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                                                                   EXHIBIT 10.18

                                                               EXECUTION VERSION

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                             NOTE PURCHASE AGREEMENT

                                  BY AND AMONG

                              EPICEPT CORPORATION,

                             AS BORROWER AND ISSUER

                                       AND

                        THE PURCHASERS IDENTIFIED HEREIN

                                  March 3, 2005

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      THIS NOTE PURCHASE AGREEMENT (this "AGREEMENT"), dated as of March 3,
2005, is by and among EpiCept Corporation, a Delaware corporation ("COMPANY"),
the purchasers that are now and hereafter at any time parties hereto and are
listed in Annex A (or any amendment or supplement thereto) attached hereto (each
a "U.S. PURCHASER" and collectively, the "U.S. PURCHASERS"), the purchasers that
are now and hereafter at any time parties hereto and are listed in Annex B (or
any amendment or supplement thereto) attached hereto (each a "QIB PURCHASER" and
collectively, the "QIB PURCHASERS"), and the purchasers that are now and
hereafter at any time parties hereto and are listed in Annex C (or any amendment
or supplement thereto) attached hereto (each a "REGULATION S PURCHASER" and,
collectively, the "REGULATION S PURCHASERS" and together with the U.S.
Purchasers and the QIB Purchasers, the "PURCHASERS"). Capitalized terms used and
not defined elsewhere in this Agreement are defined in Article 1 hereof.

                                    RECITALS

A. The Company has proposed selling the Notes to the Purchasers in the aggregate
principal amount of $5,000,000.

B. In order to induce the Purchasers to purchase the Notes to be issued pursuant
to this Agreement, the Company has agreed to issue and sell to the Purchasers,
in connection with the purchase of such Notes, warrants exercisable for shares
of Common Stock, $0.0001 par value of the Company (the "COMMON STOCK") or Next
Round Preferred Stock (as defined below), as the case may be, subject to the
terms and conditions set forth in this Agreement.

      NOW, THEREFORE, the parties hereto, in consideration of the premises and
their mutual covenants and agreements herein set forth and intending to be
legally bound hereby, covenant and agree as follows:

                                   ARTICLE 1

                                   DEFINITIONS

      1.1 CERTAIN DEFINITIONS. In addition to other words and terms defined
elsewhere in this Agreement, the following words and terms shall have the
meanings set forth below:

      "AFFILIATE" shall mean, with respect to any Person, any other Person that
is directly or indirectly controlling, controlled by or under common control
with such Person or entity or any of its Subsidiaries, and the term "control"
(including the terms "CONTROLLED BY" and "UNDER COMMON CONTROL WITH") means
having, directly or indirectly, the power to direct or cause the direction of
the management and policies of a Person, whether through ownership of voting
securities, by contract or otherwise.

      "AGREEMENT" shall mean this Note Purchase Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

      "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or other
day on which banking institutions in New York City are authorized or required by
law to close.

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      "BY-LAWS" shall mean, with respect to any Person, the by-laws, partnership
agreement, operating agreement, limited liability company agreement or analogous
instrument governing the operations of the Company, as applicable, including all
amendments and supplements thereto.

      "CURRENT CHARTER" shall mean the Amended and Restated Certificate of
Incorporation of the Company as of the date hereof and as amended from time to
time.

      "CLOSING" shall have the meaning assigned in Section 2.4 hereof.

      "CLOSING DATE" shall have the meaning assigned to such term in Section 2.4
hereof.

      "COMMON STOCK" shall have the meaning assigned to such term in the
preamble hereto.

      "DEFAULT" shall mean any event or condition that, but for the giving of
notice or the lapse of time, or both, would constitute an Event of Default.

      "EVENT OF DEFAULT" shall mean any of the events of default described in
Section 9.1 hereof.

      "FINANCIAL STATEMENTS" shall have the meaning assigned to such term in
Section 5.1(d) hereof.

      "GAAP" shall have the meaning assigned to such term in Section 1.2 hereof.

      "GUARANTEE" shall mean any guaranty of the payment or performance of any
Indebtedness or other obligation and any other arrangement whereby credit is
extended to one obligor on the basis of any promise of another Person, whether
that promise is expressed in terms of an obligation to pay the Indebtedness of
such obligor, or to purchase an obligation owed by such obligor, or to purchase
goods and services from such obligor pursuant to a take-or-pay contract, or to
maintain the capital, working capital, solvency or general financial condition
of such obligor, whether or not any such arrangement is reflected on the balance
sheet of such other Person, firm or corporation, or referred to in a footnote
thereto, but shall not include endorsements of items for collection in the
ordinary course of business. For the purpose of all computations made under this
Agreement, the amount of a Guarantee in respect of any obligation shall be
deemed to be equal to the maximum aggregate amount of such obligation or, if the
Guarantee is limited to less than the full amount of such obligation, the
maximum aggregate potential liability under the terms of the Guarantee.

      "INDEBTEDNESS" shall mean, for any Person at the time of any
determination, without duplication, all obligations, contingent or otherwise, of
such Person that, in accordance with GAAP, should be classified upon the balance
sheet of such Person as indebtedness, but in any event including: (i) all
obligations for borrowed money, (ii) all obligations arising from installment
purchases of property or representing the deferred purchase price of property or
services in respect of which such Person is liable, contingently or otherwise,
as obligor or otherwise (other than trade payables and other current liabilities
incurred in the ordinary course of business on terms customary in the trade),
(iii) all obligations evidenced by notes, bonds, debentures, acceptances or
instruments, or arising out of letters of credit or bankers' acceptances issued
for such Person's account, (iv) all obligations, whether or not assumed, secured
by any Lien or payable out of the proceeds or production from any property or
assets now or hereafter owned or acquired by such Person, (v) all obligations
for which such Person is obligated

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pursuant to a Guarantee, (vi) the capitalized portion of lease obligations under
capital leases, (vii) all obligations for which such Person is obligated
pursuant to any Interest Rate Protection Agreements or derivative agreements or
arrangements, (viii) all factoring arrangements and (ix) all obligations of such
Person upon which interest charges are customarily paid or accrued.

      "INTEREST RATE PROTECTION AGREEMENT" shall mean any interest rate swap,
interest rate cap, interest rate collar or other interest rate hedging agreement
or arrangement.

      "NEXT ROUND PREFERRED STOCK" shall have the meaning assigned to such term
in the Warrants.

      "NOTE" shall have the meaning assigned to such term in Section 2.1(a)
hereof.

      "PERSON" shall mean any individual, partnership, limited partnership,
corporation, limited liability company, association, joint stock company, trust,
joint venture, unincorporated organization or governmental entity or department,
agency or political subdivision thereof.

      "PURCHASER" shall have the meaning assigned to such term in the preamble
hereto and, if applicable, in Section 7.2 hereof.

      "REGULATION S PURCHASER" shall have the meaning assigned to such term in
the preamble hereto.

      "REQUIRED PURCHASERS" shall mean, at any time, Purchasers holding a pro
rata percentage of the outstanding principal amount of the Notes aggregating at
least 66-2/3% at such time.

      "SEC" shall mean the Securities and Exchange Commission and any
governmental body or agency succeeding to the functions thereof.

      "SECURITIES" shall mean the Notes, the Warrants, the Warrant Shares and
any securities of the Company's capital stock issuable upon conversion of the
Notes and any securities which may be issuable upon exercise, conversion or
exchange of any of the foregoing.

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

      "SUBSIDIARY" of any corporation shall mean any other corporation or
limited liability company or other entity of which the outstanding capital stock
or equity interest possessing a majority of voting power in the election of
directors (otherwise than as the result of a default) is owned or controlled by
such corporation directly or indirectly through Subsidiaries.

      "TRANSACTION DOCUMENTS" shall mean this Agreement and the Securities and
all other agreements, instruments and documents delivered in connection
therewith as any or all of the foregoing may be supplemented or amended from
time to time.

      "TRANSACTIONS" shall mean the incurrence of debt and the issuance of
securities in connection therewith, as contemplated by this Agreement, the Notes
and all other agreements contemplated hereby and thereby.

      "U.S. PURCHASER" shall have the meaning assigned to such term in the
preamble hereto.

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      "WARRANTS" shall have the meaning assigned to such term in Section 2.2
hereof.

      "WARRANT SHARES" shall mean the shares of Common Stock or Next Round
Preferred Stock issued or issuable upon exercise of the Warrants.

      1.2 ACCOUNTING PRINCIPLES. The character or amount of any asset,
liability, capital account or reserve and of any item of income or expense to be
determined, and any consolidation or other accounting computation to be made,
and the construction of any definition containing a financial term, pursuant to
this Agreement shall be determined or made in accordance with generally accepted
accounting principles in the United States of America consistently applied
("GAAP"), unless such principles are inconsistent with the express requirements
of this Agreement.

      1.3 OTHER DEFINITIONAL PROVISIONS; CONSTRUCTION. Whenever the context so
requires, neuter gender includes the masculine and feminine, the singular number
includes the plural and vice versa. The word "including" when used herein shall
mean "including without limitation" unless the context states otherwise. The
words "hereof," "herein" and "hereunder" and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and references to any section, article,
annex, schedule, exhibit or like references are references to this Agreement
unless otherwise specified. A Default or Event of Default shall "continue" or be
"continuing" until such Default or Event of Default has been cured or waived by
any Purchaser as provided in Section 9.2(b). References in this Agreement to any
Persons shall include such Persons, successors and permitted assigns. Other
terms contained in this Agreement (which are not otherwise specifically defined
herein) shall have the meanings provided to such terms in Article 9 of the New
York Uniform Commercial Code on the date hereof to the extent the same are used
or defined therein.

                                   ARTICLE 2

                          ISSUE AND SALE OF SECURITIES

      2.1 NOTES. The Company has duly authorized the issuance to the Purchasers
of $5,000,000 of aggregate principal amount of the 8% Senior Notes due 2006, to
be substantially in the form of the promissory notes made by the Company in
favor of the Purchasers thereof in the form attached hereto as Exhibit A
(together with any promissory notes issued in substitution therefor pursuant to
Sections 7.3 and 7.4, the "NOTES").

      2.2 AUTHORIZATION AND ISSUANCE OF THE WARRANTS. The Company has duly
authorized the issuance and sale to the Purchasers certain stock purchase
warrants substantially in the form of the warrant attached hereto as Exhibit B
evidencing the Purchasers' right to acquire shares of Common Stock or Next Round
Preferred Stock, as the case may be (the "WARRANTS").

      2.3 SALE AND PURCHASE. Subject to the terms and conditions and in reliance
upon the representations, warranties and agreements set forth herein, (a) the
Company shall sell to the Purchasers, and the Purchasers shall purchase from the
Company, in the principal amounts designated in Annex A and Annex B, the Notes
for a purchase price equal to the principal amount and (b) the Company shall
sell to each Purchaser, and each Purchaser shall purchase from the Company, for
a total purchase price of $10.00, a Warrant.

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      2.4 THE CLOSING. Delivery of and payment for the Securities to be issued
at closing (the "CLOSING") shall be made at the offices of Weil, Gotshal &
Manges LLP, 767 Fifth Avenue, New York, NY 10153, commencing at 10:00 a.m.,
local time, on March 3, 2005 or at such place or on such other date as may be
mutually agreeable to the Company and the Purchasers. The date and time of the
Closing as finally determined pursuant to this Section 2.4 are referred to
herein as the "CLOSING DATE." Delivery of the Securities shall be made to the
Purchasers against payment of the purchase price therefor by wire transfer of
immediately available funds in the manner agreed to by the Company and the
Purchasers. The Notes and Warrants to be issued at Closing shall be issued in
such name or names and in such permitted denomination or denominations, numbers
and amounts as set forth in Annex A or Annex B or as the Purchasers may request
in writing not less than two (2) Business Days before the Closing Date.

      2.5 DELIVERY OF THE CERTIFICATES REPRESENTING THE NOTES TO REGULATION S
PURCHASERS. At the Closing, the Company will issue a temporary global
certificate representing the aggregate principal amount of the Notes being
purchased by the Regulation S Purchasers, registered in the name of EpiCept
Corporation, on behalf of the Regulation S Purchasers, which shall be held in
trust by the Company for the benefit of each of the Regulation S Purchasers
until the Delivery Date (as hereinafter defined). The Company will cause to be
delivered to each Regulation S Purchaser or its nominee who is acting as its
custodian, without additional payment, within five (5) Business Days following
the Delivery Date, one (1) or more definitive certificates representing the
aggregate principal amount of the Notes purchased by such Regulation S Purchaser
registered in the name of such Regulation S Purchaser or its nominee who is
acting as its custodian. The Delivery Date is the first business day following a
period of forty (40) days after the Closing Date.

                                   ARTICLE 3

                               REPAYMENT OF NOTES

      3.1 INTEREST RATES.

            (a) The Notes shall bear interest on the outstanding principal
thereof at a rate per annum equal to eight percent (8%).

            (b) Interest on the Notes will be computed on the basis of a year
within three hundred sixty (360) days, and the actual number of days elapsed.

      3.2 REPAYMENT OF NOTES. The Company covenants and agrees to pay all
outstanding principal and accrued and unpaid interest.

      3.3 OPTIONAL PREPAYMENT OF NOTES. The Company shall have the right at its
option at any time to prepay the outstanding principal and accrued and unpaid
interest on the Notes, in whole or in part, without premium or penalty; provided
that the Company notifies the affected Purchasers of the date that it intends to
make payment on the Note not less than five (5) Business Days prior to such
date. Any prepayment of the Notes shall be accompanied by the interest accrued
and unpaid on the prepaid principal amount. Notice of prepayment having been so
given, the aggregate principal amount of the Notes specified in such notice,
together with accrued interest thereon and the premium, if any, shall become due
and payable on the prepayment date set forth in such notice.

