Document:

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                                                                    EXHIBIT 10.4

                        SETTLEMENT AGREEMENT AND RELEASE

                                 BY AND BETWEEN

                         SPECTRUM PHARMACEUTICALS, INC.

                                       AND

                             SCO FINANCIAL GROUP LLC

                               September 30, 2004

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                           <C>
1.       Definitions........................................................   1

2.       Settlement Terms...................................................   2

         (a)      Termination of Letter Agreement...........................   2
         (b)      Settlement Payment........................................   2
         (c)      The Closing...............................................   2
         (d)      Deliveries at the Closing.................................   2

3.       Representations and Warranties.....................................   3

         (a)      Representations and Warranties of the Company.............   3
         (b)      Representations and Warranties of SCO.....................   3

4.       Releases...........................................................   6

         (a)      SCO Release...............................................   6
         (b)      Company Release...........................................   6
         (c)      General Release...........................................   6
         (d)      Representations and Warranties............................   6

5.       Enforcement of Releases............................................   7

6.       Compromise.........................................................   7

7.       Advice of Counsel..................................................   7

8.       Registration Rights................................................   7

         (a)      Piggy-Back Registrations..................................   7
         (b)      Demand Registration.......................................   8
         (c)      Obligations of the Company................................   9
         (d)      Furnish Information.......................................  10
         (e)      Expenses of Registration..................................  10
         (f)      Delay of Registration.....................................  10
         (g)      Indemnification...........................................  10
         (h)      Assignment of Registration Rights.........................  13
         (i)      Termination of Registration Rights........................  13

9.       Survival of Representations and Warranties.........................  13

10.      Miscellaneous......................................................  13

         (a)      Further Assurances........................................  13
         (b)      Recapitalizations, Etc....................................  13
         (c)      Delays or Omissions; Remedies Cumulative..................  13
         (d)      No Third-Party Beneficiaries..............................  14
         (e)      Successors and Assigns....................................  14
         (f)      Entire Agreement..........................................  14
</TABLE>

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<TABLE>
<S>                                                                           <C>
         (g)      Counterparts..............................................  14
         (h)      Headings..................................................  14
         (i)      Notices...................................................  14
         (j)      Governing Law.............................................  15
         (k)      Amendments................................................  16
         (l)      Severability..............................................  16
         (m)      Expenses..................................................  16
         (n)      Construction..............................................  16
</TABLE>

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                        SETTLEMENT AGREEMENT AND RELEASE

      This Settlement Agreement and Release (the "Agreement") is made and
entered into as of September 30, 2004, by and between Spectrum Pharmaceuticals,
Inc., a Delaware corporation (the "Company"), and SCO Financial Group LLC, a
Delaware limited liability company ("SCO"). The Company and SCO are referred to
collectively herein as the "Parties."

      WHEREAS, the Company and SCO are parties to that certain Letter Agreement
("Letter Agreement") dated as of February 1, 2003, pursuant to which SCO agreed
to provide services as a financial advisor to the Company;

      WHEREAS, the Company and SCO desire to terminate substantially all
remaining obligations under the Letter Agreement and, the Company desires to
give and SCO desires to receive a cash payment and a warrant to purchase shares
of common stock of the Company in full satisfaction of all amounts that may be
or may at any time become owed by the Company to SCO under the Letter Agreement,
other than amounts that may become owing after the date hereof pursuant to the
indemnification paragraph of the Letter Agreement.

      Now, therefore, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties, and
covenants herein contained, the Parties agree as follows.

      1. Definitions.

      "Agreement" means this agreement.

      "Closing" has the meaning set forth in Section 2(c) below.

      "Closing Date" has the meaning set forth in Section 2(c) below.

      "Common Stock" means the Company's common stock, $.001 par value per
share.

      "Company" has the meaning set forth in the preface above.

      "Designee" has the meaning set forth in Section 2(b) below.

      "Exchange Act" has the meaning set forth in Section 8(g)(i) below.

      "Letter Agreement" has the meaning set forth in the preface above.

      "Parties" has the meaning set forth in the preface above.

      "person(s)" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department, agency, or political
subdivision thereof).

      "Register," "registered," and "registration" refer to a registration
effected by preparing and filing a registration statement or similar document in
compliance with the Securities Act and the declaration or ordering of
effectiveness of such registration statement or document.

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      "SEC" means the Securities and Exchange Commission or any other federal
agency at the time administering the Securities Act.

      "Securities" means the Warrant and the Warrant Shares, as set forth below.

      "Securities Act" means the Securities Act of 1933, as amended.

      "Warrant" has the meaning set forth in Section 2(b) below.

      "Warrant Shares" means the shares of common stock of the Company issuable
upon exercise of the Warrant.

      "SCO" has the meaning set forth in the preface above.

      2. Settlement Terms.

            (a) Termination of Letter Agreement. Upon execution of this
Agreement by all Parties hereto, the Letter Agreement shall terminate and be of
no further force or effect, and neither Party shall have any further obligation
to the other thereunder or with respect thereto, including, without limitation,
any obligations under provisions of the Letter Agreement that purport to have
effect following the termination of the Letter Agreement; provided that,
notwithstanding the foregoing, this Agreement shall not terminate the
obligations under the indemnification paragraph of the Letter Agreement.

            (b) Settlement Payment. The Company agrees to pay SCO cash in the
amount of $1,075,000 and issue to SCO and its designees (each, a "Designee") one
or more five-year warrants to purchase up to an aggregate of 100,000 shares of
the Company's common stock, par value $.001 per share, at an exercise price of
$10.00 per share, each such warrant shall be in the form attached hereto as
Exhibit A and shall be exercisable after April 21, 2005 (the "Warrant"), at the
Closing, in full satisfaction of all amounts and obligations that may be owed or
may at any time become owed by the Company to SCO under or in connection with
the Letter Agreement, other than amounts that may become owing after the date
hereof pursuant to the indemnification paragraph of the Letter Agreement.

            (c) The Closing. The closing of the transactions contemplated by
this Agreement (the "Closing") shall take place upon the date of the signing of
this Agreement by all Parties (the "Closing Date").

