EXHIBIT
10.31


 


EMPLOYMENT
AGREEMENT


 


This EMPLOYMENT AGREEMENT (the
“Agreement”) is entered into this 5th day of January, 2004 (the “Effective Date”),
between W. Bradford Middlekauff (the “Executive”) and MEDAREX,
INC. (the “Company”) (collectively, the Executive and the Company
shall be referred to as the “Parties”). 
In consideration of the mutual promises and agreements contained herein,
the Parties agree as follows:


 


1.             PURPOSE.  The Company desires to avail itself of the
services of the Executive as its Senior Vice President, General Counsel and
Secretary, and the Executive desires to provide such services in accordance
with the terms of this Agreement.  The
Parties agree that the duties and obligations expected of the Executive and of
the Company are as set forth in this Agreement.


 


2.             EFFECTIVE
DATE AND TERM.  This Agreement shall
be effective, and its term (the “Term”) shall commence as of the Effective
Date.  The Term shall continue through
and until January 4, 2007 (the “Initial Term”), unless terminated sooner as
provided by this Agreement or extended by the Parties.  The Term shall be automatically renewed for
successive periods of one year each (each, a “Renewal Term”), unless either
Party gives to the other written notice of intent not to renew at least ninety
(90) days prior to the expiration of the Initial Term or any Renewal Term.  This Agreement supersedes in its entirety
that Employment Agreement between the Company and the Executive dated April 5,
2000.


 


3.             COMPENSATION.


 


A.            Salary.  During the Term the Company shall pay or
cause to be paid to the Executive, in bi-weekly installments, a salary of
$340,000 per annum or such greater amount as may from time to time be
determined by the Board of Directors (the “Board”) of the Company (the “Base Salary”).  The Base Salary shall be reviewed annually by
the Board and, if appropriate, may be increased.  The Board may also pay the Executive such
bonuses as it deems appropriate. 
Notwithstanding the foregoing, no increase in Base Salary or bonus shall
be paid to the Executive unless and until approved by a committee of the Board,
a majority of which is comprised of Directors who are not employees of the
Company.


 


B.            Expenses.  The Company shall reimburse the Executive,
within thirty days of voucher, the amount of all travel, hotel, entertainment
and other expenses (properly vouched) reasonably incurred by the Executive in
furtherance of his duties under this Agreement.


 


C.            Benefits.


 


(1)           Vacation.  The Executive shall be entitled to twenty
(20) business days of vacation each year. 
The Executive shall be entitled to carry any unused vacation days over
to the next calendar year.  However, in
no event will Executive’s accrued but unused vacation exceed 40 days.


 


(2)           Holidays.  The Executive shall be entitled to all
holidays generally provided to other employees of the Company.


 


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(3)           Life
Insurance.  During the Term, the
Company shall, upon proof of insurability, purchase, or cause to be purchased,
a policy or policies insuring the life of the Executive payable to the
Executive’s designated beneficiary(s) at least equal to that life insurance
generally provided to other executive employees of the Company.


 


(4)           Medical
Insurance.  During the Term, the
Company shall acquire and pay for, or reimburse the Executive for,
hospitalization, dental, major medical, or other health insurance for the
benefit of the Executive and his dependents at least equal to that generally
provided other executive employees under the Company’s group health insurance
plan(s).


 


(5)           Sick
Leave/Disability.  During any period
in which the Executive is absent from work as a result of personal injury,
sickness or other disability, the Board may, by majority vote, appoint an
Acting Senior Vice President, General Counsel and Secretary to serve for the
duration of the Executive’s absence.  The
Company shall, while such period continues or for 180 days, whichever is a
shorter period, pay the Executive his full Base Salary.  The Executive will also be entitled to
additional disability benefits at least equal to that which is generally
provided to other executive employees after the Effective Date.


 


(6)           Directors’
and Officers’ Liability Insurance. 
During the Term, the Company shall acquire and pay for, or reimburse the
Executive for, directors’ and officers’ liability insurance for the benefit of
the Executive at least equal to that generally provided to other executive
officers of the Company.


 


(7)           Other
Benefits.  The Executive shall be
entitled to participate in any equity incentive, pension, retirement or other
qualified plans adopted by the Company for the benefit of its employees,
including, but not limited to, the Company’s stock option plans and the Company’s
tax-qualified 401(k) cash or deferred compensation plan.


