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Exhibit 10.19    
    

2004 COFFEYVILLE RESOURCES, LLC

And AFFILIATED COMPANIES

INCOME SHARING PROGRAM  

	
OBJECTIVE:
	 	 	To reward employees for achieving company as well as individual performance goals.
	
TERM:
	 	 	March 3, 2004, through December 31, 2004.
	
OVERVIEW:
	 	 	Coffeyville Resources emphasizes the importance of optimum performance of its' facilities by focusing on efficiency, productivity, return on the investment made by the owners, asset enhancement, and personal performance
goals.
	

 	
 	

The basis for the payout will be as follows:

	Group
 
	 	%

Participation

	Coffeyville Resources Financial Goals	 	331/3%
	

Affiliated Company Financial Goals	
 	

331/3%
	

Individual / Group Goals	
 	

331/3%

	

 	
 	

Payout is limited to the maximum funding of the plan and in rare circumstances may cause prorating of the payout.
	

 	
 	

The financial components that will be used in measuring the performance of:

	
 
	
 	

Threshold
	
 	

Target
	
 	

Maximum

	Coffeyville Resources	 	47,626,995	 	68,038,564	 	88,450,133
	

	Refining & Marketing Crude &Transportation Terminal	 	40,022,836	 	57,175,480	 	74,328,124
	

	Nitrogen Fertilizers	 	13,879,650	 	19,828,071	 	25,776,493
	

(EBITDA as it applies to the Coffeyville Resources, LLC and affiliated companies)

	
DETERMINATION OF PAYOUT:
	 	 	Payout is determined as a percentage of variable compensation payout calculation points assigned to each eligible position as shown in Exhibits C. Payout for the Individual goals will not be subject to Coffeyville Resources
or its' affiliated companies meeting financial performance standards however, payout for Coffeyville Resources, LLC and the affiliated companies is subject to the plan funding.
	 	 	 	 	 

1

 

	
DOCUMENTATION:
	 	 	Records that are maintained by the Manufacturing Accounting for the purpose of preparing financial reports will be used to calculate payout.
	
PARTICIPANTS:
	 	 	Includes all non-represented employees in Coffeyville Resources, LLC and its' affiliated companies. (List of participating positions and incumbents see Attachment C.)
	
ELIGIBILITY:
	 	 	All identified employees are eligible for payout under the plan.
	

 	
 	

Except:
	 	 	A.	 	Employees hired after October 11, 2004. (Waived for those previously employed by Farmland Industries, Inc. during the fiscal year in regular, full time status).
	 	 	B.	 	Temporary or seasonal employees with less than 1000 hours of service during the fiscal year.
	 	 	C.	 	Regular part-time employees with less than 500 hours of service during the fiscal year.
	 	 	D.	 	Employees who terminate voluntarily prior to a payout date.
	 	 	E.	 	Employees terminated for cause prior to payout.
	 	 	F.	 	Employees represented by a bargaining unit.
	
PRORATION OF PAYOUT:	
 	

 	
 	

 
	 	 	The incentive earned by any position will be prorated among eligible participants according to the following formula:
	

 	
 	

Total annual incentive divided by 12, multiplied by the number of full months incumbent held position.
	

 	
 	

Payouts will be interpolated for the plan performance between threshold/target and target/maximum.
	

 	
 	

Example:

	 
	 	% of Budget
	 	% of Earnings

	Threshold	 	  70	 	3
	Target	 	100	 	5
	Maximum	 	130	 	8

	

 	
 	

Payout opportunities will be subject to the terms and conditions of the compensation systems for fiscal year 2004
	

 	
 	

If 115% of target is achieved, this payout will be 6.5% of earnings. 115% is halfway between the "target" and "maximum" points of the examples; 50% of the distance from target to maximum. 50% of the difference between the percentages of earnings paid
out at target and maximum (5% and 8%) is added to the amount paid at target to create the amount of payment.
	

 	
 	

Payout = 5% (target) + 50% × (8%-5% earnings) = 6.5%
	

 	
 	

Employees, who transfer from one affiliated company to another, will receive a prorated payout based on goals attained, eligible market rates as appropriate to the position, and months served in each unit.
	 	 	 	 	 

2

 

	

 	
 	

Employees on formal disciplinary or performance probation during the plan term up to payout time will receive a prorated payout, which excludes the probationary period.
	