            (d) Deliveries at the Closing. At the Closing, (i) the Parties will
exchange signed copies of this Agreement, (ii) SCO shall deliver to the Company
an investment representation statement in the form attached hereto as Exhibit B
executed by each of its Designees and (iii) the Company will deliver to SCO the
Warrants, registered in the name of SCO and its designees in the amounts
specified by SCO in writing. Concurrently with the Closing, the Company will
deliver cash in the amount of $1,075,000 by wire transfer to such account as SCO
may specify in writing prior to the Closing.

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      3. Representations and Warranties.

            (a) Representations and Warranties of the Company. The Company
represents and warrants to SCO that the statements contained in this Section
3(a) are correct and complete as of the date of this Agreement.

                  (i) Organization of the Company. The Company is a corporation
            duly organized, validly existing, and in good standing under the
            laws of Delaware.

                  (ii) Authorization of Transaction. The Company has full power
            and authority (including full corporate power and authority) to
            execute and deliver this Agreement and to perform its obligations
            hereunder. All action of the Company necessary to authorize the
            execution and delivery of this Agreement and performance by the
            Company of all of its obligations hereunder, including, without
            limitation, the issuance of the Warrant and the Warrant Shares upon
            exercise of the Warrant, has been taken, and this Agreement
            constitutes the valid and legally binding obligation of the Company,
            enforceable in accordance with its terms and conditions. The Warrant
            Shares have been duly reserved for issuance by the Company. Except
            (i) any filings required under Regulation D under the Securities Act
            or any state securities laws that are permitted to be made after the
            date hereof, and (ii) as set forth in Section 8 below, the Company
            need not give any notice to, make any filing with, or obtain any
            authorization, consent, or approval of any government or
            governmental agency in order to consummate the transactions
            contemplated by this Agreement.

                  (iii) Noncontravention. Neither the execution and the delivery
            of this Agreement, nor the consummation of the transactions
            contemplated hereby, will violate any constitution, statute,
            regulation, rule, injunction, judgment, order, decree, ruling,
            charge, or other restriction of any government, governmental agency,
            or court to which the Company is subject, or any provision of its
            charter.

                  (iv) Brokers' Fees. The Company has no liability or obligation
            to pay any fees or commissions to any broker, finder, or agent with
            respect to the transactions contemplated by this Agreement for which
            SCO could become liable or obligated.

            (b) Representations and Warranties of SCO. SCO represents and
warrants to the Company that the statements contained in this Section 3(b) are
correct and complete as of the date of this Agreement.

                  (i) Organization of SCO. SCO is a limited liability company
            duly organized, validly existing, and in good standing under the
            laws of Delaware.

                  (ii) Authorization of Transaction. SCO has full power and
            authority (including full limited liability company power and
            authority) to execute and deliver this Agreement and to perform its
            obligations hereunder. All action of SCO necessary to authorize the
            execution and delivery of this Agreement and

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            performance by SCO of all of its obligations hereunder has been
            taken, and this Agreement constitutes the valid and legally binding
            obligation of SCO, enforceable in accordance with its terms and
            conditions. SCO need not give any notice to, make any filing with,
            or obtain any authorization, consent, or approval of any government
            or governmental agency in order to consummate the transactions
            contemplated by this Agreement.

                  (iii) Noncontravention. Neither the execution and the delivery
            of this Agreement, nor the consummation of the transactions
            contemplated hereby, will violate any constitution, statute,
            regulation, rule, injunction, judgment, order, decree, ruling,
            charge, or other restriction of any government, governmental agency,
            or court to which SCO is subject or any provision of its operating
            agreement.

                  (iv) Brokers' Fees. SCO has no liability or obligation to pay
            any fees or commissions to any broker, finder, or agent with respect
            to the transactions contemplated by this Agreement for which the
            Company could become liable or obligated.

                  (v) Business or Financial Expertise. SCO has either (i) a
            pre-existing personal or business relationship with the Company that
            is of a nature and duration which enables SCO to be aware of the
            character, business acumen and general business and financial
            circumstances of the Company or (ii) by reason of SCO's business or
            financial expertise, the capacity to protect its own interests in
            connection with its acquisition of the Securities. SCO is an
            "accredited investor" as defined in Rule 501 of Regulation D of the
            Securities Act of 1933, as amended (the "Securities Act").

                  (vi) Awareness; No Distribution. SCO has acquired sufficient
            information about the Company to reach an informed and knowledgeable
            decision to acquire the Securities. SCO is acquiring these
            Securities for its own account for investment purposes only and not
            with a view to, or for the resale in connection with, any
            "distribution" thereof for purposes of the Securities Act. SCO
            recognizes that the Securities are a speculative investment
            involving a high degree of risk of loss and that SCO could lose the
            entire amount of its investment. SCO is able to bear the economic
            risk of this investment and at the present time could afford a
            complete loss of this investment.

                  (vii) No Registration. SCO understands that the Securities
            will be issued without registration under the Securities Act and
            without qualification and/or registration under applicable state
            securities laws ("Blue Sky Laws") in reliance upon specific
            exemptions therefrom, which exemptions depend upon, among other
            things, the bona fide nature of its investment intent as expressed
            herein. In this connection, SCO understands that, in the view of the
            SEC, the statutory basis for such exemption may be unavailable if
            its representations were predicated solely upon a present intention
            to hold the Securities for the minimum capital gains period
            specified under tax statutes, for a deferred sale, for or until an

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            increase or decrease in the market price of the Securities, or for a
            period of one year or any other fixed period in the future.

                  (viii) Legend. SCO further understands that the Securities
            must be held indefinitely unless subsequently registered and/or
            qualified under the Securities Act and under the Blue Sky Laws or
            unless an exemption from registration and/or qualification is
            otherwise available. In addition, SCO understands that the
            certificate evidencing the Securities will be imprinted with a
            legend in substantially the form as follows which prohibits the
            transfer of the Securities unless they are registered and/or
            qualified or such registration and/or qualification is not required
            in the opinion of counsel for SCO.

            THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
            EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
            RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER SECURITIES ACT OF
            1933, AS AMENDED, AND MAY NOT BE OFFERED, SOLD, ASSIGNED OR
            TRANSFERRED, IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
            UNDER SAID ACT OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF
            COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION
            UNDER SAID ACT IS NOT REQUIRED.

                  (ix) Rule 144. SCO is aware of the provisions of Rule 144,
            promulgated under the Securities Act, which, in substance, permits
            limited public resale of "restricted securities" acquired, directly
            or indirectly, from the issuer thereof (or from an affiliate of such
            issuer), in a non-public offering subject to the satisfaction of
            certain conditions. SCO understands that the Securities constitute
            "restricted securities" for the purposes of Rule 144.

