Document:

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                                                                     EXHIBIT 4.1

                            ATRIX LABORATORIES, INC.

                           2000 STOCK INCENTIVE PLAN
                  (AMENDED AND RESTATED AS OF APRIL 27, 2003)
                  (AMENDED AND RESTATED AS OF APRIL, 2004)

     1. Purposes of the Plan.  The purposes of this Stock Incentive Plan are to
attract and retain the best available personnel, to provide additional incentive
to Employees, Directors and Consultants and to promote the success of the
Company's business.

     2. Definitions.  As used herein, the following definitions shall apply:

          (a) "Administrator" means the Board or any of the Committees appointed
     to administer the Plan.

          (b) "Affiliate" and "Associate" shall have the respective meanings
     ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

          (c) "Applicable Laws" means the legal requirements relating to the
     administration of stock incentive plans, if any, under applicable
     provisions of federal securities laws, state corporate and securities laws,
     the Code, the rules of any applicable stock exchange or national market
     system, and the rules of any foreign jurisdiction applicable to Awards
     granted to residents therein.

          (d) "Award" means the grant of an Option or Restricted Stock under the
     Plan.

          (e) "Award Agreement" means the written agreement evidencing the grant
     of an Award executed by the Company and the Grantee, including any
     amendments thereto.

          (f) "Board" means the Board of Directors of the Company.

          (g) "Cause" means (i) with respect to a Grantee who is a party to a
     written agreement with, or alternatively, participates in a compensation or
     benefit plan of the Company or a Related Entity, which agreement or plan
     contains a definition of "for cause" or "cause" (or words of like import)
     for purposes of termination of Continuous Service thereunder by the Company
     or such Related Entity, "for cause" or "cause" as defined in the most
     recent of such agreements or plans, or (ii) in all other cases, as
     determined by the Administrator, in its sole discretion, (a) the willful
     commission by a Grantee of a criminal or other act that causes or will
     probably cause substantial economic damage to the Company or a Related
     Entity or substantial injury to the business reputation of the Company or a
     Related Entity; (b) the continuing willful failure of a Grantee to perform
     the duties of such Grantee to the Company or a Related Entity (other than
     such failure resulting from the Grantee's incapacity due to physical or
     mental illness) after written notice thereof (specifying the particulars
     thereof in reasonable detail) and a reasonable opportunity to be heard and
     cure such failure are given to the Grantee by the Administrator; or (c) the
     order of a federal or state bank regulatory agency or a court of competent
     jurisdiction requiring the termination of the employee's employment. For
     purposes of the Plan, no act, or failure to act, on the Grantee's part
     shall be considered "willful" unless done or omitted to be done by the
     Grantee not in good faith and without reasonable belief that the Grantee's
     action or omission was in the best interest of the Company or a Related
     Entity.

          (h) "Change in Control" means a change in ownership or control of the
     Company effected through either of the following transactions:

             (i) the direct or indirect acquisition by any person or related
        group of persons (other than an acquisition from or by the Company or by
        a Company-sponsored employee benefit plan or by a person that directly
        or indirectly controls, is controlled by, or is under common control
        with, the Company) of beneficial ownership (within the meaning of Rule
        13d-3 of the Exchange Act) of securities possessing more than
        twenty-five percent (25%) of the total combined voting power of the
        Company's outstanding securities pursuant to a tender or exchange offer
        made directly to the

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        Company's stockholders which a majority of the Continuing Directors who
        are not Affiliates or Associates of the offeror do not recommend such
        stockholders accept, or

             (ii) a change in the composition of the Board over a period of
        thirty-six (36) months or less such that a majority of the Board members
        (rounded up to the next whole number) ceases, by reason of one or more
        contested elections for Board membership, to be comprised of individuals
        who are Continuing Directors.

          (i) "Code" means the Internal Revenue Code of 1986, as amended.

          (j) "Committee" means any committee appointed by the Board to
     administer the Plan.

          (k) "Common Stock" means the common stock of the Company.

          (l) "Company" means Atrix Laboratories, Inc., a Delaware corporation.

          (m) "Consultant" means any person (other than an Employee or a
     Director, solely with respect to rendering services in such person's
     capacity as a Director) who is engaged by the Company or any Related Entity
     to render consulting or advisory services to the Company or such Related
     Entity.

          (n) "Continuing Directors" means members of the Board who either (i)
     have been Board members continuously for a period of at least thirty-six
     (36) months or (ii) have been Board members for less than thirty-six (36)
     months and were elected or nominated for election as Board members by at
     least a majority of the Board members described in clause (i) who were
     still in office at the time such election or nomination was approved by the
     Board.

          (o) "Continuous Service" means that the provision of services to the
     Company or a Related Entity in any capacity of Employee, Director or
     Consultant, is not interrupted or terminated. Continuous Service shall not
     be considered interrupted in the case of (i) any approved leave of absence,
     (ii) transfers among the Company, any Related Entity, or any successor, in
     any capacity of Employee, Director or Consultant, or (iii) any change in
     status as long as the individual remains in the service of the Company or a
     Related Entity in any capacity of Employee, Director or Consultant (except
     as otherwise provided in the Award Agreement). An approved leave of absence
     shall include sick leave, military leave, or any other authorized personal
     leave. For purposes of each Incentive Stock Option qualified under the
     Plan, if such leave exceeds ninety (90) days, and reemployment upon
     expiration of such leave is not guaranteed by statute or contract, then the
     Incentive Stock Option shall be treated as a Non-Qualified Stock Option on
     the day three (3) months and one (1) day following the expiration of such
     ninety (90) day period.

          (p) "Corporate Transaction" means any of the following transactions:

             (i) a merger or consolidation in which the Company is not the
        surviving entity, except for a transaction the principal purpose of
        which is to change the state in which the Company is incorporated;

             (ii) the sale, transfer or other disposition of all or
        substantially all of the assets of the Company (including the capital
        stock of the Company's subsidiary corporations);

             (iii) approval by the Company's stockholders of any plan or
        proposal for the complete liquidation or dissolution of the Company;

             (iv) any reverse merger in which the Company is the surviving
        entity but in which securities possessing more than twenty-five percent
        (25%) of the total combined voting power of the Company's outstanding
        securities are transferred to a person or persons different from those
        who held such securities immediately prior to such merger; or

             (v) acquisition by any person or related group of persons (other
        than the Company or by a Company-sponsored employee benefit plan) of
        beneficial ownership (within the meaning of Rule 13d-3 of the Exchange
        Act) of securities possessing more than twenty-five percent (25%) of the
        total combined voting power of the Company's outstanding securities
        (whether or not in a

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        transaction also constituting a Change in Control), but excluding any
        such transaction that the Administrator determines shall not be a
        Corporate Transaction.

          (q) "Covered Employee" means an Employee who is a "covered employee"
     under Section 162(m)(3) of the Code.

