Document:

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                                                                    Exhibit 4(b)

                     RESTATED CERTIFICATE OF INCORPORATION

                                      OF

                                 MEDAREX, INC.

TO:               The Secretary of State
                  State of New Jersey

                  Pursuant to the provisions of Section 14A:9-5, Corporations,
General, of the New Jersey Statutes, the undersigned corporation hereby executes
the following Restated Certificate of Incorporation:

                  FIRST:     The name of the corporation is Medarex, Inc.

                  SECOND:    The purpose or purposes for which the corporation
                             is organized are:

                  To engage in any activity within the lawful business purposes
for which corporations may be organized under the New Jersey Business
Corporation Act.

                  THIRD:     The aggregate number of shares which the
Corporation shall have the authority to issue is 22,000,000 shares, of which
20,000,000 shall be Common Stock, par value $.01 per share (the "Common Stock"),
and 2,000,000 shares shall be Preferred Stock, par value $1.00 per share (the
"Preferred Stock").

                  The Preferred Stock may be issued from time to time in one or
more series with such designations, preferences and relative participating,
optional or other special rights and qualifications, limitations or restrictions
thereof, as shall be stated in the resolutions adopted by the Board of Directors
providing for the issuance of such Preferred Stock or series thereof; and the
Board of Directors is hereby expressly vested with authority to fix such
designations, preferences and relative participating, optional or other special
rights or qualifications, limitations or restrictions
<PAGE>

for each series, including, but not by way of limitation, the power to fix the
redemption and liquidation preferences, the rate of dividends payable and the
time for and the priority of payment thereof and to determine whether such
dividends shall be cumulative or not and to provide for and fix the terms of
conversion of such Preferred Stock or any series thereof into Common Stock of
the Corporation and fix the voting power, if any, of shares of Preferred Stock
or any series thereof.

                  FOURTH: The address of the corporation's current registered
office is 28 West State Street, Trenton, New Jersey 08608, and the name of its
current registered agent at such address is The Corporation Trust Company.

                  FIFTH: The business and affairs of the Corporation shall be
managed by or under the direction of a Board of Directors consisting of not less
than three (3) nor more than ten (10) Directors. The Board of Directors shall be
divided into three classes, designated Class I, Class II and Class III. Each
class shall consist, as nearly as may be possible, of one-third of the total
number of Directors constituting the entire Board of Directors. The exact number
of directors in each class shall be determined from time to time by resolution
adopted by the Board of Directors. At the 1991 Annual Meeting of shareholders,
Class I Directors shall be elected for a one-year term, Class II Directors shall
be elected for a two-year term and Class III Directors for a three-year term. At
each succeeding annual meeting of Shareholders beginning in 1992, successors to
the class of Directors whose term expires at that annual meeting shall be
elected for a three-year term. If the number of Directors is changed, any
increase or decrease shall be apportioned among the classes so as to maintain
the number of Directors in each class as nearly equal as possible, and any
additional Director elected to fill a newly-created directorship resulting from
an increase in the number of Directors shall hold office only until the next
annual meeting of Shareholders and until his successor is elected and qualified.
A Director shall hold office until the annual meeting for the year in which
<PAGE>

his term expires and until his successor shall be elected and shall qualify,
subject, however, to prior death, resignation, retirement, disqualification or
removal from office.

                  Any vacancy on the Board of Directors, whether resulting from
an increase in the number of Directors or otherwise, may be filled by a majority
of the Directors then in office, although less than a quorum, or by a sole
remaining director. Any Director elected to fill a vacancy not resulting from an
increase in the number of Directors shall hold office from the unexpired term
for which his predecessor was elected.

                  SIXTH:  The number of directors constituting the current Board
of Directors is five (5). The names and addresses of the Directors are as
follows:

Names                     Address
-----                     -------
Donald L. Drakeman        20 Nassau Street
                          Princeton, New Jersey 08540

Charles R. Schaller       20 Nassau Street
                          Princeton, New Jersey 08540

Michael W. Fanger         2 Maynard Street
                          Hanover, New Hampshire 03756

Sean Gorman               Star Route
                          East Hartford, Vermont 05084

Michael A. Appelbaum      20 Nassau Street
                          Princeton, New Jersey 08542

                  SEVENTH:  The Corporation shall be governed by the provisions
of the New Jersey Shareholders Protection Act, Section 14A:10A, Corporations,
General, of the New Jersey Statutes, as the same shall be amended from time to
time (the "Act"). Notwithstanding any other provision of this Restated
Certificate of Incorporation or the By-laws of the Corporation (and in addition
to any other vote that may be required by law, this Restated Certificate of
Incorporation or the By-laws), this Article SEVENTH may be amended only by the
affirmative vote, in person or by
<PAGE>

proxy, of the holders of sixty-six and two-thirds percent (66 2/3%) in interest
of the issued and outstanding voting stock of the Corporation (considered for
this purpose as one class) including the holders of sixty-six and two-thirds
percent (66 2/3%) of the outstanding voting stock of the Corporation held by
persons other than "Interested Stockholders" as such term is defined in Section
14A:10A-3 of the Act; provided, however, that such provision may be amended,
altered, repealed or adopted, by either (a) the affirmative vote of sixty-six
and two-thirds (66 2/3%) of the Corporation's issued and outstanding voting
stock or (b) the approval of a majority of the Disinterested Directors and the
holders of a majority in interest of the issued and outstanding voting stock of
the Corporation. For purposes of this Article SEVENTH, "Disinterested Director"
means any member of the Board of Directors of the Corporation who si
unaffiliated with, and not a nominee of, an Interested Stockholder and was a
member of the Board prior to the time that the Interested Stockholder became an
Interested Stockholder, and any successor of a Disinterested Director who is
unaffiliated with, and not a nominee of, an Interested Stockholder and who is
recommended to succeed a Disinterested Director then on the Board of Directors.

                  EIGHTH:  The personal liability for monetary damages of the
directors of the Corporation is hereby eliminated to the fullest extent
permitted by the provisions of the New Jersey Business Corporation Act, as the
same may be amended and supplemented from time to time.

                  The Corporation shall indemnify any and all of its directors,
officers, employees, Members of the Scientific Advisory Board or agents or
former directors, officers, employees, Members of the Scientific Advisory Board
or agents or any person who may have served at its request as a director,
officer, employee, Member of the Scientific Advisory Board or agent of another
corporation in which it owns shares of capital stock or of which it is a
creditor, to the fullest extent permitted under the indemnification provisions
of the New Jersey Business Corporation Act. Except as otherwise prohibited by
applicable law, such indemnification shall not be deemed exclusive of
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any other rights to which those indemnified may be entitled under any by-law,
resolution of shareholders or directors, or contract. Any repeal or modification
of this Article EIGHTH by the shareholders of the Corporation shall not
adversely affect any right or protection of a director, officer, employee,
Member of the Scientific Advisory Board or agent of the Corporation existing at
the time of such repeal or modification with respect to acts or omissions
(alleged and actual) occurring prior to such repeal or modification.

                  NINTH:     The effective date of this Certificate shall be
upon filing. Dated this 6th day of May, 1991.

                                             MEDAREX, INC                     .

