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                                                                     EXHIBIT 4.4

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE 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 (THE "SECURITIES ACT"),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                              NEOTHERAPEUTICS, INC.

                                     WARRANT

                                          Warrant No. 1 Dated: February 25, 2000

               NeoTherapeutics, Inc., a Delaware corporation (the "Company"),
hereby certifies that, for value received, Strong River Investments, Inc., or
its registered assigns ("Holder"), is entitled, subject to the terms set forth
below, to purchase from the Company up to a total of 52,000 shares of common
stock, $.001 par value per share (the "Common Stock"), of the Company (each such
share, a "Warrant Share" and all such shares, the "Warrant Shares") at an
exercise price equal to $21.00 per share (as adjusted from time to time as
provided in Section 9, the "Exercise Price"), at any time and from time to time
from and after the date hereof and through and including February 25, 2005 (the
"Expiration Date"), and subject to the following terms and conditions:

               1. Registration of Warrant. The Company shall register this
Warrant, upon records to be maintained by the Company for that purpose (the
"Warrant Register"), in the name of the record Holder hereof from time to time.
The Company may deem and treat the registered Holder of this Warrant as the
absolute owner hereof for the purpose of any exercise hereof or any distribution
to the Holder, and for all other purposes, and the Company shall not be affected
by notice to the contrary.

               2. Registration of Transfers and Exchanges.

                      (a) This Warrant may only be transferred pursuant to an
effective registration statement under the Securities Act, to the Company or
pursuant to an available exemption from or in a transaction not subject to the
registration requirements of the Securities Act. In connection with any transfer
of this Warrant other than pursuant to an effective registration statement or to
the Company, the Company may require the transferor thereof to provide to the
Company an opinion of counsel selected by the transferor, the form and substance
of which opinion shall be reasonably satisfactory to the Company, to the effect
that such transfer does not require registration of such Warrant under the
Securities Act. Holder agrees to the imprinting, so long as is required by this
Section 2(a), of a legend substantially similar to that first above written on
any New Warrant (as defined below). Any such transferee shall agree in

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writing to be bound by the terms of this Warrant and shall have the rights of
Holder under this Warrant.

                      (b) The Company shall register the transfer of any portion
of this Warrant in the Warrant Register, upon surrender of this Warrant, with
the Form of Assignment attached hereto duly completed and signed, to the
Transfer Agent or to the Company at the office specified in or pursuant to
Section 3(b). Upon any such registration or transfer, a new warrant to purchase
Common Stock, in substantially the form of this Warrant (any such new warrant, a
"New Warrant"), evidencing the portion of this Warrant so transferred shall be
issued to the transferee and a New Warrant evidencing the remaining portion of
this Warrant not so transferred, if any, shall be issued to the transferring
Holder. The acceptance of the New Warrant by the transferee thereof shall be
deemed the acceptance of such transferee of all of the rights and obligations of
a holder of a Warrant.

                      (c) This Warrant is exchangeable, upon the surrender
hereof by the Holder to the office of the Company specified in or pursuant to
Section 3(b) for one or more New Warrants, evidencing in the aggregate the right
to purchase the number of Warrant Shares which may then be purchased hereunder.
Any such New Warrant will be dated the date of such exchange.

               3. Duration and Exercise of Warrants.

                      (a) This Warrant shall be exercisable by the registered
Holder on any business day before 8:00 P.M., New York City time, at any time and
from time to time on or after the date hereof to and including the Expiration
Date. At 8:00 P.M., New York City time on the Expiration Date, the portion of
this Warrant not exercised prior thereto shall be and become void and of no
value. Prior to the Expiration Date, the Company may not call or otherwise
redeem this Warrant without the prior written consent of the Holder.

                      (b) Subject to Sections 2(b), 6 and 10, upon surrender of
this Warrant, with the Form of Election to Purchase attached hereto duly
completed and signed, to the Company at its address for notice set forth in
Section 13 and upon payment of the Exercise Price multiplied by the number of
Warrant Shares that the Holder intends to purchase hereunder, in the manner
provided hereunder, all as specified by the Holder in the Form of Election to
Purchase, the Company shall promptly (but in no event later than 3 business days
after the Date of Exercise (as defined herein)) issue or cause to be issued and
cause to be delivered to or upon the written order of the Holder and in such
name or names as the Holder may designate, a certificate for the Warrant Shares
issuable upon such exercise, free of restrictive legends except (i) either in
the event that a registration statement covering the resale of the Warrant
Shares and naming the Holder as a selling stockholder thereunder is not then
effective or the Warrant Shares are not freely transferable without volume
restrictions pursuant to Rule 144(k) promulgated under the Securities Act of
1933, as amended (the "Securities Act"), or (ii) if this Warrant shall have been
issued pursuant to a written agreement between the original Holder and the
Company, as required by such agreement. Any person so designated by the Holder
to receive Warrant Shares shall be deemed to have become holder of record of
such Warrant Shares as of the Date of Exercise of this Warrant.

                      A "Date of Exercise" means the date on which the Company
shall have received (i) this Warrant (or any New Warrant, as applicable), with
the Form of Election to Purchase attached hereto (or attached to such New
Warrant) appropriately completed and duly

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signed, and (ii) payment of the Exercise Price for the number of Warrant Shares
so indicated by the holder hereof to be purchased.

                      (c) This Warrant shall be exercisable, either in its
entirety or, from time to time, for a portion of the number of Warrant Shares.
If less than all of the Warrant Shares which may be purchased under this Warrant
are exercised at any time, the Company shall issue or cause to be issued, at its
expense, a New Warrant evidencing the right to purchase the remaining number of
Warrant Shares for which no exercise has been evidenced by this Warrant.

