Document:

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                             ASCENT PEDIATRICS, INC.
                           1992 EQUITY INCENTIVE PLAN
    Amended and Restated as of February 14, 2001 to include Section 25 hereof
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1.     Purpose.
The  purpose  of this plan (the "Plan") is to secure for Ascent Pediatrics, Inc.
(the  "Company")  and  its  shareholders the benefits arising from capital stock
ownership  by  employees, officers and employee directors of, and consultants or
advisors  to, the Company who are expected to contribute to the Company's future
growth  and  success.  Except  where  the  context  otherwise requires, the term
"Company"  shall  include  all present and future subsidiaries of the Company as
defined  in  Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as
amended  or  replaced  from  time to time (the "Code").  Those provisions of the
Plan  which  make  express  reference  to  Section  422  shall apply only to the
Incentive  Stock  Options  (as  that  term  is  defined  in  the  Plan).
2.     Type  of  Options  and  Awards:  Administration.
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     (a)     Types  of Options and Awards.  Options granted pursuant to the Plan
             ----------------------------
may  be  either  incentive stock options ("Incentive Stock Options") meeting the
requirements  of  Section 422 of the Code or non-statutory options which are not
intended  to  meet  the requirements of Section 422 of the Code.  Awards granted
pursuant  to  the  Plan  shall  meet the requirements of Section 13 of the Plan.
(b)     Administration.  The Plan will be administered by the Board of Directors
        --------------
of  the  Company,  whose  construction  and  interpretation  of  the  terms  and
provisions  of  the  Plan shall be final and conclusive.  The Board of Directors
may in its sole discretion (i) grant options to purchase shares of the Company's
Common Stock, $.00004 par value ("Common Stock"), and issue shares upon exercise
of such options as provided in the Plan and (ii) make awards for the purchase of
shares of Common Stock pursuant to Section 13 of the Plan.  The Board shall have
authority,  subject  to  the  express  provisions  of  the Plan, to construe the
respective  option  agreements,  awards  and  the  Plan, to prescribe, amend and
rescind  rules  and regulations relating to the Plan, to determine the terms and
provisions  of  the  respective  option agreements and awards, which need not be
identical,  and to make all other determinations in the judgment of the Board of
Directors  necessary or desirable for the administration of the Plan.  The Board
of  Directors  may  correct  any  defect or supply any omission or reconcile any
inconsistency  in the Plan or in any option agreement or award in the manner and
to the extent it shall deem expedient to carry the Plan into effect and it shall
be  the  sole  and final judge of such expediency.  No director or person acting
pursuant  to  authority  delegated by the Board of Directors shall be liable for
any  action or determination made in good faith.  The Board of Directors may, to
the  full extent permitted by or consistent with applicable laws or regulations,
(i)  delegate  any  or  all  of  its  powers  under  the  Plan to a committee or
subcommittee  (the  "Committee")  appointed  by the Board of Directors, and (ii)
delegate  to  one  or  more executive officers of the Company the power to grant
options  and  made  awards  and exercise such other powers under the Plan as the
Board  may  determine,  provided  that the Board shall fix the maximum number of
shares  subject  to  options and awards and the maximum number of shares for any
one  Participant  to  be made by such executive officers.  All references in the
Plan  to the "Board" shall mean a Committee or the Board or an executive officer
to  the  extent  that  the  Board's powers or authority under the Plan have been
delegated  to  such  Committee  or  executive  officer.
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(c)     Applicability  of  Rule  16b-3.  Those  provisions of the Plan which may
        ------------------------------
express reference to Rule 16b-3 promulgated under the Securities Exchange Act of
1934  (the "Exchange Act") or any successor rule ("Rule 16b-3") shall apply only
to  such  persons  as  are  required  to file reports under Section 16(a) of the
Exchange  Act  (a  "Reporting  Person").
3.     Eligibility.  Options  and  awards  may be granted or made to persons who
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are, at the time of grant, employees, officers or directors (so long as such key
directors  are  also  employees) of, or consultants or advisors to, the Company;
provided  that  the  class  of  persons  to  whom Incentive Stock Options may be
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granted shall be limited to all employees of the Company.  A person who has been
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granted  an  option or award may, if he or she is otherwise eligible, be granted
additional  options  or  awards  if  the  Board of Directors shall so determine.
4.     Stock  Subject  to  Plan.
       ------------------------
     (a)     Subject  to adjustment as provided in Section 16 below, the maximum
number  of  shares  of  Common Stock of the Company which may be issued and sold
under  the  Plan  is  1,350,000 shares.  If an option or award granted under the
Plan  shall  expire or terminate for any reason without having been exercised in
full,  the  unpurchased  shares  subject  to such option or award shall again be
available  for  subsequent  option  grants  or awards under the Plan.  If shares
issued  upon  exercise  of an option or award under the Plan are tendered to the
Company in payment of the exercise price of an option or award granted under the
Plan, such tendered shares shall again be available for subsequent option grants
or  awards  under the Plan; provided, that in no event shall the total number of
shares  issued  pursuant  to  the  exercise of Incentive Stock Options under the
Plan,  on a cumulative basis, exceed the maximum number of shares authorized for
issuance under the Plan exclusive of shares made available for issuance pursuant
to  this  sentence.
(b)     Per-Participant  Limit.  Subject  to  adjustment  under  Section 16, for
        ----------------------
options  or  awards  granted  after  the  Common  Stock  is registered under the
Exchange  Act,  the  maximum  number  of shares with respect to which options or
awards  may  be  granted  to any Participant under the Plan shall be 500,000 per
calendar  year.  The  Per-Participant limit described in this Section 4(b) shall
be  construed  and  applied  consistently  with  Section  162(m)  of  the  Code.
5.     Forms  of  Option  Agreements.
       -----------------------------
As  a  condition  to the grant of an option under the Plan, each recipient of an
option  shall execute an option agreement in such form not inconsistent with the
Plan  as  may be approved by the Board of Directors.  Such option agreements may
differ  among  recipients.
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6.     Purchase  Price  Upon  Exercise  of  Options.
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     (a)     General.  The  purchase  price  per share of stock deliverable upon
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the  exercise of an option shall be determined by the Board of Directors (but in
no  event  shall be less than the par value thereof), provided, however, that in
                                                      --------  -------
the case of an Incentive Stock Option, the exercise price shall not be less than
100%  of  the  fair  market  value  of such stock, as determined by the Board of
Directors,  at  the time of grant of such option, or less than 110% of such fair
market  value  in  the  case  of  options  described  in  Section  11(b).
(b)     Payment  of  Purchase Price.  Options granted under the Plan may provide
        ---------------------------
for  the  payment  of  the  exercise price by delivery of cash or a check to the
order  of  the Company in an amount equal to the exercise price of such options,
or,  to the extent provided in the applicable option agreements, (i) by delivery
to  the  Company  of  shares of Common Stock of the Company already owned by the
optionee having a fair market value equal in amount to the exercise price of the
options being exercised, (ii) by any other means (including, without limitation,
by  delivery  of  a promissory note of the optionee payable on such terms as are
specified by the Board of Directors) which the Board of Directors determines are
consistent with the purpose of the Plan and with applicable laws and regulations
(including,  without  limitation,  the provisions of Rule 16b-3 and Regulation T
promulgated  by  the  Federal Reserve Board) or (iii) by any combination of such
methods of payment.  The fair market value of any shares of the Company's Common
Stock or other non-cash consideration which may be delivered upon exercise of an
option  shall  be determined in such manner as may be prescribed by the Board of
Directors.
7.     Option  Period.
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Each  option and all rights thereunder shall expire on such date as shall be set
forth  in the applicable option agreement, except that such date, in the case of
an  Incentive  Stock  Option, shall in no case be later than ten years after the
date  on which the option is granted and, in all cases, options shall be subject
to  earlier  termination  as  provided  in  the  Plan.
8.     Exercise  of  Options.
       ---------------------
Each  option  granted  under  the Plan shall be exercisable either in full or in
installments  at such time or times and during such period as shall be set forth
in  the agreement evidencing such option, subject to the provisions of the Plan.