                                             By:   /s/  Donald L. Drakeman
                                                --------------------------
                                                   Donald L. Drakeman
                                                   President
<PAGE>

                   CERTIFICATE REQUIRED TO BE FILED WITH THE
                     RESTATED CERTIFICATE OF INCORPORATION
                                      OF
                                 MEDAREX, INC.

                  Pursuant to the provisions of Section 14A:9-5(5),
Corporations, General of the New Jersey Statutes, the undersigned corporation
hereby executes the following certificate:

                  FIRST:   The name of the corporation is Medarex, Inc.

                  SECOND:  The Restated Certificate of Incorporation was adopted
by the shareholders of the Corporation on the 30th day of April, 1991.

                  THIRD:   At the time of the adoption of the Restated
Certificate of Incorporation, the total number of shares entitled to vote
thereon, and the number of outstanding shares of each class or series entitled
to vote thereon as a class and the vote of such shares, was:

--------------------------------------------------------------------------------
                       Total Number of                Number of Shares Voted
Class or Series        Shares Entitled to Vote        For             Against
---------------        -----------------------        ---             -------
--------------------------------------------------------------------------------
Common                       2,506,000               2,462,000          0
--------------------------------------------------------------------------------
Preferred                        0                       0              0
--------------------------------------------------------------------------------

                  FOURTH:  The effective date of this amendment shall be upon
filing. This Certificate is dated as of the 6th day of May, 1991.

                                              MEDAREX, INC.

                                              By: /s/ Donald L. Drakeman
                                                 -------------------------------
                                                  Donald L. Drakeman
                                                  President
<PAGE>

                        CERTIFICATE OF AMENDMENT TO THE
                     RESTATED CERTIFICATE OF INCORPORATION

                                      OF

                                 MEDAREX, INC.

TO:               The Secretary of State
                  State of New Jersey

                  Pursuant to the provisions of Section 14A:9-2(4) and Section
14A:9-4(3), Corporations, General, of the New Jersey Statutes, the undersigned
corporation (the "Corporation") hereby executes the following Certificate of
Amendment to its Restated Certificate of Incorporation:

                  FIRST:   The name of the Corporation is Medarex, Inc.

                  SECOND:  The following amendment to the Restated Certificate
of Incorporation was approved by the directors and thereafter duly adopted by
the shareholders of the Corporation on the 18th day of May, 1995.

                  RESOLVED, that Article Third of the Restated Certificate of
                  Incorporation be amended to read in its entirety as follows:

                  "THIRD:  The aggregate number of shares which the Corporation
                  shall have the authority to issue is 42,000,000 shares, of
                  which 40,000,000 shall be Common Stock, par value $.01 per
                  share (the "Common Stock"), and 2,000,000 shares shall be
                  Preferred Stock, par value $1.00 per share (the "Preferred
                  Stock").

                       The Preferred Stock may be issued from time to time in
                  one or more series with such designations, preferences and
                  relative participating, optional or other special rights and
                  qualifications, limitations or restrictions thereof, as shall
                  be stated in the resolutions adopted by the Board of Directors
                  providing for the issuance of such Preferred Stock or series
                  thereof; and the Board of Directors is hereby expressly vested
                  with authority to fix such designations, preferences and
                  relative participating, optional or other special rights or
                  qualifications, limitations or restrictions for each series,
                  including, but not by way of limitation, the power to fix the
                  redemption and liquidation preferences, the rate of dividends
                  payable and the time for and the priority of payment thereof
                  and to determine whether such dividends shall be cumulative or
                  not and to provide for and fix the terms of conversion of such
                  Preferred Stock or any series thereof into Common Stock of the
                  Corporation and fix the voting power, if any, of shares of
                  Preferred Stock or any series thereof."
<PAGE>

                  THIRD: The number of shares of common stock outstanding at the
time of the adoption of the amendment was 8,713,738. The total number of shares
of common stock entitled to vote thereon was 8,713,738. If the shares of any
class or series are entitled to vote thereon as a class, set forth below the
designation and number of outstanding shares entitled to vote thereon of each
such class or series.

--------------------------------------------------------------------------------
                       Total Number of             Number of Shares Voted
Class or Series      Shares Entitled to vote     For       Against    Abstain
---------------      -----------------------     ---       -------    -------
--------------------------------------------------------------------------------
Common               8,713,738                5,722,159    177,849     42,167
--------------------------------------------------------------------------------
Preferred                0                        0           0           0
--------------------------------------------------------------------------------

                  FOURTH:  the effective date of this amendment shall be upon
filing. This Certificate is dated as of the 18/th/ day of May, 1995.

                                             MEDAREX, INC.

                                             By:   /s/ Donald L. Drakeman
                                                --------------------------------
                                                   Donald L. Drakeman
                                                   President

                                       2
<PAGE>

                        CERTIFICATE OF AMENDMENT TO THE
                     RESTATED CERTIFICATE OF INCORPORATION

                                      OF

                                 MEDAREX, INC.

TO: The Secretary of State
    State of New Jersey

                  Pursuant to the provisions of Section 14A:9-2(4) and Section
14A:9-4(3), Corporations, General, of the New Jersey Statutes, the undersigned
corporation (the "Corporation") hereby executes the following Certificate of
Amendment to its Restated Certificate of Incorporation:

                  FIRST:   The name of the Corporation is Medarex, Inc.

                  SECOND:  The following amendment to the Restated Certificate
of Incorporation was approved by the directors and thereafter duly adopted by
the shareholders of the Corporation on the 18th day of May, 2000.

                      RESOLVED, that Article Third of the Restated Certificate
                      of Incorporation be amended to read in its entirety as
                      follows:

                      "THIRD: The aggregate number of shares which the
                      Corporation shall have the authority to issue is
                      102,000,000 shares, of which 100,000,000 shall be Common
                      Stock, par value $.01 per share (the "Common Stock"), and
                      2,000,000 shares shall be Preferred Stock, par value $1.00
                      per share (the"Preferred Stock").

                      Shares of Preferred Stock may be issued from time to time
                      in one or more series with such designations, preferences
                      and relative participating, optional or other special
                      rights and qualifications, limitations or restrictions
                      thereof, as shall be stated in the resolutions adopted by
                      the Board of Directors providing for the issuance of such
                      Preferred Stock or series thereof; and the Board of
                      Directors is hereby expressly vested with authority to fix
                      such designations, preferences and relative participating,
                      optional or other special rights or qualifications,
                      limitations or restrictions for each series, including,
                      but not by way of limitation, the power to fix the
                      redemption and liquidation preferences, the rate of
                      dividends payable and the time for and the priority of
                      payment thereof and to determine whether such dividends
                      shall be cumulative or not and to provide for and fix the
                      terms of conversion of such Preferred Stock or any series
                      thereof into Common Stock of the Corporation and fix the
                      voting power, if any, of shares of Preferred Stock or any
                      series thereof."

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<PAGE>

                  THIRD:  The number of shares of common stock outstanding at
the time of the adoption of the amendment was 35,155,185. The total number of
shares of common stock entitled to vote thereon was 35,151,835. If the shares of
any class or series are entitled to vote thereon as a class, set forth below the
designation and number of outstanding shares entitled to vote thereon of each
such class or series.

