LIFE MEDICAL SCIENCES, INC.
                             STOCK OPTION AGREEMENT
                 UNDER THE 2001 NON-QUALIFIED STOCK OPTION PLAN

                          (Non-qualified stock option)


      AGREEMENT entered into as of the date set forth on the signature page
hereto by and between Life Medical Sciences, Inc., a Delaware corporation, with
a business address of PO Box 219, Little Silver, New Jersey (together with its
subsidiaries, if any, the "Company"), and the undersigned (the "Grantee").

      WHEREAS, the Company desires to grant to the Grantee a non-qualified stock
option under the Company's 2001 Non-Qualified Stock Option Plan (the "2001
Plan") to acquire shares of the Company's Common Stock, $.001 par value (the
"Shares"); and

      WHEREAS, the 2001 Plan provides that each option is to be evidenced by an
option agreement, setting forth the terms and conditions of the option.

      NOW THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the Company and the Grantee hereby
agree as follows:

      1. Grant of Option.
      -------------------

      The Company hereby grants to the Grantee a non-qualified stock option (the
"Option") under the 2001 Plan to purchase all or any part of an aggregate of the
number of Shares set forth on the signature page to this Agreement on the terms
and conditions hereinafter set forth. The Option shall NOT be treated as an
incentive stock option under Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code").

      2. Purchase Price.
      ------------------

      The purchase price ("Purchase Price") for the Shares covered by the Option


                                       1
<PAGE>


shall be the dollar amount per share set forth on the signature page to this
Agreement.

      3. Time of Vesting and Exercise of Option.
      ------------------------------------------

      Subject to Section 4 hereof, the Option shall vest and become exercisable
on the dates and as to the installment amounts set forth on the signature page
to this Agreement. To the extent the Option (or any portion thereof) is not
exercised by the Grantee when it becomes exercisable, it shall not expire, but
shall be carried forward and shall be exercisable, on a cumulative basis, until
the Expiration Date (as hereinafter defined) or until earlier termination as
hereinafter provided.

      4. Term; Extent of Exercisability.
      ----------------------------------

        (a) Term.

            (i) The Option shall expire as to each installment amount on the
            date set forth next to each such amount on the signature page to
            this Agreement (the "Expiration Date"), subject to earlier
            termination as herein provided.

            (ii) In the event a Grantee's employment or service is terminated by
            the Company for any reason other than "disability", death or for
            "cause" (collectively, a "Termination without cause"), any Option
            held by the Grantee shall become one hundred percent vested and
            fully exercisable for the one year period, except in the case of the
            first year of an Option's term in which case the exercise period
            shall be two years, after the date on which the Grantee's employment
            or service is terminated by the Company, but in any event no later
            than the date of expiration of the Option term.

            (iii) In the event the Grantee's employment or service is terminated
            by the Company for "cause", any Option held by the Grantee shall
            terminate as of the date the Grantee's employment or service is
            terminated by the Company and the Grantee shall automatically
            forfeit all shares underlying any exercised portion of an Option for
            which the Company has not yet delivered the share certificates, upon
            refund by the Company of the Exercise Price paid by the Grantee for
            such shares.

            (iv) In the event the Grantee's employment or service is terminated
            by the Company on account of Grantee's "disability", any Option held
            by the Grantee shall become one hundred percent vested and fully
            exercisable by the Grantee and shall terminate unless exercised
            within one year after the date on which the Grantee's employment or
            service is terminated by the Company, but in any event no later than
            the date of expiration of the Option term.


                                       2
<PAGE>


            (v) In the event of the death of the Grantee, any Option held by the
            Grantee shall become one hundred percent vested and fully
            exercisable by the Grantee and shall terminate unless exercised
            within then later to occur of one year after the date on which the
            Grantee's employment or service is terminated by the Company or six
            months after the probate of the Grantee's estate, but in any event,
            no later than the date of expiration of the Option term.

            (vi) In the event a Grantee terminates his or her employment with or
            services to the Company at his or her own volition, any Option which
            is otherwise exercisable by the Grantee shall terminate unless
            exercised within six months, except in the case of the first year of
            an Option's term in which case the exercise period shall be one
            year, after the date on which the Grantee's employment with or
            service to the Company is terminated, but in no event later than the
            date of expiration of the Option term. Any of the Grantee's Options
            that are not exercisable as of the date on which the Grantee's
            employment with or service to the Company is terminated shall
            terminate as of such date unless the Committee determines otherwise.

            (vii) Notwithstanding the provisions of Section 4(a)(ii) above, if
            the Grantee's employment or service is terminated by the Company on
            account of a "termination without cause" during the one year period
            following a Change of Control, as such term is defined in the 2001
            Plan, any Option held by the Grantee shall become one hundred
            percent vested and fully exercisable for the two year period after
            the date on which the Grantee's employment or service is terminated
            by the Company, but in no event later than the date of expiration of
            the Option term.

            (viii) For purposes of this Section 4(a):

                   (A)  The term "Company" shall mean the Company and its parent
                        and subsidiary corporations, or any successor thereto.
                   (B)  The term "disability" shall mean a Grantee's becoming
                        disabled within the meaning of section 22(e)(3) of the
                        Code.
                   (C)  The term "termination for cause" shall mean, except to
                        the extent specified otherwise by the Committee that the
                        Grantee has materially breached his or her employment or
                        service contract with the Company, or has been engaged
                        in fraud, embezzlement, theft, commission of a felony in
                        the course of his or her employment or service which is
                        injurious to the Company, or has disclosed trade secrets
                        or confidential information of the


                                       3
<PAGE>


                        Company to persons not entitled to receive such
                        information. If this clause (C) conflicts with the
                        definition of "Cause" or "termination for cause" (or any
                        similar definition) in an employment or service
                        agreement between the Company and the Grantee, the terms
                        of the employment or service agreement shall govern.


      5. Manner of Exercise of Option.
      --------------------------------

         (a) To the extent that the right to exercise the Option has accrued and
         is in effect, the Option may be exercised in full or in part by giving
         written notice to the Company stating the number of Shares as to which
         the Option is being exercised and accompanied by payment in full for
         such Shares. No partial exercise may be made for less than one hundred
         (100) full Shares of Common Stock. Payment shall be made in accordance
         with the terms of the 2001 Plan. Upon such exercise, delivery of a
         certificate for paid-up, non-assessable Shares shall be made at the
         principal office of the Company to the person exercising the Option,
         not less than fifteen (15) and not more than forty-five (45) days from
         the date of receipt of the notice by the Company.

         (b) The Company shall at all times during the term of the Option
         reserve and keep available such number of Shares of its Common Stock as
         will be sufficient to satisfy the requirements of the Option.

      6. Non-Transferability.
      -----------------------

      Except as provided below, only the Grantee or his or her authorized
representative may exercise rights under an Option. A Grantee may not transfer
options except (i) by will, (ii) by the laws of descent and distribution, (iii)
to the Company (as contemplated by Rule 16b-3 of the Exchange Act, (iv) pursuant
to a domestic relations order (as defined under the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, or the regulations
thereunder), or (v) as otherwise permitted by the Committee. When a Grantee
dies, the personal representative or other person entitled to succeed to the
rights of the Grantee ("Successor Grantee") may exercise such rights. A
Successor Grantee must furnish proof satisfactory to the Company of his or her
right to receive the Option under the Grantee's will or under the applicable
laws of descent and distribution.

      7. Representation Letter and Investment Legend.
      -----------------------------------------------

      In the event that for any reason the Shares to be issued upon exercise of
the Option shall not be effectively registered under the Securities Act of 1933
(" 1933 Act"), upon any date on which the Option is exercised in whole or in
part, the person exercising the Option shall give a written representation to
the Company in the form attached hereto as Exhibit 1 and the Company shall place
an "investment legend", so-called, as described in Exhibit 1, upon any


                                       4
<PAGE>


certificate for the Shares issued by reason of such exercise.

      8. Adjustments on Changes in Capitalization.
      --------------------------------------------

      Adjustments on changes in capitalization and the like shall be made in
accordance with the 2001 Plan, as in effect on the date of this Option.