 


4.             DUTIES
OF THE EXECUTIVE.


 


A.            Duties.  During the Term, the Executive shall be
Senior Vice President, General Counsel and Secretary of the Company, shall
perform such duties as the Company may reasonably require and shall use his best
efforts to carry into effect the directions of the Chief Executive Officer of
the Company.


 


B.            Representation.  During the Term, the Executive shall well and
faithfully serve the Company and use his best efforts to promote the interests
of the Company.  The Executive shall at
all times give the Company the full benefit of his knowledge, expertise,
technical skill and ingenuity in the performance of his duties and exercise of
his powers and authority as Senior Vice President, General Counsel and Secretary.  In particular (but without limiting the
generality thereof), the Executive shall give to the Chief Executive Officer
such information regarding the affairs of the Company as he shall require and
at all times conform to the reasonable instructions or directions of the Chief
Executive Officer.


 


C.            Time
Devoted by Executive.  The Executive
agrees to devote substantially all his time and attention during business hours
and such additional time and attention as may reasonably be required to perform
his duties hereunder.  It shall not be a 


 


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violation of this
Agreement for the Executive to (a) serve on corporate, civic or charitable
boards or committees, (b) deliver lectures, fulfill speaking engagements or teach
at educational institutions, (c) manage personal investments, or (d) engage in
activities permitted by the policies of the Company or as specifically
permitted by the Company, so long as such activities do not significantly
interfere with the full time performance of the Executive’s responsibilities in
accordance with this Agreement.  It is
expressly understood and agreed that to the extent any such activities have
been conducted by the Executive prior to the Term, the continued conduct of such
activities (or the conduct of activities similar in nature and scope) during
the Term shall not thereafter be deemed to interfere with the performance of
the Executive’s responsibilities to the Company.


 


5.             RESTRICTIONS
ON THE EXECUTIVE.


 


A.            Non-Disclosure
of Confidential Information.  All
information learned or developed by the Executive during the course of his
employment by the Company will be deemed “Confidential Information” under the
terms of this Agreement.  Examples of
Confidential Information include, but are not limited to, business, scientific
and technical information owned or controlled by the Company, including the
Company’s business plans and strategies; business operations and systems;
information concerning employees, customers, partners and/or licensees; patent
applications; trade secrets; inventions; ideas; procedures; formulations;
processes; formulae; data and all other information of any nature whatsoever
which relate to the Company’s business, science, technology and/or
products.  In addition, Confidential
Information shall include, but not be limited to, all information which the
Company may receive from third parties. 
The Executive will not disclose to any person at any time or use in any
way, except as directed by the Company, either during or after the employment
of the Executive by the Company, any Confidential Information.  The foregoing restrictions shall not apply to
information which is or becomes part of the public domain though no act or
failure to act by the Executive.


 


In addition to the foregoing, in the process of the
Executive’s employment with the Company, or thereafter, under no condition is
the Executive to use or disclose to the Company, or incorporate or use in any
of his work for the Company, any confidential information imparted to the
Executive or with which he may have come into contact while in the employ of
his former employer(s).


 


B.            Inventions.  The term “Invention” means any invention,
discovery, improvement, apparatus, implement, process, compound, composition or
formula, whether or not patentable, conceived or reduced to practice, in whole
or in part, by the Executive (alone, or jointly with others) during any term of
his employment by the Company and twelve (12) months thereafter which directly
or indirectly relates to the business, science, technology or products of the
Company and /or any Confidential Information. 
The Executive will keep, on behalf of the Company, complete, accurate,
and authentic accounts, notes, data, and records (“Records”) of each and every
Invention, which Records will, at all times, be the property of the
Company.  The Executive will comply with
the directions of the Company with respect to the manner and form of keeping or
surrendering Records and will surrender to the Company all Records at the end
of the Executive’s term of employment by the Company.


 


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Each Invention will be the sole and exclusive property
of the Company. The Executive will, at the request of the Company, make
application in due form for United States letters patent and foreign letters
patent (each, a “Patent”) on any Invention and execute any necessary documents
in connection with the Patents.  The
Executive will assign and transfer to the Company all right, title, and interest
of the Executive in any Patents or Patent applications.  The Executive agrees to cooperate with any
actions necessary to continue, renew or retain the Patents.  The Company will bear the entire expense of
applying for and obtaining the Patents.


