Document:

Exhibit 4.3

 

AMENDMENT TO RIGHTS AGREEMENT

 

                THIS AMENDMENT TO RIGHTS AGREEMENT (“Amendment”),
dated as of November 6, 2007 (“Amendment Effective Date”), is between Medarex, Inc.,
a New Jersey corporation, and Continental Stock Transfer & Trust
Company.

 

RECITALS

 

                A.  The Company
previously entered into a Rights Agreement, dated as of May 23, 2001, with
Continental Stock Transfer & Trust Company, as Rights Agent (the “Rights
Agreement”).

 

                B.  The Company
now wishes to amend the Rights Agreement as set forth herein.

 

AGREEMENT

 

                Accordingly, in consideration of the premises and the
mutual agreements herein set forth, the Rights Agreement is hereby amended as
of the Amendment Effective Date as follows:

 

1.               The definition of “Acquiring Person” in Section 1(a) of
the Rights Agreement is amended and restated to read in its entirety as
follows:

 

                (a)           “Acquiring Person” shall mean any
Person who or which, together with all Affiliates and Associates of such
Person, shall be the Beneficial Owner of twenty percent (20%) or more of the
shares of Common Stock then outstanding, but shall not include (i) the
Company, (ii) any Subsidiary of the Company, (iii) any employee
benefit plan of the Company, or of any Subsidiary of the Company, or any Person
or entity organized, appointed or established by the Company for or pursuant to
the terms of any such plan, or (iv) any Person, together with all
Affiliates and Associates of such Person, who or which would be an Acquiring
Person solely by reason of being the Beneficial Owner of shares of Common
Stock, the Beneficial Ownership of which was acquired by such Person pursuant
to any action or transaction or series of related actions or transactions
approved by the Board of Directors before such Person otherwise became an
Acquiring Person;  provided, however, that no Person shall become an “Acquiring
Person”:  (1) as the result of an
acquisition of shares of Common Stock by the Company which, by reducing the
number of shares of Common Stock issued and outstanding, increases the proportionate
number of shares of Common Stock beneficially owned by such Person to 20% or
more of the shares of Common Stock then outstanding (provided that if a Person
shall become the Beneficial Owner of 20% or more of the shares of Common Stock
then outstanding as the 

 

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result of an acquisition of shares of Common Stock by
the Company and shall, following written notice from, or public disclosure by,
the Company of such acquisition of shares by the Company, become the Beneficial
Owner of any additional shares of Common Stock without the prior written
consent of the Company and shall then Beneficially Own 20% or more of the
shares of Common Stock then outstanding, then such Person shall be deemed to be
an “Acquiring Person”); (2) as the result of the acquisition of shares of
Common Stock directly from the Company (provided that if a Person shall become
the Beneficial Owner of 20% or more of the shares of Common Stock then
outstanding as the result of the acquisition of shares of Common Stock directly
from the Company and shall, after that date, become the Beneficial Owner of any
additional shares of Common Stock without the prior written consent of the
Company and shall then Beneficially Own 20% or more of the shares of Common
Stock then outstanding, then such Person shall be deemed to be an “Acquiring
Person”); or (3) if the Board of Directors determines in good faith that a
Person who would otherwise be an “Acquiring Person,” as defined pursuant to the
foregoing provisions of this Section 1(a), has inadvertently become the
Beneficial Owner of 20% or more of the shares of Common Stock then outstanding,
and such Person divests, as promptly as practicable (as determined in good
faith by the Board of Directors), following receipt of written notice from the
Company of such event, of Beneficial Ownership of a sufficient number of shares
of Common Stock so that such Person would no longer be an Acquiring Person, as
defined pursuant to the foregoing provisions of this Section 1(a), then
such Person shall not be deemed to be an “Acquiring Person” for any purposes of
this Agreement, provided that if such Person shall again become the Beneficial
Owner of 20% or more of the shares of Common Stock then outstanding, such Person
shall be deemed an “Acquiring Person,” subject to the exceptions set forth in
this Section 1(a).

 

2.               A new defined term “Interested
Stockholder” is added to the Rights Agreement as Section 1(r), to read in
its entirety as follows:

 

                (r)            “Interested Stockholder” shall mean
any Acquiring Person or any Affiliate or Associate of an Acquiring Person or
any other Person in which any such Acquiring Person, Affiliate or Associate has
an interest, or any other Person acting directly or indirectly on behalf of or
in concert with any such Acquiring Person, Affiliate or Associate.

 

3.               The definition of “Purchase Price”
previously set forth in Section 1(u) of the Rights Agreement is
renumbered as Section 1(v) and is amended and restated to read in its
entirety as follows:

 

                (v)           “Purchase Price” shall have the
meaning set forth in Section 4(a) hereof.

 

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4.               Section 3(b) of the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                (b)           The Company will make available, as
promptly as practicable following the Record Date, a copy of a summary of the
Rights, in substantially the form attached hereto as Exhibit C (the “Summary
of Rights”) to any holder of Rights who may so request from time to time prior to
the Expiration Date. With respect to certificates for the Common Stock
outstanding as of the Record Date, until the Distribution Date, the Rights will
be evidenced by such certificates for the Common Stock and the registered
holders of the Common Stock shall also be the registered holders of the
associated Rights.  Until the earlier of
the Distribution Date or the Expiration Date (as such term is defined in Section 7(a) hereof),
the transfer of any certificates representing shares of Common Stock in respect
of which Rights have been issued shall also constitute the transfer of the
Rights associated with such shares of Common Stock.

 

5.               Section 5(a) of the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                (a)           The Rights Certificates shall be
executed on behalf of the Company by its Chairman of the Board, its President
or any Vice President, either manually or by facsimile signature, and shall
have affixed thereto the Company’s seal or a facsimile thereof which shall be
attested by the Secretary or an Assistant Secretary of the Company, either
manually or by facsimile signature.  The
Rights Certificates shall be countersigned by the Rights Agent, either manually
or by facsimile signature, and shall not be valid for any purpose unless so
countersigned.  In case any officer of
the Company who shall have signed any of the Rights Certificates shall cease to
be such officer of the Company before countersignature by the Rights Agent and
issuance and delivery by the Company, such Rights Certificates, nevertheless,
may be countersigned by the Rights Agent and issued and delivered by the
Company with the same force and effect as though the person who signed such
Rights Certificates had not ceased to be such officer of the Company; and any Rights
Certificates may be signed on behalf of the Company by any person who, at the
actual date of the execution of such Rights Certificate, shall be a proper
officer of the Company to sign such Rights Certificate, although at the date of
the execution of this Agreement any such person was not such an officer.

 

6.               Section 11(d)(ii) of the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                (ii)           For the purpose of any computation
hereunder, the Current Market Price per share of Preferred Stock shall be
determined in the same manner as set forth above for the Common Stock in clause
(i) of this Section 11(d) (other than the last sentence
thereof).  If the Current Market Price
per share of Preferred Stock cannot be determined in the manner provided above
or if the Preferred Stock is not publicly held or listed or traded in a manner
described in clause (i) of 

 

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this Section 11(d), the Current Market Price per
share of Preferred Stock shall be conclusively deemed to be an amount equal to
one thousand (1000) (as such number may be appropriately adjusted for such
events as stock splits, stock dividends and recapitalizations with respect to
the Common Stock occurring after the date of this Agreement) multiplied by the
Current Market Price per share of the Common Stock.  If neither the Common Stock nor the Preferred
Stock is publicly held or so listed or traded, Current Market Price per share
of the Preferred Stock shall mean the fair value per share as determined in
good faith by the Board, whose determination shall be described in a statement
filed with the Rights Agent and shall be conclusive for all purposes.

 

7.               Section 11(o) of the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                (o)           The Company covenants and agrees
that, after the Distribution Date, it will not, except as permitted by Section 23
hereof, take (or permit any Subsidiary to take) any action if at the time such
action is taken it is reasonably foreseeable that such action will diminish
substantially or otherwise eliminate the benefits intended to be afforded by
the Rights.

