Document:

01082001 8K Ex1035

                                                      Exhibit 10.35

SECURITIES PURCHASE AGREEMENT

     SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated
as of December 29,
2000, between SangStat Medical Corporation, a corporation organized under the
laws of the State
of Delaware (the "Company"), and the Purchasers listed on
Schedule I attached hereto (each, a
"Purchaser" and collectively, the
"Purchasers").

WHEREAS: 

     A.      The Company and the Purchasers are executing and delivering this
Agreement in
reliance upon the exemption from securities registration afforded by the
provisions of Regulation D
("Regulation D"), as promulgated by the United States
Securities and Exchange Commission (the
"SEC") under the Securities Act of 1933, as amended (the
"Securities Act").

     B.      The Company desires to sell, and the Purchasers desire to purchase,
upon the terms
and conditions stated in this Agreement, shares of the Company's common stock,
par value $.001
per share (the "Common Stock").  The shares of Common Stock
issuable pursuant to this
Agreement are referred to herein as the "Shares." 

     C.      Contemporaneous with the execution and delivery of this Agreement,
the parties
hereto are executing and delivering a Registration Rights Agreement, in the form
attached hereto as
Exhibit A (the "Registration Rights Agreement"),
pursuant to which the Company has agreed to
provide certain registration rights under the Securities Act and the rules and
regulations promulgated
thereunder, and applicable state securities laws.       

     D.      All references herein to monetary denominations shall refer to
lawful money of the
United States of America.

     NOW, THEREFORE, the Company and the Purchasers hereby agree as
follows:

1.   PURCHASE AND SALE COMMON STOCK.

(a)  Purchase of  Shares.  On each Closing Date (as defined
below), subject to the
satisfaction (or waiver) of the conditions set forth in Section 6 and Section 7
below, the Company
shall issue and sell to the Purchasers, and the Purchasers severally agree to
purchase from the
Company, that number of Shares set forth opposite each Purchaser's name on
Schedule I hereto at
a purchase price of $9.50 per share, for the aggregate purchase price and
consideration set forth
opposite such Purchaser's name thereon for such Closing

(b)  Form of Payment.  At each Closing, the Company shall deliver
to each Purchaser a
duly executed certificate or certificates (in such denominations as such
Purchaser may reasonably
request) representing that number of Shares set forth opposite such Purchaser's
name on Schedule
I for such Closing against payment of the purchase price therefor by wire
transfer, in accordance with
the Company's written wiring instructions.

(c)  Closing Date.    The issuance, sale and purchase of the
Shares shall take place in two
separate Closings (each, a "Closing"), the first of which is
referred to herein as the "First Closing"
and the second of which is referred to herein as the "Second
Closing."  Subject to the satisfaction
(or waiver) of the conditions thereto set forth in Section 6 and Section 7
below, the date and time of
the First Closing shall be 12:00 noon, New York City time, on  December 29,
2000, or such other
time as may be mutually agreed upon by the Company and the Purchasers (the
"First Closing
Date").  Subject to the satisfaction (or waiver) of the conditions
thereto set forth in Sections 6 and
7 below, the date and time of the Second Closing shall be 12:00 noon, New York
City time, on
January 5, 2001 (the "Second Closing Date").  Each Closing
shall occur at the offices of Klehr,
Harrison, Harvey, Branzburg & Ellers, LLP, 260 South Broad Street,
Philadelphia, Pennsylvania
19102.

(d)  Participation Right.  Subject to the terms and conditions
specified in this Section 1(d),
for a period of one year after the date that the registration statement (as
defined in the Registration
Rights Agreement) the Company is required to file pursuant to Section 2(a) of
the Registration
Rights Agreement is declared effective, the Purchasers shall have a right to
participate with respect
to future sales by the Company of its capital stock sold in any financings by
the Company involving
(i) equity or equity-linked securities, or (ii) debt which is convertible into
equity or in which there
is an equity component ("Additional Securities").  Each time
the Company proposes to offer any
Additional Securities, the Company shall make an offering of such Additional
Securities to each
Purchaser in accordance with the following provisions:

     (1)     the Company shall deliver a notice (the "Notice")
to the Purchasers stating (i)
its bona fide intention to offer such Additional Securities, (ii) the number of
such Additional
Securities to be offered, (iii) the price and terms, if any, upon which it
proposes to offer such
Additional Securities, and (iv) the anticipated closing date of the sale of such
Additional Securities

     (2)     by written notification received by the Company, within the earlier
of (i) two
days prior to the anticipated closing date or (ii) 10 days after giving of the
Notice, any Purchaser may
elect to purchase or obtain, at the price and on the terms specified in the
Notice, up to that portion
of such Additional Securities which equals the proportion that the number of
shares of Common
Stock purchased by such Purchaser bears to the total number of shares of Common
Stock then
outstanding (assuming full conversion and exercise of all convertible or
exercisable securities then
outstanding). The Company shall promptly, in writing, inform each Purchaser
which elects to
purchase all of the Additional Shares available to it ("Fully-Exercising
Purchaser") of any other
Purchaser's failure to do likewise.  During the five-day period commencing after
such information
is given, each Fully-Exercising Purchaser shall be entitled to obtain that
portion of the Additional
Securities for which the Purchasers were entitled to subscribe but which were
not subscribed for by
the Purchasers which is equal to the proportion that the number of shares of
Common Stock held by
such Fully-Exercising Purchaser bears to the total number of shares of Common
Stock held by all
Fully-Exercising Purchasers who wish to purchase some of the unsubscribed
shares;

     (3)     if all Additional Securities which the Purchasers are entitled to
obtain pursuant
to subsection 1(d)(2) are not elected to be obtained as provided in
subsection 1(d)(2) hereof, the
Company may, during the 90-day period following the expiration of the period
provided in
subsection 1(d)(2) hereof, offer the remaining unsubscribed portion of such
Additional Securities
to any person or persons at a price not less than, and upon terms no more
favorable to the offeree
than those specified in the Notice.  If the Company does not consummate the sale
of such Additional
Securities within such period, the right provided hereunder shall be deemed to
be revived and such
Additional Securities shall not be offered or sold unless first reoffered to the
Purchasers in
accordance herewith;

     (4)     the participation right in this Section 1(d) shall not be applicable
to (i) the
issuance or sale of shares of Common Stock (or options therefor) to employees,
officers, directors,
or consultants of the Company for the primary purpose of soliciting or retaining
their employment
or service pursuant to a stock option plan (or similar equity incentive plan)
approved by the Board
of Directors, (ii) the issuance of securities in connection with a bona fide
underwritten public
offering that results in total proceeds to the Company of at least $25,000,000
or any public offering
if such participation is reasonably deemed by the Company to violate the
Securities Act or, as a result
of the SEC deeming such participation to potentially violate the Securities Act,
such participation
would significantly delay an underwritten public offering of less than
$25,000,000 (iii) the issuance
or sale of  the Shares, or (iv) the issuance of securities in connection with
mergers, acquisitions,
strategic business partnerships or joint ventures (the primary purpose of which,
in the reasonable
judgment of the Board, is not to raise additional capital).

     (5)     the participation right set forth in this Section 1(d) may not be
assigned or
transferred, except that such right is assignable by each Purchaser (i) to any
wholly owned subsidiary
or parent of, or to any corporation or entity that is, within the meaning of the
Securities Act,
controlling, controlled by or under common control with, any such Purchaser,
(ii) to any affiliated
venture capital fund and (iii) to any other transferee, provided that with
respect to (i), (ii) and (iii),
such transfer (and the related participation rights) must include at least
150,000 Shares (as adjusted
for stock splits, consolidations and similar transactions).

1.   PURCHASERS' REPRESENTATIONS AND WARRANTIES.

     Each Purchaser hereby severally represents and warrants to the Company as
follows:

     (a)     Purchase for Own Account, Etc.  Each Purchaser is purchasing
the Shares for the
Purchaser's own account for investment purposes only and not with a present view
towards the
public sale or distribution thereof, except pursuant to sales that are exempt
from the registration
requirements of the Securities Act and/or sales registered under the Securities
Act.  Each Purchaser
understands that it must bear the economic risk of this investment indefinitely,
unless the Shares are
registered pursuant to the Securities Act and any applicable state securities or
blue sky laws or an
exemption from such registration is available, and that the Company has no
present intention of
registering the resale of any such Shares other than as contemplated by the
Registration Rights
Agreement.  Notwithstanding anything in this Section 2(a) to the contrary, by
making the
representations herein, the Purchasers do not agree to hold the Shares for any
minimum or other
specific term and reserves the right to dispose of the Shares at any time in
accordance with or
pursuant to a registration statement or an exemption from the registration
requirements under the
Securities Act.

(b)  Accredited Investor Status.  Each Purchaser is an
"Accredited Investor" as that term
is defined in Rule 501(a) of Regulation D.

     (c)     Reliance on Exemptions.  Each Purchaser understands that the
Shares are being
offered and sold to the Purchaser in reliance upon specific exemptions from the
registration
requirements of United States federal and state securities laws and that the
Company is relying upon
the truth and accuracy of, and such Purchaser's compliance with, the
representations, warranties,
agreements, acknowledgments and understandings of the Purchaser set forth herein
in order to
determine the availability of such exemptions and the eligibility of the
Purchaser to acquire the
Securities.

(d)  Information.  Each Purchaser and its counsel, if any, have
been furnished all materials
relating to the business, finances and operations of the Company and materials
relating to the offer
and sale of the Shares which have been specifically requested by such Purchaser
or its counsel.  Each
Purchaser and its counsel have been afforded the opportunity to ask questions of
the Company and
have received what each Purchaser believes to be satisfactory answers to any
such inquiries.  Neither
such inquiries nor any other investigation conducted by each Purchaser or its
counsel or any of its
representatives shall modify, amend or affect such Purchaser's right to rely on
the Company's
representations and warranties contained in Section 3 below.  Each Purchaser
understands that the
Purchaser's investment in the Shares involves a high degree of risk.

(e)  Governmental Review.  Each Purchaser understands that no
United States federal or
state agency or any other government or governmental agency has passed upon or
made any
recommendation or endorsement of the Shares.

(f)  Transfer or Resale.  Each Purchaser understands that (i)
except as provided in the
Registration Rights Agreement, the sale or resale of the Shares have not been
and are not being
registered under the Securities Act or any state securities laws, and the Shares
may not be transferred
unless (a) the resale of the Shares has been registered thereunder; or (b) the
Purchaser shall have
delivered to the Company an opinion of counsel (which opinion shall be in form,
substance and
scope customary for opinions of counsel in comparable transactions) to the
effect that the Shares to
be sold or transferred may be sold or transferred pursuant to an exemption from
such registration;
or (c) sold under and in compliance with Rule 144 promulgated under the
Securities Act (or a
successor rule) ("Rule 144"); or (d) sold or transferred to an
affiliate of the Purchaser who agrees
to sell or otherwise transfer the Shares only in accordance with the provisions
of this Section 2(f) and
who is an Accredited Investor; and (ii) neither the Company nor any other person
is under any
obligation to register such Shares under the Securities Act or any state
securities laws (other than
pursuant to the Registration Rights Agreement).  Notwithstanding the foregoing
or anything else
contained herein to the contrary, the Shares may be pledged as collateral in
connection with a bona
fide margin account or other lending arrangement, provided such pledge is
consistent with applicable
laws, rules and regulations.

     (g)     Legends.  Each Purchaser understands that until such time as
the Shares have been
registered under the Securities Act (including registration pursuant to Rule 416
thereunder) as
contemplated by the Registration Rights Agreement or otherwise may be sold by
the Purchaser under
Rule 144(k),  certificates for the Shares may bear a restrictive legend in
substantially the following
form:

             The securities represented by this certificate have not been
registered
under the Securities Act of 1933, as amended, or the securities laws
of any state of the United States or in any other jurisdiction.  The
securities represented hereby may not be offered, sold or transferred
in the absence of an effective registration statement for the securities
under applicable securities laws unless offered, sold or transferred
pursuant to an available exemption from the registration requirements
of those laws.

             The Company agrees that it shall, immediately prior to the
Registration Statement (as
defined in the Registration Rights Agreement) being declared effective, deliver
to its transfer agent
an opinion letter of counsel, opining that at any time the Registration
Statement is effective, the
transfer agent shall issue certificates representing the Shares without the
restrictive legend above,
provided such Shares are to be sold pursuant to the prospectus contained in the
Registration
Statement.  Upon receipt of such opinion, the Company shall cause the transfer
agent to confirm, for
the benefit of the holders, that no further opinion of counsel is required at
the time of transfer in
order to issue such shares without such restrictive legend.

             The legend set forth above shall be removed and the Company shall
issue (or instruct
the transfer agent to issue) a certificate without such legend to the holder of
any Shares upon which
it is stamped, if, unless otherwise required by state securities laws, (a) the
sale of such Shares is
registered under the Securities Act (including registration pursuant to Rule 416
thereunder) as
contemplated by the Registration Rights Agreement; (b) such holder provides the
Company with an
opinion of counsel, in form, substance and scope customary for opinions of
counsel in comparable
transactions and reasonably acceptable to the Company, to the effect that a
public sale or transfer of
such Shares may be made without registration under the Securities Act; or (c)
such holder provides
the Company with reasonable assurances that such Shares can be sold under Rule
144(k).  In the
event the above legend is removed from any Shares and thereafter the
effectiveness of a registration
statement covering such Shares is suspended or the Company determines that a
supplement or
amendment thereto is required by applicable securities laws or if Rule 144 is no
longer available,
then upon reasonable advance written notice to the Purchaser, (subject to the
provisions of the
Registration Rights Agreement) the Company may (i) instruct its transfer agent
to issue a "stop
transfer" order with respect to the Shares and (ii) require the Purchaser or the
Purchaser's broker to
confirm that no sales of the Shares will be effected until the "stop transfer"
order is removed.  The
Purchasers agree to hold the Shares in certificated form until the Shares can be
sold under Rule
144(k).

