EXHIBIT 99
BOSTON LIFE SCIENCES, INC. AMENDED AND
RESTATED OMNIBUS STOCK OPTION PLAN
1. Purpose; Types of Construction.
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The purpose of the Boston Life Sciences, Inc. Amended and Restated
Omnibus Stock Option Plan is to afford an incentive to selected employees,
independent contractors and Scientific Advisors of Boston Life Sciences, Inc.
(the "Company"), or any Subsidiary which now exists or hereafter is organized or
acquired, to acquire a proprietary interest in the Company, to continue as
employees, independent contractors or Scientific Advisors, as the case may be,
to increase their efforts on behalf of the Company and to promote the success of
the Company's business. The Plan provides for grants of stock options (including
"incentive stock options" and "nonqualified stock options"). The Plan is
intended to satisfy the requirements of Rule 16b-3 promulgated under Section 16
of the Exchange Act and shall be interpreted in a manner consistent with the
requirements thereof.
2. Definitions.
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For purposes of the Plan, the following terms shall be defined as set
forth below:
(a) "Beneficiary" means the person, persons, trust or trusts which
have been designated by an Optionee in his or her most recent written
beneficiary designation filed with the Company to receive the benefits specified
under the Plan upon his or her death, or, if there is no designated Beneficiary
or surviving designated Beneficiary, then the person, persons, trust or trusts
entitled by will or the laws of descent and distribution to receive such
benefits.
(b) "Board" means the Board of Directors of the Company.
(c) "Code" means the Internal Revenue Code of 1986, as amended from
time to time.
(d) "Committee" means the committee established by the Board to
administer the Plan, the composition of which shall at all times satisfy the
provisions of Rule 16b-3.
(e) "Company" Means Boston Life Sciences, Inc., a corporation
organized under the laws of the State of Delaware, or any successor corporation.
(f) "Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, and as now or hereafter construed, interpreted and
applied by regulations, rulings and cases.
(g) "Fair Market Value" per share of Stock as of a particular date
shall mean (i) the closing price per share of Stock on the national securities
exchange on which the Stock is principally traded, for the last preceding date
on which there was a sale of such Stock on such exchange, or (ii) if the shares
of Stock are not then traded in any such exchange, the average of the closing
bid and asked prices for the shares of Stock quoted on the National Market
System of the National Association of Securities Dealers Automated Quotation
System ("NASDAQ") for the last preceding date on which a sale of Stock was
reported, or (iii) if the shares of Stock are not then traded on a national
securities exchange or quoted on NASDAQ, such value as the Committee, in its
sole discretion, shall determine.
(h) "Former BLSI Grantees" means certain individuals who were formerly
directors, officers, employees, scientific advisors and independent contractors
of Boston Life Sciences, Inc. who at one time held options to acquire stock of
Boston Life Sciences, Inc. and who are selected by the Committee, in its sole
discretion, to receive Options pursuant to Section 7 of the Plan. The former
BLSI Grantees shall be the persons set forth on Schedule 7.6 of the Amended and
Restated Agreement of Merger by and between the Company and Boston Life
Sciences, Inc. dated December 29, 1994 (as amended from time to time, the
"Amended and Restated Merger Agreement").
(i) "ISO" means any Option intended to be and designated as an
incentive stock option within the meaning of Section 422 of the Code.
(j) "NSO" means any Option that is designated as a nonqualified stock
option.
(k) "Option" means a right, granted to a optionee under Section 6(b),
to purchase shares of Stock. An Option may be either an ISO or an NSO, provided
that ISO's may not be granted to independent contractors or Scientific Advisors.
(l) "Option Agreement" means any written agreement, contract, or other
instrument or document evidencing the grant of an option.
(m) "Optionee" means a person who, as an employee, Scientific Advisor
or independent contractor of the Company or a Subsidiary has been granted an
option under the Plan.
(n) "Plan" means this Boston Life Sciences, Inc. Amended and Restated
Omnibus Stock Option Plan, as amended from time to time.
(o) "Rule 16b-3" means Rule 16b-3, as from time to time in effect
promulgated by the Securities and Exchange Commission under Section 16 of the
Exchange Act, including any successor to such Rule.
(p) "Scientific Advisor" means any member of the Scientific Advisory
Board who neither (i) is an employee of the Company, nor (ii) receives
compensation from the Company pursuant to a research, sponsored research or
similar agreement with the Company (other than a Scientific Advisory and
Consulting Agreement entered into generally by the Company and
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members of the Scientific Advisory Board which may provide for compensation for
each meeting of the Scientific Advisory Board which the Scientific Advisor
attends and for the reimbursement of certain expenses), nor (iii) is the
discoverer of, or a principal investigator or researcher with respect to, any
technology subject to the Company's research and development programs as
determined by the Committee in its sole discretion.