 

8.               Section 13(a) of the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                (a)           In the event that, following the
Stock Acquisition Date, directly or indirectly, (x) the Company shall
consolidate with, or merge with and into, any Interested Stockholder, or if in
such merger or consolidation all holders of Common Stock are not treated alike,
any other Person (other than a Subsidiary of the Company in a transaction which
complies with Section 11(o) hereof), and the Company shall not be the
continuing or surviving corporation of such consolidation or merger, (y) any
Interested Stockholder, or if in such merger or consolidation all holders of
Common Stock are not treated alike, any other Person (other than a Subsidiary
of the Company in a transaction which complies with Section 11(o) hereof)
shall consolidate with, or merge with or into, the Company, and the Company
shall be the continuing or surviving corporation of such consolidation or
merger and, in connection with such consolidation or merger, all or part of the
outstanding shares of Common Stock shall be changed into or exchanged for stock
or other securities of any other Person or cash or any other property (other
than, in the case of either transaction described in (x) or (y), a merger
or consolidation that would result in all of the voting power represented by
the securities of the Company outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into
securities of the surviving entity) all of the voting power represented by the
securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation and the holders of such securities not
having changed as a result of such merger or consolidation), or (z) the
Company shall sell or otherwise transfer (or one or more of its Subsidiaries
shall sell or otherwise transfer), in one transaction or a series of related
transactions, assets, cash flow or 

 

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earning power aggregating more than fifty percent
(50%) of the assets, cash flow or earning power of the Company and its
Subsidiaries (taken as a whole) to any Interested Stockholder or Stockholders,
or if in such transaction all holders of Common Stock are not treated alike,
any other Person (other than the Company or any Subsidiary of the Company in
one or more transactions each of which complies with Section 11(o) hereof),
then, and in each such case (except as may be contemplated by Section 13(d) hereof),
proper provision shall be made so that: (i) each holder of a Right, except
as provided in Section 7(e) hereof, shall thereafter have the right
to receive, upon the exercise thereof at the then current Purchase Price in
accordance with the terms of this Agreement, such number of validly authorized
and issued, fully paid, non-assessable and freely tradable shares of Common
Stock of the Principal Party (as such term is hereinafter defined), not subject
to any liens, encumbrances, rights of first refusal or other adverse claims, as
shall be equal to the result obtained by (1) multiplying the then current
Purchase Price by the number of one one-thousandths of a share of Preferred
Stock for which a Right is exercisable immediately prior to the first
occurrence of a Section 13 Event (or, if a Section 11(a)(ii) Event
has occurred prior to the first occurrence of a Section 13 Event,
multiplying the number of such one one-thousandths of a share for which a Right
was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event
by the Purchase Price in effect immediately prior to such first occurrence),
and dividing that product (which, following the first occurrence of a Section 13
Event, shall be referred to as the “Purchase Price” for each Right and for all
purposes of this Agreement) by (2) fifty percent (50%) of the Current
Market Price (determined pursuant to Section 11(d)(i) hereof) per
share of the Common Stock of such Principal Party on the date of consummation
of such Section 13 Event; (ii) such Principal Party shall thereafter
be liable for, and shall assume, by virtue of such Section 13 Event, all
the obligations and duties of the Company pursuant to this Agreement; (iii) the
term “Company” shall thereafter be deemed to refer to such Principal Party, it
being specifically intended that the provisions of Section 11 hereof shall
apply only to such Principal Party following the first occurrence of a Section 13
Event; (iv) such Principal Party shall take such steps (including, but not
limited to, the reservation of a sufficient number of shares of its Common
Stock) in connection with the consummation of any such transaction as may be
necessary to assure that the provisions hereof shall thereafter be applicable,
as nearly as reasonably may be, in relation to its shares of Common Stock
thereafter deliverable upon the exercise of the Rights; and (v) the
provisions of Section 11(a)(ii) hereof shall be of no effect
following the first occurrence of any Section 13 Event.

 

9.               The sixth paragraph of the form of Rights
Certificate attached as Exhibit B to the Rights Agreement is amended and
restated to read in its entirety as follows:

 

                Subject
to the provisions of the Rights Agreement, the Rights evidenced by this
Certificate may be redeemed by the Company at its option at a redemption price
of $.001 per Right at any time prior to the earlier of the close of business on
(i) the tenth Business Day following the Stock Acquisition Date, and (ii) the
Final Expiration Date.  In addition,
under certain circumstances following the Stock 

 

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Acquisition Date, the Rights may be exchanged, in
whole or in part, for shares of the Common Stock, or shares of preferred stock
of the Company having essentially the same value or economic rights as such
shares.  Immediately upon the action of
the Board of Directors of the Company authorizing any such exchange, and
without any further action or any notice, the Rights (other than Rights which
are not subject to such exchange) will terminate and the Rights will only
enable holders to receive the shares issuable upon such exchange.

 

10.         The first paragraph of the Summary of
Rights to Purchase Preferred Stock attached as Exhibit C to the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                On
May 23, 2001, the Board of Directors of Medarex, Inc. (the “Company”)
declared a dividend distribution of one Right for each outstanding share of
Company Common Stock to stockholders of record at the close of business on July 6,
2001 (the “Record Date”).  Each Right
entitles the registered holder to purchase from the Company a unit consisting
of one one-thousandth of a share (a “Unit”) of Series A Junior
Participating Preferred Stock, par value $1 per share (the “Series A
Preferred Stock”) at a Purchase Price of one hundred and fifty dollars ($150)
per Unit, subject to adjustment.  The description
and terms of the Rights are set forth in a Rights Agreement (the “Rights
Agreement”) between the Company and Continental Stock Transfer & Trust
Company, as Rights Agent.

 

11.         The sixth paragraph of the Summary of
Rights to Purchase Preferred Stock attached as Exhibit C to the Rights
Agreement is amended and restated to read in its entirety as follows:

 

                For
example, at an exercise price of  one
hundred and fifty dollars ($150) per Right, each Right not owned by an
Acquiring Person (or by certain related parties) following an event set forth
in the preceding paragraph would entitle its holder to purchase three hundred
dollars ($300) worth of Common Stock (or other consideration, as noted above)
for one hundred and fifty dollars ($150). 
Assuming that the Common Stock had a per share value of thirty dollars
($30) at such time, the holder of each valid Right would be entitled to
purchase ten (10) shares of Common Stock for one hundred and fifty dollars
($150).

 

12.         Except as amended pursuant to this Amendment,
the Rights Agreement shall remain in force and effect in accordance with its
terms.

 

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IN WITNESS WHEREOF, the
parties to this Amendment have caused this Amendment to be duly executed, all
as of the day and year first above written.

 

 

	
  ATTEST:

  	
  MEDAREX, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ W. Bradford
  Middlekauff

  	
   

  	
  By:

  	
  /s/ Howard H. Pien

  
	
  W. Bradford
  Middlekauff, Secretary

  	
   

  	
   Howard H. Pien

  
	
   

  	
  Title:

  	
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
  Countersigned:

  	
   

  
	
   

  	
   

  
	
  CONTINENTAL STOCK
  TRANSFER & TRUST COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ William F.
  Seegraber

  	
   

  	
   

  
	
  Authorized
  Signature:William F. Seegraber

  	
   

  
	
   

  	
  Vice President

  	
   

  
						

 

7Exhibit 10.33

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (the
“Agreement”) is entered into this 16th
day of October, 2007 (the “Effective Date”),
between URSULA BARTELS (the “Executive”) and MEDAREX, INC. (the “Company”)
(collectively, the Executive and the Company shall be referred to as the “Parties”).  In consideration of the mutual promises and
agreements contained herein, the Parties agree as follows:

 

1.             PURPOSE.  The Company desires to avail itself of the
services of the Executive as its Senior Vice President, General Counsel and
Secretary, and the Executive desires to provide such services in accordance
with the terms of this Agreement; provided, however,
that the Executive will not assume duties as the Company’s General Counsel and
Secretary until the conclusion of a brief transition period, which is
anticipated to end on November 15, 2007. 
The Parties agree that the duties and obligations expected of the
Executive and of the Company are as set forth in this Agreement.