Class or Series      Total Number of          Number of Shares Voted
---------------    Shares Entitled to Vote    For          Against       Abstain
                   -----------------------    ---          -------       -------

Common                 35,151,835            22,874,061    2,772,254      18,069

Preferred                 0                       0          0             0

                  FOURTH: The effective date of this amendment shall be upon
filing. This Certificate is dated as of the 22/nd/ day of May, 2000.

                                                 MEDAREX, INC.

                                            By:  /s/ W. Bradford Middlekauff
                                               ---------------------------------
                                                 W. Bradford Middlekauff
                                                 Vice President,
                                                 Counsel and Secretary

                                       4<PAGE>

                                                                    Exhibit 10.1

                                 MEDAREX, INC.
                            2000 STOCK OPTION PLAN

          Section 1. Purpose of the Plan. The purpose of the 2000 Stock Option
Plan (the "Plan") is to aid Medarex, Inc. (the "Corporation") and its
subsidiaries in securing and retaining directors, consultants, officers and
other key employees of outstanding ability and to motivate such employees to
exert their best efforts on behalf of the Corporation and its subsidiaries. In
addition, the Corporation expects that it will benefit from the added interest
which the respective optionees and participants will have in the welfare of the
Corporation as a result of their ownership or increased ownership of the Common
Stock of the Corporation (the "Stock").

          Section 2. Administration. (a) the Board of Directors of the
Corporation (the "Board") shall designate a Committee of not less that two (2)
Directors (the "Committee") who shall serve at the pleasure of the Board. Each
member of the Committee shall be a "non-employee" director within the meaning of
Rule 16b-3(b) (3)(i) under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), as such Rule or any other comparable rule may be in effect from
time to time, while serving on the Committee. The Board shall fill any vacancies
on the Committee and may remove any member of the Committee at any time with or
without cause. The Committee shall select its chairman and hold its meetings at
such times and places as it may determine. A majority of the whole Committee
present at a meeting at which a quorum is present, or an act approved in writing
by all members of the Committee, shall be an act of the Committee. The Committee
shall have full power and authority, subject to such resolutions not
inconsistent with the provisions of the Plan as may from time to time be issued
or adopted by the Board (provided the entire Board acting on the matter are
Disinterested Persons), to grant to Eligible Persons (as defined herein)
pursuant to the provisions of the Plan (i) stock options to purchase shares,
(ii) stock appreciation rights, (iii) restricted stock, (iv) deferred stock, or
(v) other Stock-based awards permitted hereunder (each of the foregoing being an
"AWARD" and collectively, the "AWARDS"). The Committee shall also interpret the
provisions of the Plan and any AWARD issued under the Plan (and any agreements
relating thereto) and supervise the administration of the Plan.

                 (b) The Committee shall: (i) select the directors, consultants,
officers and other key employees of the Corporation and its subsidiaries to whom
AWARDS may from time to time be granted hereunder; (ii) determine whether
incentive stock options (under Section 422 of the Internal Revenue Code of 1986,
as the same may be amended from time to time, hereinafter referred to as the
"Code"), nonqualified stock options, stock appreciation rights, restricted
stock, deferred stock, or other Stock-based awards, or a combination of the
foregoing, are to be granted hereunder; (iii) determine the number of shares to
be covered by each AWARD granted hereunder; (iv) determine the terms and
conditions, not inconsistent with the provisions of the Plan, of any AWARD
granted hereunder (including but not limited to any restriction and forfeiture
condition on such AWARD and/or the shares of Stock relating thereto); (v)
determine whether, to what extent and under what circumstances AWARDS may be
settled in cash; (vi) determine whether, to what extent, and under what
circumstances Stock and other amounts payable with respect to an AWARD under
this Plan shall be deferred either automatically or at the election of the
participant; and (vii) determine whether, to what extent, and under what
circumstances option grants and/or other AWARDS under the Plan are to be made,
and operate, on a tandem basis.

                 (c) All decisions made by the Committee pursuant to the
provisions of the Plan and related orders or resolutions of the Board (as and to
the extent permitted hereunder) shall be final,

                                       1
<PAGE>

conclusive and binding on all persons, including the Corporation, its
shareholders, employees and Plan participants.

                 (d) No member of the Committee shall be liable for any action
or determination made in good faith with respect to the Plan or any AWARD
thereunder.

          Section 3. Stock Subject to the Plan. Except as otherwise provided by
this Section 3, the total number of shares of Stock available for distribution
under the Plan is 1,000,000. The total number of shares of stock with respect to
which AWARDS may be granted to any participant in any year is 200,000 shares.
Such shares may consist, in whole or in part, of authorized and unissued shares
or treasury shares, except that treasury shares must be used in the case of
restricted stock. If any shares that have been optioned cease to be subject to
option because the option has expired or has been deemed to have expired or has
been surrendered pursuant to the Plan, or if any shares of restricted stock are
forfeited or such AWARD otherwise terminates without the actual or deemed
delivery of such shares, such shares shall again be subject to an AWARD under
the Plan.

          In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, extraordinary cash dividend, or other change
in corporate structure affecting the Stock, such adjustment shall be made in the
aggregate number of shares which may be delivered under the Plan, in the number
and/or option price of shares subject to outstanding options granted under the
Plan, and/or in the number of shares subject to restricted stock, deferred
stock, or other Stock-based awards granted under the Plan as may be determined
to be appropriate by the Committee, in its sole discretion; provided that the
number of shares subject to any AWARDS shall always be a whole number; and
provided further that, with respect to incentive stock options, no such
adjustment shall be authorized to the extent that such adjustment would
constitute a modification as defined in Section 424(h)(3) of the Code or cause
the Plan to violate Section 422(b)(1) of the Code or any successor provision
thereto. Such adjusted option price shall also be used to determine the amount
payable by the Corporation upon the exercise of any stock appreciation right
associated with any option. In addition, subject to the limitations provided in
Section 11, the Committee is authorized to make adjustments in the terms and
conditions of, and performance criteria relating to, AWARDS in recognition of
unusual or nonrecurring events (including, without limitation, events described
in this paragraph) affecting the Corporation or the financial statements of the
Corporation, or in response to changes in applicable laws, regulations or
accounting principles.

          Section 4. Eligibility. Directors, consultants, officers and other key
employees of the Corporation and its subsidiaries who are responsible for the
management, growth, profitability and protection of the business of the
Corporation and its subsidiaries are eligible to be granted AWARDS under the
Plan (each an "Eligible Person" and collectively "Eligible Persons"). The
participants under the Plan shall be selected from time to time by the
Committee, in its sole discretion, from among those eligible, and the Committee
shall determine, in its sole discretion, the number of shares covered by each
stock option, the number of stock appreciation rights (if any) granted to each
optionee, and the number of shares (if any) subject to restricted stock,
deferred stock or other Stock-based awards granted to each participant.

          For purposes of the Plan, a subsidiary of the Corporation shall be any
corporation which at the time qualifies as a subsidiary thereof under the
definition of "subsidiary corporation" in Section 424(f) of the Code.

          Section 5. Stock Options. Any stock option granted under the Plan
shall be in such form as the Committee may from time to time approve. Any such
option shall be subject to the following terms

                                       2
<PAGE>

and conditions and shall contain such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall deem
desirable.