9.     Nontransferability  of  Options.
       -------------------------------
Except  as  the  Board  of  Directors  may  otherwise determine or provide in an
option, options shall not be assignable or transferable by the person to whom it
is  granted,  either  voluntarily  or by operation of law, except by will or the
laws of descent and distribution, and, during the life of the optionee, shall be
exercisable  only by the optionee; provided, however, that non-statutory options
may  be  transferred  pursuant  to  the  qualified  domestic relations order (as
defined  in  Rule  16b-3).
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10.     Effect  of  Termination  of  Employment  or  Other  Relationship.
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Except as provided in Section 11(d) with respect to Incentive Stock Options, and
subject  to  the  provisions of the Plan, the Board of Directors shall determine
the period of time during which an optionee may exercise an option following (i)
the  termination  of  the  optionee's  employment or other relationship with the
Company  or (ii) the death or disability of the optionee.  Such periods shall be
set  forth  in  the  agreement  evidencing  such  option.
11.     Incentive  Stock  Options.
        -------------------------
Options  granted under the Plan which are intended to be Incentive Stock Options
shall  be  subject  to  the  following  additional  terms  and  conditions:
     (a)     Express Designation.  All Incentive Stock Options granted under the
             -------------------
Plan  shall,  at  the  time  of grant, be specifically designated as such in the
option  agreement  covering  such  Incentive  Stock  Options.
(b)     10%  Shareholder.  If  any employee to whom an Incentive Stock Option is
        ----------------
to  be  granted  under the Plan is, at the time of the grant of such option, the
owner  of  stock possessing more that 10 % of the total combined voting power of
all  classes  of stock of the Company (after taking into account the attribution
of  stock  ownership  rules  of  Section 424(d) of the Code), then the following
special  provisions shall be applicable to the Incentive Stock Option granted to
such  individual:
     (i)     The  purchase  price  per share of the Common Stock subject to such
Incentive  Stock  Option shall not be less than 110% of the fair market value of
one  share  of  Common  Stock  at  the  time  of  grant;  and
     (ii)     The  option  exercise  period shall not exceed five years from the
date  of  grant.
     (c)     Dollar  Limitation.  For  so  long  as  the  Code shall so provide,
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options  granted  to  any employee under the Plan (and any other incentive stock
option  plans  of  the Company) which are intended to constitute Incentive Stock
Options  shall  not  constitute  Incentive Stock Options to the extent that such
options,  in  the  aggregate,  become  exercisable for the first time in any one
calendar  year  for  shares  of Common Stock with an aggregate fair market value
(determined  as of the respective date or dates of grant) of more than $100,000.
(d)     Termination  of  Employment  Death  or  Disability.  No  Incentive Stock
        --------------------------------------------------
Option  may  be exercised unless, at the time of such exercise, the optionee is,
and has been continuously since the date of grant of his or her option, employed
by  the  Company,  except  that:
     (i)     an  Incentive  Stock  Option  may be exercised within the period of
three months after the date the optionee ceases to be an employee of the Company
(or  within  such  lesser  period  as  may be specified in the applicable option
agreement),  provided,  that  the  agreement  with  respect  to  such option may
             --------
designate  a longer exercise period and that the exercise after such three-month
period  shall  be  treated  as  the exercise of a non-statutory option under the
Plan;
(ii)     if  the  optionee  dies  while  in the employ of the Company, or within
three  months  after  the  optionee ceases to be such an employee, the Incentive
Stock Option may be exercised by the person to whom it is transferred by will or
the  laws  of  descent  and distribution within the period of one year after the
date  of  death  (or  within  such  lesser  period  as  may  be specified in the
applicable  option  agreement);  and
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(iii)     if  the  optionee  becomes  disabled  (within  the  meaning of Section
22(e)(3)  of the Code or any successor provision thereto) while in the employ of
the  Company,  the  Incentive Stock Option may be exercised within the period of
one  year  after  the date the optionee ceases to be such an employee because of
such  disability  (or  within  such  lesser  period  as  may be specified in the
applicable  option  agreement).
For  all  purposes  of  the  Plan  and  any  option  or award granted hereunder,
"employment"  shall  be  defined  in  accordance  with the provisions of Section
1.421-7(h)  of  the  Income  Tax  Regulations  (or  any  successor regulations).
Notwithstanding  the  foregoing  provisions,  no  Incentive  Stock Option may be
exercised  after  its  expiration  date.
12.     Additional  Provisions.
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     (a)     Additional  Option  Provisions.  The Board of Directors may, in its
             ------------------------------
sole  discretion,  include additional provisions in any option granted under the
Plan, including without limitation restrictions on transfer (including rights of
first  refusal  in  favor of the Company), repurchase rights, commitments to pay
cash  bonuses,  to  make,  arrange  for  or  guaranty loans or to transfer other
property  to  optionees  upon  exercise  of options, or such other provisions as
shall  be  determined  by  the Board of Directors; provided that such additional
                                                   -------------
provisions  shall  not  be  inconsistent with any other term or condition of the
Plan  and  such additional provisions shall not cause any Incentive Stock Option
granted  under  the  Plan to fail to qualify as an Incentive Stock Option within
the  meaning  of  Section  422  of  the  Code.
(b)     Acceleration,  Extension,  etc.  The Board of Directors may, in its sole
discretion,  (i)  accelerate  the  date  or dates on which all or any particular
option  or  options  granted  under the Plan may be exercised or (ii) extend the
dates  during  which  all, or any particular option or options granted under the
Plan  may  be  exercised;  provided  however,  that  no  such extension shall be
permitted  if  it would cause the Plan to fail to comply with Section 422 of the
Code  or  with  Rule  16b-3.
13.     Awards.
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A restricted stock award ("award") shall consist of the sale and issuance by the
Company  of  shares  of  Common Stock, and the purchase by the recipient of such
shares,  subject  to  the  terms,  conditions  and restrictions described in the
document  evidencing the award and in this Section 13 and elsewhere in the Plan.
     (a)     Execution  of  Restricted Stock Award Agreement.  As a condition to
             -----------------------------------------------
an  award  under the Plan, each recipient of an award shall execute an agreement
in  such  form,  which may differ among recipients, as shall be specified by the
Board  of  Directors  at  the  time  of  such  award.
(b)     Price.  The Board of Directors shall determine the price at which shares
        -----
of  Common  Stock  shall  be  sold to recipients of awards under the Plan (which
shall  not  be less than the par value thereof).  The Board of Directors may, in
its  discretion, issue shares pursuant to awards without the payment of any cash
purchase  price  by  the  recipients  or  issue  shares  pursuant to awards at a
purchase  price  below  the  then  fair  market value of the Common Stock.  If a
purchase  price  is  required  to  be paid, it shall be paid in cash or by check
payable  to  the  order of the Company at the time that the award is accepted by
the  recipient.
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(c)     Number  of  Shares.  The  award  shall  specify  the number of shares of
        ------------------
Common  Stock  granted  thereunder.
(d)     Restrictions  on  Transfer.  In addition to such other terms, conditions
        --------------------------
and  restrictions upon awards as shall be imposed by the Board of Directors, all
shares  issued  pursuant  to  an  award  shall  be  subject  to  the  following
restrictions:
     (1)     All  shares  of  Common  Stock  subject  to an award (including any
shares  issued  pursuant  to  paragraph (e) of this Section) shall be subject to
certain  restrictions on disposition and obligations of resale to the Company as
provided  in  subparagraph  (2)  below  for the period specified in the document
evidencing  the  award,  and  shall not be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of until such restrictions lapse.  The period
during  which such restrictions are applicable is referred to as the "Restricted
Period".
