Document:

EXHIBIT 10.7 STOCK OPTION AGREEMENTS/CHARLES O'KEE

 

Exhibit
10.7

NON-QUALIFIED STOCK OPTION AGREEMENT

          THIS
AGREEMENT, entered into on January 3, 2005 (the “Grant
Date”), is made by and between Catalyst Pharmaceutical Partners, Inc., a Florida corporation
(“Catalyst”) and Charles O’Keeffe, a consultant to Catalyst, hereinafter referred to as “Optionee”:

     WHEREAS, Catalyst is desirous of increasing the incentive of the Optionee whose contributions
are important to the continued success of Catalyst.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and
valuable consideration, receipt of which is hereby acknowledged, Catalyst hereby grants the
Optionee the Non-qualified Stock Option provided for herein, upon the following terms and
conditions:

ARTICLE I

DEFINITIONS

          Whenever the following terms are used in this Agreement, they shall have the meaning specified
below unless the context clearly indicates to the contrary. The masculine pronoun shall include
the feminine and neuter, and the singular the plural, where the context so indicates.

Section 1.1 Board

          “Board” shall mean the Board of Directors of Catalyst.

Section 1.2 Common Stock

          “Common Stock” shall mean the common stock of Catalyst, par value $.01 per share.

Section 1.3 Code

          “Code” shall mean the Internal Revenue Code of 1986, as amended.

Section 1.4 Committee

          “Committee” shall mean the Compensation Committee of the Board, or another committee of the
Board, or the full Board, if no Committee has been named, to administer the grant of Options.

Section 1.5 Director

          “Director” shall mean a member of the Board.

 

 

Section 1.6 Exchange Act

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

Section 1.7 Grant Date

          “Grant Date” shall mean January ___, 2005.

Section 1.8 Option

          “Option” shall mean the non-qualified stock option to purchase Common Stock of Catalyst
granted under this Agreement.

Section 1.9 Rule 16b-3

          “Rule 16b-3” shall mean that certain Rule 16b-3 under the Exchange Act, as such Rule may be
amended from time to time.

Section 1.10 Securities Act

          “Securities Act” shall mean the Securities Act of 1933, as amended.

Section 1.11 Stock Option Administrator

          “Stock Option Administrator” shall mean the officer designated, from time to time, by the
Committee to serve as the Stock Option Administrator and any agents of the Stock Option
Administrator.

ARTICLE II

GRANT OF OPTION

Section 2.1 Grant of Option

          In consideration of the Optionee’s agreement to serve as a Director and act as a consultant to
Catalyst, and for other good and valuable consideration, on the date hereof Catalyst irrevocably
grants to the Optionee the option to purchase any part or all of an aggregate of 50,000 shares of
its Common Stock upon the terms and conditions set forth in this Agreement.

Section 2.2 Purchase Price

          The purchase price of the shares of Common Stock covered by the Option shall be $2.00 per
share without commission or other charge.

Section 2.3 Consideration to Catalyst

          In consideration of the granting of this Option by Catalyst, the Optionee agrees to render
faithful and efficient services to Catalyst, with such duties and responsibilities as Catalyst

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shall from time to time prescribe. Nothing in this Agreement shall confer upon the Optionee any
right to continue as a director or Consultant of Catalyst, or shall interfere with or restrict in
any way the rights of Catalyst, which are hereby expressly reserved, to discharge the Optionee at
any time for any reason whatsoever, with or without cause.

ARTICLE III

PERIOD OF EXERCISABILITY

Section 3.1 Commencement of Exercisability

          The Option shall become exercisable immediately.

Section 3.2 Duration of Exercisability

          The Option shall remain exercisable until they become unexercisable under Section 3.3.

Section 3.3 Expiration of Option

          The Option may not be exercised to any extent by anyone after the expiration of the earlier
of: (a) five (5) years from the date the Option was granted; or (ii) one year from the date of
Optionee’s death.

ARTICLE IV

EXERCISE OF OPTION

Section 4.1 Persons Eligible to Exercise

          During the lifetime of the Optionee, only the Optionee, or any person to whom the Option may
be transferred pursuant to Section 6.2 below, may exercise the Option or any portion thereof.
After the death of the Optionee, any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3, be exercised by his personal representative or
by any person empowered to do so under the deceased Optionee’s will or under the then applicable
laws of descent and distribution.

Section 4.2 Partial Exercise

          Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be
exercised in whole or in part at any time prior to the time when the Option or portion thereof
becomes unexercisable under Section 3.3; provided, however, that each partial
exercise shall be for not less than one hundred (100) shares of Common Stock and shall be for whole
shares only.

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Section 4.3 Manner of Exercise

          The Option, or any exercisable portion thereof, may be exercised solely by delivery to the
Stock Option Administrator or an agent of the Stock Option Administrator, as designated by the
Committee from time to time, of all of the following prior to the time when the Option or such
portion becomes unexercisable under Section 3.3:

          (a) A written notice complying with the applicable rules established by the Committee
stating that the Option, or a portion thereof, is exercised. The notice shall be signed by
the Optionee or other person then entitled to exercise the Option or such portion. It shall
be accompanied by payment in cash equal to the product of the per share exercise price times
the number of shares of Common Stock with respect to which the option or portion is being
exercised;

          (b) A bona fide written representation and agreement, in a form satisfactory to the
Committee, signed by the Optionee or other person then entitled to exercise such Option or
portion, stating that the shares of Common Stock are being acquired for his own account, for
investment and without any present intention of distributing or reselling said shares or any
of them except as may be permitted under the Securities Act and then applicable rules and
regulations thereunder, and that the Optionee or other person then entitled to exercise such
Option or portion will indemnify Catalyst against and hold it free and harmless from any
loss, damage, expense or liability resulting to Catalyst if any sale or distribution of the
shares of Common Stock by such person is contrary to the representation and agreement
referred to above. The Committee may, in its absolute discretion, take whatever additional
actions it deems appropriate to insure the observance and performance of such representation
and agreement and to effect compliance with the Securities Act and any other federal or
state securities laws or regulations. Without limiting the generality of the foregoing, the
Committee may require an opinion of counsel acceptable to it to the effect that any
subsequent transfer of shares of Common Stock acquired on an Option exercise does not
violate the Securities Act, and may issue stop-transfer orders covering such shares. Share
certificates evidencing stock issued on exercise of this Option shall bear an appropriate
legend referring to the provisions of this subsection (b) and the agreements herein. The
written representation and agreement referred to in the first sentence of this subsection
(c) shall, however, not be required if the shares of Common Stock to be issued pursuant to
such exercise have been registered under the Securities Act, and such registration is then
effective in respect of such shares; and

          (c) Full payment to Catalyst of all amounts which, under federal, state or local tax
law, it is required to withhold upon exercise of the Option; and

          (d) In the event the Option or any portion thereof shall be exercised pursuant to
Section 4.1 by any person or persons other than the Optionee, appropriate proof of the right
of such person or persons to exercise the Option.

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Section 4.4 Conditions to Issuance of Stock Certificates

          The shares of Common Stock deliverable upon the exercise of the Option, or any portion
thereof, may be either previously authorized but unissued shares or issued shares which have then
been reacquired by Catalyst. Such shares of Common Stock shall be fully paid and nonassessable.
Catalyst shall not be required to issue or deliver any certificate or certificates for shares of
stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of all of
the following conditions:

          (a) The admission of such shares of Common Stock to listing on all stock exchanges on which
such class of stock is then listed; and

          (b) The completion of any registration or other qualification of such shares of Common Stock
under any state or federal law or under rulings or regulations of the Securities and Exchange
Commission or of any other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; and

          (c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Committee shall, in its absolute discretion, determine to be necessary or
advisable; and

          (d) The receipt by Catalyst of full payment for such shares of Common Stock, including payment
of all amounts which, under federal, state or local tax law, Catalyst (or other employer
corporation) is required to withhold upon exercise of the Option; and

          (e) The lapse of such reasonable period of time following the exercise of the Option as the
Committee may from time to time establish for reasons of administrative convenience.

Section 4.5 Rights as Shareholder

          The holder of the Option shall not be, nor have any of the rights or privileges of, a
shareholder of Catalyst in respect of any shares of Common Stock purchasable upon the exercise of
any part of the Option unless and until certificates representing such shares of Common Stock shall
have been issued by Catalyst to such holder.

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ARTICLE V

EFFECT OF CHANGES IN CAPITALIZATION

Section 5.1 Recapitalization

          If the outstanding shares of Common Stock of Catalyst are increased or decreased or changed
into or exchanged for a different number or kind of shares or other securities of Catalyst by
reason of any recapitalization, reclassification, reorganization (other than as described in
Section 5.2 below), stock split, reverse split, combination of shares, exchange of shares, stock
dividend or other distribution payable in capital stock of Catalyst, or other increase or decrease
in such shares effected without receipt of consideration by Catalyst, an appropriate and
proportionate adjustment shall be made by the Committee in the number and kind of shares of Common
Stock issuable upon exercise of this Option, and in the purchase price per share of this Option.

Section 5.2 Reorganization or Change in Control

          In the event of a Reorganization (as defined below) of Catalyst, this Option shall become
immediately vested and, to the extent applicable, exercisable for such period of time specified in
Section 3.3(a). For purposes of this Agreement a “Reorganization” of an entity shall be deemed to
occur if such entity is a party to a merger, consolidation, reorganization, or other business
combination with one or more entities in which said entity is not the surviving entity, if such
entity disposes of substantially all of its assets, or if such entity is a party to a spin-off,
split-off, split-up or similar transaction; provided, however, that the transaction shall not be a
Reorganization if Catalyst, any parent or any subsidiary is the surviving entity.

