Document:

<PAGE>
EXHIBIT 4.1

                          THE 2003 INCENTIVE AWARD PLAN

                                       OF

                                 LIFEPOINT, INC.

         LifePoint, Inc., a Delaware corporation, has adopted the 2003 Incentive
Award Plan of LifePoint, Inc. (the "Plan"), effective December 5, 2003, for the
benefit of its eligible employees, consultants and directors.

         The purposes of the Plan are as follows:

         (1) To provide an additional incentive for directors, key Employees and
Consultants (as such terms are defined below) to further the growth, development
and financial success of the Company by personally benefiting through the
ownership of Company stock and/or rights which recognize such growth,
development and financial success.

         (2) To enable the Company to obtain and retain the services of
directors, key Employees and Consultants considered essential to the long range
success of the Company by offering them an opportunity to own stock in the
Company and/or rights which will reflect the growth, development and financial
success of the Company.

                                   ARTICLE I.

                                   DEFINITIONS

         Wherever the following terms are used in the Plan they shall have the
meanings specified below, unless the context clearly indicates otherwise. The
singular pronoun shall include the plural where the context so indicates.

         1.2. "ADMINISTRATOR" shall mean the entity that conducts the general
administration of the Plan as provided herein. With reference to the
administration of the Plan with respect to Options granted to Independent
Directors, the term "Administrator" shall refer to the Board. With reference to
the administration of the Plan with respect to any other Award, the term
"Administrator" shall refer to the Committee unless the Board has assumed the
authority for administration of the Plan generally as provided in Section 9.1.

         1.2. "AWARD" shall mean an Option, a Restricted Stock award or a
Deferred Stock Award which may be awarded or granted under the Plan
(collectively, "Awards").

         1.3. "AWARD AGREEMENT" shall mean a written agreement executed by an
authorized officer of the Company and the Holder which shall contain such terms
and conditions with respect to an Award as the Administrator shall determine,
consistent with the Plan.

         1.4. "AWARD LIMIT" shall mean 5,000,000 shares of Common Stock, as
adjusted pursuant to Section 10.3.

         1.5. "BOARD" shall mean the Board of Directors of the Company.

         1.6. "CODE" shall mean the Internal Revenue Code of 1986, as amended.

<PAGE>

         1.7. "COMMITTEE" shall mean the Compensation Committee of the Board, or
another committee or subcommittee of the Board, appointed as provided in Section
9.1.

         1.8. "COMMON STOCK" shall mean the common stock of the Company, par
value $0.001 per share.

         1.9. "COMPANY" shall mean LifePoint, Inc., a Delaware corporation.

         1.10. "CONSULTANT" shall mean any consultant or adviser if (i) the
consultant or adviser renders bona fide services to the Company; (ii) the
services rendered by the consultant or adviser are not in connection with the
offer or sale of securities in a capital-raising transaction and do not directly
or indirectly promote or maintain a market for the Company's securities; and
(iii) the consultant or adviser is a natural person who has contracted directly
with the Company to render such services.

         1.11. "DEFERRED STOCK" shall mean Common Stock awarded under Article
VIII of the Plan.

         1.12. "DIRECTOR" shall mean a member of the Board.

         1.13. "DRO" shall mean a domestic relations order as defined by the
Code or Title I of the Employee Retirement Income Security Act of 1974, as
amended, or the rules thereunder.

         1.14. "EMPLOYEE" shall mean any officer or other employee (as defined
in accordance with Section 3401(c) of the Code) of the Company, or of any
corporation which is a Subsidiary.

         1.15. "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended.

         1.16. "FAIR MARKET VALUE" of a share of Common Stock as of a given date
shall be (a) the closing price of a share of Common Stock on the principal
exchange on which shares of Common Stock are then trading, if any (or as
reported on any composite index which includes such principal exchange), on such
date, or if shares were not traded on such date, then on the next preceding date
on which a trade occurred, or (b) if Common Stock is not traded on an exchange
but is quoted on Nasdaq or a successor quotation system, the mean between the
closing representative bid and asked prices for the Common Stock on such date as
reported by Nasdaq or such successor quotation system, or (c) if Common Stock is
not publicly traded on an exchange and not quoted on Nasdaq or a successor
quotation system, the Fair Market Value of a share of Common Stock as
established by the Administrator acting in good faith.

         1.17. "HOLDER" shall mean a person who has been granted or awarded an
Award.

         1.18. "INCENTIVE STOCK OPTION" shall mean an option which conforms to
the applicable provisions of Section 422 of the Code and which is designated as
an Incentive Stock Option by the Administrator.

                                       2
<PAGE>

         1.19. "INDEPENDENT DIRECTOR" shall mean a member of the Board who is
not an Employee of the Company.

         1.20. "NON-QUALIFIED STOCK OPTION" shall mean an Option which is not
designated as an Incentive Stock Option by the Administrator.

         1.21. "OPTION" shall mean a stock option granted under Article IV of
the Plan. An Option granted under the Plan shall, as determined by the
Administrator, be either a Non-Qualified Stock Option or an Incentive Stock
Option; PROVIDED, HOWEVER, that Options granted to Independent Directors and
Consultants shall be Non-Qualified Stock Options.

         1.22. "PERFORMANCE CRITERIA" shall mean the following business criteria
with respect to the Company, any Subsidiary or any division or operating unit
thereof: (a) net income, (b) pre-tax income, (c) operating income, (d) cash
flow, (e) earnings per share, (f) return on equity, (g) return on invested
capital or assets, (h) cost reductions or savings, (i) funds from operations,
(j) appreciation in the Fair Market Value of a share of Common Stock, (k)
operating profit, (l) working capital and (m) earnings before any one or more of
the following items: interest, taxes, depreciation or amortization; provided
that each of the business criteria described in subsections (a) through (m)
shall be determined in accordance with generally accepted accounting principles
("GAAP"). For each fiscal year of the Company, the Committee may provide for
objectively determinable adjustments, as determined in accordance with GAAP, to
any of the business criteria described in subsections (a) through (m) for one or
more of the items of gain, loss, profit or expense: (i) determined to be
extraordinary or unusual in nature or infrequent in occurrence, (ii) related to
the disposal of a segment of a business, (iii) related to a change in accounting
principle under GAAP, (iv) related to discontinued operations that do not
qualify as a segment of a business under GAAP, and (v) attributable to the
business operations of any entity acquired by the Company during the fiscal
year.

         1.23. "PLAN" shall mean the 2003 Incentive Award Plan of LifePoint,
Inc.

         1.24. "RESTRICTED STOCK" shall mean Common Stock awarded under Article
VII of the Plan.

         1.25. "RULE 16B-3" shall mean Rule 16b-3 promulgated under the Exchange
Act, as such Rule may be amended from time to time.

         1.26. "SECTION 162(m) PARTICIPANT" shall mean any key Employee
designated by the Administrator as a key Employee whose compensation for the
fiscal year in which the key Employee is so designated or a future fiscal year
may be subject to the limit on deductible compensation imposed by Section 162(m)
of the Code.

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

         1.28. "SUBSIDIARY" shall mean any corporation in an unbroken chain of
corporations beginning with the Company if each of the corporations other than
the last corporation in the unbroken chain then owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain.

                                       3
<PAGE>

         1.29. "SUBSTITUTE AWARD" shall mean an Option granted under this Plan
upon the assumption of, or in substitution for, outstanding equity awards
previously granted by a company or other entity in connection with a corporate
transaction, such as a merger, combination, consolidation or acquisition of
property or stock; PROVIDED, HOWEVER, that in no event shall the term
"Substitute Award" be construed to refer to an award made in connection with the
cancellation and repricing of an Option.

         1.30. "TERMINATION OF CONSULTANCY" shall mean the time when the
engagement of a Holder as a Consultant to the Company or a Subsidiary is
terminated for any reason, with or without cause, including, but not by way of
limitation, by resignation, discharge, death or retirement, but excluding
terminations where there is a simultaneous commencement of employment with the
Company or any Subsidiary. The Administrator, in its absolute discretion, shall
determine the effect of all matters and questions relating to Termination of
Consultancy, including, but not by way of limitation, the question of whether a
Termination of Consultancy resulted from a discharge for good cause, and all
questions of whether a particular leave of absence constitutes a Termination of
Consultancy. Notwithstanding any other provision of the Plan, the Company or any
Subsidiary has an absolute and unrestricted right to terminate a Consultant's
service at any time for any reason whatsoever, with or without cause, except to
the extent expressly provided otherwise in writing.

         1.31. "TERMINATION OF DIRECTORSHIP" shall mean the time when a Holder
who is an Independent Director ceases to be a Director for any reason,
including, but not by way of limitation, a termination by resignation, failure
to be elected, death or retirement. The Board, in its sole and absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Directorship with respect to Independent Directors.

         1.32. "TERMINATION OF EMPLOYMENT" shall mean the time when the
employee-employer relationship between a Holder and the Company or any
Subsidiary is terminated for any reason, with or without cause, including, but
not by way of limitation, a termination by resignation, discharge, death,
disability or retirement; but excluding (a) terminations where there is a
simultaneous reemployment or continuing employment of a Holder by the Company or
any Subsidiary, (b) at the discretion of the Administrator, terminations which
result in a temporary severance of the employee-employer relationship, and (c)
at the discretion of the Administrator, terminations which are followed by the
simultaneous establishment of a consulting relationship by the Company or a
Subsidiary with the former employee. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to
Termination of Employment, including, but not by way of limitation, the question
of whether a Termination of Employment resulted from a discharge for good cause,
and all questions of whether a particular leave of absence constitutes a
Termination of Employment; PROVIDED, HOWEVER, that, with respect to Incentive
Stock Options, unless otherwise determined by the Administrator in its
discretion, a leave of absence, change in status from an employee to an
independent contractor or other change in the employee-employer relationship
shall constitute a Termination of Employment if, and to the extent that, such
leave of absence, change in status or other change interrupts employment for the
purposes of Section 422(a)(2) of the Code and the then applicable regulations
and revenue rulings under said Section.

                                       4
<PAGE>

                                   ARTICLE II.

                             SHARES SUBJECT TO PLAN

         2.1. SHARES SUBJECT TO PLAN.

                  (a) The shares of stock subject to Awards shall be Common
         Stock, initially shares of the Company's Common Stock. Subject to
         adjustment as provided in Section 10.3, the aggregate number of such
         shares which may be issued with respect to Awards granted under the
         Plan shall not exceed 10,000,000. The shares of Common Stock issuable
         with respect to such Awards may be either previously authorized but
         unissued shares or treasury shares.

                  (b) The maximum number of shares which may be subject to all
         Awards granted under the Plan to any individual in any calendar year
         shall not exceed the Award Limit. To the extent required by Section
         162(m) of the Code, shares subject to Options which are canceled
         continue to be counted against the Award Limit.

         2.2. ADD-BACK OF OPTIONS AND OTHER RIGHTS. If any Option, or other
right to acquire shares of Common Stock under any other Award under the Plan,
expires or is canceled without having been fully exercised, or is exercised in
whole or in part for cash as permitted by the Plan, the number of shares subject
to such Option or other right but as to which such Option or other right was not
exercised prior to its expiration, cancellation or exercise may again be
optioned, granted or awarded hereunder, subject to the limitations of Section
2.1. Furthermore, any shares subject to Awards which are adjusted pursuant to
Section 10.3 and become exercisable with respect to shares of stock of another
corporation shall be considered cancelled and may again be optioned, granted or
awarded hereunder, subject to the limitations of Section 2.1. Shares of Common
Stock which are delivered by the Holder or withheld by the Company upon the
exercise of any Award under the Plan, in payment of the exercise price thereof
or tax withholding thereon, may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 2.1. If any shares of Restricted Stock are
surrendered by the Holder or repurchased by the Company pursuant to Section 7.4
or 7.5 hereof, such shares may again be optioned, granted or awarded hereunder,
subject to the limitations of Section 2.1. Notwithstanding the provisions of
this Section 2.2, no shares of Common Stock may again be optioned, granted or
awarded if such action would cause an Incentive Stock Option to fail to qualify
as an incentive stock option under Section 422 of the Code.

                                  ARTICLE III.

                               GRANTING OF AWARDS

         3.1. AWARD AGREEMENT. Each Award shall be evidenced by an Award
Agreement. Award Agreements evidencing Awards intended to qualify as
performance-based compensation as described in Section 162(m)(4)(C) of the Code
shall contain such terms and conditions as may be necessary to meet the
applicable provisions of Section 162(m) of the Code. Award Agreements evidencing
Incentive Stock Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of Section 422 of the Code.

                                       5
<PAGE>

         3.2. PROVISIONS APPLICABLE TO SECTION 162(M) PARTICIPANTS.

                  (a) The Committee, in its discretion, may determine whether an
         Award is to qualify as performance-based compensation as described in
         Section 162(m)(4)(C) of the Code.

                  (b) Notwithstanding anything in the Plan to the contrary, the
         Committee may grant any Award to a Section 162(m) Participant,
         including Restricted Stock the restrictions with respect to which lapse
         upon the attainment of performance goals which are related to one or
         more of the Performance Criteria and any performance or incentive award
         described in Article VIII that vests or becomes exercisable or payable
         upon the attainment of performance goals which are related to one or
         more of the Performance Criteria.

                  (c) To the extent necessary to comply with the
         performance-based compensation requirements of Section 162(m)(4)(C) of
         the Code, with respect to any Award granted under Articles VII and VIII
         which may be granted to one or more Section 162(m) Participants, no
         later than ninety (90) days following the commencement of any fiscal
         year in question or any other designated fiscal period or period of
         service (or such other time as may be required or permitted by Section
         162(m) of the Code), the Committee shall, in writing, (i) designate one
         or more Section 162(m) Participants, (ii) select the Performance
         Criteria applicable to the fiscal year or other designated fiscal
         period or period of service, (iii) establish the various performance
         targets, in terms of an objective formula or standard, and amounts of
         such Awards, as applicable, which may be earned for such fiscal year or
         other designated fiscal period or period of service, and (iv) specify
         the relationship between Performance Criteria and the performance
         targets and the amounts of such Awards, as applicable, to be earned by
         each Section 162(m) Participant for such fiscal year or other
         designated fiscal period or period of service. Following the completion
         of each fiscal year or other designated fiscal period or period of
         service, the Committee shall certify in writing whether the applicable
         performance targets have been achieved for such fiscal year or other
         designated fiscal period or period of service. In determining the
         amount earned by a Section 162(m) Participant, the Committee shall have
         the right to reduce (but not to increase) the amount payable at a given
         level of performance to take into account additional factors that the
         Committee may deem relevant to the assessment of individual or
         corporate performance for the fiscal year or other designated fiscal
         period or period of service.

                  (d) Furthermore, notwithstanding any other provision of the
         Plan or any Award which is granted to a Section 162(m) Participant and
         is intended to qualify as performance-based compensation as described
         in Section 162(m)(4)(C) of the Code shall be subject to any additional
         limitations set forth in Section 162(m) of the Code (including any
         amendment to Section 162(m) of the Code) or any regulations or rulings
         issued thereunder that are requirements for qualification as
         performance-based compensation as described in Section 162(m)(4)(C) of
         the Code, and the Plan shall be deemed amended to the extent necessary
         to conform to such requirements.

                                       6
<PAGE>

         3.3. LIMITATIONS APPLICABLE TO SECTION 16 PERSONS. Notwithstanding any
other provision of the Plan, the Plan, and any Award granted or awarded to any
individual who is then subject to Section 16 of the Exchange Act, shall be
subject to any additional limitations set forth in any applicable exemptive rule
under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of
the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, the Plan and Awards granted or
awarded hereunder shall be deemed amended to the extent necessary to conform to
such applicable exemptive rule.

         3.3. CONSIDERATION. In consideration of the granting of an Award under
the Plan, the Holder shall agree, in the Award Agreement, to remain in the
employ of (or to consult for or to serve as a Director of, as applicable) the
Company or any Subsidiary for a period of at least one year (or such shorter
period as may be fixed in the Award Agreement or by action of the Administrator
following grant of the Award) after the Award is granted (or, in the case of an
Independent Director, until the next annual meeting of stockholders of the
Company).

         3.4. AT-WILL EMPLOYMENT. Nothing in the Plan or in any Award Agreement
hereunder shall confer upon any Holder any right to continue in the employ of,
or as a Consultant for, the Company or any Subsidiary, or as a Director of the
Company, or shall interfere with or restrict in any way the rights of the
Company and any Subsidiary, which are hereby expressly reserved, to discharge
any Holder at any time for any reason whatsoever, with or without cause, except
to the extent expressly provided otherwise in a written employment agreement
between the Holder and the Company and any Subsidiary.

                                   ARTICLE IV.

                        GRANTING OF OPTIONS TO EMPLOYEES,
                      CONSULTANTS AND INDEPENDENT DIRECTORS

         4.1. ELIGIBILITY. Any Employee or Consultant selected by the Committee
pursuant to Section 4.4(a)(i) shall be eligible to be granted an Option. Each
Independent Director of the Company shall be eligible to be granted Options at
the times and in the manner set forth in Section 4.5.

         4.2. DISQUALIFICATION FOR STOCK OWNERSHIP. No person may be granted an
Incentive Stock Option under the Plan if such person, at the time the Incentive
Stock Option is granted, owns stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or any then
existing Subsidiary or parent corporation (within the meaning of Section 424(e)
of the Code) unless such Incentive Stock Option conforms to the applicable
provisions of Section 422 of the Code.

         4.3. QUALIFICATION OF INCENTIVE STOCK OPTIONS. No Incentive Stock
Option shall be granted to any person who is not an Employee.

                                       7
<PAGE>

         4.4. GRANTING OF OPTIONS TO EMPLOYEES AND CONSULTANTS.

                  (a) The Committee shall from time to time, in its absolute
         discretion, and subject to applicable limitations of the Plan:

                           (i) Determine which Employees are key Employees and
                  select from among the key Employees or Consultants (including
                  Employees or Consultants who have previously received Awards
                  under the Plan) such of them as in its opinion should be
                  granted Options;

                           (ii) Subject to Section 2.1(b), determine the number
                  of shares to be subject to such Options granted to the
                  selected key Employees or Consultants;

                           (iii) Subject to Section 4.3, determine whether such
                  Options are to be Incentive Stock Options or Non-Qualified
                  Stock Options and whether such Options are to qualify as
                  performance-based compensation as described in Section
                  162(m)(4)(C) of the Code; and

                           (iv) Determine the terms and conditions of such
                  Options, consistent with the Plan; PROVIDED, HOWEVER, that the
                  terms and conditions of Options intended to qualify as
                  performance-based compensation as described in Section
                  162(m)(4)(C) of the Code shall include, but not be limited to,
                  such terms and conditions as may be necessary to meet the
                  applicable provisions of Section 162(m) of the Code.

                  (b) Upon the selection of a key Employee or Consultant to be
         granted an Option, the Committee shall instruct the Secretary of the
         Company to issue the Option and may impose such conditions on the grant
         of the Option as it deems appropriate.

                  (c) Any Incentive Stock Option granted under the Plan may be
         modified by the Committee, with the consent of the Holder, to
         disqualify such Option from treatment as an "incentive stock option"
         under Section 422 of the Code.

         4.5. GRANTING OF OPTIONS TO INDEPENDENT DIRECTORS. The Board shall from
time to time, in its absolute discretion, and subject to applicable limitations
of the Plan:

                  (a) Select from among the Independent Directors (including
         Independent Directors who have previously received Options under the
         Plan) such of them as in its opinion should be granted Options;

                  (b) Subject to Section 2.1(b), determine the number of shares
         to be subject to such Options granted to the selected Independent
         Directors; and

                  (c) Subject to the provisions of Article 5, determine the
         terms and conditions of such Options, consistent with the Plan.

                                       8
<PAGE>

         All the foregoing Option grants authorized by this Section 4.5 are
subject to stockholder approval of the Plan.

         4.6. OPTIONS IN LIEU OF CASH COMPENSATION. Options may be granted under
the Plan to Employees and Consultants in lieu of cash bonuses which would
otherwise be payable to such Employees and Consultants and to Independent
Directors in lieu of directors' fees which would otherwise be payable to such
Independent Directors, pursuant to such policies which may be adopted by the
Administrator from time to time.

                                   ARTICLE V.

