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                                                                    Exhibit 10.3

                              EMPLOYMENT AGREEMENT

     THIS  EMPLOYMENT  AGREEMENT is made and entered into as of this 31st day of
March 2004,  by and between  CEPTOR  CORPORATION,  a Delaware  corporation  with
offices at 200  International  Circle,  Suite 5100, Hunt Valley,  Maryland 21030
(the  "Corporation"),  and DONALD FALLON, an individual residing at 813 Ramshead
Circle,   Cockeysville,   MD  21030  (the  "Executive"),   under  the  following
circumstances:

                                    RECITALS:

     A. The Corporation desires to secure the services of the Executive upon the
terms and conditions hereinafter set forth; and

     B. The Executive  desires to render  services to the  Corporation  upon the
terms and conditions hereinafter set forth.

     NOW, THEREFORE, the parties mutually agree as follows:

     Section 1. EMPLOYMENT. The Corporation hereby employs the Executive and the
Executive hereby accepts employment as an executive of the Corporation,  subject
to the terms and conditions set forth in this Agreement.

     Section 2. DUTIES.  The Executive shall serve as the Senior Vice President,
Finance and  Administration  and Chief Financial Officer of the Corporation with
such duties,  responsibilities  and authority as are commensurate and consistent
with his position, as may be, from time to time, assigned to him by the Chairman
and CEO of the Corporation.  The Executive shall report directly to the Chairman
and CEO. During the term of this Agreement,  the Executive shall devote his full
business  time and efforts to the  performance  of his duties  hereunder  unless
otherwise  authorized by the Board of Directors.  Notwithstanding the foregoing,
the expenditure of reasonable amounts of time by the Executive for the making of
passive  personal  investments,  the  conduct of private  business  affairs  and
charitable  and  professional   activities  shall  be  allowed,   provided  such
activities do not materially interfere with the services required to be rendered
to the Corporation  hereunder and do not violate the  restrictive  covenants set
forth in SECTION 9 below.

     Section 3. TERM  OF  EMPLOYMENT.  The  term of the  Executive's  employment
hereunder,  unless sooner  terminated as provided  herein (the "Initial  Term"),
shall be for a period  of two (2)  years  commencing  on the  date  hereof  (the
"Commencement Date"). The term of this Agreement shall automatically be extended
for  additional  terms of one year each (each a "Renewal  Term")  unless  either
party gives prior written notice of non-renewal to the other party no later than
sixty  (60) days  prior to the  expiration  of the  Initial  Term  ("Non-Renewal
Notice"),  or the then current Renewal Term, as the case may be. For purposes of
this  Agreement,   the  Initial  Term  and  any  Renewal  Term  are  hereinafter
collectively referred to as the "Term."

     Section 4. COMPENSATION OF EXECUTIVE.

     4.1 BASE SALARY.  The  Corporation  shall pay the Executive as compensation
for his services  hereunder,  in equal  semi-monthly  or bi-weekly  installments
during the Term, the sum of One Hundred Seventy-Five Thousand ($175,000) Dollars
per annum (the "Base  Salary"),  less such deductions as shall be required to be
withheld by applicable law and  regulations.  The  Corporation  shall review the
Base  Salary on an annual  basis  and has the  right but not the  obligation  to
increase it, but has no right to decrease the Base Salary.

     4.2 DISCRETIONARY  BONUS.  In  addition  to the Base  Salary  set  forth in
SECTION 4.1 above,  the Executive  shall be entitled to such bonus  compensation
(in cash,  capital stock or other  property) as a majority of the members of the
Board of Directors of the  Corporation  may determine from time to time in their
sole discretion.

     4.3 EXPENSES.  The Corporation shall pay or reimburse the Executive for all
reasonable  out-of-pocket expenses actually incurred or paid by the Executive in
the  course of his  employment,  consistent  with the  Corporation's  policy for
reimbursement of expenses from time to time.

     4.4 BENEFITS.  The  Executive  shall be  entitled  to  participate  in such
pension, profit sharing, group insurance,  hospitalization, and group health and
benefit plans and all other  benefits and plans as the  Corporation  provides to
its senior executives (the "Benefit Plans").

     Section 5. TERMINATION.

     5.1 EVENTS OF TERMINATION.  This Agreement and the  Executive's  employment
hereunder shall terminate upon the happening of any of the following events:

          (a) upon the Executive's death;

          (b) upon the Executive's "Total Disability" (as herein defined);

          (c) upon the  expiration of the Initial Term of this  Agreement or any
     Renewal  Term  thereof,  if either  party has  provided a timely  notice of
     non-renewal in accordance with SECTION 3, above;

          (d) at the  Corporation's  option,  upon sixty (60) days prior written
     notice to the Executive if without cause;

          (e) at the  Executive's  option,  upon thirty (30) days prior  written
     notice to the Corporation;

          (f)  at  the  Executive's  option,  in  the  event  of an  act  by the
     Corporation,  defined in SECTION 5.3, below, as constituting  "Good Reason"
     for termination by the Executive; and

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          (g)  at  the  Corporation's  option,  in  the  event  of an act by the
     Executive,  defined in SECTION  5.4,  below,  as  constituting  "Cause" for
     termination by the Corporation.

