Document:

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                                                                     EXHIBIT 4.4

                         TARRAGON REALTY INVESTORS, INC.

              CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RELATIVE
             PARTICIPATING OR OPTIONAL OR OTHER SPECIAL RIGHTS, AND
             QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS THEREOF OF
                                  SPECIAL STOCK
                     BY RESOLUTION OF THE BOARD OF DIRECTORS

         We, William S. Friedman, President, and Kathryn Mansfield, Secretary of
TARRAGON REALTY INVESTORS, INC., a corporation organized and existing under the
Business Corporation Law of the State of Nevada, in accordance with the
provisions of Section 78.195 of the Nevada Revised Statutes thereof, DO HEREBY
CERTIFY:

                  THAT, pursuant to the authority conferred upon the Board of
         Directors by the Articles of Incorporation of TARRAGON REALTY
         INVESTORS, INC. (the "Corporation"), and pursuant to the provisions of
         NRS 78.1955 (which section provides that no stockholder action is
         required in order to effectuate this designation), said Board of
         Directors by unanimous written consent dated February 25, 2000, adopted
         certain recitals and resolutions providing for the designations,
         preferences and relative participating, optional or other special
         rights and qualifications, limitations or restrictions thereof, of a
         series of Special Stock of the Corporation, specifically the 10%
         Cumulative Preferred Stock, which recitals and resolutions are as
         follows:

                  WHEREAS, Article Fourth of the Articles of Incorporation of
         the Corporation authorizes the Corporation to issue not more than
         10,000,000 shares of Special Stock, $.01 par value per share (the
         "Special Stock") and 20,000,000 shares of Common Stock, $0.01 par value
         per share (the "Common Stock"), which Special Stock may be issued from
         time to time in one or more series and shall be designated as the Board
         of Directors may determine to have such voting powers, preferences,
         limitations and relative rights with respect to the shares of each
         series of the class of Special Stock of the Corporation as expressly
         provided in a resolution or resolutions providing for the issuance of
         such series adopted by the Board of Directors which is vested with the
         authority in respect thereof; and

                  WHEREAS, no shares of such Special Stock have been previously
         designated hereof; and

                  WHEREAS, the Board of Directors now desires to amend the
         Articles of Incorporation to designate one series of the Special Stock.

                  NOW, THEREFORE, BE IT RESOLVED, that pursuant to the authority
         granted to the Board of Directors by Article Fourth of the Articles of
         Incorporation, as amended, the Board of Directors hereby further amends
         the Articles of Incorporation to provide for the issuance of one single
         series of Special Stock consisting of the number of shares in such
         series as set forth below and, subject to the provisions of Article
         Fourth of the Articles of Incorporation, as amended, of the
         Corporation, hereby fixes and determines with respect to such series
         the following designations, preferences and relative participating,
         optional or other special rights, if any, and qualifications,
         limitations or restrictions thereof:

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                  1. DESIGNATION. The distinctive designation of such series
         shall be the 10% Cumulative Preferred Stock and each share of the 10%
         Cumulative Preferred Stock shall have a par value of $0.01 per share
         and a preference on liquidation under paragraph 6 below of up to $12
         per share. The 10% Cumulative Preferred Stock is sometimes referred to
         herein as the "Preferred Stock."

                  2. NUMBER OF SHARES. The number of shares which shall
         constitute the 10% Cumulative Preferred Stock shall be such number as
         may actually be issued by the Corporation, not to exceed a maximum of
         2,500,000 shares, which number may be decreased (but not below the
         number then outstanding), from time to time by the Board of Directors,
         subject to the provisions hereof.

                  3. DIVIDENDS AND DIVIDEND RATE. Holders of record on the
         fifteenth day of each March, June, September and December of each year
         of shares of the 10% Cumulative Preferred Stock shall be entitled to
         receive dividends, when and as declared by the Board of Directors of
         the Corporation and to the extent permitted under the Nevada General
         Corporation Law, payable quarterly on each March 31, June 30, September
         30 and December 31 of each year, beginning on September 15, 2000 (each
         a "Dividend Reference Date" and, collectively, the "Dividend Reference
         Dates"), in preference to and with priority over dividends upon all
         "Junior Securities" (as defined in paragraph 6 below). Except as
         otherwise provided herein, dividends on each share of 10% Cumulative
         Preferred Stock will accrue (but not compound) cumulatively on a daily
         basis at the rate per share of ten percent (10%) per annum ($0.30 per
         calendar quarter) from and including the date of issuance to and
         including the date on which the "Redemption Price" (as defined in
         paragraph 4 below) of such share is paid, whether or not such dividends
         have been declared and whether or not there are profits, surplus or
         other funds of the Corporation legally available for the payment of
         such dividends. For purposes of this paragraph 3, the date on which the
         Corporation initially issues any share is its date of issuance,
         regardless of the number of times transfer of such share is made on the
         stock records maintained by or for the Corporation and regardless of
         the number of certificates that may be issued to evidence such share
         (whether by reason of transfer of such share or for any other reason).
         Notwithstanding any other requirement of this paragraph unless the
         holder of the 10% Cumulative Preferred Stock requests of the
         Corporation payment of dividends in a form other than cash, any and all
         quarterly dividends on the 10% Cumulative Preferred Stock shall be
         satisfied by payment of cash. So long as any shares of 10% Cumulative
         Preferred Stock are outstanding, the Corporation will not declare or
         pay any dividends on Junior Securities (other than dividends in respect
         of Common Stock payable in shares of Common Stock) or make, directly or
         indirectly, any other distribution of any sort in respect of Junior
         Securities, or any payment on account of the purchase or other
         acquisition of the Junior Securities, unless on the date of such
         declaration in the case of a dividend, or on such date of distribution
         or payment, in the case of such distribution or other payment (a) all
         dividends on the 10% Cumulative Preferred Stock for all past
         quarter-yearly dividend periods have been paid in full and the full
         dividends for the then current quarter-yearly period shall have been
         paid or declared in a sum sufficient for the payment thereof set apart,
         and (b) after giving effect to such payment of dividends, other
         distributions, purchase or redemption, the aggregate capital of the
         Corporation applicable to all capital stock of the Corporation then
         outstanding, plus the earned and capital surplus of the Corporation
         shall exceed the aggregate amount payable on involuntary dissolution,
         liquidation or winding up of the Corporation on all shares of the 10%
         Cumulative Preferred Stock and all stock ranking prior to or on a
         parity with the 10% Cumulative Preferred Stock as to dividends or
         assets outstanding after the payment of such dividends, other
         distributions, purchase or redemption. Dividends shall not be paid or
         declared and set apart for payment on any series of Special Stock for
         any dividend period (including the 10% Cumulative Preferred Stock)
         unless dividends have been or are, contemporaneously, paid and declared
         and set apart for payment on