Section 5.3 Dissolution or Liquidation

          Upon the dissolution or liquidation of Catalyst, this Option shall terminate. In the event of
any termination of this Option under this Section 5.3, Optionee shall have the right, immediately
prior to the occurrence of such termination and during such reasonable period as the Committee in
its sole discretion shall determine and designate, to exercise this Option in whole or in part,
whether or not this Option was otherwise exercisable at the time such termination occurs and
without regard to any limitation on exercise imposed pursuant to Article III above.

Section 5.4 Adjustments

          Adjustments under this Article V related to stock or securities of Catalyst shall be made by
the Committee, whose determination in that respect shall be final, binding, and conclusive. No
fractional shares of Common Stock or units of other securities shall be issued pursuant to any such
adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case
by rounding downward to the nearest whole share or unit.

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Section 5.5 No Limitations

          The grant of this Option hereunder shall not affect or limit in any way the right or power of
Catalyst to make adjustments, reclassifications, reorganizations or changes of its capital or
business structure or to merge, consolidate, dissolve or liquidate, or to sell or transfer all or
any part of its business or assets.

ARTICLE VI

OTHER PROVISIONS

Section 6.1 Administration

          All actions taken and all interpretations and determinations made by the Committee in good
faith shall be final and binding upon the Optionee, Catalyst and all other interested persons. No
member of the Committee shall be personally liable for any action, determination or interpretation
made in good faith with respect to the Option. In its absolute discretion, the Board may at any
time and from time to time exercise any and all rights and duties of the Committee under the Plan
and this Agreement except with respect to matters which under Rule 16b-3 or Section 162(m) of the
Code, or any regulations or rules issued thereunder, are required to be determined in the sole
discretion of the Committee.

Section 6.2 Option Not Transferable

          This Option shall not be assignable or transferable by the Optionee, other than by will or the
laws of descent and distribution; provided, however, that this Option may be transferred or
assigned to (i) family members or entities (including trusts) established for the benefit of the
Optionee or the Optionee’s family members or (ii) any other person, as permitted by applicable
securities law. Any Option assigned or transferred pursuant to this Section 6.2 shall continue to
be subject to the same terms and conditions as were applicable to the Option immediately before the
transfer; provided, however, that any Option transferred for value may not be exercised under any
Registration Statement on Form S-8 and upon exercise of such transferred Option the holder will
only be entitled to receive shares of restricted stock that have not been registered under the
Securities Act.

Section 6.3 Shares to Be Reserved

          Catalyst shall at all times during the term of the Option reserve and keep available such
number of shares of Common Stock as will be sufficient to satisfy the requirements of this
Agreement.

Section 6.4 Notices

          Any notice to be given under the terms of this Agreement to Catalyst shall be addressed to
Catalyst in care of the officer designated as the Stock Option Administrator from time to time, and
any notice to be given to the Optionee shall be addressed to him at the address

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given beneath his signature hereto. By a notice given pursuant to this Section 6.4, either
party may hereafter designate a different address for notices to be given to him. Any notice which
is required to be given to the Optionee shall, if the Optionee is then deceased, be given to the
Optionee’s personal representative if such representative has previously informed Catalyst of his
status and address by written notice under this Section 6.4. Any notice shall be deemed duly given
when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, deposited (with
postage prepaid) in a post office or branch post office regularly maintained by the United States
Postal Service; provided, however, that any notice to be given by the Optionee
relating to the exercise of the Option or any portion thereof shall be deemed duly given upon
receipt by the Stock Option Administrator or his office.

Section 6.5 Titles

          Titles are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

Section 6.6 Construction

          This Agreement shall be administered, interpreted and enforced under the internal laws of the
State of Florida without regard to conflicts of laws thereof.

Section 6.7 Conformity to Securities Laws

          The Optionee acknowledges that this Agreement is intended to conform to the extent necessary
with all provisions of the Securities Act and the Exchange Act and any and all regulations and
rules promulgated by the Securities and Exchange Commission thereunder, including, without
limitation, the applicable exemptive conditions of Rule 16b-3. Notwithstanding anything herein to
the contrary, the Option is granted and may be exercised, only in such a manner as to conform to
such laws, rules and regulations. To the extent permitted by applicable law, this Agreement shall
be deemed amended to the extent necessary to conform to such laws, rules and regulations.

Section 6.8 Amendments

          This Agreement may be amended without the consent of the Optionee provided that such amendment
would not impair any rights of the Optionee under this Agreement. No amendment of this Agreement
shall, without the consent of the Optionee, impair any rights of the Optionee under this Agreement.

[Signatures on Next Page]

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SIGNATURE PAGE

          IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto.

	 	 	 	 	 
	 	CATALYST PHARMACEUTICAL PARTNERS, INC.

 	 
	 	By:  	/s/ Patrick J. McEnany
 	 
	 	 	Name:  	Patrick J. McEnany 	 
	 	 	Title:  	CEO 	 
	 

	 	 	 	 	 
	 	OPTIONEE:

 	 
	 	/s/ Charles O’Keeffe
 	 
	 	Charles O’Keeffe 	 
	 	 	 
	 

9EXHIBIT 10.8 STOCK INCENTIVE PLAN

 

Exhibit 10.8

CATALYST PHARMACEUTICAL PARTNERS, INC.

2006 STOCK INCENTIVE PLAN

     1. ESTABLISHMENT, EFFECTIVE DATE AND TERM

     Catalyst Pharmaceutical Partners, Inc. (“Company”), a Florida corporation hereby establishes
the Catalyst Pharmaceutical Partners, Inc. 2006 Stock Incentive Plan (“Plan”). The Effective Date
of the Plan shall be the date that the Plan was approved by the shareholders of the Company in
accordance with the laws of the State of Florida or such later date as provided in the resolutions
adopting the Plan; provided, however, no Award may be granted unless and until the Plan has been
approved by the shareholders of the Company. Unless earlier terminated pursuant to Section 15(k)
hereof, the Plan shall terminate on the tenth anniversary of the Effective Date. Capitalized terms
used herein are defined in Appendix A attached hereto.

     2. PURPOSE

     The purpose of the Plan is to enable the Company to attract, retain, reward and motivate
Eligible Individuals by providing them with an opportunity to acquire or increase a proprietary
interest in the Company and to incentivize them to expend maximum effort for the growth and success
of the Company, so as to strengthen the mutuality of the interests between the Eligible Individuals
and the shareholders of the Company.

     3. ELIGIBILITY

     Awards may be granted under the Plan to any Eligible Individual, as determined by the
Committee from time to time, on the basis of their importance to the business of the Company
pursuant to the terms of the Plan.

     4. ADMINISTRATION

          (a) Committee. The Plan shall be administered by the Committee, which shall have the
full power and authority to take all actions, and to make all determinations not inconsistent with
the specific terms and provisions of the Plan deemed by the Committee to be necessary or
appropriate to the administration of the Plan, any Award granted or any Award Agreement entered
into hereunder. The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Award Agreement in the manner and to the extent it shall deem
expedient to carry the Plan into effect as it may determine in its sole discretion. The decisions
by the Committee shall be final, conclusive and binding with respect to the interpretation and
administration of the Plan, any Award or any Award Agreement entered into under the Plan.

          (b) Delegation to Officers or Employees. The Committee may designate officers or
employees of the Company to assist the Committee in the administration of the Plan. The Committee
may delegate authority to officers or employees of the Company to grant Awards and execute Award
Agreements or other documents on behalf of the Committee in connection with the administration of
the Plan, subject to whatever limitations or restrictions the Committee may impose and in
accordance with applicable law.

 

 

          (c) Designation of Advisors. The Committee may designate professional advisors to
assist the Committee in the administration of the Plan. The Committee may employ such legal
counsel, consultants, and agents as it may deem desirable for the administration of the Plan and
may rely upon any advice and any computation received from any such counsel, consultant, or agent.
The Company shall pay all expenses and costs incurred by the Committee for the engagement of any
such counsel, consultant, or agent.

          (d) Participants Outside the U.S. In order to conform with the provisions of local
laws and regulations in foreign countries in which the Company may operate in the future, the
Committee shall have the sole discretion to (i) modify the terms and conditions of the Awards
granted under the Plan to Eligible Individuals located outside the United States; (ii) establish
subplans with such modifications as may be necessary or advisable under the circumstances present
by local laws and regulations; and (iii) take any action which it deems advisable to comply with or
otherwise reflect any necessary governmental regulatory procedures, or to obtain any exemptions or
approvals necessary with respect to the Plan or any subplan established hereunder.

          (e) Liability and Indemnification. No Covered Individual shall be liable for any
action or determination made in good faith with respect to the Plan, any Award granted hereunder or
any Award Agreement entered into hereunder. The Company shall, to the maximum extent permitted by
applicable law and the Articles of Incorporation and Bylaws of the Company, indemnify and hold
harmless each Covered Individual against any cost or expense (including reasonable attorney fees
reasonably acceptable to the Company) or liability (including any amount paid in settlement of a
claim with the approval of the Company), and amounts advanced to such Covered Individual necessary
to pay the foregoing at the earliest time and to the fullest extent permitted, arising out of any
act or omission to act in connection with the Plan, any Award granted hereunder or any Award
Agreement entered into hereunder. Such indemnification shall be in addition to any rights of
indemnification such individuals may have under applicable law or under the Articles of
Incorporation or Bylaws of the Company. Notwithstanding anything else herein, this indemnification
will not apply to the actions or determinations made by a Covered Individual with regard to Awards
granted to such Covered Individual under the Plan or arising out of such Covered Individual’s own
fraud or bad faith.

