Document:

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                                                                     EXHIBIT 4.3

                           NEOGENE TECHNOLOGIES, INC.

                          REGISTRATION RIGHTS AGREEMENT

                               SEPTEMBER 21, 2000
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                                TABLE OF CONTENTS

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1.       Definitions; Registration Rights....................................................           1
         1.1      Definitions................................................................           1
         1.2      Company Registration.......................................................           3
         1.3      Form S-3 Registration......................................................           4
         1.4      Obligations of the Company.................................................           4
         1.5      Furnish Information........................................................           6
         1.6      Expenses of Registration...................................................           6
         1.7      Delay of Registration......................................................           6
         1.8      Indemnification............................................................           6
         1.9      Reports Under Securities Exchange Act of 1934..............................           9
         1.10     Assignment of Registration Rights..........................................           9
         1.11     Market-Standoff Agreement..................................................          10
         1.12     Termination of Registration Rights.........................................          10

2.       Miscellaneous.......................................................................          11
         2.1      Entire Agreement...........................................................          11
         2.2      Recapitalizations, Etc.....................................................          11
         2.3      Successors and Assigns.....................................................          11
         2.4      Amendments and Waivers.....................................................          11
         2.5      Notices....................................................................          11
         2.6      Severability...............................................................          12
         2.7      Delays or Omissions; Remedies Cumulative...................................          12
         2.8      Attorney's Fees............................................................          12
         2.9      Governing Law..............................................................          12
         2.10     Counterparts...............................................................          12
         2.11     Titles and Subtitles.......................................................          13
         2.12     Aggregation of Stock.......................................................          13
         2.13     Confidentiality............................................................          13
         2.14     Additional Parties.........................................................          13
         2.15     Independent Nature of Holders' Obligations and Rights......................          13
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                           NEOGENE TECHNOLOGIES, INC.

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made as of
September 21, 2000, among NeoGene Technologies, Inc., a California corporation
(the "Company"), each of the parties identified on the signature page hereto as
a Purchaser (each a "Purchaser," and collectively, the "Purchasers"),
NeoTherapeutics, Inc., a Delaware corporation ("NeoTherapeutics"), and Olivier
Civelli, an individual ("Civelli"), Hans-Peter Nothacker, an individual
("Nothacker") and Rainer Reinscheid, an individual ("Reinscheid"). Each of
NeoTherapeutics, Civelli, Nothacker and Reinscheid is referred to herein as a
"Founder".

                                    RECITALS

         The Company, NeoTherapeutics and the Purchasers are parties to a
Securities Purchase Agreement (the "Purchase Agreement") of even date herewith
pursuant to which the Company desires to sell to the Purchasers and the
Purchasers desire to purchase from the Company shares of the Company's Series A
Preferred Stock and warrants to purchase shares of the Common Stock of the
Company (the "Warrants"). A condition to the Purchasers' obligations under the
Purchase Agreement is that the Company and the Purchasers enter into this
Agreement in order to provide the Purchasers with certain rights to register
shares of the Company's Common Stock issuable upon (i) conversion of the Series
A Preferred Stock held by the Purchasers and (ii) exercise of the Warrants. The
Company and the Founders each desire to induce the Purchasers to purchase shares
of Series A Preferred Stock and the Warrants pursuant to the Purchase Agreement
by agreeing to the terms and conditions set forth herein.

                                    AGREEMENT

         The parties agree as follows:

         1.       DEFINITIONS; REGISTRATION RIGHTS.

                  1.1      DEFINITIONS.  For purposes of this Agreement:

                           (a) "Board" means the Board of Directors of the
Company, as the same shall be constituted from time to time.

                           (b) "Common Stock" means the Common Stock no par
value of the Company.

                           (c) "Exempt Registration" means a registration
statement relating to the sale of securities by the Company pursuant to a stock
option, stock purchase or similar benefit plan or an SEC Rule 145 transaction or
any other registration statement that would not customarily provide for the sale
of secondary equity shares for cash.
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                           (d) "Form S-3" means such form under the Securities
Act as in effect on the date hereof or any successor form under the Securities
Act that is intended to be used as a short form for the registration of
distributions of secondary shares.

                           (e) "Founders' Stock" means shares of Common Stock
held by NeoTherapeutics and shares of Common Stock issued to Civelli, Nothacker
and Reinscheid pursuant to those certain Restricted Stock Purchase Agreements
dated as of June 6, 2000.

                           (f) "Holder" means any person owning or having the
right to acquire Registrable Securities or any assignee thereof in accordance
with Section 1.10 of this Agreement.

                           (g) "person" means any individual, corporation,
partnership, limited liability company, trust, business, association or
government or political subdivision thereof, governmental agency or other
entity.

                           (h) "Qualified IPO" means the firm commitment
underwritten public offering by the Company of shares of its Common Stock
pursuant to a registration statement on Form S-1 (or any successor form) under
the Securities Act, which results in aggregate gross cash proceeds to the
Company of $25,000,000, and that is based on a pre-money valuation of the
Company of at least $80,000,000.

                           (i) "Preferred Stock" means the Series A Preferred
Stock of the Company.

                           (j) "register," "registered," and "registration"
refer to a registration effected by preparing and filing a registration
statement or similar document in compliance with the Securities Act and the
declaration or ordering of effectiveness of such registration statement or
document.

                           (k) The term "Registrable Securities" means (i) the
shares of Common Stock issuable or issued upon conversion of the Preferred
Stock, (ii) shares of Common Stock issuable or issued upon exercise of the
Warrants, (iii) the Founders' Stock, (iv) any other shares of Common Stock of
the Company issued as (or issuable upon the conversion or exercise of any
warrant, right or other security which is issued as) a dividend or other
distribution with respect to, or in exchange for or in replacement of, the
shares listed in clauses (i), (ii), (iii) and this clause (iv); provided,
however, that the foregoing definition shall exclude in all cases any
Registrable Securities sold or transferred by a Holder in a transaction in which
such Holder's rights under this Agreement are not assigned. Notwithstanding the
foregoing, securities shall only be treated as Registrable Securities if and so
long as they have not been (A) sold to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction, or (B)
sold in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act under Section 4(1) thereof so that all
transfer restrictions, and restrictive legends with respect thereto, if any, are
removed upon the consummation of such sale.

                           (l) The number of shares of "Registrable Securities
then outstanding" shall equal the number of shares of Common Stock outstanding
which are, and the number of shares of Common Stock issuable pursuant to then
exercisable or convertible securities which are, Registrable Securities.

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                           (m) "SEC" means the Securities and Exchange
Commission or any other federal agency at the time administering the Securities
Act.

                           (n) "Securities Act" means the Securities Act of
1933, as amended (the "Securities Act").

                  1.2      COMPANY REGISTRATION.

                           (a) INITIATION. If (but without any obligation to do
so) the Company proposes to register (including for this purpose a registration
effected by the Company for stockholders other than the Holders) any of its
stock in connection with the public offering of such securities solely for cash
(other than an Exempt Registration), the Company shall, at such time, promptly
give each Holder notice of such registration. Upon the written request of each
Holder given within 20 days after receipt by such Holder of the Company's
notice, the Company shall, subject to the provisions of Section 1.2(b), cause to
be registered all of the Registrable Securities that each such Holder has
requested to be registered.

                           (b) UNDERWRITTEN OFFERING. In connection with any
offering involving an underwriting of shares of the Company's capital stock, the
Company shall not be required under Section 1.2(a) to include any of the
Holders' securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by
it (or by other persons entitled to select the underwriters), and then only in
such quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by stockholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata (to the nearest 100 shares) among the
selling stockholders according to the total amount of securities entitled to be
included therein owned by each selling stockholder or in such other proportions
as shall mutually be agreed to by such selling stockholders) but in no event
shall any securities held by a Founder be included if any securities held by any
selling Holder are excluded. For purposes of the preceding apportionment, for
any participating Holder that is a partnership, limited liability company or
corporation, the partners, retired partners, members, retired members and
stockholders of such Holder, or the estates and family members of any such
partners, members, retired partners or members and any trusts for the benefit of
any of the foregoing persons shall be deemed to be a single "selling
stockholder," and any pro-rata reduction with respect to such "selling
stockholder" shall be based upon the aggregate amount of shares carrying
registration rights owned by all Persons included in such "selling stockholder,"
as defined in this sentence.

                           (c) RIGHT TO TERMINATE REGISTRATION. The Company
shall have the right to terminate or withdraw any registration initiated by it
under this Section 1.2 prior to the effectiveness of such registration whether
or not any Holder has elected to include Registrable Securities in such
registration.

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                  1.3 FORM S-3 REGISTRATION. In case the Company shall receive
from any Holder or Holders of not less than twenty-five percent (25%) of the
Registrable Securities then outstanding a written request or requests that the
Company effect a registration on Form S-3 and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, the Company will:

                           (a) promptly give written notice of the proposed
registration, and any related qualification or compliance, to all other Holders;
and

                           (b) as soon as practicable, effect such registration
and all such qualifications and compliances as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such
Holder's or Holders' Registrable Securities as are specified in such request,
together with all or such portion of the Registrable Securities of any other
Holder or Holders joining in such request as are specified in a written request
given within 15 days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 1.3: (i) if
Form S-3 is not available for such offering by the Holders; (ii) if the Holders,
together with the holders of any other securities of the Company entitled to
inclusion in such registration, propose to sell Registrable Securities and such
other securities (if any) at an aggregate price to the public (net of any
underwriters' discounts or commissions) of less than $1,000,000; (iii) if the
Company shall furnish to the Holders a certificate signed by the President of
the Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
shareholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
registration statement for a period of not more than 60 days after receipt of
the request of the Holder or Holders under this Section 1.3; provided, however,
that the Company shall not utilize this right more than once in any twelve month
period; (iv) if the Company has, within the twelve (12) month period preceding
the date of such request, already effected two registrations on Form S-3 for the
Holders pursuant to this Section 1.3; (v) in any particular jurisdiction in
which the Company would be required to qualify to do business or to execute a
general consent to service of process in effecting such registration,
qualification or compliance; or (vi) during the period ending one hundred eighty
(180) days after the effective date of a registration statement subject to
Section 1.2.

