EXHIBIT10.43

|  | CONFIDENTIAL TREATMENT REQUESTED PURSUANTTO RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Certain portions of this exhibit havebeen omitted pursuant to a request for confidential treatment underRule 24b-2 of the Securities Exchange Act of 1934. The omittedmaterials have been filed separately with the Securities andExchange Commission.

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DR. JOHNNYEASMON, PROF. DR. GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER,PROF. DR. HEINZ-HERBERT FIEBIG AND PROF. DR. JOHANN HOFMANN

AND AUSTRIA WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H

- and -

VION PHARMACEUTICALSINC

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RESEARCHCOLLABORATION AND OPTION AGREEMENT

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**THIS AGREEMENT**is made the24th of November, 2003

**BETWEEN:**

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| (1)  | DR. JOHNNYEASMON, PROF. DR. GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER,**Institute of Pharmacy, University of Innsbruck, Innrain 52a, A-6020Innsbruck, Austria ,**PROF. DR. HEINZ-HERBERT FIEBIG**, AmFlughafen 12, D-79108 Freiburg, Germany,**PROF. DR. JOHANN HOFMANN,**Institute of Medical Chemistry and Biochemistry, University ofInnsbruck, Fritz-Pregl-Strasse 3, A-6020 Innsbruck, Austria and**AUSTRIA WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H., **Ungargasse 37,A-1030 Vienna, Austria** **(collectively called"LICENSOR");and** |

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| (2)  | **VION PHARMACEUTICALSINC** a Delaware company whose principal place of business is at FourScience Park, New Haven, Connecticut 06511, United States of America("VION"). |

**WHEREAS:**

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| (A)  | Research onThiosemicarbazones (TSCs) for the treatment of cancer has been carriedout prior to the Commencement Date (as defined below) by LICENSOR; |

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| (B)  | VION has experience in the field ofdrug design and drug discovery; and |

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| (C)  | Pursuant to a request made by VION, theParties (as defined below) have agreed to undertake a programme ofresearch to evaluate TSCs and it has been further agreed by LICENSOR togrant VION an option to take a license on the following terms andconditions. |

**NOW IT IS HEREBY AGREED**as follows:

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| 1.  | DEFINITIONS AND INTERPRETATION |

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| 1.1  | In this Agreement and in the Schedules tothis Agreement the following words and phrases shall have the followingmeanings unless the context requiresotherwise: |

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| "Affiliate"                        |  | meansany company, partnership or other entity which directly or indirectlyControls, is Controlled by, or is under common Control with, any Partyincluding as a subsidiary or holding company of anyParty. |
| "Agreement"                        |  | meansthis agreement and any and all schedules, appendices and other addendato it as may be varied from time to time in accordance with theprovisions of thisagreement.                                    |
| "BusinessDay"                      |  | means on a day other than a Saturday,Sunday, bank or other public holiday in Austria or the United States ofAmerica.                                                                                      |
| "ClinicalCandidate"                |  | means one of the TSCs with thecharacteristics described in Schedule5.                                                                                                                                     |
| "Clinical CandidateIdentification" |  | means identification of aClinical Candidate in accordance with Clause2.                                                                                                                                   |
| "CommencementDate"                 |  | means the date of the completion of thetransfer of LICENSOR Existing Know How and at least 10 TSCs fromLICENSOR Existing Materials to VION. VION shall confirm theCommencement Day by written notice.     |
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| "CompetentAuthority"                     |  | means any local or national agency,authority, department, inspectorate, minister, ministry official orpublic or statutory person (whether autonomous or not) of, or of anygovernment of, any country having jurisdiction over the Agreement orany of the Parties or over the development or marketing of medicinalproducts including, but not limited to, the European Commission and theEuropean Court ofJustice.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| "Control"                                |  | meansthe ownership of more than 50% of the issued share capital orthe legal power to direct or cause the direction of the generalmanagement and policies of the Party inquestion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| "LICENSOR ExistingIntellectual Property" |  | means LICENSOR'sright, title and interest in the LICENSOR Existing Patent Rights,LICENSOR Existing Know How and LICENSOR ExistingMaterials.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| "LICENSOR Existing KnowHow"              |  | means the Know How relating to thesubject matter of the LICENSOR Existing Patent Rights in existenceprior to the CommencementDate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| "LICENSOR ExistingMaterials"             |  | means those Materials relating tothe subject matter of the LICENSOR Existing Patent Rights in existenceprior to the CommencementDate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| "LICENSOR Existing PatentRights"         |  | means the patent applications referredto in Schedule 1 and all Patent Rights arising fromthem.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| "Documents"                              |  | meanspaper, notebooks, books, files, ledgers, records, tapes, discs,diskettes, CD-ROM and any other media on which Know How can bepermanently stored.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| "ForceMajeure"                           |  | means in relation to any Party anyevent or circumstances which is beyond the reasonable control of thatParty which event that Party could not reasonably be expected to havetaken into account at the Commencement Date and which results in orcauses the failure of that Party to perform any or all of itsobligations under this Agreement including act of God, lightening,fire, storm, flood, earthquake, accumulation of snow or ice, lack ofwater arising from weather or environmental problems, strike, lockoutor other industrial disturbance, war, terrorist act, blockade,revolution, riot insurrection, civil commotion, public demonstration,sabotage, act of vandalism, prevention from or hindrance in obtainingin any way materials, energy or other supplies, explosion, fault orfailure of plant or machinery, governmental restraint, act oflegislature and directive or requirement of a Competent Authoritygoverning any Party provided that lack of funds shall not beinterpreted as a cause beyond the reasonable control of thatParty. |
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| "KnowHow"           |  | means all technical and other informationincluding ideas, concepts, patentable and non-patentable inventions,discoveries, data, formulae, specifications, drawings, manuals,information, methods and processes for synthesis of chemical compounds,instrumentation, procedures for experiments and tests includinglaboratory records and data analyses and results of experimentation andtesting. |
| "Material"          |  | meansany chemical or biological substances including any:(i)  organic or inorganic element or compound;(ii)  drugor pro-drug;(iii) assay orreagent.                                                                                                                                                                                                                                |
| "Option"            |  | meansthe option granted to VION under Clause6.                                                                                                                                                                                                                                                                                                                                                    |
| "Parties"           |  | meansLICENSOR and VION and "Party" shall beconstrued as any one of them and any one of the persons and entitiesconstituting LICENSOR.                                                                                                                                                                                                                                                             |
| "PatentRights"      |  | means any patent applications,patents, author certificates, inventor certificates, utility models andall foreign counterparts of them and includes all divisions, renewals,continuations, continuations-in-part, extensions, reissues,substitutions, confirmations, registrations, revalidations andadditions of or to them, as well as any SPC, or any like form ofprotection.                   |
| "VIONLicense"       |  | means a license in the terms ofSchedule 4.                                                                                                                                                                                                                                                                                                                                                        |
| "ResearchProgramme" |  | means the programme or researchmore particularly described in Schedule3.                                                                                                                                                                                                                                                                                                                          |
| "ResearchTerm"      |  | means the term of the Research Programmeas determined in accordance with Clause11.                                                                                                                                                                                                                                                                                                                |
| "SPC"               |  | meansa right based on a patent pursuant to which the holder of the right isentitled to exclude third parties from using, making, having made,selling or otherwise disposing or offering to dispose of, importing orkeeping the product to which the right relates, such as SupplementaryProtection Certificates in Europe, and any similar right anywhere inthe world.                            |
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| 1.2  | In thisAgreement: |

