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                                                                  EXHIBIT 4.1(a)

                              AMENDED AND RESTATED
                            eMERGE INTERACTIVE, INC.
                          1999 EQUITY COMPENSATION PLAN

          The purpose of the eMerge Interactive, Inc. 1999 Equity Compensation
Plan (the "Plan") is to provide (i) designated employees of eMerge Interactive,
Inc. (the "Company") and its subsidiaries, (ii) individuals to whom an offer of
employment has been extended, (iii) certain advisors who perform services for
the Company or its subsidiaries, and (iv) non-employee members of the Board of
Directors of the Company (the "Board") with the opportunity to receive grants of
incentive stock options, nonqualified stock options, stock appreciation rights,
restricted stock and performance units. The Company believes that the Plan will
encourage the participants to contribute materially to the growth of the
Company, thereby benefiting the Company's stockholders, and will align the
economic interests of the participants with those of the stockholders.

         1.       Administration

                  (a) Committee. The Plan shall be administered and interpreted
by a committee appointed by the Board (the "Committee"). The Committee shall
consist of two or more persons appointed by the Board, all of whom may be
"outside directors" as defined under section 162(m) of the Internal Revenue Code
of 1986, as amended (the "Code") and related Treasury regulations and may be
"non-employee directors" as defined under Rule 16b-3 under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). Except to the extent
prohibited by applicable law or the applicable rules of a stock exchange, the
Committee may allocate all or any portion of its responsibilities and powers to
any one or more of its members or may delegate all or any part of its
responsibilities and powers to any person or persons selected by it. Any such
allocation or delegation may be revoked by the Committee at any time. If the
Committee does not exist, or for any other reason determined by the Board, the
Board may take any action under the Plan that would otherwise be the
responsibility of the Committee.

                  (b) Committee Authority. The Committee shall have the sole
authority to (i) determine the individuals to whom grants shall be made under
the Plan, (ii) determine the type, size and terms of the grants to be made to
each such individual, (iii) determine the time when the grants will be made and
the duration of any applicable exercise or restriction period, including the
criteria for exercisability and the acceleration of exercisability, and (iv)
deal with any other matters arising under the Plan.

                  (c) Committee Determinations. The Committee shall have full
power and authority to administer and interpret the Plan, to make factual
determinations and to adopt or amend such rules, regulations, agreements and
instruments for implementing the Plan and for the conduct of its business as it
deems necessary or advisable, in its sole discretion. The Committee's
interpretations of the Plan and all determinations made by the Committee
pursuant to the powers vested in it hereunder shall be conclusive and binding on
all persons having any interest in the Plan or in any awards granted hereunder.
All powers of the Committee shall be executed in its sole discretion, in the
best interest of the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly situated
individuals.

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         2.       Grants

         Awards under the Plan may consist of grants of incentive stock options
as described in Section 5 ("Incentive Stock Options"), nonqualified stock
options as described in Section 5 ("Nonqualified Stock Options") (Incentive
Stock Options and Nonqualified Stock Options are collectively referred to as
"Options"), restricted stock as described in Section 6 (Restricted Stock"),
stock appreciation rights as described in Section 7 ("SARs"), and performance
units as described in Section 8 ("Performance Units") (hereinafter collectively
referred to as "Grants"). All Grants shall be subject to the terms and
conditions set forth herein and to such other terms and conditions consistent
with this Plan as the Committee deems appropriate and as are specified in
writing by the Committee to the individual in a grant instrument (the "Grant
Instrument") or an amendment to the Grant Instrument. The Committee shall
approve the basic form and provisions of each Grant Instrument. Grants under a
particular Section of the Plan need not be uniform as among the grantees.

         3.       Shares Subject to the Plan

                  (a) Shares Authorized. Subject to the adjustment specified
below, the aggregate number of shares of common stock of the Company ("Company
Stock") that may be issued or transferred under the Plan is 4,000,000 shares.
The maximum aggregate number of shares of Company Stock that shall be subject to
Grants made under the Plan to any individual during any calendar year shall be
625,000 shares. The shares may be authorized but unissued shares of Company
Stock or reacquired shares of Company Stock, including shares purchased by the
Company on the open market for purposes of the Plan. If and to the extent
Options or SARs granted under the Plan terminate, expire, or are canceled,
forfeited, exchanged or surrendered without having been exercised, or if any
shares of Restricted Stock or Performance Units are forfeited, the shares
subject to such Grants shall again be available for purposes of the Plan.

                  (b) Adjustments. If there is any change in the number or kind
of shares of Company Stock outstanding (i) by reason of a stock dividend,
spinoff, recapitalization, stock split or combination or exchange of shares,
(ii) by reason of a merger, reorganization or consolidation in which the Company
is the surviving corporation, (iii) by reason of a reclassification or change in
par value, or (iv) by reason of any other extraordinary or unusual event
affecting the outstanding Company Stock as a class without the Company's receipt
of consideration, or if the value of outstanding shares of Company Stock is
substantially reduced as a result of a spinoff or the Company's payment of an
extraordinary dividend or distribution, the maximum number of shares of Company
Stock available for Grants, the maximum number of shares of Company Stock that
any individual participating in the Plan may be granted in any year, the number
of shares covered by outstanding Grants, the kind of shares issued under the
Plan, and the price per share or the applicable market value of such Grants
shall be appropriately adjusted by the Committee to reflect any increase or
decrease in the number of, or change in the kind or value of, issued shares of
Company Stock to preclude, to the extent practicable, the enlargement or
dilution of rights and benefits under such Grants; provided, however, that any
fractional shares resulting from such adjustment shall be eliminated by rounding
any portion of a share equal to .5 or greater up, and any portion of a share
equal to less than .5 down, in each case to the nearest whole number. Any
adjustments determined by the Committee shall be final, binding and conclusive.

         4.       Eligibility for Participation

                  (a) Eligible Persons. All employees of the Company and its
subsidiaries ("Employees"), including Employees who are officers or members of
the Board, individuals to whom an offer of employment has been extended ("New
Hire"), and members of the Board who are not Employees ("Non-Employee

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Directors") shall be eligible to participate in the Plan. Advisors who perform
services to the Company or any of its subsidiaries ("Key Advisors") shall be
eligible to participate in the Plan if the Key Advisors render bona fide
services and such services are not in connection with the offer or sale of
securities in a capital-raising transaction.

                  (b) Selection of Grantees. The Committee shall select the
Employees, New Hires, Non-Employee Directors and Key Advisors to receive Grants
and shall determine the number of shares of Company Stock subject to a
particular Grant in such manner as the Committee determines. Employees, New
Hires, Key Advisors, and Non-Employee Directors who receive Grants under this
Plan shall hereinafter be referred to as "Grantees."

         5.       Granting of Options

                  (a) Number of Shares. The Committee shall determine the number
of shares of Company Stock that will be subject to each Grant of Options to
Employees, New Hires, Non-Employee Directors, and Key Advisors.

                  (b) Type of Option and Price.

                           (i) The Committee may grant Incentive Stock Options
that are intended to qualify as "incentive stock options" within the meaning of
section 422 of the Code, Nonqualified Stock Options that are not intended so to
qualify, or any combination of Incentive Stock Options and Nonqualified Stock
Options, all in accordance with the terms and conditions set forth herein.
Incentive Stock Options may be granted only to Employees. Nonqualified Stock
Options may be granted to Employees, New Hires, Non-Employee Directors, and Key
Advisors.

                           (ii) The purchase price (the "Exercise Price") of
Company Stock subject to an Option shall be determined by the Committee and may
be equal to, greater than, or less than the Fair Market Value (as defined below)
of a share of Company Stock on the date the Option is granted, provided,
however, that (x) the Exercise Price of an Incentive Stock Option shall be equal
to, or greater than, the Fair Market Value of a share of Company Stock on the
date the Incentive Stock Option is granted and (y) an Incentive Stock Option may
not be granted to an Employee who, at the time of grant, owns stock possessing
more than 10 percent of the total combined voting power of all classes of stock
of the Company or any parent or subsidiary of the Company, unless the Exercise
Price per share is not less than 110% of the Fair Market Value of Company Stock
on the date of grant.

                           (iii) If the Company Stock is publicly traded, then,
except as otherwise determined by the Committee, the following rules regarding
the determination of Fair Market Value per share apply:

                                    (x) if the principal trading market for the
                           Company Stock is a national securities exchange or
                           the Nasdaq National Market, the mean between the
                           highest and lowest quoted selling prices on the
                           relevant date or (if there were no trades on that
                           date) the latest preceding date upon which a sale was
                           reported, or

                                    (y) if the Company Stock is not principally
                           traded on such exchange or market, the mean between
                           the last reported "bid" and "asked" prices of Company
                           Stock on the relevant date, as reported on Nasdaq or,
                           if not so reported, as reported

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                           by the National Daily Quotation Bureau, Inc. or as
                           reported in a customary financial reporting service,
                           as applicable and as the Committee determines. If the
                           Company Stock is not publicly traded or, if publicly
                           traded, is not subject to reported transactions or
                           "bid" or "asked" quotations as set forth above, the
                           Fair Market Value per share shall be as determined by
                           the Committee.

