Document:

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                                                                  Exhibit 4.4(b)

                       AMERICAN BIOGENETIC SCIENCES, INC.

                             REGISTRATION AGREEMENT

      THIS AGREEMENT, is made as of March 3, 2000, among AMERICAN BIOGENETIC
SCIENCES, a Delaware corporation (the "Company") and the investors listed on
Exhibit A attached hereto (collectively referred to as the "Investor").

      The parties to this Agreement are parties to a Securities Purchase
Agreement, dated as of February 3, 2000 (the "Purchase Agreement"). In order to
induce the Investor to enter into the Purchase Agreement, the Company has agreed
to provide the registration rights set forth in this Agreement. The execution
and delivery of this Agreement is a condition to the Closing under the Purchase
Agreement. Unless otherwise provided in this Agreement, capitalized terms used
herein shall have the meanings set forth in paragraph 5 hereof.

      The parties hereto agree as follows:

      1. REGISTRATION AFTER CLOSING.

            (a) Within 60 days after the Closing, the Company shall file a
registration statement on the appropriate form, under the Securities Act
covering the Registrable Securities, including a prospectus for the purpose of
offering for resale the Registrable Securities (the "Registration Statement").
The Company shall use its best efforts to cause the Registration Statement to be
declared effective by the Securities and Exchange Commission within 120 days
after the Closing.

            (b) The Company shall use its best efforts to cause the Registration
Statement to remain effective until the first to occur of (i) two years
(excluding any period during which the Registration Statement is suspended
pursuant to Section 2(d)) after the date it is declared effective, (ii) the date
on which all Registrable Securities are sold; and (iii) the date that such share
cease to be treated as Registrable Securities because they are eligible be sold
without delay under Rule 144 under the Securities Act.

      2. REGISTRATION PROCEDURES.

            (a) The Company shall:

                  (1) notify each holder of Registrable Securities of the filing
of the Registration Statement with the Securities and Exchange Commission and of
the effectiveness of the Registration Statement;

                  (2) prepare and file with the Securities and Exchange
Commission such amendments and supplements to the Registration Statement and the
prospectus used in

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connection therewith as may be necessary to keep the Registration Statement
effective for the period set forth in Section 1(b) hereof;

                  (3) comply with the provisions of the Securities Act with
respect to the disposition of all securities covered by the Registration
Statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in the Registration Statement;

                  (4) furnish to each seller of Registrable Securities such
number of copies of the Registration Statement, each amendment and supplement
thereto, the prospectus included in the Registration Statement (including each
preliminary prospectus) and such other documents as such seller may reasonably
request in order to facilitate the disposition of the Registrable Securities
owned by such seller;

                  (5) use its best efforts to register or qualify such
Registrable Securities under such other securities or blue sky laws of such
jurisdictions as any seller reasonably requests and do any and all other acts
and things which may be reasonably necessary or advisable to enable such seller
to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such seller (provided that the Company shall not be required
to (i) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this subparagraph, (ii) subject itself
to taxation in any such jurisdiction or (iii) consent to general service of
process in any such jurisdiction);

                  (6) notify each seller of such Registrable Securities, at any
time when a prospectus relating thereto is required to be delivered under the
Securities Act, of the happening of any event as a result of which the
prospectus included in the Registration Statement contains an untrue statement
of a material fact or omits any fact necessary to make the statements therein
not misleading, and, subject to the right of the Company to suspend sales under
Section 2(d) below, at the request of any such seller, the Company shall prepare
a supplement or amendment to such prospectus so that, as thereafter delivered to
the purchasers of such Registrable Securities, such prospectus shall not contain
an untrue statement of a material fact or omit to state any fact necessary to
make the statements therein not misleading;

                  (7) use its reasonable efforts to cause all such Registrable
Securities to be listed on the securities exchange on which similar securities
issued by the Company are then listed;

                  (8) provide a transfer agent and registrar for all such
Registrable Securities not later than the effective date of the Registration
Statement;

                  (9) if the Registrable Securities are to be sold in a firm
commitment underwritten offering, enter into a customary underwriting agreement
and take all such other actions as the holders of a majority of the Registrable
Securities being sold or the underwriters reasonably request in order to
expedite or facilitate the disposition of such Registrable Securities;

                  (10) make available for inspection by any seller of
Registrable Securities, any underwriter participating in any disposition
pursuant to the Registration

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Statement, and any attorney, accountant or other agent retained by any such
seller or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company's officers,
directors, employees and independent accountants to supply all information
reasonably requested by any such seller, underwriter, attorney, accountant or
agent in connection with such registration statement; PROVIDED, HOWEVER, that
any information that is determined in good faith by the Company to be of a
confidential nature at the time of delivery of such information shall be kept
confidential by such persons, unless (i) disclosure of such information is
required by court or administrative order or is necessary to respond to
inquiries of regulatory authorities; (ii) disclosure of such information, in the
opinion of counsel to such person, is required by law; (iii) such information
becomes generally available to the public other than as a result of a disclosure
or failure to safeguard by such person; or (iv) such information becomes
available to such person from a source other than the Company and such source is
not known by such person to be bound by a confidentiality agreement with the
Company;

                  (11) in the event of the issuance of any stop order suspending
the effectiveness of the Registration Statement, or of any order suspending or
preventing the use of any related prospectus or suspending the qualification of
any Common Stock included in the Registration Statement for sale in any
jurisdiction, the Company shall use its reasonable best efforts promptly to
obtain the withdrawal of such order;