 

2.             EFFECTIVE DATE AND TERM.  This Agreement shall be effective, and its
term (the “Term”) shall commence as of
the Effective Date.  The Term shall
continue through and until December 31, 2008 (the “Initial
Term”), unless terminated sooner as provided by this Agreement
or extended by the Parties.  The Term
shall be automatically renewed for successive periods of one (1) year each
(each, a “Renewal Term”), unless
either Party gives to the other written notice of intent not to renew at least
ninety (90) days prior to the expiration of the Initial Term or any Renewal
Term.

 

3.             COMPENSATION.

 

 A.           Base Salary.  During the Term, the Company shall pay or
cause to be paid to the Executive, in bi-weekly installments, a salary of
$385,000  per annum or such greater amount (the “Base Salary”) as may from time to
time be determined by the Compensation and Organization Committee (the “Committee”) of the Board of
Directors of the Company (the “Board”).  The Base Salary shall be reviewed annually by
the Committee and, if appropriate, may be increased. Notwithstanding the
foregoing, no increase in Base Salary shall be paid to the Executive unless and
until approved by the Committee.

 

 B.           Annual Bonus Compensation.  The Executive may, at the Committee’s
discretion, be awarded incentive compensation, currently in the form of a cash
bonus for each fiscal year of the Company during the Executive’s employment,
under the Company’s compensation plans based upon performance.  As presently structured, if the targeted
level of performance is satisfied, the bonus amount, as determined by the
Committee from time to time in its sole discretion, will be equal to forty
percent (40%) of the Executive’s Base Salary for the year in which the
Executive satisfies the applicable bonus criteria.   There is no guaranteed minimum level of bonus
compensation, and the actual amount of bonus compensation, if any, will be
determined by the Committee, in its sole discretion.

 

 C.           Long-Term Incentive
Compensation.  The Executive  will be eligible to participate in the Company’s annual
awards to executives of long-term incentive compensation in the form and the
terms as determined by the Compensation Committee. These awards are
discretionary and are subject to review and adjustment based on the Executive’s
and the Company’s performance and the Company’s compensation policies that are
in place from time to time.  In
connection with the 

 

1

 

commencement of the
Executive’s employment with the Company, the Executive shall receive the following
grants of equity compensation:

 

(1)           Stock Options.  As soon as
practicable after commencement of the Executive’s employment with the Company
and in accordance with the Company’s Policy and Procedures for the Granting of
Stock Options and Other Equity-Based Incentives (the “Policy”),
the Executive shall be granted a non-qualified stock option for 200,000 shares
of the Company’s common stock with an exercise price per share equal to the
fair market value (as defined in the Policy) on the date of grant and with a
term of ten (10) years.  The stock
option will vest as to 50,000 shares each on the one-year, two-year, three-year
and four-year anniversaries of the start date of the Executive’s employment
with the Company, in each case, so long as the Executive remains employed by
the Company.

 

(2)           Restricted Shares.  As soon as
practicable after commencement of the Executive’s employment with the Company
and in accordance with the Company’s Policy, the Executive shall be granted
15,000 shares of restricted stock.  These
shares will vest in full on the three-year anniversary of the start date of the
Executive’s employment with the Company, so long as the Executive remains
employed by the Company.

 

 D.           Expense Reimbursement. The Company
shall reimburse the Executive in accordance with the Company’s reimbursement
policies in effect from time to time for all reasonable and customary business
expenses incurred during the Executive’s employment, provided that the
Executive must furnish to the Company reasonably adequate records and
documentary evidence of such expenses. 
In connection with the commencement of employment, the Executive shall
be provided with the following additional stipends and expense reimbursements:

 

(1)   Temporary Local Housing. 
For up to twelve (12) months following the Effective Date, the Company
shall pay the Executive a monthly stipend of $2,500 for the cost of temporary
housing and related expenses in the Princeton, New Jersey area (the “Monthly
Allowance”). At the end of the initial Term, provided the
Agreement is extended by the Parties, the Company shall continue to pay the
Executive the Monthly Allowance, which, in aggregate, together with the total
Monthly Allowance paid in the initial Term, shall not to exceed the value of
the Cost of Relocation defined in 3.D(2) of this Agreement, which is
estimated to be $165,000.

 

(2)           Cost of Relocation.  In connection
with the relocation of the Executive’s residence from Lafayette, California to
the Princeton, New Jersey area at any time during the first twenty-four (24)
months of her employment with the Company (subject to earlier termination of
the Term in accordance with the provisions of this Agreement), the Company
shall reimburse the Executive for (i) the reasonable cost of packing and
direct route transportation of household goods and automobiles, including any
necessary temporary storage; (ii) reasonable and customary closing costs
(including real estate commissions, legal fees and recording fees) incurred by
the Executive in the sale of her home in Lafayette, California); and (iii) reasonable
and customary closing costs (but not including mortgage points) incurred by the
Executive in the purchase of a residence in the Princeton, New Jersey area, to
the extent such costs do not exceed three percent (3%) of the purchase price of
such residence.

 

(3)           Relocation Reimbursement Tax Gross-Up. 
To the extent that any payment to or for the Executive’s account made by
the Company under (2) above results in the taxable 

 

2

 

income to the Executive under U.S. federal, state or
local law, the Executive shall be entitled to receive in cash a payment from
the Company of an amount that, on an after-tax basis (including all federal,
state and local income taxes), equals the amount of such income taxes payable
by the Executive with respect to such payment. 
Any determination required under the foregoing provision shall be made
conclusively by a national independent public accounting firm reasonably
acceptable to the Executive as may be designated by the Company.

 

 E.            Benefits.

 

(1)           Standard Benefits.  The Executive shall be
eligible to participate in such standard employee benefit programs (including
medical, dental, life and disability insurance) as the Company shall maintain
from time to time for the benefit of employees and other senior
executives.  The Executive may receive
such other and additional benefits as the Board may determine from time to time
in its sole discretion.

 

(2)           Vacation.  The Executive shall be entitled to four (4) weeks
paid vacation per annum, and such additional paid vacation time as the Board
may reasonably determine or is consistent with the Company’s vacation policy,
as it exists from time to time. Payment upon termination of the Executive’s
employment for unused vacation will be consistent with the Company’s vacation
policy, as it exists from time to time.

 

(3)           Holidays. 
The Executive shall be entitled to all holidays generally provided to
other employees of the Company, currently eleven (11) paid holidays in each
calendar year.

 

(4)           Sick Leave/Disability. 
During any period in which the Executive is absent from work as a result
of personal injury, sickness or other disability, the Board may, by majority
vote, appoint an Acting Executive to serve for the duration of the Executive’s
absence.  The Company shall, while such
period continues or for one hundred eighty (180) days, whichever is a shorter
period, pay the Executive her full Base Salary. 
The Executive will also be entitled to additional disability benefits at
least equal to that which is generally provided to other executive employees
after the Effective Date.

 

(5)           Directors’ and Officers’ Liability
Insurance.  During the Term, the Company shall acquire
and pay for, or reimburse the Executive for, directors’ and officers’ liability
insurance for the benefit of the Executive in an amount at least equal to that
generally provided to other executive officers of the Company.

 

4.             DUTIES OF THE
EXECUTIVE.

 

 A.   Duties.  During the
Term, the Executive shall be Senior Vice President, General Counsel and
Secretary of the Company, shall perform such duties as the Company may
reasonably require and shall use her best efforts to carry into effect the
directions of the Chief Executive Officer of the Company. Notwithstanding the
foregoing, the Executive shall not assume the duties of General Counsel and
Secretary until the conclusion of a brief transition period, which is
anticipated to end on November 15, 2007.

 

 B.           Representation.  During the Term, the Executive shall well and
faithfully serve the Company and use her best efforts to promote the interests
of the Company.  The Executive shall at 

 

3

 

all times give the Company
the full benefit of her knowledge, expertise, technical skill and ingenuity in
the performance of her duties and exercise of her powers and authority as
Senior Vice President, General Counsel and Secretary.  In particular (but without limiting the generality
thereof), the Executive shall give to the Chief Executive Officer such
information regarding the affairs of the Company as he shall require and at all
times conform to the reasonable instructions or directions of the Chief
Executive Officer.