(2)     In  the  event  that  a  recipient's  employment  with  the  Company (or
consultancy  or  advisory relationship, as the case may be) is terminated within
the  Restricted  Period,  whether  such termination is voluntary or involuntary,
with  or  without cause, or because of the death or disability of the recipient,
the  Company  shall  have  the  rights  and  option  for  a period of sixty days
following  such  termination to buy for cash that number of the shares of Common
Stock  purchased  under  the  award as to which the restrictions on transfer and
forfeiture  provisions  contained  in the award have not then lapsed, at a price
equal  to  the  price  per  share  originally  paid  by  the recipient.  If such
termination  occurs  within  the last sixty days of the applicable restrictions,
the  restrictions  and  repurchase rights of the Company shall continue to apply
until  the  expiration  of  the  Company's  sixty-day  option  period.
(3)     Notwithstanding  subparagraphs (1) and (2) above, the Board of Directors
may,  in its discretion, either at the time that an award is made or at any time
thereafter,  waive  its  right  to  repurchase  shares  of Common Stock upon the
occurrence  of  any  of  the events described in this paragraph (d) or remove or
modify any part or all of the restrictions.  In addition, the Board of Directors
may,  in  its  discretion,  impose upon the recipient of an award at the time of
such  award  such other restrictions (including rights of first refusal in favor
of  the  Company) on any shares of Common Stock issued pursuant to such award as
the  Board  of  Directors  may  deem  advisable.
     (e)     Additional  Shares.  Any Shares received by a recipient of an award
             ------------------
as  a stock dividend on, or as a result of stock splits, combinations, exchanges
of  shares,  reorganizations,  mergers, consolidations or otherwise with respect
to,  shares  of Common Stock received pursuant to such award shall have the same
status  and  shall  bear the same restrictions, all on a proportionate basis, as
the  shares  initially  purchased  pursuant  to  such  award.
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(f)     Transfers  in  Breach  of  Award.  If  any  transfer of shares purchased
        --------------------------------
pursuant  to an award is made or attempted contrary to the terms of the Plan and
of  such  award, the Board of Directors shall have the right to purchase for the
account  of  the Company, from the owner thereof or his or her transferee at any
time  before  or after the transfer, that number of shares of Common Stock as to
which  the  restrictions  on  transfer  and  forfeiture provisions have not then
lapsed at the price paid for such shares by the person to whom they were awarded
under  the  Plan.  In addition to any other legal or equitable remedies which it
may  have,  the  Company  may  enforce its rights by specific performance to the
extent permitted by law.  The Company may refuse for any purpose to recognize as
a  shareholder of the Company any transferee who receives any shares contrary to
the  provisions of the Plan and the applicable award, and the Company may retain
and/or  recover  all  dividends  on  such  shares  which  were  paid  or payable
subsequent  to  the date on which the prohibited transfer was made or attempted.
(g)     Additional  Award  Provisions.  The  Board of Directors may, in its sole
        -----------------------------
discretion,  include  additional provisions in any award granted under the Plan,
including  without limitation commitments to pay cash bonuses, make, arrange for
or  guarantee  loans  or transfer other property to recipients upon the grant of
awards,  or  such  other  provisions  as  shall  be  determined  by the Board of
Directors.
14.     General  Restrictions.
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     (a)     Investment  Representations.  The Company may require any person to
             ---------------------------
whom  an option or award is granted, as a condition of exercising such option or
purchasing  the  shares  subject  to  the  award,  to give written assurances in
substance and form satisfactory to the Company to the effect that such person is
acquiring  the  Common  Stock  subject to the option or award for his or her own
account  for  investment  and  not  with  any  present  intention  of selling or
otherwise  distributing the same, and to such other effects as the Company deems
necessary  or  appropriate  in order to comply with federal and applicable state
securities  laws.
(b)     Compliance With Securities Laws.  Each option and award shall be subject
        -------------------------------
to  the requirement that if, at any time, counsel to the Company shall determine
that  the  listing,  registration or qualification of the shares subject to such
option  or award upon any securities exchange or under any state or federal law,
or  the  consent or approval of any governmental or regulatory body, or that the
disclosure  of non-public information or the satisfaction of any other condition
is  necessary as a condition of, or in connection with, the issuance or purchase
of  shares thereunder, such option or award may not be exercised, in whole or in
part,  unless such listing, registration, qualification, consent or approval, or
satisfaction  of  such  condition,  shall  have  been  effected  or  obtained on
conditions acceptable to the Board of Directors.  Nothing herein shall be deemed
to  require  the Company to apply for or to obtain such listing, registration or
qualification,  or  to  satisfy  such  condition.
15.     Rights  as  a  Shareholder.
        --------------------------
The  holder  of  an  option  or  recipient of an award shall have no rights as a
shareholder  with  respect  to  any  shares  covered  by  the  option  or  award
(including,  without  limitation,  any  rights  to receive dividends or non-cash
distributions  with  respect  to such shares) until the date of issue of a stock
certificate  to  him  or  her  for such shares.  No adjustment shall be made for
dividends  or  other  rights for which the record date is prior to the date such
stock  certificate  is  issued.
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16.     Adjustment  Provisions  for  Recapitalizations and Related Transactions.
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     (a)     General.  If,  through or as a result of any merger, consolidation,
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sale  of  all or substantially all of the assets of the Company, reorganization,
recapitalization,  reclassification,  stock dividend, stock split, reverse stock
split  or  other similar transaction, (i) the outstanding shares of Common Stock
are  increased  or  decreased or are exchanged for a different number or kind of
shares  or  other securities of the Company, or (ii) 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 Common Stock or other securities, an
appropriate  and  proportionate adjustment may be made in (x) the maximum number
and kind of shares reserved for issuance under the Plan, (y) the number and kind
of  shares  or  other  securities  subject to then outstanding options under the
Plan,  and  (z) the price for each share subject to any then outstanding options
under  the  Plan, without changing the aggregate purchase price as to which such
options  remain  exercisable, provided that no adjustment shall be made pursuant
to  this  Section  16  if such adjustment would cause the Plan to fail to comply
with  Section  422  of  the  Code.
(b)     Board Authority to Make Adjustments.  Any adjustments under this Section
        -----------------------------------
16  will  be  made  by  the  Board  of Directors, whose determination as to what
adjustments,  if any, will be made and the extent thereof will be final, binding
and  conclusive.  No  fractional shares will be issued under the Plan on account
of  any  such  adjustments.
17.     Merger  Consolidation  Asset  Sale,  Liquidation  etc.
        -----------------------------------------------------
     (a)     General.  In  the event of a consolidation or merger or sale of all
             -------
or substantially all of the assets of the Company in which outstanding shares of
Common  Stock  are exchanged for securities, cash or other property of any other
corporation  or business entity or in the event of a liquidation of the Company,
the  Board  of  Directors  of  the  Company,  or  the  board of directors of any
corporation  assuming  the  obligations  of the Company, may, in its discretion,
take  any  one  or  more of the following actions, as to outstanding options and
awards:  (i)  provide  that such options shall be assumed, or equivalent options
shall  be  substituted,  by  the  acquiring  or  succeeding  corporation  (or an
affiliate  thereof),  provided  that  any such options substituted for Incentive
                      --------
Stock  Options  shall  meet the requirements of Section 424(a) of the Code, (ii)
upon written notice to the optionees, provided that all unexercised options will
terminate  immediately  prior  to  the  consummation  of such transaction unless
exercised  by  the optionee within a specified period following the date of such
notice,  (iii)  in the event of a merger under the terms of which holders of the
Common  Stock  of  the  Company  will  receive  upon consummation thereof a cash
payment  for  each share surrendered in the merger (the "Merger Price"), make or
provide  for a cash payment to the optionees equal to the difference between (A)
the  Merger  Price  times  the  number of shares of Common Stock subject to such
outstanding  options  (to the extent then exercisable at prices not in excess of
the  Merger  Price) and (B) the aggregate exercise price of all such outstanding
options  in exchange for the termination of such options, and (iv) provided that
all  or  any  outstanding  options  shall  become  exercisable  in  full and all
restrictions  on  outstanding  awards  shall terminate immediately prior to such
event.