                  (12) the Company may require each seller of the Registrable
Securities to furnish to the Company such information regarding the distribution
of such Registrable Securities as is required by law to be disclosed in the
Registration Statement, and the Company may exclude from such registration the
Registrable Securities of any such holder who unreasonably fails to furnish such
information within a reasonable time after receiving such request;

            (b) The holders of any Registrable Securities covenant and agree
that (i) they will not sell any Registrable Securities under the Registration
Statement until they have received copies of the prospectus as then amended or
supplemented as contemplated in Section 4(b) and notice from the Company that
the Registration Statement and any post-effective amendments thereto have become
effective and (ii) each such holder and its officers, directors or Affiliates,
if any, will comply with the prospectus delivery requirements of the Securities
Act as applicable to them in connection with sales of Registrable Securities
pursuant to the Registration Statement.

            (c) Each holder of Registrable Securities agrees by its acquisition
of such Registrable Securities that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Subsections 2(a)(6) or
2(a)(11), such holder will forthwith discontinue disposition of such Registrable
Securities until such holder's receipt of the copies of the supplemented
prospectus and/or amended Registration Statement contemplated by Subsection
2(a)(4), or until it is advised in writing by the Company that the use of the
applicable prospectus may be resumed, and, in either case, has received copies
of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such prospectus or Registration Statement.

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            (d) If a event occurs which would otherwise require the filing of an
amendment to the Registration Statement or a prospectus supplement under
Subsection 2(a) (6) above so as permit the proposed sale without a violation of
securities laws, if the in the good faith judgment of the Board of Directors of
the Company, after consultation with counsel, such disclosure would materially
adversely affect a pending or scheduled public offering, or an acquisition,
merger, or similar transaction, or negotiations of either of the foregoing, or
would require the disclosure of another material development prior to the time
it would otherwise be required to be disclosed in a manner adverse to the best
interests of the Company, then it may decline to permit the resale of any
Registrable Securities pursuant to the Registration Statement for up to a
maximum of ninety (90) days, provided that it may not exercise this right more
than twice in any twelve (12) month period. Each Investor hereby covenants and
agrees that it will not sell any Shares pursuant to the Registration Statement
during the periods sales in reliance upon the Registration Statement are
prohibited as set forth in this Section 2(d).

      3. REGISTRATION EXPENSES.

            (a) All expenses incident to the Company's performance of or
compliance with this Agreement, including without limitation all registration
and Securities and Exchange Commission and National Association of Securities
Dealers, Inc. filing fees and expenses, fees and expenses of compliance with
securities or blue sky laws, printing expenses, messenger and delivery expenses,
fees and disbursements of custodians, the expense of any audit of financial data
required to be included in the Registration Statement, and fees and
disbursements of counsel for the Company and fees and disbursements of not more
than one counsel to the holders of Registrable Securities up to a maximum of
$5,000 and fees and disbursements of all independent certified public
accountants, and other persons retained by the Company (all such expenses being
herein called "Registration Expenses"), shall be borne by the Company; PROVIDED,
HOWEVER, that the Company shall have no obligation to pay or otherwise bear any
portion of (i) the underwriter's commissions or discounts or transfer taxes
attributable to the Registrable Securities being offered and sold by the holders
of such Registrable Securities, or (ii) the fees and expenses of advisors,
professionals or agents for the holders of Registrable Securities in connection
with the registration of Registrable Securities (other than as above provided),
or (iii) the fees and expenses of any counsel or accounting firm retained by the
underwriters in connection with an underwritten offering of the Registrable
Securities and the costs of any determination (but not filing) by the
underwriters of the eligibility of the Registrable Securities for investment
under the applicable state securities law.

            (b) To the extent Registration Expenses are not required to be paid
by the Company, each holder of securities included in any registration hereunder
shall pay those Registration Expenses allocable to the registration of such
holder's securities so included, and any Registration Expenses not so allocable
shall be borne pro rata by all sellers of securities included in such
registration in proportion to the aggregate selling price of the securities to
be so registered.

      4. INDEMNIFICATION.

            (a) The Company agrees to indemnify and hold harmless, to the extent
permitted by law, each holder of Registrable Securities, its officers and
directors and each person

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who controls such holder (within the meaning of the Securities Act or the
Exchange Act) (each, an "Indemnitee") against any loss, claim, damage, liability
or expense, as incurred, to which such Indemnitee may be subject under the
Securities Act, the Exchange Act, or other federal or state statutory law or
regulation, at common law or otherwise (including in settlement of any
litigation, if such settlement is effected with the written consent of the
Company, which consent shall not be unreasonably withheld), insofar as such
loss, claim, damage, liability or expense (or action in respect thereof) arises
out of or is based (i) upon any untrue or alleged untrue statement of material
fact contained in any registration statement, prospectus or preliminary
prospectus or any amendment thereto (including any information deemed to be part
thereof pursuant to Rule 430A of the Securities Act) or supplement thereto or
any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading; or (ii), in
whole or in part upon any failure of the Company or any controlling person to
the Company to perform its obligations hereunder, in each case except insofar as
the same are caused by or contained in any information furnished to the Company
by such holder expressly for use therein or by such holder's failure to deliver
a copy of the registration statement or prospectus or any amendments or
supplements thereto after the Company has furnished such holder with copies of
the same. In connection with an underwritten offering, the Company shall
indemnify such underwriters, their officers and directors and each person who
controls such underwriters (within the meaning of the Securities Act or the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the holders of Registrable Securities.

            (b) In connection with the Registration Statement in which a holder
of Registrable Securities is participating, each such holder shall furnish to
the Company in writing such information and affidavits as the Company reasonably
requests for use in connection with any the Registration Statement or prospectus
and, to the extent permitted by law, shall indemnify the Company, its directors,
officers, agents and employees and each person who controls the Company (within
the meaning of the Securities Act) and the directors, officers, agents and
employees of such controlling persons against any losses, claims, damages,
liabilities and expenses resulting from any untrue or alleged untrue statement
of material fact contained in the Registration Statement, prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any
omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, but only to the extent
that such untrue statement or omission is contained in any information or
affidavit so furnished by such holder; provided that the obligation to indemnify
shall be individual, not joint and several, for each holder and shall be limited
to the amount of proceeds received by such holder from the sale of Registrable
Securities pursuant to the Registration Statement.

            (c) Any person entitled to indemnification hereunder shall (i) give
prompt written notice to the indemnifying party of any claim with respect to
which it seeks indemnification (provided that the failure to give prompt notice
shall not impair any such person's right to indemnification hereunder to the
extent such failure has not prejudiced the indemnifying party) and (ii) unless
in such indemnified party's reasonable judgment a conflict of interest between
such indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party. If such defense is assumed,
the indemnifying party shall not be subject to any liability for any settlement
made by the indemnified party without its consent

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(but such consent shall not be unreasonably withheld). An indemnifying party who
is not entitled to, or elects not to, assume the defense of a claim shall not be
obligated to pay the fees and expenses for more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim or related
claims.

            (d) The indemnification provided for under this Agreement shall
remain in full force and effect regardless of any investigation made by or on
behalf of the indemnified party or any officer, director or controlling person
of such indemnified party and shall survive the transfer of securities. The
parties also agree to make such provisions as are reasonably requested by any
indemnified party in the event that indemnification hereunder is unavailable for
any reason.

      5. DEFINITIONS.

            (a) "REGISTRABLE SECURITIES" means (i) any Class A Common Stock, par
value $.001 per share ("Common Stock"), of the Company (x) to be issued upon the
conversion of the Series A Convertible Preferred Stock, $.001 par value per
share ("Preferred Stock"), of the Company acquired by the Investor pursuant to
the Purchase Agreement or (y)otherwise issued pursuant to Section 1.3(b) of the
Purchase Agreement, (ii) any Common Stock issued upon exercise of the Warrants
acquired by the Investor pursuant to the Purchase Agreement; and (iii) any
Common Stock issued or issuable with respect to the securities referred to in
clauses (i) and (ii) by way of a stock dividend or stock split or in connection
with a combination of shares, recapitalization, merger, consolidation or other
reorganization. As to any particular Registrable Securities, such securities
shall cease to be Registrable Securities when they have been distributed to the
public pursuant to an offering registered under the Securities Act or sold to
the public through a broker or dealer or to a market maker in compliance with
Rule 144 under the Securities Act (or any similar rule then in force) or
repurchased by the Company or any Subsidiary, or when they are eligible to be
sold in compliance with Rule 144 under the Securities Act. For purposes of this
Agreement, a person shall be deemed to be a holder of Registrable Securities,
and the Registrable Securities shall be deemed to be in existence, whenever such
person has the right to acquire directly or indirectly such Registrable
Securities (upon conversion or exercise in connection with a transfer of
securities or otherwise), whether or not such acquisition has actually been
effected, and such person shall be entitled to exercise the rights of a holder
of Registrable Securities hereunder.

            (b) Unless otherwise stated, other capitalized terms contained
herein have the meanings set forth in the Purchase Agreement.

      6. MISCELLANEOUS.

            (a) NO INCONSISTENT AGREEMENTS. The Company shall not hereafter
enter into any agreement with respect to its securities which is inconsistent
with or violates the rights granted to the holders of Registrable Securities in
this Agreement.

            (b) NO ADVERSE ACTION. The Company shall not take any action, or
permit any change to occur, with respect to its securities which would adversely
affect the ability

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of the holders of Registrable Securities to include such Registrable Securities
in the registration undertaken pursuant to this Agreement.

            (c) REMEDIES. Any person having rights under any provision of this
Agreement shall be entitled to enforce such rights specifically to recover
damages caused by reason of any breach of any provision of this Agreement and to
exercise all other rights granted by law. The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction (without posting
any bond or other security) for specific performance and for other injunctive
relief in order to enforce or prevent violation of the provisions of this
Agreement.

            (d) AMENDMENTS AND WAIVERS. Except as otherwise provided herein, the
provisions of this Agreement may be amended or waived only upon the prior
written consent of the Company and Investors.

            (e) SUCCESSORS AND ASSIGNS. All covenants and agreements in this
Agreement by or on behalf of any of the parties hereto shall bind and inure to
the benefit of the respective successors and assigns of the parties hereto
whether so expressed or not. In addition, whether or not any express assignment
has been made, the provisions of this Agreement which are for the benefit of
purchasers or holders of Registrable Securities are also for the benefit of, and
enforceable by, any subsequent holder of Registrable Securities who is an
affiliate of the Investor.

