Document:

exv10w1

Exhibit 10.1
    

 

    EPIX
    PHARMACEUTICALS, INC.

    

 

    2008
    STOCK OPTION AND INCENTIVE PLAN

 

    Section 1.  General
    Purpose of the Plan; Definitions
    

 

    The name of the plan is the EPIX Pharmaceuticals, Inc. 2008
    Stock Option and Incentive Plan (the “Plan”). The
    purpose of the Plan is to encourage and enable the officers,
    employees, Non-Employee Directors and other key persons
    (including consultants and prospective employees) of EPIX
    Pharmaceuticals, Inc. (the “Company”) and its
    Subsidiaries upon whose judgment, initiative and efforts the
    Company largely depends for the successful conduct of its
    business to acquire a proprietary interest in the Company. It is
    anticipated that providing such persons with a direct stake in
    the Company’s welfare will assure a closer identification
    of their interests with those of the Company and its
    stockholders, thereby stimulating their efforts on the
    Company’s behalf and strengthening their desire to remain
    with the Company.

 

    The following terms shall be defined as set forth below:

 

    “Act” means the Securities Act of 1933, as amended,
    and the rules and regulations thereunder.

 

    “Administrator” means either the Board or the
    compensation committee of the Board or a similar committee
    performing the functions of the compensation committee and which
    is comprised of not less than two Non Employee Directors who are
    independent.

 

    “Award” or “Awards,” except where referring
    to a particular category of grant under the Plan, shall include
    Incentive Stock Options, Non-Qualified Stock Options, Stock
    Appreciation Rights, Deferred Stock Awards, Restricted Stock
    Awards, Unrestricted Stock Awards, Cash-Based Awards and
    Performance Share Awards.

 

    “Award Agreement” means a written or electronic
    agreement setting forth the terms and provisions applicable to
    an Award granted under the Plan. Each Award Agreement is subject
    to the terms and conditions of the Plan.

 

    “Board” means the Board of Directors of the Company.

 

    “Cash-Based Award” means an Award entitling the
    recipient to receive a cash-denominated payment.

 

    “Code” means the Internal Revenue Code of 1986, as
    amended, and any successor Code, and related rules, regulations
    and interpretations.

 

    “Covered Employee” means an employee who is a
    “Covered Employee” within the meaning of
    Section 162(m) of the Code.

 

    “Deferred Stock Award” means an Award of phantom stock
    units to a grantee.

 

    “Effective Date” means the date on which the Plan is
    approved by stockholders as set forth in Section 20.

 

    “Exchange Act” means the Securities Exchange Act of
    1934, as amended, and the rules and regulations thereunder.

 

    “Fair Market Value” of the Stock on any given date
    means the fair market value of the Stock determined in good
    faith by the Administrator; provided, however, that if the Stock
    is admitted to quotation on the National Association of
    Securities Dealers Automated Quotation System
    (“NASDAQ”), NASDAQ Global Market or another national
    securities exchange, the determination shall be made by
    reference to market quotations. If there are no market
    quotations for such date, the determination shall be made by
    reference to the last date preceding such date for which there
    are market quotations.

 

    “Incentive Stock Option” means any Stock Option
    designated and qualified as an “incentive stock
    option” as defined in Section 422 of the Code.

    

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    “Non-Employee Director” means a member of the Board
    who is not also an employee of the Company or any Subsidiary.

 

    “Non-Qualified Stock Option” means any Stock Option
    that is not an Incentive Stock Option.

 

    “Option” or “Stock Option” means any option
    to purchase shares of Stock granted pursuant to Section 5.

 

    “Performance-Based Award” means any Restricted Stock
    Award, Deferred Stock Award, Performance Share Award or
    Cash-Based Award granted to a Covered Employee that is intended
    to qualify as “performance-based compensation” under
    Section 162(m) of the Code and the regulations promulgated
    thereunder.

 

    “Performance Criteria” means the criteria that the
    Administrator selects for purposes of establishing the
    Performance Goal or Performance Goals for an individual for a
    Performance Cycle. The Performance Criteria (which shall be
    applicable to the organizational level specified by the
    Administrator, including, but not limited to, the Company or a
    unit, division, group, or Subsidiary of the Company) that will
    be used to establish Performance Goals are limited to the
    following: earnings before interest, taxes, depreciation and
    amortization, net income (loss) (either before or after
    interest, taxes, depreciation
    and/or
    amortization), changes in the market price of the Stock,
    economic value-added, sales or revenue, acquisitions or
    strategic transactions, operating income (loss), cash flow
    (including, but not limited to, operating cash flow and free
    cash flow), return on capital, assets, equity, or investment,
    stockholder returns, return on sales, gross or net profit
    levels, productivity, expense, margins, operating efficiency,
    initiation or completion of clinical trials, results of clinical
    trials, preclinical drug development milestones, collaboration
    milestones earned, capital raising transactions, debt
    transactions, working capital, earnings (loss) per share of
    Stock, sales or market shares and number of customers, any of
    which may be measured either in absolute terms or as compared to
    any incremental increase or as compared to results of a peer
    group.

 

    “Performance Cycle” means one or more periods of time,
    which may be of varying and overlapping durations, as the
    Administrator may select, over which the attainment of one or
    more Performance Criteria will be measured for the purpose of
    determining a grantee’s right to and the payment of a
    Restricted Stock Award, Deferred Stock Award, Performance Share
    Award or Cash-Based Award.

 

    “Performance Goals” means, for a Performance Cycle,
    the specific goals established in writing by the Administrator
    for a Performance Cycle based upon the Performance Criteria.

 

    “Performance Share Award” means an Award entitling the
    recipient to acquire shares of Stock upon the attainment of
    specified Performance Goals.

 

    “Restricted Stock Award” means an Award entitling the
    recipient to acquire, at such purchase price (which may be zero)
    as determined by the Administrator, shares of Stock subject to
    such restrictions and conditions as the Administrator may
    determine at the time of grant.

 

    “Sale Event” shall mean (i) the sale of all or
    substantially all of the assets of the Company on a consolidated
    basis to an unrelated person or entity, (ii) a merger,
    reorganization or consolidation in which the outstanding shares
    of Stock are converted into or exchanged for securities of the
    successor entity and the holders of the Company’s
    outstanding voting power immediately prior to such transaction
    do not own a majority of the outstanding voting power of the
    successor entity immediately upon completion of such
    transaction, or (iii) the sale of all of the Stock of the
    Company to an unrelated person or entity.

 

    “Sale Price” means the value as determined by the
    Administrator of the consideration payable, or otherwise to be
    received by stockholders, per share of Stock pursuant to a Sale
    Event.

 

    “Section 409A” means Section 409A of the
    Code and the regulations and other guidance promulgated
    thereunder.

 

    “Stock” means the Common Stock, par value $0.01 per
    share, of the Company, subject to adjustments pursuant to
    Section 3.

 

    “Stock Appreciation Right” means an Award entitling
    the recipient to receive shares of Stock having a value equal to
    the excess of the Fair Market Value of the Stock on the date of
    exercise over the exercise price

    

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    of the Stock Appreciation Right multiplied by the number of
    shares of Stock with respect to which the Stock Appreciation
    Right shall have been exercised.

 

    “Subsidiary” means any corporation or other entity
    (other than the Company) in which the Company has at least a
    50 percent interest, either directly or indirectly.

 

    “Ten Percent Owner” means an employee who owns or
    is deemed to own (by reason of the attribution rules of
    Section 424(d) of the Code) more than 10 percent of
    the combined voting power of all classes of stock of the Company
    or any parent or subsidiary corporation.

 

    “Unrestricted Stock Award” means an Award of shares of
    Stock free of any restrictions.

 

    Section 2.  Administration
    of Plan; Administrator Authority to Select Grantees and
    Determine Awards
    

 

    (a) Administration of Plan.  The Plan
    shall be administered by the Administrator.

 

    (b) Powers of Administrator.  The
    Administrator shall have the power and authority to grant Awards
    consistent with the terms of the Plan, including the power and
    authority:

 

    (i) to select the individuals to whom Awards may from time
    to time be granted;

 

    (ii) to determine the time or times of grant, and the
    extent, if any, of Incentive Stock Options, Non-Qualified Stock
    Options, Stock Appreciation Rights, Restricted Stock Awards,
    Deferred Stock Awards, Unrestricted Stock Awards, Cash-Based
    Awards and Performance Share Awards, or any combination of the
    foregoing, granted to any one or more grantees;

 

    (iii) to determine the number of shares of Stock to be
    covered by any Award;

 

    (iv) to determine and modify from time to time the terms
    and conditions, including restrictions, not inconsistent with
    the terms of the Plan, of any Award, which terms and conditions
    may differ among individual Awards and grantees, and to approve
    the form of written instruments evidencing the Awards;

 

    (v) to accelerate at any time the exercisability or vesting
    of all or any portion of any Award, including but not limited to
    termination of employment or a Sale Event;

 

    (vi) subject to the provisions of Section 5(c), to
    extend at any time the period in which Stock Options may be
    exercised; and

 

    (vii) at any time to adopt, alter and repeal such rules,
    guidelines and practices for administration of the Plan and for
    its own acts and proceedings as it shall deem advisable; to
    interpret the terms and provisions of the Plan and any Award
    (including related written instruments); to make all
    determinations it deems advisable for the administration of the
    Plan; to decide all disputes arising in connection with the
    Plan; and to otherwise supervise the administration of the Plan.

 

    All decisions and interpretations of the Administrator shall be
    binding on all persons, including the Company and Plan grantees.

 

    (c) Delegation of Authority to Grant
    Options.  Subject to applicable law, the
    Administrator, in its discretion, may delegate to the Chief
    Executive Officer of the Company all or part of the
    Administrator’s authority and duties with respect to the
    granting of Options, to individuals who are (i) not subject
    to the reporting and other provisions of Section 16 of the
    Exchange Act and (ii) not Covered Employees. Any such
    delegation by the Administrator shall include a limitation as to
    the amount of Options that may be granted during the period of
    the delegation and shall contain guidelines as to the
    determination of the exercise price and the vesting criteria.
    The Administrator may revoke or amend the terms of a delegation
    at any time but such action shall not invalidate any prior
    actions of the Administrator’s delegate or delegates that
    were consistent with the terms of the Plan.

 

    (d) Award Agreement.  Awards under the
    Plan shall be evidenced by Award Agreements that set forth the
    terms, conditions and limitations for each Award which may
    include, without limitation, the term of an

    

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    Award, the provisions applicable in the event employment or
    service terminates, and the Company’s authority to
    unilaterally or bilaterally amend, modify, suspend, cancel or
    rescind an Award.

 

    (e) Indemnification.  Neither the Board
    nor the Administrator, nor any member of either or any delegate
    thereof, shall be liable for any act, omission, interpretation,
    construction or determination made in good faith in connection
    with the Plan, and the members of the Board and the
    Administrator (and any delegate thereof) shall be entitled in
    all cases to indemnification and reimbursement by the Company in
    respect of any claim, loss, damage or expense (including,
    without limitation, reasonable attorneys’ fees) arising or
    resulting therefrom to the fullest extent permitted by law
    and/or under
    the Company’s articles or bylaws or any directors’ and
    officers’ liability insurance coverage which may be in
    effect from time to time
    and/or any
    indemnification agreement between such individual and the
    Company.