(b)     Substitute  Options.  The  Company  may  grant options under the Plan in
        -------------------
substitution  for  options  held  by employees of another corporation who become
employees  of  the  Company,  or a subsidiary of the Company, as the result of a
merger  or  consolidation  of  the  employing  corporation with the Company or a
subsidiary  of the Company, or as a result of the acquisition by the Company, or
one of its subsidiaries, of property or stock of the employing corporation.  The
Company  may  direct  that  substitute  options  be  granted  on  such terms and
conditions as the Board of Directors considers appropriate in the circumstances.
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18.     No  Special  Employment  Rights.
        -------------------------------
Nothing  contained  in  the Plan or in any option or award shall confer upon any
recipient  of an award or optionee any right with respect to the continuation of
his  or  her employment by the Company or interfere in any way with the right of
the  Company at any time to terminate such employment or to increase or decrease
the  compensation  of  the  recipient  or  optionee.
19.     Other  Employee  Benefits.
        -------------------------
Except  as  to  plans which by their terms include such amounts as compensation,
neither the amount of any compensation deemed to be received by an employee as a
result  of  the  exercise  of an option or the sale of shares received upon such
exercise  nor  the  value  of  an  award  granted to an employee will constitute
compensation  with respect to which any other employee benefits of such employee
are  determined,  including,  without  limitation,  benefits  under  any  bonus,
pension,  profit-sharing,  life insurance or salary continuation plan, except as
otherwise  specifically  determined  by  the  Board  of  Directors.
20.     Amendment  of  the  Plan.
        ------------------------
     (a)     The  Board  of  Directors  may  at any time, and from time to time,
modify or amend the Plan in any respect, except that if at any time the approval
of  the  shareholders  of  the  Company  is  required as to such modification or
amendment  under Section 422 of the Code or any successor provision with respect
to  Incentive  Stock  Options,  the  Board  of  Directors  may  not  effect such
modification  or  amendment  without  such  approval.
(b)     The  termination or any modification or amendment of the Plan shall not,
without  the  consent of an optionee or recipient of an award, affect his or her
rights  under  an  option or award previously granted to him or her.  Subject to
the  consent  of  the  optionee or recipient of the award affected, the Board of
Directors  may  amend  outstanding  option  agreements or restricted stock award
agreements  in  a manner not inconsistent with the Plan.  The Board of Directors
shall have the right to amend or modify the terms and provisions of the Plan and
of  any outstanding Incentive Stock Options granted under the Plan to the extent
necessary  to  qualify any or all such options for such favorable federal income
tax  treatment (including deferral of taxation upon exercise) as may be afforded
incentive  stock  options  under  section  422  of  the  Code.
21.     Withholding.
        -----------
     (a)     The  Company  shall  have  the right to deduct from payments of any
kind  otherwise  due to the optionee or recipient of an award any federal, state
or  local  taxes  of any kind required by law to be withheld with respect to any
shares  issued upon exercise of options under the Plan or the purchase of shares
subject  to  the award.  Subject to the prior approval of the Company, which may
be  withheld by the Company in its sole discretion, the optionee or recipient of
an  award  may  elect  to  satisfy such obligations, in whole or in part, (i) by
causing  the  Company  to  withhold  shares  of  Common Stock otherwise issuable
pursuant  to  the  exercise of an option or the purchase of shares subject to an
award  or (ii) by delivering to the Company shares of Common Stock already owned
by  the  optionee or award recipient.  The shares so delivered or withheld shall
have  a fair market value equal to such withholding obligation.  The fair market
value  of  the  shares  used  to  satisfy  such  withholding obligation shall be
10
<PAGE>
determined  by  the Company as of the date that the amount of tax to be withheld
is  to  be  determined.  An optionee or award recipient who has made an election
pursuant  to  this  Section  21(a)  may  only  satisfy  his  or  her withholding
obligation  with shares of Common Stock which are not subject to any repurchase,
forfeiture,  unfulfilled  vesting  or  other  similar  requirements.
(b)     If  the  recipient of an award under the Plan elects, in accordance with
Section  83(b)  of  the  Code,  to  recognize  ordinary  income  in  the year of
acquisition  of  any  shares awarded under the Plan, the Company will require at
the  time  of  such  election an additional payment for withholding tax purposes
based  on  the difference, if any, between the purchase price of such shares and
the  fair  market  value of such shares as of the date immediately preceding the
date  of  the  award.
22.     Cancellation  and  New  Grant  of  Options  etc.
        -----------------------------------------------
The  Board of Directors shall have the authority to effect, at any time and from
time  to  time, with the consent of the affected optionees, (i) the cancellation
of  any  or all outstanding options under the Plan and the grant in substitution
therefor of new options under the Plan covering the same or different numbers of
shares  of  Common  Stock  and  having an option to exercise the price per share
which  may  be lower or higher than the exercise price per share of the canceled
options  or  (ii)  the amendment of the terms of any and all outstanding options
under  the Plan to provide an option exercise price per share which is higher or
lower  than  the  then  current  exercise  price  per  share of such outstanding
options.
23.     Effective  Date  and  Duration  of  the  Plan.
        ---------------------------------------------
     (a)     Effective  Date.  The  Plan  shall become effective when adopted by
             ---------------
the  Board  of  Directors,  but no Incentive Stock Option granted under the Plan
shall  become  exercisable unless and until the Plan shall have been approved by
the Company's shareholders.  If such shareholder approval is not obtained within
twelve  months  after  the  date of the Board's adoption of the Plan, no options
previously  granted under the Plan shall be deemed to be Incentive Stock Options
and  no  Incentive Stock Options shall be granted thereafter.  Amendments to the
Plan  not  requiring shareholder approval shall become effective when adopted by
the  Board  of Directors; amendments requiring shareholder approval (as provided
in  Section  20)  shall become effective when adopted by the Board of Directors,
but  no  Incentive  Stock  Option  issued after the date of such amendment shall
become  exercisable  (to the extent that such amendment to the Plan was required
to  enable  the  Company  to  grant  such Incentive Stock Option to a particular
optionee)  unless  and  until  such  amendment  shall  have been approved by the
Company's  shareholders.  If  such  shareholder  approval is not obtained within
twelve  months  of  the  Board's adoption of such amendment, any Incentive Stock
Options  granted  on  or after the date of such amendment shall terminate to the
extent  that  such  amendment  to the Plan was required to enable the Company to
grant such option to a particular optionee.  Subject to this limitation, options
and  awards  may  be granted under the Plan at any time after the effective date
and  before  the  date  fixed  for  termination  of  the  Plan.
11
<PAGE>
(b)     Termination.  Unless  sooner  terminated  in accordance with Section 17,
        -----------
the  Plan  shall  terminate,  with  respect to Incentive Stock Options, upon the
earlier  of  (i)  the  close  of  business  on  the day next preceding the tenth
anniversary  of  the date of its adoption by the Board of Directors, or (ii) the
date  on  which all shares available for issuance under the Plan shall have been
issued  pursuant to the exercise of cancellation of options or the final vesting
of  awards  granted  under the Plan. Unless sooner terminated in accordance with
Section  17,  the  Plan  shall  terminate  with respect to options which are not
Incentive  Stock Options and awards on the date specified in (ii) above.  If the
date  of  termination is determined under (i) above, then options outstanding on
such  date  shall  continue  to  have  force  and  effect in accordance with the
provisions  of  the  instruments  evidencing  such  options.
24.     Provision  for  Foreign  Participants.
        -------------------------------------
The  Board of Directors may, without amending the Plan, modify awards or options
granted to participants who are foreign nationals or employed outside the United
States  to  recognize differences in laws, rules, regulations or customs of such
foreign  jurisdictions  with  respect  to  tax,  securities,  currency, employee
benefit  or  other  matters.
25.      Change  in  Control  of  Company.
         --------------------------------
     (a)     Notwithstanding  anything  in  the  Plan to the contrary, effective
upon  the consummation of a Change in Control of the Company, the exercisability
of  all  options then outstanding under the Plan shall be accelerated in full so
that  such  options  shall become immediately exercisable to purchase all of the
Depositary Shares covered by such options and all restrictions and conditions on
awards  outstanding  under  the Plan shall automatically be deemed terminated or
satisfied.