      9. No Special Employment Rights.
      --------------------------------

      The provisions of this Section 9 are applicable only to Grantees who are
employees of the Company. Nothing contained in this Option shall be construed or
deemed by any person under any circumstances to bind the Company to continue the
employment of the Grantee for the period within which this Option may be
exercised. However, during the period of the Grantee's employment, the Grantee
shall render diligently and faithfully the services which are assigned to the
Grantee from time to time by the Board of Directors or by the executive officers
of the Company and shall at no time take any action which directly or indirectly
would be inconsistent with the best interests of the Company.

      10. Rights as a Stockholder.
      ----------------------------

      The Grantee shall have no rights as a stockholder with respect to any
Shares which may be purchased by exercise of this Option unless and until a
certificate or certificates representing such Shares are duly issued and
delivered to the Grantee.

      11. Withholding Taxes.
      ----------------------

      Whenever Shares are to be issued upon exercise of this Option, the Company
shall have the right to require the Grantee to remit to the Company an amount
sufficient to satisfy all Federal, state and local withholding tax requirements
prior to the delivery of any certificate or certificates for the Shares. The
Company may agree to permit the Grantee to authorize the Company to withhold
Shares of Common Stock purchased upon exercise of the Option to satisfy the
above-mentioned withholding requirement; provided, however, no such agreement
may be made by an Grantee who is an officer or director within the meaning of
Section 16 of the Securities Exchange Act of 1934, as amended, except pursuant
to a standing election to so withhold Shares of Common Stock purchased upon
exercise of the Option, such election to be made in the form set forth in
Exhibit 2 hereto and to be made not less than six (6) months prior to such
exercise. Such election may be revoked only upon providing six (6) months prior
written notice to the Company.




IN WITNESS WHEREOF, the Company has caused this Agreement to be executed,  and
the Grantee has  hereunto  set his or her hand,  all as of the 26th day of May
2004.


                                       5
<PAGE>

                       LIFE MEDICAL SCIENCES, INC.


                       By:    /s/ Robert P. Hickey
                              --------------------
                       Title:   President & CEO


                       GRANTEE

                       Print Name: Eli Pines, Ph.D.
                                   ----------------

                       Sign Name:  ----------------------------

                       Address:    ----------------------------------------

                                   ----------------------------------------

                       Social Security Number: ----------------------------



                               OPTION INFORMATION
                               ------------------

Total Number of Shares Underlying Option: 100,000
Purchase Price Per Share: $0.43

                          VESTING & EXPIRATION SCHEDULE
                          -----------------------------

      Vesting Date             Number of Shares       Expiration Date
      ------------             ----------------       ---------------

     April 23, 2004                 100,000           April 23, 2011


                                       6
<PAGE>


                                    EXHIBIT 1
                            TO STOCK OPTION AGREEMENT
                            -------------------------

Gentlemen:

      In connection with the exercise by me of an option to purchase shares of
Common Stock, $.001 par value, of Life Medical Sciences, Inc. (the "Company"), I
hereby acknowledge that I have been informed as follows:

      1. The shares of Common Stock of the Company to be issued to me pursuant
to the exercise of said option (the "Shares") have not been registered under the
Securities Act of 1933, as amended (the "Securities Act") and, accordingly, must
be held indefinitely unless the Shares are subsequently registered under the
Securities Act, or an exemption from such registration is available.

      2. Routine sales of securities made in reliance upon Rule 144 under the
Securities Act can be made only after the holding period provided by that Rule
has been satisfied, and, in any sale to which that Rule is not applicable,
registration or compliance with some other exemption under the Securities Act
will be required.

      3. The availability of Rule 144 is dependent upon adequate current public
information with respect to the Company being available and, at the time that I
may desire to make a sale pursuant to the Rule, the Company may neither wish nor
be able to comply with such requirement.