     (h)     Authorization; Enforcement.  Each Purchaser has full power
and authority to enter
into this Agreement and the Registration Rights Agreement.  This Agreement and
the Registration
Rights Agreement have been duly and validly authorized, executed and delivered
on behalf of each
Purchaser and are valid and binding agreements of each Purchaser enforceable
against each
Purchaser in accordance with their terms; except as such enforceability may be
limited by bankruptcy
laws and other similar laws affecting creditors' rights generally and general
principles of equity.

(i)  Residency.  Each Purchaser is a resident of the jurisdiction
set forth under the
Purchaser's name on Schedule I hereto.

The Purchasers' representations and warranties made in this Article 2(a)
through (g) and (i)
are made solely for the purpose of permitting the Company to make a
determination that the offer
and sale of the Shares pursuant to this Agreement complies with applicable U.S.
federal and state
securities laws and not for any other purpose.  Accordingly, the Company should
not rely on such
representations and warranties for any other purpose. 

2.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company represents and warrants to each Purchaser as follows, except as
set forth on
the disclosure schedules delivered herewith with corresponding section
numbers:

(a)  Organization and Qualification.  The Company is a corporation
duly organized and
existing in good standing under the laws of the jurisdiction in which it is
incorporated, and has the
requisite corporate power to own its properties and to carry on its business as
now being conducted.
The Company has sufficient licenses, permits and other governmental
authorizations currently
required for the conduct of its business or ownership of properties and is in
all material respects
complying herewith.  The Company has no material subsidiaries.  The Company is
duly qualified
as a foreign corporation to do business and is in good standing in every
jurisdiction in which the
nature of the business conducted by it makes such qualification necessary and
where the failure so
to qualify would have a Material Adverse Effect.  "Material Adverse
Effect" means any material
adverse effect on (i) the Shares, (ii) the ability of the Company to perform its
obligations hereunder
or under the Registration Rights Agreement or (iii) the business, operations,
properties, prospects
or financial condition of the Company and its subsidiaries, taken as a whole,
but not material adverse
effects stemming from changes in the economy as a whole or in the Company's
industry generally. 

     (b)     Authorization; Enforcement.  (i) The Company has the
requisite corporate power and
authority to enter into and perform its obligations under this Agreement and the
Registration Rights
Agreement, to issue and sell the Shares in accordance with the terms hereof;
(ii) the execution,
delivery and performance of this Agreement, and the Registration Rights
Agreement by the
Company and the consummation by it of the transactions contemplated hereby and
thereby
(including, without limitation, the issuance of the Shares) have been duly
authorized by the
Company's Board of Directors and no further consent or authorization of the
Company, its Board of
Directors, any committee of the Board of Directors or the Company's stockholders
is required, and
(iii) this Agreement constitutes, and, upon execution and delivery by the
Company of the
Registration Rights Agreement, such agreement will constitute, valid and binding
obligations of the
Company enforceable against the Company in accordance with their terms; except
as such
enforceability may be limited by bankruptcy laws and other similar laws
affecting creditors' rights
generally and general principles of equity.

     (c)     Stockholder Authorization.  Neither the execution, delivery
or performance by the
Company of its obligations under this Agreement or the Registration Rights
Agreement, nor the
consummation by it of the transactions contemplated hereby or thereby
(including, without
limitation, the issuance of the Shares) requires any consent or authorization of
the Company's
stockholders, including but not limited to consent under Rule 4460(i)
promulgated by the National
Association of Securities Dealers, Inc. (the "NASD") or any
similar rule. 

     (d)     Capitalization.  The capitalization of the Company as of the
date hereof, including
the authorized capital stock, the number of shares issued and outstanding, the
number of shares
issuable and reserved for issuance pursuant to the Company's stock option plans,
the number of
shares issuable and reserved for issuance pursuant to securities exercisable or
exchangeable for, or
convertible into, any shares of capital stock and the number of shares to be
issued pursuant to the
terms of this Agreement.  All of such outstanding shares of capital stock have
been, or upon
issuance, will be, validly issued, fully paid and non-assessable.  No shares of
capital stock of the
Company (including the Shares) are subject to preemptive rights or any other
similar rights of the
stockholders of the Company or any liens or encumbrances created by the Company.
Except for the
Shares and as set forth on Schedule 3(d), as of the date of this
Agreement, (i) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character
whatsoever relating to, or securities or rights convertible into or exercisable
or exchangeable for, any
shares of capital stock of the Company or any of its subsidiaries, or
arrangements by which the
Company or any of its subsidiaries is or may become bound to issue additional
shares of capital stock
of the Company or any of its subsidiaries, nor are any such issuances or
arrangements contemplated,
and (ii) there are no agreements or arrangements under which the Company or any
of its subsidiaries
is obligated to register the sale of any of its or their securities under the
Securities Act (except the
Registration Rights Agreement).  Schedule 3(d) sets forth all of the
Company issued securities or
instruments containing anti-dilution or similar provisions that will be
triggered by, and all of the
resulting adjustments that will be made to such securities and instruments as a
result of, the issuance
of the Shares in accordance with the terms of this Agreement.  The Company has
furnished to the
Purchaser true and correct copies of the Company's Certificate of Incorporation
as in effect on the
date hereof ("Certificate of Incorporation"), the Company's
Bylaws as in effect on the date hereof
(the "Bylaws"), and all other instruments and agreements
governing securities convertible into or
exercisable or exchangeable for capital stock of the Company. 

     (e)     Issuance of Shares.  The Shares will be duly authorized and,
upon issuance, and in
accordance with the terms of this Agreement, will be validly issued, fully paid
and non-assessable,
and free from all taxes, liens, claims and encumbrances created by the Company
and will not, to the
Company's knowledge, be subject to preemptive rights or other similar rights of
stockholders of the
Company and will not impose personal liability on the holders thereof. 

     (f)     No Conflicts.  The execution, delivery and performance of
this Agreement and the
Registration Rights Agreement, by the Company, and the consummation and
performance by the
of the transactions contemplated hereby and thereby (including, without
limitation, the issuance of
the Shares) will not (i) result in a violation of the Certificate of
Incorporation or Bylaws or (ii)
conflict with, or constitute a default (or an event that with notice or lapse of
time or both would
become a default) under, or give to others any rights of termination, amendment
(including, without
limitation, the triggering of any anti-dilution provisions), acceleration or
cancellation of, any
agreement, indenture or instrument to which the Company or any of its
subsidiaries is a party, or
result in a violation of any law, rule, regulation, order, judgment or decree
(including United States
federal and state securities laws and regulations and rules or regulations of
any self-regulatory
organizations to which either the Company or its securities are subject)
applicable to the Company
or any of its subsidiaries or by which any property or asset of the Company or
any of its subsidiaries
is bound or affected (except, with respect to clause (ii), for such conflicts,
defaults, terminations,
amendments, accelerations, cancellations and violations that would not,
individually or in the
aggregate, have a Material Adverse Effect).  Neither the Company nor any of its
subsidiaries is in
violation of its Certificate of Incorporation, Bylaws or other organizational
documents and neither
the Company nor any of its subsidiaries is in default (and no event has occurred
which, with notice
or lapse of time or both, would put the Company or any of its subsidiaries in
default) under, nor to
the Company's knowledge, except as set forth on Schedule 3(h) hereto,
has there occurred any event
giving others (with notice or lapse of time or both) any rights of termination,
amendment,
acceleration or cancellation of, any agreement, indenture or instrument to which
the Company or any
of its subsidiaries is a party, except for actual or possible violations,
defaults or rights that would not,
individually or in the aggregate, have a Material Adverse Effect. The businesses
of the Company and
its subsidiaries are not being conducted, and shall not be conducted so long as
the Purchaser owns
any of the Shares, in violation of any law, ordinance or regulation of any
governmental entity, except
for possible violations the sanctions for which either singly or in the
aggregate would not have a
Material Adverse Effect.  Except as specifically contemplated by this Agreement
and the
Registration Rights Agreement, the Company is not required to obtain any
consent, approval,
authorization or order of, or make any filing or registration with, any court or
governmental agency
or any regulatory or self regulatory agency or other third party in order for it
to execute, deliver or
perform any of its obligations under this Agreement or, the Registration Rights
Agreement, in each
case in accordance with the terms hereof or thereof.  The Company is not in
violation of the listing
requirements of the Nasdaq National Market ("NASDAQ") and does
not reasonably anticipate that
the Common Stock will be delisted by NASDAQ for the foreseeable future.

     (g)     SEC Documents, Financial Statements.  Since December 31,
1997, the Company has
timely filed (within applicable extension periods) all reports, schedules,
forms, statements and other
documents required to be filed by it with the SEC pursuant to the reporting
requirements of Sections
13, 14 and 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") (all of
the foregoing filed prior to the date hereof and all exhibits included therein
and financial statements
and schedules thereto and documents incorporated by reference therein, being
hereinafter referred
to herein as the "SEC Documents").  All of the SEC documents
from December 31, 1997 are
currently available for review on the SEC website via EDGAR and documents filed
prior to such
date have been made available to the Purchasers.  As of their respective dates,
the SEC Documents
complied in all material respects with the requirements of the Exchange Act or
the Securities Act,
as the case may be, and the rules and regulations of the SEC promulgated
thereunder applicable to
the SEC Documents, and none of the SEC Documents, at the time they were filed
with the SEC,
contained any untrue statement of a material fact or omitted to state a material
fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances
under which they were made, not misleading.  None of the statements made in any
such SEC
Documents is, or has been, required to be amended or updated under applicable
law (except for such
statements as have been amended or updated in subsequent filings made prior to
the date hereof).
As of their respective dates, the financial statements of the Company included
in the SEC
Documents complied as to form in all material respects with applicable
accounting requirements and
the published rules and regulations of the SEC applicable with respect thereto.
Such financial
statements have been prepared in accordance with U.S. generally accepted
accounting principles
("GAAP"), consistently applied, during the periods involved
(except (i) as may be otherwise
indicated in such financial statements or the notes thereto, or (ii) in the case
of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or
summary
statements) and fairly present in all material respects the consolidated
financial position of the
Company and its consolidated subsidiaries as of the dates thereof and the
consolidated results of their
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements,
to immaterial year-end audit adjustments).  Except as set forth in the financial
statements of the
Company included in the SEC Documents filed prior to the date hereof, the
Company has no
liabilities, contingent or otherwise, other than (i) liabilities incurred in the
ordinary course of
business subsequent to the date of such financial statements and (ii)
obligations under contracts and
commitments incurred in the ordinary course of business and not required under
GAAP to be
reflected in such financial statements, which liabilities and obligations
referred to in clauses (i) and
(ii), individually or in the aggregate, are not material to the financial
condition or operating results
of the Company. 

     (h)     Absence of Certain Changes.  Since December 31, 1999, there
has been no material
adverse change and no material adverse development in the business, properties,
operations,
prospects, financial condition or results of operations of the Company and its
subsidiaries, taken as
a whole, which would have a Material Adverse Effect on the Company, except as
disclosed in the
SEC Documents filed prior to the date hereof.

     (i)     Absence of Litigation.  Except as disclosed in the SEC
Documents filed prior to the
date hereof, there is no action, suit, proceeding, inquiry or investigation
before or by any court,
public board, government agency, self-regulatory organization or body,
including, without limitation,
the SEC or NASDAQ, pending or, to the knowledge of the Company or any of its
subsidiaries,
threatened against or affecting the Company, any of its subsidiaries, or any of
their respective
directors or officers in their capacities as such.  To the knowledge of the
Company, after reasonable
investigation, there are no facts which, if known by a potential claimant or
governmental authority,
could give rise to a claim or proceeding which, if asserted or conducted with
results unfavorable to
the Company or any of its subsidiaries, could reasonably be expected to have a
Material Adverse
Effect on the Company.

     (j)     Intellectual Property.  Each of the Company and its
subsidiaries owns or is licensed
to use all patents, patent applications, trademarks, trademark applications,
trade names, service
marks, copyrights, copyright applications, licenses, permits, inventions,
discoveries, processes,
scientific, technical, engineering and marketing data, object and source codes,
know-how (including
trade secrets and other unpatented and/or unpatentable proprietary or
confidential information,
systems or procedures) and other similar rights and proprietary knowledge
necessary for the conduct
of its business as now being conducted (collectively,
"Intangibles").  To the knowledge of the
Company and except as disclosed in the SEC documents filed prior to the date
hereof, neither the
Company nor any subsidiary of the Company infringes or is in conflict with any
right of any other
person with respect to any Intangibles which, if the subject of an unfavorable
decision, ruling or
finding would have a Material Adverse Effect.  Except as disclosed in the SEC
documents filed prior
to the date hereof, neither the Company nor any of its subsidiaries has received
written notice of any
pending conflict with or infringement upon such third party Intangibles.  Except
as disclosed in the
SEC documents filed prior to the date hereof, neither the Company nor any of its
subsidiaries has
entered into any consent agreement, indemnification agreement, forbearance to
sue or settlement
agreement with respect to the validity of the Company's or its subsidiaries'
ownership or right to use
its Intangibles and, to the knowledge of the Company, there is no reasonable
basis for any such claim
to be successful.  The Intangibles are valid and enforceable and no registration
relating thereto has
lapsed, expired or been abandoned or canceled or is the subject of cancellation
or other adversarial
proceedings, and all applications therefor are pending and in good standing.
The Company and its
subsidiaries have complied, in all material respects, with their respective
contractual obligations
relating to the protection of the Intangibles used pursuant to licenses.  To the
knowledge of the
Company, no person is infringing on or violating the Intangibles owned or used
by the Company or
its subsidiaries.

     (k)     Foreign Corrupt Practices. Neither the Company, nor any of
its subsidiaries, nor any
director, officer, agent, employee or other person acting on behalf of the
Company or any subsidiary
has, in the course of his actions for, or on behalf of, the Company, used any
corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expenses relating
to political activity;
made any direct or indirect unlawful payment to any foreign or domestic
government official or
employee from corporate funds; violated or is in violation of any provision of
the U.S. Foreign
Corrupt Practices Act of 1977; or made any bribe, rebate, payoff, influence
payment, kickback or
other unlawful payment to any foreign or domestic government official or
employee.