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         all outstanding series of Special Stock entitled thereto for all
         dividend periods terminating on the same or earlier date. If at any
         time the Corporation pays less than the total amount of dividends then
         accrued with respect to the 10% Cumulative Preferred Stock, such
         payment will be distributed ratably among the then holders of 10%
         Cumulative Preferred Stock so that an amount equal is paid with respect
         to each outstanding share.

                  4. REDEMPTION. The Corporation may, at any time after issuance
         thereof and after June 30, 2003 and from time to time thereafter, at
         the election of the Board of Directors of the Corporation redeem any or
         all of the 10% Cumulative Preferred Stock then outstanding by written
         notice given not less than twenty (20) nor more than sixty (60) days
         before the date fixed for redemption (the "Redemption Date"). If
         mailed, such notice shall be deemed to be delivered when deposited in
         the United States Mail, postage prepaid, addressed to the holder of
         shares of 10% Cumulative Preferred Stock at his address as it appears
         on the stock transfer records of the Corporation. Such notice shall set
         forth (a) the shares to be so redeemed, (b) the date fixed for
         redemption, (c) the applicable Redemption Price, and (d) the place at
         which the holder(s) may obtain payment of the applicable Redemption
         Price upon surrender of the share certificate(s). If less than all
         shares of 10% Cumulative Preferred Stock at any time outstanding shall
         be called for redemption, such shares shall be redeemed pro rata by lot
         drawn or other manner deemed fair in the sole discretion of the Board
         of Directors to redeem one or more such shares without redeeming all
         such shares of 10% Cumulative Preferred Stock. If such notice of
         redemption shall have been so mailed, on or before the Redemption Date,
         the Corporation may provide for payment of a sum sufficient to redeem
         the applicable number of shares of 10% Cumulative Preferred Stock
         called for redemption either (i) by setting aside the sum required to
         be paid as the Redemption Price by the Corporation, separate and apart
         from its other funds, in trust for the account of the holder(s) of the
         shares of 10% Cumulative Preferred Stock to be redeemed or (ii) by
         depositing such sum in a bank or trust company (either located in the
         state where the principal executive office of the Corporation is
         maintained, such bank or trust company having a combined surplus of at
         least $10,000,000 according to its latest statement of condition, or
         such other bank or trust company as may be permitted by the Articles of
         Incorporation, as amended, or by law) as a trust fund, with irrevocable
         instructions and authority to the bank or trust company to give or
         complete the notice of redemption and to pay, on or after the
         Redemption Date, the applicable Redemption Price on surrender of
         certificates evidencing the share(s) of 10% Cumulative Preferred Stock
         so called for redemption and, in either event, from and after the
         Redemption Date (A) the share(s) of 10% Cumulative Preferred Stock
         deemed to be redeemed, (B) such setting aside or deposit shall be
         deemed to constitute full payment for such share(s), (C) such share(s)
         so redeemed shall no longer be deemed to be outstanding, (D) the
         holder(s) thereof shall cease to be a stockholder of the Corporation
         with respect to such share(s), and (E) such holder(s) shall have no
         rights with respect thereto except the right to receive their
         proportionate share of the funds set aside pursuant hereto or deposited
         upon surrender of their respective certificates. Any interest on the
         funds so deposited shall be paid to the Corporation. Any and all such
         redemption deposits shall be irrevocable except to the following
         extent: any funds so deposited which shall not be required for the
         redemption of any shares of 10% Cumulative Preferred Stock because of
         any prior sale or purchase by the Corporation other than through the
         redemption process, subsequent to the date of deposit but prior to the
         Redemption Date, shall be repaid to the Corporation forthwith and any
         balance of the funds so deposited and unclaimed by the holder(s) of any
         shares of 10% Cumulative Preferred Stock entitled thereto at the
         expiration of one calendar year from the Redemption Date shall be
         repaid to the Corporation upon its request or demand therefor and after
         any such repayment the holder(s) of the share(s) so called for
         redemption shall look only to the Corporation for payment of the
         Redemption Price thereof. In addition to the redemption under this
         paragraph 4, the Corporation may redeem or repurchase shares of the 10%
         Cumulative Preferred Stock (i) from any holder(s) thereof who consents
         in writing to such redemption (ii)