               4. Piggyback Registration Rights. During the Effectiveness Period
(as defined in the Registration Rights Agreement, of even date herewith, between
the Company and the original Holder), the Company may not file any registration
statement with the Securities and Exchange Commission (other than registration
statements of the Company filed on Form S-8 or Form S-4, each as promulgated
under the Securities Act, pursuant to which the Company is registering
securities pursuant to a Company employee benefit plan or pursuant to a merger,
acquisition or similar transaction including supplements thereto, but not
additionally filed registration statements in respect of such securities) at any
time when there is not an effective registration statement covering the resale
of the Warrant Shares and naming the Holder as a selling stockholder thereunder,
unless the Company provides the Holder with not less than 20 days notice of its
intention to file such registration statement and provides the Holder the option
to include any or all of the applicable Warrant Shares therein. The piggyback
registration rights granted to the Holder pursuant to this Section shall
continue until all of the Holder's Warrant Shares have been sold in accordance
with an effective registration statement or upon the expiration of the Effective
Period. The Company will pay all registration expenses in connection therewith.

               5. Demand Registration Rights. During the Effectiveness Period if
the Warrant Shares are not registered pursuant to an effective registration
statement, the Holder may make a written request for the registration under the
Securities Act (a "Demand Registration"), of all of the Warrant Shares (the
"Registrable Securities"), and the Company shall use its best efforts to effect
such Demand Registration as promptly as possible, but in any case within 90 days
thereafter. Any request for a Demand Registration shall specify the aggregate
number of Registrable Securities proposed to be sold and shall also specify the
intended method of disposition thereof. The right to cause a registration of the
Registrable Securities under this Section 5 shall be limited to one such
registration. In any registration initiated as a Demand Registration, the
Company will pay all of its registration expenses in connection therewith. A
Demand Registration shall not be counted as a Demand Registration hereunder
until the registration statement filed pursuant to the Demand Registration has
been declared effective by the Securities and Exchange Commission and maintained
continuously effective for a period of at least 360 days or such shorter period
when all Registrable Securities included therein have been sold in accordance
with such registration statement, provided, however that any days on which such
registration statement is not effective or on which the Holder is not permitted
by the Company or any governmental authority to sell Warrant Shares under such
registration statement shall not count towards such 360 day period.

               6. Payment of Taxes. The Company will pay all documentary stamp
taxes attributable to the issuance of Warrant Shares upon the exercise of this
Warrant; provided, however, that the Company shall not be required to pay any
tax which may be payable in respect of any transfer involved in the registration
of any certificates for Warrant Shares or Warrants in a name other than that of
the Holder. The Holder shall be responsible for all other tax liability that

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may arise as a result of holding or transferring this Warrant or receiving
Warrant Shares upon exercise hereof.

               7. Replacement of Warrant. If this Warrant is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued in exchange
and substitution for and upon cancellation hereof, or in lieu of and
substitution for this Warrant, a New Warrant, but only upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction and
indemnity, if requested, satisfactory to it. Applicants for a New Warrant under
such circumstances shall also comply with such other reasonable regulations and
procedures and pay such other reasonable charges as the Company may prescribe.

               8. Reservation of Warrant Shares. The Company covenants that it
will at all times reserve and keep available out of the aggregate of its
authorized but unissued Common Stock, solely for the purpose of enabling it to
issue Warrant Shares upon exercise of this Warrant as herein provided, the
number of Warrant Shares which are then issuable and deliverable upon the
exercise of this entire Warrant, free from preemptive rights or any other actual
contingent purchase rights of persons other than the Holder (taking into account
the adjustments and restrictions of Section 9). The Company covenants that all
Warrant Shares that shall be so issuable and deliverable shall, upon issuance
and the payment of the applicable Exercise Price in accordance with the terms
hereof, be duly and validly authorized, issued and fully paid and nonassessable.

               9. Certain Adjustments. The Exercise Price and number of Warrant
Shares issuable upon exercise of this Warrant are subject to adjustment from
time to time as set forth in this Section 9. Upon each such adjustment of the
Exercise Price pursuant to this Section 9, the Holder shall thereafter prior to
the Expiration Date be entitled to purchase, at the Exercise Price resulting
from such adjustment, the number of Warrant Shares obtained by multiplying the
Exercise Price in effect immediately prior to such adjustment by the number of
Warrant Shares issuable upon exercise of this Warrant immediately prior to such
adjustment and dividing the product thereof by the Exercise Price resulting from
such adjustment. Notwithstanding anything to the contrary set forth herein, no
adjustment shall be made hereunder to the Exercise Price due to (i) the adoption
by the Company of a shareholders rights plan, (ii) the creation of "rights"
under such a plan that are evidenced by the shares of Common Stock to which they
are attached, but adjustments would be made if such rights are ever separated
from such shares of Common Stock or otherwise become evidenced by a separate
certificate or if, for any other reason, such rights would entitle the holders
thereof or of the Common Stock to which they attach to receive shares of Common
Stock , (iii) the granting of options or warrants to employees, officers,
directors, consultants and other service providers, and the issuance of shares
upon exercise of options granted, under any stock option plan heretofore or
hereinafter duly adopted by the Company, (iv) shares of Common Stock issuable
upon exercise of currently outstanding options and warrants and upon conversion
of any currently outstanding convertible securities of the Company, in each case
to the extent disclosed in Schedule 2.1(c) to the Securities Purchase Agreement
but not with respect to any amendment or modification thereof, (v) shares of
Common Stock issuable in connection with a Strategic Transaction (as defined in
Section 3.9 of the Securities Purchase Agreement), (vi) an underwritten public
offering of Common Stock resulting in net proceeds to the Company in excess of
$10,000,000, (vii) warrants issuable to Brighton Capital, Ltd. in connection
with the Securities Purchase Agreement and the issuance of shares upon exercise
thereof, (viii) warrants to be issued by the Company to Kingsbridge Capital
Limited to purchase 25,000 shares of Common Stock and the issuance of shares
upon exercise

