Document:

PALATIN TECHNOLOGIES, INC.

          _____________________________________________________________

                               PURCHASE AGREEMENT

          _____________________________________________________________

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                                TABLE OF CONTENTS
         PAGE

         1.       PURCHASE AND SALE OF SHARES
         1.1      ISSUE OF SHARES

2.       CLOSING DATE; DELIVERY
         2.1      CLOSING
         2.2      DELIVERY

3        REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS OF THE PURCHASER
         3.1      LEGAL POWER
         3.2      DUE EXECUTION
         3.3      INVESTMENT REPRESENTATIONS
         3.4      REMEDIES
         3.5      INDEMNIFICATION

4.       COVENANTS OF THE COMPANY
         4.1      INFORMATION

5.       UNDERSTANDINGS

6.       DEFAULTING PROSPECTIVE PURCHASERS

7.       MISCELLANEOUS
         7.1      GOVERNING LAW
         7.2      SURVIVAL
         7.3      SUCCESSORS AND ASSIGNS
         7.4      ENTIRE AGREEMENT
         7.5      SEVERABILITY
         7.6      AMENDMENT AND WAIVER
         7.7      NOTICES
         7.8      FEES AND EXPENSES
         7.9      TITLES AND SUBTITLES
         7.10     COUNTERPARTS
         7.11     NO WAIVER

8.       ESCROW AGENT

9.       EXECUTION OF AGREEMENT

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                           PALATIN TECHNOLOGIES, INC.

                               PURCHASE AGREEMENT

    This Purchase Agreement (the "Agreement" or "Purchase Agreement") is made as
of ____________, 2000 by and between Palatin Technologies, Inc., a Delaware
corporation (the "Company"), with its principal office at 103 Carnegie Center,
Suite 200, Princeton, New Jersey 08540, and each of the purchasers who are
signatories hereto and any other purchasers who are made a party to this
Agreement pursuant to Section 1 (individually, a "Purchaser" and collectively,
the "Purchasers").

                                    RECITALS

    The Company is hereby offering (the "Offering") a minimum of $5,000,000 and
a maximum of $15,000,000 (a) shares (the "Shares") of the Company's Common
Stock, $.01 par value per share (the "Common Stock"), and (b) redeemable
warrants (the "Warrants") entitling the investor to purchase one (1) share of
common stock for every five (5) shares of common stock purchased under the
agreement. The Shares and the Warrants offered in the Offering shall sometimes
collectively be referred to herein as the "Securities." The Company will sell
the Securities to Purchasers pursuant to Regulation D ("Regulation D") and/or
Regulation S ("Regulation S") promulgated under the Securities Act of 1933, as
amended (the "Act").

    The purchase price of the Shares to be offered in the Offering (the
"Offering Price") will be determined based upon the reported closing bid price
for the Common Stock on the American Stock Exchange (symbol "PTN") for the day
immediately preceding the initial closing date and any subsequent closing dates,
(as defined below). Every five shares of Common Stock purchased in the Offering
will entitle the Purchaser to a Warrant to purchase one share of Common Stock at
an exercise price per share equal to 125% of the Offering Price.

                                    AGREEMENT

    In consideration of the Company's agreement to sell the Securities to the
undersigned upon the terms and conditions continued herein, each Purchaser
(severally and not jointly) agrees and represents as follows:

    1.  PURCHASE AND SALE OF SECURITIES.

        1.1 ISSUE OF SECURITIES.

            (a) The Company has authorized the issuance and sale of a minimum of
        $5,000,000 and a maximum of $15,000,000 of Securities pursuant to the
        provisions of this Agreement.

            (b) Subject to the terms and conditions set forth herein, the
        Company hereby agrees to issue and sell to each Purchaser the aggregate
        amount of Shares and Warrants

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        set forth below on the Purchaser's signature on the subscription page
        bearing such Purchaser's name. The Shares shall be sold at the Offering
        Price.

            (c) Subject to the terms and conditions set forth herein, each
        Purchaser hereby agrees to purchase the amount of Shares and Warrants as
        determined on the subscription page bearing such Purchaser's name (each
        a "Subscription"). Each Purchaser shall severally, and not jointly, be
        liable only for the purchase of the amount of Shares and Warrants that
        appears on the subscription page hereof that relates to such Purchaser.

            (d) The Company's agreement with each Purchaser is a separate
        agreement and the sale of the Securities to each Purchaser is a separate
        sale.

    2.  CLOSING DATE; DELIVERY.

    2.1 CLOSING. The Company expects to hold an initial closing of the Offering
(the "Initial Closing") at any time after subscriptions for a minimum of
$5,000,000 of Securities have been accepted, which is expected to occur on or
about September 8, 2000. The final closing of the Offering (the "Final Closing
Date") shall occur as soon as practicable on the date on which Subscriptions for
the maximum of $15,000,000 of Securities have been accepted by the Company but
no later than September 22, 2000, unless extended by the Company for an
additional period not exceeding 60 days, without notice to the Purchaser. The
Company may hold additional interim closings after the Initial Closing. Any such
interim closing together with the Initial Closing are each hereinafter referred
to as an "Interim Closing" and shall occur on one or more dates each hereinafter
referred to as an "Interim Closing Date," and each, together with the Final
Closing Date, are hereinafter referred to as a "Closing Date."

    2.2 DELIVERY. On each Closing Date, subject to the terms and conditions
hereof, the Company shall deliver to each Purchaser (i) stock certificates,
registered in the name of the Purchaser, representing the Shares to be purchased
by the Purchaser from the Company, and (ii) warrant certificates, registered in
the name of the Purchaser, representing the Warrants to be granted to the
Purchaser by the Company, each dated as of the relevant Closing Date, against
payment of the purchase price therefor (the "Payment") by wire transfer or
previously cleared check, unless other means of payment shall have been agreed
upon by the Purchaser and the Company. The undersigned understands that payments
by check as provided in this Paragraph 2.2 shall be delivered to Mintz Levin
Cohn Ferris Glovsky and Popeo PC as the escrow agent and, thereafter, such
payment will be deposited as soon as practicable in an escrow account for the
undersigned's benefit. The wire transfer shall be made to Mintz Levin Cohn
Ferris Glovsky and Popeo PC, as escrow agent in accordance with the wire
transfer instructions attached as Exhibit A hereto. The Payment will be made on
or prior to the relevant Closing Date. The Payment (or, in the case of the
rejection of a portion of the undersigned's subscription, the part of the
Payment relating to such rejected portion) will be returned promptly, without
interest or deduction, on the basis described in the Memorandum, if the
undersigned's subscription is rejected in whole or in part. Any Payment made by
the Purchaser prior to the Initial Closing and/or any subsequent Closing is
based on an estimated price per share of Common Stock of $6.50. The Purchaser
agrees to remit to the Company on the Initial Closing and/or any Interim Closing
the balance of the Payment if the Offering Price is greater than $6.50 per
share. The

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Company agrees to promptly remit to the Purchaser any excess Payment
made by such Purchaser if the Offering Price is less than $6.50 per share. Each
party hereto shall deliver or cause to be delivered at or prior to the Closing
Date an executed copy of the Registration Rights Agreement between the Company
and the Purchaser and the Company shall deliver to each Purchaser a
fully-executed copy of the Agreement.