(q) "Scientific Advisory Board" means the Board of Scientific Advisors
of the Company.
(r) "Stock" means shares of the common stock, par value $.01 per
share, of the Company.
(s) "Subsidiary", means any corporation in an unbroken chain of
corporations beginning with the Company if, at the time of granting of an
Option, each of the corporations (other than the last corporation in the
unbroken chain) owns stock possessing 50 % or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.
(t) "Ten Percent Stockholder" shall mean a prospective optionee of
the Company who, at the time an ISO is to be granted to such optionee, owns
(within the meaning of Section 422(b)(6) of the Code) stock possessing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company within the meaning of Sections 422(e) and 422(f), respectively, of
the Code.
3 Administration.
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The Plan shall be administered by the Committee. The Committee shall
have the authority in its discretion, subject to and not inconsistent with the
express provisions of the Plan, to administer the Plan and to exercise all the
powers and authorities either specifically granted to it under the Plan or
necessary or advisable in the administration of the Plan, including, without
limitation, the authority to grant Options; to determine the persons to whom and
the time or times at which options shall be granted; to determine the type and
number of options to be granted, the number of shares of Stock to which an
Option may relate and the terms and conditions relating to any Option; and to
determine whether, to what extent, and under what circumstances an Option may be
settled, cancelled, forfeited, exchanged, or surrendered; to make adjustments in
the terms and conditions of Options in recognition of unusual or nonrecurring
events affecting the Company or any Subsidiary or the financial statements of
the Company or any Subsidiary, or in response to changes; in applicable laws,
regulations, or accounting principles; to construe and interpret the Plan and
any Option Agreement; to prescribe, amend and rescind rules and regulations
relating to the Plan; to determine the terms and provisions of the Option
Agreements (which need riot he identical for each Optionee); and to make all
other determinations deemed necessary or advisable for the administration of the
Plan.
The Committee may appoint a chairperson and a secretary and may make
such rules and regulations for the conduct of its business as it shall deem
advisable, and shall keep minutes of
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its meetings. All determinations of the Committee shall be made by a majority of
its members either present in person or participating by conference telephone at
a meeting or by written consent. The Committee may delegate to one or more of
its members or to one or more agents such administrative duties as it may deem
advisable, and the Committee or any person to whom it has delegated duties as
aforesaid may employ one or more persons to render advice with respect to any
responsibility the Committee or such person may have under the Plan. All
decisions, determinations and interpretations of the Committee shall be final
and binding on all persons, including the Company, and any Subsidiary or
optionee (or any person claiming any rights under the Plan from or through any
Optionee) and any stockholder.
No member of the Board or Committee shall be liable for any action
taken or determination made in good faith with respect to the Plan or any option
granted made hereunder.
4 Eligibility.
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Except as provided in Section 7, options may be granted to selected
employees, Scientific Advisors and independent contractors of the Company and
its present or future Subsidiaries, in the discretion of the Committee.
5 Stock Subject to the Plan.
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The maximum number of shares of Stock reserved for the grant of
options under the Plan shall be 1,200,000.
In the event that the Committee shall determine that any dividend or
other distribution (whether in the form of cash, Stock, or other property),
recapitalization, Stock split, reverse split, reorganization, merger,
consolidation, spin-off, combination, repurchase, or share exchange, or other
similar corporate transaction or event, affects the Stock such that an
adjustment is appropriate in order to prevent dilution or enlargement of the
rights of Optionees under the Plan, then the Committee shall make such equitable
changes or adjustments as it deems necessary or appropriate to any or all of (i)
the number and kind of shares of Stock which may thereafter be issued in
connection with options, (ii) the number and kind of shares of Stock issued or
issuable in respect of outstanding options, and (iii) the exercise price
relating to any option; provided that, with respect to ISOs, such adjustment
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shall be made in accordance with Section 424(h) of the Code.
6 Specific Terms of Options.
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(a) General. The Committee may impose on any option or the
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exercise thereof, at the date of grant or thereafter, such additional terms and
conditions, not inconsistent with the provisions of the Plan, as the Committee
shall determine.
(b) Options. The Committee is authorized to grant Options to
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Optionees on the following terms and conditions:
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(i) Type of Option. The Option Agreement evidencing the
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grant of an option under the Plan shall designate the Option as an ISO
or an NSO.