 

    (f) Foreign Award
    Recipients.  Notwithstanding any provision of the
    Plan to the contrary, in order to comply with the laws in other
    countries in which the Company and its Subsidiaries operate or
    have employees or other individuals eligible for Awards, the
    Administrator, in its sole discretion, shall have the power and
    authority to: (i) determine which Subsidiaries shall be
    covered by the Plan; (ii) determine which individuals
    outside the United States are eligible to participate in the
    Plan; (iii) modify the terms and conditions of any Award
    granted to individuals outside the United States to comply with
    applicable foreign laws; (iv) establish subplans and modify
    exercise procedures and other terms and procedures, to the
    extent the Administrator determines such actions to be necessary
    or advisable (and such subplans
    and/or
    modifications shall be attached to this Plan as appendices);
    provided, however, that no such subplans
    and/or
    modifications shall increase the share limitations contained in
    Section 3(a) hereof; and (v) take any action, before
    or after an Award is made, that the Administrator determines to
    be necessary or advisable to obtain approval or comply with any
    local governmental regulatory exemptions or approvals.
    Notwithstanding the foregoing, the Administrator may not take
    any actions hereunder, and no Awards shall be granted, that
    would violate the Exchange Act or any other applicable United
    States securities law, the Code, or any other applicable United
    States governing statute or law.

 

    Section 3.  Stock
    Issuable Under the Plan; Mergers; Substitution
    

 

    (a) Stock Issuable.  The maximum number of
    shares of Stock reserved and available for issuance under the
    Plan shall be equal to the sum of (i) 6,000,000, plus
    (ii) the number of shares of Stock underlying any grants
    pursuant to the EPIX Pharmaceuticals, Inc. Amended and Restated
    1992 Incentive Plan that are forfeited, canceled, repurchased or
    are terminated (other than by exercise) from and after the date
    this Plan was approved by stockholders, plus (iii) the
    number of shares of Stock underlying any grants pursuant to this
    Plan that are forfeited, canceled, repurchased or are terminated
    (other than by exercise). Shares tendered or held back upon
    exercise of an Option or settlement of an Award to cover the
    exercise price or tax withholding shall not be available for
    future issuance under the Plan. In addition, upon exercise of
    Stock Appreciation Rights, the gross number of shares exercised
    shall be deducted from the total number of shares remaining
    available for issuance under the Plan. Subject to such overall
    limitations, shares of Stock may be issued up to such maximum
    number pursuant to any type or types of Award; provided,
    however, that Stock Options or Stock Appreciation Rights with
    respect to no more than 1,000,000 shares of Stock may be
    granted to any one individual grantee during any one calendar
    year period and no more than 6,000,000 shares of Stock
    shall be issued in the form of Incentive Stock Options. The
    shares available for issuance under the Plan may be authorized
    but unissued shares of Stock or shares of Stock reacquired by
    the Company.

 

    (b) Effect of Awards.  The grant of any
    full value Award (i.e., an Award other than an Option or a Stock
    Appreciation Right) shall be deemed, for purposes of determining
    the number of shares of Stock available for issuance under
    Section 3(a), as an Award of 1.5 shares of Stock for
    each such share of Stock actually subject to the Award. The
    grant of an Option or a Stock Appreciation Right shall be
    deemed, for purposes of determining the number of shares of
    Stock available for issuance under Section 3(a), as an
    Award for one share of Stock for each such share actually
    subject to the Award.

 

    (c) Changes in Stock.  Subject to
    Section 3(d) hereof, if, as a result of any reorganization,
    recapitalization, reclassification, stock dividend, stock split,
    reverse stock split or other similar change in the
    Company’s

    

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    capital stock, the outstanding shares of Stock are increased or
    decreased or are exchanged for a different number or kind of
    shares or other securities of the Company, or additional shares
    or new or different shares or other securities of the Company or
    other non-cash assets are distributed with respect to such
    shares of Stock or other securities, or, if, as a result of any
    merger or consolidation, sale of all or substantially all of the
    assets of the Company, the outstanding shares of Stock are
    converted into or exchanged for securities of the Company or any
    successor entity (or a parent or subsidiary thereof), the
    Administrator shall make an appropriate or proportionate
    adjustment in (i) the maximum number of shares reserved for
    issuance under the Plan, including the maximum number of shares
    that may be issued in the form of Incentive Stock Options,
    (ii) the number of Stock Options or Stock Appreciation
    Rights that can be granted to any one individual grantee and the
    maximum number of shares that may be granted under a
    Performance-Based Award, (iii) the number and kind of
    shares or other securities subject to any then outstanding
    Awards under the Plan, (iv) the repurchase price, if any,
    per share subject to each outstanding Restricted Stock Award,
    (v) the number of Stock Options automatically granted to
    Non-Employee Directors, and (vi) the price for each share
    subject to any then outstanding Stock Options and Stock
    Appreciation Rights under the Plan, without changing the
    aggregate exercise price (i.e., the exercise price multiplied by
    the number of Stock Options and Stock Appreciation Rights) as to
    which such Stock Options and Stock Appreciation Rights remain
    exercisable. The Administrator shall also make equitable or
    proportionate adjustments in the number of shares subject to
    outstanding Awards and the exercise price and the terms of
    outstanding Awards to take into consideration cash dividends
    paid other than in the ordinary course or any other
    extraordinary corporate event. The adjustment by the
    Administrator shall be final, binding and conclusive. No
    fractional shares of Stock shall be issued under the Plan
    resulting from any such adjustment, but the Administrator in its
    discretion may make a cash payment in lieu of fractional shares.

 

    (d) Mergers and Other
    Transactions.  Except as the Administrator may
    otherwise specify with respect to particular Awards in the
    relevant Award documentation, in the case of and subject to the
    consummation of a Sale Event, the Plan and all outstanding
    Awards granted hereunder shall terminate, unless provision is
    made in connection with the Sale Event in the sole discretion of
    the parties thereto for the assumption or continuation of Awards
    theretofore granted by the successor entity, or the substitution
    of such Awards with new Awards of the successor entity or parent
    thereof, with appropriate adjustment as to the number and kind
    of shares and, if appropriate, the per share exercise prices, as
    such parties shall agree (after taking into account any
    acceleration provisions). In the event of such termination,
    (i) the Company shall have the option (in its sole
    discretion) to make or provide for a cash payment to the
    grantees holding Options and Stock Appreciation Rights, in
    exchange for the cancellation thereof, in an amount equal to the
    difference between (A) the Sale Price multiplied by the
    number of shares of Stock subject to outstanding Options and
    Stock Appreciation Rights to the extent then exercisable (after
    taking into account any acceleration provisions thereof) at
    prices not in excess of the Sale Price) and (B) the
    aggregate exercise price of all such outstanding Options and
    Stock Appreciation Rights; or (ii) each grantee shall be
    permitted, within a specified period of time prior to the
    consummation of the Sale Event as determined by the
    Administrator, to exercise all outstanding Options and Stock
    Appreciation Rights held by such grantee. The Administrator may
    specify in the relevant Award agreements acceleration of
    exercisability or lapse of restriction upon the consummation of
    a Sale Event.

 

    (e) Substitute Awards.  The Administrator
    may grant Awards under the Plan in substitution for stock and
    stock based awards held by employees, directors or other key
    persons of another corporation in connection with the merger or
    consolidation of the employing corporation with the Company or a
    Subsidiary or the acquisition by the Company or a Subsidiary of
    property or stock of the employing corporation. The
    Administrator may direct that the substitute awards be granted
    on such terms and conditions as the Administrator considers
    appropriate in the circumstances. Any substitute Awards granted
    under the Plan shall not count against the share limitation set
    forth in Section 3(a).

 

    Section 4.  Eligibility
    

 

    Grantees under the Plan will be such full or part-time officers
    and other employees, Non-Employee Directors and key persons
    (including consultants and prospective employees) of the Company
    and its Subsidiaries as are selected from time to time by the
    Administrator in its sole discretion.

    

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    Section 5.  Stock
    Options
    

 

    (a) Grants of Stock Options.  Any Stock
    Option granted under the Plan shall be in such form as the
    Administrator may from time to time approve.

 

    Stock Options granted under the Plan may be either Incentive
    Stock Options or Non-Qualified Stock Options. Incentive Stock
    Options may be granted only to employees of the Company or any
    Subsidiary that is a “subsidiary corporation” within
    the meaning of Section 424(f) of the Code. To the extent
    that any Option does not qualify as an Incentive Stock Option,
    it shall be deemed a Non-Qualified Stock Option.

 

    The Administrator in its discretion may grant Stock Options to
    eligible employees and key persons of the Company or any
    Subsidiary. Stock Options granted pursuant to this
    Section 5(a) shall be subject to the following terms and
    conditions and shall contain such additional terms and
    conditions, not inconsistent with the terms of the Plan, as the
    Administrator shall deem desirable. If the Administrator so
    determines, Stock Options may be granted in lieu of cash
    compensation at the optionee’s election, subject to such
    terms and conditions as the Administrator may establish.

 

    (b) Exercise Price.  The exercise price
    per share for the Stock covered by a Stock Option granted
    pursuant to this Section 5(a) shall be determined by the
    Administrator at the time of grant but shall not be less than
    100 percent of the Fair Market Value on the date of grant.
    In the case of an Incentive Stock Option that is granted to a
    Ten Percent Owner, the option price of such Incentive Stock
    Option shall be not less than 110 percent of the Fair
    Market Value on the grant date.

 

    (c) Option Term.  The term of each Stock
    Option shall be fixed by the Administrator, but no Stock Option
    shall be exercisable more than ten years after the date the
    Stock Option is granted. In the case of an Incentive Stock
    Option that is granted to a Ten Percent Owner, the term of
    such Stock Option shall be no more than five years from the date
    of grant.

 

    (d) Exercisability; Rights of a
    Stockholder.  Stock Options shall become
    exercisable at such time or times, whether or not in
    installments, as shall be determined by the Administrator at or
    after the grant date. The Administrator may at any time
    accelerate the exercisability of all or any portion of any Stock
    Option. An optionee shall have the rights of a stockholder only
    as to shares acquired upon the exercise of a Stock Option and
    not as to unexercised Stock Options.

 

    (e) Method of Exercise.  Stock Options may
    be exercised in whole or in part, by giving written notice of
    exercise to the Company, specifying the number of shares to be
    purchased. Payment of the purchase price may be made by one or
    more of the following methods to the extent provided in the
    Option Award Agreement:

 

    (i) In cash, by certified or bank check or other instrument
    acceptable to the Administrator;

 

    (ii) Through the delivery (or attestation to the ownership)
    of shares of Stock that have been purchased by the optionee on
    the open market or that are beneficially owned by the optionee
    and are not then subject to restrictions under any Company plan.
    Such surrendered shares shall be valued at Fair Market Value on
    the exercise date and shall have been owned by the optionee for
    at least six months; or

 

    (iii) By the optionee delivering to the Company a properly
    executed exercise notice together with irrevocable instructions
    to a broker to promptly deliver to the Company cash or a check
    payable and acceptable to the Company for the purchase price;
    provided that in the event the optionee chooses to pay the
    purchase price as so provided, the optionee and the broker shall
    comply with such procedures and enter into such agreements of
    indemnity and other agreements as the Administrator shall
    prescribe as a condition of such payment procedure.