 	
 	

The circumstances listed below would result in a prorated payout proportionate to time served as an active employee during the plan year: Death/disability; Retirement; Reduction in Force; Layoff; Leave of Absence. Involuntary termination's, other
than for reasons listed above, and are not for performance or for cause may result in prorated payout.
	
REPORTING DATES:
	

 	
 	

Each participant will receive a progress report once each month on Coffeyville Resources, and the affiliated company's results.
	
PAYOUT CONDITIONS:
	

 	
 	

Neither, Coffeyville Resources, LLC nor the affiliated company must achieve a threshold level to trigger any payment from the individual goal portion of the plan.
	

 	
 	

Payout opportunities will be subject to the terms and conditions of the Compensation system in place for fiscal 2004. See attachment A.
	
AMENDMENT PROCESS:
	

 	
 	

If during the term of this plan it is necessary to cease or restrict operations for any reason as determined by Senior Management that period of time will be excluded from the plan calculations. Additionally, Senior Management may exclude from the
plan any operations affected by new or unusual "start-up" periods.
	

 	
 	

If very unusual circumstances or conditions exist which warrant amendment of the plan during the fiscal year, the amendment process will be the same as the original approval process up through the appropriate Senior Management member. Recommended
changes will be forwarded in writing to the appropriate level of management for approval.
	
COMMUNICATION PLAN:
	

 	
 	

The plan will be presented in employee meetings as early as possible in the fiscal year. Printed summaries will be provided to each participant and quarterly updates will be posted as necessary to ensure communication of results to all
employees.

3

 
 
 

SIGNATURES    
    

Chief
Executive Officer: /s/ Philip L. Rinaldi 

Chief
Operating Officer: /s/ Stanley A. Riemann 

Chief
Financial Officer: /s/ James T. Rens 

Plan
Manager: /s/ [Illegible] 

4

  

 
 

Attachment A    
    

Variable Compensation Payout Opportunities
  Based on Position Midpoints 

	Threshold-Target-

Maximum
 
	 	Annualized V Comp

Calculation Point
	 	Payout Level

	3–5–8	 	Any Earnings	 	1
	

3–5–8	
 	

Actual Earnings Exempt

under $37,130	
 	

2
	

3–6–10	
 	

$38,900	
 	

3
	

4–7–12	
 	

$42,890	
 	

4
	

5–8–15	
 	

$48,300	
 	

5
	

5–10–18	
 	

$55,545	
 	

6
	

6–12–22	
 	

$63,880	
 	

7
	

7–15–27	
 	

$73,460	
 	

8
	

8–18–33	
 	

$84,480	
 	

9
	

10–22–40	
 	

$97,155	
 	

10
	

12–25–46	
 	

$111,725	
 	

11
	

12–25–46	
 	

$128,485	
 	

12
	

12–25–46	
 	

$147,760	
 	

13
	

14–28–52	
 	

Actual Earnings	
 	

14

5

 
 
 

Attachment B    
    

Variable Compensation Payout Opportunities

For

Coffeyville Resources, LLC and Affiliated Company

Designated Executives  

	Threshold-Target-

Maximum
 
	 	Annualized V Comp

Calculation Point
	 	Payout Level

	To be determined	 	To be determined	 	To be determined
	

To be determined	
 	

To be determined	
 	

To be determined
	

To be determined	
 	

To be determined	
 	

To be determined
	

To be determined	
 	

To be determined	
 	

To be determined
	

To be determined	
 	

To be determined	
 	

To be determined
	

To be determined	
 	

To be determined	
 	

To be determined
	

To be determined	
 	

To be determined	
 	

To be determined
	

To be determined	
 	

To be determined	
 	

To be determined

6

QuickLinks

Exhibit 10.19

SIGNATURES

Attachment A

Attachment Bsec document

                                                                     Exhibit 4.4

                                                            FORM OF UNIT WARRANT

NO. ___                        CEPTOR CORPORATION                   _____ SHARES

                        WARRANT TO PURCHASE COMMON STOCK
                        --------------------------------

                     VOID AFTER 5:30 P.M., EASTERN STANDARD
                          TIME, ON THE EXPIRATION DATE

THIS WARRANT AND ANY SHARES  ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE NOT
BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),  AND
MAY NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR OTHERWISE TRANSFERRED WITHOUT
COMPLIANCE  WITH THE  REGISTRATION  OR  QUALIFICATION  PROVISIONS  OF APPLICABLE
FEDERAL AND STATE SECURITIES LAWS OR APPLICABLE EXEMPTIONS THEREFROM.

