Document:

2004 Omnibus Incentive Compensation Plan

                         Lev Pharmaceuticals, Inc.

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Contents

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Article 1. Establishment, Purpose, and Duration                               1

Article 2. Definitions                                                        1

Article 3. Administration                                                     6

Article 4. Shares Subject to the Plan                                         7

Article 5. Eligibility and Participation                                      8

Article 6. Stock Options                                                      8

Article 7. Stock Appreciation Rights                                         11

Article 8. Restricted Stock and Restricted Stock Units                       12

Article 9. Performance Units/Performance Shares                              14

Article 10. Cash-Based Awards and Other Stock-Based Awards                   15

Article 11. Performance Measures                                             16

Article 12. Nonemployee Director Awards                                      17

Article 13. Dividend Equivalents                                             17

Article 14. Beneficiary Designation                                          18

Article 15. Deferrals                                                        18

Article 16. Rights of Participants                                           18

Article 17. Change of Control                                                19

Article 18. Amendment, Modification, Suspension, and Termination             20

Article 19. Withholding                                                      21

Article 20. Successors                                                       21

Article 21. General Provisions                                               22

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Lev Pharmaceuticals, Inc.
2004 Omnibus Incentive Compensation Plan

Article 1. Establishment, Purpose, and Duration

     1.1 Establishment. Lev Pharmaceuticals, Inc., a Delaware corporation
(hereinafter referred to as the "Company"), establishes an incentive
compensation plan to be known as the 2004 Omnibus Incentive Compensation Plan
(hereinafter referred to as the "Plan"), as set forth in this document.

     The Plan permits the grant of Cash-Based Awards, Nonqualified Stock
Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Performance Shares, Performance Units, Covered Employee
Annual Incentive Awards, and Other Stock-Based Awards.

     The Plan shall become effective upon shareholder approval (the "Effective
Date") and shall remain in effect as provided in Section 1.3 hereof.

     1.2 Purpose of the Plan. The purpose of the Plan is to promote the
interests of the Company and its shareholders by strengthening the Company's
ability to attract, motivate, and retain Employees and Directors of the Company
upon whose judgment, initiative, and efforts the financial success and growth of
the business of the Company largely depend, and to provide an additional
incentive for such individuals through stock ownership and other rights that
promote and recognize the financial success and growth of the Company and create
value for shareholders.

     1.3 Duration of the Plan. Unless sooner terminated as provided herein, the
Plan shall terminate ten years from the Effective Date. After the Plan is
terminated, no Awards may be granted but Awards previously granted shall remain
outstanding in accordance with their applicable terms and conditions and the
Plan's terms and conditions. Notwithstanding the foregoing, no Incentive Stock
Options may be granted more than ten years after the earlier of (a) adoption of
the Plan by the Board, and (b) the Effective Date.

Article 2. Definitions

     Whenever used in the Plan, the following terms shall have the meanings set
forth below, and when the meaning is intended, the initial letter of the word
shall be capitalized.

     2.1  "Affiliate" shall have the meaning ascribed to such term in Rule 12b-2
          of the General Rules and Regulations of the Exchange Act.

     2.2  "Annual Award Limit" or "Annual Award Limits" have the meaning set
          forth in Section 3.3.

     2.3  "Award" means, individually or collectively, a grant under this Plan
          of Cash-Based Awards, Nonqualified Stock Options, Incentive Stock
          Options, SARs, Restricted Stock, Restricted Stock Units, Performance
          Shares, Performance Units, Covered Employee Annual Incentive Awards,
          or Other Stock-Based Awards, in each case subject to the terms of this
          Plan.

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     2.4  "Award Agreement" means either (i) a written agreement entered into by
          the Company and a Participant setting forth the terms and provisions
          applicable to an Award granted under this Plan, or (ii) a written
          statement issued by the Company to a Participant describing the terms
          and provisions of such Award.

     2.5  "Beneficial Owner" or "Beneficial Ownership" shall have the meaning
          ascribed to such term in Rule 13d-3 of the General Rules and
          Regulations under the Exchange Act.

     2.6  "Board" or "Board of Directors" means the Board of Directors of the
          Company.

     2.7  "Cash-Based Award" means an Award granted to a Participant as
          described in Article 10.

     2.8  "Change of Control" means any of the following events:

          (a)  The acquisition by any Person of Beneficial Ownership of twenty
               percent (20%) or more of the combined voting power of the then
               outstanding voting securities of the Company entitled to vote
               generally in the election of Directors (the "Outstanding Company
               Voting Securities"); provided, however, that for purposes of this
               Section 2.8, the following acquisitions shall not constitute a
               Change of Control: (i) any acquisition by a Person who on the
               Effective Date is the Beneficial Owner of twenty percent (20%) or
               more of the Outstanding Company Voting Securities, (ii) any
               acquisition directly from the Company, including without
               limitation, a public offering of securities, (iii) any
               acquisition by the Company, (iv) any acquisition by any employee
               benefit plan (or related trust) sponsored or maintained by the
               Company or any of its subsidiaries, or (v) any acquisition by any
               corporation pursuant to a transaction which complies with
               subparagraphs (i), (ii), and (iii) of Section 2.8(c);

          (b)  Individuals who constitute the Board as of the Effective Date
               hereof (the "Incumbent Board") cease for any reason to constitute
               at least a majority of the Board, provided that any individual
               becoming a Director subsequent to the Effective Date whose
               election, or nomination for election by the Company's
               shareholders, was approved by a vote of at least a majority of
               the Directors then comprising the Incumbent Board shall be
               considered as though such individual were a member of the
               Incumbent Board, but excluding, for this purpose, any such
               individual whose initial assumption of office is in connection
               with an actual or threatened election contest relating to the
               election or removal of the Directors of the Company or other
               actual or threatened solicitation of proxies of consents by or on
               behalf of a Person other than the Board;

          (c)  Consummation of a reorganization, merger, or consolidation to
               which the Company is a party or a sale or other disposition of
               all or substantially all of the assets of the Company (a
               "Business Combination"), in each case unless, following such

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               Business Combination: (i) all or substantially all of the
               individuals and entities who were the Beneficial Owners of
               Outstanding Company Voting Securities immediately prior to such
               Business Combination beneficially own, directly or indirectly,
               more than fifty percent (50%) of the combined voting power of the
               outstanding voting securities entitled to vote generally in the
               election of Directors of the corporation resulting from the
               Business Combination (including, without limitation, a
               corporation which as a result of such transaction owns the
               Company or all or substantially all of the Company's assets
               either directly or through one or more subsidiaries) (the
               "Successor Entity") in substantially the same proportions as
               their ownership immediately prior to such Business Combination of
               the Outstanding Company Voting Securities; and (ii) no Person
               (excluding any Successor Entity or any employee benefit plan, or
               related trust, of the Company or such Successor Entity)
               beneficially owns, directly or indirectly, twenty percent (20%)
               or more of the combined voting power of the then outstanding
               voting securities of the Successor Entity, except to the extent
               that such ownership existed prior to the Business Combination;
               and (iii) at least a majority of the members of the board of
               directors of the Successor Entity were members of the Incumbent
               Board (including persons deemed to be members of the Incumbent
               Board by reason of the proviso to paragraph (b) of this Section
               2.8) at the time of the execution of the initial agreement or of
               the action of the Board providing for such Business Combination;
               or

          (d)  Approval by the shareholders of the Company of a complete
               liquidation or dissolution of the Company.

     2.9  "Code" means the U.S. Internal Revenue Code of 1986, as amended from
          time to time.

     2.10 "Committee" means the compensation committee of the Board, or any
          other committee designated by the Board to administer this Plan. The
          members of the Committee shall be appointed from time to time by and
          shall serve at the discretion of the Board.

     2.11 "Company" means Lev Pharmaceuticals, Inc., a Delaware corporation, and
          any successor thereto as provided in Article 21 herein.

     2.12 "Covered Employee" means a Participant who is a "covered employee," as
          defined in Code Section 162(m) and the regulations promulgated under
          Code Section 162(m), or any successor statute.

     2.13 "Director" means any individual who is a member of the Board of
          Directors of the Company.

     2.14 "Effective Date" has the meaning set forth in Section 1.1.

     2.15 "Employee" means any employee of the Company, its Affiliates, and/or
          Subsidiaries.

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     2.16 "Exchange Act" means the Securities Exchange Act of 1934, as amended
          from time to time, or any successor act thereto.

     2.17 "Fair Market Value" or "FMV" means a price that is based on the
          opening, closing, actual, high, low, or average selling prices of a
          Share quoted through the National Association of Securities Dealers'
          Automatic Quotation ("NASDAQ") National Market System or other
          established stock exchange (or exchanges) on the applicable date, the
          preceding trading days the next succeeding trading day, or an average
          of trading days, as determined by the Committee in its discretion.
          Unless the Committee determines otherwise, if the Shares are traded
          over the counter at the time a determination of its Fair Market Value
          is required to be made hereunder, its Fair Market Value shall be
          deemed to be equal to the average between the reported high and low or
          closing bid and asked prices of a Share on the most recent date on
          which Shares were publicly traded. In the event Shares are not
          publicly traded at the time a determination of their value is required
          to be made hereunder, the determination of their Fair Market Value
          shall be made by the Committee in such manner as it deems appropriate.
          Such definition(s) of FMV shall be specified in each Award Agreement
          and may differ depending on whether FMV is in reference to the grant,
          exercise, vesting, settlement, or payout of an Award.

     2.18 "Full Value Award" means an Award other than in the form of an ISO,
          NQSO, or SAR, and which is settled by the issuance of Shares.

     2.19 "Freestanding SAR" means an SAR that is granted independently of any
          Options, as described in Article 7.

     2.20 "Grant Price" means the price established at the time of grant of a
          SAR pursuant to Article 7, used to determine whether there is any
          payment due upon exercise of the SAR.

     2.21 "Incentive Stock Option" or "ISO" means an Option to purchase Shares
          granted under Article 6 to an Employee and that is designated as an
          Incentive Stock Option and that is intended to meet the requirements
          of Code Section 422, or any successor provision.

     2.22 "Insider" shall mean an individual who is, on the relevant date, an
          officer, Director, or more than ten percent (10%) Beneficial Owner of
          any class of the Company's equity securities that is registered
          pursuant to Section 12 of the Exchange Act, as determined by the Board
          in accordance with Section 16 of the Exchange Act.

     2.23 "Nonemployee Director" means a Director who is not an Employee.

     2.24 "Nonemployee Director Award" means any NQSO, SAR, or Full Value Award
          granted, whether singly, in combination, or in tandem, to a
          Participant who is a Nonemployee Director pursuant to such applicable
          terms, conditions, and limitations as the Board or Committee may
          establish in accordance with this Plan.