     (l)     Disclosure.  All information relating to or concerning the
Company set forth in this
Agreement or provided to the Purchasers in connection with the transactions
contemplated hereby
is true and correct in all material respects and the Company has not omitted to
state any material fact
necessary in order to make the statements made herein or therein, in light of
the circumstances under
which they were made, not misleading. To the Company's knowledge, no event or
circumstance has
occurred or exists with respect to the Company or its subsidiaries or their
respective businesses,
properties, prospects, operations or financial conditions, which has not been
publicly disclosed but,
under applicable law, rule or regulation, would be required to be disclosed by
the Company in a
registration statement filed on the date hereof by the Company under the
Securities Act with respect
to a primary issuance of the Company's securities.

     (m)     Acknowledgment Regarding Purchasers' Purchase of the Shares.
The Company
acknowledges and agrees that the Purchasers are not acting as a financial
advisor or fiduciary of the
Company (or in any similar capacity) with respect to this Agreement or the
transactions
contemplated hereby, the relationship between the Company and the Purchasers is
"arms-length"
and, except for the Purchaser's representations and warranties in Section 2
hereof, any statement
made by any Purchaser or any of their representatives or agents in connection
with this Agreement
and the transactions contemplated hereby is merely incidental to the Purchasers'
purchase of the
Shares and has not been relied upon by the Company, its officers or directors in
any way.  The
Company further acknowledges that the Company's decision to enter into this
Agreement has been
based solely on an independent evaluation by the Company and its
representatives.

     (n)     Form S-3 Eligibility.  The Company is currently eligible to
register the resale of its
Common Stock on a registration statement on Form S-3 under the Securities Act.
There exist no
facts or circumstances that would prohibit or delay the preparation and filing
of a registration
statement on Form S-3 with respect to the Registrable Securities (as defined in
the Registration
Rights Agreement).  The Company has no basis to believe that its past or present
independent public
auditors will withhold their consent to the inclusion, or incorporation by
reference, of their audit
opinion concerning the Company's financial statements which are included in the
Registration
Statement required to be filed pursuant to the Registration Rights
Agreement.

     (o)     No General Solicitation.  Neither the Company nor any
distributor participating on
the Company's behalf in the transactions contemplated hereby (if any) nor any
person acting for the
Company, or any such distributor, has conducted any "general solicitation," as
such term is defined
in Regulation D, with respect to any of the Shares being offered hereby.

     (p)     No Integrated Offering.  Neither the Company, nor any of its
affiliates, nor any person
acting on its or their behalf, has directly or indirectly made any offers or
sales of any security or
solicited any offers to buy any security under circumstances that would require
registration of the
Shares being offered hereby under the Securities Act or cause this offering of
Shares to be integrated
with any prior offering of securities of the Company for purposes of the
Securities Act, the result of
such integration which would require registration under the Securities Act, or
any applicable
stockholder approval provisions, including, without limitation, Rule 4460(i) of
the NASD or any
similar rule.  

     (q)     No Brokers.  The Company has taken no action that would give
rise to any claim by
any person for brokerage commissions, finder's fees or similar payments by the
Purchaser relating
to this Agreement or the transactions contemplated hereby.

     (r)     Acknowledgment Regarding Shares.  The Company's executive
officers have studied
and fully understand the nature of the Shares being sold hereunder.  The
Company's Board of
Directors has determined in its good faith business judgment that the issuance
of the Shares
hereunder and the consummation of the other transactions contemplated hereby are
in the best
interests of the Company and its stockholders.

     (s)     Title.  The Company and its subsidiaries have good and
marketable title in fee simple
to all real property and good and merchantable title to all personal property
owned by them that is
material to the business of the Company and its subsidiaries, in each case free
and clear of all liens,
encumbrances and defects except such as do not materially affect the value of
such property and do
not materially interfere with the use made and proposed to be made of such
property by the Company
and its subsidiaries.  Any real property and facilities held under lease by the
Company and its
subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as
are not material and do not materially interfere with the use made and proposed
to be made of such
real property and facilities by the Company and its subsidiaries.

     (t)     Tax Status. Except as set forth in the SEC Documents, the
Company and each of its
subsidiaries has made or filed all foreign, U.S. federal, state and local income
and all other material
tax returns, reports and declarations required by any jurisdiction to which it
is subject (unless and
only to the extent that the Company and each of its subsidiaries has set aside
on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and has
paid all taxes and
other governmental assessments and charges that are material in amount, shown or
determined to
be due on such returns, reports and declarations, except those being contested
in good faith and has
set aside on its books provisions reasonably adequate for the payment of all
taxes for periods
subsequent to the periods to which such returns, reports or declarations apply,
or except as would
not have a Material Adverse Effect on the Company.  There are no unpaid taxes in
any material
amount claimed to be due by the taxing authority of any jurisdiction, and the
officers of the Company
know of no basis for any such claim except as would not have a Material Adverse
Effect on the
Company.  The Company has not executed a waiver with respect to any statute of
limitations relating
to the assessment or collection of any federal, state or local tax. None of the
Company's tax returns
are presently being audited by any taxing authority.

     (u)     Key Employees.  Each of the Company's directors, officers and
any Key Employee
(as defined below) is currently serving the Company in the capacity disclosed in
the SEC
Documents.  As of the Closing Date, no Key Employee, to the knowledge of the
Company and its
subsidiaries, is in violation of any material term of any employment contract,
confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or
any other contract
or agreement or any restrictive covenant, and the continued employment of each
Key Employee does
not subject the Company or any of its subsidiaries to any material liability
with respect to any of the
foregoing matters.  As of the Closing Date, no Key Employee has, to the
knowledge of the Company
and its subsidiaries, any intention to terminate or limit his employment with,
or services to, the
Company or any of its subsidiaries, nor is any such Key Employee subject to any
constraints which
would cause such employee to be unable to devote his full time and attention to
such employment
or services.  "Key Employee" means the persons listed on
Schedule 3(u).

     (v)     Insurance.  The Company has in force fire, casualty, product
liability and other
insurance policies, with extended coverage, sufficient in amount to allow it to
replace any of its
material properties or assets which might be damaged or destroyed or sufficient
to cover liabilities
to which the Company may reasonably become subject, and such types and amounts
of other
insurance with respect to its business and properties, on both a per occurrence
and an aggregate
basis, as are customarily carried by persons engaged in the same or similar
business as the Company.
No default or event has occurred that could give rise to a default under any
such policy.

     (w)     Environmental Matters.  There is no environmental litigation
or other environmental
proceeding pending or threatened in writing by any governmental regulatory
authority or others with
respect to the current or any former business of the Company or any partnership
or joint venture
currently or at any time affiliated with the Company.  To the Company's
knowledge, no state of facts
exists as to environmental matters or Hazardous Substances (as defined below)
that involves the
reasonable likelihood of a material capital expenditure by the Company or that
may otherwise have
a Material Adverse Effect.  No Hazardous Substances have been treated, stored or
disposed of, or
otherwise deposited, in or on the properties owned or leased by the Company or
by any partnership
or joint venture currently or at any time affiliated with the Company in
violation of any applicable
environmental laws.  The environmental compliance programs of the Company comply
in all
respects with all environmental laws, whether federal, state or local, currently
in effect.  As used
herein, "Hazardous Substances" means any substance, waste,
contaminant, pollutant or material
that has been determined by any governmental authority to be capable of posing a
risk of injury to
health, safety, property or the environment. 

3.   COVENANTS.

     (a)     Best Efforts.  The parties shall use their best efforts
timely to satisfy each of the
conditions described in Section 6 and Section 7 of this Agreement.

     (b)     Form D: Blue Sky Laws.  The Company shall file with the SEC a
Form D with
respect to the Shares as required under Regulation D and provide a copy thereof
to the Purchasers
promptly after such filing.  The Company shall, on or before the First Closing
Date, take such action
as the Company shall reasonably determine is necessary to qualify the Shares for
sale to the
Purchasers pursuant to this Agreement under applicable securities or "blue sky"
laws of the states
of the United States or obtain exemption therefrom, and shall provide evidence
of any such action
so taken to the Purchasers on or prior to the First Closing Date.  Within ten
(10) days after the First
Closing Date, the Company shall file a Current Report on Form 8-K (a
"Form 8-K") concerning this
Agreement and the transactions contemplated hereby, which Form 8-K shall attach
this Agreement
as exhibits to such Form 8-K.

     (c)     Reporting Status.  So long as any Purchaser beneficially owns
any of the Shares, the
Company shall timely file all reports required to be filed with the SEC pursuant
to the Exchange Act,
and the Company shall not terminate its status as an issuer required to file
reports under the
Exchange Act even if the Exchange Act or the rules and regulations thereunder
would permit such
termination.  In addition, the Company shall take all commercially reasonable
actions to meet the
"registrant eligibility" requirements set forth in the general instructions to
Form S-3 or any successor
form thereto, to continue to be eligible to register the resale of its Common
Stock on a registration
statement on Form S-3 under the Securities Act.

     (d)     Use of Proceeds.  The Company shall  use the proceeds from
the sale of the Shares
as set forth in Schedule 4(d).

     (e)     Expenses.  The Company shall pay to SDS Capital Partners
("SDS Capital") at the
Closing, reimbursement for the out-of-pocket expenses reasonably incurred by SDS
Capital's
advisors in connection with the negotiation, preparation, execution and delivery
of this Agreement
(including earlier versions of this transaction) and the other agreements to be
executed in connection
herewith, including, without limitation, SDS Capital's advisors' reasonable due
diligence and
attorneys' fees and expenses (the "Expenses") not to exceed
$60,000; provided, however, that SDS
Capital shall be permitted to deduct all Expenses from the purchase price
payable by SDS Capital
hereunder.  In addition, from time to time thereafter, upon SDS Capital's
written request, the
Company shall pay to SDS Capital such additional Expenses, if any, not covered
by such payment,
in each case to the extent reasonably incurred by SDS Capital's agents in
connection with the
negotiation, preparation, execution and delivery of this Agreement; provided,
however, that in no
event shall the Company be obligated to pay more than $60,000 on account of
Expenses.

     (f)     Financial Information.  The Company agrees to add each
Purchaser to its mailing list
(whether via electronic transmission or otherwise) for purposes of each
Purchaser receiving, if sent
by the Company to its stockholders, copies of the following reports:  (i)  its
Annual Report on Form
10-K, its Quarterly Reports on Form 10-Q, its proxy statements and any Current
Reports on Form
8-K; (ii) copies of all press releases issued by the Company or any of its
subsidiaries; and (iii) copies
of any notices and other information made available or given to stockholders of
the Company
generally.

     (g)     Listing. The Company shall use commercially reasonable
efforts to maintain, for a
period of five years from the First Closing Date, the listing of all Shares on
each national securities
exchange or automated quotation system on which shares of Common Stock are
currently listed.
The Company will use commercially reasonable efforts to continue the listing and
trading of its
Common Stock on NASDAQ, the New York Stock Exchange ("NYSE") or
the American Stock
Exchange ("AMEX") and will comply in all respects with the
reporting, filing and other obligations
under the bylaws or rules of the NASD and such exchanges, as applicable.  The
Company shall
promptly provide to each Purchaser copies of any notices it receives regarding
the continued
eligibility of the Common Stock for trading on the NASDAQ or, if applicable, any
securities
exchange or automated quotation system on which securities of the same class or
series issued by
the Company are then listed or quoted, if any.  This Section shall not apply if
the Company is
acquired. 

     (h)     No Integrated Offerings.  The Company shall not make any
offers or sales of any
security (other than the Shares) under circumstances that would require
registration of the Shares
being offered or sold hereunder under the Securities Act or cause this offering
of the Shares to be
integrated with any other offering of securities by the Company for purposes of
any stockholder
approval provision applicable to the Company or its securities.

     (i)     Legal Compliance.  The Company shall conduct its business and
the business of its
subsidiaries in compliance with all laws, ordinances or regulations of
governmental entities
applicable to such businesses, except where the failure to do so would not have
a Material Adverse
Effect on the Company.

     (j)     Inspection of Properties and Books.  So long as any Purchaser
shall hold any  Shares,
such Purchasers and its representatives and agents (collectively, the
"Inspectors") shall have the
right upon reasonable notice to the Company and during business hours, at the
Purchasers' expense,
to visit and inspect any of the properties of the Company and of its
subsidiaries, to examine the
books of account and records of the Company and of its subsidiaries, to make or
be provided with
copies and extracts therefrom, to discuss the affairs, finances and accounts of
the Company and of
its subsidiaries with, and to be advised as to the same by, its and their
officers, employees and
independent public accountants (and by this provision the Company authorizes
such accountants to
discuss such affairs, finances and accounts, whether or not a representative of
the Company is
present) all at such reasonable times and intervals and to such reasonable
extent as the Purchasers
may desire; provided, however, that each Inspector shall hold in
confidence and shall not make any
disclosure (except to the Purchasers) of any such information which the Company
determines in
good faith to be confidential, and of which determination the Inspectors are so
notified, unless (a)
the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any
Registration Statement filed pursuant to the Registration Rights Agreement (a
final determination
of which shall be based upon an opinion of outside counsel to the Company), (b)
the release of such
information is ordered pursuant to a subpoena or other order from a court or
government body of
competent jurisdiction, or (c) such information has been made generally
available to the public other
than by disclosure in violation of this or any other agreement.  The Company
shall not be required
to disclose any confidential information to any Inspector until and unless such
Inspector shall have
entered into confidentiality agreements (in form and substance satisfactory to
the Company) with the
Company with respect thereto, substantially in the form of this Section 4(j).
Each Purchaser agrees
that it shall, upon learning that disclosure of such information is sought in or
by a court or
governmental body of competent jurisdiction or through other means, give prompt
notice to the
Company and allow the Company, at its expense, to undertake appropriate action
to prevent
disclosure of, or to obtain a protective order for, the information deemed
confidential.

