Document:

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                                                                     EXHIBIT 4.8

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE THEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS THERE IS (i) AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT RELATED THERETO, OR (ii) AN OPINION OF
COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED.

                         THE TRANSFER OF THIS WARRANT IS
                         RESTRICTED AS DESCRIBED HEREIN.

                              MEDI-JECT CORPORATION

               Warrant for the Purchase of Shares of Common Stock,
                            $.01 par value per Share

No.____                                                            10,000 Shares

THIS CERTIFIES that, for value received, GRAYSON & ASSOCIATES, INC. (the
"Holder"), is entitled to subscribe for and purchase from MEDI-JECT CORPORATION,
a Minnesota corporation (the "Company"), upon the terms and conditions set forth
herein, at any time or from time to time after September 23, 1999, and before
5:00 P.M. on September 23, 2004, Minnesota time (the "Exercise Period"), 10,000
shares of the Company's Common Stock, $.01 par value ("Common Stock"), at a
price of $2.4004 per share (the "Exercise Price"). This Warrant is the warrant
or one of the warrants (collectively, including any warrants issued upon the
exercise or transfer of any such warrants in whole or in part, the "Warrants")
issued pursuant to the Agreement, dated September 23, 1999, between the Holder
and the Company. This Warrant may be transferred subject to the following
conditions: (i) during the first year after the date of this Warrant, it may not
be sold, transferred, assigned or hypothecated except to persons who are (x)
both officers and shareholders of Holder, or (y) both officers and employees of
Holder, and (ii) after such period, the Warrant shall be transferable without
restriction, subject to the opinion of counsel as provided in Paragraph 4 herein
that such transfer is not in violation of federal or state securities laws. The
term the "Holder" as used herein shall include any transferee to whom this
Warrant has been transferred in accordance with the above.The number of shares
of Common Stock issuable upon exercise of the Warrants (the "Warrant Shares")
and the Exercise Price may be adjusted from time to time as hereinafter set
forth.

     1. This Warrant may be exercised during the Exercise Period, as to the
whole or any lesser number of whole Warrant Shares, by the surrender of this
Warrant (with the election at the end hereof duly executed) to the Company at
its office at 161 Cheshire Lane, Suite 100, Minneapolis, Minnesota 55441, or at
such other place as is designated in writing by the Company, together with a
certified or bank cashier's check payable to the order of the Company in an
amount equal to the Exercise Price multiplied by the number of Warrant Shares
for which this Warrant is being exercised (the "Stock Purchase Price").

     2. (a) In lieu of the payment of the Stock Purchase Price, the Holder shall
have the right (but not the obligation), to require the Company to convert this
Warrant, in whole or in part, into shares of Common Stock (the "Conversion
Right") as provided for in this Section 2. Upon exercise of the Conversion
Right, the Company shall deliver to the Holder (without payment by the Holder of
any of the Stock Purchase Price) that number of shares of Common Stock (the
"Conversion Shares") equal to the quotient obtained by dividing (x) the value of
this Warrant (or portion thereof as to which the Conversion Right is being
exercised if the Conversion Right is being exercised in part) at the time the
Conversion Right is exercised (determined by subtracting the aggregate Stock
Purchase Price of the shares of Common Stock as to which the Conversion Right is
being exercised in effect immediately prior to the exercise of the Conversion
Right from the aggregate Current Market Price (as defined in Section 6(b)
hereof) of the shares of Common Stock as to which the Conversion Right is being
exercised immediately prior to the exercise of the Conversion Right) by (y) the
Current Market Price of one share of Common Stock immediately prior to the
exercise of the Conversion Right.
<PAGE>

     (b) The Conversion Rights provided under this Section 2 may be exercised in
whole or in part and at any time and from time to time while any Warrants remain
outstanding. In order to exercise the Conversion Right, the Holder shall
surrender to the Company, at its offices, this Warrant with the Notice of
Conversion at the end hereof duly executed. The presentation and surrender shall
be deemed a waiver of the Holder's obligation to pay all or any portion of the
aggregate purchase price payable for the shares of Common Stock as to which such
Conversion Right is being exercised. This Warrant (or so much thereof as shall
have been surrendered for conversion) shall be deemed to have been converted
immediately prior to the close of business on the day of surrender of such
Warrant for conversion in accordance with the foregoing provisions.

     3. Upon each exercise of the Holder's rights to purchase Warrant Shares or
Conversion Shares, the Holder shall be deemed to be the holder of record of the
Warrant Shares or Conversion Shares issuable upon such exercise or conversion,
notwithstanding that the transfer books of the Company shall then be closed or
certificates representing such Warrant Shares or Conversion Shares shall not
then have been actually delivered to the Holder. As soon as practicable after
each such exercise or conversion of this Warrant, the Company shall issue and
deliver to the Holder a certificate or certificates for the Warrant Shares or
Conversion Shares issuable upon such exercise or conversion, registered in the
name of the Holder or its designee. If this Warrant should be exercised or
converted in part only, the Company shall, upon surrender of this Warrant for
cancellation, execute and deliver a new Warrant evidencing the right of the
Holder to purchase the balance of the Warrant Shares (or portions thereof)
subject to purchase hereunder.

     4. Any Warrants issued upon the transfer or exercise or conversion in part
of this Warrant shall be numbered and shall be registered in a Warrant Register
as they are issued. The Company shall be entitled to treat the registered holder
of any Warrant on the Warrant Register as the owner in fact thereof for all
purposes and shall not be bound to recognize any equitable or other claim to or
interest in such Warrant on the part of any other person, and shall not be
liable for any registration or transfer of Warrants which are registered or to
be registered in the name of a fiduciary or the nominee of a fiduciary unless
made with the actual knowledge that a fiduciary or nominee is committing a
breach of trust in requesting such registration or transfer, or with the
knowledge of such facts that its participation therein amounts to bad faith.
This Warrant shall be transferable only on the books of the Company upon
delivery thereof duly endorsed by the Holder or by the Holder's duly authorized
attorney or representative, or accompanied by proper evidence of succession,
assignment, or authority to transfer. In all cases of transfer by an attorney,
executor, administrator, guardian, or other legal representative, duly
authenticated evidence of the authority of such person or entity shall be
produced. Upon any registration of transfer, the Company shall deliver a new
Warrant or Warrants to the person entitled thereto. Notwithstanding the
foregoing, the Company shall have no obligation to cause Warrants to be
transferred on its books to any person if, in the opinion of counsel to the
Company, such transfer does not comply with the provisions of the Securities Act
of 1933, as amended (the "Act"), and the rules and regulations thereunder.

     5. The Company shall seek at its next annual meeting of shareholders to
amend its Articles of Incorporation to increase its authorized common stock and
if the shareholders approve such amendment, it shall at all times thereafter
reserve and keep available out of its authorized and unissued Common Stock,
solely for the purpose of providing for the exercise of the rights to purchase
all Warrant Shares and/or Conversion Shares granted pursuant to the Warrants,
such number of shares of Common Stock as shall, from time to time, be sufficient
therefor. The Company covenants that all shares of Common Stock issuable upon
exercise of this Warrant, upon receipt by the Company of the full Exercise Price
therefor, and all shares of Common Stock issuable upon conversion of this
Warrant, shall be validly issued, fully paid, and nonassessable, without any
personal liability attaching to the ownership thereof, and will not be issued in
violation of any preemptive rights of stockholders, optionholders,
warrantholders and any other persons and the Holders will receive good title to
the securities purchased by them, respectively, free and clear of all liens,
security interests, pledges, charges, encumbrances, stockholders' agreements and
voting trusts which might be created by acts or omissions to act of the Company.

     6. (a) In case the Company shall at any time after the date the Warrants
were first issued (i) declare a dividend on the outstanding Common Stock payable
in shares of its capital stock, (ii) subdivide the outstanding Common Stock,
(iii) combine the outstanding Common Stock into a smaller number of shares, or
(iv) issue any shares of its capital
<PAGE>

stock by reclassification of the Common Stock (including any such
reclassification in connection with a consolidation or merger in which the
Company is the continuing corporation), then, in each case, the Exercise Price,
and the number and kind of securities issuable upon exercise or conversion of
this Warrant, in effect at the time of the record date for such dividend or of
the effective date of such subdivision, combination, or reclassification, shall
be proportionately adjusted so that the Holder after such time shall be entitled
to receive the aggregate number and kind of shares which, if such Warrant had
been exercised or converted immediately prior to such time, the Holder would
have owned upon such exercise or conversion and been entitled to receive by
virtue of such dividend, subdivision, combination, or reclassification. Such
adjustment shall be made successively whenever any event listed above shall
occur.

     (b) For the purpose of any computation under this Warrant, the Current
Market Price per share of Common Stock on any date shall be deemed to be the
average of the daily closing prices for the 30 consecutive trading days
immediately preceding the date in question. The closing price for each day shall
be the last reported sales price regular way or, in case no such reported sale
takes place on such day, the closing bid price regular way, in either case on
the principal national securities exchange (including, for purposes hereof, the
Nasdaq SmallCap Market) on which the Common Stock is listed or admitted to
trading or, if the Common Stock is not listed or admitted to trading on any
national securities exchange, the highest reported bid price for the Common
Stock as furnished by the National Association of Securities Dealers, Inc.
through Nasdaq or a similar organization if Nasdaq is no longer reporting such
information. If on any such date the Common Stock is not listed or admitted to
trading on any national securities exchange and is not quoted by Nasdaq or any
similar organization, the fair value of a share of Common Stock on such date, as
determined in good faith by the board of directors of the Company, whose
determination shall be conclusive absent manifest error, shall be used.

     (c) No adjustment in the Exercise Price shall be required if such
adjustment is less than $.05; provided, however, that any adjustments which by
reason of this Section 6 are not required to be made shall be carried forward
and taken into account in any subsequent adjustment. All calculations under this
Section 6 shall be made to the nearest cent or to the nearest one-thousandth of
a share, as the case may be.

     (d) In any case in which this Section 6 shall require that an adjustment in
the Exercise Price be made effective as of a record date for a specified event,
the Company may elect to defer, until the occurrence of such event, issuing to
the Holder, if the Holder exercised or converted this Warrant after such record
date, the shares of Common Stock, if any, issuable upon such exercise or
conversion over and above the shares of Common Stock, if any, issuable upon such
exercise or conversion on the basis of the Exercise Price in effect prior to
such adjustment; provided, however, that the Company shall deliver to the Holder
a due bill or other appropriate instrument evidencing the Holder's right to
receive such additional shares upon the occurrence of the event requiring such
adjustment.