     5.2 TOTAL DISABILITY.  For purposes of this Agreement,  the Executive shall
be deemed to be suffering from a "Total  Disability" if the Executive has failed
to perform his regular and customary  duties to the  Corporation for a period of
180 days out of any  360-day  period  and if before  the  Executive  has  become
"Rehabilitated"  (as herein  defined) the CEO  determines  that the Executive is
mentally or  physically  incapable or unable to continue to perform such regular
and customary  duties of employment.  As used herein,  the term  "Rehabilitated"
shall mean such time as the  Executive is willing,  able and commences to devote
his time and energies to the affairs of the Corporation to the extent and in the
manner that he did so prior to his Disability.

     5.3 GOOD REASON.  For purposes of this  Agreement,  the term "Good  Reason"
shall mean that the Executive has resigned due to the failure of the Corporation
to meet any of its obligations to the Executive  hereunder,  and failure to cure
the same  within  thirty  (30) days  following  Executive's  delivery  of notice
specifying the breach(es) by the  Corporation  which failures by the Corporation
include:  (i) failure to permit the Executive to exercise authority with respect
to the matters  delegated to the Executive  under EXHIBIT A hereto;  or (ii) the
Corporation  has failed to meet any of its  obligations  to the Executive  under
this or any other agreement between the Corporation and the Executive.

     5.4 CAUSE.  For purposes of this  Agreement,  the term  "Cause"  shall mean
material,  gross  and  willful  misconduct  on  the  part  of the  Executive  in
connection with his employment duties hereunder or commission of a felony or act
of dishonesty resulting in material harm to the Corporation by the Executive.

     Section 6. EFFECTS OF TERMINATION.

     6.1 DEATH.  Upon  termination  of the  Executive's  employment  pursuant to
SECTION 5.1 (A), the Executive's  estate or  beneficiaries  shall be entitled to
the following severance benefits:  (i) three (3) months' Base Salary at the then
current rate,  payable in a lump sum, less withholding of applicable  taxes; and
(ii) continued  provision for a period of one (1) year following the Executive's
death  of  benefits  under  Benefit  Plans  extended  from  time  to time by the
Corporation to its senior executives.

     6.2  TOTAL  DISABILITY.  Upon  termination  of the  Executive's  employment
pursuant to SECTION  5.1(B),  the  Executive  shall be entitled to the following
severance benefits:  (i) thirty-six (36) months' Base Salary at the then current
rate, to be paid from the date of  termination  until paid in full in accordance
with  the  Corporation's  usual  practices,  including  the  withholding  of all
applicable  taxes;  (ii) continued  provision  during said thirty-six (36) month
period of the benefits  under  Benefit  Plans  extended from time to time by the
Corporation to its senior  executives;  and (iii) payment on a prorated basis of
any  bonus  or other  payments  earned  in  connection  with  the  Corporation's
then-existing  bonus plan in place at the time of  termination.  The Corporation
may credit  against such amounts any proceeds paid to Executive  with respect to
any disability policy maintained for his benefit.

     6.3  EXPIRATION OF TERM.  Upon  termination of the  Executive's  employment
pursuant to SECTION 5.1(C),  where the Corporation has offered to renew the term

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of the  Executive's  employment  for an  additional  one (1) year period and the
Executive  chooses  not to  continue  in the  employ  of  the  Corporation,  the
Executive shall be entitled to receive only the accrued but unpaid  compensation
and vacation pay through the date of termination and any other benefits  accrued
to him  under any  Benefit  Plans  outstanding  at such  time.  In the event the
Corporation  tenders  Non-Renewal  Notice to the  Executive,  then the Executive
shall  be  entitled  to  the  same  severance  benefits  as if  the  Executive's
employment  were  terminated  pursuant  to  SECTION  5.1(D) or  SECTION  5.1(F);
provided,  however,  if  such  Non-Renewal  Notice  was  triggered  due  to  the
Corporation's  statement that the  Executive's  employment was terminated due to
SECTION  5.1(E)  (for  "Cause"),  then  payment of  severance  benefits  will be
contingent  upon a  determination  as to whether  termination  was  properly for
"Cause."

     6.4 BY  CORPORATION  WITHOUT  CAUSE OR BY EXECUTIVE  FOR GOOD REASON.  Upon
termination of the Executive's employment pursuant to SECTION 5.1(D) OR (F), the
Executive shall be entitled to the following severance benefits: (i) twelve (12)
months'  Base  Salary  at the then  current  rate,  to be paid  upon the date of
termination  of  employment in monthly  installments,  less  withholding  of all
applicable  taxes;  (ii) continued  provision for a period of twelve (12) months
after the date of  termination of the benefits under Benefit Plans extended from
time to time by the Corporation to its senior executives; and (iii) payment on a
prorated  basis of any bonus or other  payments  earned in  connection  with any
bonus  plan to  which  the  Executive  was a  participant  as of the date of the
Executive's termination of employment.

     6.5 BY  CORPORATION  FOR CAUSE OR BY EXECUTIVE  WITHOUT  GOOD REASON.  Upon
termination of the Executive's employment pursuant to SECTION 5.1(E) OR (G), the
Executive shall be entitled to the following severance benefits: (i) accrued and
unpaid  Base Salary and  vacation  pay  through  the date of  termination,  less
withholding of applicable taxes; and (ii) continued  provision,  for a period of
one (1) month after the date of the  Executive's  termination of employment,  of
benefits  under  Benefit  Plans  extended  to  the  Executive  at  the  time  of
termination.

     6.6 DUTY TO  MITIGATE.  The  Executive  shall be  obligated  to seek  other
employment  in  order to  mitigate  his  damages  resulting  from his  discharge
pursuant to SECTIONS 5.1(D), (E), (F) OR (g), provided that such employment need
not be taken at a level below senior vice president or chief  financial  officer
of a  subsequent  company.  Any  payments  required to be made  hereunder by the
Corporation to the Executive shall continue to the Executive's  beneficiaries in
the event of his death until paid in full.