(b)     For  purposes  of  the  Plan,  a  "Change  in  Control"  shall  mean:
     (1)     the  acquisition  by  an  individual,  entity  or group (within the
meaning  of  Section  13(d)(3)  or 14(d)(2) of the Exchange Act) (a "Person") of
beneficial  ownership  of  any  capital  stock  of  the  Company  if, after such
acquisition,  such  Person  beneficially  owns (within the meaning of Rule 13d-3
promulgated  under  the  Exchange  Act)  50%  or  more  of  either  (x)  the
then-outstanding  Depositary  Shares of the Company (the "Outstanding Depositary
Shares")  or (y) the combined voting power of the then-outstanding securities of
the  Company  entitled  to  vote  generally  in  the  election of directors (the
"Outstanding  Company Voting Securities"); provided, however, that the following
                                           --------  -------
acquisitions  shall  not  constitute  a  Change  in Control: (A) any acquisition
directly  from  the  Company (excluding an acquisition pursuant to the exercise,
conversion  or  exchange  of  any  security exercisable for, convertible into or
exchangeable  for  Depositary Shares or voting securities of the Company, unless
the  Person  exercising,  converting  or  exchanging such security acquired such
security  directly  from the Company or an underwriter or agent of the Company),
(B) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained  by  the Company or any corporation controlled by the Company, or (C)
any  acquisition  by  any  corporation  pursuant  to  a Business Combination (as
defined  below)  which complies with clauses (x) and (y)  of subsection (iii) of
this  definition;  or
12
<PAGE>
(2)     such  time  as  the  Continuing  Directors  (as  defined  below)  do not
constitute a majority of the Board (or, if applicable, the Board of Directors of
a  successor  corporation  to the Company), where the term "Continuing Director"
means  at  any  date  a member of the Board (x) who was a member of the Board on
December 13, 2000 or (y) who was nominated or elected subsequent to such date by
at  least  a majority of the directors who were Continuing Directors at the time
of such nomination or election or whose election to the Board was recommended or
endorsed  by  at least a majority of the directors who were Continuing Directors
at  the time of such nomination or election; provided, however, that there shall
                                             --------  -------
be  excluded  from  this  clause  (y) any individual whose initial assumption of
office  occurred  as  a  result of an actual or threatened election contest with
respect  to the election or removal of directors (as such terms are used in Rule
14a-11  of Regulation 14A promulgated under the Exchange Act) or other actual or
threatened  solicitation  of  proxies  or  consents, by or on behalf of a person
other  than  the  Board;  or
(3)     the  consummation  of  a  merger,  consolidation,  reorganization,
recapitalization  or statutory share exchange involving the Company or a sale or
other  disposition  of  all or substantially all of the assets of the Company (a
"Business  Combination"),  unless,  immediately  following  such  Business
Combination,  each  of  the  following  two  conditions is satisfied: (x) all or
substantially all of the individuals and entities who were the beneficial owners
of  the  Outstanding Depositary Shares and Outstanding Company Voting Securities
immediately  prior  to  such  Business Combination beneficially own, directly or
indirectly,  more than 50% of the then-outstanding common stock and the combined
voting  power  of  the then-outstanding securities entitled to vote generally in
the  election  of directors (or other persons having the general power to direct
the  affairs  of  such  entity),  respectively,  of  the  resulting or acquiring
corporation  in  such  Business  Combination  (which  shall  include,  without
limitation, a corporation which as a result of such transaction owns the Company
or  substantially  all of the Company's assets either directly or through one or
more  subsidiaries)  (such  resulting  or  acquiring  corporation is referred to
herein  as the "Acquiring Corporation") in substantially the same proportions as
their  ownership  of  the  Outstanding Depositary Shares and Outstanding Company
Voting  Securities, respectively, immediately prior to such Business Combination
and  (y)  no Person (excluding the Acquiring Corporation or any employee benefit
plan  (or  related  trust)  maintained  or  sponsored  by  the Company or by the
Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of
the  then-outstanding  Depositary Shares of the Acquiring Corporation, or of the
combined  voting  power  of  the then-outstanding securities of such corporation
entitled  to  vote  generally in the election of directors (except to the extent
that  such  ownership  existed  prior  to  the  Business  Combination);  or
(4)     the  approval  by  the stockholders of the Company of a complete plan of
liquidation.

13
<PAGE>

Adopted  by  the  Board  of  Directors  on
September  30,  1992
Approved  by  the  Stockholders  on
February  26,  1993
Amendment  adopted  by  the  Board  of
Directors  on  March  7,  1997
Amendment  approved  by  the  Stockholders
on  April  17,  1997
Amended  and  Restated  by  the  Board  of
Directors  on  February  14,  20011
<PAGE>
                             ASCENT PEDIATRICS, INC.
                            1999 STOCK INCENTIVE PLAN
   Amended and Restated as of February 14, 2001 to include Section 11 hereof.

1.     Purpose
       -------
The purpose of this 1999 Stock Incentive Plan (the "Plan") of Ascent Pediatrics,
Inc., a Delaware corporation (the "Company"), is to advance the interests of the
Company's stockholders by enhancing the Company's ability to attract, retain and
motivate  persons  who make (or are expected to make) important contributions to
the  Company  by  providing such persons with equity ownership opportunities and
performance-based  incentives  and thereby better aligning the interests of such
persons  with  those  of  the  Company's stockholders.  Except where the context
otherwise  requires,  the  term  "Company"  shall  include  any of the Company's
present  or  future  subsidiary corporations as defined in Section 424(f) of the
Internal  Revenue  Code  of  1986,  as  amended, and any regulations promulgated
thereunder  (the  "Code")  and  any  other  business venture (including, without
limitation, joint venture or limited liability company) in which the Company has
a  significant  interest, as determined by the Board of Directors of the Company
(the  "Board").
2.     Eligibility
       -----------
All  of  the  Company's employees, officers, directors, consultants and advisors
(and  any individuals who have accepted an offer for employment) are eligible to
be  granted options, restricted stock awards, or other stock-based awards (each,
an "Award") under the Plan.  Each person who has been granted an Award under the
Plan  shall  be  deemed  a  "Participant".
3.     Administration,  Delegation
       ---------------------------
     (a)     Administration  by  Board  of  Directors.  The  Plan  will  be
             ----------------------------------------
administered  by  the Board.  The Board shall have authority to grant Awards and
to  adopt,  amend and repeal such administrative rules, guidelines and practices
relating  to  the  Plan  as  it shall deem advisable.  The Board may correct any
defect,  supply  any  omission or reconcile any inconsistency in the Plan or any
Award  in the manner and to the extent it shall deem expedient to carry the Plan
into  effect  and  it shall be the sole and final judge of such expediency.  All
decisions by the Board shall be made in the Board's sole discretion and shall be
final  and binding on all persons having or claiming any interest in the Plan or
in  any Award.  No director or person acting pursuant to the authority delegated
by  the  Board  shall  be  liable for any action or determination relating to or
under  the  Plan  made  in  good  faith.
(b)     Delegation to Executive Officers.  To the extent permitted by applicable
        --------------------------------
law, the Board may delegate to one or more executive officers of the Company the
power  to make Awards and exercise such other powers under the Plan as the Board
may  determine,  provided  that the Board shall fix the maximum number of shares
subject to Awards and the maximum number of shares for any one Participant to be
made  by  such  executive  officers.
2
<PAGE>
(c)     Appointment  of  Committees.  To the extent permitted by applicable law,
        ---------------------------
the  Board  may  delegate any or all of its powers under the Plan to one or more
committees or subcommittees of the Board (a "Committee").  All references in the
Plan  to  the  "Board"  shall  mean the Board or a Committee of the Board or the
executive  officer  referred  to  in Section 3(b) to the extent that the Board's
powers  or  authority  under  the  Plan have been delegated to such Committee or
executive  officer.