                  (c) Option Term. The Committee shall determine the term of
each Option. The term of any Option shall not exceed ten years from the date of
grant. However, an Incentive Stock Option that is granted to an Employee who, at
the time of grant, owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company, or any parent or
subsidiary of the Company, may not have a term that exceeds five years from the
date of grant.

                  (d) Exercisability of Options.

                           (i) Options shall become exercisable in accordance
with such terms and conditions, consistent with the Plan, as may be determined
by the Committee and specified in the Grant Instrument or an amendment to the
Grant Instrument. The Committee may accelerate the exercisability of any or all
outstanding Options at any time for any reason.

                           (ii) Notwithstanding the foregoing, the Option may,
but need not, include a provision whereby the Grantee may elect at any time
while an Employee, Non-Employee Director, or Key Advisor to exercise the Option
as to any part or all of the shares subject to the Option prior to the full
vesting of the Option. Any unvested shares so purchased shall be subject to a
repurchase right in favor of the Company, with the repurchase price to be equal
to the original purchase price, and any other restrictions the Committee
determines to be appropriate.

                  (e) Termination of Employment, Disability or Death.

                           (i) Except as provided below, an Option may only be
exercised while the Grantee is employed by the Company as an Employee, Key
Advisor or member of the Board. In the event that a Grantee ceases to be
employed by the Company for any reason other than a "disability," death or
"termination for cause," any Option which is otherwise exercisable by the
Grantee shall terminate unless exercised within 90 days after the date on which
the Grantee ceases to be employed by the Company (or within such other period of
time as may be specified by the Committee), but in any event no later than the
date of expiration of the Option term. Any of the Grantee's Options that are not
otherwise exercisable as of the date on which the Grantee ceases to be employed
by the Company shall terminate as of such date.

                           (ii) In the event the Grantee ceases to be employed
by the Company on account of a "termination for cause" by the Company, any
Option held by the Grantee shall terminate as of the date the Grantee ceases to
be employed by the Company. In addition to the immediate termination of all
Grants, the Grantee shall automatically forfeit all shares underlying any
exercised portion of an Option, upon refund by the Company of the Exercise Price
by the Grantee for such shares.

                           (iii) In the event the Grantee ceases to be employed
by the Company because the Grantee is "disabled," any Option which is otherwise
exercisable by the Grantee shall terminate unless exercised within one year
after the date on which the Grantee ceases to be employed by the Company (or
within such other period of time as may be specified by the Committee), but in
any event no later than the

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date of expiration of the Option term. Any of the Grantee's Options which are
not otherwise exercisable as of the date on which the Grantee ceases to be
employed by the Company shall terminate as of such date.

                           (iv) If the Grantee dies while employed by the
Company or within 90 days after the date on which the Grantee ceases to be
employed on account of a termination of employment specified in Section 5(e)(i)
above (or within such other period of time as may be specified by the
Committee), any Option that is otherwise exercisable by the Grantee shall
terminate unless exercised within one year after the date on which the Grantee
ceases to be employed by the Company (or within such other period of time as may
be specified by the Committee), but in any event no later than the date of
expiration of the Option term. Any of the Grantee's Options that are not
otherwise exercisable as of the date on which the Grantee ceases to be employed
by the Company shall terminate as of such date.

                           (v) For purposes of Sections 5(e), 6, 7, and 8:

                                    (A) "Company," when used in the phrase
                  "employed by the Company," shall mean the Company, its parent,
                  and any subsidiary corporations.

                                    (B) "Employed by the Company" shall mean
                  employment or service as an Employee, Key Advisor, or member
                  of the Board (so that, for purposes of exercising Options and
                  SARs and satisfying conditions with respect to Restricted
                  Stock and Performance Units, a Grantee shall not be considered
                  to have terminated employment or service until the Grantee
                  ceases to be an Employee, Key Advisor, and member of the
                  Board), unless the Committee determines otherwise. The
                  Committee's determination as to a participant's employment or
                  other provision of services, termination of employment or
                  cessation of the provision of services, leave of absence, or
                  reemployment shall be conclusive on all persons unless
                  determined to be incorrect.

                                    (C) "Disability" shall mean a Grantee's
                  becoming disabled within the meaning of section 22(e)(3) of
                  the Code.

                                    (D) "Termination for cause" shall mean the
                  determination of the Committee that any one or more of the
                  following events has occurred:

                                    (1) the Grantee's conviction of any act
                  which constitutes a felony under applicable federal or state
                  law, either in connection with the performance of the
                  Grantee's obligations on behalf of the Company or which
                  affects the Grantee's ability to perform his or her
                  obligations as an employee, board member or advisor of the
                  Company or under any employment agreement, non-competition
                  agreement, confidentiality agreement or like agreement or
                  covenant between the Grantee and the Company (any such
                  agreement or covenant being herein referred to as an
                  "Employment Agreement");

                                    (2) the Grantee's willful misconduct in
                  connection with the performance of his or her duties and
                  responsibilities as an employee, board member or advisor of
                  the Company or under any Employment Agreement, which willful
                  misconduct is not cured by the Grantee within 10 days of his
                  or her receipt of written notice thereof from the Committee;

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                                    (3) the Grantee's commission of an act of
                  embezzlement, fraud or dishonesty which results in a loss,
                  damage or injury to the Company;

                                    (4) the Grantee's substantial and continuing
                  neglect, gross negligence or inattention in the performance of
                  his or her duties as an employee, board member or advisor of
                  the Company or under any Employment Agreement which is not
                  cured by the Grantee within 10 days of his or her receipt of
                  written notice thereof from the Committee;

                                    (5) the Grantee's unauthorized use or
                  disclosure or any trade secret or confidential information of
                  the Company which adversely affects the business of the
                  Company, provided that any disclosure of any trade secret or
                  confidential information of the Company to a third party in
                  the ordinary course of business who signs a confidentiality
                  agreement shall not be deemed a breach of this subparagraph;

                                    (6) the Grantee's material breach of any of
                  the provisions of any Employment Agreement, which material
                  breach is not cured by the Grantee within 10 days of his or
                  her receipt of a written notice from the Company specifying
                  such material breach; or

                                    (7) the Grantee has voluntarily terminated
                  his or her employment or service with the Company and breaches
                  his or her noncompetition agreement with the Company.

                  (f) Exercise of Options. A Grantee may exercise an Option that
has become exercisable, in whole or in part, by delivering a notice of exercise
to the Company with payment of the Exercise Price. The Grantee shall pay the
Exercise Price for an Option as specified by the Committee:

                           (i) in cash,

                           (ii) by delivering shares of Company Stock owned by
the Grantee for the period necessary to avoid a charge to the Company's earnings
for financial reporting purposes (including Company Stock acquired in connection
with the exercise of an Option, subject to such restrictions as the Committee
deems appropriate) and having a Fair Market Value on the date of exercise equal
to the Exercise Price,

                           (iii) after a Public Offering, by payment through a
broker in accordance with procedures permitted by Regulation T of the Federal
Reserve Board, or

                           (iv) by such other method of payment as the Committee
may approve.

                           Shares of Company Stock used to exercise an Option
shall have been held by the Grantee for the requisite period of time to avoid
adverse accounting consequences to the Company with respect to the Option. The
Grantee shall pay the Exercise Price and the amount of any withholding tax due
(pursuant to Section 9) at the time of exercise.

                  (g) Limits on Incentive Stock Options. Each Incentive Stock
Option shall provide that if the aggregate Fair Market Value of the stock on the
date of the grant with respect to which Incentive Stock Options are exercisable
for the first time by a Grantee during any calendar year, under the Plan or any
other stock option plan of the Company or a parent or subsidiary, exceeds
$100,000, then the option, as to the

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excess, shall be treated as a Nonqualified Stock Option. An Incentive Stock
Option shall not be granted to any person who is not an Employee of the Company
or a parent or subsidiary (within the meaning of section 424(f) of the Code).

         6.       Restricted Stock Grants

         The Committee may issue or transfer shares of Company Stock to a
Grantee under a Grant of Restricted Stock upon such terms as the Committee deems
appropriate. The following provisions are applicable to Restricted Stock:

                  (a) General Requirements. Shares of Company Stock issued or
transferred pursuant to Restricted Stock Grants may be issued or transferred for
consideration or for no consideration, as determined by the Committee. The
Committee may establish conditions under which restrictions on shares of
Restricted Stock shall lapse over a period of time or according to such other
criteria as the Committee deems appropriate. The period of time during which the
Restricted Stock will remain subject to restrictions will be designated in the
Grant Instrument as the "Restriction Period."

                  (b) Number of Shares. The Committee shall determine the number
of shares of Company Stock to be issued or transferred pursuant to a Restricted
Stock Grant and the restrictions applicable to such shares.

                  (c) Requirement of Employment. If the Grantee ceases to be
employed by the Company (as defined in Section 5(e)) during a period designated
in the Grant Instrument as the Restriction Period, or if other specified
conditions are not met, the Restricted Stock Grant shall terminate as to all
shares covered by the Grant as to which the restrictions have not lapsed, and
those shares of Company Stock must be immediately returned to the Company. The
Committee may, however, provide for complete or partial exceptions to this
requirement as it deems appropriate.

