Document:

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                                                                   EXHIBIT 10.25

                          STRATEGIC ALLIANCE AGREEMENT
                          ----------------------------

     This Agreement, dated September 15, 1999 ("Effective Date") is made between
InforMax, Inc. ("InforMax"), a Delaware corporation doing business at 6010
                 --------
Executive Boulevard, North Bethesda, Maryland 20852 and AxCell Biosciences
Corporation ("AxCell"), a Delaware corporation doing business at 600 College
              ------
Road East, Princeton, New Jersey 08540, who, intending to be legally bound,
hereby agree as follows:

1.  INTRODUCTION

    1.1.  InforMax has rights in software called Software Solutions for
BioMedicine and related end user documentation ("SSBM") and distributes certain
                                                 ----
third party public and private genome data therewith ("Genome Database").
                                                       ---------------

    1.2.  AxCell has rights in its proprietary protein interaction data (the

"Protein Database").
-----------------

    1.3.  The parties desire to work together to (i) integrate the Protein
Database with SSBM to permit use with other databases including the Genome
Database, (ii) develop certain Tools for SSBM to enable the users of SSBM to
access the Protein Database and (iii) market and sell subscriptions for the
Protein Database to existing and potential SSBM customers as well as related
professional, research, and development services all in accordance with the
terms of this Agreement.

2.  DEFINITIONS

    2.1.  "Confidential Information" means Protein Database, Genome Database,
           ------------------------
SSBM, any business or technical information of a party, including but not
limited to any information relating to a party's product plans, designs, costs,
finances, marketing plans, business opportunities, personnel, research,
development or know-how, and the terms and conditions of this Agreement.
Confidential Information shall not include information that: (i) is in or enters
the public domain without breach of this Agreement through no fault of the
receiving party; (ii) the receiving party was demonstrably in possession of
prior to first receiving it from the disclosing party; (iii) the receiving party
can demonstrate it was developed by the receiving party independently and
without use of or reference to the disclosing party's Confidential Information;
or (iv) the receiving party receives from a third party without restriction on
disclosure and without breach of a nondisclosure obligation.

    2.2.  "Database Launch Date" means the date the Protein Database is mutually
           --------------------
accepted and first made commercially available by InforMax and/or AxCell.

    2.3.  "Distributor" means a direct or indirect customer of InforMax who is
           -----------
authorized by a distributor agreement as specified in Section 4.3 to distribute
                                                      -----------
the Protein Database to End Users or other Distributors.

    2.4.  "End User" means a customer who is authorized by an end user
           --------
subscription agreement as specified in Section 4.2 to use the Protein Database.
                          -----------
    2.5.  "Genome Database" has the meaning set forth in Section 1.1.
           ---------------                               -----------
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    2.6.  "Intellectual Property Rights" means patent rights, copyright rights
           ----------------------------
(including, but not limited to, rights in audiovisual works and moral rights),
trade secret rights, and any other intellectual property or proprietary rights
recognized by the law of each applicable jurisdiction.

    2.7.  "Marks" means trademarks, service marks, trade names, logos or
           -----
designations.

    2.8.  "Net Revenues" means [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
           ------------

    2.9.  "Protein Database" has the meaning set forth in Section1.3.
           ----------------                               ----------

    2.10.  "SSBM" has the meaning set forth in Section1.1.
            ----                               ----------

    2.11.  "Tools" has the meaning set forth in Section3.1.1.
            -----                               ------------
3.  COLLABORATION

    3.1.  Integration Project.
          -------------------

          3.1.1.  General.  The parties shall collaborate with each other in a
project ("Integration Project") to develop the Protein Database and to develop
          -------------------
new visual and analytical software tools and/or algorithms and related
documentation for the purpose of making the Protein Database accessible via SSBM
and creating specific enhancements related thereto ("Tools"). The parties agree
                                                     -----
that AxCell will have primary responsibility for developing the Protein Database
in a format agreed to between the parties that will be compatible with SSBM, and
InforMax will have primary responsibility for developing the Tools.

          3.1.2. Project Plan. Prior to commencement of the Integration Project,
the parties will, by mutual agreement, develop a project plan (the "Project
                                                                    -------
Plan") to govern the Integration Project, and the Project Plan will contain the
----
specification of the work to be performed (including the identification and
specification of any Tools), each party's responsibilities, a project schedule,
milestones, schedule of deliverables, and a completion date. [CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED]

          3.1.3.  Change Control.  Both parties acknowledge that the scope of
the Integration Project may require modification from time to time to meet
changing requirements or to take advantage of new technologies or processes. The
parties agree to discuss in advance any proposed change to determine its
desirability and its impact on the cost and schedule, and to refrain from making
any such change until it has been discussed and mutually approved by both
parties. For any approved change, the Project Plan will be modified accordingly.

          3.1.4.  Acceptance.  Upon completion of the Protein Database and any
Tools, both parties will participate in acceptance testing to ensure that the
Protein Database and any Tools conform to the specifications, and will notify
the other [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] from delivery thereof of
any defects it has found. Each party will be responsible for correcting any
deficiency so noted in its portion of the deliverables and resubmitting any such
deliverables for retesting, until the parties mutually agree that the Protein
Database and Tools conform with the specifications set forth in the Project
Plan. [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

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          3.1.5.  Database Launch Date. [CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED]

          3.1.6.  SSBM License.  Subject to the terms and conditions of this
Agreement, InforMax will provide to AxCell a non-transferable, non-exclusive,
license to use SSBM during the term of this Agreement solely for its internal
business purposes in accordance with InforMax's standard terms and conditions,
as modified for this arrangement, such software to be installed on an AxCell-
owned server.

    3.2.  Marketing.  In the interest of promoting the Database, the parties
          ---------
agree to:

          3.2.1.  Actively work together to develop a joint marketing plan in
accordance with this Agreement covering mutually agreed upon marketing and
promotional activities and related budgets to promote the Protein Database, and
other products or services to which the plan will apply, including related
professional, research and development services ("Joint Marketing Plan"),
                                                  --------------------
[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED];

          3.2.2.  Each use their commercially reasonable efforts to vigorously
advertise, market, promote the Protein Database and other products or services
to which the Joint Marketing Plan applies in accordance with the Joint Marketing
Plan and this Agreement, provided that neither party will use advertisements or
marketing material that contain the other party's Marks that have not been
approved in writing by the other party;

          3.2.3.  Coordinate and assist each other in joint presentations and
sales efforts as reasonably requested by the other party in accordance with the
agreed upon Joint Marketing Plan, and coordinate prospective customer calls as
necessary in cases where such joint presentations or similar cooperative
marketing or technical support efforts are anticipated.

          3.2.4.  Furnish each other with all reasonable scientific and
technical information and assistance for marketing support and planning
purposes.

