Document:

Exhibit 4.1

THE WARRANTS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 OR THE SECURITIES OR BLUE SKY LAWS OF ANY STATE. SUCH
WARRANTS MAY NOT BE SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT
SUCH REGISTRATION, EXCEPT UPON DELIVERY TO THE COMPANY OF SUCH EVIDENCE AS MAY
BE SATISFACTORY TO THE COMPANY AND ITS COUNSEL TO THE EFFECT THAT ANY SUCH
TRANSFER SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OF 1933 OR APPLICABLE
STATE SECURITIES OR BLUE SKY LAWS OR ANY RULE OR REGULATION PROMULGATED
THEREUNDER.

                               NOVADEL PHARMA INC.

           Class C Warrant for the Purchase of Shares of Common Stock

No. C-__                                                      ___________ Shares

            FOR VALUE RECEIVED, NOVADEL PHARMA INC., a Delaware corporation (the
"Company"), hereby certifies that [ ] (the "Holder"), its designee or its
permitted assigns is entitled to purchase from the Company, at any time or from
time to time commencing on __________, _____, and prior to 5:00 P.M., New York
City time, on ________, ____, up to [ ] ([ ]) fully paid and non-assessable
shares of common stock (subject to adjustment), $.001 par value per share, of
the Company for $1.40 per share (subject to adjustment as provided herein) and
an aggregate purchase price of $[ ]. (Hereinafter, (i) said common stock, $.001
par value per share, of the Company, is referred to as the "Common Stock," (ii)
the shares of the Common Stock purchasable hereunder or under any other Warrant
(as hereinafter defined) are referred to as the "Warrant Shares," (iii) the
aggregate purchase price payable for the Warrant Shares purchasable hereunder is
referred to as the "Aggregate Warrant Price," (iv) the price payable for each of
the Warrant Shares is referred to as the "Per Share Warrant Price," (v) this
detachable Warrant, all similar Warrants issued on the date hereof and all
warrants hereafter issued in exchange or substitution for this Warrant or such
similar Warrants are referred to as the "Warrants," and (vi) the holder of this
Warrant is referred to as the "Holder" and the holder of this Warrant and all
other Warrants and Warrant Shares are referred to as the "Holders" and Holders
of more than 50% of the outstanding Warrants and Warrant Shares are referred to
as the "Majority of the Holders"). The Aggregate Warrant Price is not subject to
adjustment. By acceptance of this Warrant, the Holder agrees to comply with all
applicable provisions of this Warrant and the Subscription Agreement by and
between the Company and the Subscriber named therein, dated as of December 30,
2003 (the "Subscription Agreement") to the same extent as if it were a party
thereto.

            1. Exercise of Warrant. (a) Subject to Section 7, this Warrant may
be exercised in whole at any time, or in part from time to time, commencing on
_______, ____, and prior to 5:00 P.M., Eastern Standard Time, on ________, ____,
by the Holder by the surrender of this Warrant (with the subscription form at
the end hereof duly executed) at the address set forth in Section 10(a) hereof,
together with proper payment of the Aggregate Warrant Price, or the
proportionate part thereof if this Warrant is exercised in part, with payment
for the Warrant Shares made by certified or official bank check payable to the
order of the Company;

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            (b) If this Warrant is exercised in part in accordance with Section
1(a), it must be exercised for a number of whole shares of Common Stock and the
Holder is entitled to receive a new Warrant in the name of the Holder, or its
nominee, covering the Warrant Shares that have not been exercised and setting
forth the proportionate part of the Aggregate Warrant Price applicable to such
Warrant Shares.

            (c) Upon surrender of this Warrant in connection with an exercise of
this Warrant in accordance with Section 1(a), the Company shall (i) issue a
certificate or certificates in the name of the Holder, or its nominee, for the
largest number of whole shares of Common Stock to which the Holder shall be
entitled and, if this Warrant is exercised in whole, in lieu of any fractional
share of the Common Stock to which the Holder shall be entitled, pay to the
Holder cash in an amount equal to the fair value of such fractional share
(determined in such reasonable manner as the Board of Directors of the Company
(the "Board of Directors") shall determine), and (ii) deliver the other
securities and properties receivable upon the exercise of this Warrant, or the
proportionate part thereof if this Warrant is exercised in part, pursuant to the
provisions of this Warrant.

            2. Reservation of Warrant Shares; Listing. Subject to the approval
of the Charter Amendment (as defined in the Subscription Agreement), the Company
agrees that, prior to the expiration of this Warrant, the Company shall at all
times (i) have authorized and in reserve, and shall keep available, solely for
issuance and delivery upon the exercise of this Warrant, the shares of Common
Stock and other securities and properties as from time to time shall be
receivable upon the exercise of this Warrant, free and clear of all restrictions
on sale or transfer, other than under Federal or state securities laws, and free
and clear of all preemptive rights and rights of first refusal and (ii) use its
best efforts to keep the Warrant Shares authorized for listing on the OTC(R)
Bulletin Board (the "OTCBB") or any national securities exchange on which the
Company's Common Stock is traded.

            3. Protection Against Dilution. (a) If, at any time or from time to
time after the date of this Warrant, the Company shall (i) pay a dividend or
make a distribution to any holder of its capital stock in shares of Common
Stock, (ii) subdivide its outstanding shares of Common Stock into a greater
number of shares, (iii) combine its outstanding shares of Common Stock into a
smaller number of shares or (iv) issue by reclassification of its Common Stock
any shares of capital stock of the Company, then, in each case, the Per Share
Warrant Price shall be adjusted by multiplying the Per Share Warrant Price then
in effect by a fraction, the numerator of which shall be the Aggregate Warrant
Price and the denominator of which shall be the number of shares of Common Stock
or other capital stock of the Company that the Holder would have owned
immediately following such action had such Warrant been exercised immediately
prior thereto; provided, that the terms "dividend" and "distribution" in this
Warrant shall refer specifically to dividends and distributions, if any, issued
by the Company to all of its shareholders or an entire class of its shareholders
pursuant to a written resolution of the Board of Directors and shall not include
any sale or other transfer of Common Stock to a shareholder in exchange for
value; provided, further, that clause (i) above shall not apply to shares issued
to certain shareholders of the Company in connection with the reset right of
such shareholders extended to them in connection with the private placement
effected by the Company in April and May 2003. An adjustment made pursuant to
this Section 3(a) shall become effective immediately after the record date in
the case of a dividend or distribution, and shall become effective immediately
after the effective date in the case of a subdivision, combination or
reclassification.