 

C.            Office Location; Time Devoted by
Executive.  During the
initial Term, the Executive is expected to spend not less than half of her time
in the Company’s office located in Princeton, New Jersey, with the remainder to
be spent in the Company’s office located in Milpitas, California.  In either office location, the Executive
agrees to devote substantially all her time and attention during business hours
and such additional time and attention as may reasonably be required to perform
her duties hereunder, and shall not engage in or perform duties for any other
person or entity which interferes with the performance of her duties
hereunder.  It shall not be a violation
of this Agreement for the Executive to (a) serve on corporate, civic or
charitable boards or committees, (b) deliver lectures, fulfill speaking
engagements or teach at educational institutions, (c) manage personal
investments, or (d) engage in activities permitted by the policies of the
Company or as specifically permitted by the Company, so long as such activities
do not significantly interfere with the full time performance of the Executive’s
responsibilities in accordance with this Agreement or result in a conflict of
interest with her duties hereunder which may be subject to review and approval
by the Nominating and Corporate Governance Committee of the Company.

 

5.             RESTRICTIONS ON THE
EXECUTIVE.

 

 A.           Proprietary Information and
Inventions Agreement.  The Executive
agrees to sign the Company’s standard proprietary information and inventions
agreement for employees, a copy of which is attached hereto as Exhibit A.

 

 B.           Non-Competition; Non-Solicitation. During the Term
and for twelve (12) months thereafter, or, if employment is terminated by
either party for any reason prior to the end of the Term, for twelve (12)
months following such termination, without the consent of the Nominating and
Corporate Governance Committee of the Board of Directors, the Executive may
not:

 

(1)           directly or indirectly
engage in, or have any interest in, any business (whether as employee, officer,
director, agent, a five percent (5%) or greater security holder, creditor,
consultant, or otherwise) that competes directly with the business of the
Company (as such business may exist during the Term);

 

(2)           whether for himself or on
behalf of any other person or company, directly or indirectly, solicit orders
for the creation of antibodies in transgenic animals from any person or
company, who at any time within the year prior to the end of the Term was a
licensee, collaborator or customer of the Company;

 

(3)           directly or indirectly
induce or solicit any other employee of the Company to terminate his or her
employment with the Company for the purpose of 
joining another company in which the Executive has an interest (whether
as an employee, officer, director, agent, a five percent (5%) or greater
security holder, creditor, consultant, or otherwise); or

 

4

 

(4)           if a Change in Control of the Company occurs that was
not recommended to the Company’s shareholders for approval by the Incumbent
Board and the Executive’s employment is terminated without Cause or by the
Executive for Good Reason, the restrictions on future activities described
above in Sections 5.B(1) through 5.B(3) will lapse immediately upon
the Executive’s termination..

 

 C.           Breach.  The Executive acknowledges that there may be
circumstances in which her breach of any covenant set forth in this Section 5
could cause harm to the Company, which harm may not be compensable by monetary
damages alone and could potentially entitle the Company to injunctive
relief.  However, by acknowledging this
possibility, the Employee is not agreeing to waive her right to require the
Company to meet its evidentiary burdens as required by law in any cause of
action brought by the Company seeking such injunctive relief.

 

6.             TERMINATION AND SEVERANCE BENEFITS
IN CERTAIN EVENTS.

 

 A.           General.  The Executive may terminate her employment
hereunder at any time, with or without Good Reason, as defined below, upon
written notice to the Company. The Company may terminate the Executive’s
employment hereunder at any time, with or without Cause, as defined below, upon
written notice to the Executive.

 

 B.           Non-Renewal.  The provisions of this Section 6.B apply
if the Term is not renewed pursuant to the provisions of Section 2.

 

(1)           Subject to Section 6.B(2),
if the Company has given notice of non-renewal, the Company shall pay the
Executive her then existing Base Salary in the form of periodic installments on
the Company’s regular pay schedule, and continue Executive’s benefits
enumerated in Section 3.E(1) (to the extent permitted by the Company’s
insurance carriers and by the terms of the applicable plans) for one (1) year
commencing with the day following the final day of the Term; provided, however, that this obligation shall be mitigated
by earned income and benefits actually received by or for the account of the
Executive from alternative employment during such one (1) year
period.  In addition, notwithstanding any
provisions of the plan or stock option agreement pursuant to which any stock
options were granted, the Executive shall be entitled to exercise any of
Executive’s stock options vested as of the final day of the Term until eighteen
(18) months from the final day of the Term or the expiration of the stated
period of the option, whichever period is the shorter.

 

(2)           Payments in respect of Base
Salary pursuant to Section 6.B(1) shall be subject to the
distribution requirements of Section 409A(a)(2)(A) of the Internal
Revenue Code of 1986, as amended (the “Code”),
including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of
the Code that payment be delayed until six (6) months after the Executive’s
separation from service if the Executive is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such
separation from service.  The first
payment that is made following any such delay shall include all amounts that
would otherwise have been paid during the period of such delay, without
adjustment on account of such delay.

 

(3)           If the Executive has given
notice of non-renewal, all Company obligations to the Executive as to
compensation and benefits shall cease at the conclusion of the Term.

 

5

 

(4)           At the conclusion of the
Term, all Company obligations to the Executive as to compensation and benefits
shall cease except for those provided above.

 

 C.                                 Termination
for Cause by the Company.  This Agreement
and the Term may be terminated for Cause by the Company pursuant to the
provisions of this Section 6.C.  As
used herein, “Cause” shall mean any of the
following events:

 

(1)           Any willful misconduct in
the Executive’s performance of duties to the Company or any willful misconduct
independent of the Company that, in the latter case, has a significant adverse
impact upon the operations, business, affairs, reputation or valuation of the
Company;

 

(2)           The Executive’s conviction
of, or a plea of nolo contendere with respect to,
a felony, or the Executive’s commission of any act of fraud against the Company
or under federal or state securities laws;

 

(3)           Willful material
noncompliance by the Executive with any material written policy of the Company;

 

(4)           Any material breach by the
Executive of this Agreement that is not cured by the Executive within thirty
(30) days following written notice from the Company;

 

(5)           Any regulatory or judicial
order that results in a bar or loss of license to the Executive’s continued
performance of all or a substantial portion of the Executive’s duties
hereunder, or

 

(6)           Willful and continued
failure by the Executive to substantially perform the Executive’s duties as
Senior Vice President, General Counsel and Secretary (other than any failure
resulting from disability or illness or from termination by the Executive for
Good Reason).

 

For purposes of the
foregoing, no action or inaction shall be deemed to be “willful” unless it is
done or omitted to be done by the Executive directly and not by imputation.
Failure to perform the Executive’s duties with the Company during any period of
disability shall not constitute Cause. 
The Executive’s suspension with pay from her duties by the Board in good
faith for a period not exceeding thirty (30) days, while an investigation is
made as to the existence of Cause, shall not constitute Cause or give rise to
Good Reason.

 

If a majority of the members
of the Board (excluding the Executive if he is then a member of the Board)
determines that Cause exists for termination of the Executive’s employment,
written notice thereof shall be given to the Executive describing the state of
affairs or facts deemed by the Board to constitute such Cause.  The Executive shall have thirty (30) days
after receipt of such notice to cure the reason constituting Cause, and if he does
so, the Term shall not be terminated for the Cause specified in the
notice.  During such thirty (30) day
period, the Term shall continue, and the Executive shall continue to receive
her full Base Salary, expenses and benefits pursuant to this Agreement.  If such Cause is not cured to the Board’s
reasonable satisfaction within such thirty (30) day period, the Executive may
then be immediately terminated by a majority vote of the Board, excluding the
Executive if the Executive is then a member of the Board.

 

6

 

If the Term is terminated by
the Company for Cause, the Executive’s entire right to salary and benefits
hereunder (with the exception of salary and benefits accrued prior to
termination) shall cease upon such termination, but the provisions of Section 5.B
shall continue to apply for twelve (12) months following the conclusion of the
Term.

 

 D.                                 Termination
without Cause by the Company or for Good Reason by the Executive.

 

(1)                                 The Company
shall have the right to terminate the Term without Cause on forty-five (45)
days’ written notice to the Executive.