                           (c) Subject to the foregoing, the Company shall file
a registration statement covering the Registrable Securities and other
securities so requested to be registered as soon as practicable after receipt of
the request or requests of the Holders.

                  1.4 OBLIGATIONS OF THE COMPANY. Whenever required under this
Section 1 to effect the registration of any Registrable Securities, the Company
shall, as expeditiously as reasonably possible:

                           (a) Prepare and file with the SEC a registration
statement with respect to such Registrable Securities and use its best efforts
to cause such registration statement to become effective.

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                           (b) Prepare and file with the SEC such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act.

                           (c) Furnish to the Holders such numbers of copies of
a prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents as they may
reasonably request in order to facilitate the disposition of such Registrable
Securities.

                           (d) Use its reasonable best efforts to register and
qualify the securities covered by such registration statement under such other
securities or Blue Sky laws of such jurisdictions as shall be reasonably
requested by the Holders, provided that the Company shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions.

                           (e) In the event of any underwritten public offering,
enter into and perform its obligations under an underwriting agreement with the
managing underwriter of such offering in usual and customary form and consistent
with the other provisions of this Agreement. Each Holder participating in such
underwriting shall also enter into and perform its obligations under such an
agreement.

                           (f) Promptly notify each Holder covered by the
registration statement at any time when the Company becomes aware of the
happening of any event as a result of which the registration statement or the
prospectus included in such registration statement or any supplement to the
prospectus (as then in effect) contains any untrue statement of a material fact
or omits to state a material fact necessary to make the statements there in (in
the case of the prospectus, in light of the circumstances under which they were
made) not misleading or, if for any other reason it shall be necessary during
such time period to amend or supplement the registration statement or the
prospectus in order to comply with the Securities Act, whereupon, in either
case, each Holder shall immediately cease to use such registration statement or
prospectus for any purpose and, as promptly as practicable thereafter, the
Company shall prepare and file with the SEC, and furnish without charge to the
appropriate Holders and managing underwriters, if any, a supplement or amendment
to such registration statement or prospectus which will correct such statement
or omission or effect such compliance and such copies thereof as the Holders and
any underwriters may reasonably request.

                           (g) Cause all such Registrable Securities registered
pursuant hereunder to be listed on each securities exchange or over-the-counter
market on which similar securities issued by the Company are then listed, if
applicable.

                           (h) Provide a transfer agent and registrar for such
Registrable Securities and a CUSIP number for all such Registrable Securities,
in each case not later than the effective date of such registration.

                           (i) Use its reasonable best efforts to furnish, at
the request of any Holder requesting registration of Registrable Securities
pursuant to this Section 1, on the date that such Registrable Securities are
delivered to the underwriters for sale in connection with a

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registration pursuant to this Section 1, if such securities are being sold
through underwriters, or, if such securities are not being sold through
underwriters, on the date that the registration statement with respect to such
securities becomes effective, (i) an opinion, dated such date, of the counsel
representing the Company for the purposes of such registration, in form and
substance as is customarily given to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a letter dated such date, from
the independent certified public accountants of the Company, in form and
substance as is customarily given by independent certified public accountants to
underwriters in an underwritten public offering, addressed to the underwriters,
if any, and to the Holders requesting registration of Registrable Securities (to
the extent the then applicable standards of professional conduct permit said
letter to be addressed to the Holders).

                  1.5 FURNISH INFORMATION. It shall be a condition precedent to
the obligations of the Company to take any action pursuant to this Section 1
with respect to the Registrable Securities of any selling Holder that such
Holder shall furnish to the Company such information regarding itself, the
Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities.

                  1.6      EXPENSES OF REGISTRATION.

                           (a) COMPANY REGISTRATION. All expenses other than
underwriting discounts and commissions incurred in connection with registrations
initiated pursuant to Section 1.2, including all registration, filing and
qualification fees, printers' and accounting fees, fees and disbursements of
counsel for the Company, and the reasonable fees up to a maximum of $5,000 and
disbursements of one counsel for the selling Holders selected by Holders selling
a majority of the subject Registrable Securities with the approval of the
Company, which approval shall not be unreasonably withheld, shall be borne by
the Company.

                           (b) REGISTRATION ON FORM S-3. All expenses incurred
in connection with a registration requested pursuant to Section 1.3, including
(without limitation) all registration, filing, qualification, printers' and
accounting fees and the reasonable fees and disbursements of one counsel for the
selling Holder or Holders selected by them, and counsel for the Company shall be
borne by the Company, and any underwriters' discounts or commissions associated
with Registrable Securities, shall be borne pro rata by the Holder or Holders
participating in the Form S-3 Registration.

                  1.7 DELAY OF REGISTRATION. No Holder shall have any right to
obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 1.

                  1.8 INDEMNIFICATION. In the event any Registrable Securities
are included in a registration statement under this Section 1:

                           (a) INDEMNIFICATION BY THE COMPANY. To the extent
permitted by law, the Company will indemnify and hold harmless each Holder, any
underwriter (as defined in

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the Securities Act) for such Holder and each person, if any, who controls such
Holder or underwriter within the meaning of the Securities Act or the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), against any losses,
claims, damages, or liabilities (joint or several) to which they may become
subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a "Violation"): (i) any untrue statement
or alleged untrue statement of a material fact contained in such registration
statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, (ii) the omission or alleged
omission to state therein a material fact required to be stated therein, or
necessary to make the statements therein not misleading, or (iii) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law; and the Company will pay to
each such Holder, underwriter or controlling person, as incurred, any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability, or action; provided, however,
that the indemnity agreement contained in this subsection 1.8(a) shall not apply
to amounts paid in settlement of any such loss, claim, damage, liability, or
action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable to
any Holder, underwriter or controlling person for any such loss, claim, damage,
liability, or action to the extent that it arises out of or is based upon a
Violation which occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
any such Holder, underwriter or controlling person.

                           (b) INDEMNIFICATION BY THE HOLDERS. To the extent
permitted by law, each selling Holder will indemnify and hold harmless the
Company, each of its directors, each of its officers who has signed the
registration statement, each person, if any, who controls the Company within the
meaning of the Securities Act, any underwriter, any other Holder selling
securities in such registration statement and any controlling person of any such
underwriter or other Holder, against any losses, claims, damages, or liabilities
(joint or several) to which any of the foregoing persons may become subject,
under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages, or liabilities (or actions in respect
thereto) arise out of or are based upon any Violation, in each case to the
extent (and only to the extent) that such Violation occurs in reliance upon and
in conformity with written information furnished by such Holder expressly for
use in connection with such registration; and each such Holder will pay, as
incurred, any legal or other expenses reasonably incurred by any person intended
to be indemnified pursuant to this Section 1.8(b), in connection with
investigating or defending any such loss, claim, damage, liability, or action;
provided, however, that the indemnity agreement contained in this Section 1.8(b)
shall not apply to amounts paid in settlement of any such loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Holder, which consent shall not be unreasonably withheld; provided, that in no
event shall any indemnity under this Section 1.8(b) exceed the net proceeds from
the offering received by such Holder, except in the case of willful fraud by
such Holder.

                           (c) PROCEDURES. Promptly after receipt by an
indemnified party under this Section 1.8 of notice of the commencement of any
action (including any governmental action), such indemnified party will, if a
claim in respect thereof is to be made against any

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indemnifying party under this Section 1.8, deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have
the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right
to retain one separate counsel, with the reasonable fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such
action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 1.8, but the omission so to deliver written
notice to the indemnifying party will not relieve it of any liability that it
may have to any indemnified party otherwise than under this Section 1.8. No
indemnifying party, in the defense of any such claim or litigation, shall,
except with the consent of each indemnified party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect to such claim or litigation. The
indemnity agreements contained in this Section 1.8 shall not apply to amounts
paid in settlement of any loss, claim, damage, liability or action if such
settlement is effected without the consent of the indemnifying party.

                           (d) CONTRIBUTION. If the indemnification provided for
in this Section 1.8 is held by a court of competent jurisdiction to be
unavailable to an indemnified party with respect to any loss, liability, claim,
damage or expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party hereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage, or expense in such proportion as is appropriate to reflect the
relative fault of the indemnifying party on the one hand and of the indemnified
party on the other in connection with the statements or omissions that resulted
in such loss, liability, claim, damage or expense as well as any other relevant
equitable considerations; provided, that in no event shall any contribution by a
Holder under this Section 1.8(d) exceed the net proceeds from the offering
received by such Holder, except in the case of willful fraud by such Holder. The
relative fault of the indemnifying party and of the indemnified party shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified
party and the parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

                           (e) UNDERWRITING AGREEMENT. Notwithstanding the
foregoing, to the extent that the provisions on indemnification and contribution
contained in the underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing provisions, the
provisions in the underwriting agreement shall control.