4.     Stock  Available  for  Awards
       -----------------------------
     (a)     Number  of  Shares.  Subject  to adjustment under Section 8, Awards
             ------------------
may be made under the Plan for up to 500,000 shares of common stock, $.00004 par
value  per  share, of the Company (the "Common Stock").  If any Award expires or
is terminated, surrendered or canceled without having been fully exercised or is
forfeited  in  whole or in part or results in any Common Stock not being issued,
the  unused  Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan, subject, however, in the case of Incentive Stock
Options  (as  hereinafter  defined),  to any limitation required under the Code.
Shares  issued  under the Plan may consist in whole or in part of authorized but
unissued  shares  or  treasury  shares.
(b)     Per-Participant  Limit.  Subject  to  adjustment  under  Section  8, the
        ----------------------
maximum  number  of shares of Common Stock with respect to which an Award may be
granted  to  any  Participant under the Plan shall be 400,000 per calendar year.
The  per-Participant limit described in this Section 4(c) shall be construed and
applied  consistently  with  Section  162(m)  of  the  Code.
5.     Stock  Options
       --------------
     (a)     General.  The  Board  may  grant  options  to purchase Common Stock
             -------
(each,  an  "Option")  and  determine the number of shares of Common Stock to be
covered by each Option, the exercise price of each Option and the conditions and
limitations  applicable  to  the  exercise  of each Option, including conditions
relating  to  applicable  federal  or  state  securities  laws,  as it considers
necessary  or  advisable.  An  Option  which  is not intended to be an Incentive
Stock  Option (as hereinafter defined) shall be designated a "Nonstatutory Stock
Option".
(b)     Incentive  Stock  Options.  An  Option  that  the Board intends to be an
        -------------------------
"incentive  stock  option"  as defined in Section 422 of the Code (an "Incentive
Stock  Option")  shall  only be granted to employees of the Company and shall be
subject  to and shall be construed consistently with the requirements of Section
422  of  the Code.  The Company shall have no liability to a Participant, or any
other  party,  if  an  Option  (or  any part thereof) which is intended to be an
Incentive  Stock  Option  is  not  an  Incentive  Stock  Option.
(c)     Exercise  Price.  The  Board  shall  establish the exercise price at the
        ---------------
time  each  Option is granted and specify it in the applicable option agreement;
provided,  however,  that  the exercise price shall not be less than 100% of the
fair  market  value of the Common Stock, as determined by the Board, at the time
the  Option  is  granted.
3
<PAGE>
(d)     Duration of Options.  Each Option shall be exercisable at such times and
        -------------------
subject  to such terms and conditions as the Board may specify in the applicable
option  agreement;  provided, however, that no Option will be granted for a term
in  excess  of 10 years and that no Option granted hereunder may be exercised on
the  Option  Closing  Date  (as  defined  in  Section  8(d)  below).
(e)     Exercise of Option.  Options may be exercised by delivery to the Company
        ------------------
of a written notice of exercise signed by the proper person or by any other form
of  notice  (including  electronic  notice)  approved by the Board together with
payment  in full as specified in Section 5(f) for the number of shares for which
the  Option  is  exercised.
(f)     Payment  Upon  Exercise.  Common Stock purchased upon the exercise of an
        ------------------------
Option  granted  under  the  Plan  shall  be  paid  for  as  follows:
     (1)     in  cash  or  by  check,  payable  to  the  order  of  the Company;
(2)     except as the Board may, in its sole discretion, otherwise provide in an
option  agreement,  by  (i)  delivery  of  an  irrevocable  and  unconditional
undertaking  by  a  creditworthy  broker  to  deliver  promptly  to  the Company
sufficient  funds  to pay the exercise price or (ii) delivery by the Participant
to  the  Company  of  a  copy of irrevocable and unconditional instructions to a
creditworthy  broker  to  deliver  promptly  to  the  Company  cash  or  a check
sufficient  to  pay  the  exercise  price;
(3)     by delivery of shares of Common Stock owned by the Participant valued at
their  fair market value as determined by (or in a manner approved by) the Board
in good faith ("Fair Market Value"), provided (i) such method of payment is then
permitted  under  applicable  law  and  (ii)  such  Common Stock as owned by the
Participant  at  least  six  months  prior  to  such  delivery;
(4)     to  the  extent  permitted  by  the Board, in its sole discretion by (i)
delivery  of  a  promissory  note  of  the  Participant  to the Company on terms
determined  by  the Board, or (ii) payment of such other lawful consideration as
the  Board  may  determine;  or
(5)     by  any  combination  of  the  above  permitted  forms  of  payment.
6.     Restricted  Stock
       -----------------
     (a)     Grants.  The Board may grant Awards entitling recipients to acquire
             ------
shares of Common Stock, subject to the right of the Company to repurchase all or
part of such shares at their issue price or other stated or formula price (or to
require  forfeiture  of  such shares if issued at no cost) from the recipient in
the event that conditions specified by the Board in the applicable Award are not
satisfied  prior  to  the  end  of  the applicable restriction period or periods
established  by  the  Board  for  such Award (each, a "Restricted Stock Award").
(b)     Terms  and  Conditions.  The  Board  shall  determine  the  terms  and
        ----------------------
conditions  of  any  such  Restricted  Stock Award, including the conditions for
        -
repurchase  (or forfeiture) and the issue price, if any.  Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name of
the  Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its  designee).  At  the  expiration  of the applicable restriction periods, the
Company  (or  such designee) shall deliver the certificates no longer subject to
4
<PAGE>
such  restrictions  to  the  Participant  or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant to
receive  amounts  due  or exercise rights of the Participant in the event of the
Participant's  death  (the  "Designated  Beneficiary").  In  the  absence  of an
effective  designation  by  a Participant, Designated Beneficiary shall mean the
Participant's  estate.
7.     Other  Stock-Based  Awards
       --------------------------
The Board shall have the right to grant other Awards based upon the Common Stock
having such terms and conditions as the Board may determine, including the grant
of  shares  based  upon  certain conditions, the grant of securities convertible
into  Common  Stock  and  the  grant  of  stock  appreciation  rights.
8.     Adjustments  for  Changes  in  Common  Stock  and  Certain  Other  Events
       -------------------------------------------------------------------------
     (a)     Changes  in  Capitalization.  In  the  event  of  any  stock split,
             ---------------------------
reverse  stock  split,  stock dividend, recapitalization, combination of shares,
reclassification  of  shares, spin-off or other similar change in capitalization
or  event,  or  any  distribution to holders of Common Stock other than a normal
cash dividend, (i) the number and class of securities available under this Plan,
(ii)  the  per-Participant limit set forth in Section 4(c), (iii) the number and
class  of  securities  and  exercise price per share subject to each outstanding
Option,  (iv)  the  repurchase  price  per  share  subject  to  each outstanding
Restricted  Stock Award, and (v) the terms of each other outstanding Award shall
be  appropriately adjusted by the Company (or substituted Awards may be made, if
applicable) to the extent the Board shall determine, in good faith, that such an
adjustment (or substitution) is necessary and appropriate.  If this Section 8(a)
applies  and  Section  8(c)  also  applies  to  any event, Section 8(c) shall be
applicable  to  such  event,  and  this  Section  8(a)  shall not be applicable.
(b)     Liquidation  or  Dissolution.  In the event of a proposed liquidation or
        ----------------------------
dissolution  of  the  Company,  the  Board  shall  upon  written  notice  to the
Participants  provide  that  all  then  unexercised  Options  will  (i)  become
exercisable  in  full  as of a specified time at least 10 business days prior to
the  effective  date  of  such  liquidation  or  dissolution  and (ii) terminate
effective  upon  such liquidation or dissolution, except to the extent exercised
before  such  effective date.  The Board may specify the effect of a liquidation
or  dissolution  on  any Restricted Stock Award or other Award granted under the
Plan  at  the  time  of  the  grant  of  such  Award.
(c)     Acquisition  Events
        -------------------
     (1)     Definition.  An  "Acquisition Event" shall mean:  (a) 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 (b) any exchange of shares of the Company for
cash,  securities  or  other  property  pursuant  to  a statutory share exchange
transaction.