          (r) "Director" means a member of the Board or the board of directors
     of any Related Entity.

          (s) "Disability" means a Grantee would qualify for benefit payments
     under the long-term disability policy of the Company or the Related Entity
     to which the Grantee provides services regardless of whether the Grantee is
     covered by such policy. If the Company or the Related Entity to which the
     Grantee provides service does not have a long-term disability plan in
     place, "Disability" means that a Grantee is permanently unable to carry out
     the responsibilities and functions of the position held by the Grantee by
     reason of any medically determinable physical or mental impairment. A
     Grantee will not be considered to have incurred a Disability unless he or
     she furnishes proof of such impairment sufficient to satisfy the
     Administrator in its discretion.

          (t) "Employee" means any person, including an Officer or Director, who
     is an employee of the Company or any Related Entity. The payment of a
     director's fee by the Company or a Related Entity shall not be sufficient
     to constitute "employment" by the Company.

          (u) "Exchange Act" means the Securities Exchange Act of 1934, as
     amended.

          (v) "Fair Market Value" means, as of any date, the value of Common
     Stock determined as follows:

             (i) If the Common Stock is listed on any established stock exchange
        or a national market system, including without limitation The Nasdaq
        National Market or The Nasdaq SmallCap Market of The Nasdaq Stock
        Market, its Fair Market Value shall be the closing sales price for such
        stock (or the closing bid, if no sales were reported) as quoted on such
        exchange or system on the date of determination (or, if no closing sales
        price or closing bid was reported on that date, as applicable, on the
        last trading date such closing sales price or closing bid was reported),
        as reported in The Wall Street Journal or such other source as the
        Administrator deems reliable;

             (ii) If the Common Stock is regularly quoted on an automated
        quotation system (including the OTC Bulletin Board) or by a recognized
        securities dealer, but selling prices are not reported, the Fair Market
        Value of a share of Common Stock shall be the mean between the high bid
        and low asked prices for the Common Stock on the date of determination
        (or, if no such prices were reported on that date, on the last date such
        prices were reported), as reported in The Wall Street Journal or such
        other source as the Administrator deems reliable; or

             (iii) In the absence of an established market for the Common Stock
        of the type described in (i) and (ii), above, the Fair Market Value
        thereof shall be determined by the Administrator in good faith.

          (w) "Grantee" means an Employee, Director or Consultant who receives
     an Award pursuant to an Award Agreement under the Plan.

          (x) "Immediate Family" means any child, stepchild, grandchild, parent,
     stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
     mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
     or sister-in-law, including adoptive relationships, any person sharing the
     Grantee's household (other than a tenant or employee), a trust in which
     these persons have more than fifty percent (50%) of the beneficial
     interest, a foundation in which these persons (or the Grantee) control the
     management of assets, and any other entity in which these persons (or the
     Grantee) own more than fifty percent (50%) of the voting interests.

          (y) "Incentive Stock Option" means an Option intended to qualify as an
     incentive stock option within the meaning of Section 422 of the Code.
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          (z) "Non-Qualified Stock Option" means an Option not intended to
     qualify as an Incentive Stock Option.

          (aa) "Officer" means a person who is an officer of the Company or a
     Related Entity within the meaning of Section 16 of the Exchange Act and the
     rules and regulations promulgated thereunder.

          (bb) "Option" means an option to purchase Shares pursuant to an Award
     Agreement granted under the Plan.

          (cc) "Parent" means a "parent corporation," whether now or hereafter
     existing, as defined in Section 424(e) of the Code.

          (dd) "Performance-Based Compensation" means compensation qualifying as
     "performance-based compensation" under Section 162(m) of the Code.

          (ee) "Plan" means this 2000 Stock Incentive Plan.

          (ff) "Related Entity" means any Parent, Subsidiary and any business,
     corporation, partnership, limited liability company or other entity in
     which the Company, a Parent or a Subsidiary holds a substantial ownership
     interest, directly or indirectly.

          (gg) "Related Entity Disposition" means the sale, distribution or
     other disposition by the Company, a Parent or a Subsidiary of all or
     substantially all of the interests of the Company, a Parent or a Subsidiary
     in any Related Entity effected by a sale, merger or consolidation or other
     transaction involving that Related Entity or the sale of all or
     substantially all of the assets of that Related Entity, other than any
     Related Entity Disposition to the Company, a Parent or a Subsidiary.

          (hh) "Restricted Stock" means Shares issued under the Plan to the
     Grantee for such consideration, if any, and subject to such restrictions on
     transfer, rights of first refusal, repurchase provisions, forfeiture
     provisions, and other terms and conditions as established by the
     Administrator.

          (ii) "Rule 16b-3" means Rule 16b-3 promulgated under the Exchange Act
     or any successor thereto.

          (jj) "Share" means a share of the Common Stock.

          (kk) "Subsidiary" means a "subsidiary corporation," whether now or
     hereafter existing, as defined in Section 424(f) of the Code.

     3. Stock Subject to the Plan.

     (a) Subject to the provisions of Section 10, below, the maximum aggregate
number of Shares which may be issued pursuant to all Awards is 4,750,000 Shares.
Notwithstanding the foregoing, subject to the provisions of Section 10, below,
of the number of Shares specified above, the maximum aggregate number of Shares
that may be issued pursuant to all Awards of Restricted Stock is 250,000 Shares.
The Shares to be issued pursuant to Awards may be authorized, but unissued, or
reacquired Common Stock.

     (b) Any Shares covered by an Award (or portion of an Award) which is
forfeited or canceled, expires or is settled in cash, shall be deemed not to
have been issued for purposes of determining the maximum aggregate number of
Shares which may be issued under the Plan. Shares that actually have been issued
under the Plan pursuant to an Award shall not be returned to the Plan and shall
not become available for future issuance under the Plan, except that if unvested
Shares are forfeited, or repurchased by the Company at their original purchase
price, such Shares shall become available for future grant under the Plan.

     4. Administration of the Plan.

     (a) Plan Administrator.

          (i) Administration with Respect to Directors and Officers.  With
     respect to grants of Awards to Directors or Employees who are also Officers
     or Directors of the Company, the Plan shall be administered by (A) the
     Board or (B) a Committee designated by the Board, which Committee shall be
     constituted in such a manner as to satisfy the Applicable Laws and to
     permit such grants and related transactions under the Plan to be exempt
     from Section 16(b) of the Exchange Act in accordance with

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     Rule 16b-3. Once appointed, such Committee shall continue to serve in its
     designated capacity until otherwise directed by the Board.