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         pursuant to any offer by the Corporation to purchase or acquire
         share(s) from holders of less than a specified number of share(s) or
         "round lots" (i.e., an "odd lot" or "99 or less" offer) and/or (iii)
         open market or negotiated purchases, and in each of clauses (i), (ii)
         and/or (iii), the provisions of this paragraph 4 will not apply to any
         such consented redemption or purchase by the Corporation. All shares of
         10% Cumulative Preferred Stock redeemed may either be held in the
         treasury subject to reissuance or shall be canceled and retired and no
         shares shall be issued in place thereof, but such shares shall be
         restored to the status of authorized but unissued shares of Special
         Stock. The "Redemption Price" (herein so called) shall be an amount
         equal to (i) the "Liquidation Value" (as defined in paragraph 6 below)
         of $12 per share, plus (ii) the amount of all accrued but unpaid
         dividends thereon to the Redemption Date, which shall include all
         cumulative dividends in arrears and also the proportionate part of the
         dividend accrued since the last Dividend Reference Date preceding the
         Redemption Date and whether or not earned or declared, but without
         interest, plus (iii) the following amount per share during the periods
         set forth below:

<TABLE>
<CAPTION>
                IF REDEMPTION OCCURS DURING THE
                TWELVE MONTH PERIOD                    ADDITIONAL PREMIUM
                ENDING JUNE 30 OF                      PER SHARE
<S>                                                    <C>
                2004                                   $0.50
                2005                                   $0.40
                2006                                   $0.30
                2007                                   $0.20
                2008                                   $0.10
</TABLE>

         provided that from and after July 1, 2008 there shall be no premium as
         a part of the Redemption Price.

                  5. SINKING FUND. The Corporation shall not be required to
         maintain any so-called "Sinking Fund" for the retirement on any basis
         of the 10% Cumulative Preferred Stock.

                  6. RIGHTS ON LIQUIDATION. In the event of any liquidation,
         dissolution or winding-up of the Corporation, and after paying and
         providing for the payment of all creditors of the Corporation, the
         holders of shares of the 10% Cumulative Preferred Stock then
         outstanding shall be entitled, before any distribution or payment is
         made upon any "Junior Securities" (defined to be and mean the Common
         Stock and any other equity security of any kind which the Corporation
         at any time has issued, issues or is authorized to issue if the 10%
         Cumulative Preferred Stock has priority over such securities as to
         dividends or upon liquidation), to receive a liquidation preference in
         an amount in cash equal to the aggregate Liquidation Value of all
         shares of 10% Cumulative Preferred Stock then outstanding, whether any
         such liquidation, dissolution or winding up is voluntary or involuntary
         and the holders of the 10% Cumulative Preferred Stock shall not be
         entitled to any other or further distributions of assets. The term
         "Liquidation Value" shall be and mean, as of any particular date, an
         amount per share of 10% Cumulative Preferred Stock equal to the
         Redemption Price if such share were so redeemed in accordance with the
         provisions of paragraph 5 above, but in no event shall exceed $12 per
         share, plus any accrued and unpaid cumulative dividends. If, upon any
         dissolution, liquidation or winding-up of the affairs of the
         Corporation, the net assets available for distribution shall be
         insufficient to permit payment to the holders of all outstanding shares
         of all series of Special Stock of the amounts to which they
         respectively shall be entitled, then the assets of the Corporation to
         be distributed to such holders will be distributed ratably among them
         based upon the amounts payable on the shares of each

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         such series of Special Stock in the event of voluntary or involuntary
         dissolution, liquidation or winding-up, as the case may be, in
         proportion to the full preferential amounts, together with any and all
         arrearages to which they are respectively entitled. Upon any such
         liquidation, dissolution or winding-up of the Corporation, after the
         holders of Special Stock have been paid in full the amounts to which
         they are entitled, the remaining assets of the Corporation may be
         distributed to the holders of Junior Securities, including Common
         Stock, of the Corporation. The Corporation will mail written notice of
         such liquidation, dissolution or winding-up, not less than twenty (20)
         nor more than fifty (50) days prior to the payment date stated therein
         to each record holder of 10% Cumulative Preferred Stock. Neither the
         consolidation nor merger of the Corporation into or with any other
         corporation or corporations, nor the sale or transfer by the
         Corporation of all or any part of its assets, nor a reduction of the
         capital stock of the Corporation, nor the purchase or redemption by the
         Corporation of any shares of its Special Stock or Common Stock or any
         other class of its stock will be deemed to be a liquidation,
         dissolution or winding-up of the Corporation within the meaning of this
         paragraph 6.