 

    Payment instruments will be received subject to collection. The
    transfer to the optionee on the records of the Company or of the
    transfer agent of the shares of Stock to be purchased pursuant
    to the exercise of a Stock Option will be contingent upon
    receipt from the optionee (or a purchaser acting in his stead in
    accordance with the provisions of the Stock Option) by the
    Company of the full purchase price for such shares and the
    fulfillment of any other requirements contained in the Option
    Award Agreement or applicable provisions of

    

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    laws (including the satisfaction of any withholding taxes that
    the Company is obligated to withhold with respect to the
    optionee). In the event an optionee chooses to pay the purchase
    price by previously-owned shares of Stock through the
    attestation method, the number of shares of Stock transferred to
    the optionee upon the exercise of the Stock Option shall be net
    of the number of attested shares. In the event that the Company
    establishes, for itself or using the services of a third party,
    an automated system for the exercise of Stock Options, such as a
    system using an internet website or interactive voice response,
    then the paperless exercise of Stock Options may be permitted
    through the use of such an automated system.

 

    (f) Annual Limit on Incentive Stock
    Options.  To the extent required for
    “incentive stock option” treatment under
    Section 422 of the Code, the aggregate Fair Market Value
    (determined as of the time of grant) of the shares of Stock with
    respect to which Incentive Stock Options granted under this Plan
    and any other plan of the Company or its parent and subsidiary
    corporations become exercisable for the first time by an
    optionee during any calendar year shall not exceed $100,000. To
    the extent that any Stock Option exceeds this limit, it shall
    constitute a Non-Qualified Stock Option.

 

    Section 6.  Stock
    Appreciation Rights
    

 

    (a) Exercise Price of Stock Appreciation
    Rights.  The exercise price of a Stock
    Appreciation Right shall not be less than 100 percent of
    the Fair Market Value of the Stock on the date of grant.

 

    (b) Grant and Exercise of Stock Appreciation
    Rights.  Stock Appreciation Rights may be granted
    by the Administrator independently of any Stock Option granted
    pursuant to Section 5 of the Plan.

 

    (c) Terms and Conditions of Stock Appreciation
    Rights.  Stock Appreciation Rights shall be
    subject to such terms and conditions as shall be determined from
    time to time by the Administrator but no Stock Appreciation
    Right shall be exercisable more than ten years after the date
    the Stock Appreciation Right is granted.

 

    Section 7.  Restricted
    Stock Awards
    

 

    (a) Nature of Restricted Stock
    Awards.  The Administrator shall determine the
    restrictions and conditions applicable to each Restricted Stock
    Award at the time of grant. Conditions may be based on
    continuing employment (or other service relationship)
    and/or
    achievement of pre-established performance goals and objectives.
    The grant of a Restricted Stock Award is contingent on the
    grantee executing the Restricted Stock Award Agreement. The
    terms and conditions of each such Award Agreement shall be
    determined by the Administrator, and such terms and conditions
    may differ among individual Awards and grantees.

 

    (b) Rights as a Stockholder.  Upon
    execution of the Restricted Stock Award Agreement and payment of
    any applicable purchase price, a grantee shall have the rights
    of a stockholder with respect to the voting of the Restricted
    Stock, subject to such conditions contained in the Restricted
    Stock Award Agreement. Unless the Administrator shall otherwise
    determine, (i) uncertificated Restricted Stock shall be
    accompanied by a notation on the records of the Company or the
    transfer agent to the effect that they are subject to forfeiture
    until such Restricted Stock are vested as provided in
    Section 7(d) below, and (ii) certificated Restricted
    Stock shall remain in the possession of the Company until such
    Restricted Stock is vested as provided in Section 7(d)
    below, and the grantee shall be required, as a condition of the
    grant, to deliver to the Company such instruments of transfer as
    the Administrator may prescribe.

 

    (c) Restrictions.  Restricted Stock may
    not be sold, assigned, transferred, pledged or otherwise
    encumbered or disposed of except as specifically provided herein
    or in the Restricted Stock Award Agreement. Except as may
    otherwise be provided by the Administrator either in the Award
    Agreement or, subject to Section 17 below, in writing after
    the Award Agreement is issued if a grantee’s employment (or
    other service relationship) with the Company and its
    Subsidiaries terminates for any reason, any Restricted Stock
    that has not vested at the time of termination shall
    automatically and without any requirement of notice to such
    grantee from or other action by or on behalf of, the Company be
    deemed to have been reacquired by the Company at its original
    purchase price (if any) from such grantee or such grantee’s
    legal representative simultaneously with such termination of
    employment (or other service relationship), and thereafter shall
    cease to represent any

    

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    ownership of the Company by the grantee or rights of the grantee
    as a stockholder. Following such deemed reacquisition of
    unvested Restricted Stock that are represented by physical
    certificates, a grantee shall surrender such certificates to the
    Company upon request without consideration.

 

    (d) Vesting of Restricted Stock.  The
    Administrator at the time of grant shall specify the date or
    dates and/or
    the attainment of pre-established performance goals, objectives
    and other conditions on which the non-transferability of the
    Restricted Stock and the Company’s right of repurchase or
    forfeiture shall lapse. Notwithstanding the foregoing, in the
    event that any such Restricted Stock granted to employees shall
    have a performance-based goal, the restriction period with
    respect to such shares shall not be less than one year, and in
    the event any such Restricted Stock granted to employees shall
    have a time-based restriction, the total restriction period with
    respect to such shares shall not be less than two years;
    provided, however, that Restricted Stock with a time-based
    restriction may become vested incrementally over such two-year
    period. Subsequent to such date or dates
    and/or the
    attainment of such pre-established performance goals, objectives
    and other conditions, the shares on which all restrictions have
    lapsed shall no longer be Restricted Stock and shall be deemed
    “vested.” Except as may otherwise be provided by the
    Administrator either in the Award Agreement or, subject to
    Section 17 below, in writing after the Award Agreement is
    issued, a grantee’s rights in any shares of Restricted
    Stock that have not vested shall automatically terminate upon
    the grantee’s termination of employment (or other service
    relationship) with the Company and its Subsidiaries and such
    shares shall be subject to the provisions of Section 7(c)
    above.

 

    Section
    8.  Deferred
    Stock Awards
    

 

    (a) Nature of Deferred Stock Awards.  The
    Administrator shall determine the restrictions and conditions
    applicable to each Deferred Stock Award at the time of grant.
    Conditions may be based on continuing employment (or other
    service relationship)
    and/or
    achievement of pre-established performance goals and objectives.
    The grant of a Deferred Stock Award is contingent on the grantee
    executing the Deferred Stock Award Agreement. The terms and
    conditions of each such Award Agreement shall be determined by
    the Administrator, and such terms and conditions may differ
    among individual Awards and grantees. Notwithstanding the
    foregoing, in the event that any such Deferred Stock Award
    granted to employees shall have a performance-based goal, the
    restriction period with respect to such Award shall not be less
    than one year, and in the event any such Deferred Stock Award
    granted to employees shall have a time-based restriction, the
    total restriction period with respect to such Award shall not be
    less than two years; provided, however, that any Deferred Stock
    Award with a time-based restriction may become vested
    incrementally over such two-year period. At the end of the
    deferral period, the Deferred Stock Award, to the extent vested,
    shall be settled in the form of shares of Stock. To the extent
    that a Deferred Stock Award is subject to Section 409A, it
    may contain such additional terms and conditions as the
    Administrator shall determine in its sole discretion in order
    for such Award to comply with the requirements of
    Section 409A.

 

    (b) Election to Receive Deferred Stock Awards in Lieu of
    Compensation.  The Administrator may, in its sole
    discretion, permit a grantee to elect to receive a portion of
    future cash compensation otherwise due to such grantee in the
    form of a Deferred Stock Award. Any such election shall be made
    in writing and shall be delivered to the Company no later than
    the date specified by the Administrator and in accordance with
    Section 409A and such other rules and procedures
    established by the Administrator. Any such future cash
    compensation that the grantee elects to defer shall be converted
    to a fixed number of phantom stock units based on the Fair
    Market Value of Stock on the date the compensation would
    otherwise have been paid to the grantee if such payment had not
    been deferred as provided herein. The Administrator shall have
    the sole right to determine whether and under what circumstances
    to permit such elections and to impose such limitations and
    other terms and conditions thereon as the Administrator deems
    appropriate.

 

    (c) Rights as a Stockholder.  A grantee
    shall have the rights as a stockholder only as to shares of
    Stock acquired by the grantee upon settlement of a Deferred
    Stock Award.

 

    (d) Termination.  Except as may otherwise
    be provided by the Administrator either in the Award Agreement
    or, subject to Section 17 below, in writing after the Award
    Agreement is issued, a grantee’s right in

    

8

 

    all Deferred Stock Awards that have not vested shall
    automatically terminate upon the grantee’s termination of
    employment (or cessation of service relationship) with the
    Company and its Subsidiaries for any reason.

 

    Section 9.  Unrestricted
    Stock Awards
    

 

    Grant or Sale of Unrestricted
    Stock.  The Administrator may, in its sole
    discretion, grant (or sell at par value or such higher purchase
    price determined by the Administrator) an Unrestricted Stock
    Award under the Plan. Unrestricted Stock Awards may be granted
    in respect of past services or other valid consideration, or in
    lieu of cash compensation due to such grantee.

 

    Section 10.  Cash-Based
    Awards
    

 

    Grant of Cash-Based Awards.  The
    Administrator may, in its sole discretion, grant Cash-Based
    Awards to any grantee in such number or amount and upon such
    terms, and subject to such conditions, as the Administrator
    shall determine at the time of grant. The Administrator shall
    determine the maximum duration of the Cash-Based Award, the
    amount of cash to which the Cash-Based Award pertains, the
    conditions upon which the Cash-Based Award shall become vested
    or payable, and such other provisions as the Administrator shall
    determine. Each Cash-Based Award shall specify a
    cash-denominated payment amount, formula or payment ranges as
    determined by the Administrator. Payment, if any, with respect
    to a Cash-Based Award shall be made in accordance with the terms
    of the Award and may be made in cash or in shares of Stock, as
    the Administrator determines.

 

    Section 11.  Performance
    Share Awards

 

    (a) Nature of Performance Share
    Awards.  The Administrator may, in its sole
    discretion, grant Performance Share Awards independent of, or in
    connection with, the granting of any other Award under the Plan.
    The Administrator shall determine whether and to whom
    Performance Share Awards shall be granted, the Performance
    Goals, the periods during which performance is to be measured,
    which may not be less than one year, and such other limitations
    and conditions as the Administrator shall determine.