     (e) Upon each adjustment of the Exercise Price as a result of the
calculations made in this Section 6, this Warrant shall thereafter evidence the
right to purchase, at the adjusted Exercise Price, that number of shares
(calculated to the nearest thousandth) obtained by dividing (i) the product
obtained by multiplying the number of shares purchasable upon exercise of this
Warrant prior to adjustment of the number of shares by the Exercise Price in
effect prior to adjustment of the Exercise Price, by (ii) the Exercise Price in
effect after such adjustment of the Exercise Price.

     (f) Whenever there shall be an adjustment provided in this Section 6, the
Company shall promptly cause written notice thereof to be sent by registered
mail or overnight courier, postage prepaid, to the Holder, at its address as it
shall appear in the Warrant Register, which notice shall be accompanied by an
officer's certificate setting forth the number of Warrant Shares purchasable
upon the exercise of this Warrant and the Exercise Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment and
the computation thereof, which officer's certificate shall be conclusive
evidence of the correctness of any such adjustment absent manifest error.

     (g) The Company shall not be required to issue fractions of shares of
Common Stock or other capital stock of the Company upon the exercise or
conversion of this Warrant. If any fraction of a share would be issuable on the
exercise or conversion of this Warrant (or specified portions thereof), the
Company shall purchase such fraction for an
<PAGE>

amount in cash equal to the same fraction of the Current Market Price of such
share of Common Stock on the date of exercise or conversion of this Warrant.

     7. (a) In case of any consolidation with or merger of the Company with or
into another corporation (other than a merger or consolidation in which the
Company is the surviving or continuing corporation), or in case of any sale,
lease, or conveyance to another corporation of all or substantially all of the
property and assets of the Company, such successor, leasing, or purchasing
corporation, as the case may be, shall (i) execute with the Holder an agreement
providing that the Holder shall have the right thereafter to receive upon
exercise or conversion of this Warrant solely the kind and amount of shares of
stock and other securities, property, cash, or any combination thereof
receivable upon such consolidation, merger, sale, lease, or conveyance by a
holder of the number of shares of Common Stock for which this Warrant might have
been exercised or converted immediately prior to such consolidation, merger,
sale, lease, or conveyance, and (ii) make effective provision in its certificate
of incorporation or otherwise, if necessary, to effect such agreement. Such
agreement shall provide for adjustments which shall be as nearly equivalent as
practicable to the adjustments in Section 6.

     (b) In case of any reclassification or change of the shares of Common Stock
issuable upon exercise or conversion of this Warrant (other than a change in par
value or from no par value to a specified par value, or as a result of a
subdivision or combination, but including any change in the shares into two or
more classes or series of shares), or in case of any consolidation or merger of
another corporation into the Company in which the Company is the continuing
corporation and in which there is a reclassification or change (including a
change to the right to receive cash or other property) of the shares of Common
Stock (other than a change in par value, or from no par value to a specified par
value, or as a result of a subdivision or combination, but including any change
in the shares into two or more classes or series of shares), the Holder shall
have the right thereafter to receive upon exercise or conversion of this Warrant
solely the kind and amount of shares of stock and other securities, property,
cash, or any combination thereof receivable upon such reclassification, change,
consolidation, or merger by a holder of the number of shares of Common Stock for
which this Warrant might have been exercised or converted immediately prior to
such reclassification, change, consolidation, or merger. Thereafter, appropriate
provision shall be made for adjustments which shall be as nearly equivalent as
practicable to the adjustments in Section 6.

     (c) The above provisions of this Section 7 shall similarly apply to
successive reclassifications and changes of shares of Common Stock and to
successive consolidations, mergers, sales, leases, or conveyances.

     8. In case at any time the Company shall propose:

     (i) to pay any dividend or make any distribution on shares of Common Stock
in shares of Common Stock or make any other distribution (other than regularly
scheduled cash dividends which are not in a greater amount per share than the
most recent such cash dividend) to all holders of Common Stock; or

     (ii) to issue any rights, warrants, or other securities to all holders of
Common Stock entitling them to purchase any additional shares of Common Stock or
any other rights, warrants, or other securities; or

     (iii) to effect any reclassification or change of outstanding shares of
Common Stock, or any consolidation, merger, sale, lease, or conveyance of
property, described in Section 7; or

     (iv) to effect any liquidation, dissolution, or winding-up of the Company;
or

     (v) to take any other action which would cause an adjustment to the
Exercise Price;

then, and in any one or more of such cases, the Company shall give written
notice thereof, by registered mail, postage prepaid, to the Holder at the
Holder's address as it shall appear in the Warrant Register, mailed at least 15
days prior to (i) the date as of which the holders of record of shares of Common
Stock to be entitled to receive any such dividend,
<PAGE>

distribution, rights, warrants, or other securities are to be determined, (ii)
the date on which any such reclassification, change of outstanding shares of
Common Stock, consolidation, merger, sale, lease, conveyance of property,
liquidation, dissolution, or winding-up is expected to become effective, and the
date as of which it is expected that holders of record of shares of Common Stock
shall be entitled to exchange their shares for securities or other property, if
any, deliverable upon such reclassification, change of outstanding shares,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up, or (iii) the date of such action which would require
an adjustment to the Exercise Price.

     9. The issuance of any shares or other securities upon the exercise or
conversion of this Warrant, and the delivery of certificates or other
instruments representing such shares or other securities, shall be made without
charge to the Holder for any tax or other charge in respect of such issuance.
The Company shall not, however, be required to pay any tax which may be payable
in respect of any transfer involved in the issue and delivery of any certificate
in a name other than that of the Holder and the Company shall not be required to
issue or deliver any such certificate unless and until the person or persons
requesting the issue thereof shall have paid to the Company the amount of such
tax or shall have established to the satisfaction of the Company that such tax
has been paid.

     10. If the Company proposes to claim an exemption under Section 3(b) for a
public offering of any of its securities or to register under the Securities Act
of 1933 (except by a claim of exemption or registration statement on a form that
does not permit the inclusion of shares by its security holders) any of its
securities, it will give written notice to all registered holders of Warrants,
and all registered holders of shares of common stock acquired upon the exercise
of Warrants (the "Common Shares"), of its intention to do so and, on the written
request of any such registered holders given within twenty (20) days after
receipt of any such notice (which request must be made within five (5) years
from the date of this Warrant), the Company will use its best efforts to cause
all Common Shares which such holders shall have requested the registration or
qualification thereof, to be included in such notification or registration
statement proposed to be filed by the Company; provided, however, that nothing
herein shall prevent the Company from, at any time, abandoning or delaying any
such registration initiated by it. If any such registration shall be
underwritten in whole or in part, the Company may require that the shares
requested for inclusion pursuant to this section be included in the underwriting
on the same terms and conditions as the securities otherwise being sold through
the underwriters. In the event that, in the good faith judgment of the managing
underwriter of such public offering, the inclusion of all of the shares
originally covered by a request for registration would reduce the number of
shares to be offered by the Company or interfere with the successful marketing
of the shares of stock offered by the Company, the number of shares otherwise to
be included pursuant to this Section in the underwritten public offering may be
reduced; provided, however, that any such required reduction shall be pro rata
among all persons (other than the Company) who are participating in such
offering. Those shares which are thus excluded from the underwritten public
offering shall be withheld from the market for a period, not to exceed 90 days,
which the managing underwriter reasonably determines is necessary in order to
effect the underwritten public offering. All expenses of such offering, except
the fees of special counsel to such holders and brokers' commissions or
underwriting discounts payable by such holders, shall be borne by the Company.

     (b) If and whenever the Company is required by Section 10(a) hereof to
effect the registration of Warrants and/or shares issued upon the exercise of
the Warrants under the Securities Act, the Company will:

     (i) prepare and file with the Commission a registration statement with
respect to such securities, and use its best efforts to cause such registration
statement to become and remain effective for such period as may be reasonably
necessary to effect the sale of such securities not to exceed one (1) year;

     (ii) prepare and file with the Commission such amendments to such
registration statement and supplements to the prospectus contained therein as
may be necessary to keep such registration statement effective for such period
as may be reasonably necessary to effect the sale of such securities not to
exceed one (1) year;

     (iii) furnish to the security holders participating in such registration
and to the underwriters of the securities being registered such reasonable
number of copies of the registration statement, preliminary prospectus, final
prospectus and
<PAGE>

such other documents as such underwriters may reasonably request in order to
facilitate the public offering of such securities;

     (iv) use its best efforts to register or qualify the securities covered by
such registration statement under such state securities or blue sky laws of such
jurisdictions as such participating holders may reasonably request in writing
within 30 days following the original filing of such registration statement,
except that the Company shall not for any purpose be required to execute a
general consent to service of process or to qualify to do business as a foreign
corporation in any jurisdiction wherein it is not so qualified;

     (v) notify the security holders participating in such registration,
promptly after it shall receive notice thereof, of the time when such
registration statement has become effective or a supplement to any prospectus
forming a part of such registration statement has been filed;

     (vi) notify such holders promptly of any request by the Commission for the
amending or supplementing of such registration statement or prospectus or for
additional information;

     (vii) prepare and file with the Commission, promptly upon the request of
any such holders, any amendments or supplements to such registration statement
or prospectus which, in the opinion of counsel for such holders (and concurred
in by counsel for the Company), is required under the Securities Act or the
rules and regulations thereunder in connection with the distribution of the
Warrants or shares by such holder;

     (viii) prepare and promptly file with the Commission and promptly notify
such holders of the filing of such amendment or supplement to such registration
statement or prospectus as may be necessary to correct any statements or
omissions if, at the time when a prospectus relating to such securities is
required to be delivered under the Securities Act, any event shall have occurred
as the result of which any such prospectus or any other prospectus as then in
effect would include an untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the light of the
circumstances in which they were made, not misleading;

     (ix) advise such holders, promptly after it shall receive notice or obtain
knowledge thereof, of the issuance of any stop order by the Commission
suspending the effectiveness of such registration statement or the initiation or
threatening of any proceeding for that purpose and promptly use its best efforts
to prevent the issuance of any stop order or to obtain its withdrawal if such
stop order should be issued;

     (x) not file any amendment or supplement to such registration statement or
prospectus to which a majority in interest of such holders shall have reasonably
objected on the grounds that such amendment or supplement does not comply in all
material respects with the requirements of the Securities Act or the rules and
regulations thereunder, after having been furnished with a copy thereof at least
five business days prior to the filing thereof, unless in the opinion of counsel
for the Company the filing of such amendment or supplement is reasonably
necessary to protect the Company from any liabilities under any applicable
federal or state law and such filing will not violate applicable law; and

