Document:

EXHIBIT 10.1

NONQUALIFIED
STOCK OPTION AGREEMENT

        This
STOCK OPTION AGREEMENT (the "Agreement") is made between FURR'S
RESTAURANT GROUP, INC., a Delaware corporation (the "Company"),
and Craig Miller (the "Executive"). 

        The
Company considers that its interests will be served by granting the Executive an
option to purchase shares of common stock of the Company as an inducement for
the Executive's effective performance of services for the Company. The Board of
Directors of the Company (the "Board") has adopted, and the
stockholders have approved, the 1995 Stock Option Plan of Furr's/Bishop's
Incorporated (the "Plan"), a copy of which is attached hereto
and incorporated by reference herein. The Executive has been designated as a
participant in the Plan. 

                        
         IT IS AGREED:

1.        Subject to the terms of
the Plan, on May 21, 2002 (the "Date of Grant"), the Company
hereby grants to the Executive an option (the "Option") to
purchase 600,000 shares of the common stock of the Company, $.01 par value per
share, at a price of $4.50 per share as to 200,000 shares
("Tranche A"), at a price of $5.25 per share as to 200,000
shares ("Tranche B"), and at a price of $6.00 per share as
to 200,000 shares ("Tranche C"), such number of shares and
exercise prices being subject to adjustment as provided in the Plan (the
"Option Price"). The Option is exercisable according to the
following schedule: 

       (a)        On October 10, 2002
(the “Vesting Date”), the Option may be exercised with respect to up
to 1/3 of the shares subject to the Option included in Tranche A, 1/3 of the
shares subject to the Option included in Tranche B and 1/3 of the shares
subject to the Option included in Tranche C; and 

       (b)        After each succeeding
anniversary of the Vesting Date, the Option may be exercised with respect to up
to an additional 1/3 of the shares subject to the Option in each of
Tranche A, Tranche B and Tranche C, so that after the expiration of
the second anniversary of the Vesting Date (i.e. October 10, 2004) the Option
will have been vested in full; and 

       (c)       
     to the extent not exercised, installments will be cumulative, and may be exercised in whole or in part; and

       (d)        the Option will become
fully vested and exercisable upon the termination of the Executive's status as
the Company's Chief Executive Officer at any time within twelve months following
the occurrence of a "change of control," other than a termination of
Executive's employment by the Company for "cause" or by the Executive
other than for "good reason," as such terms are defined in the
Employment Agreement between Executive and the Company of even date herewith. 

        A
"Change of Control" of the Company will be deemed to exist upon
the occurrence of any of the following events, if, as a result of such event, or
within twelve months thereafter, the individuals who constituted the Board
immediately prior to such event no longer constitute a majority of the members
of the Board: 

       (i)        The Company is merged,
consolidated or reorganized (each a "Combination") into or with
another corporation or other legal person and as a result of such merger,
consolidation or reorganization less than 50% of the voting securities of the
remaining corporation or legal person or its ultimate parent immediately after
such transaction is available to be received by all shareholders of the Company
on a pro rata basis and is actually received in respect of or exchange for
voting securities of the Company pursuant to such transactions, excluding any
Combination with any person or group, or an affiliate of a person or group,
owning at least ten percent (10%) of the common stock of the Company as of
October 1, 2001 (a "Related Party"). 

       (ii)        The Company sells all
or substantially all of its assets to any other corporation or other legal
person (other than a Related Party) and as a result of such sale less than 50%
of the combined voting securities of such corporation or legal person or its
ultimate parent immediately after such transaction is available to be received
by all shareholders of the Company on a pro rata basis and is actually received
in respect of or exchange for voting securities of the Company pursuant to such
sale; or 

       (iii)        Any person or group
(including any "person" or "group" as such terms are used in
Section 13 or Section 14 of the Securities Exchange Act of 1934 and
the regulations thereunder (the "Exchange Act")), excluding
from such "group" any Related Party, has become the beneficial owner
(as the term "beneficial owner" is defined under the Exchange Act) of
voting securities which, when added to any voting securities already owned by
such person, would represent in the aggregate 50% or more of the then
outstanding voting securities of the Company. "Voting securities"
means common stock and any other security which carries, or which is at the time
of determination convertible into or exercisable to acquire a security that
carries, the right to vote upon the election of the board of directors of the
Company, with the number of such voting securities to be determined by reference
to the number of votes that the holder could cast in the election of directors
on a fully converted or exercised basis. 

Notwithstanding paragraphs (a) and (b) of this Section 1, the foregoing vesting schedule can be accelerated by action of the board of
directors of the Company in its discretion.

2.        The Option granted to
the Executive under this Agreement will not be transferable or assignable by the
Executive other than by will or the laws of descent and distribution, and will
be exercisable during the Executive's lifetime only by the Executive. 

3.        The Option, to the
extent such rights will not previously have been exercised, will terminate and
become null and void (except in the case of the occurrence of a Change of
Control as provided below) on the earliest of: (a) the last day within the
ten year period commencing on the Date of Grant (the "Expiration
Date"); (b) the date that is 90 days after the date of termination
of the Executive's service as Chief Executive Officer of the Company for any
reason other than death or disability, as defined in the plan
("Disability"); (c) the date that is 180 days after the
date of the termination of the Executive's service as Chief Executive Officer of
the Company because of death or Disability. In the event of the termination of
the Executive's service as Chief Executive Officer of the Company for any reason
prior to the Expiration Date, the Option will not continue to vest after such
termination; provided that if a Change of Control of the Company occurs within
180 days after the date of termination of the Executive’s employment by the
Company without “cause,” as defined in Executive’s Employment
Agreement of even date, or within 180 days after the date of termination of the
Executive’s employment by Executive for “good reason,” as defined
in Executive’s Employment Agreement of even date, then the Option will not
be deemed to have terminated, and will continue to vest, and will be
exercisable, until the date that is ten (10) business days after the date of the
Change of Control of the Company. Upon the death of the Executive, the
Executive's executors, administrators or any person or persons to whom this
Option may be transferred by will or by the laws of descent and distribution,
will have the right to exercise the Option with respect to the number of shares
that the Executive would have been entitled to exercise if the Executive were
still alive. 

4.        This Agreement may not
be changed or terminated orally but only by an agreement in writing signed by
the party against whom enforcement of any such change or termination is sought. 

5.        The Company will not be
deemed by the grant of the Option (as distinguished from a separate employment
agreement, if any) to be required to continue the Executive's service or to
nominate the Executive for election as a director. 

6.        The Executive will not
have any rights as a stockholder with respect to any shares covered by the
Option until the date of the issuance of the stock certificate or certificates
to the Executive for such shares following exercise of the Option pursuant to
its terms and conditions and payment for the shares. No adjustment will be made
for dividends or other rights for which the record date is prior to the date
such certificate or certificates are issued. 

7.        The Executive consents
to the placing on the certificate for any shares covered by the Option of an
appropriate legend restricting resale or other transfer of such shares except in
accordance with the Securities Act of 1933 and all applicable rules thereunder. 

8.        In the event of any
difference of opinion concerning the meaning or effect of the Plan or this
Agreement, such difference will be resolved by the committee referred to in the
Plan. 

9.        The validity,
construction and performance of this agreement will be governed by the laws of
the State of Delaware. Any invalidity of any provision of this Agreement will
not affect the validity of any other provision. 

10.       All offers, notices,
demands, requests, acceptances or other communications hereunder will be in
writing and will be deemed to have been duly made or given if mailed by
registered or certified mail, return receipt requested. Any such notice mailed
to the Company must be addressed to its principal office, and any notice mailed
to the Executive must be addressed to the Executive's residence address as it
appears on the books and records of the Company or to such other address as
either party may hereafter designate in writing to the other. 

11.        This Agreement will,
except as herein stated to the contrary, inure to the benefit of and bind the
legal representatives, successors and assigns of the parties hereto. 

12.             This Option is a nonqualified  stock option and is not intended to be governed by section 422 of the Internal  Revenue Code of
1986, as amended.

13.        In accepting this
Option, the Executive accepts and agrees to be bound by all the terms and
conditions of the Plan that pertain to nonqualified stock options granted under
the Plan. 

              
         IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the Date of Grant.

THE COMPANY:

FURR'S RESTAURANT GROUP, INC.

By:            
                            
                            

         
     Damien Kovary, Chairman of the Board

EXECUTIVE:

    
            
                            
                            

         

     Craig Miller<PAGE>
                                                                     Exhibit 4.1

                            STOCK PURCHASE AGREEMENT

        THIS STOCK PURCHASE AGREEMENT (the "Agreement"), is dated as of August
18, 2002, by and among HILAL CAPITAL, L.P. ("Hilal Capital"), HILAL CAPITAL QP,
LP ("Hilal QP"), HILAL CAPITAL INTERNATIONAL LTD. ("HCI"), HILAL CAPITAL
ASSOCIATES LLC ("HCA"), Mr. Peter Hilal ("Hilal"), Mr. Paul Hilal, Mr. Philip
Hilal, Ms. Diane Hilal-Campo, Estate of Sadek Hilal, Cynthia Hilal 2000 Family
Trust, Ms. Cynthia Hilal, Diane Hilal-Campo in custody for Catherine Marie,
Diane Hilal-Campo in custody for Cynthia Mary, and APPLIED MOLECULAR EVOLUTION,
INC., a Delaware corporation (the "Company" or the "Purchaser"). Hilal Capital,
Hilal QP, HCI, HCA, Hilal, Mr. Paul Hilal, Mr. Philip Hilal, Ms. Diane
Hilal-Campo, Estate of Sadek Hilal, Cynthia Hilal 2000 Family Trust, Ms. Cynthia
Hilal, Diane Hilal-Campo in custody for Catherine Marie and Diane Hilal-Campo in
custody for Cynthia Mary are hereinafter referred to individually as a "Seller,"
and collectively as, the "Sellers."

        WHEREAS, the Sellers desire to sell, and the Purchaser desires to
purchase, shares of the Company's capital stock as herein described, on the
terms and conditions hereinafter set forth:

        NOW, THEREFORE, it is agreed between the parties as follows:

        1. (a) Subject to the terms and conditions of this Agreement, the
Sellers agrees to sell to the Purchaser at the Closing (as defined below), and
the Purchaser agrees to purchase from the Sellers at the Closing, that number of
shares of the Company's common stock, par value $0.001 per share, set forth
opposite such Seller's name on Annex A hereto (the "Shares") (1,873,111 Shares
in the aggregate), for a purchase price of $3.89 per share ($7,286,401.79 in the
aggregate). The Sellers and the Company represent, warrant, and covenant to each
other that there are no broker's fees or commissions to be paid in connection
with the transactions contemplated hereby.

        (b) The purchase and sale of the Shares hereunder shall occur at the
offices of Pillsbury Winthrop LLP, 50 Fremont Street, San Francisco, California,
at 10:00 a.m. (P.S.T.) on Tuesday, August 20, 2002, or such other time and/or
place as the Purchaser and Hilal (on behalf of himself and each of the other
Sellers) shall agree in writing (the "Closing"). At the Closing, each of the
Sellers shall deliver to the Purchaser either (i) certificates representing the
Shares which the Purchaser is purchasing from such Seller, together with a stock
power duly executed or (ii) written evidence satisfactory to the Purchaser of
the Shares having been transferred to Equiserve Trust Company (150 Royall
Street, Canton, Massachusetts 02021; Telephone: (781) 575-3452; Telefax: (781)
575-2149; Attention: Mr. Gregory Veliotis) ("Equiserve") for the account of the
Purchaser, in either case against delivery to each such Seller by the Purchaser
of a bank wire in the amount of the purchase price therefor payable to such
Seller's order.