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      3.4 MANDATORY PREPAYMENT. The Notes shall be prepaid in full, together
with all accrued and unpaid interest, (1) within five (5) Business Days of the
consummation of any public offering of debt or equity securities of the Company
or (2) immediately upon the consummation of Sale of the Company (each a
"MANDATORY PREPAYMENT EVENT"). For purposes hereof, a "SALE OF THE COMPANY"
means (a) a merger, consolidation, share exchange or other form of corporate
reorganization involving the Company in which the stockholders of the Company
immediately before such merger, consolidation, share exchange or other corporate
reorganization dispose of in excess of fifty percent (50%) of the issued and
outstanding capital stock of the Company; (b) any transaction or series of
related transactions in which (i) all or substantially all of the assets of the
Company are sold, or (ii) in excess of fifty percent (50%) of the shares of
Common Stock (assuming conversion of all convertible securities) is issued
transferred to any person; or (c) any event that would trigger payments to the
holders of any series of the Company's Preferred Stock under Section 1(c) of
Article FOURTH of the Current Charter in the absence of the prescribed vote of
the holders of such series to the contrary. The Company will mail or cause to be
mailed to the holder of the Notes a notice specifying the date on which such
Mandatory Prepayment Event is scheduled to be consummated. Such notice will be
mailed at least twenty (20) days prior to the date of such consummation.

                                   ARTICLE 4

                                   CONDITIONS

      4.1 CONDITIONS TO THE PURCHASE OF SECURITIES. The obligation of Purchasers
to purchase and pay for the Securities to be purchased at the Closing is subject
to the satisfaction, prior to or at the Closing, of the following conditions:

            (a) REPRESENTATIONS AND WARRANTIES TRUE. The representations and
warranties of the Company contained in Article 5 hereof shall be true and
correct at and as of the Closing Date as though then made.

            (b) AGREEMENTS AND CONDITIONS. The Company shall have performed and
complied with all agreements, obligations and conditions contained in this
Agreement that are required to be performed or complied with by it on or before
the Closing Date.

            (c) CLOSING DOCUMENTS. Except as set forth in Section 2.5, the
Company will have delivered the following documents in form and substance
reasonably satisfactory to the Purchasers:

                  (i) Notes in aggregate original principal amounts as set forth
            herein, duly completed and executed by the Company;

                  (ii) one or more Warrants evidencing the right to acquire
            shares of Common Stock or Next Round Preferred Stock of the Company;

                  (iii) certificates of good standing dated not more than ten
            (10) days prior to the Closing Date for the Company issued by the
            Secretary of State of the State of Delaware and each jurisdiction
            where it is qualified to operate as a foreign corporation, or its
            equivalent;

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                  (iv) a copy of the Current Charter of the Company, certified
            by the Secretary of State of the State of Delaware as of a date not
            more than ten (10) days prior to the Closing Date;

                  (v) a copy of the By-laws of the Company, certified as of the
            Closing Date by the secretary or assistant secretary of the Company;

                  (vi) a certificate of the secretary or assistant secretary of
            the Company, certifying as to the names and true signatures of the
            officers of the Company authorized to sign this Agreement and the
            other documents to be delivered by the Company hereunder;

                  (vii) copies of the resolutions duly adopted by the Company's
            board of directors authorizing the execution, delivery and
            performance by the Company of this Agreement and each of the other
            agreements, instruments and documents contemplated hereby to which
            it is a party, and the consummation of all of the other
            Transactions, certified as of the Closing Date by the secretary or
            assistant secretary of the Company;

                  (viii) a certificate dated as of the Closing Date from an
            officer of the Company stating that the conditions specified in this
            Section 4.1 have been fully satisfied or waived by the Purchasers;
            and

                  (ix) such other documents contemplated by this Agreement as
            the Purchasers or their counsel may reasonably request.

            (d) WAIVER OF RIGHT OF FIRST REFUSAL. The Waiver by Investors of
Certain Rights of First Refusal (currently in the form attached hereto as
Exhibit C) shall have been duly and validly executed by the Company and all
signatories thereto.

            (e) PROCEEDINGS. All proceedings taken or required to be taken in
connection with the transactions contemplated hereby to be consummated at or
prior to the Closing and all documents incident thereto will be reasonably
satisfactory in form and substance to the Purchasers and their counsel.

            (f) SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT. The
Company, the Purchasers and certain other securityholders of the Company, shall
have entered into the Second Amended and Restated Registration Rights Agreement,
dated as of March 3, 2005 in form and substance as set forth in Exhibit D
attached hereto (the "REGISTRATION RIGHTS AGREEMENT").

      4.2 WAIVER. Any condition specified in this Article 4 may be waived by the
Purchasers.

                                   ARTICLE 5

               REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES

      5.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY . The Company represents
and warrants to the Purchasers as follows:

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            (a) The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware, and has the
corporate power and authority to own, lease and operate its properties and to
conduct the business that it presently conducts. The Company is duly qualified
as a foreign corporation to transact business, and is in good standing in each
jurisdiction in which such qualification is required, except for such
jurisdictions where the failure to be so qualified or in good standing would not
have a material adverse effect on the condition, financial or otherwise, or on
the results of operations, business affairs or business prospects of the
Company.

            (b) The execution, delivery and performance of this Agreement by the
Company (a) has been duly authorized and approved by the Board of Directors of
the Company and all other necessary corporate action on the part of the Company
in connection therewith has been taken, and (b) will not conflict with or
constitute a breach of or default under, or result in the creation or imposition
of any lien, charge or encumbrance upon any property or assets of the Company
pursuant to (i) the charter documents or by-laws of the Company, (ii) any
material contract, indenture, mortgage, loan agreement, note, lease or other
agreement or instrument to which the Company is a party or by which it may be
bound or to which any of its properties may be subject, or (iii) any law,
administrative regulation or court decree applicable to or binding upon the
Company. This Agreement, the Notes, the Warrants and the Registration Rights
Agreement have been duly and validly executed and delivered by the Company and
constitute the legal, valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, except that (i) any
enforcement may be subject to bankruptcy, insolvency, reorganization, moratorium
or similar laws from time to time in effect and affecting the rights of
creditors generally, (ii) the remedy of specific performance and injunctive and
other forms of equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceedings therefor may be brought and
(iii) the enforcement of rights to indemnity and contribution under the
Registration Rights Agreement may be limited by applicable securities laws or
principles of public policy.

            (c) No authorization, approval or consent of any court, governmental
authority or agency is necessary with respect to the issuance by the Company of
the Note or Warrant.

            (d) The audited consolidated balance sheet of the Company as of
December 31, 2004, and the related audited consolidated statement of income,
stockholders' equity and cash flows for the Company for the year ended December
31, 2004, have been made available to the Purchasers (such financial statements
are referred to herein as the "FINANCIAL STATEMENTS"; the balance sheet of the
Company as of December 31, 2004 is hereinafter referred to as the "BALANCE
SHEET," and December 31, 2004 is hereafter referred to as the "BALANCE SHEET
DATE"). The Financial Statements (a) are true and correct in all material
respects, (b) are in accordance with the books and records of the Company, and
(c) present fairly the financial position and results of operations of the
Company as of the dates and for the periods indicated in accordance with
generally accepted accounting principles applied on a consistent basis.

            (e) Since the Balance Sheet Date there has not been (a) any material
adverse change in the financial condition, results of operations, assets,
liabilities, business or prospects of the Company, other than in connection with
the deterioration of the Company's cash position in line with the Company's
forecasts existing as at the Balance Sheet Date, (b) any material asset or
property of the Company made subject to a lien of any kind, except liens for
taxes not yet due

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and payable, (c) any waiver of any valuable right of the Company, or the
cancellation of any debt or claim held by the Company, (d) any payment of
dividends on, or other distribution with respect to, or any direct or indirect
redemption or acquisition of, any shares of the capital stock of the Company, or
any agreement or commitment therefor, (e) any mortgage, pledge, sale, assignment
or transfer of any tangible or intangible assets of the Company, except in the
ordinary course of business, (f) any loan by the Company to, or any loan to the
Company from, any officer, director, employee or stockholder of the Company, or
any agreement or commitment therefor except for the issuance of the Notes, (g)
any damage, destruction or loss (whether or not covered by insurance) materially
and adversely affecting the assets, property or business of the Company, or (h)
any change in the accounting methods or practices followed by the Company.

            (f) As of the Closing Date and immediately thereafter, the
authorized capital stock of the Company will be as set forth on Schedule 5.1(f).
Except as set forth on Schedule 5.1(f), as of the Closing Date, the Company will
not have outstanding any stock or securities convertible into or exchangeable
for any shares of its capital stock and will not have outstanding any rights or
options to subscribe for or to purchase its capital stock or any stock or
securities convertible into or exchangeable for its capital stock. As of the
Closing Date, the Company will not then be subject to any obligation to
repurchase or otherwise acquire or retire any shares of its capital stock. As of
the Closing Date, all of the outstanding shares of the Company's capital stock
will be validly issued, fully paid and nonassessable. The Company has not
violated any applicable federal or state securities laws in connection with the
offer, sale or issuance of any of its capital stock, and based upon the
Purchasers' representations, warranties and covenants in Article 6 hereof, the
offer, sale and issuance of the Notes and the Warrants hereunder do not require
registration under the Act or any applicable state securities laws. Except as
set forth on Schedule 5.1(f), there are no agreements among the Company's
stockholders with respect to the voting or transfer of the Company's capital
stock.

                                   ARTICLE 6

                REPRESENTATIONS AND WARRANTIES BY THE PURCHASERS

      6.1 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each of the
Purchasers hereby represent and warrant to the Company as follows:

            (a) Such Purchaser acknowledges that he/she/it had access to the
Financial Statements. Such Purchaser further acknowledges that he/she/it fully
understands the Financial Statements, and has had the opportunity to discuss any
questions regarding the Financial Statements with his/her/its counsel or other
legal, financial and tax advisors. Such Purchaser acknowledges that he/she/it
has received no representations or warranties from the Company or its respective
employees or agents in making this investment decision other than as set forth
in the Financial Statements, this Agreement, the Note and the Warrant.

            (b) Such Purchaser recognizes that the purchase of the Note and the
Warrant entails elements of risk in that (i) the Purchaser may not be able
readily to liquidate the investment; (ii) transferability of the Securities are
restricted; and (iii) the Purchaser could sustain the loss of their entire
investment.

            (c) Such Purchaser (other than the QIB Purchasers and the Regulation
S Purchasers) is an "accredited investor" within the meaning ascribed to such
term in Rule 501 of Regulation D under the Securities Act.

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            (d) Such Purchaser hereby represents that he/she/it has prior
investment experience such that the Purchaser is able to evaluate the merits and
risks of an investment in the Company, or that the Purchaser has employed the
services of an investment advisor to read the Financial Statements and to
evaluate the merits and risks of such an investment on the Purchaser's behalf,
and that the Purchaser recognizes the speculative nature of this investment and
acknowledges that the Purchaser is able to bear the economic risks being assumed
by the Purchaser. The Purchaser also acknowledges that the Purchaser and its
representative(s) have been afforded the opportunity to make, and have made, all
inquiries as the Purchaser and its representatives deemed appropriate with
respect to the Company's affairs and prospects.

            (e) The Purchaser hereby represents that such Purchaser is acquiring
the Note and the Warrant for the Purchaser's own account for purposes of
investment and not with a view to or in connection with the distribution or
resale of all or any part thereof, and that such Purchaser does not have any (1)
present intention of selling, transferring, granting any participation in, or
otherwise distributing the Note or the Warrant, or (2) contract, undertaking,
agreement or arrangement with any person or entity to sell, transfer, grant any
participation in or otherwise distribute all or any part of the Note or the
Warrant. The Purchaser understands that the Note and the Warrant will not be
registered under the Act or applicable state securities laws by reason of
specific exemptions therefrom, which exemptions depend upon, among other things,
the Purchaser's representations set forth herein.

            (f) The Purchaser hereby represents that any shares issuable upon
the conversion of the Note and the exercise of the Warrant, is and will be
acquired by the Purchaser for such Purchaser's own account for purposes of
investment and not with a view to or in connection with the distribution or
resale of all or any part thereof, and that such Purchaser does not have any (1)
present intention of selling, transferring, granting any participation in, or
otherwise distributing such securities, or (2) contract, undertaking, agreement
or arrangement with any person or entity to sell, transfer, grant any
participation in or otherwise distribute all or any part of such securities. The
Purchaser understands that such securities will not be registered under the Act
or applicable state securities laws by reason of specific exemptions therefrom,
which exemptions depend upon, among other things, the Purchaser's
representations set forth herein.

            (g) The Purchaser hereby represents that such Purchaser has not been
organized for the purpose of acquiring the Securities.

            (h) The Purchaser understands that the Securities are characterized
as "restricted securities" under the Act inasmuch as they are being acquired
from the Company in a transaction not involving a public offering, and that the
Securities may be resold without registration under the Act only in certain
limited circumstances. In connection therewith, the Purchaser represents that
such Purchaser is familiar with Rule 144 of the Act, as presently in effect, and
understands the resale limitations imposed thereby and by the Act.

      6.2 ADDITIONAL REPRESENTATIONS AND WARRANTIES OF THE QIB PURCHASERS. Each
of the QIB Purchasers also hereby represent and warrant to the Company as of the
date hereof, the Closing Date and on the Delivery Date, as follows:

            (a) Such QIB Purchaser is a "qualified institutional buyer" within
the meaning ascribed to such term in Rule 144A under the Securities Act.

                                       10

<PAGE>

      6.3 ADDITIONAL REPRESENTATIONS AND WARRANTIES OF THE REGULATION S
PURCHASERS. Each of the Regulation S Purchasers also hereby represent and
warrant to the Company as of the date hereof, the Closing Date and on the
Delivery Date, as follows:

            (a) Such Regulation S Purchaser understands and acknowledges that
(a) the Securities may not be offered, sold, transferred, pledged or otherwise
disposed of, in the United States or to, or for the account or benefit of, any
"U.S. person," unless such securities are registered under the Securities Act
and any applicable state securities or blue sky laws or exemptions from the
registration requirements of such laws are available, (b) the Securities are
being offered and sold in a manner intended to comply with the conditions
contained in Regulation S, which permits securities to be sold to persons who
are not "U.S. persons" in "offshore transactions" (as defined in Regulation S),
subject to certain terms and conditions and (c) such Regulation S Purchaser is
not purchasing the Securities in any transaction or series of transactions that,
although in technical compliance with Regulation S, is part of a plan or scheme
to evade the registration provisions of the Securities Act.

            (b) Such Regulation S Purchaser nor any person or account as to
which it exercises investment discretion for investment purposes only and not
for any trading or arbitrage purposes is a "U.S. person" or is acquiring the
Securities for the account or benefit of a "U.S. person."

                                   ARTICLE 7

                             TRANSFER OF SECURITIES

      7.1 RESTRICTED SECURITIES. The Purchasers acknowledge that the Securities
have not been registered or qualified under the Securities Act or applicable
foreign or state securities laws and may not be transferred or otherwise
disposed of unless they have been so registered or qualified or if an opinion of
counsel satisfactory to the Company to the effect that such registration and
qualification is not required has been delivered to the Company, and that except
as specifically provided in the Registration Rights Agreement, the Company is
not required to register any of the Securities under the Securities Act.

      7.2 LEGENDS. The Company may place an appropriate legend on the Securities
concerning the restrictions set forth in this Article 7 and by applicable law.
Upon the assignment or transfer by the Purchasers or any of their respective
successors or assigns of all or any part of the Securities, the term "Purchaser"
as used herein shall thereafter mean, to the extent thereof, the then holder or
holders of such Securities, or portion thereof.

      7.3 TRANSFER OF NOTES.

            (a) Subject to Section 7.2 and Section 7.3(b), a holder of a Note
may transfer such Note to a new holder, or may exchange such Note for Notes of
different denominations (but in no event for denominations of less than $100,000
in original principal amount), by surrendering such Note to the Company duly
endorsed for transfer or accompanied by a duly executed instrument of transfer
naming the new holder (or the current holder if submitted for exchange only),
together with written instructions for the issuance of one or more new Notes
specifying the respective principal amounts of each new Note and the name of
each new holder and each address therefor. The Company shall simultaneously
deliver to such holder or its designee such new Notes, shall mark the
surrendered Notes as canceled. In lieu of the foregoing procedures, a holder may
assign a Note (in whole but not in part) to a new holder by sending

                                       11

<PAGE>

written notice to the Company of such assignment specifying the new holder's
name and address; in such case, the Company shall promptly acknowledge such
assignment in writing to both the old and new holder. Any transferees shall be
subject to Sections 7.1, 7.2 and 7.3(b).

            (b) For a period (the "NOTES RESTRICTED PERIOD") of forty (40) days
following the Closing Date (which Notes Restricted Period shall expire not
earlier than midnight (New York time) on the Delivery Date) with respect to the
Notes and for a period (the "WARRANTS RESTRICTED PERIOD", and together with the
Notes Restricted Period, the "RESTRICTED PERIODS") of one (1) year following the
Closing Date (which Warrants Restricted Period shall expire not earlier than
midnight (New York time) on the first anniversary of the date hereof) with
respect to the Warrants, no Regulation S Purchaser shall engage in any activity
for the purpose of, or which may reasonably be expected to have the effect of,
conditioning the market in the United States for the Notes or Warrants, as the
case may be, or offer, sell, transfer, pledge or otherwise dispose of the Notes
or Warrants, as the case may be, in the United States or to, or for the account
or benefit of, a "U.S. person". Each Regulation S Purchaser understands and
agrees that the Notes and the Warrants are only transferable on the books and
records of the Company and its transfer agent, if applicable, and that the
Company and its transfer agent will not register any transfer of the Notes
and/or Warrants which the Company in good faith believes violates the
restrictions set forth herein.

Any proposed offer, sale, transfer, pledge or other disposition of any of the
Notes or Warrants prior to the expiration of their respective Restricted Periods
shall be subject to the condition that such Regulation S Purchaser must deliver
to the Company (i) a written certification that the Notes and/or Warrants have
not been offered or sold in the United States or to, or for the account or
benefit of, any "U.S. person" by such Regulation S Purchaser, (ii) a written
certification of the proposed transferee that such transferee (or any account
for which such transferee is acquiring such Notes and/or Warrants) is not a
"U.S. person," is not acquiring the Notes and/or Warrants for the account or
benefit of any "U.S. person," is acquiring such Notes and/or Warrants for such
transferee's own account (or an account over which it has investment discretion)
for investment purposes only and not for any trading or arbitrage purposes and
not with a view to, or for sale in connection with, any distribution of the
Notes and/or Warrants at any particular time or at any particular price, and
that such transferee is knowledgeable of and agrees to be bound by the
provisions of Regulation S and the terms of this Section 7.3(b) during the
Restricted Periods and, (iii) a written opinion of United States legal counsel,
in form and substance satisfactory to the Company, to the effect that such
offer, sale, transfer, pledge or other disposition of such Notes and/or Warrants
is exempt from registration under the Securities Act. Such Regulation S
Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or
otherwise dispose of (or solicit any offers to buy, purchase or otherwise
acquire or take pledge of) its rights under this Agreement or the Notes and/or
Warrants otherwise than in compliance with the Securities Act, any applicable
state securities or blue sky laws and any applicable securities laws of
jurisdiction outside the United States, and the rules and regulations
promulgated thereunder.

      7.4 REPLACEMENT OF LOST SECURITIES. Upon receipt of evidence reasonably
satisfactory to the Company of the mutilation, destruction, loss or theft of any
Securities and the ownership thereof, the Company shall, upon the written
request of the holder of such Securities, execute and deliver in replacement
thereof new Securities in the same form, in the same original tenor and dated
the same date as the Securities so mutilated, destroyed, lost or stolen; and
such Securities so mutilated, destroyed, lost or stolen shall then be deemed no
longer outstanding hereunder. If the Securities being replaced have been
mutilated, they shall be surrendered to the

                                       12

<PAGE>

Company; and if such replaced Securities have been destroyed, lost or stolen,
such holder shall furnish the Company with an indemnity in writing to save the
Company harmless in respect of such replaced Securities.

      7.5 NO OTHER REPRESENTATIONS AFFECTED. Nothing contained in this Article 7
shall limit the full force or effect of any representation, agreement or
warranty made herein or in connection herewith to the Purchasers.

                                   ARTICLE 8

                                    COVENANTS

      8.1 LIMITATION ON INDEBTEDNESS. The Company covenants that, so long as all
or any part of the Notes shall remain outstanding it shall not create, incur,
assume guarantee or be or remain liable for, contingently or otherwise, or
suffer to exist any Indebtedness, except:

            (a) Indebtedness under this Agreement;

            (b) Indebtedness incurred in the ordinary course of business with
respect to customer deposits, trade payables and other unsecured current
liabilities not the result of borrowing and not evidenced by any note or other
evidence of indebtedness;

            (c) Indebtedness under Capital Leases;

            (d) Indebtedness with respect to Guarantees;

            (e) Intercompany Indebtedness between and among the Company and its
Subsidiaries; and

            (f) Indebtedness listed on the Permitted Indebtedness Schedule
attached hereto as Schedule 8.1, and extensions, renewals and replacements
thereof which do not increase the amount of such Indebtedness as of the date of
such extension, replacement or renewal; provided that if such Indebtedness is
subordinated to the Notes on the date hereof that it continues to be
subordinated to the Notes on terms no less favorable than such Indebtedness is
subordinated to the Notes on the date hereof.

                                   ARTICLE 9

                                EVENTS OF DEFAULT

      9.1 EVENTS OF DEFAULT. If any of the following events ("EVENTS OF
DEFAULT") shall occur:

            (a) A final judgment or settlement shall be rendered against or
agreed to by the Company or any of its subsidiaries for the payment of money
that, after deducting the amount of any insurance proceeds paid or payable to or
on behalf of the Company or such subsidiary in connection with such judgment or
settlement, as the case may be, is in excess of $50,000, and such judgment shall
remain undischarged for a period of thirty (30) days, during which period
execution shall not effectively be stayed, or such settlement shall remain
unpaid for a period of thirty (30) days after the agreed payment date unless
such delay has been agreed to by the other party. If a dispute exists with
respect to the liability of any insurance underwriter under

                                       13

<PAGE>

any insurance policy of the Company or such subsidiary, no deduction under this
subsection shall be made for any portion of the insurance proceeds that are the
subject of such dispute;

            (b) The Company or any of its subsidiaries shall (i) voluntarily
terminate operations or apply for or consent to the appointment of, or the
taking of possession by, a receiver, custodian, trustee or liquidator of it or
of all or a substantial part of its assets, (ii) admit in writing its inability,
or be generally unable, to pay its debts as the debts become due, (iii) make, or
enter into negotiations to make, a general assignment for the benefit of its
creditors, (iv) commence a voluntary case under the Federal Bankruptcy Code of
the United States (as now or hereafter in effect), (v) file a petition (relating
to itself) seeking to take advantage of any other law relating to bankruptcy,
insolvency, reorganization, winding up, or composition or adjustment of debts,
(vi) fail to controvert in a timely and appropriate manner, or acquiesce in
writing to, any petition filed against it in an involuntary case under the
Federal Bankruptcy Code of the United States or other applicable bankruptcy law
or (vii) take any corporate action for the purpose of effecting any of the
foregoing;

            (c) Without its application, approval or consent, a proceeding shall
be commenced, in any court of competent jurisdiction, seeking in respect of the
Company or any of its subsidiaries the liquidation, reorganization, dissolution,
winding up, or composition or readjustment of debt, the appointment of a
trustee, receiver, liquidator or the like of such entity or of all or any
substantial part of its assets, or other like relief in respect of such entity
under any law relating to bankruptcy, insolvency, reorganization, winding up, or
composition or adjustment of debts; and, if the proceeding is being contested in
good faith by such entity, the same shall continue undismissed, or unstayed and
in effect for any period of forty-five (45) consecutive days, or an order for
relief against such entity shall be entered in any case under the Federal
Bankruptcy Code of the United States or other applicable bankruptcy law;

            (d) Any foreclosure or other proceedings shall be commenced to
enforce, execute or realize upon any lien, encumbrance, attachment, trustee
process, mortgage or security interest for payment of an amount in excess of
$50,000 against the Company or any of its subsidiaries;

            (e) There shall occur any default not cured within the applicable
grace period under any instrument or agreement evidencing any indebtedness in
excess of $500,000 for money borrowed by the Company or any of its subsidiaries;

            (f) There shall occur any acceleration or any default not cured
within the applicable grace period under any of the agreements relating to the
loans to the Company or EpiCept GmbH from IKB or
Technologie-Beteiligungs-Gesellschaft mbH der Deutschen Ausgleichsbank;

            (g) There shall occur any merger, consolidation, share exchange or
other form of corporate reorganization involving the Company in which the
stockholders of the Company immediately before such merger, consolidation, share
exchange or other corporate reorganization dispose of in excess of fifty percent
(50%) of the issued and outstanding capital stock of the Company;

            (h) There shall occur any transaction or series of related
transactions in which (i) all or substantially all of the assets of the Company
are sold, or (ii) in excess of fifty percent (50%) of the shares of Common Stock
(assuming conversion of all convertible securities) is

                                       14

<PAGE>

issued transferred to any person (other than in a Qualifying Financing or a
Qualified Public Offering); or

            (i) There shall occur any event that will trigger payments to the
holders of any series of the Preferred Stock under Section 1(c) of Article
FOURTH of the Current Charter in the absence of the prescribed vote of the
holders of such series to the contrary.

      9.2 CONSEQUENCES OF EVENT OF DEFAULT.

            (a) BANKRUPTCY. If an Event of Default specified in paragraphs (b)
or (c) of Section 9.1 hereof shall occur, the unpaid principal of the Notes, all
interest accrued and unpaid thereon and all other liabilities of the Company
hereunder and thereunder shall be immediately due and payable, without
presentment, demand, protest or (except as expressly required hereby) notice of
any kind, all of which are hereby expressly waived.

            (b) OTHER DEFAULTS. If any other Event of Default shall occur, any
Purchaser (without the agreement of any other Purchaser) may at its option, by
written notice to the Company and the other Purchasers, declare the entire
unpaid balance of the Notes, all interest accrued thereon and all other
liabilities of the Company hereunder and thereunder to be forthwith due and
payable, and the same shall thereupon become immediately due and payable,
without presentment, demand, protest or (except as expressly required hereby)
notice of any kind, all of which are hereby expressly waived; provided that if a
Default specified in clause (ii) of paragraph (b) of Section 9.1 hereof shall
occur, any holder of a Note as to which such Event of Default has occurred may
declare the entire unpaid balance of such Note (but only such Note) and other
amounts due hereunder and thereunder with respect to such Note immediately due
and payable and same shall thereupon become immediately due and payable, without
presentment, demand, protest or (except as expressly provided hereby) notice of
any kind, all of which are expressly waived.

            (c) DEFAULT INTEREST. Following the occurrence and during the
continuance of any Event of Default, the holders of the Notes shall be entitled
to receive, to the extent permitted by applicable law, interest on the
outstanding principal of, and premium and overdue interest, if any, on, the
Notes at a rate per annum equal to the interest rate thereon (determined as
provided in Section 3.1) plus two hundred (200) basis points.

                                   ARTICLE 10

                                  MISCELLANEOUS

      10.1 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns, except that (i) the Company may not assign or transfer its rights
hereunder or any interest herein or delegate its duties hereunder and (ii) the
Purchasers shall have the right to assign their rights hereunder and the
Securities in accordance with Article 7.

      10.2 MODIFICATIONS AND AMENDMENTS. The provisions of this Agreement may be
modified, waived or amended, but only by a written instrument signed by the
Company, and to the extent such modification, amendment or waiver relates (i) to
the Notes, such instrument must be executed by the Required Purchasers and (ii)
to the Warrants or the Warrant Shares, such instrument must be executed by the
holders of seventy-five percent (75%) of the Warrant Shares.

                                       15

<PAGE>

      10.3 NO IMPLIED WAIVERS; CUMULATIVE REMEDIES; WRITING REQUIRED. No delay
or failure in exercising any right, power or remedy hereunder shall affect or
operate as a waiver thereof; nor shall any single or partial exercise thereof or
any abandonment or discontinuance of steps to enforce such a right, power or
remedy preclude any further exercise thereof or of any other right, power or
remedy. The rights and remedies hereunder are cumulative and not exclusive of
any rights or remedies that the Purchasers or any holder of Notes, Warrants or
Warrant Shares would otherwise have. Any waiver, permit, consent or approval of
any kind or character of any breach or default under this Agreement or any such
waiver of any provision or condition of this Agreement must be in writing and
shall be effective only to the extent in such writing specifically set forth.

      10.4 REIMBURSEMENT OF EXPENSES. The Company agrees to pay or reimburse the
Purchasers upon demand for all reasonable out-of-pocket fees and expenses
incurred or payable by the Purchasers (including, without limitation, reasonable
due diligence expenses and fees and expenses of counsel for the Purchasers) up
to a maximum amount of $10,000.

      10.5 HOLIDAYS. Whenever any payment or action to be made or taken
hereunder or under the Notes shall be stated to be due on a day that is not a
Business Day, such payment or action shall be made or taken on the next
following Business Day, and such extension of time shall be included in
computing interest or fees, if any, in connection with such payment or action.

      10.6 NOTICES. All notices and other communications given to or made upon
any party hereto in connection with this Agreement shall, except as otherwise
expressly herein provided, be in writing (including telecopy, but in such case,
a confirming copy will be sent by another permitted means) and mailed via
certified mail, telecopied or delivered by guaranteed overnight parcel express
service or courier to the respective parties, as follows:

         to the Company:

         EpiCept Corporation
         270 Sylvan Avenue
         Englewood Cliffs, New Jersey 07632
         Facsimile: (201) 837-0200
         Attention: Chief Financial Officer

         with a copy to:

         Weil, Gotshal & Manges LLP
         767 Fifth Avenue
         New York, New York 10153
         Facsimile: (212) 310-8007
         Attention: Alexander D. Lynch, Esq.

         to Purchasers:

         As set forth on Annex A or Annex B.

or in accordance with any subsequent written direction from the recipient party
to the sending party. All such notices and other communications shall, except as
otherwise expressly herein

                                       16

<PAGE>

provided, be effective upon delivery if delivered by courier or overnight parcel
express service; in the case of certified mail, three (3) Business Days after
the date sent; or in the case of telecopy, when received.

      10.7 SURVIVAL. All representations, warranties, covenants and agreements
of the Company contained herein shall survive the execution and delivery of this
Agreement and the purchase of the Notes and the Warrants and shall continue in
full force and effect so long as any Note is outstanding and until payment in
full of the Company's obligations hereunder or thereunder; and any obligations
relating to the Warrants and Warrant Shares shall continue in accordance with
the terms of this Agreement. All obligations relating to indemnification
hereunder shall survive any termination of this Agreement and shall continue for
the length of any applicable statute of limitations.

      10.8 GOVERNING LAW. This agreement shall be governed by, and construed in
accordance with , the as of the State of DELAWARE, without regard to conflict of
laws principles.

      10.9 JURISDICTION, CONSENT TO SERVICE OF PROCESS.

            (a) THE COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF ANY DELAWARE STATE
COURT OR FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE STATE OF
DELAWARE, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR ANY OTHER TRANSACTION
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO HERBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE COURT OR, TO THE EXTENT
PERMITTED BY LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THE AGREEMENT SHALL AFFECT ANY RIGHT THAT AGENT AND
PURCHASERS MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS
AGREEMENT, THE NOTES OR ANY OTHER TRANSACTION DOCUMENT AGAINST THE COMPANY OR
ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

            (b) THE COMPANY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE NOTES OR ANY OTHER
TRANSACTION DOCUMENT IN ANY DELAWARE OR FEDERAL COURT. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING
IN ANY SUCH COURT.

                                       17

<PAGE>

            (c) EACH PARTY TO THIS AGREEMENT IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.6 HEREOF. NOTHING IN
THIS AGREEMENT SHALL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVICE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

      10.10 JURY TRIAL WAIVER. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT
TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (I) TO ENFORCE OR DEFEND ANY RIGHTS
UNDER OR IN CONNECTION WITH THIS AGREEMENT, OR (II) ARISING FROM ANY DISPUTE OR
CONTROVERSY IN CONNECTION WITH OR RELATED TO THIS AGREEMENT AND AGREE THAT ANY
SUCH ACTION OR COUNTERCLAIM SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

      10.11 SEVERABILITY. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable Law in any jurisdiction, such provision shall be
ineffective only to the extent of such prohibition or invalidity, without
invalidating any other provision of this Agreement.

      10.12 HEADINGS. Article, section and subsection headings and the table of
contents in this Agreement are included for convenience of reference only and
shall not constitute a part of this Agreement for any other purpose.

      10.13 INDEMNITY. The Company hereby agrees to indemnify, defend and hold
harmless the Purchasers and their officers, directors, employees, agents and
representatives, and their respective successors and permitted assigns in
connection with any losses, claims, damages, liabilities and expenses, including
reasonable attorneys' fees, to which any Purchaser may become subject (other
than as a result of the gross negligence or willful misconduct of any such
Person), insofar as such losses, claims, damages or liabilities (or actions in
respect thereof) arise out of or by reason of any investigation, litigation or
other proceedings related to or resulting from any act of, or omission by, the
Company or its Affiliates or any officer, director, employee, agent or
representative of the Company or its Affiliates with respect to the
Transactions, the Notes, the Warrants, or any agreements entered into in
connection with any such agreements, instruments or documents and to reimburse
the Purchasers and each such Person and Affiliate, upon demand, for any legal or
other reasonable expenses incurred in connection with investigating or defending
any such loss, claim, damage, liability, expense or action. To the extent that
the foregoing undertakings may be unenforceable for any reason, the Company
agrees to make the maximum contribution to the payment and satisfaction of
indemnified liabilities set forth in this Section 10.13 that is permissible
under applicable law. The indemnified parties hereunder shall give prompt notice
of any claim for which an indemnity or contribution hereunder is sought, and the
failure to give any such notice shall not relieve the Company of its obligations
hereunder, unless such failure shall prejudice any defense that would have
otherwise been available to the Company in respect of such claim.

      10.14 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by either party hereto on separate counterparts, each of which,
when so executed and delivered, shall be an original, but all such counterparts
shall together constitute one and the same instrument.

                                       18

<PAGE>

      10.15 INTEGRATION. This Agreement and the other Transaction Documents set
forth the entire understanding of the parties hereto with respect to all matters
contemplated hereby and supersede all previous agreements and understandings
among them concerning such matters, including any term sheets. No statements or
agreements, oral or written, made prior to or at the signing hereof, shall vary,
waive or modify the written terms hereof.

                                       19

<PAGE>

                                SIGNATURE PAGE TO

                             NOTE PURCHASE AGREEMENT

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

                                           EPICEPT CORPORATION

                                           By:
                                              __________________________________
                                             Name:
                                             Title:

<PAGE>

                                SIGNATURE PAGE TO

                             NOTE PURCHASE AGREEMENT

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

                                           PRIVATE EQUITY DIRECT FINANCE

                                           By:
                                              __________________________________
                                              Name:
                                              Title:

<PAGE>

                                SIGNATURE PAGE TO

                             NOTE PURCHASE AGREEMENT

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

                                           TVM IV GMBH & CO. KG

                                           By:
                                              __________________________________
                                           Name:
                                           Title:

                                           By:
                                              __________________________________
                                           Name:
                                           Title:

<PAGE>

                                SIGNATURE PAGE TO

                             NOTE PURCHASE AGREEMENT

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

                                     THE MERLIN BIOSCIENCES FUND L.P.

                                     By: Merlin General Partner II Limited, its
                                     General Partner

                                     By:
                                         __________________________________
                                     Name:
                                     Title:

                                     THE MERLIN BIOSCIENCES FUND GBR

                                     By: Merlin General Partner II Limited, its
                                     Managing General Partner

                                     By:
                                         __________________________________
                                     Name:
                                     Title:

<PAGE>

                                SIGNATURE PAGE TO

                             NOTE PURCHASE AGREEMENT

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

                                     SANDERS OPPORTUNITY FUND, L.P.

                                     By: SOF Management, LLC

                                     By:
                                         __________________________________
                                        Name:
                                        Title:

                                     SANDERS OPPORTUNITY FUND
                                     (INSTITUTIONAL), L.P.

                                     By: SOF Management, LLC
                                     By:
                                         __________________________________
                                        Name:
                                        Title:

<PAGE>

                                     ANNEX A

                     INFORMATION RELATING TO U.S. PURCHASERS

<TABLE>
<CAPTION>
       Name and Address
         of Purchasers              Aggregate Principal Amount of Notes
------------------------------      -----------------------------------
<S>                                 <C>
Sanders Opportunity Fund, L.P.                  $238,000.00
c/o Sanders Morris Harris
600 Travis Street
3100 Chase Tower
Houston, TX 77002

Sanders Opportunity Fund                        $761,800.00
  (Institutional), L.P.
c/o Sanders Morris Harris
600 Travis Street
3100 Chase Tower
Houston, TX 77002
</TABLE>

                                      A-1

<PAGE>

                                     ANNEX B

                     INFORMATION RELATING TO QIB PURCHASERS

<TABLE>
<CAPTION>
      Name and Address
        of Purchasers               Aggregate Principal Amount of Notes
------------------------------      -----------------------------------
<S>                                 <C>
TVM IV GmbH & Co. KG                            $1,000,000.00
</TABLE>

                                       B-1

<PAGE>

                                     ANNEX C

                 INFORMATION RELATING TO REGULATION S PURCHASERS

<TABLE>
<CAPTION>
       Name and Address
         of Purchasers              Aggregate Principal Amount of Notes
-------------------------------     -----------------------------------
<S>                                 <C>
The Merlin Biosciences Fund L.P.                $  943,308.00
La Motte Chambers
St Helier, Jersey JE1 1BJ

The Merlin Biosciences Fund GbR                 $   56,692.00
La Motte Chambers
St Helier, Jersey JE1 1BJ

Private Equity Direct Finance                   $1,000,000.00
One Capital Place, PO Box 847GT
Grand Cayman, Cayman Islands
</TABLE>

<PAGE>

                                 SCHEDULE 5.1(f)

                                 Capitalization

<PAGE>

                                 SCHEDULE 8.1(f)

                             Permitted Indebtedness

EpiCept Corporation
Debt Schedule
As of March 1, 2005

                                   (IN EUROS)

<TABLE>
<CAPTION>
  GERMAN                       ORIGINAL           CURRENT           CURRENT        CURRENT
DEBT HOLDER                    PRINCIPAL         PRINCIPAL         INTEREST *       TOTAL
-----------                    ---------         ---------         ----------     ---------
<S>                            <C>               <C>               <C>            <C>
TBGI                           1,533,876         1,533,876           76,694       1,610,570

TBGIII                         2,045,168         2,045,168                -       2,045,168

IKB                            2,556,459         1,956,459          163,038       2,119,497

TOTAL                          6,135,503         5,535,503          239,732       5,775,235
</TABLE>

                                    (IN US$)

<TABLE>
<CAPTION>
    US                         ORIGINAL           CURRENT           CURRENT        CURRENT
DEBT HOLDER                    PRINCIPAL         PRINCIPAL         INTEREST *       TOTAL
-----------                    ---------         ---------         ----------     ---------
<S>                            <C>               <C>               <C>            <C>
BRIDGE HOLDERS                 4,850,000         4,850,000           806,230      5,656,230