     5. SHARES OF COMMON STOCK SUBJECT TO PLAN

          (a) Shares Available for Awards. The Common Stock that may be issued pursuant to
Awards granted under the Plan shall be treasury shares or authorized but unissued shares of the
Common Stock. The total number of shares of Common Stock that may be issued pursuant to Awards
granted under the Plan shall be One Million Five Hundred Thousand (1,500,000) shares.

          (b) Maximum Shares Issuable During a Fiscal Year. The maximum number of shares of
Common Stock that may be issued under all Awards granted in a fiscal year shall not exceed three
percent (3%) of the Company’s maximum authorized and outstanding shares of Common Stock at any time
during said fiscal year; provided, however, that (i) such limitation shall not include any
substitute grants made in settlement of any awards under any other plan sponsored by the Company or
substitute grants or equity assumed in connection with a corporate

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transaction, and (ii) any shares of Common Stock repurchased or redeemed by the Company after
any Awards have been made which have been authorized by the Board shall nevertheless be deemed to
be outstanding for purposes of calculating whether there has been a violation of this Section 5(b).

          (c) Certain Limitations on Specific Types of Awards. The granting of Awards under
this Plan shall be subject to the following limitations:

               (i) With respect to the shares of Common Stock reserved pursuant to this Section, a
maximum of One Million Five Hundred Thousand (1,500,000) of such shares may be subject to
grants of Incentive Stock Options;

               (ii) With respect to the shares of Common Stock reserved pursuant to this Section, a
maximum of One Million Five Hundred Thousand (1,500,000) of such shares may be issued in
connection with Awards, other than Stock Options and Stock Appreciation Rights, that are
settled in Common Stock;

               (iii) With respect to the shares of Common Stock reserved pursuant to this Section, a
maximum of Two Hundred Thousand (200,000) of such shares may be subject to grants of Options
or Stock Appreciation Rights to any one Eligible Individual during any one fiscal year;

               (iv) With respect to the shares of Common Stock reserved pursuant to this Section, a
maximum of Two Hundred Thousand (200,000) of such shares may be subject to grants of
Performance Shares, Restricted Stock, and Awards of Common Stock to any one Eligible
Individual during any one fiscal year; and

               (v) The maximum value at Grant Date of grants of Performance Units which may be granted
to any one Eligible Individual during any one fiscal year shall be $200,000.

          (d) Reduction of Shares Available for Awards. Upon the granting of an Award, the
number of shares of Common Stock available under this Section hereof for the granting of further
Awards shall be reduced as follows:

               (i) In connection with the granting of an Option or Stock Appreciation Right, the
number of shares of Common Stock shall be reduced by the number of shares of Common Stock
subject to the Option or Stock Appreciation Right;

               (ii) In connection with the granting of an Award that is settled in Common Stock, other
than the granting of an Option or Stock Appreciation Right, the number of shares of Common
Stock shall be reduced by the number of shares of Common Stock subject to the Award; and

               (iii) Awards settled in cash shall not count against the total number of shares of
Common Stock available to be granted pursuant to the Plan.

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          (e) Cancelled, Forfeited, or Surrendered Awards. Notwithstanding anything to the
contrary in this Plan, if any Award is cancelled, forfeited or terminated for any reason prior to
exercise or becoming vested in full, the shares of Common Stock that were subject to such Award
shall, to the extent cancelled, forfeited or terminated, immediately become available for future
Awards granted under the Plan as if said Award had never been granted; provided, however, that any
shares of Common Stock subject to an Award which is cancelled, forfeited or terminated in order to
pay the Exercise Price, purchase price or any taxes or tax withholdings on an Award shall not be
available for future Awards granted under the Plan.

          (f) Recapitalization. If the outstanding shares of Common Stock are increased or
decreased or changed into or exchanged for a different number or kind of shares or other securities
of the Company by reason of any recapitalization, reclassification, reorganization, stock split,
reverse split, combination of shares, exchange of shares, stock dividend or other distribution
payable in capital stock of the Company or other increase or decrease in such shares effected
without receipt of consideration by the Company occurring after the Effective Date, an appropriate
and proportionate adjustment shall be made by the Committee to (i) the aggregate number and kind of
shares of Common Stock available under the Plan, (ii) the aggregate limit of the number of shares
of Common Stock that may be granted pursuant to an Incentive Stock Option, (iii) the limits on the
number of shares of Common Stock that may be granted to an Eligible Employee in any one fiscal
year, (iv) the calculation of the reduction of shares of Common Stock available under the Plan, (v)
the number and kind of shares of Common Stock issuable upon exercise (or vesting) of outstanding
Awards granted under the Plan; (vi) the Exercise Price of outstanding Options granted under the
Plan, and/or (vii) the number of shares of Common Stock subject to Awards granted to Non-Employee
Directors under Section 10. No fractional shares of Common Stock or units of other securities
shall be issued pursuant to any such adjustment under this Section 5(f), and any fractions
resulting from any such adjustment shall be eliminated in each case by rounding downward to the
nearest whole share or unit. Any adjustments made under this Section 5(f) with respect to any
Incentive Stock Options must be made in accordance with Code Section 424.

     6. OPTIONS

          (a) Grant of Options. Subject to the terms and conditions of the Plan, the Committee
may grant to such Eligible Individuals as the Committee may determine, Options to purchase such
number of shares of Common Stock and on such terms and conditions as the Committee shall determine
in its sole and absolute discretion. Each grant of an Option shall satisfy the requirements set
forth in this Section.

          (b) Type of Options. Each Option granted under the Plan may be designated by the
Committee, in its sole discretion, as either (i) an Incentive Stock Option, or (ii) a Non-Qualified
Stock Option. Options designated as Incentive Stock Options that fail to continue to meet the
requirements of Code Section 422 shall be re-designated as Non-Qualified Stock Options
automatically on the date of such failure to continue to meet such requirements without further
action by the Committee. In the absence of any designation, Options granted under the Plan will be
deemed to be Non-Qualified Stock Options.

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          (c) Exercise Price. Subject to the limitations set forth in the Plan relating to
Incentive Stock Options, the Exercise Price of an Option shall be fixed by the Committee and stated
in the respective Award Agreement, provided that the Exercise Price of the shares of Common Stock
subject to such Option may not be less than Fair Market Value of such Common Stock on the Grant
Date, or if greater, the par value of the Common Stock.

          (d) Limitation on Repricing. Unless such action is approved by the Company’s
shareholders in accordance with applicable law: (i) no outstanding Option granted under the Plan
may be amended to provide an Exercise Price that is lower than the then-current Exercise Price of
such outstanding Option (other than adjustments to the Exercise Price pursuant to Sections 5(f) and
12); (ii) the Committee may not cancel any outstanding Option and grant in substitution therefore
new Awards under the Plan covering the same or a different number of shares of Common Stock and
having an Exercise Price lower than the then-current Exercise Price of the cancelled Option (other
than adjustments to the Exercise Price pursuant to Sections 5(f) and 12); and (iii) the Committee
may not authorize the repurchase of an outstanding Option which has an Exercise Price that is
higher than the then-current fair market value of the Common Stock (other than adjustments to the
Exercise Price pursuant to Sections 5(f) and 12).

          (e) Limitation on Option Period. Subject to the limitations set forth in the Plan
relating to Incentive Stock Options, Options granted under the Plan and all rights to purchase
Common Stock thereunder shall terminate no later than the tenth anniversary of the Grant Date of
such Options, or on such earlier date as may be stated in the Award Agreement relating to such
Option. In the case of Options expiring prior to the tenth anniversary of the Grant Date, the
Committee may in its discretion, at any time prior to the expiration or termination of said
Options, extend the term of any such Options for such additional period as it may determine, but in
no event beyond the tenth anniversary of the Grant Date thereof.

          (f) Limitations on Incentive Stock Options. Notwithstanding any other provisions of
the Plan, the following provisions shall apply with respect to Incentive Stock Options granted
pursuant to the Plan.

               (i) Limitation on Grants. Incentive Stock Options may only be granted to
Section 424 Employees. The aggregate Fair Market Value (determined at the time such
Incentive Stock Option is granted) of the shares of Common Stock for which any individual
may have Incentive Stock Options which first become vested and exercisable in any calendar
year (under all incentive stock option plans of the Company) shall not exceed $100,000.
Options granted to such individual in excess of the $100,000 limitation, and any Options
issued subsequently which first become vested and exercisable in the same calendar year,
shall automatically be treated as Non-Qualified Stock Options.

               (ii) Minimum Exercise Price. In no event may the Exercise Price of a share of
Common Stock subject an Incentive Stock Option be less than 100% of the Fair Market Value of
such share of Common Stock on the Grant Date.

               (iii) Ten Percent Shareholder. Notwithstanding any other provision of the Plan
to the contrary, in the case of Incentive Stock Options granted to a Section 424

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Employee who, at the time the Option is granted, owns (after application of the rules
set forth in Code Section 424(d)) stock possessing more than ten percent of the total
combined voting power of all classes of stock of the Company, such Incentive Stock Options
(i) must have an Exercise Price per share of Common Stock that is at least 110% of the Fair
Market Value as of the Grant Date of a share of Common Stock, and (ii) must not be
exercisable after the fifth anniversary of the Grant Date.

