Array BioPharma Inc.



                             1998 STOCK OPTION PLAN







                             Effective July 1, 1998











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                              Array BioPharma Inc.



                             1998 STOCK OPTION PLAN



                                TABLE OF CONTENTS



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ARTICLE I - INTRODUCTION........................................................................................-1-

        1.1     Establishment...................................................................................-1-

        1.2     Purposes........................................................................................-1-

        1.3     Effective Date..................................................................................-1-



ARTICLE II - DEFINITIONS........................................................................................-1-



ARTICLE III - PLAN ADMINISTRATION...............................................................................-3-



ARTICLE IV - STOCK SUBJECT TO THE PLAN..........................................................................-3-

        4.1     Number of Shares................................................................................-3-

        4.2     Adjustments for Stock Split, Stock Dividend, Etc................................................-4-

        4.3     Adjustments for Certain Distributions of Property...............................................-4-

        4.4     Distributions of Capital Stock and Indebtedness.................................................-4-

        4.5     No Rights as Shareholder........................................................................-4-

        4.6     Fractional Shares...............................................................................-4-

        4.7     Determination by the Committee, Etc.............................................................-5-



ARTICLE V - PARTICIPATION.......................................................................................-5-



ARTICLE VI - STOCK OPTIONS......................................................................................-5-

        6.1     Grant of Options to Eligible Employees and Eligible Consultants.................................-5-

        6.2     Option Certificates.............................................................................-6-

        6.3     Certain Option Terms............................................................................-6-

                (a)      Number of Shares.......................................................................-6-

                (b)      Price..................................................................................-6-

                (c)      Duration and Exercise of Options.......................................................-6-

                (d)      Termination of Employment or Service, Death, Disability, Etc...........................-6-

                (e)      Exercise, Payments, Etc................................................................-7-

                (f)      Withholding............................................................................-8-

        6.4     Restrictions on Incentive Stock Options.........................................................-9-

                (a)      Initial Exercise.......................................................................-9-

                (b)      Ten Percent Shareholders...............................................................-9-

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ARTICLE VII - CORPORATE REORGANIZATION; CHANGE OF CONTROL.......................................................-9-

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