TOTAL                          4,850,000         4,850,000           806,230      5,656,230
</TABLE>

*accrued interest as of March 1, 2005

<PAGE>

                                    EXHIBIT A

                                  Form of Note

<PAGE>

                                    EXHIBIT B

                                 Form of Warrant

<PAGE>

                                    EXHIBIT C

                        Waiver of Right of First Refusal
<PAGE>

                                    EXHIBIT D

                          Registration Rights Agreement

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               PAGE
<S>                                                                                            <C>
ARTICLE 1        DEFINITIONS...........................................................          1
     1.1      Certain Definitions......................................................          1
     1.2      Accounting Principles....................................................          4
     1.3      Other Definitional Provisions; Construction..............................          4
ARTICLE 2        ISSUE AND SALE OF SECURITIES..........................................          4
     2.1      Notes....................................................................          4
     2.2      Authorization and Issuance of the Warrants...............................          4
     2.3      Sale and Purchase........................................................          4
     2.4      The Closing..............................................................          4
     2.5      Delivery of the Certificates Representing the Notes and the Warrants to
              Regulation S Purchasers..................................................          5
ARTICLE 3        REPAYMENT OF NOTES ...................................................          6
     3.1      Interest Rates...........................................................          6
     3.2      Repayment of Notes.......................................................          6
     3.3      Optional Prepayment of Notes.............................................          6
     3.4      Mandatory Prepayment.....................................................          6
ARTICLE 4        CONDITIONS............................................................          7
     4.1      Conditions to the Purchase of Securities.................................          7
     4.2      Waiver...................................................................          8
ARTICLE 5        REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES....................          8
     5.1      Representations and Warranties of the Company ...........................          8
ARTICLE 6        REPRESENTATIONS AND WARRANTIES BY THE PURCHASERS......................         10
     6.1      Representations and Warranties of the Purchasers.........................         10
     6.2      Additional Representations and Warranties of the Regulation S Purchasers.         11
ARTICLE 7        TRANSFER OF SECURITIES................................................         11
     7.1      Restricted Securities....................................................         12
     7.2      Legends..................................................................         12
     7.3      Transfer of Notes........................................................         12
</TABLE>

                                       i
<PAGE>

                                TABLE OF CONTENTS
                                  (CONTINUED)

<TABLE>
<S>                                                                                             <C>
     7.4      Replacement of Lost Securities...........................................         13
     7.5      No Other Representations Affected........................................         13
ARTICLE 8        COVENANTS.............................................................         13
     8.1      Limitation on Indebtedness...............................................         13
ARTICLE 9        EVENTS OF DEFAULT.....................................................         14
     9.1      Events of Default........................................................         14
     9.2      Consequences of Event of Default.........................................         15
ARTICLE 10       MISCELLANEOUS.........................................................         16
     10.1     Successors and Assigns...................................................         16
     10.2     Modifications and Amendments.............................................         16
     10.3     No Implied Waivers; Cumulative Remedies; Writing Required................         16
     10.4     Reimbursement of Expenses................................................         16
     10.5     Holidays.................................................................         16
     10.6     Notices..................................................................         16
     10.7     Survival.................................................................         17
     10.8     Governing Law............................................................         17
     10.9     Jurisdiction, Consent to Service of Process..............................         17
     10.10    Jury Trial Waiver........................................................         18
     10.11    Severability.............................................................         18
     10.12    Headings.................................................................         18
     10.13    Indemnity................................................................         19
     10.14    Counterparts.............................................................         19
     10.15    Integration..............................................................         19
</TABLE>

                                       ii
<PAGE>

Annex A                                Information Relating to U.S. Purchasers

Annex B                                Information Relating to QIB Purchasers

Annex C                                Information Relating to Regulation S
                                       Purchasers

                                    SCHEDULES

"Capitalization"                       (Schedule 5.1(d))

"Permitted Indebtedness"               (Section 8.1(f))

                                    EXHIBITS

EXHIBIT A                            Form of Note

EXHIBIT B                            Form of Warrant

EXHIBIT C                            Form of Waiver of Right of First Refusal

EXHIBIT D                            Form of Amended and Restated Registration
                                     Rights Agreement

                                       i<PAGE>
                                                                   Exhibit 10.21

                                                               EXECUTION VERSION

            SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

            This Second Amended and Restated Registration Rights Agreement (the
"AGREEMENT") is entered into as of March 3, 2005 by and among EpiCept
Corporation, a Delaware corporation (the "CORPORATION"); the persons and
entities listed on Schedule A hereto and certain other persons or entities that
become parties to this Agreement after the date hereof in accordance with
Section 21(a) hereof (the "SERIES A INVESTORS"); the persons and entities listed
on Schedule B hereto and certain other persons or entities that become parties
to this Agreement after the date hereof in accordance with Section 21(b) hereof
(the "SERIES B INVESTORS"); effective as of December 28, 2000, the persons and
entities listed on Schedule C hereto and certain other persons or entities that
become parties to this Agreement after December 28, 2000 in accordance with
Section 21(c) hereof (the "SERIES C INVESTORS"); and effective as of March 3,
2005, the persons and entities listed on Schedule D hereto (the "NEW WARRANT
HOLDERS," and, together with the Series C Investors, the Series B Investors and
the Series A Investors, the "INVESTORS"); and Rainer K. Liedtke ("LIEDTKE") and
his wife Hanne Liedtke (Liedtke and his wife being hereinafter referred to
collectively as the "FOUNDERS").

            WHEREAS, the Corporation, the Founders and certain of the Series A
Investors are parties to a Registration Rights Agreement, dated as of April 28,
1997 (the "OLD REGISTRATION RIGHTS AGREEMENT"); and

            WHEREAS, the Corporation, the Founders, the Series A Investors and
the Series B Investors entered into the Amended and Restated Registration Rights
Agreement as of January 28, 2000 (the "FIRST AMENDED REGISTRATION RIGHTS
AGREEMENT"); and

            WHEREAS, the Corporation, the Founders, the Series A Investors, the
Series B Investors and the Series C Investors entered into the First Amendment
to the Amended and Restated Registration Rights Agreement as of December 28,
2000 (the "FIRST AMENDMENT"); and

            WHEREAS, the Corporation wishes to issue to the New Warrant Holders
certain Stock Purchase Warrants (as defined below) pursuant to the Note Purchase
Agreement dated as of March 3, 2005 (the "PURCHASE AGREEMENT"); and

            WHEREAS, as a condition to entering into the Purchase Agreement, the
New Warrant Holders have required that this Agreement be amended and restated as
set forth herein, and such amendment has been approved by all requisite action
of the Corporation, the Series C Investors, the Series B Investors and the
Series A Investors.

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter set forth, the parties hereto agree to amend and restate
the First Amendment to read in its entirety as follows:

      1.    Definitions. As used in this Agreement, the following terms shall
have the following meanings:

<PAGE>

            (a)   The term "1934 Act" shall mean the Securities Exchange Act of
1934, as amended.

            (b)   The term "Common Stock" shall mean the Corporation's Common
Stock, par value $.000l per share.

            (c)   The term "Founders' Shares" means the three million nine
hundred ninety-nine thousand six hundred seven-eight (3,999,678) shares of
Common Stock held beneficially and of record by the Founders as of the date
hereof.

            (d)   The term "Holder" means any New Warrant Holder, any Series C
Holder, any Series B Holder and any Series A Holder.

            (e)   The term "New Registrable Securities" means the Common Stock
issuable upon exercise of the Stock Purchase Warrants.

            (f)   The term "New Warrant Holder" means any holder of New
Registrable Securities.

            (g)   The term "Preferred Stock" shall mean the Series A Preferred
Stock, the Series B Preferred Stock and the Series C Preferred Stock.

            (h)   The terms "register," "registered," and "registration" refer
to a registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of
effectiveness of such registration statement.

            (i)   The term "Registrable Securities" means the New Registrable
Securities, the Series C Registrable Securities, the Series B Registrable
Securities and the Series A Registrable Securities.

            (j)   The term "SEC" means the Securities and Exchange Commission.

            (k)   The term "Securities Act" means the Securities Act of 1933, as
amended.

            (l)   The term "Series A Holder" means any holder of Series A
Registrable Securities.

            (m)   The term "Series A Preferred Stock" shall mean the
Corporation's Series A Convertible Preferred Stock, par value $.0001 per share.

            (n) The term "Series A Registrable Securities" means (1) the Common
Stock issuable upon conversion of the Series A Preferred Stock, (2) any Common
Stock purchased by a Series A Investor (or its permitted transferees) pursuant
to Section 3.1 of the Amended and Restated Shareholder Rights Agreement (or
Common Stock issuable with respect to other securities so purchased), (3) up to
829,901 shares of Common Stock issuable upon exercise of the First Exchange
Option Agreement, dated as of December 31, 1997, by and between the Corporation
and tbg Technologie-Beteiligungs-Gesellschaft mbh der Deutschen Ausgleichsbank,
a German limited liability company, (4) up to an aggregate of 99,012 shares of
Common Stock

                                       2
<PAGE>

issued upon exercise of certain Stock Purchase Warrants issued on April 28,
1997 to TVM and Alpinvest, and (5) any Common Stock of the Corporation issued as
a dividend or other distribution with respect to, or in exchange for or in
replacement of, such Series A Preferred Stock or Common Stock.

            (o)   The term "Series B Holder" means any holder of Series B
Registrable Securities.

            (p)   The term "Series B Preferred Stock" shall mean the
Corporation's Series B Convertible Preferred Stock, par value $.0001 per share.

            (q)   The term "Series B Registrable Securities" means (1) the
Common Stock issuable upon conversion of the Series B Preferred Stock, (2) any
Common Stock purchased by a Series B Investor (or its permitted transferees)
pursuant to Section 3.1 of the Amended and Restated Shareholder Rights Agreement
(or Common Stock issuable with respect to other securities so purchased), (3) up
to an aggregate of 333,333 shares of Common Stock issued upon exercise of
certain Stock Purchase Warrants issued on August 2000 to TVM Techno Venture
Enterprises No. III Limited Partnership (now known as TVM III Limited
Partnership) ("TVM") and Alpinvest International B.V. ("Alpinvest") and (4) any
Common Stock of the Corporation issued as a dividend or other distribution with
respect to, or in exchange for or in replacement of, such Series B Preferred
Stock or Common Stock.

            (r)   The term "Series C Holder" means any holder of Series C
Registrable Securities.

            (s)   The term "Series C Preferred Stock" shall mean the
Corporation's Series C Convertible Preferred Stock, par value $.0001 per share.

            (t)   The term "Series C Registrable Securities" means (1) the
Common Stock issuable upon conversion of the Series C Preferred Stock, (2) any
Common Stock purchased by a Series C Investor (or its permitted transferees)
pursuant to Section 3.1 of the Amended and Restated Shareholder Rights Agreement
(the "Amended and Restated Shareholder Rights Agreement"), dated as of January
28, 2000, by and among the Corporation and the other parties thereto, as amended
and restated effective as of December 28, 2000 (or Common Stock issuable with
respect to other securities so purchased), (3) up to an aggregate of 750,000
shares of Common Stock issuable upon exercise of a certain Stock Purchase
Warrant issued on November 30, 2000 to Private Equity US Direct Finance (which
is now held by Private Equity Direct Finance) and (4) any Common Stock of the
Corporation issued as a dividend or other distribution with respect to, or in
exchange for or in replacement of, such Series C Preferred Stock or Common
Stock.

            (u)   The term "Stock Purchase Warrants" means the Warrants as
defined in the Purchase Agreement.

            In addition, for purposes of all calculations and notices under this
Agreement, and all other provisions of this Agreement where the context permits,
a holder of Preferred Stock shall be deemed the Holder of the Registrable
Securities issuable upon conversion thereof, and such Preferred Stock shall be
deemed outstanding Registrable Securities hereunder.

                                       3
<PAGE>

Notwithstanding the foregoing, nothing in this Agreement shall require the
Corporation actually to register any shares of Preferred Stock.

      2.    Request for Registration.

            (a)   Series C Requests. If at any time after the earlier to occur
of (i) April 28, 2002 and (ii) the date six months after the closing of the
Corporation's first public offering of securities, the Corporation shall receive
a written request (specifying that it is being made pursuant to this Section
2(a)) from one or more Series C Holders that hold, in the aggregate, at least
twenty-five percent (25%) of the then outstanding Series C Registrable
Securities, that the Corporation file a registration statement under the
Securities Act, or a similar document pursuant to any other statute then in
effect corresponding to the Securities Act, covering the registration of at
least the lesser of (x) at least twenty-five percent (25%) of the then
outstanding Series C Registrable Securities or (y) the Series C Registrable
Securities the expected price to the public of which equals or exceeds
$15,000,000, then the Corporation shall promptly notify all other Series C
Holders of such request and shall use its best efforts to cause all Registrable
Securities that Series C Holders have requested be registered to be registered
under the Securities Act.

            Notwithstanding the foregoing, (i) the Corporation shall not be
obligated to effect a registration pursuant to this Section 2(a) during the
period starting with the date sixty (60) days prior to the Corporation's
estimated date of filing of, and ending on a date six (6) months following the
effective date of, a registration statement pertaining to an underwritten public
offering of securities for the account of the Corporation, provided that the
Corporation is actively employing in good faith its best efforts to cause such
registration statement to become effective and that the Corporation's estimate
of the date of filing such registration statement is made in good faith; (ii)
the Corporation shall not be obligated to effect a registration pursuant to this
Section 2(a) within six (6) months after the effective date of a prior
registration under this Section 2(a); (iii) the Corporation shall not be
obligated to effect a registration pursuant to this Section 2(a) within three
(3) months after the effective date of a registration under Sections 2(b) or
(c); (iv) if the Corporation shall furnish to the Series C Holders a certificate
signed by the President of the Corporation stating that in the good faith
judgment of the Board of Directors it would be seriously detrimental to the
Corporation or its shareholders for a registration statement to be filed in the
near future, then the Corporation's obligation to use its best efforts to file a
registration statement shall be deferred for a period not to exceed three (3)
months; and (v) the Corporation may postpone a registration pursuant to this
Section 2(a) for such period of time as may be required to permit the use of
regular audited year-end financial statements with supplemental short period
figures for a period not exceeding six (6) months unless the Series C Holders
agree to bear the costs of any special audit.