                                      -8-
<PAGE>   11
                           (f) SURVIVAL. The obligations of the Company and
Holders under this Section 1.8 shall survive the completion of any offering of
Registrable Securities in a registration statement under this Section 1, and
otherwise.

                  1.9 REPORTS UNDER SECURITIES EXCHANGE ACT OF 1934. With a view
to making available to the Holders the benefits of Rule 144 promulgated under
the Securities Act and any other rule or regulation of the SEC that may at any
time permit a Holder to sell securities of the Company to the public without
registration, the Company agrees to:

                           (a) make and keep public information available, as
those terms are understood and defined in SEC Rule 144, at all times after the
effective date of the first registration statement filed by the Company for the
offering of its securities to the general public so long as the Company remains
subject to the periodic reporting requirements under Sections 13 or 15(d) of the
Exchange Act;

                           (b) file with the SEC in a timely manner all reports
and other documents as may be required of the Company under the Securities Act
and the Exchange Act; and

                           (c) furnish to any Holder, so long as the Holder owns
any Registrable Securities, forthwith upon request (i) a written statement by
the Company that it has complied with the reporting requirements of SEC Rule
144, the Securities Act and the Exchange Act (at any time after it has become
subject to such reporting requirements), (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed
by the Company, and (iii) such other information as may be reasonably requested
in availing any Holder of any rule or regulation of the SEC which permits the
selling of any such securities without registration or pursuant to such form.

                  1.10 ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause
the Company to register securities granted Holders under Sections 1.2 and 1.3
may be assigned to a transferee or assignee in connection with any transfer or
assignment of Registrable Securities by a Holder; provided, that (a) such
transfer may otherwise be effected in accordance with applicable securities laws
and restrictions on transfer agreed upon by the Holder and the Company
(including those set forth in the Purchase Agreement), (b) notice of such
assignment is given to the Company, (c) such transferee or assignee (i) is a
wholly-owned subsidiary or constituent partner, retired partner, member, retired
member or shareholder of such Holder, or (ii) is a spouse, ancestor or
descendant or (iii) is a trust for the benefit of such Holder or any spouse,
ancestor or descendant of such Holder, or (iv) acquires from such Holder at
least 50,000 Registrable Securities (as appropriately adjusted for stock splits
and the like) and (d) such transferee or assignee agrees to be bound by all
provisions of this Agreement. Notwithstanding the foregoing all assignees and
transferees of a Holder who acquire less than 50,000 Registrable Securities (as
appropriately adjusted for stock splits and the like) from such Holder shall
have a single attorney-in-fact for the purpose of exercising any rights,
receiving notices or taking any action under Section 1.

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                  1.11     MARKET-STANDOFF AGREEMENT.

                           (a) MARKET-STANDOFF PERIOD; AGREEMENT. In connection
with the initial public offering of the Company's securities and upon request of
the Company or the underwriters managing such offering of the Company's
securities, each Holder hereby agrees not to sell, make any short sale of, loan,
grant any option for the purchase of, or otherwise dispose of any securities of
the Company (other than any disposed of in the registration and those acquired
by the Holder in the registration or thereafter in open market transactions)
without the prior written consent of the Company or such underwriters, as the
case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as may be requested by the Company or such managing
underwriters and to execute an agreement reflecting the foregoing as may be
requested by the underwriters at the time of the Company's initial public
offering. In addition, the Holder agrees to be bound by similar restrictions,
and to sign a similar agreement, in connection with no more than one additional
registration statement filed after the closing date of the initial public
offering, provided, that the duration of the market-standoff period with respect
to such additional registration shall not exceed 90 days from the effective date
of such additional registration statement.

                           (b) LIMITATIONS. The obligations described in Section
1.11(a) shall apply only if all officers and directors of the Company and all
other persons with registration rights (whether or not pursuant to this
Agreement) enter into similar agreements. If the Company or the underwriter of
any public offering of the Company's securities waive or terminate any standoff
or lockup restrictions imposed on any holder of securities of the Company, then
such waiver or termination shall be granted to all Holders subject to standoff
or lockup restrictions pro rata based on the number of shares of Common Stock
beneficially held by such holder and the Holders. From and after the date of
this Agreement, the Company shall use its best efforts to ensure that all
holders of capital stock of the Company agree to be bound by terms substantially
similar to those set forth in this Section 1.11.

                           (c) STOP-TRANSFER INSTRUCTIONS. In order to enforce
the foregoing covenants, the Company may impose stop-transfer instructions with
respect to the securities of each Holder (and the securities of every other
person subject to the restrictions in Section 1.11(a)).

                           (d) TRANSFEREES BOUND. Each Holder agrees that it
will not transfer securities of the Company unless each transferee agrees in
writing to be bound by all of the provisions of this Section 1.11, provided that
this Section 1.11(d) shall not apply to transfers pursuant to a registration
statement or transfers after the 12-month anniversary of the effective date of
the Company's initial registration statement subject to this Section 1.11.

                  1.12 TERMINATION OF REGISTRATION RIGHTS. No Holder shall be
entitled to exercise any registration right provided for in this Section 1 after
the earlier of (i) three years following the consummation of a Qualified IPO, or
(ii) such time as Rule 144 or another similar exemption under the Securities Act
is available for the sale of all of such Holder's shares during a three-month
period without registration, without reference to Rule 144(k).

                                      -10-
<PAGE>   13
         2.       MISCELLANEOUS.

                  2.1 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof, and
any and all other written or oral agreements relating to the subject matter
hereof existing among any of the parties hereto are expressly canceled.

                  2.2 RECAPITALIZATIONS, ETC. The provisions of this Agreement
(including any calculation of share ownership) shall apply, to the full extent
set forth herein with respect to the Registrable Securities and to the Common
Stock, to any and all shares of capital stock of the Company or any capital
stock, partnership or member units or any other security evidencing ownership
interests in any successor or assign of the Company (whether by merger,
consolidation, sale of assets or otherwise) that may be issued in respect of, in
exchange for, or in substitution of the Common Stock by reason of any stock
dividend, split, combination, recapitalization, liquidation, reclassification,
merger, consolidation or otherwise.

                  2.3 SUCCESSORS AND ASSIGNS. Except as otherwise provided in
this Agreement, and subject to the restriction on transfer set forth in the
Purchase Agreement, the terms and conditions of this Agreement shall inure to
the benefit of and be binding upon the respective permitted successors and
assigns of the parties (including transferees of any of the Preferred Stock or
any Common Stock issued upon conversion thereof). Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties
hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.

                  2.4 AMENDMENTS AND WAIVERS. Any term of this Agreement may be
amended or waived only with the written consent of the Company and the holders
of at least a majority of the Registrable Securities then outstanding. The
Purchasers and their successors and assigns acknowledge that by operation of
this Section 2.4, the holders of at least a majority of the then outstanding
Registrable Securities, when acting together with the Company, will have the
right and power to diminish or eliminate any rights or increase any or all
obligations under this Agreement.

                  2.5 NOTICES. Any notice required or permitted by this
Agreement shall be in writing and shall be deemed sufficient upon delivery, when
delivered personally or by overnight courier or sent by telegram or fax, or
forty-eight (48) hours after being deposited in the U.S. mail, as certified or
registered mail, with postage prepaid, addressed (a) if to the Company or
NeoTherapeutics, to 157 Technology Drive, Irvine, California 92618, Attention:
Chief Financial Officer or via facsimile to (949) 788-6706, with a copy to
Latham & Watkins, 650 Town Center Drive, Suite 2000, Costa Mesa, California
92626-1925, Attention: Alan W. Pettis, or via facsimile to (714) 755-8290, (b)
if to a Founder other than NeoTherapeutics, to such party's address or fax
number set forth on the signature pages hereto, or (c) if to Purchaser, to such
party's address or fax number set forth on the signature page hereto, with a
copy to Robinson Silverman Pearce Aronsohn & Berman LLP, 1290 Avenue of the
Americas, New York, New York 10104, attention Eric L. Cohen, Esq.

                                      -11-
<PAGE>   14
                  2.6 SEVERABILITY. If one or more provisions of this Agreement
are held to be unenforceable under applicable law, the parties agree to
renegotiate such provision in good faith. Until the parties have agreed upon an
enforceable replacement for such provision, (a) such provision shall be excluded
from this Agreement, (b) the balance of the Agreement shall be interpreted as if
such provision were so excluded and (c) the balance of the Agreement shall be
enforceable in accordance with its terms.

                  2.7 DELAYS OR OMISSIONS; REMEDIES CUMULATIVE. No delay or
omission to exercise any right, power or remedy accruing to any party under this
Agreement, upon any breach or default of any other party under this Agreement,
shall impair any such right, power or remedy of such non-breaching or
non-defaulting party nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence therein, or of or in any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of any party of any breach or default under this
Agreement, or any waiver on the part of any party of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing. All remedies, either under
this Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

                  2.8 ATTORNEY'S FEES. If any action at law or in equity
(including arbitration) is necessary to enforce or interpret the terms of any
this Agreement, the prevailing party shall be entitled to reasonable attorney's
fees, costs and necessary disbursements in addition to any other relief to which
such party may be entitled.

