand in coordination with the Aufsichtsrat may amend the Plan in any respect the Vorstand deems necessary or advisable to provide
eligible Employees, Directors or U.S.-Advisors with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith. 

  

	 	(d)	Rights and obligations under any Option granted before amendment of the Plan shall not be impaired by any Plan amendment unless the Company requests the consent of the person
to whom the Stock Option Grant was granted and such person consents in writing. 

  

	 	(e)	The Vorstand in coordination with the Aufsichtsrat at any time, and from time to time, may amend the terms of any one or more Stock Option Grant; provided, however, that the
rights and obligations under any Stock Option Grant shall not be impaired by any such amendment unless (i) the Company requests the consent of the person to whom the Stock Option Grant was granted and (ii) such person consents in writing.

  

	13.	TERMINATION OR SUSPENSION OF THE PLAN. 

  

	 	(a)	The Vorstand in coordination with the Aufsichtsrat may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the last business day
of March 31, 2010. No Options may be granted under the Plan while the Plan is suspended or after it is terminated. 

  

 15 

	 	(b)	Rights and obligations under any Option granted while the Plan is in effect shall not be impaired by suspension or termination of the Plan, except with the consent of the
person to whom the Stock Option Grant was granted. 

  

	14.	EFFECTIVE DATE OF PLAN. 

  
 The Plan shall become effective as determined by a resolution of the Company’s stockholders which shall be passed
within twelve (12) months before or after the date the Plan is adopted by the Vorstand and the Aufsichtsrat; provided, however, that no Stock Option Grant granted to an Optionee designated by the Vorstand as subject to Section 162(m) of the Code
shall become exercisable, vested or realizable, as applicable to such Stock Option Grant, unless and until the Plan has been approved by the Company’s stockholders to the extent stockholder approval is required by Section 162(m) in the manner
required under Section 162(m) (including the vote required under Section 162(m)). 
  
 Munich/Martinsried, March 31, 2000 
  

			
	 GPC Biotech AG

		
	 /s/
	 	 Der Vorstand

		
	/s/	 	Elmar Maier
		
	/s/	 	Bernd R. Seizinger

  
 Exhibit 1: Exercise Note

  

 16Convertible Bonds Terms and Conditions dated May 21, 2003

 Exhibit 10.31 
  
 GPC Biotech AG 
 Martinsried/Planegg

  
 Convertible Bonds Terms and Conditions 

 
 for Managers of the Company and Management Bodies and Managers of

 Second-Tier Domestic and Foreign Affiliated Enterprises as well as for Consultants 
  
 (Resolution of the General Meeting of May 21, 2003) 
  
 Preamble 
  
 The General Meeting of GPC Biotech AG (hereinafter “the Company” or “GPC”) resolved on May 21, 2003 to implement a
program for the issuance of convertible bonds, nominal value € 1.00 per convertible bond (the “Convertible Bonds”) to managers of the Company and management bodies and managers of second-tier domestic and foreign affiliated
enterprises as well as to consultants (hereinafter the “Allottees”). 
  
 The terms and conditions of the program for the issuance of Convertible Bonds are as follows: 
  
 § 1 
 Convertible Bonds 
  

	(1)	The Allottees receive registered conversion privileges which comprise the right to purchase ordinary no-par value bearer Shares (the “Shares”) of the Company in the number
listed in the offer letter or in the convertible bond certificate, subject to adjustment pursuant to § 9 hereof. The Convertible Bonds are issued under the condition that the resolution of the shareholder meeting on May 21, 2003, which refers
to the conditional capital (Item 7), will be registered in the commercial register of Munich. If this resolution is declared void by a legally binding court decision the Convertible Bonds will definitely not come into being. In this case the
Allottee is entitled to claim back the paid-in nominal amount with an interest rate of 3.5% per annum. 

  

	(2)	By accepting the offer to purchase the Convertible Bonds, the Allottee shall transfer the total nominal amount of the Convertible Bonds to which he/she is entitled in Euros for
unconditional disposition by the Company and without further costs to an account to be specified by the Company. 