    3.  REPRESENTATIONS, WARRANTIES AND CERTAIN COVENANTS OF THE PURCHASER.

    Each Purchaser hereby represents and warrants to, and agrees with, the
Company as follows:

    3.1 LEGAL POWER. If this Agreement is executed and delivered on behalf of a
partnership, corporation, limited liability company, trust or estate: (i) such
partnership, corporation, limited liability company, trust or estate has the
full legal right and power and all authority and approval required (a) to
execute and delivery, or authorize execution and deliver of, this Agreement and
all other instruments (including, without limitation, the Registration Rights
Agreement among the Purchasers and the Company (the "Registration Rights
Agreement") executed and delivered by or on behalf of such partnership,
corporation, limited liability company, trust or estate in connection with the
purchase of its Securities, (b) to delegate authority pursuant to a power of
attorney and (c) to purchase and hold such Securities; (ii) the signature of the
party signing on behalf of such partnership, corporation, limited liability
company, trust or estate is binding upon such partnership, corporation, trust or
estate; and (iii) such partnership, corporation, limited liability company or
trust has not been formed for the specific purpose of acquiring such Securities,
unless each beneficial owner of such entity is qualified as an accredited
investor within the meaning of Rule 501(a) of Regulation D and has submitted
information substantiating such individual qualification.

    3.2 DUE EXECUTION. Each of this Agreement and the Registration Rights
Agreement (collectively, the "Operative Documents") has been duly authorized, if
Purchaser is a corporation, partnership, limited liability company, trust or
fiduciary, executed and delivered by Purchaser and, upon due execution and
delivery by the Company, the Operative Documents will be valid and binding
agreements of Purchaser, enforceable against Purchaser in accordance with their
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar laws relating to or affecting creditors' rights and subject to
general equity principles.

    3.3 INVESTMENT REPRESENTATIONS.

        3.3.1 Purchaser is acquiring the Securities for its own account, not as
    nominee or agent, for investment and not with a view to or for resale in
    connection with any distribution or public offering thereof within the
    meaning of the Act, except pursuant to an effective registration statement
    under the Act. Alternatively, if Purchaser is a non-United States resident,
    such purchaser represents that it (a) is acquiring the Securities solely for
    its own account for investment purposes and not with a view to distribution
    or resale, and (b) will not sell, hypothecate, pledge or otherwise dispose
    of any interest in the Securities, in the United States, its territories and
    possessions or any area subject to its jurisdiction, or to any partnership

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    or other entity created or organized therein, unless such Securities have
    been either registered under the Act or are exempt from the registration
    requirements of the Act; in the opinion of the Company's counsel, and unless
    such Purchaser has complied with any applicable restrictions on transfer in
    this Agreement.

        3.3.2 Purchaser understands that (i) the Securities have not been
    registered under the Act by reason of a specific exemption therefrom, and
    may not be transferred or resold except pursuant to an effective
    registration statement or exemption from registration and (ii) each
    certificate or other document representing the Securities will be endorsed
    with legends in substantially the following form:

            A) THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
        THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
        SECURITIES LAWS OF ANY STATE. THESE SECURITIES ARE SUBJECT TO
        RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR
        RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE
        SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. THE
        ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND
        SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
        TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE
        STATE SECURITIES LAWS.

            B) Any legend required to be placed thereon by applicable federal or
        state securities laws;

    And (iii) the Company will instruct any transfer agent not to register the
    transfer of any of the Securities unless the conditions specified in the
    foregoing legend are satisfied.

        3.3.3 The Purchaser is familiar with and understands the terms of the
    Offering, including the rights to which the Purchaser is entitled under the
    Registration Rights Agreement. The Purchaser has been furnished with and has
    carefully read the Company's Current Report on Form 8-K dated June 14, 2000
    (the "8-K"), the Company's Quarterly Reports on Form 10-QSB for the Quarters
    ended March 31, 2000 and December 31, 1999 (the "10-Qs"), and the Company's
    Annual Report on Form 10-KSB for the year ended June 30, 1999 (the "10-K").
    In evaluating the suitability of an investment in the Company, the Purchaser
    has not relied upon any representation or other information (whether oral or
    written) from the Company, or any agent, employee or affiliate of the
    Company other than as set forth in the 10-K, 10-Qs and 8-K and the results
    of Purchaser's own independent investigation. With respect to individual or
    partnership tax and other economic considerations involved in this
    investment, the Purchaser has carefully considered and has, to the extent
    the Purchaser believes such discussion necessary, discussed with the
    Purchaser's professional legal, tax, accounting and financial advisers the
    suitability of an investment in the Securities for the Purchaser's
    particular tax and financial situation and has determined that the
    Securities being subscribed for by the Purchaser are a suitable investment
    for the Purchaser.

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        3.3.4 The Purchaser acknowledges that (i) the Purchaser has had the
    right to request copies of any documents, records and books pertaining to
    this investment and (ii) such documents, records, and books pertaining to
    this investment which the Purchaser requested have been made available for
    inspection by the Purchaser, the Purchaser's representative, attorney,
    accountant or adviser(s) (the "Purchaser's advisers").

        3.3.5 The Purchaser and/or the Purchaser's adviser(s) has/have had a
    reasonable opportunity to ask questions of and receive answers from a person
    or persons acting on behalf of the Company concerning the Offering and all
    such questions have been answered to the full satisfaction of the Purchaser.

        3.3.6 The Purchaser is not subscribing for Securities as a result of or
    subsequent to any advertisement, article, notice or other communication
    published in any newspaper, magazine or similar media or broadcast over
    television or radio or presented at any seminar or meeting.

        3.3.7 Purchaser is an "accredited investor" as such term is defined in
    Rule 501 under the Act and as indicated by the Purchaser's responses to the
    Confidential Purchaser Questionnaire.

        3.3.8 Purchaser is a resident of, and all communications regarding
    Purchaser's purchase of the Securities were sent to Purchaser, in the state
    and country of Purchaser's residence shown on the subscription page attached
    hereto.

        3.3.9 If the Purchaser is a natural person, the Purchaser has reached
    the age of majority in the state or other jurisdiction in which the
    Purchaser resides, has adequate means of providing for the Purchaser's
    current financial needs and contingencies, is able to bear the substantial
    economic risks of an investment in the Securities for an indefinite period
    of time, has no need for liquidity in such investment and, at the present
    time, could afford a complete loss of such investment.

        3.3.10 The Purchaser or the Purchaser's representative, as the case may
    be, has such knowledge and experience in financial, tax and business matters
    so as to enable the Purchaser to utilize the information made available to
    the Purchaser in connection with the Offering to evaluate the merits and
    risks of an investment in the Securities and to make an informed investment
    decision with respect thereto.

        3.3.11 The Purchaser recognizes that an investment in the Securities
    involves substantial risks, including loss of the entire amount of such
    investment. Further, the Purchaser has carefully read and considered the
    matters set forth under the caption "Important Factors Affecting Our
    Business" in the 10-K, and has taken full cognizance of and understands all
    of the risks related to the purchase of the Securities.

    3.4 REMEDIES. The Purchaser acknowledges and agrees that it shall not be
entitled to seek any remedies with respect to the Offering from any party other
than the Company.