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|  | 1.2.1  | unless the contextotherwise requires, all references to a particular clause or Scheduleshall be reference to that clause or to this Agreement as it may beamended from time to time pursuant to this Agreement; |

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|  | 1.2.2  | the headings are inserted forconvenience only and shall be ignored in construing this Agreement; |

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|  | 1.2.3  | unless the contrary intentionappears, words importing the masculine gender shall include thefeminine and vice versa and words in the singular include the pluraland vice versa; |

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|  | 1.2.4  | unless thecontrary intention appears, words denoting persons shall include anyindividual, partnership, company, corporation, joint venture, trustassociation, organisation or other entity, in each case whether or nothaving separate legal personality; |

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|  | 1.2.5  | reference to the words"include" or"including" are to be construed withoutlimitation to the generality of the preceding words; and |

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|  | 1.2.6  | referenceto any statue or regulation includes any modification or re-enactmentof that statue or regulation. |

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| 2.  | RESEARCHPROGRAMME |

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|   | In consideration of the paymentto be made pursuant to Clause 3.1: |

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| 2.1  | LICENSOR shall provide to VION (i) allLICENSOR Existing Know How and (ii) reasonable quantities of TSCs fromthe LICENSOR Existing Materials for Clinical CandidateIdentification. |

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| 2.2  | VION shall carryout in a diligent manner to identify Clinical Candidate according toSchedule 3. |

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| 3.  | CONSIDERATION |

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| 3.1  | In consideration of the rights granted underthis Agreement by LICENSOR, VION shall: within 30 days after signingthe Agreement, pay to LICENSOR the sum of twenty five thousand UnitedStates dollars (US$25,000). |

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| 3.2  | All amountsdue to LICENSOR under this Agreement shall (subject to written advicefrom LICENSOR amending the details) be payable in United States dollarsby telegraphic transfer to the account below: |

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|   | Payee: Austria WirtschaftsserviceGesellschaft m.b.H Ungargasse 37 A-1030 Vienna, AUSTRIA |

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|      | AccountNo:                42506710005 Bank SortingCode:    43000IBAN:                          AT254300042506710005Bank:                            Volksbank Wien AGOwner of Account:    Austria Wirtschaftsservice |

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| 3.3  | Where LICENSOR does not receive payment dueto it within thirty (30) days of the dates set out in Clause 3.1,interest shall accrue on the sum due and owing to LICENSOR at an annualrate of two percent (2%) above the prime rate quoted by The WallStreet Journal on the day said payment is due. |

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| 4.  | OWNERSHIP OF INTELLECTUALPROPERTY |

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| 4.1  | Subject to Clause 5,LICENSOR Existing Intellectual Property shall remain vested exclusivelyin LICENSOR. |

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| 5.  | RESEARCH AND OTHERRIGHTS |

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| 5.1  | LICENSOR hereby grants toVION a fully paid-up, royalty free, exclusive license under theLICENSOR Existing Intellectual Property to carry out the tasks assignedto VION under Research Programme. For the purposes of clarification, itis agreed that LICENSOR shall not license or sublicense the LICENSORExisting Intellectual Property to any third party during the period ofthis Agreement. |

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| 6.  | OPTIONRIGHTS |

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| 6.1  | In consideration of thepayment by VION of seventy-five thousand United States dollars(US$75,000) ("the Option Fee") VION shallhave an exclusive option during the term of this Agreement to enterinto the VION License (Schedule 4). |

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| 6.2  | VION shall be entitled to exercise theOption by written notice to LICENSOR ("the ExerciseNotice") accompanied by payment of the Option Fee to bereceived by LICENSOR at any time prior to the expiry of the ResearchTerm. |

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| 6.3  | If VIONexercises the Option, LICENSOR and VION shall enter into the VIONLicense within one (1) month of receipt of the Exercise Notice andOption Fee by LICENSOR. |

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| 6.4  | If LICENSORhas not received the Exercise Notice before expiry of the ResearchTerm, LICENSOR shall be free to license the LICENSOR ExistingIntellectual Property to any third party of its choosing and shall haveno further obligation to VION in respect of the LICENSOR ExistingIntellectual Property. |

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| 7.  | MANAGEMENT OF PATENTRIGHTS |

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| 7.1  | LICENSOR shall undertake orprocure the filing, prosecution, maintenance and defence of LICENSORExisting Patent Rights and be responsible for the conduct of anyenforcement proceedings relating to them (including any interference oropposition proceedings) as from time to time may in LICENSOR'sabsolute discretion appear to be necessary or desirable at its own costduring the term of this Agreement. LICENSOR shall consult with VION forfiling patent applications in different countries. It is the intent ofthe parties that LICENSOR shall diligently, and use best efforts to,file, prosecute, maintain and defend LICENSOR Existing Patent Rightsduring the term of this Agreement. LICENSOR agrees to discuss with VIONthe countries in which it plans to file, prosecute, maintain and defendLICENSOR Existing Patent Rights as there may be some countries whichboth parties agree should not be pursued. |

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| 7.2  | Each of the Parties shall give the otherParty immediate notice of any infringement of any LICENSOR ExistingPatent Rights by a third party which comes to that Party'sattention during the term of this Agreement. |

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| 7.3  | If during the term of this Agreement eitherParty receives any notice, claim or proceedings from any third partyalleging infringement of that third party's intellectual propertyby reason of either Party's activities in relation to thisAgreement or the use and exploitation of any LICENSOR ExistingIntellectual Property, the Party receiving that notice shall forthwithnotify the other Party of the notice, claim orproceeding. |

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| 8.  | WARRANTIES ANDLIABILITIES |

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| 8.1  | It is agreed and understoodby the Parties that VION is responsible for its own investigation tosatisfy itself that the Research Programme can be properly and lawfullyconducted without infringing the rights of any third party. |

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| 8.2  | Each Party represents and warrants to theother Parties that: |

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|  | 8.2.1  | it haslegal power, authority and right to enter into this Agreement and toperform its respective obligations hereunder; and |

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|  | 8.2.2  | it is not at the Commencement Datea party to any agreement, understanding with any third party which inany significant way prevents it from fulfilling any of its materialobligations hereunder. |

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|  | 8.2.3  | it isalso agreed and understood by the Parties that LICENSOR is the soleowner or the sole assignee of the LICENSOR Existing IntellectualProperty listed in Schedule 1, and LICENSOR has the right to licensethe LICENSOR Existing Intellectual Property to VION. |

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|   | Any breach of this Clause 8.2 shall be amaterial breach of this License Agreement. |

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| 8.3  | Without prejudice to the generality of Clause8.1, other than expressly set out herein, no Party gives anyrepresentation or warranty to any other Party that the performance ofthis Agreement will not result in the infringement of any rights,including intellectual property rights, vested in a third party,provided that LICENSOR represents and warrants that it has no knowledgeof any third party intellectual property rights reasonably likely to beinfringed by VION's performance of this Agreement and use of theLICENSOR Existing Intellectual Property. |

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| 8.4  | Nothing in thisAgreement shall be construed as a representation made or warranty givenby LICENSOR in relation to the LICENSOR Existing IntellectualProperty: |

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|  | 8.4.1  | any patent will issuebased upon any pending patent application included in LICENSOR ExistingIntellectual Property; nor |

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|  | 8.4.2  | anypatent included in the LICENSOR Existing Intellectual Property whichissues will be valid. |

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|  | 8.4.3  | except asstated in 8.3, the use of any LICENSOR Existing Intellectual Propertywill not infringe the patent or proprietary rights of any thirdparty. |

