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EXHIBIT 4.07  

 
 

CELLEGY PHARMACEUTICALS, INC.
  STOCK OPTION ASSUMPTION AGREEMENT
  (Non-Plan Options)    
    

Dear
«Name»: 

        As
you know, on October 7, 2004, Cellegy Pharmaceuticals, Inc. ("Cellegy") and Biosyn, Inc.
("Biosyn") entered into an Agreement and Plan of Shares Exchange (the "Exchange Agreement") pursuant to
which all the outstanding shares of Biosyn capital stock will be exchanged for shares of Cellegy common stock and all outstanding options and warrants to purchase Biosyn common stock will be assumed
by Cellegy (the "Exchange"). The number of shares of Cellegy common stock into which each share of Biosyn common stock will be converted is based on the
exchange ratio for the Biosyn common stock, as defined in the Exchange Agreement (the "Exchange Ratio"). The closing of the transactions contemplated by
the Exchange Agreement is contemplated to occur on or about October 22, 2004 ("Closing Date"). 

        You
hold one or more outstanding options to purchase Biosyn common stock. Pursuant to the Exchange Agreement, Cellegy will assume as of the Closing Date all obligations of Biosyn under
your outstanding option (or options). This Stock Option Assumption Agreement (the "Agreement") evidences the terms of Cellegy's assumption of one or
more options (the "Biosyn Non-Plan Options") to purchase Biosyn common stock granted to you other than pursuant to Biosyn's 1999 Stock
Option Plan (the "Plan"), which Biosyn Non-Plan Options are documented by one or more stock option agreements entered into by and between
you and Biosyn or by resolutions of the Board of Directors of Biosyn (collectively, the "Option Agreements"). The table below lists the Biosyn
Non-Plan Options that you currently hold: 

	BIOSYN NON-PLAN OPTION

	Grant Date
 
	 	Option Expiration Date
 
	 	No. of Shares of Biosyn

Common Stock
 
	 	Exercise Price per share
 

	«Grant Date»	 	«Expiration Date»	 	«Biosyn No.»	 	$«BiosynExPrice»
	«Grant Date»	 	«Expiration Date»	 	«Biosyn No.»	 	$«BiosynExPrice»
	«Grant Date»	 	«Expiration Date»	 	«Biosyn No.»	 	$«BiosynExPrice»

        After
the Exchange, your Biosyn Non-Plan Options will no longer give you the right to purchase Biosyn Common Stock. Instead, your Biosyn Non-Plan Options will
give you the right to purchase shares of Cellegy common stock, with the number of shares of Cellegy common stock calculated based on the Exchange Ratio for the Biosyn Common Stock as provided in the
Exchange Agreement and the exercise price per share proportionately adjusted. As described below, Cellegy will separately provide you with information regarding the number of Cellegy shares underlying
your Biosyn Options. 

        The
grant date and expiration date of your assumed Biosyn Non-Plan Options will remain the same after the Exchange as set forth in the Option Agreements, but the number of
shares subject to your assumed Biosyn Non-Plan Options and the exercise price per share will be adjusted to reflect the effect of the Exchange as described in Section 1.6(b) of the
Exchange Agreement. In addition, by signing below, you agree that your Biosyn Non-Plan Options will be governed by the change of control provisions set forth in Section 9 (Change of
Control) of the Biosyn 1999 Stock Option Plan (the "Plan") after the Exchange. In addition, if you are a Biosyn employee, then the provisions of the
Plan governing the exercisability of your Biosyn Non-Plan Options following a termination of employment will apply to your Biosyn Non-Plan Options. The other provisions of your
Biosyn Non-Plan Options will remain the same as set forth in the Option Agreements, and the provisions of the Option Agreements (except as expressly modified by this Agreement and the
Exchange Agreement) will govern and control your rights to purchase shares of Cellegy common stock. 

        Unless
the context otherwise requires, after the Exchange any references in the Plan and the Option Agreements to: (i) the
"Company" or the "Corporation" means Cellegy,
(ii) "Stock," "Common Stock" or Shares" means
shares of Cellegy Common Stock, (iii) the "Board of Directors" or the "Board" means the Board of
Directors of Cellegy and (iv) the "Committee" means the Compensation Committee of the Board of Directors of Cellegy (or any other committee that
the Board may designate as administrator of the Plan). All provisions references in the Option Agreements relating to your status as an employee of Biosyn will, after the Exchange, refer to your
status as an employee of Cellegy or any present or future Cellegy subsidiary. 