                                TERMS OF OPTIONS

         5.1. OPTION PRICE. The price per share of the shares subject to each
Option granted to Employees and Consultants shall be set by the Committee;
PROVIDED, HOWEVER, that such price shall be no less than 85% of the Fair Market
Value of a share of Common Stock on the date the Option is granted and:

                  (a) In the case of Options intended to qualify as
         performance-based compensation as described in Section 162(m)(4)(C) of
         the Code, such price shall not be less than 100% of the Fair Market
         Value of a share of Common Stock on the date the Option is granted;

                  (b) In the case of Incentive Stock Options such price shall
         not be less than 100% of the Fair Market Value of a share of Common
         Stock on the date the Option is granted (or the date the Option is
         modified, extended or renewed for purposes of Section 424(h) of the
         Code);

                  (c) In the case of Incentive Stock Options granted to an
         individual then owning (within the meaning of Section 424(d) of the
         Code) more than 10% of the total combined voting power of all classes
         of stock of the Company or any Subsidiary or parent corporation thereof
         (within the meaning of Section 424(e) of the Code), such price shall
         not be less than 110% of the Fair Market Value of a share of Common
         Stock on the date the Option is granted (or the date the Option is
         modified, extended or renewed for purposes of Section 424(h) of the
         Code).

         5.2. OPTION TERM. The term of an Option granted to an Employee or
Consultant shall be set by the Committee in its discretion; PROVIDED, HOWEVER,
that, in the case of Incentive Stock Options, the term shall not be more than 10
years from the date the Incentive Stock Option is granted, or five years from
the date the Incentive Stock Option is granted if the Incentive Stock Option is
granted to an individual then owning (within the meaning of Section 424(d) of
the Code) more than 10% of the total combined voting power of all classes of
stock of the Company or any Subsidiary or parent corporation thereof (within the
meaning of Section 424(e) of the Code). Except as limited by requirements of
Section 422 of the Code and regulations and rulings thereunder applicable to
Incentive Stock Options, the Committee may extend the term of any outstanding
Option in connection with any Termination of Employment or Termination of
Consultancy of the Holder, or amend any other term or condition of such Option
relating to such a termination.

                                       9
<PAGE>

         5.3. OPTION VESTING.

                  (a) The period during which the right to exercise, in whole or
         in part, an Option granted to an Employee or a Consultant vests in the
         Holder shall be set by the Committee and the Committee may determine
         that an Option may not be exercised in whole or in part for a specified
         period after it is granted. At any time after grant of an Option, the
         Committee may, in its sole and absolute discretion and subject to
         whatever terms and conditions it selects, accelerate the period during
         which an Option granted to an Employee or Consultant vests.

                  (b) No portion of an Option granted to an Employee or
         Consultant which is unexercisable at Termination of Employment or
         Termination of Consultancy, as applicable, shall thereafter become
         exercisable, except as may be otherwise provided by the Committee
         either in the Award Agreement or by action of the Committee following
         the grant of the Option.

                  (c) To the extent that the aggregate Fair Market Value of
         stock with respect to which "incentive stock options" (within the
         meaning of Section 422 of the Code, but without regard to Section
         422(d) of the Code) are exercisable for the first time by a Holder
         during any calendar year (under the Plan and all other incentive stock
         option plans of the Company and any parent or subsidiary corporation,
         within the meaning of Section 422 of the Code) of the Company, exceeds
         $100,000, such Options shall be treated as Non-Qualified Stock Options
         to the extent required by Section 422 of the Code. The rule set forth
         in the preceding sentence shall be applied by taking Options into
         account in the order in which they were granted. For purposes of this
         Section 5.3(c), the Fair Market Value of stock shall be determined as
         of the time the Option with respect to such stock is granted.

         5.4. TERMS OF OPTIONS GRANTED TO INDEPENDENT DIRECTORS. The price per
share of the shares subject to each Option granted to an Independent Director
shall be no less than 100% of the Fair Market Value of a share of Common Stock
on the date the Option is granted. Options granted to Independent Directors
shall become exercisable as provided in the Award Agreement evidencing such
Option. Subject to Section 6.6, the term of each Option granted to an
Independent Director shall be 10 years from the date the Option is granted. No
portion of an Option which is unexercisable at Termination of Directorship shall
thereafter become exercisable.

         5.5. SUBSTITUTE AWARDS. Notwithstanding the foregoing provisions of
this Article V to the contrary, in the case of an Option that is a Substitute
Award, the price per share of the shares subject to such Option may be less than
the Fair Market Value per share on the date of grant, PROVIDED, that the excess
of:

                  (a) The aggregate Fair Market Value (as of the date such
         Substitute Award is granted) of the shares subject to the Substitute
         Award; over

                                       10
<PAGE>

                  (b) The aggregate exercise price thereof;

does not exceed the excess of:

                  (c) The aggregate fair market value (as of the time
         immediately preceding the transaction giving rise to the Substitute
         Award, such fair market value to be determined by the Committee) of the
         shares of the predecessor entity that were subject to the grant assumed
         or substituted for by the Company; over

                  (d) The aggregate exercise price of such shares.

                                   ARTICLE VI.

                               EXERCISE OF OPTIONS

         6.1. PARTIAL EXERCISE. An exercisable Option may be exercised in whole
or in part. However, an Option shall not be exercisable with respect to
fractional shares and the Administrator may require that, by the terms of the
Option, a partial exercise be with respect to a minimum number of shares.

         6.2. MANNER OF EXERCISE. All or a portion of an exercisable Option
shall be deemed exercised upon delivery of all of the following to the Secretary
of the Company or his or her office:

                  (a) A written notice complying with the applicable rules
         established by the Administrator stating that the Option, or a portion
         thereof, is exercised. The notice shall be signed by the Holder or
         other person then entitled to exercise the Option or such portion of
         the Option;

                  (b) Such representations and documents as the Administrator,
         in its absolute discretion, deems necessary or advisable to effect
         compliance with all applicable provisions of the Securities Act and any
         other federal or state securities laws or regulations. The
         Administrator may, in its absolute discretion, also take whatever
         additional actions it deems appropriate to effect such compliance
         including, without limitation, placing legends on share certificates
         and issuing stop-transfer notices to agents and registrars;

                  (c) In the event that the Option shall be exercised pursuant
         to Section 10.1 by any person or persons other than the Holder,
         appropriate proof of the right of such person or persons to exercise
         the Option; and

                  (d) Full cash payment to the Secretary of the Company for the
         shares with respect to which the Option, or portion thereof, is
         exercised. However, the Administrator may, in its discretion, (i) allow
         payment, in whole or in part, through the delivery of shares of Common
         Stock which have been owned by the Holder for at least six months, duly
         endorsed for transfer to the Company with a Fair Market Value on the
         date of delivery equal to the aggregate exercise price of the Option or
         exercised portion thereof; (ii) allow payment, in whole or in part,
         through the surrender of shares of Common Stock then issuable upon

                                       11
<PAGE>

         exercise of the Option having a Fair Market Value on the date of Option
         exercise equal to the aggregate exercise price of the Option or
         exercised portion thereof; (iii) allow payment, in whole or in part,
         through the delivery of property of any kind which constitutes good and
         valuable consideration; (iv) allow payment, in whole or in part,
         through the delivery of a notice that the Holder has placed a market
         sell order with a broker with respect to shares of Common Stock then
         issuable upon exercise of the Option, and that the broker has been
         directed to pay a sufficient portion of the net proceeds of the sale to
         the Company in satisfaction of the Option exercise price, PROVIDED that
         payment of such proceeds is then made to the Company upon settlement of
         such sale; or (v) allow payment through any combination of the
         consideration provided in the foregoing subparagraphs (i), (ii), (iii)
         and (iv). Payment in any manner prescribed by the preceding sentences
         shall not be permitted to the extent the Administrator determines that
         payment in such manner may result in an extension or maintenance of
         credit, an arrangement for the extension of credit, or a renewal of an
         extension of credit in the form of a personal loan to or for any
         Director or executive officer of the Company that is prohibited by
         Section 13(k) of the Exchange Act or other applicable law.

         6.3. CONDITIONS TO ISSUANCE OF STOCK CERTIFICATES. The Company shall
not be required to issue or deliver any certificate or certificates for shares
of stock purchased upon the exercise of any Option or portion thereof prior to
fulfillment of all of the following conditions:

                  (a) The admission of such shares to listing on all stock
         exchanges on which such class of stock is then listed;

                  (b) The completion of any registration or other qualification
         of such shares under any state or federal law, or under the rulings or
         regulations of the Securities and Exchange Commission or any other
         governmental regulatory body which the Administrator shall, in its
         absolute discretion, deem necessary or advisable;

                  (c) The obtaining of any approval or other clearance from any
         state or federal governmental agency which the Administrator shall, in
         its absolute discretion, determine to be necessary or advisable;

                  (d) The lapse of such reasonable period of time following the
         exercise of the Option as the Administrator may establish from time to
         time for reasons of administrative convenience; and

                  (e) The receipt by the Company of full payment for such
         shares, including payment of any applicable withholding tax, which in
         the discretion of the Administrator may be in the form of consideration
         used by the Holder to pay for such shares under Section 6.2(d).

         6.4. RIGHTS AS STOCKHOLDERS. Holders shall not be, nor have any of the
rights or privileges of, stockholders of the Company in respect of any shares
purchasable upon the exercise of any part of an Option unless and until
certificates representing such shares have been issued by the Company to such
Holders.

                                       12
<PAGE>

         6.5. EXERCISE, OWNERSHIP AND TRANSFER RESTRICTIONS. The Administrator,
in its absolute discretion, may impose such restrictions on the exercise of an
Option and the ownership and transferability of the shares purchasable upon the
exercise of an Option as it deems appropriate. Any such restriction shall be set
forth in the respective Award Agreement and may be referred to on the
certificates evidencing such shares. The Holder shall give the Company prompt
notice of any disposition of shares of Common Stock acquired by exercise of an
Incentive Stock Option within (a) two years from the date of granting (including
the date the Option is modified, extended or renewed for purposes of Section
424(h) of the Code) such Option to such Holder, or (b) one year after the
transfer of such shares to such Holder.

         6.6. LIMITATIONS ON EXERCISE OF OPTIONS GRANTED TO INDEPENDENT
DIRECTORS. No Option granted to an Independent Director may be exercised to any
extent by anyone after the first to occur of the following events:

                  (a) The expiration of 12 months from the date of the Holder's
         death;

                  (b) The expiration of 12 months from the date of the Holder's
         Termination of Directorship by reason of his or her permanent and total
         disability (within the meaning of Section 22(e)(3) of the Code);

                  (c) The expiration of three months from the date of the
         Holder's Termination of Directorship for any reason other than such
         Holder's death or his or her permanent and total disability, unless the
         Holder dies within said three-month period; or

                  (d) The expiration of 10 years from the date the Option was
         granted.

