**CONFIDENTIAL        TREATMENT REQUESTED: **

**SETTLEMENT        & WORLDWIDE LICENSE AGREEMENT**

**ARTICLE        I.**
**DEFINITIONS**

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| 1.1.1   | “Affiliate”                  shall mean a person or an entity that controls, is controlled by,                  or is                  under common control with a Party to this                  Agreement. |
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| 1.1.2   | “Alliance”                  shall mean Alliance as identified as a Party above and any Affiliate                  of                  Alliance. |
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| 1.1.3   | “Alliance                  Licensed Patents”                  shall mean Licensed Patents which are owned, obtained, acquired,                  purchased                  by or licensed to, with a right to sublicense, or in any way under                  the                  control or at disposal of Alliance, except for Third Party patents                  and                  patent applications acquired after December 20, 2000 by Alliance                  which,                  prior to their acquisition and not as a result of the negotiations                  leading                  up to such acquisition, had been previously exclusively licensed                  or                  otherwise exclusively restricted to any Third                  Party. |
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| 1.1.4   | “BR-1”                  shall mean a phospholipid-stabilized Microbubble formulation not                  prepared                  by freeze drying wherein the fluorine atoms contained in the Microbubbles                  are in the form of SF6. |
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| 1.1.5   | “BR-14”                  shall mean a phospholipid-stabilized Microbubble formulation not                  prepared                  by spray drying wherein the fluorine atoms contained in the Microbubbles                  are in the form of CF4,                  C2F6,                  C3F6,                  C4F10                  or                  mixtures thereof. |
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| 1.1.6   | “Bracco”                  shall mean Bracco as identified as a Party above and any Affiliate                  of                  Bracco. |
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| 1.1.7   | “Bracco                  Licensed Patents”                  shall mean Licensed Patents which are owned, obtained, acquired,                  purchased                  or licensed to, with a right to sublicense, or in any way under                  the                  control or at disposal of Bracco, except for Third Party patents                  and                  patent applications acquired after December 20, 2000 by Bracco                  which,                  prior to their acquisition and not as a result of the negotiations                  leading                  up to such acquisition, had been previously exclusively licensed                  or                  otherwise exclusively restricted to any Third                  Party. |
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| 1.1.8   | “Distributor”                  shall mean any Third Party engaged solely in the shipping, transportation,                  or distribution of any product, whether or not owned by a                  Party. |
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| 1.1.9   | “Imavist”                  shall mean a phospholipid-stabilized Microbubble formulation not                  prepared                  by freeze drying wherein the fluorine atoms contained in the Microbubble                  are in the form of C6F14. |
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| 1.1.10   | “Imavist                  II”                  shall mean a phospholipid-stabilized Microbubble formulation not                  prepared                  by freeze drying wherein the fluoride atoms contained in the Microbubble                  are in the form of C6F14 or any three fluoroether species or any                  combination thereof to be named by Alliance within five years of                  the                  Effective Date of this Agreement. |
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| 1.1.11   | “Joint                  Development Parties”                  shall mean any Third Party engaged in the development, manufacture,                  sale,                  use, exportation or importation of a Party’s                  Product(s). |
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| 1.1.12   | “Licensed                  Patents”                  shall mean all present and future patent and patent application                  claims,                  worldwide, that are directed to Microbubbles, formulations of                  Microbubbles, intermediates used in making Microbubbles, methods                  of                  preparing Microbubbles or the use of Microbubbles in Ultrasound                  Imaging                  (including harmonic imaging) that cover a Product, method of preparing                  a                  Product or method of using a Product, provided that such patent                  and patent                  application claims shall not include those directed to (i) non-Ultrasound                  Imaging uses of Microbubbles such as uses in drug delivery; gene                  therapy;                  sonothrombolysis; magnetic resonance imaging; and oxygen delivery,                  and                  (ii) Microbubbles with targeting ligands, peptides or chelates                  and                  formulations, intermediates for, methods of preparing and the use                  of                  same. |
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| 1.1.13   | “Medical                  Diagnostic Imaging Field”                  shall mean any *in                  vivo*                  imaging of at least a portion of a patient, including but not limited                  to                  radiopharmaceutical, ultrasound, MRI, X-ray and light                  imaging. |
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| 1.1.14   | “Microbubbles”                  shall mean microbubbles, microspheres, microballoons, microparticles                  and/or microvesicles containing gas or gas                  mixtures. |
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| 1.1.15   | “Physiologically                  Acceptable Gas”                  shall mean a gas selected from air, nitrogen, oxygen, carbon dioxide,                  helium, xenon or mixtures thereof. |
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| 1.1.16   | “Products”                  shall mean Imavist or Imavist II in the case of Alliance or Schering,                  and                  BR-1 or BR-14 in the case of                  Bracco. |
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| 1.1.17   | “Schering”                  shall mean Schering as identified as a Party above and any Affiliates                  of                  Schering. |
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| 1.1.18   | “Schering                  Licensed Patents”                  shall mean Licensed Patents which are owned, obtained, acquired,                  purchased                  by or licensed to, with a right to sublicense, or in any way under                  the                  control or at disposal of Schering, except for Third Party patents                  and                  patent applications acquired after December 20, 2000 by Schering                  which,                  prior to their acquisition and not as a result of the negotiations                  leading                  up to such acquisition, had been previously exclusively licensed                  or                  otherwise exclusively restricted to any Third                  Party. |
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| 1.1.19   | “Third                  Party”                  shall mean any entity other than Bracco, Alliance, or Schering,                  including                  any person or other entity that controls, is controlled by, or                  is under                  common control with that entity. |
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| 1.1.20   | “Ultrasound                  Imaging”                  shall mean the *in                  vivo*                  imaging of at least a portion of a patient with ultrasound, including                  but                  not limited to harmonic imaging. |
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**ARTICLE        II.**
**WORLDWIDE        GRANT OF INTELLECTUAL PROPERTY RIGHTS**