        Notwithstanding
any other provision of this Agreement: (i) your assumed Biosyn Non-Plan Options shall not form any part of any contract of employment between Cellegy,
or any subsidiary, and you, and it shall not confer on you any legal or equitable rights (other than those constituting your assumed Biosyn Non-Plan Options themselves) against Cellegy or
any subsidiary, directly or indirectly, or give rise to any cause of action in law or in equity against Cellegy or any subsidiary; and (ii) your benefits under your assumed Biosyn
Non-Plan Options shall not form any part of your wages or remuneration or count as pay or remuneration for pension fund or other purposes. 

        After the Closing Date, Cellegy will send to you a notice that will set forth the exact number of shares of Cellegy common stock that will underlie your Biosyn
Non-Plan Options as a result of the Exchange and the new per share exercise price of the Biosyn Non-Plan Options. The notice will be accompanied by a form of Exercise Notice
that you will be able to use in order to exercise the Biosyn Non-Plan Options after the Exchange.

        Nothing
in this Agreement or the Option Agreements interferes in any way with your right, Biosyn's right or Cellegy's right, which rights are expressly reserved, to terminate your
employment (if you are employed by Biosyn or Cellegy) at any time for any reason. Any future options, if any, you may receive
from Cellegy will be governed by the terms of the Cellegy's equity incentive plans, and such terms may be different from the terms of your assumed Biosyn Non-Plan Options. 

[Remainder of page intentionally left blank]

        Please
sign and date this Agreement on the following page and return it promptly to Cellegy at the following address: 

Cellegy
Pharmaceuticals, Inc.

349 Oyster Point Boulevard, Suite 200

South San Francisco, CA 94080

Attn: A. Richard Juelis 

	 	 	CELLEGY PHARMACEUTICALS, INC.
	

 	
 	

 A. Richard Juelis,

Chief Financial Officer

[ACKNOWLEDGMENT PAGE FOLLOWS]

 
 

ACKNOWLEDGMENT    
    

        The undersigned acknowledges receipt of the foregoing Stock Option Assumption Agreement and understands and agrees that all rights and liabilities with respect to
the assumed Biosyn Non-Plan Options listed on the table above will be assumed by Cellegy on the Closing Date and are as set forth in the Option Agreements for such assumed Biosyn
Non-Plan Options and this Stock Option Assumption Agreement (and the Plan to the extent set forth in this Agreement). 

DATED:
October    , 2004 

	 	 	
 «Name»
	

 	
 	

Mailing Address:	
 	

	

 	
 	

 	
 	

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EXHIBIT 4.08  

 
 

CELLEGY PHARMACEUTICALS, INC.
  STOCK OPTION ASSUMPTION AGREEMENT
  (1999 Stock Option Plan)    
    

Dear
«Name»: 

        As
you know, on October 7, 2004, Cellegy Pharmaceuticals, Inc. ("Cellegy") and Biosyn, Inc.
("Biosyn") entered into an Agreement and Plan of Shares Exchange (the "Exchange Agreement") pursuant to
which all the outstanding shares of Biosyn capital stock will be exchanged for shares of Cellegy common stock and all outstanding options and warrants to purchase Biosyn common stock will be assumed
by Cellegy (the "Exchange"). The number of shares of Cellegy common stock into which each share of Biosyn common stock will be converted is based on the
exchange ratio for the Biosyn common stock, as defined in the Exchange Agreement (the "Exchange Ratio"). The closing of the transactions contemplated by
the Exchange Agreement is contemplated to occur on or about October 22, 2004 ("Closing Date"). 

        You
hold one or more outstanding options to purchase Biosyn common stock granted to you under Biosyn's 1999 Stock Option Plan (the
"Plan"). Pursuant to the Exchange Agreement, Cellegy will assume all obligations of Biosyn under your outstanding option (or options) on the Closing
Date. This Stock Option Assumption Agreement (the "Agreement") evidences the terms of Cellegy's assumption of the option(s) to purchase Biosyn common
stock granted to you under the Plan (the "Biosyn Options"), which Biosyn Options are documented by one or more stock option agreements entered into
between you and Biosyn (the "Option Agreements"). 