     Section 7. VACATIONS. The Executive shall be entitled to a vacation of four
(4) weeks per year,  during which  period his salary shall be paid in full.  The
Executive shall take his vacation at such time or times as the Executive and the
Corporation  shall determine is mutually  convenient.  Any vacation not taken in
one (1) year shall not accrue, provided that if vacation is not taken due to the
Corporation's business necessities, up to two (2) weeks' vacation may carry over
to the subsequent year.

     Section  8.   DISCLOSURE  OF   CONFIDENTIAL   INFORMATION.   The  Executive
recognizes,  acknowledges  and agrees that he has had and will  continue to have
access  to  secret  and  confidential  information  regarding  the  Corporation,
including  but not  limited  to, its  products,  formulae,  patents,  sources of

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supply,  customer  dealings,  data,  know-how and business plans,  provided such
information is not in or does not hereafter become part of the public domain, or
become  known  to  others  through  no  fault of the  Executive.  The  Executive
acknowledges that such information is of great value to the Corporation,  is the
sole  property of the  Corporation,  and has been and will be acquired by him in
confidence.  In consideration  of the obligations  undertaken by the Corporation
herein,  the  Executive  will not, at any time,  during or after his  employment
hereunder, reveal, divulge or make known to any person, any information acquired
by the  Executive  during  the  course of his  employment,  which is  treated as
confidential  by the  Corporation,  and not otherwise in the public domain.  The
provisions of this SECTION 8 shall survive the Executive's  employment hereunder
except in the event of a termination of this  Agreement  pursuant to SECTION 5.1
(D) OR (F), hereof, or as detailed in the provision above. All references to the
Corporation  in SECTION 8 and SECTION 9 hereof shall  include any  subsidiary of
the Corporation.

     Section 9. COVENANT NOT TO COMPETE.

          (a) The Executive  recognizes that the services to be performed by him
     hereunder are special,  unique and extraordinary.  The parties confirm that
     it is reasonably  necessary for the protection of the Corporation  that the
     Executive agree, and accordingly,  the Executive does hereby agree, that he
     shall not,  directly  or  indirectly,  at any time  during the  "Restricted
     Period" within the "Restricted Area" (as those terms are defined in SECTION
     9(E) below):

               (i) except as provided  in  SUBSECTION  (C) below,  engage in the
          business of acting as an executive of the  Corporation  engaged in the
          research,  development,  production or sale of biotechnology  products
          (including in the areas of muscular dystrophy, sickle cell anemia, and
          other  specific  indications)  within  any  of  the  specific  disease
          indications  and/or product  categories in which the  Corporation  has
          been actively  involved  during the period of  Executive's  employment
          with the  Corporation,  either  on his own  behalf  or as an  officer,
          director,  stockholder,   partner,  consultant,  associate,  employee,
          owner, agent, creditor,  independent contractor, or co-venturer of any
          third  party;  or (ii) not to solicit  to employ or engage,  for or on
          behalf of himself or any third  party,  any  employee  or agent of the
          Corporation.

          (b)  The  Executive  hereby  agrees  that  he will  not,  directly  or
     indirectly,  for or on behalf of  himself or any third  party,  at any time
     during the Term and during the  Restricted  Period solicit any customers of
     the  Corporation  with respect to products  competitive  with products then
     being sold by the Corporation.

          (c) If any of the  restrictions  contained  in this SECTION 9 shall be
     deemed  to  be  unenforceable   by  reason  of  the  extent,   duration  or
     geographical  scope  thereof,  or  otherwise,  then the court  making  such
     determination  shall  have  the  right to  reduce  such  extent,  duration,
     geographical  scope, or other  provisions  hereof,  and in its reduced form
     this Section shall then be enforceable in the manner contemplated hereby.

          (d) This  SECTION 9 shall not be  construed  to prevent the  Executive
     from  owning,  directly  or  indirectly,  in the  aggregate,  an amount not

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     exceeding five percent (5%) of the issued and outstanding voting securities
     of any class of any  corporation  whose voting  capital  stock is traded or
     listed on a national securities exchange or in the over-the-counter market.

          (e) The term  "Restricted  Period,"  as used in this  SECTION 9, shall
     mean the period of the Executive's actual employment hereunder, plus twelve
     (12) months after the date the Executive is actually no longer  employed by
     the Corporation. The term "Restricted Area" as used in this SECTION 9 shall
     mean the continental United States.

          (f) The provisions of this SECTION 9 shall survive the  termination of
     the  Executive's  employment  hereunder and until the end of the Restricted
     Period as  provided in SECTION  9(E)  hereof  except in the event that this
     Agreement is terminated pursuant to SECTION 5.1(D) OR (F), hereof, in which
     case such provisions shall not survive termination of this Agreement. In no
     event shall the terms of SECTION 9 be  enforceable,  should the Corporation
     be in default of any of its obligations to the Executive at the time of his
     termination of employment by the Corporation.

     Section 10. MISCELLANEOUS.