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thereof, (ix) the granting of warrants to purchase up to 10,000 shares of Common
Stock in connection with equipment leasing or other debt financing transactions,
and (x) the issuance of shares of Common Stock issuable pursuant to the Private
Equity Line of Credit Agreement dated March 27, 1998 between the Company and
Kingsbridge Capital Limited.

                      (a) If the Company, at any time while this Warrant is
outstanding, (i) shall pay a stock dividend (except scheduled dividends paid on
outstanding preferred stock as of the date hereof which contain a stated
dividend rate) or otherwise make a distribution or distributions on shares of
its Common Stock or on any other class of capital stock payable in shares of
Common Stock, (ii) subdivide outstanding shares of Common Stock into a larger
number of shares, or (iii) combine outstanding shares of Common Stock into a
smaller number of shares, the Exercise Price shall be multiplied by a fraction
of which the numerator shall be the number of shares of Common Stock (excluding
treasury shares, if any) outstanding before such event and of which the
denominator shall be the number of shares of Common Stock (excluding treasury
shares, if any) outstanding after such event. Any adjustment made pursuant to
this Section shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution
and shall become effective immediately after the effective date in the case of a
subdivision or combination, and shall apply to successive subdivisions and
combinations.

                      (b) In case of any reclassification of the Common Stock or
any compulsory share exchange pursuant to which the Common Stock is converted
into other securities, cash or property, then the Holder shall have the right
thereafter to exercise this Warrant only into the shares of stock and other
securities and property receivable upon or deemed to be held by holders of
Common Stock following such reclassification or share exchange, and the Holder
shall be entitled upon such event to receive such amount of securities or
property equal to the amount of Warrant Shares such Holder would have been
entitled to had such Holder exercised this Warrant immediately prior to such
reclassification or share exchange. The terms of any such reclassification or
share exchange shall include such terms so as to continue to give to the Holder
the right to receive the securities or property set forth in this Section 9(b)
upon any exercise following any such reclassification or share exchange.

                      (c) If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to holders
of this Warrant) evidences of its indebtedness or assets or rights or warrants
to subscribe for or purchase any security (excluding those referred to in
Sections 9(a), (b) and (d)), then in each such case the Exercise Price shall be
determined by multiplying the Exercise Price in effect immediately prior to the
record date fixed for determination of stockholders entitled to receive such
distribution by a fraction of which the denominator shall be the Exercise Price
determined as of the record date mentioned above, and of which the numerator
shall be such Exercise Price on such record date less the then fair market value
at such record date of the portion of such assets or evidence of indebtedness so
distributed applicable to one outstanding share of Common Stock as determined by
the Company's independent certified public accountants that regularly examines
the financial statements of the Company (an "Appraiser").

                      (d) In case of any (1) merger or consolidation of the
Company with or into another Person, or (2) sale by the Company of more than
one-half of the assets of the Company (on a book value basis) in one or a series
of related transactions, or (3) tender or other offer or exchange (whether by
the Company or another Person) pursuant to which holders of Common Stock are
permitted to tender or exchange their shares for other securities, stock, cash

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or property of the Company or another Person; then the Holder shall have the
right thereafter to (A) exercise this Warrant for the shares of stock and other
securities, cash and property receivable upon or deemed to be held by holders of
Common Stock following such merger, consolidation or sale, and the Holder shall
be entitled upon such event or series of related events to receive such amount
of securities, cash and property as the Common Stock for which this Warrant
could have been exercised immediately prior to such merger, consolidation or
sales would have been entitled, (B) in the case of a merger or consolidation,
(x) require the surviving entity to issue to the Holder a warrant entitling the
Holder to acquire shares of such entity's common stock, which warrant shall have
terms identical (including with respect to exercise) to the terms of this
Warrant and shall be entitled to all of the rights and privileges set forth
herein and the agreements pursuant to which this Warrant was issued (including,
without limitation, as such rights relate to the acquisition, transferability,
registration and listing of such shares of stock other securities issuable upon
exercise thereof), or (C) in the event of an exchange or tender offer or other
transaction contemplated by clause (3) of this Section, tender or exchange this
Warrant for such securities, stock, cash and other property receivable upon or
deemed to be held by holders of Common Stock that have tendered or exchanged
their shares of Common Stock following such tender or exchange, and the Holder
shall be entitled upon such exchange or tender to receive such amount of
securities, cash and property as the shares of Common Stock for which this
Warrant could have been exercised immediately prior to such tender or exchange
would have been entitled as would have been issued. In the case of clause (B),
the exercise price applicable for the newly issued warrant shall be based upon
the amount of securities, cash and property that each shares of Common Stock
would receive in such transaction and the Exercise Price immediately prior to
the effectiveness or closing date for such transaction. The terms of any such
merger, sale, consolidation, tender or exchange shall include such terms so as
continue to give the Holder the right to receive the securities, cash and
property set forth in this Section upon any conversion or redemption following
such event. This provision shall similarly apply to successive such events.