          3.2.5.  Assist each other to develop appropriate educational and
promotional materials, and provide each other with copies of appropriate
promotional documentation, that each party's sales force may use for purposes of
this Agreement. All such material, however, to the extent it concerns the other
party's products and/or services, shall be subject to prior approval by such
other party in each case;

          3.2.6.  Periodically inform the other concerning any market
information that comes to the attention of that party respecting the other
party, its products and services, or the continued competitiveness of the other
party's products and services in the marketplace;

          3.2.7.  Provide appropriate technical support to the other for
demonstrations and mutually agreed upon general sales promotion as well as for
selected exhibitions and promotional seminars on a case-by-case basis; and

          3.2.8.  Perform its obligations under the Joint Marketing Plan.

    3.3.  Management.  Each party shall appoint two senior managers to act as
          ----------
the primary representatives responsible for facilitating communication between
the parties and for coordinating the activities associated with the Integration
Project and each party's marketing efforts. Each party shall

                                      -3-
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manage its own activities. The Parties' representatives shall confer, as needed,
to assess the status of the Integration Project, each party's marketing efforts,
and to coordinate on upcoming activities as necessary.

    3.4.  Staff.  Each party shall train and maintain a sufficient number of
          -----
capable technical and sales personnel having the knowledge and training
necessary to (i) inform customers properly concerning the features and
capabilities of the Protein Database; (ii) service and support the Protein
Database in accordance with its obligations under this Agreement; and (iii)
otherwise carry out its obligations and responsibilities under this Agreement.

     3.5.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

4.  PROTEIN DATABASE LICENSE GRANT

     4.1.  Protein Database License.  Subject to the following sentence, AxCell
           ------------------------
grants InforMax an exclusive, worldwide license to (i) market, promote,
reproduce for distribution, distribute and sublicense the Protein Database to
Distributors and End Users solely for their own internal business purposes
during the term of this Agreement and (ii) use a reasonable number of copies of
the Protein Database for the sole purpose of performing its obligations under
Section 3, demonstrating the Protein Database, and providing training to
---------
Distributors and End Users.  Notwithstanding anything to the contrary, AxCell
may market, promote, reproduce for distribution, distribute and sublicense the
Protein Database directly to End Users solely for their internal business
purposes but may not appoint another distributor to do so.

     4.2.  End User Agreement. [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
           ------------------

     4.3.  Distributor Agreement. [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
           ---------------------

     4.4.  License Restrictions.  InforMax will not modify the Protein Database
           --------------------
in any manner, except as it may be expressly directed by AxCell in writing.

     4.5.  Pricing.  The parties understand and agree that the Protein Database
           -------
and SSBM may be priced and licensed separately.

5.  ADDITIONAL OBLIGATIONS AND COVENANTS

     5.1.  AxCell's Obligations.  In addition to AxCell's other obligations set
           --------------------
forth in this Agreement, AxCell shall:

          5.1.1.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED];

          5.1.2.  Promptly inform InforMax in writing of any analytic or
visualization tools or other software enhancements AxCell determines are
reasonably necessary or desirable to include as Tools, and of any SSBM or Tools
defects, intellectual property infringement claims, or customer complaints;

          5.1.3.  Introduce InforMax's staff to AxCell's established contacts
and other appropriate personnel in the pharmaceutical industry who may be
interested in SSBM and/or the Protein Database and promptly inform InforMax of
any potential customers for the Protein Database or SSBM;

          5.1.4.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED];

                                      -4-
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          5.1.5.  Perform its obligations under any research and development
contracts that involve use of the Protein Database and/or SSBM to define targets
and validate leads;

          5.1.6.  Make available to End Users at rates no higher than AxCell's
published rates and if ordered, perform, appropriate and desirable Protein
Database related training and professional services;

          5.1.7.  Provide primary technical and scientific support to End Users
regarding the Protein Database, which shall include, without limitation,
diagnosing problems and using its reasonable efforts to provide solutions and
the other support obligations; and

          5.1.8.  Perform AxCell's obligations set forth in Section 3.
                                                            ---------
    5.2.  InforMax's Obligations.  In addition to InforMax's other obligations
          ----------------------
set forth in this Agreement, InforMax shall:

          5.2.1.  Assist in the use of SSBM to find targets and validate leads
for customers;

          5.2.2.  Make available to End Users at rates no higher than InforMax's
published rates and if ordered, perform appropriate and desirable Protein
Database related professional services support for the Protein Database;

          5.2.3.  Provide primary technical support to End Users regarding the
use of SSBM in accordance with InforMax's standard polices relating thereto;

          5.2.4.  Provide reasonable amounts of SSBM related training to
AxCell's technical and sales staff free of charge to enable such staff to inform
customers properly concerning the features and capabilities of SSBM; and

          5.2.5.  Perform InforMax's obligations set forth in Section 3,
                                                              ---------
including without limitation, developing the Tools in accordance with the
Project Plan as set forth in Section 3.
                             ---------

    5.3.  Covenants.  Each party covenants to the other that it will (i) conduct
          ---------
business in a manner that reflects favorably at all times on the other party's
products and services, and the good name, good will and reputation of the other
party, (ii) avoid deceptive, misleading or unethical practices that are or might
be detrimental to the other party, its products and services, or the public;
(iii) make no false or misleading representations with regard to the other party
or its products and services; (iv) not publish or employ, or cooperate in the
publication or employment of, any misleading or deceptive advertising material
with regard to the other party or its products and services; and (v) make no
representations, warranties or guarantees to customers or to the trade with
respect to the specifications, features or capabilities of the other party's
products and services that are inconsistent with the literature distributed by
the other party.

    5.4.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

    5.5.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

          5.5.1.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

                                      -5-
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          5.5.2.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

6.  PAYMENTS

    6.1.  Compensation.  Each party will pay royalties and fees to the other
    ------------
based upon the timing of End User payment as set forth in Exhibit A.
                                                          ---------

    6.2.  Payment Terms.  Within thirty (30) days from the close of the
          -------------
preceding calendar quarter, each party will pay the other for any royalties or
fees due under this Agreement (based on Section 6.1 above) for payments received
                                        -----------
from End Users during such quarter and within twenty (20) days from the close of
such quarter. Interest shall accrue on any past due payments at the lesser of
one and one-half percent (1-1/2%) per month or the maximum rate permitted by
applicable law.

    6.3.  Taxes.  Each Party shall be responsible for paying any and all taxes
          -----
resulting from any of its sales of Protein Database subscriptions, or of any
associated products and services, such taxes including but not limited to any
national, federal, state or local sales, income, use, value-added or other
taxes, customs duties, or similar tariffs and fees, but excluding any tax or
levy on the income of the non-selling party.