                  (d) Restrictions on Transfer and Legend on Stock Certificate.
During the Restriction Period, a Grantee may not sell, assign, transfer, pledge
or otherwise dispose of the shares of Restricted Stock except to a Successor
Grantee under Section 10(a). Each certificate for a share of Restricted Stock
shall contain a legend giving appropriate notice of the restrictions in the
Grant. The Grantee shall be entitled to have the legend removed from the stock
certificate covering the shares subject to restrictions when all restrictions on
such shares have lapsed. The Committee may determine that the Company will not
issue certificates for shares of Restricted Stock until all restrictions on such
shares have lapsed, or that the Company will retain possession of certificates
for shares of Restricted Stock until all restrictions on such shares have
lapsed.

                  (e) Right to Vote and to Receive Dividends. Unless the
Committee determines otherwise, during the Restriction Period, the Grantee shall
have the right to vote shares of Restricted Stock and to receive any dividends
or other distributions paid on such shares, subject to any restrictions deemed
appropriate by the Committee.

                  (f) Lapse of Restrictions. All restrictions imposed on
Restricted Stock shall lapse upon the expiration of the applicable Restriction
Period and the satisfaction of all conditions imposed by the Committee. The
Committee may determine, as to any or all Restricted Stock Grants, that the
restrictions shall lapse without regard to any Restriction Period.

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         7.       Stock Appreciation Rights

                  (a) General Requirements. The Committee may grant stock
appreciation rights ("SARs") to a Grantee separately or in tandem with any
Option (for all or a portion of the applicable Option). Tandem SARs may be
granted either at the time the Option is granted or at any time thereafter while
the Option remains outstanding; provided, however, that, in the case of an
Incentive Stock Option, SARs may be granted only at the time of the Grant of the
Incentive Stock Option. The Committee shall establish the base amount of the SAR
at the time the SAR is granted. Unless the Committee determines otherwise, the
base amount of each SAR shall be equal to the per share Exercise Price of the
related Option or, if there is no related Option, the Fair Market Value of a
share of Company Stock as of the date of Grant of the SAR.

                  (b) Tandem SARs. In the case of tandem SARs, the number of
SARs granted to a Grantee that shall be exercisable during a specified period
shall not exceed the number of shares of Company Stock that the Grantee may
purchase upon the exercise of the related Option during such period. Upon the
exercise of an Option, the SARs relating to the Company Stock covered by such
Option shall terminate. Upon the exercise of SARs, the related Option shall
terminate to the extent of an equal number of shares of Company Stock.

                  (c) Exercisability. A SAR shall be exercisable during the
period specified by the Committee in the Grant Instrument and shall be subject
to such vesting and other restrictions as may be specified in the Grant
Instrument. The Committee may accelerate the exercisability of any or all
outstanding SARs at any time for any reason. SARs may only be exercised while
the Grantee is employed by the Company or during the applicable period after
termination of employment as described in Section 5(e). A tandem SAR shall be
exercisable only during the period when the Option to which it is related is
also exercisable. No SAR may be exercised for cash by an officer or director of
the Company or any of its subsidiaries who is subject to Section 16 of the
Exchange Act, except in accordance with Rule 16b-3 under the Exchange Act.

                  (d) Value of SARs. When a Grantee exercises SARs, the Grantee
shall receive in settlement of such SARs an amount equal to the value of the
stock appreciation for the number of SARs exercised, payable in cash, Company
Stock or a combination thereof. The stock appreciation for a SAR is the amount
by which the Fair Market Value of the underlying Company Stock on the date of
exercise of the SAR exceeds the base amount of the SAR as described in
Subsection (a).

                  (e) Form of Payment. The Committee shall determine whether the
appreciation in a SAR shall be paid in the form of cash, shares of Company
Stock, or a combination of the two, in such proportion as the Committee deems
appropriate. For purposes of calculating the number of shares of Company Stock
to be received, shares of Company Stock shall be valued at their Fair Market
Value on the date of exercise of the SAR. If shares of Company Stock are to be
received upon exercise of an SAR, cash shall be delivered in lieu of any
fractional share.

         8.       Performance Units

                  (a) General Requirements. The Committee may grant performance
units ("Performance Units") to a Grantee. Each Performance Unit shall represent
the right of the Grantee to receive an amount based on the value of the
Performance Unit, if performance goals established by the Committee are met. A
Performance Unit shall be based on the Fair Market Value of a share of Company
Stock or on such other

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measurement base as the Committee deems appropriate. The Committee shall
determine the number of Performance Units to be granted and the requirements
applicable to such Units.

                  (b) Performance Period and Performance Goals. When Performance
Units are granted, the Committee shall establish the performance period during
which performance shall be measured (the "Performance Period"), performance
goals applicable to the Units ("Performance Goals") and such other conditions of
the Grant as the Committee deems appropriate. Performance Goals may relate to
the financial performance of the Company or its operating units, the performance
of Company Stock, individual performance, or such other criteria as the
Committee deems appropriate.

                  (c) Payment with respect to Performance Units. At the end of
each Performance Period, the Committee shall determine to what extent the
Performance Goals and other conditions of the Performance Units are met and the
amount, if any, to be paid with respect to the Performance Units. Payments with
respect to Performance Units shall be made in cash, in Company Stock, or in a
combination of the two, as determined by the Committee.

                  (d) Requirement of Employment. If the Grantee ceases to be
employed by the Company (as defined in Section 5(e)) during a Performance
Period, or if other conditions established by the Committee are not met, the
Grantee's Performance Units shall be forfeited. The Committee may, however,
provide for complete or partial exceptions to this requirement as it deems
appropriate.

         9.       Qualified Performance-Based Compensation.

                  (a) Designation as Qualified Performance-Based Compensation.
The Committee may determine that Performance Units or Restricted Stock granted
to an Employee shall be considered "qualified performance-based compensation"
under Section 162(m) of the Code. The provisions of this Section 9 shall apply
to Grants of Performance Units and Restricted Stock that are to be considered
"qualified performance-based compensation" under Section 162(m) of the Code.

                  (b) Performance Goals. When Performance Units or Restricted
Stock that are to be considered "qualified performance-based compensation" are
granted, the Committee shall establish in writing (i) the objective performance
goals that must be met in order for restrictions on the Restricted Stock to
lapse or amounts to be paid under the Performance Units, (ii) the Performance
Period during which the performance goals must be met, (iii) the threshold,
target and maximum amounts that may be paid if the performance goals are met,
and (iv) any other conditions, including without limitation provisions relating
to death, disability, other termination of employment or Reorganization, that
the Committee deems appropriate and consistent with the Plan and Section 162(m)
of the Code. The performance goals may relate to the Employee's business unit or
the performance of the Company and its subsidiaries as a whole, or any
combination of the foregoing. The Committee shall use objectively determinable
performance goals based on one or more of the following criteria: stock price,
earnings per share, net earnings, operating earnings, return on assets,
stockholder return, return on equity, growth in assets, unit volume, sales,
market share, or strategic business criteria consisting of one or more
objectives based on meeting specific revenue goals, market penetration goals,
geographic business expansion goals, cost targets or goals relating to
acquisitions or divestitures.

                  (c) Establishment of Goals. The Committee shall establish the
performance goals in writing either before the beginning of the Performance
Period or during a period ending no later than the earlier of (i) 90 days after
the beginning of the Performance Period or (ii) the date on which 25% of the

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Performance Period has been completed, or such other date as may be required or
permitted under applicable regulations under Section 162(m) of the Code. The
performance goals shall satisfy the requirements for "qualified
performance-based compensation," including the requirement that the achievement
of the goals be substantially uncertain at the time they are established and
that the goals be established in such a way that a third party with knowledge of
the relevant facts could determine whether and to what extent the performance
goals have been met. The Committee shall not have discretion to increase the
amount of compensation that is payable upon achievement of the designated
performance goals.

                  (d) Maximum Payment. If Restricted Stock, or Performance Units
measured with respect to the fair market value of the Company Stock, are
granted, not more than 625,000 shares may be Granted to any Grantee for any
Performance Period. If Performance Units are measured with respect to other
criteria, the maximum amount that may be paid to an Employee with respect to a
Performance Period is $ 1,000,000.

                  (e) Announcement of Grants. The Committee shall certify and
announce the results for each Performance Period to all Grantees immediately
following the announcement of the Company's financial results for the
Performance Period. If and to the extent that the Committee does not certify
that the performance goals have been met, the grants of Restricted Stock or
Performance Units for the Performance Period shall be forfeited.

         10.      Withholding of Taxes

                  (a) Required Withholding. All Grants under the Plan shall be
subject to applicable federal (including FICA), state and local tax withholding
requirements. The Company shall have the right to deduct from all Grants paid in
cash, or from other wages paid to the Grantee, any federal, state or local taxes
required by law to be withheld with respect to such Grants. In the case of
Options and other Grants paid in Company Stock, the Company may require the
Grantee or other person receiving such shares to pay to the Company the amount
of any such taxes that the Company is required to withhold with respect to such
Grants, or the Company may deduct from other wages paid by the Company the
amount of any withholding taxes due with respect to such Grants.

                  (b) Election to Withhold Shares. If the Committee so permits,
a Grantee may elect to satisfy the Company's income tax withholding obligation
with respect to an Option, SAR, Restricted Stock or Performance Units paid in
Company Stock by having shares withheld up to an amount that does not exceed the
Grantee's maximum marginal tax rate for federal (including FICA), state and
local tax liabilities. The election must be in a form and manner prescribed by
the Committee and shall be subject to the prior approval of the Committee.

         11.      Transferability of Grants

                  (a) Nontransferability of Grants. Except as provided below,
only the Grantee may exercise rights under a Grant during the Grantee's
lifetime. A Grantee may not transfer those rights except by will or by the laws
of descent and distribution or, with respect to Grants other than Incentive
Stock Options, if permitted in any specific case by the Committee, pursuant to a
domestic relations order (as defined under the Code or Title I of the Employee
Retirement Income Security Act of 1974, as amended, or the regulations
thereunder). When a Grantee dies, the personal representative or other person
entitled to succeed to the rights of the Grantee ("Successor Grantee") may
exercise such rights. A Successor Grantee must furnish proof satisfactory to the
Company of his or her right to receive the Grant under the Grantee's will or
under the applicable laws of descent and distribution.

                                       10
<PAGE>   11

                  (b) Transfer of Nonqualified Stock Options. Notwithstanding
the foregoing, the Committee may provide, in a Grant Instrument, that a Grantee
may transfer Nonqualified Stock Options to family members or other persons or
entities according to such terms as the Committee may determine; provided that
the Grantee receives no consideration for the transfer of an Option and the
transferred Option shall continue to be subject to the same terms and conditions
as were applicable to the Option immediately before the transfer.

         12.      Reorganization of the Company.

                  (a) Reorganization. As used herein, a "Reorganization" shall
be deemed to have occurred if the stockholders of the Company approve (or, if
stockholder approval is not required, the Board approves) an agreement providing
for (i) the merger or consolidation of the Company with another corporation
where the stockholders of the Company, immediately prior to the merger or
consolidation, will not beneficially own, immediately after the merger or
consolidation, shares entitling such stockholders to more than 50% of all votes
to which all stockholders of the surviving corporation would be entitled in the
election of directors (without consideration of the rights of any class of stock
to elect directors by a separate class vote), (ii) the sale or other disposition
of all or substantially all of the assets of the Company, or (iii) a liquidation
or dissolution of the Company.

                  (b) Assumption of Grants. Upon a Reorganization where the
Company is not the surviving corporation (or survives only as a subsidiary of
another corporation), unless the Committee determines otherwise, all outstanding
Options and SARs that are not exercised shall be assumed by, or replaced with
comparable options or rights by, the surviving corporation.

                  (c) Other Alternatives. Notwithstanding the foregoing, in the
event of a Reorganization, the Committee may take one or both of the following
actions: the Committee may (i) require that Grantees surrender their outstanding
Options and SARs in exchange for a payment by the Company, in cash or Company
Stock as determined by the Committee, in an amount equal to the amount by which
the then Fair Market Value of the shares of Company Stock subject to the
Grantee's unexercised Options and SARs exceeds the Exercise Price of the Options
or the base amount of the SARs, as applicable, or (ii) after giving Grantees an
opportunity to exercise their outstanding Options and SARs, terminate any or all
unexercised Options and SARs at such time as the Committee deems appropriate.
Such surrender or termination shall take place as of the date of the
Reorganization or such other date as the Committee may specify.

                  (d) Limitations. Notwithstanding anything in the Plan to the
contrary, in the event of a Reorganization, the Committee shall not have the
right to take any actions described in the Plan (including without limitation
actions described in Subsection (b) above) that would make the Reorganization
ineligible for pooling of interests accounting treatment or that would make the
Reorganization ineligible for desired tax treatment if, in the absence of such
right, the Reorganization would qualify for such treatment and the Company
intends to use such treatment with respect to the Reorganization.

         13.      Change of Control of the Company.

                  (a) As used herein, a "Change of Control" shall be deemed to
have occurred if

                           (i) Any "person" (as such term is used in Sections
13(d) and 14(d) of the Exchange Act) becomes a "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or

                                       11
<PAGE>   12

indirectly, of securities of the Company representing a majority of the voting
power of the then outstanding securities of the Company except where the
acquisition is approved by the Board; or

                           (ii) Any person has commenced a tender offer or
exchange offer for a majority of the voting power of the then outstanding shares
of the Company.

                  (b) Notice and Acceleration. Unless the Committee determines
otherwise, a Change of Control shall not result in the acceleration of vesting
of outstanding Options and SARs, the removal of restrictions and conditions on
outstanding Restricted Stock grant, or any accelerated payments in connection
with outstanding Performance Units.

                  (c) Other Alternatives. Notwithstanding the foregoing, in the
event of a Change of Control, the Committee may take one or both of the
following actions: the Committee may (i) require that Grantees surrender their
outstanding Options and SARs in exchange for a payment by the Company, in cash
or Company Stock as determined by the Committee, in an amount equal to the
amount by which the then Fair Market Value of the shares of Company Stock
subject to the Grantee's unexercised Options and SARs exceeds the Exercise Price
of the Options or the base amount of the SARs, as applicable, or (ii) after
giving Grantees an opportunity to exercise their outstanding Options and SARs,
terminate any or all unexercised Options and SARs at such time as the Committee
deems appropriate. Such surrender or termination shall take place as of the date
of the Change of Control or such other date as the Committee may specify.

                  (d) Limitations. Notwithstanding anything in the Plan to the
contrary, in the event of a Change of Control, the Committee shall not have the
right to take any actions described in the Plan (including without limitation
actions described in Subsection (c) above) that would make the Change of Control
ineligible for pooling of interests accounting treatment or that would make the
Change of Control ineligible for desired tax treatment if, in the absence of
such right, the Change of Control would qualify for such treatment and the
Company intends to use such treatment with respect to the Change of Control.

         14.      Right of First Refusal

         Prior to a Public Offering, if at any time an individual desires to
sell, encumber, or otherwise dispose of shares of Company Stock distributed to
him under this Plan, the individual shall first offer the shares to the Company
by giving the Company written notice disclosing: (a) the name of the proposed
transferee of the Company Stock; (b) the certificate number and number of shares
of Company Stock proposed to be transferred or encumbered; (c) the proposed
price; (d) all other terms of the proposed transfer; and (e) a written copy of
the proposed offer. Within 30 days after receipt of such notice, the Company
shall have the option to purchase all or part of such Company Stock at the same
price and on the same terms as contained in such notice.

         In the event the Company (or a stockholder, as described below) does
not exercise the option to purchase Company Stock, as provided above, the
individual shall have the right to sell, encumber or otherwise dispose of his
shares of Company Stock on the terms of the transfer set forth in the written
notice to the Company, provided such transfer is effected within 30 days after
the expiration of the option period. If the transfer is not effected within such
period, the Company must again be given an option to purchase, as provided
above.

         The Board, in its sole discretion, may waive the Company's right of
first refusal pursuant to this Section 14 and the Company's repurchase right
pursuant to Section 15 below. If the Company's right of first

                                       12
<PAGE>   13

refusal or repurchase right is so waived, the Board may, in its sole discretion,
pass through such right to the remaining stockholders of the Company in the same
proportion that each stockholder's stock ownership bears to the stock ownership
of all the stockholders of the Company, as determined by the Board. To the
extent that a stockholder has been given such right and does not purchase his or
her allotment, the other stockholders shall have the right to purchase such
allotment on the same basis.

         On and after a Public Offering, the Company shall have no further right
to purchase shares of Company Stock under this Section 14 and Section 15 below,
and its limitations shall be null and void.

         Notwithstanding the foregoing, the Committee may require that a Grantee
execute a stockholder's agreement, with such terms as the Committee deems
appropriate, with respect to any Company Stock distributed pursuant to this
Plan. Such agreement may provide that the provisions of this Section 14 and
Section 15 below shall not apply to such Company Stock.

         15.      Purchase by the Company

         Prior to a Public Offering, if a Grantee ceases to be employed by the
Company, whether terminated for cause or voluntarily, the Company shall have the
right to purchase all or part of any Company Stock distributed to him under this
Plan at the exercise price paid by the Grantee (unless otherwise determined by
the Board or the Committee), and in all other cases at its then current Fair
Market Value (as defined in Section 5(b)); provided, however, that such
repurchase shall be made in accordance with applicable accounting rules to avoid
adverse accounting treatment.

         16.      Requirements for Issuance or Transfer of Shares

                  (a) Stockholder's Agreement. The Committee may require that a
Grantee execute a stockholder's agreement, with such terms as the Committee
deems appropriate, with respect to any Company Stock distributed pursuant to
this Plan.

                  (b) Limitations on Issuance or Transfer of Shares. No Company
Stock shall be issued or transferred in connection with any Grant hereunder
unless and until all legal requirements applicable to the issuance or transfer
of such Company Stock have been complied with to the satisfaction of the
Committee. The Committee shall have the right to condition any Grant made to any
Grantee hereunder on such Grantee's undertaking in writing to comply with such
restrictions on his or her subsequent disposition of such shares of Company
Stock as the Committee shall deem necessary or advisable as a result of any
applicable law, regulation or official interpretation thereof, and certificates
representing such shares may be legended to reflect any such restrictions.
Certificates representing shares of Company Stock issued or transferred under
the Plan will be subject to such stop transfer orders and other restrictions as
may be required by applicable laws, regulations and interpretations, including
any requirement that a legend be placed thereon.