 


For one year after the termination of the term of the
Executive’s employment by the Company, the Executive will not file any
applications for Patents on any Invention other than those filed at the request
of and on behalf of the Company.


 


The Executive, as a condition of his employment,
hereby represents that, to the best of his knowledge, there is not as of the
date of this Agreement any agreement or obligation outstanding with or to any
of his former employers or other party, which would restrict, limit or in any
way prohibit all or any portion of his work or employment, nor is there in his
possession any confidential information used by any of his former employers or
any other party (except as may have been revealed in generally available
publications or otherwise made publicly available).


 


C.            Non-Competition;
Non-Solicitation.


 


(1)           Non-Competition.  During the Term, without the consent of the
Conflicts Committee of the Board of Directors, the Executive may not directly
or indirectly engage in, or have any interest in, any business (whether as
employee, officer, director, agent, a five percent (5%) or greater security
holder, creditor, consultant, or otherwise) that competes directly with the
business of the Company (as such business may exist during the Term).


 


(2)           Non-Solicitation
of Orders.  During the Term, and
thereafter as specifically provided in Subsection 6.B.(2) or 6.D.(2), the
Executive shall not, whether for himself or on behalf of any other person or
company, directly or indirectly, solicit orders for the creation of antibodies
in transgenic animals from any person or company, who at any time within the
year prior to the end of the Term was a licensee, collaborator or customer of
the Company.


 


(3)           Non-Solicitation of Employees.  During the Term, and thereafter as
specifically provided in Subsection 6.B.(2) or 6.D.(2), the Executive shall
not, directly or indirectly induce or solicit any other employee of the Company
to terminate his or her employment with the Company for the purpose of joining
another company in which the Executive has an interest (whether as an employee,
officer, director, agent, a five percent (5%) or greater security holder,
creditor, consultant, or otherwise).


 


D.            Breach.  The Executive acknowledges that there may be
circumstances in which his breach of any covenant set forth in this Section 5.
could cause harm to the Company which may not be compensable by monetary
damages alone, and which could potentially entitle the Company to injunctive
relief.  However, by acknowledging this
possibility, the Employee is not agreeing to waive his right to require the
Company to meet its evidentiary burdens as required by law in any cause of
action brought by the Company seeking such injunctive relief.


 


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6.             TERMINATION.


 


A.            Non-Renewal.  The provisions of this Subsection 6.A apply
if the Term is not renewed pursuant to the provisions of Section 2.


 


(1)           If
the Company has given notice of non-renewal, the Company shall pay the
Executive his then existing Base Salary and continue Executive’s benefits
enumerated in Subsections 3.C.(3), 3.C.(4) and 3.C.(6) hereof (to the extent
permitted by the Company’s insurance carriers) for one year commencing with the
day following the final day of the Term; provided, however,
that this obligation shall be mitigated by earned income and benefits actually
received by or for the account of the Executive from alternative employment
during such one year period.  In
addition, notwithstanding any provisions of the stock option plan or stock
option agreement pursuant to which any stock options were granted, the
Executive shall be entitled to exercise any of Executive’s stock options vested
as of the final day of the Term until eighteen months from the final day of the
Term or the expiration of the stated period of the option, whichever period is
the shorter.


 


(2)           At
the conclusion of the Term, all other Company obligations to the Executive as
to salary and benefits shall cease.


 


(3)           If
the Executive has given notice of non-renewal, all Company obligations to the
Executive as to salary and benefits shall cease at the conclusion of the Term.


 


B.            Termination
for Cause by the Company.


 


(1)           This
Agreement and the Term may be terminated “for cause” by the Company pursuant to
the provisions of this Subsection 6.B. 
If the Board determines that “cause” exists for termination of the
Executive’s employment, written notice thereof must be given to the Executive
describing the state of affairs or facts deemed by the Board to constitute such
cause.  The Executive shall have
forty-five (45) days after receipt of such notice to cure the reason
constituting cause and if he does so, the Term shall not be terminated for the
cause specified in the notice.  During
such forty-five (45) day period, the Term shall continue and the Executive
shall continue to receive his full Base Salary, expenses and benefits pursuant
to this Agreement.  If such cause is not
cured to the Board’s reasonable satisfaction within such forty-five (45) day
period, the Executive may then be immediately terminated by a majority vote of
the Board excluding the Executive if the Executive is then a member of the
Board.  For purposes of this Agreement,
the words “for cause” or “cause” shall be limited to actions on the part of the
Executive which constitute gross negligence or willful misconduct in the
performance or non-performance of the Executive’s duties or a material breach
of this Agreement by the Executive so long as such material breach is not
caused by the Company.  The duties,
powers and authority of the Executive may also, on a majority vote of the Board
excluding the Executive if the Executive is then a member of the Board, be
suspended for a reasonable period of time, but with a continuation of the
Executive’s full Base Salary, expenses and benefits pursuant to this Agreement,
while a determination is made as to whether cause for termination exists.