                  7. RANKING. The 10% Cumulative Preferred Stock shall rank on a
         parity as to dividends and upon liquidation, dissolution or winding up
         with all other shares of Special Stock issued by the Corporation;
         provided, however, that the Corporation shall not issue any shares of
         Special Stock of any series which are superior to the 10% Cumulative
         Preferred Stock as to dividends or rights upon liquidation, dissolution
         or winding up of the Corporation as long as any shares of the 10%
         Cumulative Preferred Stock are issued and outstanding, without the
         prior written consent of the holders of a majority of such shares of
         10% Cumulative Preferred Stock then outstanding voting separately as a
         class.

                  8. VOTING RIGHTS. The holders of the shares of 10% Cumulative
         Preferred Stock shall only have the voting rights specifically required
         by law under the Nevada General Corporation Law, and shall have the
         following additional voting rights subject to and after compliance with
         any applicable laws and rules or actual requirements of any exchange
         upon which any securities of the Corporation are listed:

                  (a) Except as may otherwise be specifically required by law
                  under the Nevada General Corporation Law, the holders of the
                  shares of 10% Cumulative Preferred Stock shall not have the
                  right to vote such stock, directly or indirectly, at any
                  meeting of the stockholders of the Corporation and such shares
                  of stock shall not be counted in determining the total number
                  of outstanding shares to constitute a quorum at any meeting of
                  stockholders.

                  (b) In the event that, under any circumstance, the holders of
                  the 10% Cumulative Preferred Stock are required by law to vote
                  upon any matter, the approval of such series shall be deemed
                  to have been obtained upon the affirmative vote of the holders
                  of only a majority of the shares of the 10% Cumulative
                  Preferred Stock then outstanding.

                  (c) Except as set forth herein, or as otherwise provided by
                  the Articles of Incorporation, as amended, or by law, holders
                  of the 10% Cumulative Preferred Stock shall have no special
                  voting rights and their consent shall not be required for the
                  taking of any corporate action.

                  9. NO CONVERSION RIGHTS. The 10% Cumulative Preferred Stock
         may not be converted into any other securities of the Corporation.

                  10. LIMITED RIGHT TO ELECT DIRECTOR. If and when, at any time,
         six consecutive quarterly dividends, in whole or in part, on the 10%
         Cumulative Preferred Stock shall be in

<PAGE>   6

         arrears, then the holders of the shares of 10% Cumulative Preferred
         Stock, voting separately as a class, shall be entitled, at any annual
         meeting of stockholders or special meeting held in place thereof, or at
         a special meeting of the holders of the shares of the 10% Cumulative
         Preferred Stock called as hereinafter provided, to elect one (1)
         director and, except as otherwise provided in the Articles of
         Incorporation, as amended, the holders of shares of Common Stock and
         any other class of stock of the Corporation, to the extent it shall
         have the right to vote, shall be entitled to elect all remaining
         members of the Board of Directors, but the holders of Common Stock and
         any other class of stock of the Corporation shall not be entitled to
         vote in the election of the director of the Corporation so to be
         elected by the holders of shares of 10% Cumulative Preferred Stock.
         Such right of the holders of shares of 10% Cumulative Preferred Stock
         to elect one (1) director may be exercised until dividends in default
         on the outstanding shares of 10% Cumulative Preferred Stock have been
         paid in full or funds sufficient therefor set aside, and when so paid
         or provided for, then the right of the holders of shares of 10%
         Cumulative Preferred Stock to elect such director shall cease, but
         subject always to the same provisions for the vesting of such voting
         rights in the case of any such future dividend default or defaults. At
         any time after such voting power shall have vested in the holders of
         the outstanding shares of 10% Cumulative Preferred Stock, the Secretary
         of the Corporation may, and upon the written request of holders of
         record of 25% or more of the shares of 10% Cumulative Preferred Stock
         then outstanding addressed to him at the principal office of the
         Corporation shall, call a special meeting of the holders of shares of
         10% Cumulative Preferred Stock for the election of the director to be
         elected by them as herein provided, to be held within sixty (60) days
         after delivery of such request and at the place and upon the notice
         provided by law and in the Bylaws for the holding of meetings of
         stockholders; provided, however, that the Secretary shall not be
         required to call such special meeting in the case of any such request
         received less than 120 days before the date fixed for the next ensuing
         annual meeting of stockholders. No such special meeting and no
         adjournment thereof shall be held on a date less than 30 days before
         the annual meeting of stockholders or special meeting held in place
         thereof next succeeding the time when the holders of the 10% Cumulative
         Preferred Stock become entitled to elect one (1) director as above
         provided. If at any annual or special meeting or any adjournment
         thereof the holders of at least a majority of the shares of 10%
         Cumulative Preferred Stock then outstanding shall be present or
         represented by proxy then, by vote of the holders of at least a
         majority of the shares of 10% Cumulative Preferred Stock present or so
         represented at such meeting, the authorized number of directors of the
         Corporation shall be increased by one (1) and the holders of shares of
         10% Cumulative Preferred Stock shall be entitled to elect the
         additional director so provided for. The director so elected shall
         serve until the next annual meeting or until his successor shall be
         elected and shall qualify; provided, however, that whenever the holders
         of shares of 10% Cumulative Preferred Stock shall be divested of voting
         power as above provided, the term of office of the person elected as
         director by the holders of shares of 10% Cumulative Preferred Stock as
         a class shall forthwith terminate and the number of the Board of
         Directors shall be reduced accordingly.

