REGENERON PHARMACEUTICALS INC
FORM OF OPTION AGREEMENT AND RELATED NOTICE OF GRANT FOR USE IN CONNECTION
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>exhibit10-2.htm
<DESCRIPTION>FORM OF OPTION AGREEMENT AND RELATED NOTICE OF GRANT FOR USE IN CONNECTION
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<P align=right><B><FONT face=serif size=2>Exhibit 10.2</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

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    <TD style="BORDER-TOP: #000000 1.5pt solid" noWrap align=left width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="49%" colSpan=2><B><FONT face=serif size=2>Regeneron Pharmaceuticals, Inc.</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="49%" colSpan=2><B><FONT face=serif size=2>ID:</FONT></B> <FONT face=serif size=2>[<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      ]</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2><B>Notice of
      Grant of Stock Options</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2><FONT face=serif size=2>777
      Old Saw Mill River Road</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2><B>and Option
      Agreement for Performance</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2><FONT face=serif><FONT face=serif size=2>Tarrytown, New York 10591<FONT size=3>&nbsp;&nbsp;</FONT></FONT></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2><B>Vesting
      Option Awards</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="49%" colSpan=2>&nbsp; &nbsp; &nbsp;
  &nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2><B>[OPTIONEE
      NAME]</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2><B>Option
      Number:</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%">&nbsp; <FONT face=serif><STRONG>[</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <STRONG>]</STRONG></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%"><FONT face=serif size=2><B>[OPTIONEE
      ADDRESS</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2><B>Plan:</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%">&nbsp; <B><FONT face=serif size=2>04</FONT></B>&nbsp;&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="50%">&nbsp;</TD>
    <TD noWrap align=left width="2%"><FONT face=serif size=2><B>ID</B><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%">&nbsp; <FONT face=serif><STRONG>[</STRONG>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <STRONG>]</STRONG></FONT>&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" noWrap align=left width="99%" colSpan=3>&nbsp;</TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Effective &lt;date&gt; (the Grant Date)
you have been granted a Non-Qualified Stock Option to buy [<FONT size=3>&nbsp;&nbsp;&nbsp; </FONT>] shares of Regeneron Pharmaceuticals, Inc.
(the Company) stock at [$<FONT size=3>&nbsp;&nbsp;&nbsp; </FONT>] per
share.</FONT></P>
<P align=justify><FONT face=serif size=2>The total option price of the shares
granted is [$<FONT size=3>&nbsp;&nbsp;&nbsp; </FONT>].</FONT></P>
<P align=justify><FONT face=serif size=2>Stock options granted pursuant to this
award will be eligible to vest on
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]*. The number of
stock options that will vest on that date will be determined based on the total
number of points that are earned according to the table below during the period
commencing on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]
and ending on [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]*
(the Performance Measurement Period):</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="20%"><FONT face=serif><FONT face=serif size=2>Total
      Points</FONT></FONT>&nbsp;</TD>
    <TD noWrap align=left width="47%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="32%" colSpan=3><FONT face=serif><FONT size=2>Stock Options to Vest on [<FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </FONT><FONT size=2>]</FONT>*</FONT></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>] or less</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0><FONT face=serif><FONT face=serif size=2>0</FONT></FONT>&nbsp;</TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%"><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="12%"><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%"><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="12%"><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%"><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%"></TD>
    <TD noWrap align=left width="12%"></TD>
    <TD noWrap align=left width="12%"><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="8%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="20%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>] or more</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="47%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="12%" bgColor=#c0c0c0><FONT face=serif><FONT size=2>[</FONT><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
      <FONT size=2>]</FONT><FONT size=3>&nbsp;</FONT></FONT></TD>
    <TD noWrap align=left width="8%" bgColor=#c0c0c0></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>Total points in the table set forth
above will be calculated based on the following criteria as achieved during the
Performance Measurement Period:</FONT></P>
<P align=justify><FONT face=serif size=2>[Description of performance criteria
and allocation of points for achieving specific milestones]</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=sans-serif><FONT face=serif size=2>[For the
avoidance of doubt, points may be earned upon achievement of the specified
criteria by or on behalf of the Company or any subsidiary of the Company,
including by any other entity pursuant to or in connection with any license or
collaboration agreement under which such entity has rights to develop the Drug
Candidate.]</FONT></FONT></P>
<P align=justify><FONT face=sans-serif><FONT face=serif size=2>[Notwithstanding
the foregoing, if [insert certain criteria] have not been achieved during the
Performance Measurement Period, then the number of stock options from this award
that will vest on [&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; ]* may not
exceed [&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ] unless
otherwise determined by the Compensation Committee or there is an acceleration
of this stock option award following a Change in Control pursuant to any
employment agreement, change in control agreement or similar agreement in effect
between the Grantee and the Company.</FONT></FONT></P>
<P align=justify><FONT face=sans-serif><FONT face=serif size=2>Notwithstanding
anything to the contrary set forth herein, the Compensation Committee of the
Board of Directors of the Company shall have the discretion to cause or
accelerate the vesting of any or all of the stock options granted pursuant to
this award.</FONT></FONT></P>
<P align=justify><FONT face=sans-serif><FONT face=serif size=2>The Compensation
Committee of the Board of Directors of the Company shall have the authority in
its sole discretion to determine whether the criteria required for earning the
points in the table set forth above were achieved.</FONT></FONT></P>
<P align=justify><FONT face=sans-serif><FONT face=serif size=2>The Non-Qualified
Stock Option expires on [10 years from the Grant Date].</FONT></FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-TOP: #000000 1.5pt solid" width="100%">&nbsp;</TD></TR>
  <TR>
    <TD width="100%"><FONT size=2>You and the Company agree that these options
      are granted under and governed by the terms and conditions of the
      Company&#146;s Amended and Restated 2000 Long-Term Incentive Plan and the
      enclosed Option Agreement, both of which are attached and made a part of
      this document.</FONT></TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1.5pt solid" width="100%">&nbsp;</TD></TR></TABLE><FONT face=sans-serif><FONT face=serif size=2>&nbsp;<BR>____________________</FONT></FONT> <BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2><FONT face=serif size=2>*</FONT></FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=2><FONT face=serif size=2>This
      date will be the last day of the Performance Measurement
      Period.</FONT></FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp; </TD></TR></TABLE>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=center><B><FONT face=serif size=4>REGENERON PHARMACEUTICALS,
INC.<BR></FONT></B><B><FONT face=serif>OPTION AGREEMENT<BR></FONT></B><B><FONT face=serif>PURSUANT TO THE<BR></FONT></B><B><FONT face=serif>2000 LONG-TERM
INCENTIVE PLAN</FONT></B><FONT face=serif> </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS AGREEMENT, made as of the date on the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2>, by and between Regeneron Pharmaceuticals, Inc., a New York corporation
(the "Company"), and the employee [(or member of the Board of Directors)]* named
on the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock
Options</FONT></I><FONT face=serif size=2> (the "Grantee");</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS,
the Grantee is an employee [or member of the Board of Directors]* of the Company
and the Company desires to afford the Grantee the opportunity to acquire or
enlarge the Grantee's stock ownership in the Company so that the Grantee may
have a direct proprietary interest in the Company's success; and</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>WHEREAS,
the Committee administering the 2000 Long-Term Incentive Plan (as amended from
time to time, the "Plan") has granted (as of the effective date of grant
specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock
Options</FONT></I><FONT face=serif size=2>) to the Grantee a Stock Option to
purchase the number of shares of the Company's Common Stock ($.001 par value)
(the "Common Stock") as set forth in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2>.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>NOW,
THEREFORE, in consideration of the covenants and agreements herein contained,
the parties agree as follows: </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>1.
Grant of Award.</FONT></B><FONT face=serif size=2> Pursuant to Section 7 of the
Plan, the Company grants to the Grantee, subject to the terms and conditions of
the Plan and subject further to the terms and conditions set forth here, the
option to purchase from the Company all or any part of an aggregate of shares of
Common Stock at the purchase price per share (the "Option") as shown on the
</FONT><I><FONT face=serif size=2>Notice of Grant of Stock
Options</FONT></I><FONT face=serif size=2>. [No part of the Option granted
hereby is intended to qualify as an Incentive Stock Option under Section 422 of
the Internal Revenue Code of 1986, as amended (the "Code").]* [Notwithstanding
the foregoing, the Option will not qualify as an Incentive Stock Option, among
other events, (i) if the Grantee disposes of the Common Stock acquired pursuant
to the Option at any time during the two year period following the date of this
Agreement or the one year period following the date on which the Option is
exercised, or (ii) if the Grantee is not employed by the Company or a subsidiary
of the Company within the meaning of Section 424 of the Code (a "Subsidiary") at
all times during the period beginning on the date of this Agreement and ending
on the day three months before the date of exercise of the Option, or (iii) to
the extent the aggregate fair market value (determined as of the time the Option
is granted) of the stock subject to Incentive Stock Options which become
exercisable for the first time in any calendar year exceeds $100,000. To the
extent that the Option does not qualify as an Incentive Stock Option, it shall
constitute a separate Non-Qualified Stock Option.]** </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>2.
Vesting; Exercise. </FONT></B><FONT face=serif size=2>(a) The Option is
exercisable in installments as provided on the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2>. To
the extent that the Option has become exercisable with respect to the number of
shares of Common Stock as provided on the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2> and
subject to the terms and conditions of the Plan, including without limitation,
Section 7(c)(1) &amp; (2), the Option may thereafter be exercised by the
Grantee, in whole or in part, at any time or from time to time prior to the
expiration of the Option in accordance with the requirements set forth in
Section 7(c)(3) of the Plan, including, without limitation, the filing of such
written form of exercise notice as may be provided by the Company, and in
accordance with applicable tax and other laws. [In addition to the methods of
payment described in Section 7(c)(3) of the Plan, the Grantee shall be eligible
to pay for shares of Common Stock purchased upon the exercise of the Option by
directing the Company to withhold shares of Common Stock that would otherwise be
issued pursuant to the Option exercise having a Fair Market Value (as measured
on the date of exercise) equal to the Option exercise price.]* The Company shall
have the right to require the Grantee in connection with the exercise of the
Option to remit to the Company in cash an amount sufficient to satisfy any
federal, state and local withholding tax requirements related thereto.
</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>The </FONT><I><FONT face=serif size=2>Notice of Grant of Stock
Options</FONT></I><FONT face=serif size=2> indicates each date upon which the
Grantee shall be entitled to exercise the Option with respect to the number of
shares of Common Stock granted as indicated provided that the Grantee has not
incurred a termination of employment or service with the Company and all
Subsidiaries (collectively, the Company and all Subsidiaries shall be referred
to herein as the "Employer" and no termination of employment or service shall be
deemed to take place unless the Grantee is no longer employed by or providing
service to the Employer) prior to such date. There shall be no proportionate or
partial vesting in the periods between the Full Vest Dates specified in the
<I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2> and all vesting shall occur only on the Full Vest Dates.