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    3.5 INDEMNIFICATION. The Purchaser shall indemnify and hold harmless the
Company and each officer, director or control person of the Company, who is or
may be a party or is or may be threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of or arising from any actual or
alleged misrepresentation or misstatement of facts or omission to represent or
state facts made or alleged to have been made by the Purchaser to the Company,
or omitted or alleged to have been omitted by the Purchaser, concerning the
Purchaser or the Purchaser's authority to invest or financial position in
connection with the Offering, including, without limitation, any such
misrepresentation, misstatement or omission contained in any investor
qualification questionnaire or any other document submitted by the Purchaser,
against losses, liabilities and expenses for which the Company, or any officer,
director or control person of the Company has not otherwise been reimbursed
(including attorneys' fees, judgments, fines and amounts paid in settlement)
actually and reasonably incurred by the Company, or such officer, director or
control person in connection with such action, suit or proceeding.

    4.  COVENANTS OF THE COMPANY.

        4.1 INFORMATION.

    So long as the Company is subject to the periodic reporting requirements of
the Exchange Act, the Company shall deliver to each holder of Securities all
annual, quarterly or other reports to the extent such reports are furnished to
the Company's public security holders. In the event that the Company is not so
subject, until the fifth anniversary of the relevant Closing Date the Company
shall promptly furnish to each holder of Securities (i) as soon as available,
and in any event within 90 days after the end of each fiscal year of the
Company, a consolidated balance sheet of the Company and its consolidated
subsidiaries, if any, as of the end of such fiscal year and the related
consolidated statements of income, stockholders' equity and cash flows for such
fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, all prepared in accordance with generally accepted
accounting principles and reported on by independent certified public
accountants of recognized national standing; and (ii) as soon as available, and
in any event within 45 days after the end of each of the first three fiscal
quarters of each fiscal year of the Company, a consolidated balance sheet of the
Company and its consolidated subsidiaries, if any, as of the end of such quarter
and the related consolidated statements of income and stockholder's equity
(together with any other quarterly financial statements being prepared by the
Company at such time), setting forth in each case in comparative form the
figures for the corresponding quarter and the corresponding portion of the
Company's previous fiscal year, all certified (subject to normal year-end
adjustments) as to fairness of presentation and consistency by the chief
financial or accounting officer of the Company.

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        5.  UNDERSTANDINGS

    The Purchaser understands, acknowledges and agrees with the Company as
follows:

    5.1 This Subscription may be rejected, in whole or in part, by the Company,
in the sole and absolute discretion of the Company, at any time before any
Closing Date notwithstanding prior receipt by the Purchaser of notice of
acceptance of the Purchaser's Subscription.

    5.2 Except as otherwise set forth herein, the Purchaser hereby acknowledges
and agrees that the Subscription hereunder is irrevocable by the Purchaser,
that, except as required by law, the Purchaser is not entitled to cancel,
terminate or revoke this Agreement or any agreements of the Purchaser hereunder
and that this Agreement and such other agreements shall survive the death or
disability of the Purchaser and shall be binding upon and inure to the benefit
of the parties and their heirs, executors, administrators, successors, legal
representatives and permitted assigns. If the Purchaser is more than one person,
the obligations of the Purchaser hereunder shall be joint and several and the
agreements, representations, warranties and acknowledgments herein contained
shall be deemed to be made by and be binding upon each such person and his/her
heirs, executors, administrators, successors, legal representatives and
permitted assigns.

    5.3 No federal or state agency has made any finding or determination as to
the accuracy or adequacy of this Agreement or the Registration Rights Agreement
or as to the fairness of the terms of this Offering for investment nor any
recommendation or endorsement of the Securities.

    5.4 The Offering is intended to be exempt from registration under the
Securities Act by virtue of Section 4(2) of the Securities Act and the
provisions of Regulation D thereunder, which is in part dependent upon the
truth, completeness and accuracy of the statements made by the Purchaser.

    5.5 There can be no assurance that the Purchaser will be able to sell or
dispose of the Securities. It is understood that in order not to jeopardize the
Offering's exempt status under Section 4(2) of the Securities Act and Regulation
D, any transferee may, at a minimum, be required to fulfill the investor
suitability requirements thereunder.

    5.6 Privatech, Inc. is acting as a finder in connection with this Offering
solely in Europe and will receive (i) a fee equal to 7% of the aggregate cash
value of the amount of equity investment raised by the Company through the
introduction by Privatech to qualified individuals or institutions and (ii)
warrants to purchase shares of Common Stock equal to 10% of the securities sold
as part of such investment.

    5.7 The Purchaser acknowledges that the information contained in this
Agreement and the Registration Rights Agreement or otherwise made available to
the Purchaser is confidential and non-public and agrees that all such
information shall be kept in confidence by

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the Purchaser and neither used by the
Purchaser for the Purchaser's personal benefit (other than in connection with
this Subscription) nor disclosed to any third party for any reason; PROVIDED,
HOWEVER, that this obligation shall not apply to any such information that (i)
is part of the public knowledge or literature and readily accessible at the date
hereof, (ii) becomes part of the public knowledge or literature and readily
accessible by publication (except as a result of a breach of this provision) or
(iii) is received from third parties (except third parties who disclose such
information in violation of any confidentiality agreements or obligations,
including, without limitation, any subscription or other similar agreement
entered into with the Company).

    5.8 The representations, warranties and agreements of the Purchaser
contained herein and in any other writing delivered in connection with the
transactions contemplated hereby shall be true and correct in all respects on
and as of the relevant Closing Date of the sale of the Securities as if made on
and as of such date and shall survive the execution and delivery of this
Agreement and the purchase of the Securities.

    5.9 IN MAKING AN INVESTMENT DECISION, PURCHASERS MUST RELY ON THEIR OWN
EXAMINATION OF THE COMPANY AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS
AND RISKS INVOLVED. ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY
AUTHORITY HAS NOT RECOMMENDED THE SECURITIES. FURTHERMORE, THE FOREGOING
AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS
PURCHASE AGREEMENT OR OTHER WRITINGS DELIVERED IN CONNECTION WITH THE OFFER. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

    5.10 THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED, RESOLD OR OTHERWISE DISPOSED OF EXCEPT AS
PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS,
PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. PURCHASERS SHOULD BE AWARE THAT
THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME.

    5.11 If the Purchaser is a Registered Representative of an NASD member firm,
the Purchaser must give such firm the notice required by the NASD's Rules of
Fair Practice, receipt of which must be acknowledged by such firm on the
signature page hereof.

    6. DEFAULTING PROSPECTIVE PURCHASERS. (a) If, on the relevant Closing Date,
a prospective Purchaser defaults in the performance of its obligations under
this Agreement, a non-defaulting prospective Purchaser may make arrangements for
the purchase of the Securities that would have been purchased by such defaulting
prospective Purchaser by other persons satisfactory to the Company and the
non-defaulting prospective Purchasers, but if no such arrangements are made
within 36 hours after such default, this Agreement shall terminate without
liability on the part of the non-defaulting prospective Purchasers or the
Company except that prospective Purchasers will continue to be liable for the
payment of expenses to the extent

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set forth in Section 7.8 and except that the provisions of Section 3.5 shall not
terminate and shall remain in effect.

    (b) Nothing contained herein shall relieve a defaulting prospective
Purchaser of any liability it may have for damages caused by its default. If
other purchasers agree to purchase the Securities of a defaulting prospective
Purchaser, either the non-defaulting prospective Purchaser or the Company may
postpone a Closing Date for up to seven (7) full business days in order to
effect any changes that in the reasonable opinion of counsel for the Company or
counsel for the Placement Agent may be necessary in the Placement Memorandum,
the Operative Documents or in any other document or arrangement, and the Company
agrees to prepare and distribute promptly any amendment or supplement to the
Placement Memorandum that effects any such changes.