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            (b) In case of any capital reorganization or reclassification, or
any consolidation or merger to which the Company is a party other than a merger
or consolidation in which the Company is the continuing corporation, or in case
of any sale or conveyance to another entity of all or substantially all of the
property and assets of the Company, or in the case of any statutory exchange of
securities with another corporation (including any exchange effected in
connection with a merger of a third corporation into the Company), the Holder of
this Warrant shall have the right thereafter to receive upon the exercise of
this Warrant the kind and amount of securities, cash or other property which the
Holder would have owned or have been entitled to receive immediately after such
reorganization, reclassification, consolidation, merger, statutory exchange,
sale or conveyance had this Warrant been exercised immediately prior to the
effective date of such reorganization, reclassification, consolidation, merger,
statutory exchange, sale or conveyance and in any such case, if necessary,
appropriate adjustment shall be made in the application of the provisions set
forth in Section 3 with respect to the rights and interests thereafter of the
Holder of this Warrant to the end that the provisions set forth in this Section
3 shall thereafter correspondingly be made applicable, as nearly as may
reasonably be, in relation to any shares of stock or other securities or
property thereafter deliverable upon the exercise of this Warrant. The above
provisions of this Section 3(b) shall similarly apply to successive
reorganizations, reclassifications, consolidations, mergers, statutory
exchanges, sales or conveyances. The Company shall use reasonable efforts to
cause the issuer of any shares of stock or other securities or property
thereafter deliverable on the exercise of this Warrant to be responsible for all
of the agreements and obligations of the Company hereunder. Notice of any such
reorganization, reclassification, consolidation, merger, statutory exchange,
sale or conveyance and of said provisions so proposed to be made, shall be
mailed to the Holders of the Warrants not less than 30 days prior to such event.
A sale of all or substantially all of the property and/or assets of the Company
for consideration consisting primarily of securities shall be deemed a
consolidation or merger for the foregoing purposes.

            (c) Notwithstanding anything in this Warrant to the contrary, no
adjustment in the Per Share Warrant Price shall be required unless such
adjustment would require an increase or decrease of at least $0.05 per Warrant
Share; provided, however, that any adjustments which by reason of this Section
3(c) are not required to be made shall be carried forward and taken into account
in any subsequent adjustment; provided, further, however, that any and all
adjustments required in accordance with the provisions of Section 3 (other than
this Section 3(c)) shall be made not later than such time as may be required in
order to preserve the tax-free nature of a distribution to the Holder of this
Warrant or the Warrant Shares. All calculations under Section 3 shall be made to
the nearest cent or to the nearest 1/100th of a share, as the case may be.
Anything in Section 3 to the contrary notwithstanding, the Company shall be
entitled to make such reductions in the Per Share Warrant Price, in addition to
those required by Section 3, as it in its discretion shall deem to be advisable
in order that any stock dividend, subdivision of shares or distribution of
rights to purchase stock or securities convertible or exchangeable for stock
hereafter made by the Company to its stockholders shall not be taxable.

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<PAGE>

            (d) Whenever the Per Share Warrant Price is adjusted as provided in
this Section 3 and upon any modification of the rights of a Holder of Warrants
in accordance with this Section 3, the Company shall promptly prepare a brief
statement of the facts requiring such adjustment or modification and the manner
of computing the same and cause copies of such certificate to be mailed to the
Holders of the Warrants.

            (e) If the Board of Directors shall declare any dividend or other
distribution with respect to the Common Stock other than a cash distribution out
of earned surplus, the Company shall mail notice thereof to the Holders of the
Warrants not less than 10 days prior to the record date fixed for determining
stockholders entitled to participate in such dividend or other distribution.

            (f) If, as a result of any adjustment made pursuant to Section 3,
the Holder of any Warrant(s) thereafter surrendered for exercise shall become
entitled to receive shares of two or more classes of capital stock or shares of
Common Stock and other capital stock of the Company, the Board of Directors
(whose determination shall be conclusive and shall be described in a written
notice to the Holder of any Warrant promptly after such adjustment) shall
determine the allocation of the adjusted Per Share Warrant Price between or
among shares or such classes of capital stock or shares of Common Stock and
other capital stock.

            (g) Upon the expiration of any rights, options, warrants or
conversion privileges with respect to the issuance of which an adjustment to the
Per Share Warrant Price had been made, if such shall not have been exercised,
the number of Warrant Shares purchasable upon exercise of this Warrant, to the
extent this Warrant has not then been exercised, shall, upon such expiration, be
readjusted and shall thereafter be such as they would have been had they been
originally adjusted (or had the original adjustment not been required, as the
case may be) taking into account (A) any shares of Common Stock, if any,
actually issued or sold upon the exercise of such rights, options, warrants or
conversion privileges and (B) the fact that such shares of Common Stock, if any,
were issued or sold for the consideration actually received by the Company upon
such exercise plus the consideration, if any, actually received by the Company
for the issuance, sale or grant of all such rights, options, warrants or
conversion privileges whether or not exercised; provided, however, that no such
readjustment shall have the effect of decreasing the number of Warrant Shares
purchasable upon exercise of this Warrant by an amount in excess of the amount
of the adjustment initially made in respect of the issuance, sale or grant of
such rights, options, warrants or conversion privileges.

            (h) In case any event shall occur as to which the other provisions
of this Section 3 are not strictly applicable but as to which the failure to
make any adjustment would not fairly protect the purchase rights represented by
this Warrant in accordance with the essential intent and principles hereof then,
in each such case, the Board of Directors shall in good faith determine the
adjustment, if any, on a basis consistent with the essential intent and
principles established herein, necessary to preserve the purchase rights
represented by the Warrants. Upon such determination, the Company will promptly
mail a copy thereof to the Holder of this Warrant and shall make the adjustments
described therein.

            (i) Except as may be set forth in this Section 3, no adjustment in
the Per Share Warrant Price or the number and kind of shares of Common Stock
receivable upon exercise of this Warrant shall be required in the case of the
issuance by the Company of any shares of Common Stock, including, without
limitation, pursuant to the exercise of any stock options or warrants.

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<PAGE>

            4. Fully Paid Stock; Taxes. The shares of Common Stock represented
by each and every certificate for Warrant Shares delivered upon the exercise of
this Warrant shall at the time of such delivery, be duly authorized, validly
issued and outstanding, fully paid and nonassessable, and not subject to
preemptive rights or rights of first refusal, and the Company will take all such
actions as may be necessary to assure that the par value, if any, per Warrant
Share is at all times equal to or less than the then Per Share Warrant Price.
The Company shall pay all documentary, stamp or similar taxes and other similar
governmental charges that may be imposed with respect to the issuance or
delivery of any Warrant Shares (other than income taxes); provided, however,
that if any Warrant Shares are to be delivered in a name other than the name of
the Holder, no such delivery shall be made unless the person requesting the same
has paid to the Company the amount of transfer taxes or charges incident
thereto, if any.

            5. Registration Under Securities Act of 1933. (a) The Holder shall
have the right to participate in the registration rights granted to Holders of
Registrable Securities (as defined in the Subscription Agreement) with respect
to the Warrant Shares.

            (b) Until all of the Warrant Shares have been sold under a
registration statement declared effective by the Securities and Exchange
Commission or pursuant to Rule 144 ("Rule 144") promulgated under the Securities
Act of 1933 (the "Act") the Company shall use its reasonable efforts to file
with the Securities and Exchange Commission all current reports and the
information as may be necessary to enable the Holder to effect sales of its
shares in reliance upon Rule 144.

            6. Investment Intent; Limited Transferability. (a) The Holder, by
acceptance of this Warrant, represents and warrants that it understands that
this Warrant and any securities obtainable upon exercise of this Warrant have
not been registered for sale under the Act or any state securities or blue sky
laws and are being offered and sold to the Holder pursuant to one or more
exemptions from the registration requirements of the Act and any applicable
state securities or blue sky laws and regulations. In the absence of an
effective registration under the Act or any applicable state securities or blue
sky laws or regulations, or an exemption therefrom, any certificates for such
securities shall bear the legend set forth on the first page hereof. The Holder
understands that it must bear the economic risk of its investment in this
Warrant and any securities obtainable upon exercise of this Warrant for an
indefinite period of time, as this Warrant has not been, and such securities may
not be, registered under the Act or any state securities or blue sky laws and,
therefore, cannot be sold unless subsequently registered under such laws, unless
exemptions from such registrations are available.

            (b) The Holder, by its acceptance of this Warrant, represents to the
Company that it is acquiring this Warrant and will acquire any securities
obtainable upon exercise of this Warrant for its own account for investment and
not with a view to, or for sale in connection with, any distribution thereof in
violation of the Act. The Holder agrees that this Warrant and any such
securities will not be sold or otherwise transferred unless (i) a registration
statement with respect to such transfer is effective under the Act and any
applicable state securities or blue sky laws or (ii) such sale or transfer is
made pursuant to one or more exemptions from the Act or any applicable state
securities or blue sky laws or regulations.

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<PAGE>

            (c) In addition to the limitations set forth in Section 1 and in the
Subscription Agreement, the Holder agrees, acknowledges and understands that
this Warrant may not be sold, transferred, assigned or hypothecated by the
Holder except in compliance with the provisions of the Act and any applicable
state securities or blue sky laws, and is so transferable only upon the books of
the Company which it shall cause to be maintained for such purpose. The Company
may treat the registered Holder of this Warrant as it appears on the Company's
books at any time as the Holder for all purposes. The Company shall permit any
Holder of this Warrant or its duly authorized attorney, upon written request
during ordinary business hours, to inspect and copy or make extracts from its
books showing the registered holders of Warrants. All Warrants issued upon the
transfer or assignment of this Warrant will be dated the same date as this
Warrant, and all rights of the holder thereof shall be identical to those of the
Holder.

            (d) The Holder agrees and acknowledges that, in connection with its
purchase of this Warrant, it has been afforded the opportunity to (i) ask such
questions as it has deemed necessary of, and to receive answers from,
representatives of the Company concerning the terms and conditions of this
Warrant or the exercise of this Warrant and (ii) request such additional
information which the Company possesses or can acquire without unreasonable
effort or expense.

            (e) The Holder represents and warrants that, in connection with its
purchase of this Warrant, it did not (i) receive or review any advertisement,
article, notice or other communication published in a newspaper or magazine or
similar media or broadcast over television or radio, whether closed circuit, or
generally available, (ii) receive or review any other form of general
solicitation or general advertisement or (iii) attend any seminar, meeting or
investor or other conference whose attendees were, to the Holder's knowledge,
invited by any general solicitation or general advertising.

            (f) The Holder represents and warrants that it is an "accredited
investor" within the meaning of Regulation D promulgated under the Act and that
it is acquiring the Warrants for its own account and not with a present view to,
or for sale in connection with, any distribution thereof in violation of the
registration requirements of the Act, without prejudice, however, to such
Holder's right, subject to the provisions of the Subscription Agreement and this
Warrant, at all times to sell or otherwise dispose of all or part of this
Warrant and the Warrant Shares.

            (g) Either by reason of the Holder's business or financial
experience or the business or financial experience of its professional advisors
(who are unaffiliated with and who are not compensated by the Company or any
affiliate, finder or selling agent of the Company, directly or indirectly), the
Holder has the capacity to protect the Holder's interests in connection with the
transactions contemplated by this Warrant and the Subscription Agreement.

            7. Optional Redemption. In the event that the average closing bid
price for any 20 out of 30 consecutive trading days is at least $3.00 per share
(the "Redemption Price"), the Company shall be entitled to redeem the Warrants,
or any of them, at a per Warrant price equal to $0.001, upon 30-days' written
notice to the Holder. Upon the expiration of such 30 day period, all Warrants
noticed for redemption that have not theretofore been exercised by the Holder
shall, upon payment of the aggregate price therefore, cease to represent the
right to purchase any shares of Common Stock and shall be deemed automatically

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cancelled, and shall be null and void and of no further force or effect without
any act or deed on the part of the Company. The Holder undertakes to return the
certificate representing any redeemed Warrants to the Company upon their
redemption and to indemnify the Company with respect to any losses, claims,
damages, expenses or liabilities arising from the Holder's failure to return
such certificate. In the event the certificate so returned represents a number
of Warrants in excess of the number being redeemed, the Company shall as
promptly as practicable issue to the Holder a new certificate for the number of
unredeemed Warrants.

            8. Loss, Etc., of Warrant. Upon receipt of evidence satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant, and
of indemnity reasonably satisfactory to the Company, if lost, stolen or
destroyed, and upon surrender and cancellation of this Warrant, if mutilated,
the Company shall execute and deliver to the Holder a new Warrant of like date,
tenor and denomination.

            9. Warrant Holder Not Stockholder. This Warrant does not confer upon
the Holder any right to vote on or consent to or receive notice as a stockholder
of the Company, as such, in respect of any matters whatsoever, nor any other
rights or liabilities as a stockholder, prior to the exercise hereof; this
Warrant does, however, require certain notices to Holders as set forth herein.

            10. Communication. No notice or other communication under this
Warrant shall be effective unless, but any notice or other communication shall
be effective and shall be deemed to have been given if, the same is in writing
and is mailed by first-class mail, postage prepaid, addressed to:

            (a) the Company at NovaDel Pharma Inc., 25 Minneakoning Road,
Flemington, New Jersey 08822, Attn: Chief Executive Officer, or such other
address as the Company has designated in writing to the Holder; or

            (b) the Holder at [ ], Attn: [ ] or other such address as the Holder
has designated in writing to the Company.

            11. Headings. The headings of this Warrant have been inserted as a
matter of convenience and shall not affect the construction hereof.

            12. Applicable Law. This Warrant shall be governed by and construed
in accordance with the laws of the State of Delaware without giving effect to
the principles of conflicts of law thereof.

            13. Amendment, Waiver, Etc. Except as expressly provided herein,
neither this Warrant nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by the party against whom
enforcement of any such amendment, waiver, discharge or termination is sought;
provided, however, that any provisions hereof may be amended, waived, discharged
or terminated upon the written consent of the Company and the Majority of the
Holders.

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            IN WITNESS WHEREOF, the Company has caused this Warrant to be
executed this [ ] day of [ ], 2003.

                                        NOVADEL PHARMA INC.

                                        By:
                                            ------------------------------------
                                        Name:  Gary A. Shangold, M.D.
                                        Title: President and
                                               Chief Executive Officer

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                                   ASSIGNMENT

            FOR VALUE RECEIVED _______________ hereby sells, assigns and
transfers unto ____________________ the foregoing Warrant and all rights
evidenced thereby, and does irrevocably constitute and appoint
_____________________, attorney, to transfer said Warrant on the books of
NovaDel Pharma Inc. (the "Company"). As a condition to this assignment, the
Holder acknowledges that its assignee must deliver a written instrument to the
Company that the representations and warranties of Section 6 of the Warrant are
true and correct as of the date hereof as if they had been made by such assignee
on such date with respect to the Warrants.

Dated:_______________                       Signature:____________________
                                            Address:______________________
                                                    ______________________

                               PARTIAL ASSIGNMENT

            FOR VALUE RECEIVED _______________ hereby assigns and transfers unto
____________________ the right to purchase _______ shares of the Common Stock,
par value $.001 per share, of NovaDel Pharma Inc. (the "Company"), as set forth
in the foregoing Warrant, and a proportionate part of said Warrant and the
rights evidenced thereby, and does irrevocably constitute and appoint
____________________, attorney, to transfer that part of said Warrant on the
books of the Company. As a condition to this assignment, the Holder acknowledges
that its assignee must deliver a written instrument to the Company that the
representations and warranties of Section 6 of the Warrant are true and correct
as of the date hereof as if they had been made by such assignee on such date
with respect to the Warrants.

Dated:_______________                       Signature:____________________
                                            Address:______________________
                                                    ______________________

<PAGE>

                                  SUBSCRIPTION

            The undersigned, ___________________, pursuant to the provisions of
the foregoing Warrant, hereby elects to exercise such Warrant by agreeing to
subscribe for and purchase ____________________ shares (the "Warrant Shares") of
Common Stock, par value $.001 per share, of NovaDel Pharma Inc. (the "Company"),
and hereby makes payment of $___________ by certified or official bank check in
payment of the exercise price therefor.

            As a condition to this subscription, the undersigned hereby
represents and warrants to the Company that the representations and warranties
of Section 6 of the Warrant are true and correct as of the date hereof as if
they had been made on such date with respect to the Warrant Shares. The
undersigned further acknowledges that the sale, transfer, assignment or
hypothecation of the Warrant Shares to be issued upon exercise of this Warrant
is subject to the terms and conditions contained in Sections 1 and 6 of this
Warrant.

Dated:_______________                       Signature:____________________
                                            Address:______________________
                                                    ______________________THE SECURITIES  WHICH ARE THE SUBJECT OF THIS AGREEMENT HAVE NOT BEEN REGISTERED
UNDER THE  SECURITIES  ACT OF 1933 (THE "1933 ACT"),  NOR  REGISTERED  UNDER ANY
STATE SECURITIES LAW, AND ARE "RESTRICTED SECURITIES" AS THAT TERM IS DEFINED IN
RULE 144 UNDER THE 1933 ACT. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD OR
OTHERWISE  TRANSFERRED  EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT
UNDER THE 1933 ACT, OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE 1933
ACT, THE  AVAILABILITY OF WHICH IS TO BE ESTABLISHED TO THE  SATISFACTION OF THE
COMPANY.

                              ACQUISITION AGREEMENT
                              ---------------------

         AGREEMENT made this 30th day of September,  2003, by and between REXRAY
CORPORATION, a Colorado corporation,  (the "ISSUER"), its principal shareholders
and  officers and  directors  (hereinafter  "Shareholders"),  and CytoDyn of New
Mexico, Inc., a New Mexico corporation ("CytoDyn").

         In consideration of the mutual promises, covenants, and representations
contained herein, and other good and valuable  consideration,  including $10,000
in cash, receipt of which is hereby acknowledged by ISSUER,

         THE PARTIES HERETO AGREE AS FOLLOWS:

         1.       ACQUISITION OF TRADE NAME AND PATENT LICENSE.
                  ---------------------------------------------

         i. Subject to the terms and conditions of this Agreement, ISSUER agrees
to issue to  CytoDyn,  a total of  5,362,640  post-reverse  split  shares of the
common stock of ISSUER, in exchange for the following assets: 1) the trademarks,
CytoDyn Cytolin,  and that certain trademark symbol, a copy of which is attached
hereto  as  Schedule  1(i)  (hereinafter  collectively"trademark"),  and  2) the
assignment of that certain  patent license  agreement  dated July 1, 1994 by and
between  Allen D. Allen and  CytoDyn of New  Mexico,  Inc.,  ("license"),  which
license is attached  hereto as Exhibit "A" and covers U.S.  Patent No.s 5424066,
5651970,  and  6534057,  and  described  as a  "method  for  inhibiting  disease
associated with the Human  Immunodeficiency  Virus through the use of monoclonal
antibodies directed against anti-self  cytotoxic  T-lymphocytes or their lytics"
(hereinafter "license.")

         ii. The  above-referenced  shares are calculated after the effectuation
of a one for two  reverse  split of the common  share  capital of ISSUER,  which
shall be duly approved by its shareholders.

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<PAGE>

         2.       REPRESENTATIONS   AND  WARRANTIES.   ISSUER  and  Shareholders
represent and warrants to CytoDyn the following:

                  i.  Organization.  ISSUER  is a  corporation  duly  organized,
validly existing,  and in good standing under the laws of Colorado,  and has all
necessary  corporate  powers to own properties  and carry on a business,  and is
duly  qualified to do business and is in good standing in Colorado.  All actions
taken by the Incorporators, directors and shareholders of ISSUER have been valid
and in accordance  with the laws of the State of Colorado.  ISSUER is current in
its reporting obligations to the Securities and Exchange Commission.

                  ii. Capital.  The authorized capital stock of ISSUER currently
consists  of  20,000,000  shares of common  stock,  $0.001 par  value,  of which
1,780,000 are issued and outstanding, prior to the effectuation of a one for two
(1:2) reverse split of ISSUER's common share capital. All outstanding shares are
fully paid and nonassessable, free of liens, encumbrances, options, restrictions
(with the exception of Rule 144  requirements)  and legal or equitable rights of
others not a party to this Agreement. Following the one for two reverse split of
share capital contemplated by this Agreement,  and the closing, there shall be a
total of 6,277,640  shares of common stock of ISSUER issued and  outstanding and
there  will  be  no  outstanding   subscriptions,   options,  rights,  warrants,
convertible securities,  or other agreements or commitments obligating ISSUER to
issue or to transfer from treasury any  additional  shares of its capital stock.
None of the  outstanding  shares of ISSUER are subject to any stock  restriction
agreements.  All of the  shareholders  of ISSUER have valid title to such shares
and acquired  their shares in a lawful  transaction  and in accordance  with the
laws of Colorado.