     FOR  VALUE  RECEIVED,  CEPTOR  CORPORATION,   a  Florida  corporation  (the
"Company"),  hereby  agrees  to  sell  upon  the  terms  and on  the  conditions
hereinafter set forth,  but no later than 5:30 p.m.,  Eastern  Standard Time, on
the  Expiration  Date  (as  hereinafter  defined)   to____________________,   or
registered  assigns (the  "Holder"),  under the terms as hereinafter  set forth,
______________  (____)  fully paid and  non-assessable  shares of the  Company's
Common Stock, par value $0.0001 per share (the "Warrant  Stock"),  at a purchase
price of Two Dollars and Fifty cents  ($2.50) per share (the  "Warrant  Price"),
pursuant to this warrant (this "Warrant"). The number of shares of Warrant Stock
to be so issued  and the  Warrant  Price are  subject to  adjustment  in certain
events as hereinafter  set forth.  The term "Common Stock" shall mean, when used
herein,  unless the context otherwise  requires,  the stock and other securities
and property at the time receivable upon the exercise of this Warrant.

     This  Warrant  is one of a series of the  Company's  Warrants  to  purchase
Common Stock (collectively, the "Warrants"), issued pursuant to the Confidential
Private  Placement  Memorandum,  dated  October  22,  2004  (as the  same may be
supplemented  from time to time, the  "Memorandum").  Capitalized terms used and
not  otherwise  defined  herein shall have the  respective  meanings  attributed
thereto in Section 10.

     1.   EXERCISE OF WARRANT.

          (a) The Holder may  exercise  this  Warrant  according to its terms by
surrendering this Warrant to the Company at the address set forth in Section 11,
the  subscription  form  attached  hereto  having then been duly executed by the
Holder,  accompanied  by cash,  certified  check or bank draft in payment of the
purchase price, in lawful money of the United States of America,  for the number
of shares  of the  Warrant  Stock  specified  in the  subscription  form,  or as

otherwise  provided in this Warrant,  prior to 5:30 p.m., Eastern Standard Time,
on the date which is three years from the date of the  issuance of this  Warrant
(the "Expiration Date").

          (b) This  Warrant may be  exercised in whole or in part so long as any
exercise in part hereof would not involve the issuance of  fractional  shares of
Warrant  Stock.  If exercised in part, the Company shall deliver to the Holder a
new Warrant,  identical in form, in the name of the Holder, evidencing the right
to purchase  the number of shares of Warrant  Stock as to which this Warrant has
not been  exercised,  which new Warrant shall be signed by the  Chairman,  Chief
Executive  Officer or President and the Secretary or Assistant  Secretary of the
Company.  The term Warrant as used herein shall include any  subsequent  Warrant
issued as provided herein.

          (c) No fractional shares or scrip representing fractional shares shall
be issued upon the exercise of this Warrant.  The Company shall pay cash in lieu
of fractions  with  respect to the Warrants  based upon the fair market value of
such fractional shares of Common Stock (which shall be the closing price of such
shares on the  exchange or market on which the Common  Stock is then  traded) at
the time of exercise of this Warrant.

          (d) In the event of any  exercise  of the rights  represented  by this
Warrant,  a  certificate  or  certificates  for the Warrant  Stock so purchased,
registered in the name of the Holder,  shall be delivered to the Holder within a
reasonable  time after such rights shall have been so  exercised.  The person or
entity in whose  name any  certificate  for the  Warrant  Stock is  issued  upon
exercise of the rights  represented  by this  Warrant  shall for all purposes be
deemed to have become the holder of record of such shares  immediately  prior to
the close of  business  on the date on which the  Warrant  was  surrendered  and
payment of the Warrant Price and any applicable taxes was made,  irrespective of
the date of  delivery  of such  certificate,  except  that,  if the date of such
surrender and payment is a date when the stock transfer books of the Company are
closed,  such person shall be deemed to have become the holder of such shares at
the opening of business on the next  succeeding date on which the stock transfer
books are open.  Except as provided in Section 4 hereof,  the Company  shall pay
any and all  documentary  stamp or similar  issue or transfer  taxes  payable in
respect of the issue or delivery  of shares of Common  Stock on exercise of this
Warrant.