                  (x) No Public Market. SCO further understands that at the time
            it wishes to sell the Securities there may be no public market upon
            which to make such a sale.

                  (xi) Risk. SCO further understands that in the event all of
            the requirements of Rule 144 are not satisfied, registration under
            the Securities Act, compliance with Regulation A, or some other
            registration exemption will be required; and that, notwithstanding
            the fact that Rule 144 is not exclusive, the Staff of the SEC has
            expressed its opinion that persons proposing to sell private
            placement securities other than in a registered offering and
            otherwise than pursuant to Rule 144 will have a substantial burden
            of proof in establishing that an exemption from registration is
            available for such offers or sales, and that such persons and their
            respective brokers who participate in such transactions do so at
            their own risk.

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      4. Releases.

            (a) SCO Release. For good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, SCO and its heirs, successors
and assigns do hereby release and forever discharge the Company, together with
its affiliates, employees, agents, representatives, partners, shareholders,
officers and directors, successors and assigns (collectively, the "Company
Parties") of and from all common law and statutory claims, demands, damages,
debts, losses, actions and causes of action, suits, rights, liabilities,
contracts, duties and obligations, of any kind and nature whatsoever, whether
known or unknown, accrued or to accrue, contingent or liquidated (collectively
"Claims"), that SCO had, now has or may have against any Company Parties,
arising from or in connection with the Letter Agreement, other than claims for
indemnification arising after the date of this Agreement under the terms of the
Letter Agreement.

            (b) Company Release. For good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and its
heirs, successors and assigns do hereby release and forever discharge SCO,
together with its affiliates, employees, agents, representatives, partners,
shareholders, officers and directors, successors and assigns (collectively, the
"SCO Parties") of and from all common law and statutory claims, demands,
damages, debts, losses, actions and causes of action, suits, rights,
liabilities, contracts, duties and obligations, of any kind and nature
whatsoever, whether known or unknown, accrued or to accrue, contingent or
liquidated (collectively "Claims"), that the Company had, now has or may have
against any SCO Parties, arising from or in connection with the Letter
Agreement.

            (c) General Release. It is the intention of SCO and the Company in
providing these releases that the same shall be effective as a bar to each and
every claim, demand and cause of action hereinabove specified; and in
furtherance of this intention, SCO and the Company hereby expressly waive any
and all rights and benefits conferred upon it by the provisions of Section 1542
of the California Civil Code and expressly agree that the above releases are
intended to and do extend to and cover claims of the type referred to in said
Section 1542, which reads as follows:

            "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
            CREDITOR DOES NOT KNOW OR EXPECT TO EXIST IN HIS FAVOR AT
            THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM
            MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
            DEBTOR."

            SCO and the Company expressly consent that the above releases shall
be given full force and effect according to each and all of their express terms
and provisions, including as well those relating to the unknown and unsuspected
claims, demands and causes of action hereinabove specified.

            (d) Representations and Warranties. Each of SCO and the Company
hereby represents and warrants to the other Party that it is the current legal
and beneficial owner of all Claims released hereby and has not assigned, pledged
or contracted to assign or pledge any such Claim to any other person.

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      5. Enforcement of Releases. The releases set forth in Section 4 above may
be pleaded as the full and complete defense to, and as a basis for an injunction
against, any action, suit or other proceeding which may be instituted,
prosecuted or attempted with respect to any Claim. If SCO or the Company brings
an action in respect of any Claim released hereby, the other Party shall be
entitled to recover its costs and expenses, including court costs and attorneys'
fees, if any, incurred in connection with such suit, including appeals
therefrom, whether or not such action is prosecuted to final judgment.

      6. Compromise. The Parties hereto acknowledge and agree that this
Agreement is entered into as a compromise settlement which is not in any respect
or for any purpose to be deemed or construed as an admission or concession of
any liability whatsoever on the part of any party hereto.

      7. Advice of Counsel. The Parties have carefully and completely read this
Agreement, have not relied upon any representations or warranties of the other
party (except as set forth in this Agreement) in signing it, have had an
opportunity to review it with their attorneys, and are satisfied they understand
its terms.

      8. Registration Rights.

            (a) Piggy-Back Registrations. Subject to the limitations imposed
under any agreement to which the Company is a party as of the date hereof, if at
any time when there is not an effective Registration Statement covering all of
the Warrant Shares, the Company shall determine to prepare and file with the SEC
a registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities
Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other employee benefit
plans, the Company shall send to SCO written notice of such determination and,
if within seven (7) business days after receipt of such notice, SCO shall so
request in writing, the Company will cause the registration under the Securities
Act of all Warrant Shares which the Company has been so requested to register by
SCO, which may include Warrant Shares held by any of the Designees, to the
extent required to permit the disposition of the Warrant Shares so to be
registered and to the extent that such Warrant Shares are then eligible for
inclusion in such registration under the Securities Act, provided that if at any
time after giving written notice of its intention to register any securities and
prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to
register or to delay registration of such securities, the Company may, at its
election, give written notice of such determination to SCO and, thereupon, (i)
in the case of a determination not to register, shall be relieved of its
obligation to register any Warrant Shares in connection with such registration,
and (ii) in the case of a determination to delay registering, shall be permitted
to delay registering any Warrant Shares being registered pursuant to this
Section for the same period as the delay in registering such other securities.
In the case of an underwritten public offering, if the managing underwriter(s)
or underwriter(s) should reasonably object to the inclusion of the Warrant
Shares in such registration statement, then if the Company after consultation
with the managing underwriter should reasonably determine that the inclusion of
such Warrant Shares, would materially adversely affect the offering contemplated
in

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such registration statement, and based on such determination recommends
inclusion in such registration statement of fewer or none of the Warrant Shares,
then (x) the number of Warrant Shares included in such registration statement
shall be reduced, if the Company after consultation with the underwriter(s)
recommends the inclusion of fewer Warrant Shares, or (y) none of the Warrant
Shares shall be included in such registration statement, if the Company after
consultation with the underwriter(s) recommends the inclusion of none of such
Warrant Shares; provided, however, that if securities are being offered for the
account of other persons or entities as well as the Company, such reduction
shall not represent a greater fraction of the number of Warrant Shares intended
to be offered by SCO and its Designees than the fraction of similar reductions
imposed on such other persons or entities (other than the Company). The right of
SCO and its Designees to participate in an underwritten public offering
hereunder shall be conditioned upon SCO and any participating Designees entering
into the underwriting agreement and lock-up agreement with the representative of
the underwriter or underwriters on the same terms as required of other selling
securities holders in such offering that are not affiliated with the Company.