                  iii.  Financial  Statements.  The financial  statements of the
ISSUER have been  audited and prepared in  accordance  with  generally  accepted
accounting  principles  consistently  followed by ISSUER  throughout the periods
indicated, and fairly present the financial position of ISSUER as of the date of
the  balance  sheet  and  the  financial  statements,  and  the  results  of its
operations for the periods indicated.  ISSUER is current in its filings with the
Securities  and  Exchange  Commission,  and all such  filings are  accurate  and
complete.

                  iv.  Absence  of  Changes.  Since  the  date of the  financial
statements filed with the Securities and Exchange Commission, there has not been
any change in the financial condition or operations of ISSUER, except changes in
the ordinary  course of business,  which changes have not in the aggregate  been
materially adverse.

                  v. Liabilities.  ISSUER does not have any debt, liability,  or
obligation of any nature, whether accrued,  absolute,  contingent, or otherwise,
and  whether  due or to  become  due,  that  is not  reflected  on the  ISSUERS'
financial statement.  ISSUER is not aware of any pending, threatened or asserted
claims, lawsuits or contingencies involving ISSUER or its common stock. There is
no dispute of any kind  between  the  ISSUER  and any third  party,  and no such
dispute will exist at the closing of this Agreement.  At closing, ISSUER will be
free from any and all liabilities, liens, claims and/or commitments.

                                       2
<PAGE>

                  vi.  Ability to Carry Out  Obligations.  ISSUER has the right,
power,  and  authority  to enter into and  perform  its  obligations  under this
Agreement.  The  execution  and  delivery  of this  Agreement  by Issuer and the
performance by ISSUER of its obligations  hereunder will not cause,  constitute,
or  conflict  with  or  result  in (a) any  breach  or  violation  or any of the
provisions of or constitute a default  under any license,  indenture,  mortgage,
charter,  instrument,  articles of  incorporation,  bylaw, or other agreement or
instrument to which ISSUER or its shareholders are a party, or by which they may
be bound, nor will any consents or  authorizations of any party other than those
hereto be  required,  (b) an event that would  cause  ISSUER to be liable to any
party,  or (c) an event that would result in the creation or  imposition  or any
lien,  charge or  encumbrance  on any asset of ISSUER or upon the  securities of
ISSUER to be acquired.

                  vii.  Full  Disclosure.   None  of  the   representations  and
warranties  made  by the  ISSUER  and/or  Shareholders,  or in  any  memorandum,
document or whatever form, or in any  certificate or memorandum  furnished or to
be furnished by the ISSUER,  contains or will contain any untrue  statement of a
material  fact,  or omit any  material  fact  the  omission  of  which  would be
misleading.

                  viii. Contract and Leases. ISSUER is not currently carrying on
any business and is not a party to any contract,  agreement or lease.  No person
holds a power of attorney from ISSUER.

                  ix. Compliance with Laws. ISSUER has complied with, and is not
in violation of any federal,  state, or local statute,  law,  and/or  regulation
pertaining to ISSUER.  ISSUER has complied with all federal and state securities
laws in connection  with the issuance,  sale and  distribution of its securities
and in its filings with the Securities  and Exchange  Commission and all of such
filings have been timely made. All of the certifications made in connection with
its filings are true and correct.  All of ISSUER's affiliates who are subject to
Section  16 of the  Securities  and  Exchange  Act of 1934 have made  timely and
accurate filings under that section.

                  x. Litigation. ISSUER is not (and has not been) a party to any
suit, action,  arbitration,  or legal,  administrative,  or other proceeding, or
pending governmental  investigation.  To the best knowledge of the ISSUER, there
is no basis for any such action or  proceeding  and no such action or proceeding
is  threatened  against  ISSUER and ISSUER is not subject to or in default  with
respect to any order, writ, injunction,  or decree of any federal, state, local,
or foreign court, department, agency, or instrumentality.

                  xi.  Conduct of Business.  Prior to the closing,  ISSUER shall
conduct its business in the normal course,  and shall not (1) sell,  pledge,  or
assign any assets (2) amend its Articles of Incorporation or Bylaws, (3) declare
dividends,  redeem  or sell or issue  stock or other  securities,  (4) incur any
liabilities,  (5)  acquire or dispose of any  assets,  enter into any  contract,
guarantee  obligations  of  any  third  party,  or  (6)  enter  into  any  other
transaction  or  commit  to or agree to do any of the  foregoing.  There  are no
cumulative voting rights with respect to the common stock issued by ISSUER.

                                       3
<PAGE>

                  xii.  Documents.  All  minutes,  consents  or other  documents
pertaining to ISSUER to be delivered at closing shall be valid and in accordance
with the laws of Colorado.

                  xiv.  Title.  The Shares to be issued to  CytoDyn  will be, at
closing,  free and clear of all liens,  security  interests,  pledges,  charges,
claims,  encumbrances  and restrictions of any kind, shall be issued pursuant to
Regulation  D,  Section  506 and  4(2)of  the Act and shall bear a legend in the
following  format:  "THE  SHARES  EVIDENCED  BY THIS  CERTIFICATE  HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND HAVE BEEN ACQUIRED
BY  THE  ISSUEE  FOR  INVESTMENT  PURPOSES.  SAID  SHARES  MAY  NOT BE  SOLD  OR
TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SHARES
UNDER THE SECURITIES ACT OF 1933, OR A PRIOR OPINION OF COUNSEL  SATISFACTORY TO
THE ISSUER THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT." None of such Shares
are or will be subject to any voting trust or agreement.  No person holds or has
the right to  receive  any proxy or  similar  instrument  with  respect  to such
shares,  except as provided in this Agreement,  the ISSUER is not a party to any
agreement  which offers or grants to any person the right to purchase or acquire
any of the  securities to be issued to CytoDyn.  There is no  applicable  local,
state or federal law, rule,  regulation,  or decree which would,  as a result of
the  issuance of the Shares to  CytoDyn,  impair,  restrict  or delay  CytoDyn's
voting rights with respect to the Shares.

                  xv.  Employees.  Except  for the  fact  that  the  ISSUER  has
officers  who are deemed to be  employees  by law, the ISSUER does not have now,
nor has it ever had any  employees and is not now, nor has it ever had any COBRA
or other benefit  obligations.  The current directors and officers of the ISSUER
are not  entitled to any  compensation  of any form,  whether  past,  current or
future that has not been paid and no severance benefits are payable to them.

                  xvi. Taxes.  There are no outstanding or threatened tax liens,
assessments, or audits against ISSUER or any of its assets.

         3.       CytoDyn represents and warrants to ISSUER the following:

                  i.  Organization.  CytoDyn is a  corporation  duly  organized,
validly  existing,  and in good standing  under the laws of New Mexico,  has all
necessary  corporate  powers to own properties  and carry on a business,  and is
duly qualified to do business and is in good standing in New Mexico. All actions
taken by the Incorporators, directors and CytoDyn of CytoDyn have been valid and
in accordance with the laws of New Mexico.

                  ii.   CytoDyn  and  Issued   Stock.   CytoDyn   currently  has
outstanding 63,283 shares of common stock.

                  iii.  Counsel.  CytoDyn represents and warrants that prior to
Closing,  that it has been  represented  by  independent  counsel or has had the
opportunity to retain independent counsel to represent it in this transaction.

