EX-99 7 a4604679ex102.txt PHASE III MEDICAL, INC. EX 10.2 Exhibit 10.2 Form of Stock Option Agreement Exhibit 10.2 STOCK OPTION AGREEMENT, made as of the 2nd day of March, 2004 (the "Agreement"), between PHASE III MEDICAL, INC., a Delaware corporation (the "Company"), and ________________(the "Optionee"). ------------------- WHEREAS, the Company has adopted the 2003 Equity Participation Plan subject to shareholder approval (the "Plan"). WHEREAS, the Optionee has become a Director of the Company. WHEREAS, the Company has agreed to grant to the Optionee an option to purchase Common Shares of the Company pursuant to the Plan. NOW, THEREFORE, in consideration of the foregoing, the Company hereby grants to the Optionee the right and option to purchase Common Shares under and pursuant to the terms and conditions of the Plan and upon and subject to the following terms and conditions: 1. GRANT OF OPTION. The Company hereby grants to the Optionee the right and option (the "Option") to purchase up to _________________________Common Shares of the Company (the "Option Shares") during the period commencing on the date hereof and terminating at 5:00 P.M. on __________(the "Expiration Date"). 2. NATURE OF OPTION. The Option is not intended to meet the requirements of Section 422 of the Internal Revenue Code of 1986, as amended, relating to "incentive stock options". 3. EXERCISE PRICE. The exercise price of each of the Option Shares shall be ___________(the "Exercise Price"). The Company shall pay all original issue or transfer taxes on the exercise of the Option. 4. EXERCISE OF OPTIONS. The Option shall be exercised in accordance with the provisions of the Plan. In addition to the permissible methods of exercise provided for in the Plan, the Optionee may elect to have the Company reduce the number of shares otherwise issuable to him upon exercise of the Option by a number of shares having a fair market value (determined in accordance with the provisions of the Plan) equal to the Exercise Price of the Option being exercised (a "Net Exercise"). As soon as practicable after the receipt of notice of exercise and payment of the Option Price as provided for in the Plan, or upon a Net Exercise, the Company shall tender to the Optionee certificates issued in the Optionee's name evidencing the number of Option Shares covered thereby. 5. TERMINATION OF SERVICE. The Option shall remain exercisable until the Expiration Date notwithstanding any termination or cessation of service as a Director with the Company or its subsidiaries for any reason whatsoever. 6. INCORPORATION BY REFERENCE. The terms and conditions of the Plan are hereby incorporated by reference and made a part hereof. 7. NOTICES. Any notice or other communication given hereunder shall be deemed sufficient if in writing and hand delivered or sent by registered or certified mail, return receipt requested, addressed to the Company, 330 South Service Road, Suite 120, Melville, New York 11747, Attention: President and to the Optionee at the address indicated below. Notices shall be deemed to have been given on the date of hand delivery or mailing, except notices of change of address, which shall be deemed to have been given when received. 8. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and assigns. 9. ENTIRE AGREEMENT. This Agreement, together with the Plan, contains the entire understanding of the parties hereto with respect to the subject matter hereof and may be modified only by an instrument executed by the party sought to be charged. [Remainder of page intentionally left blank] IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. PHASE III MEDICAL, INC. By: ------------------------------------------------- President Signature of Optionee Name of Optionee Address of Optionee: