Document:

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                                                                    EXHIBIT 10.1

                               ILEX ONCOLOGY, INC.

                      2000 EMPLOYEE STOCK COMPENSATION PLAN
                            (effective April 1, 2000)

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                               ILEX ONCOLOGY, INC.
                      2000 EMPLOYEE STOCK COMPENSATION PLAN

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            Section
                                                                                                            -------
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ARTICLE I - PLAN

                  Purpose...................................................................................... 1.1
                  Term of Plan................................................................................. 1.2

ARTICLE II - DEFINITIONS

                  Affiliate.................................................................................... 2.1
                  Award........................................................................................ 2.2
                  Award Agreement.............................................................................. 2.3
                  Board........................................................................................ 2.4
                  Change of Control............................................................................ 2.5
                  Code......................................................................................... 2.6
                  Committee.................................................................................... 2.7
                  Company...................................................................................... 2.8
                  Corporate Change............................................................................. 2.9
                  Disability.................................................................................. 2.10
                  Employee.................................................................................... 2.11
                  Exchange Act................................................................................ 2.12
                  Fair Market Value........................................................................... 2.13
                  Holder...................................................................................... 2.14
                  Incentive Option............................................................................ 2.15
                  Mature Shares............................................................................... 2.16
                  Non-Employee Director....................................................................... 2.17
                  Nonqualified Option......................................................................... 2.18
                  Option...................................................................................... 2.19
                  Option Agreement............................................................................ 2.20
                  Outside Director............................................................................ 2.21
                  Plan........................................................................................ 2.22
                  Restricted Stock............................................................................ 2.23
                  Restricted Stock Agreement.................................................................. 2.24
                  Restricted Stock Award...................................................................... 2.25
                  Retirement.................................................................................. 2.26
                  Stock....................................................................................... 2.27
                  Ten Percent Stockholder..................................................................... 2.28
                  Voting Stock................................................................................ 2.29
</TABLE>

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<TABLE>
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ARTICLE III - ELIGIBILITY

ARTICLE IV - GENERAL PROVISIONS RELATING TO AWARDS

                  Authority to Grant Awards.................................................................... 4.1
                  Dedicated Shares; Maximum Awards............................................................. 4.2
                  Non-Transferability.......................................................................... 4.3
                  Requirements of Law.......................................................................... 4.4
                  Recapitalization or Reorganization of the Company............................................ 4.5
                  Election Under Section 83(b) of the Code..................................................... 4.6

ARTICLE V - OPTIONS

                  Type of Option............................................................................... 5.1
                  Exercise Price............................................................................... 5.2
                  Duration of Options.......................................................................... 5.3
                  Amount Exercisable........................................................................... 5.4
                  Exercise of Options.......................................................................... 5.5
                  Exercise on Termination of Employment........................................................ 5.6
                  Substitution Options......................................................................... 5.7
                  No Rights as Stockholder..................................................................... 5.8

ARTICLE VI - RESTRICTED STOCK AWARDS

                  Restricted Stock Awards...................................................................... 6.1
                  Holder's Rights as Stockholder............................................................... 6.2

ARTICLE VII - ADMINISTRATION

ARTICLE VIII - AMENDMENT OR TERMINATION OF PLAN

ARTICLE IX - MISCELLANEOUS

                  No Establishment of a Trust Fund............................................................. 9.1
                  No Employment or Affiliation Obligation...................................................... 9.2
                  Forfeiture .................................................................................. 9.3
                  Tax Withholding.............................................................................. 9.4
                  Written Agreement............................................................................ 9.5
                  Indemnification of the Committee and the Board............................................... 9.6
                  Gender....................................................................................... 9.7
                  Headings..................................................................................... 9.8
                  Other Compensation Plans..................................................................... 9.9
                  Other Options or Awards..................................................................... 9.10
                  Governing Law............................................................................... 9.11
</TABLE>

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                                    ARTICLE I

                                      PLAN

                 1.1 PURPOSE. The Plan is intended to advance the best interests
of the Company and its stockholders by providing those persons who have
responsibility for the management and growth of the Company and its Affiliates
or other persons who provide services to the Company or any of its Affiliates
with additional incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue to
serve the Company or any of its Affiliates.

                 1.2 TERM OF PLAN. The Plan is effective April 1, 2000. If
within one year of that date it has not been approved by at least a majority
vote of stockholders voting in person or by proxy at a duly held stockholders'
meeting, or if the provisions of the corporate charter, by-laws or applicable
state law prescribes a greater degree of stockholder approval for this action,
the approval by the holders of that percentage, at a duly held meeting of
stockholders, then any options granted as Incentive Options shall instead be
treated as Nonqualified Options. No Award shall be granted under the Plan after
March 31, 2010. The Plan shall remain in effect until all Awards under the Plan
have been satisfied or expired.

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                                   ARTICLE II

                                   DEFINITIONS

                 The words and phrases defined in this Article shall have the
meaning set out in these definitions throughout the Plan, unless the context in
which any such word or phrase appears reasonably requires a broader, narrower,
or different meaning.

                 2.1 "AFFILIATE" means any parent corporation and any subsidiary
corporation. The term "parent corporation" means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, at the
time of the action or transaction, each of the corporations other than the
Company owns stock possessing 50 percent or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain. The
term "subsidiary corporation" means any corporation (other than the Company) in
an unbroken chain of corporations beginning with the Company if, at the time of
the action or transaction, each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50 percent or more of
the total combined voting power of all classes of stock in one of the other
corporations in the chain.

                 2.2 "AWARD" means any Incentive Option, Nonqualified Option, or
Restricted Stock Award granted under the Plan.

                 2.3 "AWARD AGREEMENT" has the meaning ascribed to it in Section
9.5.

                 2.4 "BOARD" means the board of directors of the Company.

                 2.5 "CHANGE OF CONTROL" means the occurrence of any of the
following after the date on which the applicable Award is granted:

                  (i) the consummation of:

                           (x) a merger, consolidation or reorganization of the
                  Company with or into any other person if as a result of such
                  merger, consolidation or reorganization, 50 percent or less of
                  the combined voting power of the then- outstanding securities
                  of the continuing or surviving entity immediately after such
                  merger, consolidation or reorganization are held in the
                  aggregate by the holders of Voting Stock immediately prior to
                  such merger, consolidation or reorganization;

                           (y) any sale, lease, exchange or other transfer of
                  all or substantially all the assets of the Company and its
                  consolidated subsidiaries to any other person if as a result
                  of such sale, lease, exchange or other transfer, 50 percent or
                  less of the combined voting power of the then-outstanding
                  securities of

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                  such other person immediately after such sale, lease, exchange
                  or other transfer are held in the aggregate by the holders of
                  Voting Stock immediately prior to such sale, lease, exchange
                  or other transfer; or

                           (z) the stockholders of the Company approve the
                  dissolution of the Company.

                           A transaction shall not constitute a Change in
                  Control if its sole purpose is to change the state of the
                  Company's incorporation or to create a holding company that
                  will be owned in substantially the same proportions by the
                  persons who held the Company's securities immediately before
                  such transaction.

                 2.6 "CODE" means the Internal Revenue Code of 1986, as amended.

                 2.7 "COMMITTEE" means a committee of at least two persons
appointed by the Board. The Committee shall be comprised solely of persons who
are both Non-Employee Directors and Outside Directors.

                 2.8 "COMPANY" means ILEX Oncology, Inc, a Delaware corporation.

                 2.9 "CORPORATE CHANGE" shall have the meaning ascribed to it in
Section 4.5.

                 2.10 "DISABILITY" means a medically determinable mental or
physical impairment which, in the opinion of a physician selected by the
Committee, shall prevent the Holder from engaging in any substantial gainful
activity and which can be expected to result in death or which has lasted or can
be expected to last for a continuous period of not less than 12 months and
which: (a) was not contracted, suffered or incurred while the Holder was engaged
in, or did not result from having engaged in, a felonious criminal enterprise;
(b) did not result from alcoholism or addiction to narcotics; (c) did not result
from an injury incurred while a member of the Armed Forces of the United States
for which the Holder receives a military pension; and (d) did not result from an
intentionally self-inflicted injury.

                 2.11 "EMPLOYEE" means a person employed by the Company or any
Affiliate.

                 2.12 "EXCHANGE ACT" means the Securities Exchange Act of 1934,
as amended.

                 2.13 "FAIR MARKET VALUE" of the Stock as of any date means (a)
the average of the high and low sale prices of the Stock on that date (or, if
there was no sale on such date, the next preceding date on which there was such
a sale) on the principal securities exchange on which the Stock is listed; or
(b) if the Stock is not listed on a securities exchange, an amount as determined
by the Committee in its sole discretion.