                                       4
<PAGE>

                  iv. Financial Statements.  The financial statements of CytoDyn
have been prepared in accordance with generally accepted  accounting  principles
consistently  followed by CytoDyn throughout the periods  indicated,  and fairly
present the  financial  position of CytoDyn as of the date of the balance  sheet
and the financial statements,  and the results of its operations for the periods
indicated.

                  v. Absence of Changes.  Since the date of the letter of intent
executed  by the  parties,  there  has not  been  any  change  in the  financial
condition or operations  of CytoDyn,  except  changes in the ordinary  course of
business, which changes have not in the aggregate been materially adverse.

                  vi. Liabilities. CytoDyn does not have any debt, liability, or
obligation of any nature, whether accrued,  absolute,  contingent, or otherwise,
and  whether  due or to  become  due,  that is not  reflected  on the  CytoDyn's
financial statement. CytoDyn is not aware of any pending, threatened or asserted
claims,  lawsuits or contingencies  involving CytoDyn or its common stock. There
is no dispute  of any kind  between  CytoDyn  and any third  party,  and no such
dispute will exist at the closing of this Agreement. At closing, CytoDyn will be
free from any and all  liabilities,  liens,  claims and/or  commitments,  except
those disclosed in its financial  statements,  which include but are not limited
to loans taken and legal fees  outstanding  for the  protection  of its U.S. and
foreign patents. All such liabilities are under $150,000.

                  vii. Ability to Carry Out Obligations.  CytoDyn has the right,
power,  and  authority  to enter into and  perform  its  obligations  under this
Agreement.  The  execution  and  delivery  of this  Agreement  by Issuer and the
performance by CytoDyn of its obligations hereunder will not cause,  constitute,
or  conflict  with  or  result  in (a) any  breach  or  violation  or any of the
provisions of or constitute a default  under any license,  indenture,  mortgage,
charter,  instrument,  articles of  incorporation,  bylaw, or other agreement or
instrument to which CytoDyn or its  shareholders  are a party,  or by which they
may be bound,  nor will any consents or  authorizations  of any party other than
those hereto be required,  (b) an event that would cause CytoDyn to be liable to
any party,  or (c) an event that would result in the creation or  imposition  or
any lien, charge or encumbrance on any asset of CytoDyn to be acquired.

                  viii.  Full  Disclosure.   None  of  the  representations  and
warranties made by CytoDyn and/or its principals, or in any memorandum, document
or whatever media form  furnished or to be furnished by the ISSUER,  contains or
will contain any untrue  statement of a material fact, or omit any material fact
the omission of which would be misleading.

                  ix. Contract and Leases.  CytoDyn is not currently carrying on
any business and is not a party to any contract,  agreement or lease.  No person
holds a power of attorney from CytoDyn.

                  x. Compliance with Laws. CytoDyn has complied with, and is not
in violation of any federal,  state, or local statute,  law,  and/or  regulation
pertaining  to  CytoDyn.  CytoDyn  has  complied  with  all  federal  and  state
securities  laws in connection with the issuance,  sale and  distribution of its
securities.

                                       5
<PAGE>

                  xi.  Litigation.  CytoDyn is not (and has not been) a party to
any suit, action, arbitration, or legal, administrative, or other proceeding, or
pending  governmental  investigation,  with  the  exception  of  that  which  is
disclosed  herein on Schedule B attached  hereto.  To the best  knowledge of the
CytoDyn,  there is no basis for any such action or proceeding and no such action
or proceeding is threatened  against CytoDyn and CytoDyn is not subject to or in
default with respect to any order, writ,  injunction,  or decree of any federal,
state, local, or foreign court, department, agency, or instrumentality.  CytoDyn
is a party  plaintiff  to a lawsuit  against Rex Lewis for fraud it believes was
committed against the company,  and the controversy  surrounding this litigation
is set forth in subparagraph xvii and Schedule B.

                  xii. Conduct of Business.  Prior to the closing, CytoDyn shall
conduct its business in the normal course,  and shall not (1) sell,  pledge,  or
assign any assets (2) amend its Articles of Incorporation or Bylaws, (3) declare
dividends,  redeem or sell stock or other securities, (4) incur any liabilities,
(5)  acquire or  dispose  of any  assets,  enter  into any  contract,  guarantee
obligations of any third party, or (6) enter into any other transaction.

                  xiii.  Documents.  All  minutes,  consents or other  documents
pertaining to ISSUER to be delivered at closing shall be valid and in accordance
with the laws of New Mexico.

                  xiv. Accredited Status.  CytoDyn is an accredited investor, as
that term is defined in Rule 501  promulgated  under the Securities Act of 1933.
CytoDyn  represents  that  it is  able to fend  for  itself  in the  transaction
contemplated by this  agreement,  has such knowledge and experience in financial
and business  matters as to be capable of evaluating the merits and risks of its
investment, has the ability to bear the economic risks of its investment and has
been  furnished  with and has had  access to such  information  as would be made
available in the form of a registration  statement together with such additional
information as is necessary to verify the accuracy of the information supplied.

                  xv.  Employees.  Except for the fact that CytoDyn has officers
who are deemed to be  employees  by law,  CytoDyn  does not have now, nor has it
ever had any  employees  and is not now,  nor has it ever had any COBRA or other
benefit obligations.

                  xvi. Taxes.  There are no outstanding or threatened tax liens,
assessments, or audits against CytoDyn or any of its assets.

                  xvii. Prior  Acquisition  failure.  Allen D. Allen and CytoDyn
had  previously  licensed  the CytoDyn  patents  and  trademarks  to  Amerimmune
Pharmaceuticals,  Inc.  This  license  was  attached as Document 2 to the annual
report on Form  10SB,  filed by  Amerimmune  with the  Securities  and  Exchange
Commission  on June  29,  2000.  The  license  terminated  under  its own  terms
(paragraph  11.2 thereof) on August 14, 2001 when  Amerimmune  filed a quarterly
report on Form 10Q with the Securities and Exchange Commission,  indicating that
it would  not  abide by  paragraph  6,  page 8 of the  license  agreement.  This
provision of the license is required by federal law. Amerimmune's C.E.O., Rex H:
Lewis,  subsequently filed for bankruptcy  protection for Amerimmune in the U.S.
Bankruptcy Court in Las Vegas,  Nevada,  and claimed therein that Amerimmune not

                                       6
<PAGE>

only owned the rights it had  abandoned  under the  license,  but also the major
assets of its key  vendors.  After  resigning  as an  officer  and  director  of
Amerimmune,  Lewis  then  attempted  to buy all such  property  rights and other
property allegedly owned by Amerimmune for the sum of $10,000.  This transaction
was rejected by the  Bankruptcy  Court as a sham  transaction.  Further  adverse
actions by Mr. Lewis against CytoDyn and its assets are possible, but records of
the U.S. Patent and Trademark  Office  currently show that the patents are owned
by  Allen  D.  Allen,  the  trademarks  are  owned  by  CytoDyn,  and  they  are
unencumbered by any assignment.

                  xiv.  Patent  Ownership.  Allen D. Allen  hereby  warrants and
represents  that all of the patents  referred to in this agreement are under his
sole  control  and  ownership,  and  that  CytoDyn  has his full  agreement  and
authority to license the said patents to ISSUER pursuant to this Agreement. Only
this  subparagraph  of  this  Agreement  and  the  miscellaneous  provisions  of
paragraph 8 that apply to it are binding upon and  enforceable  against Allen D.
Allen in his individual capacity.