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     2.25 "Nonqualified Stock Option" or "NQSO" means an Option that is not
          intended to meet the requirements of Code Section 422, or that
          otherwise does not meet such requirements.

     2.26 "Option" means an Incentive Stock Option or a Nonqualified Stock
          Option, as described in Article 6.

     2.27 "Option Price" means the price at which a Share may be purchased by a
          Participant pursuant to an Option.

     2.28 "Other Stock-Based Award" means an equity-based or equity-related
          Award not otherwise described by the terms of this Plan, granted
          pursuant to Article 10.

     2.29 "Participant" means any eligible person as set forth in Article 5 to
          whom an Award is granted.

     2.30 "Performance-Based Compensation" means compensation under an Award
          that satisfies the requirements of Section 162(m) of the Code for
          deductibility of remuneration paid to Covered Employees.

     2.31 "Performance Measures" means measures as described in Article 11 on
          which the performance goals are based and which are approved by the
          Company's shareholders pursuant to this Plan in order to qualify
          Awards as Performance-Based Compensation.

     2.32 "Performance Period" means the period of time during which the
          performance goals must be met in order to determine the degree of
          payout and/or vesting with respect to an Award.

     2.33 "Performance Share" means an Award granted to a Participant, as
          described in Article 9.

     2.34 "Performance Unit" means an Award granted to a Participant, as
          described in Article 9.

     2.35 "Period of Restriction" means the period when Restricted Stock or
          Restricted Stock Units are subject to a substantial risk of forfeiture
          (based on the passage of time, the achievement of performance goals,
          or upon the occurrence of other events as determined by the Committee,
          in its discretion), as provided in Article 8. 2.36 "Person" shall have
          the meaning ascribed to such term in Section 3(a)(9) of the Exchange
          Act and used in Sections 13(d) and 14(d) thereof, including a "group"
          as defined in Section 13(d) thereof.

     2.37 "Plan" means the Lev Pharmaceuticals, Inc. 2004 Omnibus Incentive
          Compensation Plan.

     2.38 "Plan Year" means the calendar year.

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     2.39 "Restricted Stock" means an Award granted to a Participant pursuant to
          Article 8.

     2.40 "Restricted Stock Unit" means an Award granted to a Participant
          pursuant to Article 8, except no Shares are actually awarded to the
          Participant on the date of grant.

     2.41 "Share" means a share of common stock of the Company, $.00001 par
          value per share.

     2.42 "Stock Appreciation Right" or "SAR" means an Award, designated as a
          SAR, pursuant to the terms of Article 7 herein.

     2.43 "Subsidiary" means any corporation or other entity, whether domestic
          or foreign, in which the Company has or obtains, directly or
          indirectly, a proprietary interest of more than fifty percent (50%) by
          reason of stock ownership or otherwise.

     2.44 "Tandem SAR" means an SAR that is granted in connection with a related
          Option pursuant to Article 7 herein, the exercise of which shall
          require forfeiture of the right to purchase a Share under the related
          Option (and when a Share is purchased under the Option, the Tandem SAR
          shall similarly be canceled).

Article 3. Administration

     3.1 General. The Committee shall be responsible for administering the Plan,
subject to this Article 3 and the other provisions of the Plan. The Committee
may employ attorneys, consultants, accountants, agents, and other persons, any
of whom may be an Employee, and the Committee, the Company, and its officers and
Directors shall be entitled to rely upon the advice, opinions, or valuations of
any such persons. All actions taken and all interpretations and determinations
made by the Committee shall be final and binding upon the Participants, the
Company, and all other interested persons.

     3.2 Authority of the Committee. The Committee shall have full and exclusive
discretionary power to interpret the terms and the intent of the Plan and any
Award Agreement or other agreement or document ancillary to or in connection
with the Plan, to determine eligibility for Awards and to adopt such rules,
regulations, forms, instruments, and guidelines for administering the Plan as
the Committee may deem necessary or proper. Such authority shall include, but
not be limited to, selecting Award recipients, establishing all Award terms and
conditions, including the terms and conditions set forth in Award Agreements,
and, subject to Article 18, adopting modifications and amendments to the Plan or
any Award Agreement, including without limitation, any that are necessary to
comply with the laws of the countries and other jurisdictions in which the
Company, its Affiliates, and/or its Subsidiaries operate.

     3.3 Delegation. The Committee may delegate to one or more of its members or
to one or more officers of the Company, and/or its Subsidiaries and Affiliates
or to one or more agents or advisors such administrative duties or powers as it
may deem advisable, and the Committee or any person to whom it has delegated
duties or powers as aforesaid may employ one or more persons to render advice
with respect to any responsibility the Committee or such person may have under

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the Plan. The Committee may, by resolution, authorize one or more officers of
the Company to do one or both of the following on the same basis as can the
Committee: (a) designate Employees to be recipients of Awards; and (b) determine
the size of any such Awards; provided, however, (i) the Committee shall not
delegate such responsibilities to any such officer for Awards granted to an
Employee that is considered an Insider; (ii) the resolution providing such
authorization sets forth the total number of Awards such officer(s) may grant;
and (iii) the officer(s) shall report periodically to the Committee regarding
the nature and scope of the Awards granted pursuant to the authority delegated.

Article 4. Shares Subject to the Plan

     4.1  Number of Shares Available for Awards.

     (a)  Subject to adjustment as provided in Section 4.4 herein, the maximum
          number of Shares available for issuance to Participants under the Plan
          (the "Share Authorization") shall be three million five hundred
          thousand (3,500,000).

     (b)  Subject to the limit set forth in Section 4.1(a) on the number of
          Shares that may be issued in the aggregate under the Plan, the maximum
          number of Shares that may be issued pursuant to ISOs and NQSOs shall
          be:

          (i)  Three million five hundred thousand (3,500,000) Shares that may
               be issued pursuant to Awards in the form of ISOs; and

          (ii) Three million five hundred thousand (3,500,000) Shares that may
               be issued pursuant to Awards in the form of NQSOs.

     4.2  Share Usage. Shares covered by an Award shall only be counted as used
to the extent they are actually issued. Any Shares related to Awards which
terminate by expiration, forfeiture, cancellation, or otherwise without the
issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged
with the Committee's permission, prior to the issuance of Shares, for Awards not
involving Shares, shall be available again for grant under the Plan. Moreover,
if the Option Price of any Option granted under the Plan or the tax withholding
requirements with respect to any Award granted under the Plan are satisfied by
tendering Shares to the Company (by either actual delivery or by attestation),
or if an SAR is exercised, only the number of Shares issued, net of the Shares
tendered, if any, will be deemed delivered for purposes of determining the
maximum number of Shares available for delivery under the Plan. The maximum
number of Shares available for issuance under the Plan shall not be reduced to
reflect any dividends or dividend equivalents that are reinvested into
additional Shares or credited as additional Restricted Stock, Restricted Stock
Units, Performance Shares, or Stock-Based Awards. The Shares available for
issuance under the Plan may be authorized and unissued Shares or treasury
Shares.

     4.3  Adjustments in Authorized Shares. In the event of any corporate event
or transaction (including, but not limited to, a change in the Shares of the
Company or the capitalization of the Company) such as a merger, consolidation,
reorganization, recapitalization, separation, stock dividend, stock split,
reverse stock split, split up, spin-off, or other distribution of stock or

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property of the Company, combination of Shares, exchange of Shares, dividend in
kind, or other like change in capital structure or distribution (other than
normal cash dividends) to shareholders of the Company, or any similar corporate
event or transaction, the Committee, in its sole discretion, in order to prevent
dilution or enlargement of Participants' rights under the Plan, shall substitute
or adjust, as applicable, the number and kind of Shares that may be issued under
the Plan or under particular forms of Awards, the number and kind of Shares
subject to outstanding Awards, the Option Price or Grant Price applicable to
outstanding Awards, the Annual Award Limits, and other value determinations
applicable to outstanding Awards.

     The Committee, in its sole discretion, may also make appropriate
adjustments in the terms of any Awards under the Plan to reflect or related to
such changes or distributions and to modify any other terms of outstanding
Awards, including modifications of performance goals and changes in the length
of Performance Periods. The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under the
Plan.

     Subject to the provisions of Article 18, without affecting the number of
Shares reserved or available hereunder, the Committee may authorize the issuance
or assumption of benefits under this Plan in connection with any merger,
consolidation, acquisition of property or stock, or reorganization upon such
terms and conditions as it may deem appropriate, subject to compliance with the
ISO rules under Section 422 of the Code, where applicable.

Article 5. Eligibility and Participation

     5.1 Eligibility. Individuals eligible to participate in this Plan include
all Employees and Directors.

     5.2 Actual Participation. Subject to the provisions of the Plan, the
Committee may, from time to time, select from all eligible individuals, those to
whom Awards shall be granted and shall determine, in its sole discretion, the
nature of, any and all terms permissible by law, and the amount of each Award.

Article 6. Stock Options

     6.1 Grant of Options. Subject to the terms and provisions of the Plan,
Options may be granted to Participants in such number, and upon such terms, and
at any time and from time to time as shall be determined by the Committee, in
its sole discretion; provided that ISOs may be granted only to eligible
Employees of the Company or of any parent or subsidiary corporation (as
permitted by Section 422 of the Code and the regulations thereunder).

     6.2 Award Agreement. Each Option grant shall be evidenced by an Award
Agreement that shall specify the Option Price, the maximum duration of the
Option, the number of Shares to which the Option pertains, the conditions upon
which an Option shall become vested and exercisable, and such other provisions
as the Committee shall determine which are not inconsistent with the terms of
the Plan. The Award Agreement also shall specify whether the Option is intended
to be an ISO or a NQSO.

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     6.3 Option Price. The Option Price for each grant of an Option under this
Plan shall be as determined by the Committee and shall be specified in the Award
Agreement. The Option Price shall be: (i) based on one hundred percent (100%) of
the FMV of the Shares on the date of grant, (ii) set at a premium to the FMV of
the Shares on the date of grant, or (iii) indexed to the FMV of the Shares on
the date of grant, with the index determined by the Committee, in its
discretion; provided, however, the Option Price on the date of grant must be at
least equal to one hundred percent (100%) of the FMV of the Shares on the date
of grant.

     6.4 Duration of Options. Each Option granted to a Participant shall expire
at such time as the Committee shall determine at the time of grant; provided,
however, no Option shall be exercisable later than the tenth (10th) anniversary
date of its grant.

     6.5 Exercise of Options. Options granted under this Article 6 shall be
exercisable at such times and be subject to such restrictions and conditions as
the Committee shall in each instance approve, which terms and restrictions need
not be the same for each grant or for each Participant.