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|   | Furthermore, except as stated in 8.3,LICENSOR makes no representation or warranty, express or implied, withrespect to the LICENSOR Existing Intellectual Property, including anywarranty of merchantability or fitness for a particular purpose. |

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| 8.5  | All Materials supplied to VION pursuant tothe terms of this Agreement (including LICENSOR Existing Materials) aresupplied "as is" and VION understands andagrees that such Materials are experimental in nature and, except asstated in 8.3, are supplied without any representation or warranty,express or implied, including any implied warranty of merchantability,satisfactory quality or fitness for any particular purpose or anywarranty that the use of the said Materials will not infringe orviolate any patent or other proprietary rights of any other person. |

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| 8.6  | VION shall be responsible for and indemnifyLICENSOR and their officers, employees and agents (collectively the"Indemnified Party") against any and allliability, loss, damage, cost or expense incurred or suffered by theIndemnified Party arising from VION's handling or storage ofLICENSOR Existing Materials, unless such claims arise from thenegligence or wilful misconduct of Indemnified Party. |

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| 8.7  | In the event that the LICENSOR or otherIndemnified Party intends to seek indemnification under Clause 8.6, itshall promptly inform VION of a claim after receiving notice of theclaim and shall permit VION to direct and control the defence of theclaim and shall provide such reasonable assistance as reasonablyrequested by VION (at VION's cost) in the defence of the claimprovided always that nothing in this Clause 8.7 shall permit VION tomake any admission on behalf of or to settle any litigation without theprior written consent of LICENSOR or other Indemnified Party as thecase may be, which consent shall not be unreasonably withheld. |

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| 8.8  | Without prejudice to Clause 8.6, no Partyshall be liable to any other Party in contract, tort, negligence,breach of statutory duty or otherwise for any loss, damage, cost orexpense of any nature whatsoever incurred or suffered by the otherParty or that other Party's Affiliates of an indirect orconsequential nature including any economic loss or other loss ofturnover, profits, business orgoodwill. |

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| 9.  | CONFIDENTIALITY |

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| 9.1  | EachParty undertakes and agrees not at any time for any reason whatsoeverto disclose, or permit to be disclosed to any third party, or make useof or permit to be made use of, any trade secrets or confidentialinformation relating to another Party's technology or thebusiness affairs or finances of another Party or of an Affiliate ofanother Party (the "ConfidentialInformation") which come into its possession pursuant tothis Agreement. |

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| 9.2  | The Parties shallensure that only those of their officers and employees who are directlyconcerned with the carrying out of this Agreement have access to theConfidential Information of another Party and are informed of itssecret and confidentialnature. |

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| 9.3  | Subject to the provisions ofClause 10.1, the obligations of confidence referred to in this Clause 9shall not extend to any Confidential Information which it can be shownto the reasonable satisfaction of the disclosingParty: |

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| 9.3.1  | was, orshall become, generally available to the public otherwise than byreason of a breach by the recipient Party or Parties of the provisionsof this Clause 9; or |

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| 9.3.2  | was knownto the recipient Party or Parties, and was not subject to anyobligation of confidentiality, prior to its receipt from the disclosingParty, as can be shown by documentary evidence;or |

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| 9.3.3  | is subsequently disclosed tothe recipient Party or Parties without obligations of confidence by athird party owing no such obligations in respect thereof;or |

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| 9.3.4  | is required to be disclosed byany applicable law or any Competent Authority to which a Party is fromtime to time subject; or |

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| 9.3.5  | isindependently developed by the recipient Party or Parties other than aspart of the Research Programme and with no reference or reliance on anyinformation generated as part of the ResearchProgramme. |

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| 9.4  | The obligations of eachParty under this Clause 9 shall survive the expiration or terminationof this Agreement for a period of five (5)years. |

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| 10.  | PUBLICATIONS |

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| 10.1  | Proposalsfor publications (including presentations to the public) containingdetails of work or results of the Research Programme shall be sent toLICENSOR, or their subsequent replacements, for review prior topublication. LICENSOR shall review the same within 30 calendar days oftheir receipt. If in the opinion of LICENSOR any such publicationcontains LICENSOR confidential information, VION shall delay thesubmission or public presentation until after such confidentialinformation has been deleted and/or appropriate patent protection hasbeen obtained or covered by a patent application. Such delay may notexceed 60 calendar days. If a publication does result from work usingthe Material, at LICENSOR's request, VION agrees to acknowledgeLICENSOR and/or give credit as scientifically appropriate, based on anydirect contribution LICENSOR may have made to thework. |

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| 10.2  | Notwithstanding theconfidentiality obligations assumed by the Parties hereunder, bothParties acknowledge the importance of publications for both Parties. Inthe light of this, the Parties shall use all reasonable efforts tofacilitate timely publication of the results of the ResearchProgramme. |

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| 11.  | TERM ANDTERMINATION |

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| 11.1  | This Agreement shallcome into effect on the date last signed below (the"Effective Date") and shall expire two (2)months after termination of the ResearchProgramme. |

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| 11.2  | The Research Programmeshall commence on the Commencement Date and shall terminate fifteenmonths from the Commencement Date. For the sake of clarity the durationof the Research Term shall be 15 (fifteen) calendar monthsonly. |

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| 11.3  | A Party (the"Terminating Party") shall have the right toterminate this Agreement giving written notice of termination to theother Parties, upon the occurrence of any of the following events atany time during thisAgreement: |

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|  | 11.3.1  | the other Party("the Defaulting Party") commits a materialbreach of this Agreement which, in the case of a breach capable ofremedy, shall not have been remedied within 30 (thirty) Business Daysof the receipt by it of a notice identifying the breach and requiringits remedy. |

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| 12.  | CONSEQUENCES OFTERMINATION |

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| 12.1  | Upon expiry of thisAgreement or in the case that VION commits a material breach of thisAgreement: |

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|--|--------------|---------------------------------------|
|  | 12.1.1  | theOption shall terminateimmediately; |

|              |                                                                                 |
|--------------|---------------------------------------------------------------------------------|
| 12.1.2  | the licensesgranted pursuant to Clauses 2, 5, and 6 shall terminateimmediately; |

|              |                                                                                                                                                   |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.1.3  | VION shall pay toLICENSOR within 30 (thirty) Business Days all sums due to LICENSORwhich have accrued prior to the date of termination or expiry; |

|              |                                                                                                                                                                       |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.1.4  | VION shall return to LICENSOR, oras LICENSOR may direct, all Documents which embody and pertain toLICENSOR Existing Intellectual Property and associated Know How;and |

|              |                                                                                                                                                  |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.1.5  | VION shall return toLICENSOR, or at the election of LICENSOR destroy, all LICENSOR ExistingMaterials in VION's possession or under theircontrol. |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.2  | If VION terminates thisAgreement and decides not to enter into the License Agreement with theLICENSOR, VION shall provide LICENSOR with a summary of Resultsobtained under the Research Programme and shall assign rights to theseResults for research purposes to LICENSOR. Results shall mean any datagenerated by VION under the Research Programme from the chemical andbiological assays specifically related to the heterocyclic hydrazonesin patent applications in Schedule 1. VION shall retain the Results foruse for non-commercial purposes and may publish the Results. |

|            |                                                                                                                                                                                                                                                                              |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.3  | In the case that LICENSOR commits amaterial breach of this Agreement, LICENSOR shall reimburse VION within30 (thirty) Business Days after receiving VION's invoice of alldocumentable expenses related to this Agreement which have accruedprior to the date of termination. |