      In consideration of the issuance of certificates for the Shares to me, I
hereby represent and warrant that I am acquiring the Shares for my own account
for investment, and that I will not sell, pledge or transfer the Shares in the
absence of an effective registration statement covering the same, except as
permitted by the provisions of Rule 144, if applicable, or some other applicable
exemption under the Securities Act. In view of this representation and warranty,
I agree that there may be affixed to the certificates for the Shares to be
issued to me, and to all certificates issued hereafter representing the Shares
(until in the opinion of counsel, which opinion must be reasonably satisfactory
in form and substance to counsel for the Company, it is no longer necessary or
required) a legend as follows:

      "The securities represented by this certificate have not been registered
      under the Securities Act of 1933, as amended, and were acquired by the
      registered holder pursuant to a representation and warranty that such
      holder was acquiring the Shares for his own account and for investment,
      with no intention of transfer or disposition of the same in violation of
      the registration requirements of that Act. These securities may not be
      sold, pledged, or transferred in the absence of an effective registration
      statement under such Act, or an opinion of counsel, which opinion is
      reasonably satisfactory to counsel to the Company, to the effect that
      registration is not required under such Act."


                                       7
<PAGE>


      I further agree that the Company may place a stop transfer order with its
transfer agent, prohibiting the transfer of the Shares, so long as the legend
remains on the certificates representing the Shares.

                                   Very truly yours,




Dated: --------------------------


                                       8
<PAGE>


                                    EXHIBIT 2
                            TO STOCK OPTION AGREEMENT
                            -------------------------

Gentlemen:

      The undersigned Grantee hereby elects and agrees that, whenever the
undersigned exercises a stock option (including any options which now or may
hereafter be granted), Life Medical Sciences, Inc. (the "Company") shall
withhold from that exercise such number of Shares equal in value to the federal
and state withholding taxes due upon such exercise. The undersigned further
acknowledges and agrees that this election may not be revoked without six (6)
months' prior written notice to the Company.

                                    GRANTEE:


                                    --------------------------------------------
                                                    (Signature)


                                    --------------------------------------------
                                                   (Print Name)



                                       9


<PAGE>


                           LIFE MEDICAL SCIENCES, INC.
                             STOCK OPTION AGREEMENT
                 UNDER THE 2001 NON-QUALIFIED STOCK OPTION PLAN

                          (Non-qualified stock option)



          AGREEMENT entered into as of the date set forth on the signature page
hereto by and between Life Medical Sciences, Inc., a Delaware corporation, with
a business address of PO Box 219, Little Silver, New Jersey (together with its
subsidiaries, if any, the "Company"), and the undersigned (the "Grantee").

      WHEREAS, the Company desires to grant to the Grantee a non-qualified stock
option under the Company's 2001 Non-Qualified Stock Option Plan (the "2001
Plan") to acquire shares of the Company's Common Stock, $.001 par value (the
"Shares"); and

      WHEREAS, the 2001 Plan provides that each option is to be evidenced by an
option agreement, setting forth the terms and conditions of the option.

      NOW THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the Company and the Grantee hereby
agree as follows:

      1. Grant of Option.
      -------------------

      The Company hereby grants to the Grantee a non-qualified stock option (the
"Option") under the 2001 Plan to purchase all or any part of an aggregate of the
number of Shares set forth on the signature page to this Agreement on the terms
and conditions hereinafter set forth. The Option shall NOT be treated as an
incentive stock option under Section 422 of the Internal Revenue Code of 1986,
as amended (the "Code").

      2. Purchase Price.
      ------------------

      The purchase price ("Purchase Price") for the Shares covered by the Option


                                       1
<PAGE>


shall be the dollar amount per share set forth on the signature page to this
Agreement.

      3. Time of Vesting and Exercise of Option.
      ------------------------------------------

      Subject to Section 4 hereof, the Option shall vest and become exercisable
on the dates and as to the installment amounts set forth on the signature page
to this Agreement. To the extent the Option (or any portion thereof) is not
exercised by the Grantee when it becomes exercisable, it shall not expire, but
shall be carried forward and shall be exercisable, on a cumulative basis, until
the Expiration Date (as hereinafter defined) or until earlier termination as
hereinafter provided.

      4. Term; Extent of Exercisability.
      ----------------------------------

            (a)   Term.

                  (i) The Option shall expire as to each installment amount on
                  the date set forth next to each such amount on the signature
                  page to this Agreement (the "Expiration Date"), subject to
                  earlier termination as herein provided.