     6.6 Payment. Options granted under this Article 6 shall be exercised by the
delivery of a notice of exercise to the Company or an agent designated by the
Company in a form specified or accepted by the Committee, or by complying with
any alternative procedures which may be authorized by the Committee, setting
forth the number of Shares with respect to which the Option is to be exercised,
accompanied by full payment for the Shares.

     A condition of the issuance of the Shares as to which an Option shall be
exercised shall be the payment of the Option Price. The Option Price of any
Option shall be payable to the Company in full either: (a) in cash or its
equivalent; (b) by tendering (either by actual delivery or attestation)
previously acquired Shares having an aggregate Fair Market Value at the time of
exercise equal to the Option Price (provided that except as otherwise determined
by the Committee, the Shares that are tendered must have been held by the
Participant for at least six (6) months prior to their tender to satisfy the
Option Price or have been purchased on the open market); (c) by a combination of
(a) and (b); or (d) any other method approved or accepted by the Committee in
its sole discretion., including, without limitation, if the Committee so
determines, a cashless (broker-assisted) exercise.

     Subject to any governing rules or regulations, as soon as practicable after
receipt of written notification of exercise and full payment (including
satisfaction of any applicable tax withholding), the Company shall deliver to
the Participant evidence of book entry Shares, or upon the Participant's
request, Share certificates in an appropriate amount based upon the number of
Shares purchased under the Option(s).

     Unless otherwise determined by the Committee, all payments under all of the
methods indicated above shall be paid in United States dollars.

     6.7 Restrictions on Share Transferability. The Committee may impose such
restrictions on any Shares acquired pursuant to the exercise of an Option
granted under this Article 6 as it may deem advisable, including, without
limitation, minimum holding period requirements, restrictions under applicable

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federal securities laws, under the requirements of any stock exchange or market
upon which such Shares are then listed and/or traded, or under any blue sky or
state securities laws applicable to such Shares.

     6.8 Termination of Employment. Each Participant's Award Agreement shall set
forth the extent to which the Participant shall have the right to exercise the
Option following termination of the Participant's employment or provision of
services to the Company, its Affiliates, its Subsidiaries, as the case may be.
Such provisions shall be determined in the sole discretion of the Committee,
shall be included in the Award Agreement entered into with each Participant,
need not be uniform among all Options issued pursuant to this Article 6, and may
reflect distinctions based on the reasons for termination.

     6.9  Transferability of Options.

          (a)  Incentive Stock Options. No ISO granted under the Plan may be
               sold, transferred, pledged, assigned, or otherwise alienated or
               hypothecated, other than by will or by the laws of descent and
               distribution. Further, all ISOs granted to a Participant under
               this Article 6 shall be exercisable during his or her lifetime
               only by such Participant.

          (b)  Nonqualified Stock Options. Except as otherwise provided in a
               Participant's Award Agreement or otherwise determined at any time
               by the Committee, no NQSO granted under this Article 6 may be
               sold, transferred, pledged, assigned, or otherwise alienated or
               hypothecated, other than by will or by the laws of descent and
               distribution; provided that the Board or Committee may permit
               further transferability, on a general or a specific basis, and
               may impose conditions and limitations on any permitted
               transferability. Further, except as otherwise provided in a
               Participant's Award Agreement or otherwise determined at any time
               by the Committee, or unless the Board or Committee decides to
               permit further transferability, all NQSOs granted to a
               Participant under this Article 6 shall be exercisable during his
               or her lifetime only by such Participant. With respect to those
               NQSOs, if any, that are permitted to be transferred to another
               person, references in the Plan to exercise or payment of the
               Option Price by the Participant shall be deemed to include, as
               determined by the Committee, the Participant's permitted
               transferee.

     6.10 Notification of Disqualifying Disposition. If any Participant shall
make any disposition of Shares issued pursuant to the exercise of an ISO under
the circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions), such Participant shall notify the Company of such
disposition within ten (10) days thereof.

     6.11 Substituting SARs. Only in the event the Company is not accounting for
equity compensation under APB Opinion 25, the Committee shall have the ability
to substitute, without receiving Participant permission, SARs paid only in Stock
(or SARs paid in Stock or cash at the Committee's discretion) for outstanding
Options; provided, the terms of the substituted Stock SARs are the same as the
terms for the Options and the aggregate difference between the Fair Market Value
of the underlying Shares and the Grant Price of the SARs is equivalent to the
aggregate difference between the Fair Market Value of the underlying Shares and
the Option Price of the Options. If, in the opinion of the Company's auditors,
this provision creates adverse accounting consequences for the Company, it shall
be considered null and void.

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Article 7. Stock Appreciation Rights

     7.1 Grant of SARs. Subject to the terms and conditions of the Plan, SARs
may be granted to Participants at any time and from time to time as shall be
determined by the Committee. The Committee may grant Freestanding SARs, Tandem
SARs, or any combination of these forms of SARs.

     Subject to the terms and conditions of the Plan, the Committee shall have
complete discretion in determining the number of SARs granted to each
Participant and, consistent with the provisions of the Plan, in determining the
terms and conditions pertaining to such SARs.

     The Grant Price for each grant of a Freestanding SAR shall be determined by
the Committee and shall be specified in the Award Agreement. The Grant Price
shall be: (i) based on one hundred percent (100%) of the FMV of the Shares on
the date of grant, (ii) set at a premium to the FMV of the Shares on the date of
grant, or (iii) indexed to the FMV of the Shares on the date of grant, with the
index determined by the Committee, in its discretion; provided, however, the
Grant Price on the date of grant must be at least equal to one hundred percent
(100%) of the FMV of the Shares on the date of grant. The Grant Price of Tandem
SARs shall be equal to the Option Price of the related Option.

     7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement
that shall specify the Grant Price, the term of the SAR, and such other
provisions as the Committee shall determine.

     7.3 Term of SAR. The term of an SAR granted under the Plan shall be
determined by the Committee, in its sole discretion, and except as determined
otherwise by the Committee and specified in the SAR Award Agreement, no SAR
shall be exercisable later than the tenth (10th) anniversary date of its grant.

     7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon
whatever terms and conditions the Committee, in its sole discretion, imposes.

     7.5. Exercise of Tandem SARs. Tandem SARs may be exercised for all or part
of the Shares subject to the related Option upon the surrender of the right to
exercise the equivalent portion of the related Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable.

     Notwithstanding any other provision of this Plan to the contrary, with
respect to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR
will expire no later than the expiration of the underlying ISO; (b) the value of
the payout with respect to the Tandem SAR may be for no more than one hundred
percent (100%) of the excess of the Fair Market Value of the Shares subject to
the underlying ISO at the time the Tandem SAR is exercised over the Option Price

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<PAGE>

of the underlying ISO; and (c) the Tandem SAR may be exercised only when the
Fair Market Value of the Shares subject to the ISO exceeds the Option Price of
the ISO.

     7.6  Payment of SAR Amount. Upon the exercise of an SAR, a Participant
shall be entitled to receive payment from the Company in an amount determined by
multiplying:

          (a)  The excess of the Fair Market Value of a Share on the date of
               exercise over the Grant Price; by

          (b)  The number of Shares with respect to which the SAR is exercised.

     At the discretion of the Committee, the payment upon SAR exercise may be in
cash, Shares, or any combination thereof, or in any other manner approved by the
Committee in its sole discretion. The Committee's determination regarding the
form of SAR payout shall be set forth in the Award Agreement pertaining to the
grant of the SAR.

     7.7 Termination of Employment. Each Award Agreement shall set forth the
extent to which the Participant shall have the right to exercise the SAR
following termination of the Participant's employment with or provision of
services to the Company, its Affiliates, and/or its Subsidiaries, as the case
may be. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the Award Agreement entered into with
Participants, need not be uniform among all SARs issued pursuant to the Plan,
and may reflect distinctions based on the reasons for termination.

     7.8 Nontransferability of SARs. Except as otherwise provided in a
Participant's Award Agreement or otherwise determined at any time by the
Committee, no SAR granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Participant's Award Agreement or otherwise determined at any time by the
Committee, all SARs granted to a Participant under the Plan shall be exercisable
during his or her lifetime only by such Participant. With respect to those SARs,
if any, that are permitted to be transferred to another person, references in
the Plan to exercise of the SAR by the Participant or payment of any amount to
the Participant shall be deemed to include, as determined by the Committee, the
Participant's permitted transferee.

     7.9 Other Restrictions. The Committee shall impose such other conditions
and/or restrictions on any Shares received upon exercise of a SAR granted
pursuant to the Plan as it may deem advisable or desirable. These restrictions
may include, but shall not be limited to, a requirement that the Participant
hold the Shares received upon exercise of a SAR for a specified period of time.

Article 8. Restricted Stock and Restricted Stock Units

     8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the
terms and provisions of the Plan, the Committee, at any time and from time to
time, may grant Shares of Restricted Stock and/or Restricted Stock Units to
Participants in such amounts as the Committee shall determine. Restricted Stock
Units shall be similar to Restricted Stock except that no Shares are actually
awarded to the Participant on the date of grant.

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<PAGE>

     8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted
Stock and/or Restricted Stock Unit grant shall be evidenced by an Award
Agreement that shall specify the Period(s) of Restriction, the number of Shares
of Restricted Stock or the number of Restricted Stock Units granted, and such
other provisions as the Committee shall determine.

     8.3 Transferability. Except as provided in this Plan or an Award Agreement,
the Shares of Restricted Stock and/or Restricted Stock Units granted herein may
not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated until the end of the applicable Period of Restriction established
by the Committee and specified in the Award Agreement (and in the case of
Restricted Stock Units until the date of delivery or other payment), or upon
earlier satisfaction of any other conditions, as specified by the Committee, in
its sole discretion, and set forth in the Award Agreement or otherwise at any
time by the Committee. All rights with respect to the Restricted Stock and/or
Restricted Stock Units granted to a Participant under the Plan shall be
available during his or her lifetime only to such Participant, except as
otherwise provided in an Award Agreement or at any time by the Committee.

     8.4 Other Restrictions. The Committee shall impose such other conditions
and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units
granted pursuant to the Plan as it may deem advisable including, without
limitation, a requirement that Participants pay a stipulated purchase price for
each Share of Restricted Stock or each Restricted Stock Unit, restrictions based
upon the achievement of specific performance goals, time-based restrictions on
vesting following the attainment of the performance goals, time-based
restrictions, and/or restrictions under applicable laws or under the
requirements of any stock exchange or market upon which such Shares are listed
or traded, or holding requirements or sale restrictions placed on the Shares by
the Company upon vesting of such Restricted Stock or Restricted Stock Units.

     To the extent deemed appropriate by the Committee, the Company may retain
the certificates representing Shares of Restricted Stock in the Company's
possession until such time as all conditions and/or restrictions applicable to
such Shares have been satisfied or lapse.