 

(2)                                 The Executive
shall have the right to terminate the Term for Good Reason.  As used herein, “Good
Reason” shall mean any of the following events that are not
consented to by the Executive and not cured by the Company within forty-five
(45) days following written notice:

 

(a)           A material diminution in the
Executive’s position or function, provided, however,
that a change in the Executive’s title or reporting relationships or the
appointment of an Acting Executive pursuant to Section 3.E(4) shall
not provide the basis for a termination with Good Reason;

 

(b)           A relocation of the
Executive’s business office to a location more than fifty (50) miles from
Milpitas, California, except for required travel by the Executive on the
Company’s business to an extent substantially consistent with the Executive’s
business travel obligations as of the Effective Date;

 

(c)           A material breach by the
Company of any provision of this Agreement or any other material agreement
between the Executive and the Company concerning the terms and conditions of
the Executive’s employment.

 

To be eligible for any
benefits under this Agreement pursuant to a termination for Good Reason, the
Executive shall be required to provide written notice to the Company of the
existence of any of the foregoing events within forty-five (45) days following
the initial occurrence of the event. 
Upon such notice, the Company shall have a period of forty-five (45)
days to remedy such event and not be required to provide benefits to the
Executive on account of such event. The Executive’s consent to any of the
foregoing events that would otherwise constitute Good Reason shall be
conclusively presumed if the Executive does not exercise her rights under the
first sentence of this Section 6.D(2) within forty-five (45) days
following the initial occurrence of the event.

 

(3)           Subject to Section 6.D(4),
if the Term is terminated pursuant to Section 6.D(1) or 6.D(2), the
Company shall pay the Executive her then existing Base Salary in the form of
periodic installments and continue the benefits described in Section 3.E(1) (to
the extent permitted by the Company’s insurance carriers and by the terms of
the applicable plans) for two (2) years following the conclusion of the
Term.  All of the Executive’s outstanding
stock options and other equity awards shall become fully and immediately vested
to the extent not already so provided under the terms of such awards.  In addition, notwithstanding any provisions
of the plan or stock option agreement pursuant to which any outstanding stock
options were granted, the Executive shall be entitled to exercise such stock
options for eighteen (18) months following the conclusion of the Term or until
the expiration of the stated period of the option, whichever period is the
shorter.

 

7

 

(4)           Payments pursuant to Section 6.D(3) shall
be subject to the distribution requirements of Section 409A(a)(2)(A) of
the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of
the Code that payment be delayed until six (6) months after the Executive’s
separation from service if the Executive is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such
separation from service.  The first
payment that is made following any such delay shall include all amounts that
would otherwise have been paid during the period of such delay, without
adjustment on account of such delay.

 

E.             Resignation
by the Executive.

 

(1)                                 The Executive
shall have the right to terminate the Term, by way of resignation, upon ninety
(90) days’ written notice to the Company. 
A termination by the Executive for Good Reason pursuant to Section 6.D(2) shall
not be considered a resignation pursuant to this Section 6.E(1).

 

(2)                                 If the Term is
terminated pursuant to Section 6.E(1), the Executive’s entire right to
salary and benefits hereunder shall cease at the effective date of the termination
of the Term, but the provisions of Section 5.B shall continue to apply for
twelve (12) months following the conclusion of the Term.

 

F.             Termination
Upon Change in Control.

 

(1)                                 For the
purposes of this Agreement, a “Change in Control”
shall mean any of the following events:

 

(a)           An acquisition (other than
directly from the Company) of any voting securities of the Company (the “Voting Securities”) other than in a
Non-Control Acquisition (as defined below) by any Person (as the term “Person” is used for purposes of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended, (the “1934 Act”)) which results in such
Person first attaining “Beneficial Ownership”
(within the meaning of Rule 13d-3 promulgated under the 1934 Act) of
fifty-one percent (51%) or more of the combined voting power of the Company’s
then outstanding Voting Securities.  For
purposes of the foregoing, a “Non-Control Acquisition”
shall mean an acquisition by (i) an employee benefit plan (or a trust
forming a part thereof) maintained by (x) the Company or (y) any
corporation or other Person of which a majority of its voting power or its
equity securities or equity interest is owned directly or indirectly by the
Company (a “Subsidiary”), or (ii) the
Company or any Subsidiary.

 

(b)           The individuals who, as of
the date of this Agreement, were members of the Board (the “Incumbent
Board”) cease for any reason to constitute at least 66 2/3% of
the Board; provided, however, that if the election,
or a nomination for election by the Company’s shareholders, of any new director
was approved by a vote of at least 66 2/3% of the Incumbent Board, such new
director shall be considered as a member of the Incumbent Board; provided further, however, that no individual shall be
considered a member of the Incumbent Board if such individual initially assumed
office as a result of either an actual or threatened “Election
Contest” (as described in Rule 14a-11 promulgated under the
1934 Act) or other actual or threatened solicitation of the proxies or consents
by or on behalf of a Person other than the Board (a “Proxy
Contest”) including by reason of any agreement intended to avoid
or settle any Election Contest or Proxy Contest; or

 

8

 

(c)           The consummation of a
transaction approved by the Company’s shareholders and involving:  (1) a merger, consolidation or
reorganization in which the Company is a constituent corporation, unless (i) the
shareholders of the Company, immediately 
before such merger, consolidation or reorganization, own, directly or
indirectly immediately following such merger, consolidation or reorganization,
at least sixty-six and two-thirds percent (66-2/3%) of the combined voting
power of the outstanding voting securities of the corporation resulting from
such merger, consolidation or reorganization (the “Surviving
Corporation”) in substantially 
the same proportion as their ownership of the voting securities
immediately before such merger, consolidation or reorganization, (ii) the
individuals who were members of the Incumbent Board immediately prior to the
execution of the agreement providing for such merger, consolidation or
reorganization constitute at least 66 2/3% of the members of the board of
directors of the Surviving Corporation, and (iii) no Person other than (w) the
Company, (x) any Subsidiary, (y) any employee benefit plan (or any
trust forming a part thereof) maintained by the Company, the Surviving
Corporation or any Subsidiary, or (z) any Person who, immediately prior to
such merger, consolidation or reorganization had Beneficial Ownership of
fifty-one percent (51%) or more of the then outstanding Voting Securities, has
Beneficial Ownership of fifty-one percent (51%) or more of the combined voting
power of the Surviving Corporation’s then outstanding voting securities (a
transaction described in clauses (i) and (ii) shall herein be
referred to as a “Non-Control Transaction”); (2) a
complete liquidation or dissolution of the Company; or (3) an agreement
for the sale or other disposition of all or substantially all of the assets of
the Company to any Person (other than a transfer to a Subsidiary).

 

(d)           Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because the
level of Beneficial Ownership held by any Person (the “Subject
Person”) exceeds the designated percentage threshold of the
outstanding Voting Securities as a result of a repurchase or other acquisition
of Voting Securities by the Company reducing the number of shares outstanding,
provided that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of Voting Securities by the Company,
and after such share acquisition, the Subject Person becomes the Beneficial
Owner of any additional Voting Securities which, assuming the repurchase or
other acquisition had not occurred, increases the percentage of the then
outstanding Voting Securities Beneficially Owned by the Subject Person over the
designated percentage threshold, then a Change in Control shall occur.

 

(2)           If the Executive’s
employment with the Company or its successor is terminated by the Company or
its successor other than for Cause or by the Executive for Good Reason pursuant
to the procedures set forth in Section 6.D(2), in either case, within one (1) month
prior to or twenty-four (24) months following a Change in Control, the Company
or its successor shall provide the Executive with the following benefits in
lieu of those pursuant to Section 6.D(3):

 

(a)           Amount:  Subject to Section 6.F(2)(d), in
addition to all compensation for services rendered by the Executive to the
Company up to the date of termination, the Company or its successor shall pay
to the Executive in a lump sum an amount equal to the sum of (i) twenty-four
(24) times the Executive’s monthly Base Salary then in effect, plus (ii) two
(2) times the greater of (x) the Executive’s targeted level of bonus
for the year during which the Executive’s termination occurs, but in no case
less than the target bonus set forth in Section 3.B, or (y) the bonus
actually paid to the Executive pursuant to Section 3.B  in
the year immediately preceding the year in which the Executive’s termination
occurs, plus (iii) an amount equal to the greater of (x) the
Executive’s targeted level of bonus for the year during which the Executive’s
termination occurs, but in no case less 

 

9

 

than the target bonus set
forth in Section 3.B, or (y) the bonus actually paid to the Executive
pursuant to Section 3.B in the year immediately preceding the year in
which the Executive’s termination occurs; provided, however,
that the amount described in clause (iii) shall be prorated based upon a
fraction, the numerator of which is the number of days the Executive is
employed during the year in which termination occurs and the denominator of
which is three hundred sixty-five (365).