4.   TRANSFER AGENT INSTRUCTIONS.

     (a)     The Company shall instruct its transfer agent to issue certificates,
registered in the
name of each Purchaser or its nominee, for the Shares in such amounts as
specified by such
Purchaser to the Company.

(b)  The Company warrants that no instruction other than such
instructions referred to in
this Section 5, will be given by the Company to its transfer agent and that the
Shares shall otherwise
be freely transferable on the books and records of the Company as and to the
extent provided in this
Agreement and the Registration Rights Agreement.  Nothing in this Section or any
other limits in
the Registration Rights Agreement shall affect in any way the Purchasers'
obligations and agreement
set forth in Section 2(g) hereof to resell the Shares pursuant to an effective
registration statement or
under an exemption from the registration requirements of applicable securities
law. 

(c)  If a Purchaser provides the Company and the transfer agent with an
opinion of
counsel, which opinion of counsel shall be in form, substance and scope
customary for opinions of
counsel in comparable transactions and reasonably acceptable to the Company, to
the effect that the
Shares to be sold or transferred may be sold or transferred pursuant to an
exemption from
registration, or a Purchaser provides the Company with reasonable assurances
that such Shares may
be sold under Rule 144, the Company shall permit the transfer.

5.   CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL.

The obligation of the Company hereunder to issue and sell the Shares to the
Purchasers
hereunder is subject to the satisfaction, at or before the First Closing Date
and the Second Closing
Date, as applicable, of each of the following conditions thereto, provided that
these conditions are
for the Company's sole benefit and may be waived in writing by the Company at
any time in its sole
discretion:

     (a)     With respect to the First and Second Closing:

             (i)     Each of the Purchasers shall have executed this Agreement and
the
Registration Rights Agreement, and delivered executed original copies of the
same to the Company.

             (ii)    Each Purchaser shall have delivered the purchase price set
forth opposite its
name on Schedule I hereto for the Shares being purchased by it at such Closing
in accordance with
Section 1(b) above.

             (iii)   The representations and warranties of each Purchaser shall be
true and correct
as of the date when made and as of the First Closing Date and the Second Closing
Date, as
applicable, as though made at that time (except for representations and
warranties that speak as of
a specific date, which representations and warranties shall be true and correct
as of such date), and
each Purchaser shall have performed, satisfied and complied in all material
respects with the
covenants, agreements and conditions required by this Agreement to be performed,
satisfied or
complied with by the Purchasers at or prior to the First Closing Date and the
Second Closing Date,
as applicable.

             (iv)    No statute, rule, regulation, executive order, decree, ruling
or injunction shall
have been enacted, entered, promulgated or endorsed by any court or governmental
authority of
competent jurisdiction or any self-regulatory organization having authority over
the matters
contemplated hereby which questions the validity of, challenges or prohibits the
consummation of
any of the transactions contemplated by this Agreement.

6.   CONDITIONS TO THE PURCHASERS' OBLIGATION TO PURCHASE.

The obligation of the Purchasers hereunder to purchase the Shares from the
Company
hereunder is subject to the satisfaction, at or before the First Closing Date
and the Second Closing
Date, as applicable, of each of the following conditions, provided that such
conditions are for the
Purchasers' sole benefit and may be waived in writing by the Purchasers at any
time in the
Purchasers' sole discretion:

     (a)     With respect to the First Closing:

     (i)     The Company shall have executed this Agreement and the Registration
Rights
Agreement, and delivered executed original copies of the same to the
Purchasers.

     (ii)    The Company shall have delivered to the Purchasers duly executed
certificates
(each in such denominations as each Purchaser shall reasonably request)
representing the Shares
being so purchased by the Purchasers at the First Closing in accordance with
Section 1(b) above.

     (iii)   The Common Stock shall be listed on NASDAQ and trading in the Common
Stock (or NASDAQ generally) shall not have been suspended by the SEC or
NASDAQ.

     (iv)    The representations and warranties of the Company shall be true and
correct
as of the date when made and as of the First Closing Date as though made at that
time (except for
representations and warranties that speak as of a specific date, which
representations and warranties
shall be true and correct as of such date) and the Company shall have performed,
satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this
Agreement to be performed, satisfied or complied with by the Company at or prior
to the First
Closing Date.  The Purchasers shall have received a certificate, executed by the
Chief Executive
Officer of the Company after reasonable investigation, dated as of the First
Closing Date to the
foregoing effect and as to such other matters as may reasonably be requested by
the Purchasers.

             (v)     No statute, rule, regulation, executive order, decree, ruling,
injunction, action
or proceeding shall have been enacted, entered, promulgated or endorsed by any
court or
governmental authority of competent jurisdiction or any self-regulatory
organization having authority
over the matters contemplated hereby which questions the validity of, challenges
or prohibits the
consummation of, any of the transactions contemplated by this Agreement.

             (vi)    The Purchasers shall have received opinions of the Company's
general
counsel and of the Company's outside counsel, dated as of the First Closing
Date, in form, scope and
substance reasonably satisfactory to the Purchasers and in substantially the
form of Exhibits B-1 and
B-2 attached hereto.

             (vii)   There shall have been no material adverse changes and no
material adverse
developments in the business, properties, operations, prospects, financial
condition or results of
operations of the Company and its subsidiaries, taken as a whole, since the date
hereof, and no
information, of which the Purchasers are not currently aware, shall come to the
attention of the
Purchasers that is materially adverse to the Company.

             (viii)  The Secretary of the
Company shall deliver to each Purchaser at the First
Closing a certificate stating that all Board of Directors and stockholder
approvals necessary to
authorize the performance by the Company of its obligations contemplated by this
Agreement have
been obtained and attaching thereto: (i) a copy of the Certificate of
Incorporation (with any and all
certificates of designation)  and the Bylaws (as amended through the date of the
First Closing),
certified by the Secretary of the Company as the true and correct copies thereof
as of the First
Closing; and (ii) a copy of the resolutions of the Board of Directors and, if
required, the stockholders
of the Company, authorizing the execution and delivery of this Agreement and the
Registration
Rights Agreement, the issuance of the Shares and other matters contemplated
hereby.

     (a)     with respect to the Second Closing:

             (i)     The First Closing shall have occurred.

             (ii)    On or before January 5, 2001, the Company shall have delivered
to the
Purchasers duly executed certificates (each in such denominations as each
Purchaser shall reasonably
request) representing the Shares being so purchased by the Purchasers at the
Second Closing in
accordance with Section 1(b) above.

             (iii)   The Common Stock shall be listed on NASDAQ and trading in the
Common
Stock (or NASDAQ generally) shall not have been suspended by the SEC or
NASDAQ.

             (iv)    The representations and warranties of the Company shall be
true and correct
as of the date when made and as of the Second Closing Date as though made at
that time (except for
representations and warranties that speak as of a specific date, which
representations and warranties
shall be true and correct as of such date) and the Company shall have performed,
satisfied and
complied in all material respects with the covenants, agreements and conditions
required by this
Agreement to be performed, satisfied or complied with by the Company at or prior
to the Second
Closing Date.  On or before January 5, 2001, the Purchasers shall have received
a certificate,
executed by a Senior Officer of the Company after reasonable investigation,
dated as of the Second
Closing Date to the foregoing effect and as to such other matters as may
reasonably be requested by
the Purchasers.

             (v)     No statute, rule, regulation, executive order, decree, ruling,
injunction, action
or proceeding shall have been enacted, entered, promulgated or endorsed by any
court or
governmental authority of competent jurisdiction or any self-regulatory
organization having authority
over the matters contemplated hereby which questions the validity of, challenges
or prohibits the
consummation of, any of the transactions contemplated by this Agreement.

             (vi)    On or before January 5, 2001, the Purchasers shall have
received opinions of
the Company's general counsel and of the Company's outside counsel, dated as of
the Second
Closing Date, in substantially the form of Exhibits B-1 and B-2 attached
hereto.

             (vii)   There shall have been no material adverse changes and no
material adverse
developments in the business, properties, operations, prospects, financial
condition or results of
operations of the Company and its subsidiaries, taken as a whole, since the date
hereof, and no
information, of which the Purchasers are not currently aware, shall come to the
attention of the
Purchasers that is materially adverse to the Company.

             (viii)  On or before January 5,
2001, the Secretary of the Company shall deliver to
each Purchaser at the Second Closing a certificate stating that all Board of
Directors and stockholder
approvals necessary to authorize the performance by the Company of its
obligations contemplated
by this Agreement have been obtained and attaching thereto: (i) a copy of the
Certificate of
Incorporation (with any and all certificates of designation)  and the Bylaws (as
amended through the
date of the Second Closing), certified by the Secretary of the Company as the
true and correct copies
thereof as of the Second Closing; and (ii) a copy of the resolutions of the
Board of Directors and, if
required, the stockholders of the Company, authorizing the execution and
delivery of this Agreement
and the Registration Rights Agreement, the issuance of the Shares and other
matters contemplated
hereby. 

             (ix)    The average of the Closing Price (as defined below) of the
Common Stock
for the 5 consecutive trading days ending on the trading day immediately prior
to the Second Closing
Date shall be greater or equal to $9.50.  For purposes hereof, "Closing
Price" means, for the
Common Stock as of any date, the closing bid price of the Common Stock on the
principal United
States securities exchange or trading market where the Common Stock is listed or
traded as reported
by Bloomberg Financial Markets (or a comparable reporting service of national
reputation selected
by the Company and reasonably acceptable to the Purchasers if Bloomberg
Financial Markets is not
then reporting closing bid prices of the Common Stock) (collectively,
"Bloomberg"), or if the
foregoing does not apply, the last reported sale price of the Common Stock in
the over-the-counter
market on the electronic bulletin board for the Common Stock as reported by
Bloomberg, or, if no
sale price is reported for the Common Stock by Bloomberg, the average of the bid
prices of all
market makers for the Common Stock as reported in the "pink sheets" by the
National Quotation
Bureau, Inc., in each case for such date or, if such date was not a trading date
for the Common Stock,
on the next preceding date which was a trading date.  If the Closing Price
cannot be calculated for
the Common Stock as of either of such dates on any of the foregoing bases, the
Closing Price of the
Common Stock on such date shall be the fair market value as reasonably
determined by an
investment banking firm selected by the Company and reasonably acceptable to the
Purchasers, with
the costs of such appraisal to be borne by the Company.

7.   GOVERNING LAW; MISCELLANEOUS.

     (a)     Governing Law; Jurisdiction.  This Agreement shall be
governed by and construed
in accordance with the laws of the State of Delaware applicable to contracts
made and to be
performed in the State of Delaware.  The Company and the Purchasers irrevocably
consent to the
jurisdiction of the United States federal courts and the state courts located in
the State of Delaware
in any suit or proceeding based on or arising under this Agreement and
irrevocably agree that all
claims in respect of such suit or proceeding may be determined in such courts.
The Company and
the Purchasers  irrevocably waive the defense of an inconvenient forum to the
maintenance of such
suit or proceeding. The parties further agree that service of process upon the
other party mailed by
first class mail shall be deemed in every respect effective service of process
upon such party in any
such suit or proceeding.  Nothing herein shall affect the right of the parties
to serve process in any
other manner permitted by law.  The parties agree that a final non-appealable
judgment in any such
suit or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on such
judgment or in any other lawful manner.

     (b)     Counterparts.  This Agreement may be executed in two or more
counterparts, all of
which shall be considered one and the same agreement and shall become effective
when counterparts
have been signed by each party and delivered to the other party.  This
Agreement, once executed by
a party, may be delivered to the other parties hereto by facsimile transmission
of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.  In
the event any
signature is delivered by facsimile transmission, the party using such means of
delivery shall cause
the manually executed execution page or pages hereof to be physically delivered
to the other party
within five (5) business days of the execution hereof, provided that the failure
to so deliver any
manually executed execution page shall not affect the validity or enforceability
of this Agreement.

(c)  Headings.  The headings of this Agreement are for convenience
of reference and shall
not form part of, or affect the interpretation of, this Agreement.  

     (d)     Severability.  If any provision of this Agreement shall be
invalid or unenforceable in
any jurisdiction, such invalidity or unenforceability shall not affect the
validity or enforceability of
the remainder of this Agreement or the validity or enforceability of this
Agreement in any other
jurisdiction.  

     (e)     Entire Agreement; Amendments.  This Agreement, and the
instruments referenced
herein and the Registration Rights Agreement contain the entire understanding of
the Purchasers,
the Company, their affiliates and persons acting on their behalf with respect to
the matters covered
herein and therein and, except as specifically set forth herein or therein,
neither the Company nor the
Purchasers make any representation, warranty, covenant or undertaking with
respect to such matters.
No provision of this Agreement may be waived other than by an instrument in
writing signed by the
party to be charged with enforcement and no provision of this Agreement may be
amended other
than by an instrument in writing signed by the Company and the Purchasers.

     (f)     Notices.  Any notices required or permitted to be given under
the terms of this
Agreement shall be sent by certified or registered mail (return receipt
requested) or delivered
personally, by responsible overnight carrier or by confirmed facsimile, and
shall be effective five (5)
days after being placed in the mail, if mailed, or upon receipt or refusal of
receipt, if delivered
personally or by responsible overnight carrier or confirmed facsimile, in each
case addressed to a
party.  The addresses for such communications shall be:

If to the Company:

SangStat Medical Corporation

6300 Dumbarton Circle

Fremont, California 94555

Facsimile: (510) 789-4493

Attn: General Counsel

with a copy simultaneously transmitted by like means to:

                     Gray Cary Ware & Friedenrich

                     4365 Executive Drive

                     Suite 1600

                     San Diego, CA 92121

                     Facsimile: (858) 677-1477

                     Attn: Paul B. Johnson, Esquire

     If to a Purchaser, to the address set forth under the Purchaser's name on
the execution
page hereto.