                  (ii) In the event a Grantee's employment or service is
                  terminated by the Company for any reason other than
                  "disability", death or for "cause" (collectively, a
                  "Termination without cause"), any Option held by the Grantee
                  shall become one hundred percent vested and fully exercisable
                  for the one year period, except in the case of the first year
                  of an Option's term in which case the exercise period shall be
                  two years, after the date on which the Grantee's employment or
                  service is terminated by the Company, but in any event no
                  later than the date of expiration of the Option term.

                  (iii) In the event the Grantee's employment or service is
                  terminated by the Company for "cause", any Option held by the
                  Grantee shall terminate as of the date the Grantee's
                  employment or service is terminated by the Company and the
                  Grantee shall automatically forfeit all shares underlying any
                  exercised portion of an Option for which the Company has not
                  yet delivered the share certificates, upon refund by the
                  Company of the Exercise Price paid by the Grantee for such
                  shares.

                  (iv) In the event the Grantee's employment or service is
                  terminated by the Company on account of Grantee's
                  "disability", any Option held by the Grantee shall become one
                  hundred percent vested and fully exercisable by the Grantee
                  and shall terminate unless exercised within one year after the
                  date on which the Grantee's employment or service is
                  terminated by the Company, but in any event no later than the
                  date of expiration of the Option term.


                                       2
<PAGE>


                  (v) In the event of the death of the Grantee, any Option held
                  by the Grantee shall become one hundred percent vested and
                  fully exercisable by the Grantee and shall terminate unless
                  exercised within then later to occur of one year after the
                  date on which the Grantee's employment or service is
                  terminated by the Company or six months after the probate of
                  the Grantee's estate, but in any event, no later than the date
                  of expiration of the Option term.

                  (vi) In the event a Grantee terminates his or her employment
                  with or services to the Company at his or her own volition,
                  any Option which is otherwise exercisable by the Grantee shall
                  terminate unless exercised within six months, except in the
                  case of the first year of an Option's term in which case the
                  exercise period shall be one year, after the date on which the
                  Grantee's employment with or service to the Company is
                  terminated, but in no event later than the date of expiration
                  of the Option term. Any of the Grantee's Options that are not
                  exercisable as of the date on which the Grantee's employment
                  with or service to the Company is terminated shall terminate
                  as of such date unless the Committee determines otherwise.

                  (vii) Notwithstanding the provisions of Section 4(a)(ii)
                  above, if the Grantee's employment or service is terminated by
                  the Company on account of a "termination without cause" during
                  the one year period following a Change of Control, as such
                  term is defined in the 2001 Plan, any Option held by the
                  Grantee shall become one hundred percent vested and fully
                  exercisable for the two year period after the date on which
                  the Grantee's employment or service is terminated by the
                  Company, but in no event later than the date of expiration of
                  the Option term.

                  (viii) For purposes of this Section 4(a):

                  (A)   The term "Company" shall mean the Company and its parent
                        and subsidiary corporations, or any successor thereto.
                  (B)   The term "disability" shall mean a Grantee's becoming
                        disabled within the meaning of section 22(e)(3) of the
                        Code.
                  (C)   The term "termination for cause" shall mean, except to
                        the extent specified otherwise by the Committee that the
                        Grantee has materially breached his or her employment or
                        service contract with the Company, or has been engaged
                        in fraud, embezzlement, theft, commission of a felony in
                        the course of his or her employment or service which is
                        injurious to the Company, or has disclosed trade secrets
                        or confidential information of the Company to persons


                                       3
<PAGE>


                        not entitled to receive such information. If this clause
                        (C) conflicts with the definition of "Cause" or
                        "termination for cause" (or any similar definition) in
                        an employment or service agreement between the Company
                        and the Grantee, the terms of the employment or service
                        agreement shall govern.