                  (a) Option Price. The purchase price per share of the Stock
purchasable under a stock option shall be determined by the Committee, but will
be not less than 100% of the fair market value of the Stock on the date of the
grant of the option, as determined in accordance with procedures established by
the Committee. Notwithstanding the foregoing, the purchase price per share of
the Stock purchasable under any incentive stock option granted to any person who
is the beneficial owner of more than 10% of the Corporation's issued and
outstanding Stock (a "10% owner") shall not be less then 110% of the fair market
value of the Stock on the date of the grant of the option, as determined in
accordance with procedures established by the Committee.

                  (b) Option Period. The term of each stock option shall be
fixed by the Committee, but no incentive stock option shall be exercisable after
the expiration of 10 years from the date the option is granted. Notwithstanding
the foregoing, no incentive stock option granted to a 10% owner shall be
exercisable after the expiration of five years from the date the option is
granted.

                  (c) Exercisability. (1) Stock options shall be exercisable at
such time or times as determined by the Committee at or subsequent to the date
of grant. Unless otherwise determined by the Committee at or subsequent to the
date of grant, no stock option shall be exercisable until the first anniversary
date of the granting of the option, except as provided in paragraphs (f), (g) or
(h) of this Section 5; provided, however, that notwithstanding the foregoing
from and after a Change of Control (as hereinafter defined) all stock options
shall become immediately exercisable to the full extent of the AWARD.

                      (2)  Solely for Federal income tax purposes, to the extent
that the aggregate fair market value of Stock with respect to which incentive
stock options are exercisable for the first time by a participant during any
calendar year exceeds $100,000.00 (as of the date of grant), such options shall
be treated as options which are not incentive stock options. For purposes of
this rule, options shall be taken into account in the order in which they were
granted.

                      (3)  As used herein, "Change of Control" shall mean any
of the following events:

                      (A)  An acquisition (other than directly from the
          Corporation) of any voting securities of the Corporation (the "Voting
          Securities") by any "Person" (as the term "person" is used for
          purposes of Section 13(d) or 14(d) of the Exchange Act) immediately
          after which such Person has "Beneficial Ownership" (within the meaning
          of Rule 13d-3 promulgated under the Exchange Act) of 15% or more of
          the combined voting power of the Corporation's then outstanding Voting
          Securities; provided, however, that in determining whether a Change of
          Control has occurred, voting securities which are acquired in a
          "Non-Control Acquisition" (as hereinafter defined) shall not
          constitute an acquisition which would cause a Change of Control.

                      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 Corporation 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
          Corporation (a "Subsidiary"), (ii) the Corporation or any Subsidiary,
          or (iii) any Person in connection with a Non-Control Transaction (as
          defined below);

                                       3
<PAGE>

                     (B) The individuals who, as of April 30, 1991 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 nomination for election by the Corporation's
          stockholders, 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 Exchange Act) or other actual or threatened
          solicitation of 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) Approval of the Corporation's shareholders of: (1) a
          merger, consolidation or reorganization involving the Corporation,
          unless (i) the stockholders of the Corporation, immediately before
          such merger, consolidation or reorganization, own, directly or
          indirectly immediately following such merger, consolidation or
          reorganization, at least 66 2/3% of the combined voting power of the
          outstanding Voting Securities of the Corporation resulting from such
          merger or 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 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 the
          Corporation, any Subsidiary, any employee benefit plan (or any trust
          forming a part thereof) maintained by the Corporation, the Surviving
          Corporation or any Subsidiary, or any Person who, immediately prior to
          such merger, consolidation or reorganization had Beneficial Ownership
          of 15% or more of the then outstanding Voting Securities of the
          Corporation, has Beneficial Ownership of 15% or more of the combined
          voting power of the Surviving Corporation's then outstanding voting
          securities (a transaction described in clause (i) through (iii) shall
          herein be referred to as a "Non-Control Transaction"); (2) a complete
          liquidation or dissolution of the Corporation; or (3) an agreement for
          the sale or other disposition of all or substantially all of the
          assets of the Corporation to any Person (other than a transfer to a
          Subsidiary).

                     Notwithstanding the foregoing, a Change of Control shall
          not be deemed to occur solely because any Person (the "Subject
          Person") acquired Beneficial Ownership of more than the permitted
          amount of the outstanding Voting Securities as a result of the
          acquisition of Voting Securities by the Corporation which, by reducing
          the number of Voting Securities outstanding, increases the
          proportional number of shares Beneficially Owned by the Subject
          Person, provided that if a Change of Control would occur (but for the
          operation of this sentence) as a result of the acquisition of Voting
          Securities by the Corporation, and after such share acquisition, the
          Subject Person becomes the Beneficial Owner of any additional Voting
          Securities which increases the percentage of the then outstanding
          Voting Securities Beneficially Owned by the Subject Person, then a
          Change of Control shall occur.

               (d)   Method of Exercise. Stock options may be exercised, in
whole or in part, by giving written notice of exercise to the Corporation
specifying the number of shares to be purchased. Such notice shall be
accompanied by payment in full of the purchase price in cash, either by
certified or bank check; provided, however, that after a Change of Control (x)
an optionee (other than an optionee who initiated a Change of Control in a
capacity other than as an officer or director of the Corporation) who is

                                       4
<PAGE>

an officer or director of the Corporation (within the meaning of Section 16 of
the Exchange Act and the rules and regulations promulgated thereunder), during
the 60-day period after six (6) months after a Change of Control, with respect
to an option that is unaccompanied by a stock appreciation right and (y) any
other optionee, during the 60-day period from and after a Change of Control, who
at the time of exercise is not an officer or director with respect to an option
that is unaccompanied by a stock appreciation right shall, unless the Committee
shall determine otherwise at the time of grant, have the right, in lieu of the
payment of the full purchase price of the shares of the Stock being purchased
under the stock option and by giving written notice to the Corporation, to elect
(within such respective periods) to surrender all or part of the stock option to
the Corporation and to receive in cash an amount equal to the amount by which
the fair market value per share of the Stock on the date of exercise shall
exceed the purchase price per share under the stock option multiplied by the
number of shares of the Stock granted under the stock option as to which the
right granted by this proviso shall have been exercised. However, any officer,
director or 10% owner (collectively, "Insider") may settle the right granted by
this proviso by either (A) settling the right to the extent that such settlement
falls within one of four ten-day periods, each period beginning on the third
business day following the release of the Company's quarterly or annual
financial summary statements of sales and earnings (the "Summary Statements"),
as the case may be, and ending on the twelfth business day following each such
date (each such period being a "Window Period") and provided that the Company
shall have been subject to Section 13(a) of the Exchange Act for at least a year
prior to such settlement and has filed all reports and statements required to be
filed thereunder for that year; or (B) pursuant to an irrevocable election to
settle the right no earlier than six (6) months after the date of such election,
which election need not occur during a Window Period and provided further that
the transaction giving rise to the award of the right is approved by the
Company's shareholders (excluding Insider shareholders).

                  The written notice provided by the optionee shall specify the
optionee's election to purchase shares subject to the stock option or to receive
the cash payment herein provided.