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                 2.14 "HOLDER" means a person who has been granted an Award, or
any person who is entitled to payment under an Award in accordance with the
terms of the Plan.

                 2.15 "INCENTIVE OPTION" means an Option granted under the Plan
which is designated as an "Incentive Option" and satisfies the requirements of
section 422 of the Code.

                 2.16 "MATURE SHARES" means shares of Stock that the Holder has
held for at least six months.

                 2.17 "NON-EMPLOYEE DIRECTOR" means a "non-employee director" as
defined in Rule 16b-3 of the Exchange Act.

                 2.18 "NONQUALIFIED OPTION" means an Option granted under the
Plan other than an Incentive Option.

                 2.19 "OPTION" means either an Incentive Option or a
Nonqualified Option granted under the Plan to purchase shares of Stock.

                 2.20 "OPTION AGREEMENT" means the written agreement which sets
out the terms of an Option.

                 2.21 "OUTSIDE DIRECTOR"means a member of the Board serving on
the Committee who is not a current Employee of the Company, is not a former
Employee of the Company who receives compensation for prior services (other than
benefits under a tax qualified retirement plan) during the taxable year, has not
been an officer of the Company and does not receive remuneration from the
Company either directly or indirectly, in any capacity other than as a Director.

                 2.22 "PLAN" means the ILEX Oncology, Inc. 2000 Employee Stock
Compensation Plan, as set forth in this document and as it may be amended from
time to time.

                 2.23 "RESTRICTED STOCK" means stock awarded or purchased under
the Plan pursuant to a Restricted Stock Agreement.

                 2.24 "RESTRICTED STOCK AGREEMENT" means the written agreement
which sets out the terms of a Restricted Stock Award.

                 2.25 "RESTRICTED STOCK AWARD" means an Award of Restricted
Stock.

                 2.26 "RETIREMENT" means the termination of an Employee's
employment relationship with the Company and all Affiliates after completing at
least five years of service and attaining the age of 65.

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                 2.27 "STOCK" means the common stock of the Company, no par
value or, in the event that the outstanding shares of common stock are later
changed into or exchanged for a different class of stock or securities of the
Company or another corporation, that other stock or security.

                 2.28 "TEN PERCENT STOCKHOLDER" means an individual who, at the
time the Option is granted, owns stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Company or of any
Affiliate. An individual shall be considered as owning the stock owned, directly
or indirectly, by or for his brothers and sisters (whether by the whole or half
blood), spouse, ancestors, and lineal descendants; and stock owned, directly or
indirectly, by or for a corporation, partnership, estate, or trust, shall be
considered as being owned proportionately by or for its stockholders, partners,
or beneficiaries.

                 2.29 "VOTING STOCK" means shares of capital stock of the
Company the holders of which are entitled to vote for the election of directors,
but excluding shares entitled to so vote only upon the occurrence of a
contingency unless that contingency shall have occurred.

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                                   ARTICLE III

                                   ELIGIBILITY

                 The individuals who shall be eligible to receive Incentive
Options shall be those key employees of the Company or any of its Affiliates as
the Committee shall determine from time to time. The individuals who shall be
eligible to receive Awards other than Incentive Options shall be those persons,
including employees, consultants, advisors, directors and other persons, who
have responsibility for the management and growth of the Company or any of its
Affiliates or other persons providing services to the Company or any of its
Affiliates as the Committee shall determine from time to time. The Board may
designate one or more individuals who shall not be eligible to receive any Award
under the Plan or under other similar plans of the Company.

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                                   ARTICLE IV

                      GENERAL PROVISIONS RELATING TO AWARDS

                 4.1 AUTHORITY TO GRANT AWARDS. The Committee may grant to those
Employees of the Company or any of its Affiliates and other eligible persons as
it shall from time to time determine, Awards under the terms and conditions of
the Plan. Subject only to any applicable limitations set out in the Plan, the
number of shares of Stock to be covered by any Award to be granted to any person
shall be as determined by the Committee.

                 4.2 DEDICATED SHARES; MAXIMUM AWARDS. The total number of
shares of Stock with respect to which Awards may be granted under the Plan is
3,000,000. The shares of Stock may be treasury shares or authorized but unissued
shares. The total number of shares of Stock with respect to which Incentive
Options may be granted under the Plan is 3,000,000 shares. The total number of
shares of Stock with respect to which Restricted Stock Awards may be granted
under the Plan is 3,000,000 shares. The maximum number of shares subject to
Options which may be issued to any person under the Plan during any calendar
year is 200,000 shares. The maximum number of shares subject to Restricted Stock
Awards which may be granted to any person under the Plan during any calendar
year is 200,000 shares. The number of shares stated in this Section 4.2 shall be
subject to adjustment in accordance with the provisions of Section 4.5.

                 If any outstanding Award expires or terminates for any reason
or any Award is surrendered or canceled, the shares of Stock allocable to the
unexercised portion of that Award may again be subject to an Award under the
Plan.

                 4.3 NON-TRANSFERABILITY. Incentive Options shall not be
transferable by the Employee other than by will or under the laws of descent and
distribution, and shall be exercisable, during the Employee's lifetime, only by
him. Except as specified in the applicable Award agreements or in domestic
relations court orders, other Awards shall not be transferable by the Holder
other than by will or under the laws of descent and distribution, and shall be
exercisable, during the Holder's lifetime, only by him. In the discretion of the
Committee, any attempt to transfer an Award other than under the terms of the
Plan and the applicable Award agreement may terminate the Award.

                 4.4 REQUIREMENTS OF LAW. The Company shall not be required to
sell or issue any Stock under any Award if issuing that Stock would constitute
or result in a violation by the Holder or the Company of any provision of any
law, statute, or regulation of any governmental authority. Specifically, in
connection with any applicable statute or regulation relating to the
registration of securities, upon exercise of any Option or pursuant to any other
Award, the Company shall not be required to issue any Stock unless the Committee
has received evidence satisfactory to it to the effect that the Holder of that
Award will not transfer the Stock except in accordance with applicable law,
including receipt of an opinion of counsel satisfactory to the Company to the
effect that any proposed transfer complies with applicable law. The
determination by the Committee on this matter shall be final, binding and
conclusive. The Company may, but shall in no event be obligated to, register any

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Stock covered by the Plan pursuant to applicable securities laws. In the event
the Stock issuable on exercise of an Option or pursuant to any other Award is
not registered, the Company may imprint on the certificate evidencing the Stock
any legend that counsel for the Company considers necessary or advisable to
comply with applicable law. The Company shall not be obligated to take any other
affirmative action in order to cause the exercise of an Option or vesting under
an Award, or the issuance of shares pursuant thereto, to comply with any law or
regulation of any governmental authority.

                 4.5 RECAPITALIZATION OR REORGANIZATION OF THE COMPANY.

                 The existence of outstanding Awards shall not affect in any way
the right or power of the Company or its stockholders to make or authorize any
or all adjustments, recapitalizations, reorganizations or other changes in the
Company's capital structure or its business, or any merger or consolidation of
the Company, or any issue of bonds, debentures, preferred or prior preference
stock ahead of or affecting the Stock or its rights, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

                 If the Company shall effect a subdivision or consolidation of
shares or other capital readjustment, the payment of a stock dividend, or other
increase or reduction of the number of shares of the Stock outstanding, without
receiving compensation for it in money, services or property, then (a) the
number, class, and per share price of shares of Stock subject to outstanding
Awards under this Plan shall be appropriately adjusted in such a manner as to
entitle a Holder to receive upon exercise of an Award, for the same aggregate
cash consideration, the equivalent total number and class of shares he would
have received had he exercised his Award in full immediately prior to the event
requiring the adjustment; and (b) the number and class of shares of Stock then
reserved to be issued under the Plan shall be adjusted by substituting for the
total number and class of shares of Stock then reserved, that number and class
of shares of Stock that would have been received by the owner of an equal number
of outstanding shares of each class of Stock as the result of the event
requiring the adjustment. Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive.

