Document:

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                                                                    EXHIBIT 10.2

                                   ALTEON INC.

                         AMENDED 1995 STOCK OPTION PLAN

         1. Purposes of Plan. The purposes of this Stock Option Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business. Options granted under the Plan may be Incentive Stock Options or
Non-Qualified Stock Options, as determined by the Administrator at the time of
grant of an Option.

         2. Certain Definitions. As used herein, the following definitions shall
apply:

                  2.1. "Administrator" means the Board or a Committee.

                  2.2. "Board" means the Board of Directors of the Company.

                  2.3. "Code" means the Internal Revenue Code of 1986, as
amended, and the regulations thereunder.

                  2.4. "Committee" means a Committee appointed by the Board in
accordance with Section 4.1 of the Plan.

                  2.5. "Common Stock" means the Common Stock of the Company.

                  2.6. "Company" means Alteon Inc., a Delaware corporation.

                  2.7. "Consultant" means any person, including an advisor, who
is engaged by the Company or any Subsidiary to render services and is
compensated for such services. The payment of a director's fee by the Company
shall not render a director a Consultant within the meaning of this section.

                  2.8. "Date of Grant" means the date on which an Option is
granted under the Plan pursuant to Section 12 of the Plan.

                  2.9. "Employee" means any person, including officers and
directors, employed by the Company or any Subsidiary of the Company. The payment
of a director's fee by the Company shall not be sufficient to constitute
employment by the Company.

                  2.10. @Exchange Act" means the Securities Exchange Act of
1934, as amended.

                  2.11."Fair Market Value" means, as of any date, the value of
the Common Stock determined as follows:

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                           (a) If the Common Stock is listed on any established
stock exchange or a national market system including without limitation the
National Market System of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such system or exchange for such date, or if such date is
not a trading day, the last market trading day prior to such date as reported in
the Wall Street Journal or such other source as the Administrator deems
reliable;

                           (b) If the Common Stock is quoted on the NASDAQ
System (but not on the National Market System thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high and low asked prices for the
Common Stock as quoted on such System or by such dealer for such date, or if
such date is not a trading day for the last market trading day prior to such
date; or

                           (c) In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Administrator.

                  2.12. "Incentive Stock Option" means an Option which qualifies
as an incentive stock option within the meaning of Section 422 of the Code.

                  2.13. "Non-Compensated Directors" means directors of the
Company who are not Consultants who render services more than one (1) day per
week or full-time Employees.

                  2.14. "Non-Qualified Stock Option" means an Option which does
not qualify as an Incentive Stock Option.

                  2.15. "Option" means a stock option granted pursuant to the
Plan.

                  2.16. "Option Agreement" means the agreement which must be
entered into between the Optionee and the Company upon the grant of an Option by
the Company to the Optionee as approved by the Administrator pursuant to Section
15 of the Plan.

                  2.17. "Optionee" means a person who receives an Option.

                  2.18. "Parent" means a "parent corporation", whether now or
hereafter existing, as defined in Section 424(e) of the Code.

                  2.19. "Plan" means this 1995 Stock Option Plan.

                  2.20. "Share" means a share of the Common Stock, as adjusted
in accordance with Section 11 of the Plan.

                  2.21. "Subsidiary" means a "subsidiary corporation", whether
now or hereafter existing, as defined in Section 424(f) of the Code.

         3. Stock Subject to the Plan. Subject to the provisions of Section 11
of the Plan, the

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maximum aggregate number of Shares which may be optioned and sold under the Plan
is 7,000,000 Shares and the maximum number of Shares which may be covered by
Options granted to any employee in any calendar year may not exceed 500,000
Shares. The Shares may be authorized, but unissued, or reacquired Common Stock.
If an Option should expire or become unexercisable for any reason without having
been exercised in full, the unpurchased Shares which were subject thereto shall,
unless the Plan shall have been terminated, become available for future grant
under the Plan.

