SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

MALTAIS JO-ANN B

(Last)

(First)

(Middle)

7068 KOLL CENTER PARKWAY, SUITE 401

(Street)

PLEASANTON

94566

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
LIPID SCIENCES INC/ [ LIPD ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	VP, Scientific Affairs

3. Date of Earliest Transaction (Month/Day/Year)
12/03/2007

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Stock Option (right to buy)	$3.21	12/03/2007		D⁽¹⁾			155,903	⁽²⁾	08/24/2010	Common Stock	155,903	⁽¹⁾	0	D
Stock Option (right to buy)	$0.89	12/03/2007		A⁽¹⁾			155,903	⁽²⁾	08/24/2010	Common Stock	155,903	⁽¹⁾	155,903	D
Stock Option (right to buy)	$3.7	12/03/2007		D⁽¹⁾			23,238	⁽³⁾	03/09/2015	Common Stock	23,238	⁽¹⁾	0	D
Stock Option (right to buy)	$0.89	12/03/2007		A⁽¹⁾			23,238	⁽³⁾	03/09/2015	Common Stock	23,238	⁽¹⁾	23,238	D
Stock Option (right to buy)	$2.64	12/03/2007		D⁽¹⁾			5,859	⁽⁴⁾	02/27/2016	Common Stock	5,859	⁽¹⁾	0	D
Stock Option (right to buy)	$0.89	12/03/2007		A⁽¹⁾			5,859	⁽⁴⁾	02/27/2016	Common Stock	5,859	⁽¹⁾	5,859	D

Explanation of Responses:

1. The six reported transactions involved an amendment of three outstanding options, resulting in the deemed cancellation of the "old" option and the grant of a replacement option. The options were originally granted on August 25, 2000, March 10, 2005 and February 28, 2006.

2. The options vested as to 1/8th of the total grant on the first date following six months of continuous employment with the Company and the remaining option shares vested at the rate of 1/48th of the total option shares per month thereafter for the next 42 months.

3. The option fully vested on February 28, 2006 in connection with approval by the Federal Drug Administration of the Company's Investigational Device Exemption relating to HDL Selective Delipidation.

4. The option with respect to 1/3rd of the shares vests in equal installments on the 1st, 2nd and 3rd annual anniversaries of the grant date.

	/s/Jo-Ann B. Maltais	12/05/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.