                  2.9 GOVERNING LAW. The corporate laws of the State of
California shall govern all issues concerning the relative rights of the Company
and its shareholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof. The Company
and each Purchaser hereby irrevocably submit to the exclusive jurisdiction of
the state and federal courts sitting in the City of New York, borough of
Manhattan, for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, or that such suit, action or proceeding is improper. Each of the
Company and each Purchaser hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by
receiving a copy thereof sent to the Company at the address in effect for
notices to it under this instrument and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing
contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.

                  2.10 COUNTERPARTS. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                                      -12-
<PAGE>   15
                  2.11 TITLES AND SUBTITLES. The titles and subtitles used in
this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

                  2.12 AGGREGATION OF STOCK. All shares of Company stock held or
acquired by affiliated Persons (including former and current partners, former
and current members and former and current stockholders) shall be aggregated
together for the purpose of determining the availability of any rights under
this Agreement.

                  2.13 CONFIDENTIALITY. Each Holder agrees that, except with the
prior written permission of the applicable party, it shall at all times keep
confidential and not divulge, furnish or make accessible to anyone any
confidential information, knowledge or data concerning or relating to the
business or financial affairs of the Company or any other party to which such
Holder has been or shall become privy by reason of this Agreement. The
provisions of this Section 2.13 shall be in addition to, and not in substitution
for, the provisions of any separate nondisclosure agreement executed by the
parties hereto with respect to the transactions contemplated hereby.

                  2.14 ADDITIONAL PARTIES. Persons who become "Purchasers" of
the Company's Series A Preferred Stock after the effective date of this
Agreement pursuant to and in accordance with the Purchase Agreement and who
execute signature pages to this Agreement shall become parties hereto, and no
consent or waiver of any other party hereto, other than the Company, shall be
required to add any such additional party.

                  2.15 INDEPENDENT NATURE OF HOLDERS' OBLIGATIONS AND RIGHTS.
The obligations of each Holder hereunder is several and not joint with the
obligations of any other Holder hereunder, and no Holder shall be responsible in
any way for the performance of the obligations of any other Holder hereunder.
Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be
deemed to constitute the Holders as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Holders
are in any way acting in concert with respect to such obligations or the
transactions contemplated by this Agreement. Each Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising
out of this Agreement, and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.

                            [Signature Page Follows]

                                      -13-
<PAGE>   16
         The parties have executed this Registration Rights Agreement as of the
date first above written.

<TABLE>
<CAPTION>
COMPANY:                                             PURCHASERS:

<S>                                                  <C>
NEOGENE TECHNOLOGIES, INC.                           MONTROSE INVESTMENTS LTD.

By:                                                  By:
   -----------------------------------------                -------------------------------------
                                 , President         Name:
   ------------------------------                           -------------------------------------
                                                     Title:
                                                            -------------------------------------

FOUNDERS:                                            Address:
                                                     Montrose Investments Ltd.
NEOTHERAPEUTICS, INC.                                300 Crescent Court, Suite 700
                                                     Dallas, TX 75201
                                                     Facsimile: (214) 758-1221
By:                                                  Attn: Will Rose and Kim Rozman
       -------------------------------------
       Alvin J. Glasky
       Chief Executive Officer
                                                     STRONG RIVER INVESTMENTS, INC.

Olivier Civelli                                      By:
                                                            -------------------------------------
Address:                                             Name:
         -----------------------------------                -------------------------------------
                                                     Title:
         -----------------------------------                -------------------------------------

         -----------------------------------
Fax:                                                 Address:
         -----------------------------------
                                                     Strong River Investments, Inc.
                                                     c/o Gonzalez-Ruiz 7 Aleman (BVI) Limited
                                                     Wickhams Cay I, Vanterpool Plaza
--------------------------------------------         P.O. Box 873
Hans-Peter Nothacker                                 Road Town, Tortolla, BVI
Address:
         -----------------------------------         Facsimile:
                                                                ---------------------------------
         -----------------------------------

         -----------------------------------
Fax:
         -----------------------------------

Rainer Reinscheid
Address:
         -----------------------------------

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

         -----------------------------------
Fax:
         -----------------------------------
</TABLE><PAGE>   1
                                                                     EXHIBIT 4.4

                              NEOTHERAPEUTICS, INC.

                          REGISTRATION RIGHTS AGREEMENT

         This Registration Rights Agreement (this "Agreement") is made and
entered into as of September 21, 2000, among NeoTherapeutics, Inc., a Delaware
corporation (the "Company"), and each of the other signatories hereto (each a
"Purchaser," and collectively, the "Purchasers").

         This Agreement is made pursuant to the Securities Purchase Agreement,
dated as of the date hereof, among the Company, NeoGene Technologies, Inc., a
California corporation and the Purchasers (the "Purchase Agreement").

         In consideration of the mutual covenants contained in the Purchase
Agreement and in this Agreement, the Company and the Purchasers hereby agree as
follows:

1.       Definitions

         Capitalized terms used and not otherwise defined herein that are
defined in the Purchase Agreement shall have the meanings given such terms in
the Purchase Agreement. As used in this Agreement, the following terms shall
have the following meanings:

         "Advice" shall have meaning set forth in Section 6(e).

         "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under common control with
such Person. For the purposes of this definition, "control," when used with
respect to any Person, means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms of "affiliated," "controlling" and "controlled" have meanings
correlative to the foregoing.

         "Business Day" means any day except Saturday, Sunday and any day which
shall be a federal legal holiday or a day on which banking institutions in the
State of New York and California generally are authorized or required by law or
other governmental action to close.

         "Closing Date" shall have the meaning set forth in the Purchase
Agreement.

         "Commission" means the Securities and Exchange Commission.

         "Common Stock" means the Company's common stock, $.001 par value per
share and any other securities into which such stock shall hereafter be
redistributed or recapitalized.

         "Effectiveness Date" means the 90th day following the Closing Date.

         "Effectiveness Period" shall have the meaning set forth in Section
2(a).
<PAGE>   2
         "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         "Filing Date" means the 30th day following the Closing Date, subject to
extension as provided in Section 2(b) below.

         "Holder" or "Holders" means the holder or holders, as the case may be,
from time to time of Registrable Securities.

         "Indemnified Party" shall have the meaning set forth in Section 5(c).

         "Indemnifying Party" shall have the meaning set forth in Section 5(c).

         "Losses" shall have the meaning set forth in Section 5(a).

         "NeoTherapeutics Debentures" means the Company's 5% Subordinated
Convertible Debentures due September __, 2005.

         "NeoTherapeutics Preferred" means the Company's Series B Convertible
Preferred Stock, par value $.001 per share.

         "NeoTherapeutics Warrants" shall have the meaning set forth in the
Purchase Agreement.

         "Person" means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

         "Proceeding" means an action, claim, suit, investigation or proceeding
(including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

         "Prospectus" means the prospectus included in a Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by such
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such Prospectus.

         "Registration Delay Payments" shall have the meaning set forth in
Section 2(e).

         "Registrable Securities" means the shares of Common Stock issuable upon
(i) conversion of the shares of NeoTherapeutics Preferred issued in exchange for
the Shares pursuant to the Purchase Agreement, (ii) conversion of the
NeoTherapeutics Debentures issued in exchange for the Shares or shares of
NeoTherapeutics Preferred pursuant to the Purchase Agreement and (iii) exercise
of the NeoTherapeutics Warrants; provided, that the foregoing

                                       2
<PAGE>   3
definition shall exclude in all cases any Registrable Securities sold or
transferred by a Holder in a transaction in which such Holder's rights under
this Agreement are not assigned.

         "Registration Statement" means the registration statement and any
additional registration statement contemplated by Section 2(a), including (in
each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference in such registration statement.

         "Rule 144" means Rule 144 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any rule or
regulation hereafter adopted by the Commission to replace such Rule.

         "Rule 415" means Rule 415 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any rule or
regulation hereafter adopted by the Commission to replace such Rule.

         "Rule 424" means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time, or any rule or
regulation hereafter adopted by the Commission to replace such Rule.

         "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

         "Shares" shall have the meaning set forth in the Purchase Agreement.

         "Special Counsel" means one special counsel to the Holders for which
the Holders will be reimbursed by the Company pursuant to Section 4.

         "Underwritten Registration or Underwritten Offering" means a
registration in connection with which securities of the Company are sold to an
underwriter for reoffering to the public pursuant to an effective registration
statement.

2.       Shelf Registration

         (a)      The Company shall prepare and file with the Commission on or
prior to the Filing Date a "Shelf" Registration Statement covering all
Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415, unless the Holders shall elect to effect an Underwritten Offering
pursuant to Section 2(d) hereof. The Registration Statement shall be on Form S-3
(except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-3, in which case such registration shall be on
another appropriate form in accordance herewith as the Holders may consent). The
Company shall use its best efforts to cause the Registration Statement to be
declared effective under the Securities Act as promptly as possible after the
filing thereof, but in any event prior to the Effectiveness Date, and shall use
its best efforts to keep such Registration Statement continuously effective
under the Securities Act until the date which is two years after the date that
the Registration

                                       3
<PAGE>   4
Statement is declared effective by the Commission or such earlier date when all
Registrable Securities covered by such Registration Statement have been sold or
may be sold without volume restrictions pursuant to Rule 144(k) as determined by
the counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company's transfer agent (the "Effectiveness
Period"), provided, that the Company shall not be deemed to have used its best
efforts to keep the Registration Statement effective during the Effectiveness
Period if it voluntarily takes any action that would result in the Holders not
being able to sell the Registrable Securities covered by such Registration
Statement during the Effectiveness Period, unless such action is required under
applicable law, is taken by the Company in good faith and for valid business
reasons, or the Company has filed a post-effective amendment to the Registration
Statement and the Commission has not declared it effective.