        7.  MISCELLANEOUS

    7.1 GOVERNING LAW. This Agreement shall be governed by and construed under
the laws of the State of New York without regard to any otherwise applicable
principles of conflicts of laws.

    7.2 SURVIVAL. The representations and warranties made by the parties in this
Agreement shall survive the consummation of the transactions herein contemplated
until the expiration of the statute of limitations with respect to claims
arising under Section 10(b) of the Securities Exchange Act of 1934, as amended,
with respect to the purchase of Securities hereunder.

    7.3 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors and administrators of the parties hereto.

    7.4 ENTIRE AGREEMENT. This Agreement and the Exhibits hereto, constitute the
full and entire understanding and agreement among the parties with regard to the
subjects hereof and no party shall be liable or bound to any other party in any
manner by any representations, warranties, covenants or agreements except as
specifically set forth herein or therein. Nothing in this Agreement, express or
implied, is intended to confer upon any party, other than the parties hereto and
their respective successors and assigns, any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
herein.

    7.5 SEVERABILITY. In the event that any provision of this Agreement shall be
invalid, illegal or unenforceable, it shall, to the extent practicable, be
modified so as to make it valid, legal and enforceable and to retain as nearly
as practicable the intent of the parties, and the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby. To the extent permitted by law, the parties hereto waive the
benefit of any provision of law that renders any provision of this Agreement
invalid or unenforceable in any respect.

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    7.6 AMENDMENT AND WAIVER. Except as otherwise provided herein, any term of
this Agreement may be amended, and the observance of any term of this Agreement
may be waived (either generally or in a particular instance, either
retroactively or prospectively, and either for a specified period of time or
indefinitely), with the written consent of the Company and the Purchaser.

    7.7 NOTICES. All notices and other communications required or permitted
hereunder shall be in writing and shall be deemed effectively given upon
personal delivery, on the first business day following mailing by overnight
courier, or on the fifth day following mailing by registered or certified mail,
return receipt requested, postage prepaid, addressed to the Company and the
Purchaser at the respective addresses included herein.

    7.8 FEES AND EXPENSES. Except as otherwise provided herein, the Company and
the Purchasers shall bear their own expenses and legal fees incurred on its
behalf with respect to this Agreement and the transactions contemplated hereby.

    7.9 TITLES AND SUBTITLES. The titles of the paragraphs and subparagraphs of
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

    7.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one instrument.

    7.11 NO WAIVER. No waiver by any party to this Agreement of any one or more
defaults by any other party or parties in the performance of any of the
provisions hereof shall operate or be construed as a waiver of any future
default or defaults, whether of a like or different nature. Except as expressly
provided herein, no failure or delay on the part of any party in exercising any
right, power or remedy hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy.

    8. ESCROW AGENT. To induce Mintz Levin Cohn Ferris Glovsky and Popeo PC to
serve as the escrow agent and to act in such capacity hereunder, it is agreed by
the parties hereto that:

    (a) The escrow agent shall not be under any duty to give the property held
by it hereunder (the "Escrowed Property") any greater degree of care than it
gives its own similar property.

    (b) This Section 8 of this Agreement expressly sets forth all the duties of
the escrow agent with respect to any and all matters pertinent hereto. No
implied duties or obligations shall be read into this Agreement against the
escrow agent. The provisions of any agreement shall not bind the escrow agent
among the other parties hereto except this Section 8 of this Agreement.

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    (c) The escrow agent shall not be liable, except for its own gross
negligence or willful misconduct and, except with respect to claims based upon
such gross negligence or willful misconduct that are successfully asserted
against the escrow agent, the other parties hereto shall jointly and severally
indemnify and hold harmless the escrow agent from and against any and all
losses, liabilities, claims, actions, damages and expenses, including, without
limitation, reasonable attorneys' fees and disbursements, arising out of or in
connection with this Agreement.

    (d) The escrow agent shall be entitled to rely upon any order, judgment,
certification, demand, notice, instrument or other writing delivered to it
hereunder without being required to determine the authenticity or the
correctness of any fact stated therein or the propriety or validity of the
service thereof. The escrow agent may act in reliance upon any instrument or
signature believed by it to be genuine and may assume that any person purporting
to give receipt or advice or make any statement or execute any document in
connection with the provisions hereof has been duly authorized to do so.

    (e) The escrow agent may act pursuant to the advice of counsel with respect
to any matter relating to this Agreement and shall not be liable for any action
taken or omitted in accordance with such advice.

    (f) The escrow agent does not have any interest in the Escrowed Property
deposited hereunder but is serving as escrow holder only and having only
possession thereof. The other parties shall, on a joint and several basis, pay
or reimburse the escrow agent upon request for any and all expenses, if any,
incurred by the escrow agent in connection with this Agreement and transfer
taxes or other taxes relating to the Escrowed Property incurred in connection
herewith and shall indemnify and hold harmless the escrow agent from any amounts
that it is obligated to pay in the way of such expenses and taxes. This
subparagraph and subparagraph (c) shall survive notwithstanding any termination
of this Agreement or the resignation of the escrow agent.

    (g) The escrow agent makes no representation as to the validity, value,
genuineness or the collectability of any security or other document or
instrument held by or delivered to it.

    (h) The escrow agent may at any time resign as such by delivering the
Escrowed Property to any successor escrow agent jointly designated by the other
parties hereto in writing, or to any court of competent jurisdiction, whereupon
the escrow agent shall be discharged of and from any and all further obligations
arising in connection with this Agreement. The resignation of the escrow agent
will take effect on the earlier of (a) the appointment of a successor (including
a court of competent jurisdiction) or (b) the day which is 30 days after the
date of delivery of its written notice of resignation to the other parties
hereto. If at that time the escrow agent has not received a designation of a
successor escrow agent, the escrow agent's sole responsibility after that time
shall be to safekeep the Escrowed Property until receipt of a designation of
successor escrow agent or a joint written disposition instruction by the other
parties hereto or a final order of a court of competent jurisdiction.

                                       11

<PAGE>

    (i) In the event of any disagreement between the other parties hereto
resulting in adverse claims or demands being made in connection with the
Escrowed Property, or in the event that the escrow agent in good faith is in
doubt as to what action it should take hereunder, the escrow agent shall be
entitled to retain the Escrowed Property until the escrow agent shall have
received (i) a final non-appealable order of a court of competent jurisdiction
directing delivery of the Escrowed Property or (ii) a written agreement executed
by the other parties hereto directing delivery of the Escrowed Property, in
which event the escrow agent shall disburse the Escrowed Property in accordance
with such order or agreement. Any court order shall be accompanied by a legal
opinion by counsel for the presenting party satisfactory to the escrow agent to
the effect that said opinion is final and non-appealable.

    (j) Notwithstanding anything to the contrary contained herein, the escrow
agent's duties and obligations hereunder shall terminate upon the release and
distribution of the Escrowed Property in accordance with the terms of this
Agreement.

    (k) Each of the Company and the Purchaser understands and agrees that,
notwithstanding its duties as escrow agent hereunder, the escrow agent is the
attorney for the Company, and, accordingly, neither any services as escrow agent
hereunder nor any provisions hereof, either express or implied, shall restrict
or inhibit the escrow agent in any way from representing the Company or its
affiliates in any action, dispute, controversy, arbitration, suit or negotiation
arising under this Agreement or under any other agreement or in any manner or
context whatsoever, whether or not directly or indirectly involving the Company
or its affiliates.