(ii) Exercise Price. The exercise price per share of Stock
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purchasable under an option shall be determined by the Committee;
provided that, in the case of an ISO, such exercise price shall be not
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less than the Fair Market Value of a share on the date of grant of
such Option, and, subject to Section 7 hereof, in the case of an NSO,
such exercise price shall be not less than 50% of the Fair Market
value of a share on the date of grant of such option, but in no event
shall the exercise price for the purchase of shares be less than par
value. The exercise price for Stock subject to an Option may be paid
in cash or, at the discretion of the Committee, by an exchange of
Stock previously owned by the optionee, or a combination of both, in
an amount having a combined value equal to such exercise price. An
Optionee may also elect to pay all or a portion of the aggregate
exercise price by having shares of Stock with a Fair Market Value on
the date of exercise equal to the aggregate exercise price withheld by
the Company or sold by a broker-dealer under circumstances meeting the
requirements of 12 C.F.R. (S)220 or any successor thereof.
(iii) Term and Exercisability of Options. Except as set
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forth in Section 6(c)(ii) hereof, the term of each option shall be ten
(10) years from the date of grant of such option. The date on which
the Committee adopts a resolution expressly granting an option, or
such other date as is set forth in such resolution, shall be
considered the day on which such option is granted. Options shall be
exercisable over the exercise period (which shall not exceed ten years
from the date of grant), at such times and upon such conditions as the
Committee may determine, as reflected in the Option Agreement;
provided that, the Committee shall have the authority to accelerate
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the exercisability of any outstanding Option at such time and under
such circumstances as it, in its sole discretion, deems appropriate.
An option may be exercised to the extent of any or all full shares of
Stock as to which the option has become exercisable, by giving written
notice of such exercise to the Committee or its designated agent;
provided that, no Option may be exercised for fewer than 10 shares of
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Stock unless the number of shares with respect to which the Option is
exercised constitutes the total number of shares as to which the
Option is then exercisable.
(iv) Termination of Employment or Other Relationship. If
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the Optionee's employment or other relationship with the Company is
terminated for reasons other than death or disability, the Optionee
will be entitled to exercise the Option (to the extent exercisable at
the time of the termination of employment or other relationship) for a
period of ninety (90) days following such termination, and shall
thereafter terminate, provided, that, if the Optionee dies within such
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ninety-day period following termination of employment or other
relationship, the option (to the extent exercisable at the time of the
Optionee's termination of employment or other relationship) shall be
exercisable by the Optionee's Beneficiary for a period of one (1) year
following the optionee's death (but in no event after the expiration
date of the option), and shall thereafter terminate.
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(v) Death or Disability. If the optionee's employment or
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other relationship with the Company is terminated because of death or
disability, the Optionee (or, where applicable, the Beneficiary) will
be entitled to exercise the option with respect to the total number of
shares of Stock subject to such option and without regard to the
extent to which such option was exercisable at the time of the
termination of employment or other relationship due to death or
disability for a period of one (1) year following the Optionee's death
or termination of employment or other relationship due to disability
(but in no event after the expiration date of the Option), and the
Option shall thereafter terminate.
(vi) Other Provisions. Options may be subject to such other
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conditions including, but not limited to, restrictions on
transferability of the shares acquired upon exercise of such options,
as the Committee may prescribe in its discretion.
(c) Incentive Stock Options. Options granted as ISOs shall be subject
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to the following special terms and conditions, in addition to the general terms
and conditions specified in this Section 6.
(i) Value of Shares. The aggregate Fair Market Value
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(determined as of the date the ISO is granted) of the shares of Stock
with respect to which ISOs granted under this Plan and all other plans
of the Company become exercisable for the first time by each Optionee
during any calendar year shall not exceed $100,000.
(ii) Ten Percent Stockholder. In the case of an ISO granted
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to a Ten Percent Stockholder, (x) the exercise price shall not be less
than one hundred ten percent (110%) of the Fair Market Value of the
shares of Stock on the date of grant of such ISO, and (y) the exercise
period shall not exceed five (5) years from the date of grant of such
ISO.
7 Special Grant to Former BLSI Grantees.
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The Committee, in its sole discretion, may make a grant of Options to
any Former BLSI Grantee. Any such grant may not be made later than 60 days
after the effective date of the merger contemplated by the Amended and Restated
Merger Agreement and the options so granted shall be not be subject to the
provisions of Section 6(b)(ii) of this Plan, but shall be subject to the
provisions determined by the Committee and set forth in the applicable Option
Agreement.
8 General Provisions.
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(a) Compliance with Local and Exchange Requirements. The Plan, the
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granting and exercising of options thereunder, and the other obligations of the
Company under the Plan and any Option Agreement or other agreement shall be
subject to all applicable federal and state
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laws, rules and regulations, and to such approvals by any regulatory or
governmental agency as may be required. The Company, in its discretion, may
postpone the issuance or delivery of Stock under any option until completion of
such stock exchange listing or registration or qualification of such Stock or
other required action under any state, federal or foreign law, rule or
regulation as the Company may consider appropriate, and may require any Optionee
to make such representations and furnish such information as it may consider
appropriate in connection with the issuance or delivery of Stock in compliance
with applicable laws, rules and regulations.