         4.       INVESTMENT INTENT. CytoDyn agrees that the shares being issued
pursuant to this  Agreement  may be sold,  pledged,  assigned,  hypothecated  or
otherwise  transferred,  with or  without  consideration  (a  "Transfer"),  only
pursuant to an effective registration statement under the Act, or pursuant to an
exemption from  registration  under the Act, the  availability of which is to be
established  to the  satisfaction  of ISSUER,  or an applicable  exemption  from
registration.  CytoDyn agrees, prior to any transfer,  to give written notice to
ISSUER  expressing its desire to effect the transfer and describing the proposed
transfer.

         5.       CLOSING.  The closing of this transaction  shall take place at
the  offices of the  ISSUER's  counsel  at 629 State  Street,  Suite 217,  Santa
Barbara, California, on or before **, 2003.

         6.       DOCUMENTS TO BE DELIVERED AT CLOSING.
                  -------------------------------------

                  i.       By the ISSUER:

                  (1)      A certificate or certificates  for 5,362,640  Shares,
registered in the name of CytoDyn.

                  (2)      The resignation of all officers of ISSUER.

                  (3)      A  Board  of  Directors  resolution  appointing  such
person as CytoDyn shall designate as a director(s) of ISSUER.

                  (4)      The resignation of all the directors of ISSUER.

                  (5)      Current  SEC  filings  of  the  ISSUER,  which  shall
include a current  balance  sheet and  statements  of  operations,  stockholders
equity and cash flows for the twelve (12) month period then ended.

                                       7
<PAGE>

                  (6)      All of the business and corporate  records of ISSUER,
including but not limited to correspondence files, bank statements,  checkbooks,
savings account books, minutes of shareholder and directors meetings,  financial
statements,   shareholder  listings,  stock  transfer  records,  agreements  and
contracts.

                  (7)      Such  other  minutes  of  ISSUER's   shareholders  or
directors as may reasonably be required by CytoDyn.

                  (8)      An Opinion Letter from ISSUER's Attorney attesting to
the validity  and  condition of the ISSUER,  this  transaction,  the issuance of
ISSUER's  outstanding  shares  and the  status  of  ISSUER's  filings  with  the
Securities and Exchange Commission.

                  ii.      By CytoDyn:
                           -----------

                  (1)      Delivery of a valid  assignment  of the trademark and
license.

                  (2)      Consents  signed by CytoDyn,  consenting to the terms
of this Agreement.

         7.       PRE AND POST CLOSING COVENANTS.
                  -------------------------------

                  i.  Forgiveness  of Rexray  debt.  Prior to the  closing,  all
indebtedness  of  Rexray,  if any,  shall  be  forgiven  and  discharged  by the
obligee(s) thereof pursuant to a written instrument  executed by said obligee(s)
in favor of Rexray.

                  ii. Shareholder approval.  Following the closing, Rexray shall
obtain approval, if required by law, of this acquisition from its shareholders.

                  iii.  License.  An assignment of the license shall be executed
by CytoDyn, in which paragraph 11 of the license will be redacted.

                  iv. Reverse split. Prior to the closing, ISSUER shall effect a
one for two (1-2) reverse split of its common share capital,  which will require
a proxy  statement  or  information  statement  filing,  shareholder  notice and
approval of a majority of the outstanding common shares.

         8.       MISCELLANEOUS.

                  i. Captions and Headings.  The Article and paragraph  headings
throughout  this Agreement are for  convenience and reference only, and shall in
no way be deemed to define,  limit,  or add to the meaning of any  provision  of
this Agreement.

                                       8
<PAGE>

                  ii. No oral change.  This Agreement and any provision  hereof,
may not be waived,  changed,  modified,  or  discharged  orally,  but only by an
agreement in writing signed by the party against whom enforcement of any waiver,
change, modification, or discharge is sought.

                  iii.  Non Waiver.  Except as  otherwise  provided  herein,  no
waiver of any  covenant,  condition,  or  provision of this  Agreement  shall be
deemed to have been made  unless  expressly  in writing  and signed by the party
against whom such waiver is charged;  and (I) the failure of any party to insist
in any  one  or  more  cases  upon  the  performance  of any of the  provisions,
covenants,  or  conditions  of this  Agreement or to exercise any option  herein
contained shall not be construed as a waiver or relinquishment for the future of
any  such  provisions,   covenants,  or  conditions,   (ii)  the  acceptance  of
performance  of  anything  required  by  this  Agreement  to be  performed  with
knowledge of the breach or failure of a covenant, condition, or provision hereof
shall not be deemed a waiver of such breach or  failure,  and (iii) no waiver by
any party of one breach by another  party  shall be  construed  as a waiver with
respect to any other or subsequent breach.

                  iv. Time of Essence.  Time is of the essence of this Agreement
and of each and every provision hereof.

                  v.  Entire  Agreement.  This  Agreement  contains  the  entire
Agreement and understanding between the parties hereto, and supersedes all prior
agreements and understandings.

                  vi.    Counterparts.    This   Agreement   may   be   executed
simultaneously  in one or more  counterparts,  each of which  shall be deemed an
original,  but  all  of  which  together  shall  constitute  one  and  the  same
instrument.

                  vii.  Notices.  All  notices,  requests,  demands,  and  other
communications  under this Agreement  shall be in writing and shall be deemed to
have been duly given on the date of service if served personally on the party to
whom notice is to be given,  or on the third day after  mailing if mailed to the
party  to whom  notice  is to be  given,  by first  class  mail,  registered  or
certified, postage prepaid, and properly addressed, and by fax, as follows:

ISSUER:                             James B. Wiegand
                                    16200 WCR 18E
                                    Loveland, CO 80537
                                    Phone: (970) 635-0346
                                    Fax:   (970) 635-0346

CytoDyn:                            Allen D. Allen
                                    4236 Longridge Ave.
                                    Suite 302
                                    Studio City, CA 91604
                                    Phone: (505) 577-1636
                                    Fax:   (323) 525-0870

                                       9
<PAGE>

                  ix. Costs. All costs and expenses  incurred in connection with
this  transaction,  including  all  reasonable  legal  and  accounting  fees and
expenses,  whether or not the transaction is consummated,  and any actions taken
by either party in reliance  upon this  Agreement  shall be at such party's sole
risk and expense.

                  x. Cooperation. The parties agree to cooperate with each other
to  execute  any and all  documents  which may be  required  to  consummate  the
transaction, to file any documents required under local, state or federal law to
consummate  the   transaction,   and  to  obtain  any  necessary   approvals  of
shareholders or any third parties.

                  xi. No third party  beneficiaries.  This Agreement is intended
to benefit  only the parties to this  transaction,  and there are no third party
beneficiaries to this Agreement.