        9.  EXECUTION OF AGREEMENT

    THE PURCHASER ACKNOWLEDGES THAT THE PURCHASER HAS SIGNED THIS AGREEMENT ON
THE PURCHASER'S OWN BEHALF, AND NOT BY POWER OF ATTORNEY.

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

____________________________________________________
Signature of Subscriber(s)

____________________________________________________
Name of Subscriber(s)
[please print]

____________________________________________________
Address of Subscriber(s)

                                       12

<PAGE>

____________________________________________________
Social Security or Taxpayer
Identification Number of Subscriber(s)

____________________________________________________
Number of Shares Subscribed for

____________________________________________________
Number of Warrants Subscribed for

$___________________________________________________
U.S. Dollar Amount Invested

Date:    ____________, 2000

* If Subscriber is a Registered Representative with a NASD member firm, have the
following acknowledgment signed by the appropriate party:

The undersigned NASD member firm acknowledges receipt of the notice required by
Article 3, Sections 28(a) and (b) of the Rules of Fair Practice.

____________________________________________________
Name of NASD Member Firm

____________________________________________________
By:  Authorized Officer

                                  Subscription Accepted:

                                  PALATIN TECHNOLOGIES, INC.

                                  By: _____________________________________
                                           Carl Spana, Ph.D.
                                           Chief Executive Officer
Date:  __________, 2000

                                       13

<PAGE>

                                    EXHIBIT A

                           WIRE TRANSFER INSTRUCTIONS

    Wire transfers should be made to Mintz Levin Cohn Ferris Glovsky and Popeo
PC, as Escrow Agent, [Fleet Bank of Massachusetts, N.A., Malden MA 02148,
ABA#011000138, Account Name: Mintz Levin Cohn Ferris Glovsky and Popeo PC Firm
Account, Account Number 5838-6095, Reference: Palatin Technologies]REGISTRATION RIGHTS AGREEMENT

    This Registration Rights Agreement (this "Agreement") is made this ___ day
of _________, 2000, by PALATIN TECHNOLOGIES, INC., a Delaware corporation (the
"Company"), for the benefit of each Purchaser (individually a "Purchaser" and
collectively the "Purchasers") entering into that certain Purchase Agreement
(the "Purchase Agreement") with the Company.

BACKGROUND

    Pursuant to the Purchase Agreement, the Company has offered (the "Offering")
for sale up to a maximum of $15,000,000 of (a) shares (the "Shares") of the
Company's Common Stock, $.01 par value per share (the "Common Stock") and (b)
redeemable warrants (the "Warrants") to purchase one share of Common Stock of
the Company for every five shares of Common Stock purchased under the Purchase
agreement. The Shares and Warrants are sometimes collectively called the
"Securities." In order to induce the Purchasers to purchase the Securities, the
Company has agreed to provide the registration rights set forth in this
Agreement.

1.  SECURITIES LAWS REPRESENTATIONS AND COVENANTS OF PURCHASER.

    This Agreement is made for the benefit of the Purchasers in reliance upon
each Purchaser's representations to the Company, as the same are set forth in
Section 4 of the Purchase Agreement.

2.  REGISTRATION RIGHTS.

    2.1 CERTAIN DEFINITIONS. As used in this Agreement, the following terms
        shall have the following respective meanings:

        (a) "COMMISSION" shall mean the Securities and Exchange Commission or
            any other federal agency at the time administering the Securities
            Act.

        (b) "FORM S-1, FORM SB-1, FORM S-2, FORM SB-2 AND FORM S-3" shall mean
            Form S-1, Form SB-1, Form S-2, Form SB-2 or Form S-3, respectively,
            promulgated by the Commission or any substantially similar form then
            in effect.

        (c) "PURCHASERS" shall mean, collectively, the Purchasers, their
            permitted assignees and transferees and, individually, a Purchaser
            and any permitted assignee or transferee of such Purchaser.

        (d) The terms "REGISTER", "REGISTERED" and "REGISTRATION" refer to a
            registration effected by preparing and filing a Registration
            Statement or Statements or similar documents in compliance with the
            Securities Act,

                                       1

<PAGE>

            and the declaration or ordering by the Commission of the
            effectiveness of such Registration Statement.

        (e) "REGISTRABLE SECURITIES" shall mean the Shares and Warrant Shares so
            long as such shares are ineligible for sale under subparagraph (k)
            of Rule 144.

        (f) "REGISTRATION EXPENSES" shall mean all expenses incurred by the
            Company in complying with Section 2, including, without limitation,
            all federal and state registration, qualification and filing fees,
            printing expenses, fees and disbursements of counsel for the
            Company, accountant fees, blue sky fees and expenses and, the
            expense of any special audits incident to or required by any such
            Registration.

        (g) "REGISTRATION STATEMENT" shall mean Form S-1, Form SB-1, Form S-2,
            Form SB-2 or Form S-3, whichever is applicable, unless otherwise
            specified herein.

        (h) "RULE 144" shall mean Rule 144 promulgated by the Commission
            pursuant to the Securities Act.

        (i) "SECURITIES ACT" shall mean the Securities Act of 1933, as amended.

        (j) "SELLING EXPENSES" shall mean all underwriting discounts and selling
            commissions applicable to the sale of Registrable Securities
            pursuant to this Agreement.

        (k) "SELLING STOCKHOLDER" shall mean a holder of Registrable Securities
            who requests Registration under Section 2.3 hereof or whose shares
            of Common Stock become Registered pursuant to Section 2.2 hereof.

        (l) "WARRANT SHARES" shall mean the shares of capital stock of the
            Company underlying the Warrants.

Capitalized terms used but not defined herein shall have the meanings ascribed
to such terms in the Purchase Agreement.

    2.2 REQUIRED REGISTRATION

        (a) Within the later to occur of sixty (60) days following the Final
            Closing Date of the Offering or November 22, 2000, the Company shall
            use its best efforts to file with the Commission a Registration
            Statement for the purpose of Registering, upon the effectiveness of
            such Registration Statement, the Shares and the Warrant Shares. The
            Company will use its

                                       2

<PAGE>

            reasonable best efforts to ensure that the Registration Statement is
            declared effective within 60 days of the filing date.

        (b) The Company shall use its best efforts to maintain with the
            Commission a registration statement effective until the earlier of
            the second anniversary of the first date on which no Warrants remain
            unexercised or unexpired or the date all shares purchased by the
            Investors may be sold under Rule 144 during any 90 day period.

        (c) In the event the Registration Statement has not been declared
            effective by the SEC within 90 days of filing, the Company shall for
            each 30 day period ("Penalty Period") during which the shares of
            Common Stock remain unregistered pay to Investors, at the Company's
            election, either the number of additional shares of Common Stock
            equal to 1% ("Payment Amount") of the aggregate purchase price paid
            for the shares of Common Stock purchased under the Agreement divided
            by the market value (determined as of the last trading day of the
            Penalty Period) of a share of Common Stock ("Penalty Shares"), or a
            cash payment equal to the Payment Amount.

    2.3 PIGGYBACK REGISTRATION

        (a) Until the time set forth in Section 2.3(g) hereof, each time that
            the Company proposes to Register a public offering of its Common
            Stock, other than (i) pursuant to a Registration Statement on Form
            S-4 or Form S-8 or similar or successor forms or (ii) on a
            Registration Statement filed in connection with an exchange offer or
            other offer of Common Stock solely to the then-existing stockholders
            of the Company, the Company shall promptly give written notice of
            such proposed Registration to all holders of Shares and Warrant
            Shares, which shall offer such holders the right to request
            inclusion of any Registrable Securities in the proposed
            Registration.