     10.1 INJUNCTIVE RELIEF. The Executive  acknowledges that the services to be
rendered by him under the provisions of this Agreement are of a special,  unique
and  extraordinary  character  and that it would be difficult or  impossible  to
replace such  services.  Accordingly,  the  Executive  agrees that any breach or
threatened  breach by him of SECTIONS 8 OR 9 of this Agreement shall entitle the
Corporation,  in addition to all other legal remedies  available to it, to apply
to any  court  of  competent  jurisdiction  to seek to  enjoin  such  breach  or
threatened  breach.  The parties  understand  and intend  that each  restriction
agreed to by the  Executive  hereinabove  shall be construed  as  separable  and
divisible  from  every  other  restriction,  that  the  unenforceability  of any
restriction  shall  not limit the  enforceability,  in whole or in part,  of any
other  restriction,  and  that  one or more or all of such  restrictions  may be
enforced in whole or in part as the circumstances warrant. In the event that any
restriction in this Agreement is more  restrictive  than permitted by law in the
jurisdiction  in  which  the  Corporation   seeks  enforcement   thereof,   such
restriction  shall be  limited  to the extent  permitted  by law.  The remedy of
injunctive  relief herein set forth shall be in addition to, and not in lieu of,
any other rights or remedies that the Corporation may have at law or in equity.

     10.2  ASSIGNMENTS.  Neither the Executive nor the Corporation may assign or
delegate any of their rights or duties under this Agreement  without the express
written consent of the other;  provided however that the Corporation  shall have
the right to delegate its obligation of payment of all sums due to the Executive
hereunder,  provided that such  delegation  shall not relieve the Corporation of
any of its obligations hereunder.

     10.3 ENTIRE AGREEMENT. This Agreement constitutes and embodies the full and
complete  understanding  and  agreement  of  the  parties  with  respect  to the
Executive's  employment by the Corporation,  supersedes all prior understandings
and  agreements,  whether  oral  or  written,  between  the  Executive  and  the
Corporation,  and  shall  not be  amended,  modified  or  changed  except  by an

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instrument  in writing  executed by the party to be charged.  The  invalidity or
partial  invalidity  of one or more  provisions  of  this  Agreement  shall  not
invalidate any other provision of this  Agreement.  No waiver by either party of
any  provision or condition to be performed  shall be deemed a waiver of similar
or  dissimilar  provisions  or  conditions  at the  same  time or any  prior  or
subsequent time.

     10.4  BINDING  EFFECT.  This  Agreement  shall  inure to the benefit of, be
binding upon and enforceable  against,  the parties hereto and their  respective
successors, heirs, beneficiaries and permitted assigns.

     10.5 HEADINGS. The headings contained in this Agreement are for convenience
of reference only and shall not affect in any way the meaning or  interpretation
of this Agreement.

     10.6  NOTICES.  All  notices,  requests,  demands and other  communications
required or  permitted  to be given  hereunder  shall be in writing and shall be
deemed to have been duly given when personally delivered,  sent by registered or
certified  mail,  return  receipt  requested,  postage  prepaid,  or by  private
overnight  mail service (e.g.  Federal  Express) to the party at the address set
forth above or to such other address as either party may  hereafter  give notice
of in accordance  with the provisions  hereof.  Notices shall be deemed given on
the  sooner  of the date  actually  received  or the  third  business  day after
sending.

     10.7 GOVERNING  LAW. This  Agreement  shall be governed by and construed in
accordance with the laws of the State of Maryland  without giving effect to such
State's conflicts of laws provisions and each of the parties hereto  irrevocably
consents to the  jurisdiction  and venue of the federal and state courts located
in the State of Maryland.

     10.8 COUNTERPARTS.  This Agreement may be executed simultaneously in two or
more counterparts,  each of which shall be deemed an original,  but all of which
together shall  constitute one of the same  instrument.  The parties hereto have
executed this Agreement as of the date set forth above.

CORPORATION:                                EXECUTIVE:

CEPTOR CORPORATION                          Donald W. Fallon

By:   /s/ William H. Pursley                /s/ Donald W. Fallon
      -------------------------             ------------------------------------
                                            Signature
Title: Chief Executive Officer
       ------------------------

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                                    EXHIBIT A

The Senior Vice President, Finance and Administration/Chief Financial Officer is
the most senior executive responsible for overseeing the financial and
administrative functions of the Corporation. Responsibilities include financial
plans and policies, accounting practices and procedures and the Corporation's
relationship with the financial community. This position directs the functions
of controller, accounting, treasury, tax, planning, legal, human resources and
information systems. This position reports to the CEO.

                                       8sec document

                                                                    Exhibit 10.5

                               CEPTOR CORPORATION

                                 FOUNDERS' PLAN

                           (Adopted December 9, 2004)

                                    ARTICLE I
                                     GENERAL

     1.1 OBJECTIVES AND PURPOSES OF THE PLAN

         The purpose of the Ceptor  Corporation  (the "Company")  Founders' Plan
(the "Plan") is to:

         (a)  Encourage   individual   effort  and  group  teamwork  toward  the
accomplishment of the Company's goals;

         (b)  Reward  outstanding  executive  and  managerial   performance  and
contributions from directors, officers, consultants,  advisors, and employees to
the Company;

         (c) Provide total  compensation which is competitive with the companies
comprising the industries with which the Company competes and takes into account
the  Company's  strategic  goals and size and which is  sufficient to ensure the
Company's  ability to attract,  retain and  motivate  executives,  managers  and
others; and

         (d) Focus the attention of  participants  on Company goals and on other
performance indicators which may also be used in connection with the Plan.