          (ii) Administration With Respect to Consultants and Other
     Employees.  With respect to grants of Awards to Employees or Consultants
     who are neither Directors nor Officers of the Company, the Plan shall be
     administered by (A) the Board or (B) a Committee designated by the Board,
     which Committee shall be constituted in such a manner as to satisfy the
     Applicable Laws. Once appointed, such Committee shall continue to serve in
     its designated capacity until otherwise directed by the Board. The Board
     may authorize one or more Officers to grant such Awards and may limit such
     authority as the Board determines from time to time.

          (iii) Administration With Respect to Covered
     Employees.  Notwithstanding the foregoing, grants of Awards to any Covered
     Employee intended to qualify as Performance-Based Compensation shall be
     made only by a Committee (or subcommittee of a Committee) which is
     comprised solely of two or more Directors eligible to serve on a committee
     making Awards qualifying as Performance-Based Compensation. In the case of
     such Awards granted to Covered Employees, references to the "Administrator"
     or to a "Committee" shall be deemed to be references to such Committee or
     subcommittee.

          (iv) Administration Errors.  In the event an Award is granted in a
     manner inconsistent with the provisions of this subsection (a), such Award
     shall be presumptively valid as of its grant date to the extent permitted
     by the Applicable Laws.

     (b) Powers of the Administrator.  Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

          (i) to select the Employees, Directors and Consultants to whom Awards
     may be granted from time to time hereunder;

          (ii) to determine whether and to what extent Awards are granted
     hereunder;

          (iii) to determine the number of Shares or the amount of other
     consideration to be covered by each Award granted hereunder;

          (iv) to approve forms of Award Agreements for use under the Plan;

          (v) to determine the terms and conditions of any Award granted
     hereunder;

          (vi) to amend the terms of any outstanding Award granted under the
     Plan, provided, however, that any amendment that would adversely affect the
     Grantee's rights under an outstanding Award shall not be made without the
     Grantee's written consent and, provided further, that, without stockholder
     approval, outstanding Awards may not be (A) amended to reduce the exercise
     price of the Award or (B) surrendered or cancelled in exchange for Awards
     with a lower exercise price;

          (vii) to construe and interpret the terms of the Plan and Awards
     granted pursuant to the Plan, including without limitation, any notice of
     Award or Award Agreement, granted pursuant to the Plan;

          (viii) to establish additional terms, conditions, rules or procedures
     to accommodate the rules or laws of applicable foreign jurisdictions and to
     afford Grantees favorable treatment under such laws; provided, however,
     that no Award shall be granted under any such additional terms, conditions,
     rules or procedures with terms or conditions which are inconsistent with
     the provisions of the Plan; and

          (ix) to take such other action, not inconsistent with the terms of the
     Plan, as the Administrator deems appropriate.

     5. Eligibility.  Awards other than Incentive Stock Options may be granted
to Employees, Directors and Consultants. Incentive Stock Options may be granted
only to Employees of the Company, a Parent or a Subsidiary. An Employee,
Director or Consultant who has been granted an Award may, if otherwise eligible,

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be granted additional Awards. Awards may be granted to such Employees, Directors
or Consultants who are residing in foreign jurisdictions as the Administrator
may determine from time to time.

     6. Terms and Conditions of Awards.

     (a) Type of Awards.  The Administrator is authorized under the Plan to
award any type of arrangement to an Employee, Director or Consultant that is not
inconsistent with the provisions of the Plan and that by its terms involves or
might involve the issuance of (i) Shares or (ii) an Option with a fixed or
variable price related to the Fair Market Value of the Shares and with an
exercise or conversion privilege related to the passage of time, the occurrence
of one or more events, or the satisfaction of performance criteria or other
conditions. Such awards include, without limitation, Options and sales or
bonuses of Restricted Stock, and an Award may consist of one such security or
benefit, or two (2) or more of them in any combination or alternative.

     (b) Designation of Award.  Each Award shall be designated in the Award
Agreement. In the case of an Option, the Option shall be designated as either an
Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding
such designation, to the extent that the aggregate Fair Market Value of Shares
subject to Options designated as Incentive Stock Options which become
exercisable for the first time by a Grantee during any calendar year (under all
plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess
Options, to the extent of the Shares covered thereby in excess of the foregoing
limitation, shall be treated as Non-Qualified Stock Options. For this purpose,
Incentive Stock Options shall be taken into account in the order in which they
were granted, and the Fair Market Value of the Shares shall be determined as of
the date the Option with respect to such Shares is granted.

     (c) Conditions of Award.  Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions, form of payment
(cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance
criteria established by the Administrator may be based on any one of, or
combination of, increase in share price, earnings per share, total stockholder
return, return on equity, return on assets, return on investment, net operating
income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator.
Partial achievement of the specified criteria may result in a payment or vesting
corresponding to the degree of achievement as specified in the Award Agreement.

     (d) Acquisitions and Other Transactions.  The Administrator may issue
Awards under the Plan in settlement, assumption or substitution for, outstanding
awards or obligations to grant future awards in connection with the Company or a
Related Entity acquiring another entity, an interest in another entity or an
additional interest in a Related Entity whether by merger, stock purchase, asset
purchase or other form of transaction.

     (e) Deferral of Award Payment.  The Administrator may establish one or more
programs under the Plan to permit selected Grantees the opportunity to elect to
defer receipt of consideration upon exercise of an Award, satisfaction of
performance criteria, or other event that absent the election would entitle the
Grantee to payment or receipt of Shares or other consideration under an Award.
The Administrator may establish the election procedures, the timing of such
elections, the mechanisms for payments of, and accrual of interest or other
earnings, if any, on amounts, Shares or other consideration so deferred, and
such other terms, conditions, rules and procedures that the Administrator deems
advisable for the administration of any such deferral program.

     (f) Separate Programs.  The Administrator may establish one or more
separate programs under the Plan for the purpose of issuing particular forms of
Awards to one or more classes of Grantees on such terms and conditions as
determined by the Administrator from time to time.

     (g) Individual Option Limit.  The maximum number of Shares with respect to
which Options may be granted to any Grantee in any fiscal year of the Company
shall be 400,000 Shares. In connection with a Grantee's commencement of
Continuous Service, a Grantee may be granted Options for up to an additional
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300,000 Shares which shall not count against the limit set forth in the previous
sentence. The foregoing limitations shall be adjusted proportionately in
connection with any change in the Company's capitalization pursuant to Section
10, below. To the extent required by Section 162(m) of the Code or the
regulations thereunder, in applying the foregoing limitations with respect to a
Grantee, if any Option is canceled, the canceled Option shall continue to count
against the maximum number of Shares with respect to which Options may be
granted to the Grantee. For this purpose, the repricing of an Option shall be
treated as the cancellation of the existing Option and the grant of a new
Option.

     (h) Term of Award.  The term of each Award shall be the term stated in the
Award Agreement, provided, however, that the term of all Awards shall be no more
than ten (10) years from the date of grant thereof. However, in the case of an
Incentive Stock Option granted to a Grantee who, at the time the Option is
granted, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the term of
the Incentive Stock Option shall be five (5) years from the date of grant
thereof or such shorter term as may be provided in the Award Agreement.