        2. Each of the Sellers covenants, represents and warrants to the Company
as follows:

        (a) Such Seller will (i) cause certificates for the number of Shares to
be sold by such Seller hereunder to be delivered to the Company, endorsed in
blank or with blank stock powers duly executed (in each case, a "Stock Power"),
with a signature appropriately guaranteed or (ii) provide

<PAGE>

written evidence satisfactory to the Purchaser of the Shares having been
transferred to Equiserve for the account of the Purchaser. Such Seller agrees to
furnish to the Company such other documentation which may be reasonably
necessary or appropriate to transfer record ownership of the such Seller's
Shares to the Company.

        (b) This Agreement and the Stock Power have each been duly authorized,
executed and delivered by or on behalf of such Seller and, assuming due
authorization, execution and delivery by the Company, constitute the valid and
legally binding agreements of such Seller, enforceable against such Seller in
accordance with its terms.

        (c) Such Seller has, and as of the Closing will have, valid and
marketable title to the Shares to be sold by such Seller free and clear of any
and all liens, claims, security interests or other encumbrances, including,
without limitation, any restriction on transfer.

        (d) Such Seller has, and as of the Closing will have, full legal right,
power and authorization, and any approval required by law, to sell, assign,
transfer and deliver the Shares to be sold by such Seller in the manner provided
by this Agreement.

        3. The Company represents and warrants to each of the Sellers as
follows:

        (a) This Agreement has been duly authorized, executed and delivered by
or on behalf of the Company and, assuming due authorization, execution and
delivery by each of the Sellers, constitutes the valid and legally binding
agreement of Company, enforceable against Company in accordance with its terms.
The Company has all requisite corporate power and authority to enter into and
perform its obligations under this Agreement.

        (b) The execution, delivery and performance of this Agreement by the
Company (i) do not contravene, violate, conflict with or result in any breach of
the terms of the Company's certificate of incorporation or by-laws; (ii) do not
breach or violate any applicable law, judgement, order, decree, permit, or
regulation; and (iii) do not contravene, violate, conflict with or result in any
breach of the terms or the creation of any lien under, any contract, or other
undertaking to which the Company is bound, or any order or decree relating to
the Company. No approval, consent, exemption, or authorization is required in
connection with the execution, delivery and performance by the Company of this
Agreement.

        4. Each of the Sellers hereby irrevocably nominates, constitutes and
appoints Hilal as the agent and representative of the Sellers, to act in the
name, place and stead of the Sellers in connection with this Agreement and the
transactions contemplated hereby; and Hilal accepts such appointment. Each of
the Sellers hereby grants to Hilal full authority to execute, deliver,
acknowledge, certify and file on behalf of the Sellers any and all documents
(including any amendment of or waiver of rights under this Agreement) that Hilal
may, in his sole discretion, determine to be necessary, desirable or appropriate
for any purpose, in such form and containing such provisions as Hilal may, in
his sole discretion, determine to be appropriate including, without limitation,
the authority to receive notice of, determine, accept service of process,
contest, settle, arbitrate or make claims under this Agreement, and agrees to be
bound in all respects by any act or failure to act of Hilal in connection with
this Agreement and the transactions contemplated hereby. The Purchaser shall be
entitled to (a) deal exclusively with Hilal on all matters relating to the
Sellers under this Agreement and the transactions contemplated hereby and (b)
rely conclusively on any document executed on behalf of the

<PAGE>

Sellers by Hilal, and on any other action taken on behalf of the Sellers by
Hilal, as being fully binding upon all of the Sellers.

        5. The parties agree to execute such further instruments and to take
such further action as may reasonably be necessary to carry out the intent of
this Agreement.