     1.2 ADMINISTRATION

         (a) The Plan shall be  administered  by the Board of  Directors or by a
Committee of the Board of Directors of the Company (the "Committee") which shall
consist of two or more directors. Each member shall be a "Non-employee director"
as that term is defined by Rule 16b-3(b)(3) (or any successor rule)  promulgated
under the Securities Exchange Act of 1934, as amended, and an "outside director"
as that term is referred to in Section  162(m)(4)(C)(i)  of the Internal Revenue
Code of 1986,  as  amended,  and  regulations  promulgated  thereunder  (and any
successor  section  or  regulation).  The  members  of the  Committee  shall  be
appointed by the Board of Directors,  and any vacancy on the Committee  shall be
filled by the Board. The Committee shall select a Chairman from their number and
designate a Secretary,  who need not be a member of the Committee and who may be
a participant  under the Plan.  The Committee  described  herein may be the same
Committee  which  administers  the Company's 2004 Incentive  Stock Plan,  unless
otherwise determined by the Board.

         (b) The Secretary of the  Committee  shall keep minutes of its meetings
and of any actions  taken by it without a meeting.  A majority of the  Committee
shall  constitute  a quorum  and all acts of the  majority  shall be acts of the
Committee.  Any action  that may be taken at a meeting of the  Committee  may be

taken  without a meeting if a consent or consents in writing  setting  forth the
action  taken  shall be  signed  by all of the  members  of the  Committee.  The
Committee  shall  meet at  such  time  and  place  as the  Chairman  or,  in the
Chairman's  absence,  any  member  may  designate.   The  Committee  shall  make
appropriate reports to the Board concerning the operations of the Plan.

         (c) The  Committee  shall have full power to construe and interpret the
Plan;  to  determine  (subject to Article II) the persons who shall  participate
under the Plan and the amount of their  target and actual  awards;  to establish
performance  measures,  goals and  formulas  in addition  to the  provisions  of
Article III below; to review Company and individual participant  performance and
make  determinations  on the  extent  to which  (i) such  performance  meets the
Committee's  established standards,  (ii) awards are payable, (iii) acceleration
of vesting or adjustment to target or actual award  conditions  are  appropriate
either on an individual participant or plan-wide basis, and to determine any and
all  questions  arising  under  the  Plan.  All  determinations,  constructions,
interpretations,  rules and  regulations  made pursuant to this Section shall be
recorded by the Committee in its minutes,  and shall be  conclusive  and binding
upon the Company and all participants.

     1.3 MAXIMUM NUMBER OF SHARES

         The maximum number of shares of the Company's  common stock that may be
issued for all purposes under this Plan shall be 1,400,000.

                                   ARTICLE II
                             ELIGIBILITY FOR AWARDS

     2.1 GENERAL ELIGIBILITY

         The Committee,  after consulting with  management,  shall determine and
announce  the persons who shall be  eligible  for awards  under the Plan and the
amount of such  awards.  Eligibility  shall be limited to  directors,  officers,
consultants,  advisors,  and  employees  of the  Company  (and  their  designees
reasonably  acceptable  to the  Committee)  who have made or  expected to make a
meaningful distribution towards the accomplishment of the Company's goals.

     2.2 OTHER ANNUAL INCENTIVE PLANS OR ARRANGEMENTS

         The  existence of the Plan shall not  preclude  the  operation of other
incentive plans or arrangements in the Company and/or its subsidiaries.

     2.3 ELIGIBILITY

         (a) In addition to those  employees who may be eligible to  participate
in the Plan pursuant to Section 2.1, the following incumbent  participants shall
receive awards under the Plan (provided each such  individual is employed by the
Company at the time of award):

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NAME                               POSITION
----                               --------

William H. Pursley                 CEO and Chairman of the Board of Directors        576,000

Norman W. Barton, M.D., Ph.D.      EVP, Chief Medical Officer                        210,000

Alfred Stracher, Ph.D.             SVP, Chief Scientific Officer                     105,000

Leo Kesner, Ph.D.                  VP, Research                                      105,000

Donald W. Fallon                   SVP, Finance & Administration, CFO                 96,000

Leslie de Vos, RN, MSN             VP, Project Management & Clinical Operations       46,400

Theresa Michele, M.D.              VP, Clinical Research                              46,400

Francis Zbikowski                  VP, Business & Commercial Development              46,400

Mary Brinker                                                                           6,400

Tomoka Davidsen                                                                        6,400

Harbor Trust                                                                         156,000
                                                                                     -------
                                                                                   1,400,000

         Such  awards  shall  be in the  form  of  non-qualified  stock  options
("Options") to acquire shares of the Company's  Common Stock, par value $0.00001
per share  ("Common  Stock") and shall have an  exercise  price equal to the par
value per share of Common  Stock.  All awards of Options under the Plan shall be
fully vested upon  issuance and may be exercised  only for shares of  Restricted
Stock in the Company  containing  such  restrictions  as the Company in its sole
discretion shall  determine,  and such Restricted Stock shall, as a condition of
awards  hereunder  and the  issuance  of the  Option and the  Restricted  Stock,
continue to be subject to identical restrictions set forth in Section 2.3(d)-(i)
hereof (and any other restrictions imposed by the Committee),  and be subject in
all respects to a Buy-Sell Agreement with the Company in the form established by
the Company for such purpose.  By accepting such award, each participant  agrees
to such terms and conditions and to be bound by such agreements and the terms of
this Plan.

         (b) A change or changes in the  positions  held by each such  incumbent
officer shall not affect the right to participate in the Plan.