5
<PAGE>
(2)     Consequences  of  an Acquisition Event on Options.   Upon the occurrence
        --------------------------------------------------
of  an  Acquisition Event, or the execution by the Company of any agreement with
respect  to  an  Acquisition Event, the Board shall provide that all outstanding
Options  shall  be  assumed,  or equivalent options shall be substituted, by the
acquiring  or  succeeding  corporation  (or an affiliate thereof).  For purposes
hereof,  an  Option shall be considered to be assumed if, following consummation
of  the  Acquisition  Event,  the Option confers the right to purchase, for each
share  of  Common  Stock  subject  to  the  Option  immediately  prior  to  the
consummation  of  the  Acquisition  Event,  the  consideration  (whether  cash,
securities  or  other property) received as a result of the Acquisition Event by
holders of Common Stock for each share of Common Stock held immediately prior to
the  consummation of the Acquisition Event (and if holders were offered a choice
of  consideration, the type of consideration chosen by the holders of a majority
of  the  outstanding  shares  of  Common  Stock); provided, however, that if the
consideration received as a result of the Acquisition Event is not solely common
stock  of the acquiring or succeeding corporation (or an affiliate thereof), the
Company  may,  with  the  consent  of  the  acquiring or succeeding corporation,
provide  for  the  consideration  to be received upon the exercise of Options to
consist solely of common stock of the acquiring or succeeding corporation (or an
affiliate  thereof)  equivalent  in  fair  market  value  to  the  per  share
consideration  received  by  holders  of outstanding shares of Common Stock as a
result  of  the  Acquisition  Event.
Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an
affiliate  thereof)  does  not agree to assume, or substitute for, such Options,
then  the Board shall, upon written notice to the Participants, provide that all
then  unexercised Options 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
Participants  before  the  consummation  of  such  Acquisition  Event; provided,
however,  that  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"),  then  the  Board  may  instead  provide  that  all
outstanding  Options shall terminate upon consummation of such Acquisition Event
and  that  each  Participant shall receive, in exchange therefor, a cash payment
equal  to  the  amount (if any) by which (A) the Acquisition Price multiplied by
the  number  of  shares  of  Common  Stock  subject  to such outstanding Options
(whether  or  not then exercisable), exceeds (B) the aggregate exercise price of
such  Options.
(3)     Consequences  of  an Acquisition Event on Restricted Stock Awards.  Upon
        -----------------------------------------------------------------
the  occurrence  of an Acquisition Event, the repurchase and other rights of the
Company under each outstanding Restricted Stock Award shall inure to the benefit
of  the  Company's  successor  and  shall apply to the cash, securities or other
property  which the Common Stock was converted into or exchanged for pursuant to
such Acquisition Event in the same manner and to the same extent as they applied
to  the  Common  Stock  subject  to  such  Restricted  Stock  Award.
(4)     Consequences  of  an Acquisition Event on Other Awards.  The Board shall
        ------------------------------------------------------
specify  the effect of an Acquisition Event on any other Award granted under the
Plan  at  the  time  of  the  grant  of  such  Award.
6
<PAGE>
     (d)     Depositary  Shares  Merger.
             --------------------------
     (1)     In  accordance  with  this Section 8, effective as of the effective
time  (the  "Effective  Time")  of the merger (the "Merger") contemplated by the
Agreement  and  Plan  of Merger dated as of February 16, 1999 by and between the
Company  and  Bird Merger Corporation, a wholly-owned subsidiary of the Company,
the  class  of  securities  available  under this Plan shall mean the depositary
shares  ("Depositary  Shares")  issued  or  issuable  pursuant to the Depositary
Agreement dated as of February 16, 1999 by and among the Company, Alpharma USPD,
Inc. and State Street Bank and Trust Company (the "Depositary") until the Option
Expiration  Date  (as  defined  in  the Depositary Agreement) and shall mean the
Common  Stock  of  the  Company  from  and  after  the  Option  Expiration Date.
(2)     From  and  after  the Effective Time until the Option Determination Date
(as  defined  in the Depositary Agreement), a Participant shall receive from the
Depositary,  upon  the  exercise  of an Option a depositary receipt ("Depositary
Receipt") representing the number of Depositary Shares issuable upon exercise of
such  Option.
(3)     From  and  after  the  Option Closing Date (as defined in the Depositary
Agreement),  a  Participant  shall receive from the Company, upon exercise of an
Option,  cash in an amount equal to the Option Exercise Price (as defined in the
Depositary  Agreement)  for  each  Depositary  Share issuable upon conversion or
exercise  of  such  Option.
(4)     From  and  after the Option Expiration Date, a Participant shall receive
from  the  Company,  upon  exercise of an Option, the number of shares of Common
Stock  of  the  Company  issuable  upon  conversion  or exercise of such Option.
9.     General  Provisions  Applicable  to  Awards
       -------------------------------------------
     (a)     Transferability  of  Awards.  Except  as  the  Board  may otherwise
             ---------------------------
determine  or  provide  in  an  Award,  Awards  shall  not  be  sold,  assigned,
transferred,  pledged  or  otherwise  encumbered  by the person to whom they are
granted,  either  voluntarily or by operation of law, except by will or the laws
of  descent  and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant.  References to a Participant, to the extent
relevant  in  the  context,  shall include references to authorized transferees.
(b)     Documentation.  Each Award shall be evidenced by a written instrument in
        -------------
such  form  as  the  Board  shall  determine.  Each  Award may contain terms and
conditions  in  addition  to  those  set  forth  in  the  Plan.
(c)     Board  Discretion.  Except as otherwise provided by the Plan, each Award
        -----------------
may  be  made alone or in addition or in relation to any other Award.  The terms
of  each  Award need not be identical, and the Board need not treat Participants
uniformly.
(d)     Termination of Status.  The Board shall determine the effect on an Award
        ---------------------
of  the  disability,  death,  retirement,  authorized  leave of absence or other
change  in  the  employment  or  other status of a Participant and the extent to
which,  and  the  period  during which, the Participant, the Participant's legal
representative,  conservator,  guardian  or  Designated Beneficiary may exercise
rights  under  the  Award.
(e)     Withholding.  Each  Participant  shall  pay  to  the  Company,  or  make
        -----------
provision satisfactory to the Board for payment of, any taxes required by law to
be withheld in connection with Awards to such Participant no later than the date
of  the  event  creating  the  tax liability.  Except as the Board may otherwise
provide  in  an  Award,  Participants  may,  to  the extent then permitted under
7
<PAGE>
applicable  law, satisfy such tax obligations in whole or in part by delivery of
shares  of  Common  Stock, including shares retained from the Award creating the
tax  obligation,  valued  at  their  Fair Market Value.  The Company may, to the
extent permitted by law, deduct any such tax obligations from any payment of any
kind  otherwise  due  to  a  Participant.
(f)     Amendment  of  Award.  The  Board  may  amend,  modify  or terminate any
        --------------------
outstanding  Award,  including but not limited to, substituting therefor another
Award  of  the  same  or  a  different  type,  changing  the date of exercise or
realization,  and  converting  an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Participant's consent to such action shall be required
unless  the  Board  determines  that the action, taking into account any related
action,  would  not  materially  and  adversely  affect  the  Participant.
(g)     Conditions  on  Delivery of Stock.  The Company will not be obligated to
        ---------------------------------
deliver  any  shares  of  Common  Stock  pursuant  to  the  Plan  or  to  remove
restrictions  from  shares  previously  delivered  under  the Plan until (i) all
conditions  of  the  Award  have  been met or removed to the satisfaction of the
Company,  (ii)  in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied,
including  any  applicable  securities laws and any applicable stock exchange or
stock  market  rules and regulations, and (iii) the Participant has executed and
delivered  to  the Company such representations or agreements as the Company may
consider  appropriate  to satisfy the requirements of any applicable laws, rules
or  regulations.