            (f) INCORPORATION OF PURCHASE AGREEMENT PROVISIONS. The paragraphs
of Article IX of the Purchase Agreement are hereby incorporated in this
Agreement by reference and made a part hereof; except that the provisions of
such paragraphs shall refer to this Agreement rather than the Purchase Agreement
and shall continue to apply hereto regardless of whether the Purchase Agreement
is any longer in effect.

            (g) NON-TRANSFERABILITY. The Investors' rights and obligations under
this Agreement shall not be transferable to an other party under any
circumstances, whether by operation of law or otherwise (other than to an entity
into which an Investor has been merged or which has acquired substantially all
of the assets of the Investor); provided that the Investor shall have the right
to transfer its rights and obligations hereunder to its affiliates (as such term
is defined in Rule 144 under the Securities Act) in connection with a permitted
transfer of Registrable Securities to such affiliates, so long as such
affiliates agree in writing to be bound by the terms of this Agreement.

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Registration Agreement                -7-
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      IN WITNESS WHEREOF, the parties have executed this Registration Agreement
as of the date first written above.

                               AMERICAN BIOGENETIC SCIENCES, INC.

                               By: /s/ Josef C. Schoell
                                   ---------------------------------------------
                                   Name: Josef C. Schoell
                                   Title: V. P. Finance

                               INVESTORS:

                               /s/ Alfred J. Roach
                               -------------------------------------------------
                               Alfred J. Roach

                               BIOTECHNOLOGY VALUE FUND, L.P.
                               By:   BVF PARTNERS L.P., its General Partner
                                     By:   BVF, INC., its General Partner

                                           By:
                                              ----------------------------------
                                                 Mark N. Lampert
                                                 President

                               BIOTECHNOLOGY VALUE FUND II, L.P.
                               By:   BVF PARTNERS L.P., its General Partner
                                     By:   BVF, INC., its General Partner

                                           By:
                                              ----------------------------------
                                                 Mark N. Lampert
                                                 President

                               INVESTMENT 10 L.L.C.
                               By:   BVF PARTNERS, L.P., its Investment Advisor
                                     By:   BVF, INC., its General Partner

                                           By:
                                              ----------------------------------
                                                 Mark N. Lampert
                                                 President

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Registration Agreement                -8-
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      IN WITNESS WHEREOF, the parties have executed this Registration Agreement
as of the date first written above.

                               AMERICAN BIOGENETIC SCIENCES, INC.

                               By: /s/
                                   ---------------------------------------------
                                   Name:
                                   Title:

                               INVESTORS:

                               -------------------------------------------------
                               Alfred J. Roach

                               BIOTECHNOLOGY VALUE FUND, L.P.
                               By:   BVF PARTNERS L.P., its General Partner
                                     By:   BVF, INC., its General Partner

                                           By:   /s/ Mark N. Lampert
                                              ----------------------------------
                                                 Mark N. Lampert
                                                 President

                               BIOTECHNOLOGY VALUE FUND II, L.P.
                               By:   BVF PARTNERS L.P., its General Partner
                                     By:   BVF, INC., its General Partner

                                           By:   /s/ Mark N. Lampert
                                              ----------------------------------
                                                 Mark N. Lampert
                                                 President

                               INVESTMENT 10 L.L.C.
                               By:   BVF PARTNERS, L.P., its Investment Advisor
                                     By:   BVF, INC., its General Partner

                                           By:   /s/ Mark N. Lampert
                                              ----------------------------------
                                                 Mark N. Lampert
                                                 President

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Registration Agreement                -8-<PAGE>   1

                                                                 Exhibit 10.2(c)

                             1996 STOCK OPTION PLAN

                                       OF

                       AMERICAN BIOGENETIC SCIENCES, INC.
                      (AS AMENDED EFFECTIVE JUNE 15, 1999)

            1. PURPOSES OF THE PLAN. This stock option plan (the "Plan") is
designed to provide an incentive to employees (including directors and officers
who are employees) and to consultants who are not employees of American
Biogenetic Sciences, Inc., a Delaware corporation (the "Company"), and its
present and future subsidiary corporations, as defined in Paragraph 19
("Subsidiaries"), and to offer an additional inducement in obtaining the
services of such employees and consultants. The Plan provides for the grant of
"incentive stock options" ("ISOs") within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"), and nonqualified stock
options which do not qualify as ISOs ("NQSOs"), but the Company makes no
representation or warranty, express or implied, as to the qualification of any
option as an "incentive stock option" under the Code.

            2. STOCK SUBJECT TO THE PLAN. Subject to the provisions of Paragraph
12, the aggregate number of shares of Class A Common Stock, $.001 par value per
share, of the Company ("Common Stock") for which options may be granted under
the Plan shall not exceed 4,000,000. Such shares of Common Stock may, in the
discretion of the Board of Directors of the Company (the "Board of Directors"),
consist either in whole or in part of authorized but unissued shares of Common
Stock or shares of Common Stock held in the treasury of the Company. Subject to
the provisions of Paragraph 13, any shares of Common Stock subject to an option
which for any reason expires, is canceled or is terminated unexercised or which
ceases for any reason to be exercisable shall again become available for the
granting of options under the Plan. The Company shall at all times during the
term of the Plan reserve and keep available such number of shares of Common
Stock as will be sufficient to satisfy the requirements of the Plan.