     (i) Transferability of Awards.  Incentive Stock Options may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised,
during the lifetime of the Grantee, only by the Grantee; provided, however, that
the Grantee may designate a beneficiary of the Grantee's Incentive Stock Option
in the event of the Grantee's death on a beneficiary designation form provided
by the Administrator. Other Awards may be transferred by gift or through a
domestic relations order to members of the Grantee's Immediate Family to the
extent provided in the Award Agreement or in the manner and to the extent
determined by the Administrator.

     (j) Time of Granting Awards.  The date of grant of an Award shall for all
purposes be the date on which the Administrator makes the determination to grant
such Award, or such other date as is determined by the Administrator. Notice of
the grant determination shall be given to each Employee, Director or Consultant
to whom an Award is so granted within a reasonable time after the date of such
grant.

     7. Award Exercise or Purchase Price, Consideration and Taxes.

     (a) Exercise or Purchase Price.  The exercise or purchase price, if any,
for an Award shall be as follows:

          (i) In the case of an Incentive Stock Option:

             (A) granted to an Employee who, at the time of the grant of such
        Incentive Stock Option owns stock representing more than ten percent
        (10%) of the voting power of all classes of stock of the Company or any
        Parent or Subsidiary, the per Share exercise price shall be not less
        than one hundred ten percent (110%) of the Fair Market Value per Share
        on the date of grant; or

             (B) granted to any Employee other than an Employee described in the
        preceding paragraph, the per Share exercise price shall be not less than
        one hundred percent (100%) of the Fair Market Value per Share on the
        date of grant.

          (ii) In the case of a Non-Qualified Stock Option, the per Share
     exercise price shall be not less than one hundred percent (100%) of the
     Fair Market Value per Share on the date of grant.

          (iii) In the case of Awards intended to qualify as Performance-Based
     Compensation, the exercise or purchase price, if any, shall be not less
     than one hundred percent (100%) of the Fair Market Value per Share on the
     date of grant.

          (iv) In the case of other Awards, such price as is determined by the
     Administrator.

          (v) Notwithstanding the foregoing provisions of this Section 7(a), in
     the case of an Award issued pursuant to Section 6(d), above, the exercise
     or purchase price for the Award shall be determined in accordance with the
     principles of Section 424(a) of the Code.

     (b) Consideration.  Subject to Applicable Laws, the consideration to be
paid for the Shares to be issued upon exercise or purchase of an Award including
the method of payment, shall be determined by the

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Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant). In addition to any other types of
consideration the Administrator may determine, the Administrator is authorized
to accept as consideration for Shares issued under the Plan the following,
provided that the portion of the consideration equal to the par value of the
Shares must be paid in cash or other legal consideration permitted by the
Delaware General Corporation Law:

          (i) cash;

          (ii) check;

          (iii) delivery of Grantee's promissory note with such recourse,
     interest, security, and redemption provisions as the Administrator
     determines as appropriate;

          (iv) surrender of Shares or delivery of a properly executed form of
     attestation of ownership of Shares as the Administrator may require
     (including withholding of Shares otherwise deliverable upon exercise of the
     Award) which have a Fair Market Value on the date of surrender or
     attestation equal to the aggregate exercise price of the Shares as to which
     said Award shall be exercised (but only to the extent that such exercise of
     the Award would not result in an accounting compensation charge with
     respect to the Shares used to pay the exercise price unless otherwise
     determined by the Administrator);

          (v) with respect to Options, payment through a broker-dealer sale and
     remittance procedure pursuant to which the Grantee (A) shall provide
     written instructions to a Company designated brokerage firm to effect the
     immediate sale of some or all of the purchased Shares and remit to the
     Company, out of the sale proceeds available on the settlement date,
     sufficient funds to cover the aggregate exercise price payable for the
     purchased Shares and (B) shall provide written directives to the Company to
     deliver the certificates for the purchased Shares directly to such
     brokerage firm in order to complete the sale transaction; or

          (vi) any combination of the foregoing methods of payment.

     (c) Taxes.  No Shares shall be delivered under the Plan to any Grantee or
other person until such Grantee or other person has made arrangements acceptable
to the Administrator for the satisfaction of any foreign, federal, state, or
local income and employment tax withholding obligations, including, without
limitation, obligations incident to the receipt of Shares or the disqualifying
disposition of Shares received on exercise of an Incentive Stock Option. Upon
exercise of an Award, the Company shall withhold or collect from Grantee an
amount sufficient to satisfy such tax obligations.

     8. Exercise of Award.

     (a) Procedure for Exercise; Rights as a Stockholder.

          (i) Any Award granted hereunder shall be exercisable at such times and
     under such conditions as determined by the Administrator under the terms of
     the Plan and specified in the Award Agreement.

          (ii) An Award shall be deemed to be exercised when written notice of
     such exercise has been given to the Company in accordance with the terms of
     the Award by the person entitled to exercise the Award and full payment for
     the Shares with respect to which the Award is exercised, including, to the
     extent selected, use of the broker-dealer sale and remittance procedure to
     pay the purchase price as provided in Section 7(b)(v). Until the issuance
     (as evidenced by the appropriate entry on the books of the Company or of a
     duly authorized transfer agent of the Company) of the stock certificate
     evidencing such Shares, no right to vote or receive dividends or any other
     rights as a stockholder shall exist with respect to Shares subject to an
     Award, notwithstanding the exercise of an Option or other Award. The
     Company shall issue (or cause to be issued) such stock certificate promptly
     upon exercise of the Award. No adjustment will be made for a dividend or
     other right for which the record date is prior to the date the stock
     certificate is issued, except as provided in the Award Agreement or Section
     10, below.

     (b) Exercise of Award Following Termination of Continuous Service.

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          (i) An Award may not be exercised after the termination date of such
     Award set forth in the Award Agreement and may be exercised following the
     termination of a Grantee's Continuous Service only to the extent provided
     in the Award Agreement.

          (ii) Where the Award Agreement permits a Grantee to exercise an Award
     following the termination of the Grantee's Continuous Service for a
     specified period, the Award shall terminate to the extent not exercised on
     the last day of the specified period or the last day of the original term
     of the Award, whichever occurs first.

          (iii) Any Award designated as an Incentive Stock Option to the extent
     not exercised within the time permitted by law for the exercise of
     Incentive Stock Options following the termination of a Grantee's Continuous
     Service shall convert automatically to a Non-Qualified Stock Option and
     thereafter shall be exercisable as such to the extent exercisable by its
     terms for the period specified in the Award Agreement.

     9. Conditions Upon Issuance of Shares.

     (a) Shares shall not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such Shares pursuant
thereto shall comply with all Applicable Laws, and shall be further subject to
the approval of counsel for the Company with respect to such compliance.

