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                                                                   EXHIBIT 4.5

                           INCENTIVE STOCK OPTION PLAN
                                       OF
                         JONES MEDICAL INDUSTRIES, INC.

         JONES MEDICAL INDUSTRIES, INC. (the "Company") hereby adopts an
Incentive Stock Option Plan as follows:

         1.    Within twelve months after adoption of the Plan by the Board of
               Directors, the Plan shall be submitted to the stockholders of the
               Company for approval.

         2.    The Plan shall be referred to as "The 1989 Incentive Stock Option
               Plan of Jones Medical Industries, Inc."

         3.    The incentive stock option provided for in this Plan is for the
               benefit of and may be exercised only by employees of the Company,
               or its affiliates, as designated from time to time by
               appropriate resolutions of the Board of Directors, whose
               compensation is not required to be determined on the basis of the
               number of hours per week actually worked for purposes of either
               the minimum wage provisions or the overtime wage provisions of
               the Fair Labor Standards Act, as amended.

         4.    The stock of the Company in respect of which the Plan is
               applicable shall be common stock as defined in the form of
               Agreement attached to this Plan.

         5.    The maximum number of shares of common stock subject to the 1989
               Incentive Stock Option Plan of Jones Medical Industries, Inc. is
               350,000 shares.

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         6.    The option price shall not be less than the fair market value
               of the stock at the time the option is granted.

         7.    Unless otherwise permitted by applicable provisions of the
               Internal Revenue Code, no employee shall be granted an incentive
               stock option pursuant to this Plan if such employee at the time
               owns 10% or more of the common stock of the Company, and the
               number of shares of stock subject to any incentive stock option
               will be limited to such number as when added to the shares of
               common stock of the Company then owned by such employee shall
               not cause such employee to become an owner of 10% or more of the
               outstanding common stock of the Company.

         8.    Each incentive stock option granted pursuant to the provisions
               of this Plan shall not be transferable by the employee to whom
               such option is granted other than by will or the laws of descent
               and distribution and shall be exercisable, during the lifetime of
               such employee, only by such employee.

         9.    The aggregate fair market value (determined at the time the
               option is granted) of the stock with respect to which incentive
               stock options are exercisable for the first time by any employee
               during any calendar year (under this Plan and any other incentive
               stock option plan or plans of the Company or its affiliated)
               shall not exceed $100,000.

         10.   Each incentive stock option granted pursuant to the provisions
               of this Plan shall be evidenced by the execution of an
               Agreement substantially in one of the forms attached hereto as
               Exhibit A-1 and A-2, with such modifications as may be reasonably
               determined by the President of the

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               Company, signed on behalf of the Company and by the employee to
               whom such incentive stock option is granted.

         11.   Each incentive stock option granted pursuant to the provisions
               of this Plan shall be subject to, and shall be construed so as
               to fully comply with all the applicable provisions of the
               Internal Revenue Code.

         12.   Every incentive stock option granted pursuant to this Plan must
               be granted within ten (10) years after the adoption of this Plan,
               and every incentive stock option so granted shall be exercisable
               not more than ten (10) years after the date so granted.<PAGE>   1
                                                                     EXHIBIT 4.6

                         JONES MEDICAL INDUSTRIES, INC.

                            1994 INCENTIVE STOCK PLAN

         The 1994 Incentive Stock Plan ("ISP") of Jones Medical Industries, Inc.
(the "Company") is established to encourage eligible employees of the Company,
and its subsidiaries to acquire Common Stock in the Company. It is believed that
the ISP will (i) stimulate employees' efforts on the Company's behalf, (ii) tend
to maintain and strengthen their desire to remain with the Company, (iii) be in
the interest of the Company and its Stockholders, and (iv) encourage such
employees to have a greater personal financial investment in the Company through
ownership of its Common Stock.

1.       ADMINISTRATION

         The ISP shall be administered by the Compensation Committee of the
Board of Directors of the Company (the "Committee"); provided, however, that for
purposes of the ISP there shall be excluded from such Committee any member who
is not a "disinterested person" under Rule 16b-3 of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). The Committee is authorized, subject
to the provisions of the ISP, to establish such rules and regulations as it
deems necessary for the proper administration of the ISP, and to make such
determinations and to take such action in connection therewith or in relation to
the ISP as it deems necessary or advisable, consistent with the ISP. The
Committee may delegate some or all of its power and authority hereunder to the
Chief Executive Officer or other senior member of management as the Committee
deems appropriate; provided however, that the Committee may not delegate its
authority with regard to any matter or action affecting an officer subject to
Section 16 of the Exchange Act.

         For the purpose of this section and all subsequent sections, the ISP
shall be deemed to include this plan and any comparable sub-plans established by
subsidiaries which, in the aggregate, shall constitute one plan governed by the
terms set forth herein.