 

(b)           Benefits:  In addition to the payment described above,
the Company or its successor shall continue to provide to the Executive the
benefits described in Section 3.E(1) (to the extent permitted by the
Company’s insurance carriers and the terms of the applicable plans) for a
period of twenty-four (24) months after termination.

 

(c)           Acceleration of Equity Awards:  All of the Executive’s outstanding options
and other equity awards shall become fully and immediately vested to the extent
not already so provided under the terms of such awards.  In addition, notwithstanding any provisions
of the plan or stock option agreement pursuant to which any outstanding stock
options were granted, the Executive shall be entitled to exercise such options
for three (3) years from the date of termination of employment or until
the expiration of the stated period of the option, whichever period is the
shorter.

 

(d)           Section 409A:  Payments pursuant to Section 6.F(2)(a) shall
be subject to the distribution requirements of Section 409A(a)(2)(A) of
the Code, including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of
the Code that payment be delayed until six (6) months after the Executive’s
separation from service if the Executive is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such
separation from service.  The first
payment that is made following any such delay shall include all amounts that
would otherwise have been paid during the period of such delay, without
adjustment on account of such delay.

 

(e)           Gross-Up Payment: If any
payment, acceleration of stock options, restricted shares or other equity award
or other benefit made or provided to the Executive (collectively, the “Payment”) is subject to the excise
tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by the Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, hereinafter collectively
referred to as the “Excise Tax”), the Executive
will be entitled to receive, not later than the end of the Executive’s taxable
year following the taxable year in which the Excise Tax is paid, an additional
payment (a “Gross-Up Payment”) in an
amount such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payment. Notwithstanding the foregoing provisions of this Section 6.F(2)(e),
if it shall be determined that the Executive is entitled to a Gross-Up Payment
but the Payment does not exceed 110% of the greatest amount that could be paid
to the Executive without giving rise to any Excise Tax (the “Safe Harbor Amount”), then no
Gross-Up Payment shall be made to the Executive and the amounts payable under
this Agreement shall be reduced so that the Payment, in the aggregate, is
reduced to the Safe Harbor Amount. Any such reduction shall be applied first to
the payments that the Executive designates for that purpose.  Any determination required under this Section 6.F(2)(e) shall
be made conclusively by a national independent public accounting firm
reasonably acceptable to the Executive as may be designated by the Company.

 

10

 

G.            Termination
for Disability.

 

(1)           Should the Executive be
absent from work as a result of personal injury, sickness or other disability
for any continuous period of time exceeding one hundred eighty (180) days, the
Term may be terminated by the Company, upon written notice given to the
Executive, because of the Executive’s disability.

 

(2)           If the Term is terminated
pursuant to Section 6.G(1), then, following such termination, the
Executive shall continue to be entitled to the benefits described in Section 3.E(1) (to
the extent permitted by the Company’s insurance carriers and the terms of the
applicable plans) for one hundred eighty (180) days after the conclusion of the
Term.  In addition, notwithstanding any
provisions of the plan or stock option agreement pursuant to which any stock
options were granted, the Executive shall be entitled to exercise any of
Executive’s stock options that are vested as of the final day of the Term until
eighteen (18) months from the final day of the Term or until the expiration of
the stated period of the option, whichever period is the shorter.

 

H.            Termination
Upon Death.  If not
earlier terminated, the Term shall terminate upon the death of the Executive,
and the Company or its successor shall have no further obligation to the
Executive or her estate except to pay the Executive’s estate any Base Salary
accrued but remaining unpaid prior to her death, any expenses accrued but
remaining unreimbursed prior to her death, and any benefits accrued but
remaining unpaid prior to her death.  In
addition, the Company or its successor shall continue, for the benefit of
Executive’s dependents, the benefits described in Section 3.E(1) (to
the extent permitted by the Company’s insurance carriers and the terms of the
applicable plans) for two (2) years commencing with the day following
Executive’s death.  In addition,
notwithstanding any provisions of the plan or stock option agreement pursuant
to which any stock options were granted, any of Executive’s stock options that
are vested as of the final day of the Term shall remain exercisable until
eighteen (18) months from the final day of the Term or until the expiration of
the stated period of the option, whichever period is the shorter.

 

I.              COBRA.  If the Company continues health benefits for
Executive and her dependents pursuant to Sections 6.B(1), 6.D(3), 6.F(2)(b),
6.G(2) or 6.H, the Executive and her dependents, as applicable, shall be
required to elect to receive such continued coverage under the provisions of
the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and any analogous state
law, and the Company’s provision of such continued coverage for all purposes
shall be considered continuation coverage under COBRA and any analogous state
law.  If the Executive is required to
make an election pursuant to the preceding sentence, the Company will reimburse
the Executive for her COBRA and any analogous state law premiums incurred
during the periods set forth in the sections of this Agreement enumerated in
the preceding sentence, as applicable, unless and until Executive becomes a
full-time employee of another entity.

 

7.                                      MISCELLANEOUS.

 

A.            Notice.  Any notice to be given hereunder shall either
be delivered personally and/or sent by first class certified mail and regular
mail.  The address for service on the
Company shall be its registered office, and the address for service on the
Executive shall be her last known place of residence.  A notice shall be deemed to have been served
as follows:

 

11

 

(1)           if personally delivered, at
the time of delivery; and/or

 

(2)           if posted, at the expiration
of 48 hours (10 days if international) after the envelope containing the same was
delivered into the custody of the postal authorities.

 

B.                                    Disability.  The Company acknowledges its obligations
under state and federal law to provide reasonable accommodations to the
Executive in the event of a disability, and nothing in this Agreement is
intended to relieve the Company of that responsibility.

 

C.                                    Binding
Effect.  This Agreement shall be binding
upon and inure to the benefit of the Parties hereto and their respective heirs,
personal representatives, successors and assigns, provided that neither Party
shall assign any of its rights or privileges hereunder without the prior
written consent of the other Party except that the Company may assign its
rights hereunder to a successor in ownership of all or substantially all the
assets of the Company.

 

D.                                    Severability.  Should any part or provision of this
Agreement be held unenforceable by a court of competent jurisdiction, the
validity of the remaining parts or provisions shall not be affected by such
holding, unless such enforceability substantially impairs the benefit of the
remaining portions of the Agreement.

 

E.                                      Waiver.  No failure or delay on the part of either
Party in the exercise of any right or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right or
privilege preclude other or further exercise thereof or of any other right of
privilege.

 

F.                                      Captions.  The captions used in this Agreement are for
convenience only and are not to be used in interpreting the obligations of the
Parties under this Agreement.

 

G.                                    Choice
of Law.  The validity, construction and
performance of this Agreement and the transactions to which it relates shall be
governed by the laws of the State of New Jersey, without regard to choice of
laws provisions, and the Company and the Executive irrevocably consent to the
exclusive jurisdiction and venue of the federal and state courts located within
New Jersey, and courts with appellate jurisdiction therefrom, in connection
with any matter based upon or arising out of this Agreement.

 

H.                                    Entire
Agreement.  This
Agreement embodies the entire understanding of the Parties as it relates to the
subject matter contained herein and as such, supersedes any prior agreement or
understanding between the Parties relating to the terms of employment of the
Executive.  No amendment or modification
of this Agreement shall be valid or binding upon the Parties unless in writing
executed by the Parties.

 

12

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed as of the day and year first written
above.

 

	
   

  	
  MEDAREX,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
             /s/
  Howard H. Pien

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   Howard H. Pien

  
	
   

  	
   

  
	
   

  	
  Title:

  	
    President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
               /s/
  Ursula Bartels

  
	
   

  	
   

  
	
   

  	
  Name: 

  	
  Ursula Bartels

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
             October 16,
  2007

  
						

 

13

 

EXHIBIT A

 

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

 

MEDAREX, INC.