         17.      Amendment and Termination of the Plan

                  (a) Amendment. The Board may amend or terminate the Plan at
any time.

                  (b) Termination of Plan. The Plan shall terminate on the day
immediately preceding the tenth anniversary of its effective date, unless the
Plan is terminated earlier by the Board or is extended by the Board with the
approval of the stockholders.

                                       13
<PAGE>   14

                  (c) Termination and Amendment of Outstanding Grants. A
termination or amendment of the Plan that occurs after a Grant is made shall not
materially impair the rights of a Grantee unless the Grantee consents. The
termination of the Plan shall not impair the power and authority of the
Committee with respect to an outstanding Grant. Whether or not the Plan has
terminated, an outstanding Grant may be terminated or amended in accordance with
the Plan or may be amended by agreement of the Company and the Grantee
consistent with the Plan.

                  (d) Governing Document. The Plan shall be the controlling
document. No other statements, representations, explanatory materials or
examples, oral or written, may amend the Plan in any manner. The Plan shall be
binding upon and enforceable against the Company and its successors and assigns.

         18.      Funding of the Plan

         This Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Grants under this Plan. In no event shall
interest be paid or accrued on any Grant, including unpaid installments of
Grants.

         19.      Rights of Grantees

         Nothing in this Plan shall entitle any Grantee or other person to any
claim or right to be granted a Grant under this Plan. Neither this Plan nor any
action taken hereunder shall be construed as giving any individual any rights to
be retained by or in the employ of the Company or any other employment rights.

         20.      No Fractional Shares

         No fractional shares of Company Stock shall be issued or delivered
pursuant to the Plan or any Grant. The Committee shall determine whether cash,
other awards or other property shall be issued or paid in lieu of such
fractional shares or whether such fractional shares or any rights thereto shall
be forfeited or otherwise eliminated.

         21.      Headings

         Section headings are for reference only. In the event of a conflict
between a title and the content of a Section, the content of the Section shall
control.

         22.      Effective Date of the Plan

         Subject to the approval of the Company's stockholders, the Plan shall
be effective on April 22, 1999.

         23.      Miscellaneous

                  (a) Grants in Connection with Corporate Transactions and
Otherwise. Nothing contained in this Plan shall be construed to (i) limit the
right of the Committee to make Grants under this Plan in connection with the
acquisition, by purchase, lease, merger, consolidation or otherwise, of the
business or assets of any corporation, firm or association, including Grants to
employees thereof who become Employees of the Company, or for other proper
corporate purposes, or (ii) limit the right of the Company to grant stock
options or make other awards outside of this Plan. Without limiting the
foregoing, the Committee may make a Grant to an employee of another corporation
who becomes an Employee by reason of a corporate merger,

                                       14
<PAGE>   15

consolidation, acquisition of stock or property, reorganization or liquidation
involving the Company or any of its subsidiaries in substitution for a stock
option or restricted stock grant made by such corporation. The terms and
conditions of the substitute grants may vary from the terms and conditions
required by the Plan and from those of the substituted stock incentives. The
Committee shall prescribe the provisions of the substitute grants.

                  (b) Compliance with Law. The Plan, the exercise of Options and
SARs and the obligations of the Company to issue or transfer shares of Company
Stock under Grants shall be subject to all applicable laws and to approvals by
any governmental or regulatory agency as may be required. With respect to
persons subject to section 16 of the Exchange Act, it is the intent of the
Company that the Plan and all transactions under the Plan comply with all
applicable provisions of Rule 16b-3 or its successors under the Exchange Act.
The Committee may revoke any Grant if it is contrary to law or modify a Grant to
bring it into compliance with any valid and mandatory government regulation. The
Committee may also adopt rules regarding the withholding of taxes on payments to
Grantees. The Committee may, in its sole discretion, agree to limit its
authority under this Section.

                  (c) Governing Law. The validity, construction, interpretation
and effect of the Plan and Grant Instruments issued under the Plan shall
exclusively be governed by and determined in accordance with the law of the
State of Delaware.

                                       15UBS Warburg
                                                            100 Liverpool Street
                                                                 London EC2M 2HR
                                                           Tel. +44-207-568 0687
                                                         Fax. +44-207-568 9895/6

Date:                              6 April 2001

To:                                IVAX Corporation ("Party B")
                                   4400 Biscayne Boulevard
                                   Miami, FL 33137

Attention:                         Timothy Burns
                                   Phone: (305) 575-6131

From:                              UBS AG, London Branch ("Party A")

Re:                                Equity Option Confirmation
                                   UBS Reference: 1314974
--------------------------------------------------------------------------------

The purpose of this communication is to confirm the terms and conditions of the
put option (the "Put Transaction") entered into between us on the Trade Date
specified below. This communication constitutes a "Confirmation" as referred to
in the Master Agreement specified below.

The definitions and provisions contained in the 1996 ISDA Equity Derivatives
Definitions (the "Equity Definitions"), as published by the International Swaps
and Derivatives Association, Inc. ("ISDA") are incorporated into this
Confirmation. In the event of any inconsistency between those definitions and
provisions and this Confirmation, this Confirmation will govern.

This Confirmation evidences a complete binding agreement between you and us as
to the terms of the Transaction to which this Confirmation relates. In addition,
you and we agree to use all reasonable efforts promptly to execute and deliver
an agreement in the form of the ISDA Master Agreement (Multicurrency-Cross
Border) (the "ISDA Form"), with such modifications as you and we will in good
faith agree. Upon the execution by you and us of such an agreement, this
Confirmation will supplement, form a part of, and be subject to that agreement.
All provisions contained or incorporated by reference in that agreement upon its
execution will govern this Confirmation except as expressly modified below.
Until we execute and deliver that agreement, this Confirmation, together with
all other documents referring to the ISDA Form (each a "Confirmation"), shall
supplement, form a part of, and be subject to an agreement in the form of the
ISDA Form as if we had executed an agreement in such form (but without any
Schedule except for the election of U.S. Dollars as the Termination Currency and
such other elections and modifications detailed herein referring to the ISDA
Form) on the Trade Date of the first such Transaction between us. In the event
of any inconsistency between the provisions of that agreement and this
Confirmation, this Confirmation will prevail for the purpose of this
Transaction.

The terms of the Transaction to which this Confirmation relates are as follows:

Trade Date:                        7 December 2000 (time of execution available
                                   on request)

Option Style:                      European Option

Option Type:                       Put

Seller:                            Party B

UBS WARBURG IS A BUSINESS GROUP OF UBS AG

UBS AG is registered as a branch in England and Wales Branch No. BR004507 (A
public company limited by shares, incorporated in Switzerland whose registered
offices are at Aeschenvorstadt 1, CH-4051, Basel and Bahnhofstrasse 45, CH-8001
Zurich) Registered Address: 1 Finsbury Avenue London EC2M 2PP Regulated in the
UK by the Securities and Futures Authority. A member of the London Stock
Exchange.

<PAGE>   2

Buyer:                             Party A

Shares:                            IVAX Corporation (the "Issuer") (Symbol: IVX)

Number of Options:                 250,000

Option Entitlement:                One Share per Option

Strike Price:                      USD 38.00

Premium:                           USD 1,172,500.00

Premium Payment
Date:                              Three Currency Business Days following the
                                   Trade Date

Exchange:                          American Stock Exchange

Related Exchange(s):               Any exchange on which futures or options
                                   referenced to the Shares are traded

Clearance System:                  Depository Trust Company, or any successor to
                                   or transferee of such clearance system.

Calculation Agent:                 Party A

PROCEDURE FOR EXERCISE

Expiration Time:                   The close of trading on the Exchange without
                                   regard to extended or after hours trading
                                   (local time in New York)

Expiration Date:                   7 June 2001

Automatic Exercise:                Applicable

Party B's Contact
Details Notice:                    Timothy Burns
                                   Fax: (305) 575-6121

Reference Price:                   The last reported sale price (if the
                                   Exchange is The NASDAQ Stock Market) or the
                                   closing price (if the Exchange is other than
                                   The NASDAQ Stock Market) per Share at the
                                   Expiration Time on the Expiration Date, as
                                   reported by the Exchange, without regard to
                                   extended or after hours trading.

SETTLEMENT TERMS

Physical Settlement:               Applicable; provided, however,
                                   that Party B may elect to make Cash
                                   Settlement or Net Share Settlement applicable
                                   by giving notice to Party A on a day (the
                                   "Election Date") no later than (in the case
                                   of Cash Settlement) five Exchange Business
                                   Days, or (in the case of Net Share

                                       2
<PAGE>   3

                                   Settlement) twenty Exchange Business Days,
                                   before the Expiration Date.

Cash Settlement:                   If Party B elects Cash Settlement, the Seller
                                   shall pay the Cash Settlement Amount to the
                                   Buyer on the Cash Settlement Payment Date.