     (b) As a condition to the exercise of an Award, the Company may require the
person exercising such Award to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by any Applicable
Laws.

     10. Adjustments Upon Changes in Capitalization.  Subject to any required
action by the stockholders of the Company, the number of Shares covered by each
outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which
have been returned to the Plan, the exercise or purchase price of each such
outstanding Award, the maximum number of Shares with respect to which Options
may be granted to any Employee in any fiscal year of the Company, as well as any
other terms that the Administrator determines require adjustment shall be
proportionately adjusted for (i) any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Shares, or similar event affecting the
Shares, (ii) any other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company, or (iii) as the
Administrator may determine in its discretion, any other transaction with
respect to Common Stock to which Section 424(a) of the Code applies or any
similar transaction; provided, however that conversion of any convertible
securities of the Company shall not be deemed to have been "effected without
receipt of consideration." Such adjustment shall be made by the Administrator
and its determination shall be final, binding and conclusive. Except as the
Administrator determines, no issuance by the Company of shares of stock of any
class, or securities convertible into shares of stock of any class, shall
affect, and no adjustment by reason hereof shall be made with respect to, the
number or price of Shares subject to an Award.

     11. Corporate Transactions/Changes in Control/Related Entity
Dispositions.  Except as may be provided in an Award Agreement:

          (a) The Administrator shall have the authority, exercisable either in
     advance of any actual or anticipated Corporate Transaction, Change in
     Control or Related Entity Disposition or at the time of an actual Corporate
     Transaction, Change in Control or Related Entity Disposition and
     exercisable at the time of the grant of an Award under the Plan or any time
     while an Award remains outstanding, to provide for the full automatic
     vesting and exercisability of one or more outstanding unvested Awards under
     the Plan and the release from restrictions on transfer and repurchase or
     forfeiture rights of such Awards in connection with a Corporate
     Transaction, Change in Control or Related Entity Disposition, on such terms
     and conditions as the Administrator may specify. The Administrator also
     shall have the authority to condition any such Award vesting and
     exercisability or release from such limitations upon the subsequent
     termination of the Continuous Service of the Grantee within a specified
     period following

<PAGE>
     the effective date of the Corporate Transaction. Change in Control or
     Related Entity Disposition. The Administrator may provide that any Awards
     so vested or released from such limitations in connection with a Change in
     Control or Related Entity Disposition, shall remain fully exercisable until
     the expiration or sooner termination of the Award. Effective upon the
     consummation of a Corporate Transaction, all outstanding Awards under the
     Plan shall terminate unless assumed by the successor company or its parent,
     including affirmation of the Award by the Company in the event of a
     Corporate Transaction as defined in Section 2(p)(v), above.

          (b) The portion of any Incentive Stock Option accelerated under this
     Section 11 in connection with a Corporate Transaction, Change in Control or
     Related Entity Disposition shall remain exercisable as an Incentive Stock
     Option under the Code only to the extent the $100,000 dollar limitation of
     Section 422(d) of the Code is not exceeded. To the extent such dollar
     limitation is exceeded, the accelerated excess portion of such Option shall
     be exercisable as a Non-Qualified Stock Option.

     12. Effective Date and Term of Plan.  The plan shall become effective upon
the earlier to occur of its adoption by the Board or its approval by the
stockholders of the Company. It shall continue in effect for a term of ten (10)
years unless sooner terminated. Subject to Section 17, below, and Applicable
Laws, Awards may be granted under the Plan upon its becoming effective.

     13. Amendment, Suspension or Termination of the Plan.

     (a) The Board may at any time amend, suspend or terminate the Plan
provided, however, that no such amendment shall be made without the approval of
the Company's stockholders to the extent such approval is required by
Applicable Laws, or if such amendment would amend the provisions of Section
4(b)(vi).

     (b) No Award may be granted during any suspension of the Plan or after
termination of the Plan.

     (c) No suspension or termination of the Plan (including termination of the
Plan under Section 12, above) shall adversely afffect any rights under Awards
already granted to a Grantee.

     14. Reservation of Shares

     (a) The Company, during the term of the Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

     (b) The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company's counsel to
be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

     15. No Effect on Terms of Employment/Consulting Relationship.  The Plan
shall not confer upon any Grantee any right with respect to the Grantee's
Continuous Service, nor shall it interfere in any way with his or her right or
the Company's right to terminate the Grantee's Continuous Service at any time,
with or without cause.

     16. No Effect on Retirement and Other Benefit Plans.  Except as
specifically provided in a retirement or other benefit plan of the Company or a
Related Entity, Awards shall not be deemed compensation for purposes of
computing benefits or contributions under any retirement plan of the Company or
a Related Entity, and shall not affect any benefits under any other benefit
plan of any kind or any benefit plan subsequently instituted under which the
availability or amount of benefits is related to level of compensation. The
Plan is not a "Retirement Plan" or "Welfare Plan" under the Employee Retirement
Income Security Act of 1974, as amended.

     17. Plan Approval.  The Plan was adopted by the Board in March of 2000 and
adopted by the stockholders of the Company in May 2000. In 2001, the Board
adopted and approved an amendment of the Plan to increase the number of share
reserved for issuance under the Plan by 1,000,000 Shares, which amendment of
the Plan was approved by the Company's stockholders in May 2001. In 2003, the
Board adopted and approved an amendment and restatement of the Plan to increase
the number of share reserved for issuance under the Plan by 1,500,000 Shares
and to amend various terms of the Plan, including (a) to limit
<PAGE>
the maximum number of Shares which may be issued under the Plan as Restricted
Stock to 250,000 Shares, (b) to increase the limit on the number of Shares with
respect to which Option which may be awarded to a Grantee in any fiscal year
from 250,000 to 400,000 Shares and increase the limit on the additional number
of Shares with respect to which a Grantee may be granted Options in connection
with his or her initial commencement of services with the Company from 100,000
to 300,000 Shares, (c) to require that Non-Qualified Stock Options be granted at
an exercise price of not less than 100% of the Fair Market Value of the Shares
on the date of the option is granted, (d) to eliminate the ability of the
Administrator to permit Grantees to exercise any part or all of an Award prior
to full vesting of the Award, and (e) to require stockholder approval to (i)
reduce the exercise price of any outstanding Award or (ii) undertake an Award
exchange program where outstanding Awards are exchanged for Awards with a lesser
exercise price, which amendment and restatement of the Plan was approved by the
Company's stockholders in May 2003. In 2004, the Board adopted and approved an
amendment and restatement of the Plan to increase the number of share reserved
for issuance under the Plan by 500,000 Shares, which amendment and restatement
of the Plan is conditioned upon and not to take effect until approved by the
stockholders of the Company.<PAGE>

                                                                     EXHIBIT 4.2

                            ATRIX LABORATORIES, INC.
                         NONQUALIFIED STOCK OPTION PLAN

A.       Purpose and Scope

         The purposes of this Plan are to encourage stock ownership by
consultants, other independent contractors and other designated persons who are
not employees (collectively, "Consultants") of Atrix Laboratories, Inc. (herein
called the "Company") and to provide an incentive for such persons to expand and
improve the profits and prosperity of the Company through the grant of Options
to purchase shares of the Stock as hereinafter defined.