                  Notwithstanding the foregoing, the Committee may, in its sole
discretion, authorize payment in whole or in part of the purchase price to be
made in unrestricted stock already owned by the optionee, or, in the case of the
nonqualified stock option, in restricted stock, or deferred stock subject to an
AWARD hereunder (based upon the fair market value of the Stock on the date the
option is exercised as determined by the Committee). The Committee may authorize
such payment at or after grant, except that in the case of an incentive stock
option, any right to make payment in unrestricted stock already owned must be
included in the option at the time of grant. No shares of Stock shall be issued
until full payment therefor has been made. Subject to paragraph (i) of this
Section 5, an optionee shall have the rights to dividends or other rights of a
stockholder with respect to shares subject to the option when the optionee has
given written notice of exercise, has paid in full for such shares, and, if
requested, has given the representation described in paragraph (a) of Section
14.

                  As used in this paragraph (d) of Section 5, the fair market
value of the Stock on the date of exercise shall mean:

                           (i)  with respect to an election by an optionee to
                  receive cash in respect of a stock option which is not an
                  incentive stock option, the "Change of Control Fair Market
                  Value", as defined below; and

                           (ii) with respect to an election by an optionee to
                  receive cash in respect of a stock option which is an
                  incentive stock option, the fair market value of the Stock on
                  the date of exercise, determined in the same manner as the
                  fair market value of the Stock on

                                       5
<PAGE>

                  the date of grant of a stock option is determined pursuant to
                  paragraph (a) of Section 5 of the Plan.

                  (e) Restrictions on Transferability. The Committee, in its
sole discretion, may impose such restrictions on the transferability of stock
options granted hereunder as it deems appropriate. Any such restrictions shall
be set forth in the stock option agreement with respect to such stock options.
Incentive stock options may not be transferred by an optionee other than by will
or by the laws of descent.

                  (f) Termination by Death. Except to the extent otherwise
provided by the Committee at or after the time of grant, if an optionee's
relationship with or employment by the Corporation and/or any of its
subsidiaries terminates by reason of death, the stock option may thereafter be
immediately exercised in full by the legal representative of the estate or by
the legatee of the optionee under the will of the optionee, for a period of 15
months from the date of such death or until the expiration of the stated period
of the option whichever period is the shorter.

                  (g) Termination by Reason of Retirement or Permanent
Disability. Except to the extent otherwise provided by the Committee at or after
the time of grant, if an optionee's relationship with or employment by the
Corporation and/or any of its subsidiaries terminates by reason of retirement or
permanent disability, any stock option held by such optionee may thereafter be
exercised in full, but may not be exercised after three years from the date of
such termination or the expiration of the stated period of the option, whichever
period is the shorter; provided, however, that if the optionee dies within such
three-year period, any unexercised stock option held by such optionee shall
thereafter be exercisable to the extent to which it was exercisable at the time
of death for a period of 12 months from the date of the optionee's death or for
the stated period of the option, whichever period is the shorter.

                  (h) Other Termination. Unless otherwise determined by the
Committee at or after grant, if an optionee's relationship with or employment by
the Corporation terminates for any reason other than death, permanent disability
or retirement, the stock option shall thereupon terminate; provided, however,
that if such termination is by action of the Corporation and other than
discharge for reason of willful violation of the rules of the Corporation or by
voluntary resignation of the optionee, in either case within 18 months following
a Change of Control, any stock options held by the optionee may be exercised by
the optionee until the earlier of six months and one day after such termination
or the expiration of such options in accordance with their terms.

                  (i) Option Buyout. The Committee may at any time offer to
repurchase an option (other than an option which has been held for less than six
months by an Insider) based on such terms and conditions as the Committee shall
establish and communicate to the optionee at the time that such offer is made.

                  (j) Form of Settlement. In its sole discretion, the Committee
may provide, at the time of grant, that the shares to be issued upon an option's
exercise shall be in the form of restricted stock or deferred stock, or may
reserve other than with respect to incentive stock options the right to so
provide after the time of grant.

          Section 6. Stock Appreciation Rights. (a) Grant and Exercise. Stock
appreciation rights may be granted in conjunction with (or in accordance with
Section 9, separated from) all or part of any stock option granted under the
Plan, as follows: (i) in the case of a nonqualified stock option, such rights
may be granted either at the time of the grant of such option or at any
subsequent time during the term of the option; and (ii) in the case of an
incentive stock option, such rights may be granted only at the time of

                                       6
<PAGE>

the grant of the option. A "stock appreciation right" is a right to receive cash
or Stock, as provided in this Section 6, in lieu of the purchase of a share
under a related option. A stock appreciation right, or applicable portion
thereof, shall terminate and no longer be exercisable upon the termination or
exercise of the related stock option, except that a stock appreciation right
granted with respect to less than the full number of shares covered by a related
stock option shall not be reduced until the exercise or termination of the
related stock option exceeds the number of shares not covered by the stock
appreciation right. A stock appreciation right may be exercised by an optionee,
in accordance with paragraph (b) of this Section 6, by surrendering the
applicable portion of the related stock option. Upon such exercise and
surrender, the optionee shall be entitled to receive an amount determined in the
manner prescribed in paragraph (b) of this Section 6. Options which have been so
surrendered, in whole or in part, shall no longer be exercisable to the extent
the related stock appreciation rights have been exercised.

                  (b)   Terms and Conditions. Stock appreciation rights shall be
subject to such terms and conditions, not inconsistent with the provisions of
the Plan, as shall be determined from time to time by the Committee, including
the following:

                        (i)  Stock appreciation rights shall be exercisable only
                  at such time or times and to the extent that the stock options
                  to which they relate shall be exercisable. Except as otherwise
                  provided in Section 5, an Insider (as previously defined in
                  Section 5) may only settle a stock appreciation right by
                  satisfying either of the following conditions:

                            (A) the stock appreciation right is (i) settled at
                  least six (6) months after its date of grant and (ii) such
                  settlement occurs during a Window Period and provided that the
                  Company shall have been subject to Section 13(a) of the
                  Exchange Act for at least a year prior to such settlement and
                  has filed all reports and statements required to be filed
                  thereunder for that year; or else

                            (B) the settlement of the stock appreciation right
                  is made pursuant to an irrevocable election to settle the
                  right no earlier than six (6) months after the date of such
                  election, which election need not occur during a Window
                  Period.

                            None of the conditions of this Section 6(i) shall be
                  applicable in the event of death or permanent disability of
                  the optionee.

                        (ii) Upon the exercise of a stock appreciation right,
                  an optionee shall be entitled to receive up to, but no more
                  than, an amount in cash or whole shares of the Stock as
                  determined by the Committee in its sole discretion equal to
                  the excess of the fair market value of one share of Stock over
                  the option price per share specified in the related stock
                  option multiplied by the number of shares in respect of which
                  the stock appreciation right shall have been exercised;
                  provided, however, that the payment in settlement of stock
                  appreciation rights during the period from and after a Change
                  of Control shall be entirely in cash. Each stock appreciation
                  right may be exercised only at the time and so long as a
                  related option, if any, would be exercisable or as otherwise
                  permitted by applicable law; provided however, that no stock
                  appreciation right granted under the Plan to an Insider then
                  subject to Section 16 of the Exchange Act shall be exercised
                  during the first six months of its term. The fair market value
                  of the Stock on the date of exercise of a stock appreciation
                  right shall be determined in the same manner as the fair
                  market value of the Stock on the date of grant of a stock
                  option is determined pursuant to paragraph (a) of Section 5 of
                  the Plan; provided, however, that during the 60-day period
                  from and after a

                                       7
<PAGE>

                  Change of Control, the fair market value of the Stock on the
                  date of exercise shall mean, with respect to the exercise of a
                  stock appreciation right accompanying an option which is not
                  an incentive stock option, the "Change of Control Fair Market
                  Value."