                 If while unexercised Awards remain outstanding under the Plan
(i) the Company shall not be the surviving entity in any merger, consolidation
or other reorganization (or survives only as a subsidiary of an entity other
than an entity that was wholly-owned by the Company immediately prior to such
merger, consolidation or other reorganization), (ii) the Company sells, leases
or exchanges or agrees to sell, lease or exchange all or substantially all of
its assets to any other person or entity (other than an entity wholly-owned by
the Company), or (iii) the Company is to be dissolved and liquidated (each such
event is referred to herein as a "Corporate Change"), then (x) except as
otherwise provided in an Award Agreement or as a result of the Board of
Directors' effectuation of one or more of the alternatives described below,
there shall be no acceleration of the time at which any Award then outstanding
may be exercised, and (y) no later than ten days after the approval by the
stockholders of the Company of such Corporate Change, the Committee, acting in
its sole and

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absolute discretion without the consent or approval of any Holder, shall act to
effect one or more of the following alternatives, which may vary among
individual Holders and which may vary among Awards held by any individual
Holder:

                  (1) accelerate the time at which some or all of the Awards
         then outstanding may be exercised so that such Awards may be exercised
         in full for a limited period of time on or before a specified date
         (before or after such Corporate Change) fixed by the Committee, after
         which specified date all such Awards that remain unexercised and all
         rights of Holders thereunder shall terminate,

                  (2) require the mandatory surrender to the Company by all or
         selected Holders of some or all of the then outstanding Awards held by
         such Holders (irrespective of whether such Awards are then exercisable
         under the provisions of this Plan or the Award Agreements evidencing
         such Awards) as of a date, before or after such Corporate Change,
         specified by the Committee, in which event the Committee shall
         thereupon cancel such Awards and the Company shall pay to each such
         Holder an amount of cash per share equal to the excess, if any, of the
         per share price offered to stockholders of the Company in connection
         with such Corporate Change over the exercise price(s) under such Awards
         for such shares,

                  (3) with respect to all or selected Holders, have some or all
         of their then outstanding Awards (whether vested or unvested) assumed
         or have a new Award substituted for some or all of their then
         outstanding Awards (whether vested or unvested) by an entity which is a
         party to the transaction resulting in such Corporate Change,

                  (4) provide that the number and class of shares of Stock
         covered by an Award (whether vested or unvested) theretofore granted
         shall be adjusted so that such Award shall thereafter cover the number
         and class of shares of stock or other securities or property
         (including, without limitation, cash) to which the Holder would have
         been entitled pursuant to the terms of the agreement and/or plan
         relating to such Corporate Change if, immediately prior to such
         Corporate Change, the Holder had been the holder of record of the
         number of shares of Stock then covered by such Award, or

                  (5) make any adjustments to Awards then outstanding as the
         Committee deems appropriate to reflect such Corporate Change (provided,
         however, that the Committee may determine in its sole and absolute
         discretion that no such adjustment is necessary).

                  In effecting one or more of alternatives (3), (4) or (5)
         above, and except as otherwise may be provided in an Award Agreement,
         the Committee, in its sole and

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         absolute discretion and without the consent or approval of any Holder,
         may accelerate the time at which some or all Awards then outstanding
         may be exercised.

         In the event of changes in the outstanding Stock by reason of
recapitalizations, reorganizations, mergers, consolidations, combinations,
exchanges or other relevant changes in capitalization occurring after the date
of the grant of any Award and not otherwise provided for by this Section 4.5,
any outstanding Awards and any agreements evidencing such Awards shall be
subject to adjustment by the Committee in its sole and absolute discretion as to
the number and price of shares of stock or other consideration subject to such
Awards. In the event of any such change in the outstanding Stock, the aggregate
number of shares available under this Plan may be appropriately adjusted by the
Committee, whose determination shall be conclusive.

         The issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for
labor or services either upon direct sale or upon the exercise of rights or
warrants to subscribe for them, or upon conversion of shares or obligations of
the Company convertible into shares or other securities, shall not affect, and
no adjustment by reason of such issuance shall be made with respect to, the
number, class, or price of shares of Stock then subject to outstanding Awards.

                 4.6 ELECTION UNDER SECTION 83(B) OF THE CODE. No Holder shall
exercise the election permitted under section 83(b) of the Code without written
approval of the Committee. Any Holder doing so may, in the discretion of the
Committee, forfeit any or all Awards issued to him under the Plan.

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                                    ARTICLE V

                                     OPTIONS

                 5.1 TYPE OF OPTION. The Committee shall specify in an Option
Agreement whether a given Option is an Incentive Option or a Nonqualified
Option. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value (determined as of the time an Incentive Option is
granted) of the Stock with respect to which incentive stock options first become
exercisable by an Employee during any calendar year (under the Plan and any
other incentive stock option plan(s) of the Company or any Affiliate) exceeds
$100,000.00, the Incentive Option shall be treated as a Nonqualified Option. In
making this determination, incentive stock options shall be taken into account
in the order in which they were granted.

                 5.2 EXERCISE PRICE. The price at which Stock may be purchased
under an Incentive Option shall not be less than 100 percent of the Fair Market
Value of the shares of Stock on the date the Option is granted. In its
discretion, the Committee may provide that the price at which shares of Stock
may be purchased under an Option shall be more than the minimum price specified
above. In the case of any Ten Percent Stockholder, the price at which shares of
Stock may be purchased under an Incentive Option shall not be less than 110
percent of the Fair Market Value of the Stock on the date the Incentive Option
is granted. The price at which Stock may be purchased under a Nonqualified
Option shall be specified in an Optionee's Option Agreement, and may be more or
less than 100% of the Fair Market Value of the shares of Stock on the date the
Option is granted.

                 5.3 DURATION OF OPTIONS. The Option Agreement shall specify the
term of the Option; provided that no Option shall be exercisable after the
expiration of ten years from the date the Option is granted. In the case of a
Ten Percent Stockholder, no Incentive Option shall be exercisable after the
expiration of five years from the date the Incentive Option is granted.

                 5.4 AMOUNT EXERCISABLE. Each Option may be exercised at the
time, in the manner and subject to the conditions the Committee specifies in the
Option Agreement in its sole discretion. Unless the Option Agreement expressly
specifies otherwise, an Option shall not continue to vest after the Optionee's
severance of employment or affiliation relationship with the Company and all
Affiliates for any reason. If specified in the Option Agreement, an Option will
be exercisable in full upon the occurrence of a Change of Control. Otherwise, a
Change of Control shall not effect the exercisability of the Option.

                 5.5 EXERCISE OF OPTIONS. Each Option shall be exercised by the
delivery of notice to the Committee setting forth the number of shares of Stock
with respect to which the Option is to be exercised, together with cash,
certified check, bank draft, or postal or express money order payable to the
order of the Company for an amount equal to the exercise price under the Option,
and/or any other form of payment which is acceptable to the Committee, and
specifying the address to which the certificates for the shares are to be
mailed. Such notice to the Committee shall either be by written notice, or if
permitted by the Committee and communicated to the Holder, communicated

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electronically. As promptly as practicable after receipt of appropriate
notification and payment, the Company shall deliver to the Holder certificates
for the number of shares with respect to which the Option has been exercised,
issued in the Holder's name.

                 The Committee may, in its sole discretion, permit a Holder to
elect to pay the exercise price upon exercise of an Option by authorizing a
third-party broker to sell all or a portion of the shares of Stock acquired upon
exercise of the Option and remit to the Company a sufficient portion of the sale
proceeds to pay the exercise price and any applicable tax withholding resulting
from such exercise.

                 An Option may not be exercised for a fraction of a share of
Stock.

                 5.6 EXERCISE ON TERMINATION OF EMPLOYMENT.

                 (a) Termination of Employment Other Than As a Result of
Retirement, Death or Disability. Unless it is expressly provided otherwise in
the Option Agreement, an Option shall terminate one day less than three months
after the severance of employment or affiliation relationship between the Holder
and the Company and all Affiliates for any reason, with or without cause, other
than Retirement, death or Disability. Whether authorized leave of absence or
absence on military or government service shall constitute severance of the
employment of an Employee shall be determined by the Committee at that time.

                 (b) Retirement. Unless it is expressly provided otherwise in
the Option Agreement, an Option shall terminate one day less than one year after
the Retirement of the Holder.

                 (c) Death. After the death of the Holder, his executors,
administrators or any persons to whom his Option may be transferred by will or
by the laws of descent and distribution shall have the right, at any time prior
to the earlier of the Option's expiration or one day less than one year after
the death of the Holder, to exercise it, to the extent to which he was entitled
to exercise it immediately prior to his death, unless it is expressly provided
otherwise in the Option Agreement.

                 (d) Disability. If, before the expiration of an Option, the
Holder shall be severed from the employ of or affiliation with the Company and
all Affiliates due to Disability, the Option shall terminate on the earlier of
the Option's expiration date or one day less than one year after the date of his
severance due to Disability, unless it is expressly provided otherwise in the
Option Agreement. In the event that the Holder shall be severed from the employ
of or affiliation with the Company and all Affiliates for Disability, the Holder
shall have the right prior to the termination of the Option to exercise the
Option, to the extent to which he was entitled to exercise it immediately prior
to his severance of employment or affiliation due to Disability, unless it is
expressly provided otherwise in the Option Agreement.