      5. Manner of Exercise of Option.
      --------------------------------

            (a)   To the  extent  that the right to  exercise  the  Option has
            accrued and is in effect,  the Option may be  exercised in full or
            in part by  giving  written  notice  to the  Company  stating  the
            number of Shares as to which  the  Option is being  exercised  and
            accompanied  by  payment  in full  for  such  Shares.  No  partial
            exercise  may be made for less than one hundred  (100) full Shares
            of Common  Stock.  Payment  shall be made in  accordance  with the
            terms  of  the  2001  Plan.  Upon  such  exercise,  delivery  of a
            certificate  for paid-up,  non-assessable  Shares shall be made at
            the principal  office of the Company to the person  exercising the
            Option,  not less than fifteen  (15) and not more than  forty-five
            (45) days from the date of receipt of the notice by the Company.

            (b)   The  Company  shall  at all  times  during  the  term of the
            Option  reserve  and keep  available  such number of Shares of its
            Common Stock as will be sufficient to satisfy the  requirements of
            the Option.

      6. Non-Transferability.
      -----------------------

      Except as provided below, only the Grantee or his or her authorized
representative may exercise rights under an Option. A Grantee may not transfer
options except (i) by will, (ii) by the laws of descent and distribution, (iii)
to the Company (as contemplated by Rule 16b-3 of the Exchange Act, (iv) pursuant
to a domestic relations order (as defined under the Code or Title I of the
Employee Retirement Income Security Act of 1974, as amended, or the regulations
thereunder), or (v) as otherwise permitted by the Committee. When a Grantee
dies, the personal representative or other person entitled to succeed to the
rights of the Grantee ("Successor Grantee") may exercise such rights. A
Successor Grantee must furnish proof satisfactory to the Company of his or her
right to receive the Option under the Grantee's will or under the applicable
laws of descent and distribution.

      7. Representation Letter and Investment Legend.
      -----------------------------------------------

      In the event that for any reason the Shares to be issued upon exercise of
the Option shall not be effectively registered under the Securities Act of 1933
(" 1933 Act"), upon any date on which the Option is exercised in whole or in
part, the person exercising the Option shall give a written representation to
the Company in the form attached hereto as Exhibit 1 and the Company shall place
an "investment legend", so-called, as described in Exhibit 1, upon any


                                       4
<PAGE>


certificate for the Shares issued by reason of such exercise.

      8. Adjustments on Changes in Capitalization.
      --------------------------------------------

      Adjustments on changes in capitalization and the like shall be made in
accordance with the 2001 Plan, as in effect on the date of this Option.

      9. No Special Employment Rights.
      --------------------------------

      The provisions of this Section 9 are applicable only to Grantees who are
employees of the Company. Nothing contained in this Option shall be construed or
deemed by any person under any circumstances to bind the Company to continue the
employment of the Grantee for the period within which this Option may be
exercised. However, during the period of the Grantee's employment, the Grantee
shall render diligently and faithfully the services which are assigned to the
Grantee from time to time by the Board of Directors or by the executive officers
of the Company and shall at no time take any action which directly or indirectly
would be inconsistent with the best interests of the Company.

      10. Rights as a Stockholder.
      ----------------------------

      The Grantee shall have no rights as a stockholder with respect to any
Shares which may be purchased by exercise of this Option unless and until a
certificate or certificates representing such Shares are duly issued and
delivered to the Grantee.

      11. Withholding Taxes.
      ----------------------

      Whenever Shares are to be issued upon exercise of this Option, the Company
shall have the right to require the Grantee to remit to the Company an amount
sufficient to satisfy all Federal, state and local withholding tax requirements
prior to the delivery of any certificate or certificates for the Shares. The
Company may agree to permit the Grantee to authorize the Company to withhold
Shares of Common Stock purchased upon exercise of the Option to satisfy the
above-mentioned withholding requirement; provided, however, no such agreement
may be made by an Grantee who is an officer or director within the meaning of
Section 16 of the Securities Exchange Act of 1934, as amended, except pursuant
to a standing election to so withhold Shares of Common Stock purchased upon
exercise of the Option, such election to be made in the form set forth in
Exhibit 2 hereto and to be made not less than six (6) months prior to such
exercise. Such election may be revoked only upon providing six (6) months prior
written notice to the Company.



IN WITNESS WHEREOF, the Company has caused this Agreement to be executed,  and


                                       5
<PAGE>


the Grantee has  hereunto  set his or her hand,  all as of the 26th day of May
2004.