B.       Definitions

         Unless otherwise required by the context:

         1. "Board" shall mean the Board of Directors of the Company.

         2. "Committee" shall mean the Compensation Committee, which is
appointed by the Board, and which shall be composed of members of the Board.

         3. "Company" shall mean Atrix Laboratories, Inc., a Delaware
corporation.

         4. "Code" shall mean the Internal Revenue Code of 1986, as amended.

         5. "Option" shall mean a right to purchase Stock, granted pursuant to
the Plan.

         6. "Option Price" shall mean the purchase price for Stock under an
Option, as determined in Section F below.

         7. "Participant" shall mean a Consultant to whom an Option is granted
under the Plan.

         8. "Plan" shall mean this Atrix Laboratories, Inc. Nonqualified Stock
Option Plan.

         9. "Stock" shall mean the common stock of the Company, $.001 par value.

C.       Stock Subject to Options

         Subject to the provisions of Section L of the Plan, the maximum number
of shares of Stock that may be optioned or sold under the Plan is 50,000 shares.
Such shares may be treasury, or authorized, but unissued, shares of Stock of the
Company.

<PAGE>

D.       Administration

         The Plan shall be administered by the Committee. The Committee shall be
responsible to the Board for the operation of the Plan, and shall make
recommendations to the Board with respect to participation in the Plan by
Consultants, and with respect to the extent of that participation. The
interpretation and construction of any provision of the Plan by the Committee
shall be final, unless otherwise determined by the Board. No member of the Board
or the Committee shall be liable for any action or determination concerning the
Plan made by him in good faith.

E.       Eligibility

         The Board, upon recommendation of the Committee, may grant Options to
any Consultant which the Committee in its discretion shall designate. Options
granted at different times need not contain similar provisions.

F.       Option Price

         The purchase price for Stock under each Option shall be designated by
the Committee in its discretion.

G.       Terms and Conditions of Options

         Options granted pursuant to the Plan shall be authorized by the Board
and shall be evidenced by agreements in such form as the Board, upon
recommendation of the Committee, shall from time to time approve. Such
agreements shall comply with and be subject to the following terms and
conditions:

         1. Consulting Agreement. The Board may, in its discretion, include in
any Option granted under the Plan a condition that the Participant shall agree
to render services to the Company for a period of time (specified in the
agreement) following the date the Option is granted. No such agreement shall
impose upon the Company, however, any additional obligation to retain the
Participant for any period of time.

         2. Time and Method of Payment. The Option Price shall be paid in full
in cash at the time an Option is exercised under the Plan. Otherwise, an
exercise of any Option granted under the Plan shall be invalid and of no effect.
Promptly after the exercise of an Option and the payment of the full Option
Price, the Participant shall be entitled to the issuance of a stock certificate
evidencing his ownership of such Stock. A Participant shall have none of the
rights of a shareholder until shares are issued to him, and no adjustment will
be made for dividends or other rights for which the record date is prior to the
date such stock certificate is issued.

         3. Number of Shares. Each Option shall state the total number of shares
of Stock to which it pertains.

                                       2
<PAGE>

         4. Option Period and Limitations on Exercise of Options. The Committee
shall, in its discretion, designate the periods of time during which an Option
may be exercised and such conditions to exercise as the Committee may deem
appropriate. No Option may be exercised after the expiration of ten years from
the date it is granted. No Option may be exercised for a fractional share of
Stock.

H.       Termination of Consulting Agreements

         Except as provided in Section I below and except to the extent the
Committee shall otherwise designate, in the event of any termination of the
consulting or other agreement between the Participant and the Company all
Options which had not been exercised as of the date of such termination shall
immediately expire.

I.       Rights in Event of Death

         If a Participant dies while retained by the Company and without having
fully exercised his Options, the executors or administrators, or legatees or
heirs, of his estate shall have the right to exercise such Options to the extent
that such deceased Participant was entitled to exercise the Options on the date
of his death; provided, however, that in no event shall the Options be
exercisable more than two years from the date of the Participant's death.

J.       No Obligations to Exercise Option

         The granting of an Option shall impose no obligation upon the
Participant to exercise such Option.

K.       Nonassignability

         Options shall not be transferable other than by will or by the laws of
descent and distribution, and during a Participant's lifetime shall be
exercisable only by such Participant.

L.       Effect of Change in Stock Subject to the Plan

         The aggregate number of shares of Stock available for Options under the
Plan, the shares subject to any Option and the price per share shall all be
proportionately adjusted for any increase or decrease in the number of issued
shares of Stock subsequent to the effective date of the Plan resulting from (1)
a subdivision or consolidation of shares or any other capital adjustment, (2)
the payment of a stock dividend, or (3) other increase or decrease in such
shares effected without receipt of consideration by the Company. If the Company
shall be the surviving corporation in any merger or consolidation, any Option
shall pertain, apply, and relate to the securities to which a holder of the
number of shares of Stock subject to the Option would have been entitled after
the merger or consolidation. Upon dissolution or liquidation of the Company, or
upon a merger or consolidation in which the Company is not the surviving
corporation, all Options outstanding under the Plan shall terminate; provided,
however, that each Participant (and each other person entitled under Section I

                                       3
<PAGE>

to exercise an Option) shall have the right, immediately prior to such
dissolution or liquidation, or such merger or consolidation, to exercise such
Participant's Options in whole or in part, but only to the extent that such
Options are otherwise exercisable under the terms of the Plan.

M.       Amendment and Termination

         The Board, by resolution, may terminate, amend, or revise the Plan with
respect to any shares as to which Options have not been granted. Neither the
Board nor the Committee may, without the consent of the holder of an Option,
alter or impair any Option previously granted under the Plan, except as
authorized herein. Unless sooner terminated, the Plan shall remain in effect for
a period of ten years from the date of the Plan's adoption by the Board.
Termination of the Plan shall not affect any Option previously granted.

N.       Agreement and Representation of Consultants

         As a condition to the exercise of any portion of an Option, the Company
may require the person exercising such Option to represent and warrant at the
time of such exercise that any shares of Stock acquired at exercise are being
acquired only for investment and without any present intention to sell or
distribute such shares, if, in the opinion of counsel for the Company, such a
representation is required under the Securities Act of 1933 or any other
applicable law, regulation, or rule of any governmental agency.