         (b)      If the Company in good faith expects to file a registration
statement, other than the Registration Statement, covering any of its securities
within 120 days of the Closing Date, the Company may extend the Filing Date to
the date of filing of such registration statement, and may effect the
registration of Registrable Securities required hereunder as a "piggyback"
registration in connection with such other registration, in which event the
registration statement filed in connection with such other registration shall be
deemed to be the Registration Statement for the purposes of this Agreement.

         (c)      The initial Registration Statement to be filed hereunder shall
include (but not be limited to) a number of shares of Common Stock equal to no
less than the sum of (i) 200% of the number of shares of Common Stock that would
be issuable upon conversion in full of the NeoTherapeutics Preferred, assuming
(A) that all of the Shares were exchanged for shares of NeoTherapeutics
Preferred as provided by the Purchase Agreement on the Closing Date, (B) that
all dividends are paid in shares of Common Stock, (C) that the NeoTherapeutics
Preferred remain outstanding for five years, and (D) that the conversion price
applicable to the NeoTherapeutics Preferred is 101% of the average of the ten
(10) lowest closing bid prices of the Common Stock during the thirty (30)
trading days preceding the Closing Date, and (ii) the maximum number of shares
of Common Stock issuable upon exercise in full of the NeoTherapeutics Warrants
(the sum of (i) and (ii), the "Initial Minimum").

         (d)      If the Holders of a majority of the Registrable Securities
then outstanding so elect, an offering of Registrable Securities pursuant to a
Registration Statement may be effected in the form of an Underwritten Offering.
In such event, and, if the managing underwriters advise the Company and such
Holders in writing that in their opinion the amount of Registrable Securities
proposed to be sold in such Underwritten Offering exceeds the amount of
Registrable Securities which can be sold in such Underwritten Offering, there
shall be included in such Underwritten Offering the amount of such Registrable
Securities which in the opinion of such managing underwriters can be sold, and
such amount shall be allocated pro rata among the Holders proposing to sell
Registrable Securities in such Underwritten Offering.

         (e)      If any of the Registrable Securities are to be sold in an
Underwritten Offering, the investment banker that will administer the offering
will be selected by the Holders of a majority of the Registrable Securities
included in such offering upon consultation with the

                                       4
<PAGE>   5
Company. No Holder may participate in any Underwritten Offering hereunder unless
such Holder (i) agrees to sell its Registrable Securities on the basis provided
in any underwriting agreements approved by the Persons entitled hereunder to
approve such arrangements and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such arrangements.

         (f)      If (i) a Registration Statement is not filed on or before the
Filing Date (if the Company files such Registration Statement without affording
the Holder the opportunity to review and comment on the same as required by
Section 3(a) hereof, the Company shall not be deemed to have satisfied this
clause (i)), or (ii) the Company fails to file with the Commission a request to
accelerate in accordance with Rule 12d1-2 promulgated under the Exchange Act
within five (5) days of the date that the Company is notified (orally or in
writing, whichever is earlier) by the Commission that a Registration Statement
will not be "reviewed" or is not subject to further review, or (iii) a
Registration Statement filed hereunder is not declared effective by the
Commission on or before the 30th day following the Effectiveness Date, or (iv)
after a Registration Statement has been declared effective by the Commission,
such Registration Statement is either not effective as to all Registrable
Securities required to be covered thereby for more than seven (7) consecutive
days throughout the Effectiveness Period or the Holders are not permitted for
any reason to make sales for more than seven (7) consecutive days thereunder
throughout the Effectiveness Period, or (v) an amendment to the Registration
Statement is not filed by the Company with the Commission within ten (10) days
of the Commission's notifying the Company that such amendment is required in
order for a Registration Statement to be declared effective, or (vi) trading in
the Common Stock shall be suspended from the NASDAQ (as defined herein) or a
Subsequent Market (as defined herein) for more than (3) consecutive Business
Days, or six (6) Business Days (which need not be consecutive days) in the
aggregate, throughout the Effectiveness Period, or (vii) the Company fails to
respond as promptly as reasonably possible, and in any event within ten days, to
any comments received from the Commission with respect to the Registration
Statement or any amendment thereto (any such failure or breach being referred to
as an "Event," and for purposes of clauses (i) and (iii) the date on which such
Event occurs, or for purposes of clause (ii) the date on which such five (5) day
period is exceeded, or for purposes of clause (iv) the date on which such seven
(7) consecutive day period is exceeded, or for purposes of clause (ii) the date
on which such five (5) day period is exceeded, or for purposes of clauses (v)
and (vii), the date on which such ten (10) day period is exceeded, or for
purposes of clause (vi) either such third (3rd) Business Day or the date on
which such six (6) Business Day period is exceeded, being referred to as an
"Event Date"), then, in any such case, as partial relief for the damages
suffered therefrom by the Holder (which remedy shall not be exclusive of any
other remedies available at law or in equity), the Company shall, on the Event
Date and on each monthly anniversary of the Event Date, unless the triggering
Event is cured prior to such monthly anniversary, pay to the Holder an amount in
cash, as liquidated damages for the estimated cost to the Holders of not having
liquid securities in the time contemplated by the Purchase Agreement and not as
a penalty, equal to 2% of the Purchase Price (as defined in the Purchase
Agreement) paid by such Holder. The payments to which the Holders shall be
entitled pursuant to this Section are referred to herein as "Registration Delay
Payments." Registration Delay payments shall be paid within five (5) Business
Days of the Event Date and each monthly anniversary thereof, as applicable. If
the Company fails to make

                                       5
<PAGE>   6
Registration Delay Payments in a timely manner, the unpaid portion of such
Registration Delay Payments shall bear interest at the rate of 2.0% per month
(or the maximum rate permitted by law), pro-rated for partial months, until paid
in full.

3.       Registration Procedures

         In connection with the Company's registration obligations hereunder,
the Company shall:

         (a)      Prepare and file with the Commission on or prior to the Filing
Date, a Registration Statement on Form S-3 (or if the Company is not then
eligible to register for resale the Registrable Securities on Form S-3 such
registration shall be on another appropriate form in accordance herewith, or, in
connection with an Underwritten Offering hereunder, such other form agreed to by
the Company and the Holders) which shall contain the "Plan of Distribution
attached hereto as Exhibit A, and use its best efforts to cause the Registration
Statement to become effective and remain effective as provided herein; provided,
however, that not less than five (5) Business Days prior to the filing of a
Registration Statement or any related Prospectus (other than a Prospectus filed
pursuant to Rule 424) and not less than one (1) Business Day prior to the filing
of any amendment or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference), the Company
shall, (i) furnish to the Holders, their Special Counsel and any managing
underwriters, copies of all such documents proposed to be filed, which documents
(other than those incorporated or deemed to be incorporated by reference) will
be subject to the reasonable review of such Holders, their Special Counsel and
such managing underwriters, and (ii) cause its officers and directors, counsel
and independent certified public accountants to respond to such inquiries as
shall be necessary, in the reasonable opinion of respective counsel to such
Holders and such underwriters, to conduct a reasonable investigation within the
meaning of the Securities Act. The Company shall not file the Registration
Statement or any such Prospectus or any amendments or supplements thereto to
which the Holders of a majority of the Registrable Securities, their Special
Counsel, or any managing underwriters, shall reasonably object on a timely
basis.

         (b)      (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the
Registrable Securities for the Effectiveness Period; (ii) cause the related
Prospectus to be amended or supplemented by any required Prospectus supplement,
and as so supplemented or amended to be filed pursuant to Rule 424 (or any
similar provisions then in force); (iii) respond as promptly as reasonably
possible, and in any event within ten (10) days, to any comments received from
the Commission with respect to the Registration Statement or any amendment
thereto and as promptly as reasonably possible provide the Holders true and
complete copies of all correspondence from and to the Commission relating to the
Registration Statement; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement
during the applicable period in accordance with the intended methods of
disposition by the Holders thereof set forth in the Registration Statement as so
amended or in such Prospectus as so supplemented.

                                       6
<PAGE>   7
         (c)      If the number of outstanding Registrable Securities at any
time exceeds 85% of the number of shares of Common Stock then registered in a
Registration Statement, the Holders of a majority of the then outstanding
Registrable Securities may request that the Company file an additional
Registration Statement covering the resale of a number of Registrable Securities
equal to the greater of the Initial Minimum and the number of Registrable
Securities then outstanding. The Company shall have thirty (30) days to file
such additional Registration Statements after its receipt of notice of such
request from such Holders, and the provisions of this Section 3 shall apply to
any such Registration Statement.

         (d)      File such supplements or attach "stickers" to the Registration
Statement or Prospectus as and when required by the Commission to evidence a
material amount of resales by a Holder pursuant to a Prospectus. In connection
therewith, if such supplements or "stickers" are periodically required by the
Commission, the Company shall, within four (4) Business Days, file such
supplements or attach such "stickers" whenever a Holder has sold 50% of the
Registrable Securities covered by the then outstanding Prospectus (as last
supplemented or "stickered") in order to cover 100% of the number of the
outstanding Registrable Securities.