            3. ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board of Directors or, to the extent the Board of Directors may determine, a
committee of the Board of Directors (the "Committee") consisting of not less
than two directors, each of whom shall be a "non-employee director" within the
meaning of Rule 16b-3 (or any successor rule or regulation) promulgated under
the Securities Exchange Act of 1934, as amended (as the same may be in effect
and interpreted from time to time, "Rule 16b-3"). A majority of the members of
the Committee shall constitute a quorum, and the acts of a majority of the
members present at any meeting at which a quorum is present, and any acts
approved in writing by all members without a meeting, shall be the acts of the
Committee. All references in the Plan to determinations or actions of the
Committee shall be deemed to include determinations and actions by the Committee
or the Board of Directors.

            Subject to the express provisions of the Plan, the Committee shall
have the authority, in its sole discretion, to determine the employees and the
consultants who shall be granted options; the times when options shall be
granted; whether an option granted to an employee shall be an ISO or a NQSO; the
number of shares of Common Stock to be subject to each option; the term of each
option, the date each option shall become exercisable; whether an option shall
be exercisable in whole, in part or in installments and, if in installments, the
number of shares of Common Stock to be subject to each installment, whether the
installments shall be cumulative, the date each installment shall become
exercisable and the term of each installment; whether to accelerate the date of
exercise of any option or installment; whether shares of Common Stock may be
issued upon the exercise of an option as partly paid and, if so, the dates when
future installments of the exercise price shall become due and the amounts of
such installments; the exercise price of each option; the form of payment of the
<PAGE>   2

exercise price; the fair market value of a share of Common Stock; whether to
restrict the sale or other disposition of the shares of Common Stock acquired
upon the exercise of an option and, if so, whether to waive any such
restriction; whether to subject the exercise of all or any portion of an option
to the fulfillment of contingencies as specified in the contract referred to in
Paragraph 11 (the "Contract"), including without limitation, contingencies
relating to entering into a covenant not to compete with the Company, any of its
Subsidiaries or a Parent (as defined in Paragraph 19), to financial objectives
for the Company, any of its Subsidiaries or a Parent, a division of any of the
foregoing, a product line or other category, and/or the period of continued
employment of the optionee with the Company, any of its Subsidiaries or a
Parent, and to determine whether such contingencies have been met; the amount,
if any, necessary to satisfy the Company's obligation to withhold taxes or other
amounts; whether an optionee is Disabled (as defined in Paragraph 19); to
construe the respective Contracts and the Plan; with the consent of the
optionee, to cancel or modify an option, PROVIDED such modified provision would
be permitted to be included in an option on the date of modification, and
FURTHER, PROVIDED, that, in the case of a modification (within the meaning of
Section 424(h) of the Code) of an ISO, such option as modified would be
permitted to be granted on the date of such modification under the terms of the
Plan; to prescribe, amend and rescind rules and regulations relating to the
Plan; and to make all other determinations necessary or advisable for
administering the Plan. Any controversy or claim arising out of or relating to
the Plan, any option granted under the Plan or any Contract shall be determined
unilaterally by the Committee in its sole discretion. The determinations of the
Committee on the matters referred to in this Paragraph 3 shall be conclusive and
binding on the parties. No member or former member of the Committee shall be
liable for any action, failure to act or determination made in good faith with
respect to the Plan or any option hereunder.

            4. ELIGIBILITY. The Committee may from time to time, in its sole
discretion, consistent with the purposes of the Plan, grant options to employees
(including officers and directors who are employees) of, and to consultants to,
the Company or any of its Subsidiaries. Such options granted shall cover such
number of shares of Common Stock as the Committee may determine in its sole
discretion; PROVIDED, HOWEVER, that the maximum number of shares subject to
options that may be granted to any employee during any calendar year under the
Plan (the "162(m) Maximum") shall not exceed 500,000 shares; and FURTHER,
PROVIDED, that the aggregate market value (determined at the time the option is
granted in accordance with Paragraph 5) of the shares of Common Stock for which
any eligible employee may be granted ISOs under the Plan or any other plan of
the Company, or of a Parent or a Subsidiary of the Company, which are
exercisable for the first time by such optionee during any calendar year shall
not exceed $100,000. Such limitation shall be applied by taking ISOs into
account in the order in which they were granted. Any option (or the portion
thereof) granted in excess of such amount shall be treated as an NQSO.

            5. EXERCISE PRICE. The exercise price of the shares of Common Stock
under each option shall be determined by the Committee in its sole discretion,
PROVIDED, HOWEVER, the exercise price of an ISO shall not be less than the fair
market value of the Common Stock subject to such option on the date of grant;
and FURTHER, PROVIDED, that if, at the time an ISO is granted, the optionee owns
(or is deemed to own under Section 424(d) of the Code) stock possessing more
than 10% of the total combined voting power of all classes of stock of the
Company, of any of its Subsidiaries or of a Parent, the exercise price of such
ISO shall not be less than 110% of the fair market value of the Common Stock
subject to such ISO on the date of grant.