O.       Reservation of Shares of Stock

         The Company, during the term of this Plan, will at all times reserve
and keep available, and will seek or obtain from any regulatory body having
jurisdiction any requisite authority necessary to issue and to sell, the number
of shares of Stock that shall be sufficient to satisfy the requirements of this
Plan. The inability of the Company to obtain from any regulatory body having
jurisdiction the authority deemed necessary by counsel for the Company for the
lawful issuance and sale of its Stock hereunder shall relieve the Company of any
liability in respect of the failure to issue or sell Stock as to which the
requisite authority has not been obtained.

P.       Effective Date of Plan

         The Plan shall be effective from the date that the Plan is approved by
the Board.

                                       4
<PAGE>

                            ATRIX LABORATORIES, INC.
                                 FIRST AMENDMENT
                                       TO
                         NONQUALIFIED STOCK OPTION PLAN

         This First Amendment (the "First Amendment") to the Nonqualified Stock
Option Plan (the "Plan") of Atrix Laboratories, Inc. (the "Company") amends
Section C of the Plan. This First Amendment has been duly adopted by the Board
of Directors of the Company by unanimous written consent dated October 16, 1995.

         Section C of the Plan is hereby amended in its entirety to read as
follows:

C.       Stock Subject to Options

         Subject to the provisions of Section L of the Plan, the maximum number
of shares of Stock that may be optioned or sold under the Plan is 100,000
shares. Such shares may be treasury, or authorized, but unissued, shares of
Stock of the Company.

         All other terms and provisions set forth in the Plan shall remain in
full force and effect.

                  IN WITNESS WHEREOF, the undersigned have acknowledged this
First Amendment as of the day of October, 1995.

                                 ATRIX LABORATORIES, INC.

ATTEST:                          By:    /s/ John E. Urheim
                                        ----------------------------------------
                                        John E. Urheim, Vice Chairman and Chief
                                        Executive Officer

By:  /s/ Kimberly A. Marks
     ----------------------------------
     Kimberly A. Marks, Assistant
     Secretary and Corporate Controller

<PAGE>

                              SECOND AMENDMENT TO
                          THE ATRIX LABORATORIES, INC.
                         NONQUALIFIED STOCK OPTION PLAN

         This Second Amendment ("Amendment") to Atrix Laboratories, Inc.'s (the
"Company") Nonqualified Stock Option Plan (the "Plan") is dated as of this 27th
day of April, 1998.

                                    RECITALS

         WHEREAS, the Plan was duly adopted by the Board of Directors of the
Company and was subsequently amended by the Board of Directors on October 16,
1995.

         WHEREAS, the Company desires to further amend the Plan on the terms and
conditions set forth herein.

                                     * * *

1. Section B of the Plan is hereby amended in its entirety to read as follows:

         B.       Definitions

         Unless otherwise required by the context:

         1. "Administrator" means the Board or any of its Committee(s)
administering the Plan, in accordance with Section D of the Plan.

         2. "Applicable Laws" means the legal requirements relating to the
administration of stock option and equity incentive plans under applicable state
of Delaware corporate and securities laws and under the Code.

         3. "Board" shall mean the Board of Directors of the Company.

         4. "Committee" means a Committee appointed by the Board in accordance
with Section D of the Plan.

         5. "Common Stock" means the Common Stock of the Company which is traded
on an approved securities market pursuant to the Exchange Act.

         6. "Company" shall mean Atrix Laboratories, Inc., a Delaware
corporation.

         7. "Code" shall mean the Internal Revenue Code of 1986, as amended.

         8. "Director" means a member of the Board.

                                       1
<PAGE>

         9. "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         10. "Fair Market Value" means, as of a specified date, the value of
Common Stock determined by the Administrator as follows:

                  (i) If the Common Stock is listed on any established stock
                  exchange or quoted on a national market system, including
                  without limitation the National Market System of the National
                  Association of Securities Dealers, Inc. Automated Quotation
                  ("NASDAQ") System, the Fair Market Value of a Share of Common
                  Stock shall be the closing sales price for such stock (or the
                  closing bid, if no sales were reported) as quoted on such
                  exchange (or, if listed on more than one exchange, the
                  exchange with the greatest volume of trading in Common Stock)
                  or system on the last market trading day prior to the day of
                  determination, as reported in the Wall Street Journal or such
                  other source as the Administrator deems reliable; or

                  (ii) If the Common Stock is quoted on the NASDAQ System (but
                  is not included on the National Market System thereof) or is
                  regularly quoted by a recognized securities dealer but selling
                  prices are not reported, the Fair Market Value of a Share of
                  Common Stock shall be the mean between the closing bid and
                  closing asked prices for the Common Stock on the last market
                  trading day prior to the day of determination, as reported in
                  the Wall Street Journal or such other source as the
                  Administrator deems reliable.

         11. "Nonstatutory Stock Option" means an Option that is not an
Incentive Stock Option.

         12. "Notice of Grant" means a written notice evidencing certain terms
and conditions of an individual Option. The Notice of Grant is part of the
Option Agreement.

         13. "Option" shall mean a Stock Option granted pursuant to the Plan.

         14. "Option Agreement" means a written agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant. The Option Agreement is subject to the terms and conditions of the Plan
and the Notice of Grant.

         15. "Option Price" shall mean the purchase price for Stock under an
Option, as determined in Section F of the Plan.

         16. "Optioned Stock" means the Common Stock subject to an Option.

         17. "Participant" shall mean a Consultant to whom an Option is granted
under the Plan.

                                       2
<PAGE>

         18. "Plan" shall mean Atrix Laboratories, Inc. Nonqualified Stock
Option Plan.

         19. "Share" means a share of the Common Stock.

         20. "Stock" shall mean the common stock of the Company, $.001 par
value.

2. Section C of the Plan is hereby amended in its entirety to read as follows:

         C.       Stock Subject to Options

                  1. Subject to the provisions of Section L of the Plan, the
         total number of Shares reserved and available for distribution pursuant
         to awards made under the Plan shall be One Hundred Fifty Thousand
         (150,000) shares. The Shares may be authorized but unissued or
         reacquired stock.

                  2. If an Option should expire or become unexercisable for any
         reason without having been exercised in full, then unpurchased Shares
         which were subject thereto shall, unless the Plan shall have been
         terminated, become available for other options granted under the Plan.

                  3. Notwithstanding any other provision of the Plan, Shares
         issued upon exercise of Options under the Plan and later repurchased by
         the Company shall not become available for future grant or sale under
         the Plan.

3. Section D of the Plan is hereby amended in its entirety to read as follows:

         D.       Administration

                  1. The Plan shall be administered by (a) the Board; (b) a
         Committee designated by the Board, which Committee shall be constituted
         in such a manner as to satisfy the Applicable Laws; or (c) as permitted
         by Rule 16b-3.