     Except as otherwise provided in this Article 8, Shares of Restricted Stock
covered by each Restricted Stock Award shall become freely transferable by the
Participant after all conditions and restrictions applicable to such Shares have
been satisfied or lapse (including satisfaction of any applicable tax
withholding obligations), and Restricted Stock Units shall be paid in cash,
Shares, or a combination of cash and Shares as the Committee, in its sole
discretion shall determine.

     8.5 Certificate Legend. In addition to any legends placed on certificates
pursuant to Section 8.4, each certificate representing Shares of Restricted
Stock granted pursuant to the Plan may bear a legend such as the following or as
otherwise determined by the Committee in its sole discretion:

     The sale or transfer of Shares of stock represented by this certificate,
whether voluntary, involuntary, or by operation of law, is subject to certain
restrictions on transfer as set forth in the Lev Pharmaceuticals, Inc. 2004
Omnibus Incentive Compensation Plan, and in the associated Award Agreement. A
copy of the Plan and such Award Agreement may be obtained from Lev
Pharmaceuticals, Inc.

                                       13

<PAGE>

     8.6 Voting Rights. Unless otherwise determined by the Committee and set
forth in a Participant's Award Agreement, to the extent permitted or required by
law, as determined by the Committee, Participants holding Shares of Restricted
Stock granted hereunder may be granted the right to exercise full voting rights
with respect to those Shares during the Period of Restriction. A Participant
shall have no voting rights with respect to any Restricted Stock Units granted
hereunder.

     8.7 Termination of Employment. Each Award Agreement shall set forth the
extent to which the Participant shall have the right to retain Restricted Stock
and/or Restricted Stock Units following termination of the Participant's
employment with or provision of services to the Company, its Affiliates, and/or
its Subsidiaries, as the case may be. Such provisions shall be determined in the
sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Shares of
Restricted Stock or Restricted Stock Units issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination.

     8.8 Section 83(b) Election. The Committee may provide in an Award Agreement
that the Award of Restricted Stock is conditioned upon the Participant making or
refraining from making an election with respect to the Award under Section 83(b)
of the Code. If a Participant makes an election pursuant to Section 83(b) of the
Code concerning a Restricted Stock Award, the Participant shall be required to
file promptly a copy of such election with the Company.

Article 9. Performance Units/Performance Shares

     9.1 Grant of Performance Units/Performance Shares. Subject to the terms and
provisions of the Plan, the Committee, at any time and from time to time, may
grant Performance Units and/or Performance Shares to Participants in such
amounts and upon such terms as the Committee shall determine.

     9.2 Value of Performance Units/Performance Shares. Each Performance Unit
shall have an initial value that is established by the Committee at the time of
grant. Each Performance Share shall have an initial value equal to the Fair
Market Value of a Share on the date of grant. The Committee shall set
performance goals in its discretion which, depending on the extent to which they
are met, will determine the value and/or number of Performance Units/Performance
Shares that will be paid out to the Participant.

     9.3 Earning of Performance Units/Performance Shares. Subject to the terms
of this Plan, after the applicable Performance Period has ended, the holder of
Performance Units/Performance Shares shall be entitled to receive payout on the
value and number of Performance Units/Performance Shares earned by the
Participant over the Performance Period, to be determined as a function of the
extent to which the corresponding performance goals have been achieved.

     9.4 Form and Timing of Payment of Performance Units/Performance Shares.
Payment of earned Performance Units/Performance Shares shall be as determined by
the Committee and as evidenced in the Award Agreement. Subject to the terms of
the Plan, the Committee, in its sole discretion, may pay earned Performance
Units/Performance Shares in the form of cash or in Shares (or in a combination
thereof) equal to the value of the earned Performance Units/Performance Shares
at the close of the applicable Performance Period, or as soon as practicable
after the end of the Performance Period. Any Shares may be granted subject to

                                       14

<PAGE>

any restrictions deemed appropriate by the Committee. The determination of the
Committee with respect to the form of payout of such Awards shall be set forth
in the Award Agreement pertaining to the grant of the Award.

     9.5 Termination of Employment. Each Award Agreement shall set forth the
extent to which the Participant shall have the right to retain Performance Units
and/or Performance Shares following termination of the Participant's employment
with or provision of services to the Company, its Affiliates, and/or its
Subsidiaries, as the case may be. Such provisions shall be determined in the
sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Awards of
Performance Units or Performance Shares issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination.

     9.6 Nontransferability. Except as otherwise provided in a Participant's
Award Agreement or otherwise at any time by the Committee, Performance
Units/Performance Shares may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution. Further, except as otherwise provided in a
Participant's Award Agreement or otherwise at any time by the Committee, a
Participant's rights under the Plan shall be exercisable during his or her
lifetime only by such Participant.

Article 10. Cash-Based Awards and Other Stock-Based Awards

     10.1 Grant of Cash-Based Awards. Subject to the terms and provisions of the
Plan, the Committee, at any time and from time to time, may grant Cash-Based
Awards to Participants in such amounts and upon such terms, including the
achievement of specific performance goals, as the Committee may determine.

     10.2 Other Stock-Based Awards. The Committee may grant other types of
equity-based or equity-related Awards not otherwise described by the terms of
this Plan (including the grant or offer for sale of unrestricted Shares) in such
amounts and subject to such terms and conditions, as the Committee shall
determine. Such Awards may involve the transfer of actual Shares to
Participants, or payment in cash or otherwise of amounts based on the value of
Shares and may include, without limitation, Awards designed to comply with or
take advantage of the applicable local laws of jurisdictions other than the
United States.

     10.3 Value of Cash-Based and Other Stock-Based Awards. Each Cash-Based
Award shall specify a payment amount or payment range as determined by the
Committee. Each Other Stock-Based Award shall be expressed in terms of Shares or
units based on Shares, as determined by the Committee. The Committee may
establish performance goals in its discretion. If the Committee exercises its
discretion to establish performance goals, the number and/or value of Cash-Based
Awards or Other Stock-Based Awards that will be paid out to the Participant will
depend on the extent to which the performance goals are met.

     10.4 Payment of Cash-Based Awards and Other Stock-Based Awards. Payment, if
any, with respect to a Cash-Based Award or an Other Stock-Based Award shall be
made in accordance with the terms of the Award, in cash or Shares as the
Committee determines.

                                       15

<PAGE>

     10.5 Termination of Employment. The Committee shall determine the extent to
which the Participant shall have the right to receive Cash-Based Awards or other
Stock-Based Awards following termination of the Participant's employment with or
provision of services to the Company, its Affiliates, and/or its Subsidiaries,
as the case may be. Such provisions shall be determined in the sole discretion
of the Committee, such provisions may be included in an agreement entered into
with each Participant, but need not be uniform among all Awards of Cash-Based
Awards or Other Stock-Based Awards issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination.

     10.6 Nontransferability. Except as otherwise determined by the Committee,
neither Cash-Based Awards nor Other Stock-Based Awards may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or
by the laws of descent and distribution. Further, except as otherwise provided
by the Committee, a Participant's rights under the Plan, if exercisable, shall
be exercisable during his or her lifetime only by such Participant. With respect
to those Cash-Based Awards or Other Stock-Based Awards, if any, that are
permitted to be transferred to another person, references in the Plan to
exercise or payment of such Awards by or to the Participant shall be deemed to
include, as determined by the Committee, the Participant's permitted transferee.

Article 11. Performance Measures

     11.1 Performance Measures. Unless and until the Committee proposes for
shareholder vote and the shareholders approve a change in the general
Performance Measures set forth in this Article 11, the performance goals upon
which the payment or vesting of an Award to a Covered Employee that is intended
to qualify as Performance-Based Compensation shall be limited to the following
Performance Measures:

     (a)  Net earnings or net income (before or after taxes);

     (b)  Earnings per share;

     (c)  Net sales growth;

     (d)  Net operating profit;

     (e)  Return measures (including, but not limited to, return on assets,
          capital, equity, or sales);

     (f)  Cash flow (including, but not limited to, operating cash flow , free
          cash flow, and cash flow return on capital);

     (g)  Earnings before or after taxes, interest, depreciation, and/or
          amortization;

     (h)  Gross or operating margins;

     (i)  Productivity ratios;

     (j)  Share price (including, but not limited to, growth measures and total
          shareholder return);

     (k)  Expense targets;

     (l)  Margins;

     (m)  Operating efficiency;

     (n)  Customer satisfaction; and

     (o)  Working capital targets.

     Any Performance Measure(s) may be used to measure the performance of the
Company, Subsidiary, and/or Affiliate as a whole or any business unit of the
Company, Subsidiary, and/or Affiliate or any combination thereof, as the

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<PAGE>

Committee may deem appropriate, or any of the above Performance Measures as
compared to the performance of a group of comparator companies, or published or
special index that the Committee, in its sole discretion, deems appropriate, or
the Company may select Performance Measure (j) above as compared to various
stock market indices. The Committee also has the authority to provide for
accelerated vesting of any Award based on the achievement of performance goals
pursuant to the Performance Measures specified in this Article 11.

     11.2 Evaluation of Performance. The Committee may provide in any such Award
that any evaluation of performance may include or exclude any of the following
events that occurs during a Performance Period: (a) asset write-downs, (b)
litigation or claim judgments or settlements, (c) the effect of changes in tax
laws, accounting principles, or other laws or provisions affecting reported
results, (d) any reorganization and restructuring programs, (e) extraordinary
nonrecurring items as described in Accounting Principles Board Opinion No. 30
and/or in management's discussion and analysis of financial condition and
results of operations appearing in the Company's annual report to shareholders
for the applicable year, (f) acquisitions or divestitures, and (g) foreign
exchange gains and losses. To the extent such inclusions or exclusions affect
Awards to Covered Employees, they shall be prescribed in a form that meets the
requirements of Code Section 162(m) for deductibility.

     11.3 Adjustment of Performance-Based Compensation. Awards that are designed
to qualify as Performance-Based Compensation, and that are held by Covered
Employees, may not be adjusted upward. The Committee shall retain the discretion
to adjust such Awards downward, either on a formula or discretionary basis or
any combination, as the Committee determines.

     11.4 Committee Discretion. In the event that applicable tax and/or
securities laws change to permit Committee discretion to alter the governing
Performance Measures without obtaining shareholder approval of such changes, the
Committee shall have sole discretion to make such changes without obtaining
shareholder approval. In addition, in the event that the Committee determines
that it is advisable to grant Awards that shall not qualify as Performance-Based
Compensation, the Committee may make such grants without satisfying the
requirements of Code Section 162(m) and base vesting on Performance Measures
other than those set forth in Section 11.1.