2.       ELIGIBILITY

         Regular full-time employees of the Company and its subsidiaries,
including officers, whether or not directors of the Company, shall be eligible
to participate in the ISP ("Eligible Employees") if designated by the Committee
or its delegate. Those directors who are not regular employees are not eligible.
It is intended that awards will be made principally to those employees who are
key officers or management employees of the Company or a subsidiary, including
employees subject to Section 16 of the Exchange Act, and who are in a position
to have significant impact or achievement of the Company's long term objectives.

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3.       INCENTIVES

         Incentives under the ISP may be granted in any one or a combination of
(i) Incentive Stock Options (or other statutory stock options); (ii)
Nonqualified Stock Options; (iii) Performance Share Awards; and (iv) Restricted
Stock Grants (collectively "Incentives"). All Incentives shall be subject to the
terms and conditions set forth herein and to such other terms and conditions as
may be established by the Committee. Determinations by the Committee under the
ISP including without limitation, determinations of the Eligible Employees, the
form, amount and timing of Incentives, the terms and provisions of Incentives,
and the agreements evidencing Incentives, need not be uniform and may be made
selectively among Eligible Employees who receive, or are eligible to receive,
Incentives hereunder, whether or not such Eligible Employees are similarly
situated.

4.       SHARES AVAILABLE FOR INCENTIVES

         (a) Shares Subject to Issuance or Transfer. There is hereby reserved
for issuance under the ISP an aggregate of 500,000 shares of the Company's
Common Stock ("Common Stock).

         In the event of a lapse, expiration, termination or cancellation of any
Incentive granted under the ISP without the issuance of shares or payment of
cash, or if shares are issued under a Restricted Stock Grant hereunder and are
reacquired by the Company pursuant to rights reserved upon the issuance thereof,
the shares subject to or reserved for such Incentive may again be used for new
Incentives hereunder; provided that in no event may the number of shares issued
hereunder exceed the total number of shares reserved for issuance.

         (b) Limitations on Individual Awards. In any given year, no eligible
employee may be granted Incentives covering more than two and one-half percent
(2.5%) of the number of fully-diluted shares of the Company's Common Stock
outstanding as of the first business day of the Company's fiscal year.

         (c) Recapitalization Adjustment. In the event of a reorganization,
recapitalization, stock split, stock dividend, combination of shares, merger,
consolidation, rights offering, or any other change in the corporate structure
or shares of the Company, the Committee shall make such adjustment, if any, as
it may deem appropriate in the number and kind of shares authorized by the ISP,
in the number and kind of shares covered by Incentives granted, and, in the case
of Stock Options, in the option price.

 5.      STOCK OPTIONS

         The Committee may grant options qualifying as Incentive Stock Options
under the Internal Revenue Code of 1986, as amended or any successor code
thereto (the "Code"), other statutory options under the Code, and Nonqualified
Options (collectively "Stock Options"), and such Stock Options shall be subject
to the following terms and conditions and such other terms and conditions as the
Committee may prescribe:

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         (a) Option Price. The option price per share with respect to each Stock
Option shall be determined by the Committee, but shall not be less than 90% of
the fair market value of the Common Stock on the date the Stock Option is
granted, as determined by the Committee; provided, however, that the option
price per share with respect to each Incentive Stock Option shall not be less
than 100% of the fair market value of the Common Stock on the date the Incentive
Stock Option is granted, as determined by the Committee; and provided further
that the option price per share with respect to any Incentive Stock Option
granted to a person deemed to own more than ten percent (10%) of the Company's
outstanding Common Stock shall not be less than 110% of the fair market value of
the Common Stock on the date the Option is granted. During any period in which
the Common Stock is listed for trading on a registered national securities
exchange or on the NASDAQ National Market System, the fair market value shall be
based on the average or closing price (or bid and asked prices, as appropriate)
on the date of grant.

         (b) Period of Option. The period of each Stock Option shall be fixed by
the Committee, except that (i) every Incentive Stock Option granted shall be
exercisable not more than ten (10) years after the date so granted, and (ii) no
Incentive Stock Option granted to a person deemed to own more than ten percent
(10%) of the Company's outstanding Common Stock shall be exercisable after the
fifth anniversary of the date of grant of such Incentive Stock Option.

         (c) Payment. The option price shall be payable at the time the Stock
Option is exercised in cash or, at the discretion of the Committee, in whole or
in part in the form of shares of Common Stock already owned by the grantee
(based on the fair market value of the Common Stock on the date the option is
exercised as determined by the Committee). No shares shall be issued until full
payment therefor has been made. A grantee of a Stock Option shall have none of
the rights of a stockholder until the shares are issued.