 


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(2)           In
the event the Term is terminated by the Company for cause, the provisions of

Subsections 5.C.(2) and 5.C.(3) shall continue to apply for one year after the
conclusion of the Term.


 


(3)           In
the event the Term is terminated by the Company for cause, the Executive’s
entire right to salary and benefits hereunder (with the exception of salary and
benefits accrued prior to termination) shall cease upon such termination.


 


C.            Termination
Without Cause by the Company or for Good Reason by the Executive.


 


(1)           The
Company shall have the right to terminate the Term without cause on ninety (90)
days written notice to the Executive.


 


(2)           The
Executive shall have the right to terminate the Term for good reason on thirty
(30) days written notice to the Company. 
For purposes of this Agreement, the words “for good reason” or “good
reason” shall be limited to the following actions by the Company without the
Executive’s express written consent:  (a)
the assignment to the Executive of any duties or responsibilities that results
in a material diminution in the Executive’s position or function; provided, however, that a change in the Executive’s title or
reporting relationships shall not provide the basis for a termination with good
reason; (b) a relocation of the Executive’s business office to a location more
than fifty (50) miles from the location at which the Executive performs duties
as of the Effective Date, except for required travel by the Executive on the
Company’s business to an extent substantially consistent with the Executive’s
business travel obligations as of the Effective Date; or (c) a material breach
by the Company of any provision of this Agreement or any other material
agreement between the Executive and the Company concerning the terms and
conditions of the Executive’s employment. 
Such a termination by the Executive for good reason shall not be
considered a resignation pursuant to Subsection 6.D.(1).


 


(3)           In
the event the Term is terminated pursuant to Subsection 6.C.(1) or 6.C.(2), the
Company shall pay the Executive his then existing Base Salary and continue
Executive’s benefits enumerated in Subsections 3.C.(3), 3.C.(4)

and 3.C.(6) hereof (to the extent permitted by the Company’s insurance
carriers) for two years commencing with the day following the effective date of
the termination of the Term.  In
addition, notwithstanding any provisions of the stock option plan or stock
option agreement pursuant to which any stock options were granted, the
Executive shall be entitled to exercise any of Executive’s stock options vested
as of the final day of the Term until eighteen months from the final day of the
Term or the expiration of the stated period of the option, whichever period is
the shorter.


 


D.            Resignation
by the Executive.


 


(1)           The
Executive shall have the right to terminate the Term, by way of resignation,
upon ninety (90) days’ written notice to the Company.  A termination by the Executive for good
reason pursuant to Subsection 6.C.(2) shall not be considered a resignation
pursuant to this Subsection 6.D.(1).


 


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(2)           In
the event the Term is terminated pursuant to Subsection 6.D.(1), the provisions
of Subsections 5.C.(2) and 5.C.(3) shall continue to apply for one year
after the conclusion of the Term.


 


(3)           In
the event the Term is terminated pursuant to Subsection 6.D.(1), the Executive’s
entire right to salary and benefits hereunder shall cease at the effective date
of the termination of the Term.


 


E.             Termination
Upon Change in Control.


 


(1)           For
the purposes of this Agreement, a “Change in Control” shall mean any of the
following events:


 


(a)           An
acquisition (other than directly from the Company) of any voting securities of
the Company (the “Voting Securities”) other than in a “Non-Control Acquisition”
(as defined below) by any “Person” (as the term “person” is used for purposes
of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended,
(the “1934 Act”)) which results in such Person first attaining “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
fifty-one percent (51%) or more of the combined voting power of the Company’s
then outstanding Voting Securities.  For
purposes of the foregoing, a “Non-Control Acquisition” shall mean an
acquisition by (i) an employee benefit plan (or a trust forming a part thereof)
maintained by (x) the Company or (y) any corporation or other Person of which a
majority of its voting power or its equity securities or equity interest is
owned directly or indirectly by the Company (a “Subsidiary”), or (ii) the
Company or any Subsidiary.