     Each party shall provide notice to the other party of any change in
address.

(g)  Successors and Assigns.  This Agreement shall be binding upon
and inure to the
benefit of the parties and their successors and assigns.  The Company may not
assign this Agreement
or any rights or obligations hereunder.  The Purchasers may assign and transfer
some or all of their
rights hereunder and some or all of the Shares without the prior consent of the
Company; provided
that such transfer must include at least 150,000 Shares (as adjusted for stock
splits, consolidations
and similar transactions).  Notwithstanding anything to the contrary contained
in this Agreement or
the Registration Rights, the Shares may be pledged and all rights of the
Purchasers under this
Agreement or any other agreement or document related to the transactions
contemplated hereby may
be assigned, without further consent of the Company, to a bona fide pledgee in
connection with the
Purchasers' margin or brokerage account.  In addition, and notwithstanding
anything to the contrary
contained herein, with respect to the obligation of some or all of the
Purchasers to purchase shares
at the Second Closing, such Purchasers may assign this Agreement and its rights
and obligations
hereunder without the prior consent of the Company, provided that the assignee
or assignees of this
Agreement agree in writing to be bound by the terms, representations and
conditions contained in
this Agreement.

(h)  Third Party Beneficiaries.  This Agreement is intended for
the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may
any provision hereof be enforced by, any other person.

     (i)     Survival.  The representations and warranties and the
agreements and covenants set
forth in Sections 2, 3, 4, 5 and 8 hereof shall survive for three years
following the Closing
notwithstanding any due diligence investigation conducted by or on behalf of the
Purchasers.
Moreover, none of the representations and warranties made by one party herein
shall act as a waiver
of any rights or remedies the other party may have under applicable U.S. federal
or state securities
laws.  The Company shall indemnify and hold harmless the Purchasers and each of
the Purchasers'
officers, directors, employees, partners, members, agents and affiliates for all
losses or damages
arising as a result of or related to any breach or alleged breach by the Company
of any of its
representations or covenants set forth herein, including advancement of expenses
as they are
incurred.

     (j)     Publicity.  The Company and the Purchasers shall have the
right to approve before
issuance any press releases, SEC or NASD filings, or any other public statements
with respect to the
transactions contemplated hereby; provided, however, that the Company
shall be entitled, without
the prior approval of the Purchasers, to make any press release or SEC or NASD
filings with respect
to such transactions as is required by applicable law and regulations (although
the Purchasers shall
be consulted by the Company in connection with any such press release and filing
prior to its release
and shall be provided with a copy thereof).

     (k)     Further Assurances.  Each party shall do and perform, or
cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements,
certificates, instruments and documents, as the other party may reasonably
request in order to carry
out the intent and accomplish the purposes of this Agreement and the
consummation of the
transactions contemplated hereby.

     (l)     Termination.  In the event that the First Closing shall not
have occurred on or before
December 29, 2000 unless the parties agree otherwise, this Agreement shall
terminate at the close
of business on such date.  Notwithstanding any termination of this Agreement,
any party not in
breach of this Agreement shall preserve all rights and remedies it may have
against another party
hereto for a breach of this Agreement prior to or relating to the termination
hereof.

     (m)     Joint Participation in Drafting.  Each party to this
Agreement has participated in the
negotiation and drafting of this Agreement and the Registration Rights
Agreement.  As such, the
language used herein and therein shall be deemed to be the language chosen by
the parties hereto to
express their mutual intent, and no rule of strict construction will be applied
against any party to this
Agreement.

     (n)     Equitable Relief.  The Company acknowledges that a breach by
it of its obligations
hereunder will cause irreparable harm to the Purchasers by vitiating the intent
and purpose of the
transactions contemplated hereby.  Accordingly, the Company acknowledges that
the remedy at law
for a breach of its obligations hereunder (including, but not limited to, its
obligations pursuant to
Section 5 hereof) will be inadequate and agrees, in the event of a breach or
threatened breach by the
Company of the provisions of this Agreement (including, but not limited to, its
obligations pursuant
to Section 5 hereof), that the Purchasers shall be entitled, in addition to all
other available remedies,
to an injunction restraining any breach and requiring immediate issuance and
transfer of the Shares,
without the necessity of showing economic loss and without any bond or other
security being
required.

     (o)     For purposes hereof, "Business Day" means any day
except Saturday, Sunday or other
day on which commercial banks in the City of New York are authorized or required
to close by law.

     IN WITNESS WHEREOF, the undersigned Purchaser and the Company have caused
this Agreement to be duly executed as of the date first above written.

SANGSTAT MEDICAL CORPORATION

    By:
/s/ Stephen G. Dance

    Name: Stephen G. Dance 

Title:     Senior Vice President, Finance

PURCHASER:

NARRAGANSETT I. LP

By: /s/ Joseph L. Dowling III

      Name: Joseph L. Dowling III

         Title: Managing Member

RESIDENCE:

ADDRESS:

                     Telecopy:
                        

                     Attention:
                        

                     With a copy to:

                     Klehr, Harrison, Harvey, Branzburg & Ellers LLP

                        260 South Broad Street

                        Philadelphia, Pennsylvania 19102

                        Telecopy:  (215) 568-6603

                        Attention:  Stephen T. Burdumy, Esquire

     IN WITNESS WHEREOF, the undersigned Purchaser and the Company have caused
this
Agreement to be duly executed as of the date first above written.

SANGSTAT MEDICAL CORPORATION

    By:
/s/ Stephen G. Dance

    Name: Stephen G. Dance 

Title:     Senior Vice President, Finance

PURCHASER:

NARRAGANSETT OFFSHORE, LTD.

By: /s/ Joseph L. Dowling III

      Name: Joseph L. Dowling III

         Title: Managing Member

RESIDENCE:

ADDRESS:

                     Telecopy:
                        

                     Attention:
                        

                     With a copy to:

                     Klehr, Harrison, Harvey, Branzburg & Ellers LLP

                        260 South Broad Street

                        Philadelphia, Pennsylvania 19102

                        Telecopy:  (215) 568-6603

                        Attention:  Stephen T. Burdumy, Esquire

     IN WITNESS WHEREOF, the undersigned Purchaser and the Company have caused
this
Agreement to be duly executed as of the date first above written.

SANGSTAT MEDICAL CORPORATION

    By:
/s/ Stephen G. Dance

    Name: Stephen G. Dance 

Title:     Senior Vice President, Finance

PURCHASER:

ROYAL BANK OF CANADA

by its agent RBC Dominion Securities Corporation

    By:
/s/ Mark A. Standish

    Name: Mark A. Standish 

Title:     Managing Director 

    By:
/s/ Bruce Runciman

    Name: Bruce Runciman

Title:     Chief Financial Officer

RESIDENCE: Toronto, Canada

ADDRESS:

                    One Liberty Plaza

                       165 Broadway, 2nd Floor

                        New York, New York 10006-1404

                        Telephone: (212) 858-7200

                        Telecopy: (212) 858-7437

                       Attention: Daniel J. Glusker, Esq.

                     With a copy to:

                     Klehr, Harrison, Harvey, Branzburg & Ellers LLP

                        260 South Broad Street

                        Philadelphia, Pennsylvania 19102

                        Telecopy:  (215) 568-6603

                        Attention:  Stephen T. Burdumy, Esquire

     IN WITNESS WHEREOF, the undersigned Purchaser and the Company have caused
this Agreement to be duly executed as of the date first above written.

SANGSTAT MEDICAL CORPORATION

    By:
/s/ Stephen G. Dance

    Name: Stephen G. Dance 

Title:     Senior Vice President, Finance

PURCHASER:

SDS CAPITAL PARTNERS, LLC

    By:
/s/ Steve Derby

    Name: Steve Derby 

Title:     Managing Member

RESIDENCE:

ADDRESS:

                     Telecopy:
                        

                     Attention:
                        

                     With a copy to:

                     Klehr, Harrison, Harvey, Branzburg & Ellers LLP

                        260 South Broad Street

                        Philadelphia, Pennsylvania 19102

                        Telecopy:  (215) 568-6603

                        Attention:  Stephen T. Burdumy, Esquire

SCHEDULE I

FIRST CLOSING:

	

Name of Purchaser

	

Number of Shares

Being Purchased

	

Purchase Price

	

Price Per Share

	

Narragansett I. LP

	

194,800

	

$1,850,600

	

$9.50

	

Narragansett Offshore, Ltd.

	

331,500

	

$3,149,250

	

$9.50

	

Royal Bank of Canada

	

368,500

	

$3,500,750

	

$9.50

SECOND CLOSING:

	

Name of Purchaser

	

Number of Shares

Being Purchased

	

Purchase Price

	

Price Per Share

	

SDS Capital Partners, LLC

(or its assignee)

	

421,000

	

$3,999,500

	

$9.5001082001 8K Rights

                                                      Exhibit 10.36

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as
of December 29,
2000, by and among SangStat Medical Corporation, a corporation
organized under the laws of the
State of Delaware (the "Company"), and the undersigned
(together with its affiliates, the "Initial
Investors"). 

WHEREAS:

A.   In connection with the Securities Purchase Agreement of even date herewith
by and
between the Company and the Initial Investors (the "Securities Purchase
Agreement"), the
Company has agreed, upon the terms and subject to the conditions contained
therein, to issue and
sell to the Initial Investors shares of the Company's common stock, par value
$.001 per share (the
"Common Stock").

B.   To induce the Initial Investors to execute and deliver the Securities
Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act
of 1933, as amended, and the rules and regulations thereunder, or any similar
successor statute
(collectively, the "Securities Act"), and applicable state
securities laws.

NOW, THEREFORE, in consideration of the premises and the
mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of
which are hereby
acknowledged, the Company and the Initial Investors hereby agree as follows:

 

1.   DEFINITIONS.

a.   As used in this Agreement, the following terms shall have the following
meanings:

(i)  "Investors" means the Initial Investors and any
transferees or assignees
who agree to become bound by the provisions of this Agreement in accordance with
Section 9
hereof.

(ii) "register," "registered," and
"registration" refer to a registration
effected by preparing and filing a Registration Statement or Statements in
compliance with the
Securities Act and pursuant to Rule 415 under the Securities Act or any
successor rule providing for
offering securities on a continuous basis ("Rule 415"), and the
declaration or ordering of
effectiveness of such Registration Statement by the United States Securities and
Exchange
Commission (the "SEC").

(iii)        "Registrable Securities" means the Common Stock
purchased by the
Initial Investors or their assignees in the First Closing (as defined in the
Securities Purchase
Agreement) and in the Second Closing (as defined in the Securities Purchase
Agreement) or any
shares of capital stock issued or issuable, from time to time (with any
adjustments), as a distribution
on or in exchange for or otherwise with respect to any of the foregoing, whether
as default payments
or otherwise.

(iv) "Registration Statement" means a registration
statement of the
Company under the Securities Act.

b.   Capitalized terms used herein and not otherwise defined herein shall have
the respective meanings set forth in the Securities Purchase Agreement.

2.   REGISTRATION.

a.   Mandatory Registration.  The Company shall prepare promptly and
file with
the SEC as soon as practicable, but in no event later than the later of (i) the
thirtieth (30th) day
following the date hereof  and (ii) January 31, 2001 (the "Filing
Date")(both as may be extended for
the number of days during which any Investor fails to promptly respond to
reasonable written
requests from the Company for information to be included in such filing (which
responsive
information shall not be deemed to be prompt in the event that a reasonable
request for such
information by the Company is made to the Investor and the Investor does not
provide the requested
information within three (3) business days of such request), a Registration
Statement on Form S-3
(or, if Form S-3 is not then available, on such form of Registration Statement
as is then available to
effect a registration of all of the Registrable Securities, subject to the
consent, not to be unreasonably
withheld, of the Initial Investors) covering the resale of at least 1,316,000
Registrable Securities.
The Registration Statement filed hereunder, to the extent allowable under the
Securities Act and the
rules promulgated thereunder (including Rule 416),  shall state that such
Registration Statement also
covers such indeterminate number of additional shares of Common Stock as may
become issuable
to prevent dilution resulting from stock splits, stock dividends or similar
transactions.  The
Registrable Securities included in the Registration Statement shall be allocated
to the Investors as
set forth in Section 11(k) hereof.  The Registration Statement (and each
amendment or supplement
thereto, and each request for acceleration of effectiveness thereof) shall be
provided to (and subject
to the approval of) the Initial Investors and their counsel prior to its filing
or other submission, not
to be unreasonably withheld or delayed.

b.   Underwritten Offering.  If any offering pursuant to the
Registration Statement
pursuant to Section 2(a) hereof involves an underwritten offering, the Investors
who hold a majority
in interest of the Registrable Securities subject to such underwritten offering,
with the consent of the
Initial Investors if they are still holding Registrable Securities, shall have
the right to select one legal
counsel to represent the Investors and an investment banker or bankers and
manager or managers to
administer the offering, which investment banker or bankers or manager or
managers shall be
reasonably satisfactory to the Company.  In the event that any Investors elect
not to participate in
such underwritten offering, the Registration Statement covering all of the
Registrable Securities shall
contain appropriate plans of distribution reasonably satisfactory to the
Investors participating in such
underwritten offering and the Investors electing not to participate in such
underwritten offering
(including, without limitation, the ability of nonparticipating Investors to
sell from time to time and
at any time during the effectiveness of such Registration Statement).
Notwithstanding the foregoing,
if the offering does not involve an underwritten offer, the Investors shall not
be entitled to require
that the offering be underwritten.