                 (e) Employment With an Entity in a Section 424(a) Transaction.
In determining the employment relationship between the Company and or any
Affiliate and an Employee,

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employment by a corporation issuing or assuming a stock option in a transaction
to which section 424(a) of the Code applies shall be considered employment by
the Company or an Affiliate.

                 5.7 SUBSTITUTION OPTIONS. Options may be granted under the Plan
from time to time in substitution for stock options held by employees of other
corporations who are about to become employees of or affiliated with the Company
or any Affiliate as the result of a merger or consolidation of the employing
corporation with the Company or any Affiliate, or the acquisition by the Company
or any Affiliate of the assets of the employing corporation, or the acquisition
by the Company or any Affiliate of stock of the employing corporation as the
result of which it becomes an Affiliate of the Company. The terms and conditions
of the substitute Options granted may vary from the terms and conditions set out
in the Plan to the extent the Committee, at the time of grant, may deem
appropriate to conform, in whole or in part, to the provisions of the stock
options in substitution for which they are granted.

                 5.8 NO RIGHTS AS STOCKHOLDER. No Holder shall have any rights
as a stockholder with respect to Stock covered by his Option until the date a
stock certificate is issued for the Stock.

                                       13
<PAGE>   17

                                   ARTICLE VI

                             RESTRICTED STOCK AWARDS

                 6.1 RESTRICTED STOCK AWARDS. The Committee may make Awards of
Restricted Stock to eligible persons selected by it. The amount of, the vesting
and the transferability restrictions applicable to, any Restricted Stock Award
shall be determined by the Committee in its sole discretion. If the Committee
imposes vesting or transferability restrictions on a Holder's rights with
respect to shares of Restricted Stock, the Committee may issue such instructions
to the Company's stock transfer agent in connection therewith as it deems
appropriate. The Committee may also cause the certificate for shares issued
pursuant to a Restricted Stock Award to be imprinted with any legend which
counsel for the Company considers advisable with respect to the restrictions.

                 Each Restricted Stock Award shall be evidenced by a Restricted
Stock Award Agreement that contains any vesting, transferability restrictions
and other provisions not inconsistent with the Plan as the Committee may
specify.

                 6.2 HOLDER'S RIGHTS AS STOCKHOLDER.

                 (a) From the date a Restricted Stock Award is granted, the
Holder shall have the right to receive all cash dividends or other distributions
paid or made with respect to the shares of Stock subject to the Award.

                 (b) Commencing on the date of the transfer of shares of
Restricted Stock to a Holder on the books of the Company pursuant to an Award,
the Holder shall have the right to vote the shares subject to the Award.

                                       14
<PAGE>   18

                                   ARTICLE VII

                                 ADMINISTRATION

                  The Plan shall be administered by the Committee. All questions
of interpretation and application of the Plan and Awards shall be subject to the
determination of the Committee. A majority of the members of the Committee shall
constitute a quorum. All determinations of the Committee shall be made by a
majority of its members. Any decision or determination reduced to writing and
signed by a majority of the members shall be as effective as if it had been made
by a majority vote at a meeting properly called and held. In carrying out its
authority under the Plan, the Committee shall have full and final authority and
discretion, including but not limited to the following rights, powers and
authorities, to:

                  (a) determine the persons to whom and the time or times at
         which Awards will be made,

                  (b) determine the number of shares and the exercise price of
         Stock covered in each Award, subject to the terms of the Plan,

                  (c) determine the terms, provisions and conditions of each
         Award, which need not be identical,

                  (d) accelerate the time at which any outstanding Option may be
         exercised, or Restricted Stock Award will vest,

                  (e) define the effect, if any, on an Award of the death,
         disability, retirement, or termination of employment or affiliation
         relationship between the Holder and the Company and Affiliates,

                  (f) prescribe, amend and rescind rules and regulations
         relating to administration of the Plan, and

                  (g) make all other determinations and take all other actions
         deemed necessary, appropriate, or advisable for the proper
         administration of the Plan.

The actions of the Committee in exercising all of the rights, powers, and
authorities set out in this Article and all other Articles of the Plan, when
performed in good faith and in its sole judgment, shall be final, conclusive and
binding on all parties.

                                       15
<PAGE>   19

                                  ARTICLE VIII

                        AMENDMENT OR TERMINATION OF PLAN

                 The Board may amend, terminate or suspend the Plan at any time,
in its sole and absolute discretion. The Board shall have the power to make any
changes in the Plan and in the regulations and administrative provisions under
it or in any outstanding Incentive Option as in the opinion of counsel for the
Company may be necessary or appropriate from time to time to enable any
Incentive Option granted under the Plan to continue to qualify as an incentive
stock option or such other stock option as may be defined under the Code so as
to receive preferential federal income tax treatment.

                                       16
<PAGE>   20

                                   ARTICLE IX

                                  MISCELLANEOUS

                 9.1 NO ESTABLISHMENT OF A TRUST FUND. No property shall be set
aside nor shall a trust fund of any kind be established to secure the rights of
any Holder under the Plan. All Holders shall at all times rely solely upon the
general credit of the Company for the payment of any benefit which becomes
payable under the Plan.

                 9.2 NO EMPLOYMENT OR AFFILIATION OBLIGATION. The granting of
any Option or Award shall not constitute an employment contract, express or
implied, nor impose upon the Company or any Affiliate any obligation to employ
or continue to employ, or utilize the services of, any Holder. The right of the
Company or any Affiliate to terminate the employment of any person shall not be
diminished or affected by reason of the fact that an Option or Award has been
granted to him.

                 9.3 FORFEITURE. Notwithstanding any other provisions of the
Plan, if the Committee finds by a majority vote after full consideration of the
facts that the Holder, before or after termination of his employment or
affiliation relationship with the Company or an Affiliate for any reason (a)
committed or engaged in fraud, embezzlement, theft, commission of a felony, or
proven dishonesty in the course of his employment by the Company or an
Affiliate, which conduct damaged the Company or Affiliate, or disclosed trade
secrets of the Company or an Affiliate, or (b) participated, engaged in or had a
material, financial or other interest, whether as an employee, officer,
director, consultant, contractor, stockholder, owner, or otherwise, in any
commercial endeavor in the United States which is competitive with the business
of the Company or an Affiliate without the written consent of the Company or
Affiliate, the Holder shall forfeit all outstanding Options and all outstanding
Awards, and including all exercised Options and other situations pursuant to
which the Company has not yet delivered a stock certificate. Clause (b) shall
not be deemed to have been violated solely by reason of the Holder's ownership
of stock or securities of any publicly owned corporation, if that ownership does
not result in effective control of the corporation.

                 The decision of the Committee as to the cause of the Holder's
discharge, the damage done to the Company or an Affiliate, and the extent of the
Holder's competitive activity shall be final. No decision of the Committee,
however, shall affect the finality of the discharge of the Holder by the Company
or an Affiliate in any manner.

                 9.4 TAX WITHHOLDING. The Company or any Affiliate shall be
entitled to deduct from other compensation payable to each Holder any sums
required by federal, state, or local tax law to be withheld with respect to the
grant or exercise of an Option, or lapse of restrictions on Restricted Stock. In
the alternative, the Company may require the Holder of an Award to pay such sums
for taxes directly to the Company or any Affiliate in cash or by check within
ten days after the date of exercise or lapse of restrictions. In the discretion
of the Committee, a Holder may use shares of Stock received by the Holder upon
the exercise of a Nonqualified Option to satisfy any required tax

                                       17
<PAGE>   21

withholding obligations of the Company or an Affiliate that result from the
exercise. The Committee may, in its discretion, permit a Holder to satisfy any
tax withholding obligations arising upon the vesting of Restricted Stock by
delivering to the Holder of the Restricted Stock Award a reduced number of
shares of Stock in the manner specified herein. If permitted by the Committee
and acceptable to the Holder, at the time of vesting of shares of Restricted
Stock, the Company shall (i) calculate the amount of withholding tax due on the
assumption that all such vested shares of Restricted Stock are made available
for delivery, (ii) reduce the number of such shares made available for delivery
so that the Fair Market Value of the shares withheld on the vesting date
approximates the amount of tax the Company is obliged to withhold and (iii) in
lieu of the withheld shares, remit cash to the United States Treasury and other
applicable governmental authorities, on behalf of the Holder, in the amount of
the withholding tax due. The Company shall withhold only whole shares of Stock
to satisfy its withholding obligation. Where the Fair Market Value of the
withheld shares does not equal the Company's withholding tax obligation, the
Company shall withhold shares with a Fair Market Value slightly in excess of the
amount of its withholding obligation and shall remit the excess cash to the
Holder of the Restricted Stock Award with the shares of Stock made available for
delivery. The withheld shares of Restricted Stock not made available for
delivery by the Company shall be retained as treasury stock or will be cancelled
and, in either case, the Holder's right, title and interest in such Restricted
Stock shall terminate. The Company shall have no obligation upon exercise of any
Option or lapse of restrictions on Restricted Stock until the Company or an
Affiliate has received payment sufficient to cover all tax withholding amounts
due with respect to that exercise. Neither the Company nor any Affiliate shall
be obligated to advise a Holder of the existence of the tax or the amount which
it will be required to withhold.