Article 12. Nonemployee Director Awards

     12.1 Nonemployee Director Awards. All Awards to Nonemployee Directors shall
be determined by the Board or Committee.

     12.2 Nonemployee Director Retainer Deferral. The Committee may permit or
require a Nonemployee Director Participant to defer all or some portion of any
cash retainer to be paid to such Participant. If any such deferral election is
required or permitted, the Committee shall, in its sole discretion, establish
rules and procedures for such retainer deferrals.

Article 13. Dividend Equivalents

     Any Participant selected by the Committee may be granted dividend
equivalents based on the dividends declared on Shares that are subject to any
Award, to be credited as of dividend payment dates, during the period between
the date the Award is granted and the date the Award is exercised, vests or

                                       17

<PAGE>

expires, as determined by the Committee. Such dividend equivalents shall be
converted to cash or additional Shares by such formula and at such time and
subject to such limitations as may be determined by the Committee.

Article 14. Beneficiary Designation

     Each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Plan is to be paid in case of his or her death before
he or she receives any or all of such benefit. Each such designation shall
revoke all prior designations by the same Participant, shall be in a form
prescribed by the Committee, and will be effective only when filed by the
Participant in writing with the Company during the Participant's lifetime. In
the absence of any such designation, benefits remaining unpaid at the
Participant's death shall be paid to the Participant's estate.

Article 15. Deferrals

     The Committee may permit or require a Participant to defer such
Participant's receipt of the payment of cash or the delivery of Shares that
would otherwise be due to such Participant by virtue of the exercise of an
Option or SAR, the lapse or waiver of restrictions with respect to Restricted
Stock or Restricted Stock Units, or the satisfaction of any requirements or
performance goals with respect to Performance Shares, Performance Units,
Cash-Based Awards, Other Stock-Based Awards, or Cash-Based Awards. If any such
deferral election is required or permitted, the Committee shall, in its sole
discretion, establish rules and procedures for such payment deferrals.

Article 16. Rights of Participants

     16.1 Employment. Nothing in the Plan or an Award Agreement shall interfere
with or limit in any way the right of the Company, its Affiliates, and/or its
Subsidiaries, to terminate any Participant's employment or service on the Board
at any time or for any reason not prohibited by law, nor confer upon any
Participant any right to continue his or her employment or service as a Director
for any specified period of time.

     Neither an Award nor any benefits arising under this Plan shall constitute
an employment contract with the Company, its Affiliates, and/or its Subsidiaries
and, accordingly, subject to Articles 3 and 18, this Plan and the benefits
hereunder may be terminated at any time in the sole and exclusive discretion of
the Committee without giving rise to any liability on the part of the Company,
its Affiliates, and/or its Subsidiaries.

     16.2 Participation. No individual shall have the right to be selected to
receive an Award under this Plan, or, having been so selected, to be selected to
receive a future Award.

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<PAGE>

      16.3 Rights as a Shareholder. Except as otherwise provided herein, a
Participant shall have none of the rights of a shareholder with respect to
Shares covered by any Award until the Participant becomes the record holder of
such Shares.

Article 17. Change of Control

     17.1 Change of Control of the Company. Upon the occurrence of a Change of
Control, unless otherwise specifically prohibited under applicable laws or by
the rules and regulations of any governing governmental agencies or national
securities exchanges, or unless the Committee shall determine otherwise in the
Award Agreement:

          (a)  Any and all Options and SARs granted hereunder shall become
               immediately vested and exercisable; additionally, if a
               Participant's employment is terminated for any reason except
               Cause within three (3) months prior to such Change of Control or
               within twelve (12) months subsequent to such Change of Control,
               the Participant shall have until the earlier of: (i) twelve (12)
               months following such termination date, or (ii) the expiration of
               the Option or SAR term, to exercise any such Option or SAR;

          (b)  Any Period of Restriction and restrictions imposed on Restricted
               Stock or Restricted Stock Units shall lapse and such Restricted
               Stock or Restricted Stock Units shall become fully vested;

          (c)  The incentive pool used to determine Covered Employee Annual
               Incentive Awards shall be based on the Consolidated Operating
               Earnings or Operating Cash Flow or Net Income of the Plan Year
               immediately preceding the year of the Change of Control, or such
               other method of payment as may be determined by the Committee at
               the time of the Award or thereafter but prior to the Change of
               Control;

          (d)  The target payout opportunities attainable under all outstanding
               Awards of performance-based Restricted Stock, performance-based
               Restricted Stock Units, Performance Units, and Performance
               Shares, shall be deemed to have been fully earned based on
               targeted performance being attained as of the effective date of
               the Change of Control;

                    (i)  The vesting of all Awards denominated in Shares shall
                         be accelerated as of the effective date of the Change
                         of Control, and shall be paid out to Participants
                         within thirty (30) days following the effective date of
                         the Change of Control. The Committee has the authority
                         to pay all or any portion of the value of the Shares in
                         cash;

                    (ii) Awards denominated in cash shall be paid to
                         Participants in cash within thirty (30) days following
                         the effective date of the Change of Control; and

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<PAGE>

          (e)  Upon a Change of Control, unless otherwise specifically provided
               in a written agreement entered into between the Participant and
               the Company, the Committee shall pay out all Cash-Based Awards
               and Other Stock-Based Awards.

          (f)  Subject to the acceleration of vesting of outstanding Options,
               the Committee, in its discretion, may provide that in the event
               of a Change of Control pursuant to Section 2.8(a), (b), (c), or
               (d), no later than ten (10) days after the approval by the
               shareholders of the Company of such merger, consolidation,
               reorganization, sale, lease, or exchange or assets or dissolution
               or such election of directors, or in the event of a Change of
               Control pursuant to Section 2.8(a), no later than thirty (30)
               days after the occurrence of such Change of Control, that (i)
               Options may be exercised in full only for a limited period of
               time on or before a specified date (before or after such Change
               of Control) fixed by the Committee, after which specified date
               all unexercised Options and all rights of the Participants
               thereunder shall terminate, or (ii) require the mandatory
               surrender to the Company by selected Participants of some or all
               of the outstanding Options held by such Participants as of a
               date, before or after such Change of Control, specified by the
               Committee, in which event the Committee shall thereupon cancel
               such Options and the Company shall pay to each Participant an
               amount of cash per Share equal to the excess, if any of the
               "Change of Control Value" of the Shares subject to such Option
               over the Option Price(s) under such Options for such Shares.

          (g)  For the purpose of Section 17.1(f)(ii), "Change of Control Value"
               shall equal the amount determined in clause (i), (ii), or (iii),
               whichever is applicable, as follows: (i) the per Share price
               offered to shareholders of the Company in any such merger,
               consolidation, reorganization, sale of assets, or dissolution
               transaction, (ii) the price per Share offered to shareholders of
               the Company in any tender offer or exchange offer whereby a
               Change of Control takes place, or (iii) if such Change of Control
               occurs other than pursuant to a tender or exchange offer, the
               Fair Market Value per Share of the Shares in which such Options
               being surrendered are exercisable, as determined by the Committee
               as of the date determined by the Committee to be the date of
               cancellation and surrender of such Options. In the event that the
               consideration offered to shareholders of the Company in any
               transaction described in Section 2.8 consists of anything other
               than cash, the Committee shall determine the fair cash equivalent
               of the portion of the consideration offered which is other than
               cash.

Article 18. Amendment, Modification, Suspension, and Termination

     18.1 Amendment, Modification, Suspension, and Termination. Subject to
Section 18.3, the Committee may, at any time and from time to time, alter,
amend, modify, suspend, or terminate the Plan and any Award Agreement in whole
or in part; provided, however, that, without the prior approval of the Company's
shareholders and except as provided in Sections 4.4 and 6.11 hereof, Options or
SARs issued under the Plan will not be repriced, replaced, or regranted through
cancellation, or by lowering the Option Price of a previously granted Option or

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<PAGE>

the Grant Price of a previously granted SAR, and no amendment of the Plan shall
be made without shareholder approval if shareholder approval is required by law,
regulation, or stock exchange rule.

     18.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. The Committee may make adjustments in the terms and
conditions of, and the criteria included in, Awards in recognition of unusual or
nonrecurring events (including, without limitation, the events described in
Section 4.4 hereof) affecting the Company or the financial statements of the
Company or of changes in applicable laws, regulations, or accounting principles,
whenever the Committee determines that such adjustments are appropriate in order
to prevent unintended dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan. The determination of the
Committee as to the foregoing adjustments, if any, shall be conclusive and
binding on Participants under the Plan.

     18.3 Awards Previously Granted. Notwithstanding any other provision of the
Plan to the contrary, no termination, amendment, suspension, or modification of
the Plan or an Award Agreement shall adversely affect in any material way any
Award previously granted under the Plan, without the written consent of the
Participant holding such Award.

Article 19. Withholding

     19.1 Tax Withholding. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, the
minimum statutory amount to satisfy federal, state, and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Plan.

     19.2 Share Withholding. With respect to withholding required upon the
exercise of Options or SARs, upon the lapse of restrictions on Restricted Stock
and Restricted Stock Units, or upon the achievement of performance goals related
to Performance Shares, or any other taxable event arising as a result of an
Award granted hereunder, Participants may elect, subject to the approval of the
Committee, to satisfy the withholding requirement, in whole or in part, by
having the Company withhold Shares having a Fair Market Value on the date the
tax is to be determined equal to the minimum statutory total tax that could be
imposed on the transaction. All such elections shall be irrevocable, made in
writing, and signed by the Participant, and shall be subject to any restrictions
or limitations that the Committee, in its sole discretion, deems appropriate.

Article 20. Successors

     All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

                                       21

<PAGE>

Article 21. General Provisions

     21.1 Forfeiture Events.

          (a)  The Committee may specify in an Award Agreement that the
               Participant's rights, payments, and benefits with respect to an
               Award shall be subject to reduction, cancellation, forfeiture, or
               recoupment upon the occurrence of certain specified events, in
               addition to any otherwise applicable vesting or performance
               conditions of an Award. Such events may include, but shall not be
               limited to, termination of employment for cause, termination of
               the Participant's provision of services to the Company,
               Affiliate, and/or Subsidiary, violation of material Company,
               Affiliate, and/or Subsidiary policies, breach of noncompetition,
               confidentiality, or other restrictive covenants that may apply to
               the Participant, or other conduct by the Participant that is
               detrimental to the business or reputation of the Company, its
               Affiliates, and/or its Subsidiaries.

          (b)  If the Company is required to prepare an accounting restatement
               due to the material noncompliance of the Company, as a result of
               misconduct, with any financial reporting requirement under the
               securities laws, or if the Participant is one of the persons
               subject to automatic forfeiture under Section 304 of the
               Sarbanes-Oxley Act of 2002, the Participant shall reimburse the
               Company the amount of any payment in settlement of an Award
               earned or accrued during the twelve-month period following the
               first public issuance or filing with the United States Securities
               and Exchange Commission (whichever just occurred) of the
               financial document embodying such financial reporting
               requirement.