7.  REPORTS, RECORDS AND AUDITS

    7.1.  Reports.  Within [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED] after the
          --------
close of each calendar quarter each party will deliver to the other party a
report which will provide all information reasonably necessary for computation
and/or confirmation of the payments, if any, due or credited to the other party
for such period.  Such report will include quarter gross revenues, deductions by
category, and net revenues received by customer and in total.  In addition, an
accounts receivable report by customer and in total will be included to
reconcile the royalty and fees payment, net revenues and cash receipts.

    7.2.  Records and Audits. [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]
          ------------------

8.  TERM AND TERMINATION

    8.1.  Term.  The term of this Agreement will begin on the Effective Date and
          ----
will continue for three (3) years from the Database Launch Date unless it is
terminated earlier in accordance with the provisions hereof.

    8.2.  Events of Termination.  Either party will have the right to terminate
          ---------------------
this Agreement if: (i) the other party breaches any material term or condition
of this Agreement and fails to cure such breach within [CONFIDENTIAL TREATMENT
HAS BEEN REQUESTED] after written notice (including without limitation if
InforMax fails to materially perform its marketing obligations hereunder); or
(ii) the other party becomes the subject of an involuntary petition in
bankruptcy or any involuntary proceeding relating to insolvency, receivership,
liquidation, or composition for the benefit of creditors, if such involuntary
petition or proceeding is not dismissed within sixty (60) days of filing, or
becomes the subject of a voluntary petition in bankruptcy or any voluntary
proceeding relating to insolvency, receivership, liquidation, or composition for
the benefit of creditors. In addition, AxCell may terminate this Agreement in
accordance with the provisions of Section 5.4.

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    8.3.  Effect of Termination.
          ---------------------

          8.3.1.  Upon termination or expiration of this Agreement: (i) all
license rights granted to each party hereunder will automatically terminate, and
InforMax will immediately cease soliciting orders for the Protein Database; (ii)
each party will immediately cease use of the other party's Marks and cease all
marketing activities with respect to the other party's products and services;
and (iii) each party will immediately return to the other party or (at the other
party's request) destroy all copies of the Protein Database and other
Confidential Information in its possession or control, and an officer of such
party will certify to the other party in writing that it has done so.
Notwithstanding the foregoing, the license grant in Section 10.1 shall survive
                                                    ------------
termination or expiration of this Agreement and all end user agreements for
Protein Database subscriptions will remain in full force and effect. Upon such
termination or expiration, AxCell will maintain, update and transport updates to
such End Users, and support such End User's use of the Database for the term of
their Protein Database subscription.

          8.3.2.  Each party shall remain obligated to pay and shall continue to
pay any royalties due the other arising out of any sales of any Protein Database
subscriptions prior to the date of termination, but the obligation to pay
royalties shall cease upon the expiration or termination of such Protein
Database subscriptions as well as all on-going royalties due for End User
discoveries made using the Protein Database during the life of such End User's
subscription.

          8.3.3.  The rights and obligations of the parties contained in
Sections 8.3, 9, 10, 12, 13, and 15 will survive the termination or expiration
of this Agreement.

    8.4.  Nonexclusive Remedy.  The exercise by either party of any remedy under
          -------------------
this Agreement will be without prejudice to its other remedies under this
Agreement or otherwise.

9.  CONFIDENTIALITY

    9.1.  Obligations.  Each party will maintain the Confidential Information of
          -----------
the other party in strict confidence and will exercise due care with respect to
the handling and protection of such Confidential Information, consistent with
its own policies concerning protection of its own Confidential Information of
like importance, which require at least reasonable care. Each party will use the
Confidential Information of the other party only as expressly permitted herein,
and will disclose such Confidential Information only to its employees and
consultants as is reasonably required in connection with the exercise of its
rights and obligations under this Agreement (and only subject to binding use and
disclosure restrictions at least as protective as those set forth herein
executed in writing by such employees and consultants). However, each party may
disclose Confidential Information of the other party pursuant to the order or
requirement of a court, administrative agency, or as required by applicable law,
and the receiving party will give reasonable notice to the other party to
contest such order or requirement. Any such disclosure by the receiving party of
the Confidential Information of the disclosing party, will, in no way, be deemed
to change, affect or diminish the confidential and proprietary status of such
Confidential Information. Each party's obligations under this Section 9 will
                                                              ---------
survive for a period of five (5) years from the termination or expiration of
this Agreement.

    9.2.  Injunctive Relief.  Each party acknowledges that improper use or
          -----------------
disclosure of the Confidential Information of the other party would cause
substantial harm to the other party that could not be remedied by the payment of
damages alone.  Accordingly, each party will be entitled to preliminary and
permanent injunctive relief and other equitable relief for any breach of this
Section9.
--------

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10.  PROPRIETARY RIGHTS

     10.1.  AxCell's Ownership.  The Protein Database, and all updates thereto
            ------------------
are and will remain the sole and exclusive property of AxCell, including all
Intellectual Property Rights therein, AxCell reserves all rights in the Protein
Database not expressly granted herein. AxCell will use its reasonable best
efforts to protect and maintain the value of the Protein Database, and to
preserve all of its Intellectual Property Rights therein.

    10.2.  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

    10.3.  InforMax's Ownership.  SSBM and all updates or enhancements to SSBM
           --------------------
are and will remain the sole and exclusive property of InforMax and its
suppliers, if any, including all Intellectual Property Rights therein, whether
such items are separate or combined with any other products, and InforMax
reserves all rights in such items not expressly granted herein.

    10.4.  Proprietary Rights Notices.  Neither party will delete or in any
           --------------------------
manner alter the Intellectual Property Rights notices of the other party and its
suppliers, if any, appearing on or in connection with the Protein Database, SSBM
or the Tools, and will reproduce and display such notices on each copy it makes
of such items. Each party will also include appropriate trademark notices when
referring to SSBM or the Protein Database in advertising and promotional
materials.

    10.5.  Third Party Infringement.  Each party will use its reasonable efforts
           ------------------------
to protect the other party's Intellectual Property Rights in the Protein
Database, SSBM, and Tools, as applicable, and will report promptly to the other
party any infringement of such rights of which it becomes aware.

    10.6.  Trademarks.  Subject to the terms and conditions of this Agreement,
           ----------
each party grants to the other party a non-exclusive, non-transferable license
for the term of this Agreement to use the Marks of such party in connection with
the other party's performance of its marketing and promotional obligations set
forth in Section 3.2. Each party's use of the other party's Marks must be in
         -----------
accordance with other party's trademark usage guidelines then in effect, and
such use will inure to the other party's benefit. Nothing in this Agreement
grants to either party ownership or any rights in or to use the Marks of the
other party, except in accordance with this license. The rights granted in this
Section 10.6 will terminate upon any termination or expiration of this
------------
Agreement. Upon such termination or expiration, each party will no longer make
any use of any of the other party's Marks. Each party will have the exclusive
right to own, use, hold, apply for registration for, and register its Marks
during the term of, and after the expiration or termination of, this Agreement
and the other party will neither take nor authorize any activity inconsistent
with such exclusive right.