Settlement Price:                  If Physical Settlement is applicable,
                                   the Settlement Price shall be the amount
                                   determined in accordance with Section
                                   2.1(g)(iii) of the Equity Definitions, or if
                                   Net Share Settlement or Cash Settlement is
                                   applicable, the Settlement Price shall be the
                                   price determined in accordance with Section
                                   4.4(b)(i) of the Equity Definitions.

Cash Settlement
Payment Date:                      Three Currency Business Days after the
                                   Valuation Date.

Net Share Settlement:              If Party B elects Net Share Settlement, the
                                   Seller shall deliver to the Buyer the number
                                   of whole Shares (the "Settlement Shares")
                                   equal to (i) the Cash Settlement Amount
                                   divided by (ii) the Closing Value, plus cash
                                   in lieu of any fractional Share. At any time
                                   following an election of Net Share Settlement
                                   by Party B (as the settlement method
                                   applicable to the exercise of this
                                   Transaction on the Expiration Date) but no
                                   later than five Exchange Business Days before
                                   the Expiration Date, Party B may elect Cash
                                   Settlement or Physical Settlement.

Closing Value:                     The last reported sale price (if the
                                   Exchange is The NASDAQ Stock Market) or
                                   closing price (if the Exchange is other than
                                   The NASDAQ Stock Market) per Share on the
                                   Valuation Date, as reported by the Exchange,
                                   without regard to extended or after hours
                                   trading.

Settlement Date:                   If Physical Settlement is applicable, the
                                   Settlement Date shall be the date determined
                                   in accordance with Section 6.2 of the Equity
                                   Definitions, or if Net Share Settlement is
                                   applicable, the Settlement Date shall be the
                                   date determined in accordance with Section
                                   6.2 of the Equity Definitions provided that
                                   any reference to "Exercise Date" in that
                                   section shall be deemed to be a reference to
                                   "Valuation Date."

VALUATION

Valuation Time:                    At the close of trading on the Exchange,
                                   without regard to extended or after hours
                                   trading.

Valuation Date:                    As determined in accordance with section 4.2
                                   of the Equity Definitions

Averaging Dates:                   The Expiration Date and one Exchange Business
                                   Day immediately preceding the Expiration
                                   Date.

Averaging Date
Market Disruption:                 Modified Postponement

Relevant Price:                    The last reported sale price (if the
                                   Exchange is The NASDAQ Stock Market) or
                                   closing price (if the Exchange is other than
                                   The NASDAQ Stock Market) per Share at the
                                   Valuation Time on an Averaging Date, as
                                   reported by the Exchange.

                                       3
<PAGE>   4

ADJUSTMENT EVENTS

Method of Adjustment:              Calculation Agent Adjustment

EXTRAORDINARY EVENTS

Consequences of Merger Events:

(a)   Share-for-Share:             Cancellation and Payment

(b)   Share-for-Other:             Cancellation and Payment

(c)   Share-for-Combined:          Cancellation and Payment

For the purposes of this Confirmation, the second line of Section 9.3(b)(ii) of
the Equity Definitions is deleted and replaced with, "Share Basket Option
Transaction, the Option Transaction will be cancelled as of the earlier of (i)
the third Exchange Business Day following the Announcement Date and (ii) the
twentieth Exchange Business Day before the Merger Date".

Nationalization:                   Cancellation and Payment

MISCELLANEOUS

Conditions on Net
Share Settlement:                  If Party B elects Net Share Settlement, the
                                   following conditions must be met: (i) Party B
                                   will enter into a Registration Rights
                                   Agreement with Party A in form and substance
                                   acceptable to Party A not later than the
                                   Election Date, which agreement will contain,
                                   among other things, the representations and
                                   warranties, indemnification and contribution
                                   provisions and the obligation of Party B to
                                   deliver customary opinions of counsel and
                                   accountants' comfort letters and officers'
                                   certificates, in each case, consistent with
                                   those that Party A would require in the case
                                   of a primary issuance of common stock, and
                                   obligations of Party A and Party B relating
                                   to the registration of the Settlement Shares
                                   and the Make-Whole Shares (the "Registered
                                   Shares"); (ii) the Shelf Registration (as
                                   hereinafter defined) shall have been declared
                                   effective by the Securities and Exchange
                                   Commission not less than five Exchange
                                   Business Days prior to the Expiration Date;
                                   and (iii) Party B shall maintain the
                                   effectiveness of the Shelf Registration until
                                   all Registered Shares have been sold by Party
                                   A, assuming Party A uses commercially
                                   reasonable efforts to sell the Registered
                                   Shares within one year. "Shelf Registration"
                                   means a registration statement in form and
                                   substance reasonably acceptable to Party A
                                   for an offering to be made on a continuous
                                   basis pursuant to Rule 415 under the
                                   Securities Act of 1933, as amended,
                                   registering Party A's resale of all the
                                   Settlement Shares, plus any Make-whole
                                   Shares, in the manner or manners designated
                                   by Party A.

Make-Whole
Provision:                         If within sixty Exchange Business Days from
                                   (and including) the date Party B delivers
                                   Settlement Shares to Party A pursuant to Net
                                   Share Settlement of the Transaction, Party A
                                   resells all or any portion of the

                                       4
<PAGE>   5

                                   Settlement Shares and the net proceeds
                                   received by Party A upon resale of such
                                   Shares exceed the Cash Settlement Amount (or
                                   if less than all of the Shares are resold,
                                   the applicable pro rata portion of the Cash
                                   Settlement Amount), Party A shall promptly
                                   refund in cash such difference to Party B. In
                                   the event that such net proceeds are less
                                   than the Cash Settlement Amount (or if less
                                   than all of the Settlement Shares are resold,
                                   the applicable pro rata portion of the Cash
                                   Settlement Amount), Party B shall pay in cash
                                   or additional Shares such difference (the
                                   "Make-whole Amount") to Party A promptly
                                   after receipt of notice thereof. In the event
                                   that Party B elects to pay the Make-whole
                                   Amount in additional Shares, the requirements
                                   set forth above with respect to payment of
                                   the Cash Settlement Amount in Shares,
                                   including Make-whole requirements, shall
                                   apply, such that Party A shall pay to Party B
                                   any such excess and Party B shall pay to
                                   Party A in cash or additional Make-Whole
                                   Shares any additional Make-whole Amount. In
                                   calculating the net proceeds from the resale
                                   of any Settlement Shares there shall be
                                   deducted from such proceeds any amount equal
                                   to the underwriting discount or commission
                                   determined by the Calculation Agent
                                   multiplied by the total number of Shares sold
                                   pursuant to a Shelf Registration or (in the
                                   case of restricted Shares), the total number
                                   of Shares delivered by Party B to Party A
                                   pursuant to Net Share Settlement.

Title to Shares:                   If the Transaction is to be Physically
                                   Settled or Net Share Settled, the party
                                   obligated to deliver Shares represents,
                                   warrants and agrees that (a) (if not the
                                   issuer of the Shares), it is the legal and
                                   beneficial owner of the Shares it is required
                                   to deliver; (b) it has the right to transfer
                                   or, (if the issuer of the Shares) issue,
                                   those Shares; and (c) it will convey good
                                   title to the Shares it is required to
                                   deliver, free from all liens, charges,
                                   equities, rights of pre-emption or other
                                   security interests or encumbrances
                                   whatsoever.

Transfer:                          Neither party may transfer any rights nor
                                   delegate any obligations in respect of the
                                   Transaction, in whole or in part, without the
                                   prior written consent of the non-transferring
                                   party.

Additional Termination Events:     The following shall each be an Additional
                                   Termination Event with respect to Party B
                                   with Party B as the sole Affected Party and
                                   all Share Eligible Transactions as Affected
                                   Transactions:

                                   (a) At any time during the term of this
                                   Transaction, the Closing Price is at or below
                                   USD 15.00 (as adjusted for stock splits or
                                   similar events or as otherwise adjusted in
                                   accordance with this Confirmation, or as
                                   agreed between the parties) (the "Trigger
                                   Price"). For the purpose of this Additional
                                   Termination Event, "Closing Price" shall be
                                   defined as the last reported sale price (if
                                   the Exchange is The NASDAQ Stock Market) or
                                   closing price (if the Exchange is other than
                                   The NASDAQ Stock Market) per Share determined
                                   by the Calculation Agent at the close of
                                   trading on the Exchange on any Exchange
                                   Business Day during the term of the
                                   Transaction.

                                   (b) Provided no Event of Default has occurred
                                   and is continuing with respect to Party B, if
                                   Party B has elected Net Share Settlement, and
                                   Party B has used its best efforts to satisfy
                                   the Conditions on Net Share

                                       5
<PAGE>   6

                                   Settlement but has been unable to because the
                                   Registration Statement is not declared
                                   effective by the SEC within the time set out
                                   in the paragraph titled, "Conditions on Net
                                   Share Settlement".

                                   For the avoidance of doubt the occurrence of
                                   an Additional Termination Event, as defined
                                   in the immediately preceding paragraph, shall
                                   not, of itself, constitute an Event of
                                   Default.

                                   If an Additional Termination Event as defined
                                   in the second immediately preceding paragraph
                                   occurs, Section 6(b)(iv) of the Agreement
                                   will be deemed to be amended by adding the
                                   words, "and not less than 5 Exchange Business
                                   Days notice" immediately after the word,
                                   "notice" where it appears in the third last
                                   line of Section 6(b)(iv).