            (b) Demand Registration.

                  (i) If, at any time after the first anniversary of the date of
            this Agreement when there is not an effective Registration Statement
            covering all of the Warrant Shares, SCO shall request in writing
            that the Company register for resale any of the Warrant Shares,
            which may include Warrant Shares held by any of the Designees, then
            the Company shall as soon as practicable, and in any event within
            sixty (60) days of the receipt of such request, prepare and file
            with the SEC a registration statement on Form S-3 under the
            Securities Act or its then equivalent covering all Warrant Shares
            which SCO shall have requested to be registered, to the extent that
            such Warrant Shares are then eligible for inclusion in such a
            registration statement under the Securities Act, and the Company
            shall use its commercially reasonable efforts to cause such
            registration statement to be declared effective by the SEC as soon
            as practicable, but in no event later than one hundred fifty (150)
            days after such request.

                  (ii) If SCO or any of the Designees intends to distribute the
            Warrant Shares covered by SCO's request by means of an underwriting,
            SCO shall so advise the Company as a part of its request made
            pursuant to Section 8(b). The underwriter will be selected by the
            SCO subject to the approval of the Company, which approval may be
            withheld by the Company in its sole discretion. In such event, the
            right of any Designee to include such Designee's Warrant Shares in
            such registration shall be conditioned upon such Designee's
            participation in such underwriting and the inclusion of such
            Designee's Warrant Shares in the underwriting to the extent provided
            herein. All Designees proposing to distribute their securities
            through such underwriting shall enter into an underwriting agreement
            in customary form with the underwriter or underwriters selected for
            such underwriting. Notwithstanding any other provision of this
            Section 8, if the underwriter advises SCO in writing that marketing
            factors require a limitation of the number of shares to be
            underwritten, then SCO shall so advise all Designees

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            which would otherwise be underwritten pursuant hereto, and the
            number of Warrant Shares that may be included in the underwriting
            shall be allocated among all Designees, including SCO, in proportion
            (as nearly as practicable) to the number of Warrant Shares owned by
            each holder; provided, however, that the number of Warrant Shares
            held by SCO and the Designees to be included in such underwriting
            shall not be reduced unless all other securities are first entirely
            excluded from the underwriting. To facilitate the allocation of
            shares in accordance with the above provisions, the Company or the
            underwriters may round the number of shares allocated to any
            Designee to the nearest 100 shares.

                  (iii) The Company shall not be obligated to effect, or to take
            any action to effect, any registration under this Section 8(b) after
            the Company has effected one registration pursuant to this Section
            8(b) and such registration has been declared or ordered effective
            and all Warrant Shares requested to be included therein have been so
            included.

            (c) Obligations of the Company. Following the effectiveness of any
registration statement covering the resale of Warrant Shares, the Company shall:

                  (i) Furnish to SCO such numbers of copies of a prospectus,
            including a preliminary prospectus, in conformity with the
            requirements of the Securities Act, and such other documents as they
            may reasonably request in order to facilitate the disposition of the
            Warrant Shares.

                  (ii) Use commercially reasonable efforts to register and
            qualify the Warrant Shares covered by such registration statement
            under such other securities or Blue Sky laws of such jurisdictions
            as shall be reasonably requested by SCO, provided that the Company
            shall not be required in connection therewith or as a condition
            thereto to qualify to do business or to file a general consent to
            service of process in any such states or jurisdictions.

                  (iii) Promptly notify SCO at any time when the Company becomes
            aware of the happening of any event as a result of which the
            registration statement or the prospectus included in such
            registration statement or any supplement to the prospectus (as then
            in effect) contains any untrue statement of a material fact or omits
            to state a material fact necessary to make the statements there in
            (in the case of the prospectus, in light of the circumstances under
            which they were made) not misleading or, if for any other reason it
            shall be necessary during such time period to amend or supplement
            the registration statement or the prospectus in order to comply with
            the Securities Act, whereupon, in either case, SCO shall immediately
            cease to use such registration statement or prospectus for any
            purpose and, as promptly as practicable thereafter, the Company
            shall prepare and file with the SEC, and furnish without charge to
            SCO a supplement or amendment to such registration statement or
            prospectus which will correct such statement or omission or effect
            such compliance and such copies thereof as SCO may reasonably
            request.

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                  (iv) Use commercially reasonable efforts to cause all the
            Warrant Shares registered pursuant hereunder to be listed on each
            securities exchange or market on which similar securities issued by
            the Company are then listed or traded, if applicable.

            (d) Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 8 with
respect to the Warrant Shares that SCO shall furnish to the Company such
information regarding itself, its Designees, the Warrant Shares held by it, and
the intended method of disposition of such securities as shall be required to
effect the registration of the Warrant Shares.

            (e) Expenses of Registration. All expenses including without
limitation all registration, filing and qualification fees, printers' and
accounting fees, documented fees and disbursements of counsel for the Company
shall be borne by (i) the Company with respect to any registration under Section
8(a), or (ii) SCO with respect to any registration under Section 8(b); provided,
however, that in the event that a registration statement filed pursuant to
Section 8(b) is not reviewed by the SEC, SCO shall not be obligated to reimburse
the Company for fees and disbursements of Company counsel in excess of $25,000.

            (f) Delay of Registration. SCO shall not have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 8.