 c.  Payments by the Company.  The Company shall use commercially
reasonable
efforts to cause the Registration Statement required to be filed pursuant to
Section 2(a) hereof to
become effective as soon as practicable, but in no event later than the one
hundred fiftieth (150th)
day following the date hereof.  At the time of effectiveness, the Company shall
ensure such
Registration Statement covers at least 100% of the Registrable Securities.  If
(i)(A) the Registration
Statement required to be filed by the Company pursuant to Section 2(a) hereof is
not filed with the
SEC prior to the Filing Date (except to the extent caused by the Investors or
their counsel's failure
to reasonably timely respond pursuant to Section 2(a)) or (B) such Registration
Statement covering
all of the Registrable Securities is not declared effective by the SEC on or
before the one hundred
fiftieth (150th) day from the date hereof, as extended for delays in
excess of three (3) business days
for any Investor's failure to provide information or approval of filings in a
timely manner in
accordance with Section 2(a) (the "Registration Deadline") or
(ii) if, after such Registration
Statement has been declared effective by the SEC, sales of any of the
Registrable Securities required
to be covered by such Registration Statement cannot be made pursuant to such
Registration
Statement (by reason of a stop order or the Company's failure to update the
Registration Statement
or any other reason outside the control of the Investors), then the Company will
make payments to
the Investors in such amounts and at such times as shall be determined pursuant
to this Section 2(c)
as partial relief for the damages to the Investors by reason of any such delay
in or reduction of their
ability to sell the Registrable Securities (which remedy shall not be exclusive
of any other remedies
available at law or in equity).  The Company shall pay to the Investors $2,000
each day (which
amount shall be divided among the Investors on a pro rata basis based on the
number of shares of
Common Stock purchased by each Investor pursuant to the Securities Purchase
Agreement) for a
consecutive fifteen (15) days (the "Initial Penalty Period")
after the Filing Date and prior to the date
the Registration Statement is filed with the SEC pursuant to Section 2(a).  For
each thirty (30) day
period (or portion thereof) (each, a "Subsequent Penalty
Period") (A) after the Initial Penalty
Period and prior to the date the Registration Statement is filed with the SEC
pursuant to Section 2(a),
(B) after the Registration Deadline and prior to the date the Registration
Statement covering all of
the Registrable Securities is declared effective by the SEC, and (C) during
which sales of any
Registrable Securities cannot be made pursuant to any such Registration
Statement after the
Registration Statement has been declared effective, the Company shall pay to
each Investor an
amount equal to the product of (i) the aggregate purchase price of the Common
Stock purchased by
such Investor and with respect to (C)  above, currently owned by the Investor,
which cannot be sold
under Rule 144 during this time period (the "Aggregate Share
Price"), multiplied by (ii) fifteen
thousandths (.015); provided, however, that there shall be excluded from
any Initial Penalty Period
or Subsequent Penalty Period any delays which are solely attributable to changes
(other than
corrections of Company mistakes with respect to information previously provided
by the Investors)
required by the Investors in the Registration Statement with respect to
information relating to the
Investors, including, without limitation, changes to the plan of distribution,
and, provided further,
in no event shall the Company be required to pay such amounts with respect to
both (A) and (B)
above for the same period of time.  (For example, if the Registration Statement
covering all of the
Registrable Securities is not effective by fifteen (15) days after the
Registration Deadline, in addition
to the $30,000 the Company would pay during the Initial Penalty Period, if
applicable, the Company
would pay $15,000 for each thirty (30) day period thereafter with respect to
each $1,000,000 of
Aggregate Share Price until the Registration Statement becomes effective.)  Such
amounts shall be
paid in cash upon demand by the Investors.  Payments of cash pursuant hereto
shall be made on the
demand of the Investors but in no event later than within five (5) days after
the end of each period
that gives rise to such obligation, provided that, if any such period extends
for more than thirty (30)
days, interim payments shall be made for each such thirty (30) day period. 

d.   Piggy-Back Registrations.  If at any time prior to the expiration
of the
Registration Period (as hereinafter defined) and during a period in which the
Registration Statement
required to be filed pursuant to Section 2(a) is not effective, the Company
shall file with the SEC
a Registration Statement relating to an offering for its own account or the
account of others under
the Securities Act of any of its equity securities (other than the amendment of
a registration statement
now on file or registration statements on Form S-4 or Form S-8 or their then
equivalents relating to
equity securities to be issued solely in connection with any acquisition of any
entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans), the
Company shall send to each Investor written notice of such filing and, if within
fifteen (15) days after
the date of such notice, such Investor shall so request in writing, the Company
shall include in such
Registration Statement all or any part of the Registrable Securities such
Investor requests to be
registered, except that if, in connection with any underwritten public offering,
the managing
underwriter(s) thereof shall impose a limitation on the number of shares of
Common Stock which
may be included in the Registration Statement because, in such underwriter(s)'
judgment, marketing
or other factors dictate such limitation is necessary to facilitate public
distribution, then the Company
shall be obligated to include in such Registration Statement only such limited
portion of the
Registrable Securities with respect to which such Investor has requested
inclusion hereunder as the
underwriter shall permit.  Any exclusion of Registrable Securities shall be made
pro rata among the
Investors seeking to include Registrable Securities, in proportion to the number
of Registrable
Securities sought to be included by such Investors; provided,
however, that the Company shall not
exclude any Registrable Securities unless the Company has first excluded all
outstanding securities,
the holders of which are not contractually entitled to inclusion of such
securities in such Registration
Statement or are not contractually entitled to pro rata inclusion with the
Registrable Securities; and
provided, further, however, that, after giving effect to
the immediately preceding proviso, any
exclusion of Registrable Securities shall be made pro rata with holders of other
securities having the
contractual right to include such securities in the Registration Statement other
than holders of
securities contractually entitled to inclusion of their securities in such
Registration Statement by
reason of demand registration rights.  Notwithstanding the foregoing, no such
reduction shall reduce
the amount of Registrable Securities included in the registration below twenty-
five (25%) of the total
amount of securities included in such registration.  No right to registration of
Registrable Securities
under this Section 2(d) shall be construed to limit any registration required
under Section 2(a) hereof.
If an offering in connection with which an Investor is entitled to registration
under this Section 2(d)
is an underwritten offering, then each Investor whose Registrable Securities are
included in such
Registration Statement shall, unless otherwise agreed by the Company, offer and
sell such
Registrable Securities in an underwritten offering using the same underwriter or
underwriters and,
subject to the provisions of this Agreement, on the same terms and conditions as
other shares of
Common Stock included in such underwritten offering.  Notwithstanding anything
to the contrary
contained herein, the Investors' rights set forth in this Section 2(d) shall not
apply with respect to any
registration statement filed pursuant to that certain Registration Rights
Agreement, dated May 7,
1999, by and between the Company and Abbott Laboratories.  

e.   Eligibility for Form S-3.  The Company represents and warrants that
it meets
the requirements for the use of Form S-3 for registration of the sale by the
Initial Investors and any
other Investor of the Registrable Securities and the Company shall file all
reports required to be filed
by the Company with the SEC in a timely manner so as to thereafter maintain such
eligibility for the
use of Form S-3.

f.      Rule 416; Notice of Registration Trigger
Date.  The Company and the
Investors each acknowledge that an indeterminate number of Registrable
Securities shall be
registered pursuant to Rule 416 under the Securities Act so as to include in
such Registration
Statement any and all Registrable Securities which may become issuable to
prevent dilution resulting
from stock splits, stock dividends or similar transactions (collectively, the
"Rule 416 Securities").
In this regard, the Company agrees to take all steps necessary to ensure that
all Rule 416 Securities
are registered pursuant to Rule 416 under the Securities Act in the Registration
Statement and, absent
guidance from the SEC or other definitive authority to the contrary, the Company
shall affirmatively
support and not take any action adverse to the position that the Registration
Statements filed
hereunder cover all of the Rule 416 Securities.  If the Company determines that
the Registration
Statement(s) filed hereunder do not cover all of the Rule 416 Securities, the
Company shall
immediately provide to each Investor written notice (a "Rule 416
Notice") setting forth the basis for
the Company's position and the authority therefor.  In the event that a
Registration Trigger Date (as
defined below) occurs, the Company shall provide each Investor written notice of
such Registration
Trigger Date within three (3) business days thereafter. 

                g.       Delay Period.  If, at
any time prior to the expiration of the Registration Period
(as defined below), in the good faith reasonable judgment of the Company's Board
of Directors, the
disposition of Registrable Securities would require the premature disclosure of
material non-public
information which may reasonably be expected to have an adverse effect on the
Company, then the
Company shall not be required to maintain the effectiveness of or amend or
supplement the
Registration Statement for a period (a "Disclosure Delay
Period") expiring upon the earlier to occur
of (i) the date on which such material information is disclosed to the public or
ceases to be material
or (ii) up to ten (10) trading days after the date on which the Company provides
a notice to the
Investors under Section 3(f) hereof stating that the failure to disclose such
non-public information
causes the prospectus included in the Registration Statement, as then in effect,
to include an untrue
statement of a material fact or to omit to state a material fact required to be
stated therein or
necessary to make the statements therein not misleading (each, a
"Disclosure Delay Period
Notice").  For the avoidance of doubt, in no event shall a Disclosure
Delay Period exceed ten (10)
trading days.  The Company will give prompt written notice, in the manner
prescribed by Section
11 hereof, to the Investors of each Disclosure Delay Period.  If practicable,
such notice shall estimate
the duration of such Disclosure Delay Period.   Each Investor agrees that, upon
receipt of a
Disclosure Delay Period Notice prior to Investor's disposition of all such
Registrable Securities,
Investor will forthwith discontinue disposition of such Registrable Securities
pursuant to the
Registration Statement, and will not deliver any prospectus forming a part
thereof in connection with
any sale of such Registrable Securities until the expiration of such Disclosure
Delay Period.  In
addition, the provisions of Section 2(c) hereof shall not apply to the
Disclosure Delay Periods.
Notwithstanding anything in this Section 2 to the contrary, the Company shall
not deliver more than
two (2) Disclosure Delay Period Notices in any three hundred sixty five (365)
day period.

             

3.   OBLIGATIONS OF THE COMPANY.  

In connection with the registration of the Registrable Securities, the
Company shall have the
following obligations:

a.   The Company shall prepare and file with the
SEC the Registration Statement
required by Section 2(a) (but in no event later than the Filing Date), and cause
such Registration
Statement relating to Registrable Securities to become effective as soon as
practicable after such
filing (but in no event later than the Registration Deadline), and keep such
Registration Statement
effective pursuant to Rule 415 at all times until such date as is the earlier of
(i) the date on which all
of the Registrable Securities have been sold and (ii) the date on which all of
the Registrable
Securities (in the reasonable opinion of counsel to the Initial Investors, which
shall be sought upon
the reasonable request of the Company) may be immediately sold to the public
without registration
or restriction pursuant to Rule 144(k) under the Securities Act or any successor
provision (the
"Registration Period"), which Registration Statement (including
any amendments or supplements
thereto and prospectuses contained therein and all documents incorporated by
reference therein) shall
not contain any 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 not misleading,
and (iii) shall comply in
all material respects with the requirements of the Securities Act and the rules
and regulations of the
SEC promulgated thereunder.  The financial statements of the Company included in
the Registration
Statement or incorporated by reference therein will comply as to form in all
material respects with
the applicable accounting requirements and the published rules and regulations
of the SEC applicable
with respect thereto.  Such financial statements will be prepared in accordance
with U.S. generally
accepted accounting principles, consistently applied, during the periods
involved (except (i) as may
be otherwise indicated in such financial statements or the notes thereto, or
(ii) in the case of
unaudited interim statements, to the extent they may not include footnotes or
may be condensed on
summary statements and fairly present in all material respects the consolidated
financial position of
the Company and its consolidated subsidiaries as of the dates thereof and the
consolidated results
of their operations and cash flows for the periods then ended (subject, in the
case of unaudited
statements, to immaterial year-end adjustments).

b.   The Company shall prepare and file with the SEC such amendments
(including post-effective amendments) and supplements to the Registration
Statement and the
prospectus used in connection with the Registration Statement as may be
necessary to keep the
Registration Statement effective at all times during the Registration Period,
and, during such period,
comply with the provisions of the Securities Act with respect to the disposition
of all Registrable
Securities of the Company covered by the Registration Statement until the
earlier of (i) such time
as all of such Registrable Securities have been disposed of in accordance with
the intended methods
of disposition by the seller or sellers thereof as set forth in the Registration
Statement or (ii) the
expiration of the Registration Period.

c.   The Company shall furnish to each Investor whose Registrable Securities
are
included in the Registration Statement and its legal counsel (i) promptly after
the same is prepared
and publicly distributed, filed with the SEC, or received by the Company, one
copy of the
Registration Statement and any amendment thereto, each preliminary prospectus
and prospectus and
each amendment or supplement thereto, and, in the case of the Registration
Statement referred to in
Section 2(a), each letter written by or on behalf of the Company to the SEC or
the staff of the SEC
(including, without limitation, any request to accelerate the effectiveness of
the Registration
Statement or amendment thereto), and each item of correspondence from the SEC or
the staff of the
SEC, in each case relating to the Registration Statement (other than any
portion, if any, thereof which
contains information for which the Company has sought confidential treatment),
(ii) on the date of
effectiveness of the Registration Statement or any amendment thereto, a notice
stating that the
Registration Statement or amendment has been declared effective, and (iii) such
number of copies
of a prospectus, including a preliminary prospectus, and all amendments and
supplements thereto
and such other documents as such Investor may reasonably request in order to
facilitate the
disposition of the Registrable Securities owned by such Investor.

d.   The Company shall use reasonable commercial efforts to (i) register and
qualify the Registrable Securities covered by the Registration Statement under
such other securities
or "blue sky" laws of such jurisdictions in the United States as each Investor
who holds Registrable
Securities being offered reasonably requests, (ii) prepare and file in those
jurisdictions such
amendments (including post-effective amendments) and supplements to such
registrations and
qualifications as may be necessary to maintain the effectiveness thereof during
the Registration
Period, (iii) take such other actions as may be necessary to maintain such
registrations and
qualifications in effect at all times during the Registration Period, and (iv)
take all other actions
reasonably necessary or advisable to qualify the Registrable Securities for sale
in such jurisdictions;
provided, however, that the Company shall not be required in
connection therewith or as a condition
thereto to (a) qualify to do business in any jurisdiction where it would not
otherwise be required to
qualify but for this Section 3(d), (b) subject itself to general taxation in any
such jurisdiction, (c) file
a general consent to service of process in any such jurisdiction, (d) provide
any undertakings that
cause the Company undue expense or burden, or (e) make any change in its charter
or bylaws, which
in each case the Board of Directors of the Company determines to be contrary to
the best interests
of the Company and its stockholders.