                      (e) For the purposes of this Section 9, the following
clauses shall also be applicable:

                             (i) Record Date. In case the Company shall take a
record of the holders of its Common Stock for the purpose of entitling them (A)
to receive a dividend or other distribution payable in Common Stock or in
securities convertible or exchangeable into shares of Common Stock, or (B) to
subscribe for or purchase Common Stock or securities convertible or exchangeable
into shares of Common Stock, then such record date shall be deemed to be the
date of the issue or sale of the shares of Common Stock deemed to have been
issued or sold upon the declaration of such dividend or the making of such other
distribution or the date of the granting of such right of subscription or
purchase, as the case may be.

                             (ii) Treasury Shares. The number of shares of
Common Stock outstanding at any given time shall not include shares owned or
held by or for the account of the Company, and the disposition of any such
shares shall be considered an issue or sale of Common Stock.

                      (f) All calculations under this Section 9 shall be made to
the nearest cent or the nearest 1/100th of a share, as the case may be.

                      (g) Whenever the Exercise Price is adjusted pursuant to
Section 9(c) above, the Holder, after receipt of the determination by the
Appraiser, shall have the right to

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select an additional appraiser (which shall be a nationally recognized
accounting firm), in which case the adjustment shall be equal to the average of
the adjustments recommended by each of the Appraiser and such appraiser. The
Holder shall promptly mail or cause to be mailed to the Company, a notice
setting forth the Exercise Price after such adjustment and setting forth a brief
statement of the facts requiring such adjustment. Such adjustment shall become
effective immediately after the record date mentioned above.

                      (h) If:

                             (i) the Company shall declare a dividend (or any
other distribution) on its Common Stock; or

                             (ii) the Company shall declare a special
nonrecurring cash dividend on or a redemption of its Common Stock; or

                             (iii) the Company shall authorize the granting to
all holders of the Common Stock rights or warrants to subscribe for or purchase
any shares of capital stock of any class or of any rights; or

                             (iv) the approval of any stockholders of the
Company shall be required in connection with any reclassification of the Common
Stock, any consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property; or

                             (v) the Company shall authorize the voluntary
dissolution, liquidation or winding up of the affairs of the Company,

then the Company shall cause to be mailed to each Holder at their last addresses
as they shall appear upon the Warrant Register, at least 30 calendar days prior
to the applicable record or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, redemption, rights or warrants, or if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are to
be determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer or share exchange is expected to become effective or
close, and the date as of which it is expected that holders of Common Stock of
record shall be entitled to exchange their shares of Common Stock for
securities, cash or other property deliverable upon such reclassification,
consolidation, merger, sale, transfer, share exchange, dissolution, liquidation
or winding up; provided, however, that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the validity of the
corporate action required to be specified in such notice.

               10. Payment of Exercise Price. The Holder shall pay the Exercise
Price in one of the following manners:

                      (a) Cash Exercise. The Holder may deliver immediately
available funds; or

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                      (b) Cashless Exercise. The Holder may surrender this
Warrant to the Company together with a notice of cashless exercise, in which
event the Company shall issue to the Holder the number of Warrant Shares
determined as follows:

                             X =  Y [(A-B)/A]
        where:
                             X =  the number of Warrant Shares to be issued
                                  to the Holder.

                             Y =  the number of Warrant Shares with respect to
                                  which this Warrant is being exercised.

                             A =  the average of the closing sale prices of the
                                  Common Stock for the five (5) trading days
                                  immediately prior to (but not including) the
                                  Date of Exercise.

                             B =  the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a cashless
exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Warrant Shares shall be deemed to have been
commenced, on the issue date.

               11. Certain Exercise Restrictions. A Holder may not exercise this
Warrant to the extent such exercise would result in the Holder, together with
any affiliate thereof, beneficially owning (as determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended and the rules
promulgated thereunder) in excess of 9.999% of the then issued and outstanding
shares of Common Stock, including shares of Common Stock issuable upon such
exercise and held by such Holder after application of this Section. Since the
Holder will not be obligated to report to the Company the number of shares of
Common Stock it may hold at the time of an exercise hereunder, unless the
exercise at issue would result in the issuance of shares of Common Stock in
excess of 9.999% of the then outstanding shares of Common Stock without regard
to any other shares which may be beneficially owned by the Holder or an
affiliate thereof, the Holder shall have the authority and obligation to
determine whether the restriction contained in this Section will limit any
particular exercise hereunder and to the extent that the Holder determines that
the limitation contained in this Section applies, the determination of which
portion of this Warrant is exercisable shall be the responsibility and
obligation of the Holder. If the Holder has delivered a Form of Election to
Purchase for a number of Warrant Shares that, without regard to any other shares
that the Holder or its affiliates may beneficially own, would result in the
issuance in excess of the permitted amount hereunder, the Company shall notify
the Holder of this fact and shall honor the exercise for the maximum portion of
this Warrant permitted to be exercised on such Date of Exercise in accordance
with the periods described herein and, at the option of the Holder, either keep
the portion of the Warrant tendered for exercise in excess of the permitted
amount hereunder for future exercises or return such excess portion of the
Warrant to the Holder. The provisions of this Section may be waived by a Holder
(but only as to itself and not to any other Holder) upon not less than 61 days
prior notice to the Company. Other Holders shall be unaffected by any such
waiver.

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               12. Fractional Shares. The Company shall not be required to issue
or cause to be issued fractional Warrant Shares on the exercise of this Warrant.
The number of full Warrant Shares which shall be issuable upon the exercise of
this Warrant shall be computed on the basis of the aggregate number of Warrant
Shares purchasable on exercise of this Warrant so presented. If any fraction of
a Warrant Share would, except for the provisions of this Section, be issuable on
the exercise of this Warrant, the Company shall pay an amount in cash equal to
the Exercise Price multiplied by such fraction.