            (g) Indemnification. In the event the Warrant Shares are included in
a registration statement under this Section 8:

                  (i) Indemnification by the Company. To the extent permitted by
            law, the Company will indemnify and hold harmless SCO, each
            Designee, any underwriter (as defined in the Securities Act) for SCO
            or any Designee and each person, if any, who controls SCO or any
            such underwriter within the meaning of the Securities Act or the
            Securities Exchange Act of 1934, as amended (the "Exchange Act"),
            against any losses, claims, damages, or liabilities (joint or
            several) to which they may become subject under the Securities Act,
            the Exchange Act or other federal or state law, insofar as such
            losses, claims, damages, or liabilities (or actions in respect
            thereof) arise out of or are based upon any of the following
            statements, omissions or violations (collectively a "Violation"):
            (i) any untrue statement or alleged untrue statement of a material
            fact contained in such registration statement, including any
            preliminary prospectus or final prospectus contained therein or any
            amendments or supplements thereto, (ii) the omission or alleged
            omission to state therein a material fact required to be stated
            therein, or necessary to make the statements therein not misleading,
            or (iii) any violation or alleged violation by the Company of the
            Securities Act, the Exchange Act, any state securities law or any
            rule or regulation promulgated under the Securities Act, the
            Exchange Act or any state securities law; and the Company will pay
            to SCO, such Designee, underwriter or controlling person, as
            incurred, any legal or other expenses reasonably incurred by them in
            connection with investigating or defending any such loss, claim,

                                      -10-
<PAGE>

            damage, liability, or action; provided, however, that the indemnity
            agreement contained in this Section 8(g)(i) shall not apply to
            amounts paid in settlement of any such loss, claim, damage,
            liability, or action if such settlement is effected without the
            consent of the Company, which consent shall not be unreasonably
            withheld, nor shall the Company be liable to SCO, any Designee,
            underwriter or any such controlling person for any such loss, claim,
            damage, liability, or action to the extent that it arises out of or
            is based upon (x) a Violation which occurs in reliance upon and in
            conformity with information furnished in writing for use in
            connection with such registration by SCO, or any Designee,
            underwriter or any such controlling person; (y) a violation which
            occurs in any preliminary prospectus if a final, amended or
            supplemental prospectus which corrects such Violation is delivered
            by the Company to such person at or prior to the written
            confirmation of the sale giving rise to such loss, claim, damage,
            liability, or action; or (z) the use by SCO, or any Designee,
            underwriter or any such controlling person of an outdated or
            defective prospectus after the delivery to SCO of written notice
            from the Company that the prospectus is outdated or defective.

                  (ii) Indemnification by SCO. To the extent permitted by law,
            SCO will indemnify and hold harmless the Company, each of its
            directors, each of its officers who has signed the registration
            statement, each person, if any, who controls the Company within the
            meaning of the Securities Act, any underwriter and any controlling
            person of any such underwriter, against any losses, claims, damages,
            or liabilities (joint or several) to which any of the foregoing
            persons may become subject, under the Securities Act, the Exchange
            Act or other federal or state law, insofar as such losses, claims,
            damages, or liabilities (or actions in respect thereto) arise out of
            or are based upon (x) any Violation, in each case to the extent (and
            only to the extent) that such Violation occurs in reliance upon and
            in conformity with information furnished in writing by SCO, or any
            Designee, underwriter or controlling person of SCO for use in
            connection with such registration statement or (y) the use by SCO,
            or any Designee, underwriter or controlling person of SCO of an
            outdated or defective prospectus after the delivery to SCO of
            written notice from the Company that the prospectus is outdated or
            defective; and SCO will pay, as incurred, any legal or other
            expenses reasonably incurred by any person intended to be
            indemnified pursuant to this Section 8(g)(ii), in connection with
            investigating or defending any such loss, claim, damage, liability,
            or action; provided, however, that the indemnity agreement contained
            in this Section 8(g)(ii) shall not apply to amounts paid in
            settlement of any such loss, claim, damage, liability or action if
            such settlement is effected without the consent of SCO, which
            consent shall not be unreasonably withheld; provided, that in no
            event shall any indemnification by SCO under this Section 8(g)(ii)
            exceed the net proceeds from the offering received by SCO, except in
            the case of willful fraud by SCO, or any Designee, underwriter or
            any such controlling person.

                  (iii) Procedures. Promptly after receipt by an indemnified
            party under this Section 8(g) of notice of the commencement of any
            action (including any

                                      -11-
<PAGE>

            governmental action), such indemnified party will, if a claim in
            respect thereof is to be made against any indemnifying party under
            this Section 8(g), deliver to the indemnifying party a written
            notice of the commencement thereof and the indemnifying party shall
            have the right to participate in, and, to the extent the
            indemnifying party so desires, jointly with any other indemnifying
            party similarly noticed, to assume the defense thereof with counsel
            mutually satisfactory to the parties; provided, however, that an
            indemnified party (together with all other indemnified parties which
            may be represented without conflict by one counsel) shall have the
            right to retain one separate counsel, with the reasonable fees and
            expenses to be paid by the indemnifying party, if representation of
            such indemnified party by the counsel retained by the indemnifying
            party would be inappropriate due to actual or potential differing
            interests between such indemnified party and any other party
            represented by such counsel in such proceeding. The failure to
            deliver written notice to the indemnifying party within a reasonable
            time of the commencement of any such action, if materially
            prejudicial to its ability to defend such action, shall relieve such
            indemnifying party of any liability to the indemnified party under
            this Section 8(g), but the omission so to deliver written notice to
            the indemnifying party will not relieve it of any liability that it
            may have to any indemnified party otherwise than under this Section
            8(g). No indemnifying party, in the defense of any such claim or
            litigation, shall, except with the consent of each indemnified
            party, consent to entry of any judgment or enter into any settlement
            which does not include as an unconditional term thereof the giving
            by the claimant or plaintiff to such indemnified party of a release
            from all liability in respect to such claim or litigation. The
            indemnity agreements contained in this Section 8(g) shall not apply
            to amounts paid in settlement of any loss, claim, damage, liability
            or action if such settlement is effected without the consent of the
            indemnifying party, such consent not to be unreasonably withheld.

                  (iv) Contribution. If the indemnification provided for in
            this Section 8(g) is held by a court of competent jurisdiction to be
            unavailable to an indemnified party with respect to any loss,
            liability, claim, damage or expense referred to therein, then the
            indemnifying party, in lieu of indemnifying such indemnified party
            hereunder, shall contribute to the amount paid or payable by such
            indemnified party as a result of such loss, liability, claim,
            damage, or expense in such proportion as is appropriate to reflect
            the relative fault of the indemnifying party on the one hand and of
            the indemnified party on the other in connection with the statements
            or omissions that resulted in such loss, liability, claim, damage or
            expense as well as any other relevant equitable considerations;
            provided, that in no event shall any contribution by SCO under this
            Section 8(g)(iv) exceed the net proceeds from the offering received
            by such SCO, except in the case of willful fraud by SCO, or any
            Designee, underwriter or controlling person of SCO. The relative
            fault of the indemnifying party and of the indemnified party shall
            be determined by reference to, among other things, whether the
            untrue or alleged untrue statement of a material fact or the
            omission to state a material fact relates to information supplied by
            the indemnifying party or by the indemnified party and

                                      -12-
<PAGE>

            the parties' relative intent, knowledge, access to information, and
            opportunity to correct or prevent such statement or omission.