ADDITIONAL MODIFICATIONS TO AND ELECTIONS UNDER THE ISDA FORM

A. Governing Law and Consent to Jurisdiction

The Transaction will be governed by and construed in accordance with the laws of
New York (without reference to choice of law doctrine). Solely as between the
parties hereto, and relating solely to matters arising concerning this
Transaction, each party irrevocably submits to the exclusive jurisdiction of the
courts of the state of New York and the United States District Court located in
the Borough of Manhattan in the City of New York, and waives any objection which
it may have at any time to the laying of venue of any proceedings concerning
this transaction brought in such court, waives any claim that such proceedings
have been brought in an inconvenient forum and further waives the right to
object that such court does not have jurisdiction over any party.

B. Representations and Warranties

Party A and Party B each hereby represents, warrants and agrees as follows: (i)
it is an "accredited investor," as such term is defined in Regulation D
promulgated under the Securities Act of 1933, (ii) it has had access to such
information regarding the Transaction and the other party as it requested, (iii)
it has knowledge and experience in financial and business matters and is capable
of evaluating the merits and risks of the Transaction and is able to bear the
economic risk of its investment, including without limitation the risk of
complete loss on the investment, and (iv) it acquired its interest herein and in
the Transaction evidenced hereby for its own account for investment and not with
a view to, or in connection with, any distribution of such interests.

C. "Specified Entity" means in relation to Party A for the purpose of:

         Section 5(a)(v),                            Any Affiliate of Party A
         Section 5(a)(vi),                           NONE
         Section 5(a)(vii),                          NONE
         Section 5(b)(iv),                           NONE

         and in relation to Party B for the purpose of:

         Section 5(a)(v),                            Any Affiliate of  Party B
         Section 5(a)(vi),                           Any Affiliate of  Party B
         Section 5(a)(vii),                          Any Affiliate of  Party B
         Section 5(b)(iv),                           NONE

D. The "Cross Default" provisions of Section 5(a)(vi) of the ISDA Form, as
modified below, will apply to Party A and to Party B. Section 5(a)(vi) of ISDA
Form is hereby amended by the addition of the following at the end thereof:

                                       6
<PAGE>   7

              "provided, however, that notwithstanding the foregoing, an Event
of Default shall not occur under either (1) or (2) above if, as demonstrated to
the reasonable satisfaction of the other party, (a) the event or condition
referred to in (1) or the failure to pay referred to in (2) is a failure to pay
caused by an error or omission of an administrative or operational nature; and
(b) funds were available to such party to enable it to make the relevant payment
when due; and (c) such relevant payment is made within three Business Days
following receipt of written notice from an interested party of such failure to
pay."

         "Specified Indebtedness" means any obligation (whether present or
future, contingent or otherwise, as principal or surety or otherwise) for the
payment or repayment of any money.

         "Threshold Amount" means:

         (i)      with respect to Party A an amount equal to 2% of shareholders'
                  equity (howsoever described) of Party A, or any Specified
                  Entity, as shown on the most recent annual audited financial
                  statements of Party A or the relevant Specified Entity and
         (ii)     with respect to Party B, or any Specified Entity, the lesser
                  of USD 10 million (or the equivalent in any other currency or
                  currencies) or an amount equal to 2% of shareholders' equity
                  (howsoever described) of Party B or the relevant Specified
                  Entity as shown on the most recent annual audited financial
                  statements of Party B.

E. "Payments on Early Termination". For the purpose of Section 6(e) of the ISDA
    Form:
         (i)      Loss will apply.
         (ii)     The Second Method will apply.

F. In consideration of the parties continuing obligations under this
Transaction, Party A and Party B amend Section 5(a)(ii) of the ISDA Form as of
the Trade Date such that, for the purpose of determining an Event of Default
with respect to Party B under Section 5(a)(ii), the penultimate and last lines
of Section 5(a)(ii) are deleted and replaced with, "with this ISDA Form if such
failure is not remedied on or before the second Exchange Business Day after
Party A has given notice of such failure to Party B (such notice may be given by
facsimile using the most recent facsimile number notified by Party B to Party A
and will be deemed given to Party B upon receipt by Party A of a positive
transmission report generated by Party A's facsimile machine)".

Notwithstanding any other provisions of this Confirmation or the ISDA Form, the
following provisions shall apply:

1. SETTLEMENT ON EXTRAORDINARY EVENT:

(a) If payment is required of Party B in connection with a Merger Event, Party B
shall have the right, in its sole discretion, to elect (the "Extraordinary
Transaction Election") to satisfy any such payment obligation by Net Share
Settlement of this Transaction PROVIDED THAT, in connection with a
"Share-for-Combined" Merger Event or "Share-for-Other" Merger Event, the
Extraordinary Transaction Election is available to satisfy only the percentage
of such payment obligation equal to the percentage of the non-cash consideration
over the total Combined Consideration (in the case of a "Share-for-Combined"
Merger Event) or total Other Consideration (in the case of a "Share-for-Other"
Merger Event). The remaining percentage of such payment obligation must be
satisfied in cash. Party B shall make any election to Net Share Settle the
Transaction within two Exchange Business Days of the Announcement Date but in
any event not less than twenty Exchange Business Days prior to the effective
date of such Merger.

(b) For purposes of any such Net Share Settlement: (i) the "Shares" to be
registered and delivered to Party A shall be the Shares, (ii) the Cash
Settlement Amount shall be the amount determined in accordance with Section 9.7
of the Equity Definitions, provided that, for the purposes of this Confirmation,
the second and third lines of Section 9.7(b) of the Equity Definitions are
deleted and replaced with, "promptly by the

                                       7
<PAGE>   8

parties after the Extraordinary Transaction Election, failing which it will be
determined by the Calculation Agent and based on", (iii) the Closing Value shall
be the last reported sale price (if the Exchange is The NASDAQ Stock Market) or
closing price (if the Exchange is other than The NASDAQ Stock Market) per Share
without regard to extended or after hours trading on the third Exchange Business
Day immediately preceding the Settlement Date, (iv) the Settlement Date shall be
the tenth Clearance System Business Day following the Announcement Date, but in
any event not later than eight Exchange Business Days before the Merger Date,
and (v) the entity surviving, resulting from, or acquiring Party B in connection
with the Merger Event shall comply with all of the Conditions on Net Share
Settlement set forth in this confirmation.

2. CALCULATIONS AND PAYMENT ON EARLY TERMINATION:

(a) The obligations of Party B to make payments pursuant to Section 6(d) and (e)
of the ISDA Form are modified as follows: Party B shall have the right to make
any payment required pursuant to Section 6(e) of the ISDA Form following the
occurrence of an Early Termination Date in respect of this Transaction and any
other Transaction between the parties referenced to the Shares and to which this
modification of the ISDA Form is expressly made applicable and under which Party
B is required to make a payment pursuant to Section 6(d) or (e) of the ISDA Form
and which Party B's auditors confirm is eligible to be accounted for, and which
Party B does account for, as "permanent equity" within the meaning and for the
purposes of EITF 00-19 or any successor financial statement guidance ("Share
Eligible Transactions") by electing to Net Share Settle the Share Eligible
Transactions in accordance with the terms and conditions for Net Share
Settlement herein and in any other Share Eligible Transaction. Party B shall
elect to Net Share Settle the Share Eligible Transactions by giving notice to
Party A of such election (i) if Party B is the Defaulting or Affected Party,
within one Exchange Business Day after the notice fixing an Early Termination
Date is received by Party B or (ii) if Party A is the Defaulting or Affected
Party, in the notice fixing an Early Termination Date. If Party B elects Net
Share Settlement:

         (i)      The relevant parties shall determine pursuant to Section 6(e)
                  of the ISDA Form the Loss applicable to Share Eligible
                  Transactions and to Transactions that are not Share Eligible
                  Transactions ("Other Transactions") (for the avoidance of
                  doubt, Other Transactions includes Transactions referenced to
                  the Shares in respect of which Party A has a payment
                  obligation to Party B under Section 6(d) or (e) of the ISDA
                  Form) and the Cash Settlement Amount for purposes of Net Share
                  Settlement of Share Eligible Transactions shall be the amount,
                  if any, payable by Party B to Party A as the Loss in respect
                  of Share Eligible Transactions.

                  The last sentence of the first paragraph of Section 6(e) of
                  the ISDA Form shall not apply with respect to Share Eligible
                  Transactions. Nothing in the immediately preceding sentence
                  shall affect the obligations of the parties to pay the amount
                  determined in accordance with Section 6(e) in respect of Other
                  Transactions in cash in accordance with Section 6 of the ISDA
                  Form.

         (ii)     The Settlement Date for Net Share Settlement shall be the
                  later of:

                  (A)      the payment date determined pursuant to Section
                           6(d)(ii) of the ISDA Form; and

                  (B)      the earlier of (x) the second Exchange Business Day
                           following the date the Registration Statement is
                           declared effective by the Securities and Exchange
                           Commission ("SEC"); and (y) the date determined
                           pursuant to PARAGRAPH 2(A)(VI)(A)(4).