 


(b)           The
individuals who, as of the date of this Agreement, were members of the Board
(the “Incumbent Board”) cease for any reason to constitute at least 66 2/3% of
the Board; provided, however, that if the election,
or a nomination for election by the Company’s shareholders, of any new director
was approved by a vote of at least 66 2/3% of the Incumbent Board, such new
director shall be considered as a member of the Incumbent Board; provided further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed
office as a result of either an actual or threatened “Election Contest” (as
described in Rule 14a-11 promulgated under the 1934 Act) or other actual or
threatened solicitation of the proxies or consents by or on behalf of a Person
other than the Board (a “Proxy Contest”) including by reason of any agreement
intended to avoid or settle any Election Contest or Proxy Contest; or


 


(c)           The
consummation of a transaction approved by the Company’s shareholders and involving:  (1) a merger, consolidation or reorganization
in which the Company is a constituent corporation, unless (i) the shareholders
of the Company, immediately before such merger, consolidation or
reorganization, own, directly or indirectly immediately following such merger,
consolidation or reorganization, at least sixty-six and two-thirds percent
(66-2/3%) of the combined voting power of the outstanding voting securities of
the corporation resulting from such merger, consolidation or reorganization (the
“Surviving Corporation”) in substantially the same proportion as their
ownership of the voting securities immediately before such merger,
consolidation or reorganization, (ii) the individuals who were 


 


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members of the Incumbent
Board immediately prior to the execution of the agreement providing for such
merger, consolidation or reorganization constitute at least 66 2/3% of the
members of the board of directors of the Surviving Corporation, and (iii) no Person
other than (w) the Company, (x) any Subsidiary, (y) any employee benefit plan
(or any trust forming a part thereof) maintained by the Company, the Surviving
Corporation or any Subsidiary, or (z) any Person who, immediately prior to such
merger, consolidation or reorganization had Beneficial Ownership of fifty-one
percent (51%) or more of the then outstanding Voting Securities, has Beneficial
Ownership of fifty-one percent (51%) or more of the combined voting power of
the Surviving Corporation’s then outstanding voting securities (a transaction
described in clauses (i) and (ii) shall herein be referred to as a “Non-Control
Transaction”); (2) a complete liquidation or dissolution of the Company; or (3)
an agreement for the sale or other disposition of all or substantially all of
the assets of the Company to any Person (other than a transfer to a
Subsidiary).


 


(d)           Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
the level of Beneficial Ownership held by any Person (the “Subject Person”)
exceeds the designated percentage threshold of the outstanding Voting
Securities as a result of a repurchase or other acquisition of Voting
Securities by the Company reducing the number of shares outstanding, provided
that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of Voting Securities by the Company,
and after such share acquisition, the Subject Person becomes the Beneficial
Owner of any additional Voting Securities which, assuming the repurchase or
other acquisition had not occurred, increases the percentage of the then
outstanding Voting Securities Beneficially Owned by the Subject Person over the
designated percentage threshold, then a Change in Control shall occur.


 


(2)           The
Executive shall have the right to terminate this Agreement, for any reason, on
thirty (30) days’ written notice to the Company in the event of a Change in
Control; provided, however, that such termination
right must be exercised by the Executive within one year following such Change
in Control.  Any termination of the Term
by the Company within one year following a Change in Control shall be deemed a
termination by the Executive pursuant to the preceding sentence.


 


(3)           In
the event the Term is terminated by the Executive pursuant to Subsection
6.E.(2) for any reason, the Company shall provide the Executive the following
benefits:


 


(a)           Amount:  In addition to all compensation for services
rendered by Executive to the Company up to the date of termination, the Company
shall pay to Executive, no later than the date of such termination, a single
lump-sum payment in an amount equal to (i) thirty-six times Executive’s highest
monthly base compensation paid hereunder during the preceding twenty-four month
period, plus (ii) three times the Executive’s average annual bonus received by
the Executive during the preceding twenty-four month period.