        (b) Each holder of Shares or Warrant Shares shall have ten (10) days or
            such longer period as shall be set forth in the notice from the
            receipt of such notice to deliver to the Company a written request
            specifying the number of shares of Registrable Securities such
            holder intends to sell and the holder's intended plan of
            disposition.

        (c) The Company shall have the exclusive right to select all
            underwriters for any underwritten public offering of securities of
            the Company, including all Shares and Warrant Shares. In the event
            that the proposed Registration by the Company is, in whole or in
            part, an underwritten public offering of securities of the Company,
            any request under Section 2.3(b) shall contain

                                       3

<PAGE>

            the holder's agreement that the Registrable Securities will be
            included in the underwriting on the same terms and conditions as the
            shares of Common Stock, if any, otherwise being sold through
            underwriters under such Registration.

        (d) Upon receipt of a written request pursuant to Section 2.3(b), the
            Company shall promptly use its best efforts to cause all such
            Registrable Securities to be Registered, to the extent required to
            permit sale or disposition as set forth in the written request.

        (e) Notwithstanding the foregoing, if the managing underwriter of an
            underwritten public offering determines and advises in writing that
            the inclusion of all Registrable Securities proposed to be included
            in the underwritten public offering, together with any shares
            proposed to be sold by the Company for its own account and any other
            issued and outstanding shares of Common Stock proposed to be
            included therein by holders other than the holders of Registrable
            Securities (such other holders' shares hereinafter collectively
            referred to as the "Other Shares"), would interfere with the
            successful marketing of the securities proposed to be included in
            the underwritten public offering, including the price at which such
            securities can be sold, then the number of such shares of persons
            other than the Company that otherwise would be included in such
            underwritten public offering shall be excluded from such
            underwritten public offering in a number deemed necessary by such
            managing underwriter, first by excluding, to the extent necessary,
            other shares held by persons who have not exercised contractual
            rights to include such Shares in the offering pursuant to the Prior
            Registration Rights Agreements (as hereinafter defined), and then,
            to the extent necessary, by excluding Registrable Securities
            participating in such underwritten public offering, pro rata, based
            on the number of shares of Registrable Securities each holder
            proposes to include; and, then, excluding to the extent necessary,
            other Shares proposed to be included by the holders of other Shares
            who have exercised registration rights granted to them under
            registration rights agreements of the Company in effect on the date
            hereof or any other registration rights in effect on the date hereof
            (collectively, the "Prior Registration Rights Agreements").

        (f) All Shares and Warrant Shares that are not included in an
            underwritten public offering pursuant to Section 2.3 shall be
            withheld from the market by the holders thereof for a period, not to
            exceed 12 months following a public offering, that the managing
            underwriter reasonably determines is necessary in order to effect
            the underwritten public offering. The holders of such Shares and the
            Warrant Shares shall execute such documentation as the managing
            underwriter reasonably requests to evidence this lock-up.

                                       4

<PAGE>

        (g) The registration rights provided by this Agreement shall expire with
            respect to any Registrable Security upon the earliest to occur of
            (i) the effectiveness of a Registration Statement that includes in
            the Registration effected thereby, at the request of a Selling
            Stockholder, such Registrable Security; (ii) the date on which such
            Registrable Security is eligible for resale under Rule 144 without
            regard to the volume limitations thereof; and (iii) five years from
            the date hereof.

    2.4 PREPARATION AND FILING. If and whenever the Company is under an
        obligation pursuant to the provisions of this Section 2 to use its best
        efforts to effect the Registration of any Registrable Securities, the
        Company shall, as expeditiously as practicable:

        (a) prepare and file with the Commission a Registration Statement with
            respect to such Registrable Securities, using such form of available
            Registration Statement as is reasonably selected by the Company
            (unless otherwise specified herein), and use its best efforts to
            cause such Registration Statement to become and remain effective,
            keeping each Selling Stockholder advised as to the initiation,
            progress and completion of the Registration;

        (b) prepare and file with the Commission such amendments and supplements
            to such Registration Statements and the prospectus used in
            connection therewith as may be necessary to keep such Registration
            Statement effective for, in the case of a Required Registration
            under Section 2.2, the period set forth in Section 2.2(b) and, in
            the case of a Piggyback Registration under Section 2.3, six months,
            and to comply with the provisions of the Securities Act with respect
            to the sale or other disposition of all Registrable Securities
            covered by such Registration Statement;

        (c) furnish to each Selling Stockholder such number of copies of any
            summary prospectus or other prospectus, including a preliminary
            prospectus and all amendments and supplements thereto, in conformity
            with the requirements of the Securities Act, and such other
            documents as such Selling Stockholder may reasonably request in
            order to facilitate the public sale or other disposition of such
            Registrable Securities; provided, however, that no such prospectus
            need be furnished more than, in the case of a Required Registration
            under Section 2.2, six months after the conclusion of the period set
            forth in Section 2.2(b) and, in the case of a Piggyback Registration
            under Section 2.3, six months after the effective date of the
            Registration Statement related thereto;

                                       5

<PAGE>

        (d) use its best efforts to register or qualify the Registrable
            Securities covered by such Registration Statement under the
            securities or blue sky laws of such jurisdictions as each Selling
            Stockholder shall reasonably request and do any and all other acts
            or things which may be reasonably necessary or advisable to enable
            such holder to consummate the public sale or other disposition in
            such jurisdictions of such Registrable Securities; provided,
            however, that the Company shall not be required to consent to
            general service of process, qualify to do business as a foreign
            corporation where it would not be otherwise required to qualify or
            submit to liability for state or local taxes where it is not liable
            for such taxes or provide any undertaking or make any change in its
            Certificate of Incorporation; and

        (e) at any time when a prospectus covered by such Registration Statement
            is required to be delivered under the Securities Act within the
            appropriate period mentioned in Section 2.2(b) or Section 2.3(b)
            hereof, as the case may be, notify each Selling Stockholder of the
            happening of any event as a result of which the prospectus included
            in such Registration Statement, as then in effect, includes an
            untrue statement of a material fact or omits to state a material
            fact required to be stated therein or necessary to make the
            statements therein not misleading in the light of the circumstances
            then existing and, at the request of such seller, prepare, file and
            furnish to such seller a reasonable number of copies of a supplement
            to or an amendment of such prospectus as may be necessary so that,
            as thereafter delivered to the purchasers of such shares, such
            prospectus shall not include an untrue statement of a material fact
            or omit to state a material fact required to be stated therein or
            necessary to make the statement therein not misleading in the light
            of the circumstances then existing. The Company may delay amending
            or supplementing the prospectus for a period of up to 90 days if the
            Company is then engaged in negotiations regarding a material
            transaction that has not been publicly disclosed, and the Selling
            Stockholders shall suspend their sale of Shares until an appropriate
            supplement or prospectus has been forwarded to them or the proposed
            transaction is abandoned.

Notwithstanding the foregoing, with respect to the proposed Registration of
Registrable Securities pursuant to Section 2.3 hereof, the Company may withdraw
or cease proceeding with any proposed Registration of Registrable Securities if
it has withdrawn or ceased proceeding with the proposed Registration of Common
Stock of the Company with which the Registration of such Registrable Securities
was to be included.

    2.5 EXPENSES. The Company shall pay all Registration Expenses incurred by
        the Company in complying with this Section 2.