     (xi) at the request of any such holder, furnish on the effective date of
the registration statement and, if such registration includes an underwritten
public offering, at the closing provided for in the underwriting agreement: (i)
opinions, dated such respective dates, of the counsel representing the Company
for the purposes of such registration, addressed to the underwriters, if any,
and to the holder or holders making such request, covering such matters as such
underwriters and holder or holders may reasonably request; and (ii) letters,
dated such respective dates, from the independent certified public accountants
of the Company, addressed to the underwriters, if any, and to the holder or
holders making such request, covering such matters as such underwriters and
holder or holders may reasonably request, in which letter such accountants shall
state (without limiting the generality of the foregoing) that they are
independent certified public accountants within the meaning of the Securities
Act and that in the opinion of such accountants the financial statements and
other financial data of the Company included in the registration statement or
the prospectus or any amendment or supplement thereto comply in all material
respects with the applicable accounting requirements of the Securities Act.
<PAGE>

     (d) The Company hereby indemnifies the holder of this Warrant and of any
common stock issued or issuable hereunder, its officers and directors, and any
person who controls such Warrant Holder or such Holder of common stock within
the meaning of Section 15 of the Securities Act of 1933, against all losses,
claims, damages and liabilities caused by any untrue statement of a material
fact contained in any registration statement, prospectus, notification or
offering circular (and as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) or any preliminary prospectus
or caused by any omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading except
insofar as such losses, claims, damages or liabilities are caused by any untrue
statement or omission contained in information furnished in writing to the
Company by such Warrant Holder or such holder of common stock expressly for use
therein; and provided further, however, that the foregoing indemnity agreement
is subject to the condition that, insofar as it relates to any untrue statement,
alleged untrue statement, omission or alleged omission made in any preliminary
prospectus but eliminated or remedied in a subsequent prospectus, such indemnity
agreement shall not inure to the benefit of a holder if a copy of such
subsequent prospectus was not sent or given with or prior to the written
confirmation of the sale of any of shares, if available at or prior to such
written confirmation, to the person asserting any loss, liability, claim or
damage. Each such Holder by its acceptance hereof severally agrees that it will
indemnify and hold harmless the Company and each of its officers who signs such
registration statement and each of its directors and each person, if any, who
controls the Company within the meaning of Section 15 of the Securities Act of
1933 with respect to losses, claims, damages or liabilities which are caused by
any untrue statement or omission contained in information furnished in writing
to the Company by such holder expressly for use therein.

     11. The Warrant Shares issued upon exercise of the Warrants shall be
subject to a stop transfer order and the certificate or certificates evidencing
such Warrant Shares shall bear the following legend:

"THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE THEREOF HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
ANY STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS THERE IS (i) AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT RELATED THERETO, OR (ii) AN OPINION OF
COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED."

     12. Upon receipt of evidence satisfactory to the Company of the loss,
theft, destruction, or mutilation of any Warrant (and upon surrender of any
Warrant if mutilated), and upon reimbursement of the Company's reasonable
incidental expenses, the Company shall execute and deliver to the Holder thereof
a new Warrant of like date, tenor, and denomination.

     13. The Holder of any Warrant shall not have, solely on account of such
status, any rights of a stockholder of the Company, either at law or in equity,
or to any notice of meetings of stockholders or of any other proceedings of the
Company, except as provided in this Warrant.

     14. This Warrant shall be construed in accordance with the laws of the
State of Minnesota applicable to contracts made and performed within such State,
without regard to principles of conflicts of law.

Dated as of: September 23, 1999

                                   MEDI-JECT CORPORATION

                                   By: /s/ Franklin Pass
                                       ----------------------------------
                                   Name:  Franklin Pass, M.D.
                                   Title: President, Chief Executive Officer
                                          and Chairman of the Board of Directors
<PAGE>

FORM OF ASSIGNMENT

(To be executed by the registered holder if such holder desires to transfer the
attached Warrant.)

     FOR VALUE RECEIVED, Grayson & Associates, Inc. hereby sells, assigns, and
transfers unto _____________________________ a Warrant to purchase _____________
shares of Common Stock, $.01 per share, of Medi-Ject Corporation (the
"Company"), together with all right, title, and interest therein, and does
hereby irrevocably constitute and appoint _______________________ attorney to
transfer such Warrant on the books of the Company, with full power of
substitution.

Dated: _________________________________

Grayson & Associates, Inc.

By: ___________________________________
    Name:
    Its:

NOTICE

     The signature on the foregoing Assignment must correspond to the name as
written upon the face of this Warrant in every particular, without alteration or
enlargement or any change whatsoever.
<PAGE>

To:  Medi-Ject Corporation
     161 Cheshire Lane, Suite 100
     Minneapolis, MN 55441

ELECTION TO EXERCISE

     The undersigned hereby exercises his or its rights to purchase ____________
Warrant Shares covered by the within Warrant and tenders payment herewith in the
amount of $___________ in accordance with the terms thereof, and requests that
certificates for such securities be issued in the name of, and delivered to:

                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the Warrant
Shares covered by the within Warrant be registered in the name of, and delivered
to, the undersigned at the address stated below.

Dated: ____________________________        Name: _______________________________
                                                 (Print)

Address: __________________________              _______________________________
                                                 (Signature)
         __________________________
<PAGE>

To:  Medi-Ject Corporation
     161 Cheshire Lane, Suite 100
     Minneapolis, MN 55441

                     CASHLESS EXERCISE FORM
    (To be executed upon conversion of the attached Warrant)

     The undersigned hereby irrevocably elects to surrender its Warrant for the
number of shares of Common Stock as shall be issuable pursuant to the cashless
exercise provisions of the within Warrant, in respect of ___________ shares of
Common Stock underlying the within Warrant, and requests that certificates for
such securities be issued in the name of, and delivered to:

                    (Print Name, Address and Social Security
                          or Tax Identification Number)

and, if such number of shares shall not be all the shares exchangeable or
purchasable under the within Warrant, that a new Warrant for the balance of the
Warrant Shares covered by the within Warrant be registered in the name of, and
delivered to, the undersigned at the address stated below.

Dated: ____________________________        Name: _______________________________
                                                 (Print)

Address: __________________________              _______________________________
                                                 (Signature)
         __________________________<PAGE>

                                                                    EXHIBIT 10.4

                                                                    Page 1 of 26
                     EXCLUSIVE LICENSE AND SUPPLY AGREEMENT

     This Agreement is made and entered into this 22nd day of December, 1999
(hereinafter "Effective Date") by and between Medi-Ject, a Minnesota
corporation, having a place of business at 161 Cheshire Lane, Suite 100,
Minneapolis, Minnesota 55441 (hereinafter "Medi-Ject") and Bio-Technology
General Corp., a Delaware corporation, having a place of business at 70 Wood
Avenue South, Iselin, New Jersey 08830, (hereinafter, "BTG").

     Whereas BTG has developed an injectable pharmaceutical for treating human
growth disorders which BTG will produce, promote, distribute and sell in
different pharmaceutical forms for administration in humans for which the
Devices are of potential use and wishes to extend its product package with the
Devices; and

     Whereas Medi-Ject has expertise in the design, manufacture and sales of
needle-free injector devices; and

     Whereas Medi-Ject owns valuable Medi-Ject Know How (hereinafter defined)
and has been granted patent protection relating to the disposable front-end
chamber and adaptor for such needle-free injector devices and Medi-Ject is
desirous of developing, Exclusively licensing and supplying such devices in the
Territory to BTG for use in the treatment of human growth disorders and further
indications in the Field; and

     Whereas BTG and Medi-Ject previously entered into the First Agreement and
were frustrated in the performance of the First Agreement by virtue of BTG
having been preliminarily enjoined from importing and selling hGH in the United
States; and

     Whereas Medi-Ject has acquired the rights to an improved Device(s) which is
a needle-free injector device system capable of delivering drugs through the
skin in a controlled manner; and

     Whereas BTG and Medi-Ject, in contemplation of BTG eventually being able to
import and market, whether by itself or through one or more third parties, or
both, hGH in the United States, desire to modify and reaffirm their business
arrangement by substituting this Agreement for the First Agreement;

     Now Therefore, in consideration of the foregoing and mutual covenants and
conditions set forth herein, the parties hereto mutually agree as follows:

                             ARTICLE 1 - DEFINITIONS
                             -----------------------

1.1  "Affiliate(s)" means any corporation or business entity controlled either
     directly or indirectly by beneficial ownership of 50% or more of the voting
     stock of, or a
<PAGE>

                                                                    Page 2 of 26

     50% or greater interest in the income of, such corporation or other
     business entity, or the maximum ownership permitted by law or
     administrative practice.

1.2  "Agreement" means this Exclusive License and Supply Agreement entered into
     by and between BTG and Medi-Ject as of the Effective Date.

1.3  "BTG Know How" means all confidential, pharmaceutical, scientific, medical
     and marketing information and technical data invented, developed, generated
     or acquired by BTG (other than Medi-Ject Know How) relating to the
     development, manufacture, use or sale of hGH or the Devices including but
     not limited to clinical, pharmaceutical and scientific data and information
     required for registration and marketing purposes in the Field in the
     Territory other than Improvements which are explicitly dealt with as
     separate issues in this Agreement.

1.3  "Device(s)(s)" means those Medi-Ject needle-free injector devices,
     including the injector identified in Appendix A, which:

     (a)  comprise a Disposable Adaptor, Disposable Front End Chamber and a
          Power Pack, individually or in any combination,

     (b)  which exhibit pressure and delivery characteristics satisfactory for
          use in humans in the Field, and

     (c)  which are conceived by, owned by, or licensed, with the right to
          sublicense, to Medi-Ject as of the Effective Date,

     and any Improvements thereon made by or for Medi-Ject during the term of
     this Agreement.

1.5  "Disposable Adaptor(s)" means a system which is used as the interface
     between a vial of medicant and the Disposable Front End Chamber.

1.6  "Dispute" shall have the meaning ascribed to it in Section 11.13.

1.7  "Disposable Front End Chamber(s)" means a system which is filled with
     medicant at the time of administration and used to hold and administer the
     medicant needle-free.

1.8  "Exclusive" and/or "Exclusively" means that only BTG, its sublicensees, its
     Affiliates and its designated distributors have the right to sell the
     Device(s) or any other product that is developed by Medi-Ject, for use in
     the Field.

1.9  "Field" means using hGH to treat any human ailment.
<PAGE>

                                                                    Page 3 of 26

1.10 "First Agreement" means Exclusive License and Supply Agreement effective as
     of June 27, 1995 entered into by and between BTG and Medi-Ject.