                 9.5 WRITTEN AGREEMENT. Each Award shall be embodied in a
written agreement ("Award Agreement") which shall be subject to the terms and
conditions of the Plan and shall be accepted by the Holder either electronically
or by signature as established by the Committee and communicated to the Holder
from time to time. The agreement may contain any other provisions that the
Committee in its discretion shall deem advisable which are not inconsistent with
the terms of the Plan.

                 9.6 INDEMNIFICATION OF THE COMMITTEE AND THE BOARD. With
respect to administration of the Plan, the Company shall indemnify each present
and future member of the Committee and the Board against, and each member of the
Committee and the Board shall be entitled without further act on his part to
indemnity from the Company for, all expenses (including attorney's fees, the
amount of judgments and the amount of approved settlements made with a view to
the curtailment of costs of litigation, other than amounts paid to the Company
itself) reasonably incurred by him in connection with or arising out of any
action, suit, or proceeding in which he may be involved by reason of his being
or having been a member of the Committee and/or the Board, whether or not he
continues to be a member of the Committee and/or the Board at the time of
incurring the expenses -- including, without limitation, matters as to which he
shall be finally adjudged in any action, suit or proceeding to have been found
to have been negligent in the performance of his duty as a member of the
Committee or the Board. However, this indemnity shall not include any expenses
incurred by any member of the Committee and/or the Board in respect of matters
as to which he shall

                                       18
<PAGE>   22

be finally adjudged in any action, suit or proceeding to have been guilty of
gross negligence or willful misconduct in the performance of his duty as a
member of the Committee and the Board. In addition, no right of indemnification
under the Plan shall be available to or enforceable by any member of the
Committee and the Board unless, within 60 days after institution of any action,
suit or proceeding, he shall have offered the Company, in writing, the
opportunity to handle and defend same at its own expense. This right of
indemnification shall inure to the benefit of the heirs, executors or
administrators of each member of the Committee and the Board and shall be in
addition to all other rights to which a member of the Committee and the Board
may be entitled as a matter of law, contract, or otherwise.

                 9.7 GENDER. If the context requires, words of one gender when
used in the Plan shall include the other and words used in the singular or
plural shall include the other.

                 9.8 HEADINGS. Headings of Articles and Sections are included
for convenience of reference only and do not constitute part of the Plan and
shall not be used in construing the terms of the Plan.

                 9.9 OTHER COMPENSATION PLANS. The adoption of the Plan shall
not affect any other stock option, incentive or other compensation or benefit
plans in effect for the Company or any Affiliate, nor shall the Plan preclude
the Company from establishing any other forms of incentive or other compensation
for employees of the Company or any Affiliate.

                 9.10 OTHER OPTIONS OR AWARDS. The grant of an Award shall not
confer upon the Holder the right to receive any future or other Awards under the
Plan, whether or not Awards may be granted to similarly situated Holders, or the
right to receive future Awards upon the same terms or conditions as previously
granted.

                 9.11 GOVERNING LAW. The provisions of the Plan shall be
construed, administered, and governed under the laws of the State of Texas.

                                       19<PAGE>   1
                                                                    EXHIBIT 10.2

                               ILEX ONCOLOGY, INC.

                          EMPLOYEE STOCK PURCHASE PLAN
                            (effective June 1, 2000)

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                            SECTION

<S>                                                                                                         <C>
ARTICLE I - PURPOSE, COMMITMENT AND INTENT

         Purpose................................................................................................1.1
         Term of Plan...........................................................................................1.2
         Share Commitment.......................................................................................1.3
         Intent.................................................................................................1.4
         Shareholder Approval...................................................................................1.5

ARTICLE II - DEFINITIONS

         Affiliate..............................................................................................2.1
         Beneficiary............................................................................................2.2
         Board of Directors.....................................................................................2.3
         Code...................................................................................................2.4
         Committee..............................................................................................2.5
         Company................................................................................................2.6
         Compensation...........................................................................................2.8
         Employee...............................................................................................2.8
         Employer...............................................................................................2.9
         Enrollment Date.......................................................................................2.10
         Exercise Date.........................................................................................2.11
         Fair Market Value or FMV..............................................................................2.12
         Offering Period.......................................................................................2.13
         Option................................................................................................2.14
         Option Price..........................................................................................2.15
         Participant...........................................................................................2.16
         Plan..................................................................................................2.17
         Purchase Period.......................................................................................2.18
         Shares................................................................................................2.19
         Stock.................................................................................................2.20

ARTICLE III - ELIGIBILITY

         General Requirements...................................................................................3.1
         Limitations Upon Participation.........................................................................3.2
</TABLE>

                                       -i-
<PAGE>   3

<TABLE>
<CAPTION>
                                                                                                            SECTION

<S>                                                                                                         <C>
ARTICLE IV - PARTICIPATION

         Grant of Option........................................................................................4.1
         Offering Period........................................................................................4.2
         Payroll Deduction......................................................................................4.3
         Payroll Deductions Continuing..........................................................................4.4
         Right to Stop and Adjust Payroll Deductions............................................................4.5
         Accounting for Funds...................................................................................4.6
         Employer's Use of Funds................................................................................4.7

ARTICLE V - IN SERVICE WITHDRAWAL, TERMINATION OF EMPLOYMENT,
RETIREMENT OR DEATH

         In Service Withdrawal .................................................................................5.1
         Termination of Employment..............................................................................5.2
         Retirement for Age or Disability.......................................................................5.3
         Death..................................................................................................5.4

ARTICLE VI - EXERCISE OF OPTION

         Purchase of Stock......................................................................................6.1
         Accounting for Stock...................................................................................6.2
         Issuance of Shares.....................................................................................6.3
         Restriction on Shares..................................................................................6.4

ARTICLE VII - ADMINISTRATION

         Appointment, Term of Service & Removal.................................................................7.1
         Powers.................................................................................................7.2
         Quorum and Majority Action.............................................................................7.3
         Standard of Judicial Review of Committee Actions.......................................................7.4

ARTICLE VIII - ADOPTION OF PLAN BY OTHER EMPLOYER

         Adoption Procedure.....................................................................................8.1
         No Joint Venture Implied...............................................................................8.2

ARTICLE IX - TERMINATION AND AMENDMENT OF THE PLAN

         Termination............................................................................................9.1
         Amendment..............................................................................................9.2
</TABLE>

                                      -ii-
<PAGE>   4

<TABLE>
<CAPTION>
                                                                                                            SECTION

<S>                                                                                                         <C>
ARTICLE X - MISCELLANEOUS

         Designation of Beneficiary............................................................................10.1
         Plan Not An Employment Contract.......................................................................10.2
         All Participants' Rights are Equal....................................................................10.3
         Options Granted Are Not Transferable..................................................................10.4
         Voting of Stock.......................................................................................10.5
         No Stockholder Rights.................................................................................10.6
         Governmental Regulations..............................................................................10.7
         Notices...............................................................................................10.8
         Indemnification of Committee..........................................................................10.9
         Tax Withholding......................................................................................10.10
         Gender and Number....................................................................................10.11
         Severability.........................................................................................10.12
         Governing Law; Parties to Legal Actions..............................................................10.13
</TABLE>

                                      -iii-
<PAGE>   5

                                    ARTICLE I

                         PURPOSE, COMMITMENT AND INTENT

         1.1 PURPOSE. The purpose of this Plan is to provide Employees of the
Company and its Affiliates which adopt the Plan with an opportunity to purchase
Stock of the Company through offerings of options at a discount and thus develop
a stronger incentive to work for the continued success of the Company and its
Affiliates. Therefore, this Plan is available to all Employees of every Employer
upon their fulfilling the eligibility requirements of Section 3.1. Any Affiliate
may adopt it with the approval of the Committee by fulfilling the requirements
of Section 8.1. This Plan is sponsored by the Company.

         1.2 TERM OF PLAN. The Plan is effective June 1, 2000. No Option shall
be granted after May 31, 2010. The Plan shall remain in effect until all Options
under the Plan have been satisfied or expired.