 

    (b) Rights as a Stockholder.  A grantee
    receiving a Performance Share Award shall have the rights of a
    stockholder only as to shares actually received by the grantee
    under the Plan and not with respect to shares subject to the
    Award but not actually received by the grantee. A grantee shall
    be entitled to receive shares of Stock under a Performance Share
    Award only upon satisfaction of all conditions specified in the
    Performance Share Award agreement (or in a performance plan
    adopted by the Administrator).

 

    (c) Termination.  Except as may otherwise
    be provided by the Administrator either in the Award agreement
    or, subject to Section 17 below, in writing after the Award
    agreement is issued, a grantee’s rights in all Performance
    Share Awards shall automatically terminate upon the
    grantee’s termination of employment (or cessation of
    service relationship) with the Company and its Subsidiaries for
    any reason.

 

    Section
    12.  Performance-Based
    Awards to Covered Employees
    

 

    (a) Performance-Based Awards.  Any
    employee or other key person providing services to the Company
    and who is selected by the Administrator may be granted one or
    more Performance-Based Awards in the form of a Restricted Stock
    Award, Deferred Stock Award, Performance Share Awards or
    Cash-Based Award payable upon the attainment of Performance
    Goals that are established by the Administrator and relate to
    one or more of the Performance Criteria, in each case on a
    specified date or dates or over any period or periods determined
    by the Administrator. The Administrator shall define in an
    objective fashion the manner of calculating the Performance
    Criteria it selects to use for any Performance Period. Depending
    on the Performance Criteria used to establish such Performance
    Goals, the Performance Goals may be expressed in terms of
    overall Company performance or the performance of a division,
    business unit, or an individual. The Administrator, in its
    discretion, may adjust or modify the calculation of Performance
    Goals for such Performance Period in order to prevent the
    dilution or enlargement of the rights of an individual
    (i) in the event of, or in anticipation of, any unusual or
    extraordinary corporate item, transaction, event or development,
    (ii) in recognition of, or in anticipation of, any other
    unusual or nonrecurring events affecting the Company, or the
    financial statements of

    

9

 

    the Company, or (iii) in response to, or in anticipation
    of, changes in applicable laws, regulations, accounting
    principles, or business conditions provided however, that the
    Administrator may not exercise such discretion in a manner that
    would increase the Performance-Based Award granted to a Covered
    Employee. Each Performance-Based Award shall comply with the
    provisions set forth below.

 

    (b) Grant of Performance-Based
    Awards.  With respect to each Performance-Based
    Award granted to a Covered Employee, the Administrator shall
    select, within the first 90 days of a Performance Cycle
    (or, if shorter, within the maximum period allowed under
    Section 162(m) of the Code) the Performance Criteria for
    such grant, and the Performance Goals with respect to each
    Performance Criterion (including a threshold level of
    performance below which no amount will become payable with
    respect to such Award). Each Performance-Based Award will
    specify the amount payable, or the formula for determining the
    amount payable, upon achievement of the various applicable
    performance targets. The Performance Criteria established by the
    Administrator may be (but need not be) different for each
    Performance Cycle and different Performance Goals may be
    applicable to Performance-Based Awards to different Covered
    Employees.

 

    (c) Payment of Performance-Based
    Awards.  Following the completion of a Performance
    Cycle, the Administrator shall meet to review and certify in
    writing whether, and to what extent, the Performance Goals for
    the Performance Cycle have been achieved and, if so, to also
    calculate and certify in writing the amount of the
    Performance-Based Awards earned for the Performance Cycle. The
    Administrator shall then determine the actual size of each
    Covered Employee’s Performance-Based Award, and, in doing
    so, may reduce or eliminate the amount of the Performance-Based
    Award for a Covered Employee if, in its sole judgment, such
    reduction or elimination is appropriate.

 

    (d) Maximum Award Payable.  The maximum
    Performance-Based Award payable to any one Covered Employee
    under the Plan for a Performance Cycle is 1,000,000 Shares
    (subject to adjustment as provided in Section 3(c) hereof)
    or $2,000,000 in the case of a Performance-Based Award that is a
    Cash-Based Award.

 

    Section 13.  Transferability
    of Awards
    

 

    (a) Transferability.  Except as provided
    in Section 13(b) below, during a grantee’s lifetime,
    his or her Awards shall be exercisable only by the grantee, or
    by the grantee’s legal representative or guardian in the
    event of the grantee’s incapacity. No Awards shall be sold,
    assigned, transferred or otherwise encumbered or disposed of by
    a grantee other than by will or by the laws of descent and
    distribution or pursuant to a domestic relations order. No
    Awards shall be subject, in whole or in part, to attachment,
    execution, or levy of any kind, and any purported transfer in
    violation hereof shall be null and void.

 

    (b) Administrator Action.  Notwithstanding
    Section 13(a), the Administrator, in its discretion, may
    provide either in the Award Agreement regarding a given Award or
    by subsequent written approval that the grantee (who is an
    employee or director) may transfer his or her Awards (other than
    any Incentive Stock Options or Deferred Stock Awards) to his or
    her immediate family members, to trusts for the benefit of such
    family members, or to partnerships in which such family members
    are the only partners, provided that the transferee agrees in
    writing with the Company to be bound by all of the terms and
    conditions of this Plan and the applicable Award.

 

    (c) Family Member.  For purposes of
    Section 13(b), “family member” shall mean a
    grantee’s child, stepchild, grandchild, parent, stepparent,
    grandparent, spouse, former spouse, sibling, niece, nephew,
    mother-in-law,
    father-in-law,
    son-in-law,
    daughter-in-law,
    brother-in-law,
    or
    sister-in-law,
    including adoptive relationships, any person sharing the
    grantee’s household (other than a tenant of the grantee), a
    trust in which these persons (or the grantee) have more than
    50 percent of the beneficial interest, a foundation in
    which these persons (or the grantee) control the management of
    assets, and any other entity in which these persons (or the
    grantee) own more than 50 percent of the voting interests.

 

    (d) Designation of Beneficiary.  Each
    grantee to whom an Award has been made under the Plan may
    designate a beneficiary or beneficiaries to exercise any Award
    or receive any payment under any Award payable on or after the
    grantee’s death. Any such designation shall be on a form
    provided for that purpose by the Administrator and shall not be
    effective until received by the Administrator. If no beneficiary
    has been

    

10

 

    designated by a deceased grantee, or if the designated
    beneficiaries have predeceased the grantee, the beneficiary
    shall be the grantee’s estate.

 

    Section 14.  Tax
    Withholding
    

 

    (a) Payment by Grantee.  Each grantee
    shall, no later than the date as of which the value of an Award
    or of any Stock or other amounts received thereunder first
    becomes includable in the gross income of the grantee for
    Federal income tax purposes, pay to the Company, or make
    arrangements satisfactory to the Administrator regarding payment
    of, any Federal, state, or local taxes of any kind required by
    law to be withheld by the Company with respect to such income.
    The Company and its Subsidiaries shall, to the extent permitted
    by law, have the right to deduct any such taxes from any payment
    of any kind otherwise due to the grantee. The Company’s
    obligation to deliver evidence of book entry (or stock
    certificates) to any grantee is subject to and conditioned on
    tax withholding obligations being satisfied by the grantee.

 

    (b) Payment in Stock. Subject to approval by the
    Administrator, a grantee may elect to have the Company’s
    minimum required tax withholding obligation satisfied, in whole
    or in part, by authorizing the Company to withhold from shares
    of Stock to be issued pursuant to any Award a number of shares
    with an aggregate Fair Market Value (as of the date the
    withholding is effected) that would satisfy the withholding
    amount due.

 

    Section 15.  Section 409A
    Awards
    

 

    To the extent that any Award is determined to constitute
    “nonqualified deferred compensation” within the
    meaning of Section 409A (a “409A Award”), the
    Award shall be subject to such additional rules and requirements
    as specified by the Administrator from time to time in order to
    comply with Section 409A. In this regard, if any amount
    under a 409A Award is payable upon a “separation from
    service” (within the meaning of Section 409A) to a
    grantee who is then considered a “specified employee”
    (within the meaning of Section 409A), then no such payment
    shall be made prior to the date that is the earlier of
    (i) six months and one day after the grantee’s
    separation from service, or (ii) the grantee’s death,
    but only to the extent such delay is necessary to prevent such
    payment from being subject to interest, penalties
    and/or
    additional tax imposed pursuant to Section 409A. Further,
    the settlement of any such Award may not be accelerated except
    to the extent permitted by Section 409A.

 

    Section 16.  Transfer,
    Leave of Absence, Etc.
    

 

    For purposes of the Plan, the following events shall not be
    deemed a termination of employment:

 

    (a) a transfer to the employment of the Company from a
    Subsidiary or from the Company to a Subsidiary, or from one
    Subsidiary to another; or

 

    (b) an approved leave of absence for military service or
    sickness, or for any other purpose approved by the Company, if
    the employee’s right to re-employment is guaranteed either
    by a statute or by contract or under the policy pursuant to
    which the leave of absence was granted or if the Administrator
    otherwise so provides in writing.

 

    Section 17.  Amendments
    and Termination
    

 

    The Board may, at any time, amend or discontinue the Plan and
    the Administrator may, at any time, amend or cancel any
    outstanding Award for the purpose of satisfying changes in law
    or for any other lawful purpose, but no such action shall
    adversely affect rights under any outstanding Award without the
    holder’s consent. Except as provided in Section 3(c)
    or 3(d), without prior stockholder approval, in no event may the
    Administrator exercise its discretion to reduce the exercise
    price of outstanding Stock Options or Stock Appreciation Rights
    or effect repricing through cancellation and re-grants. To the
    extent required under the rules of any securities exchange or
    market system on which the Stock is listed, to the extent
    determined by the Administrator to be required by the Code to
    ensure that Incentive Stock Options granted under the Plan are
    qualified under Section 422 of the Code, or to ensure that
    compensation earned under Awards qualifies as

    

    11

 

    performance-based compensation under Section 162(m) of the
    Code, Plan amendments shall be subject to approval by the
    Company stockholders entitled to vote at a meeting of
    stockholders. Nothing in this Section 17 shall limit the
    Administrator’s authority to take any action permitted
    pursuant to Section 3(d).

 

    Section 18.  Status
    of Plan
    

 

    With respect to the portion of any Award that has not been
    exercised and any payments in cash, Stock or other consideration
    not received by a grantee, a grantee shall have no rights
    greater than those of a general creditor of the Company unless
    the Administrator shall otherwise expressly determine in
    connection with any Award or Awards. In its sole discretion, the
    Administrator may authorize the creation of trusts or other
    arrangements to meet the Company’s obligations to deliver
    Stock or make payments with respect to Awards hereunder,
    provided that the existence of such trusts or other arrangements
    is consistent with the foregoing sentence.

 

    Section 19.  General
    Provisions
    

 

    (a) No Distribution.  The Administrator
    may require each person acquiring Stock pursuant to an Award to
    represent to and agree with the Company in writing that such
    person is acquiring the shares without a view to distribution
    thereof.