         (c) The number of shares  ("Number")  designated for issuance under the
Plan and individually to Plan participants  under paragraph 2.3(a) hereof may be
revised by the Committee  without  consent of any recipient of any award or Plan
participant in the event that the pre-money  value per share of the Company that
is determined in connection with the Company's next round of financing, or price
per share of Common Stock indicated thereby,  ("Qualified  Financing") is higher

                                       3

or lower than the Assumed  Company  Value.  For the  purposes  hereof,  "Assumed
Company Value" shall mean $16 million based upon 3.2 million issued shares, at a
value of $5.00 per share, post-split.

         (d) Each  eligible  participant  under the Plan,  by  acceptance of any
award under the Plan, irrevocably constitutes and appoints the Committee and the
Secretary  of  the  Company  (or  such  other  Person  as is  designated  by the
Committee) with full power of substitution its true and lawful attorney,  in his
name, place and stead, to make, execute, sign, acknowledge, record and file with
respect to the Company:  (i) any  certificate or other  instrument  which may be
required to be filed by the  Company  under the laws of the State of Florida and
any other  jurisdiction  whose laws may be applicable  which the Committee shall
deem  advisable to file to effectuate  the intent and purposes of this Paragraph
2.3; (ii) any and all amendments of the  instruments  described in the preceding
sentence,  provided such  amendments are either  required by law to be filed, or
are consistent  with this intent and purposes of this Paragraph 2.3 or have been
duly  authorized by the Committee;  (iii) any  certificate  or other  instrument
which may be deemed  necessary or desirable to effect the revision to the Number
or the  portion  of the  Number of shares of the  Company  issued or for which a
participant  under the Plan is or may become eligible for in accordance with the
terms hereof; and (iv) to indicate in the stock transfer records and other books
and records of the Company,  and of any transfer agent of the Company,  that the
Committee has taken such action.

         (e) The grant of authority  under this  Paragraph 2.3 is: (i) a special
power of attorney,  coupled with an interest,  is irrevocable  and shall survive
the death or legal capacity of each Plan  participant  granting the power;  (ii)
exercisable  by the  Committee  (or the holder of such  power) on behalf of each
participant by a facsimile  signature or by listing all of the Plan participants
so executing any instrument with a single signature as attorney-in-fact  for all
of them; and (iii) shall survive the delivery of any transfer or assignment by a
Plan participant of the whole or any portion of its interest,  except that where
the assignee  thereof has been approved by the Committee,  the Power of Attorney
shall survive the delivery of such  assignment  for the sole purpose of enabling
the  Committee  to execute,  acknowledge  and file any  instrument  necessary to
effect such substitution, in each case, without any further action or consent of
the participant.  In the event of any exercise of this power of attorney, prompt
notice  shall be given the  participant(s)  effected  by such  action,  but such
notice shall not be required for the effectiveness of such action.

         (f) The  Committee  may place  such  restrictions  on the shares of the
Company's common stock awarded to a Plan participant hereunder as the Committee,
in  its  absolute  discretion,   determines.   In  the  absence  of  a  specific
determination by the Committee,  any shares of the Company's common stock issued
under the Plan shall be "restricted shares" which may not be sold,  transferred,
assigned,  including  by  court  order  operation  of law,  equitable  or  other
distribution  after  divorce  or  separation,   settlement,   exchange,  waiver,
abandonment,  gift,  alienation,  bequest  or  disposal,  and may not be pledged
without the  consent of the  Committee  which  shall vest and such  restrictions
shall lapse,  upon the filing of an IND application  with the United States Food
and Drug  Administration  (FDA) for a Phase III clinical trial for the Company's

                                       4

"Myodor"  technology,  provided such date is not less than six months  following
the date of award.  In the event a participant  that is an employee ceases to be
an employee of the Company  prior to the date at which the  restrictions  lapse,
all options and shares of  Restricted  Stock held by such person shall revert to
the Company or, at his sole election, to William Pursley or his designee. In the
event of a Change in Control all  restrictions  theretofore  established  by the
Committee in respect of shares of the  Company's  common stock (other than those
relating  to  federal  and  state  securities  laws) or under  this  Plan  shall
immediately lapse.

         (g) For  purposes  of this  Article II,  "Change in Control"  means and
shall be deemed to have occurred if:

              (i) the direct or indirect  acquisition,  whether by sale, merger,
consolidation,  or purchase,  of assets or stock, by any person,  corporation or
other entity or group thereof, of the beneficial ownership (as that term is used
in Section 13(d)(1) of the Securities Exchange Act of 1934, as amended,  and the
rules and regulations  promulgated thereunder) of shares of voting securities of
the Company which,  when added to any other shares the  beneficial  ownership of
which is held by the acquirer,  shall result in the acquirer's  having more than
50% of the votes that are entitled to be cast at meetings of stockholders of the
Company as to matters on which all  outstanding  shares are entitled to be voted
as a single class; provided, however, that such acquisition shall not constitute
a Change in Control  for  purposes of this Plan if prior to such  acquisition  a
resolution  declaring  that the  acquisition  shall not  constitute  a Change in
Control  is adopted  by the Board  with the  support of a majority  of the Board
members who either were members of the Board for at least two years prior to the
date of the vote on such  resolution or were nominated for election to the Board
by at least two-thirds of the directors then still in office who were members of
the Board at least two years  prior to the date of the vote on such  resolution;
and provided further that neither the Company, nor any person who as of December
9, 2004 was a  director  or  officer of the  Company,  nor any  trustee or other
fiduciary holding securities under an employee benefit plan of the Company,  nor
any  corporation  owned,  directly or  indirectly,  by the  stockholders  of the
Company in  substantially  the same  proportions as their ownership of shares of
the Company shall be deemed to be an "acquirer" for purposes of this Article II;
or