         4. Administration of the Plan.

                  4.1. Procedure.

                           (a) Administration With Respect to Directors and
Officers. With respect to grants of Options to Employees and Consultants who are
also officers or directors of the Company, the Plan shall be administered, and
grants of Options shall be approved, by (i) the Board or (ii) a Committee
designated by the Board to administer the Plan, which Committee shall be
constituted in such a manner as (A) to permit transactions under the Plan to
qualify for exemption from the provisions of Section 16(b) of the Exchange Act
pursuant to Rule 16b-3 promulgated thereunder ("Rule 16b-3") and (B) to satisfy
all legal requirements relating to administration of stock option plans and the
Code (the "Applicable Laws"). Once appointed, such Committee shall continue to
serve in its designated capacity until otherwise directed by the Board. From
time to time the Board may increase the size of the Committee and appoint
additional members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies, however caused, and remove
all members of the Committee and thereafter directly administer the Plan.

                           (b) Administration With Respect to Consultants and
Employees Who Are Not Directors or Officers. With respect to grants of Options
to Employees or Consultants who are neither directors nor officers of the
Company, the Plan shall be administered by (i) the Board or (ii) a Committee
designated by the Board, which Committee shall be constituted in such a manner
as to satisfy the Applicable Laws. Once appointed, such Committee shall continue
to serve in its designated capacity until otherwise directed by the Board. From
time to time the Board may increase the size of the Committee and appoint
additional members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies, however caused, and remove
all members of the Committee and thereafter directly administer the Plan, all to
the extent permitted by the Applicable Laws.

                           (c) Formula Awards to Non-Compensated Directors.

                                    (i) On the date of a Non-Compensated
Director's election or reelection to the Board at an annual meeting of
shareholders of the Company and on each of the dates of the Company's two annual
meetings of shareholders following the date of such election, (provided that on
such date the Non-Compensated Director is serving as a director of the Company),
such Non-Compensated Director shall be granted a Non-Qualified Stock Option to
purchase 20,000 Shares. Each such Option shall vest and become exercisable on
the date of the Company's first annual meeting of shareholders following the
date of its grant, provided that on such date the Non-Compensated Director is
serving as a director of the Company.

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                                    (ii) If a Non-Compensated Director is
elected or appointed to the Board other than at an annual meeting of
shareholders, on the date of his election he shall be granted a Non-Qualified
Stock Option to purchase the number of Shares determined by multiplying 1,667 by
the number of whole or partial months from the date of his election or
appointment to the Company's next annual meeting of shareholders. For purposes
of the preceding sentence, a month shall mean a period of 30 consecutive days.
In addition, on the dates of each of the Company's annual meetings of
shareholders which occur during the term to which he was so elected or appointed
(provided that on such date he is serving as a director of the Company), such
Non-Compensated Director shall be granted a Non-Qualified Stock Option to
purchase 20,000 Shares. Each Option granted pursuant to this subsection
4.1(c)(ii)shall vest and become exercisable on the date of the Company's first
annual meeting of shareholders following the date of its grant, provided that on
such date the Non-Compensated Director is serving as a director of the Company.

                                    (iii) Each Non-Compensated Director who held
such office on January 1, 1999 shall be granted a Non-Qualified Stock Option to
purchase 3,667 Shares. Each Non-Compensated Director who held such office on
January 1, 1999 and whose term continues beyond the date of the Company's first
annual meeting of shareholders following January 1, 1999 shall be granted a
Non-Qualified Stock Option to purchase 8,800 Shares on the date of the Company's
first annual meeting of shareholders following January 1, 1999 (provided that on
such date the Non-Compensated Director is serving as a director of the Company).
Each Non-Compensated Director who held such office on January 1, 1999 and whose
term continues beyond the date of the Company's second annual meeting of
shareholders following January 1, 1999 shall be granted a Non-Qualified Stock
Option to purchase 8,800 Shares on the date of the Company's second annual
meeting of shareholders following January 1, 1999 (provided that on such date
the Non-Compensated Director is serving as a director of the Company). Each
Option granted pursuant to this subsection 4.1(c)(iii) shall vest and become
exercisable on the date of the Company's first annual meeting of shareholders
following the date of its grant, provided that on such date the Non-Compensated
Director is serving as a director of the Company.

                                    (iv) Options granted pursuant to this
Section 4.1(c) shall have a per share exercise price equal to the Fair Market
Value per share on the Date of Grant and shall expire ten years from the Date of
Grant. Once an Option granted pursuant to this Section, or any portion thereof,
has become exercisable, it shall remain exercisable regardless of whether or not
the Non-Compensated Director holding the Option later ceases to be a director of
the Company.