                  (v) Survival. The obligations of the Company and SCO under
            this Section 8(g) shall survive the completion of any offering of
            the Warrant Shares in a registration statement under this Section 8,
            and otherwise.

            (h) Assignment of Registration Rights. The rights granted SCO under
Section 8 may not be assigned to a transferee or assignee of Warrant Shares
without the prior written consent of the Company, except that such rights (and
all corresponding obligations) (i) shall be transferred (with respect to Section
8(g) only) to each Designee to the extent of the Warrant Shares subject to the
Warrant issued to such Designee, and (ii) may be freely transferred to any party
controlling, controlled by or under common control with SCO without such
consent; provided, that, with respect to transfers under both clause (i) and
clause (ii), in each case, the Company is provided with prompt notice of the
name and address of such transferee and such transferee agrees in writing to be
bound by the provisions of this Agreement.

            (i) Termination of Registration Rights. Neither SCO nor any Designee
or transferee thereof shall be entitled to exercise any registration right
provided for in this Section 8 after such time as Rule 144(k) or another similar
exemption under the Securities Act is available for the sale of all of the
Warrant Shares without limitation as to volume or manner of sale.

      9. Survival of Representations and Warranties. All of the representations
and warranties of the Parties contained in this Agreement shall survive the
Closing hereunder (even if the damaged party knew or had reason to know of any
misrepresentation or breach of warranty or covenant at the time of Closing) and
continue in full force and effect forever thereafter.

      10. Miscellaneous.

            (a) Further Assurances. The Company and SCO shall deliver or cause
to be delivered to the other party on the Closing Date and at such other times
and places as shall be reasonably agreed to, such additional instruments as any
of the other party may reasonably request for the purposes of carrying out this
Agreement.

            (b) Recapitalizations, Etc. The provisions of this Agreement shall
apply, to the full extent set forth herein with respect to the Warrant Shares
and to the Common Stock, to any and all shares of capital stock of the Company
or any capital stock, partnership or member units or any other security
evidencing ownership interests in any successor or assign of the Company
(whether by merger, consolidation, sale of assets or otherwise) that may be
issued in respect of, in exchange for, or in substitution of the Warrant Shares
by reason of any stock dividend, split, combination, recapitalization,
liquidation, reclassification, merger, consolidation or otherwise.

            (c) Delays or Omissions; Remedies Cumulative. No delay or omission
to exercise any right, power or remedy accruing to any party under this
Agreement, upon any breach or default of any other party under this Agreement,
shall impair any such right, power or remedy of such non-breaching or
non-defaulting party nor shall it be construed to be a waiver of any such breach
or default, or an acquiescence therein, or of or in any similar breach or
default

                                      -13-
<PAGE>

thereafter occurring; nor shall any waiver of any single breach or default be
deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on
the part of any party of any breach or default under this Agreement, or any
waiver on the part of any party of any provisions or conditions of this
Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement or by law or otherwise afforded to any party, shall be cumulative and
not alternative.

            (d) No Third-Party Beneficiaries. Except as specifically provided
herein with respect to the Designees, this Agreement shall not confer any rights
or remedies upon any person other than the Parties and their respective
successors and permitted assigns.

            (e) Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the Parties and their respective
successors and assigns. Notwithstanding the foregoing, except as provided in
Section 8(h) above, neither this Agreement nor any rights hereunder may be
assigned by any party without the prior written consent of the other party.

            (f) Entire Agreement. This Agreement (including the documents
referred to herein) constitutes the entire agreement among the Parties and
supersedes any prior understandings, agreements, or representations by or among
the Parties, written or oral, to the extent they related in any way to the
subject matter hereof.

            (g) Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument. Facsimile or electronic
image transmission of a signature shall be equivalent to delivery of an original
signature for all purposes under this Agreement.

            (h) Headings. The section headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

            (i) Notices. All notices, requests, demands, claims, and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given if (and then two
business days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

               If to SCO: Copy to:

                       SCO Financial Group LLC
                       1285 Avenue of the Americas
                       35th Floor
                       New York, NY  10019
                       Attn: President
                       Fax: (212) 554-4058

                                      -14-
<PAGE>

               with a copy to:

                       Wiggin and Dana LLP
                       400 Atlantic Street
                       Stamford, CT  06901
                       Attn: Michael Grundei, Esq.
                       Fax:  (203) 363-7676

               If to the Company: Copy to:

                       Spectrum Pharmaceuticals, Inc.
                       157 Technology Drive
                       Irvine, CA 92618
                       Attn: William N. Pedranti, Esq.
                       Fax: (949) 788-6706

                       with a copy to:

                       Latham & Watkins
                       650 Town Center Drive, Suite 2000
                       Costa Mesa, CA 92626
                       Attn: Alan W. Pettis, Esq.
                       Fax: (714) 755-8290

Either party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient. Either
party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other party
notice in the manner herein set forth.

            (j) Governing Law. All questions concerning the construction,
validity, enforcement and interpretation of this Agreement shall be governed by
and construed and enforced in accordance with the internal laws of the State of
California, without regard to the principles of conflicts of law thereof. The
Company and SCO hereby irrevocably submit to the exclusive jurisdiction of the
state and federal courts sitting in Orange County, California, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, or that
such suit, action or proceeding is improper. Each of the Company and SCO hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by receiving a copy thereof sent
to the Company at the address in effect for notices to it under this instrument
and agrees that such service shall constitute good and sufficient service of
process and notice thereof. Nothing

                                      -15-
<PAGE>

contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law.

            (k) Amendments. No amendment of any provision of this Agreement
shall be valid unless the same shall be in writing and signed by SCO and the
Company.

            (l) Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

            (m) Expenses. Except as set forth in Section 8 above, each party
will bear his or its own costs and expenses (including legal fees and expenses)
incurred in connection with this Agreement and the transactions contemplated
hereby.