     2.   DISPOSITION OF WARRANT STOCK AND WARRANT.

          (a) The Holder hereby  acknowledges  that this Warrant and any Warrant
Stock purchased pursuant hereto are, as of the date hereof, not registered:  (i)
under the Act on the ground  that the  issuance  of this  Warrant is exempt from
registration  under Section 4(2) of the Act as not involving any public offering
or (ii) under any applicable  state  securities law because the issuance of this
Warrant does not involve any public offering; and that the Company's reliance on
the Section 4(2) exemption of the Act and under applicable state securities laws
is predicated in part on the  representations  hereby made to the Company by the
Holder that it is acquiring  this Warrant and will acquire the Warrant Stock for
investment  for its own  account,  with no present  intention  of  dividing  its
participation  with others or  reselling  or  otherwise  distributing  the same,

subject,  nevertheless,  to any  requirement of law that the  disposition of its
property shall at all times be within its control.

          The Holder  hereby agrees that it will not sell or transfer all or any
part of this Warrant  and/or  Warrant Stock unless and until it shall first have
given notice to the Company  describing  such sale or transfer and  furnished to
the Company either (i) an opinion,  reasonably  satisfactory  to counsel for the
Company, of counsel (skilled in securities  matters,  selected by the Holder and
reasonably  satisfactory to the Company) to the effect that the proposed sale or
transfer may be made without registration under the Act and without registration
or qualification under any state law, or (ii) an interpretative  letter from the
Securities and Exchange Commission to the effect that no enforcement action will
be  recommended  if the proposed  sale or transfer is made without  registration
under the Act.

          (b) If, at the time of issuance of the shares  issuable  upon exercise
of this  Warrant,  no  registration  statement is in effect with respect to such
shares under  applicable  provisions of the Act, the Company may at its election
require that the Holder provide the Company with written  reconfirmation  of the
Holder's  investment  intent  and that any stock  certificate  delivered  to the
Holder of a surrendered  Warrant  shall bear legends  reading  substantially  as
follows:

     "TRANSFER  OF THE  SHARES  REPRESENTED  BY THIS  CERTIFICATE  IS SUBJECT TO
     CERTAIN  RESTRICTIONS  SET FORTH IN THE  WARRANT  PURSUANT  TO WHICH  THESE
     SHARES WERE PURCHASED FROM THE COMPANY. COPIES OF THOSE RESTRICTIONS ARE ON
     FILE AT THE  PRINCIPAL  OFFICES OF THE  COMPANY,  AND NO  TRANSFER  OF SUCH
     SHARES OR OF THIS  CERTIFICATE,  OR OF ANY SHARES OR OTHER  SECURITIES  (OR
     CERTIFICATES THEREFOR) ISSUED IN EXCHANGE FOR OR IN RESPECT OF SUCH SHARES,
     SHALL BE EFFECTIVE  UNLESS AND UNTIL THE TERMS AND  CONDITIONS  THEREIN SET
     FORTH SHALL HAVE BEEN COMPLIED WITH."

     "THE SHARES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933,  AND MAY NOT BE SOLD,  TRANSFERRED,  PLEDGED OR
     OTHERWISE DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
     UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL  SATISFACTORY  TO
     THE ISSUER OF THIS CERTIFICATE THAT REGISTRATION IS NOT REQUIRED UNDER SAID
     ACT."

In addition, so long as the foregoing legend may remain on any stock certificate
delivered to the Holder,  the Company may maintain  appropriate  "stop transfer"
orders with respect to such certificates and the shares  represented  thereby on
its books and  records  and with  those to whom it may  delegate  registrar  and
transfer functions.

     3.   RESERVATION  OF SHARES.  The Company  hereby  agrees that at all times
there shall be reserved  for  issuance  upon the  exercise of this  Warrant such
number of shares of its Common  Stock as shall be  required  for  issuance  upon
exercise of this Warrant.  The Company  further agrees that all shares which may
be issued upon the  exercise of the rights  represented  by this Warrant will be
duly  authorized  and will,  upon  issuance and against  payment of the exercise
price, be validly issued,  fully paid and  non-assessable,  free from all taxes,
liens, charges and preemptive rights with respect to the issuance thereof, other
than taxes, if any, in respect of any transfer occurring  contemporaneously with
such issuance and other than transfer  restrictions imposed by federal and state
securities laws.