              (ii) the individuals  who, as of December 9, 2004,  constitute the
Board or who  thereafter  are  elected  to the  Board  and  whose  election,  or
nomination  for  election,  to the  Board  was  approved  by a vote of at  least
two-thirds (2/3) of the directors then still in office who either were directors
as of  December  9,  2004 or whose  election  or  nomination  for  election  was
previously so approved  (the  "Continuing  Directors"),  cease for any reason to
constitute a majority of the members of the Board; or

              (iii)  the   stockholders   of  the  Company   approve  a  merger,
consolidation,  recapitalization  or  reorganization  of the Company,  a reverse
stock  split of  outstanding  voting  securities,  or  consummation  of any such
transaction  if  shareholder  approval  is not  obtained,  other  than  any such
transaction  which  would  result  in at least  75% of the  total  voting  power
represented  by the  voting  securities  of  the  surviving  entity  outstanding

                                       5

immediately after such transaction being  Beneficially  Owned by at least 75% of
the holders of outstanding voting securities of the Company immediately prior to
the transaction,  with the voting power of each such continuing  holder relative
to other such continuing  holders not substantially  altered in the transaction;
or

              (iv) the  stockholders  of the Company  approve a plan of complete
liquidation  of the Company or an agreement for the sale or  disposition  by the
Company of all or substantially all of the Company's assets;

provided, however, that an event or transaction that would otherwise be deemed a
Change in Control  shall not be deemed a Change in Control if the Board adopts a
resolution approved by a vote of at least two-thirds (2/3) of the directors then
still in office who are Continuing  Directors,  not later than 60 days after the
Company  receives  notice of the event or  transaction  constituting a Change in
Control  under  (i)  above and not  later  than the  occurrence  of the event or
transaction  constituting  a  Change  in  Control  under  (iii)  or (iv)  above,
determining  that such event or  transaction  should not  constitute a Change in
Control for purposes of the Plan.

         For  purposes  of this  Section 3,  "Beneficial  Owner,"  "Beneficially
Owns," and "Beneficial Ownership" shall have the meanings ascribed to such terms
for  purposes  of  Section  13(d) of the  Securities  Exchange  Act of 1934,  as
amended, and the rules and regulations promulgated thereunder.

         (h)  Notwithstanding  anything to the contrary  contained  herein,  all
certificates  for shares of the Company's  Common Stock delivered under the Plan
pursuant  to any award shall be subject to such  stop-transfer  orders and other
restrictions  as the  Committee  may  deem  advisable  under  federal  or  state
securities laws, rules and regulations thereunder, and the rules of any national
securities  exchange  or  automated  quotation  system on which such  shares are
listed or quoted.  Shares of the Company's  Common Stock subject to restrictions
may not be sold, assigned, transferred,  pledged or otherwise encumbered, except
as  hereinafter  provided,  during  the  restriction  period.  Except  for  such
restrictions on transfer, the participant, as owner of such shares of restricted
stock,  shall have all the rights of a holder of such restricted stock including
the right to vote such shares,  provided,  however,  such  restricted  stock may
contain  limitations  on the  right to vote  restricted  stock  or the  right to
receive  dividends  thereon and restrictions  that may lapse  separately,  or in
combination at such times, under such  circumstances,  in such installments,  or
otherwise,  as the Committee shall determine at the time of grant or thereafter.
The  Company  shall  cause  a  legend  or  legends  to be  placed  on  any  such
certificates  to make  appropriate  reference to such  restrictions or any other
restrictions that may be applicable to such shares, including under the terms of
the Plan.  In  addition,  during any period in which such  shares are subject to
restrictions  under the  terms of the Plan or during  any  period  during  which
delivery or receipt of such shares has been  deferred by the Committee or a Plan
participant,  the  Committee  may  require  the  Participant  to  enter  into an
agreement  providing  that  certificates  representing  such shares  issuable or
issued pursuant to an award shall remain in the physical  custody of the Company
or such other person as the Committee may  designate.  At the  expiration of any

                                       6

such restricted  period, the Company shall redeliver to the participant (or such
participant's legal or designated  beneficiary) the shares deposited pursuant to
Section 3.2.

                                  ARTICLE III
                            TIMING AND FORM OF AWARDS

     3.1 TIMING OF PAYMENT

         (a) Awards may be paid as soon as practicable  after  determination  by
the Committee, or otherwise deferred in accordance with Section 3.1(b).

         (b) The Committee may also in its sole  discretion  establish terms and
conditions  under  which a  participant  may  elect to defer the  payment  of an
incentive  award in whole or in part to a period  following  retirement or other
termination  of  employment,  provided that any election by an employee to defer
payment  shall be  irrevocably  made by the  participant  at such time  prior to
December 31 of the year preceding the Plan Year for which such  incentive  award
shall be made (or such other appropriate time for a deferral election as is then
appropriate  under  applicable law) as the Committee  shall determine  (provided
that if the  determination  of eligibility is made  subsequent to December 31, a
participant  must make such election within ten days of being notified he or she
is eligible to participate).

     3.2 CUSTODY

         All shares of Restricted Stock and  certificates  therefor issued under
the Plan shall remain in the custody of the Secretary of the Company, subject to
adjustment and replacement as provided in Section  2.3(c)-(e)  hereof unless and
until the Committee directs delivery to the Plan  participants,  individually or
collectively, or until expiration of the restrictions thereon.