Except as otherwise provided in any employment agreement, consulting agreement,
change in control agreement or similar agreement or plan in effect between the
Employer and the Grantee on the date specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2>, or
as may be otherwise determined by the Committee in accordance with Section 7(e)
of the Plan, no vesting shall occur after such date as the Grantee ceases to be
employed by the Employer [(or providing services as a member of the Board of
Directors, as the case may be)]* and all unvested Options shall be forfeited at
such time.</FONT></FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)
Notwithstanding anything herein (except the following sentence) or in the
</FONT><I><FONT face=serif size=2>Notice of Grant of Stock
Options</FONT></I><FONT face=serif size=2> to the contrary, the Option shall be
fully vested on the date of termination of the Grantee&#146;s employment with the
Employer [(or services as a member of the Board of Directors)]* if the Grantee&#146;s
employment with the Employer [(or services a member of the Board of Directors)]*
is terminated on or within two years after the occurrence of a Change in Control
by the Employer (other than for Cause) or by the Grantee for Good Reason. Except
as otherwise provided in any employment agreement, consulting agreement, change
in control agreement or similar agreement or plan in effect between the Employer
and the Grantee on the date of grant specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options</FONT></I><FONT face=serif size=2>, if
the application of the provision in the foregoing sentence, similar provisions
in other stock option or restricted stock grants, and other payments and
benefits payable to the Grantee upon termination of employment [(or service as
member of the Board of Directors)]* (collectively, the &#147;Company Payments&#148;) would
result in the Grantee being subject to the excise tax payable under Internal
Revenue Code Section 4999 (the &#147;Excise Tax&#148;), the amount of any Company Payments
shall be automatically reduced to an amount one dollar less than an amount that
would subject the Grantee to the Excise Tax; </FONT><U><FONT face=serif size=2>provided</FONT></U><FONT face=serif size=2>, </FONT><U><FONT face=serif size=2>however</FONT></U><FONT face=serif size=2>, that the reduction shall
occur only if the reduced Company Payments received by the Grantee (after taking
into account further reductions for applicable federal, state and local income,
social security and other taxes) would be greater than the unreduced Company
Payments to be received by the Grantee minus (i) the Excise Tax payable with
respect to such Company Payments and (ii) all applicable federal, state and
local income, social security and other taxes on such Company Payments. If the
Company Payments are to be reduced in accordance with the foregoing, the Company
Payments shall be reduced as mutually agreed between the Employer and the
Grantee or, in the event the parties cannot agree, in the following order (1)
acceleration of vesting of any option where the exercise price exceeds the fair
market value of the underlying shares at the time the acceleration would
otherwise occur, (2) any lump sum severance based on a multiple of base salary
or bonus, (3) any other cash amounts payable to the Grantee, (4) any benefits
valued as parachute payments, and (5) acceleration of vesting of any equity not
covered by (1) above. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><STRONG>3. Option Term.
</STRONG></FONT><FONT face=serif size=2>(a) Except as otherwise provided in the
next sentence or in the Plan, the </FONT><FONT face=serif size=2>Option shall
expire on the tenth anniversary of the grant of the Option as shown on the
</FONT><I><FONT face=serif size=2>Notice of Grant of Stock
Options</FONT></I><FONT face=serif size=2>. In the event of termination of
employment or service with the Employer, except as set forth in any employment
agreement, consulting agreement, change in control agreement or similar
agreement or plan in effect between the Employer and the Grantee on the date of
grant specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of
Stock Options</FONT></I><FONT face=serif size=2>, or as may be otherwise
determined by the Committee in accordance with Section 7(e) of the Plan, the
vested portion of the Option shall expire on the earlier of (i) the tenth
anniversary of this grant, or (ii)(A) subject to (E) below, three months after
such termination if such termination is for any reason other than death,
retirement, or long-term disability, (B) the tenth anniversary of this grant if
such termination is due to the Grantee's retirement, (C) one year after the
termination if such termination is due to the Grantee's death or long-term
disability, (D) the occurrence of the Cause event if such termination is for
Cause or Cause existed at the time of such termination (whether then known or
later discovered) or (E) one year after such termination if such termination is
at any time within two years after the occurrence of a Change in Control and is
by the Employer without Cause or by the Grantee for Good Reason. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>For purposes of this Agreement, "Cause" shall mean (i) in the case where
there is no employment agreement, consulting agreement, change in control
agreement or similar agreement or plan in effect between the Company and the
Grantee on the date of grant specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options </FONT></I><FONT face=serif size=2>(or
where there is such an agreement or plan but it does not define &#147;cause&#148; (or