                                    (v) If the granting of any option on the
dates provided in this Section 4.1(c) would cause the number of Shares as to
which options have been granted pursuant to the Plan to exceed the number set
forth in Section 3 of the Plan, the grant of such option shall be deferred to
the first date on which an option may be granted without exceeding the
limitation set forth in Section 3 and such date shall be the Date of Grant of
the option.

                           (d) Multiple Administrative Bodies. The Plan may be
administered by different bodies with respect to directors, non-director
officers, and Employees and Consultants who are neither directors nor officers.

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                  4.2. Powers of the Administrator. Subject to the provisions of
the Plan and in the case of a Committee, the specific duties delegated by the
Board to such Committee, the Administrator, acting in its sole discretion, shall
have the power and authority to supervise the administration of the Plan and to
take all action necessary or desirable in order to carry out the provisions of
the Plan including, without limitation, the power and authority:

                           (a) to select the Consultants and Employees to whom
Options may from time to time be granted hereunder;

                           (b) to determine whether and to what extent Options
are granted hereunder;

                           (c) to determine the number of shares of Common Stock
to be covered by each such Option granted hereunder;

                           (d) to approve forms of agreement for use under the
Plan;

                           (e) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option granted hereunder
(including, but not limited to, the exercise price, the vesting schedule, and
any restrictions or limitations regarding any Option and/or the Shares relating
thereto) based in each case on such factors as the Administrator shall
determine, in its sole discretion;

                           (f) to make changes to any outstanding Option,
including, without limitation, to reduce the exercise price, to accelerate the
vesting schedule, or to extend the expiration date, provided that no such change
shall impair the rights of any Optionee under any grant previously made without
such Optionee's consent;

                           (g) to determine whether and when an Optionee has
ceased to have an employment or consulting relationship with the Company;

                           (h) to buy out for a payment in cash or Shares, an
Option previously granted, based on such terms and conditions as the
Administrator shall establish and the Optionee shall accept.

                  4.3. Effect of Committee's Decision. The Administrator shall
have the power and authority to establish, amend, and revoke rules and
regulations for administration of the Plan. All decisions, determinations and
interpretations of the Administrator shall be final and binding on all holders
of Options.

         5. Eligibility. Non-Qualified Stock Options may be granted to
Non-Compensated Directors (but only pursuant to Section 4.1(c)), Employees, and
Consultants. Incentive Stock Options may be granted only to Employees. An
individual who has been granted an Option may, if otherwise eligible, be granted
an additional Option or Options.

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         6. Term of Plan. The Plan shall become effective upon the earlier to
occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company as described in Section 18 of the Plan. It shall
continue in effect for a term of ten (10) years unless sooner terminated under
Section 13 of the Plan.

         7. Exercise Period of Option.

                  7.1. Term. Each Option shall vest and become exercisable as
provided in the Option Agreement. The term of each Option shall be the term
stated in the Option Agreement; provided, however, that in no case shall the
term shall be more than ten (10) years from the Date of Grant. However, in the
case of an Incentive Stock Option granted to an Optionee who, at the time the
Option is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Parent or Subsidiary,
the term of the Option shall be no more than five (5) years from the Date of
Grant.

                  7.2. Termination of Employment. If an Optionee ceases to be an
Employee of the Company for any reason, except death or disability within the
meaning of Section 422(c) of the Code, an Incentive Stock Option, to the extent
unexercised and exercisable by the Optionee on the date on which the Optionee
ceased to be an Employee, may be exercised by the Optionee within three (3)
months after the date on which the Optionee's employment terminated, but in any
event no later than the date of expiration of the Option term. If the Optionee's
employment is terminated because of the death or disability of the Optionee
within the meaning of Section 422(c) of the Code, an Incentive Stock Option, to
the extent unexercised and exercisable by the Optionee on the date on which the
Optionee ceased to be an Employee, may be exercised by the Optionee (or the
Optionee's legal representative) at any time prior to the expiration of twelve
(12) months from the date the Optionee's employment terminated, but in any event
no later than the date of expiration of the Option term. An Optionee's
employment shall be deemed to have terminated on account of death if the
Optionee dies within three (3) months after the Optionee's termination of
employment.