     4.   EXCHANGE,   TRANSFER  OR  ASSIGNMENT  OF  WARRANT.   This  Warrant  is
exchangeable,  without expense,  at the option of the Holder,  upon presentation
and  surrender  hereof to the  Company  or at the  office of its stock  transfer
agent,  if any, for other  Warrants of different  denominations,  entitling  the
Holder or Holders thereof to purchase in the aggregate the same number of shares
of Common Stock  purchasable  hereunder.  Upon  surrender of this Warrant to the
Company  or at the  office  of its  stock  transfer  agent,  if  any,  with  the
Assignment  Form annexed  hereto duly  executed and funds  sufficient to pay any
transfer  tax,  the Company  shall,  without  charge,  execute and deliver a new
Warrant in the name of the assignee  named in such  instrument of assignment and
this Warrant shall promptly be canceled. This Warrant may be divided or combined
with other Warrants that carry the same rights upon  presentation  hereof at the
office of the  Company or at the  office of its stock  transfer  agent,  if any,
together with a written notice  specifying the names and  denominations in which
new Warrants are to be issued and signed by the Holder hereof.

     5.   CAPITAL ADJUSTMENTS.  This Warrant is subject to the following further
provisions:

          (a)   RECAPITALIZATION,   RECLASSIFICATION  AND  SUCCESSION.   If  any
recapitalization  of the Company or  reclassification of its Common Stock or any
merger or  consolidation  of the  Company  into or with a  corporation  or other
business  entity,  or the sale or  transfer of all or  substantially  all of the
Company's  assets  or  of  any  successor  corporation's  assets  to  any  other
corporation or business  entity (any such  corporation or other business  entity
being included within the meaning of the term "successor  corporation") shall be
effected,  at any time while this Warrant  remains  outstanding  and  unexpired,
then,  as  a  condition  of  such  recapitalization,  reclassification,  merger,
consolidation,  sale or transfer,  lawful and adequate  provision  shall be made
whereby the Holder of this  Warrant  thereafter  shall have the right to receive
upon the  exercise  hereof as provided in Section 1 and in lieu of the shares of
Common Stock immediately theretofore issuable upon the exercise of this Warrant,
such shares of capital  stock,  securities or other property as may be issued or
payable  with respect to or in exchange  for a number of  outstanding  shares of
Common  Stock  equal  to the  number  of  shares  of  Common  Stock  immediately
theretofore   issuable   upon   the   exercise   of  this   Warrant   had   such
recapitalization,  reclassification, merger, consolidation, sale or transfer not

taken  place,  and in each  such  case,  the  terms  of this  Warrant  shall  be
applicable  to the shares of stock or other  securities  or property  receivable
upon the exercise of this Warrant after such consummation.

          (b)  SUBDIVISION OR COMBINATION OF SHARES.  If the Company at any time
while this Warrant remains  outstanding and unexpired shall subdivide or combine
its  Common  Stock,  the  number of shares of  Warrant  Stock  purchasable  upon
exercise  of this  Warrant  and  the  Warrant  Price  shall  be  proportionately
adjusted.

          (c) STOCK  DIVIDENDS  AND  DISTRIBUTIONS.  If the  Company at any time
while this Warrant is outstanding  and unexpired  shall issue or pay the holders
of its Common Stock, or take a record of the holders of its Common Stock for the
purpose  of  entitling  them  to  receive,  a  dividend  payable  in,  or  other
distribution  of, Common Stock,  then (i) the Warrant Price shall be adjusted in
accordance  with  Section  5(e) and (ii) the number of shares of  Warrant  Stock
purchasable  upon  exercise of this  Warrant  shall be adjusted to the number of
shares of Common Stock that Holder would have owned  immediately  following such
action had this Warrant been exercised immediately prior thereto.

          (d) STOCK AND RIGHTS OFFERING TO SHAREHOLDERS. If the Company shall at
any time after the date of issuance of this Warrant distribute to all holders of
its Common Stock any shares of capital  stock of the Company  (other than Common
Stock) or evidences of its  indebtedness or assets  (excluding cash dividends or
distributions  paid from  retained  earnings or current  year's or prior  year's
earnings of the Company) or rights or warrants to subscribe  for or purchase any
of its  securities  (excluding  those referred to in the  immediately  preceding
paragraph) (any of the foregoing being  hereinafter in this paragraph called the
"Securities"), then in each such case, the Company shall reserve shares or other
units of such  securities for  distribution  to the Holder upon exercise of this
Warrant so that,  in  addition  to the shares of the Common  Stock to which such
Holder is entitled,  such Holder will receive upon such  exercise the amount and
kind of such Securities which such Holder would have received if the Holder had,
immediately  prior to the record date for the  distribution  of the  Securities,
exercised this Warrant.