|            |                                                                                                                                                                                                                                                                                                                                                                                |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.4  | Termination or expiry of this Agreement forwhatever reason shall not affect the accrued rights of the Partiesarising in any way out of this Agreement as at the date of terminationor expiry and in particular but without limitation the right to recoverdamages and interest, and the provisions of Clauses 3.1, 4, 8, 9, 15,18 and 24 shall remain in full force andeffect. |

|           |        |
|-----------|--------|
| 13.  | WAIVER |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.1  | NeitherParty shall be deemed to have waived any of its rights or remediesconferred by this Agreement unless the waiver is made in writing andsigned by a duly authorised representative of that Party. Inparticular, no delay or failure of either Party in exercising orenforcing any of its rights or remedies conferred by this Agreementshall operate as a waiver of those rights or remedies or so as topreclude or impair the exercise or enforcement of those rights orremedies nor shall any partial exercise or enforcement of any right orremedy by a Party preclude or impair any other exercise or enforcementof that right or remedy by thatParty. |

|           |                            |
|-----------|----------------------------|
| 14.  | ENTIREAGREEMENT/VARIATIONS |

|            |                                                                                                                                                                                                                                                            |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.1  | ThisAgreement constitutes the entire agreement and understanding betweenthe Parties and supersedes all prior oral or written understandings,arrangements, representations or other agreements between them relatingto the subject matter of thisAgreement. |

|            |                                                                                                                                                                                                                                                              |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.2  | No director, employee oragent of a Party is authorised to make any representation or warrantyto the other Party not contained in this Agreement, and each Partyacknowledges that it has not relied on any such oral or writtenrepresentations or warranties. |

|            |                                                                                                                                                                                                |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.3  | Novariation, amendments, modification or supplement to this Agreementshall be valid unless made in writing in the English language andsigned by a duly authorised representative of eachParty. |

|           |         |
|-----------|---------|
| 15.  | NOTICES |

|            |                                                                                                                                                                                    |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.1  | Anynotice to be given pursuant to this Agreement shall be in writing inthe English language and shall be delivered by hand, sent by registeredor recorded delivery post or sent by |

9

----

|        |                                                                                                                                                                                                                                                       |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | facsimile confirmed by registered orrecorded delivery post to the address or facsimile number of therecipient set out below or such other address or facsimile number as aParty may from time to time designated by written notice to the otherParty. |

|        |                |
|--------|----------------|
|   | **Addresses:** |

|        |                                                                                             |
|--------|---------------------------------------------------------------------------------------------|
|   | LICENSOR AUSTRIA WIRTSCHAFTSSERVICEGesellschaft m.b.H. Ungargasse 37 A-1030 Vienna, Austria |

|        |                                                                                                                                                      |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | PROF. DR. JOHANN HOFMANN Institut fürMedizinische Chemie und Biochemie University of InnsbruckFritz-Pregl-Strasse 3 A-6020 Innsbruck, Austria ] |

|        |                                                                                         |
|--------|-----------------------------------------------------------------------------------------|
|   | VION Pharmaceuticals, Inc. 4 SciencePark New Haven, CT 06511 USA Attn: Howard B.Johnson |

|            |                                                                                  |
|------------|----------------------------------------------------------------------------------|
| 15.2  | Any notice given pursuantto this Clause 15 shall be deemed to have beenreceived: |

|              |                                                   |
|--------------|---------------------------------------------------|
| 15.2.1  | in the case ofdelivery by hand, when delivered;or |

|              |                                                                                                                                                                                                                                                                |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.2.2  | in the case of facsimile, onacknowledgement by the recipient facsimile receiving equipment on aBusiness Day if the acknowledgement occurs before 17.00 hours localtime of the recipient and in any other case at 10.00 hours on the nextfollowing BusinessDay. |

|           |            |
|-----------|------------|
| 16.  | ASSIGNMENT |

|            |                                                                                                                                                                                                                                                   |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 16.1  | Subjectto Clause 16.2, neither Party shall without the prior written consentof the other Party, assign the benefit and/or burden of this Agreementnor sub-contract any of its obligations hereunder unless otherwisepermitted by the termshereof. |

|            |                                                                                                                                                                                                                          |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 16.2  | Either Party shall beentitled to assign the benefit and/or burden of this Agreement to anyAffiliate or its successor in connection with any merger, consolidationor sale or other disposal of its assets and/orbusiness. |

|           |              |
|-----------|--------------|
| 17.  | FORCEMAJEURE |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.1  | If a Party (the"Non-Performing Party") is unable to carryout any of its obligations under this Agreement due to Force Majeurethis Agreement shall remain in effect but the Non-PerformingParty's relevant obligations under this agreement and therelevant obligations of the other Party ("the InnocentParty") under this Agreement shall be suspended for theduration of the circumstance of Force Majeure providedthat: |

|              |                                                                                           |
|--------------|-------------------------------------------------------------------------------------------|
| 17.1.1  | the suspension ofperformance is of no greater scope than is required by the ForceMajeure; |

|              |                                                                                                                                                                                                                                                         |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.1.2  | the Non-PerformingParty gives the Innocent Party prompt notice describing thecircumstance of Force Majeure, including the nature of the occurrenceand its expected duration, and continues to furnish regular reportsduring the period of ForceMajeure; |

|              |                                                                                                                                                            |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.1.3  | the Non-PerformingParty uses all reasonable efforts to remedy its inability to performand to mitigate the effects of the circumstance of Force Majeure;and |

|              |                                                                                                                                                                                           |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.1.4  | as soon as practicable afterthe event which constitutes Force Majeure the Parties shall discuss howbest to continue their operations as far as possible in accordance withthis Agreement. |

10

----

|            |                                                                                                                                                                                                                                                                                                                |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.2  | If ForceMajeure is continuing at the expiry of three months the Innocent Partymay give 30 (thirty) Business Days written notice to terminate thisAgreement to the Non-Performing Party and termination shall occur ifthe Force Majeure is continuing at the end of that 30 (thirty) BusinessDay notice period. |

|           |                   |
|-----------|-------------------|
| 18.  | DISPUTERESOLUTION |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 18.1  | Any matter that mayarise concerning the construction, meaning or effect of this Agreementor concerning the rights and liabilities of the Parties hereunder orany other matter arising out of or in connection with this Agreementshall first be submitted for resolution to the Chief Executive Officerof VION and the LICENSOR, who may call on others to advise them as theysee fit. If the Chief Executive Officer of VION and LICENSOR fail toresolve the dispute within 28 days the Parties agree to try in goodfaith to settle the matter by mediation administered by the AmericanArbitration Association under its Commercial Mediation Rules. |

|            |                                                                                                                                                                                                                                                                                                                                                  |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 18.2  | Notwithstanding the foregoing, eitherParty may seek immediate injunctive or other interim relief from anycourt of competent jurisdiction with respect to any matter for whichmonetary damages would not adequately protect such Party'sinterests or otherwise to enforce and protect intellectual propertyrights owned or licensed to suchParty. |

|           |                   |
|-----------|-------------------|
| 19.  | SEVERANCE OFTERMS |

|            |                                                                                                                                                                                                                                                                                                                                                                 |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 19.1  | If the whole or any part ofthis Agreement is or becomes or is declared illegal, invalid orunenforceable in any jurisdiction for any reason (including both byreason of the provisions of any legislation and also by reason of anycourt or Competent Authority which either has jurisdiction over thisAgreement or has jurisdiction over either of theParties): |