         6.7. ADDITIONAL LIMITATIONS ON EXERCISE OF OPTIONS. Holders may be
required to comply with any timing or other restrictions with respect to the
settlement or exercise of an Option, including a window-period limitation, as
may be imposed in the discretion of the Administrator.

                                  ARTICLE VII.

                            AWARD OF RESTRICTED STOCK

         7.1. ELIGIBILITY.

                  (a) Subject to Section 2.1(b), Restricted Stock may be awarded
         to any Employee whom the Administrator determines is a key Employee or
         any Independent Director or Consultant who the Administrator determines
         should receive such an Award.

                  (b) Notwithstanding anything in the Plan to the contrary, any
         person (1) who was an Employee of the Company as of October 31, 2003,
         (2) incurred a Termination of Employment prior to stockholder approval
         of the Plan, and (3) who the Administrator determines should receive an
         Award of Restricted Stock under the Plan, shall be eligible for a

                                       13
<PAGE>

         one-time grant of Restricted Stock under the Plan, which Restricted
         Stock may only be granted by the Administrator, if at all, on the date
         the Plan is approved by the Company's stockholders. No Award may be
         granted under the Plan to an individual described in this Section
         7.1(b) at any time after the date the Plan is approved by the
         stockholders of the Company, unless such individual otherwise satisfies
         the eligibility requirements for Awards under the Plan. The terms and
         conditions of any Restricted Stock awarded under this Section 7.1(b)
         shall be determined by the Administrator, in its sole discretion,
         subject to the terms of the Plan.

         7.2. AWARD OF RESTRICTED STOCK.

                  (a) The Administrator may from time to time, in its absolute
         discretion:

                           (i) Determine which Employees are key Employees and
                  select from among the key Employees, Independent Directors or
                  Consultants (including Employees, Independent Directors or
                  Consultants who have previously received other awards under
                  the Plan) such of them as in its opinion should be awarded
                  Restricted Stock; and

                           (ii) Determine the purchase price, if any, and other
                  terms and conditions applicable to such Restricted Stock,
                  consistent with the Plan.

                  (b) The Administrator shall establish the purchase price, if
         any, and form of payment for Restricted Stock; PROVIDED, HOWEVER, that
         such purchase price shall be no less than the par value of the Common
         Stock to be purchased, unless otherwise permitted by applicable state
         law. In all cases, legal consideration shall be required for each
         issuance of Restricted Stock.

                  (c) Upon the selection of a key Employee, Independent Director
         or Consultant to be awarded Restricted Stock, the Administrator shall
         instruct the Secretary of the Company to issue such Restricted Stock
         and may impose such conditions on the issuance of such Restricted Stock
         as it deems appropriate.

         7.3. RIGHTS AS STOCKHOLDERS. Subject to Section 7.4, upon delivery of
the shares of Restricted Stock to the escrow holder pursuant to Section 7.6, the
Holder shall have, unless otherwise provided by the Administrator, all the
rights of a stockholder with respect to said shares, subject to the restrictions
in his or her Award Agreement, including the right to receive all dividends and
other distributions paid or made with respect to the shares; PROVIDED, HOWEVER,
that in the discretion of the Administrator, any extraordinary distributions
with respect to the Common Stock shall be subject to the restrictions set forth
in Section 7.4.

         7.4. RESTRICTION. All shares of Restricted Stock issued under the Plan
(including any shares received by holders thereof with respect to shares of
Restricted Stock as a result of stock dividends, stock splits or any other form
of recapitalization) shall, in the terms of each individual Award Agreement, be
subject to such restrictions as the Administrator shall provide, which
restrictions may include, without limitation, restrictions concerning voting

                                       14
<PAGE>

rights and transferability and restrictions based on duration of employment or
service with the Company, Company performance and individual performance;
PROVIDED, HOWEVER, that, except with respect to shares of Restricted Stock
granted to Section 162(m) Participants, by action taken after the Restricted
Stock is issued, the Administrator may, on such terms and conditions as it may
determine to be appropriate, remove any or all of the restrictions imposed by
the terms of the Award Agreement. Restricted Stock may not be sold or encumbered
until all restrictions are terminated or expire. If no consideration was paid by
the Holder upon issuance, a Holder's rights in unvested Restricted Stock shall
lapse, and such Restricted Stock shall be surrendered to the Company without
consideration, upon Termination of Employment or, if applicable, upon
Termination of Consultancy or Termination of Directorship with the Company.

         7.5. REPURCHASE OF RESTRICTED STOCK. The Administrator may, in its sole
discretion, provide in the terms of each individual Award Agreement that the
Company shall have the right to repurchase from the Holder the Restricted Stock
then subject to restrictions under the Award Agreement immediately upon a
Termination of Employment or, if applicable, upon a Termination of Consultancy
or Termination of Directorship between the Holder and the Company, at a cash
price per share equal to the price paid by the Holder for such Restricted Stock,
if any.

         7.6. ESCROW. The Secretary of the Company or such other escrow holder
as the Administrator may appoint shall retain physical custody of each
certificate representing Restricted Stock until all of the restrictions imposed
under the Award Agreement with respect to the shares evidenced by such
certificate expire or shall have been removed.

         7.7. LEGEND. In order to enforce the restrictions imposed upon shares
of Restricted Stock hereunder, the Administrator shall cause a legend or legends
to be placed on certificates representing all shares of Restricted Stock that
are still subject to restrictions under Award Agreements, which legend or
legends shall make appropriate reference to the conditions imposed thereby.

         7.8. SECTION 83(b) ELECTION. If a Holder makes an election under
Section 83(b) of the Code, or any successor section thereto, to be taxed with
respect to the Restricted Stock as of the date of transfer of the Restricted
Stock rather than as of the date or dates upon which the Holder would otherwise
be taxable under Section 83(a) of the Code, the Holder shall deliver a copy of
such election to the Company immediately after filing such election with the
Internal Revenue Service.

                                  ARTICLE VIII.

                                 DEFERRED STOCK

         8.1. DEFERRED STOCK. Any key Employee or Consultant selected by the
Committee may be granted an award of Deferred Stock in the manner determined
from time to time by the Committee. The number of shares of Deferred Stock shall
be determined by the Committee and may be linked to the Performance Criteria or
other specific performance criteria determined to be appropriate by the

                                       15
<PAGE>

Committee, in each case on a specified date or dates or over any period or
periods determined by the Committee. Common Stock underlying a Deferred Stock
award will not be issued until the Deferred Stock award has vested, pursuant to
a vesting schedule or performance criteria set by the Committee. Unless
otherwise provided by the Committee, a Holder of Deferred Stock shall have no
rights as a Company stockholder with respect to such Deferred Stock until such
time as the Award has vested and the Common Stock underlying the Award has been
issued.

                                   ARTICLE IX.

                                 ADMINISTRATION

         9.1. COMPENSATION COMMITTEE. The Compensation Committee (or another
committee or a subcommittee of the Board assuming the functions of the Committee
under the Plan) shall consist solely of two or more Independent Directors
appointed by and holding office at the pleasure of the Board, each of whom is
both a "non-employee director" as defined by Rule 16b-3 and an "outside
director" for purposes of Section 162(m) of the Code. Appointment of Committee
members shall be effective upon acceptance of appointment. Committee members may
resign at any time by delivering written notice to the Board. Vacancies in the
Committee may be filled by the Board.

         9.2. DUTIES AND POWERS OF COMMITTEE. It shall be the duty of the
Committee to conduct the general administration of the Plan in accordance with
its provisions. The Committee shall have the power to interpret the Plan and the
Award Agreements, and to adopt such rules for the administration, interpretation
and application of the Plan as are consistent therewith, to interpret, amend or
revoke any such rules. Interpretations and rules with respect to Incentive Stock
Options shall be consistent with the provisions of Section 422 of the Code. The
Committee shall also have the power to amend any Award Agreement provided that
the rights or obligations of the Holder of the Award that is the subject of any
such Award Agreement are not affected adversely; PROVIDED, HOWEVER, that without
the approval of the stockholders of the Company, neither the Committee nor the
Board shall authorize the amendment of any outstanding Option to reduce its
exercise price. Notwithstanding anything contained herein, no Option shall be
canceled and replaced with the grant of an Option having a lower exercise price
without the approval of the stockholders of the Company. Grants or awards under
the Plan need not be the same with respect to each Holder. In its absolute
discretion, the Board may at any time and from time to time exercise any and all
rights and duties of the Committee under the Plan except with respect to matters
which under Rule 16b-3 or Section 162(m) of the Code, or any regulations or
rules issued thereunder, are required to be determined in the sole discretion of
the Committee. Notwithstanding the foregoing, the full Board, acting by a
majority of its members in office, shall conduct the general administration of
the Plan with respect to Awards granted to Independent Directors.

                                       16
<PAGE>

         9.3. MAJORITY RULE; UNANIMOUS WRITTEN CONSENT. The Committee shall act
by a majority of its members in attendance at a meeting at which a quorum is
present or by a memorandum or other written instrument signed by all members of
the Committee.

         9.4. COMPENSATION; PROFESSIONAL ASSISTANCE; GOOD FAITH ACTIONS. Members
of the Committee shall receive such compensation, if any, for their services as
members as may be determined by the Board. All expenses and liabilities which
members of the Committee incur in connection with the administration of the Plan
shall be borne by the Company. The Committee may, with the approval of the
Board, employ attorneys, consultants, accountants, appraisers, brokers or other
persons. The Committee, the Company and the Company's officers and Directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons. All actions taken and all interpretations and determinations made by
the Committee or the Board in good faith shall be final and binding upon all
Holders, the Company and all other interested persons. No members of the
Committee or Board shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or Awards, and all
members of the Committee and the Board shall be fully protected by the Company
in respect of any such action, determination or interpretation.

         9.5. DELEGATION OF AUTHORITY TO GRANT AWARDS. The Committee may, but
need not, delegate from time to time some or all of its authority to grant
Awards under the Plan to a committee consisting of one or more members of the
Committee or of one or more officers of the Company; PROVIDED, HOWEVER, that the
Committee may not delegate its authority to grant Awards to individuals (a) who
are subject on the date of the grant to the reporting rules under Section 16(a)
of the Exchange Act, (b) who are Section 162(m) Participants, or (c) who are
officers of the Company who are delegated authority by the Committee hereunder.
Any delegation hereunder shall be subject to the restrictions and limits that
the Committee specifies at the time of such delegation of authority and may be
rescinded at any time by the Committee. At all times, any committee appointed
under this Section 10.5 shall serve in such capacity at the pleasure of the
Committee.