                                       6

<PAGE>

    2.6 INFORMATION FURNISHED BY PURCHASER. It shall be a condition precedent to
        the Company's obligations under this Agreement as to any Selling
        Stockholder that each Selling Stockholder furnish to the Company in
        writing such information regarding such Selling Stockholder and the
        distribution proposed by such Selling Stockholder as the Company may
        reasonably request.

    2.7 INDEMNIFICATION.

        2.7.1 COMPANY'S INDEMNIFICATION OF PURCHASERS. The Company shall
            indemnify each Selling Stockholder, each of its officers, directors
            and constituent partners, and each person controlling (within the
            meaning of the Securities Act) such Selling Stockholder, against all
            claims, losses, damages or liabilities (or actions in respect
            thereof) suffered or incurred by any of them, to the extent such
            claims, losses, damages or liabilities arise out of or are based
            upon any untrue statement (or alleged untrue statement) of a
            material fact contained in any prospectus or any related
            Registration Statement incident to any such Registration, or any
            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 any violation by the Company of any rule
            or regulation promulgated under the Securities Act applicable to the
            Company and relating to actions or inaction required of the Company
            in connection with any such Registration; and the Company will
            reimburse each such Selling Stockholder, each of its officers,
            directors and constituent partners and each person who controls any
            such Selling Stockholder, for any reasonable, documented legal and
            other expenses incurred in connection with investigating or
            defending any such claim, loss, damage, liability or action;
            PROVIDED, HOWEVER, that the indemnity contained in this Section
            2.7.1 shall not apply to amounts paid in settlement of any such
            claim, loss, damage, liability or action if settlement is effected
            without the consent of the Company (which consent shall not
            unreasonably be withheld); and PROVIDED, FURTHER, that the Company
            will not be liable in any such case to the extent that any such
            claim, loss, damage, liability or expense arises out of or is based
            upon any untrue (or alleged untrue) statement or omission based upon
            written information furnished to the Company by such Selling
            Stockholder, underwriter, controlling person or other indemnified
            person and stated to be for use in connection with the offering of
            securities of the Company.

<PAGE>

        2.7.2 SELLING STOCKHOLDER'S INDEMNIFICATION OF COMPANY. Each Selling
            Stockholder shall indemnify the Company, each of its directors and
            officers, each underwriter, if any, of the Company's securities
            covered by a Registration Statement, each person who controls the
            Company or such underwriter within the meaning of the Securities
            Act, and each other

                                       7

<PAGE>

            Selling Stockholder, each of its officers, directors and constituent
            partners and each person controlling such other Selling Stockholder,
            against all claims, losses, damages and liabilities (or actions in
            respect thereof) suffered or incurred by any of them and arising out
            of or based upon any untrue statement (or alleged untrue statement)
            of a material fact contained in such Registration Statement or
            related prospectus, or any 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 any violation by
            such Selling Stockholder of any rule or regulation promulgated under
            the Securities Act applicable to such Selling Stockholder and
            relating to actions or inaction required of such Selling Stockholder
            in connection with the Registration of the Registrable Securities
            pursuant to such Registration Statement; and will reimburse the
            Company, such other Selling Stockholders, such directors, officers,
            partners, persons, underwriters and controlling persons for any
            reasonable, documented legal and other expenses incurred in
            connection with investigating or defending any such claim, loss,
            damage, liability or action; PROVIDED, HOWEVER, that such
            indemnification and reimbursement shall be to the extent, but only
            to the extent, that such untrue statement (or alleged untrue
            statement) or omission (or alleged omission) is made in such
            Registration Statement or prospectus in reliance upon and in
            conformity with written information furnished to the Company by such
            Selling Stockholder and stated to be for use in connection with the
            offering of Registrable Securities.

<PAGE>

        2.7.3 INDEMNIFICATION PROCEDURE. Promptly after receipt by an
            indemnified party under this Section 2.7 of notice of the
            commencement of any action which may give rise to a claim for
            indemnification hereunder, such indemnified party will, if a claim
            in respect thereof is to be made against an indemnifying party under
            this Section 2.7, notify the indemnifying party in writing of the
            commencement thereof and generally summarize such action. The
            indemnifying party shall have the right to participate in and to
            assume the defense of such claim, and shall be entitled to select
            counsel for the defense of such claim with the approval of any
            parties entitled to indemnification, which approval shall not be
            unreasonably withheld. Notwithstanding the foregoing, the parties
            entitled to indemnification shall have the right to employ separate
            counsel (reasonably satisfactory to the indemnifying party) to
            participate in the defense thereof, but the fees and expenses of
            such separate counsel shall be at the expense of such indemnified
            parties unless the named parties to such action or proceedings
            include both the indemnifying party and the indemnified parties and
            the indemnifying party or such indemnified parties shall have been
            advised by counsel that there are one or more legal defenses
            available to the indemnified parties which are different from or

                                       8

<PAGE>

            additional to those available to the indemnifying party (in which
            case, if the indemnified parties notify the indemnifying party in
            writing that they elect to employ separate counsel at the reasonable
            expense of the indemnifying party, the indemnifying party shall not
            have the right to assume the defense of such action or proceeding on
            behalf of the indemnified parties, it being understood, however,
            that the indemnifying party shall not, in connection with any such
            action or proceeding or separate or substantially similar or related
            action or proceeding in the same jurisdiction arising out of the
            same general allegations or circumstances, be liable for the
            reasonable, documented fees and expenses of more than one separate
            counsel at any time for all indemnified parties, which counsel shall
            be designated in writing by the Purchasers of a majority of the
            Registrable Securities).

        2.7.4 CONTRIBUTION. If the indemnification provided for in this Section
            2.7 from an indemnifying party is unavailable to an indemnified
            party hereunder in respect to any losses, claims, damages,
            liabilities or expenses referred to herein, then the indemnifying
            party, in lieu of indemnifying such indemnified party, shall
            contribute to the amount paid or payable by such indemnified party
            as a result of such losses, claims, damages, liabilities or expenses
            in such proportion as is appropriate to reflect the relative fault
            of the indemnifying party and indemnified party in connection with
            the statements or omissions which result in such losses, claims,
            damages, liabilities or expenses, as well as any other relevant
            equitable considerations. The relative fault of such indemnifying
            party and 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 or alleged omission to state a
            material fact relates to information supplied by such indemnifying
            party or indemnified party and the parties' relative intent,
            knowledge, access to information supplied by such indemnifying party
            or indemnified party and opportunity to correct or prevent such
            statement or omission. The amount paid or payable by a party as a
            result of the losses, claims, damages, liabilities and expenses
            referred to above shall be deemed to include any documented legal or
            other fees or expenses reasonably incurred by such party in
            connection with investigating or defending any action, suit,
            proceeding or claim, or in collecting such indemnity or
            reimbursement from the indemnifying party.

3.  COVENANTS OF THE COMPANY.

    The Company agrees to:

                                       9

<PAGE>

        (a) Notify the holders of Registrable Securities included in a
            Registration Statement (i) of the issuance by the Commission of any
            stop order suspending the effectiveness of such Registration
            Statement and (ii) upon learning of the initiation of any
            proceedings for the purpose of suspending such effectiveness, the
            existence of such proceedings. The Company will make every
            reasonable effort to prevent the issuance of any stop order and, if
            any stop order is issued, to obtain the lifting thereof at the
            earliest possible time.