            (n) Construction. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including without limitation. The Parties intend
that each representation, warranty, and covenant contained herein shall have
independent significance. If any party has breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the
party has not breached shall not detract from or mitigate the fact that the
party is in breach of the first representation, warranty, or covenant.

                                      *****

                                      -16-
<PAGE>

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

                                                  SPECTRUM PHARMACEUTICALS, INC.

                                                  By:   /s/ Shyam Kumaria
                                                        ------------------------
                                                  Name:  Shyam Kumaria
                                                        ------------------------
                                                  Title: VP Finance
                                                        ------------------------

                                                  SCO FINANCIAL GROUP LLC

                                                  By:   /s/ Jeffrey B. Davis
                                                        ------------------------
                                                  Name:  Jeffrey B. Davis
                                                        ------------------------
                                                  Title: President
                                                        ------------------------

                                      -17-exv10w1

 

EXHIBIT 10.1

ANIMAS CORPORATION

2004 EQUITY INCENTIVE PLAN

INCENTIVE STOCK OPTION GRANT

     This STOCK OPTION GRANT, dated as of    , 2004 (the “Date of
Grant”), is delivered by ANIMAS CORPORATION (the “Company”) to
   (the “Grantee”).

RECITALS

     The Animas Corporation 2004 Equity Incentive Plan (the “Plan”) provides
for the grant of options to purchase shares of common stock of the Company.
The Board of Directors of the Company (the “Board”) has decided to make a stock
option grant as an inducement for the Grantee to promote the best interests of
the Company and its shareholders, and provide the Grantee with an opportunity
to share in the growth and value of the Company. A copy of the Plan is
attached.

     The Board is authorized to appoint a committee to administer the Plan. If
a committee is appointed, all references in this Agreement to the “Board” shall
be deemed to refer to the committee.

     NOW, THEREFORE, the parties to this Agreement, intending to be legally
bound hereby, agree as follows:

     1. Grant of Option.

          (a) Subject to the terms and conditions set forth in this Agreement and in
the Plan, the Company hereby grants to the Grantee an incentive stock option
(the “Option”) to purchase    shares of common stock of the Company
(“Shares”) at an exercise price of $  per Share. The Option shall become
exercisable according to Paragraph 2 below.

          (b) The Option is designated as an incentive stock option, as described in
Paragraph 5 below. However, if and to the extent the Option exceeds the limits
for an incentive stock option (as described in Paragraph 5) or otherwise fails
to meet the requirements of Code Section 422, the option shall be a
nonqualified stock option.

     2. Exercisability of Option. The Option shall become exercisable on the
following date(s), if the Grantee is employed by, or providing service to, the
Company on the applicable date:

 

 

	 	 	 	 	 
	Date
	 	Shares for Which Option is Exercisable
	 	 
	[1st Anniversary of Date of Hire]

	 	
	 	 
	[2nd Anniversary of Date of Hire]

	 	
	 	 
	[3rd Anniversary of Date of Hire]

	 	
	 	 
	[4th Anniversary of Date of Hire]

	 	
	 	 
	[5th Anniversary of Date of Hire]

	 	
	 	 

The exercisability of the Option is cumulative.

     3. Term of Option.

          (a) The Option shall have a term of ten years from the Date of Grant and
shall terminate at the expiration of that period ([Insert Date 10 Years from
Date of Grant]) unless it is terminated at an earlier date pursuant to the
provisions of this Agreement or the Plan.

          (b) The Option shall automatically terminate upon the happening of the
first of the following events:

               (i) The expiration of the 90-day period after the Grantee ceases to be
employed by, or provide service to, the Company, if the termination is for any
reason other than Disability (as defined in the Plan), death or Cause (as
defined in the Plan).

               (ii) The expiration of the two-year period after the Grantee ceases to be
employed by, or provide service to, the Company on account of the Grantee’s
Disability.

               (iii) The expiration of the two-year period after the Grantee ceases to be
employed by, or provide service to, the Company, if the Grantee dies while
employed by, or providing service to, the Company or within 90 days after the
Grantee ceases to be so employed or provide services on account of a
termination described in subparagraph (i) above.

               (iv) The date on which the Grantee ceases to be employed by, or provide
service to, the Company for Cause. In addition, notwithstanding the prior
provisions of this Paragraph 3, if the Grantee engages in conduct that
constitutes Cause after the Grantee’s employment or service terminates, the
Option shall terminate immediately and automatically.

               (v) Notwithstanding the foregoing, in no event may the Option be exercised
after the date set forth in Paragraph 3(a). Any portion of the
Option that is not exercisable at the time the Grantee ceases to be employed by,
or provide service to, the Company shall terminate

2

 

immediately and
automatically.

     4. Exercise Procedures.

          (a) Subject to the provisions of Paragraphs 2 and 3 above, the Grantee may
exercise part or all of the exercisable Option by giving the Board written
notice of intent to exercise in the manner provided in this Agreement,
specifying the number of Shares as to which the Option is to be exercised.

          (b) On the delivery date, the Grantee shall pay the exercise price (i) in
cash, (ii) with the approval of the Board, by delivering Shares of the Company
which shall be valued at their fair market value on the date of delivery, or
(iii) by such other method as the Board may approve, including payment through
a broker in accordance with procedures permitted by Regulation T of the Federal
Reserve Board. The Board may impose from time to time such limitations, as it
deems appropriate on the use of Shares of the Company to exercise the Option.

          (c) The Company may require that the Grantee (or other person exercising
the Option after the Grantee’s death) represent that the Grantee is purchasing
Shares for the Grantee’s own account and not with a view to or for sale in
connection with any distribution of the Shares, or such other representation as
the Board deems appropriate.

          (d) The Company may from time to time impose any conditions on the
exercise of the Option as it reasonably deems necessary or advisable to ensure
that all rights granted under the Plan satisfy the requirements of the
Securities and Exchange Commission Rule 16b-3 or any successor rule.

          (e) The Grantee acknowledges and agrees to execute any shareholder’s
agreement that may be applicable to holders of Shares under the Plan generally
and restricts the Grantee’s rights in the Shares acquired under the Plan, in a
form that the Company provides at any time on or after the exercise of this
Option and as may be amended by the Company in its sole discretion from time to
time.