11.  WARRANTIES

     AxCell warrants to InforMax that it has sufficient right and authority to
grant to InforMax all licenses and rights that AxCell grants under this
Agreement. InforMax warrants to AxCell that it has sufficient right and
authority to grant to AxCell all licenses and rights that InforMax grants under
this Agreement. THE WARRANTIES IN THIS SECTION ARE IN LIEU OF ALL OTHER
WARRANTIES, EXPRESS AND IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
NONINFRINGEMENT.

12.  INDEMNITIES

     12.1.  Mutual Indemnity. Each party agrees to indemnify and hold harmless
            ----------------
the other party against any third party claims against the indemnified party for
loss, damage, liability, or expense (including but not limited to reasonable
attorneys' fees) ("Losses") arising out of any acts or omissions of indemnifying
party arising from (i) the indemnifying party's willful misconduct, or
(ii) abreach of the indemnifying party's obligations under Section 5.3.
                                                           -----------

     12.2.  By InforMax. InforMax agrees to indemnify and hold harmless AxCell
            -----------
from and against third party claims against AxCell for Losses arising out of any
claim that the SSBM or the Tools as supplied by InforMax infringe a U.S. patent,
copyright or trade secret of a third party. If a final injunction is obtained in
any such claim, or if in InforMax's opinion such an injunction is likely to be
obtained, InforMax may, at its sole option, either (a) obtain for AxCell's
customers the right to continue using the infringing item, (b) replace or modify
the infringing item or infringing portion thereof so that it becomes
noninfringing, or (c) if neither (a) nor (b) can be reasonably effected by
InforMax, terminate this Agreement. The foregoing indemnity will not apply to
modifications to the Tools or SSBM not performed by InforMax or InforMax's
compliance with AxCell's specifications or requirements for the Tools. The
foregoing states the entire liability of InforMax with respect to infringements
of any intellectual property rights by the Tools or SSBM or their use.

                                      -8-
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     12.3.  By AxCell. AxCell agrees to indemnify and hold harmless InforMax
            ---------
from and against third party claims against InforMax for Losses arising out of
any claim that Protein Database as supplied by AxCell infringes a U.S. patent,
copyright or trade secret of  third party. If a final injunction is obtained in
any such claim, or if in AxCell's opinion such an injunction is likely to be
obtained, AxCell may, at its sole option, either (a) obtain for InforMax's
customers the right to continue using the Protein Database or (b) replace or
modify the or infringing portion thereof so that it becomes noninfringing. The
foregoing indemnity will not apply to modifications to the Protein Database not
performed by AxCell. The foregoing states the entire liability of AxCell with
respect to infringements of any intellectual property rights by the Protein
Database or its use.

     12.4.  Contingency.  The foregoing indemnities shall be contingent upon (i)
            -----------
the indemnified party giving prompt written notice to the other party of any
claim, demand or action for which indemnity is sought; (ii) the indemnified
party being given sole control of the defense thereof; and (iii) the indemnified
party fully cooperating in the defense or settlement of any such claim, demand
or action, at the expense of the indemnifying party.

13.  LIMITATIONS OF LIABILITY

     IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PART FOR ANY SPECIAL,
INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF CONTRACT, TORT
(INCLUDING NEGLIGENCE), PRODUCT LIABILITY, OR OTHERWISE, AND WHETHER OR NOT SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. INFORMAX'S TOTAL
LIABILITY TO AXCELL UNDER THIS AGREEMENT WILL BE LIMITED TO THE PAYMENTS DUE
FROM INFORMAX UNDER THIS AGREEMENT. The parties have agreed that the limitations
specified in this Section 13 will survive and apply even if any limited remedy
specified in this Agreement is found to have failed of its essential purpose.

14.  COMPLIANCE WITH LAW

     Each party will comply with all applicable international, national, state,
regional, and local laws and regulations in performing its duties hereunder and
in any of its dealings with respect to the products of the other party.

15.  GENERAL

    15.1.  Assignment.  This Agreement will bind and inure to the benefit of
each party's permitted successors and assigns. Any assignment of this Agreement
by AxCell (except to an entity controlling, controlled by or under common
control with AxCell) without the prior written consent of InforMax shall be null
and void.

    15.2.  Non-Solicitation.  The parties agree that, for the duration of the
term of this Agreement and for twelve (12) months thereafter, neither party
shall, directly or indirectly or for or on the behalf of any entity, solicit the
employment or services of the employees of the other party or enter into any
agreement for the purpose of causing such employees to leave the employment of
the other party.

    15.3.  Press Release.  The parties agree to issue joint press releases (i)
announcing the execution of this Agreement within five (5) days of such
execution and (ii) announcing the commercial availability of the Protein
Database within five (5) days of the Database Launch Date.

    15.4.  Governing Law.  This Agreement will be governed by and construed in
accordance with the laws of the State of New York, excluding that body of law
known as conflicts of laws.

    15.5.  Severability.  If any provision of this Agreement is found invalid or
           ------------
unenforceable, that provision will be enforced to the maximum extent
permissible, and the other provisions of this Agreement will remain in full
force and effect.

    15.6.  Force Majeure.  Neither party shall be liable to the other party for
           -------------
failure or delay in fulfilling its obligations under this Agreement to the
extent that such failure or delay is due to causes beyond its control.

    15.7.  Notices.  All notices under this Agreement will be deemed given when
           -------
delivered personally, sent by confirmed facsimile transmission, or sent by
certified or registered U.S. mail or

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<PAGE>

nationally-recognized express courier, return receipt requested, to the
respective addresses set forth in this Agreement or as may otherwise be
specified by either party to the other in accordance with this section.

    15.8.  Independent Contractors.  The parties to this Agreement are
           -----------------------
independent contractors. There is no relationship of partnership, joint venture,
employment, franchise, or agency between the parties. Neither party will have
the power to bind the other or incur obligations on the other's behalf without
the other's prior written consent.

    15.9.  Waiver.  Failure or delay by either party to enforce compliance with
           ------
any term or condition of this Agreement shall not constitute a waiver of such
term or condition.

    15.10.  Dispute Resolution and Binding Arbitration.
            ------- ---------- --- ------- -----------

          15.10.1.  The parties shall attempt to settle any dispute between them
amicably and agree to exercise their best efforts to resolve the controversy or
dispute prior to seeking a judicial resolution. To invoke the dispute resolution
process, the invoking party shall give to the other party written notice of its
decision to do so, including a description of the issues subject to the
controversy or dispute and a proposed resolution thereof. The InforMax Project
Managers and the AxCell Project Managers shall attempt to resolve the
controversy or dispute within five (5) business days after receipt of such
notice. If they cannot resolve the controversy or dispute, the parties shall
meet at InforMax's office and describe the controversy or dispute and their
respective proposals for resolution to their respective chief operating officers
or another designated person with comparable authority who shall act in good
faith to resolve the controversy or dispute. If the controversy or dispute is
not resolved within ten (10) business days after such meeting, the parties by
mutual Agreement may engage an independent consultant to mediate the controversy
or dispute and the charges of the independent consultant shall be shared equally
by the parties. However, nothing in this clause shall preclude any party from
commencing suit or arbitration if said negotiations do not reach a resolution
within thirty (30) days after written notice that the negotiations have
commenced.