                                   ARTICLE X.

                            MISCELLANEOUS PROVISIONS

         10.1. NOT TRANSFERABLE.

                  (a) No Award under the Plan may be sold, pledged, assigned or
         transferred in any manner other than by will or the laws of descent and
         distribution or, subject to the consent of the Administrator, pursuant
         to a DRO, unless and until such Award has been exercised, or the shares
         underlying such Award have been issued, and all restrictions applicable
         to such shares have lapsed. No Award or interest or right therein shall
         be liable for the debts, contracts or engagements of the Holder or his
         or her successors in interest or shall be subject to disposition by
         transfer, alienation, anticipation, pledge, encumbrance, assignment or
         any other means whether such disposition be voluntary or involuntary or
         by operation of law by judgment, levy, attachment, garnishment or any
         other legal or equitable proceedings (including bankruptcy), and any
         attempted disposition thereof shall be null and void and of no effect,
         except to the extent that such disposition is permitted by the
         preceding sentence.

                                       17
<PAGE>

                  (b) During the lifetime of the Holder, only he or she may
         exercise an Option or other Award (or any portion thereof) granted to
         him or her under the Plan, unless it has been disposed of with the
         consent of the Administrator pursuant to a DRO. After the death of the
         Holder, any exercisable portion of an Option or other Award may, prior
         to the time when such portion becomes unexercisable under the Plan or
         the applicable Award Agreement, be exercised by his or her personal
         representative or by any person empowered to do so under the deceased
         Holder's will or under the then applicable laws of descent and
         distribution.

         10.2. AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN. Except as
otherwise provided in this Section 10.2, the Plan may be wholly or partially
amended or otherwise modified, suspended or terminated at any time or from time
to time by the Administrator. However, without approval of the Company's
stockholders before or after the action by the Administrator, no action of the
Administrator may, except as provided in Section 10.3, increase the limits
imposed in Section 2.1 on the maximum number of shares which may be issued under
the Plan, and no action of the Administrator may be taken that would otherwise
require approval by the Company's stockholders as a matter of applicable law,
regulation or rule. No amendment, suspension or termination of the Plan shall,
without the consent of the Holder, alter or impair any rights or obligations
under any Award theretofore granted or awarded, unless the Award itself
otherwise expressly so provides. No Awards may be granted or awarded during any
period of suspension or after termination of the Plan, and in no event may any
Incentive Stock Option be granted under the Plan after the first to occur of the
following events:

                  (a) The expiration of 10 years from the date the Plan is
         adopted by the Board; or

                  (b) The expiration of 10 years from the date the Plan is
         approved by the Company's stockholders under Section 10.4.

         10.3. CHANGES IN COMMON STOCK OR ASSETS OF THE COMPANY, ACQUISITION OR
LIQUIDATION OF THE COMPANY AND OTHER CORPORATE EVENTS.

                  (a) Subject to Section 10.3(e), in the event that the
         Administrator determines that any dividend or other distribution
         (whether in the form of cash, Common Stock, other securities or other
         property), recapitalization, reclassification, stock split, reverse
         stock split, reorganization, merger, consolidation, split-up, spin-off,
         combination, repurchase, liquidation, dissolution, or sale, transfer,
         exchange or other disposition of all or substantially all of the assets
         of the Company, or exchange of Common Stock or other securities of the
         Company, issuance of warrants or other rights to purchase Common Stock
         or other securities of the Company, or other similar corporate
         transaction or event, in the Administrator's sole discretion, affects
         the Common Stock such that an adjustment is determined by the
         Administrator to be appropriate in order to prevent dilution or
         enlargement of the benefits or potential benefits intended to be made
         available under the Plan or with respect to an Award, then the
         Administrator shall, in such manner as it may deem equitable, adjust
         any or all of:

                                       18
<PAGE>

                           (i) The number and kind of shares of Common Stock (or
                  other securities or property) with respect to which Awards may
                  be granted or awarded (including, but not limited to,
                  adjustments of the limitations in Section 2.1 on the maximum
                  number and kind of shares which may be issued and adjustments
                  of the Award Limit);

                           (ii) The number and kind of shares of Common Stock
                  (or other securities or property) subject to outstanding
                  Awards; and

                           (iii) The grant or exercise price with respect to any
                  Award.

                  (b) Subject to Sections 9.3(c) and 9.3(e), in the event of any
         transaction or event described in Section 10.3(a) or any unusual or
         nonrecurring transactions or events affecting the Company, any
         affiliate of the Company, or the financial statements of the Company or
         any affiliate, or of changes in applicable laws, regulations or
         accounting principles, the Administrator, in its sole and absolute
         discretion, and on such terms and conditions as it deems appropriate,
         either by the terms of the Award or by action taken prior to the
         occurrence of such transaction or event and either automatically or
         upon the Holder's request, is hereby authorized to take any one or more
         of the following actions whenever the Administrator determines that
         such action is appropriate in order to prevent dilution or enlargement
         of the benefits or potential benefits intended to be made available
         under the Plan or with respect to any Award under the Plan, to
         facilitate such transactions or events or to give effect to such
         changes in laws, regulations or principles:

                           (i) To provide for either the purchase of any such
                  Award for an amount of cash equal to the amount that could
                  have been attained upon the exercise of such Award or
                  realization of the Holder's rights had such Award been
                  currently exercisable or payable or fully vested or the
                  replacement of such Award with other rights or property
                  selected by the Administrator in its sole discretion;

                           (ii) To provide that the Award cannot vest, be
                  exercised or become payable after such event;

                           (iii) To provide that such Award shall be exercisable
                  as to all shares covered thereby, notwithstanding anything to
                  the contrary in Section 5.3 or 5.4 or the provisions of such
                  Award;

                           (iv) To provide that such Award be assumed by the
                  successor or survivor corporation, or a parent or subsidiary
                  thereof, or shall be substituted for by similar options,
                  rights or awards covering the stock of the successor or
                  survivor corporation, or a parent or subsidiary thereof, with
                  appropriate adjustments as to the number and kind of shares
                  and prices; and

                                       19
<PAGE>

                           (v) To make adjustments in the number and type of
                  shares of Common Stock (or other securities or property)
                  subject to outstanding Awards, and in the number and kind of
                  outstanding Restricted Stock and/or in the terms and
                  conditions of (including the grant or exercise price), and the
                  criteria included in, outstanding options, rights and awards
                  and options, rights and awards which may be granted in the
                  future.

                           (vi) To provide that, for a specified period of time
                  prior to such event, the restrictions imposed under an Award
                  Agreement upon some or all shares of Restricted Stock may be
                  terminated and some or all shares of such Restricted Stock may
                  cease to be subject to repurchase under Section 7.5 or
                  forfeiture under Section 7.4 after such event.

                  (c) Subject to Sections 3.2, 3.3 and 9.3(e), the Administrator
         may, in its discretion, include such further provisions and limitations
         in any Award, agreement or certificate, as it may deem equitable and in
         the best interests of the Company.

                  (d) With respect to Awards which are granted to Section 162(m)
         Participants and are intended to qualify as performance-based
         compensation under Section 162(m)(4)(C), no adjustment or action
         described in this Section 10.3 or in any other provision of the Plan
         shall be authorized to the extent that such adjustment or action would
         cause such Award to fail to so qualify under Section 162(m)(4)(C), or
         any successor provisions thereto. No adjustment or action described in
         this Section 10.3 or in any other provision of the Plan shall be
         authorized to the extent that such adjustment or action would cause the
         Plan to violate Section 422(b)(1) of the Code. Furthermore, no such
         adjustment or action shall be authorized to the extent such adjustment
         or action would result in short-swing profits liability under Section
         16 or violate the exemptive conditions of Rule 16b-3 unless the
         Administrator determines that the Award is not to comply with such
         exemptive conditions. The number of shares of Common Stock subject to
         any Award shall always be rounded to the next whole number.

                  (e) The existence of the Plan, the Award Agreement and the
         Awards granted hereunder shall not affect or restrict in any way the
         right or power of the Company or the shareholders of the Company to
         make or authorize any adjustment, recapitalization, reorganization or
         other change in the Company's capital structure or its business, any
         merger or consolidation of the Company, any issue of stock or of
         options, warrants or rights to purchase stock or of bonds, debentures,
         preferred or prior preference stocks whose rights are superior to or
         affect the Common Stock or the rights thereof or which are convertible
         into or exchangeable for Common Stock, or the dissolution or
         liquidation of the company, or any sale or transfer of all or any part
         of its assets or business, or any other corporate act or proceeding,
         whether of a similar character or otherwise.

                                       20
<PAGE>

         10.4. APPROVAL OF PLAN BY STOCKHOLDERS. The Plan will be submitted for
the approval of the Company's stockholders after the date of the Board's initial
adoption of the Plan, and any amendment to the Plan increasing the aggregate
number of shares of Common Stock issuable under the Plan will be submitted for
the approval of the Company's stockholders after the date of the Board's
adoption of such amendment. Awards may be granted or awarded prior to such
stockholder approval, provided that such Awards shall not be exercisable nor
shall such Awards vest prior to the time when the Plan is approved by the
stockholders, and provided further that if such approval is not obtained, all
Awards previously granted or awarded under the Plan shall thereupon be canceled
and become null and void.

         10.5. TAX WITHHOLDING. The Company shall be entitled to require payment
in cash or deduction from other compensation payable to each Holder of any sums
required by federal, state or local tax law to be withheld with respect to the
issuance, vesting, exercise or payment of any Award. The Administrator may in
its discretion and in satisfaction of the foregoing requirement allow such
Holder to elect to have the Company withhold shares of Common Stock otherwise
issuable under such Award (or allow the return of shares of Common Stock) having
a Fair Market Value equal to the sums required to be withheld. Notwithstanding
any other provision of the Plan, the number of shares of Common Stock which may
be withheld with respect to the issuance, vesting, exercise or payment of any
Award (or which may be repurchased from the Holder of such Award within six
months after such shares of Common Stock were acquired by the Holder from the
Company) in order to satisfy the Holder's federal and state income and payroll
tax liabilities with respect to the issuance, vesting, exercise or payment of
the Award shall be limited to the number of shares which have a Fair Market
Value on the date of withholding or repurchase equal to the aggregate amount of
such liabilities based on the minimum statutory withholding rates for federal
and state tax income and payroll tax purposes that are applicable to such
supplemental taxable income.