                  If, during any interval between any special meeting of the
         holders of shares of 10% Cumulative Preferred Stock for the election of
         one (1) director to be elected by them as provided in the preceding
         paragraph and the next ensuing annual meeting of stockholders, or
         between annual meeting of stockholders for the election of directors,
         and while the holders of shares of 10% Cumulative Preferred Stock shall
         be entitled to elect one (1) director, the director so elected by the
         holders of shares of 10% Cumulative Preferred Stock shall resign or
         die, a majority of the directors then in office though less than a
         quorum shall designate the successor to fill the vacancy thereby
         created; provided, however, that if a successor shall not be designated
         to fill the vacancy created by the resignation or death of the director
         elected by the holders of shares

<PAGE>   7

         of 10% Cumulative Preferred Stock as herein above provided, within
         forty (40) days after the creation of such vacancy the Secretary of the
         Corporation shall call a special meeting of the holders of shares of
         10% Cumulative Preferred Stock and such vacancy shall be filled at such
         special meeting as herein above provided. Any director elected by the
         holders of the shares of 10% Cumulative Preferred Stock or designated
         to fill a vacancy may be removed from office only by the vote of the
         holders of a majority of the outstanding shares of 10% Cumulative
         Preferred Stock at a special meeting of the holders of shares of 10%
         Cumulative Preferred Stock called for the purpose of removing such
         director. Upon the written request of holders of 25% or more of the
         shares of 10% Cumulative Preferred Stock then outstanding addressed to
         him at the principal office of the Corporation, the Secretary shall,
         within ten (10) calendar days after delivery to him of such request,
         call a special meeting of the holders of shares of 10% Cumulative
         Preferred Stock for such purpose to be held within sixty (60) days
         after delivery of such request; provided, however, that the Secretary
         shall not be required to call a special meeting in the case of any
         request received less than 120 calendar days before the date fixed for
         the next ensuing annual meeting of stockholders. The holders of shares
         of 10% Cumulative Preferred Stock voting separately as a class shall be
         entitled to fill any vacancy created by the removal of the director at
         any meeting at which such removal shall have been approved or if such
         vacancy is not so filled, it may be filled as provided above.

                  11. REACQUIRED SHARES. Any shares of 10% Cumulative Preferred
         Stock purchased or otherwise acquired by the Corporation in any manner
         whatsoever may be retired and canceled promptly after the acquisition
         thereof. All such shares shall, upon cancellation, become authorized
         but unissued shares of Special Stock and may be re-issued as part of a
         new series of Special Stock subject to the conditions and restrictions
         on issuance set forth in the Articles of Incorporation, as amended, or
         as otherwise required by law.

         IN WITNESS WHEREOF, said TARRAGON REALTY INVESTORS, INC. has caused its
corporate seal to be hereunto affixed and this certificate to be signed by
William S. Friedman, its President and Kathryn Mansfield, its Secretary as of
the ________ day of ____________, 2000.

                                        TARRAGON REALTY INVESTORS, INC.

                                        By:
                                             ----------------------------------
                                             Name: William S. Friedman
                                             President

                                        By:
                                             ----------------------------------
                                             Kathryn Mansfield
                                             Secretary

THE STATE OF TEXAS                  )
                                    )
COUNTY OF DALLAS                    )

         On _____________, 2000 personally appeared before me a Notary Public,
William S. Friedman, President of TARRAGON REALTY INVESTORS, INC., and Kathryn
Mansfield, Secretary of TARRAGON REALTY INVESTORS, INC., who acknowledged that
they executed the above instrument.

                                        ------------------------------
                                        Notary Public, State of Texas

                                        My Commission expires:

                                        ---------------------------------<PAGE>   1

                                                                     EXHIBIT 4.4

                                SIPEX CORPORATION

                             STOCK OPTION AGREEMENT

         SIPEX Corporation (the "COMPANY") hereby grants the following option to
purchase Common Stock, $.01 par value per share (the "COMMON STOCK"), of the
Company pursuant to an action of the Board of Directors (the "Board") of the
Company on August 12, 1999. The terms and conditions attached hereto are also a
part hereof.

        Name of employee (the "Employee" or "Optionee"):       Stephen E. Parks

        Date of this option grant:                             August 12, 1999

        Number of shares of the Company's Common Stock
        subject to this option ("OPTION SHARES"):              325,000

        Option exercise price per share:                       $15.5625

        Number of Option Shares subject to vesting schedule:   325,000

        Vesting Start Date:                                    June 22, 2000

        VESTING SCHEDULE. If the Employee has continued to be employed by the
        Company or any Related Corporation (as defined in Section 2 hereof) on
        the following dates, the Employee may exercise this option for the
        number of shares of Common Stock as set forth below.