          (g) Vesting Schedule and Conditions. No Options may be exercised prior to the
satisfaction of the conditions and vesting schedule provided for in the Award Agreement relating
thereto. Except as otherwise provided by the Committee in an Award Agreement in its sole and
absolute discretion, subject to Sections 10, 12 and 13 of the Plan, Options covered by any Award
under this Plan that are subject solely to a future service requirement shall vest as follows: [(i)
20% of the Options subject to an Award shall vest immediately upon the Grant Date; and (ii) the
remaining 80% of the Options subject to an Award shall vest over the four-year period immediately
following the Grant Date in equal annual increments of 20%, with one increment vesting on each
anniversary date of the Grant Date.]

          (h) Exercise. When the conditions to the exercise of an Option have been satisfied,
the Participant may exercise the Option only in accordance with the following provisions. The
Participant shall deliver to the Company a written notice stating that the Participant is
exercising the Option and specifying the number of shares of Common Stock which are to be purchased
pursuant to the Option, and such notice shall be accompanied by payment in full of the Exercise
Price of the shares for which the Option is being exercised, by one or more of the methods provided
for in the Plan. Said notice must be delivered to the Company at its principal office and
addressed to the attention of Patrick J. McEnany, Chief Executive Officer. An attempt to exercise
any Option granted hereunder other than as set forth in the Plan shall be invalid and of no force
and effect.

          (i) Payment. Payment of the Exercise Price for the shares of Common Stock purchased
pursuant to the exercise of an Option shall be made by one of the following methods:

               (i) by cash, certified or cashier’s check, bank draft or money order;

               (ii) through the delivery to the Company of shares of Common Stock which have been
previously owned by the Participant for the requisite period necessary to avoid a charge to
the Company’s earnings for financial reporting purposes; such shares shall be valued, for
purposes of determining the extent to which the Exercise Price has been paid thereby, at
their Fair Market Value on the date of exercise; without limiting the foregoing, the
Committee may require the Participant to furnish an opinion of counsel acceptable to the
Committee to the effect that such delivery would not result in the Company incurring any
liability under Section 16(b) of the Exchange Act; or

               (iii) by any other method which the Committee, in its sole and absolute discretion and
to the extent permitted by applicable law, may permit, including, but not limited to, any of
the following: (A) through a “cashless exercise sale and remittance procedure” pursuant to
which the Participant shall concurrently provide irrevocable instructions (1) to a brokerage
firm approved by the Committee to effect the immediate

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sale of the purchased shares and remit to the Company, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate Exercise Price
payable for the purchased shares plus all applicable federal, state and local income,
employment, excise, foreign and other taxes required to be withheld by the Company by reason
of such exercise and (2) to the Company to deliver the certificates for the purchased shares
directly to such brokerage firm in order to complete the sale; or (B) by any other method as
may be permitted by the Committee.

          (j) Termination of Employment, Disability or Death. Unless otherwise provided in an
Award Agreement, upon the termination of the employment or other service of a Participant with
Company for any reason, all of the Participant’s outstanding Options (whether vested or unvested)
shall be subject to the rules of this paragraph. Upon such termination, the Participant’s unvested
Options shall expire. Notwithstanding anything in this Plan to the contrary, the Committee may
provide, in its sole and absolute discretion, that following the termination of employment or other
service of a Participant with the Company for any reason (i) any unvested Options held by the
Participant that vest solely upon a future service requirement shall vest in whole or in part, at
any time subsequent to such termination of employment or other service, and or (ii) a Participant
or the Participant’s estate, devisee or heir at law (whichever is applicable), may exercise an
Option, in whole or in part, at any time subsequent to such termination of employment or other
service and prior to the termination of the Option pursuant to its terms. Unless otherwise
determined by the Committee, temporary absence from employment because of illness, vacation,
approved leaves of absence or military service shall not constitute a termination of employment or
other service.

               (i) Termination for Reason Other Than Cause, Disability or Death. If a
Participant’s termination of employment or other service is for any reason other than death,
Disability, Cause or a voluntary termination within ninety (90) days after occurrence of an
event which would be grounds for termination of employment or other service by the Company
for Cause, any Option held by such Participant, may be exercised, to the extent exercisable
at termination, by the Participant at any time within a period not to exceed ninety (90)
days from the date of such termination, but in no event after the termination of the Option
pursuant to its terms.

               (ii) Disability. If a Participant’s termination of employment or other service
with the Company is by reason of a Disability of such Participant, the Participant shall
have the right at any time within a period not to exceed one (1) year after such
termination, but in no event after the termination of the Option pursuant to its terms, to
exercise, in whole or in part, any vested portion of the Option held by such Participant at
the date of such termination; provided, however, that if the Participant dies within such
period, any vested Option held by such Participant upon death shall be exercisable by the
Participant’s estate, devisee or heir at law (whichever is applicable) for a period not to
exceed one (1) year after the Participant’s death, but in no event after the termination of
the Option pursuant to its terms.

               (iii) Death. If a Participant dies while in the employment or other service of
the Company, the Participant’s estate or the devisee named in the Participant’s valid last
will and testament or the Participant’s heir at law who inherits the Option has

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the right, at any time within a period not to exceed one (1) year after the date of
such Participant’s death, but in no event after the termination of the Option pursuant to
its terms, to exercise, in whole or in part, any portion of the vested Option held by such
Participant at the date of such Participant’s death.

               (iv) Termination for Cause. In the event the termination is for Cause or is a
voluntary termination within ninety (90) days after occurrence of an event which would be
grounds for termination of employment or other service by the Company for Cause (without
regard to any notice or cure period requirement), any Option held by the Participant at the
time of such termination shall be deemed to have terminated and expired upon the date of
such termination.

     7. STOCK APPRECIATION RIGHTS

          (a) Grant of Stock Appreciation Rights. Subject to the terms and conditions of the
Plan, the Committee may grant to such Eligible Individuals as the Committee may determine, Stock
Appreciation Rights, in such amounts and on such terms and conditions as the Committee shall
determine in its sole and absolute discretion. Each grant of a Stock Appreciation Right shall
satisfy the requirements as set forth in this Section.

          (b)  Terms and Conditions of Stock Appreciation Rights. Unless otherwise provided in
an Award Agreement, the terms and conditions (including, without limitation, the limitations on the
Exercise Price, exercise period, repricing and termination) of the Stock Appreciation Right shall
be substantially identical (to the extent possible taking into account the differences related to
the character of the Stock Appreciation Right) to the terms and conditions that would have been
applicable under Section 6 above were the grant of the Stock Appreciation Rights a grant of an
Option.

          (c) Exercise of Stock Appreciation Rights. Stock Appreciation Rights shall be
exercised by a Participant only by written notice delivered to the Chief Executive Officer of the
Company, specifying the number of shares of Common Stock with respect to which the Stock
Appreciation Right is being exercised.

          (d) Payment of Stock Appreciation Right. Unless otherwise provided in an Award
Agreement, upon exercise of a Stock Appreciation Right, the Participant or Participant’s estate,
devisee or heir at law (whichever is applicable) shall be entitled to receive payment, in cash, in
shares of Common Stock, or in a combination thereof, as determined by the Committee in its sole and
absolute discretion. The amount of such payment shall be determined by multiplying the excess, if
any, of the Fair Market Value of a share of Common Stock on the date of exercise over the Fair
Market Value of a share of Common Stock on the Grant Date, by the number of shares of Common Stock
with respect to which the Stock Appreciation Rights are then being exercised. Notwithstanding the
foregoing, the Committee may limit in any manner the amount payable with respect to a Stock
Appreciation Right by including such limitation in the Award Agreement.

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     8. RESTRICTED STOCK

          (a) Grant of Restricted Stock. Subject to the terms and conditions of the Plan, the
Committee may grant to such Eligible Individuals as the Committee may determine, Restricted Stock,
in such amounts and on such terms and conditions as the Committee shall determine in its sole and
absolute discretion. Each grant of Restricted Stock shall satisfy the requirements as set forth in
this Section.

          (b) Restrictions. The Committee shall impose such restrictions on any Restricted
Stock granted pursuant to the Plan as it may deem advisable including, without limitation; time
based vesting restrictions, or the attainment of Performance Goals. Except as otherwise provided
by the Committee in an Award Agreement in its sole and absolute discretion, subject to Sections 10,
12 and 13 of the Plan, Restricted Stock covered by any Award under this Plan that are subject
solely to a future service requirement shall vest over the [four-year period immediately following
the Grant Date in equal annual increments of 25%, with one increment vesting on each anniversary
date of the Grant Date.] Shares of Restricted Stock subject to the attainment of Performance Goals
will be released from restrictions only after the attainment of such Performance Goals has been
certified by the Committee in accordance with Section 9(c).

          (c) Certificates and Certificate Legend. With respect to a grant of Restricted Stock,
the Company may issue a certificate evidencing such Restricted Stock to the Participant or issue
and hold such shares of Restricted Stock for the benefit of the Participant until the applicable
restrictions expire. The Company may legend the certificate representing Restricted Stock to give
appropriate notice of such restrictions. In addition to any such legends, each certificate
representing shares of Restricted Stock granted pursuant to the Plan shall bear the following
legend:

“The sale or other transfer of the shares of stock represented by this
certificate, whether voluntary, involuntary, or by operation of law, are
subject to certain terms, conditions, and restrictions on transfer as set
forth in the Catalyst Pharmaceutical Partners, Inc. 2006 Stock Incentive
Plan (the “Plan”), and in an Agreement entered into by and between the
registered owner of such shares and Catalyst Pharmaceutical Partners, Inc.
(the “Company”), dated ___(the “Award Agreement”). A copy of the
Plan and the Award Agreement may be obtained from the Secretary of the
Company.”