            The Corporation shall not be obligated to effect more than two (2)
registrations on behalf of the Series C Holders pursuant to this Section 2(a).

            (b)   Series B Requests. If at any time after the earlier to occur
of (i) April 28, 2002 and (ii) the date six months after the closing of the
Corporation's first public offering of securities, the Corporation shall receive
a written request (specifying that it is being made pursuant to this Section
2(b)) from one or more Series B Holders that hold, in the aggregate, at least
twenty-five percent (25%) of the then outstanding Series B Registrable
Securities, that the

                                       4
<PAGE>

Corporation file a registration statement under the Securities Act, or a similar
document pursuant to any other statute then in effect corresponding to the
Securities Act, covering the registration of at least the lesser of (x) at least
twenty-five percent (25%) of the then outstanding Series B Registrable
Securities or (y) the Series B Registrable Securities the expected price to the
public of which equals or exceeds $10,000,000, then the Corporation shall
promptly notify all other Series B Holders of such request and shall use its
best efforts to cause all Registrable Securities that Series B Holders have
requested be registered to be registered under the Securities Act.

            Notwithstanding the foregoing, (i) the Corporation shall not be
obligated to effect a registration pursuant to this Section 2(b) during the
period starting with the date sixty (60) days prior to the Corporation's
estimated date of filing of, and ending on a date six (6) months following the
effective date of, a registration statement pertaining to an underwritten public
offering of securities for the account of the Corporation, provided that the
Corporation is actively employing in good faith its best efforts to cause such
registration statement to become effective and that the Corporation's estimate
of the date of filing such registration statement is made in good faith; (ii)
the Corporation shall not be obligated to effect a registration pursuant to this
Section 2(b) within six (6) months after the effective date of a prior
registration under this Section 2(b); (iii) the Corporation shall not be
obligated to effect a registration pursuant to this Section 2(b) within three
(3) months after the effective date of a registration under Sections 2(a) or
(c); (iv) if the Corporation shall furnish to the Series B Holders a certificate
signed by the President of the Corporation stating that in the good faith
judgment of the Board of Directors it would be seriously detrimental to the
Corporation or its shareholders for a registration statement to be filed in the
near future, then the Corporation's obligation to use its best efforts to file a
registration statement shall be deferred for a period not to exceed three (3)
months; and (v) the Corporation may postpone a registration pursuant to this
Section 2(b) for such period of time as may be required to permit the use of
regular audited year-end financial statements with supplemental short period
figures for a period not exceeding six (6) months unless the Series B Holders
agree to bear the costs of any special audit.

            The Corporation shall not be obligated to effect more than two (2)
registrations on behalf of the Series B Holders pursuant to this Section 2(b).

            (c)   Series A Requests. If at any time after the earlier to occur
of (i) April 28, 2002 and (ii) the date six months after the closing of the
Corporation's first public offering of securities, the Corporation shall receive
a written request (specifying that it is being made pursuant to this Section
2(c)) from one or more Series A Holders that hold, in the aggregate, at least
fifty percent (50%) of the then outstanding Series A Registrable Securities,
that the Corporation file a registration statement under the Securities Act, or
a similar document pursuant to any other statute then in effect corresponding to
the Securities Act, covering the registration of at least the lesser of (x) at
least twenty-five percent (25%) of the then outstanding Series A Registrable
Securities or (y) the Series A Registrable Securities the expected price to the
public of which equals or exceeds $10,000,000, then the Corporation shall
promptly notify all other Series A Holders of such request and shall use its
best efforts to cause all Registrable Securities that Series A Holders have
requested be registered to be registered under the Securities Act.

            Notwithstanding the foregoing, (i) the Corporation shall not be
obligated to effect a registration pursuant to this Section 2(c) during the
period starting with the date sixty (60) days

                                       5
<PAGE>

prior to the Corporation's estimated date of filing of, and ending on a date six
(6) months following the effective date of, a registration statement pertaining
to an underwritten public offering of securities for the account of the
Corporation, provided that the Corporation is actively employing in good faith
its best efforts to cause such registration statement to become effective and
that the Corporation's estimate of the date of filing such registration
statement is made in good faith; (ii) the Corporation shall not be obligated to
effect a registration pursuant to this Section 2(c) within six (6) months after
the effective date of a prior registration under this Section 2(c); (iii) the
Corporation shall not be obligated to effect a registration pursuant to this
Section 2(c) within three (3) months after the effective date of a registration
under Sections 2(a) or (b); (iv) if the Corporation shall furnish to the Series
A Holders a certificate signed by the President of the Corporation stating that
in the good faith judgment of the Board of Directors it would be seriously
detrimental to the Corporation or its shareholders for a registration statement
to be filed in the near future, then the Corporation's obligation to use its
best efforts to file a registration statement shall be deferred for a period not
to exceed three (3) months; and (v) the Corporation may postpone a registration
pursuant to this Section 2(c) for such period of time as may be required to
permit the use of regular audited year-end financial statements with
supplemental short period figures for a period not exceeding six (6) months
unless the Series A Holders agree to bear the costs of any special audit.

            The Corporation shall not be obligated to effect more than two (2)
registrations on behalf of the Series A Holders pursuant to this Section 2(c).

            (d)   New Warrant Holders' Requests. If at any time after the date
six months after the closing of the Corporation's first public offering of
securities, the Corporation shall receive a written request (specifying that it
is being made pursuant to this Section 2(d)) from one or more New Warrant
Holders that hold, in the aggregate, at least 50% of the then outstanding New
Registrable Securities, that the Corporation file a registration statement under
the Securities Act, or a similar document pursuant to any other statute then in
effect corresponding to the Securities Act, covering the registration of at
least the lesser of (x) at least 25% of the then outstanding New Registrable
Securities or (y) New Registrable Securities the expected price to the public of
which equals or exceeds $10,000,000, then the Corporation shall promptly notify
all other New Warrant Holders of such request and shall use its best efforts to
cause all New Registrable Securities that New Warrant Holders have requested be
registered to be registered under the Securities Act.

            Notwithstanding the foregoing, (i) the Corporation shall not be
obligated to effect a registration pursuant to this Section 2(d) during the
period starting with the date 60 days prior to the Corporation's estimated date
of filing of, and ending on a date six months following the effective date of, a
registration statement pertaining to an underwritten public offering of
securities for the account of the Corporation, provided that the Corporation is
actively employing in good faith its best efforts to cause such registration
statement to become effective and that the Corporation's estimate of the date of
filing such registration statement is made in good faith; (ii) the Corporation
shall not be obligated to effect a registration pursuant to this Section 2(d)
within six months after the effective date of a prior registration under this
Section 2(d); (iii) the Corporation shall not be obligated to effect a
registration pursuant to this Section 2(d) within three months after the
effective date of a registration under Sections 2(a), (b), or (c); (iv) if the
Corporation shall furnish to the New Warrant Holders a certificate signed by the
President of the

                                       6
<PAGE>

Corporation stating that in the good faith judgment of the Board of Directors it
would be seriously detrimental to the Corporation or its shareholders for a
registration statement to be filed in the near future, then the Corporation's
obligation to use its best efforts to file a registration statement shall be
deferred for a period not to exceed three months; and (v) the Corporation may
postpone a registration pursuant to this Section 2(d) for such period of time as
may be required to permit the use of regular audited year-end financial
statements with supplemental short-period figures for a period not exceeding six
months unless the New Warrant Holders agree to bear the costs of any special
audit.

            The Corporation shall not be obligated to effect more than two (2)
registrations on behalf of the New Warrant Holders pursuant to this Section
2(d).

      3.    Piggyback Rights.

            (a)   Corporation Registration. Subject to Section 8 of this
Agreement, if at any time the Corporation proposes to register any of its Common
Stock under the Securities Act in connection with the public offering of such
securities for its own account or for the accounts of shareholders other than
Holders, solely for cash on a form that would also permit the registration of
the Registrable Securities, the Corporation shall, each such time, promptly give
each Holder and the Founders written notice of such determination. Upon the
written request of any Holder or any Founder given within thirty (30) days after
giving of any such notice by the Corporation, the Corporation shall, subject to
the limitations set forth in Section 8(a), use its best efforts to cause to be
registered under the Securities Act all of the Registrable Securities that each
such Holder has requested be registered and all of the Founders' Shares that any
Founder has requested to be registered.

            (b)   Rights of New Warrant Holders. Subject to Section 8 of this
Agreement, if at any time the Corporation proposes to register any of its Common
Stock under the Securities Act in connection with the public offering of such
securities for the accounts of any of the Series A Holders, Series B Holders, or
Series C Holders (including pursuant to a request made pursuant to Section 3(a)
or 11 of this Agreement), the Corporation shall, each such time, promptly give
each New Warrant Holder written notice of such determination. Upon the written
request of any New Warrant Holder given with thirty (30) days after giving of
any such notice by the Corporation, the Corporation shall, subject to the
limitations set forth in Section 8(a), use its best efforts to cause to be
registered under the Securities Act all of the New Registrable Securities that
each such New Warrant Holder has requested be registered.

      4.    Obligations of the Corporation. Whenever required under Section 2,
3, or 11 of this Agreement to use its best efforts to effect the registration of
any Registrable Securities, the Corporation shall, as expeditiously as
reasonably possible:

            (a)   Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its best efforts to cause such
registration statement to become and remain effective until the distribution
thereof has been completed; provided, however, that in connection with any
proposed registration intended to permit an offering of any securities from time
to time (i.e., a so-called "shelf registration"), the Corporation shall in no
event be obligated to cause any such registration to remain effective for more
than one hundred eighty (180) days;

                                       7
<PAGE>

            (b)   Prepare and file with the SEC such amendments and supplements
to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement;

            (c)   Furnish to the Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order
to facilitate the disposition of such Registrable Securities owned by them;

            (d)   Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or "Blue Sky"
laws of such jurisdictions as shall be reasonably appropriate for the
distribution of the securities covered by the registration statement, provided
that the Corporation shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions, and further provided
that (anything in this Agreement to the contrary notwithstanding with respect to
the bearing of expenses) if any jurisdiction in which the securities shall be
qualified shall require that expenses incurred in connection with the
qualification of the securities in that jurisdiction be borne by selling
shareholders, then such expenses shall be payable by selling shareholders pro
rata, to the extent required by such jurisdiction;

            (e)   Provide a transfer agent for the Common Stock no later than
the effective date of the first registration of any Registrable Securities;

            (f)   Otherwise use its best efforts to comply with all applicable
rules and regulations of the SEC;

            (g)   Use its best efforts either (i) to cause all such Registrable
Securities to be listed on a national securities exchange (if such securities
are not already so listed) and on each additional national securities exchange
on which similar securities issued by the Corporation are then listed, if the
listing of such securities is then permitted under the rules of such exchange,
or (ii) to secure designation of all such Registrable Securities as a NASDAQ
"national market system security" within the meaning of Rule 11Aa2-1 of the SEC
or, failing that, to secure listing on NASDAQ for such Registrable Securities
and, without limiting the generality of the foregoing, to arrange for at least
two (2) market makers to register as such with respect to Registrable Securities
with the National Association of Securities Dealers;

            (h)   Enter into such customary agreements (including an
underwriting agreement in customary form) and take such other actions as the
selling Holders of Registrable Securities shall reasonably request in order to
expedite or facilitate the disposition of such Registrable Securities;

            (i)   Make available for inspection by any selling Holder of
Registrable Securities, by any underwriter participating in any disposition to
be effected pursuant to such registration statement and by any attorney,
accountant or other agent retained by any such selling Holder or any such
underwriter, all pertinent financial and other records and pertinent corporate

                                       8
<PAGE>

documents and properties of the Corporation, and cause all of the Corporation's
officers, directors and employees to supply all information reasonably requested
by any such selling Holder, underwriter, attorney, accountant or agent in
connection with such registration statement;

            (j)   Use every reasonable effort to prevent the issuance of any
stop order suspending the effectiveness of such registration statement or of any
order preventing or suspending the use of any preliminary prospectus and, if any
such order is issued, to obtain the lifting thereof at the earliest reasonable
time; and

            (k)   Make such representations and warranties to the selling
Holders of Registrable Securities and the underwriters as are customarily made
by issuers to selling stockholders and underwriters, as the case may be, in
primary underwritten public offerings.

      5.    Furnish Information. It shall be a condition precedent to the
obligations of the Corporation to take any action pursuant to this Agreement
with respect to the registration of any Holder's Registrable Securities and any
Founders' Shares that such Holder or Founder shall furnish to the Corporation
such information regarding themselves, the Registrable Securities or Founders'
Shares held by them, and the intended method of disposition of such securities,
as the Corporation shall reasonably request and as shall be required in
connection with the action to be taken by the Corporation.

      6.    Expenses of Demand Registration. All expenses incurred in connection
with any registration pursuant to Section 2 (excluding underwriters' discounts
and commissions), including, without limitation, all registration and
qualification fees, printers' and accounting fees, fees and disbursements of
counsel for the Corporation, and the reasonable fees and disbursements of one
special counsel for the selling Holders, shall be borne by the Corporation.

      7.    Corporation Registration Expenses. All expenses (excluding
underwriters' discounts and commissions) incurred in connection with any
registration pursuant to Section 3, including, without limitation, any
additional registration and qualification fees and any additional fees and
disbursements of counsel to the Corporation that result from the inclusion of
securities held by the selling Holders or Founders in such registration and the
reasonable fees and disbursements of one special counsel for the selling Holders
or Founders, shall be borne by the Corporation; provided, however, that if the
registration is exclusively for the account of selling shareholders and does not
include any securities to be sold for the account of the Corporation, the
selling Holders or Founders shall bear their proportionate share of the expenses
incurred in connection with such registration (provided all shareholders
registering shares thereunder bear their proportionate share of such expenses),
except expenses which the Corporation would have incurred whether or not the
securities held by the selling Holders or Founders were included in such
registration (including, without limitation, the expense of preparing normal
audited or unaudited financial statements).