         1.3 SHARE COMMITMENT. The aggregate number of Shares authorized to be
sold pursuant to Options granted under this Plan is 250,000 Shares, subject to
adjustment as provided in this Section. Any Shares relating to Options that are
granted, but subsequently lapse, are canceled, or are otherwise not exercised by
the final date for exercise, shall be available for future grants of Options.

         In the event of any stock dividend, split-up, recapitalization, merger,
consolidation, combination or exchange of Shares, or the like, as a result of
which shares shall be issued in respect of the outstanding Shares, or the Shares
shall be changed into the same or a different number of the same or another
class of stock, the total number of Shares authorized to be committed to this
Plan, the number of Shares subject to each outstanding Option and the Option
Price applicable to each Option shall be appropriately adjusted by the
Committee.

         1.4 INTENT. It is the intention of the Company to have the Plan qualify
as an "employee stock purchase plan" under section 423 of the Code. Therefore,
the provisions of the Plan are to be construed to govern participation in a
manner consistent with the requirements of section 423 of the Code.

         1.5 SHAREHOLDER APPROVAL. To be effective, this Plan must be approved
by the stockholders of each Employer within 12 months before or after the Plan
is approved by the board of directors of each Employer. The approval of
stockholders must comply with all applicable provisions of the corporate
charter, bylaws and applicable laws of the jurisdiction prescribing the method
and degree of stockholder approval required for the issuance of corporate stock
or options.

                                       I-1
<PAGE>   6

                                   ARTICLE II

                                   DEFINITIONS

         The words and phrases defined in this Article shall have the meaning
set out in these definitions throughout this Plan, unless the context in which
any word or phrase appears reasonably requires a broader, narrower, or different
meaning.

         2.1 "AFFILIATE" means any parent corporation and any subsidiary
corporation. The term "parent corporation" means any corporation (other than the
Company) in an unbroken chain of corporations ending with the Company if, at the
time of the action or transaction, each of the corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain. The term
"subsidiary corporation" means any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company if, at the time of the
granting of the Option, each of the corporations other than the last corporation
in the unbroken chain owns stock possessing 50% or more of the total combined
voting power of all classes of stock in one of the other corporations in the
chain.

         2.2 "BENEFICIARY" means the person who is entitled to receive amounts
under the Plan upon the death of a Participant.

         2.3 "BOARD OF DIRECTORS" means the board of directors of the Company.

         2.4 "CODE" means the Internal Revenue Code of 1986, as amended from
time to time.

         2.5 "COMMITTEE" means the committee appointed by the Board of Directors
of the Company to administer the Plan which shall be comprised solely of members
of the Board of Directors who qualify as non-employee directors as defined in
Rule 16b-3(b)(3) of the Securities Exchange Act of 1934, as amended.

         2.6 "COMPANY" means ILEX ONCOLOGY, INC., a Delaware corporation.

         2.7 "COMPENSATION" means the Employee's wages from the Company as
defined in section 3401(a) of the Code for purposes of Federal income tax
withholding at the source, reduced by all of the following items (even if
includable in gross income): reimbursements or other expense allowances, income
from the exercise of a nonqualified stock option, income resulting from a
disqualifying disposition from an incentive stock option or from this Plan,
fringe benefits (cash and non-cash), moving expenses, deferred compensation, and
welfare benefits; and modified by including elective contributions under a
cafeteria plan described in section 125 of the Code and elective contributions
to any plan qualified under section 401(k) of the Code.

                                      II-1
<PAGE>   7

         2.8 "EMPLOYEE" means any person who is a common law employee of the
Company excluding only those whose customary employment with the Company is 20
hours or less per week.

         2.9 "EMPLOYER" means the Company and each Affiliate which has adopted
the Plan as provided in Section 8.1 of the Plan.

         2.10 "ENROLLMENT DATE" means the first day of each Offering Period.

         2.11 "EXERCISE DATE" means the last business day of the Purchase
Period.

         2.12 "FAIR MARKET VALUE" OR "FMV" of the Stock as of any date means the
average of the high and low sale prices of the Stock on that date (or if there
was no sale on a given date, the next preceding date on which there was a sale)
on the principal securities exchange on which the Stock is listed.

         2.13 "OFFERING PERIOD" means the twenty-four month period during which
an Option granted pursuant to the Plan may be exercised, commencing on the first
business day on or after July 1 and January 1 of each year and terminating on
the last business day in the periods ending twenty-four months later, provided
that the first Offering Period shall be a longer Offering Period of twenty-five
months, commencing on the first business on or after June 1, 2000 and ending
twenty- five months later on the last business day of the period ending June 30,
2002.

         2.14 "OPTION" means an option granted under this Plan to purchase
shares of Stock at the Option Price on the Exercise Date. Options shall not mean
either Incentive Options or Non-qualified Options granted under the ILEX
Oncology, Inc. 2000 Employee Stock Compensation Plan.

         2.15 "OPTION PRICE" means the price to be paid for each Share upon
exercise of an Option, which shall be the lesser of (a) 85% of the FMV of a
Share on the Enrollment Date or (b) 85% of the FMV of a Share on the Exercise
Date.

         2.16 "PARTICIPANT" means a person who is eligible to be granted an
Option under this Plan and who elects to have payroll deductions withheld under
the Plan for the purpose of exercising that Option on the Exercise Date.

         2.17 "PLAN" means the ILEX ONCOLOGY, INC. Employee Stock Purchase Plan,
as set out in this document and as it may be amended from time to time.

         2.18 "PURCHASE PERIOD" means the approximately six month period
commencing after one Exercise Date and ending on the next Exercise Date except
that the first Purchase Period of any Offering Period shall commence on the
Enrollment Date and end with the next Exercise Date, provided, however, that the
first Purchase Period of the first Offering Period under the Plan shall be
approximately seven months in duration.

         2.19 "SHARES" means shares of Stock.

         2.20 "STOCK" means the Company's common stock.

                                      II-2
<PAGE>   8

                                   ARTICLE III

                                   ELIGIBILITY

         3.1 GENERAL REQUIREMENTS. Each Employee is eligible to participate in
the Plan for a given Offering Period if he is an Employee on the Enrollment
Date, subject to the limitations imposed in Section 3.2.

         3.2 LIMITATIONS UPON PARTICIPATION. Any provision of this Plan to the
contrary notwithstanding, no Employee shall be granted an Option:

                  (a) if, immediately after the grant, the Employee would own,
         including all outstanding options which are still exercisable to
         purchase Stock, five percent (5%) or more of the total combined voting
         power or value of all classes of Stock of the Company or of any parent
         or subsidiary of the Company within the meaning of sections 423 and 424
         of the Code;

                  (b) which permits the Employee to purchase Stock under all
         employee stock purchase plans, as defined in section 423 of the Code,
         of the Company and all Affiliates at a rate which exceeds $25,000 in
         Fair Market Value of the Stock (determined at the time the Option is
         granted) for each calendar year in which the option granted to the
         Employee is outstanding at any time as provided in sections 423 and 424
         of the Code; or

                  (c) which permits the Employee rights to purchase Stock in
         excess of the number of Shares set by the Committee if it deems such a
         restriction to be appropriate.

                                      III-1
<PAGE>   9

                                   ARTICLE IV

                                  PARTICIPATION

         4.1 GRANT AND EXERCISE OF OPTION. Effective as of the Enrollment Date
of each Offering Period the Committee shall grant an Option to each Participant
participating in such Offering Period that shall be exercisable on each Exercise
Date during such Offering Period (at the applicable Option Price) only through
funds accumulated by the Employee through payroll deductions made prior to such
Exercise Date and retained in the Participant's Account as of such Exercise
Date. Provided, however, that in no event shall an Employee be permitted to
purchase during each Purchase Period more than a number of Shares determined by
dividing $12,500 by the FMV of a share of the Company's Stock on the Enrollment
Date. In addition, and notwithstanding the foregoing, to the extent necessary to
comply with section 423(b)(8) of the Code and to comply with the preceding
provisions of this Section 4.1, a Participant's payroll deductions may be
decreased to zero percent at such time during any Purchase Period which is
scheduled to end during the current calendar year (the "Current Purchase
Period") to the extent that the aggregate of all payroll deductions which were
previously used to purchase stock under the Plan in a prior Purchase Period
which ended during that calendar year plus all payroll deductions accumulated
with respect to the Current Purchase Period equal $21,250. Payroll deductions
shall recommence at the rate provided in such Participant's payroll deduction
agreement at the beginning of the first Purchase Period which is scheduled to
end in the following calendar year, unless terminate previously by the
Participant as provided herein.