          (e) WARRANT PRICE ADJUSTMENT. Whenever the number of shares of Warrant
Stock purchasable upon exercise of this Warrant is adjusted, as herein provided,
the Warrant Price payable upon the exercise of this Warrant shall be adjusted to
that price determined by multiplying the Warrant Price immediately prior to such
adjustment  by a  fraction  (i) the  numerator  of which  shall be the number of
shares of Warrant Stock  purchasable  upon exercise of this Warrant  immediately
prior to such adjustment,  and (ii) the denominator of which shall be the number
of shares of Warrant Stock purchasable upon exercise of this Warrant immediately
thereafter.

          (f)  CERTAIN  SHARES  EXCLUDED.  The number of shares of Common  Stock
outstanding at any given time for purposes of the  adjustments set forth in this
Section 5 shall  exclude any shares  then  directly  or  indirectly  held in the
treasury of the Company.

          (g) DEFERRAL AND  CUMULATION  OF DE MINIMIS  ADJUSTMENTS.  The Company
shall not be required to make any  adjustment  pursuant to this Section 5 if the
amount of such  adjustment  would be less than one  percent  (1%) of the Warrant
Price in effect  immediately  before the event that would  otherwise  have given
rise to such  adjustment.  In such  case,  however,  any  adjustment  that would
otherwise  have  been  required  to be made  shall  be  made at the  time of and
together with the next subsequent adjustment which, together with any adjustment
or  adjustments  so carried  forward,  shall amount to not less than one percent
(1%) of the Warrant Price in effect  immediately before the event giving rise to
such next subsequent adjustment.

          (h) DURATION OF ADJUSTMENT. Following each computation or readjustment
as  provided in this  Section 5, the new  adjusted  Warrant  Price and number of
shares of Warrant Stock  purchasable  upon exercise of this Warrant shall remain
in effect until a further computation or readjustment thereof is required.

     6.   NOTICE TO HOLDERS.

          (a) NOTICE OF RECORD DATE. In case:

              (i) the  Company  shall take a record of the holders of its Common
     Stock  (or  other  stock  or  securities  at the time  receivable  upon the
     exercise of this Warrant) for the purpose of entitling  them to receive any
     dividend  (other than a cash dividend  payable out of earned surplus of the
     Company) or other  distribution,  or any right to subscribe for or purchase
     any shares of stock of any class or any other securities, or to receive any
     other right;

              (ii)  of  any  capital   reorganization   of  the   Company,   any
     reclassification  of the capital  stock of the Company,  any  consolidation
     with or merger of the Company into another  corporation,  or any conveyance
     of all  or  substantially  all of the  assets  of the  Company  to  another
     corporation; or

              (iii) of any voluntary  dissolution,  liquidation or winding-up of
     the Company;

then,  and in each such case, the Company will mail or cause to be mailed to the
Holder hereof at the time outstanding a notice  specifying,  as the case may be,
(i) the date on which a record is to be taken for the purpose of such  dividend,
distribution  or right,  and stating the amount and character of such  dividend,
distribution  or  right,  or  (ii)  the  date  on  which  such   reorganization,
reclassification, consolidation, merger, conveyance, dissolution, liquidation or
winding-up is to take place,  and the time, if any, is to be fixed,  as of which
the holders of record of Common Stock (or such stock or  securities  at the time
receivable  upon the  exercise  of this  Warrant)  shall be entitled to exchange
their shares of Common Stock (or such other stock or securities)  for securities
or  other  property  deliverable  upon  such  reorganization,  reclassification,
consolidation,  merger, conveyance, dissolution or winding-up. Such notice shall
be mailed at least thirty (30) days prior to the record date therein  specified,

or if no record date shall have been  specified  therein,  at least  thirty (30)
days prior to such specified  date,  provided , however,  failure to provide any
such notice shall not affect the validity of such transaction.