 

    (b) Delivery of Stock Certificates.  Stock
    certificates to grantees under this Plan shall be deemed
    delivered for all purposes when the Company or a stock transfer
    agent of the Company shall have mailed such certificates in the
    United States mail, addressed to the grantee, at the
    grantee’s last known address on file with the Company.
    Uncertificated Stock shall be deemed delivered for all purposes
    when the Company or a Stock transfer agent of the Company shall
    have given to the grantee by electronic mail (with proof of
    receipt) or by United States mail, addressed to the grantee, at
    the grantee’s last known address on file with the Company,
    notice of issuance and recorded the issuance in its records
    (which may include electronic “book entry” records).
    Notwithstanding anything herein to the contrary, the Company
    shall not be required to issue or deliver any certificates
    evidencing shares of Stock pursuant to the exercise of any
    Award, unless and until the Administrator has determined, with
    advice of counsel (to the extent the Administrator deems such
    advice necessary or advisable), that the issuance and delivery
    of such certificates is in compliance with all applicable laws,
    regulations of governmental authorities and, if applicable, the
    requirements of any exchange on which the shares of Stock are
    listed, quoted or traded. All Stock certificates delivered
    pursuant to the Plan shall be subject to any stop-transfer
    orders and other restrictions as the Administrator deems
    necessary or advisable to comply with federal, state or foreign
    jurisdiction, securities or other laws, rules and quotation
    system on which the Stock is listed, quoted or traded. The
    Administrator may place legends on any Stock certificate to
    reference restrictions applicable to the Stock. In addition to
    the terms and conditions provided herein, the Administrator may
    require that an individual make such reasonable covenants,
    agreements, and representations as the Administrator, in its
    discretion, deems necessary or advisable in order to comply with
    any such laws, regulations, or requirements. The Administrator
    shall have the right to require any individual to comply with
    any timing or other restrictions with respect to the settlement
    or exercise of any Award, including a window-period limitation,
    as may be imposed in the discretion of the Administrator.

 

    (c) Stockholder Rights.  Until Stock is
    deemed delivered in accordance with Section 19(b), no right
    to vote or receive dividends or any other rights of a
    stockholder will exist with respect to shares of Stock to be
    issued in connection with an Award, notwithstanding the exercise
    of a Stock Option or any other action by the grantee with
    respect to an Award.

 

    (d) Other Compensation Arrangements; No Employment
    Rights. Nothing contained in this Plan shall prevent the Board
    from adopting other or additional compensation arrangements,
    including trusts, and such arrangements may be either generally
    applicable or applicable only in specific cases. The adoption of
    this Plan and the grant of Awards do not confer upon any
    employee any right to continued employment with the Company or
    any Subsidiary.

 

    (e) Trading Policy Restrictions.  Option
    exercises and other Awards under the Plan shall be subject to
    such Company’s insider trading policy and procedures, as in
    effect from time to time.

    

    12

 

    (f) Forfeiture of Awards under Sarbanes-Oxley
    Act.  If the Company is required to prepare an
    accounting restatement due to the material noncompliance of the
    Company, as a result of misconduct, with any financial reporting
    requirement under the securities laws, then any grantee who is
    one of the individuals subject to automatic forfeiture under
    Section 304 of the Sarbanes-Oxley Act of 2002 shall
    reimburse the Company for the amount of any Award received by
    such individual under the Plan during the
    12-month
    period following the first public issuance or filing with the
    United States Securities and Exchange Commission, as the case
    may be, of the financial document embodying such financial
    reporting requirement.

 

    Section 20.  Effective
    Date of Plan
    

 

    This Plan shall become effective upon approval by the holders of
    a majority of the votes cast at a meeting of stockholders at
    which a quorum is present. No grants of Stock Options and other
    Awards may be made hereunder after the tenth anniversary of the
    Effective Date and no grants of Incentive Stock Options may be
    made hereunder after the tenth anniversary of the date the Plan
    is approved by the Board.

 

    Section 21.  Governing
    Law
    

 

    This Plan and all Awards and actions taken thereunder shall be
    governed by, and construed in accordance with, the laws of the
    Commonwealth of Massachusetts, applied without regard to
    conflict of law principles.

 

    DATE APPROVED BY BOARD OF DIRECTORS: March 4, 2008

 

    DATE APPROVED BY STOCKHOLDERS: May 19, 2008

    

    13

 

EPIX PHARMACEUTICALS INC. 2008 STOCK OPTION AND INCENTIVE PLAN

Incentive Stock Option Terms And Conditions

	1.	 	Option Price. The price to be paid for each share of Common Stock upon exercise of
the whole or any part of this Option shall be the amount set forth as the Option Price on the
face of this Certificate, which is not less than 100% of the fair market value of a share of
Common Stock, $0.01 par value, of the Company on the Date of Grant.
	 
	2.	 	Exercisability Schedule. This Option may be exercised with respect to the aggregate
number of shares set forth in the Exercisability Schedule on the face of this Certificate at
any time after the dates specified in such schedule; provided however, that this Option may
not be exercised as to any shares after the expiration of ten (10) years from the Date of
Grant.
	 
	3.	 	Method and Terms of Exercise. This Option may be exercised at any time, and from time
to time, subject to the limitation of Section 2 above, up to the aggregate number of shares
specified herein, but in no event for the purchase of other than full shares. Written notice
of exercise shall be delivered to the Company specifying the number of shares with respect to
which the Option is being exercised and a date not later than fifteen (15) days after the date
of the delivery of such notice as the date on which the Optionholder will take up and pay for
such shares. On the date specified in such notice, the Company will deliver to the
Optionholder a certificate for the number of shares with respect to which the Option is being
exercised against payment therefor in cash, by certified check or in such other form,
including shares of Common Stock of the Company valued at their Fair Market Value on the date
of delivery, as the Administrator may at the time of exercise approve. Shares may also be
delivered through electronic book entries.
	 
	4.	 	Rights as a Stockholder or Employee. The Optionholder shall not be deemed, for
any purpose, to have any rights whatever in respect of shares to which the Option shall not
have been exercised and payment made as aforesaid. The Optionholder shall not be deemed to have any rights to continue employment by,
or other business relationship with, the Company by virtue of the grant of this Option.

	5.	 	Recapitalizations, Mergers, Etc. In the event that the Administrator determines that
any stock dividend, split-up, combination or reclassification of shares, extraordinary cash
dividend, recapitalization or other similar capital change affects the Common Stock of the
Company such that adjustment is required in order to preserve the benefits or potential
benefits of this Option, the maximum aggregate number and kind of shares or securities of the
Company subject to this Option and the exercise price of this Option shall be appropriately
adjusted by the Administrator (whose determination shall be conclusive) so that the
proportionate number of shares or other securities subject to this Option and the
proportionate interest of the Optionholder shall be maintained as before the occurrence of
such event.
	 
	 	 	Upon the occurrence of an Acquisition Event (as defined below) (regardless of whether such
event also constitutes Change in Control (as defined below)), the Administrator shall
provide that this Option shall be assumed, or equivalent options shall be substituted, by
the acquiring or succeeding corporation (or an affiliate thereof; provided
that if such Acquisition Event also constitutes Change in Control, except to the
extent specifically provided to the contrary in this agreement or any other agreement
between the Optionholder and the Company, such assumed or substituted options shall become
immediately exercisable in full if, on or prior to eighteen (18) months following the date
of the consummation of the Change in Control, a Termination Event (as defined below) occurs.
	 
	 	 	Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate
thereof) does not agree to assume, or substitute for; this Option, then the

 

 

Administrator shall (x) upon written notice to the Optionholder, provide that all of the
then unexercised portion of this Option (whether or not then exercisable) will become
exercisable in full as of a specified time prior to the Acquisition Event and will terminate
immediately prior to the consummation of such Acquisition Event, except to the extent
exercised by the Optionholder before the consummation of such Acquisition Event, and/or (y)
in the event of an Acquisition Event under the terms of which holders of Common Stock will
receive upon consummation thereof a cash payment for each share of Common Stock surrendered
pursuant to such Acquisition Event (the “Acquisition Price”), provide that this Option shall
terminate upon consummation of such Acquisition Event and the Optionholder 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 this Option (whether or
not then exercisable), exceeds (B) the aggregate exercise price of this Option.

Following the occurrence of a Change in Control that does not also constitute an Acquisition
Event, except to the extent specifically provided to the contrary in this agreement or any
other agreement between the Optionholder and the Company, this Option shall become
immediately exercisable in full if, on or prior to eighteen (18) months following the date
of the consummation of the Change in Control, a Termination Event occurs.

	(A)	 	An “Acquisition Event” shall mean:

	 	(i)	 	any merger or consolidation of the Company with or into another entity as a
result of which the Common Stock is converted into, or exchanged for, the right to
receive cash, securities or other property; or
	 
	 	(ii)	 	any exchange of shares of the Company for cash, securities or other property
pursuant to a statutory share exchange transaction; or
	 
	 	(iii)	 	any sale or exchange of all or substantially all of the assets of the Company
in one (1) transaction or in a series of transactions; or
	 
	 	(iv)	 	a reorganization or liquidation of the Company.

	(B)	 	“Change in Control” means the occurrence of any of the following events:

	 	(i)	 	Merger/Sale of Assets. A (i) merger or consolidation of the Company
whether or not approved by the Board of Directors, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or the parent of such
corporation) at least 50% of the total voting power represented by the voting
securities of the Company or such surviving entity or parent of such corporation
outstanding immediately after such merger or consolidation, or (ii) the stockholders of
the Company approve an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets; or
	 
	 	(ii)	 	Ownership. Any “Person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined
in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then
outstanding voting securities (excluding for this purpose the Company or its Affiliates or
any employee benefit plan of the Company) pursuant to a transaction or a series of related
transactions which the Board of Directors does not approve.

3

 

	(C)	 	“Cause” shall mean (i) conviction of any felony or any crime involving moral turpitude or
dishonesty; (ii) participation in a fraud or act of dishonesty against the Company (or, if
applicable, a successor corporation to the Company); (iii) willful and material breach of
the Company’s policies (or, if applicable, a successor corporation to the Company); (iv)
intentional and material damage to the Company’s property (or, if applicable, a successor
corporation to the Company); or (v) material breach of the Optionholder’s confidentiality
obligations or duties under the Optionholder’s nondisclosure, non-competition or other
similar agreement with the Company (or, if applicable, a successor corporation to the
Company).
	 
	(D)	 	“Termination Event” shall mean the termination of the Optionholder’s
employment (i) by the Company or the acquiring or succeeding corporation without
Cause; or (ii) by the Optionholder upon written notice given promptly after the
Company’s or the acquiring or succeeding corporation’s taking any of the following
actions, which actions shall not have been cured within a 30-day period following
such notice: (a) the principal place of the performance of the Optionholder’s
responsibilities (the “Principal Location”) is changed to a location outside of a
30-mile radius from the Principal Location immediately prior to the Change in
Control Event; (b) there is a material reduction in the Optionholder’s salary; or
(c) there is a material diminution in the scope of the Optionholder’s
responsibilities without the Optionholder’s agreement or without Cause (excluding
increases in responsibility and lateral moves to jobs with similar descriptions).
	 
