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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 6)*
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FLAMEL TECHNOLOGIES S.A.
(Name of Issuer)
ORDINARY SHARES, NOMINAL VALUE (EURO)0.122 PER SHARE
(Title of Class of Securities)
ISIN NO. FR0004018711 (ORDINARY SHARES)
CUSIP 338488109 (ADSs)
(CUSIP Number)(1)
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OSCAR S. SCHAFER
O.S.S. CAPITAL MANAGEMENT LP
598 MADISON AVENUE
NEW YORK, NY 10022
(212) 756-8700
(Name, Address and Telephone Number of Person
Authorized to Receive Notices of Communication)
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JUNE 3, 2005
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box. [ ]
- --------------------
(1) The Ordinary Shares have no CUSIP number. The ISIN number for the Ordinary
Shares is FR0004018711. The CUSIP number for the ADSs is 338488109.
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CUSIP No. 338488109 13D (PAGE 2 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
O.S.S. Capital Management LP
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,665,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,665,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,665,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.3%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 3 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Oscar S. Schafer & Partners I LP
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
124,070
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
124,070
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
124,070
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.6%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 4 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Oscar S. Schafer & Partners II LP
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
1,239,507
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,239,507
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,239,507
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.7%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 5 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
O.S.S. Overseas Fund Ltd
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
1,302,370
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,302,370
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,302,370
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.0%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 6 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
O.S.S. Advisors LLC
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
1,363,577
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
1,363,577
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,363,577
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.3%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 7 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Schafer Brothers LLC
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,665,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,665,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,665,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.3%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
- -------------------------- --------------------------
CUSIP No. 338488109 13D (PAGE 8 OF 13 PAGES)
ISIN No. FR0004018711
- -------------------------- --------------------------
- -------- -----------------------------------------------------------------------
1 NAME OF REPORTING PERSONS
Oscar S. Schafer
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
- -------- -----------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- -------- -----------------------------------------------------------------------
3 SEC USE ONLY
- -------- -----------------------------------------------------------------------
4 SOURCE OF FUNDS*
AF
- -------- -----------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEM 2(d) or 2(e) [ ]
- -------- -----------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware, USA
- -------- -----------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
0
------ ------------------------------------------------
BENEFICIALLY OWNED BY 8 SHARED VOTING POWER
2,665,947
------ ------------------------------------------------
EACH REPORTING 9 SOLE DISPOSITIVE POWER
0
------ ------------------------------------------------
PERSON WITH 10 SHARED DISPOSITIVE POWER
2,665,947
- -------- -----------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,665,947
- -------- -----------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- -------- -----------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
12.3%
- -------- -----------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------- -----------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
EXPLANATORY NOTE
This Amendment No. 6 to Schedule 13D ("Amendment No. 6") is being filed on
behalf of Oscar S. Schafer & Partners I LP, a Delaware limited partnership ("OSS
I LP"), Oscar S. Schafer & Partners II LP, a Delaware limited partnership ("OSS
II LP" and together with OSS I LP, the "Limited Partnerships"), O.S.S. Advisors
LLC, a Delaware limited liability company (the "General Partner"), O.S.S.
Overseas Fund Ltd., a Cayman Islands exempted company ("OSS Overseas"), O.S.S.
Capital Management LP, a Delaware limited partnership, (the "Investment
Manager"), Schafer Brothers LLC, a Delaware limited liability company ("SB
LLC"), and Mr. Oscar S. Schafer ("Mr. Schafer", and together with the Limited
Partnerships, the General Partner, OSS Overseas, the Investment Manager and SB
LLC, the "Reporting Persons"), who serves as the senior managing member of the
General Partner and SB LLC. This Amendment No. 6 relates to the ordinary shares,
nominal value (euro)0.122 per share ("Ordinary Shares"), of Flamel Technologies
S.A., a SOCIETE ANONYME organized under the laws of the Republic of France (the
"Issuer"), and amends the Schedule 13D filed with the United States Securities
and Exchange Commission (the "SEC") on April 18, 2005, as amended by Amendment
No. 1, filed with the SEC on April 29, 2005, Amendment No. 2, filed with the SEC
on May 11, 2005, Amendment No. 3, filed with the SEC on May 12, 2005, Amendment
No. 4, filed with the SEC on May 13, 2005, and Amendment No. 5, filed with the
SEC on June 2, 2005 (as so amended, the "Original Schedule 13D"). Capitalized
terms used in this Amendment No. 6 but not otherwise defined herein shall have
the meanings ascribed to them in the Original Schedule 13D. Except as amended
hereby the Original Schedule 13D remains in effect.