 


(b)           Benefits:  In addition to the payment described above,
the Company shall continue to provide to Executive all benefits provided under
Subsections 3.C.(3),


 


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3.C.(4) and 3.C.(6)
hereof (to the extent permitted by the Company’s insurance carriers) for a
period of twenty-four months after termination.


 


(c)           Acceleration
of Options:  All of the Executive’s
outstanding options and/or equity awards shall become fully and immediately
vested to the extent not already so provided under the terms of such options
and equity awards.  Notwithstanding any
provisions of the stock option plan or stock option agreement pursuant to which
any stock options subject to the preceding sentence were granted, the Executive
shall be entitled to exercise such options until three years from the date of
termination of employment or the expiration of the stated period of the option,
whichever period is the shorter.


 


(d)           Golden
Parachute Payment Provisions:  If any
payment or benefit the Executive would receive pursuant to a Change in Control
from the Company or otherwise (“Payment”) would (i) constitute a “parachute
payment” within the meaning of Section 280G of the Internal Revenue Code of
1986, as amended (the “Code”), and (ii) but for this sentence, be subject to
the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
such Payment shall be reduced to the Reduced Amount.  The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment
being subject to the Excise Tax or (y) the largest portion, up to and including
the total, of the Payment, whichever amount, after taking into account all
applicable federal, state and local employment taxes, income taxes, and the
Excise Tax (all computed at the highest applicable marginal rate), results in
the Executive’s receipt, on an after-tax basis, of the greater amount of the
Payment notwithstanding that all or some portion of the Payment may be subject
to the Excise Tax. If a reduction in payments or benefits constituting “parachute
payments” is necessary so that the Payment equals the Reduced Amount, reduction
shall occur in the following order unless the Executive elects in writing a
different order (provided, however, that such
election shall be subject to Company approval if made on or after the effective
date of the event that triggers the Payment): reduction of cash payments;
cancellation of accelerated vesting of stock options or equity awards;
reduction of employee benefits.  In the
event that acceleration of vesting of stock option or equity award compensation
is to be reduced, such acceleration of vesting shall be cancelled in the
reverse order of the date of grant of the Executive’s stock options or equity
awards unless the Executive elects in writing a different order for
cancellation.


 


The accounting firm engaged by the Company for general
audit purposes as of the day prior to the effective date of the Change in
Control shall perform the foregoing calculations.  If the accounting firm so engaged by the
Company is also serving as accountant or auditor for the individual, entity or
group effecting the Change in Control, the Company shall appoint a nationally
recognized accounting firm to make the determinations required hereunder.  The Company shall bear all expenses with
respect to the determinations by such accounting firm required to be made
hereunder.


 


The accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting
documentation, to the Company and the Executive within fifteen (15) calendar
days after the date on which the Executive’s right to a Payment is triggered
(if requested at that time by the Company or the Executive) or such other time
as requested by the Company or the Executive. 
If the accounting firm determines that no Excise Tax is payable with
respect to a Payment, either before or after 


 


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the application of
the Reduced Amount, it shall furnish the Company and the Executive with an
opinion reasonably acceptable to the Executive that no Excise Tax will be
imposed with respect to such Payment. 
Any good faith determinations of the accounting firm made hereunder
shall be final, binding and conclusive upon the Company and the Executive.


 


F.             Termination
for Disability.


 


(1)           Should
the Executive be absent from work as a result of personal injury, sickness or
other disability as provided for in Subsection 3.C.(5) for any continuous
period of time exceeding one hundred eighty (180) days, the Term may be
terminated by the Company, upon written notice given to the Executive, because
of the Executive’s disability.


 


(2)           In
the event the Term is terminated pursuant to Subsection 6.F.(1), then,
following such Termination, the Executive shall continue to be entitled to
benefits pursuant to Subsections 3.C.(3), 3.C.(4) and 3.C.(6) hereof (to the
extent permitted by the Company’s insurance carriers) for one hundred eighty
(180) days after the conclusion of the Term. 
In addition, notwithstanding any provisions of the stock option plan or
stock option agreement pursuant to which any stock options were granted, the
Executive shall be entitled to exercise any of Executive’s stock options vested
as of the final day of the Term until eighteen months from the final day of the
Term or the expiration of the stated period of the option, whichever period is
the shorter.