         (e)      Notify the Holders of Registrable Securities to be sold, their
Special Counsel and any managing underwriters as promptly as reasonably possible
(and, in the case of (i)(A) below, not less than five (5) Business Days (or, in
the case of a supplement or "sticker" required to be filed or attached pursuant
to Section 3(d), within one (1) Business Day) prior to such filing) and (if
requested by any such Person) confirm such notice in writing no later than one
(1) Business Day following the day (i)(A) when a Prospectus or any Prospectus
supplement (other than a prospectus filed under Rule 424) or post-effective
amendment to the Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a "review" of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement the Company shall provide true and complete copies
thereof and all written responses thereto to each of the Holders; and (C) with
respect to the Registration Statement or any post-effective amendment, when the
same has become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority for amendments or supplements to the
Registration Statement or Prospectus or for additional information; (iii) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement covering any or all of the Registrable Securities or the
initiation of any Proceedings for that purpose; (iv) and in the case of
Underwritten Offerings, if at any time any of the representations and warranties
of the Company contained in any agreement (including any underwriting agreement)
contemplated hereby ceases to be true and correct in all material respects; (v)
of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; and (vi) of the occurrence of any event or passage
of time that makes the financial statements included in the Registration
Statement ineligible for inclusion therein or any statement made in the
Registration Statement or Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect or that
requires any revisions to the Registration Statement, Prospectus or other
documents so that, in the case of the Registration Statement or the Prospectus,
as the case may be, it will not contain any untrue

                                       7
<PAGE>   8
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

         (f)      Use its best efforts to avoid the issuance of, or, if issued,
obtain the withdrawal of (i) any order suspending the effectiveness of the
Registration Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Registrable Securities for sale in
any jurisdiction, at the earliest practicable moment.

         (g)      If requested by any managing underwriter or the Holders of a
majority in interest of the Registrable Securities to be sold in connection with
an Underwritten Offering, (i) promptly incorporate in a Prospectus supplement or
post-effective amendment to the Registration Statement such information as such
managing underwriters and such Holders reasonably agree should be included
therein, and (ii) make all required filings of such Prospectus supplement or
such post-effective amendment as soon as practicable after the Company has
received notification of the matters to be incorporated in such Prospectus
supplement or post-effective amendment; provided, however, that the Company
shall not be required to take any action pursuant to this Section 3(g) that
would, in the opinion of counsel for the Company, violate applicable law or be
materially detrimental to the business prospects of the Company.

         (h)      Furnish to each Holder, their Special Counsel and any managing
underwriters, without charge, at least one conformed copy of each Registration
Statement and each amendment thereto, including financial statements and
schedules, all documents incorporated or deemed to be incorporated therein by
reference, and all exhibits to the extent requested by such Person (including
those previously furnished or incorporated by reference) promptly after the
filing of such documents with the Commission.

         (i)      Promptly deliver to each Holder, their Special Counsel, and
any underwriters, without charge, as many copies of the Prospectus or
Prospectuses (including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request; and the Company
hereby consents to the use of such Prospectus and each amendment or supplement
thereto by each of the selling Holders and any underwriters in connection with
the offering and sale of the Registrable Securities covered by such Prospectus
and any amendment or supplement thereto.

         (j)      Prior to any public offering of Registrable Securities, use
its best efforts to register or qualify or cooperate with the selling Holders,
any underwriters and their Special Counsel in connection with the registration
or qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any Holder or underwriter
requests in writing, to keep each such registration or qualification (or
exemption therefrom) effective during the Effectiveness Period and to do any and
all other acts or things necessary or advisable to enable the disposition in
such jurisdictions of the Registrable Securities covered by a Registration
Statement; provided, however, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or to take any action

                                       8
<PAGE>   9
that would subject it to general service of process in any such jurisdiction
where it is not then so subject or subject the Company to any material tax in
any such jurisdiction where it is not then so subject.

         (k)      Cooperate with the Holders and any managing underwriters to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be delivered to a transferee pursuant to a
Registration Statement, which certificates shall be free, to the extent
permitted by the Purchase Agreement and applicable federal and state securities
laws, of all restrictive legends, and to enable such Registrable Securities to
be in such denominations and registered in such names as any such managing
underwriters or Holders may request.

         (l)      Upon the occurrence of any event contemplated by Section
3(e)(vi), as promptly as reasonably possible, prepare a supplement or amendment,
including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading.

         (m)      Use its best efforts to cause all Registrable Securities
relating to each Registration Statement required to be filed hereunder to be
listed on the Nasdaq National Market ("NASDAQ") or on any other stock market or
trading facility on which the shares of Common Stock are traded, listed or
quoted (each a "Subsequent Market") in the time and manner required by the
NASDAQ and any Subsequent Market, and shall provide to the Holders evidence of
such listing, and the Company shall maintain the listing of its Common Stock
thereon. If the number of outstanding Registrable Securities at any time exceeds
85% of the number of shares of Common Stock previously listed on account thereof
with NASDAQ and any Subsequent Market, then the Company shall take the necessary
actions to list immediately a number of Registrable Securities greater than or
equal to the then Current Required Minimum (as defined in the Purchase
Agreement) with respect thereto.

         (n)      In the event of an Underwritten Offering, enter into such
agreements (including an underwriting agreement in form, scope and substance as
is customary in Underwritten Offerings) and take all such other actions in
connection therewith (including those reasonably requested by any managing
underwriters and the Holders of a majority of the Registrable Securities being
sold) in order to expedite or facilitate the disposition of such Registrable
Securities, which agreements and actions shall be subject to the reasonable
approval of counsel of the Company, and (i) make such representations and
warranties to such Holders and such underwriters as are customarily made by
issuers to underwriters in underwritten public offerings, and confirm the same
if and when requested; (ii) in the case of an Underwritten Offering obtain and
deliver copies thereof to each Holder and the managing underwriters, if any, of
opinions of counsel to the Company and updates thereof addressed to each such
underwriter, in form, scope and substance reasonably satisfactory to any such
managing underwriters and Special Counsel to the selling Holders covering the
matters customarily covered in opinions

                                       9
<PAGE>   10
requested in Underwritten Offerings and such other matters as may be reasonably
requested by such Special Counsel and underwriters; (iii) in the case of an
Underwritten Offering, if required by the managing underwriters, at the time of
delivery of any Registrable Securities sold pursuant thereto, use its best
reasonable efforts to obtain and deliver copies to the Holders and the managing
underwriters, if any, of "cold comfort" letters and updates thereof from the
independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements and
financial data is, or is required to be, included in the Registration
Statement), addressed to the Company in form and substance as are customary in
connection with Underwritten Offerings; (iv) if an underwriting agreement is
entered into, the same shall contain indemnification provisions and procedures
no less favorable to the selling Holders and the underwriters, if any, than
those set forth in Section 5 (or such other provisions and procedures acceptable
to the managing underwriters, if any, and holders of a majority of Registrable
Securities participating in such Underwritten Offering); and (v) deliver such
documents and certificates as may be reasonably requested by the Holders of a
majority of the Registrable Securities being sold, their Special Counsel and any
managing underwriters to evidence the continued validity of the representations
and warranties made pursuant to Section 3(n)(i) above and to evidence compliance
with any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company.

         (o)      Make available for inspection by the selling Holders, any
representative of such Holders, any underwriter participating in any disposition
of Registrable Securities, and any attorney or accountant retained by such
selling Holders or underwriters, at the offices where normally kept, during
reasonable business hours and upon reasonable notice to the Company, all
financial and other records, pertinent corporate documents and properties of the
Company and its subsidiaries, and cause the officers, directors, agents and
employees of the Company and its subsidiaries to supply all information in each
case reasonably requested by any such Holder, representative, underwriter,
attorney or accountant in connection with the Registration Statement; provided,
however, that any information that is determined in good faith by the Company in
writing to be of a confidential nature at the time of delivery of such
information shall be kept confidential by such Persons, unless disclosure of
such information is required by court or administrative order or is necessary to
respond to inquiries of regulatory authorities.

         (p)      Comply with all applicable rules and regulations of the
Commission.

         (q)      The Company may require each selling Holder to furnish to the
Company such information regarding the distribution of such Registrable
Securities and the beneficial ownership of Common Stock held by such Holder as
the Company may from time to time reasonably request in writing, and the Company
may exclude from such registration the Registrable Securities of any Holder who
unreasonably fails to furnish such information within a reasonable time after
receiving such request. If the Registration Statement refers to any Holder by
name or otherwise as the holder of any securities of the Company, then such
Holder shall have the right to require the deletion of the reference to such
Holder in any amendment or supplement to the Registration Statement filed or
prepared subsequent to the time that such reference ceases to be required by the
Securities Act or any similar Federal statute then in force.

                                       10
<PAGE>   11
         Each Holder agrees that, other than ordinary course brokerage
arrangements, in the event it enters into any arrangement with a broker-dealer
for the sale of any Registrable Securities through a block trade, special
offering, exchange distribution or secondary distribution or a purchase by a
broker or dealer, such Holder shall promptly deliver to the Company in writing
all applicable information required in order for the Company to be able to
timely file a supplement to the Prospectus pursuant to Rule 424(b) under the
Securities Act. Such information shall include a description of (i) the name of
such Holder and of the participating broker-dealer(s), (ii) the number of
Registrable Securities involved, (iii) the price at which such Registrable
Securities were or are to be sold, and (iv) the commissions paid or to be paid
or discounts or concessions allowed or to be allowed to such broker-dealer(s),
where applicable.