ITEM 4. PURPOSE OF TRANSACTION
Item 4 of the Original Schedule 13D is amended and supplemented by adding
between the twelfth and the thirteenth paragraphs thereof, the following text:
On June 3, 2005, on behalf of the Limited Partnerships and OSS
Overseas, Mr. Schafer began sending to holders of ADSs a letter (the "OSS Voting
Recommendation") setting forth the manner in which it is recommended that any
such holder should vote with respect to each resolution to be voted on at the
2005 AGM if such holder wishes to support the OSS Resolutions. The OSS Voting
Recommendation is included as Exhibit 9 to this Amendment No. 6 and is
incorporated herein by reference.
The OSS Voting Recommendation recommends that holders of ADSs wishing
to support the OSS Resolutions should vote in the following manner:
RESOLUTION RECOMMENDATION
- ---------- --------------
RESOLUTION 1: Approval of 2004 financial statements.........................FOR
RESOLUTION 2: Allocation of results for 2004................................FOR
RESOLUTION 3: Election of Gerard Soula as Director......................AGAINST
RESOLUTION 4: Election of Stephen Willard as Director...................AGAINST
RESOLUTION 5: Election of Raul Cesan as Director........................AGAINST
- 9 -
RESOLUTION 6: Election of William Dearstyne as Director.................AGAINST
RESOLUTION 7: Election of Michel Greco as Director......................AGAINST
RESOLUTION 8: Election of Jean-Noel Treilles as Director................AGAINST
RESOLUTION 9: Election of James C. Smith as Director....................AGAINST
RESOLUTION 10: Election of David Deming as Director......................AGAINST
RESOLUTION 11: Allocation of annual attendance fees..........................FOR
RESOLUTION 12: Approval of agreements referred to in Art. L. 225-38 ET SEQ.
of the Commercial Code........................................FOR
RESOLUTION 13: Approval of issuance of 120,000 warrants to certain
Directors.................................................AGAINST
RESOLUTION 14: Approval of issuance of 80,000 warrants to certain
Directors.................................................AGAINST
RESOLUTION 15: Authorization of increase in share capital reserved to
employees.................................................AGAINST
RESOLUTION 16: Regularization of certain increases in share capital
previously approved by Annual General Meeting in 2004.........FOR
RESOLUTION 17: Grant of power of attorney to comply with legal formalities...FOR
RESOLUTION 18: Removal of any Director elected by Resolutions 3 through 10
above.........................................................FOR
RESOLUTION 19: Election of Cornelis Boonstra as Director.....................FOR
RESOLUTION 20: Election of Randy H. Thurman as Director......................FOR
RESOLUTION 21: Election of Elie Vannier as Director..........................FOR
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Item 7 of the Original Schedule 13D is amended and restated in its entirety
to read as follows:
The following are filed as exhibits to this statement on Schedule 13D:
Exhibit 1 Joint Filing Agreement (previously filed with the
Original Schedule 13D on April 18, 2005).
Exhibit 2 Notice of Ownership of More than 5% of Share Capital
and Voting Rights Delivered to the Issuer pursuant to
Article L. 233-7 of the French Commercial Code (CODE DE
COMMERCE) (previously filed with Amendment No. 1 to
Schedule 13D on April 29, 2005).
Exhibit 3 Notice of Ownership of More than 10% of Share Capital
and Voting Rights Delivered to the Issuer pursuant to
Article L. 233-7 of the French Commercial Code (CODE DE
COMMERCE) (previously filed with Amendment No. 2 to
Schedule 13D on May 11, 2005).
- 10 -
Exhibit 4 Letter to Gerard Soula, PRESIDENT ET DIRECTEUR GENERAL
of Flamel Technologies S.A. Requiring Inclusion of
Draft Resolutions on Agenda for 2005 Annual General
Meeting pursuant to Article L. 225-105 of the French
Commercial Code (CODE DE COMMERCE) (previously filed
with Amendment No. 4 to Schedule 13D on May 13, 2005).
Exhibit 5 Text of Draft Resolutions to be Proposed at Annual
General Meeting of Shareholders of Flamel Technologies
S.A. (previously filed with Amendment No. 4 to Schedule
13D on May 13, 2005).