         8. Option Exercise Price and Consideration.

                  8.1. Exercise Price. The per Share exercise price for the
Shares to be issued pursuant to exercise of an Option (other than Options
granted pursuant to Section 4.1(c)) shall be such price as is determined by the
Administrator, provided that in the case of an Incentive Stock Option (a)
granted to an Employee who, at the time of the grant of such Incentive Stock
Option, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the per
Share exercise price shall be no less than 110% of the Fair Market Value per
Share on the Date of Grant and (b) granted to any other Employee, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the Date of Grant.

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                  8.2. Consideration. The consideration to be paid for the
Shares to be issued upon exercise of an Option, including the method of payment,
shall be determined by the Administrator and may consist entirely of (i) cash,
(ii) check, (iii) promissory note, (iv) other Shares which have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised, (v) authorization from the
Company to retain from the total number of Shares as to which the Option is
exercised that number of Shares having a Fair Market Value on the date of
exercise equal to the exercise price for the total number of Shares as to which
the Option is exercised, (vi) delivery of a properly executed exercise notice
together with irrevocable instructions to a broker to deliver promptly to the
Company the amount of sale or loan proceeds required to pay the exercise price,
(vii) any combination of the foregoing methods of payment, or (viii) such other
consideration and method of payment for the issuance of Shares to the extent
permitted under the Applicable Laws.

         9. Exercise of Option.

                  9.1. Procedure for Exercise. An Option shall be deemed to be
exercised when written notice of such exercise has been given to the Company in
accordance with the terms of the Option Agreement by the person entitled to
exercise the Option and full consideration for the Shares with respect to which
the Option is exercised has been received by the Company. Until the issuance (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company) of the stock certificate evidencing
such Shares, no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
stock certificate promptly upon exercise of the Option. No adjustment will be
made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued. An Option may not be exercised for a
fraction of a Share.

                  9.2. Limitations on Exercise.

                           (a) Shares shall not be issued pursuant to the
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and
the requirements of the National Association of Securities Dealers or any stock
exchange upon which the Shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance. As a
condition to the exercise of an Option, the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise
that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned
relevant provisions of law.

                           (b) The Administrator may specify a reasonable
minimum number of shares that may be purchased on any exercise of an Option,
provided that such minimum number will not prevent the Optionee from exercising
that full number of Shares as to which the Option is then exercisable.

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                  9.3. Withholding Obligations. Prior to issuance of the Shares
upon exercise of an Option, the Optionee shall pay or make adequate provision
for any federal or state withholding obligations of the Company, if applicable,
in a form and manner satisfactory to the Administrator.

         10. Transferability of Options. Except as otherwise provided in this
Section 10, Options may not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner other than by will or by the laws of
descent and distribution and during the lifetime of the Optionee shall be
exercisable only by the Optionee. If the Administrator so determines,
Non-Qualified Stock Options may be transferable to (a) the Optionee's spouse,
parents, siblings, children or grandchildren (including stepparents,
stepsiblings, stepchildren, and stepgrandchildren), (b) trusts for the benefit
of the Optionee and/or such family members, and (c) partnerships whose only
partners are the Optionee and/or such family members, provided that (i) no
consideration is paid for such transfer, (ii) the terms and conditions of the
Option which are applicable to the Optionee prior to the transfer of the Option
shall continue to apply to the transferee; and (iii) the Option Agreement
pertaining to each transferable option shall set forth the applicable transfer
restrictions.

         11. Adjustments. Unless the terms of an Option Agreement provide
otherwise:

                  11.1. Change in Capitalization. Subject to any required action
by the shareholders of the Company, the number of shares of Common Stock covered
by each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration." Such adjustment shall be made by the
Administrator, whose determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an Option.