        The
table below lists the Biosyn Option(s) that you currently hold: 

	BIOSYN OPTION

	Grant Date
 
	 	Option Expiration Date
 
	 	No. of Shares of Biosyn Common Stock
 
	 	Exercise Price per share
 

	«Grant Date»	 	«Expiration Date»	 	«Biosyn No.»	 	$«BiosynExPrice»
	«Grant Date»	 	«Expiration Date»	 	«Biosyn No.»	 	$«BiosynExPrice»
	«Grant Date»	 	«Expiration Date»	 	«Biosyn No.»	 	$«BiosynExPrice»

        After
the Exchange, your Biosyn Options will no longer give you the right to purchase Biosyn Common Stock. Instead, your Biosyn Options will give you the right to purchase shares of
Cellegy common stock, with the number of shares of Cellegy common stock calculated based on the Exchange Ratio for the Biosyn common stock as provided in the Exchange Agreement, and the exercise price
per share proportionately adjusted. As described further below, Cellegy will separately provide you information regarding the number of Cellegy shares underlying your Biosyn Options. 

        The
grant date and expiration date of your assumed Biosyn Option(s) will remain the same after the Exchange as set forth in your Option Agreements, but the number of shares subject to
your assumed Biosyn Options and the exercise price per share will be adjusted to reflect the effect of the Exchange as described in Section 1.6(b) of the Exchange Agreement. The other
provisions of the Option Agreements (except as expressly modified by this Agreement and the Exchange Agreement) will govern and control your rights to purchase shares of Cellegy common stock. Upon
termination of your
employment with Cellegy, you will have the limited post-termination exercise period specified in the Plan for your assumed Biosyn Options, generally three months (except in the case of
death or permanent disability, in which case such period is twelve months), after which time your assumed Biosyn Options will expire and NOT be exercisable for Cellegy common stock. 

        Unless
the context otherwise requires, after the Exchange any references in the Plan and the Option Agreements to: (i) the
"Company" or the "Corporation" means Cellegy,
(ii) "Stock," "Common Stock" or Shares" means
shares of Cellegy Common Stock, (iii) the "Board of Directors" or 

the
"Board" means the Board of Directors of Cellegy and (iv) the "Committee" means the
Compensation Committee of the Board of Directors of Cellegy (or any other committee that the Board may designate as administrator of the Plan). All references in the Option Agreements and the Plan
relating to your status as an employee of Biosyn will, after the Exchange, refer to your status as an employee of Cellegy or any present or future Cellegy subsidiary. 

        Notwithstanding
any other provision of this Agreement: (i) your assumed Biosyn Options shall not form any part of any contract of employment between Cellegy, or any subsidiary,
and you, and it shall not confer on you any legal or equitable rights (other than those constituting your assumed Biosyn Options themselves) against Cellegy or any subsidiary, directly or indirectly,
or give rise to any cause of action in law or in equity against Cellegy or any subsidiary; and (ii) your benefits under your assumed Biosyn Options shall not form any part of your wages or
remuneration or count as pay or remuneration for pension fund or other purposes. 

        After the Closing Date, Cellegy will send to you a notice that will set forth the exact number of shares of Cellegy common stock that will underlie your Biosyn
Options as a result of the Exchange and the new per share exercise price of the Biosyn Options. The notice will be accompanied by a form of Exercise Notice that you will be able to use in order to
exercise the Biosyn Options after the Exchange.

        Nothing
in this Agreement or the Option Agreements interferes in any way with your right, Biosyn's right or Cellegy's right, which rights are expressly reserved, to terminate your
employment (if you are employed by Biosyn or Cellegy) at any time for any reason. Any future options, if any, you may receive from Cellegy will be governed by the terms of the Cellegy equity incentive
plan under which such options are granted, and such terms may be different from the terms of your assumed Biosyn Options. 

[Remainder of page intentionally left blank]

        Please
sign and date this Agreement on the following page and return it promptly to Cellegy at the following address: 

Cellegy
Pharmaceuticals, Inc.

349 Oyster Point Boulevard, Suite 200

South San Francisco, CA 94080

Attn: A. Richard Juelis 

	 	 	CELLEGY PHARMACEUTICALS, INC.
	

 	
 	

 A. Richard Juelis,

Chief Financial Officer

[ACKNOWLEDGMENT PAGE FOLLOWS]

 
 

ACKNOWLEDGMENT    
    

        The undersigned acknowledges receipt of the foregoing Stock Option Assumption Agreement and understands and agrees that all rights and liabilities with respect to
the assumed Biosyn Options listed on the table above will be assumed by Cellegy on the Closing Date and are as set forth in the Option Agreements for such assumed Biosyn Options, the Plan and this
Stock Option Assumption Agreement. 

DATED:
October    , 2004 

	 	 	
 «Name»
	

 	
 	

Mailing Address:	
 	

	

 	
 	

 	
 	

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CELLEGY PHARMACEUTICALS, INC. STOCK OPTION ASSUMPTION AGREEMENT (1999 Stock Option Plan)

ACKNOWLEDGMENT

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