words of like import)) (A) the willful and continued failure by the Grantee
substantially to perform his or her duties and obligations to the Employer,
including without limitation, repeated refusal to follow the reasonable
directions of the Employer, knowing violation of law in the course of
performance of the duties of the Grantee's employment with the Employer,
repeated absences from work without a reasonable excuse, and intoxication with
alcohol or illegal drugs while on the Employer's premises during regular
business hours (other than any such failure resulting from his or her incapacity
due to physical or mental illness); (B) fraud or material dishonesty against the
Employer; or (C) a conviction or plea of guilty or nolo contendere to a felony
or a crime involving material dishonesty or (ii) in the case where there is an
employment agreement, consulting agreement, change in control agreement or
similar agreement or plan in effect between the Employer and the Grantee on the
date of grant specified in the <I><FONT face=serif size=2>Notice of Grant of
Stock Options </FONT></I><FONT face=serif size=2>that defines &#147;cause&#148; (or words
of like import), as defined under such agreement or plan. For purposes of this
Section 3(b), no act, or failure to act, on a Grantee's part shall be considered
"willful" unless done, or omitted to be done, by the Grantee in bad faith and
without reasonable belief that his or her action or omission was in the best
interest of the Employer. Any determination of Cause made prior to a Change in
Control shall be made by the Committee in its sole discretion.</FONT></FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>For purposes of this Agreement, &#147;Good Reason&#148; shall mean (i) in the case
where there is no employment agreement, consulting agreement, change in control
agreement or similar agreement or plan in effect between the Employer and the
Grantee on the date of grant specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options </FONT></I><FONT face=serif size=2>(or
where there is such an agreement or plan but it does not define &#147;good reason&#148;
(or words of like import)) a termination of employment by the Grantee within one
hundred twenty (120) days after the occurrence of one of the following events
after the occurrence of a Change in Control unless such events are fully
corrected in all material respects by the Employer within thirty (30) days
following written notification by the Grantee to the Employer that Grantee
intends to terminate his employment hereunder for one of the reasons set forth
below: (A) (1) any material diminution in the Grantee&#146;s duties and
responsibilities from that which exists immediately prior to a Change in Control
(except in each case in connection with the termination of the Grantee&#146;s
employment for Cause or as a result of the Grantee&#146;s death, or temporarily as a
result of the Grantee&#146;s illness or other absence), or (2) the assignment to the
Grantee of duties and responsibilities materially inconsistent with the position
held by the Grantee; (B) any material breach by the Employer of any material
provision of any written agreement with the Grantee or failure to timely pay any
compensation obligation to the Grantee; (C) a reduction in the Grantee&#146;s annual
base salary or target bonus opportunity (if any) from that which exists
immediately prior to a Change in Control; or (D) if the Grantee is based at the
Employer&#146;s principal executive office, any relocation therefrom or, in any
event, a relocation of the Grantee&#146;s primary office of more than fifty (50)
miles from the location immediately prior to a Change in Control; or (ii) in the
case where there is an employment agreement, consulting agreement, change in
control agreement or similar agreement or plan in effect between the Employer
and the Grantee on the date of grant specified in the </FONT><I><FONT face=serif size=2>Notice of Grant of Stock Options </FONT></I><FONT face=serif size=2>that
defines &#147;good reason&#148; (or words of like import), as defined under such agreement
or plan. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>4.
Restrictions on Transfer of Option.</FONT></B><FONT face=serif size=2> The
Option granted hereby shall not be transferable other than by will or by the
laws of descent and distribution. During the lifetime of the Grantee, this
Option shall be exercisable only by the Grantee. In addition, except as
otherwise provided in this Agreement, the Option shall not be assigned,
negotiated, pledged or hypothecated in any way (whether by operation of law or
otherwise), and the Option shall not be subject to execution, attachment or
similar process. Upon any other attempt to transfer, assign, negotiate, pledge
or hypothecate the Option, or in the event of any levy upon the option by reason
of any execution, attachment, or similar process contrary to the provisions
hereof, the Option shall immediately become null and void. Notwithstanding the
foregoing provisions of this Section 4, subject to the approval of the Committee
in its sole and absolute discretion and to any conditions that the Committee may
prescribe, the Grantee may, upon providing written notice to the Company, elect
to transfer the Option to members of his or her immediate family, including, but
not limited to, children, grandchildren and spouse or to trusts for the benefit
of such immediate family members or to partnerships in which such family members
are the only partners; provided, however, that no such transfer may be made in
exchange for consideration. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>5.