e.   In the event the Investors who hold a majority in interest of the
Registrable
Securities being offered in an offering select underwriters for the offering,
the Company shall enter
into and perform its obligations under an underwriting agreement, in usual and
customary form,
including, without limitation, customary indemnification and contribution
obligations, with the
underwriters of such offering.

f.   As promptly as practicable after becoming aware of such event, the Company
shall notify each Investor by telephone and facsimile of the happening of any
event, of which the
Company has knowledge, as a result of which the prospectus included in the
Registration Statement,
as then in effect, includes an untrue statement of a material fact or omission
to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and, use
commercially reasonable efforts promptly to prepare a supplement or amendment to
the Registration
Statement to correct such untrue statement or omission, and deliver such number
of copies of such
supplement or amendment to each Investor as such Investor may reasonably
request.

g.   The Company shall use commercially reasonable efforts (i) to prevent the
issuance of any stop order or other suspension of effectiveness of a
Registration Statement, and, if
such an order is issued, to obtain the withdrawal of such order at the earliest
practicable moment
(including in each case by amending or supplementing such Registration
Statement) and (ii) to notify
each Investor who holds Registrable Securities being sold (or, in the event of
an underwritten
offering, the managing underwriters) of the issuance of such order and the
resolution thereof (and
if such Registration Statement is supplemented or amended, deliver such number
of copies of such
supplement or amendment to each Investor as such Investor may reasonably
request). 

h.   The Company shall permit a single firm of counsel designated by the
Initial
Investor to review the Registration Statement and all amendments and supplements
thereto a
reasonable period of time prior to its filing with the SEC, and not file any
document in a form to
which such counsel reasonably objects.

i.   The Company shall make generally available to its security holders as soon
as practical, but not later than ninety (90) days after the close of the period
covered thereby, an
earnings statement (in form complying with the provisions of Rule 158 under the
Securities Act)
covering a twelve-month period beginning not later than the first day of the
Company's fiscal quarter
next following the effective date of the Registration Statement.

j.   At the request of any Investor in the case of an underwritten public
offering,
the Company shall furnish, on the date of effectiveness of the Registration
Statement (i) an opinion,
dated as of such date, from counsel representing the Company addressed to the
Investors and in
form, scope and substance as is customarily given in an underwritten public
offering and (ii) a letter,
dated such date, from the Company's independent certified public accountants 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 the
Investors.

k.   The Company shall make available for inspection by (i) any Investor, (ii)
any
underwriter participating in any disposition pursuant to the Registration
Statement, (iii) one firm of
attorneys and one firm of accountants or other agents retained by the Investors,
and (iv) one firm of
attorneys retained by all such underwriters (collectively, the
"Inspectors") all pertinent financial and
other records, and pertinent corporate documents and properties of the Company
(collectively, the
"Records"), as shall be reasonably deemed necessary by each
Inspector to enable each Inspector to
exercise its due diligence responsibility, and cause the Company's officers,
directors and employees
to supply all information which any Inspector may reasonably request for
purposes of such due
diligence; provided, however, that each Inspector shall hold in
confidence and shall not make any
disclosure (except to an Investor) of any Record or other information which the
Company determines
in good faith to be confidential, and of which determination the Inspectors are
so notified, unless (a)
the disclosure of such Records is necessary to avoid or correct a misstatement
or omission in any
Registration Statement (a final determination of which shall be based upon an
opinion of outside
counsel to the Company), (b) the release of such Records is ordered pursuant to
a subpoena or other
order from a court or government body of competent jurisdiction, or (c) the
information in such
Records has been made generally available to the public other than by disclosure
in violation of this
or any other agreement.  The Company shall not be required to disclose any
confidential information
in such Records to any Inspector until and unless such Inspector shall have
entered into
confidentiality agreements (in form and substance satisfactory to the Company)
with the Company
with respect thereto, substantially in the form of this Section 3(k).  Each
Investor agrees that it shall,
upon learning that disclosure of such Records is sought in or by a court or
governmental body of
competent jurisdiction or through other means, give prompt notice to the Company
and allow the
Company, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a
protective order for, the Records deemed confidential.  Nothing herein shall be
deemed to limit the
Investors' ability to sell Registrable Securities in a manner which is otherwise
consistent with
applicable laws and regulations. 

l.   The Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company which was clearly
indicated in writing
as "confidential" at the time of its delivery unless (i) disclosure of such
information is necessary to
comply with federal or state securities laws, (ii) the disclosure of such
information is necessary to
avoid or correct a misstatement or omission in any Registration Statement, (iii)
the release of such
information is ordered pursuant to a subpoena or other order from a court or
governmental body of
competent jurisdiction, (iv) such information has been made generally available
to the public other
than by disclosure in violation of this or any other agreement, or (v) such
Investor consents to the
form and content of any such disclosure.  The Company agrees that it shall, upon
learning that
disclosure of such information concerning an Investor is sought in or by a court
or governmental
body of competent jurisdiction or through other means, give prompt notice to
such Investor prior to
making such disclosure, and allow the Investor, at its expense, to undertake
appropriate action to
prevent disclosure of, or to obtain a protective order for, such
information.

                             

m.   The Company shall use commercially reasonable efforts to promptly either
(i) cause all of the Registrable Securities covered by the Registration
Statement to be listed on the
NNM, NYSE or the AMEX or another national securities exchange and on each
additional national
securities exchange on which securities of the same class or series issued by
the Company are then
listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such
exchange, or (ii) secure the designation and quotation of all of the Registrable
Securities covered by
the Registration Statement on the NNM or SmallCap and, without limiting the
generality of the
foregoing, to arrange for or maintain at least two market makers to register
with the National
Association of Securities Dealers, Inc. ("NASD") as such with
respect to such Registrable Securities.

n.   The Company shall provide a transfer agent and registrar, which may be a
single entity, for the Registrable Securities not later than the effective date
of the Registration
Statement.

o.   The Company shall cooperate with the Investors who hold Registrable
Securities being offered and the managing underwriter or underwriters, if any,
to facilitate the timely
preparation and delivery of certificates (not bearing any restrictive legends)
representing Registrable
Securities to be offered pursuant to the Registration Statement and enable such
certificates to be in
such denominations or amounts, as the case may be, as the managing underwriter
or underwriters,
if any, or the Investors may reasonably request and registered in such names as
the managing
underwriter or underwriters, if any, or the Investors may request, and, within
three (3) business days
after the Registration Statement which includes Registrable Securities is
ordered effective by the
SEC, the Company shall deliver, and shall cause legal counsel selected by the
Company to deliver,
to the transfer agent for the Registrable Securities (with copies to the
Investors whose Registrable
Securities are included in such Registration Statement), an opinion of such
counsel in the form
attached hereto as Exhibit 1.

p.   At the request of any Investor, the Company shall prepare and file with
the
SEC such amendments (including post-effective amendments) and supplements to a
Registration
Statement and the prospectus used in connection with such Registration Statement
as may be
necessary in order to change the plan of distribution set forth in such
Registration Statement.

q.   The Company shall comply with all applicable laws related to a
Registration
Statement and offering and sale of securities and all applicable rules and
regulations of governmental
authorities in connection therewith (including, without limitation, the
Securities Act and the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated by the
SEC.)

r.   From and after the date of this Agreement, the Company shall not, and
shall
not agree to, allow the holders of any securities of the Company to include any
of their securities
which are not Registrable Securities in the Registration Statement under Section
2(a) hereof or any
amendment or supplement thereto under Section 3(b) hereof without the consent of
the holders of
a majority in interest of the Registrable Securities.

4.   OBLIGATIONS OF THE INVESTORS.

In connection with the registration of the Registrable Securities, the
Investors shall have the
following obligations:

a.   It shall be a condition precedent to the obligations of the Company to
complete the registration pursuant to this Agreement with respect to the
Registrable Securities of a
particular Investor that such Investor shall furnish to the Company such
information regarding itself,
the Registrable Securities held by it and the intended method of disposition of
the Registrable
Securities held by it as shall be reasonably required to effect the registration
of such Registrable
Securities and shall execute such documents in connection with such registration
as the Company
may reasonably request.  At least five trading days prior to the first
anticipated filing date of the
Registration Statement, the Company shall notify each Investor of the
information the Company
requires from each such Investor. 

b.   Each Investor, by such Investor's acceptance of the Registrable
Securities,
agrees to cooperate with the Company as reasonably requested by the Company in
connection with
the preparation and filing of the Registration Statement hereunder, unless such
Investor has notified
the Company in writing of such Investor's election to exclude all of such
Investor's Registrable
Securities from such Registration Statement.

c.   In the event Investors holding a majority in interest of the Registrable
Securities being offered determine to engage the services of an underwriter,
each Investor agrees to
enter into and perform such Investor's obligations under an underwriting
agreement, in usual and
customary form, including, without limitation, customary indemnification and
contribution
obligations, with the underwriter(s) of such offering and the Company and take
such other actions
as are reasonably required in order to expedite or facilitate the disposition of
the Registrable
Securities, unless such Investor has notified the Company in writing of such
Investor's election not
to participate in such underwritten distribution.  

d.   Each Investor agrees that, upon receipt of any notice from the Company of
the happening of any event of the kind described in Sections 3(f) or 3(g), such
Investor will
immediately discontinue disposition of Registrable Securities pursuant to the
Registration Statement
covering such Registrable Securities until such Investor's receipt of the copies
of the supplemented
or amended prospectus contemplated by Sections 3(f) or 3(g) and, if so directed
by the Company,
such Investor shall deliver to the Company (at the expense of the Company) or
destroy (and deliver
to the Company a certificate of destruction) all copies in such Investor's
possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.  

e.   No Investor may participate in any underwritten distribution hereunder
unless
such Investor (i) agrees to sell such Investor's Registrable Securities on the
basis provided in any
underwriting arrangements in usual and customary form entered into by the
Company, (ii) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other
documents reasonably required under the terms of such underwriting arrangements,
(iii) agrees to
pay its pro rata share of all underwriting discounts and commissions and any
expenses in excess of
those payable by the Company pursuant to Section 5 below, and (iv) complies with
all applicable
laws in connection therewith.  Notwithstanding anything in this Section 4(e) to
the contrary, this
Section 4(e) is not intended to limit an Investor's rights under Sections 2(a)
or 3(b) hereof.

5.   EXPENSES OF REGISTRATION.  All reasonable expenses incurred by the
Company or the Investors in connection with registrations, filings or
qualifications pursuant to
Sections 2 and 3 above, including, without limitation, all registration, listing
and qualifications fees,
printers and accounting fees, the fees and disbursements of counsel for the
Company and the
reasonably incurred fees and disbursements of one counsel selected by the
Investors (not to exceed
$7,500) shall be borne by the Company.  In addition, the Company shall pay all
of the Investors'
costs and expenses (including legal fees) incurred in connection with the
enforcement of the rights
of the Investors hereunder.

6.   INDEMNIFICATION.  In the event any Registrable Securities are
included in a
Registration Statement under this Agreement:

a.   To the extent permitted by law, the Company will indemnify, hold harmless
and defend (i) each Investor who holds such Registrable Securities, and
(ii) the directors, officers,
partners, members, employees and agents of such Investor and each person who
controls any Investor
within the meaning of Section 15 of the Securities Act or Section 20 of the
Securities Exchange Act
of 1934, as amended (the "Exchange Act"), if any, (each, an
"Indemnified Person"), against any
joint or several losses, claims, damages, liabilities or expenses
(collectively, together with actions,
proceedings or inquiries by any regulatory or self-regulatory organization,
whether commenced or
threatened, in respect thereof, "Claims") to which any of them
may become subject insofar as such
Claims arise out of or are based upon: (i) any untrue statement or alleged
untrue statement of a
material fact in a Registration Statement or the omission or alleged omission to
state therein a
material fact required to be stated or necessary to make the statements therein
not misleading, (ii)
any untrue statement or alleged untrue statement of a material fact contained in
any preliminary
prospectus if used prior to the effective date of such Registration Statement,
or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or
supplement thereto with the SEC) or the omission or alleged omission to state
therein any material
fact necessary to make the statements made therein, in light of the
circumstances under which the
statements therein were made, not misleading, or (iii) any violation or alleged
violation by the
Company of the Securities Act, the Exchange Act, any other law, including,
without limitation, any
state securities law, or any rule or regulation thereunder relating to the offer
or sale of the Registrable
Securities (the matters in the foregoing clauses (i) through (iii) being,
collectively, "Violations").
Subject to the restrictions set forth in Section 6(c) with respect to the number
of legal counsel, the
Company shall reimburse the Investors and each other Indemnified Person,
promptly as such
expenses are incurred and are due and payable, for any reasonable legal fees or
other reasonable
expenses incurred by them in connection with investigating or defending any such
Claim.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained
in this Section 6(a): (i) shall not apply to a Claim arising out of or based
upon a Violation which
occurs in reliance upon and in conformity with information furnished in writing
to the Company by
such Indemnified Person expressly for use in the Registration Statement or any
such amendment
thereof or supplement thereto; (ii) shall not apply to amounts paid in
settlement of any Claim if such
settlement is effected without the prior written consent of the Company, which
consent shall not be
unreasonably withheld; and (iii) with respect to any preliminary prospectus,
shall not inure to the
benefit of any Indemnified Person if the untrue statement or omission of
material fact contained in
the preliminary prospectus was corrected on a timely basis in the prospectus, as
then amended or
supplemented, if such corrected prospectus was timely made available by the
Company pursuant to
Section 3(c) hereof, and the Indemnified Person was promptly advised in writing
not to use the
incorrect prospectus prior to the use giving rise to a Violation and such
Indemnified Person,
notwithstanding such advice, used it.  Such indemnity shall remain in full force
and effect regardless
of any investigation made by or on behalf of the Indemnified Person and shall
survive the transfer
of the Registrable Securities by the Investors pursuant to Section 9 hereof.