        (b) If the Common Stock is then listed on a national securities
            exchange, use its best efforts to cause the Registrable Securities
            to be listed on such exchange. If the Common Stock is not then
            listed on a national securities exchange, use its best efforts to
            facilitate the reporting of the Registrable Securities on Nasdaq.

        (c) Take all other reasonable actions necessary to expedite and
            facilitate disposition of the Registrable Securities by the holders
            thereof pursuant to the Registration Statement.

        (d) With a view to making available to the holders of Registrable
            Securities the benefits of Rule 144 promulgated under the Securities
            Act and any other rule or regulation of the Commission that may at
            any time permit the Purchasers to sell securities of the Company to
            the public without registration, the Company agrees to:

            (i) make and keep adequate current public information with respect
                to the Company available, as those terms are understood and
                defined in Rule 144, at all times after 90 days after the
                effective date of the first Registration Statement filed by the
                Company for the offering of its securities to the general
                public;

            (ii) file with the Commission in a timely manner all reports and
                other documents required of the Company under the Securities Act
                and the Securities Exchange Act of 1934 (the "1934 Act"); and

            (iii) furnish to each holder of Shares, so long as such holder of
                Shares owns any Shares, forthwith upon written request (a) a
                written statement by the Company as to whether it has complied
                with the reporting requirements of Rule 144, the Securities Act
                and the 1934 Act, (b) a copy of the most recent annual or
                quarterly report of the Company and such other reports and
                documents so filed by the Company and (c) such other information
                as may be reasonably requested and as is publicly available in
                availing the holders of Shares of any rule or regulation of the
                Commission which permits the selling of any such securities
                without registration.

                                       10

<PAGE>

        (e) Prior to the filing of a Registration Statement or any amendment
            thereto (whether pre-effective or post-effective), and prior to the
            filing of any prospectus or prospectus supplement related thereto,
            the Company will provide each Selling Stockholder with copies of all
            pages thereto, if any, which reference such Selling Stockholder.

        (f) If the Registration Statement relates to an underwritten offering,
            enter into and perform its obligations under an underwriting
            agreement, in usual and customary form, including, without
            limitation, customary indemnification and contribution obligations,
            with the underwriter's representative.

        (g) Make generally available to its security holders as soon as
            practicable, but not later than forty five (45) days after the close
            of the period covered thereby, the Company's financial statements as
            filed with the Commission.

        (h) At the request of the Investors who hold a majority in interest of
            the Registrable Securities being sold, furnish to the underwriters,
            if any, on the date that Registrable Securities are delivered to the
            underwriters for sale in connection with a registration pursuant to
            this Agreement (i) an opinion, dated such date, of the counsel
            representing the Company for the purposes of such registration, in
            form and substance as is customarily given to underwriters in an
            underwritten public offering, addressed to the underwriters, and
            (ii) a letter, dated such date, from the independent certified
            public accountants of the Company, in form and substance as is
            customarily given by independent certified public accountants to
            underwriters in an underwritten public offering, addressed to the
            underwriters.

        (i) Make available for inspection by any underwriters participating in
            the offering and the counsel, accountants or other agents retained
            by such underwriter, all pertinent financial and other records,
            corporate documents and properties of the Company, and cause the
            Company's officers, directors and employees to supply all
            information reasonably requested by such underwriters in connection
            with the Registration Statement.

        (j) Provide a transfer agent and registrar, which may be a single
            entity, for the Registrable Securities not later than the effective
            date of the Registration Statement.

        (k) Take all actions reasonably necessary to facilitate the timely
            preparation and delivery of certificates (not bearing any
            restrictive legend) representing the Registrable Securities sold
            pursuant to the Registration Statement and to enable such
            certificates to be in such denominations and registered in such
            names as the Purchasers or any underwriters may reasonably request.

                                       11

<PAGE>

4.  MISCELLANEOUS.

    (a) This Agreement shall be governed by and construed under the laws of the
        State of New York.

    (b) This Agreement may not be assigned by a Purchaser other than to the
        purchaser or transferee of more than 5,000 of the Purchaser's Shares,
        which purchaser or transferee shall be a permitted assign hereunder and
        under the Purchase Agreement. Except as otherwise expressly provided
        herein, the provisions hereof shall inure to the benefit of, and be
        binding upon, the successors, permitted assigns, heirs, executors and
        administrators of the parties hereto.

    (c) This Agreement and the other documents delivered pursuant hereto
        constitute the full and entire understanding and agreement among the
        parties with regard to the subjects hereof and no party shall be liable
        or bound to any other party in any manner by any representations,
        warranties, covenants or agreements except as specifically set forth
        herein or therein. Nothing in this Agreement, express or implied, is
        intended to confer upon any party, other than the parties hereto and
        their respective successors and permitted assigns, any rights, remedies,
        obligations, or liabilities under or by reason of this Agreement, except
        as expressly provided herein.

    (d) In the event that any provision of this Agreement shall be invalid,
        illegal or unenforceable, it shall, to the extent practicable, be
        modified so as to make it valid, legal and enforceable and to retain as
        nearly as practicable the intent of the parties, and the validity
        legality, and enforceability of the remaining provisions shall not in
        any way be affected or impaired thereby. To the extent permitted by law,
        the parties waive the benefit of any provision of law that renders any
        provision of the Agreement invalid or unenforceable in any respect.

    (e) Except as otherwise provided herein, any term of this Agreement may be
        amended, and the observance of any term of this Agreement may be waived
        (either generally or in a particular instance, either retroactively or
        prospectively, and either for a specified period of time or
        indefinitely), with the written consent of the Company and the
        Purchaser.

    (f) All notices and other communications required or permitted hereunder
        shall be in writing and shall be deemed effectively given upon personal
        delivery, on the first business day following mailing by overnight
        courier, or on the fifth day following mailing by registered or
        certified mail, return receipt requested, postage prepaid, addressed to
        the Company at its address as set forth in the Purchase Agreement and to
        the Purchaser at its address as shown on the books of the Company.

                                       12

<PAGE>

    (g) The titles of the paragraphs and subparagraphs of this Agreement are for
        convenience of reference only and are not to be considered in construing
        this Agreement.

    (h) This Agreement may be executed in any number of counterparts, each of
        which shall be deemed an original, but all of which together shall
        constitute one instrument.

    (i) No waiver by any party to this Agreement of any one or more defaults by
        any other party or parties in the performance of any of the provisions
        hereof shall operate or be construed as a waiver of any future default
        or defaults, whether of a like or different nature. Except as expressly
        provided herein, no failure or delay on the part of any party in
        exercising any right, power or remedy hereunder shall operate as a
        waiver thereof, nor shall any single or partial exercise of any such
        right, power or remedy preclude any other or further exercise thereof or
        the exercise of any other right, power or remedy.

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

-----------------------------------------  -------------------------------------
Signature of Subscriber(s)

-----------------------------------------  -------------------------------------
Name of Subscriber(s)
[please print]

-----------------------------------------  -------------------------------------
Address of Subscriber(s)

-----------------------------------------  -------------------------------------
Social Security or Taxpayer
Identification Number of Subscriber(s)

-----------------------------------------  -------------------------------------
Number of Shares Subscribed for

----------------------------------------
Number of Warrants Subscribed for

Date:    _____________, 2000

                                       13

<PAGE>

PALATIN TECHNOLOGIES, INC.

By:_____________________________________
Carl Spana Ph.D.
Chief Executive Officer

Date:    _________________, 2000

                                       14

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