Prior to June 22, 2000                             0 shares

As of  June 22, 2000 but prior to June 22, 2001    30,000 shares

As of  June 22, 2001 but prior to June 22, 2002    an additional 65,000 shares

As of  June 22, 2002 but prior to June 22, 2003    an additional 65,000 shares

As of  June 22, 2003 but prior to June 22, 2004    an additional 65,000 shares

As of  June 22, 2004 but prior to June 22, 2005    an additional 65,000 shares

As of  June 22, 2005 but prior to June 22, 2006    an additional 35,000 shares

Payment alternatives:                              Section 6(a) (i) through (iv)

================================================================================

                                        SIPEX CORPORATION

-----------------------------
Signature of Optionee

-----------------------------
Street Address

-----------------------------           By:
City/State/Zip Code                        -------------------------------
                                           James E. Donegan
                                           Chairman and Chief Executive Officer

<PAGE>   2

SIPEX CORPORATION

STOCK OPTION AGREEMENT -- INCORPORATED TERMS AND CONDITIONS

         1. GRANT AS NON-QUALIFIED STOCK OPTION. This option is a non-statutory
stock option and is not intended to qualify as an incentive stock option under
Section 422 of the Internal Revenue Code of 1986, as amended, and the
regulations thereunder (the "CODE").

         2. VESTING OF OPTION IF EMPLOYMENT CONTINUES. The Employee may exercise
this option for the number of shares of Common Stock set forth on the vesting
schedule on the cover page hereof if the Employee has continued to be employed
by the Company or any present or future parent or subsidiary of the Company
(collectively, "RELATED CORPORATIONS") in accordance with such vesting schedule.
Notwithstanding the foregoing, the Board may, in its discretion, accelerate the
date that any installment of this option becomes exercisable. The foregoing
rights are cumulative and (subject to Sections 3 or 4 hereof if the Employee
ceases to be employed by the Company) may be exercised only before the date
which is ten years from the date of this option grant.

         3. TERMINATION OF EMPLOYMENT.

              (a) TERMINATION OTHER THAN FOR CAUSE. If the Employee ceases to be
employed by the Company and all Related Corporations, other than by reason of
death or disability as defined in Section 4 or termination for Cause as defined
in Section 3(c), no further installments of this option shall become
exercisable, and this option shall terminate (and may no longer be exercised)
after the passage of three months from the Employee's last day of employment,
but in no event later than the scheduled expiration date. In such a case, the
Employee's only rights hereunder shall be those which are properly exercised
before the termination of this option.

              (b) TERMINATION FOR CAUSE. If the employment of the Employee is
terminated for Cause (as defined in the Employment Agreement between the
Employee and the Company dated June __, 1999 (the "Employment Agreement")), this
option shall terminate upon the Employee's receipt of written notice of such
termination and shall thereafter not be exercisable to any extent whatsoever.

         4. DEATH; DISABILITY.

              (a) DEATH. If the Employee dies while in the employ of the Company
or any Related Corporation, this option may be exercised, to the extent
otherwise exercisable on the date of his or her death, by the Employee's estate,
personal representative or beneficiary to whom this option has been assigned
pursuant to Section 9, at any time within 180 days after the date of death, but
not later than the scheduled expiration date.

              (b) DISABILITY. If the Employee ceases to be employed by the
Company and all Related Corporations by reason of his disability, this option
may be exercised, to the extent otherwise exercisable on the date of the
termination of his employment, at any time within 180 days after such
termination, but not later than the scheduled expiration date. The term
disability shall have the meaning ascribed in Section 3(D) of the Employment
Agreement.

<PAGE>   3

              (c) EFFECT OF TERMINATION. At the expiration of the 180-day period
provided in paragraph (a) or (b) of this Section 4 or the scheduled expiration
date, whichever is the earlier, this option shall terminate (and shall no longer
be exercisable) and the only rights hereunder shall be those as to which the
option was properly exercised before such termination.

      5. PARTIAL EXERCISE. This option may be exercised in part at any time and
from time to time within the above limits, except that this option may not be
exercised for a fraction of a share.

      6. PAYMENT OF ALTERNATIVES. (a) The exercise price shall be paid in the
following manner:

                  (i)   in cash or by check;

                 (ii)   subject to paragraph 6(b) below, by delivery of shares
                        of the Company's Common Stock having a fair market value
                        equal, as of the date of exercise, to the option
                        exercise price;

                (iii)   by delivery of an assignment satisfactory in form and
                        substance to the Company of a sufficient amount of the
                        proceeds from the sale of the Option Shares and an
                        instruction to the broker or selling agent to pay that
                        amount to the Company; or

                 (iv)   by any combination of the foregoing.

                  In the case of (ii) above, fair market value as of the date of
         exercise shall be determined as of the last business day for which such
         prices or quotes are available prior to the date of exercise and shall
         mean (i) the average (on that date) of the high and low prices of the
         Common Stock on the principal national securities exchange on which the
         Common Stock is traded, if the Common Stock is then traded on a
         national securities exchange; or (ii) the last reported sale price (on
         that date) of the Common Stock on the Nasdaq National Market, if the
         Common Stock is not then traded on a national securities exchange; or
         (iii) the closing bid price (or average of bid prices) last quoted (on
         that date) by an established quotation service for over-the-counter
         securities, if the Common Stock is not reported on the Nasdaq National
         Market. If the Common Stock is not publicly traded at the time of
         exercise, "fair market value" shall mean the fair value of the Common
         Stock as determined by the Board after taking into consideration all
         factors which it deems appropriate, including, without limitation,
         recent sale and offer prices of the Common Stock in private
         transactions negotiated at arm's length.