1.11 "First Commercial Sale" means the invoice date of the first sale of
     Finished Device(s)(s) and /or the Device(s)(s) in the Field and in the
     Territory by BTG to an Independent Third Party through customary commercial
     channels of distribution after having obtained all necessary governmental
     approvals.

1.12 "hGH" means authentic human growth hormone having an amino acid sequence
     identical to the amino acid sequence of naturally occurring human growth
     hormone produced using mammalian cells or genetically engineered
     micro-organisms.

1.13 "Improvements" means inventions, discoveries, developments, ideas and
     indications related to the Device(s) including its design, materials used,
     manufacture or use, which are first reduced to practice during the term of
     this Agreement and which are not encumbered by an Independent Third Party
     confidential information agreement between either party and the Independent
     Third Party. If any such confidentiality agreement should exist, both
     Medi-Ject and BTG shall make all reasonable efforts to request permission
     from such Independent Third Party to disclose such information to the other
     party.

1.14 "Independent Third Party" means any party other than Medi-Ject, BTG and
     their Affiliates.

1.15 "Medi-Ject Know How" means all confidential, engineering, scientific and
     medical information, technical data and marketing studies developed or
     acquired by or on behalf of Medi-Ject or under the control of Medi-Ject
     (other than BTG Know How) relating to the development, manufacturing, use
     and sale of Device(s)(s), including, but not limited to, engineering,
     design, analytical and clinical data, product forms, control assays and
     specifications, methods of manufacturing and preparation data and
     specifically including all information contained in all health registration
     dossiers filed in various countries of the world to the extent that such
     information is and continues to be confidential and shall further include
     all confidential Independent Third Party data which Medi-Ject has access to
     and is free to disclose without restriction or compensation to such
     Independent Third Party other than Improvements which are explicitly dealt
     with as separate issues in this Agreement.

1.16 "Net-hGH-Sales" means gross invoice of hGH sold by BTG, its Affiliates, and
     its sublicensees to Independent Third Party customers, less (a) returns,
     quantity and cash discounts, fees for hGH product distribution to BTG and
     allowances thereon actually allowed (but not including cash discounts for
     prompt payment); (b) government, managed care and other contract rebates,
     including governmental rebates required by law and retroactive price
     reductions imposed by public authorities; (c) sale taxes, use taxes and
     other similar taxes; (d) any transportation,
<PAGE>

                                                                    Page 4 of 26

     handling and insurance charges borne by the party, its Affiliates or
     sublicensees calculated as an average of such party's actual costs for all
     of its products in this category.

1.17 "Patent Rights" means those patents and patent applications identified in
     Appendix B and all patents and patent applications filed by, or issued,
     licensed or assigned to Medi-Ject in the Territory and during the Term
     which relate to the Device(s) and which are useful in the Field, together
     with any and all patents that may issue or may have issued therefrom,
     including any and all divisions, continuations, continuations-in-part,
     extensions, additions or reissues of or to any of the aforesaid patent
     applications.

1.18 "Power Pack" means a medical device that serves as the source of power for
     needle-free injecting of humans.

1.19 "Territory" means the United States of America, its territories and
     possessions.

                       ARTICLE 2 -- DESIGN AND DEVELOPMENT
                       -----------------------------------

2.1  Medi-Ject hereby agrees to Exclusively design, develop and provide to BTG,
     Device(s)(s) for use in the Field having a range of power settings and
     orifice sizes suitable for use with BTG's pharmaceutical drug and vehicle
     as described in specifications from time to time which are approved by both
     parties.

2.2  Medi-Ject and BTG each agree to maintain Medi-Ject Know How or BTG Know How
     received by it from the other party and Improvements and status of the
     Device(s) development as Confidential Information and will exercise due
     care to prevent its unauthorized disclosure during and for a period of ten
     (10) years after the termination of this Agreement. Further, BTG will
     provide Medi-Ject with the results of the development studies relating to
     the performance of the Device(s) which will be considered as Confidential
     Information. Confidential Information shall further include but not be
     limited to, all business, marketing, scientific and technical information
     including all designs, prototypes, special tooling, and any other
     information disclosed hereunder and under the Confidentiality Agreement
     between the parties in existence prior to the date of this Agreement,
     except any portion thereof which:

     (a)  is known to Medi-Ject, as evidenced by Medi-Ject's written records,
          before the disclosure by BTG;

     (b)  is disclosed by Medi-Ject after acceptance of this Agreement by a
          third party, who is not under contract to Medi-Ject and who has a
          right to make such disclosure; or
<PAGE>

                                                                    Page 5 of 26

     (c)  is or becomes party of the public domain through no fault of Medi-
          Ject;

     (d)  is known to BTG, as evidenced by BTG's written records, before the
          disclosure by Medi-Ject;

     (e)  is disclosed to BTG after acceptance of this Agreement by a third
          party, who is not under contract to BTG and who has a right make such
          disclosure; or

     (f)  is or becomes party of the public domain through no fault of BTG;

     (g)  both parties acknowledge and agree to allow disclosure of such
          information described in this Section 2.2 by the receiving party, if
          such information is required by court order, provided that the
          disclosing party shall give the other party an opportunity to review
          and approve such disclosure, said review and approval not to be
          unreasonably withheld or delayed by either party.

2.3  Both parties agree not to use each other's Know How for any purpose other
     than agreed to in this Agreement.

2.4  Both parties shall cooperate to secure regulatory approval for use of the
     Device(s) with hGH.

2.5  Medi-Ject will provide to BTG any Improvements in relation to the
     Device(s).

2.6  BTG shall provide to Medi-Ject an annual summary, commencing with the first
     calendar year after the First Commercial Sale, of its marketing plans for
     the Devices for information only. Medi-Ject shall treat such annual
     summaries from BTG as Confidential Information.

2.7  Medi-Ject shall make available to BTG, on a reasonable consultation basis,
     such advice of its technical personnel as may reasonably be requested by
     BTG in connection with the Device(s).

2.8  Throughout the term of this Agreement, Medi-Ject and BTG shall provide to
     each other promptly but no longer than within three (3) business days after
     receipt all reports (each party is aware of) on adverse effects, which may
     affect human use of the Devices. Upon receipt of any such report, the
     parties shall consult each other and decide what consequences the new
     observations shall have for the future sale of the Devices in the Field in
     the Territory. Nothing contained herein shall, however, be construed as
     restricting the obligations of either party to make a timely report of such
     matter to the relevant government authorities in the Territory.
<PAGE>

                                                                    Page 6 of 26

2.9  Medi-Ject at its own cost shall have a continuing right in the Territory to
     use, have used, manufacture and have manufactured Device(s) in the Field
     for investigational and developmental purposes only, provided always that
     Medi-Ject shall first inform BTG of its intentions so to do and shall
     ensure that the said developments are first made available to BTG and are
     not to the detriment of BTG in the Field in the Territory.

2.10 BTG at its own cost shall have a continuing right in the Territory to test,
     and have tested, competitive needle-free injector drug delivery products
     which have the same intended use as the Device(s) in the Field for
     investigational and developmental purposes only, provided always that BTG
     shall first inform Medi-Ject of its intentions so to do and shall ensure
     that said developments are first made available to Medi-Ject and are not to
     the detriment of Medi-Ject in the Field in the Territory.

            ARTICLE 3 -- LICENSE GRANT, LICENSING FEES AND ROYALTIES
            --------------------------------------------------------

3.1  Medi-Ject hereby grants to BTG the Exclusive and sublicensable right in the
     Field in the Territory, under the Patent Rights and Medi-Ject Know How and
     Improvements only for the Field, to use, have used, sell and have sold, but
     not manufacture, the Device(s) in the Territory for the Term of this
     Agreement.

3.2  All proprietary rights and rights of ownership with respect to the Patent
     Rights and Medi-Ject Know How shall at all times remain solely with
     Medi-Ject and BTG shall have no proprietary rights in or to the Patent
     Rights and Medi-Ject Know How other than those specifically granted herein.

3.3  All proprietary rights and rights of ownership with respect to BTG Know How
     shall at all times remain solely with BTG and Medi-Ject shall have no
     proprietary rights in or to BTG Know How other than those specifically
     granted herein.

3.4  All proprietary rights and rights of ownership with respect to Improvements
     pertaining to Devices shall at all times remain solely with Medi-Ject and
     BTG shall have no proprietary rights in or to the Device(s) related
     Improvements other than those specifically granted herein.

3.5  All proprietary rights and rights of ownership with respect to Improvements
     pertaining to pharmaceutical drugs shall at all times remain solely with
     BTG and Medi-Ject shall have no proprietary rights in or to the
     pharmaceutical drug related Improvements other than those specifically
     granted herein.

3.6  BTG shall exert its best reasonable efforts to commercialize and to create
     a demand for the Devices in the Territory under its own trademarks.
<PAGE>

                                                                    Page 7 of 26

3.7  BTG will be responsible for ensuring that the use, promotion and sale of
     the Device(s) within the Territory is in accordance with the legal and
     regulatory requirements of the Territory.

3.8  The choice and use of any trademarks to be used with the Device(s) other
     than those Trademark(s) already used by Medi-Ject, shall remain with BTG.

3.9  Ownership of and rights to the BTG chosen trademark(s) shall remain with
     BTG during and beyond the term of this Agreement. The use of the
     trademark(s) shall be free of royalties and any other payments.

3.10 Nothing in this Agreement shall be construed, either explicitly or
     implicitly, to grant either party a license to use each other's trademarks.

3.11 In consideration for Medi-Ject's Exclusive license to BTG as per this
     Agreement, BTG has paid to Medi-Ject and Medi-Ject hereby acknowledges
     receipt of licensing fees in the amount of Two Hundred Fifty Thousand US
     Dollars (US$250,000) which constitutes payment in full of the licensing
     fee.

3.12 Licensing fees and all other payments by BTG to Medi-Ject accruing in this
     Agreement shall be paid in United States currency. Medi-Ject shall invoice
     BTG in United States currency.

3.13 BTG shall pay to Medi-Ject royalties as follows in the event BTG uses its
     right to use or have used, sell or have sold the Device(s) in the Field in
     the Territory:

     (a)  BTG shall pay Medi-Ject a cumulative royalty on all hGH sold for use
          with Device(s). The cumulative royalty shall be calculated based on
          the Net-hGH Sales using Device(s) within the Territory after First
          Commercial Sale where Device(s) is used or sold with hGH, and the
          cumulative royalty rate shall be based on increased hGH marketshare,
          in dollars, as follows:

          % hGH Marketshare in dollars        % Cumulative Royalty
          using Device(s)                         to Medi-Ject
          ----------------------------        --------------------
                 0 to 10                              1.0
                10 to 15                              2.5
                     >15                              4.0

     (b)  BTG shall promptly give notice to Medi-Ject of the date of the First
          Commercial Sale in the Field in the Territory.