	6.	 	Option Not Transferable. This Option is not transferable by the Optionholder
otherwise than by will or the laws of descent and distribution, and is exercisable, during the
Optionholder’s lifetime, only by him or her.
	 
	7.	 	Exercise of Option after Termination of Employment. If the Optionholder’s employment terminates with (i) the Company, or
(ii) a corporation (or parent or subsidiary corporation of such corporation) issuing or assuming this Option, he or she
 may exercise this Option only to the extent exercisable within three (3) months from the
date of termination. If his or her employment is terminated for reason of disability, such
rights may be exercised within twelve (12) months from the date of termination. Upon the
death of the Optionholder, those entitled to do so by the Optionholder’s will or the laws of
decent and distribution shall have the right, at any time within twelve (12) months after
the date of death, to exercise in whole or in part this Option to the extent it was
exercisable by the Optionholder at the time of his or her death. This Option shall
terminate, and no rights hereunder may be exercised, after the expiration of the applicable
exercise period. Notwithstanding the foregoing provisions of this Section 7, no right under
this Option may be exercised after the expiration of ten (10) years from the Date of Grant.
Any portion of the Option that is not exercisable at the time of the Optionholder’s
termination of employment shall immediately terminate and be of no further force and effect.

	8.	 	Compliance with Securities Laws. It shall
be a condition to the Optionholder’s right to purchase shares of Common
Stock hereunder that the Company may, in its discretion, require (a) that
the shares of Common Stock reserved for issue upon the exercise of this
Option shall have been duly listed, upon official notice of issuance,
upon any national securities exchange on which the Company’s Common Stock
may then be listed, (b) that either (i) a registration statement under
the Securities Act of 1933, as amended, with respect to said shares shall
be in effect, or (ii) in the opinion of counsel for the Company the
proposed purchase
shall be exempt from registration under said Act and the Optionholder
shall have made such undertakings and agreements with the Company as the
Company may reasonably require, and (c) that such other steps, if any as
counsel for the Company shall deem necessary to comply with any law, rule
or regulation applicable to the issue of such shares by the Company shall
have been taken by the Company or the Optionholder, or both. The
certificates representing the shares purchased under this Option may
contain such legends, as counsel for the Company shall deem necessary to
comply with any applicable law, rule or regulation.

4

 

	9.	 	Payment of Taxes. Any exercise of this Option is conditioned upon the payment, if the
Company so requests, by the Optionholder or his or her heirs by will or by the laws of decent
and distribution, of all state and federal taxes required to be withheld in connection with
such exercise. In the Administrator’s discretion, such minimum tax withholding obligations may
be paid in whole or in part in shares of Common Stock, including retention of shares being
purchased by the Optionholder, valued at their Fair Market Value on the date of delivery. The
Company may to the extent permitted by law deduct any such minimum tax withholding obligations
from any payment of any kind otherwise due to the Optionholder.
	 
	10.	 	Notice of Sale of Shares Required. The Optionholder agrees to notify the Company in
writing within thirty (30) days of the disposition of one or more shares of stock, which were
transferred to him or her pursuant to his or her exercise of this Option if such disposition
occurs within two (2) years of the Date of Grant or within one (1) year after the transfer of
such shares to him or her.
	 
	11.	 	Plan Incorporated by Reference. The Option is issued pursuant to the terms of the
Plan. This Certificate does not set forth all of the terms and conditions of the Plan, which
are incorporated herein by reference. Capitalized terms used and not otherwise defined herein
have the meanings given to them in the Plan. Copies of the Plan may be obtained upon written
request without charge from the Company.
	 
	12.	 	Section 422. This Option is intended to be treated as an Incentive
Stock Option under Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

5

 

EPIX PHARMACEUTICALS INC. 2008 STOCK OPTION AND INCENTIVE PLAN

Nonstatutory Stock Option Terms And Conditions

	1.	 	Option Price. The price to be paid for each share of Common Stock upon exercise of
the whole or any part of this Option shall be the amount set forth as the Option Price on the
face of this Certificate, which is not less than 100% of the fair market value of a share of
Common Stock, $0.01 par value, of the Company on the Date of Grant.
	 
	2.	 	Exercisability Schedule. This Option may be exercised with respect to the aggregate
number of shares set forth in the Exercisability Schedule on the face of this Certificate at
any time after the dates specified in such schedule; provided however, that this Option may
not be exercised as to any shares after the expiration of ten (10) years from the Date of
Grant.
	 
	3.	 	Method and Terms of Exercise. This Option may be exercised at any time, and from time
to time, subject to the limitation of Section 2 above, up to the aggregate number of shares
specified herein, but in no event for the purchase of other than full shares. Written notice
of exercise shall be delivered to the Company specifying the number of shares with respect to
which the Option is being exercised and a date not later than fifteen (15) days after the date
of the delivery of such notice as the date on which the Optionholder will take up and pay for
such shares. On the date specified in such notice, the Company will deliver to the
Optionholder a certificate for the number of shares with respect to which the Option is being
exercised against payment therefor in cash, by certified check or in such other form,
including shares of Common Stock of the Company valued at their Fair Market Value on the date
of delivery, as the Administrator may at the time of exercise approve. Shares may also be
delivered through electronic book entries.
	 
	4.	 	Rights as a Stockholder or Employee. The Optionholder shall not be deemed, for
any purpose, to have any rights whatever in respect of shares to which the Option shall not
have been exercised and payment made as aforesaid. The Optionholder shall not be deemed to have any rights to continue employment by,
or other business relationship with, the Company by virtue of the grant of this Option.

	5.	 	Recapitalizations, Mergers, Etc. In the event that the Administrator determines that
any stock dividend, split-up, combination or reclassification of shares, extraordinary cash
dividend, recapitalization or other similar capital change affects the Common Stock of the
Company such that adjustment is required in order to preserve the benefits or potential
benefits of this Option, the maximum aggregate number and kind of shares or securities of the
Company subject to this Option and the exercise price of this Option shall be appropriately
adjusted by the Administrator (whose determination shall be conclusive) so that the
proportionate number of shares or other securities subject to this Option and the
proportionate interest of the Optionholder shall be maintained as before the occurrence of
such event.
	 
	 	 	Upon the occurrence of an Acquisition Event (as defined below) (regardless of whether such
event also constitutes Change in Control (as defined below)), the Administrator shall
provide that this Option shall be assumed, or equivalent options shall be substituted, by
the acquiring or succeeding corporation (or an affiliate thereof; provided
that if such Acquisition Event also constitutes Change in Control, except to the
extent specifically provided to the contrary in this agreement or any other agreement
between the Optionholder and the Company, such assumed or substituted options shall become
immediately exercisable in full if, on or prior to eighteen (18) months following the date
of the consummation of the Change in Control, a Termination Event (as defined below) occurs.
	 
	 	 	Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate
thereof) does not agree to assume, or substitute for; this Option, then the

 

 

Administrator shall (x) upon written notice to the Optionholder, provide that all of the
then unexercised portion of this Option (whether or not then exercisable) will become
exercisable in full as of a specified time prior to the Acquisition Event and will terminate
immediately prior to the consummation of such Acquisition Event, except to the extent
exercised by the Optionholder before the consummation of such Acquisition Event, and/or (y)
in the event of an Acquisition Event under the terms of which holders of Common Stock will
receive upon consummation thereof a cash payment for each share of Common Stock surrendered
pursuant to such Acquisition Event (the “Acquisition Price”), provide that this Option shall
terminate upon consummation of such Acquisition Event and the Optionholder 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 this Option (whether or
not then exercisable), exceeds (B) the aggregate exercise price of this Option.

Following the occurrence of a Change in Control that does not also constitute an Acquisition
Event, except to the extent specifically provided to the contrary in this agreement or any
other agreement between the Optionholder and the Company, this Option shall become
immediately exercisable in full if, on or prior to
eighteen (18) months following the date of the consummation of the Change in Control, a
Termination Event occurs.

	(A)	 	An “Acquisition Event” shall mean:

	 	(i)	 	any merger or consolidation of the Company with or into another entity as a
result of which the Common Stock is converted into, or exchanged for, the right to
receive cash, securities or other property; or
	 
	 	(ii)	 	any exchange of shares of the Company for cash, securities or other property
pursuant to a statutory share exchange transaction; or
	 
	 	(iii)	 	any sale or exchange of all or substantially all of the assets of the Company
in one (1) transaction or in a series of transactions; or
	 
	 	(iv)	 	a reorganization or liquidation of the Company.

	(B)	 	“Change in Control” means the occurrence of any of the following events:

	 	(i)	 	Merger/Sale of Assets. A (i) merger or consolidation of the Company
whether or not approved by the Board of Directors, other than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or the parent of such
corporation) at least 50% of the total voting power represented by the voting
securities of the Company or such surviving entity or parent of such corporation
outstanding immediately after such merger or consolidation, or (ii) the stockholders of
the Company approve an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets; or
	 
	 	(ii)	 	Ownership. Any “Person” (as such term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined
in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then
outstanding voting securities (excluding for this purpose the Company or its Affiliates or
any employee benefit plan of the Company) pursuant to a transaction or a series of related
transactions which the Board of Directors does not approve.

2

 

	(C)	 	“Cause” shall mean (i) conviction of any felony or any crime involving moral turpitude or
dishonesty; (ii) participation in a fraud or act of dishonesty against the Company (or, if
applicable, a successor corporation to the Company); (iii) willful and material breach of the
Company’s policies (or, if applicable, a successor corporation to the Company); (iv)
intentional and material damage to the Company’s property (or, if applicable, a successor
corporation to the Company); or (v) material breach of the Optionholder’s confidentiality
obligations or duties under the Optionholder’s nondisclosure, non-competition or other similar
agreement with the Company (or, if applicable, a successor corporation to the Company).
	 
	(D)	 	“Termination Event” shall mean the termination of the Optionholder’s employment (i) by the
Company or the acquiring or succeeding corporation without Cause; or (ii) by the Optionholder
upon written notice given promptly after the Company’s or the acquiring or succeeding
corporation’s taking any of the following actions, which actions shall not have been cured
within a 30-day period following such notice: (a) the principal place of
the performance of the Optionholder’s responsibilities (the “Principal Location”) is changed
to a location outside of a 30-mile radius from the Principal Location immediately prior to
the Change in Control Event; (b) there is a material reduction in the Optionholder’s salary;
or (c) there is a material diminution in the scope of the Optionholder’s responsibilities
without the Optionholder’s agreement or without Cause (excluding increases in responsibility
and lateral moves to jobs with similar descriptions).
	 
	6.	 	Option Not Transferable. This Option is not transferable by the Optionholder
otherwise than by will or the laws of descent and distribution, and is exercisable, during the
Optionholder’s lifetime, only by him or her.
	 