b.   In connection with any Registration Statement in which an Investor is
participating, each such Investor agrees severally and not jointly to indemnify,
hold harmless and
defend, to the same extent and in the same manner set forth in Section 6(a), the
Company, each of
its directors, each of its officers who signs the Registration Statement, its
employees, agents and each
person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act or
Section 20 of the Exchange Act, and any other stockholder selling securities
pursuant to the
Registration Statement or any of its directors or officers or any person who
controls such stockholder
within the meaning of the Securities Act or the Exchange Act (collectively and
together with an
Indemnified Person, an "Indemnified Party"), against any Claim
to which any of them may become
subject, under the Securities Act, the Exchange Act or otherwise, insofar as
such Claim arises out
of or is 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 to the
Company by such Investor expressly for use in connection with such Registration
Statement; and
subject to Section 6(c) such Investor will reimburse any legal or other expenses
(promptly as such
expenses are incurred and are due and payable) reasonably incurred by them in
connection with
investigating or defending any such Claim; provided, however, that the
indemnity agreement
contained in this Section 6(b) shall not apply to amounts paid in settlement of
any Claim if such
settlement is effected without the prior written consent of such Investor, which
consent shall not be
unreasonably withheld; provided, further, however, that the
Investor shall be liable under this
Agreement (including this Section 6(b) and Section 7) for only that amount as
does not exceed the
net proceeds actually received by such Investor as a result of the sale of
Registrable Securities
pursuant to such Registration Statement.  Such indemnity shall remain in full
force and effect
regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the
transfer of the Registrable Securities by the Investors pursuant to Section 9
hereof.  Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section
6(b) with respect to any preliminary prospectus shall not inure to the benefit
of any Indemnified Party
if the untrue statement or omission of material fact contained in the
preliminary prospectus was
corrected on a timely basis in the prospectus, as then amended or
supplemented.

c.   Promptly after receipt by an Indemnified Person or Indemnified Party under
this Section 6 of notice of the commencement of any action (including any
governmental action),
such Indemnified Person or Indemnified Party shall, if a Claim in respect
thereof is to made against
any indemnifying party under this Section 6, 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 control of the defense thereof with counsel mutually satisfactory to
the indemnifying party
and the Indemnified Person or the Indemnified Party, as the case may be;
provided, however, that
such indemnifying party shall not be entitled to assume such defense and an
Indemnified Person or
Indemnified Party shall have the right to retain its own counsel with the fees
and expenses to be paid
by the indemnifying party, if, in the reasonable opinion of counsel retained by
the indemnifying
party, the representation by such counsel of the Indemnified Person or
Indemnified Party and the
indemnifying party would be inappropriate due to actual or potential conflicts
of interest between
such Indemnified Person or Indemnified Party and any other party represented by
such counsel in
such proceeding or the actual or potential defendants in, or targets of, any
such action include both
the Indemnified Person or the Indemnified Party and the indemnifying party and
any such
Indemnified Person or Indemnified Party reasonably determines that there may be
legal defenses
available to such Indemnified Person or Indemnified Party which are in conflict
with those available
to such indemnifying party.  The indemnifying party shall pay for only one
separate legal counsel
for the Indemnified Person or the Indemnified Parties, as applicable, and such
legal counsel shall be
selected by Investors holding a majority-in-interest of the  Registrable
Securities included in the
Registration Statement to which the Claim relates (with the approval of the
Initial Investor if it holds
Registrable Securities included in such Registration Statement), if the
Investors are entitled to
indemnification hereunder, or by the Company, if the Company is entitled to
indemnification
hereunder, as applicable.  The failure to deliver written notice to the
indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party
of any liability to the Indemnified Person or Indemnified Party under this
Section 6, except to the
extent that the indemnifying party is actually prejudiced in its ability to
defend such action.  The
indemnification required by this Section 6 shall be made by periodic payments of
the amount thereof
during the course of the investigation or defense, as such expense, loss, damage
or liability is
incurred and is due and payable.

7.   CONTRIBUTION.  To the extent any indemnification by an indemnifying
party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with
respect to any amounts for which it would otherwise be liable under Section 6 to
the fullest extent
permitted by law as is appropriate to reflect the relative fault of the
indemnifying party, on the one
hand, and the Indemnified Person or Indemnified Party, as the case may be, on
the other hand, with
respect to the Violation giving rise to the applicable Claim; provided,
however, that (i) no
contribution shall be made under circumstances where the maker would not have
been liable for
indemnification under the fault standards set forth in Section 6, (ii) no person
guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of
such fraudulent
misrepresentation, and (iii) contribution (together with any indemnification or
other obligations
under this Agreement) by any seller of Registrable Securities shall be limited
in amount to the net
amount of proceeds received by such seller from the sale of such Registrable
Securities.

8.   REPORTS UNDER THE EXCHANGE ACT.  With a view to making available to
the Investors the benefits of Rule 144 promulgated under the Securities Act or
any other similar rule
or regulation of the SEC that may at any time permit the Investors to sell
securities of the Company
to the public without registration ("Rule 144"), the Company
agrees to:

a.   file with the SEC in a timely manner and make and keep available all
reports
and other documents required of the Company under the Securities Act and the
Exchange Act so
long as the Company remains subject to such requirements (it being understood
that nothing herein
shall limit the Company's obligations under Section 4(c) of the Securities
Purchase Agreement) and
the filing and availability of such reports and other documents is required for
the applicable
provisions of Rule 144; and

b.   furnish to each Investor so long as such Investor owns Shares or
Registrable
Securities, promptly upon request, (i) a written statement by the Company that
it has complied with
the reporting requirements of Rule 144, the Securities Act and the Exchange Act,
(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
to permit the
Investors to sell such securities under Rule 144 without registration.

9.   ASSIGNMENT OF REGISTRATION RIGHTS.  The rights of the Investors
hereunder, including the right to have the Company register Registrable
Securities pursuant to this
Agreement, shall be automatically assignable by each Investor to any transferee
of 150,000 or more
of the Shares (as adjusted for any stock split, stock dividend,
recapitalization, reorganization or
otherwise) the Registrable Securities, or any assignee of the Securities
Purchase Agreement if: (i)
the Investor agrees in writing with the transferee or assignee to assign such
rights, and a copy of such
agreement is furnished to the Company after such assignment, (ii) the Company is
furnished with
written notice of (a) the name and address of such transferee or assignee, and
(b) the securities with
respect to which such registration rights are being transferred or assigned,
(iii) following such
transfer or assignment, the further disposition of such securities by the
transferee or assignee is
restricted under the Securities Act and applicable state securities laws, (iv)
the transferee or assignee
agrees in writing for the benefit of the Company to be bound by all of the
provisions contained
herein, and (v) such transfer shall have been made in accordance with the
applicable requirements
of the Securities Purchase Agreement.  In addition, and notwithstanding anything
to the contrary
contained in this Agreement, the Shares may be pledged, and all rights of the
Investors under this
Agreement or any other agreement or document related to the transactions
contemplated hereby may
be assigned, without further consent of the Company, to a bona fide pledgee in
connection with an
Investor's margin or brokerage account.

10.  AMENDMENT OF REGISTRATION RIGHTS.  Provisions of this
Agreement may
be amended and the observance thereof may be waived (either generally or in a
particular instance
and either retroactively or prospectively), only with written consent of the
Company and Investors
who hold a majority in interest of the Registrable Securities or, in the case of
a waiver, with the
written consent of the party charged with the enforcement of any such provision;
provided, however,
that no consideration shall be paid to an Investor by the Company in connection
with an amendment
hereto unless each Investor similarly affected by such amendment receives a pro-
rata amount of
consideration from the Company.  Unless an Investor otherwise agrees, each
amendment hereto must
similarly affect each Investor.  Any amendment or waiver effected in accordance
with this Section
10 shall be binding upon each Investor and the Company.

11.  MISCELLANEOUS.

a.   A person or entity is deemed to be a holder of Registrable Securities
whenever
such person or entity owns of record such Registrable Securities.  If the
Company receives
conflicting instructions, notices or elections from two or more persons or
entities with respect to the
same Registrable Securities, the Company shall act upon the basis of
instructions, notice or election
received from the registered owner of such Registrable Securities.

b.   Any notices required or permitted to be given under the terms of this
Agreement shall be sent by certified or registered mail (return receipt
requested) or delivered
personally or by courier or by confirmed telecopy, and shall be effective five
(5) days after being
placed in the mail, if mailed, or upon receipt or refusal of receipt, if
delivered personally or by
courier or confirmed telecopy, in each case addressed to a party.  The addresses
for such
communications shall be:

If to the Company:

SangStat Medical Corporation

6300 Dumbarton Circle

Fremont, California 94555

Facsimile: (510) 789-4493

Attn: General Counsel

with a copy simultaneously transmitted by like means to:

                     Gray Cary Ware & Friedenrich

                     4365 Executive Drive

                     Suite 1600

                     San Diego, CA 92121

                     Facsimile: (858) 677-1477

                     Attn: Paul B. Johnson, Esquire

and if to any Investor, at such address as such Investor shall have provided
in writing to the Company, or at such other address as each such party furnishes
by notice given in
accordance with this Section 11(b).

c.   Failure of any party to exercise any right or remedy under this Agreement
or
otherwise, or delay by a party in exercising such right or remedy, shall not
operate as a waiver
thereof.

             d.      This Agreement shall be governed by and construed in
accordance with the
laws of the State of Delaware applicable to contracts made and to be performed
in the State of
Delaware.  The Company and each Investor irrevocably consents to the
jurisdiction of the United
States federal courts and the state courts located in the State of Delaware in
any suit or proceeding
based on or arising under this Agreement and irrevocably agrees that all claims
in respect of such
suit or proceeding may be determined in such courts. The Company and each
Investor irrevocably
waives the defense of an inconvenient forum to the maintenance of such suit or
proceeding.   The
parties further agree that service of process upon the other party, mailed by
first class mail shall be
deemed in every respect effective service of process upon such party in any such
suit or proceeding.
Nothing herein shall affect the parties' right to serve process in any other
manner permitted by law.
Each party agrees that a final non-appealable judgment in any such suit or
proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on such judgment
or in any other lawful
manner.

e.   This Agreement and the Securities Purchase Agreement (including all
schedules and exhibits thereto) constitute the entire agreement among the
parties hereto with respect
to the subject matter hereof and thereof.  There are no restrictions, promises,
warranties or
undertakings, other than those set forth or referred to herein and therein.
This Agreement and the
Securities Purchase Agreement supersede all prior agreements and understandings
among the parties
hereto with respect to the subject matter hereof and thereof.

f.   Subject to the requirements of Section 9 hereof, this Agreement shall
inure
to the benefit of and be binding upon the successors and assigns of each of the
parties hereto.

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

h.   This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same
agreement.  This
Agreement, once executed by a party, may be delivered to the other party hereto
by facsimile
transmission of a copy of this Agreement bearing the signature of the party so
delivering this
Agreement.

i.   Each party shall do and perform, or cause to be done and performed, all
such
further acts and things, and shall execute and deliver all such other
agreements, certificates,
instruments and documents, as the other party may reasonably request in order to
carry out the intent
and accomplish the purposes of this Agreement and the consummation of the
transactions
contemplated hereby.

j.   All consents, approvals and other determinations to be made by the
Investors
pursuant to this Agreement shall be made by the Investors holding a majority in
interest of the
Registrable Securities held by all Investors.

k.   The initial number of Registrable Securities included on any Registration
Statement and each increase to the number of Registrable Securities included
thereon shall be
allocated pro rata among the Investors based on the number of Registrable
Securities held by each
Investor at the time of such establishment or increase, as the case may be.  In
the event an Investor
shall sell or otherwise transfer any of such holder's Registrable Securities,
each transferee shall be
allocated a pro rata portion of the number of Registrable Securities included on
a Registration
Statement for such transferor.  Any shares of Common Stock included on a
Registration Statement
and which remain allocated to any person or entity which does not hold any
Registrable Securities
shall be allocated to the remaining Investors pro rata based on the number of
shares of Registrable
Securities then held by such Investors.

l.   Each party to this Agreement has participated in the negotiation and
drafting
of this Agreement.  As such, the language used herein shall be deemed to be the
language chosen by
the parties hereto to express their mutual intent, and no rule of strict
construction will be applied
against any party to this Agreement.

m.   For purposes of this Agreement, the term "business day" means any day
other
than a Saturday or Sunday or a day on which banking institutions in the State of
New York are
authorized or obligated by law, regulation or executive order to close, and the
term "trading day"
means any day on which NASDAQ or, if the Common Stock is not then traded on
NASDAQ, the
principal securities exchange or trading market where the Common Stock is then
listed or traded,
is open for trading. 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly  executed as of the
date first above written.

SANGSTAT MEDICAL CORPORATION

    By:
/s/ Stephen G. Dance

    Name: Stephen G. Dance 

Its:     Senior Vice President, Finance 

INITIAL INVESTORS:

NARRAGANSETT I, LP

By:
/s/ Joseph L. Dowling III

Name: Joseph L. Dowling III

Its: Managing Member

NARRAGANSETT OFFSHORE, LTD.

By:
/s/ Joseph L. Dowling III

Name: Joseph L. Dowling III

Its: Managing Member

ROYAL BANK OF CANADA

by its agent RBC Dominion Securities Corporation

    By:
/s/ Mark A. Standish

    Name: Mark A. Standish 

Its:     Managing Director 

    By:
/s/ Bruce Runciman

    Name: Bruce Runciman

Its:     Chief Financial Officer

SDS CAPITAL PARTNERS, LLC

    By:
/s/ Steve Derby

    Name: Steve Derby 

Its:     Managing Member

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