     (c)  In the event the royalty rates set forth hereabove exceed those
          allowable by applicable law or governmental rule or regulation, they
          shall be so modified as to conform to the maximum royalty rate
          allowable.
<PAGE>

                                                                    Page 8 of 26

3.14 Royalties due to Medi-Ject under Section 3.13 of this Agreement shall
     accrue when payment for Device(s) are invoiced by BTG to any Independent
     Third Party in the Territory in accordance with the provisions below.

3.15 Royalties occurring hereunder shall be due and payable on the sixtieth
     (60th) day following the close of each quarterly period (March, June,
     September, December).

3.16 Royalties accruing hereunder shall be paid to Medi-Ject or Medi-Ject's
     designee, duly named by Medi-Ject in written notice to BTG.

3.17 Royalties and all other payments by BTG to Medi-Ject accruing in this
     Agreement shall be paid in United States of America dollar currency.

3.18 If at any time, legal restrictions in the Territory prevent the prompt
     payment of royalties or any portion thereof accruing hereunder, the parties
     shall promptly meet to discuss suitable and reasonable alternative methods
     of reimbursing Medi-Ject the amount of such running royalties.

3.19 Each payment of royalties made to Medi-Ject hereunder shall be accompanied
     by a written report, signed by a financial officer of BTG, showing the
     Net-hGH-Sales and Net-hGH-Sales using the Device(s) for the months of the
     quarterly period for which payment is being made. In the event that no
     royalty is due to Medi-Ject hereunder for any such quarterly period, BTG
     shall so report.

3.20 BTG shall maintain and keep for a period of at least three (3) years,
     complete and accurate records in sufficient detail to enable any royalties
     which shall have accrued hereunder to be determined.

3.21 Upon the request of Medi-Ject, but not exceeding once in any calendar year
     period, with a minimum of two (2) weeks notice from Medi-Ject, BTG shall
     permit during normal business hours an independent public accountant,
     selected by Medi-Ject and reasonably acceptable to BTG to have access to
     all such records of BTG's as may be necessary to verify the accuracy of the
     royalty reports and payment submitted to Medi-Ject hereunder.

     (a)  Any such inspection of BTG's records shall be at Medi-Ject's expense,
          except that if any such inspection reveals a deficiency in an amount
          of running royalty actually paid to BTG hereunder in any quarterly
          period of two percent (2%) or more of the amount of such running
          royalty actually due to Medi-Ject hereunder, then the expense of such
          inspection shall be borne promptly by BTG. If such inspection reveals
          a surplus in the amount of running royalty actually paid to Medi-Ject
          by BTG, Medi-Ject shall reimburse BTG the surplus.
<PAGE>

                                                                    Page 9 of 26

                       ARTICLE 4 -- SUPPLY AND MARKETING
                       ---------------------------------

4.1  Medi-Ject agrees to Exclusively supply and BTG agrees to purchase all its
     requirements of Device(s) in the Field and in the Territory from Medi-Ject
     for an initial lterm of the longer of five (5) years following the First
     Commercial Sale of a Device(s) in the Field in the Territory or expiration
     of the last material Patent Right coverage for Device(s).

4.2  The price of a Device(s) shall be $200 per Power Pack, $3.00 per Disposable
     Adaptor and $3.00 per Disposable Front End Chamber.

     (a)  The prices for the Disposable Adaptor and the Disposable Front End
          Chamber are based on the assumption that the FDA will approve the
          Device(s) and that such approval will permit each to be used at least
          five (5) times before disposal. If such approval for such multiple
          uses is not granted or, if granted, the market does not accept
          multiple uses, then the parties shall meet and negotiate in good faith
          a lower price for each taking into account BTG's need for competitive
          pricing in the market, which price will in any event be not less than
          Medi-Ject's cost to produce each item.

     (b)  The prices may be increased or decreased only by mutual agreement of
          the parties taking into account the cost of goods, contributions to
          Medi-Ject, manufacturing costs Medi-Ject must incur and competitive
          disadvantage that Medi-Ject might incur to manufacture the Device(s)
          for BTG to comply with the terms of this Agreement and fully taking
          into account BTG's need for competitive pricing in the market.

4.3  Should additional tooling be necessary to expand production of Device(s)
     for BTG, BTG agrees to pay for any unique tooling costs required for
     Medi-Ject to commercially manufacture BTG's requirements of the Device(s).
     Any tooling which is uniquely designed for BTG's exclusive use in the Field
     in the Territory will be prenotified to BTG as to cost, use and design. BTG
     will decide if, and when, it wants Medi-Ject to proceed, in which case BTG
     will pay for such tooling. The uniquely designed tooling will be owned,
     controlled and maintained by Medi-Ject subject to Section 2.2. BTG shall
     approve such additional proposed expenses prior to such expenses being
     incurred.

4.4  Medi-Ject will be responsible for diligently filing and prosecuting a
     510(K) for BTG's Device(s) with the U.S. Food and Drug Administration
     (FDA), and other such counterpart regulatory applications in the Territory
     as BTG chooses, it being understood that BTG will reimburse all Expenses
     incurred by Medi-Ject for filing such regulatory applications in the
     Territory selected by BTG provided that BTG approves such Expenses prior to
     such Expenses being incurred. BTG will be responsible for diligently
     developing and generating appropriate data for
<PAGE>

                                                                   Page 10 of 26

     regulatory filings in the Territory to seek approval to market the
     Device(s) as part of BTG's hGH Product. BTG shall be responsible for
     maintaining all regulatory authority in the Territory for the BTG
     pharmaceutical drug associated with this Agreement.

4.5  Both parties shall have full access to each other's necessary and
     appropriate documentation to allow for regulatory submissions.

     (a)  BTG shall own and maintain all pharmaceutical registrations licenses
          and market authorizations based on said pharmaceutical registration
          licenses for the term of this Agreement and beyond unless otherwise
          provided for in this Agreement. BTG will provide Medi-Ject a written
          copy of all documentation used in the regulatory process which allows
          BTG to utilize effectively the Device(s) with hGH and obtain approval
          from the FDA for First Commercial Sale in the Territory.

     (b)  Medi-Ject will have the exclusive right to cross reference BTG's
          regulatory filings within the Field with the FDA on a worldwide basis
          for all indications not in the Field and not in the Territory.

     (c)  BTG agrees to file all necessary documents required to allow Medi-Ject
          to exercise such rights to cross reference such BTG regulatory
          filings.

     (d)  Medi-Ject shall own all 510(K) or other such counterpart regulatory
          applications and market authorizations based on said 510(K) or other
          regulatory applications for the Term and beyond unless otherwise
          provided for in this Agreement.

4.6  Medi-Ject will be responsible for and have sole control over and shall
     diligently prosecute and maintain the application for, prosecution of and
     maintenance of any patent applications and patents which incorporate any
     Improvements that may result from this Agreement or any Medi-Ject Know How
     that is related to Device(s). Such patents will be owned by Medi-Ject as
     per Article 3. The cost associated with the application for prosecution of
     the maintenance of the patent applications and patents shall be borne by
     Medi-Ject.

4.7  BTG shall be Exclusively responsible and shall, whenever legally permitted
     to do so, use reasonable best efforts to diligently market and sell the
     Device(s) in the Field in the Territory by itself, or through Affiliates or
     sublicensees as BTG may elect in its sole discretion.

     (a)  BTG shall at all times maintain written communication with Medi-Ject
          as to its plans to market, continued marketing, and sales of Device(s)
          in the Territory. Such information shall be used by Medi-Ject only for
<PAGE>

                                                                   Page 11 of 16

          information purposes and shall be treated by Medi-Ject as BTG's
          Confidential Information.

     (b)  Subject to any delay pursuant to Section 6.6, BTG and Medi-Ject shall
          cooperate to effect the filing set forth in Section 4.4 and any
          filings for governmental approval to market the Device(s) which are
          required to be made by BTG, within six (6) months of the date that BTG
          is legally permitted to sell hGH in the Territory; provided, however,
          that the Device(s) is in the final form required by BTG and available
          in sufficient quantities to conduct any evaluations or the like
          required for filing and assuming further that no clinical trials are
          required -- any delay occasioned by any failure of one or more of
          these conditions shall extend the six (6) month period accordingly.

     (c)  Subject to any delay pursuant to Section 6.6, the First Commercial
          Sale shall occur within six (6) months of the date that all necessary
          governmental approvals have been obtained.

4.8  BTG shall promptly give notice to Medi-Ject of the date of the First
     Commercial Sale.

4.9  With the understanding that Medi-Ject has developed considerable expertise
     in the use and handling of needleless injectors, Medi-Ject will upon its
     own approval, which will not be unreasonably withheld, offer its services
     for training BTG and other nominated personnel during the product
     development period prior to First Commercial Sale. BTG may wish to avail
     itself of this expertise and shall reimburse Medi-Ject for all Expenses
     associated with Medi-Ject providing such training.

                         ARTICLE 5 -- ORDERS OF DEVICES
                         ------------------------------

5.1  The parties shall meet after first regulatory submission of the Device(s)
     to negotiate in good faith an ordering schedule.

     (a)  These negotiations will incorporate Medi-Ject's anticipated need for
          six (6) months' notice for initial commercialization, the need for a
          rolling twelve (12) month forecast, and BTG's need to agree batch
          sizes, ordering dates and delivery dates.

     (b)  The parties shall reach agreement on a reasonable initial order
          amount.

5.2  BTG agrees to send to Medi-Ject at least six (6) months before the intended
     shipping date of each order, a firm and binding purchase agreement for such
     order; provided that such binding purchase agreement can be amended
     positively
<PAGE>

                                                                   Page 12 of 26

     or negatively by up to twenty-five percent (25%) by BTG within
     ninety (90) days after the original such binding purchase agreement has
     been issued by BTG to Medi-Ject; BTG may make such adjustment to a binding
     purchase agreement provided such adjustment to a binding purchase agreement
     does not impact on the ability of Medi-Ject to deliver Device(s) to BTG on
     the agreed upon delivery date of the original binding purchase order.

5.3  Quantities of Device(s) to be supplied shall conform to the specification
     approved by both parties and for manufacture or such other specification
     agreed to in writing from time to time between the parties.