         10.6. FORFEITURE PROVISIONS. Pursuant to its general authority to
determine the terms and conditions applicable to Awards under the Plan, the
Administrator shall, to the extent permitted by applicable law, have the right
to provide, in the terms of Awards made under the Plan, or to require a Holder
to agree by separate written instrument, that (a)(i) any proceeds, gains or
other economic benefit actually or constructively received by the Holder upon
any receipt or exercise of the Award, or upon the receipt or resale of any
Common Stock underlying the Award, must be paid to the Company, and (ii) the
Award shall terminate and any unexercised portion of the Award (whether or not
vested) shall be forfeited, if (b)(i) a Termination of Employment, Termination
of Consultancy or Termination of Directorship occurs prior to a specified date,
or within a specified time period following receipt or exercise of the Award, or
(ii) the Holder at any time, or during a specified time period, engages in any
activity in competition with the Company, or which is inimical, contrary or
harmful to the interests of the Company, as further defined by the Administrator
or (iii) the Holder incurs a Termination of Employment, Termination of
Consultancy or Termination of Directorship for cause.

         10.7. EFFECT OF PLAN UPON OPTIONS AND COMPENSATION PLANS. The adoption
of the Plan shall not affect any other compensation or incentive plans in effect
for the Company or any Subsidiary. Nothing in the Plan shall be construed to
limit the right of the Company (a) to establish any other forms of incentives or

                                       21
<PAGE>

compensation for Employees, Directors or Consultants of the Company or any
Subsidiary, or (b) to grant or assume options or other rights or awards
otherwise than under the Plan in connection with any proper corporate purpose
including but not by way of limitation, the grant or assumption of options in
connection with the acquisition by purchase, lease, merger, consolidation or
otherwise, of the business, stock or assets of any corporation, partnership,
limited liability company, firm or association.

         10.8. COMPLIANCE WITH LAWS. The Plan, the granting and vesting of
Awards under the Plan and the issuance and delivery of shares of Common Stock
and the payment of money under the Plan or under Awards granted or awarded
hereunder are subject to compliance with all applicable federal and state laws,
rules and regulations (including but not limited to state and federal securities
law and federal margin requirements) and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for the
Company, be necessary or advisable in connection therewith. Any securities
delivered under the Plan shall be subject to such restrictions, and the person
acquiring such securities shall, if requested by the Company, provide such
assurances and representations to the Company as the Company may deem necessary
or desirable to assure compliance with all applicable legal requirements. To the
extent permitted by applicable law, the Plan and Awards granted or awarded
hereunder shall be deemed amended to the extent necessary to conform to such
laws, rules and regulations.

         10.9. TITLES. Titles are provided herein for convenience only and are
not to serve as a basis for interpretation or construction of the Plan.

                                       22
<PAGE>

         10.10. GOVERNING LAW. The Plan and any agreements hereunder shall be
administered, interpreted and enforced under the internal laws of the State of
California without regard to conflicts of laws thereof.

                                      * * *

         I hereby certify that the foregoing Plan was duly adopted by the Board
of Directors of LifePoint, Inc. on December 5, 2003.

                                    /S/ LINDA H. MASTERSON
                                    --------------------------------------------
                                    Name:  Linda H. Masterson
                                    Title: President and Chief Executive Officer

                                      * * *

         I hereby certify that the foregoing Plan was approved by the
stockholders of LifePoint, Inc. on January 14, 2004.

         Executed on this 14th day of January, 2004.

                                    /S/ LINDA H. MASTERSON
                                    --------------------------------------------
                                    Name:  Linda H. Masterson
                                    Title: President and Chief Executive Officer

                                       23<PAGE>
EXHIBIT 10.92

                         PEREGRINE PHARMACEUTICALS, INC.

                                  COMMON STOCK
                               PURCHASE AGREEMENT

                            UP TO 3,000,000 SHARES OF
                                  COMMON STOCK

                                JANUARY 22, 2004

<PAGE>

                         COMMON STOCK PURCHASE AGREEMENT

This Common Stock Purchase Agreement (this "Agreement") is made and entered into
as of January 22, 2004, by and between Peregrine Pharmaceuticals, Inc., a
Delaware corporation (the "Company"), and Tuva Financial Ltd. (the "Investor").

                                    RECITALS

         WHEREAS, the Company has filed with the Securities and Exchange
Commission ("SEC") a Shelf Registration Statement on Form S-3 No. 333-109982,
which was declared effective by the SEC on November 10, 2003 (the "Form S-3").

         WHEREAS, pursuant to the Form S-3, the Company may offer to the public
from time to time up to 12,000,000 shares of common stock, par value $0.001 per
share (the "Common Stock").

         WHEREAS, the Company desires to sell and issue to the Investor under
the Form S-3 up to an aggregate of Three Million (3,000,000) shares of Common
Stock, all in the manner described below.

         NOW, THEREFORE, in consideration of the covenants, agreements and
considerations herein contained, the Company and Investor agree as follows:

1. PURCHASE AND SALE OF SHARES

         1.1 PUT OF SHARES. Subject to the terms and conditions hereof, for a
period of twelve (12) months commencing on the date hereof, the Company shall
have the right to put (each a "Put") to the Investor, by way of one or more
Puts, up to an aggregate of Three Million (3,000,000) shares (the "Put Limit")
of Common Stock (the "Shares"), by delivering to the Investor a written notice
(the "Put Notice") by 6:30 p.m. Eastern Time specifying the number of Shares to
be put and sold to the Investor on such date, and the per share purchase price.
The form of Put Notice is attached hereto as Exhibit I. The date that the Put
Notice is delivered is referred to as the "Put Date

                                       1
<PAGE>

         1.2 PURCHASE PRICE. As full consideration for the sale of the Shares to
Investor in connection with each Put, the Investor shall deliver to the Company
within three (3) business days after receipt of the Put Notice (the "Put Closing
Date"), the purchase price for such Shares by wire transfer of immediately
available funds to such account as the Company shall designate. Unless otherwise
agreed in writing under Exhibit II, the per share purchase price applicable for
each Put shall be equal to the Company's trailing three (3) day Volume Weighted
Average Price, as determined by Bloomberg, ending on the trading day prior to
the Put Date (the "Market Price") less the applicable Discount determined as
follows:

                  MARKET PRICE RANGE                 DISCOUNT
                  ------------------                 --------

                Up to $3.00 per share                  15%
                $3.01 to $4.00 per share               14%
                $4.01 to $5.00 per share               13%
                $5.01 to $6.00                         12%
                $6.01 to $7.00                         11%
                Above $7.01                            10%

         Within three (3) business days following the Put Closing Date, the
Company shall deliver to the Investor or its designee the shares via DWAC or a
stock certificate representing the Shares purchased in the Put. The Shares shall
be delivered free of restrictive legends and stop transfer instructions.

         1.3 PUT LIMITATIONS. Unless the parties agree by mutually signing the
Put Notice, the Company may not deliver a Put Notice for a number of shares in
excess of fifteen percent (15%) of the aggregate trading volume for the three
(3) consecutive trading days prior to the Put Date.

         1.4 TERMINATION OF PUT RIGHT. The Company's right to deliver a Put
Notice pursuant to this Agreement shall terminate on the first to occur of (i)
the date that is twelve (12) months from the date hereof, and (ii) the Investor
having acquired pursuant to Puts a number of Shares equal to the Put Limit.
Notwithstanding the termination of the Put Right pursuant to clause (i), the
Investor shall be obligated to complete any Put delivered on or before such
date.

2. TERMINATION

         This Agreement may be terminated by either party, upon written notice
having immediate effect, if the other party (i) defaults in any material respect
in the performance of any of its obligations or any of its representations or
warranties under this Agreement or otherwise commits any material breach of this
Agreement and such default is not cured within ten (10) days after written
notice specifying in reasonable detail the nature of such default. The Company
may terminate this Agreement immediately upon written notice to the Investor.

                                       2

<PAGE>

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         Except as set forth below, the Company makes no representations or
warranties of any nature or kind.

         3.1 ORGANIZATION, STANDING AND POWER. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware. The Company has the corporate power to own its properties and to carry
on its business as now being conducted and is duly qualified to do business and
is in good standing in each jurisdiction in which the failure to be so qualified
would have a material adverse effect on the business, assets or condition
(financial or otherwise) of the Company and its subsidiaries, taken as a whole.

         3.2 CAPITALIZATION. The authorized capital stock of the Company
consists of 200,000,000 shares of common stock, par value $0.001 per share, and
5,000,000 shares of preferred stock, par value $0.001 per share, of which, as of
January 16, 2004, there were approximately 139,587,000 shares of common stock
and nil shares of preferred stock, issued and outstanding. The Company is not a
party to any voting trust agreements or understandings with respect to the
voting common stock of the Company. There are no preemptive or similar rights to
purchase or otherwise acquire shares of capital stock of the Company pursuant to
any provision of law, the Certificate of Incorporation, the bylaws of the
Company or any agreement to which the Company is a party.

         3.3 AUTHORIZATION.

                  3.3.1 The Company has full legal right, power and capacity to
enter into, execute, deliver and perform this Agreement and all attendant
documents and instruments contemplated hereby.

                  3.3.2 This Agreement has been duly executed and delivered and
constitutes the legal, valid and binding obligation of the Company and is
enforceable with respect to the Company in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, priority or other laws or
court decisions relating to or affecting generally the enforcement of creditors'
rights or affecting generally the availability of equitable remedies.

                  3.3.3 The execution and delivery of this Agreement by the
Company, and the consummation of the transactions contemplated hereby by the
Company in accordance with the terms hereof shall not conflict with or result in
a breach of, violation of, or default under (or constitute an event that with
notice, lapse of time, or both, would constitute a breach or default under), or
result in the termination of, or accelerate the performance required by, or
result in the creation of any liens or other encumbrances upon any of the
properties or assets of the Company under any of the terms, conditions or
provisions of the Certificate of Incorporation or Bylaws, any provision of the
laws of the State of California or the State of Delaware, or any note, bond,
mortgage, indenture, deed of trust, license, lease, credit agreement or other
agreement, document, instrument or obligation to which the Company is a party or
by which any of its assets or properties are bound.