                  11.2. Merger without Change of Control. After a merger of one
or more corporations or other entities with or into the Company or after a
consolidation of the Company and one or more corporations or other entities in
which the shareholders of the Company immediately prior to such merger or
consolidation own after such merger or consolidation shares representing at
least fifty percent (50%) of the voting power of the Company or the surviving or
resulting corporation or other entity, as the case may be, each holder of an
outstanding Option shall, at no additional cost, be entitled upon exercise of
such Option to receive in lieu of the shares of Common Stock as to which such
Option was exercisable immediately prior to such event, the number and class of
shares of stock or other securities, cash or property (including, without
limitation, shares of

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stock or other securities of another corporation or Common Stock) to which such
holder would have been entitled pursuant to the terms of the agreement of merger
or consolidation if, immediately prior to such merger or consolidation, such
holder had been the holder of record of a number of shares of Common Stock equal
to the number of shares for which such Option shall be so exercised.

                  11.3. Sale or Merger with Change of Control. If the Company is
merged with or into or consolidated with another corporation or other entity
under circumstances where the shareholders of the Company immediately prior to
such merger or consolidation do not own after such merger or consolidation
shares representing at least fifty percent of the voting power of the Company or
the surviving or resulting corporation or other entity, as the case may be, or
if one hundred percent of the then outstanding voting shares of the Company are
sold or otherwise transferred, or if the Company is liquidated, or sells or
otherwise disposes of substantially all of its assets to another corporation or
other entity while unexercised Options remain outstanding under the Plan, (a)
subject to the provisions of clause (c) below, after the effective date of such
merger, consolidation, liquidation, sale or disposition, as the case may be,
each holder of an outstanding Option shall be entitled, upon exercise of such
Option, to receive, in lieu of the shares of Common Stock as to which Option was
exercisable immediately prior to such event, the number and class of shares of
stock or other securities, cash or property (including, without limitation,
shares of stock or other securities of another corporation or common stock) to
which such holder would have been entitled pursuant to the terms of the merger,
consolidation, liquidation, sale or disposition if, immediately prior to such
event, such holder had been the holder of a number of shares of Common Stock
equal to the number of shares as to which such Option shall be so exercised; (b)
the Administrator may accelerate the time for exercise of some or all
unexercised and unexpired options so that from and after a date prior to the
effective date of such merger, consolidation, liquidation, sale or disposition,
as the case may be, specified by the Administrator such accelerated options
shall be exercisable in full; or (c) all outstanding Options may be cancelled by
the Administrator as of the effective date of any such merger, consolidation,
liquidation, sale or disposition provided that (i) notice of such cancellation
shall be given to each holder of an Option and (ii) each holder of an Option
shall have the right to exercise such Option to the extent that the same is then
exercisable or, if the Administrator shall have accelerated the time for
exercise of all unexercised and unexpired Options, in full during the 10-day
period preceding the effective date of such merger, consolidation, liquidation,
sale or disposition.

                  11.4. Miscellaneous. Adjustments under this Section 11 shall
be determined by the Administrator, and such determinations shall be conclusive.
No fractional shares of Common Stock shall be issued under the Plan on account
of any adjustment specified above.

         12. Time of Granting Options. The Date of Grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Administrator.
Notice of the determination shall be given to each Employee or Consultant to
whom an Option is granted within a reasonable time after the date of such grant.

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         13. Amendment and Termination of the Plan.

                  13.1. Amendment and Termination. The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made which would impair the rights of any
Optionee under any grant theretofore made without the Optionee's consent. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 under
the Exchange Act or with Section 422 of the Code (or any other applicable law or
regulation, including the requirements of the National Association of Securities
Dealers or an established stock exchange), the Company shall obtain shareholder
approval of any Plan amendment in such a manner and to such a degree as
required.

                  13.2. Effect of Amendment or Termination. Any such amendment
or termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if the Plan had not been
amended or terminated unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

         14. Reservation of Shares. The Company, during the term of the Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

         15. Agreements. Options shall be evidenced by written agreements in
such form as the Administrator shall approve from time to time. Each Option
shall be designated in the Option Agreement as either an Incentive Stock Option
or a Non-Qualified Stock Option as the Administrator shall determine. However,
notwithstanding such designations, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any Optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Non-Qualified Stock Options.
For purposes of the preceding sentence, Incentive Stock Options shall be taken
into account in the order in which they were granted, and the Fair Market Value
of the Shares shall be determined as of the time the Option with respect to such
Shares is granted.