	7.	 	Exercise of Option after Termination. If the Optionholder’s service terminates
(either as an employee, consultant or otherwise) with (i) the Company, or (ii) a
corporation (or parent or subsidiary corporation of such corporation) issuing or assuming
this
Option, he or she may exercise this Option only to the extent exercisable within three (3) months
from the date of termination. If his or her service is terminated for reason of disability,
such rights may be exercised within twelve (12) months from the date of termination. Upon the
death of the Optionholder, those entitled to do so by the Optionholder’s will or the laws of
decent and distribution shall have the right, at any time within twelve (12) months after the
date of death, to exercise in whole or in part this Option to the extent it was exercisable by
the Optionholder at the time of his or her death. This Option shall terminate, and no rights
hereunder may be exercised, after the expiration of the applicable exercise period.
Notwithstanding the foregoing provisions of this Section 7, no right under this Option may be
exercised after the expiration of ten (10) years from the Date of Grant. Any portion of the
Option that is not exercisable at the time of the Optionholder’s termination of service shall
immediately terminate and be of no further force and effect.

	8.	 	Compliance with Securities Laws. It shall be a condition to the Optionholder’s
right to purchase shares of Common Stock hereunder that the Company may, in its discretion,
require (a) that the shares of Common Stock reserved for issue upon the exercise of this
Option shall have been duly listed, upon official notice of issuance, upon any national
securities exchange on which the Company’s Common Stock may then be listed, (b) that either
(i) a registration statement under the Securities Act of 1933, as amended, with respect to
said shares shall be in effect, or (ii) in the opinion of counsel for the Company the
proposed purchase shall be exempt from registration under said Act and the Optionholder
shall have made such undertakings and agreements with the Company as the Company may
reasonably require, and (c) that such other steps, if any as counsel for the Company shall
deem necessary to comply with any law, rule or regulation applicable to the issue of such
shares by the Company shall have been taken by the Company or the Optionholder, or both.
The certificates representing the shares purchased under this Option may contain such
legends, as counsel for the Company shall deem necessary to comply with any applicable law,
rule or regulation.

3

 

	9.	 	Payment of Taxes. Any exercise of this Option is conditioned upon the payment, if the
Company so requests, by the Optionholder or his or her heirs by will or by the laws of decent
and distribution, of all state and federal taxes required to be withheld in connection with
such exercise. In the Administrator’s discretion, such minimum tax withholding obligations may
be paid in whole or in part in shares of Common Stock, including retention of shares being
purchased by the Optionholder, valued at their Fair Market Value on the date of delivery. The
Company may to the extent permitted by law deduct any such minimum tax withholding obligations
from any payment of any kind otherwise due to the Optionholder.
	 
	10.	 	Plan Incorporated by Reference. The Option is issued pursuant to the terms of
the Plan. This Certificate does not set forth all of the terms and conditions of the Plan,
which are incorporated herein by reference. Capitalized terms used and not otherwise
defined herein
have the meanings given to them in the Plan. Copies of the Plan may be obtained upon written
request without charge from the Company.

4

 

Director
Form

EPIX PHARMACEUTICALS INC. 2008 STOCK OPTION AND INCENTIVE PLAN

Nonstatutory Stock Option Terms And Conditions

	1.	 	Option Price. The price to be paid for each share of Common Stock upon exercise of
the whole or any part of this Option shall be the amount set forth as the Option Price on the
face of this Certificate, which is not less than 100% of the fair market value of a share of
Common Stock, $0.01 par value, of the Company on the Date of Grant.
	 
	2.	 	Exercisability Schedule. This Option may be exercised with respect to the aggregate
number of shares set forth in the Exercisability Schedule on the face of this Certificate at
any time after the dates specified in such schedule; provided however, that this Option may
not be exercised as to any shares after the expiration of ten (10) years from the Date of
Grant.
	 
	3.	 	Method and Terms of Exercise. This Option may be exercised at any time, and from time
to time, subject to the limitation of Section 2 above, up to the aggregate number of shares
specified herein, but in no event for the purchase of other than full shares. Written notice
of exercise shall be delivered to the Company specifying the number of shares with respect to
which the Option is being exercised and a date not later than fifteen (15) days after the date
of the delivery of such notice as the date on which the Optionholder will take up and pay for
such shares. On the date specified in such notice, the Company will deliver to the
Optionholder a certificate for the number of shares with respect to which the Option is being
exercised against payment therefor in cash, by certified check or in such other form,
including shares of Common Stock of the Company valued at their Fair Market Value on the date
of delivery, as the Administrator may at the time of exercise approve. Shares may also be
delivered through electronic book entries.
	 
	4.	 	Rights as a Stockholder or Director. The Optionholder shall not be deemed, for
any purpose, to have any rights whatever in respect of shares to which the Option shall not
have been exercised and payment made as aforesaid. The Optionholder shall not be deemed to have any rights to continue as a Director
of the Company by virtue of the grant of this Option.

	5.	 	Recapitalizations, Mergers, Etc. In the event that the Administrator determines that
any stock dividend, split-up, combination or reclassification of shares, extraordinary cash
dividend, recapitalization or other similar capital change affects the Common Stock of the
Company such that adjustment is required in order to preserve the benefits or potential
benefits of this Option, the maximum aggregate number and kind of shares or securities of the
Company subject to this Option and the exercise price of this Option shall be appropriately
adjusted by the Administrator (whose determination shall be conclusive) so that the
proportionate number of shares or other securities subject to this Option and the
proportionate interest of the Optionholder shall be maintained as before the occurrence of
such event.
	 
	6.	 	Change in Control. Upon the occurrence of a Change in Control, this Option shall
become fully exercisable. A “Change in Control” means the occurrence of any of the following
events:

	 	(i)	 	Merger/Sale of Assets. A (i) merger or consolidation of the Company whether or
not approved by the Board of Directors, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or the parent of such
corporation) at least 50% of the total voting power represented by the voting securities
of the Company or such surviving entity or parent of such corporation outstanding
immediately after such merger or consolidation, or (ii) the stockholders of the Company

 

 

approve an agreement for the sale or disposition by the Company of all or substantially all
of the Company’s assets; or

	 	(ii)	 	Ownership. Any “Person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial
Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities
of the Company representing 50% or more of the total voting power represented by the
Company’s then outstanding voting securities (excluding for this purpose the Company or
its Affiliates or any employee benefit plan of the Company) pursuant to a transaction
or a series of related transactions which the Board of Directors does not approve.

	7.	 	Option Not Transferable. This Option is not transferable by the Optionholder
otherwise than by will or the laws of descent and distribution, and is exercisable, during the
Optionholder’s lifetime, only by him or her.
	 
	8.	 	Exercise of Option after Termination. If
the Optionholder’s service terminates (either as a board member,
consultant or otherwise) with (i) the Company, or (ii) a corporation (or
parent or subsidiary corporation of such corporation) issuing or assuming
this Option, he or she may exercise this Option only to the extent
exercisable within six (6) months from the date of termination. If his or
her Board membership is terminated for reason of disability, such rights
may be exercised within twelve (12) months from the date of termination.
Upon the death of the Optionholder, those entitled to do so by the
Optionholder’s will or the laws of decent and distribution shall have the
right, at any time within twelve (12) months after the date of death, to
exercise in whole or in part this Option to the extent it was exercisable
by the Optionholder at the time of his or her death. This Option shall
terminate, and no rights hereunder may be exercised, after the expiration
of the applicable exercise period. Notwithstanding the foregoing
provisions of this Section 8, no right under this Option may be exercised
after the expiration of ten (10) years from the Date of Grant. Any portion of the Option that is not exercisable at the time
of the Optionholder’s termination of service shall immediately terminate and be of no further
force and effect.

	9.	 	Compliance with Securities Laws. It shall be a condition to the Optionholder’s right
to purchase shares of Common Stock hereunder that the Company may, in its discretion, require
(a) that the shares of Common Stock reserved for issue upon the exercise of this Option shall
have been duly listed, upon official notice of issuance, upon any national securities exchange
on which the Company’s Common Stock may then be listed, (b) that either (i) a registration
statement under the Securities Act of 1933, as amended, with respect to said shares shall be
in effect, or (ii) in the opinion of counsel for the Company the proposed purchase shall be
exempt from registration under said Act and the Optionholder shall have made such undertakings
and agreements with the Company as the Company may reasonably require, and (c) that such other
steps, if any as counsel for the Company shall deem necessary to comply with any law, rule or
regulation applicable to the issue of such shares by the Company shall have been taken by the
Company or the Optionholder, or
both. The certificates representing the shares purchased under this Option may contain such
legends, as counsel for the Company shall deem necessary to comply with any applicable law,
rule or regulation.
	 
	10.	 	Plan Incorporated by Reference. The Option is issued pursuant to the terms of the Plan.
This Certificate does not set forth all of the terms and conditions of the Plan, which are
incorporated herein by reference. Capitalized terms used and not otherwise defined herein have the
meanings given to them in the Plan. Copies of the Plan may be obtained upon written request without
charge from the Company.

2

 

FORM OF DEFERRED STOCK AWARD AGREEMENT

UNDER THE EPIX PHARMACEUTICALS, INC.

2008 STOCK OPTION AND INCENTIVE PLAN

Name of Grantee:                                         

No. of phantom stock units granted:                                         

Grant Date:                                                             

     Pursuant to the EPIX Pharmaceuticals, Inc. 2008 Stock Option and Incentive Plan (the “Plan”)
as amended through the date hereof, EPIX Pharmaceuticals, Inc. (the “Company”) hereby grants a
deferred stock award consisting of the number of phantom stock units listed above (an “Award”) to
the Grantee named above. Each phantom stock unit shall relate to one share of Common Stock, par
value $0.01 per share (the “Stock”) of the Company specified above, subject to the restrictions and
conditions set forth herein and in the Plan.

     1. Acceptance of Award. The Grantee shall have no rights with respect to this Award
unless he or she shall have accepted this Award by signing and delivering to the Company a copy of
this Award Agreement.

     2. Restrictions on Transfer of Award.

          (a) The Award may not be sold, transferred, pledged, assigned or otherwise encumbered or
disposed of by the Grantee until (i) the phantom stock units have vested as provided in Section 3
of this Agreement and (ii) shares of Stock have been issued to the Grantee.

          (b) If the Grantee’s employment with the Company and its Subsidiaries is voluntarily or
involuntarily terminated for any reason prior to the satisfaction of the vesting conditions set
forth in Section 3 below, any phantom stock units that have not vested as of such date shall
automatically and without notice terminate, be forfeited and be and become null and void, and
neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives
will thereafter have any further rights or interests in such unvested phantom stock units.

     3. Vesting of Phantom Stock Units. The restrictions and conditions in Section 2 of
this Agreement shall lapse on the Vesting Date or Dates specified in the following schedule so long
as the Grantee remains an employee of the Company or a Subsidiary on such Dates. If a series of
Vesting Dates is specified, then the restrictions and conditions in Section 2 shall lapse only with
respect to the number of phantom stock units specified as vested on such date.