4.       Registration Expenses

         (a)      All fees and expenses incident to the performance of or
compliance with this Agreement by the Company, except as and to the extent
specified in Section 4(b), shall be borne by the Company whether or not pursuant
to an Underwritten Offering and whether or not the Registration Statement is
filed or becomes effective and whether or not any Registrable Securities are
sold pursuant to the Registration Statement. The fees and expenses referred to
in the foregoing sentence shall include, without limitation, (i) all
registration and filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with the NASDAQ and any
Subsequent Market on which the Common Stock is then listed for trading, and (B)
in compliance with state securities or Blue Sky laws (including, without
limitation, fees and disbursements of counsel for the Holders in connection with
Blue Sky qualifications or exemptions of the Registrable Securities and
determination of the eligibility of the Registrable Securities for investment
under the laws of such jurisdictions as the managing underwriters, if any, or
the Holders of a majority of Registrable Securities may designate)), (ii)
printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses if the
printing of prospectuses is requested by the managing underwriters, if any, or
by the holders of a majority of the Registrable Securities included in the
Registration Statement), (iii) messenger, telephone and delivery expenses of the
Company, (iv) fees and disbursements of counsel for the Company and Special
Counsel for the Holders (not to exceed $7,500), (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses
of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement. In addition, the Company
shall be responsible for all of its internal expenses incurred in connection
with the consummation of the transactions contemplated by this Agreement
(including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the expense of any annual
audit, the fees and expenses incurred in connection with the listing of the
Registrable Securities on any securities exchange as required hereunder.

         (b)      If the Holders require an Underwritten Offering pursuant to
the terms hereof, the Company shall be responsible for all costs, fees and
expenses in connection therewith, except for the fees and disbursements of the
Underwriters (including any underwriting commissions and discounts) and their
legal counsel and accountants. By way of illustration which is not intended to
diminish from the provisions of Section 4(a), the Holders shall not be

                                       11
<PAGE>   12
responsible for, and the Company shall be required to pay the fees or
disbursements incurred by the Company (including by its legal counsel and
accountants) in connection with, the preparation and filing of a Registration
Statement and related Prospectus for such offering, the maintenance of such
Registration Statement in accordance with the terms hereof, the listing of the
Registrable Securities in accordance with the requirements hereof, and printing
expenses incurred to comply with the requirements hereof.

5.       Indemnification

         (a)      Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents (including any underwriters
retained by such Holder in connection with the offer and sale of Registrable
Securities), investment advisors and employees of each of them, each Person who
controls any such Holder (within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act) and the officers, directors, agents and
employees of each such controlling Person, to the fullest extent permitted by
applicable law, from and against any and all losses, claims, damages,
liabilities, costs (including, without limitation, costs of preparation and
reasonable attorneys' fees) and expenses (collectively, "Losses"), as incurred,
arising out of or relating to any untrue or alleged untrue statement of a
material fact contained in the Registration Statement, any Prospectus or any
form of prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions are based solely upon information regarding such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of Prospectus or in any
amendment or supplement thereto or (2) in the case of an occurrence of an event
of the type specified in Section 3(e)(ii)-(vi), the use by such Holder of an
outdated or defective Prospectus after the Company has notified such Holder in
writing that the Prospectus is outdated or defective and prior to the receipt by
such Holder of the Advice contemplated in Section 6(e). The Company shall notify
the Holders promptly of the institution, threat or assertion of any Proceeding
of which the Company is aware in connection with the transactions contemplated
by this Agreement.

         (b)      Indemnification by Holders. Each Holder shall, severally and
not jointly, indemnify and hold harmless the Company, its directors, officers,
agents and employees, each Person who controls the Company (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the
directors, officers, agents or employees of such controlling Persons, to the
fullest extent permitted by applicable law, from and against all Losses (as
determined by a court of competent jurisdiction in a final judgment not subject
to appeal or review) arising solely out of or based solely upon any untrue
statement of a material fact contained in the Registration Statement, any
Prospectus, or any form of prospectus, or in any

                                       12
<PAGE>   13
amendment or supplement thereto, or arising solely out of or based solely upon
any omission of a material fact required to be stated therein or necessary to
make the statements therein not misleading to the extent, but only to the
extent, that such untrue statement or omission is contained in any information
so furnished in writing by such Holder to the Company specifically for inclusion
in the Registration Statement or such Prospectus or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of Prospectus, or in any amendment or supplement
thereto. In no event shall the liability of any selling Holder hereunder be
greater in amount than the dollar amount of the net proceeds received by such
Holder upon the sale of the Registrable Securities giving rise to such
indemnification obligation.

         (c)      Conduct of Indemnification Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party shall promptly notify the
Person from whom indemnity is sought (the "Indemnifying Party") in writing, and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, that the failure of any Indemnified Party to give such notice shall
not relieve the Indemnifying Party of its obligations or liabilities pursuant to
this Agreement, except (and only) to the extent that it shall be finally
determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) that such failure shall have proximately
and materially adversely prejudiced the Indemnifying Party.

         An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the expense of
the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior written consent of the Indemnified Party, effect any settlement of any
pending Proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party from
all liability on claims that are the subject matter of such Proceeding.

                                       13
<PAGE>   14
         All fees and expenses of the Indemnified Party (including reasonable
fees and expenses to the extent incurred in connection with investigating or
preparing to defend such Proceeding in a manner not inconsistent with this
Section) shall be paid to the Indemnified Party, as incurred, within ten (10)
Business Days of written notice thereof, which notice may be given no more than
once a month, to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification
hereunder; provided, that the Indemnifying Party may require such Indemnified
Party to undertake to reimburse all such fees and expenses to the extent it is
finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder).

         (d)      Contribution. If a claim for indemnification under Section
5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy
or otherwise), then each Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Losses, in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party and
Indemnified Party in connection with the actions, statements or omissions that
resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission of a material fact, has been taken or made by, or relates to
information supplied by, such Indemnifying Party or Indemnified Party, and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. The amount paid or
payable by a party as a result of any Losses shall be deemed to include, subject
to the limitations set forth in Section 5(c), any reasonable attorneys' or other
reasonable fees or expenses incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the indemnification provided for in this Section was available to
such party in accordance with its terms.

         The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

         The indemnity and contribution agreements contained in this Section are
in addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

6.       Miscellaneous

                                       14
<PAGE>   15
         (a)      Remedies. In the event of a breach by the Company or by a
Holder, of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall waive the
defense that a remedy at law would be adequate.

         (b)      No Inconsistent Agreements. Neither the Company nor any of its
subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its subsidiaries, on or after the date of this Agreement, enter into any
agreement with respect to its securities that is inconsistent with the rights
granted to the Holders in this Agreement or otherwise conflicts with the
provisions hereof. Except as and to the extent specified in Schedule 6(b)
hereto, neither the Company nor any of its subsidiaries has previously entered
into any agreement granting any registration rights with respect to any of its
securities to any Person that have not been satisfied in full. Without limiting
the generality of the foregoing, without the written consent of the Holders of a
majority of the then outstanding Registrable Securities, the Company shall not
grant to any Person the right to request the Company to register any securities
of the Company under the Securities Act unless the rights so granted are subject
in all respects to the prior satisfaction in full of the rights of the Holders
set forth herein, and are not otherwise in conflict or inconsistent with the
provisions of this Agreement. Notwithstanding anything herein to the contrary,
the parties agree that the granting by the Company of registration rights in
connection with a fixed priced offering of its securities in a private placement
transaction with an aggregate sum of up to $30,000,000, or any offering of its
securities that occurs after the 180th Trading Day following the Closing Date
will not violate this provision.

         (c)      No Piggyback on Registrations. Except as and to the extent
specified in Schedule 6(c) hereto, neither the Company nor any of its security
holders (other than the Holders in such capacity pursuant hereto) may include
securities of the Company in the Registration Statement other than the
Registrable Securities, and the Company shall not, without the written consent
of the Holders of a majority of the then outstanding Registrable Securities,
after the date hereof enter into any agreement providing any such right to any
of its security holders.

         (d)      Compliance. Each Holder covenants and agrees that it will
comply with the prospectus delivery requirements of the Securities Act as
applicable to it in connection with sales of Registrable Securities pursuant to
the Registration Statement.

         (e)      Discontinued Disposition. Each Holder agrees by its
acquisition of such Registrable Securities that, upon receipt of a notice from
the Company of the occurrence of any event of the kind described in Sections
3(e)(ii), 3(e)(iii), 3(e)(iv), 3(e)(v) or 3(e)(vi), such Holder will forthwith
discontinue disposition of such Registrable Securities under the Registration
Statement until such Holder's receipt of the copies of the supplemented
Prospectus and/or amended Registration Statement contemplated by Section 3(l),
or until it is advised in writing

                                       15
<PAGE>   16
(the "Advice") by the Company that the use of the applicable Prospectus may be
resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus or Registration Statement. The Company may provide
appropriate stop orders to enforce the provisions of this paragraph.

         (f)      Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Holders of at least two-thirds of the then outstanding Registrable
Securities. Notwithstanding the foregoing, a waiver or consent to depart from
the provisions hereof with respect to a matter that relates exclusively to the
rights of Holders and that does not directly or indirectly affect the rights of
other Holders may be given by Holders of at least a majority of the Registrable
Securities to which such waiver or consent relates; provided, however, that the
provisions of this sentence may not be amended, modified, or supplemented except
in accordance with the provisions of the immediately preceding sentence.