          15.10.2.  In the event that the parties cannot reach an amicable
settlement through an informal dispute resolution process, the parties agree
that any dispute, controversy, or claim arising out of or relating to this
contract, or the breach, termination or invalidity thereof, shall be finally
settled by binding arbitration. Such binding arbitration shall take place in the
location reasonably selected by the party not initiating the arbitration, and
shall be administered by the American Arbitration Association under its
Commercial Arbitration Rules. The number of arbitrators shall be one (1) and
shall be appointed within thirty (30) days following the commencement of
arbitration. If possible, the arbitrator will be an expert in the field of
bioinformatics and software development. If the parties cannot agree on an
arbitrator within such thirty (30) day period, the number or arbitrators shall
be increased to three (3), and each party will select an arbitrator within
fifteen (15) days, and those arbitrators will promptly select a third
arbitrator.

          15.10.3.  The arbitrator's award shall be final and binding and
judgment on the award rendered by the arbitrator(s) may be entered in any court
having jurisdiction thereof. The parties expressly agree that prior to the
selection of the arbitrator(s), nothing in this Agreement shall prevent the
parties from applying to a court that would otherwise have jurisdiction for
provisional or interim measures.

                                      -10-
<PAGE>

          15.10.4.  The costs of the arbitration shall be borne by the parties
to the arbitration in equal shares. Each party shall pay its own costs and
expenses, including attorneys' fees. The arbitration shall be conducted in the
English language. All submissions shall be made in English or with an English
translation. Witnesses may provide testimony in a language other than English,
provided that a simultaneous English translation is provided. Each party shall
bear its own translation costs.

    15.11.  Entire Agreement.  This Agreement and its exhibits are the complete
            ----------------
and exclusive agreement between the parties with respect to the subject matter
hereof, superseding and replacing any and all prior agreements, communications,
and understandings (both written and oral) regarding such subject matter. This
Agreement may only be modified, or any rights under it waived, by a written
document executed by both parties.

              [The rest of this page is intentionally left blank.]

                                      -11-
<PAGE>

     The parties have caused this Agreement to be executed by their duly-
authorized representatives as of the Effective Date.

InforMax:                            AxCell:
         -----------------------            ------------------------------

By:   /s/ Alex Titomirov             By:   /s/ Brian Bullard

Name:   Alex Titomirov               Name:   Brian Bullard

Title:   President/CEO               Title:   Vice President, CIO

                                      -12-
<PAGE>

                  [CONFIDENTIAL TREATMENT HAS BEEN REQUESTED]

                                     -13-<PAGE>

                                                                   Exhibit 10.26

AXCELL BIOSCIENCES CORPORATION
STOCK OPTION PLAN

1.   Purpose; Effective Date.

This Stock Option Plan is intended to encourage stock ownership by directors,
employees and designated paid consultants of AxCell BioSciences, Inc., a
Delaware corporation (the "Company", which shall include any subsidiaries of the
Company), in order to increase their proprietary interest in the success of the
Company and to encourage them to remain in its employ.  The Plan provides for
options which qualify as incentive stock options as well as Non-Qualified Stock
Options. The effective date of this Plan is August 15, 1998, subject to approval
by the sole stockholder of the Company.

2.   Definitions.

Whenever used in this Plan, the following terms will have the meanings set forth
in this paragraph:

     "Board of Directors" means, until such time as the Company is Publicly
     Traded, or is no longer a subsidiary of Cytogen Corporation, the Board of
     Directors of Cytogen Corporation. At such time as the Company is Public
     Traded, "Board of Directors" shall mean the Board of Directors of AxCell
     BioSciences Corporation, and at such time as the Company is a subsidiary of
     a corporation other than Cytogen Corporation, the Board of Directors (or
     comparable governing body) of such other corporation.

     "Code" means the U.S. Internal Revenue Code of 1986, as amended.

     "Committee" means the committee described in paragraph 3.

     "Common Stock" means the common stock, par value $.01 per share, of the
     Company.

     "Consultant" shall mean a paid consultant of the Company who would be
     eligible to participate in a plan registrable under Form S-8 of the
     Securities and Exchange Commission, or comparable successor forms.

     "Date of Grant" means with respect to any Option the date the Committee
approves the grant of the Option or such later date as may be specified by the
Committee as the date the option will become effective.

     "Employee" means any person employed by the Company (including, without
limitation, a person employed by the Company who is also an officer or director
of the Company).

     "Exercise Price" means with respect to any Option the price per share which
must be paid upon exercise of the Option.
<PAGE>

     "Fair Market Value" means (i) if the Company's stock is not registered
under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, such fair
market value as shall be determined by the Board or the Committee in good faith,
(ii) if the Common Stock is traded in a market in which actual transactions are
reported, the average of the high and low prices at which the Common Stock is
reported to have traded on the relevant date in the principal market on which
trading in the Common Stock is reported, or if there is no reported sale of the
Common Stock on the relevant date, the average of the highest reported bid price
and lowest reported asked price for the Common Stock on the relevant date, or
(iii) if the Common Stock is Publicly Traded but only in markets in which there
is no reporting of actual transactions, the average of the highest reported bid
price and the lowest reported asked price for the Common Stock on the relevant
date.

     "Incentive Stock Option" means any Option that at the time of the grant
qualifies and is designated as an incentive stock option within the meaning of
Section 422 of the Code.

     "Non-Qualified Option" means any Option that is not an Incentive Stock
Option.

     "Option" means any Incentive Stock Option or Non-Qualified Option granted
under this Plan.

     "Option Agreement" means an agreement in such form as may be determined by
the Committee, executed and delivered by the Company to the holder of any Option
with respect to that Option.

    "Outside Director" means a member of the Board who is a "disinterested
person" within the meaning of rules promulgated under Section 16(b) of the
Securities Exchange Act of 1934, or any successor provision, and is a non-
employee director for purposes of Section 162(m) of the Code, and meets such
other applicable requirements with respect to employee stock option plans as may
imposed by a stock market or other governing entity.

     "Plan" means the AxCell Biosciences Corporation 1998 Stock Option Plan.

     "Publicly Traded" means, with respect to any class of stock, that the class
of stock is required to be registered under Section 12 of the Securities
Exchange Act of 1934, as amended, or that stock of that class has been sold
within the preceding 12 months in an underwritten public offering.