         4.2 OFFERING PERIODS. The Plan shall be implemented by consecutive
overlapping Offering Periods with a new Offering Period commencing on the first
business on or after July 1 and January 1 of each year, or such other date at
the Board shall determine, and continuing thereafter until terminated in
accordance with Article IX hereunder. The Board shall have the power to change
the duration of Offering Periods with respect to future Offerings without
shareholder approval if such change is announced at least fifteen days prior the
scheduled beginning of the first Offering Period to be effected thereafter. In
addition, Employees may only participate in one Offering Period at any time.

         4.3 PAYROLL DEDUCTION. For an Employee to become eligible to receive an
Option granted for a given Offering Period, the Employee must complete a payroll
deduction form and file it with the Company no earlier than 30 nor later than 15
days prior to the beginning of the applicable Enrollment Date. The payroll
deduction form shall permit a Participant to elect to have withheld from his
Compensation an amount no less than one percent, nor more than fifteen percent,
of his Compensation (only in whole percentages) taken pro rata from the
Compensation paid to him by the Company. Each payroll deduction shall begin on
the first pay period ending after the applicable Enrollment Date and shall
continue through the last pay period in the Offering Period. No Participant
shall be permitted to begin payroll deductions at any other time. A Participant
may not make additional payments to his Plan account.

                                      IV-1
<PAGE>   10

         4.4 PAYROLL DEDUCTIONS CONTINUING. A Participant's election to have
payroll deductions shall remain in effect for all ensuing Offering Periods until
changed by the Participant by filing an appropriate amended payroll deduction
form not earlier than 30 nor later than 15 days prior to the applicable Offering
Period for which it is to be effective.

         4.5 RIGHT TO STOP OR ADJUST PAYROLL DEDUCTIONS. A Participant may
discontinue, payroll deductions and his participation in the Plan as provided in
Section 5.1. In addition, a Participant may increase or decrease his payroll
deductions during any Purchase Period by filing an amended payroll deduction
form at least 15 days prior to the effective date of the change.

         4.6 ACCOUNTING FOR FUNDS. As of each payroll deduction period the
Employer shall cause to be credited to the Participant's payroll deduction
account in a ledger established for that purpose the funds withheld from and
attributable to the Employee's compensation for that period. No interest shall
be credited to the Participant's payroll deduction account at any time. The
obligation of the Employer to the Participant for this account shall be a
general corporate obligation and shall not be funded through a trust nor secured
by any assets which would cause the Participant to be other than a general
creditor of the Employer.

         4.7 EMPLOYER'S USE OF FUNDS. All payroll deductions received or held by
an Employer may be used by the Employer for any corporate purposes and the
Employer shall not be obligated to segregate such payroll deductions.

                                      IV-2
<PAGE>   11

                                    ARTICLE V

                             IN SERVICE WITHDRAWAL,
                           TERMINATION OF EMPLOYMENT,
                               RETIREMENT OR DEATH

         5.1 IN SERVICE WITHDRAWAL. A Participant may, at any time on or before
15 days prior to an Exercise Date, or such other date as shall be determined by
the Committee from time to time, elect to withdraw all funds then credited to
his payroll deduction account by giving written notice to his Employer in
accordance with the rules established by the Committee. All funds credited to
the Participant's payroll deduction account shall be paid to him as soon as
administratively feasible. The withdrawal election terminates the Participant's
right to exercise his Option on the Exercise Date and his entitlement to elect
any further payroll deductions for the then current and immediately following
Purchase Period. Should the Participant wish to participate in any given future
Purchase Period within the existing Offering Period, the Participant must file a
new payroll deduction election no earlier than 3 nor later than 15 days prior to
the beginning of the applicable Purchase Period within the Offering Period.

         5.2 TERMINATION OF EMPLOYMENT. If a Participant's employment is
terminated for any reason other than retirement for age or disability as
described in Section 5.3, prior to the Exercise Date, the Option granted to the
Participant for that Offering Period shall lapse. The Participant's payroll
deduction account shall be returned to him as soon as administratively feasible.

         5.3 RETIREMENT FOR AGE OR DISABILITY. If a Participant retires for age
or disability under the then established rules of the Company, his Exercise Date
shall be the last day of the month prior to his retirement for age or
disability. At that time his Option shall be exercised in accordance with the
terms of the Plan. Then any funds remaining in his payroll deduction account
shall be returned to him as soon as administratively feasible.

         5.4 DEATH. If a Participant dies before an Exercise Date, the Option
granted to the Participant for that Offering Period shall lapse. The
Participant's payroll deduction account shall be returned to him as soon as
administratively feasible. If the Participant dies after an Exercise Date but
prior to the delivery of his certificate, the Stock shall be delivered to his
Beneficiary (or to his estate if he has no Beneficiary). If there is no
Beneficiary, the Stock shall be held in the Participant's account until the
representative of the estate has been appointed and provides such evidence as
may be required by the Committee before the certificate is delivered to the
proper party together with a check in the amount of any remaining funds in the
Participant's payroll deduction account.

                                       V-1
<PAGE>   12

                                   ARTICLE VI

                               EXERCISE OF OPTION

         6.1 PURCHASE OF STOCK. Subject to the limitations in Section 3.2 of the
Plan, on the Exercise Date of each Purchase Period each Participant's payroll
deduction account shall be used to purchase the maximum number of whole shares
of Stock that can be purchased at the Option Price for that Purchase Period. Any
funds remaining in a Participant's payroll deduction account after the exercise
of his Option for any Purchase Period shall remain in the Participant's account
to be used in the ensuing Purchase Period, together with new payroll deductions,
if any, for that Purchase Period to exercise the next succeeding Option which is
to be exercised. If in any Purchase Period the total number of shares of Stock
to be purchased by all Participants exceed the number of shares of Stock
committed to the Plan, then each Participant shall be entitled to purchase only
his pro rata portion of the shares of Stock remaining available under the Plan
based on the balances in each Participant's payroll deduction account as of the
Exercise Date. No fractional shares of Stock may be purchased under this Plan.
After the purchase of all shares of Stock available on Exercise Date, all
Options granted for the Purchase Period to the extent not used shall terminate.

         6.2 ACCOUNTING FOR STOCK. After each Exercise Date of each Purchase
Period, a report shall be given to each Participant stating the amount of his
payroll deduction account, the number of shares of Stock purchased and the
applicable Option Price.

         6.3 ISSUANCE OF SHARES. As soon as administratively feasible after the
end of the Purchase Period the Committee shall advise the appropriate officer of
the Company that the terms of the Plan have been complied with and that it is
appropriate for the officer to cause to be issued the shares of Stock upon which
Options have been exercised under the Plan. The Committee may determine in its
discretion the manner of delivery of the shares of Stock purchased under the
Plan, which may be by electronic account entry into new or existing accounts,
delivery of certificates or any other means as the Committee, in its discretion,
deems appropriate. The Committee may, in its discretion, hold the certificate
for any shares of Stock or cause it to be legended in order to comply with the
securities laws of the applicable jurisdiction.

         6.4 RESTRICTION ON SHARES. A Participant shall be free to undertake a
disposition (as that term is defined in Section 424(c) of the Code) of the
shares in his account at any time, whether by sale, exchange, gift, or other
transfer of legal title, but in the absence of such a disposition of the shares,
the shares must remain in the Participant's account at the brokerage or other
financial services firm designated by the Committee until the holding period set
forth in Section 423(a) of the Code has been satisfied. With respect to Shares
for which such holding period has been satisfied, the Participant may direct
that those Shares be moved to another account of Participant's choosing or
request that a stock certificate be issued and delivered to him.

         Notwithstanding anything to the contrary contained in this Plan, a
Participant shall not transfer or otherwise dispose of Stock in violation of the
Company's Insider Trading Policy.

                                      VI-1
<PAGE>   13

                                   ARTICLE VII

                                 ADMINISTRATION

         7.1 APPOINTMENT, TERM OF SERVICE & REMOVAL. The Board of Directors
shall appoint a Committee to administer this Plan. The members shall serve until
their resignation, death or removal. Any member may resign at any time by
mailing a written resignation to the Board of Directors. Any member may be
removed by the Board of Directors, with or without cause. Vacancies may be
filled by the Board of Directors from time to time.

         7.2 POWERS. The Committee has the exclusive responsibility for the
general administration of the Plan, and has all powers necessary to accomplish
that purpose, including but not limited to the following rights, powers, and
authorities:

                  (a) to make rules for administering the Plan so long as they
         are not inconsistent with the terms of the Plan;

                  (b) to construe all provisions of the Plan;

                  (c) to correct any defect, supply any omission, or reconcile
         any inconsistency which may appear in the Plan;

                  (d) to select, employ, and compensate at any time any
         consultants, accountants, attorneys, and other agents the Committee
         believes necessary or advisable for the proper administration of the
         Plan;

                  (e) to determine all questions relating to eligibility, Fair
         Market Value, Option Price and all other matters relating to benefits
         or Participants' entitlement to benefits;

                  (f) to determine all controversies relating to the
         administration of the Plan, including but not limited to any
         differences of opinion arising between the Company and a Participant,
         and any questions it believes advisable for the proper administration
         of the Plan; and

                  (g) to delegate any clerical or recordation duties of the
         Committee as the Committee believes is advisable to properly administer
         the Plan.