              (b)  CERTIFICATE OF ADJUSTMENT.  Whenever any adjustment  shall be
made pursuant to Section 5 hereof, the Company shall promptly make a certificate
signed by its Chairman,  Chief  Executive  Officer,  President,  Vice President,
Chief  Financial  Officer or Treasurer,  setting forth in reasonable  detail the
event  requiring the  adjustment,  the amount of the  adjustment,  the method by
which such  adjustment was calculated and the Warrant Price and number of shares
of Warrant Stock  purchasable  upon exercise of this Warrant after giving effect
to such adjustment,  and shall promptly cause copies of such  certificates to be
mailed (by first class mail, postage prepaid) to the Holder of this Warrant.

     7.   LOSS, THEFT, DESTRUCTION OR MUTILATION. Upon receipt by the Company of
evidence  satisfactory to it, in the exercise of its reasonable  discretion,  of
the ownership  and the loss,  theft,  destruction  or mutilation of this Warrant
and,  in the  case of  loss,  theft  or  destruction,  of  indemnity  reasonably
satisfactory  to the Company and, in the case of mutilation,  upon surrender and
cancellation  thereof,  the Company  will  execute and deliver in lieu  thereof,
without  expense to the  Holder,  a new  Warrant  of like  tenor  dated the date
hereof.

     8.   WARRANT HOLDER NOT A STOCKHOLDER. The Holder of this Warrant, as such,
shall not be entitled by reason of this  Warrant to any rights  whatsoever  as a
stockholder of the Company.

     9.   REGISTRATION  RIGHTS.  This  Warrant  and the  shares of Common  Stock
issuable upon exercise of this Warrant will be accorded the registration  rights
under the Act set  forth in that  certain  Subscription  Agreement  between  the
Company  and  the  Holders,  a  form  of  which  agreement  is  being  furnished
concurrently herewith.

     10.  DEFINITIONS.  As used herein,  unless the context otherwise  requires,
the following terms have the respective meanings:

              (a) "AFFILIATE":  with respect to any Person,  the following:  (i)
any other Person that at such time  directly or  indirectly  through one or more
intermediaries  controls,  or is controlled  by or is under common  control with
such first Person or (ii) any Person beneficially owning or holding, directly or
indirectly,  10% or more of any  class of  voting  or  equity  interests  of the
Company  or any  Subsidiary  or any  corporation  of which the  Company  and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
10% of  more  of any  class  of  voting  or  equity  interests.  As used in such
definition, "controls," "controlled by" and "under common control," as used with
respect to an Person, shall mean the possession,  directly or indirectly, of the
power to  direct or cause  the  direction  of the  management  policies  of such
Person,  whether  through the  ownership of voting  securities,  by agreement or
otherwise.

              (b)  "PERSON":  any  natural  person,  corporation,  division of a
corporation,  partnership,  limited  liability  company,  trust,  joint venture,
association,  company, estate,  unincorporated organization or government or any
agency or political subdivision thereof.

              (c)  "SUBSIDIARIES":  with respect to any Person, any corporation,
association  or  other  business  entity  (whether  now  existing  or  hereafter
organized)  of which at least a majority of the  securities  or other  ownership
interests  having ordinary voting power for the election of directors is, at the
time as of which any  determination  is being made,  owned or controlled by such
Person or one or more subsidiaries of such Person.

     11.  NOTICES.  Any notice required or contemplated by this Warrant shall be
deemed to have been duly given if transmitted  by registered or certified  mail,
return receipt requested,  or nationally  recognized overnight delivery service,
to the Company at CepTor Corporation,  200 International Circle, Hunt Valley, MD
20130.  Attention:  Chief  Financial  Officer,  or to the Holder at the name and
address set forth in the Warrant Register maintained by the Company.

     12.  CHOICE OF LAW. THIS WARRANT IS ISSUED UNDER AND SHALL FOR ALL PURPOSES
BE GOVERNED BY AND CONSTRUED IN  ACCORDANCE  WITH THE INTERNAL LAWS OF THE STATE
OF DELAWARE, WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW RULES.

                      REST OF PAGE INTENTIONALLY LEFT BLANK

     IN WITNESS  WHEREOF,  the Company has duly caused this Warrant to be signed
on its behalf, in its corporate name and by its duly authorized officers,  as of
this ___ day of _____________ 2005.

                                      CEPTOR CORPORATION

                                          By:_______________________________
                                             William Pursley
                                             Chairman and Chief Executive

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