|              |                                                                                                                                                                   |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 19.1.1  | in the case of theillegality, invalidity or unenforceability of the whole of thisAgreement it shall terminate only in relation to the jurisdiction inquestion; or |

|              |                                                                                                                                                                                                                                                                                                                                                               |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 19.1.2  | in the case of theillegality, invalidity or unenforceability of part of this Agreementthat part shall be severed from this Agreement in the jurisdiction inquestion and that illegality, invalidity or unenforceability shall notin any way whatsoever prejudice or affect the remaining parts of thisAgreement which shall continue in full force andeffect. |

|            |                                                                                                                                                                                                                    |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 19.2  | If in the reasonableopinion of a Party any severance under this Clause 19 materiallyaffects the commercial basis of this Agreement, the Parties shalldiscuss, in good faith, ways to eliminate the materialeffect. |

|           |                                               |
|-----------|-----------------------------------------------|
| 20.  | THIS AGREEMENT NOT TO CONSTITUTE APARTNERSHIP |

|            |                                                                                                                                                                                                                              |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 20.1  | None of the provisionsof this Agreement shall be deemed to constitute a partnership betweenthe Parties and neither of the Parties shall have any authority to bindthe others in any way except as provided in thisAgreement. |

|           |                  |
|-----------|------------------|
| 21.  | PUBLICSTATEMENTS |

|            |                                                                                                            |
|------------|------------------------------------------------------------------------------------------------------------|
| 21.1  | Except as provided inClause 21.2, neither Party will, without the prior written consent ofthe other Party: |

|              |                                                                                                                                                                                                                                        |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 21.1.1  | use inadvertising, publicly or otherwise, any trade-name, personal name,trade mark, trade device, service mark, symbol, or any abbreviation,contraction or simulation thereof, owned by another Party or Affiliateof another Party; or |

|              |                                                                                                                                                                                                                                         |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 21.1.2  | represent,either directly or indirectly, that any product or service of anotherParty is a product or service of the representing Party or that it ismade in accordance with or utilises the information or documents of theother Party. |

11

----

|            |                                                                 |
|------------|-----------------------------------------------------------------|
| 21.2  | Therestrictions in Clause 21.1 shall not apply to thefollowing: |

|              |                                                                                                     |
|--------------|-----------------------------------------------------------------------------------------------------|
| 21.2.1  | a press release, in aform agreed to in writing by the Parties publicly announcing thisAgreement; or |

|              |                                                                 |
|--------------|-----------------------------------------------------------------|
| 21.2.2  | use as requiredby any applicable law or governmentalregulation. |

|           |       |
|-----------|-------|
| 22.  | COSTS |

|            |                                                                                                                                    |
|------------|------------------------------------------------------------------------------------------------------------------------------------|
| 22.1  | EachParty shall bear its own legal costs, legal fees and other expensesincurred in the preparation and execution of thisAgreement. |

|           |              |
|-----------|--------------|
| 23.  | COUNTERPARTS |

|            |                                                                                                                                                                                                                                                                                                    |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.1  | ThisAgreement may be executed in any number of counterparts and by thedifferent Parties by separate counterparts, each of which when soexecuted shall be the original, and all of which shall constitute oneand the same instrument. Complete sets of counterparts shall be lodgedwith each Party. |

|           |              |
|-----------|--------------|
| 24.  | GOVERNINGLAW |

|            |                                                                                          |
|------------|------------------------------------------------------------------------------------------|
| 24.1  | All matters relating to thisAgreement shall be governed by the law of the UnitedKingdom. |

12

----

SCHEDULE1

Part I

LICENSORexisting patents

Austrian Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

PCT Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

|                |     |
|----------------|-----|
| Publ.No:  | *** |

EP Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |         |
|----------------|---------|
| Appl.No:  | *** *** |

|                 |     |
|-----------------|-----|
| Appl.Date  | *** |

US Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

Canadian Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

|  |
|--|

|  | ***Confidential |
|--|-----------------|

13

----

SCHEDULE 2

INTENTIONALLYLEFT BLANK

14

----

SCHEDULE 3

"Research Programme"

|        |                       |
|--------|-----------------------|
|   | VION'sresponsibility: |

|        |                                                                        |
|--------|------------------------------------------------------------------------|
|   | 1. *** will be tested in thecytotoxicity assay on ***tumor cell lines. |

|        |                                                                                                        |
|--------|--------------------------------------------------------------------------------------------------------|
|   | 2. *** will be tested inrats for pharmacokinetic parameters if analytical methods (HPLC) can beset up. |

|        |                                                                           |
|--------|---------------------------------------------------------------------------|
|   | 3. *** will be tested for anti-tumorefficacy in vivo in *** tumor models. |

|        |                                                                              |
|--------|------------------------------------------------------------------------------|
|   | 4. Tostudy mechanisms of action of TSCs with genomic or proteomictechnology. |

|  |
|--|

|  | ***Confidential |
|--|-----------------|

15

----

SCHEDULE4

"VIONLicense"

16

----

DR. JOHNNY EASMON, PROF. DR.GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER, PROF. DR.HEINZ-HERBERT FIEBIG, PROF. DR. JOHANN HOFMANN, AND AUSTRIAWIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.

—and —

VION PHARMACEUTICALSINC

|  |
|--|
|  |  |  |  |
|  |

|  |
|--|
|  |  |  |  |
|  |

LICENSEAGREEMENT

|  |
|--|
|  |  |  |  |
|  |

|  |
|--|
|  |  |  |  |
|  |

17

----

**THIS LICENSE AGREEMENT** is made asof the          day of                    ,            

**BETWEEN:**

|               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(1)**  | **DR. JOHNNY EASMON, PROF. DR.GOTTFRIED HEINISCH, DR. GERHARD PÜRSTINGER,** Institute ofPharmacy, University of Innsbruck, Innrain 52a, A-6020 Innsbruck,Austria,**PROF. DR. HEINZ-HERBERT FIEBIG,**Am Flughafen 12,D-79108 Freiburg, Germany, **PROF. DR. JOHANN HOFMANN,**Instituteof Medical Chemistry and Biochemistry, University of Innsbruck,Fritz-Pregl-Strasse 3, A-6020 Innsbruck, Austria, and**AUSTRIAWIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.,**Ungargasse 37, A-1030Vienna, Austria (collectively called"LICENSOR");and |

|               |                                                                                                                                                                         |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(2)**  | **VION PHARMACEUTICALS INC.** aDelaware company whose principal place of business is at Four SciencePark, New Haven, Connecticut 06511 United States of America("VION") |

WHEREAS:

|           |                                                                                                                                                                                              |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A)  | LICENSOR and VION enteredinto a research collaboration agreement (the "ResearchCollaboration Agreement") concerning a programme ofresearch to evaluate certain Thiosemicarbazones (TSCs);and |

|           |                                                                                                                                                                                          |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B)  | VION has exercised the option grantedpursuant to Clause 6 of the Research CollaborationAgreement andLICENSOR has agreed to grant a license to VION on the following termsand conditions. |