     "Ten Percent Shareholder" means, with respect to the grant of any Option, a
person who at the Date of Grant is the beneficial owner of stock possessing more
than 10% of the total combined voting power of all classes of stock of the
Company.

    "Termination of Employment" means the time when the employee-employer
relationship between an Employee and the Company ceases to exist for any reason,
or the time when an officer who is not also an Employee ceases to be an officer
of the Company for any reason, including, but not limited to, a termination by
resignation, discharge, death, Total Disability or

                                       2
<PAGE>

retirement. Any leave of absence taken with the consent of the Company for a
period of not more than 90 days shall not be a Termination of Employment, or if
longer, so long as the optionee's right to reemployment with the Company is
guaranteed by contract. If the period of leave exceeds 90 days and if the right
to reemployment is not guaranteed by contract, the Termination of Employment
will be deemed to occur on the 91st day of the leave.

     "Total Disability" means inability of an Employee to engage in any
substantial gainful activity by reason of a medically determinable physical or
mental impairment which can be expected to result in death or which has lasted
or can be expected to last for a continuous period of not less than 12 months.
All determinations as to the date and extent of disability of an Employee will
be made by the Committee.

3.   Administration.

     (a) This Plan shall be administered by a Committee of the Board of
Directors, which shall be composed of not less than two Outside Directors.  The
Committee may, from time to time, adopt or rescind rules and regulations for
carrying out the provisions and purposes of this Plan.  Subject to the express
provisions of this Plan, the Board or the Committee shall have the authority, in
their discretion, to determine which Employees (or categories of Employees)
shall receive Options, the time when Options shall be granted, the terms and
provisions of the Options (which may differ from one another) and to do
everything necessary or appropriate to administer this Plan, including, without
limitation, interpreting the provisions of this Plan and the Options.  All
determinations made by the Committee with respect to this Plan and the Options
shall be final, binding and conclusive.

     (b) No member of the Committee shall be liable for any act or omission of
the Committee or any other member of the Committee, or for any act or omission
on his own part, in connection with the administration, implementation or
interpretation of this Plan, unless it resulted from the member's own willful
misconduct.

4.   Persons Eligible to Receive Options.

     (a) Options may be granted under this Plan only to persons who at the Date
of Grant either (i) are officers or Employees of the Company, or (ii) have
agreed to become officers or Employees of the Company, and, in either case, are
determined by the Committee to be of substantial importance to the Company, or
(iii) directors of the Company, until such time as the Company becomes Publicly
Traded, or (iv) Consultants of the Company.

     (b) Options granted to persons who are not yet officers or Employees at the
Date of Grant may not be exercised until the optionee has become an officer or
Employee, and shall expire if the optionee fails to commence service as an
officer or Employee within six months (or such other period as the Committee may
determine) after the Date of Grant.

    (c) Incentive Stock Options may be granted only to persons who are Employees
at the Date of Grant, and only on such terms as are provided in paragraphs 6, 7
and 8 hereof.

                                       3
<PAGE>

     (d) No Employee to whom Options may be granted under this Plan may be
granted Options to purchase more than 200,000 shares in any one calendar year.

5.   Stock Subject to the Plan.

Subject to any adjustment as may be permitted in Section 10, the maximum number
of shares of Common Stock which may at any time be subject to Options, or which
may be issued upon the exercise of Options granted under the Plan, shall be
limited to 2,000,000 based upon a minimum share capitalization of 10,000,000
outstanding shares, with the remaining shares initially held by Cytogen
Corporation.  The shares reserved for issuance pursuant to the Plan may consist
either of authorized but previously unissued shares of stock, or of issued
shares of stock which have been reacquired by the Company.  If any Option
expires, terminates or is canceled for any reason without having been exercised
in full, the shares of stock allocable to the unexercised portion of such Option
may again be made subject to an Option under the Plan.

6.   Grants of Options.

     (a) Subject to paragraph 4(d), the Committee will have complete discretion
to determine when, and to which officers or other Employees, Options are to be
granted, the number of shares of Common Stock to which Options granted to each
officer or other Employee will relate, whether and to what extent Options
granted to an officer or other Employee will be Incentive Stock Options or Non-
Qualified Options and, subject to the provisions of paragraphs 7 and 8, the
Exercise Price and the term of each Option.  The Committee may, in its
discretion, provide that the Exercise Price may be paid in cash or by other
means; subject, however, to any requirements of applicable law which may limit
the type or amount of such non-cash consideration. If payment by interest
bearing promissory note at the applicable federal rate is permitted: (i) the
optionee shall be required to make a cash payment upon exercise of the Option of
not less than 20% of the Exercise Price; (ii) the note shall provide for full
recourse against the maker; and (iii) the note shall be payable in full prior to
its stated maturity upon the optionee's Termination of Employment for any reason
other than death or Total Disability.

     (b) Any Options which are not designated as Incentive Stock Options when
they are granted will be Non-Qualified Options.

     (c) Promptly after the Date of Grant of each Option, the Company shall
cause an Option Agreement to be executed and delivered to the holder of the
Option. The Option Agreement shall clearly state whether the Option granted is
or is not an Incentive Stock Option. Separate Option Agreements shall be used
for Incentive Stock Options and Non-Qualified Stock Options.

                                       4
<PAGE>

7.   Option Provisions.

     (a) Exercise Price.  No consideration shall be payable by any optionee for
the grant of an Option.  Subject to the provisions of paragraph 8, the Exercise
Price of each Option will be as determined by the Committee.  The Exercise Price
of a Non-Qualified Option may, until such time as the Company is Publicly
Traded, be less than the Fair Market Value of the Common Stock on the Date of
Grant of the Option; after such time as the Company is Publicly Traded, the
Exercise Price of a Non-Qualified Option may not be less than the Fair Market
Value of the Common Stock on the Date of Grant of the Option.

     (b) Term.  The term of each Option will be as determined by the Committee,
but in no event will the term of an Option be longer than ten years from the
Date of Grant, or five years in the case of an Incentive Stock Option granted to
a Ten Percent Shareholder.  Options may not be exercised before six months after
the Date of Grant.  Options will cease to be exercisable prior to the expiration
of their term under certain circumstances as provided in paragraphs 7(f), (g),
and (h).  Subject to the foregoing, and to any vesting or other conditions
imposed at the time it is granted, an Option may be exercised in whole or in
part at any time, or from time to time, during its term.

     (c) Manner of Exercise.  To exercise an Option, the person exercising the
Option must deliver to the Company, at its principal office:

         (i) a notice of exercise, which states the extent to which the Option
     is being exercised;

         (ii) a certified or bank cashier's check, or such other form of
     payment as the Company may permit, in an amount equal to the Exercise Price
     of the Option times the number of shares as to which it is being exercised,
     or consideration in such other form as may be permitted under the terms on
     which the Option is granted; and

         (iii) payment of an amount equal to any withholding taxes the
     Company is required to pay because of the exercise of the Option.  The date
     on which the Company receives all the items specified in this subsection
     will be the date on which the Option is exercised to the extent described
     in the notice of election.