              (b) LIMITATIONS ON PAYMENT BY DELIVERY OF COMMON STOCK. If the
Employee delivers Common Stock held by the Employee ("Old Stock") to the Company
in full or partial payment of the option price, and the Old Stock so delivered
is subject to restrictions or limitations imposed by agreement between the
Employee and the Company, an equivalent number of Option Shares shall be subject
to all restrictions and limitations applicable to the Old Stock to the extent
that the Employee paid for the Option Shares by delivery of Old Stock, in
addition to any restrictions or limitations imposed by this Agreement.
Notwithstanding the

<PAGE>   4

foregoing, the Employee may not pay any part of the exercise price hereof by
transferring Common Stock to the Company unless such Common Stock has been owned
by the Employee free of any substantial risk of forfeiture for at least six
months.

         7. METHOD OF EXERCISING OPTION. Subject to the terms and conditions of
this Agreement, this option may be exercised by written notice to the Company at
its principal executive office, or to such transfer agent as the Company shall
designate. Such notice shall state the election to exercise this option and the
number of Option Shares for which it is being exercised and shall be signed by
the person or persons so exercising this option. Such notice shall be
accompanied by payment of the full purchase price of such shares, and the
Company shall deliver a certificate or certificates representing such shares as
soon as practicable after the notice shall be received. Such certificate or
certificates shall be registered in the name of the person or persons so
exercising this option (or, if this option shall be exercised by the Employee
and if the Employee shall so request in the notice exercising this option, shall
be registered in the name of the Employee and another person jointly, with right
of survivorship). In the event this option shall be exercised, pursuant to
Section 4 hereof, by any person or persons other than the Employee, such notice
shall be accompanied by appropriate proof of the right of such person or persons
to exercise this option.

         8. SECURITIES LAWS RESTRICTIONS ON RESALE. Until registered under the
Securities Act of 1933, as amended, or any successor statute (the "Securities
Act"), the Option Shares will be of an illiquid nature and will be deemed to be
"restricted securities" for purposes of the Securities Act. Accordingly, such
shares must be sold in compliance with the registration requirements of the
Securities Act or an exemption therefrom. Unless the Option Shares have been
registered under the Securities Act, each certificate evidencing any of the
Option Shares shall bear a legend substantially as follows:

         "The shares represented by this certificate are subject to restrictions
         on transfer and may not be sold, exchanged, transferred, pledged,
         hypothecated or otherwise disposed of except in accordance with and
         subject to all the terms and conditions of a certain Stock Option
         Agreement dated as of August ____, 1999, a copy of which the Company
         will furnish to the holder of this certificate upon request and without
         charge."

         9. OPTION NOT TRANSFERABLE. This option is not transferable or
assignable except by will or by the laws of descent and distribution. During the
Optionee's lifetime only the Optionee can exercise this option.

         10. NO OBLIGATION TO EXERCISE OPTION. The grant and acceptance of this
option imposes no obligation on the Optionee to exercise it.

         11. ADJUSTMENTS. In the event of any stock split, stock dividend,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off, split-up,
or other similar change in capitalization or event, the number and class of
securities, vesting schedule and exercise price per share of this option shall
be adjusted by the Company (or a substituted option may be granted) to the
extent the Board shall determine, in good faith, that such an adjustment (or
substitution) is appropriate. If Section 13 hereof applies for any event, this
Section 11 shall not be applicable. Except as is expressly

<PAGE>   5

provided in this Section 11, no adjustment shall be made for dividends or
similar rights for which the record date is prior to such date of exercise.

         12. WITHHOLDING TAXES. If the Company or any Related Corporation in its
discretion determines that it is obligated to withhold any tax in connection
with the exercise of this option, or in connection with the transfer of, or the
lapse of restrictions on, any Common Stock or other property acquired pursuant
to this option, the Optionee hereby agrees that the Company or any Related
Corporation may withhold from the Optionee's wages or any other remuneration the
appropriate amount of tax. At the discretion of the Company or Related
Corporation, the amount required to be withheld may be withheld in cash from
such wages or other remuneration or in kind from the Common Stock or other
property otherwise deliverable to the Optionee on exercise of this option. The
Optionee further agrees that, if the Company or Related Corporation does not
withhold an amount from the Optionee's wages or other remuneration sufficient to
satisfy the withholding obligation of the Company or Related Corporation, the
Optionee will make reimbursement on demand, in cash, for the amount
underwithheld.

         13.      ACQUISITION OF THE COMPANY.

                  (a) CONSEQUENCES OF AN ACQUISITION. In the event of an
Acquisition, AND (i) the successor (a "Successor To The Business") fails to
assume the obligations of the Company under this Agreement or (ii) Employee's
employment is (x) at the time of the Acquisition terminated by the Company
without cause or (y) terminated by any Successor To The Business without Cause
or the Employee terminates his employment for Good Reason (as defined in the
Employment Agreement) and, in any such event, the Employee signs a comprehensive
release in the form and of a scope acceptable to the Company, then the options
granted hereby will become exercisable in full on the date of the Acquisition
(in the case of (i)) or such termination (in the case of (ii)) PROVIDED,
HOWEVER, that if an event described in this Section 13(a) occurs before August
9, 2000, then only the first 150,000 options granted hereby will vest on the
date of such termination and the remaining 175,000 options will be canceled, and
any other option to purchase stock of the Company will be canceled.