                           For purposes of this Plan, the "Change of Control
                  Fair Market Value" shall mean the higher of (x) the highest
                  reported sale price, regular way, of a share of the Stock on
                  the Composite Tape for New York Stock Exchange Listed Stock
                  during the 60-day period prior to the date of the Change of
                  Control or, if such security is not listed or admitted to
                  trading on the New York Stock Exchange, on the principal
                  national securities exchange on which such security is listed
                  or admitted to trading or, if not listed or admitted to
                  trading on any national securities exchange, on the Nasdaq
                  National Market or, if such security is not quoted on such
                  Nasdaq National Market, the average of the closing bid and
                  asked prices during such 60-day period in the over-the-counter
                  market as reported by the National Association of Securities
                  Dealers Automated Quotation ("NASDAQ") system or, if bid and
                  asked prices for such security during such period shall not
                  have been reported through NASDAQ, the average of the bid and
                  asked prices for such period as furnished by any New York
                  Stock Exchange member firm regularly making a market in such
                  security selected for such purpose by the Board of Directors
                  of the Corporation or a committee thereof or, if such security
                  is not publicly traded, the fair market value thereof as
                  determined by an independent investment banking or appraisal
                  firm experienced in the valuation of such securities selected
                  in good faith by the Board of Directors of the Corporation or
                  a committee thereof or, if no such investment banking or
                  appraisal firm is in the good faith judgment of the Board of
                  Directors or such committee available to make such
                  determination, as determined in good faith by the Board of
                  Directors of the Corporation or such committee and (y) if the
                  Change of Control is the result of a transaction or series of
                  transactions described in paragraph (i) or (iii) of the
                  definition of Change of Control set forth in Section 5(c), the
                  highest price per share of the Stock paid in such transaction
                  or series of transactions (in the case of a Change of Control
                  described in such paragraph (i) of Section 5(c), as reflected
                  in any Schedule 13D filed by the person having made the
                  acquisition).

                           (iii) The Committee, in its sole discretion, may
                  impose such restrictions on the transferability of stock
                  appreciation rights as it deems appropriate. Any such
                  restrictions shall be set forth in the written agreement
                  between the Corporation and the optionee with respect to such
                  rights.

                           (iv)  Upon the exercise of a stock appreciation
                  right, the stock option or part thereof to which such stock
                  appreciation right is related shall be deemed to have been
                  exercised for the purpose of the limitation of the number of
                  shares of the Stock to be issued under the Plan, as set forth
                  in Section 3 of the Plan.

                           (v)   Stock appreciation rights granted in connection
                  with incentive stock options may be exercised only when the
                  market price of the Stock subject to the incentive stock
                  option exceeds the option price of the incentive stock option.

          Section 7. Restricted Stock. (a) Stock and Administration. Shares of
restricted stock may be issued either alone or in addition to stock options,
stock appreciation rights, deferred stock or other Stock-based awards granted
under the Plan. The Committee shall determine the directors, consultants,
officers and key employees of the Corporation and its subsidiaries to whom, and
the time or times at

                                       8
<PAGE>

which, grants of restricted stock will be made, the number of shares to be
awarded, the time or times within which such AWARDS may be subject to
forfeiture, and all other conditions of the AWARDS. The provisions of restricted
stock AWARDS need not be the same with respect to each recipient.

                  (b) Awards and Certificates. The prospective recipient of an
AWARD of shares of restricted stock shall not, with respect to such AWARD, be
deemed to have become a participant, or to have any rights with respect to such
AWARD, until and unless such recipient shall have executed an agreement or other
instrument evidencing the AWARD and delivered a fully executed copy thereof to
the Corporation and otherwise complied with the then applicable terms and
conditions.

                      (i)   Each participant shall be issued a stock certificate
                  in respect of shares of restricted stock awarded under the
                  Plan. Such certificate shall be registered in the name of the
                  participant, and shall bear an appropriate legend referring to
                  the terms, conditions, and restrictions applicable to such
                  AWARD, substantially in the following form:

                      "The transferability of this certificate and the shares of
                  stock represented hereby are subject to the terms and
                  conditions (including forfeiture) of the Medarex, Inc. 2000
                  Stock Option Plan and an Agreement entered into between the
                  registered owner and Medarex, Inc. Copies of such Plan and
                  Agreement are on file in the offices of Medarex, Inc., 707
                  State Road, Suite 206, Princeton, New Jersey 08540."

                      (ii)  The Committee shall require that the stock
                  certificates evidencing such shares be held in custody by the
                  Corporation until the restrictions thereon shall have lapsed,
                  and shall require, as a condition of any restricted stock
                  AWARD, that the participant shall have delivered a stock
                  power, endorsed in blank, relating to the Stock covered by
                  such AWARD.

                  (c) Restrictions and Conditions. The shares of restricted
stock awarded pursuant to the Plan shall be subject to the following
restrictions and conditions:

                      (i)   subject to the provisions of this Plan during a
                  period set by the Committee commencing with the date of such
                  AWARD (the "restriction period"), the participant shall not be
                  permitted to sell, transfer, pledge, or assign shares of
                  restricted stock awarded under the Plan. Within these limits
                  the Committee may provide for the lapse of such restrictions
                  in installments where deemed appropriate.

                      (ii)  Except as provided in paragraph (c) of this Section
                  7, the participants shall have, with respect to the shares of
                  restricted stock, all of the rights of a stockholder of the
                  Corporation, including the right to vote the restricted stock
                  and the right to receive any cash dividends. The Committee, in
                  its sole discretion, may permit or require the payment of cash
                  dividends to be deferred and, if the Committee so determines,
                  reinvested in additional restricted stock or otherwise
                  reinvested. Certificates for shares of unrestricted stock
                  shall be delivered to the participant promptly after, and only
                  after, the period of forfeiture shall expire without
                  forfeiture in respect of such shares of restricted stock.

                      (iii) Subject to the provisions of paragraph (c)(iv) of
                  this Section 7, upon termination of employment of any reason
                  during the restriction period, all shares still subject to
                  restriction shall be forfeited by the participant and
                  reacquired by the Corporation.

                                       9
<PAGE>

                      (iv)  In the event of a participant's retirement,
                  permanent disability, or death, or in cases of special
                  circumstances, the Committee may, in its sole discretion, when
                  it finds that a waiver would be in the best interests of the
                  Corporation, waive in whole or in part any or all remaining
                  restrictions with respect to such participant's shares of
                  restricted stock.

                      (v)   Notwithstanding anything in the foregoing to the
                  contrary, upon a Change of Control any and all restrictions on
                  restricted stock shall lapse regardless of the restriction
                  period established by the Committee and all such restricted
                  stock shall become fully vested and nonforfeitable.