                                   ARTICLE IV
          DISTRIBUTION OR TRANSFER - WITHHOLDING OF TAX - MISCELLANEOUS

     4.1 LIMITATION ON DISTRIBUTION OR TRANSFER OF AWARDS.

         Unless otherwise  determined by the Committee,  no right or interest of
any  participant in any awards under the Plan shall be pledged,  encumbered,  or
hypothecated  to or in favor of any party  other than the  Company,  or shall be
subject to any lien,  obligation,  or liability of such participant to any party
other than the Company.  Unless otherwise determined by the Committee,  no award
shall be assignable or transferable  by a participant  otherwise than by will or
the laws of descent and distribution and pursuant to a domestic  relations order
as defined by the Internal  Revenue Code of 1986, as amended,  or Title I of the
Employee Retirement Income Security Act of 1974, as amended.

     4.2 NO RIGHT TO EMPLOYMENT

         Nothing contained in the Plan or any participant's participation in the
Plan shall  confer,  and no grant of an award shall be construed as  conferring,
upon any  participant,  any right to continue in the employ of the Company or to

                                       7

interfere  in  any  way  with  the  right  of  the  Company  to  terminate  such
participant's  employment at any time or increase or decrease such participant's
compensation.

     4.3 GOVERNING LAW

         The  validity,  construction,  and effect of the Plan and any rules and
regulations  relating to the Plan shall be  determined  in  accordance  with the
internal  laws of the State of Florida,  without  giving effect to principles of
conflicts of laws, and applicable federal law.

     4.4 WITHHOLDING OF TAXES

         The Company shall have the right to deduct from any incentive  award or
other  amount  to be paid  pursuant  to this  Plan,  or to  otherwise  require a
participant to pay prior to any such payment, all Federal,  State or local taxes
required by law to be withheld in respect of such payment.

     4.5 GENERAL RESTRICTIONS

         Each award of shares of the Company's common stock under the Plan shall
be subject to the condition  that, if at any time the Committee  shall determine
that (i) the  listing,  registration  or  qualification  of the Shares  upon any
securities  exchange  or under any state or  federal  law,  (ii) the  consent or
approval of any  government  or  regulatory  body or (iii) an  agreement  by the
Participant  with respect  thereto,  is necessary or desirable,  then such award
shall  not  be  consummated,   in  whole  or  in  part,   unless  such  listing,
registration,  qualification,  consent,  approval or  agreement  shall have been
effected or obtained free of any conditions not acceptable to the Committee.

     4.6 HOLDBACK

         If the Company files a  registration  statement in  connection  with an
underwritten  public  offering,  or  otherwise  determines  it to be in the best
interest of the  Company,  a holder of  Restricted  Stock  issued under the Plan
shall not effect any sale or distribution of any shares (except pursuant to such
registration  statement) of the capital stock of the Company,  whether now owned
or hereafter  acquired  during a reasonable  and  customary  period of time,  as
agreed to by the Company and the  underwriters  or otherwise  determined  by the
Company,  not to exceed 180 days, following the effective date of a registration
statement  filed under the Securities Act in connection with any public offering
or sales of the  Company  (or its  stockholders)  pursuant  to any  registration
statement  and,  not to  exceed  90  days,  following  the  effective  date of a
registration  statement  filed under the Securities  Act in connection  with the
next two subsequent  registered offerings of the Company (other than pursuant to
form S-8  registering  employee  securities).  In order to enforce the foregoing
covenant, the Company may impose stop-transfer  instruction with respect to each
holder until the end of such reasonable and customary period.

                                       8

                                   ARTICLE V
               EFFECTIVE DATE, AMENDMENT, AND TERMINATION OF PLAN

     5.1 EFFECTIVE DATE

         The Plan shall become effective as of December 9, 2004.

     5.2 AMENDMENT, SUSPENSION AND TERMINATION OF PLAN

         The Board of Directors of the Company or the  Committee  may suspend or
terminate the Plan or any portion thereof at any time and may amend,  subject to
obtaining  requisite  stockholder  approval  for those  amendments  required  to
preserve the tax  deductibility  of compensation in excess of $1 million paid to
executives  of the  Company  or the  compliance  by the  Plan  and  transactions
occurring  under the Plan with Rule 16b-3 under the  Securities  Exchange Act of
1934 or as may  otherwise be required by law, the Plan from time to time in such
respects as the Board of Directors or the  Committee  may deem  advisable and in
the best interest of the Company.

     5.3 RESTRICTIONS UNDER RULE 16B-3

         Unless a  participant  is not subject to  short-swing  liability  under
Section 16(b) of the  Securities  Exchange Act of 1934 in respect of the sale or
other  transfer of shares of common stock of the Company  issued under the Plan,
such shares of common  stock shall be held for at least six months from the date
of grant.

     5.4 COMPLIANCE WITH RULE 16B-3

         It is the intent of the Company  that this Plan comply in all  respects
with Rule 16b-3  under the  Securities  Exchange  Act of 1934 (or any  successor
rule) in connection with any Award granted to a person who is subject to Section
16 of the Securities  Exchange Act of 1934.  Accordingly,  any provision of this
Plan that does not comply with the  requirements of Rule 16b-3 (or any successor
rule) as then applicable to any such person shall be construed or deemed amended
to the  extent  necessary  to  conform to such  requirements,  except  that such
automatic  amendment shall not apply to any other participant who is not (at the
time of such application)  subject to Section 16 of the Securities  Exchange Act
of 1934.

                                             CEPTOR CORPORATION
                                             December 9, 2004

                                       9

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