                  (b) ACQUISITION DEFINED. An "ACQUISITION" shall mean: (x) any
merger or consolidation after which the voting securities of the Company
outstanding immediately prior thereto represent (either by remaining outstanding
or by being converted into voting securities of the surviving or acquiring
entity) less than 50% of the combined voting power of the voting securities of
the Company or such surviving or acquiring entity outstanding immediately after
such event; or (y) any sale of all or substantially all of the assets or capital
stock of the Company (other than in a spin-off or similar transaction); or (z)
any other acquisition of the business of the Company, as determined by the
Board.

                  (c) POOLING-OF-INTERESTS-ACCOUNTING. If the Company proposes
to engage in an Acquisition intended to be accounted for as a
pooling-of-interests, and in the event that the provisions of this option, or
any actions of the Board taken in connection with such Acquisition, are
determined by the Company's or the acquiring company's independent public
accountants to cause such Acquisition to fail to be accounted for as a
pooling-of-interests, then such provisions or actions shall be amended or
rescinded by the Board, without the consent of the Optionee, to be

<PAGE>   6

consistent with pooling-of-interests accounting treatment for such Acquisition
if, and to the extent that, such recision would result in such Acquisition being
accounted for on a pooling-of-interests basis.

         14. ARBITRATION. Any dispute, controversy, or claim arising out of, in
connection with, or relating to the performance of this Agreement or its
termination shall be settled by arbitration in the Commonwealth of
Massachusetts, pursuant to the rules then obtaining of the American Arbitration
Association. Any award shall be final, binding and conclusive upon the parties
and a judgment rendered thereon may be entered in any court having jurisdiction
thereof.

         15. PROVISION OF DOCUMENTATION TO OPTIONEE. By signing this Agreement
the Optionee acknowledges receipt of a copy of this Agreement.

         16.      MISCELLANEOUS.

                  (a) NOTICES. All notices hereunder shall be in writing and
         shall be deemed given when sent by certified or registered mail,
         postage prepaid, return receipt requested, if to the Optionee, to the
         address set forth on the cover pages hereof or at the address shown on
         the records of the Company, and if to the Company, to the Company's
         principal executive offices, attention of the Corporate Secretary.

                  (b) ENTIRE AGREEMENT; MODIFICATION. This Agreement and the
         Employment Agreement constitute the entire agreement between the
         parties relative to the subject matter hereof, and supersedes all
         proposals, written or oral, and all other communications between the
         parties relating to the subject matter of this Agreement. This
         Agreement may be modified, amended or rescinded only by a written
         agreement executed by both parties.

                  (c) FRACTIONAL SHARES. If this option becomes exercisable for
         a fraction of a share because of the adjustment provisions contained
         herein, such fraction shall be rounded down.

                  (d) NO RIGHTS AS STOCKHOLDER. The Optionee shall not have any
         rights as a stockholder with respect to any shares of Common Stock for
         which this option is exercisable until such Optionee becomes the record
         holder of such shares of Common Stock.

                  (e) NO OBLIGATION OF CONTINUED EMPLOYMENT. This Agreement
         imposes no obligation on the Company or Related Corporation to continue
         the employment of the Employee. The Company expressly reserves the
         right any time to dismiss or terminate its relationship with the
         Employee free from any liability or claim under this Agreement.

                  (f) ISSUANCES OF SECURITIES; CHANGES IN CAPITAL STRUCTURE.
         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 subject to
         this option. No adjustments need be made for dividends paid in cash or
         in property other than securities of the Company. If there shall be any
         change in the Common Stock of the Company through merger,
         consolidation, reorganization, recapitalization, stock dividend,

<PAGE>   7

         stock split, combination or exchange of shares, spin-off, split-up or
         other similar change in capitalization or event, the restrictions
         contained in this Agreement shall apply with equal force to additional
         and/or substitute securities, if any, received by the Optionee in
         exchange for, or by virtue of his or her ownership of, Option Shares,
         except as otherwise determined by the Board.

                  (g) DISSOLUTION OR LIQUIDATION. In the event of the proposed
         dissolution or liquidation of the Company, then the Board shall, as to
         outstanding options, at its discretion provide, upon written notice to
         the Optionee (i) that all options must be exercised, to the extent then
         exercisable, within a specified number of days of the date of such
         notice, at the end of which period, the options shall terminate or (ii)
         that such options (including those which have not yet vested) shall be
         exercisable within a specified number of days of such notice, at the
         end of which period the options shall terminate.

                  (h) SEVERABILITY. The invalidity, illegality or
         unenforceability of any provision of this Agreement shall in no way
         affect the validity, legality or enforceability of any other provision.

                  (i) SUCCESSORS AND ASSIGNS. This Agreement shall be binding
         upon and inure to the benefit of the parties hereto and their
         respective successors and assigns, subject to the limitations set forth
         in Section 9 hereof.

                  (j) GOVERNING LAW. This Agreement shall be governed by and
         interpreted in accordance with the laws of the Commonwealth of
         Massachusetts, without giving effect to the principles of the conflicts
         of laws thereof.

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