 

INVENTION AND CONFIDENTIAL
INFORMATION AGREEMENT

 

NEW
JERSEY FORM

 

In consideration of my employment or continued
employment by MEDAREX, INC. (the “Company”), and
the compensation now and hereafter paid to me, I, Ursula
Bartels,  hereby agree
as follows:

 

1.                                     NONDISCLOSURE.

 

1.1          Recognition of Company’s Rights; Nondisclosure.  At all times during my employment and
thereafter, I will hold in strictest confidence and will not disclose, use,
lecture upon or publish any of the Company’s Confidential Information (defined
below), except as such disclosure, use or publication may be required in
connection with my work for the Company, or unless an officer of the Company
expressly authorizes such in writing.  I
will obtain Company’s written approval before publishing or submitting for
publication any material (written, verbal, or otherwise) that relates to my
work at Company and/or incorporates any Confidential Information.  I hereby assign to the Company any rights I
may have or acquire in such Confidential Information and recognize that all
Confidential Information shall be the sole property of the Company and its
assigns.

 

1.2          Confidential Information.  The term “Confidential
Information” shall mean any and all confidential and/or proprietary
knowledge, data or information of the Company. 
By way of illustration but not
limitation, the term “Confidential Information”
includes (a) data, results, targets, ideas, processes, techniques,
formulae, know-how, improvements, discoveries, developments and designs,
tangible and intangible information relating to biological materials such as
cell lines, antibodies, tissue samples, proteins, nucleic acids and the like,
assays and assay components and media, procedures and formulations for
producing any such assays or assay components, and pre-clinical and clinical data,
results, developments or experiments (hereinafter  collectively referred to as “Inventions”), (b) plans
for research, development and new products, manufacturing, marketing and
selling information, business plans, budgets and unpublished financial statements,
licenses, prices and costs, suppliers, partners and customers, and (c) information
regarding the skills and compensation of other employees of the Company.

 

1.3          Third Party Information.  I understand, in addition, that the Company
has received and in the future will receive from third parties confidential or
proprietary information (“Third Party Information”)
subject to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes.  During the term of my employment and
thereafter, I will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than Company personnel who need to know such
information in connection with their work for the Company) or use, except in
connection with my work for the Company, Third Party Information unless
expressly authorized by an officer of the Company in writing.

 

1.4          No Improper Use of Information of Prior Employers and
Others.  During my
employment by the Company I will not improperly use or disclose any
confidential information or trade secrets, if any, of any former employer or
any other person to whom I have an obligation of confidentiality, and I will
not bring onto the premises of the Company any unpublished documents or any
property belonging to any former employer or any other person to whom I have an
obligation of confidentiality unless consented to in writing by that former
employer or person.  I will use in the
performance of my duties only information which is generally known and used by
persons with training and experience comparable to my own, which is common
knowledge in the industry or otherwise legally in the public domain, or which
is otherwise provided or developed by the Company.

 

2.                                     ASSIGNMENT OF INVENTIONS.

 

2.1          Proprietary Rights.  The term “Proprietary
Rights” shall mean all trade secret, patent, copyright, mask work
and other intellectual property rights throughout the world.

 

 

1

 

2.2          Prior Inventions.  Inventions, if any, patented or unpatented,
which I made prior to the commencement of my employment with the Company are
excluded from the scope of this Agreement. 
To preclude any possible uncertainty, I have set forth on Exhibit A (Previous Inventions) attached hereto a
complete list of all Inventions that I have, alone or jointly with others,
conceived, developed or reduced to practice or caused to be conceived,
developed or reduced to practice prior to the commencement of my employment
with the Company, that I consider to be my property or the property of third
parties and that I wish to have excluded from the scope of this Agreement
(collectively referred to as “Prior Inventions”).  If disclosure of any such Prior Invention
would cause me to violate any prior confidentiality agreement, I understand
that I am not to list such Prior Inventions in Exhibit A
but am only to disclose a cursory name for each such invention, a listing of
the party(ies) to whom it belongs and the fact that full disclosure as to such
inventions has not been made for that reason. A space is provided on Exhibit A for such purpose.  If no such disclosure is attached, I
represent that there are no Prior Inventions. 
If, in the course of my employment with the Company, I incorporate a
Prior Invention into a Company product, process or machine, the Company is
hereby granted and shall have a nonexclusive, royalty-free, irrevocable,
perpetual, worldwide license (with rights to sublicense through multiple tiers
of sublicensees) to make, have made, modify, use and sell such Prior
Invention.  Notwithstanding the
foregoing, I agree that I will not incorporate, or permit to be incorporated,
Prior Inventions in any Company Inventions without the Company’s prior written
consent.

 

2.3          Assignment of Inventions.  Subject to Sections 2.4, and 2.6, I hereby
assign and agree to assign in the future (when any such Inventions or
Proprietary Rights are first reduced to practice or first fixed in a tangible
medium, as applicable) to the Company all my right, title and interest in and
to any and all Inventions (and all Proprietary Rights with respect thereto)
whether or not patentable or registrable under copyright or similar statutes,
made or conceived or reduced to practice or learned by me, either alone or
jointly with others, during the period of my employment with the Company.  Inventions assigned to the Company, or to a
third party as directed by the Company pursuant to this Section 2, are
hereinafter referred to as “Company Inventions.”

 

2.4          Nonassignable Inventions. I recognize
that, in the event of a specifically applicable state law, regulation, rule, or
public policy (“Specific Inventions Law”), this
Agreement will not be deemed to require assignment of any invention which
qualifies fully for protection under a Specific Inventions Law by virtue of the
fact that any such invention was, for example, developed entirely on my own
time without using the Company’s equipment, supplies, facilities, or trade
secrets and neither related to the Company’s actual or anticipated business,
research or development, nor resulted from work performed by me for the
Company.  In the absence of a Specific
Inventions Law, the preceding sentence will not apply.

 

2.5          Obligation to Keep Company Informed.  During the period of my employment and for
six (6) months after termination of my employment with the Company, I will
promptly disclose to the Company fully and in writing all Inventions authored,
conceived or reduced to practice by me, either alone or jointly with others.  In addition, I will promptly disclose to the
Company all patent applications filed by me or on my behalf within a year after
termination of employment.  At the time
of each such disclosure, I will advise the Company in writing of any Inventions
that I believe fully qualify for protection under the provisions of a Specific
Inventions Law; and I will at that time provide to the Company in writing all
evidence necessary to substantiate that belief. 
The Company will keep in confidence and will not use for any purpose or
disclose to third parties without my consent any confidential information
disclosed in writing to the Company pursuant to this Agreement relating to
Inventions that qualify fully for protection under a Specific Inventions Law.  I will preserve the confidentiality of any
Invention that does not fully qualify for protection under a Specific
Inventions Law.  I agree that it shall be
conclusively presumed as against me that any Invention related to the Confidential
Information described by me in a patent, service mark, trademark, or copyright
application, disclosed by me in any manner to a third person, or created by me
or any person with whom I have any business, financial or confidential
relationship, within one (1) year after termination of my employment with
the Company, was conceived or made by me during the period of my employment
with the Company and that such Invention is the sole property of the Company.

 

2.6          Government or Third Party.  I also agree to assign all my right, title
and interest in and to any particular Company Invention to a third party,
including without limitation the United States, as directed in writing by the
Company.

 

2.7          Works for Hire.  I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are “works made
for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101).

 

2.8          Enforcement of Proprietary Rights.  I will assist the Company in every proper way
to obtain, and 

 

2

 

from time to time enforce, United States and foreign
Proprietary Rights relating to Company Inventions in any and all
countries.  To that end I will execute,
verify and deliver such documents and perform such other acts (including
appearances as a witness) as the Company may reasonably request for use in
applying for, obtaining, perfecting, evidencing, sustaining and enforcing such
Proprietary Rights and the assignment thereof. 
In addition, I will execute, verify and deliver assignments of such
Proprietary Rights to the Company or its designee.  My obligation to assist the Company with
respect to Proprietary Rights relating to such Company Inventions in any and
all countries shall continue beyond the termination of my employment, but the
Company shall compensate me at a reasonable rate after such termination of my
employment for the time actually spent by me at the Company’s request on such
assistance.