               13. Notices. Any and all notices or other communications or
deliveries hereunder shall be in writing and shall be deemed given and effective
on the earliest of (i) the date of transmission, if such notice or communication
is delivered via facsimile at the facsimile telephone number specified in this
Section prior to 8:00 p.m. (New York City time) on a business day, (ii) the
business day after the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile telephone number specified in this
Section later than 8:00 p.m. (New York City time) on any date and earlier than
11:59 p.m. (New York City time) on such date, (iii) the business day following
the date of mailing, if sent by nationally recognized overnight courier service,
or (iv) if sent other than by the methods set forth in (i)-(iii) of this
section, upon actual receipt by the party to whom such notice is required to be
given. The addresses for such communications shall be: (i) if to the Company, to
157 Technology Drive, Irvine, CA 92618, Attention: Chief Financial Officer, or
to Facsimile No. (949) 788-6706, or (ii) if to the Holder, to the Holder at the
address or facsimile number appearing on the Warrant Register or such other
address or facsimile number as the Holder may provide to the Company in
accordance with this Section.

               14. Warrant Agent. The Company shall serve as warrant agent under
this Warrant. Upon thirty (30) days' notice to the Holder, the Company may
appoint a new warrant agent. Any corporation into which the Company or any new
warrant agent may be merged or any corporation resulting from any consolidation
to which the Company or any new warrant agent shall be a party or any
corporation to which the Company or any new warrant agent transfers
substantially all of its corporate trust or shareholders services business shall
be a successor warrant agent under this Warrant without any further act. Any
such successor warrant agent shall promptly cause notice of its succession as
warrant agent to be mailed (by first class mail, postage prepaid) to the Holder
at the Holder's last address as shown on the Warrant Register.

               15. Miscellaneous.

                      (a) This Warrant shall be binding on and inure to the
benefit of the parties hereto and their respective successors and assigns. This
Warrant may be amended only in writing signed by the Company and the Holder and
their successors and assigns.

                      (b) Subject to Section 15(a), above, nothing in this
Warrant shall be construed to give to any person or corporation other than the
Company and the Holder any legal or equitable right, remedy or cause under this
Warrant. This Warrant shall inure to the sole and exclusive benefit of the
Company and the Holder.

                      (c) The corporate laws of the State of Delaware shall
govern all issues concerning the relative rights of the Company and its
stockholders. All other questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be governed by and
construed and enforced in accordance with the internal laws of the State of New

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York, without regard to the principles of conflicts of law thereof. The Company
and the Holder hereby irrevocably submit to the exclusive jurisdiction of the
state and federal courts sitting in the City of New York, borough of Manhattan,
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 the Holder
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 contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.

                      (d) The headings herein are for convenience only, do not
constitute a part of this Warrant and shall not be deemed to limit or affect any
of the provisions hereof.

                      (e) In case any one or more of the provisions of this
Warrant shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Warrant shall not
in any way be affected or impaired thereby and the parties will attempt in good
faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall
incorporate such substitute provision in this Warrant.

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               IN WITNESS WHEREOF, the Company has caused this Warrant to be
duly executed by its authorized officer as of the date first indicated above.

                             NEOTHERAPEUTICS, INC.

                             By:
                                ------------------------------------------------
                             Name:
                                  ----------------------------------------------
                             Title:
                                   ---------------------------------------------

                                       11
<PAGE>   12

                          FORM OF ELECTION TO PURCHASE

(To be executed by the Holder to exercise the right to purchase shares of Common
Stock under the foregoing Warrant)

To NeoTherapeutics, Inc.:

               In accordance with the Warrant enclosed with this Form of
Election to Purchase, the undersigned hereby irrevocably elects to purchase
_____________ shares of common stock, $.001 par value per share, of
NeoTherapeutics, Inc. (the "Common Stock") and , if such Holder is not utilizing
the cashless exercise provisions set forth in this Warrant, encloses herewith
$________ in cash, certified or official bank check or checks, which sum
represents the aggregate Exercise Price (as defined in the Warrant) for the
number of shares of Common Stock to which this Form of Election to Purchase
relates, together with any applicable taxes payable by the undersigned pursuant
to the Warrant.

               The undersigned requests that certificates for the shares of
Common Stock issuable upon this exercise be issued in the name of

                                          PLEASE INSERT SOCIAL SECURITY OR
                                          TAX IDENTIFICATION NUMBER

                        (Please print name and address)

                        ------------------------------

                        ------------------------------

                        ------------------------------

If the number of shares of Common Stock issuable upon this exercise shall not be
all of the shares of Common Stock which the undersigned is entitled to purchase
in accordance with the enclosed Warrant, the undersigned requests that a New
Warrant (as defined in the Warrant) evidencing the right to purchase the shares
of Common Stock not issuable pursuant to the exercise evidenced hereby be issued
in the name of and delivered to:

                         (Please print name and address)

                        ------------------------------

                        ------------------------------

                        ------------------------------

<PAGE>   13

Dated:  ____________________, ______     Name of Holder:

                                         ---------------------------------------
                                         (Print)

                                         By:
                                            ------------------------------------

                                         Name:
                                              ----------------------------------

                                         Title:
                                               ---------------------------------

                                         (Signature must conform in all respects
                                         to name of holder as specified on the
                                         face of the Warrant)

                                       2

<PAGE>   14

                               FORM OF ASSIGNMENT

           [To be completed and signed only upon transfer of Warrant]

               FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ________________________________ the right represented by the
within Warrant to purchase ____________ shares of Common Stock of
NeoTherapeutics, Inc. to which the within Warrant relates and appoints
________________ attorney to transfer said right on the books of
NeoTherapeutics, Inc. with full power of substitution in the premises.