 


G.            Termination
Upon Death.  If not earlier
terminated, the Term shall terminate upon the death of the Executive and the
Company shall have no further obligation to the Executive or his estate except
to pay the Executive’s estate any Base Salary accrued but remaining unpaid
prior to his death, any expenses accrued but remaining unpaid prior to his
death, and any benefits accrued but remaining unpaid prior to his death.  In addition, the Company shall continue for
the benefit of Executive’s dependents Executive’s benefits enumerated in
Subsections 3.C.(4) and 3.C.(6) hereof (to the extent permitted by the Company’s
insurance carriers) for two years commencing with the day following Executive’s
death.  In addition, notwithstanding any
provisions of the stock option plan or stock option agreement pursuant to which
any stock options were granted, the Executive shall be entitled to exercise any
of Executive’s stock options vested as of the final day of the Term until
eighteen months from the final day of the Term or the expiration of the stated
period of the option, whichever period is the shorter.


 


H.            COBRA. 
If the Company continues benefits for Executive and his dependents
pursuant to

Subsection 6.A, 6.C, 6.E, 6.F or 6.G, Executive and his dependents, as
applicable, shall, upon the request of the Company, be required to elect to
receive such continued coverage under the provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and any analogous
state law, and the Company’s provision of such continued coverage for all
purposes shall be considered continuation coverage under COBRA and any
analogous state law.  In the event
Executive is required to make an election pursuant to the preceding sentence,
the Company will reimburse the Executive for his COBRA and any analogous state
law costs incurred during the periods set forth in Subsection 6.A, 6.C, 6.E,
6.F or 6.G, as applicable, unless and until Executive becomes a full-time
employee of another entity.


 


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7.             MISCELLANEOUS.


 


A.            Notice.  Any notice to be given hereunder shall either
be delivered personally and/or sent by first class certified mail and regular
mail.  The address for service on the
Company shall be its registered office, and the address for service on the
Executive shall be his last known place of residence.  A notice shall be deemed to have been served
as follows:


 


(1)           if
personally delivered, at the time of delivery; and/or


 


(2)           if
posted, at the expiration of 48 hours (10 days if international) after the
envelope containing the same was delivered into the custody of the postal
authorities.


 


B.            Disability.  The Company acknowledges its obligations
under state and federal law to provide reasonable accommodations to the
Executive in the event of a disability, and nothing in this Agreement is
intended to relieve the Company of that responsibility.


 


C.            Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of the Parties hereto and their
respective heirs, personal representatives, successors and assigns, provided
that neither Party shall assign any of its rights or privileges hereunder
without the prior written consent of the other Party except that the Company may
assign its rights hereunder to a successor in ownership of all or substantially
all the assets of the Company.


 


D.            Severability.  Should any part or provision of this
Agreement be held unenforceable by a court of competent jurisdiction, the
validity of the remaining parts or provisions shall not be affected by such
holding, unless such enforceability substantially impairs the benefit of the
remaining portions of the Agreement.


 


E.             Waiver.  No failure or delay on the part of either
Party in the exercise of any right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or
privilege preclude other or further exercise thereof or of any other right of
privilege.


 


F.             Captions.  The captions used in this Agreement are for
convenience only and are not to be used in interpreting the obligations of the
Parties under this Agreement.


 


G.            Choice
of Law.  The validity, construction
and performance of this Agreement and the transactions to which it relates shall
be governed by the laws of the State of New Jersey, without regard to choice of
laws provisions, and the Company and the Executive irrevocably consent to the
exclusive jurisdiction and venue of the federal and state courts located within
New Jersey, and courts with appellate jurisdiction therefrom, in connection
with any matter based upon or arising out of this Agreement.


 


H.            Entire
Agreement.  This Agreement embodies
the entire understanding of the Parties as it relates to the subject matter
contained herein and as such, supersedes any prior agreement or understanding
between the Parties relating to the terms of employment of the Executive.  No amendment or modification of this
Agreement shall be valid or binding upon the Parties unless in writing executed
by the Parties.


 


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IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed as of the day and year
first written above.


 


	
   

  	
  MEDAREX,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Irwin Lerner

  	
   

  
	
   

  	
   

  	
  Irwin Lerner

  
	
   

  	
   

  	
  Chairman of the Compensation and 

  Organization Committee of the 

  Board of Directors of Medarex, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ W. Bradford
  Middlekauff

  	
   

  
	
   

  	
  W. Bradford
  Middlekauff

  



 


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