 

In the event the Company is unable for any reason,
after reasonable effort, to secure my signature on any document needed in
connection with the actions specified in the preceding paragraph, I hereby
irrevocably designate and appoint the Company and its duly authorized officers
and agents as my agent and attorney in fact, which appointment is coupled with
an interest, to act for and in my behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes
of the preceding paragraph with the same legal force and effect as if executed
by me.  I hereby waive and quitclaim to
the Company any and all claims, of any nature whatsoever, which I now or may
hereafter have for infringement of any Proprietary Rights assigned hereunder to
the Company.

 

3.             RECORDS.  I agree to keep and maintain adequate and
current records (in the form of notes, sketches, drawings and in any other form
that may be required by the Company) of all Confidential Information developed
by me and all Inventions made by me during the period of my employment at the
Company, which records shall be available to and remain the sole property of
the Company at all times.

 

4.             ADDITIONAL ACTIVITIES. 
I agree that during the period of my employment by the
Company I will not, without the Company’s express written consent, engage in
any employment or business activity which is competitive with, or would
otherwise conflict with, my employment by the Company.  I agree further that for the period of my
employment by the Company and for one (l) year after the date of
termination of my employment by the Company I will not, either directly or
through others, solicit or attempt to solicit any employee, independent
contractor or consultant of the Company to terminate his or her relationship
with the Company in order to become an employee, consultant or independent
contractor to or for any other person or entity.

 

5.             NO CONFLICTING OBLIGATION.  I represent that my performance of all the
terms of this Agreement and as an employee of the Company does not and will not
breach any agreement to keep in confidence information acquired by me in
confidence or in trust prior to my employment by the Company.  I have not entered into, and I agree I will
not enter into, any agreement either written or oral in conflict with the terms
of this Agreement.

 

6.             RETURN OF COMPANY DOCUMENTS.  When I leave the employ of the Company and at
the Company’s earlier requests, I will deliver to the Company any and all
drawings, notes, memoranda, specifications, devices, formulas, records and
documents, together with all copies thereof, and any other material containing
or disclosing any Company Inventions, Third Party Information or Confidential
Information of the Company.  I further
agree that any property situated on the Company’s premises and owned by the
Company, including, without limitation, disks, computers, hard drives and other
storage media, filing cabinets, lockers or other work areas, is subject to
inspection by Company personnel at any time with or without notice.  Prior to leaving, I will cooperate with the
Company in completing and signing the Company’s exit interview documentation.

 

7.             LEGAL AND EQUITABLE REMEDIES.  Because my services are
personal and unique and because I may have access to and become acquainted with
the Confidential Information of the Company, the Company shall have the right
to enforce this Agreement and any of its provisions by injunction, specific
performance or other equitable relief, without bond and without prejudice to
any other rights and remedies that the Company may have for a breach of this
Agreement.

 

8.             NOTICES.  Any notices required or permitted hereunder
shall be given to the appropriate party at the address specified below or at
such other address as the party shall specify in writing.  Such notice shall be deemed given upon
personal delivery to the appropriate address or if sent by certified or
registered mail, three (3) days after the date of mailing.

 

9.             NOTIFICATION OF NEW EMPLOYER.  In the event that I leave the employ of the
Company, I hereby consent to the notification of my new employer of my rights
and obligations under this Agreement.

 

10.                               GENERAL
PROVISIONS.

 

10.1        Governing Law; Consent to Personal Jurisdiction.  This Agreement will be governed by and
construed according to the laws of the State of New Jersey, 

 

3

 

as such laws are applied to agreements entered into
and to be performed entirely within New Jersey between New Jersey
residents.  I hereby expressly consent to
the personal jurisdiction of the state and federal courts located in Mercer
County, New Jersey for any lawsuit filed there against me by Company arising
from or related to this Agreement.

 

10.2        Severability.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
If moreover, any one or more of the provisions contained in this
Agreement shall for any reason be held by a court to be excessively broad as to
duration, geographical scope, activity or subject, it shall be construed by
limiting and reducing it, so as to be enforceable to the extent compatible with
the applicable law as it shall then appear.

 

10.3        Successors and Assigns.  This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.

 

10.4        Survival. The provisions of this Agreement
shall survive the termination of my employment and the assignment of this
Agreement by the Company to any successor in interest or other assignee.

 

10.5        At-Will Employment Relationship.  I agree and understand that nothing in this
Agreement shall confer any right with respect to continuation of employment by
the Company, nor shall it interfere in any way with my right or the Company’s
right to terminate my employment at any time, with or without cause or advance
notice.

 

10.6        Waiver. 
No waiver by the Company of any breach of this Agreement shall be a
waiver of any preceding or succeeding breach. 
No waiver by the Company of any right under this Agreement shall be
construed as a waiver of any other right. 
The Company shall not be required to give notice to enforce strict
adherence to all terms of this Agreement.

 

10.7        Entire Agreement.  The obligations pursuant to Sections 1 and 2
of this Agreement (with the exception of Section 2.7) shall apply to any
time during which I was previously employed, or am in the future employed, by
the Company as an employee or as a consultant if no other agreement governs
nondisclosure and assignment of inventions during such period.  This Agreement is the final, complete and
exclusive agreement of the parties with respect to the subject matter hereof
and supersedes and merges all prior discussions or written or oral agreements,
commitments or understandings between us. 
No modification of or amendment to this Agreement, nor any waiver of any
rights under this Agreement, will be effective unless in writing and signed by
the party to be charged.  Any subsequent
change or changes in my duties, salary or compensation will not affect the
validity or scope of this Agreement.

 

This Agreement shall be effective as of the first day
of my employment with the Company, namely: 
                        ,
2007.

 

I HAVE READ THIS AGREEMENT CAREFULLY AND
UNDERSTAND ITS TERMS.  I HAVE COMPLETELY
FILLED OUT EXHIBIT A TO THIS AGREEMENT.

 

	
  Dated:

  	
   

  	
   

  
	
   

   

  	
   

  
	
  (Signature)

  	
   

  
	
   

   

  	
   

  
	
  (Printed Name)

  	
   

  
	
   

  	
   

  
	
  ACCEPTED
  AND AGREED TO:

  	
   

  
	
   

  	
   

  
	
  MEDAREX,
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  707 State Road

  	
   

  
	
  Princeton, NJ 08540

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
						

 

4

 

EXHIBIT A

 

PREVIOUS INVENTIONS

 

	
  TO:

  	
  MEDAREX, INC.

  
	
   

  	
   

  
	
  FROM:

  	
                                                   

  
	
   

  	
   

  
	
  DATE:

  	
                         

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Previous Inventions

  
			

 

1.             Except as listed in Section 2 below,
the following is a complete list of all inventions or improvements relevant to
the subject matter of my employment by MEDAREX, INC. (the “Company”)
that have been made or conceived or first reduced to practice by me alone or
jointly with others prior to my engagement by the Company:

	
   

  	
   

  
	
  o

  	
  No inventions or
  improvements.

  
	
   

  	
   

  
	
  o

  	
  See below:

  
	
   

  	
   

  	
                                                                                                                                          

  
	
   

  	
   

  	
                                                                                                                                          

  
	
   

  	
   

  	
                                                                                                                                          

  
	
  o

  	
  Additional sheets
  attached.

  

 

2.             Due to a prior confidentiality agreement,
I cannot complete the disclosure under Section 1 above with respect to
inventions or improvements generally listed below, the proprietary rights and
duty of confidentiality with respect to which I owe to the following
party(ies):

 

	
  Invention or Improvement
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
        

  	
   

  	
           

  	
   

  	
                

  
	
   

  	
   

  	
   

  
	
  2.

  	
        

  	
   

  	
           

  	
   

  	
                

  
	
   

  	
   

  	
   

  
	
  3.

  	
        

  	
   

  	
           

  	
   

  	
                

  
	
   

  	
   

  	
   

  
	
  o

  	
  Additional sheets
  attached.

  	
   

  
										

 

5

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