  

	(3)	The Convertible Bonds may be evidenced in several registered global convertible bond certificates. The right to (individual) convertible bond certificates is excluded.

  

	(4)	On behalf of the Company, a bonds register entitled “Convertible Bonds” (hereinafter the “Options Register”), in which the Convertible Bonds are registered
together with the conversion price (see § 8 (1) hereof), the series and number as well as the holder by name, date of birth, residence address and occupation, will be maintained by the exercise agent (see § 18 hereof). In addition, the
Options Register sets forth in particular the information necessary for determining the period according to § 14 (1) hereof (the “Vesting Period”). 

  

	(5)	In relation to the Company, only parties registered as Allottees in the Options Register are qualified as such. 

  
 § 2 
 Basic Features of the Convertible Bonds 
  

	(1)	As provided by these terms and conditions, and subject to any adjustment pursuant to §§ 8 and 9 hereof, the Convertible Bonds may be exercised to obtain one Share of the
Company for each Convertible Bond upon payment of the conversion price to be specified by the Company in accordance with § 8 hereof. 

  

	(2)	To cover the Convertible Bonds to be issued to the Allottees, the June 11, 2002 General Meeting of the Company created a conditional capital in the amount of up to € 500,000.
The Management Board of the Company may choose, in agreement with the Supervisory Board, whether the Shares underlying the Convertible Bonds will be made available from such conditional capital or from a program to repurchase its own Shares,
resolved or possibly yet to be resolved by the General Meeting. 

  

 - 2 - 

 § 3 
 Interest Rate, Repayment of the Nominal Amount 
  

	(1)	The Convertible Bonds bear interest at 3.5% per annum starting from the date of their issuance. The interest amounts are due at the end of the respective calendar year. In the event
of the cancellation of the conversion privileges pursuant to § 14 hereof or of the due exercise of the conversion privileges pursuant to § 10 hereof, the interest amounts for the current calendar year are due immediately.

  

	(2)	A right to compound interest does not exist. 

  

	(3)	The paid-in nominal amount is due for repayment within ten calendar days after lapse of the conversion privileges for whatever reason. 

  
 § 4 
 Purchasing Periods, Time to Maturity 
  

	(1)	The Convertible Bonds may be offered to the Allottees for subscription within the last fifteen business days of each calendar month. The date of issuance is the day on which the
Management Board has made an offer to the Allottee for subscription of the Convertible Bonds, provided, such offer has been accepted within the subscription period. 

  

	(2)	The time to maturity of the conversion privileges is ten years from the date of their issuance. § 3(3) notwithstanding, the conversion privileges lapse without compensation
upon expiration of the time to maturity. 

  
 § 5 
 Waiting Period 
  
 The Allottees may exercise the conversion privileges at the earliest after the expiration of two years following their issuance pursuant to § 4 (1) hereof. In
addition, the conversion privileges may only be exercised if, after expiration of the two-year waiting period, the cancellation periods set forth in § 14 (l) hereof, as specified by the Company in the offer letter or in the (global) convertible
bond certificates, have expired. 
  

 - 3 - 

 § 6 
 Exercise Periods 
  

	(1)	Conversion privileges may not be exercised on or after the day on which the Company announces an offer to its shareholders to subscribe for new Shares or bonds with conversion
privileges or option rights attached to them by letter to all shareholders or by a notice published in the (Bundesanzeiger) of the Federal Republic of Germany, until the day on which the Shares are quoted for the first time as “ex
subscription rights” on the Neuer Markt of the Frankfurt Stock Exchange. 

  

	(2)	Notwithstanding § 6 (1) hereof, the conversion privileges may only be exercised in the six weeks following publication of the quarterly reports or of the annual financial
statement respectively. The conversion privileges may not be exercised from December 24 to December 31 of each calendar year. 

  

	(3)	The Management Board has the right to impose further restrictions on the exercise periods. 

  
 § 7 
 Performance Goals 
  

	(1)	Notwithstanding §§ 4 and 5 hereof, the conversion privileges may only be exercised if the Share price on the date of exercise is at least 100% above the Share price on May
21, 2003. 