Exhibit 6 Biographical Information on Nominees for Directors
(previously filed with Amendment No. 4 to Schedule 13D
on May 13, 2005).
Exhibit 7 Reasons (L'EXPOSE DES MOTIFS) for the Proposed
Resolutions (previously filed with Amendment No. 4 to
Schedule 13D on May 13, 2005).
Exhibit 8 Letter to Gerard Soula, PRESIDENT ET DIRECTEUR GENERAL
of Flamel Technologies S.A., dated June 2, 2005
(previously filed with Amendment No. 5 to Schedule 13D
on June 2, 2005).
Exhibit 9 The OSS Voting Recommendation.
- 11 -
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: June 3, 2005
/s/ Oscar S. Schafer
------------------------------
Oscar S. Schafer, individually
O.S.S. CAPITAL MANAGEMENT LP
By: Schafer Brothers LLC
as General Partner
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
OSCAR S. SCHAFER & PARTNERS I LLP
By: O.S.S. Advisors LLC
as General Partner
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
OSCAR S. SCHAFER & PARTNERS II LLP
By: O.S.S. Advisors LLC
as General Partner
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
- 12 -
O.S.S. OVERSEAS FUND LTD
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Director
O.S.S. ADVISORS LLC
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
SCHAFER BROTHERS LLC
By: /s/ Oscar S. Schafer
------------------------------
Name: Oscar S. Schafer
Title: Senior Managing Member
- 13 -
EXHIBIT 9
O.S.S. CAPITAL MANAGEMENT LP
598 Madison Avenue, New York NY 10022
Dear Fellow Shareholders:
If you wish to support the slate of the OSS Shareholders at the Flamel
Annual General Meeting to be held on June 22, 2005, the OSS Shareholders
recommend that you vote in the following manner:
RESOLUTION RECOMMENDATION
- ---------- --------------
RESOLUTION 1: Approval of 2004 financial statements.........................FOR
RESOLUTION 2: Allocation of results for 2004................................FOR
RESOLUTION 3: Election of Gerard Soula as Director......................AGAINST
RESOLUTION 4: Election of Stephen Willard as Director...................AGAINST
RESOLUTION 5: Election of Raul Cesan as Director........................AGAINST
RESOLUTION 6: Election of William Dearstyne as Director.................AGAINST
RESOLUTION 7: Election of Michel Greco as Director......................AGAINST
RESOLUTION 8: Election of Jean-Noel Treilles as Director................AGAINST
RESOLUTION 9: Election of James C. Smith as Director....................AGAINST
RESOLUTION 10: Election of David Deming as Director......................AGAINST
RESOLUTION 11: Allocation of annual attendance fees..........................FOR
RESOLUTION 12: Approval of agreements referred to in Art. L. 225-38 ET SEQ.
of the Commercial Code........................................FOR
RESOLUTION 13: Approval of issuance of 120,000 warrants to certain
Directors.................................................AGAINST
RESOLUTION 14: Approval of issuance of 80,000 warrants to certain
Directors.................................................AGAINST
RESOLUTION 15: Authorization of increase in share capital reserved to
employees.................................................AGAINST
RESOLUTION 16: Regularization of certain increases in share capital
previously approved by Annual General Meeting in 2004.........FOR
RESOLUTION 17: Grant of power of attorney to comply with legal formalities...FOR
RESOLUTION 18: Removal of any Director elected by Resolutions 3 through 10
above.........................................................FOR
RESOLUTION 19: Election of Cornelis Boonstra as Director.....................FOR
RESOLUTION 20: Election of Randy H. Thurman as Director......................FOR
RESOLUTION 21: Election of Elie Vannier as Director..........................FOR
* * * * * *
Attached is a copy of a recent letter to Gerard Soula which discusses the
reasons why the OSS Shareholders have proposed their resolutions. I urge you to
read this letter, as well as the supporting statement (EXPOSE DES MOTIFS) and
biographies of the proposed directors included in the materials that accompanied
your proxy card. YOUR VOTE IS IMPORTANT. Please vote as soon as possible and in
any event NO LATER THAN JUNE 17, 2005 AT 4:00 P.M. EST. On behalf of the OSS
Shareholders, I thank you for your support.
Sincerely,
/s/ Oscar S. Schafer
Oscar S. Schafer