         7.3 QUORUM AND MAJORITY ACTION. A majority of the Committee constitutes
a quorum for the transaction of business. The vote of a majority of the members
present at any meeting shall decide any question brought before that meeting. In
addition, the Committee may decide any

                                      VII-1
<PAGE>   14

question by a vote, taken without a meeting, of a majority of its members via
telephone, computer, fax or any other media of communication.

         7.4 STANDARD OF JUDICIAL REVIEW OF COMMITTEE ACTIONS. The Committee has
full and absolute discretion in the exercise of each and every aspect of its
authority under the Plan. Notwithstanding anything to the contrary, any action
taken, or ruling or decision made, by the Committee in the exercise of any of
its powers and authorities under the Plan shall be final and conclusive as to
all parties other than the Company, including without limitation all
Participants and their Beneficiaries, regardless of whether the Committee or one
or more of its members may have an actual or potential conflict of interest with
respect to the subject matter of the action, ruling, or decision. No final
action, ruling, or decision of the Committee shall be subject to de novo review
in any judicial proceeding; and no final action, ruling, or decision of the
Committee may be set aside unless it is held to have been arbitrary and
capricious by a final judgment of a court having jurisdiction with respect to
the issue.

                                      VII-2
<PAGE>   15

                                  ARTICLE VIII

                       ADOPTION OF PLAN BY OTHER EMPLOYERS

         8.1 ADOPTION PROCEDURE. With the approval of the Committee, any
Affiliate may adopt this Plan by:

                  (a) a certified resolution or consent of the board of
         directors of the adopting Affiliate or an executed adoption instrument
         (approved by the board of directors of the adopting Affiliate) agreeing
         to be bound as an Affiliate by all the terms, conditions and
         limitations of this Plan; and

                  (b) providing all information required by the Committee.

         8.2 NO JOINT VENTURE IMPLIED. The document which evidences the adoption
of the Plan by an Affiliate shall become a part of this Plan. However, neither
the adoption of this Plan by an Affiliate nor any act performed by it in
relation to this Plan shall create a joint venture or partnership relation
between it and the Company or any other Affiliate.

                                     VIII-1
<PAGE>   16

                                   ARTICLE IX

                      TERMINATION AND AMENDMENT OF THE PLAN

         9.1 TERMINATION. The Company may, by action of the Board of Directors,
terminate the Plan at any time and for any reason. The Plan shall automatically
terminate upon the purchase by Participants of all shares of Stock committed to
the Plan, unless the number of Shares committed to the Plan are increased by the
Board of Directors and approved by the shareholders of the Company. Upon
termination of the Plan, as soon as administratively feasible there shall be
refunded to each Participant the remaining funds in his payroll deduction
account, and there shall be forwarded to the Participants certificates for all
shares of Stock held under the Plan for the account of Participants. The
termination of this Plan shall not affect the current Options already
outstanding under the Plan to the extent there are Shares committed, unless the
Participants agree.

         9.2 AMENDMENT. The Board of Directors reserves the right to modify,
alter or amend the Plan at any time and from time to time to any extent that it
deems advisable, including, without limiting the generality of the foregoing,
any amendment deemed necessary to ensure compliance of the Plan with Section 423
of the Code. The Board of Directors may suspend operation of the Plan for any
period as it may deem advisable. However, no amendment or suspension shall
operate to reduce any amounts previously allocated to a Participant's payroll
deduction account, to reduce a Participant's rights with respect to shares of
Stock previously purchased and held on his behalf under the Plan nor to affect
the current Option a Participant already has outstanding under the Plan without
the Participant's agreement. Any amendment changing the aggregate number of
Shares to be committed to the Plan or the class of employees eligible to receive
Options under the Plan must have stockholder approval as set forth in Section
1.4.

                                      IX-1
<PAGE>   17

                                    ARTICLE X

                                  MISCELLANEOUS

         10.1 DESIGNATION OF BENEFICIARY.

                           (a) A Participant may file a written or electronic
                  designation (as permitted by the Committee) of a Beneficiary
                  who is to receive any cash and Shares credited to the
                  Participant's account under the Plan.

                           (b) A Participant may change his designation of a
                  Beneficiary at any time by written notice. If a Participant
                  dies when he has not validly designated a Beneficiary under
                  the Plan, the Company shall deliver such Shares and cash to
                  the executor or administrator of the estate of the
                  Participant, or if no such executor or administrator has been
                  appointed (to the knowledge of the Company), the Company, in
                  its discretion, may deliver such Shares and cash to the spouse
                  or to any one or more dependents or relatives of the
                  Participant, or if no spouse, dependent or relative is known
                  to the Company, then to such other person as the Company may
                  designate.

         10.2 PLAN NOT AN EMPLOYMENT CONTRACT. The adoption and maintenance of
this Plan is not a contract between the Company and its Employees which gives
any Employee the right to be retained in its employment. Likewise, it is not
intended to interfere with the rights of the Company to discharge any Employee
at any time or to interfere with the Employee's right to terminate his
employment at any time.

         10.3 ALL PARTICIPANTS' RIGHTS ARE EQUAL. All Participants will have the
same rights and privileges under this Plan as are required by section 423 of the
Code and section 1.423-2(f) of the regulations promulgated under that section of
the Code.

         10.4 OPTIONS GRANTED ARE NOT TRANSFERABLE. No Option granted a
Participant under this Plan is transferable by the Participant and must be
exercisable only by him. In the event any Participant attempts to violate the
terms of this Section, any Option held by the Participant shall be terminated by
the Company and upon return to the Participant of the remaining funds in his
payroll deduction account, all of his rights under the Plan will terminate.

         10.5 VOTING OF STOCK. Shares of Stock held under the Plan for the
account of each Participant shall be voted by the holder of record of those
shares in accordance with the Participant's instructions.

                                       X-1
<PAGE>   18

         10.6 NO STOCKHOLDER RIGHTS. No eligible Employee or Participant shall
by reason of participation in the Plan have any rights of a stockholder of the
Company until he acquires shares of Stock as provided in this Plan.

         10.7 GOVERNMENTAL REGULATIONS. The obligation to sell or deliver the
shares of Stock under this Plan is subject to the approval of all governmental
authorities required in connection with the authorization, purchase, issuance or
sale of that Stock.

         10.8 NOTICES. All notices and other communication in connection with
the Plan shall be in the form specified by the Committee and shall be deemed to
have been duly given when sent to the Participant at his last known address or
to his designated personal representative or beneficiary, or to the Company or
its designated representative, as the case may be.

         10.9 INDEMNIFICATION OF COMMITTEE. In addition to all other rights of
indemnification as they may have as directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against the
reasonable expenses, including attorneys' fees, actually and necessarily
incurred in connection with the defense of any action, suit or proceeding, or in
connection with any appeal, to which they or any of them may be a party by
reason of any action taken or failure to act under or in connection with the
Plan or any Option granted under the Plan, and against all amounts paid in
settlement (provided the settlement is approved by independent legal counsel
selected by the Company) or paid by them in satisfaction of a judgment in any
action, suit or proceeding, except in relation to matters as to which it is
adjudged in the action, suit or proceeding, that the Committee member is liable
for gross negligence or willful misconduct in the performance of his duties.

         10.10 TAX WITHHOLDING. At the time a Participant's Option is exercised
or at the time a Participant disposes of some or all of the Stock purchased
under the Plan, the Participant must make adequate provision for the Employer's
federal, state or other tax withholding obligations, if any, which arise upon
the exercise of the Option or the disposition of the Stock. At any time, the
Employer may, but shall not be obligated to, withhold from the Participant's
compensation the amount necessary for the Employer to meet applicable
withholding obligations.

         10.11 GENDER AND NUMBER. If the context requires it, words of one
gender when used in this Plan shall include the other genders, and words used in
the singular or plural shall include the other.

         10.12 SEVERABILITY. Each provision of this Plan may be severed. If any
provision is determined to be invalid or unenforceable, that determination shall
not affect the validity or enforceability of any other provision.

         10.13 GOVERNING LAW; PARTIES TO LEGAL ACTIONS. The provisions of this
Plan shall be construed, administered, and governed under the laws of the State
of Texas and, to the extent applicable, by the securities, tax, employment and
other laws of the United States which are applicable to an employee stock
purchase plan.

                                       X-2

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