  

	(2)	The Share price shall be calculated as the closing price for the Shares in the XETRA closing auction on the Frankfurt Stock Exchange. 

  
 § 8 
 Conversion Price 
  

	(1)	As provided by these terms and conditions, each conversion privilege represents the right to subscribe for one Share. The conversion price to be paid upon exercise of the conversion
privilege for the subscription of one individual Share corresponds to the arithmetic average of the closing prices of the Shares in the XETRA closing auction on the Frankfurt Stock Exchange during the last five stock exchange trading days prior to
the date of issuance of the Convertible Bonds, less € 1.00. The conversion price will be adjusted in accordance with these terms and conditions if the Company implements certain capital measures during the time to maturity of the conversion
privileges or grants further option rights or conversion privileges to its shareholders. 

  

 - 4 - 

 The purpose of such adjustment is to ensure that equivalence of the conversion price as well as of the
exercise hurdles is maintained even after completion of such measures and the related impact on the Share price. 
  

	(2)	Effective on such date on which the Shares are initially quoted “ex subscription right” the conversion price shall be reduced pursuant to the immediately following
paragraph, but in no case to less than the pro rata amount of the Share capital attributable to one Share (at least € 1.00). 

  

	(3)	The conversion price shall be reduced if, during the time to maturity of the Convertible Bonds, new Shares or warrants or Convertible Bonds with option rights or conversion
privileges to Shares attached to them are issued a capital increase or if the Company disposes of its own Shares and in connection with subscription rights to any such securities are granted to the existing shareholders of the Company. The
conversion price will be reduced of the ratio of 

  

	 	(1)	the arithmetic average of the Shares as traded “ex subscription right” on [the Neuer Markt of the Frankfurt Stock Exchange] on all days so traded and

  

	 	(2)	the closing price of the Shares on the last stock exchange trading day immediately prior to the commencement of trading “ex subscription right”. 

 

	(4)	The Company shall, simultaneously with the publication of the offer to its existing shareholders to subscribe for any new Shares or bonds with conversion privileges or option rights
attached to them, the issuance of which triggers the reduction of the conversion price, notify the Allottees in writing of the conversion price as reduced pursuant to § 8(3) and of the date on which the Shares are initially quoted
“ex-subscription rights” on the Neuer Markt of the Frankfurt Stock Exchange, from which date onward the reduced conversion price shall be effective. 

  

	(5)	As stipulated by § 218 AktG, in the case of a capital increase from corporate funds, an existing conditional capital is increased in the same ratio as the share capital. The
conversion ratio according to § 2 hereof is increased in the same ratio. Fractions of Shares created as a result of the capital increase from corporate funds are not considered in the exercise of Convertible Bonds. 

  

	(6)	The conversion price will not be reduced if the Company, in adopting the resolution on the issuance of new Shares or of bonds with conversion privileges or option rights attached to
them or on the disposal of its own Shares also grants the Allottees a direct or indirect subscription right that corresponds to the value of the subscription right of the existing shareholders. 

  

 - 5 - 

 § 9 
 Adjustment of the Conversion Privileges 
  

	(1)	In the case of (1) a merger of the Company with and into another company, (2) a reorganization of the Company, (3) a change in the calculated nominal value of the Shares or (4)
comparable measures that impair the rights of the Allottees by abolishing or changing the underlying Shares according to these terms and conditions, the Convertible Bonds are replaced by the right to purchase, at the base price, that number,
respectively, of Shares, equity interests or any other interests in the Company or its legal successors that otherwise substitute the Shares of the Company whose value corresponds to the market value of the Shares of the Company on the date on which
such measure is implemented. In all other respects these terms and conditions shall remain applicable without restriction. 

  

	(2)	In the case of a capital reduction by grouping of Shares (§ 222(4) AktG) or by redemption of Shares (§ 237 AktG), the conversion ratio is adjusted by multiplying it with
the factor calculated by dividing the number of Shares after the capital reduction by the number of Shares before the capital reduction. Fractions of Shares created as a result of a capital reduction are not made available for exercise of the
conversion privileges. 