         (d) Exercise of Option. The shares covered by a Stock Option may be
purchased in such installments and on such exercise dates as the Committee may
determine. Any shares not purchased on the applicable exercise date may be
purchased thereafter at any time prior to the final expiration of the Stock
Option. In no event (including those specified in paragraphs (e), (f) and (g) of
this section below) shall any Stock Option be exercisable after its specified
expiration period.

         (e) Termination of Employment. Upon the termination of a Stock Option
grantee's employment (for any reason other than retirement, death or termination
for deliberate, willful or gross misconduct), Stock Option privileges shall be
limited to the shares which were immediately exercisable at the date of such
termination. The Committee, however, in its discretion may provide that any
Stock Options outstanding but not yet exercisable upon the

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termination of a Stock Option grantee may become exercisable in accordance with
a schedule to be determined by the Committee. Such Stock Option privileges shall
expire unless exercised within such period of time after the date of such
termination as may be established by the Committee. If a Stock Option grantee's
employment is terminated for deliberate, willful or gross misconduct, as
determined by the Company, all rights under the Stock Option shall expire upon
receipt of the notice of such termination.

         (f) Retirement. Upon retirement of the Stock Option grantee, Stock
Option privileges shall apply to those shares immediately exercisable at the
date of retirement. The Committee, however, in its discretion, may provide that
any Stock Options outstanding but not yet exercisable upon the retirement of the
Stock Option grantee may become exercisable in accordance with a schedule to be
determined by the Committee. Stock Option privileges shall expire unless
exercised within such period of time as may be established by the Committee.

         (g) Death. Upon the death of a Stock Option grantee, Stock Option
privileges shall apply to those shares which were immediately exercisable at the
time of death. The Committee, however, in its discretion, may provide that any
Stock Options outstanding but not yet exercisable upon the death of a Stock
Option grantee may become exercisable in accordance with a schedule to be
determined by the Committee. Such privileges shall expire unless exercised by
legal representatives within a period of time as determined by the Committee but
in no event later than the date of the expiration of the Stock Option.

         (h) Limits on Incentive Stock Options. Except as may otherwise be
permitted by the Code, the Committee shall not, in the aggregate, grant an
Eligible Employee, Incentive Stock Options that are first exercisable during any
one calendar year to the extent that the aggregate fair market value of the
Common Stock, at the time the Incentive Stock Options are granted, exceeds
$100,000.

6.       PERFORMANCE SHARE AWARDS

         The Committee may grant awards under which payment may be made in
shares of Common Stock, cash or any combination of shares and cash if the
performance of the Company or any subsidiary or division of the Company selected
by the Committee during the Award Period meets certain goals established by the
Committee ("Performance Share Awards"). Such Performance Share Awards shall be
subject to the following terms and conditions and such other terms and
conditions as the Committee may prescribe:

         (a) Award Period and Performance Goals. The Committee shall determine
and include in a Performance Share Award grant the period of time for which a
Performance Share Award is made ("Award Period"). The Committee shall also
establish performance objectives ("Performance Goals") to be met by the Company,
subsidiary or division during the Award Period as a condition to payment of the
Performance Share Award. The Performance Goals may include earnings per share,
return on stockholder equity, return on assets, net income, or any other
financial or other measurement established by the Committee. The Performance
Goals may include minimum and optimum objectives or a single set of objectives.

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         (b) Payment of Performance Share Awards. The Committee shall establish
the method of calculating the amount of payment to be made under a Performance
Share Award if the Performance Goals are met, including the fixing of a maximum
payment. The Performance Share Award shall be expressed in terms of shares of
Common Stock and referred to as "Performance Shares". After the completion of an
Award Period, the performance of the Company, subsidiary or division shall be
measured against the Performance Goals, and the Committee shall determine
whether all, none or any portion of a Performance Share Award shall be paid. The
Committee, in its discretion, may elect to make payment in shares of Common
Stock, cash or a combination of shares and cash. Any cash payment shall be based
on the fair market value of Performance Shares on, or as soon as practicable
prior to, the date of payment.

         (c) Revision of Performance Goals. At any time prior to the end of an
Award Period, the Committee may revise the Performance Goals and the computation
of payment if unforeseen events occur which have a substantial effect on the
performance of the Company, subsidiary or division and which in the judgment of
the Committee make the application of the Performance Goals unfair unless a
revision is made.

         (d) Requirement of Employment. A grantee of a Performance Share Award
must remain in the employment of the Company until the completion of the Award
Period in order to be entitled to payment under the Performance Share Award;
provided that the Committee may, in its sole discretion, provide for a partial
payment where such an exception is deemed equitable.