          (d) Removal of Restrictions. Except as otherwise provided in the Plan, shares of
Restricted Stock shall become freely transferable by the Participant upon the lapse of the
applicable restrictions. Once the shares of Restricted Stock are released from the restrictions,
the Participant shall be entitled to have the legend required by paragraph (c) above removed from
the share certificate evidencing such Restricted Stock and the Company shall pay or distribute to
the Participant all dividends and distributions held in escrow by the Company with respect to such
Restricted Stock.

          (e) Shareholder Rights. Unless otherwise provided in an Award Agreement, until the
expiration of all applicable restrictions, (i) the Restricted Stock shall be treated as

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outstanding, (ii) the Participant holding shares of Restricted Stock may exercise full voting
rights with respect to such shares, and (iii) the Participant holding shares of Restricted Stock
shall be entitled to receive all dividends and other distributions paid with respect to such shares
while they are so held. If any such dividends or distributions are paid in shares of Common Stock,
such shares shall be subject to the same restrictions on transferability and forfeitability as the
shares of Restricted Stock with respect to which they were paid. Notwithstanding anything to the
contrary, at the discretion of the Committee, all such dividends and distributions may be held in
escrow by the Company (subject to the same restrictions on forfeitability) until all restrictions
on the respective Restricted Stock have lapsed.

          (f) Termination of Service. Unless otherwise provided in a Award Agreement, if a
Participant’s employment or other service with the Company terminates for any reason, all unvested
shares of Restricted Stock held by the Participant and any dividends or distributions held in
escrow by the Company with respect to such Restricted Stock shall be forfeited immediately and
returned to the Company. Notwithstanding this paragraph, all grants of Restricted Stock that vest
solely upon the attainment of Performance Goals shall be treated pursuant to the terms and
conditions that would have been applicable under Section 9(c) as if such grants of Restricted Stock
were Awards of Performance Shares. Notwithstanding anything in this Plan to the contrary, the
Committee may provide, in its sole and absolute discretion, that following the termination of
employment or other service of a Participant with the Company for any reason, any unvested shares
of Restricted Stock held by the Participant that vest solely upon a future service requirement
shall vest in whole or in part, at any time subsequent to such termination of employment or other
service.

     9. PERFORMANCE SHARES AND PERFORMANCE UNITS

          (a) Grant of Performance Shares and Performance Units. Subject to the terms and
conditions of the Plan, the Committee may grant to such Eligible Individuals as the Committee may
determine, Performance Shares and Performance Units, in such amounts and on such terms and
conditions as the Committee shall determine in its sole and absolute discretion. Each grant of a
Performance Share or a Performance Unit shall satisfy the requirements as set forth in this
Section.

          (b) Performance Goals. Performance Goals will be based on one or more of the
following criteria, as determined by the Committee in its absolute and sole discretion: (i) the
attainment of certain target levels of, or a specified increase in, the Company’s enterprise value
or value creation targets; (ii) the attainment of certain target levels of, or a percentage
increase in, the Company’s after-tax or pre-tax profits including, without limitation, that
attributable to the Company’s continuing and/or other operations; (iii) the attainment of certain
target levels of, or a specified increase relating to, the Company’s operational cash flow or
working capital, or a component thereof; (iv) the attainment of certain target levels of, or a
specified decrease relating to, the Company’s operational costs, or a component thereof (v) the
attainment of a certain level of reduction of, or other specified objectives with regard to
limiting the level of increase in all or a portion of bank debt or other of the Company’s long-term
or short-term public or private debt or other similar financial obligations of the Company, which
may be calculated net of cash balances and/or other offsets and adjustments as may be established
by the Committee; (vi) the attainment of a specified percentage increase in earnings per share or
earnings per share from the

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Company’s continuing operations; (vii) the attainment of certain target levels of, or a
specified percentage increase in, the Company’s net sales, revenues, net income or earnings before
income tax or other exclusions; (viii) the attainment of certain target levels of, or a specified
increase in, the Company’s return on capital employed or return on invested capital; (ix) the
attainment of certain target levels of, or a percentage increase in, the Company’s after-tax or
pre-tax return on shareholder equity; (x) the attainment of certain target levels in the fair
market value of the Company’s Common Stock; (xi) the growth in the value of an investment in the
Common Stock assuming the reinvestment of dividends; and/or (xii) the attainment of certain target
levels of, or a specified increase in, EBITDA (earnings before income tax, depreciation and
amortization). In addition, Performance Goals may be based upon the attainment by a subsidiary,
division or other operational unit of the Company of specified levels of performance under one or
more of the measures described above. Further, the Performance Goals may be based upon the
attainment by the Company (or a subsidiary, division, facility or other operational unit of the
Company) of specified levels of performance under one or more of the foregoing measures relative to
the performance of other corporations. To the extent permitted under Code Section 162(m) of the
Code (including, without limitation, compliance with any requirements for shareholder approval),
the Committee may, in its sole and absolute discretion: (i) designate additional business criteria
upon which the Performance Goals may be based; (ii) modify, amend or adjust the business criteria
described herein; or (iii) incorporate in the Performance Goals provisions regarding changes in
accounting methods, corporate transactions (including, without limitation, dispositions or
acquisitions) and similar events or circumstances. Performance Goals may include a threshold level
of performance below which no Award will be earned, levels of performance at which an Award will
become partially earned and a level at which an Award will be fully earned.

          (c) Terms and Conditions of Performance Shares and Performance Units. The applicable
Award Agreement shall set forth (i) the number of Performance Shares or the dollar value of
Performance Units granted to the Participant; (ii) the Performance Period and Performance Goals
with respect to each such Award; (iii) the threshold, target and maximum shares of Common Stock or
dollar values of each Performance Share or Performance Unit and corresponding Performance Goals,
and (iv) any other terms and conditions as the Committee determines in its sole and absolute
discretion. The Committee shall establish, in its sole and absolute discretion, the Performance
Goals for the applicable Performance Period for each Performance Share or Performance Unit granted
hereunder. Performance Goals for different Participants and for different grants of Performance
Shares and Performance Units need not be identical. Unless otherwise provided in an Award
Agreement, the Participants’ rights as a shareholder in Performance Shares shall be substantially
identical to the terms and conditions that would have been applicable under Section 8 above if the
Performance Shares were Restricted Stock. Unless otherwise provided in an Award Agreement, a
holder of Performance Units is not entitled to the rights of a holder of our Common Stock.

          (d) Determination and Payment of Performance Units or Performance Shares Earned. As
soon as practicable after the end of a Performance Period, the Committee shall determine the extent
to which Performance Shares or Performance Units have been earned on the basis of the Company’s
actual performance in relation to the established Performance Goals as set forth in the applicable
Award Agreement and shall certify these results in writing. As soon as practicable after the
Committee has determined that an amount is payable or should be

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distributed with respect to a Performance Share or a Performance Unit, the Committee shall
cause the amount of such Award to be paid or distributed to the Participant or the Participant’s
estate, devisee or heir at law (whichever is applicable). Unless otherwise provided in an Award
Agreement, the Committee shall determine in its sole and absolute discretion whether payment with
respect to the Performance Share or Performance Unit shall be made in cash, in shares of Common
Stock, or in a combination thereof. For purposes of making payment or a distribution with respect
to a Performance Share or Performance Unit, the cash equivalent of a share of Common Stock shall be
determined by the Fair Market Value of the Common Stock on the day the Committee designates the
Performance Shares or Performance Units to be payable.

          (e) Termination of Employment. Unless otherwise provided in an Award Agreement, if a
Participant’s employment or other service with the Company terminates for any reason, all of the
Participant’s outstanding Performance Shares and Performance Units shall be subject to the rules of
this Section.

               (i) Termination for Reason Other Than Death or Disability. If a Participant’s
employment or other service with the Company terminates prior to the expiration of a
Performance Period with respect to any Performance Units or Performance Shares held by such
Participant for any reason other than death or Disability, the outstanding Performance Units
or Performance Shares held by such Participant for which the Performance Period has not yet
expired shall terminate upon such termination and the Participant shall have no further
rights pursuant to such Performance Units or Performance Shares.

               (ii) Termination of Employment for Death or Disability. If a Participant’s
employment or other service with the Company terminates by reason of the Participant’s death
or Disability prior to the end of a Performance Period, the Participant, or the
Participant’s estate, devisee or heir at law (whichever is applicable) shall be entitled to
a payment of the Participant’s outstanding Performance Units and Performance Share at the
end of the applicable Performance Period, pursuant to the terms of the Plan and the
Participant’s Award Agreement; provided, however, that the Participant shall be deemed to
have earned only that proportion (to the nearest whole unit or share) of the Performance
Units or Performance Shares granted to the Participant under such Award as the number of
full months of the Performance Period which have elapsed since the first day of the
Performance Period for which the Award was granted to the end of the month in which the
Participant’s termination of employment or other service, bears to the total number of
months in the Performance Period, subject to the attainment of the Performance Goals
associated with the Award as certified by the Committee. The right to receive any remaining
Performance Units or Performance Shares shall be canceled and forfeited.

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     10. VESTING OF AWARD GRANTS TO NON-EMPLOYEE DIRECTORS

     Notwithstanding the minimum vesting provisions in Section 6(g) and 8(b) of the Plan, any Award
granted to a Non-Employee Director in lieu of cash compensation shall not be subject to any minimum
vesting requirements.