                  3.3.4 Neither the execution and delivery of this Agreement by
the Company, nor the consummation of the transactions, contemplated hereunder by
the Company will violate or conflict with any judgment, order, decree, statute,
rule or regulation applicable to the Company or its assets or properties.

                                       3
<PAGE>

         3.4 VALID ISSUANCE OF COMMON STOCK.

                  3.4.1 The Shares being purchased by the Investor hereunder,
when issued, sold and delivered in accordance with the terms hereof or thereof,
for the consideration expressed herein or therein, will be duly and validly
issued, fully paid and nonassessble and will be issued in compliance with all
applicable federal and state securities laws.

                  3.4.2 The outstanding shares of Common Stock are all duly and
validly authorized and issued, fully paid and nonassessable, and were issued in
compliance with all applicable federal and state securities laws.

                  3.4.3 The Company has full power, right and authority to
transfer, convey and sell to the Investors on the Closing Date the Shares and
upon consummation of the transactions contemplated by this Agreement, each
Investor will have acquired good and marketable title to the Shares purchased by
such Investor, free and clear of claims, liens, restrictions on transfer or
voting or encumbrances.

                  3.4.4 The Company has taken the requisite action to cause the
Shares to be listed on the Nasdaq SmallCap Market.

         3.5 LITIGATION. Except as referred to in the SEC Documents, as defined
below, the Form S-3, or as disclosed in Schedule 3.5, there are no claims,
suits, actions or proceedings pending or, to the knowledge of the Company,
threatened against, relating to or affecting the Company or any of its
subsidiaries, before any court, governmental department, commission, agency,
instrumentality or authority, or any arbitrator that would reasonably be
expected, either alone or in the aggregate with all such claims, actions or
proceedings, to have a material adverse effect on the Company's business or
financial condition or the transactions contemplated hereunder. Except as
referred to in the Company's SEC Documents, neither the Company nor any of its
subsidiaries is subject to any judgment, decree, injunction, rule or order of
any court, governmental department, commission, agency, instrumentality or
authority, or any arbitrator which prohibits or restricts the consummation of
the transactions contemplated hereby or would have a material adverse effect on
the Company's business or financial condition or the transactions contemplated
hereunder.

         3.6 SEC DOCUMENTS; THE COMPANY'S FINANCIAL STATEMENTS. The Company is a
reporting company under the Securities Exchange Act of 1934 (the "Exchange
Act"), and files annual and periodic reports (the "SEC Documents") with the
Securities and Exchange Commission (the "SEC"). As of their respective filing
dates, the SEC Documents complied in all material respects with the requirements
of the Securities Exchange Act of 1934, as amended, applicable to the Company
and to the knowledge of the Company none of the SEC Documents contained any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements made therein, in light
of the circumstances in which they were made, not misleading, except to the
extent corrected by a subsequently filed document with the SEC. The SEC

                                       4
<PAGE>

Documents contain an audited consolidated balance sheet of the Company as of the
end of the last completed fiscal year (the "Balance Sheet") and the related
audited consolidated statements of income and cash flow for the year then ended
(collectively, the "Financials"). The Financials have been prepared in
accordance with GAAP applied on a basis consistent through the periods indicated
and consistent with each other. The Financials present fairly the consolidated
financial condition and operating results and cash flows of the Company and its
subsidiaries as of the dates and during the periods indicated therein. Since the
date of the Balance Sheet and until the date of this Agreement, there has not
occurred any material adverse change in the business, assets or condition
(financial or otherwise) of the Company and its subsidiaries, taken as a whole,
which has not been reflected in the SEC Documents.

         3.7 FORM S-3. The Company has delivered to each Investor a copy of the
Form S-3. The Company represents and warrants that the Form S-3 has been
declared effective by the SEC and is not subject to any stop order. The Company
is not aware of any event, fact or circumstance, which would cause the Form S-3
to contain a material misstatement or require the filing of an amendment
thereto. The Company at the time of the initial filing of the Form S-3 met the
SEC's eligibility requirements for use of a Form S-3 in connection with a
primary offering. The Company agrees to timely file all periodic reports
required to be filed under the Exchange Act in order to keep the S-3 in effect,
and to promptly file any amendments, if necessary, and deliver to the Investor a
copy of any such amendment.

         3.8 DISCLOSURE. Neither this Agreement, nor any of the schedules,
attachments, or certificates attached to this Agreement or delivered by the
Company on the Closing Date, contains any untrue statements of material fact or
omits a material fact necessary to make the statements contained herein or
therein not misleading. There is no fact which the Company has not disclosed to
the Investor, orally or in writing, and of which any of the Company's directors
or officers are aware, which could reasonably be anticipated to have a material
adverse effect, upon the financial condition, operating results or assets, of
the Company. Notwithstanding the foregoing, certain information provided by the
Company to the Investor contained statements that are forward-looking, which are
covered by the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking information involves important risks
and uncertainties that could significantly affect anticipated results in the
future, and accordingly, such results may differ materially from those expressed
in any forward-looking statements made by or on behalf of the Company.

         3.9 NO CONSENTS. The execution, delivery and performance by the Company
of this Agreement and the offer, issuance and sale of the Shares require no
consent of, action by or in respect of, or filing with, any individual or
entity, governmental body, agency, or official other than filings that have been
made pursuant to applicable state securities laws and post-sale filings pursuant
to applicable state and federal securities laws which the Company undertakes to
file within the applicable time periods.

         3.10 REGULATORY COMPLIANCE. The Company is not in violation of any
applicable law, regulation, judgment, order or consent decree (of any
governmental or non-governmental regulatory or self-regulatory agency or any
organized exchange, including without limitation, the SEC, any state or local
securities or insurance regulatory body, or the Internal Revenue Service), which
violation is likely to have a material adverse effect on the Company's business,
financial condition, or this transaction.

                                       5
<PAGE>

         3.11 REGULATORY PROCEEDINGS, INVESTIGATIONS AND INQUIRIES. The Company
has not been the subject of any material regulatory proceeding, examination,
investigation or inquiry (known to the Company), including any pending or
threatened regulatory proceeding, investigation or inquiry (known to the
Company) (including without limitation any by governmental or non-governmental
regulatory or self-regulatory agency or any organized exchange) relating to the
Company.

         3.12 REGISTRATION STATEMENT. The Company's Registration Statement on
Form S-3 (the "Registration Statement") was declared effective by the SEC on
November 10, 2003. The Registration Statement is effective on the date hereof
and the Company has not received notice that the SEC has issued or intends to
issue a stop order with respect to such Registration Statement or that the SEC
otherwise has suspended or withdrawn the effectiveness of the Registration
Statement, either temporarily or permanently, or intends or has threatened in
writing to do so. The Registration Statement (including the information or
documents incorporated by reference therein), as of the time it was declared
effective, and any amendments or supplements thereto, each as of the time of
filing, did not contain any untrue statement of material fact or omit to state
any material fact required to be stated therein or necessary to make the
statements therein not misleading. With respect to each completed Put, the
Company hereby agrees to file with the SEC, as required, either an amendment or
a prospectus supplement in accordance with the required timelines as prescribed
under Rule 424(b)(2) of the Securities Act. The issuance of the Shares to the
Investor is registered by the Registration Statement and, when issued to the
Investor, the Shares shall be freely tradeable by the Investor.

         3.13 COMPLIANCE WITH NASDAQ CONTINUED LISTING REQUIREMENTS. The Company
is in compliance with applicable Nasdaq SmallCap Market continued listing
requirements. There are no proceedings pending or, to the Company's knowledge,
threatened against the Company relating to the continued listing of the Common
Stock on the Nasdaq SmallCap Market and the Company has not received any
currently effective notice of, nor to the Company's knowledge is there any basis
for, the delisting of the Common Stock from the Nasdaq SmallCap Market.

4. REPRESENTATIONS AND WARRANTIES OF THE INVESTOR

The Investor hereby represents and warrants to the Company the following:

         4.1 AUTHORITY. Investor has full legal right, power and capacity to
enter into, execute, deliver and perform this Agreement and all attendant
documents and instruments contemplated hereby. This Agreement has been duly
executed and delivered and constitutes the legal, valid and binding obligation
of Investor and is enforceable with respect to Investor in accordance with its
terms, except as enforcement may be limited by bankruptcy, insolvency, priority
or other laws or court decisions relating to or affecting generally the
enforcement of creditors' rights or affecting generally the availability of
equitable remedies.

         4.2 NO VIOLATION OF AGREEMENTS. Neither the execution and delivery of
this Agreement nor the consummation of the transactions contemplated hereunder
by Investor will violate or conflict with any judgment, order, decree, statute,
rule or regulation applicable to Investor or its assets or properties.

                                       6
<PAGE>

         4.3 DISCLOSURE OF INFORMATION. Subject in part to the truth and
accuracy of the representations and warranties of the Company, the Investor
believes that it has received all the information that it considers necessary or
appropriate for deciding whether to purchase the Shares. The Investor further
represents that it has had an opportunity to review the SEC Documents and the
Form S-3, and had sufficient opportunity to ask questions and receive answers
from the Company and its directors and officers regarding the terms and
conditions of the offering of the Shares and the business and operations of the
Company. The foregoing, however, does not limit or modify the representations
and warranties of the Company in Section 3 of this Agreement or the right of the
Investor to rely thereon.

5. CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY

         The obligations of the Company to consummate each Put contemplated by
this Agreement shall be subject to the satisfaction of each of the conditions
set forth below, any or all of which may be waived by the Company in whole or in
part without prior notice; provided, however, that no such waiver of a condition
shall constitute a waiver by the Company of any other condition or of any of the
Company's rights or remedies, at law or in equity, if the Investor shall be in
default or breach of any of its representations, warranties or agreements under
this Agreement:

         5.1 PURCHASE PRICE. Investor shall deliver the applicable Put purchase
price on the date specified in Section 1.2.

         5.2 ACCURACY OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Investor contained in this Agreement shall be accurate and
complete on and as of each Put Closing Date with the same effect as though such
representations and warranties had been made on or as of such date.

         5.3 PERFORMANCE OF AGREEMENTS. Each and all of the conditions precedent
and agreements of the Investor subject to satisfaction on or before the Put
Closing Date pursuant to the terms of this Agreement shall have been performed
or satisfied.