     (d) Delivery of Stock Certificates.  As promptly as practicable after an
Option is exercised, the Company will deliver to the person who exercises the
Option certificates, registered in that person's name, representing the number
of shares of Common Stock which were purchased by the exercise of the Option.
Each certificate may bear a legend to indicate, if applicable, that (i) the
Common Stock represented by the certificate was issued in a transaction which
was not registered under the Securities Act of 1933, as amended, and may only be
sold or transferred in a transaction which is registered under that Act or is
exempt from the registration requirements of that Act, and (ii) the Common Stock
represented by the certificate is subject to the obligation of the holder to pay
any unpaid balance of the Exercise Price

                                       5
<PAGE>

(whether pursuant to a promissory note or otherwise), and/or that the Common
Stock is pledged to secure such an obligation.

     (e) Nontransferability of Options.  During the lifetime of the person to
whom an Option is issued, the Option may be exercised only by that person or his
or her guardian or legal representative.  An Option may not be assigned, pledged
or hypothecated in any way, will not be subject to execution, and will not be
transferable otherwise than by will or the laws of descent and distribution.
The Company will not recognize any attempt to assign, transfer, pledge,
hypothecate or otherwise dispose of an Option contrary to the provisions of this
Plan, or any levy of any attachment or similar process upon any Option, and,
except as expressly stated in this Plan, the Company will not be required to,
and will not, issue Common Stock on exercise of an Option to anyone who claims
to have acquired that Option from the person to whom it was granted.

     (f) Termination of Employment of Holder of Option Other Than Because of
Total Disability or Death.  If there is a Termination of Employment of a person
to whom an Option has been granted, other than by reason of the person's death
or Total Disability, each Option held by the person may be exercised (if
otherwise exercisable) until the earlier of (i) the end of the three-month
period immediately following the date of the Termination of Employment, (ii) the
expiration of the term specified in the Option, or (iii) such earlier time as
may be determined by the Committee at the time of granting the Option.

     (g)  Major Event.  Upon the occurrence of a Major Event, as defined below,
in addition to those shares available for purchase as of the date of the Major
Event all of the remaining Option Shares not then otherwise available for
purchase as of such date shall become immediately available for purchase.

         (i) The term "Major Event" as used in this Agreement shall mean (1) the
     Company enters into one or more definitive agreements to merge or
     consolidate the Company with or into another corporation, or to sell or
     otherwise dispose of all or substantially all of the Company's assets, or
     to effect any other transaction, consolidation or reorganization having
     similar results or effect, or to sell a greater than 50% interest to third
     parties other than in connection with the Company becoming Publicly Traded;
     provided, that such events shall not be deemed a Major Event, in the
     discretion of the Board or the Committee if provision is made in such
     transaction for the Options to be converted into equivalent securities of
     the entity with which such a transaction is entered at the same pricing as
     received by the Company or Cytogen Corporation (or its successors) in such
     transaction; and, following such time at which the Company is Publicly
     Traded: (2) any person other than the Company makes a tender or exchange
     offer for more than 50% of Common Stock pursuant to which purchases of any
     amount of Common Stock are made; (3) stock representing more than 50% of
     the voting power of the Company is acquired by any person other than the
     Company in any one or more transactions; or (4) within any 24-month period
     persons who were members of the Company's Board of Directors immediately
     prior to such 24-month period, together with any persons who were first
     elected as directors during such 24-month period by or upon the
     recommendation of members of the Board of Directors who were members
     immediately prior to such 24-month period and who constituted a

                                       6
<PAGE>

     majority of the Board of Directors at the time of such election, cease to
     constitute a majority of the Board of Directors.

     (g) Total Disability of Holder of Option.  If there is a Termination of
Employment of a person to whom an Option has been granted by reason of his or
her Total Disability, each Option held by the person may be exercised (if
otherwise exercisable) until the earlier of (i) the end of the one-year period
immediately following the date of the Termination of Employment, (ii) the
expiration of the term specified in the Option, or (iii) such earlier time as
may be determined by the Committee at the time of granting the Option.

     (h) Death of Holder of Option.  If there is a Termination of Employment of
a person to whom an Option has been granted by reason of his or her death, or a
former officer or Employee dies following the date of his or her Termination of
Employment but at a time when an Option still would be exercisable by that
person but for the death of the person, each Option held by the person at the
time of his or her death may be exercised by the person or persons to whom the
Option passed by will or by the laws of descent and distribution (but by no
other persons) until the earlier of (i) the end of the one-year period
immediately following the date of death (or such other period as may be
determined by the Committee at the time of granting the Option), (ii) the
expiration of the term specified in the Option, or (iii) if the death occurs
after the Termination of Employment, the end of the period in which the Option
could be exercised under paragraph 7(f) or (g).

     (i) Company's Right of First Purchase.  While and so long as the stock
of the class subject to this Plan has not been Publicly Traded for at least
ninety days, and as a long as there has been no Major Event, any shares of
common stock issued on exercise of any Option shall be subject to the Company's
right of first purchase. By virtue of that right, (a) such stock may not be
transferred during the optionee's lifetime to any person other than members of
the optionee's immediate family, a partnership whose members are the optionee
and/or members of the optionee's immediate family, or a trust for the benefit of
the optionee and/or members of the optionee's immediate family, unless such
transfer occurs within fifteen days following the expiration of thirty days
after the Company has been given a written notice which correctly identified the
prospective transferees and which offered the Company an opportunity to purchase
such shares at the price of a bona fide offer by the prospective transferee or
third party in cash, and such offer was not accepted within thirty days after
the Company's receipt of that notice; and (b) upon the optionee's death, the
Company shall have the right to purchase all or some of such stock at its fair
market value within nine months after the date of death. This right of first
purchase shall continue to apply to any such shares after the transfer during
the optionee's lifetime of that stock to a member of the optionee's immediate
family or to a family partnership or trust as aforesaid, and after any transfer
of that stock with respect to which the Company expressly waived its right of
first purchase without also waiving it as to any subsequent transfers thereof,
but it shall not apply after a transfer of that stock with respect to which the
Company was offered but did not exercise or waive its right of first purchase or
more than nine months after the optionee's death. The Company may assign all or
any portion of its right of first purchase to any one or more of its
stockholders, or to a pension or retirement Plan

                                       7
<PAGE>

or trust for employees of the Company, who may then exercise the right so
assigned. Stock certificates evidencing stock subject to this right of first
purchase shall be appropriately legended to reflect that right.