     11. OTHER AWARDS

     Awards of shares of Common Stock, phantom stock, restricted stock units and other awards that
are valued in whole or in part by reference to, or otherwise based on, Common Stock, may also be
made, from time to time, to Eligible Individuals as may be selected by the Committee. Such Common
Stock may be issued in satisfaction of awards granted under any other plan sponsored by the Company
or compensation payable to an Eligible Individual. In addition, such awards may be made alone or
in addition to or in connection with any other Award granted hereunder. The Committee may
determine the terms and conditions of any such award. Each such award shall be evidenced by an
Award Agreement between the Eligible Individual and the Company which shall specify the number of
shares of Common Stock subject to the award, any consideration therefore, any vesting or
performance requirements and such other terms and conditions as the Committee shall determine in
its sole and absolute discretion.

     12. CHANGE IN CONTROL

     Unless otherwise provided in an Award Agreement, upon the occurrence of a Change in Control of
the Company, the Committee may in its sole and absolute discretion, provide on a case by case basis
that (i) some or all outstanding Awards may become immediately exercisable or vested, without
regard to any limitation imposed pursuant to this Plan, (ii) that all Awards shall terminate,
provided that Participants shall have the right, immediately prior to the occurrence of such Change
in Control and during such reasonable period as the Committee in its sole discretion shall
determine and designate, to exercise any vested Award in whole or in part, (iii) that all Awards
shall terminate, provided that Participants shall be entitled to a cash payment equal to the Change
in Control Price with respect to shares subject to the vested portion of the Award net of the
Exercise Price thereof (if applicable), (iv) provide that, in connection with a liquidation or
dissolution of the Company, Awards shall convert into the right to receive liquidation proceeds net
of the Exercise Price (if applicable) and (v) any combination of the foregoing. In the event that
the Committee does not terminate or convert an Award upon a Change in Control of the Company, then
the Award shall be assumed, or substantially equivalent Awards shall be substituted, by the
acquiring, or succeeding corporation (or an affiliate thereof).

     13. CHANGE IN STATUS OF PARENT OR SUBSIDIARY

     Unless otherwise provided in an Award Agreement or otherwise determined by the Committee, in
the event that an entity or business unit which was previously a part of the Company is no longer a
part of the Company, as determined by the Committee in its sole discretion, the Committee may, in
its sole and absolute discretion: (i) provide on a case by case basis that some or all outstanding
Awards held by a Participant employed by or performing service for such entity or business unit may
become immediately exercisable or vested, without regard to any limitation imposed pursuant to this
Plan; (ii) provide on a case by case basis that

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some or all outstanding Awards held by a Participant employed by or performing service for
such entity or business unit may remain outstanding, may continue to vest, and/or may remain
exercisable for a period not exceeding one (1) year, subject to the terms of the Award Agreement
and this Plan; and/or (ii) treat the employment or other services of a Participant employed by such
entity or business unit as terminated if such Participant is not employed by the Company or any
entity that is a part of the Company immediately after such event.

     14. REQUIREMENTS OF LAW

          (a) Violations of Law. The Company shall not be required to sell or issue any shares
of Common Stock under any Award if the sale or issuance of such shares would constitute a violation
by the individual exercising the Award, the Participant or the Company of any provisions of any law
or regulation of any governmental authority, including without limitation any provisions of the
Sarbanes-Oxley Act, and any other federal or state securities laws or regulations. Any
determination in this connection by the Committee shall be final, binding, and conclusive. The
Company shall not be obligated to take any affirmative action in order to cause the exercise of an
Award, the issuance of shares pursuant thereto or the grant of an Award to comply with any law or
regulation of any governmental authority.

          (b) Registration. At the time of any exercise or receipt of any Award, the Company
may, if it shall determine it necessary or desirable for any reason, require the Participant (or
Participant’s heirs, legatees or legal representative, as the case may be), as a condition to the
exercise or grant thereof, to deliver to the Company a written representation of present intention
to hold the shares for their own account as an investment and not with a view to, or for sale in
connection with, the distribution of such shares, except in compliance with applicable federal and
state securities laws with respect thereto. In the event such representation is required to be
delivered, an appropriate legend may be placed upon each certificate delivered to the Participant
(or Participant’s heirs, legatees or legal representative, as the case may be) upon the
Participant’s exercise of part or all of the Award or receipt of an Award and a stop transfer order
may be placed with the transfer agent. Each Award shall also be subject to the requirement that,
if at any time the Company determines, in its discretion, that the listing, registration or
qualification of the shares subject to the Award upon any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition of or in connection with, the issuance or purchase of the shares
thereunder, the Award may not be exercised in whole or in part and the restrictions on an Award may
not be removed unless such listing, registration, qualification, consent or approval shall have
been effected or obtained free of any conditions not acceptable to the Company in its sole
discretion. The Participant shall provide the Company with any certificates, representations and
information that the Company requests and shall otherwise cooperate with the Company in obtaining
any listing, registration, qualification, consent or approval that the Company deems necessary or
appropriate. The Company shall not be obligated to take any affirmative action in order to cause
the exercisability or vesting of an Award, to cause the exercise of an Award or the issuance of
shares pursuant thereto, or to cause the grant of Award to comply with any law or regulation of any
governmental authority.

          (c) Withholding. The Committee may make such provisions and take such steps as it may
deem necessary or appropriate for the withholding of any taxes that the Company

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is required by any law or regulation of any governmental authority, whether federal, state or
local, domestic or foreign, to withhold in connection with the grant or exercise of an Award, or
the removal of restrictions on an Award including, but not limited to: (i) the withholding of
delivery of shares of Common Stock until the holder reimburses the Company for the amount the
Company is required to withhold with respect to such taxes; (ii) the canceling of any number of
shares of Common Stock issuable in an amount sufficient to reimburse the Company for the amount it
is required to so withhold; (iii) withholding the amount due from any such person’s wages or
compensation due to such person; or (iv) requiring the Participant to pay the Company cash in the
amount the Company is required to withhold with respect to such taxes.

          (d) Governing Law. The Plan shall be governed by, and construed and enforced in
accordance with, the laws of the State of Florida.

     15. GENERAL PROVISIONS

          (a) Award Agreements. All Awards granted pursuant to the Plan shall be evidenced by
an Award Agreement. Each Award Agreement shall specify the terms and conditions of the Award
granted and shall contain any additional provisions as the Committee shall deem appropriate, in its
sole and absolute discretion (including, to the extent that the Committee deems appropriate,
provisions relating to confidentiality, non-competition, non-solicitation and similar matters).
The terms of each Award Agreement need not be identical for Eligible Individuals provided that all
Award Agreements comply with the terms of the Plan.

          (b) Purchase Price. To the extent the purchase price of any Award granted hereunder
is less than par value of a share of Common Stock and such purchase price is not permitted by
applicable law, the per share purchase price shall be deemed to be equal to the par value of a
share of Common Stock.

          (c) Dividends and Dividend Equivalents. Except as provided by the Committee in its
sole and absolute discretion or as otherwise provided in Section 5(f) and subject to Section 8(e)
of the Plan, a Participant shall not be entitled to receive, currently or on a deferred basis, cash
or stock dividends, Dividend Equivalents, or cash payments in amounts equivalent to cash or stock
dividends on shares of Commons Stock covered by an Award which has not vested or an Option. The
Committee in its absolute and sole discretion may credit a Participant’s Award with Dividend
Equivalents with respect to any Awards. To the extent that dividends and distributions relating to
an Award are held in escrow by the Company, or Dividend Equivalents are credited to an Award, a
Participant shall not be entitled to any interest on any such amounts. The Committee may not grant
Dividend Equivalents to an Award subject to performance-based vesting to the extent that the grant
of such Dividend Equivalents would limit the Company’s deduction of the compensation payable under
such Award for federal tax purposes pursuant to Code Section 162(m).

          (d) Deferral of Awards. The Committee may from time to time establish procedures
pursuant to which a Participant may elect to defer, until a time or times later than the vesting
of an Award, receipt of all or a portion of the shares of Common Stock or cash subject to such
Award and to receive Common Stock or cash at such later time or times, all on such terms and
conditions as the Committee shall determine. The Committee shall not permit the deferral of

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an Award unless counsel for the Company determines that such action will not result in adverse
tax consequences to a Participant under Section 409A of the Code. If any such deferrals are
permitted, then notwithstanding anything to the contrary herein, a Participant who elects to defer
receipt of Common Stock shall not have any rights as a shareholder with respect to deferred shares
of Common Stock unless and until shares of Common Stock are actually delivered to the Participant
with respect thereto, except to the extent otherwise determined by the Committee.

          (e) Prospective Employees. Notwithstanding anything to the contrary, any Award
granted to a Prospective Employee shall not become vested prior to the date the Prospective
Employee first becomes an employee of the Company.

          (f) Issuance of Certificates; Shareholder Rights. The Company shall deliver to the
Participant a certificate evidencing the Participant’s ownership of shares of Common Stock issued
pursuant to the exercise of an Award as soon as administratively practicable after satisfaction of
all conditions relating to the issuance of such shares. A Participant shall not have any of the
rights of a shareholder with respect to such Common Stock prior to satisfaction of all conditions
relating to the issuance of such Common Stock, and, except as expressly provided in the Plan, no
adjustment shall be made for dividends, distributions or other rights of any kind for which the
record date is prior to the date on which all such conditions have been satisfied.