      8.    Underwriting Requirements.

            (a)   In connection with any offering under Section 3 involving an
underwriting of shares being issued by the Corporation, the Corporation shall
not be required to include any Holder's Registrable Securities or any Founders'
Shares in such underwriting unless such Holder

                                       9
<PAGE>

or Founder accepts the terms of the underwriting as agreed upon between the
Corporation and the underwriters selected by it, and then only in such quantity
as will not, in the reasonable opinion of the underwriters, jeopardize the
success of the offering by the Corporation. If the total amount of securities
that all Holders and Founders request to be included in an underwritten offering
under Section 3 exceeds the amount of securities that the underwriters
reasonably believe compatible with the success of the offering, no Founders'
Shares and no other securities of any shareholder except Registrable Securities
of Holders shall be included in such offering unless all Registrable Securities
which the Holders have requested to be included are included, and the
Corporation shall only be required to include in the offering so many of the
Registrable Securities of the Holders as the underwriters reasonably believe
will not jeopardize the success of the offering (the Registrable Securities so
included to be apportioned pro rata among the selling Holders according to the
total amount of Registrable Securities owned by such selling Holders, or in such
other proportions as shall mutually be agreed to by such selling Holders).

            (b)   With respect to any underwriting of shares to be registered
under Section 2, or any underwriting of shares to be registered under Section
11, the selling Holders who initiate the request for registration shall have the
right to designate the managing underwriter or underwriters, subject to the
consent of the Corporation. In connection with any underwritings of shares to be
registered under Section 3, the Corporation shall have the right to designate
the managing underwriter or underwriters, subject to the consent of the Holders
of a majority of the Registrable Securities participating in the underwriting.
In any such case, such consent shall not be unreasonably withheld or delayed.

      9. Delay of Registration. No Holder or Founder shall have any right to
take any action to restrain, enjoin, or otherwise delay any registration as the
result of any controversy that might arise with respect to the interpretation or
implementation of this Agreement.

      10. Indemnification. In the event any Registrable Securities are included
in a registration statement under this Agreement:

            (a)   To the extent permitted by law, the Corporation will indemnify
and hold harmless each Holder requesting or joining in a registration, any
underwriter (as defined in the Securities Act) for it, and each person, if any,
who controls any such Holder or underwriter within the meaning of the Securities
Act, against any losses, claims, damages or liabilities, joint or several, to
which they may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based on any untrue or alleged untrue statement of any
material fact contained in such registration statement, including, without
limitation, any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading or
arise out of any violation by the Corporation of any rule or regulation
promulgated under the Securities Act applicable to the Corporation and relating
to action or inaction required of the Corporation in connection with any such
registration; and will reimburse each such Holder, such underwriter, or
controlling person for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability, or action, provided, however, that the indemnity agreement contained
in this Section 10(a) shall not apply to amounts paid in

                                       10
<PAGE>

settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Corporation (which consent
shall not be unreasonably withheld or delayed) nor shall the Corporation be
liable in any such case for any such loss, claim, damage, liability or action to
the extent that it arises out of or is based upon an untrue statement or alleged
untrue statement or omission or alleged omission made in connection with such
registration statement, preliminary prospectus, final prospectus, or amendments
or supplements thereto, in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
any such Holder, underwriter or controlling person.

            (b)   To the extent permitted by law, each Holder and each Founder
requesting or joining in a registration will indemnify and hold harmless the
Corporation, each of its directors, each of its officers who has signed the
registration statement, each person, if any, who controls the Corporation within
the meaning of the Securities Act, and any underwriter for the Corporation
(within the meaning of the Securities Act) against any losses, claims, damages
or liabilities to which the Corporation or any such director, officer,
controlling person or underwriter may become subject, under the Securities Act
or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereto) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in such registration
statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in such
registration statement, preliminary prospectus or final prospectus, or
amendments or supplements thereto, in reliance upon and in conformity with
written information furnished by such Holder or Founder expressly for use in
connection with such registration; and will reimburse the Corporation or any
such director, officer, controlling person or underwriter for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the indemnity agreement contained in this Section 10(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of such Holder or Founder
(which consent shall not be unreasonably withheld or delayed) and provided
further that no Holder or Founder shall have any liability under this Section
10(b) in excess of the net proceeds after tax actually received by such Holder
or Founder in the relevant public offering.

            (c)   Promptly after receipt by an indemnified party under this
Section 10 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against any indemnifying party
under this Section 10, notify the indemnifying party in writing of the
commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties. The failure to notify
an indemnifying party promptly of the commencement of any such action, if
prejudicial to his ability to defend such action, shall relieve such
indemnifying party of any liability to the indemnified party under this Section
10, but the omission so to notify the indemnifying party will not relieve him of
any liability that he may have to any indemnified party otherwise than under
this Section 10.

                                       11
<PAGE>

            (d)   If the indemnification provided for in this Section 10 is
required by its terms but is for any reason held to be unavailable to or
otherwise insufficient to hold harmless an indemnified party under Section 10(a)
or 10(b) in respect of any losses, claims, damages, liabilities or expenses
referred to herein, then each applicable indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of any losses,
claims, damages, liabilities or expenses referred to herein (i) in such
proportion as is appropriate to reflect the relative benefits received by the
Corporation, the Holders and the Founders from the offering of securities or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Corporation, the Holders and the Founders in connection with the statements
or omissions described in such Section 10(a) or 10(b) which resulted in such
losses, claims, damages, liabilities or expenses, as well as any other relevant
equitable considerations. The respective relative benefits received by the
Corporation, the Holders and the Founders shall be deemed to be in the same
proportion as the total price paid to the Corporation, the Holders and the
Founders, respectively, for the securities sold by them in the offering. The
relative fault of the Corporation, the Holders and the Founders shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Corporation, the Holders
or the Founders and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include,
subject to the limitations set forth in this Section 10, any legal or other fees
or expenses reasonably incurred by such party in connection with investigating
or defending any action or claim. The provisions set forth in Section 10(c) with
respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 10(d); provided, however, that no
additional notice shall be required with respect to any action for which notice
has been given under subsection (c) for purposes of indemnification. The
Corporation, the Holders and the Founders agree that it would not be just and
equitable if contribution pursuant to this Section 10 were determined solely by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to in this paragraph.
Notwithstanding the provisions of this Section 10(d), no Holder or Founder shall
be required to contribute an amount in excess of the net proceeds after tax
actually received by such Holder or Founder in the relevant public offering. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation.

      11.   Registrations on Form S-3.

            (a)   If (i) the Corporation shall receive a written request
(specifying that it is being made pursuant to this Section 11) from one or more
Holders that hold, in the aggregate, at least twenty-five percent (25%) of the
then outstanding Series A Registrable Securities, Series B Registrable
Securities or Series C Registrable Securities, as applicable, that the
Corporation file a registration statement on Form S-3 (or any successor form to
Form S-3 regardless of its designation) for a public offering of Registrable
Securities the reasonably anticipated aggregate price to the public of which
would equal or exceed Two Hundred Fifty Thousand Dollars ($250,000), and (ii)
the Corporation is a registrant entitled to use Form S-3 to register such

                                       12
<PAGE>

shares, then the Corporation shall use its best efforts to cause such shares to
be registered on Form S-3 (or any successor form to Form S-3).

            (b) All expenses (excluding underwriters' discounts and commissions)
incurred in connection with the first two (2) registrations requested pursuant
to Section 11(a), including, without limitation, all registration,
qualification, printing, and accounting fees, and fees and disbursements of one
special counsel to the selling Holders and counsel to the Corporation, shall be
borne by the Corporation.

            All such expenses for registrations pursuant to Section 11(a) after
the first two such registrations shall be borne by the Corporation, except that
the selling Holders shall pay all fees of their legal counsel, if any, in
connection therewith.

            (c)   The Holders' rights to registration under this Section 11 are
in addition to, and not in lieu of, their rights to registration under Sections
2 and 3 of this Agreement.

      12.   Limitation on Corporation Offerings. The Corporation shall not
register securities for sale for its own account (or, except as permitted by
Section 14, any securities other than Registrable Securities) in any
registration requested pursuant to Section 2 or 11 unless permitted to do so by
the written consent of the Holders of more than two-thirds (2/3) of the
Registrable Securities as to which registration has been requested. The
Corporation may not cause any other registration of securities for its own
account (other than a registration effected solely to implement an employee
benefit plan) which would become effective less than six (6) months after the
effective date of any registration requested pursuant to Section 2 or 11 to be
initiated after receiving such request.

      13.   Reports Under the 1934 Act. With a view to making available to the
Holders the benefits of Rule 144 promulgated under the Securities Act and any
other rule or regulation of the SEC that may at any time permit a Holder to sell
securities of the Corporation to the public without registration, the
Corporation agrees to use its best efforts to:

            (a)   make and keep public information available, as those terms are
understood and defined in Rule 144, at all times subsequent to ninety (90) days
after the effective date of the first registration statement covering an
underwritten public offering filed by the Corporation;

            (b)   file with the SEC in a timely manner all reports and other
documents required of the Corporation under the Securities Act and the 1934 Act;
and

            (c)   furnish to any Holder forthwith upon request a written
statement by the Corporation that it has complied with the reporting
requirements of Rule 144 (at any time after ninety (90) days after the effective
date of said first registration statement filed by the Corporation), and of the
Securities Act and the 1934 Act (at any time after it has become subject to such
reporting requirements), a copy of the most recent annual or quarterly report of
the Corporation, and such other reports and documents so filed by the
Corporation as may be reasonably requested in availing any such holder to take
advantage of any rule or regulation of the SEC permitting the selling of any
such securities without registration.

                                       13
<PAGE>

      14.   Limitations in Connection with Future Grants of Registration Rights.
Without the prior written consent of the Holders of at least two-thirds in
voting power of then outstanding Series B Registrable Securities and the then
outstanding Series A Registrable Securities, and the prior written consent of
the Holders of at least sixty percent (60%) in voting power of the then
outstanding Series C Registrable Securities, the Corporation shall not grant
rights to cause the Corporation to register any of its securities to any person
or entity.

      15.   Transfer of Registration Rights. The registration rights of any
Holder (and of any permitted transferee of any Holder or its permitted
transferees) under this Agreement with respect to any Registrable Securities may
be transferred to any Affiliate of such Holder or such permitted transferee, or
to any transferee who acquires (otherwise than in a registered public offering)
at least five percent (5%) of the Registrable Securities, held by such Holder as
of the date hereof; provided, however, that the Corporation is given written
notice by the Holder at the time of such transfer stating the name and address
of the transferee and identifying the securities with respect to which the
rights under this Agreement are being assigned. For such purpose, an "Affiliate"
of any Holder (or any such transferee) means any general or limited partner of
any Holder (or transferee) that is a partnership, or any person or entity that,
directly or indirectly, through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Holder or transferee.

      16.   Mergers, Etc. The Corporation shall not, directly or indirectly,
enter into any merger, consolidation or reorganization in which the Corporation
shall not be the surviving corporation unless the proposed surviving corporation
shall, prior to such merger, consolidation or reorganization, agree in writing
to assume the obligations of the Corporation under this Agreement, and for that
purpose references hereunder to "Registrable Securities" shall be deemed to be
references to the securities which the Holders would be entitled to receive in
exchange for Registrable Securities under any such merger, consolidation or
reorganization; provided, however, that the provisions of this Agreement shall
not apply in the event of any merger, consolidation or reorganization in which
the Corporation is not the surviving corporation if the Holders of Registrable
Securities are entitled to receive in exchange therefor (i) cash, or (ii)
securities of the acquiring corporation which may be immediately sold to the
public without registration under the Securities Act.

      17.   Stand-Off Agreement. Each Holder and each Founder, if requested by
the Corporation and the managing underwriter of an offering by the Corporation
of Common Stock or other securities of the Corporation pursuant to a
registration statement under the Securities Act, shall agree not to sell
publicly or otherwise transfer or dispose of any Registrable Securities,
Founders' Shares or other securities of the Corporation held by such Holder or
Founder for a specified period of time (not to exceed 180 days) following the
effective date of such registration statement; provided, that:

            (a)   such agreement shall apply only to the first registration
statement covering Common Stock or other securities to be sold on the
Corporation's behalf to the public in an underwritten offering; and

            (b)   all persons who hold shares of Common Stock, or securities
convertible into or exchangeable or exercisable for shares of Common Stock,
which in the aggregate

                                       14
<PAGE>

represent one percent (1%) or more of the shares of Common Stock then
outstanding, and all officers and directors of the Corporation, enter into
agreements in the same terms.

            The covenant contained in this Section 17 is in addition to any
market stand-off covenant contained in any other agreement between the
Corporation and any Holder or Founder.