6. CONDITIONS PRECEDENT TO OBLIGATIONS OF INVESTOR

         The obligations of the Investor to consummate the transactions
contemplated by this Agreement shall be subject to the satisfaction of each of
the conditions set forth below, any or all of which may be waived by each
Investor in whole or in part without prior notice; provided, however, that no
such waiver of a condition shall constitute a waiver by such Investor of any
other condition or of any of the Investor's rights or remedies, at law or in
equity, if the Company shall be in default or breach of any of its
representations, warranties or agreements under this Agreement:

         6.1 ACCURACY OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties of the Company contained in this Agreement shall be accurate and
complete on and as of the Put with the same effect as though such
representations and warranties had been made on or as of such date.

                                       7
<PAGE>

         6.2 PERFORMANCE OF AGREEMENTS. Each and all of the conditions precedent
and agreements of the Company subject to satisfaction on or before the Put
Closing Date pursuant to the terms of this Agreement shall have been performed
or satisfied.

         6.3 NO ADVERSE EVENTS. Between the date hereof and the Put Closing
Date, neither the business, assets or condition, financial or otherwise, of the
Company taken as a whole shall have been materially adversely affected in any
manner.

         6.4 NO DELINQUENT SHARES. The Company shall not then be delinquent its
obligation to deliver Shares in accordance with Section 1.2 with respect to
prior Puts.

7. INDEMNIFICATION

         7.1 To the extent permitted by law, the Company will indemnify and hold
harmless, the Investor, the directors and officers, if any, of the Investor, and
each person, if any, who controls the Investor within the meaning of the
Securities Act or the Exchange Act (each, an "Indemnified Person"), against any
losses, claims, damages, liabilities or expenses (joint or several) incurred
(collectively, "Claims") to which any of them may become subject under the
Securities Act, the Exchange Act or otherwise, insofar as such Claims (or
actions or proceedings, whether commenced in respect thereof) arise out of or
are based upon: (i) any untrue statement or untrue statement of a material fact
contained in the Registration Statement or any post-effective amendment thereof
or the omission or omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, (ii)
any untrue statement or untrue statement of a material fact contained in the
final prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or omission to state
therein any material fact necessary to make the statements made therein, in the
light of the circumstances under which the statements therein were made, not
misleading or (iii) any violation or violation by the Company of the Securities
Act, the Exchange Act, any state securities law or any rule or regulation under
the Securities Act, the Exchange Act or any state securities law (the matters in
the foregoing clauses (i) through (iii) being collectively referred to as
"Violations"). The Company shall reimburse the Investor, promptly as such
expenses are incurred and are due and payable, for any reasonable legal fees or
other reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 7 shall not (i)
apply to any Claims arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the
Company by or on behalf of any Indemnified Person expressly for use in
connection with the preparation of the Registration Statement or any such
amendment thereof or supplement thereto, (ii) be available to the extent such
Claim is based on a failure of the Investor to deliver or cause to be delivered
the prospectus made available by the Company; or (iii) apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld. The
Investor will indemnify the Company, its officers, directors and agents

                                       8
<PAGE>

(including legal counsel) (each an "Indemnified Person") against any claims
arising out of or based upon a Violation which occurs in reliance upon and in
conformity with information furnished in writing to the Company, by or on behalf
of the Investor, expressly for use in connection with the preparation of the
Registration Statement, subject to such limitations and conditions set forth in
this Section 7. Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of the Indemnified Person or
Indemnified Party, and shall survive the sale of the Shares by the Subscriber.

         7.2 Promptly after receipt by an Indemnified Person under this Section
of notice of the commencement of any action (including any governmental action),
such Indemnified Person shall, if a Claim in respect thereof is to be made
against any indemnifying party under this Section, deliver to the indemnifying
party a written notice 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 control of the defense thereof with counsel mutually satisfactory to
the indemnifying party and the Indemnified Person, as the case may be; PROVIDED,
HOWEVER, that an Indemnified Person shall have the right to retain its own
counsel with the reasonable fees and expenses to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person and the
indemnifying party would be inappropriate due to actual or potential differing
interests between such Indemnified Person and any other party represented by
such counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action shall not relieve such indemnifying party of any liability to the
Indemnified Person under this Section except to the extent that the indemnifying
party is prejudiced in its ability to defend such action. The indemnification
required by this Section shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as such expense,
loss, damage or liability is incurred and is due and payable.

         7.3 To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 7 to the fullest extent permitted by law.

8. MISCELLANEOUS

         8.1 EXPENSES, COMMISSIONS AND TAXES. Each party shall bear and pay its
own expenses, including legal, accounting and other professional fees, and taxes
incurred in connection with the transactions referred to in this Agreement. The
party responsible under applicable law shall bear and pay in their entirety all
other taxes and registration and transfer fees, if any, payable by reason of the
sale and conveyance of the Shares.

         8.2 ENTIRE AGREEMENT; MODIFICATIONS; WAIVER. This Agreement, together
with the related agreements or certificates referenced herein, constitutes the
final, exclusive and complete understanding of the parties with respect to the
subject matter hereof and supersedes any and all prior understandings and
discussions with respect thereto. No variation or modification of this Agreement
and no waiver of any provision or condition hereof, or granting of any consent
contemplated hereby, shall be valid unless in writing and signed by the party
against whom enforcement of any such variation, modification, waiver or consent
is sought.

                                       9
<PAGE>

         8.3 FURTHER ASSURANCES. The parties hereto shall use their best
efforts, and shall cooperate with one another, to secure all necessary consents,
approvals, authorizations, exemptions and waivers from third parties as shall be
required in order to consummate the transactions contemplated hereby, and shall
otherwise use their best efforts to cause such transactions to be consummated in
accordance with the terms and conditions hereof. At any time or from time to
time after the Closing Date, each party hereto, shall execute and deliver any
further instruments or documents and take all such further action as such
requesting party may reasonably request in order to consummate and document the
transactions contemplated hereby.

         8.4 CAPTIONS. The captions in this Agreement are for convenience only
and shall not be considered a part of or affect the constructing or
interpretation of any provision of this Agreement.

         8.5 SECTION REFERENCES. Unless otherwise noted, all section references
herein are to sections of this Agreement.

         8.6 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, including electronically transmitted counterparts, each of which
when so executed shall constitute an original copy hereof, but all of which
together shall constitute one agreement.

         8.7 SUCCESSORS AND ASSIGNS. Neither party shall have the right to
assign this Agreement.

         8.8 PARTIES IN INTEREST. Nothing in this Agreement, whether express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement on any persons other than the parties to it and their respective
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligation or liability of any third persons to any party to this
Agreement, nor shall any provision give any third persons any right of
subrogation or action over against any party to this Agreement.

         8.9 NOTICES. All notices, requests, demands and other communications
hereunder ("Notices") shall be in writing and shall be deemed to have been duly
given if delivered by hand or by registered or certified mail or upon fax notice
with confirmation of receipt, as follows:

If to Investor:                     Tuva Financial Ltd.
                                    Mrs. Minna Ledereich
                                    2 Manesse Str
                                    CH 8003 Zurich - Switzerland
                                    Fax: 411 291-5382

If to the Company:                  Peregrine Pharmaceutical, Inc.
                                    14272 Franklin Avenue, Suite 100
                                    Tustin, California  92780
                                    Attn.:  Steve King
                                    Fax:  714-838-5817

         with copy to:              Falk, Shaff & Ziebell
                                    Fax:  949-660-7799

                                       10
<PAGE>

or to such other address as any party may have furnished to the others in
writing in accordance herewith, except that notices of change of address shall
only be effective upon receipt. All Notices shall be deemed received on the date
of delivery or, if mailed, on the date appearing on the return receipt therefor.

         8.10 LAW GOVERNING. This Agreement shall be governed by, and construed
and enforced in accordance with the laws of the State of California, without
regard to its choice-of-laws or conflicts-of-law rules.

         8.11 SURVIVAL. The representations and warranties contained in this
Agreement shall survive the Closing Date indefinitely.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, all as of date first above written.

                                       "The Company"
                                       Peregrine Pharmaceuticals, Inc.,
                                       a Delaware corporation

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

                                       "Investor"
                                        Tuva Financial, Ltd.

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

                                       11
<PAGE>

                                    EXHIBIT I

                                   PUT NOTICE

         PEREGRINE PHARMACEUTICALS, INC. (the "Company") pursuant to the terms
of the Common Stock Purchase Agreement dated January 22, 2004 (the "Purchase
Agreement") hereby intends, subject to the Put Limit (as defined in the Purchase
Agreement), to elect to exercise a Put to sell the number of shares of Common
Stock of the Company specified below at a price per share specified below, to
Tuva Financial Ltd., the Investor, as of the Put Closing Date written below.

                      Date of Put Notice: _________________________

                      Intended Put Date:  _________________________

                      Intended Put Share Amount: __________________

                      Per Share Purchase Price: ___________________

                      Aggregate Purchase Price: ___________________

The undersigned executive officer of the Company, hereby certifies that the
representations and warranties in the Purchase Agreement are true and correct in
all material respects as of the date hereof.

By:
Name:
Title:

AGREED AND ACCEPTED BY "INVESTOR"
--------------------------------------------------------------------------------

"Investor"
 Tuva Financial Ltd.

By:                                          Date:

Name:                                        Title:

                                       12
<PAGE>

                                   EXHIBIT II

                                   PUT NOTICE

         PEREGRINE PHARMACEUTICALS, INC. (the "Company") pursuant to the terms
of the Common Stock Purchase Agreement dated January 22, 2004 (the "Purchase
Agreement") hereby intends, subject to the Put Limit (as defined in the Purchase
Agreement), to elect to exercise a Put to sell the number of shares of Common
Stock of the Company specified below at a price per share specified below, to
Tuva Financial Ltd., the Investor, as of the Put Closing Date written below.

                      Date of Put Notice: _________________________

                      Intended Put Date: __________________________

                      Intended Put Share Amount: __________________

                      Per Share Purchase Price (1): _______________

                      Aggregate Purchase Price: ___________________

(1) The above purchase price differs from that Price otherwise determinable
pursuant to Section 1.2. By signing below, each party agrees to the revise
purchase price.

The undersigned executive officer of the Company, hereby certifies that the
representations and warranties in the Purchase Agreement are true and correct in
all material respects as of the date hereof.

By:
Name:
Title:

AGREED AND ACCEPTED BY "INVESTOR"
--------------------------------------------------------------------------------

"Investor"
 Tuva Financial Ltd.

By:                                          Date:

Name:                                        Title:

                                       13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]