8.   Special Provisions Relating to Incentive Stock Options.

The Exercise Price of an Incentive Stock Option will be not less than 100% of
the Fair Market Value of the Common Stock on the Date of Grant of the Option.
An Incentive Stock Option may not be granted to a person who, at the time the
Option is granted, is a Ten Percent Shareholder, unless (i) the Exercise Price
of the Option is at least 110% of the Fair Market Value of the Common Stock on
the Date of Grant and (ii) the Option by its terms is not exercisable after the
expiration of five years from the Date of Grant.  To the extent that the
aggregate Fair Market Value (determined at the time an Incentive Stock Option is
granted) of the Common Stock with respect to which Incentive Stock Options are
first exercisable by an Employee during any calendar year (under this Plan and
any other incentive stock option plans of the Company) exceeds $100,000, such
Options shall be treated as Non-Qualified Options.

9.   Recapitalization.

     (a) The existence of outstanding Options shall not affect in any way the
right or power of the Company or its stockholders to make or authorize any or
all adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Common Stock or the rights thereof, or the
dissolution or liquidation of the Company, or any sale or transfer of all or any
part of its assets or business or any other corporate act or proceeding, whether
of a similar character or otherwise, or to sell additional shares of Common
Stock dilutive of the shares issuable upon exercise of Options.  Unless
otherwise determined by the Board, the issue by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class, for
cash or property, or for labor or services either upon direct sale or upon the
exercise of rights or warrants to subscribe therefor, or on conversion of shares
or obligations of the Company convertible into such shares or other securities,
shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number, class or price of shares of Common Stock then subject to
outstanding Options.

     (b) If as a result of any (i) reorganization or liquidation of the Company
or (ii) reclassification of the Company's capital stock, or (iii) consolidation
or merger of the Company with or into another corporation, or sale of all or
substantially all the assets of the Company (a reorganization or liquidation of
the Company or reclassification of the Company's capital stock, or a merger,
consolidation or sale of the type described in this subsection being a
"Corporate Transaction") while an Option is outstanding, the holders of the
Common Stock become entitled to receive with respect to their Common Stock,
securities or assets other than, or in addition to, their Common Stock, upon
exercise of that Option the holder will receive what the holder would have owned
if the holder had exercised the Option immediately before the Corporate
Transaction which occurred while the Option was outstanding and had not disposed

                                       8
<PAGE>

of anything the holder would have received as a result of that and all
subsequent Corporate Transactions.

10.  Rights of Option Holder.

     (a) The holder of an Option will not have any rights as a stockholder by
reason of holding that Option.  Upon exercise of an Option, the holder will be
deemed to acquire the rights of a stockholder when, but not before, the issuance
of Common Stock as a result of the exercise is recorded in the stock records of
the Company.

     (b) Nothing in this Plan or in the grant of an Option will confer upon any
Employee the right to continue in the employment of the Company or will
interfere with or restrict in any way the rights of the Company to discharge any
Employee at any time for any reason whatsoever, with or without cause, nor will
it impose any obligation on the Employee to remain in the employ of the Company.

11.  Laws and Regulations.

The obligation of the Company to sell and deliver shares of Common Stock on
exercise of Options will be subject to the condition that legal counsel for the
Company be satisfied that the sale and delivery will not violate the Securities
Act of 1933, as amended, or any other applicable laws, rules or regulations, and
to such conditions that the Company, if Publicly Traded, or Cytogen Corporation
(or its successor) may impose related to such securities laws requirements.  The
Company and Cytogen Corporation (or its successors) shall have no obligation to
take such steps as may be required to permit exercises if the Board or a
Committee determines in good faith that such steps are not in the best interest
of the Company or a parent corporation.

12.  Withholding of Taxes.

     (a) In addition to the requirement in paragraph 7(c) that in order to
exercise an Option a person must make a payment to the Company or authorize
withholding in order to enable the Company to pay any withholding taxes due as a
result of the exercise, if a person who exercised an Incentive Stock Option
disposes of shares of Common Stock acquired through exercise of that Incentive
Stock Option either (i) within two years after the Date of Grant of the
Incentive Stock Option or (E) within one year after the issuance of the shares
on exercise of the Incentive Stock Option, the person will notify the Company
promptly of the occurrence of the event and, if the event was a disposition of
Common Stock acquired on exercise of an Incentive Stock Option, the amount
realized upon the disposition.

     (b) If, whether because of a disposition of Common Stock acquired on
exercise of an Incentive Stock Option, or otherwise, the Company is required to
pay withholding taxes to any Federal, state or other taxing authority and the
Employee fails to provide the Company with the funds with which to pay that
withholding tax, the Company may withhold up to 50% of each payment of salary or
bonus to the Employee (which will be in addition to any other

                                       9
<PAGE>

required or permitted withholding), until the Company has been reimbursed for
the entire withholding tax it was required to pay.

     (c) The obligations contained in this paragraph 12 shall bind each
optionee, and each optionee, by accepting and/or exercising an Option, shall be
deemed to agree to observe and comply with them.

13. Reservation of Shares.

The Company will at all times keep reserved for issuance on exercise of Options
a number of authorized but unissued or reacquired shares of Common Stock equal
to the maximum number of shares the Company may be required to issue on exercise
of outstanding Options (assuming no subsequent adjustments under paragraph 9).

14.  Amendment of the Plan.

The Board of Directors may at any time and from time to time modify or amend
this Plan in any respect effective at any date the Board of Directors
determines, subject to such requirements as may be imposed by the Securities
Exchange Act of 1934, as amended, the Code, or by the rules of any stock market
relating to stockholder approval, if applicable. No modification or amendment of
this Plan will, without the consent of the holder of an outstanding Option,
adversely affect the holder's rights under that Option.

15.  Interpretation

The Committee shall have the power to interpret the Plan and to make and amend
rules for putting it into effect and administering it. It is intended that the
Incentive Stock Options granted under the Plan shall constitute incentive stock
options within the meaning of section 422 of the Code, that the Non-Qualified
Options shall constitute property subject to federal income tax pursuant to the
provisions of section 83 of the Code and that the Plan shall qualify for the
exemption available under Rule 16b-3 (or any similar rule) of the Securities and
Exchange Commission. It is also intended that all compensation income recognized
by optionees as the result of the exercise of Options or the disposition of
Common Stock acquired on exercise of Options shall be considered performance-
based compensation excludable from such optionee's "applicable employee
remuneration" pursuant to section 162(m)(4)(C) of the Code. The provisions of
the Plan shall be interpreted and applied insofar as possible to carry out such
intent.

16. Termination of the Plan.

This Plan shall terminate on August 15, 2009, unless sooner terminated.  The
Board of Directors may suspend or terminate this Plan at any time or from time
to time, but no such action may adversely affect the rights of a person holding
an outstanding Option.

                                       10
<PAGE>

17.  Applicable Law.  The Plan and all actions taken thereunder shall be
governed by and construed in accordance with the laws of the State of New
Jersey, without reference to the principles of conflict or laws thereof, except
with respect to such matters as are governed by the corporate law of the State
of Delaware.

                                       11

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