            The fair market value of a share of Common Stock on any day shall be
(a) if the principal market for the Common Stock is a national securities
exchange, the average of the highest and lowest sales prices per share of Common
Stock on such day as reported by such exchange or on a composite tape reflecting
transactions on such exchange, (b) if the principal market for the Common Stock
is not a national securities exchange and the

                                      -2-
<PAGE>   3

Common Stock is quoted on The Nasdaq Stock Market ("Nasdaq"), (i) if closing bid
and asked price information is available with respect to the Common Stock, the
average of the closing bid and asked prices per share of Common Stock on such
day on Nasdaq, or (ii) if such information is not available, the average of the
highest bid and lowest asked prices per share of Common Stock on such day on
Nasdaq, or (c) if the principal market for the Common Stock is not a national
securities exchange and the Common Stock is not quoted on Nasdaq, the average of
the highest bid and lowest asked prices per share of Common Stock on such day as
reported on the OTC Bulletin Board Service or by National Quotation Bureau,
Incorporated or a comparable service; PROVIDED, HOWEVER, that if clauses (a),
(b) and (c) of this Paragraph are all inapplicable, or if no trades have been
made or no quotes are available for such day, the fair market value of the
Common Stock shall be determined by the Board by any method consistent with
applicable regulations adopted by the Treasury Department relating to stock
options.

            6. TERM. The term of each option granted pursuant to the Plan shall
be such term as is established by the Committee, in its sole discretion;
PROVIDED, HOWEVER, that the term of each ISO granted pursuant to the Plan shall
be for a period not exceeding 10 years from the date of grant thereof; and
FURTHER, PROVIDED, that if, at the time an ISO is granted, the optionee owns (or
is deemed to own under Section 424(d) of the Code) stock possessing more than
10% of the total combined voting power of all classes of stock of the Company,
of any of its Subsidiaries or of a Parent, the term of the ISO shall be for a
period not exceeding five years from the date of grant. Options shall be subject
to earlier termination as hereinafter provided.

            7. EXERCISE. An option (or any part or installment thereof), to the
extent then exercisable, shall be exercised by giving written notice to the
Company at its principal office stating which option is being exercised,
specifying the number of shares of Common Stock as to which such option is being
exercised and accompanied by payment in full of the aggregate exercise price
therefor (or the amount due on exercise if the Contract permits installment
payments) (a) in cash or by certified check or (b) if the applicable Contract
permits, with previously acquired shares of Common Stock having an aggregate
fair market value on the date of exercise (determined in accordance with
Paragraph 5) equal to the aggregate exercise price of all options being
exercised, or with any combination of cash, certified check or shares of Common
Stock.

            The Committee may, in its sole discretion, permit payment of the
exercise price of an option by delivery by the optionee of a properly executed
notice, together with a copy of the optionee's irrevocable instructions to a
broker acceptable to the Committee to deliver promptly to the Company the amount
of sale or loan proceeds sufficient to pay such exercise price. In connection
therewith, the Company may enter into agreements for coordinated procedures with
one or more brokerage firms.

            A person entitled to receive Common Stock upon the exercise of an
option shall not have the rights of a stockholder with respect to such shares of
Common Stock until the date of issuance of a stock certificate to him for such
shares; PROVIDED, HOWEVER, that until such stock certificate is issued, any
optionee using previously acquired shares of Common Stock in payment of an
option exercise price shall continue to have the rights of a stockholder with
respect to such previously acquired shares.

            In no case may a fraction of a share of Common Stock be purchased or
issued under the Plan.

            8. TERMINATION OF RELATIONSHIP. Except as may otherwise be expressly
provided in the applicable Contract, any optionee whose relationship with the
Company, its Subsidiaries and Parent as an employee or consultant has terminated
for any reason (other than his death or Disability) may exercise such option, to
the extent exercisable on the date of such termination, at any time within three
months

                                      -3-
<PAGE>   4

after the date of termination, but not thereafter and in no event after the date
the option would otherwise have expired; PROVIDED, HOWEVER, that if such
relationship is terminated either (a) for cause, or (b) without the consent of
the Company, such option shall terminate immediately.

            For the purposes of the Plan, an employment relationship shall be
deemed to exist between an individual and a corporation if, at the time of the
determination, the individual was an employee of such corporation for purposes
of Section 422(a) of the Code. As a result, an individual on military, sick
leave or other bona fide leave of absence shall continue to be considered an
employee for purposes of the Plan during such leave if the period of the leave
does not exceed 90 days, or, if longer, so long as the individual's right to
reemployment with the Company (or a related corporation) is guaranteed either by
statute or by contract. If the period of leave exceeds 90 days and the
individual's right to reemployment is not guaranteed by statute or by contract,
the employment relationship shall be deemed to have terminated on the 31st day
of such leave.

            Notwithstanding the foregoing, except as may otherwise be expressly
provided in the applicable Contract, options granted under the Plan shall not be
affected by any change in the status of the optionee so long as the optionee
continues to be an employee of, or a consultant to, the Company, any of its
Subsidiaries or a Parent (regardless of having changed from one to the other or
having been transferred from one corporation to another).

            Nothing in the Plan or in any option granted under the Plan shall
confer on any optionee any right to continue in the employ of, or as a
consultant to, the Company, its Parent or any of its Subsidiaries, or interfere
in any way with any right of the Company, its Parent or any of its Subsidiaries
to terminate the optionee's relationship at any time for any reason whatsoever
without liability to the Company, its Parent or any of its Subsidiaries.