         16. No Additional Rights. The Plan shall not confer upon any Optionee
any right with respect to continuation of an employment or consulting
relationship with the Company, nor shall it interfere in any way with his right
or the Company's right to terminate his employment or consulting relationship at
any time, with or without cause.

         17. Rule 16b-3. Grants of Options to persons subject to Section 16(b)
of the Exchange Act must qualify for exemption from Section 16(b) of the
Exchange Act pursuant to Rule 16b-3. Options granted to such persons shall
contain such additional conditions or restrictions as may be required thereunder
to qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

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         18. Shareholder Approval. Continuance of the Plan shall be subject to
approval by the shareholders of the Company within twelve (12) months after the
date the Plan is adopted. Such shareholder approval shall be obtained in the
degree and manner required under applicable state and federal law.

                                    * * * * *

As amended through June 5 2001<PAGE>

                                                                   Exhibit 10.23

                                December 3, 2001

Mr. Kenneth I. Moch
68 Willow Avenue
Larchmont, NY 10538

Dear Ken:

This letter will confirm certain matters related to your employment by Alteon
Inc. (the "Company") and shall constitute an amendment to your Amended and
Restated Employment Agreement with the Company dated as of December 15, 1999
(the "Employment Agreement").

Your Term of Employment, as defined in Paragraph 1 of your Employment Agreement,
is due to expire on December 14, 2001. Assuming satisfactory performance of your
obligations under your Employment Agreement until such time, the Term of
Employment will, effective December 15, 2001, be extended for an additional
three years to December 15, 2004.

In connection with this extension of your employment agreement, on October 17,
2001 the Compensation Committee of the Board approved a grant to you of options
to purchase 500,000 shares of the Company's common stock at an exercise price of
$2.60 per share, which was the fair market value of the stock on such date. The
options are subject to the terms set forth in the attached resolutions of the
Compensation Committee authorizing such grant.

Paragraph 20 of your Employment Agreement ("General") is amended to include
reference to the new stock option grant agreement and this letter as part of the
"entire agreement," with respect to the subject matter of your employment by the
Company under these agreements. Except as modified by this letter, the terms of
all the foregoing enumerated agreements shall remain in full force and effect.

If the foregoing is acceptable to you, please indicate your agreement by signing
and returning the enclosed copy of this letter.

                                   Sincerely,

Accepted and Agreed this 3rd
Day of December 2001

         /s/ Kenneth I. Moch
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<PAGE>
                                                                   Exhibit 10.23

                                   ALTEON INC.

                       COMPENSATION COMMITTEE RESOLUTIONS

                            Adopted October 17, 2001

RESOLVED, that, in connection with the extension of his employment agreement,
the Company grant to Mr. Moch an incentive stock option (or to the extent that
such option does not qualify as an incentive stock option, a non-qualified stock
option), pursuant to the Company's 1995 Stock Option Plan (the "Plan"), to
purchase 500,000 shares of common stock of the Company with an exercise price
per share equal to such stock's current fair market value as determined under
the Plan. Such option shall be in the form of, and on such terms and conditions
as provided in, the Company's standard form of Stock Option Grant Agreement
currently in effect with such additional provisions as contemplated by Section
4(d) of Mr. Moch's employment agreement. Such Stock Option Grant Agreement shall
provide, on condition that Mr. Moch is employed by the Company on the relevant
vesting dates, that option shares shall vest as follows:

                           (1) 300,000 shares shall vest over a thirty-six month
period at the rate of 8,333 shares on the first day of each calendar month
commencing as of January 1, 2002; and

                           (2) 200,000 shares shall vest in a lump sum on
December 14, 2006, provided that such shares shall be subject to accelerated
vesting, on December 14, 2004, accordingly to the following terms. The average
fair market value for a share of the Company's common stock (measured as
provided under the Plan) shall be determined for each of the trading days during
the six (6) month period ending on December 1, 2004. If the average share value
for such period is below $12 then no options shall vest early. If such value is
$12 or more, then 50,000 options shall vest early for each full dollar that such
value exceeds $11, such that all 200,000 options shall vest early if such value
equals or exceeds $15.

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