Dated:  ____________________, ______

                                         ---------------------------------------
                                         (Signature must conform in all respects
                                         to name of holder as specified on the
                                         face of the Warrant)

                                         ---------------------------------------
                                         Address of Transferee

                                         ---------------------------------------

                                         ---------------------------------------

In the presence of:

-----------------------------------EXECUTIVE EMPLOYMENT AGREEMENT

Executive Employment Agreement  ("Agreement") is made and effective this 15h day
of November,  1999,  by and between Power Save  International,  Inc., a Delaware
corporation (the "Company") and Scott Balmer, ("Executive").

WHEREAS,  the  Company  wishes to assure  itself of the  benefit of  Executive's
services, experience and loyalty, and Executive has indicated his willingness to
provide his services,  experience  and loyalty on the terms and  conditions  set
forth herein:

NOW, THEREFORE,  in consideration of the mutual covenants herein contained,  and
other good and valuable consideration, the parties hereto agree as follows:

1.       Employment.

Company  hereby  agrees to initially  employ  Executive  as its Chief  Operating
Officer and Executive  hereby  accepts such  employment  in accordance  with the
terms of this  Agreement  and the  terms of  employment  applicable  to  regular
employees  of Company.  In the event of any  conflict or  ambiguity  between the
terms of this Agreement and terms of employment applicable to regular employees,
the terms of this Agreement shall control.  Election or appointment of Executive
to another office or position,  regardless of whether such office or position is
inferior to  Executive's  initial  office or position,  shall not be a breach of
this Agreement.

2.       Duties of Executive.

The duties of  Executive  shall  include  the  performance  of all of the duties
typical  of  the  office   held  by   Executive   and  such  other   duties  and
responsibilities  as may be assigned by the  Chairman of the Board of  Directors
(the "Chairman") and/or the Directors of the Company.

3.       Exclusivity.

(a) For so long as Executive is employed by Company,  Executive shall, except as
may from time to time be otherwise agreed in writing by the Company,  devote his
full time working  hours,  ability and attention to the business of the Company,
shall faithfully serve the Company,  shall in all respects conform to and comply
with the lawful and reasonable  directions and instructions  given to him by the
Directors of the Company having  authority over him and shall perform all duties
in a professional,  ethical and businesslike  manner and use his best efforts to
promote and serve the interests of the Company.

(b) For so long as  Executive  is  employed  by  Company,  Executive  shall not,
directly or indirectly,  render services to any other person or organization for
which  he  receives  compensation  without  the  prior  written  consent  of the
Chairman, or otherwise engage in activities which would interfere  significantly
with his faithful  performance  of his duties  hereunder.  Executive may perform
inconsequential  services without direct  compensation  thereof or in connection
with the  management of personal  investments;  provided that such activity does
not contravene the provisions of Section 7 hereof.

4.       Compensation.

Executive shall be paid compensation during this Agreement as follows:

(a) An initial base salary of _________ per year,  payable in equal installments
according to the Company's  regular payroll  schedule.  The base salary shall be
adjusted at the end of each year of employment at the discretion of the Board of
Directors. Company shall be entitled to deduct or withhold all taxes and charges
that Company may be required to deduct or withhold from salary.

(b) An incentive  bonus as  consideration  for  Executive's  termination  of his
current  employment  to  undertake  the  duties  described  herein  and  for the
covenants contained in Sections 7(b) and 7C below.  This bonus will be in the
amount of _____________ payable on          if Executive  is still in the
employ of Company.  Company shall be entitled  to  withhold  all taxes and
charges that Company  may be  required  to deduct or withhold from the bonus.

(c)Options  pursuant to the Company's  Stock Option Plan,
which  plan is  incorporated  by  reference  as if set
forth herein in full, to purchase __________ shares of
Company Common Stock at an Option  Price of ___ per  share,
such  option to be granted in the event that Executive is
employed by Company on that date.

5. Benefits.

(a)  Holidays,  Vacation,  Sick  Leave.  Executive  shall  be  entitled  to such
holidays,  vacation  and sick leave as are  afforded  to senior  officers of the
Company  under its benefit  plans,  as and when such plans are  adopted  (and as
modified from time to time) by the Board of Directors.

(b)  Medical  Insurance.  During this  Agreement,  company  agrees to  reimburse
Executive for the costs of continuing Executive" medical coverage with his prior
employer  under  applicable  Federal Law (COBRA  coverage).  Executive  shall be
responsible  for payment of any federal or state  income tax imposed  upon these
benefits.   (c)   Expense   Reimbursement.   Executive   shall  be  entitled  to
reimbursement for all reasonable  expenses,  including travel and entertainment,
incurred by Executive in the performance of Executive's  duties.  Executive will
maintain  records and written  receipts as required by  Company's  policies  and
procedures  and as may be reasonable  requested by the Chairman to  substantiate
such expenses.