            9. DEATH OR DISABILITY OF AN OPTIONEE. Except as may otherwise be
expressly provided in the applicable Contract, if an individual optionee dies
(a) while he is an employee of; or a consultant to, the Company, any of its
Subsidiaries or a Parent, (b) within three months after the termination of such
relationship (unless such termination was for cause or without the consent of
the Company) or (c) within one year following the termination of such
relationship by reason of Disability, his option may be exercised, to the extent
exercisable on the date of his death, by his Legal Representative (as defined in
Paragraph 19) at any time within one year after death, but not thereafter and in
no event after the date the option would otherwise have expired.

            Except as may otherwise be expressly provided in the applicable
Contract, any optionee whose relationship as an employee of, or a consultant to,
the Company, its Parent or any Subsidiary has terminated by reason of Disability
may exercise his option, to the extent exercisable upon the effective date of
such termination, at any time within one year after such date, but not
thereafter and in no event after the date the option would otherwise have
expired.

            10. COMPLIANCE WITH SECURITIES LAWS. It is a condition to the
exercise of any option that either (a) a Registration Statement under the
Securities Act of 1933, as amended (the "Securities Act"), with respect to the
shares of Common Stock to be issued upon such exercise shall be effective and
current at the time of exercise, or (b) there be an exemption from registration
under the Securities Act for the issuance of the shares of Common Stock upon
such exercise. Nothing herein shall be construed as requiring the Company to
register shares subject to any option under the Securities Act or to keep any
Registration Statement effective or current.

                                      -4-
<PAGE>   5

            The Committee may require, in its sole discretion, as a condition to
the exercise of any option that the optionee execute and deliver to the Company
his representations and warranties, in form, substance and scope satisfactory to
the Committee, which the Committee determines are necessary or convenient to
facilitate the perfection of an exemption from the registration requirements of
the Securities Act or other legal requirement, including without limitation that
(a) the shares of Common Stock to be issued upon the exercise of the option are
being acquired by the optionee for his own account, for investment only and not
with a view to the resale or distribution thereof; and (b) any subsequent resale
or distribution of shares of Common Stock by such optionee will be made only
pursuant to (i) a Registration Statement under the Securities Act which is
effective and current with respect to the shares of Common Stock being sold, or
(ii) a specific exemption from the registration requirements of the Securities
Act, but in claiming such exemption, the optionee shall prior to any offer of
sale or sale of such shares of Common Stock provide the Company with a favorable
written opinion of counsel satisfactory to the Company, in form, substance and
scope satisfactory to the Company, as to the applicability of such exemption to
the proposed sale or distribution.

            In addition, if at any time the Committee shall determine, in its
sole discretion, that the listing or qualification of the shares of Common Stock
subject to such option on any securities exchange, Nasdaq or under any
applicable law, or the consent or approval of any governmental regulatory body,
is necessary or desirable as a condition to, or in connection with, the granting
of an option or the issue of shares of Common Stock thereunder, such option may
not be exercised in whole or in part unless such listing, qualification, consent
or approval shall have been effected or obtained free of any conditions not
acceptable to the Committee.

            11. STOCK OPTION CONTRACTS. Each option shall be evidenced by an
appropriate Contract which shall be duly executed by the Company and the
optionee, and shall contain such terms, provisions and conditions not
inconsistent herewith as may be determined by the Committee.

            12. ADJUSTMENTS UPON CHANGES IN COMMON STOCK. Notwithstanding any
other provision of the Plan, in the event of a stock dividend, split-up,
combination, reclassification, recapitalization, spin-off, merger in which the
Company is the surviving corporation, or exchange of shares or the like which
results in a change in the number or kind of those shares of Common Stock which
are outstanding immediately prior to such event, the aggregate number and kind
of shares subject to the Plan, the aggregate number and kind of shares subject
to each outstanding option and the exercise price thereof, and the 162(m)
Maximum shall be appropriately adjusted by the Board of Directors, whose
determination shall be conclusive and binding on all parties. Such adjustment
may provide for the elimination of fractional shares which might otherwise be
subject to options without payment thereto.

            In the event of (a) the liquidation or dissolution of the Company,
or (b) a merger in which the Company is not the surviving corporation or a
consolidation, any outstanding options shall terminate upon the earliest of any
such event, unless other provision is made therefor in the transaction.

            13. AMENDMENTS AND TERMINATION OF THE PLAN. The Plan was adopted by
the Board of Directors on March 29, 1996. No option may be granted under the
Plan after March 28, 2006 The Board of Directors, without further approval of
the Company's stockholders, may at any time suspend or terminate the Plan, in
whole or in part, or amend it from time to time in such respects as it may deem
advisable, including, without limitation, in order that ISOs granted hereunder
meet the requirements for "incentive stock options" under the Code, to comply
with, conform to or adopt the provisions of Rule 16b-3, Section 162(m) of the
Code or any change in applicable law, regulations, rulings or interpretations of
administrative agencies; provided, however, that no amendment shall be effective
without the requisite prior or subsequent stockholder

                                      -5-
<PAGE>   6

approval which would (a) except as contemplated in Paragraph 12, increase the
maximum number of shares of Common Stock for which options may be granted under
the Plan or the 162(m) Maximum, (b) materially increase the benefits accruing to
participants under the Plan or (c) change the eligibility requirements to
receive options hereunder. No termination, suspension or amendment of the Plan
shall, without the consent of the holder of an existing and outstanding option
affected thereby, adversely affect his rights under such option. The power of
the Committee to construe and administer any options granted under the Plan
prior to the termination or suspension of the Plan nevertheless shall continue
after such termination or during such suspension.