**ARTICLE        III.**
**WORLDWIDE        SETTLEMENT OF INTELLECTUAL PROPERTY DISPUTES**

| 3.1.1   | withdraw                  all current oppositions brought against the Licensed Patents of                  another                  Party in countries foreign to the United                  States; |
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| 3.1.2   | refrain                  from filing any future oppositions or other challenge against the                  Licensed                  Patents of another Party in countries foreign to the United                  States; |
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| 3.1.3   | refrain                  from filing any requests for interference, reexamination or other                  challenge against the Licensed Patents of another Party in the                  United                  States; and |
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| 3.1.4   | in                  the event an interference is declared by the United States Patent                  and                  Trademark Office (“PTO”), meet and cooperate in good faith to find a joint                  settlement in a timely and efficient manner consistent with the                  requirements of 35 U.S.C. § 135 and other applicable laws and                  regulations. |
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| 3.2.1   | Alliance                  will file three motions in the Interference, namely, (1) a motion                  to                  **[****]**, (2) a motion to **[****]**, and (3)                  a motion to be**[****]**. |
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| 3.2.2   | Bracco                  will file papers in the Interference stating that it will not oppose                  the                  two motions set forth in Section 3.2.1 above and requesting entry                  of an                  adverse judgment against Bracco on Count                  2. |
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| 3.2.3   | Bracco                  will file motions in the Interference **[****]** Schneider                  AAA application, which claims are set forth in Exhibits B and C                  annexed                  hereto) and accompanying motions for                  benefit. |
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| 3.2.4   | Alliance                  will file papers in the Interference stating that it will not oppose                  the                  motions set forth in Section 3.2.3 above and requesting entry of                  an                  adverse judgment against Alliance on the Proposed                  Counts. |
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| 3.2.5   | Bracco                  and Alliance will generally cooperate in a reasonable manner in                  filing the                  motions and papers identified above. In this regard, Bracco and                  Alliance                  will file no other motions or other papers in the Interference                  other than                  those that are identified in Sections 3.2.1, 3.2.2, 3.2.3 and 3.2.4                  above                  and 3.3 below unless they are reasonably necessary to effectuate                  the                  above. If, however, after the Parties file these motions and papers,                  the                  PTO comes to some other judgment that does not include awarding                  Alliance                  judgment for Count 2 and either awarding Bracco judgment for the                  Proposed                  Counts or denying or dismissing the motions for the Proposed Counts                  (e.g.,                  the PTO sua sponte                  corresponds some or all of the claims that make up Count 2 and                  some or all                  of the claims that make up the Proposed Counts to a single count                  in the                  original interference or in a new interference), then Bracco and                  Alliance                  will confer on an appropriate way to advance the resolution of                  the                  Interference. If agreement on such an appropriate way to advance                  the                  resolution cannot be reached, Bracco and Alliance will be free                  to file any                  motions or other papers to pursue any                  outcome. |
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**[****]**
**[****]**
**[****]**
**[****]**
**[****]**
**[****]**
**[****]**
**[****]**
**[****]**

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**ARTICLE        IV.**
**FIRST        RIGHT OF NEGOTIATION**

**ARTICLE        V.**
**EFFECT        OF AGREEMENT ON THIRD PARTIES**

**ARTICLE        VI.**
**FEES,        PAYMENTS, ROYALTIES, WARRANTIES, INDEMNIFICATION**

| 6.2.1   | each                  Party is a corporation duly organized and validly existing and                  in good                  standing under the laws of the state or country in which it is                  organized                  and has all requisite power and authority to enter into and perform                  this                  Agreement and the transactions contemplated hereby and to require                  its                  Affiliates to abide by its terms and                  conditions; |
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| 6.2.2   | all                  requisite corporate actions on the part of each Party has been                  completed                  for the authorization of the execution and delivery of this Agreement                  and                  the performance of the transactions contemplated                  hereunder. |
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| 6.2.3   | this                  Agreement is, and such other transactions will be, valid and binding                  obligations of each Party enforceable in accordance with their                  respective                  terms; and |
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| 6.2.4   | the                  execution, delivery and performance of this Agreement and the consummation                  of transactions contemplated hereby do not and will not violate                  the                  provisions of any Party’s certificate of incorporation or bylaws or                  similar type documents or the provisions of any note, indenture,                  lease,                  license permit or other instrument or obligation or violate any                  law,                  order, rule or regulation applicable to                  it. |
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**ARTICLE        VII.**
**DURATION**

** **

**ARTICLE        VIII.**
**CONFIDENTIALITY**

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**ARTICLE        IX.**
**MISCELLANEOUS**

| 9.1.1   | For                  Alliance: |
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| 9.1.2   | For                  Bracco: |
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| 9.1.3   | For                  Schering: |
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| Alliance                  Pharmaceutical Corp. By:                  /s/                  Lloyd A.                  Rowland                              Name:                  Lloyd A. Rowland Title:                  Vice President & General Counsel Date:                  31 Jan 2001   Schering                  Aktiengellschaft By:/s/                  H. G.                  Rook                                       Name:                  H. G. Rook Title:                  Head of SBK, DG & RP Date:                  31.1.2001  | for                  and on behalf of Bracco                  International B.V. By:                  Bracco Holding BV Name:                  Diana Bracco Title:                  Managing Director Date:                  31.01.01  |
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