6. Rights to Work Product.

In  consideration of Executive's  original and continuing  employment under this
Agreement,  it is agreed and understood that Executive shall disclose to Company
all inventions,  improvements,  designs,  information,  reports,  studies, other
tangible or intangible material of any nature whatsoever produced or as a result
of any of the services performed by Executive hereunder and all copies of any of
the foregoing.  Executive hereby irrevocably grants, assigns, transfers and sets
over  unto  Company  all  right,  title  and  interest  of any  kind,  nature or
description in and to the above  referenced work product and Executive shall not
be entitled to make use of the work product except as may be expressly permitted
in this Agreement.  Executive agrees to execute:  (i) any and all documents and;
(ii)  provide all such  assistance;  as is  reasonably  requested  by Company in
connection  with the  registration  and protection by litigation or otherwise of
any patents,  copyrights,  trademarks  or other  proprietary  rights in the work
product produced hereunder (including any reissues thereof).

7. Confidential Information and Noncompetition.

(a)  Confidential  Information.  Executive  recognizes  that the  services to be
performed by him/her hereunder are special, unique and extraordinary in that, by
reason of his employment hereunder,  he may acquire or has acquired confidential
information and trade secrets  concerning the operation of the Company,  the use
or  disclosure of which could cause  Company  substantial  loss and damages that
could  not be  readily  calculated  and for  which  no  remedy  at law  would be
adequate.  Accordingly,  in consideration of Executive's  original and continued
employment by Company in a capacity in which he may receive or contribute to the
production of confidential  information,  Executive agrees and acknowledges that
all tangible and intangible information obtained or developed, and in connection
with the  performance  of this  Agreement  (including  information  developed by
Executive as part of his/her  performance of services) which is so designated by
Company,  shall be considered to be  confidential  and  proprietary  information
which  contains  valuable  business  information  and trade  secrets  of company
relating to its business  practices and critical to its competitive  position in
the marketplace.

(i)  Information  publicly  known that is generally  employed by the trade at or
after  the  time  Executive  first  learns  of  such  information,   or  generic
information  or knowledge  which  Executive  would have learned in the course of
similar  employment or work elsewhere in the trade,  shall not be deemed part of
the company confidential  information.  (ii) All notes, materials or records, of
any kind, in any way incorporating or reflecting any of the Company confidential
information  shall belong  exclusively  to company and Executive  agrees to turn
over all copies of such materials in his control to Company upon  termination of
this Agreement.

 (iii)     Executive  agrees during the term of this Agreement and thereafter to
           hold in confidence and not to directly or indirectly reveal,  report,
           publish,  disclose  or  transfer  any  of  the  Company  confidential
           information to any person or utilize any of the Company  confidential
           information for any purpose, except in the course of his/her work for
           the Company.

(iv)  Executive  agrees  to  notify  Company  promptly  and  in  writing  of any
circumstances of which Executive has knowledge  relating to any possession,  use
or  knowledge  of any portion of the  Company  confidential  information  by any
unauthorized person.

(b) No  Competing  Employment.  For so long as Executive is employed by Company,
Executive  shall not, unless he receives prior written consent from the Board of
Directors,  directly or indirectly,  own an interest in, manage,  operate, join,
control, lend money or render financial or other assistance to or participate in
or be connected with, as an officer, employee, partner, stockholder,  consultant
or otherwise, any individual,  partnership,  firm, corporation or other business
entity that materially competes with the Company.

(c) No  Interference.  During the term of this  Agreement,  Executive shall not,
whether  for his  own  account  or for  the  account  of any  other  individual,
partnership,  firm, corporation,  or other business organization (other than the
Company),  intentionally  solicit,  endeavor  to  entice  away from  Company  or
otherwise  interfere  with the  relationship  of Company with, any person who is
employed by or otherwise engaged to perform services for Company (including, but
not limited to, any  employees of  Company's  venture  partners and  independent
sales  representatives  or organizations) or any person or entity who is, or was
within the then most recent  twelve (12) month  period,  a customer or client of
the Company.

8. Term and Termination

(a) The Initial Term of this  Agreement  shall  commence on the  effective  date
noted  above  and it  shall  continue  in  effect  for a period  of __  year(s).
Thereafter,  the Agreement shall be renewed upon the mutual written agreement of
Executive and Company.  In the event that Company shall terminate this Agreement
without cause during the Initial Term,  Executive shall, as severance pay and in
lieu of damages, be entitled to be paid an amount equal to the unpaid portion of
Executive's   base  annual  salary  and  incentive  bonus  payment  as  well  as
continuation  of  his/her  medical  benefits  payments.  In the  event  of  such
termination,  Executive shall not be entitled to any other  compensation then if
effect, prorated or otherwise.

(b) This  Agreement and  Executive's  employment may be terminated by Company at
its  discretion  effective an any time after the Initial Term,  provided that in
such case,  Executive  shall be paid fifty  percent  (50%) of  Executive's  then
applicable  base annual salary during this Agreement as well as  continuation of
his medical  benefits  payments for a period of six (6) months.  In the event of
such a discretionary termination, Executive shall not be entitled to receive any
incentive salary payment or any other  compensation then in effect,  prorated or
otherwise.

(c) This  Agreement may be  terminated  by Executive at  Executive's
discretion by providing at least ninety (90) days prior written notice to the
Company. In the even of termination by Executive  pursuant to this  subsection,
Company may immediately relieve Executive  of  all  duties  and  immediately
terminate this Agreement,  provided that Company shall pay Executive
at the then  applicable  base  salary rate to the  termination  date
included in Executive's original termination notice.