(h)     Acceleration.  The  Board may at any time provide that any Options shall
        ------------
become  immediately  exercisable  in  full or in part, that any Restricted Stock
Awards shall be free of restrictions in full or in part or that any other Awards
may become exercisable in full or in part or free of some or all restrictions or
conditions,  or  otherwise  realizable  in  full or in part, as the case may be.
10.     Miscellaneous
        -------------
     (a)     No  Right  To Employment or Other Status.  No person shall have any
             ----------------------------------------
claim  or  right  to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other
relationship  with the Company.  The Company expressly reserves the right at any
time  to dismiss or otherwise terminate its relationship with a Participant free
from  any liability or claim under the Plan, except as expressly provided in the
applicable  Award.
(b)     No  Rights  As Stockholder.  Subject to the provisions of the applicable
        --------------------------
Award,  no  Participant  or  Designated  Beneficiary  shall have any rights as a
stockholder  with  respect  to any shares of Common Stock to be distributed with
respect  to  an  Award  until  becoming  the  record  holder  of  such  shares.
Notwithstanding  the  foregoing, in the event the Company effects a split of the
Common  Stock  by  means  of  a stock dividend and the exercise price of and the
number  of  shares  subject  to  such  Option are adjusted as of the date of the
distribution  of  the  dividend  (rather  than  as  of  the record date for such
dividend),  then an optionee who exercises an Option between the record date and
the  distribution  date for such stock dividend shall be entitled to receive, on
the  distribution  date, the stock dividend with respect to the shares of Common
Stock  acquired  upon  such  Option exercise, notwithstanding the fact that such
shares  were  not outstanding as of the close of business on the record date for
such  stock  dividend.
8
<PAGE>
(c)     Effective Date and Term of Plan.  The Plan shall become effective on the
        -------------------------------
date  on which it is adopted by the Board, but no Award granted to a Participant
designated  by  the  Board as subject to Section 162(m) of the Code by the Board
shall  become  exercisable,  vested  or realizable, as applicable to such Award,
unless and until the Plan has been approved by the Company's stockholders to the
extent stockholder approval is required by Section 162(m) in the manner required
under  Section  162(m)  (including  the vote required under Section 162(m)).  No
Awards  shall  be  granted under the Plan after the completion of ten years from
the  earlier of (i) the date on which the Plan was adopted by the Board and (ii)
the  date  the  Plan  was  approved  by  the  Company's stockholders, but Awards
previously  granted  may  extend  beyond  that  date.
(d)     Amendment  of  Plan.  The Board may amend, suspend or terminate the Plan
        -------------------
or  any  portion  thereof  at  any time, provided that to the extent required by
Section  162(m)  of  the  Code,  no Award granted to a Participant designated as
subject  to  Section  162(m) by the Board after the date of such amendment shall
become  exercisable,  realizable  or vested, as applicable to such Award (to the
extent  that  such  amendment  to the Plan was required to grant such Award to a
particular  Participant),  unless  and  until  such  amendment  shall  have been
approved  by the Company's stockholders as required by Section 162(m) (including
the  vote  required  under  Section  162(m)).
     (e)     Governing  Law.  The  provisions  of  the  Plan and all Awards made
             --------------
hereunder  shall  be  governed by and interpreted in accordance with the laws of
the  State  of  Delaware,  without  regard  to  any applicable conflicts of law.

11.     Change  in  Control  of  Company.
        --------------------------------
     (a)     Notwithstanding  anything  in  the  Plan to the contrary, effective
upon  the consummation of a Change in Control of the Company, the exercisability
of  all  options then outstanding under the Plan shall be accelerated in full so
that  such  options  shall become immediately exercisable to purchase all of the
Depositary Shares covered by such options and all restrictions and conditions on
awards  outstanding  under  the Plan shall automatically be deemed terminated or
satisfied.
(b)     For  purposes  of  the  Plan,  a  "Change  in  Control"  shall  mean:
     (1)     the  acquisition  by  an  individual,  entity  or group (within the
meaning  of  Section  13(d)(3)  or 14(d)(2) of the Exchange Act) (a "Person") of
beneficial  ownership  of  any  capital  stock  of  the  Company  if, after such
acquisition,  such  Person  beneficially  owns (within the meaning of Rule 13d-3
promulgated  under  the  Exchange  Act)  50%  or  more  of  either  (x)  the
then-outstanding  Depositary  Shares of the Company (the "Outstanding Depositary
Shares")  or (y) the combined voting power of the then-outstanding securities of
the  Company  entitled  to  vote  generally  in  the  election of directors (the
"Outstanding  Company Voting Securities"); provided, however, that the following
                                           --------  -------
acquisitions  shall  not  constitute  a  Change  in Control: (A) any acquisition
directly  from  the  Company (excluding an acquisition pursuant to the exercise,
conversion  or  exchange  of  any  security exercisable for, convertible into or
exchangeable  for  Depositary Shares or voting securities of the Company, unless
the  Person  exercising,  converting  or  exchanging such security acquired such
security  directly  from the Company or an underwriter or agent of the Company),
(B) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained  by  the Company or any corporation controlled by the Company, or (C)
any  acquisition  by  any  corporation  pursuant  to  a Business Combination (as
defined  below)  which complies with clauses (x) and (y)  of subsection (iii) of
this  definition;  or
9
<PAGE>
(2)     such  time  as  the  Continuing  Directors  (as  defined  below)  do not
constitute a majority of the Board (or, if applicable, the Board of Directors of
a  successor  corporation  to the Company), where the term "Continuing Director"
means  at  any  date  a member of the Board (x) who was a member of the Board on
December 13, 2000 or (y) who was nominated or elected subsequent to such date by
at  least  a majority of the directors who were Continuing Directors at the time
of such nomination or election or whose election to the Board was recommended or
endorsed  by  at least a majority of the directors who were Continuing Directors
at  the time of such nomination or election; provided, however, that there shall
                                             --------  -------
be  excluded  from  this  clause  (y) any individual whose initial assumption of
office  occurred  as  a  result of an actual or threatened election contest with
respect  to the election or removal of directors (as such terms are used in Rule
14a-11  of Regulation 14A promulgated under the Exchange Act) or other actual or
threatened  solicitation  of  proxies  or  consents, by or on behalf of a person
other  than  the  Board;  or
(3)     the  consummation  of  a  merger,  consolidation,  reorganization,
recapitalization  or statutory share exchange involving the Company or a sale or
other  disposition  of  all or substantially all of the assets of the Company (a
"Business  Combination"),  unless,  immediately  following  such  Business
Combination,  each  of  the  following  two  conditions is satisfied: (x) all or
substantially all of the individuals and entities who were the beneficial owners
of  the  Outstanding Depositary Shares and Outstanding Company Voting Securities
immediately  prior  to  such  Business Combination beneficially own, directly or
indirectly,  more than 50% of the then-outstanding common stock and the combined
voting  power  of  the then-outstanding securities entitled to vote generally in
the  election  of directors (or other persons having the general power to direct
the  affairs  of  such  entity),  respectively,  of  the  resulting or acquiring
corporation  in  such  Business  Combination  (which  shall  include,  without
limitation, a corporation which as a result of such transaction owns the Company
or  substantially  all of the Company's assets either directly or through one or
more  subsidiaries)  (such  resulting  or  acquiring  corporation is referred to
herein  as the "Acquiring Corporation") in substantially the same proportions as
their  ownership  of  the  Outstanding Depositary Shares and Outstanding Company
Voting  Securities, respectively, immediately prior to such Business Combination
and  (y)  no Person (excluding the Acquiring Corporation or any employee benefit
plan  (or  related  trust)  maintained  or  sponsored  by  the Company or by the
Acquiring Corporation) beneficially owns, directly or indirectly, 50% or more of
the  then-outstanding  Depositary Shares of the Acquiring Corporation, or of the
combined  voting  power  of  the then-outstanding securities of such corporation
entitled  to  vote  generally in the election of directors (except to the extent
that  such  ownership  existed  prior  to  the  Business  Combination);  or
(4)     the  approval  by  the stockholders of the Company of a complete plan of
liquidation.

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