      18.   Notices. All notices, requests, consents and other communications
hereunder ("NOTICES") to any party shall be contained in a written instrument
addressed to such party at the address set forth below or such other address as
may hereafter be designated in writing by the addressee to the addressor listing
all parties and shall be deemed given (a) when delivered in person or duly sent
by fax showing confirmation of receipt, (b) three days after being duly sent by
first class mail postage prepaid (other than in the case of Notices to or from
any non-U.S. resident, which Notices must be sent in the manner specified in
clause (a) or (c)), or (c) two days after being duly sent by DHL, Federal
Express or other recognized express international courier service:

                  (a)   if to the Corporation, to:

                                      EpiCept Corporation
                                      270 Sylvan Avenue
                                      Englewood Cliffs, NJ 07632
                                      Attention: Chief Executive Officer
                                      Fax: (201) 894-8980

                                      with a copy to:

                                      Weil, Gotshal & Manges LLP
                                      767 Fifth Avenue
                                      New York, NY 10153
                                      Attn: Alexander D. Lynch, Esq.
                                      Fax: (212) 310-8007

            (b)   if to the Series C Investors, to their respective addresses
set forth on the signature pages of the Series C Convertible Preferred Stock
Purchase Agreement, or, in the case of persons or entities becoming parties
hereto in accordance with Section 21(c), to their respective addresses set forth
on the signature page hereto with a copy to:

                                      McGrigors
                                      5 Old Bailey
                                      London EC4M 7BA
                                      Attn: Mr. Patrick Martin
                                      Fax: 011-44-207-054-2501

            (c)   if to the Series B Investors, to their respective addresses
set forth on the signature pages of the Series B Convertible Preferred Stock
Purchase Agreement dated as of January 28, 1999 (the "Series B Stock Purchase
Agreement"), or, in the case of persons or

                                       15
<PAGE>

entities becoming parties hereto in accordance with Section 21(b), to their
respective addresses set forth on the signature page hereto, with a copy to:

                                      Foley, Hoag & Eliot LLP
                                      One Post Office Square
                                      Boston, MA 02109
                                      Attn: David R. Pierson, Esq.
                                      Fax: (617) 832-7000

            (d)   if to the Series A Investors, to their respective addresses
set forth on the signature pages of the Series A Convertible Preferred Stock
Purchase Agreement dated as of April 28, 1997, or, in the case of persons or
entities becoming parties hereto in accordance with Section 21(a), to their
respective addresses set forth on the signature page hereto, with a copy to:

                                      Foley, Hoag & Eliot LLP
                                      One Post Office Square
                                      Boston, MA 02109
                                      Attn: David R. Pierson, Esq.
                                      Fax: (617) 832-7000

            (e)   if to the New Warrant Holders, to their respective addresses
set forth on the signature pages of the Purchase Agreement, or, in the case of
persons or entities becoming parties hereto in accordance with Section 21(a), to
their respective addresses set forth on the signature page hereto;

            (f)   if to the Founders, to their addresses set forth on the
signature page to the Amended and Restated Registration Rights Agreement dated
as of January 28, 2000.

      19.   Miscellaneous.

            (a)   This Agreement states the entire agreement of the parties
concerning the subject matter hereof, and supersedes all prior agreements,
written or oral, between or among them concerning such subject matter.

            (b)   This Agreement may be amended, and compliance with any
provision of this Agreement may be omitted or waived, only by the written
agreement of the Corporation, the Holders of at least sixty percent (60%) in
voting power of the then outstanding Series C Registrable Securities, the
Holders of at least two-thirds in voting power of the then outstanding Series B
Registrable Securities, and the Holders of at least two-thirds in voting power
of the then outstanding Series A Registrable Securities and the holders of a
majority of the New Registrable Securities.

            (c)   This Agreement shall be governed by, and construed and
enforced in accordance with, the substantive laws of the State of Delaware,
without regard to its principles of conflicts of laws.

            (d)   This Agreement may be executed in any number of counterparts,
each such counterpart shall be deemed to be an original instrument, and all such
counterparts together

                                       16
<PAGE>

shall constitute but one agreement. Any such counterpart may contain one or more
signature pages.

      20.   Effect on First Amendment. This Agreement shall supersede the First
Amendment, which shall be of no further force or effect.

      21.   Accession.

            (a)   tbg-Technologie-Beteiligungsgesellschaft mbH der Deutschen
Ausgleichsbank, if it becomes a holder of Series A Preferred Stock or Series A
Registrable Securities, shall automatically become a party to this Agreement by
executing and delivering to the Corporation a counterpart signature page to this
Agreement in the form of Exhibit A hereto, and shall thereupon be deemed a
"Series A Investor" for all purposes of this Agreement.

            (b)   Any Additional Investor as defined in the Series B Stock
Purchase Agreement and IKB Beteiligungsgesellschaft mbH, if it becomes a holder
of Series B Preferred Stock, shall automatically become a party to this
Agreement by executing and delivering to the Corporation a counterpart signature
page to this Agreement in the form of Exhibit B hereto, and shall thereupon be
deemed a "Series B Investor" for all purposes of this Agreement.

            (c)   Any Additional Investor as defined in the Stock Purchase
Agreement, if it becomes a holder of Series C Preferred Stock, shall
automatically become a party to this Agreement by executing and delivering to
the Corporation a counterpart signature page to this Agreement in the form of
Exhibit C hereto, and shall thereupon be deemed a "Series C Investor" for all
purposes of this Agreement.

                  [remainder of page intentionally left blank]

                                       17
<PAGE>

            IN WITNESS WHEREOF, the Investors, the Founders and the Corporation
have executed this Second Amended and Restated Registration Rights Agreement as
of the date first written above.

                                      EPICEPT CORPORATION

                                      By:
                                         ______________________________________
                                         Name:

                                         Title:

  SIGNATURE PAGE TO SECOND AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series A Investor Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

                      EXECUTED this 3rd day of March, 2005.

Address:                              TVM III LIMITED PARTNERSHIP

                                      By: TVM Techno Venture Management No.
                                      III Limited Partnership,
                                      its General Partner

                                      By: TVM Management Corporation, its
                                      General Partner

                                      By:
                                         ____________________________________
                                      Name:
                                      Title:
<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                            ALPINVEST PARTNERS N.V.

                                                    By:____________________
                                                    Name:
                                                    Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series A Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                   ______________________
                                                   Name: Gerhard Waldheim

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series A Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                   ___________________
                                                   Name: Hans Dichand

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series A Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                           PHARMED HOLDING GMBH

                                                   By:_____________________
                                                       Dr.Rainer K. Liedtke
                                                       President

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                    TVM III LIMITED PARTNERSHIP

                                            By: TVM Techno Venture Management
                                            No. III Limited Partnership, its
                                            General Partner

                                            By: TVM Management Corporation, its
                                            General Partner

                                            By:_________________________________
                                            Name:
                                            Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                            ALPINVEST PARTNERS N.V.

                                                    By:____________________
                                                    Name:
                                                    Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                    ________________________
                                                    Name: Friedrich Dieckell

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                    ____________________
                                                    Name: Claus Dieckell

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                    ______________________
                                                    Name: Michael Dieckell

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                    ______________________
                                                    Name: Hellmut Kirchner

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                            KB LUX VENTURE CAPITAL FUND

                                                    By:________________________
                                                    Name:
                                                    Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                            IKB PRIVATE EQUITY GMBH

                                                    By:____________________
                                                    Name:
                                                    Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                    ____________________
                                                    Name: Erik Hornnaess

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                    ___________________
                                                    Name: Vivian W. Day

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series B Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                   _____________________________
                                                   Name: Dr. Ernst-Gunter Afting

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                           TVM IV GMBH & CO. KG

                                                   By:_________________
                                                   Name:
                                                   Title:

                                                   By:_________________
                                                   Name:
                                                   Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                           KB LUX VENTURE CAPITAL FUND

                                                   By:________________________
                                                   Name:
                                                   Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                           ALPINVEST PARTNERS N.V.

                                                   By:____________________
                                                   Name:
                                                   Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                           GZ PAUL PARTNERS B.V.

                                                   By:__________________
                                                   Name:
                                                   Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                   __________________
                                                   Name: Hans Dichand

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:
                                                   _______________________
                                                   Name: Gerhard Waldheim

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                                           PRIVATE EQUITY DIRECT FINANCE

                                                   By:__________________________
                                                   Name:
                                                   Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        Series C Investor Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.

Address:                             THE MERLIN BIOSCIENCES FUND
                                     L.P.

                                     By: Merlin General Partner II Limited, its
                                     General Partner

                                     By:________________________________________
                                     Name:
                                     Title:

Address:                             THE MERLIN BIOSCIENCES FUND
                                     GBR

                                     By: Merlin General Partner II Limited, its
                                     General Partner

                                     By:________________________________________
                                     Name:
                                     Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                             Founder Signature Page

      By executing this page in the space provided, the undersigned hereby
agrees (i) that it is a "Founder" as defined in the Second Amended and Restated
Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

      EXECUTED this 3rd day of March, 2005.
                                                   _________________
                                                   Rainer K. Liedtke

                                                   _________________
                                                   Hanne Liedtke
<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        New Warrant Holder Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

                      EXECUTED this 3rd day of March, 2005.

Address:                     THE MERLIN BIOSCIENCES FUND L.P.

                             By: Merlin General Partner II Limited, its General
                             Partner

                             By:_____________________________
                             Name:
                             Title:

Address:                     THE MERLIN BIOSCIENCES FUND
                             GBR

                             By: Merlin General Partner II Limited, its General
                             Partner

                             By:_______________________________
                             Name:
                             Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        New Warrant Holder Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

                      EXECUTED this 3rd day of March, 2005.

Address:                              PRIVATE EQUITY DIRECT FINANCE

                                      By:__________________________
                                      Name:
                                      Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        New Warrant Holder Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

                      EXECUTED this 3rd day of March, 2005.

Address:                               TVM IV GMBH & CO. KG

                                       By:____________________________
                                       Name:
                                       Title:

                                       By:____________________________
                                       Name:
                                       Title:

<PAGE>

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                        New Warrant Holder Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is an "Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March 3, 2005, among EpiCept
Corporation and the "Investors" and "Founders" as defined therein, (ii) that it
is a party to the Second Amended and Restated Registration Rights Agreement for
all purposes and (iii) that it is bound by all terms and conditions of the
Second Amended and Restated Registration Rights Agreement.

                      EXECUTED this 3rd day of March, 2005.

Address:                                  SANDERS OPPORTUNITY FUND, L.P.
                                          By: SOF Management, LLC

c/o Sanders Morris Harris
600 Travis Street                         By:_______________________
3100 Chase Tower                          Name:
Houston, TX 77002                         Title:

Address:                                  SANDERS OPPORTUNITY FUND
                                          (INSTITUTIONAL), L.P.
                                          By: SOF Management, LLC

c/o Sanders Morris Harris
600 Travis Street                         By:________________________
3100 Chase Tower                          Name:
Houston, TX 77002                         Title:

<PAGE>

                                                                       EXHIBIT A

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                   Additional Series A Investor Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is a "Series A Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March [ ], 2005, among
EpiCept Corporation and the "Investors" and "Founders" as defined therein, (ii)
that it is a party to the Second Amended and Restated Registration Rights
Agreement for all purposes and (iii) that it is bound by all terms and
conditions of the Second Amended and Restated Registration Rights Agreement.

                   EXECUTED this __ day of ___________, 200_.

                              ________________________________________________
                              (print name)

                              By:_____________________________________________

                              Title:__________________________________________

                              Address:________________________________________
                              ________________________________________________
                              ________________________________________________

<PAGE>

                                                                       EXHIBIT B

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                   Additional Series B Investor Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is a "Series B Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March [ ], 2005, among
EpiCept Corporation and the "Investors" and "Founders" as defined therein, (ii)
that it is a party to the Second Amended and Restated Registration Rights
Agreement for all purposes and (iii) that it is bound by all terms and
conditions of the Second Amended and Restated Registration Rights Agreement.

                   EXECUTED this __ day of ___________, 200_.

                              _______________________________________________
                              (print name)

                              By:____________________________________________

                              Title:_________________________________________

                              Address:_______________________________________
                              _______________________________________________
                              ______________________________________________

<PAGE>

                                                                       EXHIBIT C

                               EPICEPT CORPORATION

            Second Amended and Restated Registration Rights Agreement

                   Additional Series C Investor Signature Page

            By executing this page in the space provided, the undersigned hereby
agrees (i) that it is a "Series C Investor" as defined in the Second Amended and
Restated Registration Rights Agreement, dated as of March [ ], 2005, among
EpiCept Corporation and the "Investors" and "Founders" as defined therein, (ii)
that it is a party to the Second Amended and Restated Registration Rights
Agreement for all purposes and (iii) that it is bound by all terms and
conditions of the Second Amended and Restated Registration Rights Agreement.

                   EXECUTED this __ day of ___________, 200_.

                              _______________________________________________
                              (print name)

                              By:____________________________________________

                              Title:_________________________________________

                              Address:_______________________________________
                              _______________________________________________
                              ______________________________________________

<PAGE>

                                   Schedule A

                               Series A Investors

TVM III Limited Partnership
Alpinvest International B.V.
Gerhard Waldheim
Hans Dichand
Pharmed Dr. Liedtke GmbH

<PAGE>

                                   Schedule B

                               Series B Investors

TVM III Limited Partnership
Alpinvest International B.V.
Friedrich Dieckell
Claus Dieckell
Michael Dieckell
Hellmut Kirchner
KB Lux Venture Capital Fund
IKB Beteiligungsgesellschaft mbH
EpiCept GmbH
Erik Hornnaess
Vivian W. Day
Dr. Ernst-Gunter Afting

<PAGE>

                                   Schedule C

                              Schedule C Investors

TVM IV GmbH & Co. KG
KB Lux Venture Capital Fund
Alpinvest International B. V.
Gold Zack
Hans Dichand
Dr. Gerhard Waldheim
Private Equity Direct Finance
John Lucas
Merlin General Partner II Limited (in its capacities as general partner of The
                  Merlin Biosciences Fund L.P. and as managing partner of The
                  Merlin Biosciences Fund GbR)

<PAGE>

                                   Schedule D

                               New Warrant Holders

Private Equity Direct Finance
TVM IV GMBH & CO. KG
[Sanders Investors]
[Merlin Investors]

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