          Section 8. Deferred Stock Awards. (a) Stock and Administration. AWARDS
of the right to receive Stock that is not to be distributed to the participant
until after a specified deferral period (such AWARD and the deferred stock
delivered thereunder hereinafter as the context shall require, referred to as
the "deferred stock") may be made either alone or in addition to stock options,
stock appreciation rights, or restricted stock, or other Stock-based awards
granted under the Plan. The Committee shall determine the directors,
consultants, officers and key employees of the Corporation and its subsidiaries
to whom and the time or times at which deferred stock shall be awarded, the
number of shares of deferred stock to be awarded to any participant, the
duration of the period (the "Deferral Period") during which, and the conditions
under which, receipt of the Stock will be deferred, and the terms and conditions
of the AWARD in addition to those contained in paragraph (b) of this Section 8.
In its sole discretion, the Committee may provide for a minimum payment at the
end of the applicable Deferral Period based on a stated percentage of the fair
market value on the date of grant of the number of shares covered by a deferred
stock AWARD. The Committee may also provide for the grant of deferred stock upon
the completion of a specified performance period. The provisions of deferred
stock AWARDS need not be the same with respect to each recipient.

                  (b) Terms and Conditions. Deferred stock AWARDS made pursuant
to this Section 8 shall be subject to the following terms and conditions:

                      (i)   Subject to the provisions of the Plan, the shares to
                  be issued pursuant to a deferred stock AWARD may not be sold,
                  assigned, transferred, pledged or otherwise encumbered during
                  the Deferral Period or Elective Deferral Period (defined
                  below), where applicable, and may be subject to a risk of
                  forfeiture during all or such portion of the Deferral Period
                  as shall be specified by the Committee. At the expiration of
                  the Deferral Period and Elective Deferral Period, share
                  certificates shall be delivered to the participant, or the
                  participant's legal representative, in a number equal to the
                  number of shares covered by the deferred stock AWARD.

                      (ii)  Amounts equal to any dividends declared during the
                  Deferral Period with respect to the number of shares covered
                  by a deferred stock AWARD will be paid to the participant
                  currently, or deferred and deemed to be reinvested in
                  additional deferred stock or otherwise reinvested, as
                  determined at the time of the AWARD by the Committee, in its
                  sole discretion.

                      (iii) Subject to the provisions of paragraph (b)(iv) of
                  this Section 8, upon termination of the relationship with or
                  employment by the Corporation for any reason during the
                  Deferral Period for a given deferred stock AWARD, the deferred
                  stock in question shall be forfeited by the participant.

                                       10
<PAGE>

                      (iv)  In the event of the participant's retirement,
                  permanent disability or death during the Deferral Period (or
                  Elective Deferral Period, where applicable), or in cases of
                  special circumstances, the Committee may, in its sole
                  discretion, when it finds that a waiver would be in the best
                  interests of the Corporation, waive in whole or in part any or
                  all of the remaining deferral limitations imposed hereunder
                  with respect to any or all of the participant's deferred
                  stock. Anything in the Plan to the contrary notwithstanding,
                  upon the occurrence of a Change of Control, the Deferral
                  Period and the Elective Deferral Period with respect to each
                  deferred stock AWARD shall expire immediately and all share
                  certificates relating to such deferred stock AWARDS shall be
                  delivered to each participant or the participant's legal
                  representative.

                      (v)   Prior to completion of the Deferral Period, a
                  participant may elect to defer further the receipt of the
                  deferred stock AWARD for a specified period or until a
                  specified event (the "Elective Deferred Period"), subject in
                  each case to the approval of the Committee and under such
                  terms as are determined by the Committee, all in its sole
                  discretion.

                      (vi)  Each deferred stock AWARD shall be confirmed by a
                  deferred stock agreement or other instrument executed by the
                  Committee and by the participant.

          Section 9. Other Stock-Based Awards. (a) Stock and Administration.
Other AWARDS of the Stock and other AWARDS that are valued in whole or in part
by reference to, or are otherwise based on the Stock ("Other Stock-based
AWARDS"), including (without limitation) performance shares and convertible
debentures, may be granted either alone or in addition to other AWARDS granted
under the Plan. Subject to the provisions of the Plan, the Committee shall have
sole and complete authority to determine the directors, consultants, officers
and key employees of the Corporation and/or any of its subsidiaries to whom and
the time or times at which such Other Stock-based AWARDS shall be made, the
number of shares of the Stock to be awarded pursuant to such Other Stock-based
AWARDS and all other conditions of the Other Stock-based AWARDS. The Committee
may also provide for the grant of the Stock upon the completion of a specified
performance period. The provisions of Other Stock-based AWARDS need not be the
same with respect to each recipient.

                  (b) Terms and Conditions. Other Stock-based AWARDS made
pursuant to this Section 9 shall be subject to the following terms and
conditions:

                      (i)   Subject to the provisions of this Plan, shares or
                  interests in shares subject to Other Stock-based AWARDS made
                  under this Section 9 may not be sold, assigned, transferred,
                  pledged or otherwise encumbered prior to the date on which the
                  shares are issued, or, if later, the date on which any
                  applicable restriction, performance or deferral period lapses.

                      (ii)  Subject to the provisions of this Plan and the Other
                  Stock-based AWARD agreement, the recipients of Other Stock-
                  based AWARDS under this Section 9 shall be entitled to
                  receive, currently or on a deferred basis, interest or
                  dividends or interest or dividend equivalents with respect to
                  the number of shares or interests therein covered by the Other
                  Stock-based AWARDS, as determined at the time of the Other
                  Stock-based AWARDS by the Committee, in its sole discretion,
                  and the Committee may provide that such amounts (if any) shall
                  be deemed to have been reinvested in additional Stock or
                  otherwise reinvested.

                                       11
<PAGE>

                      (iii)  Any Other Stock-based AWARDS under this Section 9
                  and any Stock covered by any such Other Stock-based AWARD may
                  be forfeited to the extent so provided in the Other Stock-
                  based AWARD agreement, as determined by the Committee, in its
                  sole discretion.

                      (iv)   In the event of the participant's retirement,
                  permanent disability or death, or in cases of special
                  circumstances, the Committee may, in its sole discretion, when
                  it finds that a waiver would be in the best interests of the
                  Corporation, waive in whole or in part any or all of the
                  remaining limitations imposed hereunder (if any) with respect
                  to any or all Other Stock-based AWARDS under this Section 9.
                  Anything in the Plan to the contrary notwithstanding, any
                  limitations imposed with respect to any Other Stock-based
                  AWARD under this Section 9, including any provision providing
                  for the forfeiture of any Other Stock-based AWARD under any
                  circumstance, shall terminate immediately upon a Change of
                  Control and the number of shares of or interests in the Stock
                  subject to such Other Stock-based AWARD shall be delivered to
                  the participant (or, in the case of an Other Stock-based AWARD
                  with respect to which such number is not determinable, such
                  number of shares of or interests in the Stock as is determined
                  by the Committee and set forth in the terms of such Other
                  Stock-based AWARD).

                      (v)    Each Other Stock-based AWARD under this Section 9
                  shall be confirmed by an agreement or other instrument
                  executed by the Corporation and by the participant.

                      (vi)   The Stock or interests therein (including
                  securities convertible into the Stock) paid or awarded on a
                  bonus basis under this Section 9 shall be issued for no cash
                  consideration; the Stock or interests therein (including
                  securities convertible into the Stock) purchased pursuant to a
                  purchase right awarded under this Section 9 shall be priced at
                  least 50% of the fair market value of the Stock on the date of
                  grant.