NOW IT IS HEREBY AGREED asfollows:

|          |                               |
|----------|-------------------------------|
| 1.  | DEFINITIONS ANDINTERPRETATION |

|           |                                                                                                                                                                                |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1  | In this License Agreementand in the Schedules to this License Agreement the following words andphrases shall have the following meanings unless the context requiresotherwise: |

|                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |  |  |  |
|----------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| "Affiliate"          |  | meansany company, partnership or other entity which directly or indirectlyControls, is Controlled by, or is under common Control with, any Partyincluding as a subsidiary or holding company of anyParty.                                                                                                                                                                                                                        |
| "BusinessDay"        |  | means a day other than a Saturday,Sunday, bank or other public holiday in Austrian and/or the UnitedStates of America.                                                                                                                                                                                                                                                                                                           |
| "ClinicalTrial"      |  | means a clinical trial conducted inaccordance with recognised protocols approved by a Competent Authorityincluding CTX and DDX clinical trials or their equivalents anywhere inthe World.                                                                                                                                                                                                                                        |
| "CommencementDate"   |  | means the date first abovewritten.                                                                                                                                                                                                                                                                                                                                                                                               |
| "CompetentAuthority" |  | means any local or national agency,authority, department, inspectorate, minister, ministry official orpublic or statutory person (whether autonomous or not) of, or of anygovernment of, any country having jurisdiction over this LicenseAgreement or over any of the Parties or over the development ormarketing of medicinal products including, but not limited to, theEuropean Commission and the European Court ofJustice. |
|                      |

18

----

|                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|------------------------------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| "Control"                                |  | meansthe ownership of more than 50% of the issued share capital orthe legal power to direct or cause the direction of the generalmanagement and policies of the Party inquestion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| "LICENSOR ExistingIntellectual Property" |  | means LICENSOR'sright, title and interest in the LICENSOR Existing Patent Rights,LICENSOR Existing Know How and LICENSOR ExistingMaterials.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| "LICENSOR Existing KnowHow"              |  | means the Know How relating to thesubject matter of the LICENSOR Existing Patent Rights, including KnowHow created under the ResearchProgramme.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| "LICENSOR ExistingMaterials"             |  | means those Materials relating tothe subject matter of the LICENSOR Existing Patent Rights, includingMaterials created under the ResearchProgramme.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| "LICENSOR Existing PatentRights"         |  | means the patent applications referredto in Schedule 1 and all Patent Rights arising fromthem.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| "Documents"                              |  | Meanspaper, notebooks, books, files, ledgers, records, tapes, discs,diskettes, CD-ROM and any other media on which Know How can bepermanently stored.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| "DevelopmentPlan"                        |  | Means the plan for the development ofLicensed Products set out in Schedule3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| "ForceMajeure"                           |  | means in relation to a Party anyevent or circumstances which is beyond the reasonable control of thatParty which event that Party could not reasonably be expected to havetaken into account at the Commencement Date and which results in orcauses the failure of that Party to perform any or all of itsobligations under this License Agreement including act of God,lightening, fire, storm, flood, earthquake, accumulation of snow orice, lack of water arising from weather or environmental problems,strike, lockout or other industrial disturbance, war, terrorist act,blockade, revolution, riot insurrection, civil commotion, publicdemonstration, sabotage, act of vandalism, prevention from or hindrancein obtaining in any way materials, energy or other supplies, explosion,fault or failure of plant or machinery, governmental restraint, act oflegislature and directive or requirement of a Competent Authoritygoverning any Party provided that lack of funds shall not beinterpreted as a cause beyond the reasonable control of thatParty. |
| "Health RegistrationApproval"            |  | means, with respect to a country inthe Territory, approval by the health or other Competent Authoritynecessary to manufacture and market a Licensed Product in thecountry.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| "INDFiling"                              |  | means an application made to aCompetent Authority to:    (i)    initiate aClinical Trial; or(ii)   permit first administrationto human beings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                          |

19

----

|                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |  |  |  |
|--------------------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| "Know-How"         |  | meansall technical and other information including ideas, concepts,patentable and non-patentable inventions, discoveries, data, formulae,specifications, drawings, manuals, information, methods and processesfor synthesis of chemical compounds, instrumentation, procedures forexperiments and tests including laboratory records and data analysesand results of experimentation andtesting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| "LicenseAgreement" |  | means this agreement and any andall schedules, appendices and other addenda to it as may be varied fromtime to time in accordance with the provisions of thisagreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| "LicensedProducts" |  | means a product or products which,or the process of production of which, or the use of which falls withinthe scope of a Valid Claim in the country where the patent isissued.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| "Material"         |  | meansDocuments and any chemical or biological substances includingany:  (iv)  organic or inorganic element orcompound;(v)   drug or pro-drug;(vi)  assayor reagent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| "NetSales"         |  | means the invoiced amount billed forsales of Licensed Products to a Third Party (the"Customer") by VION or its Affiliates or bySub-licensees less the following items to the extent they are paid orincurred or allowed and included in the invoiceprice:   a)  quantity, trade and/or cash discountsor rebates actually granted or accrued;b)  amountsrepaid or credited and allowances including cash, credit or free goodsallowances, given by reason of billing errors and rebates actuallyallowed or paid or accrued;c)  amounts refunded orcredited for Licensed Products which were rejected or damaged orrecalled; andd)  taxes, tariffs, customs duties andsurcharges and other governmental charges incurred in connection withthe sale, exportation or importation of LicensedProducts;   The transfer of Licensed Products byVION or one of its Affiliates to another Affiliate or to a Sub-licenseeshall not be considered a sale. In such cases, Net Sales shall bedetermined based on the invoiced sale price levied by the Affiliate orSub-licensee on the Customer, less the aforementioned deductions to theextent they are allowed, paid oraccrued. |
| "Parties"          |  | meansLICENSOR and VION and "Party" shall beconstrued as any one of them and any one of the persons and entitiesconstituting LICENSOR.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                    |

20

----

|                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |  |  |  |
|-----------------------------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|--|--|--|
| "PatentRights"              |  | means any patent applications,patents, author certificates, inventor certificates, utility models andall foreign counterparts of them and includes all divisions, renewals,continuations, continuations-in-part, extensions, reissues,substitutions, confirmations, registrations, revalidations andadditions of or to them, as well as any SPC, or any like form ofprotection.                                                                                                                                                                                                                                                                                                                                                            |
| "Pivotal RegistrationStudy" |  | means a Clinical Trial designed tosupport or upon the basis of which an application for HealthRegistration Approval is to bemade.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| "Quarter"                   |  | meansthe three (3) month periods commencing on 1 January, 1 April, 1 Julyand 1 October annually, and "Quarterly" shallbe construed accordingly.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "ResearchProgramme"         |  | means the programme of researchdefined in the Research CollaborationAgreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| "ResearchTerm"              |  | means the term of the Research Programmeas defined in the Research CollaborationAgreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| "SPC"                       |  | meansa right based on a patent pursuant to which the holder of the SPC isentitled to exclude third parties from using, making, having made,selling or otherwise disposing or offering to dispose of, importing orkeeping the product to which the SPC relates, such as SupplementaryProtection Certificates in Europe, and any similar right anywhere intheworld.                                                                                                                                                                                                                                                                                                                                                                          |
| "Sub-license"               |  | meansa sub-license granted by VION (in accordance with Clause2.4).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| "Sub-licensee"              |  | meansany person granted a Sub-license byVION.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| "Sub-licenseRoyalties"      |  | means royalty payments based on NetSales that accrue to VION under aSub-license.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| "Territory"                 |  | meansthe world.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| "ThirdParty"                |  | means any entity or person other thanthe Parties or an Affiliate of aParty.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| "ValidClaim"                |  | meanseither:   a)  a claim of an issued and unexpiredpatent included within the LICENSOR Existing Patent Rights, which claimhas not been held permanently revoked, unenforceable or invalid by adecision of a court or other governmental agency of competentjurisdiction, unappealable or unappealed within the time allowed forappeal, and which has not been admitted to be invalid or unenforceablethrough reissue or disclaimer or otherwise; orb)  aclaim of a pending patent application included within the LICENSORExisting Patent Rights which claim was filed in good faith and has notbeen abandoned or finally disallowed without the possibility of appealor refiling of the application. |
|                             |