     21.2 Legend. The certificates for Shares may include any legend which the
Committee deems appropriate to reflect any restrictions on transfer of such
Shares.

     21.3 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine, the plural shall
include the singular, and the singular shall include the plural.

     21.4 Severability. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

     21.5 Requirements of Law. The granting of Awards and the issuance of Shares
under the Plan shall be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or national securities
exchanges as may be required.

     21.6 Delivery of Title. The Company shall have no obligation to issue or
deliver evidence of title for Shares issued under the Plan prior to:

          (a)  Obtaining any approvals from governmental agencies that the
               Company determines are necessary or advisable; and

                                       22

<PAGE>

          (b)  Completion of any registration or other qualification of the
               Shares under any applicable national or foreign law or ruling of
               any governmental body that the Company determines to be necessary
               or advisable.

     21.7 Inability to Obtain Authority. 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.

     21.8 Investment Representations. The Committee may require any person
receiving Shares pursuant to an Award under this Plan to represent and warrant
in writing that the person is acquiring the Shares for investment and without
any present intention to sell or distribute such Shares.

     21.9 Employees Based Outside of the United States. Notwithstanding any
provision of the Plan to the contrary, in order to comply with the laws in other
countries in which the Company, its Affiliates, and/or its Subsidiaries operate
or have Employees or Directors, the Committee, in its sole discretion, shall
have the power and authority to:

          (a)  Determine which Affiliates and Subsidiaries shall be covered by
               the Plan;

          (b)  Determine which Employees and/or Directors outside the United
               States are eligible to participate in the Plan;

          (c)  Modify the terms and conditions of any Award granted to Employees
               and/or Directors outside the United States to comply with
               applicable foreign laws;

          (d)  Establish subplans and modify exercise procedures and other terms
               and procedures, to the extent such actions may be necessary or
               advisable. Any subplans and modifications to Plan terms and
               procedures established under this Section 21.9 by the Committee
               shall be attached to this Plan document as appendices; and

          (e)  Take any action, before or after an Award is made, that it deems
               advisable to obtain approval or comply with any necessary local
               government regulatory exemptions or approvals.

     Notwithstanding the above, the Committee may not take any actions
hereunder, and no Awards shall be granted, that would violate applicable law.

     21.10 Uncertificated Shares. To the extent that the Plan provides for
issuance of certificates to reflect the transfer of Shares, the transfer of such
Shares may be effected on a noncertificated basis, to the extent not prohibited
by applicable law or the rules of any stock exchange.

     21.11 Unfunded Plan. Participants shall have no right, title, or interest
whatsoever in or to any investments that the Company, and/or its Subsidiaries,
and/or Affiliates may make to aid it in meeting its obligations under the Plan.
Nothing contained in the Plan, and no action taken pursuant to its provisions,

                                       23

<PAGE>

shall create or be construed to create a trust of any kind, or a fiduciary
relationship between the Company and any Participant, beneficiary, legal
representative, or any other person. To the extent that any person acquires a
right to receive payments from the Company, and/or its Subsidiaries, and/or
Affiliates under the Plan, such right shall be no greater than the right of an
unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the
case may be. All payments to be made hereunder shall be paid from the general
funds of the Company, a Subsidiary, or an Affiliate, as the case may be and no
special or separate fund shall be established and no segregation of assets shall
be made to assure payment of such amounts except as expressly set forth in the
Plan.

     21.12 No Fractional Shares. No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award. The Committee shall determine
whether cash, Awards, or other property shall be issued or paid in lieu of
fractional Shares or whether such fractional Shares or any rights thereto shall
be forfeited or otherwise eliminated.

     21.13 Retirement and Welfare Plans. Neither Awards made under the Plan nor
Shares or cash paid pursuant to such Awards, except pursuant to Covered Employee
Annual Incentive Awards, may be included as "compensation" for purposes of
computing the benefits payable to any Participant under the Company's or any
Subsidiary's or Affiliate's retirement plans (both qualified and non-qualified)
or welfare benefit plans unless such other plan expressly provides that such
compensation shall be taken into account in computing a participant's benefit.

     21.14 Nonexclusivity of the Plan. The adoption of this Plan shall not be
construed as creating any limitations on the power of the Board or Committee to
adopt such other compensation arrangements as it may deem desirable for any
Participant.

     21.15 No Constraint on Corporate Action. Nothing in this Plan shall be
construed to: (i) limit, impair, or otherwise affect the Company's or a
Subsidiary's or an Affiliate's right or power to make adjustments,
reclassifications, reorganizations, or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer
all or any part of its business or assets; or, (ii) limit the right or power of
the Company or a Subsidiary or an Affiliate to take any action which such entity
deems to be necessary or appropriate.

     21.16 Governing Law. The Plan and each Award Agreement shall be governed by
the laws of the State of New York, excluding any conflicts or choice of law rule
or principle that might otherwise refer construction or interpretation of the
Plan to the substantive law of another jurisdiction. Unless otherwise provided
in the Award Agreement, recipients of an Award under the Plan are deemed to
submit to the exclusive jurisdiction and venue of the federal or state courts of
New York, to resolve any and all issues that may arise out of or relate to the
Plan or any related Award Agreement.

     22.17 Indemnification. Each person who is or shall have been a member of
the Board, or a Committee appointed by the Board, or an officer of the company
to whom authority was delegated in accordance with Section 3.3 shall be
indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by him or
her in connection with or resulting from any claim, action, suit, or proceeding
to which he or she may be a party or in which he or she may be involved by
reason of any action take or failure to act under the Plan and against and from

                                       24

<PAGE>

any and all amounts paid by him or her in settlement thereof, with the Company's
approval, or paid by him or her in satisfaction of any judgement in any such
action, suit, or proceeding against him or her, provided he or she shall give
the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf,
unless such loss, cost, liability, or expense is a result of his or her own
willful misconduct or except as expressly provided by statute.

     The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the
Company's Certificate of Incorporation or Bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

                                       25EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

     This Employment Agreement (the "Agreement"), is entered into as of November
1, 2004, between LEV PHARMACEUTICALS, INC., a Delaware Company (with its
successors and assigns, referred to as the "Company") and Judson A. Cooper
(referred to as "Cooper").

     WHEREAS, the Company and Cooper desire to enter into an agreement to
provide for Cooper's employment by the Company upon the terms and conditions set
forth in this Agreement

     NOW, THEREFORE, in consideration of the foregoing premises and of the
mutual agreements and covenants hereinafter set forth, the parties hereto agree
to the terms and conditions of this Agreement as follows:

     1. Employment for Term. The Company hereby employs Cooper and Cooper hereby
accepts employment with the Company for the period beginning on November 1, 2004
and ending October 31, 2008. (the "Initial Term"), or upon the earlier
termination of the Term pursuant to Section 6. This Agreement shall be
automatically renewed for additional one-year periods (the "Renewal Terms;"
together with the Initial Term, the "Term") unless either party notifies the
other in writing of its intention not to so renew this Agreement no less than 90
days prior to the expiration of the Initial Term or a Renewal Term. The
termination of Cooper's employment under this Agreement shall end the Term but
shall not terminate Cooper's or the Company's other agreements in this
Agreement, except as otherwise provided herein.

     2. Position and Duties. During the Term, Cooper shall serve as Chairman and
Executive Vice President of the Company. During the Term, Cooper shall also hold
such additional positions and titles as the Board of Directors of the Company
(the "Board") may determine from time to time. During the Term, Cooper shall
devote as much time as is necessary to satisfactorily perform his duties as an
employee of the Company.

     3. Compensation.

     (a) Base Salary. The Company shall pay Cooper a base salary, beginning on
the first day of the Term and ending on the last day of the Term, of not less
than $312,500 per annum, payable at least monthly on the Company's regular pay
cycle for professional employees (the "Base Salary").

     (b) Stock Options. Pursuant to the Company's 2004 Omnibus Incentive
Compensation Plan (the "Plan"), the Company shall grant to Cooper fully-vested
incentive options to purchase 500,000 shares of the Company's Common Stock
exercisable at $0.85 per share (the "Options"). The Options shall expire on
November 1, 2014.

     (c) Annual Increases. The Base Salary shall be increased at the end of each
year of service by the greater of (i) 5% or (ii) a percentage equal to the
increase, if any, in the United States Department of Labor Consumer Price Index
(or comparable index, if available) for the New York metropolitan area over the
previous 12 months.

<PAGE>

     (d) Other and Additional Compensation. The preceding sections establish the
minimum compensation during the Term and shall not preclude the Board from
awarding Cooper a higher salary or any bonuses or stock options in the
discretion of the Board during the Term at any time. The Company will adopt a
bonus plan and Cooper will be eligible to participate in such plan. The Company
shall pay Cooper a monthly car allowance of $500.

     4. Employee Benefits. During the Term, Cooper shall be entitled to the
employee benefits including vacation, 401(k) plan, health plan and other
insurance benefits made available by the Company to any other officers or key
employees of the Company.

     5. Expenses. The Company shall reimburse Cooper for actual out-of-pocket
expenses incurred by him in the performance of his services for the Company upon
the receipt of appropriate documentation of such expenses.

     6. Termination.

     (a) General. The Term shall end immediately upon Cooper's death. The Term
may also end for Cause or Disability, as defined in Section 7.

     (b) Notice of Termination. Promptly after it ends the Term, the Company
shall give Cooper notice of the termination, including a statement of whether
the termination was for Cause or Disability (as defined in Section 7(a) and 7(b)
below). The Company's failure to give notice under this Section 6(b) shall not,
however, affect the validity of the Company's termination of the Term.

     (c) Effective Termination by the Company. If the Company reassigns Cooper's
base of operations outside of New York City, or materially reduces Cooper's
duties during the term, including replacing Cooper as Chief Executive Officer,
then, at his option, Cooper may treat such reduction in duties as a termination
of the Term without Cause by the Company.

     7. Severance Benefits.

     (a) Cause Defined. "Cause" means (i) willful malfeasance or willful
misconduct by Cooper in connection with his employment; (ii) Cooper's gross
negligence in performing any of his duties under this Agreement; (iii) Cooper's
conviction of, or entry of a plea of guilty to, or entry of a plea of nolo
contendre with respect to, any crime other than a traffic violation or
infraction which is a misdemeanor; (iv) Cooper's material breach of any written
policy applicable to all employees adopted by the Company which is not cured to
the reasonable satisfaction of the Company within thirty (30) business days
after notice thereof; or (v) material breach by Cooper of any of his agreements
in this Agreement which is not cured to the reasonable satisfaction of the
Company within thirty (30) business days after notice thereof.