         (g)      Piggy-Back Registrations. If at any time when there is not an
effective Registration Statement covering all of the Registrable Securities then
outstanding and the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering of its securities
for its own account, then the Company shall send to each Holder of Registrable
Securities written notice of such determination and, if within twenty (20) days
after receipt of such notice, any such holder shall so request in writing, the
Company shall include in such registration statement all or any part of such
Registrable Securities such holder requests to be registered. If any
registration of the Company pursuant to this Section 6(g) is for a registered
public offering involving an underwriting, the right of any Holder to
registration shall be conditioned upon such Holder's entering into an
underwriting agreement and/or lock-up agreement in customary forms with the
representative of the underwriter or underwriters.

         (h)      Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in this Section prior to 5:00 p.m.
(California time) on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified in the Purchase Agreement later than 5:00
p.m. (California time) on any date and earlier than 11:59 p.m. (California time)
on such date, (iii) the Business Day following the date of mailing, if sent by
nationally recognized overnight courier service, or (iv) if sent other than by
the methods set forth in (i)-(iii) of this section, upon actual receipt by the
party to whom such notice is required to be given. The address for such notices
and communications shall be as follows:

                                       16
<PAGE>   17
         If to the Company:                 NeoTherapeutics, Inc.
                                            157 Technology Drive
                                            Irvine, California 92618
                                            Facsimile No.: (949) 788-6706
                                            Attn: Chief Financial Officer

         With copies to:                    Latham & Watkins
                                            650 Town Center Drive, Suite 2000
                                            Costa Mesa, CA 92626-1925
                                            Facsimile No: (714) 755-8290
                                            Attn: Alan W. Pettis, Esq.

         If to any other Person who is
         then the registered Holder:        To the address of such Holder as it
                                            appears in the stock transfer books
                                            of the Company or such other address
                                            as may be designated in writing
                                            hereafter, in the same manner, by
                                            such Person.

         (i)      Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. The Company may not
assign its rights or obligations hereunder without the prior written consent of
each Holder. Each Holder may assign their respective rights hereunder in the
manner and to the Persons as permitted under this Agreement and the Purchase
Agreement.

         (j)      Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement. In
the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and effect
as if such facsimile signature were the original thereof.

         (k)      Governing Law. The corporate laws of the State of Delaware
shall govern all issues concerning the relative rights of the Company and its
stockholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New
York, without regard to the principles of conflicts of law thereof Each party
hereby irrevocably submits to the exclusive jurisdiction of the state and
federal courts sitting in the City of New York, borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address in effect for notices to it under this Agreement and agrees that such
service

                                       17
<PAGE>   18
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law.

         (l)      Cumulative Remedies. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

         (m)      Severability. If any term, provision, covenant or restriction
of this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

         (n)      Headings. The headings in this Agreement are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof.

         (o)      Shares Held by the Company and its Affiliates. Whenever the
consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than any Holder or transferees or successors or assigns
thereof if such Holder is deemed to be an Affiliate solely by reason of its
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

         (p)      Entire Agreement. This Agreement and the Purchase Agreement
are intended by the Parties as a final expression of their agreement and
intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained
herein and therein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein and therein with
respect to the registration rights granted by the Company with respect to the
securities sold pursuant to the Purchase Agreement. This Agreement and the
Purchase Agreement supersede all prior agreements and understandings between the
parties with respect to such subject matter.

         (q)      Independent Nature of Holders' Obligations and Rights. The
obligations of each Holder hereunder is several and not joint with the
obligations of any other Holder hereunder, and no Holder shall be responsible in
any way for the performance of the obligations of any other Holder hereunder.
Nothing contained herein or in any other agreement or document delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto, shall be
deemed to constitute the Holders as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Holders
are in any way acting in concert with respect to such obligations or the
transactions contemplated by this Agreement. Each Holder shall be entitled to
protect and enforce its rights, including without limitation the rights arising

                                       18
<PAGE>   19
out of this Agreement, and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                           SIGNATURE PAGES TO FOLLOW]

                                       19
<PAGE>   20
         IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date first written above.

                                         NEOTHERAPEUTICS, INC.

                                         Samuel Gulko
                                         Chief Financial Officer

             COMPANY SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

                                       20
<PAGE>   21
                                        MONTROSE INVESTMENTS LTD.

                                        By:
                                               ---------------------------------
                                        Name:
                                               ---------------------------------
                                        Title:
                                               ---------------------------------

                                        Address:
                                        Montrose Investments Ltd.
                                        300 Crescent Court, Suite 700
                                        Dallas, TX 75201
                                        Facsimile: (214) 758-1221
                                        Attn: Will Rose and Kim Rozman

                                        STRONG RIVER INVESTMENTS, INC.

                                        By:
                                               ---------------------------------
                                        Name:
                                               ---------------------------------
                                        Title:
                                               ---------------------------------

                                        Address:
                                        Strong River Investments, Inc.
                                        c/o Gonzalez-Ruiz 7 Aleman (BVI) Limited
                                        Wickhams Cay I, Vanterpool Plaza
                                        P.O. Box 873
                                        Road Town, Tortolla, BVI
                                        Facsimile:
                                                   ------------------------

            PURCHASER SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

                                       21
<PAGE>   22
                                                                     EXHIBIT 4.4

                                    EXHIBIT A

                              PLAN OF DISTRIBUTION

                  The Selling Stockholders and any of their pledgees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or in private transactions. These sales may be at
fixed or negotiated prices. The Selling Stockholders may use any one or more of
the following methods when selling shares:

         -        ordinary brokerage transactions and transactions in which the
                  broker-dealer solicits purchasers;

         -        block trades in which the broker-dealer will attempt to sell
                  the shares as agent but may position and resell a portion of
                  the block as principal to facilitate the transaction;

         -        purchases by a broker-dealer as principal and resale by the
                  broker-dealer for its account;

         -        an exchange distribution in accordance with the rules of the
                  applicable exchange;

         -        privately negotiated transactions;

         -        short sales;

         -        broker-dealers may agree with the Selling Stockholders to sell
                  a specified number of such shares at a stipulated price per
                  share;

         -        a combination of any such methods of sale; and

         -        any other method permitted pursuant to applicable law.

                  The Selling Stockholders may also sell shares under Rule 144
under the Securities Act, if available, rather than under this prospectus.

                  The Selling Stockholders may also engage in short sales
against the box, puts and calls and other transactions in securities of the
Company or derivatives of Company securities and may sell or deliver shares in
connection with these trades. The Selling Stockholders may pledge their shares
to their brokers under the margin provisions of customer agreements. If a
Selling Stockholder defaults on a margin loan, the broker may, from time to
time, offer and sell the pledged shares. The Selling Stockholders have advised
the Company that they have not entered into any agreements, understandings or
arrangements with any underwriters or broker-dealers regarding the sale of their
shares other than ordinary course brokerage arrangements, nor is there an
underwriter or coordinating broker acting in connection with the proposed sale
of shares by the Selling Stockholders.
<PAGE>   23
                  Broker-dealers engaged by the Selling Stockholders may arrange
for other brokers-dealers to participate in sales. Broker-dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated. The Selling Stockholders do not expect these commissions and
discounts to exceed what is customary in the types of transactions involved.

                  The Selling Stockholders and any broker-dealers or agents that
are involved in selling the shares may be deemed to be "underwriters" within the
meaning of the Securities Act in connection with such sales. In such event, any
commissions received by such broker-dealers or agents and any profit on the
resale of the shares purchased by them may be deemed to be underwriting
commissions or discounts under the Securities Act.

                  The Company is required to pay all fees and expenses incident
to the registration of the shares, including fees and disbursements of counsel
to the Selling Stockholders. The Company has agreed to indemnify the Selling
Stockholders against certain losses, claims, damages and liabilities, including
liabilities under the Securities Act.

                  Upon the Company being notified by a Selling Stockholder that
any material arrangement has been entered into with a broker-dealer for the sale
of shares through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, a supplement to this
prospectus will be filed, if required, pursuant to Rule 424(b) under the
Securities Act, disclosing (i) the name of each such Selling Stockholder and of
the participating broker-dealer(s), (ii) the number of shares involved, (iii)
the price at which such shares were sold, (iv) the commissions paid or discounts
or concessions allowed to such broker-dealer(s), where applicable, (v) that such
broker-dealer(s) did not conduct any investigation to verify the information set
out or incorporated by reference in this prospectus, and (vi) other facts
material to the transaction. In addition, upon the Company being notified by a
Selling Stockholder that a donee or pledgee intends to sell more than 500
shares, a supplement to this prospectus will be filed.

                  The Company has advised the Selling Stockholders that the
anti-manipulative provisions of Regulation M promulgated under the Exchange Act
may apply to their sales of the shares offered hereby.

                                       2
<PAGE>   24
                                                                     EXHIBIT 4.4

                                  SCHEDULE 6(b)

                               REGISTRATION RIGHTS

                  The Company has no outstanding agreements granting any
registration rights with respect to any of its securities to any Person that
have not been satisfied in full, other than obligations to maintain existing
registrations or file additional registration statements pursuant to existing
agreements with the Purchasers.
<PAGE>   25
                                                                     EXHIBIT 4.4

                                  SCHEDULE 6(c)

                                PIGGYBACK RIGHTS

                  The Company may include the securities of other security
holders in the Registration Statement in accordance with Section 2(b).

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