21

----

|           |                           |
|-----------|---------------------------|
| 1.2  | In this LicenseAgreement: |

|        |       |                                                                                                                                                                                                                                                |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.2.1 | unlessthe context otherwise requires, all references to a particular clauseor schedule shall be a reference to that clause or schedule in or tothis License Agreement as it may be amended from time to time pursuantto this LicenseAgreement; |

|        |       |                                                                                                        |
|--------|-------|--------------------------------------------------------------------------------------------------------|
|   | 1.2.2 | theheadings are inserted for convenience only and shall be ignored inconstruing this LicenseAgreement; |

|        |       |                                                                                                                                                                                |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.2.3 | unlessthe contrary intention appears, words importing the masculine gendershall include the feminine and vice versa and words in the singularinclude the plural and viceversa; |

|        |       |                                                                                                                                                                                                                                                          |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 1.2.4 | unless thecontrary intention appears, words denoting persons shall include anyindividual, partnership, company, corporation, joint venture, trustassociation, organisation or other entity, in each case whether or nothaving separate legalpersonality; |

|        |       |                                                                                                                                |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------|
|   | 1.2.5 | thewords "include","included" or"including" are to be construed withoutlimitation to the generality of the preceding words;and |

|        |       |                                                                                                               |
|--------|-------|---------------------------------------------------------------------------------------------------------------|
|   | 1.2.6 | reference to anystatute or regulation includes any modification or re-enactment of thatstatute or regulation. |

|          |                 |
|----------|-----------------|
| 2.  | GRANT OFLICENSE |

|           |                                                                                                                                                                                                                                                   |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1  | LICENSOR hereby grants to VIONan exclusive license throughout the Territory under the LICENSORExisting Intellectual Property to research, develop, use, keep, make,have made, sell and otherwise dispose or offer to dispose of LicensedProducts. |

|           |                                                                                                                                                                                                                                                                                                                                           |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.2  | Subject to Clause 2.3, thelicense granted in Clauses 2.1 shall be exclusive. The term of thelicense granted hereunder shall commence upon the signing hereof andshall continue for each Patent Right, on a country by country basis,for the term of the relevant Patent Right included within the LICENSORExisting Intellectual Property. |

|           |                                                                                                                                                                                                                                                                                                                                                                            |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.3  | It isacknowledged and agreed that LICENSOR shall have the right to use theLICENSOR Existing Intellectual Property for non-commercial researchpurposes only. For the purposes of clarification, LICENSOR shall notlicense or sublicense the LICENSOR Existing Intellectual Property toany other person or entity which conflicts with the license granted toVION hereunder. |

|           |                                                                                                                             |
|-----------|-----------------------------------------------------------------------------------------------------------------------------|
| 2.4  | VION shall be entitled tosublicense the rights granted in this License Agreement; anySub-license entered into by VIONshall; |

|        |    |                                                                                                                                     |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------|
|   | a) | provide that theSub-license shall terminate automatically on the expiry or terminationfor whatever reason of this LicenseAgreement; |

|        |    |                                                                                                                                                                                                                                  |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | b) | provide thatthe Third Party with whom the Sub-license has been entered into shallundertake to directly allow LICENSOR the same access to the books andrecords as it has to VION's books and records under this LicenseAgreement. |

|          |               |
|----------|---------------|
| 3.  | CONSIDERATION |

|           |                                                                                                                   |
|-----------|-------------------------------------------------------------------------------------------------------------------|
| 3.1  | Inconsideration of the rights granted under this License Agreement, VIONshall pay the following sums to LICENSOR: |

|        |       |                                                                                                                                    |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1.1 | the following milestonefees in respect of each Licensed Product (whether the milestone hasbeen achieved by VION or aSub-licensee); |

|        |                       |                                                                  |
|--------|-----------------------|------------------------------------------------------------------|
|   |    (a) | (a)***United States dollars (US$***) on the first IND Filing;and |

|        |                       |                                                                                                                          |
|--------|-----------------------|--------------------------------------------------------------------------------------------------------------------------|
|   |    (b) | (b)***United States dollars (US$***) on the commencement of a Phase IIIClinical Trial or Pivotal Registration Study; and |

22

----

|  |           |                                                                                                                         |
|--|-----------|-------------------------------------------------------------------------------------------------------------------------|
|  | (c)  | ***United States dollars (US$***) on the grant of the first HealthRegistration Approval in any country in theTerritory. |

|        |                                                                                                                                                                                                                      |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | For the purposes of clarification,it is understood that for each Licensed Product the milestone fees paidto LICENSOR will be no more than $*** (whether the milestone has beenachieved by VION or by aSub-licensee). |

|             |                                                                                                                                                        |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1.2  | in the case ofVION's sale of Licensed Products, royalties of *** of Net Sales*** in any calendar year and of *** of Net Sales *** in any calendaryear. |

|             |                                                                                                                                                                            |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1.3  | in the case of aSub-licensee's sale of Licensed Products, *** of Sub-licenseRoyalties with the limitation that the royalties due to LICENSOR shallnot *** of Net Sales;and |

|        |       |                                                                                                     |
|--------|-------|-----------------------------------------------------------------------------------------------------|
|   | 3.1.4 | any and allpatent filing, maintenance and prosecution costs incurred after theCommencement Date;and |

|        |       |                                                                                                                              |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1.5 | an annualminimum of *** United States dollars (US$***) per calendar year once aLicensed Product has been approved by theFDA. |

|          |         |
|----------|---------|
| 4.  | PAYMENT |

|           |                                                                                                                                                                                                            |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1  | All payments due to LICENSOR under thisLicense Agreement shall (subject to written advice from LICENSORamending the details) be made in United States dollars by telegraphictransfer to the account below: |

|        |                |
|--------|----------------|
|   | Payee:LICENSOR |

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | AUSTRIA WIRTSCHAFTSSERVICEGesellschaft m.b.H Ungargasse 37 A-1030 Vienna, AustriaAccount No:                    42506710005 Bank SortingCode:        43000IBAN:                               AT254300042506710005Bank:                                Volksbank WienAG Owner of Account:        Austria Wirtschaftsservice |

|           |                                          |
|-----------|------------------------------------------|
| 4.2  | VION shall make the payments toLICENSOR: |

|             |                                                                                                                                                                                   |
|-------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.2.1  | in the case of theroyalties payable pursuant to Clause 3.1.2, within 30 (thirty) days ofthe end of the Quarter in which the sales of the relevant LicensedProducts took place; or |

|             |                                                                                                                                                                               |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.2.2  | in thecase that the licensed product is sublicensed to third parties, within30 (thirty) days from the date upon which the Sub-license Royaltieshave been received by VION; or |

|             |                                                                                                                         |
|-------------|-------------------------------------------------------------------------------------------------------------------------|
| 4.2.3  | inthe case of the milestone fees payable pursuant to Clause 3.1.1, within30 (thirty) days of achieving the milestone;or |

|             |                                                                                                                  |
|-------------|------------------------------------------------------------------------------------------------------------------|
| 4.2.4  | in the case of annual minimumspursuant to Clause 3.1.4, within 30 (thirty) days of the end of thesecond Quarter. |

|           |                                                                                                                                                                                                                                                                     |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.3  | Where sums are receivedby VION in a currency other than United States dollars, conversion ofsuch currencies to United States dollars will be performed at theclosing mid-point rate published on the last Business Day of theQuarter in which the sum is to bepaid. |