          (f) All obligations of the Company under this Agreement shall be subject
to the rights of the Company as set forth in the Plan to withhold amounts
required to be withheld for any taxes, if applicable. Subject to Board
approval, the Grantee may elect to satisfy any income tax withholding
obligation of the Company with respect to the Option by having Shares withheld
up to an amount that does not exceed the applicable withholding tax rate for
federal (including FICA), state and local tax liabilities.

          (g) The obligation of the Company to deliver Shares upon exercise of the
Option shall be subject to all applicable laws, rules, and regulations and such
approvals by governmental agencies as may be deemed appropriate by the Board,
including such actions as Company counsel shall deem necessary or appropriate
to comply with relevant securities laws and regulations.

3

 

     5. Designation as Incentive Stock Option.

          (a) This Option is designated an incentive stock option under Section 422
of the Internal Revenue Code of 1986, as amended (the “Code”). If the
aggregate fair market value of the stock on the date of the grant with respect
to which incentive stock options are exercisable for the first time by the
Grantee during any calendar year, under the Plan or any other stock option plan
of the Company or a parent or subsidiary, exceeds $100,000, then the Option, as
to the excess, shall be treated as a nonqualified stock option that does not
meet the requirements of Section 422. If and to the extent that the Option
fails to qualify as an incentive stock option under the Code, the Option shall
remain outstanding according to its terms as a nonqualified stock option.

          (b) The Grantee understands that favorable incentive stock option tax
treatment is available only if the Option is exercised while the Grantee is an
employee of the Company or a parent or subsidiary or within a time specified in
the Code after the Grantee ceases to be an employee. The Grantee should
consult with his or her tax adviser regarding the tax consequences of the
Option.

     6. Change of Control. The provisions of the Plan applicable to a Change
of Control shall apply to the Option, and, in the event of a Change of Control,
the Board may take such actions, as it deems appropriate pursuant to the Plan.

     7. Restrictions on Exercise. Only the Grantee may exercise the Option
during the Grantee’s lifetime. After the Grantee’s death, the Option shall be
exercisable (subject to the limitations specified in the Plan) solely by the
legal representatives of the Grantee, or by the person who acquires the right
to exercise the Option by will or by the laws of descent and distribution, to
the extent that the Option is exercisable pursuant to this Agreement.

     8. Grant Subject to Plan Provisions. This grant is made pursuant to the
Plan, the terms of which are incorporated herein by reference, and in all
respects shall be interpreted in accordance with the Plan. The grant and
exercise of the option are subject to the provisions of the Plan and to
interpretations, regulations and determinations concerning the Plan established
from time to time by the Board in accordance with the provisions of the Plan,
including, but not limited to, provisions pertaining to (i) rights and
obligations with respect to withholding taxes, (ii) the registration,
qualification or listing of the Shares, (iii) changes in capitalization of the
Company and (iv) other requirements of applicable law. The Board shall have
the authority to interpret and construe the Option pursuant to the terms of the
Plan, and its decisions shall be conclusive as to any questions arising
hereunder.

     9. No Employment or Other Rights. The grant of the Option shall not
confer upon the Grantee any right to be retained by or in the employ or service
of the Company and shall not interfere in any way with the right of the Company
to terminate the Grantee’s employment or service at any time. The right of the
Company to terminate at will the Grantee’s employment or service at any time
for any reason is specifically reserved.

4

 

     10. No Shareholder Rights. Neither the Grantee, nor any person entitled
to exercise the Grantee’s rights in the event of the Grantee’s death, shall
have any of the rights and privileges of a shareholder with respect to the
Shares subject to the Option, until certificates for Shares have been issued
upon the exercise of the Option.

     11. Assignment and Transfers. The rights and interests of the Grantee
under this Agreement may not be sold, assigned, encumbered or otherwise
transferred except, in the event of the death of the Grantee, by will or by the
laws of descent and distribution. In the event of any attempt by the Grantee
to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option or
any right hereunder, except as provided for in this Agreement, or in the event
of the levy or any attachment, execution or similar process upon the rights or
interests hereby conferred, the Company may terminate the Option by notice to
the Grantee, and the Option and all rights hereunder shall thereupon become
null and void. The rights and protections of the Company hereunder shall
extend to any successors or assigns of the Company and to the Company’s
parents, subsidiaries, and affiliates. This Agreement may be assigned by the
Company without the Grantee’s consent.

     12. Applicable Law. The validity, construction, interpretation and effect
of this instrument shall be governed by and construed in accordance with the
laws of the State of Delaware, without giving effect to the conflicts of laws
provisions thereof.

     13. Notice. Any notice to the Company provided for in this instrument
shall be addressed to the Company in care of the President at 200 Lawrence
Drive, West Chester, PA 19380, and any notice to the Grantee shall be addressed
to such Grantee at the current address shown on the payroll of the Company, or
to such other address as the Grantee may designate to the Company in writing.
Any notice shall be delivered by hand, sent by telecopy or enclosed in a
properly sealed envelope addressed as stated above, registered and deposited,
postage prepaid, in a post office regularly maintained by the United States
Postal Service.

     14. Disposition of Stock. The Grantee agrees to notify the Company in
writing, within 30 days of any disposition (whether by sale, exchange, gift or
otherwise) of any Shares purchased under this Agreement, within two years from
the Grant Date or within one year of the transfer of such Shares to the
Grantee.

     15. Amendment. Subject to the provisions of the Plan, this Agreement may
be amended at any time by the Company or its delegate; provided, however, that
any modification or amendment of this Agreement which adversely affects the
Grantee shall require the written consent of the Grantee.

     16. Entire Agreement. This Agreement, together with the Plan and the
other exhibits attached thereto or hereto, represents the entire agreement
between the parties hereto relating to the subject matter hereof, and merges
and supersedes all prior and contemporaneous discussions, agreements and
understandings of every nature relating to the award of Options to Grantee by
the Company.

5

 

     IN WITNESS WHEREOF, the Company has caused its duly authorized officers to
execute and attest this Agreement, and the Grantee has executed this Agreement,
effective as of the Date of Grant.

	 	 	 	 	 	 	 
	 	 	ANIMAS CORPORATION
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	
	 	 
	

	 	Name:	 	 	 	 
	

	 	 	 	
	 	 
	

	 	Title:	 	 	 	 
	

	 	 	 	
	 	 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]