 

 

	 	 	 	 	 
	Number of	 	 
	Units Vested	 	Vesting Date
	 

	 	(___%)	 	 
	 

	 	 	 	 

	 

	 	(___%)	 	 
	 

	 	 	 	 

	 

	 	(___%)	 	 
	 

	 	 	 	 

	 

	 	(___%)	 	 
	 

	 	 	 	 

	 

	 	(___%)	 	 
	 

	 	 	 	 

     The Committee may at any time accelerate the vesting schedule specified in this Section 3.

     4. Dividend Equivalents.

          (a) If on any date the Company shall pay any dividend on shares of Stock of the Company, the
number of phantom stock units credited to the Grantee shall, as of such date, be increased by an
amount determined by the following formula:

          W = (X multiplied by Y) divided by Z, where:

          W = the number of additional phantom stock units to be credited to the Grantee on
such dividend payment date;

X = the aggregate number of phantom stock units (whether vested or unvested)
credited to the Grantee as of the record date of the dividend;

          Y = the cash dividend per share amount; and

          Z = the Fair Market Value per share of Stock (as determined under the Plan) on the
dividend payment date.

          (b) In the case of a dividend paid on Stock in the form of Stock, including without limitation
a distribution of Stock by reason of a stock dividend, stock split or otherwise, the number of
phantom stock units credited to the Grantee shall be increased by a number equal to the product of
(i) the aggregate number of phantom stock units that have been awarded to the Grantee through the
related dividend record date, and (ii) the number of shares of Stock (including any fraction
thereof) payable as dividend on one share of Stock. Any additional phantom stock units shall be
subject to the vesting and restrictions of this Agreement in the same manner and for so long as the
phantom stock units granted pursuant to this Agreement to which they relate remain subject to such
vesting and restrictions, and shall be promptly forfeited to the Company if and when such phantom
stock units are so forfeited.

2

 

     5. Receipt of Shares of Stock.

          (a) As soon as practicable following each Vesting Date, the Company shall issue to the Grantee
a certificate representing the number of shares of Stock equal to the aggregate number of phantom
stock units credited to the Grantee that have vested pursuant to Section 3 of this Agreement on
such date and the Grantee shall thereafter have all the rights of a stockholder of the Company with
respect to such shares, including voting and dividend rights, and such shares of Stock shall not be
restricted by the provisions hereof.

          (b) In the event that the Board of Directors in its discretion determines that any stock
dividend, split-up, combination or reclassification of shares, recapitalization or other similar
capital change affects the Stock of the Company such that adjustment is required in order to
preserve the benefits or potential benefits of the phantom stock units granted under this
Agreement, the number of phantom stock units subject to this Agreement shall be appropriately
adjusted by the Committee (whose determination shall be conclusive).

          (c) Upon the occurrence of an Acquisition Event (as defined below) (regardless of whether such
event also constitutes a Change in Control (as defined below)), the Committee shall provide that
the phantom stock units granted under this Agreement shall be assumed, or equivalent phantom stock
units shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof)
provided that if such Acquisition Event also constitutes a Change in Control, except to the extent
specifically provided to the contrary in this Agreement or any other agreement between the Grantee
and the Company, the restrictions and conditions of such assumed or substituted phantom stock units
shall immediately lapse in full if, on or prior to eighteen (18) months following the date of the
consummation of the Change in Control, a Termination Event (as defined below) occurs.

          (d) Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate
thereof) does not agree to assume, or substitute for, the phantom stock units granted under this
Agreement, then the Committee shall issue to the Grantee the number of shares of Stock equal to the
aggregate number of phantom stock units credited to the Grantee on such date in full satisfaction
of such phantom stock units; provided, however, that in the event the Company is involved in a
transaction in which shares of Stock will be exchanged for cash or other consideration, the Grantee
shall receive cash or other consideration equal in value to the aggregate number of phantom stock
units credited to the Grantee on the date of the Acquisition Event.

          (e) Following the occurrence of a Change in Control that does not also constitute an
Acquisition Event, except to the extent specifically provided to the contrary in this Agreement or
any other agreement between the Grantee and the Company, the restrictions and conditions of the
phantom stock units granted under this Agreement shall immediately lapse in full if, on or prior to
eighteen (18) months following the date of the consummation of the Change in Control, a Termination
Event occurs.

          (f) An “Acquisition Event” shall mean:

          (i) any merger or consolidation of the Company with or into another entity as a result
of which the Stock is converted into, or exchanged for, the right to receive cash,
securities or other property;

3

 

          (ii) any exchange of shares of the Company for cash, securities or other property
pursuant to a statutory share exchange transaction;

          (iii) any sale or exchange of all or substantially all of the assets of the Company in
one (1) transaction or in a series of transactions; or

          (iv) a reorganization or liquidation of the Company.

          (g) “Change in Control” means the occurrence of any of the following events:

          (i) Merger/Sale of Assets. (A) A merger or consolidation of the Company whether or not
approved by the Board of Directors, other than a merger or consolidation which would result
in the voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of
the surviving entity or the parent of such corporation) at least 50% of the total voting
power represented by the voting securities of the Company or such surviving entity or parent
of such corporation outstanding immediately after such merger or consolidation, or (B) the
stockholders of the Company approve an agreement for the sale or disposition by the Company
of all or substantially all of the Company’s assets; or

          (ii) Ownership. Any “Person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in
Rule 13d-3 under said Act), directly or indirectly, of securities of the Company
representing 50% or more of the total voting power represented by the Company’s then
outstanding voting securities (excluding for this purpose the Company or its Affiliates or
any employee benefit plan of the Company) pursuant to a transaction or a series of related
transactions which the Board of Directors does not approve.

          (h) “Cause” shall mean (i) conviction of any felony or any crime involving moral turpitude or
dishonesty; (ii) participation in a fraud or act of dishonesty against the Company (or, if
applicable, a successor corporation to the Company); (iii) willful and material breach of the
Company’s policies (or, if applicable, a successor corporation to the Company); (iv) intentional
and material damage to the Company’s property (or, if applicable, a successor corporation to the
Company); or (v) material breach of the Grantee’s confidentiality obligations or duties under the
Grantee’s nondisclosure, noncompetition or other similar agreement with the Company (or, if
applicable, a successor corporation to the Company).

          (i) “Termination Event” shall mean the termination of the Grantee’s employment (i) by the
Company or the acquiring or succeeding corporation without Cause; or (ii) by the Grantee upon
written notice given promptly after the Company’s or the acquiring or succeeding corporation’s
taking any of the following actions, which actions shall not have been cured within a 30-day period
following such notice: (A) the principal place of the performance of the Grantee’s
responsibilities (the “Principal Location”) is changed to a location outside of a 30-mile radius
from the Principal Location immediately prior to the Change in Control event; (B) there is a
material reduction in the Grantee’s salary; or (C) there is a material diminution in the scope of
the Grantee’s responsibilities without the Grantee’s agreement or without Cause (excluding
increases in responsibility and lateral moves to jobs with similar descriptions).

4

 

     6. Incorporation of Plan. Notwithstanding anything herein to the contrary, this
Agreement shall be subject to and governed by all the terms and conditions of the Plan.
Capitalized terms in this Agreement shall have the meaning specified in the Plan, unless a
different meaning is specified herein.

     7. Tax Withholding. The Grantee shall, not later than the date as of which the
receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company
or make arrangements satisfactory to the Administrator for payment of any Federal, state, and local
taxes required by law to be withheld on account of such taxable event. The Grantee may elect to
have such minimum tax withholding obligation satisfied, in whole or in part, by authorizing the
Company to withhold from shares of Stock to be issued.

     8. No Obligation to Continue Employment. Neither the Company nor any Subsidiary is
obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and
neither the Plan nor this Agreement shall interfere in any way with the right of the Company or any
Subsidiary to terminate the employment of the Grantee at any time.

     9. Notices. Notices hereunder shall be mailed or delivered to the Company at its
principal place of business and shall be mailed or delivered to the Grantee at the address on file
with the Company or, in either case, at such other address as one party may subsequently furnish to
the other party in writing.

	 	 	 	 	 
	 	EPIX PHARMACEUTICALS, INC.

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by
the undersigned.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 

	 	 

Grantee’s Signature
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Grantee’s name and address:	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

5Exhibit 10.1

AMENDMENT

TO

EMPLOYMENT AGREEMENT

This Amendment (this “Amendment”), dated as of May 15, 2008, amends that certain Employment Agreement (the “Employment Agreement”) made and entered into on the 9th day of October, 2001, by and between Globecomm Systems Inc., a Delaware corporation with principal offices located at 45 Oser Avenue, Hauppauge, N.Y. 11788 (the “Company”), and Andrew C. Melfi (the “Executive”).

WITNESSETH:

WHEREAS, since the Effective Date of the Employment Agreement, the Executive has been the Chief Financial Officer of the Company (all capitalized terms not defined in this Amendment shall have the meanings ascribed to them in the Employment Agreement); and

WHEREAS, in recognition of the ever-increasing responsibilities placed upon the Chief Financial Officer of the Company following the adoption of the Sarbanes-Oxley Act of 2002, the evolving and increasingly complex auditing standards for public companies, the extra burdens placed on the Chief Financial Officer as the Company enhances its acquisition program, and to reward past performance and provide an incentive for future performance, it is desirable to increase (i) the “Severance Period” set forth in the Employment Agreement of the Chief Financial Officer from two (2) years to three (3) years and (ii) the “Special Bonus” set forth in the Employment Agreement of the Chief Financial Officer from 200% of his Salary to 300% of his Salary.

NOW, THEREFORE, the parties hereto hereby agree to amend the Employment Agreement as follows:

	
                        1.
 	
                        Termination and Severance.
 

Section 10(b)(ii)(A) of the Employment Agreement is hereby deleted and replaced in full with the following:

“(ii) Subject to Section 11, if the Company terminates the Executive’s employment without Cause, or the Executive terminates his employment for Good Reason (A) the Company shall continue to pay the Executive the Salary for a three (3) year severance period commencing upon the effective date of the termination (the “Severance Period”);”

The third sentence of Section 10(g) is hereby deleted and replaced in full with the following:

“If the Executive does not provide the Company notice of resignation or non-renewal and remains employed by the Company during the year following a Change in Control, as defined below, the Executive shall be paid a one-time bonus payment of 300% of his Salary (the “Special Bonus”).”

	
                        2.
 	
                        Effect of this Amendment. As amended hereby, the Employment Agreement shall remain in full force and effect.
 

 

 

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as of the date first set forth above.

 

	
                        EXECUTIVE
 	
                         
 	
                         
 	
                         
 
	
                        
 /s/ Andrew C. Melfi
 	
                         
 	
                         
 	
                          
 
	
                        Andrew C. Melfi
 	
                         
 	
                         
 	
                         
 

 

	
                        GLOBECOMM SYSTEMS INC.
 	
                         
 	
                         
 
	
                        By: 
 	
                        
 /s/ David E. Hershberg
 	
                         
 	
                         
 	
                          
 
	
                        Name: 
 	
                        David E. Hershberg
 	
                         
 	
                         
 	
                         
 
	
                        Title:
 	
                        Chairman of the Board and Chief Executive Officer

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