          (g) Transferability of Awards. A Participant may not Transfer an Award other than by
will or the laws of descent and distribution. Awards may be exercised during the Participant’s
lifetime only by the Participant. No Award shall be liable for or subject to the debts, contracts,
or liabilities of any Participant, nor shall any Award be subject to legal process or attachment
for or against such person. Any purported Transfer of an Award in contravention of the provisions
of the Plan shall have no force or effect and shall be null and void, and the purported transferee
of such Award shall not acquire any rights with respect to such Award. Notwithstanding anything to
the contrary, the Committee may in its sole and absolute discretion permit the Transfer of an Award
to a Participant’s “family member” as such term is defined in the Form 8 Registration Statement
under the Securities Act of 1933, as amended, under such terms and conditions as specified by the
Committee. In such case, such Award shall be exercisable only by the transferee approved of by the
Committee. To the extent that the Committee permits the Transfer of an Incentive Stock Option to a
“family member”, so that such Option fails to continue to satisfy the requirements of an incentive
stock option under the Code such Option shall automatically be re-designated as a Non-Qualified
Stock Option.

          (h) Buyout and Settlement Provisions. Except as prohibited in Section 6(d) of the
Plan, the Committee may at any time on behalf of the Company offer to buy out any Awards previously
granted based on such terms and conditions as the Committee shall determine which shall be
communicated to the Participants at the time such offer is made.

          (i) Use of Proceeds. The proceeds received by the Company from the sale of Common
Stock pursuant to Awards granted under the Plan shall constitute general funds of the Company.

          (j) Modification or Substitution of an Award. Subject to the terms and conditions of
the Plan, the Committee may modify outstanding Awards. Notwithstanding the

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following, no modification of an Award shall adversely affect any rights or obligations of the
Participant under the applicable Award Agreement without the Participant’s consent. The Committee
in its sole and absolute discretion may rescind, modify, or waive any vesting requirements or other
conditions applicable to an Award. Notwithstanding the foregoing, without the approval of the
shareholders of the Company in accordance with applicable law, an Award may not be modified to
reduce the exercise price thereof nor may an Award at a lower price be substituted for a surrender
of an Award, provided that (i) the foregoing shall not apply to adjustments or substitutions in
accordance with Section 5 or Section 12, and (ii) if an Award is modified, extended or renewed and
thereby deemed to be in issuance of a new Award under the Code or the applicable accounting rules,
the exercise price of such Award may continue to be the original Exercise Price even if less than
Fair Market Value of the Common Stock at the time of such modification, extension or renewal.

          (k) Amendment and Termination of Plan. The Board may, at any time and from time to
time, amend, suspend or terminate the Plan as to any shares of Common Stock as to which Awards have
not been granted; provided, however, that the approval of the shareholders of the Company in
accordance with applicable law and the Articles of Incorporation and Bylaws of the Company shall be
required for any amendment: (i) that changes the class of individuals eligible to receive Awards
under the Plan: (ii) that increases the maximum number of shares of Common Stock in the aggregate
that may be subject to Awards that are granted under the Plan (except as permitted under Section 5
or Section 12 hereof): (iii) the approval of which is necessary to comply with federal or state law
(including without limitation Section 162(m) of the Code and Rule 16b-3 under the Exchange Act) or
with the rules of any stock exchange or automated quotation system on which the Common Stock may be
listed or traded; or (iv) that proposed to eliminate a requirement provided herein that the
shareholders of the Company must approve an action to be undertaken under the Plan. Except as
permitted under Section 5 or Section 12 hereof, no amendment, suspension or termination of the Plan
shall, without the consent of the holder of an Award, alter or impair rights or obligations under
any Award theretofore granted under the Plan. Awards granted prior to the termination of the Plan
may extend beyond the date the Plan is terminated and shall continue subject to the terms of the
Plan as in effect on the date the Plan is terminated.

          (l) Section 409A of the Code. With respect to Awards subject to Section 409A of the
Code, this Plan is intended to comply with the requirements of such Section, and the provisions
hereof shall be interpreted in a manner that satisfies the requirements of such Section and the
related regulations, and the Plan shall be operated accordingly. If any provision of this Plan or
any term or condition of any Award would otherwise frustrate or conflict with this intent, the
provision, term or condition will be interpreted and deemed amended so as to avoid this conflict.

          (m) Notification of 83(b) Election. If in connection with the grant of any Award, any
Participant makes an election permitted under Code Section 83(b), such Participant must notify the
Company in writing of such election within ten (10) days of filing such election with the Internal
Revenue Service.

          (n) [Detrimental Activity. All Awards shall be subject to cancellation by the
Committee in accordance with the terms of this Section 15(n) if the Participant engages in any

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Detrimental Activity. To the extent that a Participant engages in any Detrimental Activity at
any time prior to, or during the one year period after, any exercise or vesting of an Award but
prior to a Change in Control, the Company shall, upon the recommendation of the Committee, in its
sole and absolute discretion, be entitled to (i) immediately terminate and cancel any Awards held
by the Participant that have not yet been exercised, and/or (ii) with respect to Awards of the
Participant that have been previously exercised, recover from the Participant at any time within
two (2) years after such exercise but prior to a Change in Control (and the Participant shall be
obligated to pay over to the Company with respect to any such Award previously held by such
Participant): (A) with respect to any Options exercised, an amount equal to the excess of the Fair
Market Value of the Common Stock for which any Option was exercised over the Exercise Price paid
(regardless of the form by which payment was made) with respect to such Option; (B) with respect to
any Award other than an Option, any shares of Common Stock granted and vested pursuant to such
Award, and if such shares are not still owned by the Participant, the Fair Market Value of such
shares on the date they were issued, or if later, the date all vesting restrictions were satisfied;
and (C) any cash or other property (other than Common Stock) received by the Participant from the
Company pursuant to an Award. Without limiting the generality of the foregoing, in the event that
a Participant engages in any Detrimental Activity at any time prior to any exercise of an Award and
the Company exercises its remedies pursuant to this Section 15(n) following the exercise of such
Award, such exercise shall be treated as having been null and void, provided that the Company will
nevertheless be entitled to recover the amounts referenced above.]

          (o) Disclaimer of Rights. No provision in the Plan, any Award granted hereunder, or
any Award Agreement entered into pursuant to the Plan shall be construed to confer upon any
individual the right to remain in the employ of or other service with the Company or to interfere
in any way with the right and authority of the Company either to increase or decrease the
compensation of any individual, including any holder of an Award, at any time, or to terminate any
employment or other relationship between any individual and the Company. The grant of an Award
pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make
adjustments, reclassifications, reorganizations or changes of its capital or business structure or
to merge, consolidate, dissolve or liquidate, or to sell or transfer all or any part of its
business or assets.

          (p) Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan
for incentive and deferred compensation. With respect to any payments as to which a Participant
has a fixed and vested interest but which are not yet made to such Participant by the Company,
nothing contained herein shall give any such Participant any rights that are greater than those of
a general creditor of the Company.

          (q) Nonexclusivity of Plan. The adoption of the Plan shall not be construed as
creating any limitations upon the right and authority of the Board to adopt such other incentive
compensation arrangements (which arrangements may be applicable either generally to a class or
classes of individuals or specifically to a particular individual or individuals) as the Board in
its sole and absolute discretion determines desirable.

          (r) Other Benefits. No Award payment under the Plan shall be deemed compensation for
purposes of computing benefits under any retirement plan of the Company or

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any agreement between a Participant and the Company, nor affect any benefits under any other
benefit plan of the Company now or subsequently in effect under which benefits are based upon a
Participant’s level of compensation.

          (s) Headings. The section headings in the Plan are for convenience only; they form no
part of this Agreement and shall not affect its interpretation.

          (t) Pronouns. The use of any gender in the Plan shall be deemed to include all
genders, and the use of the singular shall be deemed to include the plural and vice versa, wherever
it appears appropriate from the context.

          (u) Successors and Assigns. The Plan shall be binding on all successors of the
Company and all successors and permitted assigns of a Participant, including, but not limited to, a
Participant’s estate, devisee, or heir at law.

          (v) Severability. If any provision of the Plan or any Award Agreement shall be
determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining
provisions hereof and thereof shall be severable and enforceable in accordance with their terms,
and all provisions shall remain enforceable in any other jurisdiction.

          (w) Notices. Any communication or notice required or permitted to be given under the
Plan shall be in writing, and mailed by registered or certified mail or delivered by hand, to the
Company, to its principal place of business, attention: Patrick J. McEnany, Chief Executive
Officer, and if to the holder of an Award, to the address as appearing on the records of the
Company.

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APPENDIX A

DEFINITIONS

     “Award” means any Common Stock, Option, Performance Share, Performance Unit, Restricted Stock,
Stock Appreciation Right or any other award granted pursuant to the Plan.

     “Award Agreement” means a written agreement entered into by the Company and a Participant
setting forth the terms and conditions of the grant of an Award to such Participant.

     “Board” means the board of directors of the Company.

     “Cause” means, with respect to a termination of employment or other service with the Company,
a termination of employment or other service due to a Participant’s dishonesty, fraud,
insubordination, willful misconduct, refusal to perform services (for any reason other than illness
or incapacity) or materially unsatisfactory performance of the Participant’s duties for the
Company; provided, however, that if the Participant and the Company have entered into an employment
agreement or consulting agreement which defines the term Cause, the term Cause shall be defined in
accordance with such agreement with respect to any Award granted to the Participant on or after the
effective date of the respective employment or consulting agreement. The Committee shall determine
in its sole and absolute discretion whether Cause exists for purposes of the Plan.