            14. NON-TRANSFERABILITY OF OPTIONS. No option granted under the Plan
shall be transferable otherwise than by will or the laws of descent and
distribution, and options may be exercised, during the lifetime of the optionee,
only by the optionee or his Legal Representatives. Except to the extent provided
above, options may not be assigned, transferred, pledged, hypothecated or
disposed of in any way (whether by operation of law or otherwise) and shall not
be subject to execution, attachment or similar process, and any such attempted
assignment, transfer, pledge, hypothecation or disposition shall be null and
void ab initio and of no force or effect.

            15. WITHHOLDING TAXES. The Company shall withhold cash in an amount
equal to the amount determined necessary to satisfy the Company's obligation to
withhold Federal, state and local income taxes or other amounts incurred by
reason of the grant or exercise of an option or the disposition of the
underlying shares of Common Stock except to the extent that, with the specific
authorization of the Committee, in the Contract or otherwise, the optionee is
permitted to pay such amounts by (a) the delivery or withholding of shares of
Common Stock having an aggregate fair market value on the exercise date
(determined in accordance with Paragraph 5) or (b) any combination of cash and
such shares. Alternatively, the Company may require the holder to pay to the
Company such amount, in cash, promptly upon demand. The Company shall not be
required to issue any shares of Common Stock pursuant to any such option until
all required payments have been made.

            16. LEGENDS; PAYMENT OF EXPENSES. The Company may endorse such
legend or legends upon the certificates for shares of Common Stock issued upon
exercise of an option under the Plan and may issue such "stop transfer"
instructions to its transfer agent in respect of such shares as it determines,
in its discretion, to be necessary or appropriate to (a) prevent a violation of,
or to perfect an exemption from, the registration requirements of the Securities
Act and any applicable state securities laws, (b) implement the provisions of
the Plan or any agreement between the Company and the optionee with respect to
such shares of Common Stock, or (c) permit the Company to determine the
occurrence of a "disqualifying disposition," as described in Section 421(b) of
the Code, of the shares of Common Stock issued or transferred upon the exercise
of an ISO granted under the Plan.

            The Company shall pay all issuance taxes with respect to the
issuance of shares of Common Stock upon the exercise of an option granted under
the Plan, as well as all fees and expenses incurred by the Company in connection
with such issuance.

            17. USE OF PROCEEDS. The cash proceeds from the sale of shares of
Common Stock pursuant to the exercise of options under the Plan shall be added
to the general funds of the Company and used for such corporate purposes as the
Board of Directors may determine.

            18. SUBSTITUTIONS AND ASSUMPTIONS OF OPTIONS OF CERTAIN CONSTITUENT
CORPORATIONS. Anything in this Plan to the contrary notwithstanding, the Board
of Directors may, without further approval by the stockholders, substitute new
options for prior options of a

                                      -6-
<PAGE>   7

Constituent Corporation (as defined in Paragraph 19) or assume the prior options
of such Constituent Corporation.

            19. DEFINITIONS. For purposes of the Plan, the following terms shall
be defined as set forth below:

                  (a) Constituent Corporation. The term "Constituent
Corporation" shall mean any corporation which engages with the Company, any of
its Subsidiaries or a Parent in a transaction to which Section 424(a) of the
Code applies (or would apply if the option assumed or substituted were an ISO),
or any Parent or any Subsidiary of such corporation.

                  (b) Disability. The term "Disability" shall mean a permanent
and total disability within the meaning of Section 22(e)(3) of the Code.

                  (c) Legal Representative. The term "Legal Representative"
shall mean the executor, administrator or other person who at the time is
entitled by law to exercise the rights of a deceased or incapacitated optionee
with respect to an option granted under the Plan.

                  (d) Parent. The term "Parent" shall have the same definition
as "parent corporation" in Section 424(e) of the Code.

                  (e) Subsidiary. The term "Subsidiary" shall have the same
definition as "subsidiary corporation" in Section 424(f) of the Code.

            20. GOVERNING LAW; CONSTRUCTION. The Plan, such options as may be
granted hereunder and all related matters shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without regard to conflict
of law provisions.

            Neither the Plan nor any Contract shall be construed or interpreted
with any presumption against the Company by reason of the Company causing the
Plan or Contract to be drafted. Whenever from the context it appears
appropriate, any term stated in either the singular or plural shall include the
singular and plural, and any term stated in the masculine, feminine or neuter
gender shall include the masculine, feminine and neuter.

            21. PARTIAL INVALIDITY. The invalidity, illegality or
unenforceability of any provision in the Plan or any Contract shall not affect
the validity, legality or enforceability of any other provision, all of which
shall be valid, legal and enforceable to the fullest extent permitted by
applicable law.

            22. STOCKHOLDER APPROVAL. The Plan shall be subject to approval by a
majority of the votes present in person or by proxy at the next duly held
meeting of the Company's stockholders at which a quorum is present. No options
granted hereunder may be exercised prior to such approval; PROVIDED, HOWEVER,
that the date of grant of any option shall be determined as if the Plan had not
been subject to such approval. Notwithstanding the foregoing, if the Plan is not
approved by a vote of the stockholders of the Company on or before March 28,
1997, the Plan and any options granted hereunder shall terminate.

                                      -7-

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