         (e) Dividends. The Committee may, in its discretion, at the time of the
granting of a Performance Share Award, provide that any dividends declared on
the Common Stock during the Award Period, and which would have been paid with
respect to Performance Shares had they been owned by a grantee, be (i) paid to
the grantee, or (ii) accumulated for the benefit of the grantee and used to
increase the number of Performance Shares of the grantee

 7.      RESTRICTED STOCK GRANTS

         The Committee may issue shares of Common Stock to a grantee which
shares shall be subject to the following terms and conditions and such other
terms and conditions as the Committee may prescribe ("Restricted Stock Grant"):

         (a) Requirement of Employment. A grantee of a Restricted Stock Grant
must remain in the employment of the Company during a period designated by the
Committee ("Restriction Period"). If the grantee leaves the employment of the
Company prior to the end of the Restriction Period, the Restricted Stock Grant
shall terminate and the shares of Common Stock shall be returned immediately to
the Company, provided that the Committee may, at the time of the grant, provide
for the employment restriction to lapse with respect to a portion or portions of
the Restricted Stock Grant at different times during the Restriction Period. The
Committee may, in its discretion, also provide for such complete or partial
exceptions to the employment restriction as it deems equitable.

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         (b) Restrictions on Transfer and Legend on Stock Certificates. During
the Restriction Period, the grantee may not sell, assign, transfer, pledge, or
otherwise dispose of the shares of Common Stock except to a successor under
Section 9 hereof. Each certificate for shares of Common Stock issued hereunder
shall contain a legend giving appropriate notice of the restrictions in the
grant.

         (c) Escrow Agreement. The Committee may require the grantee to enter
into an escrow agreement providing that the certificates representing the
Restricted Stock Grant will remain in the physical custody of an escrow holder
until all restrictions are removed or expire.

         (d) Lapse of Restrictions. All restrictions imposed under the
Restricted Stock Grant shall lapse upon the expiration of the Restriction Period
if the conditions as to employment set forth above have been met. The grantee
shall then be entitled to have the legend removed from the certificates.

         (e) Dividends. The Committee shall, in its discretion, at the time of
the Restricted Stock Grant, provide that any dividends declared on the Common
Stock during the Restriction Period shall either be (i) paid to the grantee, or
(ii) accumulated for the benefit of the grantee and paid to the grantee only
after the expiration of the Restriction Period.

8.       DISCONTINUANCE OR AMENDMENT OF THE PLAN.

         The Board of Directors may discontinue the ISP at any time and may from
time to time amend or revise the terms of the ISP as permitted by applicable
statutes, except that it may not revoke or alter, in a manner unfavorable to the
grantees of any Incentives hereunder, any Incentives then outstanding, nor may
the Board amend the ISP without stockholder approval, where the absence of such
approval would cause the Plan to fail to comply with Rule 16b-3 under the
Exchange Act, or any other requirement of applicable law or regulation. No
Incentive shall be granted under the ISP after May 31, 1999 but Incentives
granted theretofore may extend beyond that date.

9.       NONTRANSFERABILITY

         Each Incentive granted under the ISP shall not be transferable other
than by will or the laws of descent and distribution or pursuant to a qualified
domestic relations order as defined under the Code, and with respect to Stock
Options, shall be exercisable, during the grantee's lifetime, only by the
grantee or the grantee's guardian or legal representative.

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10.      NO RIGHT OF EMPLOYMENT

         ISP and the Incentives granted hereunder shall not confer upon any
Eligible Employee the right to continued employment with the Company or affect
in any way the right of the Company to terminate the employment of an Eligible
Employee at any time and for any or no reason.

11.      TAXES

         The Company shall be entitled to withhold the amount of any tax
attributable to any amount payable or shares deliverable under the ISP after
giving the person entitled to receive such amount or shares notice as far in
advance as practicable and may condition delivery of certificates evidencing
shares awarded or purchased under the ISP upon receipt of funds to effect such
withholding.

12.      LISTING AND REGISTRATION OF THE SHARES

         Each option issued hereunder shall be subject to the requirement that
if at any time the Committee shall determine, in its discretion, that the
listing, registration or qualification of the shares subject to the option upon
any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the granting of such option or the issue or
purchase of shares thereunder, such option may not be exercised in whole or in
part unless and until such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Committee.

         "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933 AS AMENDED OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE
         TRANSFERRED WITHOUT AN OPINION OF COUNSEL SATISFACTORY IN FORM AND
         SUBSTANCE TO THE COMPANY THAT SUCH TRANSFER MAY BE LAWFULLY EFFECTED IN
         THE ABSENCE OF SUCH REGISTRATION."

 13.     EFFECTIVE DATE

         The Plan shall be effective as of June 1, 1994, provided, however, that
any Incentives awarded prior to approval by stockholders of the Company as
contemplated by Rule 16b-3 under the Exchange Act shall be contingent upon such
approval and shall be void if not so approved on or before May 31, 1995.

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