  

	(3)	Until the due exercise of the convertible bonds, the Allottees have no rights to dividends or other distributions from the Shares underlying the Convertible Bonds.

  
 § 10 
 Exercise Procedure; Issuance of Underlying Shares 
  

	(1)	To exercise the conversion privileges, the Allottee must 

  

	 	(a)	enter the number of conversion privileges to be exercised as well as the exercise date in the original convertible bond certificate. In addition, the exercise is to be signed by the
Allottee in the original convertible bond certificate and countersigned by the Company; 

  

	 	(b)	using the form available from the exercise agent or from a trustee (see § 18 hereof), if such is appointed for the purpose, deliver a written subscription declaration in
duplicate to the exercise agent or to the trustee; and 

  

	 	(c)	pay the conversion price in EURO, completely and free of costs and charges to the Company, to the Company’s account indicated in the subscription declaration form.

  

 - 6 - 

	(2)	Declarations received by the exercise agent within the periods set forth in §§ 5 and 6 hereof are deemed to be delivered and received on the next subsequent banking
business day on which the exercise of the convertible bond is again permissible. The Allottee may revoke his/her subscription declaration only so long as receipt has not yet effectively taken place. 

  

	(3)	The Shares resulting from the exercise of the conversion privileges are printed and delivered in the form provided by the Articles of Association of the Company in their respective
valid version. Issuance takes place – to the extent possible and subject to receipt by the Company of payment in full of the conversion price – within ten banking business days after the subscription declaration becomes effective.

  

	(4)	In the event that the Allottee intends to sell the Shares acquired through the exercise of his/her conversion privileges immediately after such acquisition, the Company may, with a
view to a smooth placement in the market, tender, in a manner that safeguards the interests of the Allottees, the Shares created from a large number of exercises in the form of a block sale to (for example) institutional investors. The Allottee
shall, at the request of the Company, assist appropriately and reasonably in the smooth placement on the market. 

  

	(5)	Any issuance of Shares resulting from the exercise of conversion privileges is only permitted in conformity with the terms and conditions hereof and in no case prior to payment in
full of the conversion price according to § 8 hereof (see § 199(1) AktG). 

  
 § 11 
 Dividend Entitlement of the New Shares 
  
 The Shares created through the exercise of conversion privileges – provided they are
created through exercise before the beginning of the General Meeting of the Company that resolves on the allocation of balance sheet profits – are entitled to dividends from the beginning of the previous fiscal year, or, to the extent created
through exercise after the beginning of General Meeting of the Company, the respective fiscal year in which they were created through such exercise. 
  
 § 12 
 Nonassignability of the
Convertible Bonds 
  

	(1)	In principle, the Convertible Bonds may not be transferred. 

  

 - 7 - 

	(2)	Other methods of disposing of the Convertible Bonds, granting of subordinate equity interests or creation of a trust as well as establishment of short positions by granting to third
parties the Convertible Bonds granted to the Allottee as well as comparable offsetting transactions that are economically equivalent to a sale of the Convertible Bonds are also prohibited. 

  

	(3)	Any violation of paragraphs (1) and/or (2) of this § 12 results in forfeiture of the Convertible Bonds. To the extent that the Company or the Allottees have substantive
reasons, the Management Board, in agreement with the Supervisory Board, may consent to dispositions of the Convertible Bonds in the form described in paragraphs (1) and (2) of this § 12. 

  

	(4)	Notwithstanding paragraphs (1) and (2) of this § 12, the Allottee is authorized, after expiration of the two-year waiting period or after expiration of the cancellation period
specified in the convertible bond certificates, to sell his/her Convertible Bonds to a credit institution to be specified by the Company. 

  
 § 13 
 Succession 

 

	(1)	The Convertible Bonds – provided they have not been cancelled pursuant to § 14 hereof – may be transferred by will or the laws of descent and distribution. The heirs
shall be bound by these terms and conditions. 

  

	(2)	The heirs shall report their standing as heirs to the Company and must prove their legitimacy in conformity with § 35 GBO. 