                  2. Once a Committee has been appointed pursuant to this
         Section, such Committee shall continue to serve in its designated
         capacity or until otherwise directed by the Board. From time to time,
         the Board may increase the size of any Committee and appoint additional
         members thereof, remove members (with or without cause) and appoint new
         members in substitution therefor, fill vacancies (however caused) or
         remove all member of the Committee and thereafter directly administer
         the Plan, all to the extent permitted by the Applicable Laws and, in
         the case of a Committee appointed under this Section, to the extent
         permitted by Rule 16b-3 as it applies to a plan intended to qualify
         thereunder as a discretionary grant or award plan.

                                       3
<PAGE>

                  3. Subject to the provisions of the Plan and, in the case of a
         Committee, the specific duties delegated by the Board to such
         Committee, the Administrator shall have the authority, in its
         discretion:

                           (a) to grant Nonqualified Stock Options;

                           (b) to determine the Fair Market Value of the Common
                  Stock, in accordance with Section B(10) of the Plan;

                           (c) to determine the number of shares of Common Stock
                  to be covered by each such award granted hereunder;

                           (d) to approve forms of agreements for use under the
                  Plan;

                           (e) to determine the terms and conditions, not
                  inconsistent with the terms of the Plan, of any award granted
                  hereunder and of the Options so awarded (including, but not
                  limited to, the exercise or purchase price and any restriction
                  or limitation regarding any Option and/or the shares of Common
                  Stock relating thereto, based in each case on such factors as
                  the Administrator shall determine, in its sole discretion);

                           (f) to authorize any person to execute on behalf of
                  the Company any instrument required to effect the grant of an
                  Option previously granted by the Administrator;

                           (g) to interpret the Plan and to prescribe, amend,
                  and rescind rules and regulations relating to the Plan; and

                           (h) to make all other determinations deemed necessary
                  or advisable for administering the Plan.

                  4. All decisions, determinations, and interpretations of the
         Administrator shall be final and binding.

                  5. If the Chief Executive Officer or his or her designees
         reasonably believes that an Optionee has committed an act of
         misconduct, the Chief Executive Officer may suspend the Optionee's
         right to exercise any Option or to receive any benefits relating
         thereto pending a determination by the Administrator. If the
         Administrator determines that an Optionee has committed an act of
         embezzlement, fraud, dishonesty, nonpayment of an obligation owed to
         the Company, breach of fiduciary duty, or deliberate disregard of the
         Company's rules resulting in loss, damage or injury to the Company, or
         if an Optionee makes an unauthorized disclosure of any Company trade
         secret or confidential information, engages in any conduct constituting
         unfair competition, induces any Company customer to breach a contract
         with the Company, or induces any principal for whom the Company acts as
         agent to terminate such agency relationship, neither the Optionee nor
         his or her estate shall be entitled to exercise any Option or to

                                       4
<PAGE>

         receive any benefits relating to Options whatsoever. In making such
         determination, the Administrator shall act fairly and shall give the
         Optionee an opportunity to appear and present evidence on Optionee's
         behalf at a hearing before the Administrator.

3. Section G of the Plan is hereby amended in its entirety to read as follows:

         G.       Terms and Conditions

                  The Notice of Grant shall specify the per Share exercise price
         for the Shares issuable pursuant to an Option. The Notice of Grant
         shall also specify the number of Shares which are subject to the
         Option.

4. Section M of the Plan is hereby amended in its entirety to read as follows:

         M.       Amendment and Termination

                  1. The Board, by resolution, may terminate, amend, or revise
         the Plan with respect to any shares as to which Options have not been
         granted. Neither the board nor the Committee may, without the consent
         of the holder of an Option, alter or impair any Option previously
         granted under the Pan, except as authorized herein. Unless sooner
         terminated, the Plan shall remain in effect for a period of ten years
         from the date of the Plan's adoption by the Board. Termination of the
         Plan shall not affect any Option previously granted.

                  2. Any such amendment, alteration, suspension, or termination
         of the Plan shall not adversely affect Options already granted and such
         Options shall remain in full force and effect as if this Plan had not
         been amended, altered, suspended, or terminated, unless mutually agreed
         otherwise between the Optionee and the Administrator, which agreement
         must be in writing and signed by the Optionee and the Company.

5. Section N of the Plan is hereby amended in its entirety to read as follows:

         N.       Legal Compliance

                  1. Shares shall not be issued pursuant to the award, vesting,
         or exercise of an Option unless the award, vesting, or exercise of such
         Option, as the case may be, and the issuance and delivery of such
         Shares pursuant thereto shall comply with all relevant provisions of
         law, including, without limitation, the Securities Act of 1933, as
         amended, the Exchange Act, the rules and regulations promulgated
         thereunder, applicable state securities laws, and the requirements of
         any stock exchange or quotation system upon which the Shares may then
         be listed or quoted, and shall be further subject to the approval of
         counsel for the Company with respect to such compliance.

                                       5
<PAGE>

                  2. As a condition to the receipt of Shares upon the award,
         vesting, or exercise of an Option, the Company may require the person
         receiving such Shares to represent and warrant at the time of any such
         award, vesting, or exercise that the Shares are being acquired only for
         investment and without any present intention to sell or distribute such
         Shares if, in the opinion of counsel for the Company, such a
         representation is required by any of the aforementioned relevant
         provisions of law.

                  3. The inability of the Company to obtain authority from any
         regulatory body having jurisdiction, which authority is deemed by the
         Company's counsel to be necessary to the lawful issuance and sale of
         any Shares hereunder, shall relieve the Company of any liability in
         respect of the failure to issue or sell such Shares as to which such
         requisite authority shall not have been obtained.

                  4. If the Optioned Stock covered by an Option exceeds, as of
         the date of grant, the number of Shares which may be issued under the
         Plan without additional Board approval, such Option shall be void with
         respect to such excess Optioned Stock, unless Board approval of an
         amendment sufficiently increasing the number of Shares subject to the
         Plan is timely obtained in accordance with Section M of the Plan.

6. The following is added as a new Section O to the Plan:

         O.       Agreements

                  Options shall be evidenced by written agreements in such form
         as the Administrator shall approve from time to time.

7. All capitalized terms used and not otherwise defined herein shall have the
   same meanings as set forth in the Agreement.

8. Except as expressly modified by the terms hereof, the terms and provisions of
   the Agreement shall remain in full force and effect as originally written.

                                       6
<PAGE>

         This Second Amendment has been duly adopted by the Board of Directors
at a meeting held on April 27,1998.

                                         ATRIX LABORATORIES, INC.

                                         /s/ John E. Urheim
                                        ----------------------------------------
                                        John E. Urheim, Vice Chairman and Chief
                                        Executive Officer

ATTEST:

   /s/ Brian G. Richmond
----------------------------------------
Brian G. Richmond, Assistant Secretary
and Vice President-Finance

                                       7

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