     (b) Disability Defined. "Disability" shall mean Cooper's incapacity due to
physical or mental illness that results in his being substantially unable to
perform his duties hereunder for six consecutive months (or for six months out
of any nine month period). During a period of Disability, Cooper shall continue

                                                                               2

<PAGE>

to receive his base salary hereunder, provided that if the Company provides
Cooper with disability insurance coverage, payments of Cooper's base salary
shall be reduced by the amount of any disability insurance payments received by
Cooper due to such coverage. The Company shall give Cooper written notice of
termination which shall take effect sixty (60) days after the date it is sent to
Cooper unless Cooper shall have returned to the performance of his duties
hereunder during such sixty (60) day period (whereupon such notice shall become
void).

     (c) Termination. If the Company ends the Term for Cause or Disability, or
if Cooper resigns as an employee of the Company for reasons other than a
material breach by the Company of its obligations under this Agreement or a
material reduction of Cooper's duties as provided in Section 6(c), or if Cooper
dies, then the Company shall have no obligation to pay Cooper any amount,
whether for salary, benefits, bonuses, or other compensation or expense
reimbursements of any kind, accruing after the end of the Term, and such rights
shall, except as otherwise required by law, be forfeited immediately upon the
end of the Term, except that payments under Section 3(a) shall continue for the
remainder of the Term unless the Company ends the Term for Cause or if Cooper
resigns for reasons other than a material breach by the Company of its
obligations under this Agreement or a material reduction of his duties as
provided in Section 6(c). If the Company ends the Term without Cause, then the
Company will be obligated to continue to pay Cooper's salary and all other
amounts due hereunder for the remainder of the Term.

     8. Change of Control Payment. The provisions of this paragraph 8 set forth
the terms of an agreement reached between Cooper and the Company regarding
Cooper's rights and obligations upon the occurrence of a "Change in Control" (as
hereinafter defined) of the Company. These provisions are intended to assure and
encourage in advance Cooper's continued attention and dedication to his assigned
duties and his objectivity during the pendency and after the occurrence of any
such Change in Control. These provisions shall apply in lieu of, and expressly
supersede, the provisions of paragraph 7(c) if Cooper's employment is terminated
or Notice of Termination is given ninety (90) days prior to or within eighteen
(18) months after the occurrence of an event constituting a Change in Control.

     (a) Escrow. Within ten (10) days after the occurrence of the first event
constituting a Change in Control (irrespective of whether Cooper has actual
knowledge of such event), the Company shall place immediately negotiable funds
in escrow in an amount equal to Cooper's salary and all other amount due
hereunder for the remainder of the Term, plus such additional amount as equals
the "Gross Up Payment" (as hereinafter defined) thereon (the "Change of Control
Amount"). Such escrow shall be conducted pursuant to a standard escrow agreement
among the Company, Cooper and an independent escrow agent providing for the
timely payment to Cooper of the amounts hold in such escrow in the event Cooper
becomes entitled thereto under the applicable provisions of this Agreement (the
"Escrow Arrangement"). The Escrow Arrangement shall be maintained until the
earlier of (A) nineteen (19) months after the occurrence of an event
constituting a Change in Control or (B) the payment to Cooper of all sums
escrowed.

     (b) Change In Control. If, within 90 days prior to, or within eighteen (18)
months after the occurrence of an event constituting a Change in Control,
Cooper's employment is terminated or a Notice of Termination is given for any

                                                                               3

<PAGE>

reason other than (A) his death, (B) his Disability, or (C) by Cooper without
Cause on the part of the Company, then such termination shall be deemed to be a
"Termination Due to Change in Control (herein so called), in which event the
Company shall pay Cooper, in a lump sum, on or prior to the fifth (5th) day
following the date of termination of the Term:

          (1) an amount equal to the Change of Control Amount (including any
     Gross Up Payment); and

          (2) Cooper's accrued and unpaid base salary.

     (c) Stock Option Floor. Upon the occurrence of the first event constituting
a Change in Control, all stock options and other stock-based grants to Cooper by
the Company shall, irrespective of any provisions of his option agreements,
immediately and irrevocably vest and become exercisable as of the date of such
first event whereupon, at any time during the Option Term as defined in the
option agreements, Cooper or his estate may by five (5) days' advance written
notice given to the Company, and irrespective of whether Cooper is then employed
by the Company or then living, and solely at the election of Cooper or his
estate, require the Company to:

          (1) if the Company is a reporting company under the Securities
     Exchange Act of 1934, as amended, within thirty (30) days of a request by
     Cooper or his estate file and cause to become effective a Form S-8 (or
     other appropriate form) with the Securities and Exchange Commission ("SEC")
     registering for resale all shares underlying stock options granted to
     Cooper and outstanding with all fees and expenses of such filing being paid
     by the Company, or,

          (2) allow Cooper to exercise all or any part of such Stock Options at
     the option prices therefor specified in the grant of the Stock Options.

     In the event the Company does not file and cause to become effective a Form
S-8 (or other appropriate form) with the SEC within the thirty (30) day time
period, the Company shall pay liquidated damages to Cooper or his estate equal
to the greater of (a) the amount equal to the difference between the Market
Price of the Company's common stock and the exercise price of the stock options
multiplied by the aggregate number of stock options outstanding or (b) $500,000.
For purposes of this Section 8(c), Market Price is defined as the average of the
closing bid and ask price of the Company's common stock on the Nasdaq SmallCap
Market or the closing sale price of the common stock on a national exchange, if
listed on such exchange, in each case, on the day prior to the date of the
Company's breach of this Section 8(c).

     (d) Gross Up Payment.

          (1) Excess Parachute Payment. If Cooper incurs the tax (the "Excise
     Tax") imposed by Section 4999 of the Internal Revenue Code of 1986 (the
     "Code") on "Excess Parachute Payments" within the meaning of Section
     28OG(b)(1) of the Code, the Company will pay to Cooper an amount (the

                                                                               4

<PAGE>

     "Gross Up Payment") such that the net amount retained by Cooper, after
     deduction of any Excise Tax on both the Excess Parachute Payment and any
     federal, state and local income tax (together with penalties and interest)
     as well as the Excise Tax upon the payment provided for by this
     subparagraph 8(d)(1), will be equal to the Change of Control Amount.

          (2) Applicable Rates. For purposes of determining the amount of the
     Gross Up Payment, Cooper will be deemed to pay federal income taxes at the
     highest marginal rate of federal income taxation in the calendar year in
     which the Gross Up Payment is to be made and state and local income taxes
     at the highest marginal rates of taxation in the state and locality where
     taxes thereon are lawfully due, net of the maximum reduction (if any) in
     federal income taxes that could be obtained from deduction of deductible
     state and local taxes.

          (3) Determination of Gross Up Payment Amount. The determination of
     whether the Excise Tax is payable and the amount thereof will be based upon
     the opinion of tax counsel selected by Cooper and reasonably approved by
     the Company, which approval will not be unreasonably withheld or delayed.
     If such opinion is not finally accepted by the Internal Revenue Service (or
     state and local taxing authorities), then appropriate adjustments to the
     Excise Tax will be computed and additional Gross Up Payments will be made
     in the manner provided by this subparagraph (d).

          (4) Payment. The Company will pay the estimated amount of the Gross Up
     Payment in cash to Cooper at the time specified in this Agreement. Cooper
     and the Company agree to reasonably Cooperate in the determination of the
     actual amount of the Gross Up Payment. Further, Cooper and the Company
     agree to make such adjustments to the estimated amount of the Gross Up
     Payment as may be necessary to equal the actual amount of the Gross Up
     Payment, which in the case of the Company will refer to refunds of prior
     overpayments by the Company and in the case of Cooper will refer to
     additional payments to Cooper to make up for prior underpayments.

     (e) Definitions. For purposes of this paragraph 8, the following terms
shall have the following meanings:

     "Change in Control" shall mean any of the following:

          (1) the acquisition by any individual, entity, or group (within the
     meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (the
     "Acquiring Person"), other than the Company, or any of its Subsidiaries or
     any Excluded Group (as defined herein), of beneficial ownership (within the
     meaning of Rule 13d-3- promulgated under the Exchange Act) of 35% or more
     of the combined voting power or economic interests of the then outstanding
     voting securities of the Company entitled to vote generally in the election
     of directors; provided however, that any transfer from Judson Cooper or
     Joshua Cooper (the "Excluded Group") will not result in a Change in Control
     if such transfer was part of a series of related transactions the effect of
     which, absent the transfer to such Acquiring Person by the Excluded Group,
     would not have resulted in the acquisition by such Acquiring Person of 35%
     or more of the combined voting power or economic interests of the then
     outstanding voting securities; or

                                                                               5

<PAGE>

          (2) during any period of 12 consecutive months after the date of this
     Amendment, the individuals who at the beginning of any such 12-month period
     constituted a majority of the Directors (the "Incumbent Non-Investor
     Majority") cease for any reason to constitute at least a majority of such
     Directors; provided that (i) any individual becoming a director whose
     election, or nomination for election by the Company's stockholders, was
     approved by a vote of the stockholders having the right to designate such
     director and (ii) any director whose election to the Board or whose
     nomination for election by the stockholders of the Company was approved by
     the requisite vote of directors entitled to vote on such election or
     nomination in accordance with the Restated Certificate of InCompany of the
     Company, shall, in each such case, be considered as though such individual
     were a member of the Incumbent Non-Investor Majority, but excluding, as a
     member of the Incumbent Non-Investor Majority, any such individual whose
     initial assumption of office is in connection with an actual or threatened
     election contest relating to the election of the directors of the Company
     (as such terms are used in Rule 14a-2 of Regulation 14A promulgated under
     the Exchange Act) and further excluding any person who is an affiliate or
     associate of an Acquiring Person having or proposing to acquire beneficial
     ownership of 25% or more of the combined voting power of the then
     outstanding voting securities of the Company entitled to vote generally in
     the election of directors; or

          (3) the approval by the stockholders of the Company of a
     reorganization, merger or consolidation, in each case, with respect to
     which all or substantially all of the individuals and entities who were the
     respective beneficial owners of the voting securities of the Company
     immediately prior to such reorganization, merger, or consolidation do not,
     following such reorganization, merger, or consolidation, beneficially own,
     directly or indirectly, more than 50% of the combined voting power of the
     then outstanding voting securities entitled to vote generally in the
     election of directors of the Company resulting from such reorganization,
     merger, or consolidation; or

          (4) the sale or other disposition of assets representing 50% or more
     of the assets of the Company in one transaction or series of related
     transactions not initiated or commenced by any person within the Excluded
     Group; or

          (5) a "Fundamental Change in Business" as hereinafter defined; or

          (6) a "Hostile Takeover" as hereinafter defined is declared.