                      (vii)  The Committee, in its sole discretion, may impose
                  such restrictions on the transferability of Other Stock-based
                  Awards as it deems appropriate. Any such restrictions shall be
                  set forth in the written agreement between the Corporation and
                  the optionee with respect to such Award.

                      (viii) Each Other Stock-based AWARD to an Insider
                  under this Section 9 shall be subject to all of the
                  limitations and qualifications that may be required by Section
                  16 of the Exchange Act and all of the rules and regulations
                  promulgated thereunder.

          Section 10. Transfer, Leave of Absence, etc. For purposes of the Plan:
(a) a transfer of an employee from the Corporation to a subsidiary, or vice
versa, or from one subsidiary to another; (b) a leave of absence, duly
authorized in writing by the Corporation, for military service or sickness, or
for any other purposes approved by the Corporation if the period of such leave
does not exceed 90 days; and (c) a leave of absence in excess of 90 days, duly
authorized in writing by the Corporation, shall not be deemed a termination of
employment.

          Section 11. Amendments and Termination. The Board may amend, alter, or
discontinue the Plan, but no amendment, alteration, or discontinuation shall be
made which would impair the rights of an optionee or participant under any AWARD
theretofore granted, without the optionee's or participant's consent, or which
without the approval of the shareholders would:

                                       12
<PAGE>

                  (a) except as is provided in Section 3 of the Plan, increase
          the total number of shares available for the purpose of the Plan;

                  (b) subsequent to the date of grant decrease the option price
          of any stock option to less than 100% (110% in the case of a 10% owner
          of an incentive stock option) of the fair market value on the date of
          the granting of the option;

                  (c) extend the maximum option period under Section 5(b) of the
          Plan; or

                  (d) otherwise materially increase the benefits accruing to
          participants under, or materially modify the requirements as to
          eligibility for participation in, the Plan.

                  The Committee may amend the terms of any AWARD theretofore
granted, prospectively or retroactively, but no such amendment shall impair the
rights of any holder without such holder's consent. Notwithstanding the
foregoing, the Board or the Committee may, in its discretion, amend the Plan or
terms of any outstanding AWARD held by a person then subject to Section 16 of
the Exchange Act without the consent of any holder in order to preserve
exemptions under said Section 16 which are or become available from time to time
under rules of the Securities and Exchange Commission. The Committee may also
substitute new stock options for previously granted options, including
previously granted options having higher option prices.

          Section 12. Unfunded Status of the Plan. The Plan is intended to
constitute an "unfunded" plan for incentive and deferred compensation. With
respect to any payments not yet made to a participant or optionee by the
Corporation, nothing contained herein shall give any such participant or
optionee any rights that are greater than those of a general creditor of the
Corporation. In its sole discretion, the Committee may authorize the creation of
trusts or other arrangements to meet the obligations created under the Plan to
deliver the Stock; provided, however, that the existence of such trusts or other
arrangements is consistent with the unfunded status of the Plan.

          Section 13. Employment at Will. Nothing contained in the Plan, or in
any option granted pursuant to the Plan, nor in any agreement made pursuant to
the Plan, shall confer upon any optionee any right with respect to continuance
of employment by the Company or its subsidiaries, nor interfere in any way with
the right of the Company or its subsidiaries to terminate the optionee's
employment at will or change the optionee's compensation at any time.

          Section 14. General Provisions. (a) The Committee may require each
participant purchasing shares pursuant to an AWARD under the Plan to represent
to and agree with the Corporation in writing that such participant is acquiring
the shares without a view to distribution thereof. The certificates for such
shares may include any legend which the Committee deems appropriate to reflect
any restrictions on transfer.

                  (b) All certificates for shares of the Stock delivered under
the Plan pursuant to any AWARD shall be subject to such stock-transfer orders
and other restrictions as the Committee may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Stock is then listed, and any applicable
Federal or state securities law, and the Committee may cause a legend or legends
to be put on any such certificates to make appropriate reference to such
restrictions.

                                       13
<PAGE>

                  (c) Recipients of shares of restricted stock, deferred stock
and other Stock-based awards under the Plan (other than options) shall not be
required to make any payment or provide consideration other than the rendering
of services.

                  (d) AWARDS granted under the Plan may, in the discretion of
the Committee, be granted either alone or in addition to, in tandem with, or in
substitution for, any other AWARDS granted under the Plan. If AWARDS are granted
in substitution for other AWARDS, the Committee shall require the surrender of
such other AWARDS in consideration for the grant of the new AWARDS. AWARDS
granted in addition to or in tandem with other AWARDS may be granted either at
the same time as or at a different time from the grant of such other AWARDS. The
exercise price of any option or the purchase price of any Other Stock-based
AWARD in the nature of a purchase right:

                      (i)   granted in substitution for outstanding AWARDS or in
                  lieu of any other right to payment by the Corporation shall be
                  the fair market value of shares at the date such substitute
                  AWARDS are granted or shall be such fair market value at that
                  date reduced to reflect the fair market value of the AWARDS or
                  other right to payment required to be surrendered by the
                  participant as a condition to receipt of the substitute AWARD;
                  or

                      (ii)  retroactively granted in tandem with outstanding
                  AWARDS shall be either the fair market value of shares at the
                  date of grant of later AWARDS or the fair market value of
                  shares at the date of grant of earlier AWARDS.

                  (e) Nothing contained in this Plan shall prevent the Board of
Directors from adopting other or additional compensation arrangements, subject
to shareholder approval if such approval is required; and such arrangements may
be either generally applicable or applicable only in specific cases.

          Section 15. Taxes. (a) Participants shall make arrangements
satisfactory to the Committee regarding payment of any Federal, state, or local
taxes of any kind required by law to be withheld with respect to any income
which the participant is required, or elects, to include in his gross income and
the Corporation and its subsidiaries shall, to the extent permitted by law, have
the right to deduct any such taxes from any payment of any kind otherwise due to
the participant. Anything contained herein to the contrary notwithstanding, the
Committee may, in its sole discretion, authorize acceptance of Stock received in
connection with the grant or exercise of an AWARD or otherwise previously
acquired in satisfaction of withholding requirements.

                  (b) Notwithstanding any provisions to the contrary in this
Section 15, an Insider may only satisfy tax withholding requirements with the
settlement of a stock appreciation right or with shares of the Company's Common
Stock if he has held such stock or stock appreciation right for at least six (6)
months and (i) makes an election and settlement during a Window Period; or (ii)
makes an election in advance during a Window Period to take effect the next
following Window Period, or (iii) the cash settlement of the tax obligation
occurs no earlier than six (6) months after the date of an irrevocable election
made by an Insider, which election need not occur during a Window Period;
provided that the Company shall have been subject to Section 13(a) of the
Exchange Act for at least a year prior to any such election and has filed all
reports and statements required to be filed thereunder for that year.

          Section 16. Effective Date of the Plan. The Plan shall be effective on
the date it is approved by the vote of the holders of a majority of all
outstanding shares of Common Stock.

                                       14
<PAGE>

          Section 17. Term of the Plan. No AWARD shall be granted pursuant to
the Plan after May 18, 2010, but AWARDS theretofore granted may extend beyond
that date.

                                       15

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