         (iii)    Deleted.

         (iv)     Party B shall comply with all of the Conditions on Net Share
                  Settlement applicable to Share Eligible Transactions, except
                  that the Registration Statement must be declared effective by
                  the Securities and Exchange Commission ("SEC") not later than
                  the close of business on the second Exchange Business Day
                  following the notice fixing an Early Termination Date.

                                       8
<PAGE>   9

         (v)      To the extent permitted under applicable law, interest (before
                  as well as after judgment) in the Termination Currency, shall
                  accrue on, and be added to, the Cash Settlement Amount from
                  (and including) the relevant Early Termination Date to (but
                  excluding) the date such amount is paid or otherwise settled
                  by the delivery of the necessary number of Shares as required
                  herein, at the Applicable Rate. Such interest will be
                  calculated on the basis of daily compounding and the actual
                  number of days elapsed.

         (vi)     If Party B has used its best efforts to satisfy the Conditions
                  on Net Share Settlement but has been unable to because the
                  Registration Statement is not declared effective by the SEC
                  within the time set out in PARAGRAPH 2(A)(IV) (or, where Party
                  A has previously made the election set out in PARAGRAPH
                  2(A)(VI)(B), within the time designated pursuant to PARAGRAPH
                  2(A)(VI)(B)), Party A, in its absolute discretion, may elect
                  to:

                      (A)  receive the relevant number of Shares from Party B in
                           which case:

                           (1)      the day on which Party A makes such an
                                    election to receive such Shares from Party B
                                    is the "Party A Election Date", and

                           (2)      Party B shall withdraw any Registration
                                    Statement filed with the SEC in connection
                                    with the Shares, and

                           (3)      Party B will enter into a Private Placement
                                    Purchase Agreement with Party A in form and
                                    substance acceptable to Party A no later
                                    than the next Exchange Business Day
                                    following the Party A Election Date, and

                           (4)      Party B shall deliver to Party A such Shares
                                    on the Settlement Date which, for the
                                    purposes of this PARAGRAPH 2(A)(VI)(A)(4),
                                    shall be the third Exchange Business Day
                                    following the Party A Election Date, and

                           (5)      in addition to any Make-whole Amount payable
                                    by Party B pursuant to the Make-Whole
                                    Provision herein, Party B shall deliver to
                                    Party A such additional Shares until Party A
                                    has realized actual net proceeds upon resale
                                    of such Shares equal to Party A's Loss. At
                                    its election, Party A may by a written
                                    notice to Party B retain a number of Shares
                                    delivered by Party B pursuant to this
                                    PARAGRAPH (2)(A)(VI). If Party A so elects,
                                    Party A shall be deemed to have sold each
                                    such retained Share for an amount equal to
                                    the price per Share obtained by Party A in
                                    the last Share sold by Party A prior to
                                    sending written notice of its intention to
                                    retain Shares to Party B. In no event will
                                    Party A be obligated to exercise its right
                                    to retain Shares; or

                      (B)  extend the period within which the Registration
                           Statement is to be declared effective by the SEC for
                           a further period specified in writing by Party A at
                           the time of such extension.

This section entitled Calculations and Payment on Early Termination shall be
applicable only to the extent and only for as long as necessary for Party B to
account for this Transaction as "permanent equity" within the meaning and for
the purposes of EITF 00-19 or any successor financial statement guidance. Party
B has made its own independent decision based upon its own judgment and upon
advice from such advisers as it has deemed necessary, as to whether the
Transaction may be accounted for as "permanent equity" within such meaning and
for such purposes and is not relying on any communication (written or oral) of
Party A in this regard.

3. OTHER PROVISIONS

(a) Determined Amount. Notwithstanding any other provision applicable to this
Transaction, if Party B exercises its right pursuant to SECTION 2(A) above to
Net Share Settle this Transaction, Party B shall not be obliged to deliver, in
connection with this Transaction, in excess of 4,500,000 Shares, as recalculated
from time to time (the "Determined Amount"). The number of Shares (if any) equal
to (u)(i) the Cash Settlement Amount divided by (ii) the Closing Value (both
terms as defined in section 2(a) above), minus (v) the Determined Amount, are
the "Excess Shares". In the event that, but for this SECTION 3, Party B would be
obliged to deliver a number of Shares equal to the Determined Amount plus the
Excess Shares, Party B agrees to (x) satisfy its remaining obligation by cash
payment or; (y) (i) use its best efforts to increase its

                                       9
<PAGE>   10

number of Authorized Shares, thereby increasing the Determined Amount, to the
extent necessary so that, but for this SECTION 3, the number of Shares Party B
would be obliged to deliver does not exceed the (recalculated) Determined Amount
and (ii) allocate such newly Authorized Shares in satisfaction of Party B's
delivery obligations under this Transaction in priority to any other use of such
Shares. For the avoidance of doubt, the obligation of Party B to so use its best
efforts is an ongoing obligation.

         The Determined Amount will be recalculated at any time there is an
increase of 5% or more in Party B's number of Authorized Shares or Party B
repurchases in excess of 5% of its Issued Shares at any time on or after the
Trade Date and on or before the Settlement Date, with such recalculation to
apply immediately when such increase or repurchase (as applicable) is effective.

         If, at any time during the term of this Transaction, the trigger price
(howsoever described) referenced in any other equity derivatives transaction to
which Party B is a party and in respect of which Party B's equity securities
constitute (all or part of) the instruments underlying the transaction (the
"Other Trigger Price") is greater than the Trigger Price, the Trigger Price is
automatically increased to equal the Other Trigger Price.

(b) Party B hereby represents and warrants that it will:

                  (i)      calculate the Determined Amount based on the maximum
                           amount able to be calculated in accordance with EITF
                           00-19 or any successor financial statement guidance;
                           and

                  (ii)     in respect of all equity derivative transactions in
                           respect of which Party B's equity securities
                           constitute (all or part of) the instruments
                           underlying such transactions (the "Derivative
                           Trades"), use the same methodology to derive the
                           Determined Amount (howsoever described) applicable to
                           each Derivative Trade as is used to derive the
                           Determined Amount for this Transaction.

(c) Rights in Bankruptcy. Notwithstanding anything in this Confirmation to the
contrary, Party A agrees that, in respect of any obligations Party B has duly
elected be satisfied by Net Share Settlement in accordance with this
Confirmation, in the event of Party B's bankruptcy, Party A shall not have
rights in bankruptcy that rank senior to the rights in bankruptcy of common
shareholders of Party B.

ACCOUNT DETAILS

Party A:                           CASH PAYMENTS FOR PHYSICAL SETTLEMENT

                                   Citibank, New York
                                   ABA# 021 000 089
                                   AC# 4065 2556
                                   UBS Warburg LLC

                                   CASH SETTLEMENT PAYMENTS OR USD PREMIUM
                                   PAYMENTS

                                   UBS AG Stamford
                                   f/a/o UBS AG London Branch
                                   ABA# 026-007-993
                                   AC# 101-WA-140007-000

                                   DELIVERY OF SHARES FOR PHYSICAL SETTLEMENT
                                   AND NET SHARE SETTLEMENT

                                   UBS Warburg LLC
                                   DTC 642
                                   Account of UBS Warburg, London

Party B:                           (please advise)

                                       10
<PAGE>   11

RELATIONSHIP BETWEEN PARTIES

Each party will be deemed to represent to the other party on the date on which
it enters into a Transaction that (absent a written agreement between the
parties that expressly imposes affirmative obligations to the contrary for that
Transaction):

(a) NON-RELIANCE. It is acting for its own account, and it has made its own
independent decisions to enter into that Transaction and as to whether that
Transaction is appropriate or proper for it based upon its own judgment and upon
advice from such advisers as it has deemed necessary. It is not relying on any
communication (written or oral) of the other party as investment advice or as a
recommendation to enter into that Transaction; it being understood that
information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to
enter into that Transaction. No communication (written or oral) received from
the other party shall be deemed to be an assurance or guarantee as to the
expected results of that Transaction.

(b) ASSESSMENT AND UNDERSTANDING. It is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice),
and understands and accepts the terms, conditions and risks of that Transaction.
It is also capable of assuming, and assumes, the risks of that Transaction.

(c) STATUS OF PARTIES. The other party is not acting as a fiduciary for or an
adviser to it in respect of that Transaction.

Please confirm that the foregoing correctly sets forth the terms of our
agreement by executing the copy of this Confirmation enclosed for that purpose
and returning it to us by facsimile (203 719 0538) at your earliest convenience.

Yours sincerely,

UBS AG, LONDON BRANCH

By: /s/ Martin Perkins                        By: /s/ Rupert Hilmi
   --------------------------                    -------------------------------
Name:  Martin Perkins                          Name:  Rupert Hilmi
Title: Director                                Title: Associate Director

Confirmed as of the 10th day
of April, 2001

IVAX Corporation

By: /s/ Thomas Beier                          By: /s/ Rao Uppaluri
   --------------------------                    -------------------------------
   Name: Thomas Beier                            Name: Rao Uppaluri
   Title: Sr. Vice President                     Title: Vice President Strat.
          & CFO                                         Planning & Treasurer

                                       11

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