         IN WITNESS  WHEREOF,  the  undersigned has executed this Agreement this
30th day of September, 2003.

                                      REXRAY CORPORATION

                                      By: /s/ James B. Wiegand
                                         ---------------------------------------
                                         James B. Wiegand, President

                                      CytoDyn of New Mexico, Inc.

                                      By: /s/ Allen D. Allen
                                         ---------------------------------------
                                         Allen D. Allen, President pursuant to a
                                         resolution of the Board of Directors of
                                         CytoDyn adopted on September 30, 2003.

                                      As to paragraph 3xviii and paragraph 6
                                      subparagraph ii (1) as the registered
                                      owner of the patents only:

                                       /s/ Allen D. Allen
                                      ---------------------------------------
                                      Allen D. Allen, Individually

                                       10
<PAGE>

                                   SCHEDULE B
                                 Legal Disputes

In Nevada
---------

Allen and  CytoDyn  had  previously  licensed  the  patents  and  trademarks  to
Amerimmune Pharmaceuticals,  Inc. This license was attached as Document 2 to the
annual report  (10-KSB) filed by Amerimmune with the SEC on June 29, 2000 and is
available for public inspection.

The license  terminated  under its own terms (paragraph 11.2) on August 13, 2001
when  Amerimmune  filed a 10Q with the SEC  acknowledging  on page 12 of the 10Q
that  Amerimmune  would  not  abide  by  paragraph  6,  page 6,  of the  license
agreement.  This provision of the license is required by federal law. There were
several other breaches of the license, including, without limitation, default of
the payments for patent and license fees.

Amerimmune's  CEO, Rex H. Lewis,  subsequently had Amerimmune file for Chapter 7
bankruptcy in Las Vegas, Nevada, claiming through his agent, Pamela M. Kapustay,
that  Amerimmune  not only owned the rights it had  abandoned but also the chief
assets of its key  vendors.  After  resigning  as an  officer  and  director  of
Amerimmune,  Lewis then  attempted to buy all such alleged  property for himself
for a payment of $10,000. This was immediately rejected by the bankruptcy judge.
The trustee,  on  instruction  from the judge,  moved to dismiss the  bankruptcy
case, which the judge then dismissed on September 24, 2003.

The records of the U.S.  Patent and  Trademark  Office  (www.uspto.gov)  and its
foreign counterparts confirm that the patents are owned by Allen, the trademarks
are owned by CytoDyn, and they are unencumbered by any assignment.

In California
-------------

Apparently by converting the proprietary  methods of CytoDyn's chief  laboratory
vendor,  Amerimmune  abandoned the laboratory  technology that CytoDyn had spent
approximately $900,000 developing. To recover this loss, CytoDyn brought suit in
California against Amerimmune's  officers and directors which is scheduled to be
heard as a jury trial in April of 2004. CytoDyn, and therefore Rexray, will only
receive two thirds of any monetary  damages  recovered  because CytoDyn is being
represented under a partial contingent-fee agreement for legal services.

Rex Lewis  (only) filed a  cross-complaint  against  CytoDyn and its  Directors.
CytoDyn  already has a summary  judgment  against  some of the  cross-complaint,
which the judge  ruled  contained  improper  and  prohibited  causes of  action.
Surviving elements of the cross-complaint will be dealt with on merit since they
are false and, in any event, do not specify any harm done to Lewis,  who himself
rendered Amerimmune  insolvent and then made an unsuccessful  attempt to acquire
its assets for himself.

                                       11
<PAGE>

                               AMENDMENT NUMBER 1
                                       TO
                              ACQUISITION AGREEMENT

Rexray  Corporation and CytoDyn of New Mexico,  Inc. entered into an Acquisition
Agreement  dated September 30, 2003. The parties wish to amend that Agreement as
set forth in this  Amendment  Number 1. Defined terms in this Amendment have the
same meanings as they have in the Acquisition Agreement.

I.     The parties agree to amend the Acquisition Agreement as follows:

A.     Article 1.i. is amended to add the following sentence:

       ISSUER  understands  and agrees that the  trademark  and license are only
       part of the  assets of  CytoDyn,  and that  Issuer is not  acquiring  the
       business of CytoDyn. As a result, Issuer also understands that CytoDyn is
       not entering into a covenant not to compete or any other  restriction  on
       CytoDyn's business in connection with this Acquisition Agreement.

B.     Article 3.ii. is deleted and the following  Article 3.ii. is added in its
       place:

       Ownership  of Assets.  CytoDyn  owns and has title to the  trademark  and
       license, subject to no liens or encumbrances.

C.     Article  3.xii.  is  amended  by adding the  italicized  language  to the
       paragraph:

       Conduct of Business.  Prior to the  closing,  CytoDyn  shall  conduct its
       business in the normal  course,  and shall not DO ANY OF THE FOLLOWING IN
       SUCH A WAY AS TO AFFECT THE SALE OF THE  TRADEMARK AND LICENSE UNDER THIS
       ACQUISITION  AGREEMENT:  (1) sell, pledge, or assign any of the TRADEMARK
       OR LICENSE  assets,  (2) amend its Articles of  Incorporation  or Bylaws,
       (33) declare  dividends,  redeem or sell stock or other  securities,  (4)
       incur any liabilities,  (5) acquire or dispose of any assets,  enter into
       any contract, guarantee obligations of any third party, or (6) enter into
       any other transaction.

D.     Article 3.xvii is amended by deleting the title and adding in its place:

       Prior License Failure.

II.    The parties further agree that:

A.     The amendments to the  Acquisition  Agreement will be deemed to have been
       made as of the date of the Acquisition Agreement.

Amendment Number 1
Page 1 of 2

<PAGE>

B.     Except for the  amendments,  the terms and conditions of the  Acquisition
       Agreement will remain unchanged.

Dated:  November 20, 2003

REXRAY CORPORATION

By:  /s/ Brian J. McMahon
   ------------------------------------------
   Brian J. McMahon, Executive Vice President

CytoDyn of New Mexico, Inc.

By:  /s/ Allen D. Allen
   ------------------------------------------
   Allen D. Allen, President

As to paragraph 3xiv and the provisions of paragraph 8 that apply to him only:

  /s/ Allen D. Allen
------------------------------------------
Allen D. Allen, Individually

Amendment Number 1
Page 2 of 2

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