  
 § 14 
 Vesting Period; Cancellation of the Convertible Bonds 
  

	(1)	 The Convertible Bonds may in principle be cancelled for a maximum period of up to four (4) years (the “Vesting Period”). Expiration of the Vesting Period
in relation to the conversion privileges granted in total to the Allottee does not take place uniformly, but is divided into stages over the Vesting Period. One quarter of the Convertible Bonds becomes uncancellable each year, calculated from the
beginning of the vesting period. The Vesting Period begins to run with the issuance of the convertible bonds. A different Vesting Period may be specified by the Management Board for each individual case on the basis of internal guidelines of the
Company that may be formulated thereby for common application and notified to the Allottee in the offer 

  

 - 8 - 

	 	 
letter. Above and beyond this, the expiration of the Vesting Period – if certificates evidencing the conversion privilege are issued – is noted in
the respective certificates. 

  

	(2)	The Company or second-tier enterprises currently affiliated with it or in the future may immediately cancel the conversion privileges that are still subject to the Vesting Period
without compensation if the Allottee’s employment has been terminated prior to expiration of the Vesting Period specified for the conversion privileges. The cancellation of conversion privileges becomes effective upon receipt of a separate
written cancellation declaration by the Allottee, but not earlier than: 

  

	 	(a)	in the case of an ordinary termination by the Allottee, upon receipt of his/her termination notice; 

  

	 	(b)	in the case of an ordinary termination of the Allottee by the Company, upon effectiveness of such termination (termination of employment) or – in the case of the exoneration of
the Allottee – on the date of such exoneration; 

  

	 	(c)	in the case of termination by the Allottee for cause, on the date on which the ordinary termination – defined as the termination notice by the Company or by a second-tier
enterprise currently affiliated with it or in the future on the date of the termination notice by the Allottee – would have become effective; 

  

	 	(d)	in all other cases, on the date of actual termination of employment (for example, termination by rescission contract, death, [early] retirement, educational leave of absence and
similar reasons). 

  

	(3)	The Company or a second-tier enterprise affiliated currently with it or in the future may cancel the conversion privileges no longer subject to a Vesting Period without compensation
if 

  

	 	(a)	the Allottee has not exercised his/her conversion privileges within 12 calendar months after the cancellation according to paragraph (2) above becomes effective, or

  

	 	(b)	 the Allottee has not exercised his/her conversion privileges within 12 months after the second-tier affiliated enterprise employing the Allottee has relinquished
its affiliation with the group (equity interest less than 50% in the equity or Share capital), 

  

 - 9 - 

	 	 
Provided such exercise would have been possible subject to the waiting period set forth in § 5 hereof and the exercise periods set forth in § 6
hereof. If an exercise of the conversion privileges according to §§ 5 and 6 hereof is not possible on the effective date of the termination, the period begins when the exercise prerequisites of §§ 5 and 6 hereof exist for the
first time. 

  

	(4)	The Management Board may, in isolated cases, choose not to cancel all or part of the conversion privileges if such cancellation seems inequitable in such isolated cases (suspension
of employment because of a maternity or paternity leave of absence, general disability, [early] retirement and similar reasons). The same shall apply mutatis mutandis if the conversion privileges are intended to substitute for a severance payment
that may be due upon termination of employment or officer status. In individual cases, the choice not to cancel the conversion privileges may be made contingent upon the extension of the Vesting Period by the duration of the suspension of employment
(for example, due to a maternal or paternal leave of absence or an unpaid leave of absence). 

  

	(5)	In the event that the employment and/or the officer status of an Allottee with the Company or with a second-tier enterprise currently affiliated with it or in the future is –
irrespective of the reason – terminated, but at the same time a new employment or officer status is established with the Company or with a second-tier enterprise currently affiliated with it or in the future, the aforementioned cancellation
rights shall not apply on the occasion of such termination but only relative to any termination of the new employment or new officer status. 

  

	(6)	The Company has the right to cancel the conversion privileges with immediate effect if and as soon as insolvency proceedings are instituted against the assets of the Allottee,
institution of insolvency proceedings is declined for insufficiency of assets or conversion privileges are attached by a creditor and the enforcement measure is not rescinded within six (6) months (with expiration of the 6-month period).