5.4  Medi-Ject shall invoice BTG upon each shipment of Device(s) and BTG shall
     pay the full balance of each purchase agreement within thirty (30) days of
     delivery by Medi-Ject to the carrier designated by BTG.

5.5  Title and risk of loss with respect to Device(s) shipped by Medi-Ject for a
     given BTG purchase agreement shall pass to BTG upon delivery by Medi-Ject
     to the carrier designated by BTG.

5.6  Medi-Ject shall package at Medi-Ject's cost the Device(s) in containers
     suitable for transport by BTG's designated carrier.

5.7  Medi-Ject will ship the Device(s), appropriate product package and bulk
     accessories in numbers ordered by BTG, to up to three (3) destinations as
     designated by BTG.

     (a)  BTG shall be responsible for distribution of the Device(s) from these
          designated points.

                   ARTICLE 6 -- REPRESENTATIONS AND WARRANTIES
                   -------------------------------------------

6.1  Medi-Ject warrants that it is the Exclusive owner of all rights, title and
     interest in and to the Patent Rights and Medi-Ject Know How and that it is
     free to enter into this Agreement and to carry out all of the provisions
     hereof including its agreement to grant to BTG an Exclusive license with
     respect to the Devices in the Field and in the Territory.

6.2  Medi-Ject indemnifies and agrees to hold BTG harmless against disputes
     arising from Independent Third Parties as more fully set in this Article 6.

6.3  Medi-Ject hereby represents that, to the best of its knowledge, none of the
     Patent Rights infringe on the patents or other legally protected
     proprietary rights of any Independent Third Party in the Territory.
<PAGE>

                                                                   Page 13 of 26

6.4  Medi-Ject and BTG shall each give to the other prompt written notice of any
     claim or action made against either of them alleging that the manufacture,
     use or sale of the Devices or the Improvements in the Territory infringe
     the rights of an Independent Third Party.

     (a)  Medi-Ject and BTG agree to cooperate and collaborate with each other
          in undertaking a full investigation of the situation and in taking
          such action as they shall agree is appropriate in the circumstances in
          defense or prosecution of such infringement.

6.5  In the event of the threat of institution of any suit by a third party
     against Medi-Ject, BTG or its Affiliates or sublicensees for patent
     infringement involving the manufacture, use, sale, distribution or
     marketing of Device(s), Improvements or hGH in the Territory, the party
     threatened or sued shall promptly notify the other party in writing.

     (a)  In the event the suit is brought for patent infringement involving the
          manufacture, use, sale, distribution or marketing of the Device(s),
          Medi-Ject shall have the sole right to control the defense, which
          shall include, but is not limited to, the right to choose counsel, the
          right to control the strategy of the case and the right to control and
          enter into any settlements. The cost of the defense and any damages
          awarded shall be borne by Medi-Ject.

     (b)  In the event the suit is brought for patent infringement involving the
          manufacture, use, sale, distribution or marketing of hGH, BTG shall
          have the sole right to control the defense, which shall include, but
          is not limited to, the right to choose counsel, the right to control
          the strategy of the case and the right to control and enter into
          settlements. The cost of the defense and any damages awarded shall be
          borne by BTG.

     (c)  In the event the suit is brought for patent infringement involving the
          manufacture, use, sale, distribution or marketing of both hGH and the
          Device(s), then Medi-Ject and BTG shall jointly control the defense,
          which shall include, but is not limited to, the right to choose
          counsel, the right to control the strategy of the case and the right
          to control and enter into settlements. Any dispute regarding the
          control of the defense shall be determined in accordance with Section
          11.11. The cost of the defense and any damages awarded shall be shared
          equally.

6.6  It is understood and agreed to by the parties that it shall not be a breach
     of this Agreement if BTG, at any one or more times during the term of this
     Agreement, does not sell or stops selling Device(s) in the Territory
     because:
<PAGE>

                                                                   Page 14 of 26

     (a)  BTG is, at any one or more times during the Term of this Agreement,
          enjoined from selling hGH or Improvements or Device(s), or

     (b)  BTG is, at any one or more times during the Term of this Agreement,
          sued as a result of the manufacture, use, sale, distribution or
          marketing of the Device(s) or Improvements or hGH;

     provided, however, that BTG must resume sale of Device(s) in the Territory
     whenever: (i) it is not enjoined from selling any one or more of Device(s),
     Improvements and hGH, or (ii) a court of competent jurisdiction makes a
     final, non-appealable determination that permits BTG to sell Device(s),
     Improvements and hGH in the Territory. If a court of competent jurisdiction
     makes a final, non-appealable determination precluding BTG from
     manufacturing, using, selling, distributing or marketing Device(s) or
     Improvements or hGH in the Territory, BTG may elect, in its sole
     discretion, to terminate this Agreement upon written notice to Medi-Ject
     without any liability to Medi-Ject.

6.7  In the event that either party determines that an Independent Third Party
     is making, using or selling a product that may infringe the Patent Rights,
     it shall promptly notify the other party in writing.

     (a)  Medi-Ject, in its sole discretion, may elect to bring suit against
          such alleged infringer.

     (b)  Medi-Ject shall have the sole right to control the prosecution of the
          case, which shall include, but is not limited to, the right to chose
          counsel, the right to control the strategy of the case and the right
          to control and enter into any settlements; provided, however, that
          Medi-Ject shall not settle any such suit without the prior written
          approval of BTG, which approval shall not be unreasonably withheld.

     (c)  BTG agrees to provide all reasonable assistance to Medi-Ject that is
          requested by Medi-Ject. Medi-Ject shall pay all expenses incurred by
          BTG.

     (d)  The cost of prosecuting the case shall be borne by Medi-Ject.

     (e)  Any recoveries shall belong solely to Medi-Ject.

     (f)  If ninety (90) days after receiving a written request from BTG to do
          so, Medi-Ject elects not to bring suit, BTG shall have the right to
          commence, prosecute and control an infringement action in BTG's name
          and at its own expense, provided however, that BTG shall not settle
          any such suit without the prior approval of Medi-Ject, which approval
          shall not be unreasonably withheld or delayed. Medi-Ject agrees to
          provide all
<PAGE>

                                                                   Page 15 of 26

          reasonable assistance to BTG that is requested by BTG. Any monetary
          recovery shall belong solely to BTG.

6.8  To the best of Medi-Ject's knowledge, Medi-Ject warrants all elements
     contained in Medi-Ject Know How and in the registration dossiers, the
     Patent Rights and all other information and data in the form of statements,
     facts and figures and all information under which this Agreement is
     concluded are true and accurate.

6.9  Medi-Ject warrants that it manufactures to International Quality Assurance
     standards, that all Devices are manufactured to GMP.

6.10 Throughout the term of this Agreement and with reasonable written notice,
     but not normally exceeding once in any calendar year period both parties
     agree and their respective suppliers shall permit, during normal business
     hours, an inspection of its development, manufacturing and control
     facilities by personnel of, or chosen by the party conducting the
     inspection.

6.11 Medi-Ject warrants that all Device(s) delivered hereunder shall conform to
     the specifications agreed to by both parties, shall be fit for its intended
     use(s) in the Field, shall be free from defects in workmanship and
     materials as per specification agreed to by both parties and as such will
     be supplied with a one (1) year guarantee from normal usage.

                   ARTICLE 7 -- REJECTED DEVICES OR SHORTAGES
                   ------------------------------------------

7.1  Notwithstanding any payment made by BTG for Devices in Section 5.4, BTG may
     reject any Device(s) which fails to meet specifications as agreed by both
     parties. BTG shall, within thirty (30) days after its receipt of any
     shipment of Device(s), notify Medi-Ject in writing of any claim relating to
     any shortage in quantity of any shipment of Device(s).

     (a)  In the event of such shortage, Medi-Ject shall make up the shortage
          within thirty (30) days of receiving such notice, at no additional
          cost to BTG.

     (b)  In the event of rejection of Device(s), BTG shall confirm the
          rejection in writing and Medi-Ject shall replace the rejected
          Device(s) within ninety (90) days of receiving such notice at no
          additional cost to BTG.

     (c)  In all instances of rejections, Medi-Ject shall make arrangement with
          BTG for the return or destruction of any rejected Device(s), such
          return shipping charges to be paid by Medi-Ject.
<PAGE>

                                                                   Page 16 of 26

                          ARTICLE 8 -- INDEMNIFICATION
                           ---------------------------

8.1  Medi-Ject will indemnify and hold BTG harmless against any and all
     liability, damage, loss, cost or expense resulting from any third party
     claims made or suits brought against BTG which arise from Medi-Ject's
     willful maleficence in the use or sale of any Device(s) herein or
     Medi-Ject's breach of the representations and warranties set forth herein.

     (a)  In evidence thereof, within one (1) month of the Effective Date of
          this Agreement, Medi-Ject will provide BTG with a certificate of
          insurance and copy of such policy showing BTG to be named on
          Medi-Ject's product liability insurance.

8.2  BTG will indemnify and hold Medi-Ject harmless against any and all
     liability, damage, loss, cost or expense resulting from any third party
     claims made or suits brought against Medi-Ject which arise from BTG's
     willful maleficence in the use or sale of any Device(s) in the Field
     including but not limited to non-compliance by BTG, BTG's affiliates and
     Sublicensees, with written instructions given by Medi-Ject in connection
     with the Devices and any and all claims relating to the manufacture, use or
     sale of any such pharmaceutical product used with the Device(s).

     (a)  In evidence thereof, within one (1) month of the Effective Date of
          this Agreement, BTG will provide Medi-Ject with a certificate of
          insurance and copy of such policy showing Medi-Ject to be named on
          BTG's product liability insurance.

8.3  The party seeking indemnification shall promptly notify the other party of
     any claims asserted against it for which such indemnification is sought,
     and shall promptly deliver to the party from whom indemnification is sought
     a true copy of any summons or other process, pleading or notice issued in
     any lawsuit or other proceeding to assert or enforce such claim.

     (a)  The indemnifying party reserves the right to control the
          investigation, trial and defense of such lawsuit or action (including
          all negotiations to effect settlement) any appeal arising therefrom
          and to employ or engage attorneys of its own choice, provided,
          however, that such indemnifying party may not settle any such lawsuit,
          claim or action if such settlement includes non-monetary or equitable
          relief that would materially and adversely affect the indemnified
          party, without the consent of that party, which shall not be
          unreasonable withheld.
<PAGE>

                                                                   Page 17 of 26

     (b)  The party seeking indemnification may, at its own cost, participate in
          such investigation, trial and defense of such lawsuit or action and
          any appeal arising therefrom.