(b) Nontransferability. Options shall not be transferable by an
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Optionee except by will or the laws of descent and distribution or, if then
permitted under Rule 16b-3, pursuant to a qualified domestic relations order as
defined under the Code or Title I of the Employee Retirement Income Security Act
of 1974, as amended, or the rules thereunder, and shall be exercisable during
the lifetime of an Optionee only by such Optionee or his guardian or legal
representative.
(c) No Right to Continued Employment, etc. Nothing in the Plan or in
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any option granted or any Option Agreement or other agreement entered into
pursuant hereto shall confer upon any Optionee the right to continue in the
employ of or to continue as an independent contractor or Scientific Advisor of
the Company or any Subsidiary or to be entitled to any remuneration or benefits
not set forth in the Plan or such Option Agreement or other agreement or to
interfere with or limit in any way the right of the Company or any such
Subsidiary to terminate such Optionee's employment, independent contractor or
Scientific Advisor relationship.
(d) Taxes. The Company or any Subsidiary is authorized to withhold
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from any distribution of Stock, or any other payment to a Optionee, amounts of
withholding and other taxes due in connection with any transaction involving an
option, and to take such other action as the Committee may deem advisable to
enable the Company and Optionees to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to any Option. This
authority shall include authority to withhold or receive Stock or other property
and to make cash payments in respect thereof in satisfaction of a optionee's tax
obligations.
(e) Amendment and Termination of the Plan. The Board may at any time
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and from time to time alter, amend, suspend, or terminate the Plan in whole or
in part; provided that, no amendment which requires stockholder approval in
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order for the Plan to continue to comply with Rule 16b-3, shall be effective
unless the same shall be approved by the requisite vote of the stockholders of
the Company entitled to vote thereon. Notwithstanding the foregoing, no
amendment shall affect adversely any of the rights of any Optionee, without such
optionee's consent, under any Option theretofore granted under the Plan.
(f) Change in Control. Notwithstanding any other provision of the
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Plan to the contrary, if, while any Options remain outstanding under the Plan, a
"Change in Control" of the Company (as defined in this Section 8(f)) shall
occur, all options granted under the Plan that are outstanding at the time of
such Change in Control shall become immediately exercisable in full, without
regard to the years that have elapsed from the date of grant.
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For purposes of this Section 8(f), a Change in Control of the Company
shall occur upon the happening of the earliest to occur of the following:
(i) any "person," as such term is used in Sections 13(d) and
14(d) of the Exchange Act (other than (1) the Company, (2) any
trustee or other fiduciary holding securities under an employee
benefit plan of Company, or (3) any corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the
same proportions as. their ownership of Stock (each an "excluded
person")), is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities
of the Company (not including in the securities beneficially owned by
such person any securities acquired directly from the Company or its
affiliates) representing 30% or more of the combined voting power of
the Company's then outstanding voting securities;
(ii) during any period of not more than two 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 clause (i), (iii), or (iv) of this paragraph
(f)) whose election by the Board or nomination for election by the
Company's stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for
election was previously so approved (other than approval given in
connection with an actual or threatened proxy or election contest),
cease for any reason to constitute at least a majority of the Board;
(iii) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than
(A) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving or parent entity)
50% or more of the combined voting power of the voting securities of
the Company or such surviving or parent entity outstanding immediately
after such merger or consolidation, (B) a merger or consolidation
effected to implement a recapitalization of the Company (or similar
transaction) in which no "Person" (as hereinabove defined) acquired
30% or more of the combined voting power of the Company's then
outstanding securities or (C) the transaction contemplated by the
Amended and Restated Merger Agreement; or
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(iv) the stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the
Company's assets (or any transaction having a similar effect).
(g) No Rights to Options; No Stockholder Rights. No Optionee shall
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have any claim to be granted any Option under the Plan, and there is no
obligation for uniformity of treatment of Optionees. Except as provided
specifically in the applicable Option Agreement, an Optionee or Beneficiary
shall have no rights as a stockholder with respect to any shares covered by the
Option until the date of exercise of the Option.
(h) No Fractional Shares. No fractional shares of Stock shall be
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issued or delivered pursuant to the Plan or any Option. The Committee shall
determine whether cash, other Options, or other property shall be issued or paid
in lieu of such fractional shares or whether such fractional shares or any
rights thereto shall be forfeited or otherwise eliminated.
(i) Governing Law. The Plan and all determinations made and actions
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taken pursuant hereto shall be governed by the laws of the State of Delaware
without giving effect to the conflict of laws principles thereof.
(j) Term of the Plan. The Plan shall terminate on April 23, 2005,
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except with respect to Options outstanding on such date and no Option may be
granted thereafter.
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