  

	(7)	For his/her part, the Allottee may cancel the conversion privilege with three-months notice as of the end of a quarter without having to give any reasons. 

 

	(8)	The Company may request the return of any issued and cancelled convertible bond certificates from the Allottee or from any other possessor. 

  

 - 10 - 

 § 15 
 Taxes 
  
 The Allottee himself/herself
shall pay all taxes that may be incurred in connection with the issuance or exercise of conversion privileges, including church taxes and solidarity surcharge. However, the Company shall deduct such taxes and charges from the Allottee’s salary
to the extent legally prescribed and pay them over, if appropriate in the form of wage-tax withholding, to the tax office having jurisdiction over its permanent establishment. Above and beyond this, the Company may, if necessary, make the issuance
of Shares contingent upon proof of appropriate tax payments by the Allottee or upon lodging of reasonable surety. If the Allottee does not or cannot meet his/her obligations stipulated by this § 15 hereof, the Company has to so report to the
tax office having jurisdiction over its permanent establishment. 
  
 § 16 
 Insider Rules 
  

	(1)	The Company hereby advises each Allottee that such Allottee may be subject to insider regulations and under certain circumstances may be punishable for disregard of these
regulations. In particular, insiders are prohibited from selling any Shares acquired through the exercise of conversion privileges by exploiting their knowledge of insider facts (§ 14(1) WpHG). 

  

	(2)	The Allottee hereby undertakes to acknowledge and honor any current or future internal guidelines published by the Company with respect to the prevention of insider violations. Any
violation of such guidelines is a breach of the accessory obligations defined by labor law and may give rise to, possibly immediate, termination of the Allottee’s employment. 

  
 § 17 
 Reservation of Voluntary Nature 
  
 Any issuance of conversion privileges is voluntary in nature and an Allottee who has been issued conversion privileges does not, by reason of such issuance, accrue any right to receive additional conversion privileges
at any point in the future. 
  

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 § 18 
 Exercise Agent 
  
 The exercise agent is
the Management Board of the Company. The Management Board empowers the Legal Department to accept subscription declarations and to handle the exercise procedure. In addition, the Company has the right to appoint a trustee (such as a bank), which in
this respect assumes the tasks of the Management Board and functions as the exercise agent. 
  
 § 19 
 Announcements 
  
 Declarations, notices, amendments or adjustments in regard to the conversion privileges are announced to the Allottee in writing. Written
announcements of legally binding nature (such as cancellation declaration, adjustment of the conversion price and similar information) are effected by personal delivery with acknowledgment of receipt or by registered letter or messenger to the
address last reported by the Allottee to the Company or to the second-tier enterprise affiliated with it. 
  
 § 20 
 Miscellaneous Provisions 
  

	(1)	Should any of these terms and conditions be or become invalid or unenforceable, in part or in whole, such provision shall be replaced by such valid and enforceable provision that,
in a legally permissible manner, matches as closely as possible the invalid or unenforceable provision, attaining the same or a similar economic effect. The invalidity or unenforceability of any provision hereof shall not affect the validity or
enforceability of any other provision hereof, which shall remain in full force and effect. The same shall apply mutatis mutandis if a loophole requiring amplification is discovered during execution of these terms and conditions.

  

	(2)	Amendments and additions to these conditions shall be in writing. unless recording by a notary is required. The foregoing sentence applies mutatis mutandis to any amendments of this
§ 20(2). 

  

	(3)	The place of performance and place of jurisdiction is the registered seat of the Company. 

  

	(4)	The form and content of the conversion privileges as well as the rights and obligations of the Allottees and of the Company are construed in accordance with the laws of the Federal
Republic of Germany. 

  

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	 Martinsried/Planegg, May 21, 2003

			
	 /s/ Mirko Scherer
	 	 	 	 /s/ Elmar Maier

	 The Management Board of
	 	 
		
	 GPC Biotech AG
	 	 

  

	
	Duly noted:
	
	 /s/ John Richard

	 (John Richard)

  

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