     (c)  The party seeking indemnification, its employees, agents and
          representatives shall provide full cooperation to the indemnifying
          party at all times during the pendency of the claim or lawsuit,
          including, without limitation, providing the party with all reasonably
          available information concerning the claim.

                  ARTICLE 9 -- FORCE MAJEURE; FAILURE TO SUPPLY
                  ---------------------------------------------

9.1  Any delay in the performance of any of the duties or obligations of either
     party hereto shall not be considered a breach of this Agreement provided
     that such delay is caused by or is the result of any acts of God, acts of
     the public enemy, insurrections, riots, labor disputes, including strikes,
     lockouts or boycotts, fires, explosions, floods, or other unforeseeable
     causes beyond the control and without the fault or negligence of the party
     so affected. The party so affected shall give prompt notice to the other
     party of such cause as rapidly as possible.

9.2  If Medi-Ject fails, as set forth in Section 9.1, to supply all or part of
     the Licensed Product quantities ordered by BTG as per Section 5.1, BTG may,
     in its discretion, (a) require Medi-Ject to supply the undelivered
     Device(s) at a future date mutually agreed upon or (b) decrease the
     quantity of Device(s) originally ordered by BTG and deficient from
     Medi-Ject by that quantity not supplied by Medi-Ject due to Medi-Ject
     informing BTG force majeure due to Section 9.1.

9.3  If Medi-Ject is unable to supply BTG partly or in total of the quantities
     ordered by BTG over a period of three (3) months, Medi-Ject is obligated to
     find another manufacturing source and has to guarantee the supply of BTG's
     requirements of the Device(s) at the then current Medi-Ject price of
     Device(s) in the Field in the Territory, (a) if Medi-Ject cannot find
     another manufacturing source to satisfy Medi-Ject manufacturing commitments
     as per Section 9.2(b), BTG may decrease the quantity of Device(s)
     originally ordered by BTG and deficient from Medi-Ject by that quantity not
     supplied by Medi-Ject due to Medi-Ject informing BTG force majeure due to
     Section 9.1, and seek supply from an Independent Third Party to which
     Medi-Ject will provide under strict confidentiality and limitation any
     necessary know-how, information, licenses or tooling to the third party to
     produce only enough Device(s) to fulfill Medi-Ject's delinquent quantity
     obligation to BTG during Section 9.1 provisions.

     (a)  When Medi-Ject can once again supply BTG's requirements, the third
          party supply commitments will be terminated and all know-how,
<PAGE>

                                                                   Page 18 of 26

          information, licenses and tooling transfer to the party for
          manufacturing during Section 9.1 provisions will at Medi-Ject's sole
          discretion be destroyed or transferred, and Medi-Ject will resume
          supplying BTG with Device(s).

     (b)  During Independent Third Party manufacturing of Device(s) as per
          Section 9.3(a), Medi-Ject will not guarantee pricing of Device(s) in
          the Field in the Territory.

9.4  During Medi-Ject's default as described in Section 9.2(b), if BTG's pricing
     received from the Independent Third Party exceeds Medi-Ject's Device(s)
     pricing as per Section 4.2, BTG's obligation to pay royalties to Medi-Ject
     for sales of Device(s) provided by the Independent Third Party and sold by
     BTG shall cease until such time that: (a) pricing by Independent Third
     Party is equal or less than Medi-Ject's pricing as per Section 4.2 or (b)
     Medi-Ject resumes manufacturing of BTG's Device(s).

                       ARTICLE 10 -- TERM AND TERMINATION
                       ----------------------------------

10.1 This Agreement shall commence upon the Effective Date and shall continue in
     effect for the longer of five (5) years following the First Commercial Sale
     of Device(s) in the Field in the Territory or expiration of all patent
     coverage for Device(s) unless earlier terminated as provided below.

10.2 Notwithstanding the provisions of Section 10.1, if any party shall enter
     into liquidation either voluntary or compulsory (except for the purpose of
     amalgamation or reconstruction previously approved of in writing) or in any
     manner assign this Agreement or make any assignment for the benefit of
     creditors or cease or threaten to cease to carry on business or is unable
     to pay its debts as they fall due this Agreement shall terminate
     immediately.

     (a)  To protect BTG's interests in the event Medi-Ject is acquired or
          enters into a Chapter 11 proceeding or other bankruptcy proceeding or
          into any liquidation, dissolution or winding up of the affairs of the
          corporation either voluntary or compulsory, or in any manner assigns
          this Agreement or makes any assignment for the benefit of creditors or
          ceases or threatens to cease to carry on business or is unable to pay
          its debts as they fall due, Medi-Ject will within fifteen (15) days of
          the Effective Date, place in escrow with an Independent Third Party
          designated by BTG, all Know How, information, licenses and tooling
          required to manufacture Device(s) and such escrowed items along with
          any inventory of Devices shall be immediately transferred to BTG upon
          the occurrence of any of the
<PAGE>

                                                                   Page 19 of 26

          aforesaid events, the licenses granted to BTG pursuant to Article 3
          shall be deemed and shall become fully-paid, perpetual and
          irrevocable.

10.3 Except as provided in Section 6.6, either party may terminate upon the
     breach of any material provision of this Agreement if the breach is not
     cured within ninety (90) days after receipt of written notice thereof to
     the breaching party.

     (a)  Should, however, the other party remedy the default upon which said
          notice is based within the said ninety (90) day period, the notice
          shall be without effect and this Agreement shall continue in full
          force and effect.

10.4 In the event that this Agreement is terminated prior to the date of its
     expiration in the Territory, due to the fault of BTG, BTG shall promptly
     make an accounting to Medi-Ject of the inventory of all Devices which it
     and its agents and distributors have on hand in the Territory, if any, as
     of the date of such termination and said parties shall thereafter have the
     right for a period of six (6) months after the said termination to sell
     such inventory of the Devices.

     (a)  Medi-Ject will instruct BTG, and BTG will comply with said
          instructions, to dispose of any remaining inventory of the Device(s)
          in accordance with regulatory requirements or return remaining
          inventory of Device(s) to Medi-Ject. BTG shall pay all expenses for
          such disposal or return of Device(s).

10.5 Except as provided in Section 6.6, termination of this Agreement, due to
     the fault of either party, shall be without prejudice to any other rights
     or remedies then or thereafter available to either party under this
     Agreement or otherwise.

10.6 Termination of the Agreement prior to the expiration of its term shall not
     affect in any way either party's waiver of or failure to take action with
     respect to any previous default hereunder.

10.7 Except as provided in Section 6.6, BTG may terminate this Agreement at any
     time during the supply period (Article 4) with one hundred eighty (180)
     days written notice to Medi-Ject of intent to terminate provided that all
     outstanding invoices, purchase orders and other payments due to Medi-Ject
     as per this Agreement are paid-in-full by BTG prior to such termination.

10.8 If a delay in performance is caused by those acts set forth in Section 9.1,
     excluding any delay pursuant to Section 6.6, and such delay last more than
     six (6) months, any party shall have the right to immediately terminate
     this Agreement.

10.9 Upon termination of this Agreement for any reason, all licenses granted
     hereunder, except as provided in Section 10.2(a), shall immediately
     terminate and each party shall return all Know How and Confidential
     Information to the party
<PAGE>

                                                                   Page 20 of 26

     from which it was received, provided, however, that if Section 10.2(a) is
     applicable, BTG shall retain all Know How and Confidential Information
     received from Medi-Ject.

10.10 Except as provided in Section 10.2(a), BTG agrees that it will not use any
     Medi-Ject Know How or Confidential Information of Medi-Ject, either during
     or at any time after termination of this Agreement, to develop a competing
     product to the Device(s)(s) unless such product has been authorized by
     Medi-Ject.

10.11 Medi-Ject agrees that it will not use any BTG Know How or Confidential
     Information of BTG, either during or at any time after termination of this
     Agreement, to develop a competing product to BTG's hGH product unless such
     product has been authorized by BTG.

                           ARTICLE 11 - MISCELLANEOUS
                           --------------------------

11.1 This Agreement constitutes the entire understanding between the parties
     with reference to the subject matter hereof and no statements or other
     agreements, oral or written, shall vary or modify the written terms. This
     Agreement may be modified by mutual written agreement of the parties.

11.2 All representations, warranties, covenants and agreements set forth in this
     Agreement and all duties and obligations of the parties hereunder shall
     survive final payment and the acceptance of Device(s).

11.3 The parties expressly agree and contract that it is not the intention of
     either party to violate any public policy, statutory or common laws, rules,
     regulation, treatises or decisions of any government or agency thereof of
     any country. If any word, sentence, paragraph, clause or combination
     thereof of this Agreement is judicially or administratively interpreted or
     construed as being in violation or any such provisions in any country, such
     words, sentences, paragraphs, clauses of combinations thereof shall be
     inoperative in each such country and the remainder of this Agreement shall
     remain binding upon the parties hereto.

11.4 Sections 2.2, 4.5, 8.1, 8.2, 8.3, 10.2, 10.4, 10.9, 10.10, 10.11, 11.2,
     11.7 and Article 12 shall survive this Agreement.

11.5 This Agreement shall be binding upon and shall inure to the benefit of the
     parties hereto and their respective assigns and successors in interest;
     provided, however, neither party shall assign this Agreement in whole or in
     part without the written consent of the other, which consent shall not be
     unreasonably withheld.
<PAGE>

                                                                   Page 21 of 26

11.6  All notices hereunder shall be in writing and shall be sent by registered
      or certified airmail, facsimile, telex, to the following addresses for the
      respective parties or to such other address as either party may specify by
      notice to the other party during the term of this Agreement:

      If to Medi-Ject:

         Medi-Ject Corporation
         161 Cheshire Lane, Suite 100
         Minneapolis, Minnesota 55441
         Telephone: (612) 475-7705
         Facsimile: (612) 476-1009

      If to BTG

         President
         Bio-Technology General Corp.
         70 Wood Avenue South
         Iselin, New Jersey 08830
         Telephone: (732) 632-8800
         Facsimile: (732) 632-8810

      Such notice shall be effective as of its date of sending of mailing or
      transmission.

11.7  The validity and interpretation of this Agreement shall be governed by and
      construed in accordance with the laws of the State of Minnesota in the
      United States of America.

11.8  All titles and captions in the Agreement are for convenience only and
      shall not be of any meaning or substance.

11.9  Any waiver by any party hereto of any breach of any term or condition of
      the Agreement shall not constitute a waiver of any other breach of the
      same or any other term or condition.

11.10 This Agreement may be executed in any number of counterparts, each of
      which shall be deemed an original, but all of which together shall
      constitute one and the same instrument.