          "Fundamental Change in Business" shall mean that the Company, at any
     time, no longer spends at least fifty percent (50%) of its annual budget on
     activities related to biotechnology or pharmaceuticals.

          "Hostile Takeover" shall mean any Change in Control which at any time
     is declared by at least a majority of the Board, directly or indirectly, to
     be hostile or not in the best interests of the Company, or in which an

                                                                               6

<PAGE>

     attempt is made (irrespective of whether successful) to wrest control away
     from the incumbent management of the Company, or with respect to which the
     Board makes any effort to resist.

9. Confidentiality, Ownership, and Covenants.

     (a) "Company Information" and "Inventions" Defined. "Company Information"
means all information, knowledge or data of or pertaining to (i) the Company,
its employees and all work undertaken on behalf of the Company, and (ii) any
other person, firm, Company or business organization with which the Company may
do business during the Term, that is not in the public domain (and whether
relating to methods, processes, techniques, discoveries, pricing, marketing or
any other matters). "Inventions" collectively refers to any and all inventions,
trade secrets, ideas, processes, formulas, source and object codes, data,
programs, other works of authorship, know-how, improvements, research,
discoveries, developments, designs, and techniques regarding any of the
foregoing.

     (b) Confidentiality.

          (i)  Cooper hereby recognizes that the value of all trade secrets and
               other proprietary data and all other information of the Company
               not in the public domain disclosed by the Company in the course
               of his employment with the Company may be attributable
               substantially to the fact that such confidential information is
               maintained by the Company in strict confidentiality and secrecy
               and would be unavailable to others without the expenditure of
               substantial time, effort or money. Cooper, therefore, except as
               provided in the next two sentences, covenants and agrees that all
               Company Information shall be kept secret and confidential at all
               times during the Term and for the five (5) year period after the
               end of the Term and shall not be used or divulged by him outside
               the scope of his employment as contemplated by his Agreement,
               except as the Company may otherwise expressly authorize by action
               of the Board. In the event that Cooper is requested in a
               judicial, administrative or governmental proceeding to disclose
               any of the Company Information, Cooper will promptly so notify
               the Company so that the Company may seek a protective order of
               other appropriate remedy and/or waive compliance with this
               Agreement. If disclosure of any of the Company Information is
               required, Cooper may furnish the material so required to be
               furnished, but Cooper will furnish only that portion of the
               Company Information that legally is required.

          (ii) Cooper also hereby agrees to keep the terms of this Agreement
               confidential to the same extent that the Company maintains such
               confidentiality (except with regard to any disclosure by the
               Company required under applicable securities laws).

     (c) Ownership of Inventions, Patents and Technology. Cooper hereby assigns
to the Company all of Cooper's rights (including patent rights, copyrights,
trade secret rights, and all other rights throughout the world), title and
interest in and to Inventions, whether or notpatentable or registrable under

                                                                               7

<PAGE>

copyright or similar statutes, made or conceived or reduced to practice or
learned by Cooper, either alone or jointly with others, during the course of the
performance of services for the Company. Cooper shall also assign to, or as
directed by, the Company, all of Cooper's right, title and interest in and to
any and all Inventions, the full title to which is required to be in the United
States government of any of its agencies. The Company shall have all right,
title and interest in all research and work product produced by Cooper as an
employee of the Company, including, but not limited to, all research materials
and lab books.

     (d) Remedies. Cooper hereby acknowledges that the covenants and agreements
contained in Section 9 are reasonable and valid in all respects and that the
Company is entering into this Agreement, inter alia, on such acknowledgement. If
Cooper breaches, or threatens to commit a breach, of any of the Restrictive
Covenants, the Company shall have the following rights and remedies, each of
which rights and remedies shall be independent of the other and severally
enforceable, and all of which rights and remedies shall be in addition to, and
not in lieu of, any other rights and remedies available to the Company under law
or in equity: (i) the right and remedy to have the Restrictive Covenants
specifically enforced by any court having equity jurisdiction, it being
acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and that money damages will not provide an
adequate remedy to the Company; (ii) the right and remedy to require Cooper to
account for and pay over to the Company such damages as are recoverable at law
as the result of any transactions constituting a breach of any of the
Restrictive Covenants; (iii) if any court determines that any of the Restrictive
Covenants, or any part thereof, is invalid or unenforceable, the remainder of
the Restrictive Covenants shall not thereby be affected and shall be given full
effect, without regard to the invalid portions; and (iv) if any court construes
any of the Restrictive Covenants, or any part thereof, to be unenforceable
because of the duration of such provision or the area covered thereby, such
court shall have the power to reduce the duration or area of such provision and,
in its reduced form, such provision shall then be enforceable and shall be
enforced.

     (e) Jurisdiction. The parties intend to and hereby confer jurisdiction to
enforce the Restrictive Covenants upon the courts of any jurisdiction within the
geographical scope of such Covenants. If the courts of any one or more such
jurisdictions hold the Restrictive Covenants wholly unenforceable by reason of
the breadth of such scope or otherwise, it is the intention of the parties that
such determination not bar or in any way affect the Company's right to the
relief provided above in the courts of any other jurisdiction, within the
geographical scope of such Covenants, as to breaches of such Covenants in such
other respective jurisdiction such Covenants as they relate to each jurisdiction
being, for this purpose, severable into diverse and independent covenants.

10. Successors and Assigns.

     (a) Cooper. This Agreement is a personal contract, and the rights and
interests that the Agreement accords to Cooper may not be sold, transferred,
assigned, pledged, encumbered, or hypothecated by him. All rights and benefits
of Cooper shall be for the sole personal benefit of Cooper, and no other person
shall acquire any right, title or interest under this Agreement by reason of any
sale, assignment, transfer, claim or judgement or bankruptcy proceedings against
Cooper. Except as so provided, this Agreement shall inure to the benefit of and
be binding upon Cooper and his personal representatives, distributes and
legatees.

                                                                               8

<PAGE>

     (b) The Company. This Agreement shall be binding upon the Company and inure
to the benefit of the Company and of its successors and assigns, including (but
not limited to) any Company that may acquire all or substantially all of the
Company's assets or business or into or with which the Company may be
consolidated or merged. In the event that the Company sells all or substantially
all of its assets, merges or consolidates, otherwise combines or affiliates with
another business, dissolves and liquidates, or otherwise sells or disposes of
substantially all of its assets and Cooper does not elect to treat any such
transaction as a termination by the Company without Cause pursuant to Section
7(c), then this Agreement shall continue in full force and effect. The Company's
obligations under this Agreement shall cease, however, if the successor to, the
purchaser or acquirer either of the Company or of all or substantially all of
its assets, or the entity with which the Company has affiliated, shall assume in
writing the Company's obligations under this Agreement (and deliver and executed
copy of such assumption to Cooper), in which case such successor or purchaser,
but not the Company, shall thereafter be the only party obligated to perform the
obligations that remain to be performed on the part of the Company under this
Agreement.

11. Entire Agreement. This Agreement represents the entire agreement between the
parties concerning Cooper's employment with the Company and supersedes all prior
negotiations, discussions, understanding and agreements, whether written or
oral, between Cooper and the Company relating to the subject matter of this
Agreement.

12. Amendment or Modification, Waiver. No provision of this Agreement may be
amended or waived unless such amendment or waiver is agreed to in writing signed
by Cooper and by a duly authorized officer of the Company. No waiver by any
party to this Agreement or any breach by another party of any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of a similar or dissimilar condition or provision at the same time, any
prior time or any subsequent time.

13. Notices. Any notice to be given under this Agreement shall be in writing and
delivered personally or sent by overnight courier or registered or certified
mail, postage prepaid, return receipt requested, addressed to the party
concerned at the address indicated below, or to such other address of which such
party subsequently may give notice in writing:

     If to Cooper:              61 Banksville Road
                                Armonk, NY 10504

     If to the Company:         122 East 42nd Street
                                Suite 2606
                                New York, NY 10168

                                                                               9

<PAGE>

Any notice delivered personally or by overnight courier shall be deemed given on
the date delivered and any notice sent by registered or certified mail, postage
prepaid, return receipt requested, shall be deemed given on the date mailed.

14. Severability. If any provision of this Agreement or the application of any
such provision to any party or circumstances shall be determined by any court of
competent jurisdiction to be invalid and unenforceable to any extent, the
remainder of this Agreement or the application of such provision to such person
or circumstances other than those to which it is so determined to be invalid and
unenforceable shall not be affected, and each provision of this Agreement shall
be validated and shall be enforced to the fullest extent permitted by law. If
for any reason any provision of this Agreement containing restrictions is held
to cover an area or to be for a length of time that is unreasonable or in any
other way is construed to be too broad or to any extent invalid, such provision
shall not be determined to be entirely null, void and of no effect; instead, it
is the intention and desire of both the Company and Cooper that, to the extent
that the provision is or would be valid or enforceable under applicable law, any
court of competent jurisdiction shall construe and interpret or reform this
Agreement to provide for a restriction having the maximum enforceable area, time
period and such other constraints or conditions (although not greater than those
contained currently contained in this Agreement) as shall be valid and
enforceable under the applicable law.

17. Survivorship. The respective rights and obligations of the parties hereunder
shall survive any termination of this Agreement to the extent necessary to the
intended preservation of such rights and obligations.

18. Headings. All descriptive headings of sections and paragraphs in this
Agreement are intended solely for convenience of reference, and no provision of
this Agreement is to be construed by reference to the heading of any section or
paragraph.

19. Withholding Taxes. All salary, benefits, reimbursements and any other
payments to Cooper under this Agreement shall be subject to all applicable
payroll and withholding taxes and deductions required by any law, rule or
regulation of and federal, state or local authority.

20. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed to be an original but all of which together
constitute one and same instrument.

21. Applicable Law; Arbitration. The validity, interpretation and enforcement of
this Agreement and any amendments or modifications hereto shall be governed by
the laws of the State of New York, as applied to a contract executed within and
to be performed in such State. The parties agree that any disputes shall be
definitively resolved by binding arbitration before the American Arbitration
Association in New York, New York and consent to the jurisdiction to the federal
courts of the Southern District of New York or, if there shall be no
jurisdiction, to the state courts located in New York County, New York, to
enforce any arbitration award rendered with respect thereto. Each party shall
choose one arbitrator and the two arbitrators shall choose a third arbitrator.
All costs and fees related to such arbitration (and judicial enforcement
proceedings, if any) shall be borne by the unsuccessful party.

                                                                              10

<PAGE>

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

                                            LEV PHARMACEUTICALS, INC.,

                                            By:  /s/  Joshua D. Schein
                                               --------------------------------
                                                      Joshua D. Schein
                                                      Chief Executive Officer

                                            /s/  Judson A. Cooper
                                            -----------------------------------
                                                 Judson A. Cooper

                                                                              11

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