        6. Subject to the provisions of Section 4 hereof, any notice required or
permitted hereunder shall be given in writing and shall be deemed effectively
given upon the receipt, addressed to the other party hereto at his address
hereinafter shown below his signature or at such other address as such party may
designate by advance written notice to the other party hereto.

        7. This Agreement shall inure and be binding upon the Company and each
of the Sellers, and their respective permitted successors and assigns. No waiver
of any breach or condition of this Agreement shall be deemed to be a waiver of
any other or subsequent breach or condition, whether of a like or different
nature.

        8. This Agreement shall be governed by and construed in accordance with
the laws of the State of California, without regard to its choice of laws
principles.

        9. Subject to the provisions of Section 4 hereof, no modification of
this Agreement shall be valid unless made in writing and signed by the parties
hereto.

        10. This Agreement constitutes the entire complete and final agreement
between the Company and each of the Sellers regarding the sale of the Shares
from the Sellers to the Company. Any and all prior agreements and negotiations
are merged herein.

        11. This Agreement may be signed in one or more counterparts, which
together shall constitute one and the same instrument.

        12. Irrespective of whether the Closing is effected, each of the parties
hereto shall pay all costs and expenses that each party respectively incurs with
respect to the negotiation, execution, delivery and performance of this
Agreement.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

                                      APPLIED MOLECULAR EVOLUTION, INC., a
                                      Delaware corporation

                                      By:  /s/ Lawrence E. Bloch, M.D., J.D.
                                         ---------------------------------------
                                         Lawrence E. Bloch, M.D., J.D.
                                         Chief Financial Officer

                                      Address:  3520 Dunhill Street
                                                San Diego, CA 92121

<PAGE>

                                              HILAL CAPITAL, LP

 /s/ Peter Hilal, M.D.                        By: /s/ Peter Hilal, M.D.
-------------------------------------            ------------------------------
Mr. Peter Hilal, on behalf of                    Name: Peter Hilal, M.D.
himself and each of Mr. Paul Hilal,              Title: Managing Member of
Mr. Philip Hilal, Ms. Diane                             General Partner
Hilal-Campo, Estate of Sadek Hilal,           Address:
Cynthia Hilal 2000 Family Trust,
Ms. Cynthia Hilal, Diane Hilal-Campo
in custody for Catherine Marie
and Diane Hilal-Campo in custody
for Cynthia Mary.

Address:

HILAL CAPITAL QP, LP                          HILAL CAPITAL INTERNATIONAL LTD.

By:  /s/ Peter Hilal, M.D.                    By: /s/ Peter Hilal, M.D.
   -------------------------------               ------------------------------
    Name: Peter Hilal, M.D.                       Name: Peter Hilal, M.D.
    Title: Managing Member of                     Title: Managing Member of
           General Partner                               Investment Adviser

Address:                                      Address:

HILAL CAPITAL ASSOCIATES LLC

By: /s/ Peter Hilal, M.D.
   -------------------------------
    Name: Peter Hilal, M.D.
    Title: Managing Member

Address:

<PAGE>

                                                                         ANNEX A

                              SELLING STOCKHOLDERS
<TABLE>
<CAPTION>
      SELLER                                              NUMBER OF SHARES
      ------                                              ----------------
<S>                                                       <C>
Hilal Capital LP                                              185,555

Hilal Capital QP, LP                                          408,333

Hilal Capital International Ltd.                              462,179

Hilal Capital Associates LLC                                        0

Mr. Peter Hilal                                               606,666

Mr. Paul Hilal                                                 61,111

Mr. Philip Hilal                                               34,156

Ms. Diane Hilal-Campo                                          23,333

Estate of Sadek Hilal                                          27,778

Cynthia Hilal 2000 Family Trust                                27,778

Ms. Cynthia Hilal                                              27,778

Diane Hilal-Campo, in custody for Catherine Marie               4,222

Diane Hilal-Campo, in custody for Cynthia Mary                  4,222
                                                            ---------

     Total                                                  1,873,111
                                                            =========
</TABLE>

                                       A-1

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