     “Change in Control” shall be deemed to occur upon:

          (a) any “person” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other
than the Company, any trustee or other fiduciary holding securities under any employee benefit plan
of the Company, any company owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of common stock of the Company, or [Patrick
J. McEnany and any group in which Patrick J. McEnany is a part]), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing fifty percent (50%) or more of the combined voting power of the Company’s
then outstanding securities;

          (b) during any period of two (2) consecutive years, individuals who at the beginning of such
period constitute the Board, and any new director (other than a director designated by a person who
has entered into an agreement with the Company to effect a transaction described in paragraph (a),
(c), or (d) of this Section) whose election by the Board or nomination for election by the
Company’s shareholders was approved by a vote of at least two-thirds of the directors then still in
office who either were directors at the beginning of the two-year period or whose election or
nomination for election was previously so approved, cease for any reason to constitute at least a
majority of the Board;

          (c) a merger, consolidation, reorganization, or other business combination of the Company with
any other entity, other than a merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the

A-1

 

surviving entity) more than fifty percent (50%) of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation; provided, however, that a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person acquires more than
twenty-five percent (25%) of the combined voting power of the Company’s then outstanding securities
shall not constitute a Change in Control; or

          (d) the shareholders of the Company approve a plan of complete liquidation of the Company or
the consummation of the sale or disposition by the Company of all or substantially all of the
Company’s assets other than (x) the sale or disposition of all or substantially all of the assets
of the Company to a person or persons who beneficially own, directly or indirectly, at least fifty
percent (50%) or more of the combined voting power of the outstanding voting securities of the
Company at the time of the sale or (y) pursuant to a spin-off type transaction, directly or
indirectly, of such assets to the shareholders of the Company.

     However, to the extent that Section 409A of the Code would cause an adverse tax consequence to
a Participant using the above definition, the term “Change in Control” shall have the meaning
ascribed to the phrase “Change in the Ownership or Effective Control of a Corporation or in the
Ownership of a Substantial Portion of the Assets of a Corporation” under Treasury Department
Proposed Regulation 1.409A-3(g)(5), as revised from time to time in either subsequent proposed or
final regulations, and in the event that such regulations are withdrawn or such phrase (or a
substantially similar phrase) ceases to be defined, as determined by the Committee.

     “Change in Control Price” means the price per share of Common Stock paid in any transaction
related to a Change in Control of the Company.

     “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.

     “Committee” means a committee or sub-committee of the Board consisting of two or more members
of the Board, none of whom shall be an officer or other salaried employee of the Company, and each
of whom shall qualify in all respects as a “non-employee director” as defined in Rule 16b-3 under
the Exchange Act, and as an “outside director” for purposes of Code Section 162(m). If no
Committee exists, the functions of the Committee will be exercised by the Board; provided, however,
that a Committee shall be created prior to the grant of Awards to a Covered Employee and that
grants of Awards to a Covered Employee shall be made only by such Committee. Notwithstanding the
foregoing, with respect to the grant of Awards to non-employee directors, the Committee shall be
the Board.

     “Common Stock” means the common stock, par value $0.01 per share, of the Company.

     “Company” means Catalyst Pharmaceutical Partners, Inc., a Florida corporation, the
subsidiaries of Catalyst Pharmaceutical Partners, Inc. and all other entities whose financial
statements are required to be consolidated with the financial statements of Catalyst Pharmaceutical
Partners, Inc. pursuant to United States generally accepted accounting principles, and any other
entity determined to be an affiliate of Catalyst Pharmaceutical Partners, Inc. as determined by the
Committee in its sole and absolute discretion.

A-2

 

     “Covered Employee” means “covered employee” as defined in Code Section 162(m)(3).

     “Covered Individual” means any current or former member of the Committee, any current or
former officer or director of the Company, or any individual designated pursuant to Section 4(c).

     “Detrimental Activity” means any of the following: (i) the disclosure to anyone outside the
Company, or the use in other than the Company’s business, without written authorization from the
Company, of any confidential information or proprietary information, relating to the business of
the Company, acquired by a Participant prior to a termination of the Participant’s employment or
service with the Company; (ii) activity while employed or providing services that is classified by
the Company as a basis for a termination for Cause; (iii) the Participant’s Disparagement, or
inducement of others to do so, of the Company or its past or present officers, directors, employees
or services; or (iv) any other conduct or act determined by the Committee, in its sole discretion,
to be injurious, detrimental or prejudicial to the interests of the Company. For purposes of
subparagraph (i) above, the Chief Executive Officer of the Company shall have authority to provide
the Participant with written authorization to engage in the activities contemplated thereby and no
other person shall have authority to provide the Participant with such authorization.

     “Disability” means a “permanent and total disability” within the meaning of Code Section
22(e)(3); provided, however, that if a Participant and the Company have entered into an employment
or consulting agreement which defines the term Disability for purposes of such agreement,
Disability shall be defined pursuant to the definition in such agreement with respect to any Award
granted to the Participant on or after the effective date of the respective employment or
consulting agreement. The Committee shall determine in its sole and absolute discretion whether a
Disability exists for purposes of the Plan.

     “Disparagement” means making any comments or statements to the press, the Company’s employees,
clients or any other individuals or entities with whom the Company has a business relationship,
which could adversely affect in any manner: (i) the conduct of the business of the Company
(including, without limitation, any products or business plans or prospects), or (ii) the business
reputation of the Company or any of its products, or its past or present officers, directors or
employees.

     “Dividend Equivalents” means an amount equal to the cash dividends paid by the Company upon
one share of Common Stock subject to an Award granted to a Participant under the Plan.

     “Effective Date” shall mean the date that the Plan was approved by the shareholders of the
Company in accordance with the laws of the State of Florida or such later date as provided in the
resolutions adopting the Plan.

     “Eligible Individual” means any employee, officer, director (employee or non-employee
director) or consultant of the Company and any Prospective Employee to whom Awards are granted in
connection with an offer of future employment with the Company.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

A-3

 

     “Exercise Price” means the purchase price per share of each share of Common Stock subject to
an Award.

     “Fair Market Value” means, unless otherwise required by the Code, as of any date, the last
sales price reported for the Common Stock on the day immediately prior to such date (i) as reported
by the national securities exchange in the United States on which it is then traded, or (ii) if not
traded on any such national securities exchange, as quoted on an automated quotation system
sponsored by the National Association of Securities Dealers, Inc., or if the Common Stock shall not
have been reported or quoted on such date, on the first day prior thereto on which the Common Stock
was reported or quoted; provided, however, that the Committee may modify the definition of Fair
Market Value to reflect any changes in the trading practices of any exchange or automated system
sponsored by the National Association of Securities Dealers, Inc. on which the Common Stock is
listed or traded. If the Common Stock is not readily traded on a national securities exchange or
any system sponsored by the National Association of Securities Dealers, Inc., the Fair Market Value
shall be determined in good faith by the Committee.

     “The Company” means Catalyst Pharmaceutical Partners, Inc., a Florida corporation.

     “Grant Date” means the date on which the Committee approves the grant of an Award or such
later date as is specified by the Committee and set forth in the applicable Award Agreement.

     “Incentive Stock Option” means an “incentive stock option” within the meaning of Code Section
422.

     “Non-Employee Director” means a director of the Company who is not an active employee of the
Company.

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

     “Option” means an option to purchase Common Stock granted pursuant to Sections 6 of the Plan.

     “Participant” means any Eligible Individual who holds an Award under the Plan and any of such
individual’s successors or permitted assigns.

     “Performance Goals” means the specified performance goals which have been established by the
Committee in connection with an Award.

     “Performance Period” means the period during which Performance Goals must be achieved in
connection with an Award granted under the Plan.

     “Performance Share” means a right to receive a fixed number of shares of Common Stock, or the
cash equivalent, which is contingent on the achievement of certain Performance Goals during a
Performance Period.

     “Performance Unit” means a right to receive a designated dollar value, or shares of Common
Stock of the equivalent value, which is contingent on the achievement of Performance Goals during a
Performance Period.

A-4

 

     “Person” shall mean any person, corporation, partnership, joint venture or other entity or any
group (as such term is defined for purposes of Section 13(d) of the Exchange Act), other than a
Parent or Subsidiary.

     “Plan” means this Catalyst Pharmaceutical Partners, Inc. 2006 Stock Incentive Plan.

     “Prospective Employee” means any individual who has committed to become an employee of the
Company within sixty (60) days from the date an Award is granted to such individual.

     “Restricted Stock” means Common Stock subject to certain restrictions, as determined by the
Committee, and granted pursuant to Section 8 hereunder.

     “Section 424 Employee” means an employee of the Company or any “subsidiary corporation” or
“parent corporation” as such terms are defined in and in accordance with Code Section 424. The
term “Section 424 Employee” also includes employees of a corporation issuing or assuming any
Options in a transaction to which Code Section 424(a) applies.

     “Stock Appreciation Right” means the right to receive all or some portion of the increase in
value of a fixed number of shares of Common Stock granted pursuant to Section 7 hereunder.

     “Transfer” means, as a noun, any direct or indirect, voluntary or involuntary, exchange, sale,
bequeath, pledge, mortgage, hypothecation, encumbrance, distribution, transfer, gift, assignment or
other disposition or attempted disposition of, and, as a verb, directly or indirectly, voluntarily
or involuntarily, to exchange, sell, bequeath, pledge, mortgage, hypothecate, encumber, distribute,
transfer, give, assign or in any other manner whatsoever dispose or attempt to dispose of.

A-5

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