11.11 Neither party will issue any press release, SEC filings, prospectus or any
      other public announcement relating to this Agreement or its terms without
      obtaining the other party's prior written approval which approval will not
      be unreasonably withheld or delayed, provided that both parties allow
      disclosure of information to
<PAGE>

                                                                   Page 22 of 26

      comply with the country, state and local laws and regulations in the
      Territory. The term "press release", as used herein, includes follow-up
      correspondence, press kits, and the like which may be provided in response
      to inquiries from the media or others.

11.12 BTG shall be deemed an independent contractor of Medi-Ject and, as such,
      BTG shall not be entitled to any benefits applicable to employees of
      Medi-Ject. Nothing contained in this Agreement shall be construed or
      implied to create an agency, partnership, or employer and employee
      relationship between BTG and Medi-Ject. At no time shall one make
      commitments or incur any charges or expenses for or in the name of the
      other party except as specifically provided herein.

11.13 Any dispute, controversy or claim arising out of or relating to this
      Agreement (hereinafter collectively referred to as "Dispute") shall be
      attempted to be settled by the parties, in good faith, by submitting each
      such Dispute to appropriate senior management representatives of each
      party in an effort to effect a mutually acceptable resolution thereof. In
      the event that no mutually acceptable resolution is achieved, then the
      parties shall submit the Dispute to arbitration, as set forth in Section
      11.14, below.

11.14 Any Dispute relating to, arising out of or in connection with this
      Agreement or the performance or non-performance of either party any
      permitted assignee thereunder shall be submitted to arbitration under the
      Commercial Arbitration Rules and regulations of the American Arbitration
      Association.

      (a)  In connection therewith, three (3) arbitrators shall constitute the
           panel of arbitrators.

      (b)  Each party shall bear its own expenses in connection with any such
           arbitration.

      (c)  The costs and expenses of the arbitration itself shall be borne by
           the parties equally unless the determination by the panel of
           arbitrators includes an award of costs, in which case expenses shall
           be borne in accordance with such award.

      (d)  The decision and award of the panel of arbitrators shall be final and
           conclusive upon the parties, in lieu of all other legal, equitable or
           judicial proceedings between them, and no appeal or judicial review
           of the award or decision of the panel of arbitrators shall be taken,
           but rather any such
<PAGE>

                                                                   Page 23 of 26

           award or decision may be entered as a judgment and enforced in any
           court having jurisdiction over the party against whom enforcement is
           sought.

      (e)  The place of arbitration shall be Philadelphia, Pennsylvania.

      (f)  The arbitration shall be conducted in the English language.

                          ARTICLE 12 -- FIRST AGREEMENT
                          -----------------------------

12.1  The First Agreement is terminated as of the Effective Date and this
      Agreement substituted therefor. The parties agree and acknowledge that
      each and every dispute, controversy or claim which did arise or could have
      arisen out of or relating to the First Agreement is extinguished and
      resolved and settled as of the Effective Date and that neither party has,
      had or shall have any obligation or liability to the other with respect to
      any such dispute, controversy or claim.

The parties intending to be bound hereby have caused this Agreement to be signed
by their duly-authorized representatives as of the Effective Date.

BIO-TECHNOLOGY GENERAL CORP.           MEDI-JECT CORPORATION

By: /s/ S. Fass                        By: /s/ Franklis Pass
    ------------------------------         -------------------------------

Name: S. Fass                          Name: Franklin Pass
      ----------------------------           -----------------------------

Title: CEO                             Title: Chairman & CEO
       ---------------------------            ----------------------------
<PAGE>

                                                                   Page 24 of 26

                               APPENDIX A - DEVICE

                             MJ7 Product Description

The MJ7 is a needle-free drug delivery system composed of a power pack, a
needle-free syringe assembly, an adapter assembly for drawing drug from a
traditional glass vial and an adapter cap to serve as a container closure for
the drug vial. The power pack is reusable and is connected with the needle-free
syringe when injecting or aspirating drug. The device is hand-held and spring
powered. The delivered dose can be varied by the user up to the maximum of 0.5
ml in 0.01 ml increments. The needle-free syringe, adapter assembly and adapter
cap are the only drug or injection site contacting materials, and these parts
and assemblies are provided to the end user as sterile. The device is readied
for use, or armed, by manually compressing a spring using a rotating or twisting
motion. A similar but opposite twisting motion is used to dose the needle-free
syringe when it is attached to the power pack. The drug to be delivered is
injected by holding the device against the injection site with slight pressure
and in a fashion that the needle-free syringe is in intimate contact with the
injection site. Pushing a button which releases the energy stored in the spring
triggers the injection. This device includes a safety mechanism that prevents
inadvertent firing of the device. The safety is automatically set in the "safe"
or non-firing mode when the device is armed. The safety prevents device
actuation by preventing the button from being pushed. The device is primarily
cylindrical in shape with a maximum diameter of approximately 1-inch. The length
of the device is approximately 6 inches when the spring is fully compressed and
the needle-free syringe is not attached. The device is approximately 7 3/4
inches when the device is fully extended at a dosage setting of 0.5 ml and the
needle-free syringe is attached. The weight of the device is approximately 1/3
lbs. (135 grams) without the disposable components.

                                [PICTURE OF MJ7]
<PAGE>

                                                                   Page 25 of 26

                              APPENDIX B - PATENTS

                             U. S. PATENTS - ISSUED

<TABLE>
<CAPTION>
--------------------------- --------------------------------------- -------------------------------------- -------------------------
U. S. Patent No.            Name                                                 Inventor(s)                   Date of Patent
--------------------------- --------------------------------------- -------------------------------------- -------------------------
<S>                         <C>                                     <C>                                    <C>
4,507,113                   HYPODERMIC JET INJECTOR                 DUNLAP, KENNETH W.                     MARCH 26, 1985
--------------------------- --------------------------------------- -------------------------------------- -------------------------
Des.304,616                 MEDICAMENT INJECTOR                     DUNLAP, KENNETH W.; BARDWELL, DAVID    NOVEMBER 14, 1989
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,062,830                   DRY DISPOSABLE NOZZLE ASSEMBLY FOR      DUNLAP, KENNETH W.                     NOVEMBER 5, 1991
                            MEDICAL JET INJECTOR
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,697,917                   NOZZLE ASSEMBLY WITH ADJUSTABLE         SADOWSKI, PETER L.; SCHIFF, DAVID;     DECEMBER 16, 1997
                            PLUNGER TRAVEL GAP                      MULHAUSER, PAUL
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,722,953                   NOZZLE ASSEMBLY FOR INJECTION DEVICE    SCHIFF, DAVID; MULHAUSER, PAUL         MARCH 3, 1998
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,769,138                   NOZZLE AND ADAPTER FOR LOADING          SADOWSKI, PETER L.; NELSON,            JUNE 23, 1998
                            MEDICAMENT INTO AN INJECTOR             SHELDON;  SCHIFF, DAVID; STOECKMANN,
                                                                    WALTER
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,800,388                   PLUNGER/RAM ASSEMBLY ADAPTED FOR A      SCHIFF, DAVID; MULHAUSER, PAUL         SEPTEMBER 1, 1998
                            FLUID INJECTOR
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,836,911                   INJECTION DEVICE HAVING POSITIONING     MARZYNSKI, MATTHEW; MULHAUSER,         NOVEMBER 17, 1998
                            MEANS                                   PAUL;  SCHIFF, DAVE
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,846,233                   COUPLING DEVICE FOR MEDICAL INJECTION   LILLEY, STEPHEN J.; TAYLOR, HUGH       DECEMBER 8, 1998
                            SYSTEM                                  F.;  THEOBALD, DAVID R.; CARLSON,
                                                                    CRAIG J.; ROSEN, DAVID I.;  JOHNSON,
                                                                    THOMAS R.
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,865,795                   SAFETY MECHANISM FOR INJECTION DEVICES  SCHIFF, DAVID; MULHAUSER, PAUL         FEBRUARY 2, 1999
--------------------------- --------------------------------------- -------------------------------------- -------------------------
5,891,085                   NOZZLE ASSEMBLY WITH LOST MOTION        LILLEY, STEPHEN J.; TAYLOR, HUGH       APRIL 6, 1999
                            CONNECTION FOR MEDICAL INJECTOR         F.;  THEOBALD, DAVID R.; CARLSON,
                            ASSEMBLY                                CRAIG J.; ROSEN, DAVID I.;  JOHNSON,
                                                                    THOMAS R.
--------------------------- --------------------------------------- -------------------------------------- -------------------------

</TABLE>
<PAGE>

                                                                   Page 26 of 26

                      U. S. PATENTS - ISSUED (Continued)

<TABLE>
<CAPTION>

-------------------------- ------------------------------------------- ------------------------------------- -----------------------
U. S. Patent No.           Name                                                    Inventor(s)                  Date of Patent
-------------------------- ------------------------------------------- ------------------------------------- -----------------------
<S>                        <C>                                        <C>                                    <C>
5,921,967                  PLUNGER FOR NOZZLE ASSEMBLY                 SADOWSKI, PETER L.; SCHIFF, DAVID;    JULY, 13, 1999
                                                                       STOECKMANN, WALTER; MULHAUSER, PAUL
-------------------------- ------------------------------------------- ------------------------------------- -----------------------
5,875,976                  LOCKING MECHANISM FOR NOZZLE ASSEMBLY       NELSON, SHELDON; SCHIFF, DAVID;       MARCH 2, 1999
                                                                       STOECKMANN, WALTER
-------------------------- ------------------------------------------- ------------------------------------- -----------------------
</TABLE>

                              APPLICATIONS - FILED
<TABLE>
<CAPTION>

-------------------------- ------------------------------------------------ ----------------------------------- --------------------
Application No.            Name                                                        Inventor(s)                Reference No.
-------------------------- ------------------------------------------------ ----------------------------------- --------------------
<S>                        <C>                                              <C>                                 <C>
60/094,163                 LOADING MECHANISM FOR MEDICAL INJECTOR ASSEMBLY  DEBOER, DAVID M.; LESCH, JR. PAUL   8066-047
                                                                            R.; NELSON, SHELDON J.
-------------------------- ------------------------------------------------ ----------------------------------- --------------------
60/094,167                 INJECTION-ASSISTING PROBE FOR MEDICAL INJECTOR   DEBOER, DAVID M.; SADOWSKI, PETER   8066-048
                           ASSEMBLY                                         L.; LESCH, PAUL R.; BERMAN,
                                                                            CLAUDE L.; GIAMBATTISTA, LUCIO
-------------------------- ------------------------------------------------ ----------------------------------- --------------------

</TABLE>

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