(d) Company shall have the right to terminate Executive's employment immediately
for Cause.  "Cause"  shall mean:  (1)  conviction  of a felony  involving  moral
turpitude,  if the Board, in its sole discretion  (reasonably  applied) believes
that such  conviction  will have a significant  adverse effect upon  Executive's
ability to perform under this Agreement or a significant adverse effect upon the
Company; (11) commission of a material dishonest act or common law fraud against
Company or either of its venture partners or any parent, subsidiary or affiliate
of a venture partner;  (III) habitual  drunkenness or narcotic dependence during
working  hours or  otherwise  materially  interfering  with  Executive's  duties
hereunder;  (IV)  excessive  absenteeism  not related to illness,  sick leave or
vacations,  but only after notice from Company  followed by a repetition of such
excessive  absenteeism;  (V) any act or  omission  that  constitutes  a material
breach by Executive of his obligations or agreements under this Agreement or any
other written  agreement  between  Executive  and Company,  or by the failure or
refusal of Executive to satisfactorily  perform any duties  reasonable  required
hereunder,  but only after  notification by Company of such breach and a failure
or refusal of Executive to correct such breach  within  thirty (30) days of such
notification  (other  than by  reason  of the  incapacity  of  Executive  due to
physical or mental illness).  In event of termination of the Agreement  pursuant
to this  Subsection  8(d),  Executive  shall be paid only at the then applicable
base salary rate up to and including the date of  termination.  Executive  shall
not be paid any incentive  salary  payments or other  compensation,  prorated or
otherwise.

(e) In the event Company is acquired, or is the non-surviving party in a merger,
or sells all or  substantially  all of its assets,  this Agreement  shall not be
deemed terminated as a result thereof.

9. Notices.

Any notice  required by this Agreement or given in connection  with it, shall be
in writing and shall be given to the appropriate  party by personal  delivery or
by certified mail, postage prepaid, or recognized overnight delivery services:

If to Company:

Power Save International, Inc.
5800 NW 64 Ave., Bldg. 26 #109,
Tamarac, FL 33319
Attn:    Chairman and Treasurer

If to Executive:

            Scott Balmer
            5800 NW 64 Ave., Bldg. 26 #109,
            Tamarac, FL 33319

10. Entire Agreement.

This Agreement constitutes the entire Agreement between the parties with respect
to the subject  matter  hereof and  supersedes  and merges all prior  proposals,
understandings  and all other  agreements,  oral or written  between the parties
relating to such subject matter.  Each party hereby acknowledges that it has not
entered into this  Agreement  in reliance  upon any  representation  made by the
other party and not embodied herein.

11. Governing Law.

This Agreement shall be construed and enforced in accordance with the laws of
the State of Florida  as if made in  Florida  for  performance  entirely
within the State of Florida.

12. Headings.

Headings used in this Agreement are provided for convenience  only and shall not
be used to construe meaning or intent.

13. Assignment.

(a) By  Executive.  Neither this  Agreement nor any right,  duty,  obligation or
interest  hereunder may be assigned or delegated by Executive  without the prior
express  written  approval  of  Company,  which may be  withheld  by  Company at
Company's absolute discretion.

(b) By Company.  This  Agreement  and all of  Company's  rights and  obligations
hereunder  may be assigned,  delegated or  transferred  by it to (I) any venture
partner of Company or to any  parent,  subsidiary  or  affiliate  of any venture
partner; or (II) any business entity which at any time by merger,  consolidation
or otherwise  acquires all or substantially  all of the assets of the Company or
to which Company  transfers all or  substantially  all of its assets.  Upon such
assignment,  delegation  or  transfer,  any such  partner,  parent,  subsidiary,
affiliate or other  business  entity shall be deemed to be  substituted  for all
purposes as the Company hereunder.  (c) Binding Effect.  This Agreement shall be
binding upon, and inure to the benefit of, the parties hereto, any successors to
or assigns of Company and Executive's heirs and the personal  representatives of
Executive's estate.

14. Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be
invalid or  unenforceable,  then this Agreement,  including all of the remaining
terms,  will remain in full force and effect as if such invalid or unenforceable
term had never been included.

15. Arbitration.

(a) In the event that a dispute  arises  concerning  the terms of this Agreement
the aggrieved party shall refer such dispute to arbitration as specified herein.
Such  arbitration  shall  be held  in the  County  of  Baltimore,  Virginia,  in
accordance with the rules of the American Arbitration  Association ("AAA Rules")
then in effect.  Judgment  upon the award  rendered  by the  arbitrators  may be
entered in any court having jurisdiction over the parties. The arbitrators shall
have the  authority to grant any legal  remedies  that would be available in any
judicial proceeding instituted to resolve a disputed matter.

(b) The prevailing  party in an action brought  against the other to enforce the
terms  of this  Agreement  or any  rights  or  obligations  hereunder,  shall be
entitled to receive its  reasonable  costs and expenses of bringing  such action
including its reasonable attorneys fees.

(c) No action,  regardless  of form,  arising  out of this  Agreement,  shall be
brought by  Executive  more than two (2) years after such cause of action  shall
have accrued.

16.      Miscellaneous.

(a) This Agreement may not be modified or altered except by a written instrument
executed by both  parties.  (b) The parties  agree that each  provision  in this
Agreement is deemed equally  essential to each party.  (c) The failure of either
of the parties to insist upon strict  performance  of any of the  provisions  of
this Agreement shall not be construed as the waiver of any subsequent default of
a similar nature.  (d) Either party shall be excused from  performance and shall
not be liable  for any delay in  delivery  or for  non-delivery,  in whole or in
part,  caused by the  occurrence  of any  contingency  beyond the control of the
parties.

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

Power Save International, Inc.                    Executive

By: ________________________                      By: __________________________

Name: ______________________                      Name: ________________________

Title: _______________________

Address:
         5800 NW 64 Ave., Bldg 26 #109
         Tamarac, FL 33319

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