Rights of a Stockholder. </FONT></B><FONT face=serif size=2>The Grantee shall
have no rights as a stockholder with respect to any shares of Common Stock
subject to this Option prior to the date of issuance to the Grantee of a
certificate or certificates for such shares. No adjustment shall be made for
dividends in cash or other property, distributions, or other rights with respect
to such shares for which the record date is prior to the date upon which the
Grantee shall become the holder of record therefor. </FONT></P>
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<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><B>6.
Compliance with Law and Regulations.</B> This award and any obligation of the
Company hereunder shall be subject to all applicable federal, state and local
laws, rules and regulations and to such approvals by any government or
regulatory agency as may be required. The Company shall be under no obligation
to effect the registration pursuant to federal securities laws of any interests
in the Plan or any shares of Common Stock to be issued hereunder or to effect
similar compliance under any state laws. The Company shall not be obligated to
cause to be issued or delivered any certificates evidencing shares of Common
Stock pursuant to this Agreement unless and until the Company is advised by its
counsel that the issuance and delivery of such certificates is in compliance
with all applicable laws, regulations of governmental authority and the
requirements of any securities exchange on which shares of Common Stock are
traded. The Committee may require, as a condition of the issuance and delivery
of certificates evidencing shares of Common Stock pursuant to the terms hereof,
that the recipient of such shares make such agreements and representations, and
that such certificates bear such legends, as the Committee, in its sole
discretion, deems necessary or desirable. Except to the extent preempted by any
applicable federal law, this Agreement shall be construed and administered in
accordance with the laws of the State of New York without reference to its
principles of conflicts of law. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><B>7.
Grantee Bound by Plan. </B>The Grantee acknowledges receipt of a copy of the
Plan and agrees to be bound by all the terms and provisions thereof. The Plan is
incorporated herein by reference, and any capitalized term used but not defined
herein shall have the same meaning as in the Plan. To the extent that this
Agreement is silent with respect to, or in any way inconsistent with, the terms
of the Plan, the provisions of the Plan shall govern and this Agreement shall be
deemed to be modified accordingly. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><B>8.
Notices.</B> Any notice or communication given hereunder shall be in writing and
shall be deemed given when delivered in person, or by United States mail, at the
following addresses: (i) if to the Employer, to: Regeneron Pharmaceuticals,
Inc., 777 Old Saw Mill River Road, Tarrytown, NY 10591, Attention: Secretary,
and (ii) if to the Grantee, to: the Grantee at Regeneron Pharmaceuticals, Inc.,
777 Old Saw Mill River Road, Tarrytown, NY 10591, or, if the Grantee has
terminated employment or service, to the last address for the Grantee indicated
in the records of the Employer, or such other address as the relevant party
shall specify at any time hereafter in accordance with this Section 8.
</FONT></P>
<P align=justify><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<STRONG>9. No Obligation to Continue
Employment.</STRONG> This Agreement does not guarantee that the Employer will
employ the Grantee for any specified time period, nor does it modify in any
respect the Grantee's employment or compensation. </FONT></P>
<P align=justify><FONT face=sans-serif size=2>____________________</FONT><FONT face=serif size=2> </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>*</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=serif size=2>For Non-Qualified Stock Option
      Awards.</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>**</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;</TD>
    <TD width="100%"><FONT face=serif size=2>For Incentive Stock Option
      Awards.</FONT></TD></TR>
  <TR>
    <TD width="100%" colSpan=3>&nbsp;</TD></TR></TABLE>
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