                                    LIFE MEDICAL SCIENCES, INC.


                                    By:    /s/ Robert P. Hickey
                                           --------------------
                                    Title:   President & CEO


                                    GRANTEE

                                    Print Name: Eli Pines, Ph.D.
                                                ----------------


                                    Sign Name: --------------------------------

                                    Address: -----------------------------------

                                             -----------------------------------

                                    Social Security Number: -------------------



                               OPTION INFORMATION
                               ------------------

Total Number of Shares Underlying Option:  600,000


                    VESTING, PRICING & EXPIRATION SCHEDULE
                    --------------------------------------

   Vesting Date   Number of Shares      Exercise Price       Expiration Date
   ------------   ----------------      --------------       ---------------
   May 24, 2004        200,000             $0.45               May 24, 2011
   May 24, 2005        200,000             $0.55               May 24, 2012
   May 24, 2006        200,000             $0.65               May 24, 2013


                                       6
<PAGE>


EXHIBIT 1
                            TO STOCK OPTION AGREEMENT
                            -------------------------

Gentlemen:

      In connection with the exercise by me of an option to purchase shares of
Common Stock, $.001 par value, of Life Medical Sciences, Inc. (the "Company"), I
hereby acknowledge that I have been informed as follows:

      1. The shares of Common Stock of the Company to be issued to me pursuant
to the exercise of said option (the "Shares") have not been registered under the
Securities Act of 1933, as amended (the "Securities Act") and, accordingly, must
be held indefinitely unless the Shares are subsequently registered under the
Securities Act, or an exemption from such registration is available.

      2. Routine sales of securities made in reliance upon Rule 144 under the
Securities Act can be made only after the holding period provided by that Rule
has been satisfied, and, in any sale to which that Rule is not applicable,
registration or compliance with some other exemption under the Securities Act
will be required.

      3. The availability of Rule 144 is dependent upon adequate current public
information with respect to the Company being available and, at the time that I
may desire to make a sale pursuant to the Rule, the Company may neither wish nor
be able to comply with such requirement.

      In consideration of the issuance of certificates for the Shares to me, I
hereby represent and warrant that I am acquiring the Shares for my own account
for investment, and that I will not sell, pledge or transfer the Shares in the
absence of an effective registration statement covering the same, except as
permitted by the provisions of Rule 144, if applicable, or some other applicable
exemption under the Securities Act. In view of this representation and warranty,
I agree that there may be affixed to the certificates for the Shares to be
issued to me, and to all certificates issued hereafter representing the Shares
(until in the opinion of counsel, which opinion must be reasonably satisfactory
in form and substance to counsel for the Company, it is no longer necessary or
required) a legend as follows:

      "The securities represented by this certificate have not been registered
      under the Securities Act of 1933, as amended, and were acquired by the
      registered holder pursuant to a representation and warranty that such
      holder was acquiring the Shares for his own account and for investment,
      with no intention of transfer or disposition of the same in violation of
      the registration requirements of that Act. These securities may not be
      sold, pledged, or transferred in the absence of an effective registration
      statement under such Act, or an opinion of counsel, which opinion is
      reasonably satisfactory to counsel to the Company, to the effect that
      registration is not required under such Act."


                                       7
<PAGE>


      I further agree that the Company may place a stop transfer order with its
transfer agent, prohibiting the transfer of the Shares, so long as the legend
remains on the certificates representing the Shares.

                                    Very truly yours,




Dated: _____________


                                       8
<PAGE>


                                    EXHIBIT 2
                            TO STOCK OPTION AGREEMENT
                            -------------------------

Gentlemen:

      The undersigned Grantee hereby elects and agrees that, whenever the
undersigned exercises a stock option (including any options which now or may
hereafter be granted), Life Medical Sciences, Inc. (the "Company") shall
withhold from that exercise such number of Shares equal in value to the federal
and state withholding taxes due upon such exercise. The undersigned further
acknowledges and agrees that this election may not be revoked without six (6)
months' prior written notice to the Company.

                                GRANTEE:



                                ------------------------------------------
                                               (Signature)



                                ------------------------------------------
                                                (Print Name)


                                        9