|           |                                                                                                                                                                                                                                                                                                                                                         |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.4  | Where LICENSOR does not receivepayment of any sums due to it within thirty (30) days of the dates setout in Clauses 3.1 or 4.2 as the case may be (the "DueDate"), interest shall accrue on the sum due and owing toLICENSOR at an annual rate of two percent (2%) above the primerate quoted by The Wall Street Journal on the day said payment isdue. |

|  |
|--|

| *** | Confidential |
|-----|--------------|

23

----

|          |                  |
|----------|------------------|
| 5.  | BOOKS ANDRECORDS |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.1  | VION shall prepare an annualstatement which shall show on a country by country basis for theprevious calendar year all monies due to LICENSOR under this LicenseAgreement. That statement shall include the dollar amount of Net Salesof each Licensed Product sold in each country in which sales occurred,and shall be submitted to LICENSOR within sixty (60) Business Days of31st March of each year. If LICENSOR gives notice to VION within twenty(20) Business Days of the receipt of any such statement that it doesnot accept the same, that statement shall be certified by anindependent accountant appointed by agreement between VION and LICENSORor, if such agreement cannot be reached within ten (10) Business Days,appointed at the request of either LICENSOR or VION. VION shall makeavailable to the independent accountant all books and records requiredfor the purpose of that certification and the statements so certifiedshall, in the absence of manifest error, be final and binding betweenthe Parties. The cost of the external certification (cost of theindependent accountant) shall be the responsibility of VION if thestatement is shown to have underestimated the monies payable toLICENSOR by more than five percent (5%) and the responsibilityof LICENSOR otherwise. Any outstanding payments due to LICENSOR whichare identified as a result of carrying out the investigation shall bepaid to LICENSOR immediately. There shall be no more than onecertification by an independent accountant in relation to any oneannual statement. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 5.2  | VION shall, and shallensure that its Sub-licensees shall, keep true and accurate records andbooks of account containing all data necessary for the calculation ofthe amounts payable by it to LICENSOR pursuant to this LicenseAgreement. Such records and books of account shall be kept for six (6)years following the end of the calendar year to which they relate andshall, upon reasonable notice having been given by LICENSOR, be open atall reasonable times on Business Days for inspection under the terms ofconfidentiality contained in this License Agreement, by an independentfirm of accountants appointed by agreement between the Parties or, ifsuch agreement cannot be reached within ten (10) Business Days,appointed at the request of either LICENSOR or VION. The cost of anysuch examination shall be borne by LICENSOR, such examination to takeplace not later than six (6) years following the expiration of theperiod to which it relates and there shall be no more than oneexamination per year. |

|          |                                     |
|----------|-------------------------------------|
| 6.  | PERFORMANCE ANDCLINICAL DEVELOPMENT |

|           |                                                                                                                                                                                                          |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6.1  | VION shall, andshall procure that its Affiliates and permitted Sub-licensees shall,use best endeavours to develop, make, market, sell and otherwisedispose of Licensed Products throughout theTerritory. |

|           |                                                                                                                                         |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------|
| 6.2  | VION shall carry out in adiligent manner the Development Plan (Schedule 3) in relation toLicensed Products at its own cost and expense. |

|          |                                                          |
|----------|----------------------------------------------------------|
| 7.  | MANAGEMENT OF PATENT RIGHTS AND OWNERSHIP OFIMPROVEMENTS |

|           |                                                                                                                                                                                                                |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.1  | VION shall, at its own cost,be responsible for the filing, prosecution, and maintenance of anypatents and patent applications comprised within the LICENSOR ExistingPatent Rights after the Commencement Date. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.2  | If either Party receives any notice, claim orproceedings from any Third Party alleging infringement of that ThirdParty's intellectual property by reason of either Party'sactivities in relation to this License Agreement or the use andexploitation of the LICENSOR Existing Intellectual Property, the Partyreceiving that notice shall forthwith notify the other Party of thenotice, claim or proceeding. |

|           |                                                                                                                                                                                                                                                                             |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.3  | VION shall,at its own cost, defend and enforce or shall procure the defence orenforcement of the rights under the LICENSOR Existing IntellectualProperty including any interference proceedings arisen from any countryor countries. LICENSOR shall, at VION's cost, render |

24

----

|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | such reasonable assistance as VIONreasonably requests. If VION, for any reason whatsoever, decides not todefend or enforce the LICENSOR Existing Intellectual Property or anypart of it in such country or countries, it shall promptly notifyLICENSOR and LICENSOR shall have the right, but not the obligation, toterminate VION's license in such country or countries upon thirty(30) days prior written notice to VION and/or to undertake proceedingson its own behalf in accordance with Section 7.4. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.4  | If VION decides not to, or fails to defend orenforce the relevant LICENSOR Existing Intellectual Property and ifLICENSOR desires the enforcement or defence of such rights, LICENSOR,at its own cost, shall notify VION and VION shall, at LICENSOR'srequest, grant to LICENSOR any and all rights that would be necessaryfor LICENSOR to undertake the enforcement or defence. If VION is unableto grant such rights then it shall, at LICENSOR's request, grantto LICENSOR the right to conduct such an action in its name. VION shallprovide, at LICENSOR's request, such reasonable assistance asLICENSOR may reasonably request in any such proceedings. Any moniesreceived by LICENSOR pursuant to any enforcement or defence of theLICENSOR Existing Intellectual Property by them under this Clause 7.4shall be solely for the benefit ofLICENSOR. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7.5  | It is the intent of theParties to use their reasonable endeavours to apply for any extensionto the term of protection of the LICENSOR Existing IntellectualProperty including any SPC or other like form of protection which isavailable anywhere in the world. Notwithstanding the foregoing, VIONhas the right, in its sole discretion, not to file, prosecute, ormaintain patent applications or patents in any country. LICENSOR may,in its sole discretion and at its own expense, file, prosecute, ormaintain such patent applications or patents in such country orcountries where VION does not file, prosecute or maintain patents orpatent applications, and may terminate VION's license to theLicensed Patents in such country orcountries. |

|          |                         |
|----------|-------------------------|
| 8.  | WARRANTIES ANDLIABILITY |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.1  | It is agreed and understood bythe Parties that VION is responsible for its own investigation tosatisfy itself that the rights granted under this License Agreement canbe properly and lawfully exercised by VION without infringing therights of any third party, and except as expressly set out in Clause8.2 and 8.3 no warranties of any kind are given by LICENSOR in relationto the intellectual property rights granted under this LicenseAgreement or owned or controlled by any third party which may affectthe exercise of such rights. |

|           |                                                             |
|-----------|-------------------------------------------------------------|
| 8.2  | Each Partyrepresents and warrants to the other Partiesthat: |

|        |       |                                                                                                                                    |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------|
|   | 8.2.1 | it has legalpower, authority and right to enter into this License Agreement and toperform its respective obligations hereunder;and |

|             |                                                                                                                                                                                                      |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.2.2  | it is not at the CommencementDate a party to any agreement, understanding with any Third Party whichin any significant way prevents it from fulfilling any of its materialobligations hereunder; and |

|             |                                                                                                                                                                                                                                                                  |
|-------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.2.3  | it isalso agreed and understood by the Parties that LICENSOR is the soleowner or the sole assignee of the LICENSOR Existing IntellectualProperty listed in Schedules 1, and LICENSOR has the right to licensethe LICENSOR Existing Intellectual Property toVION. |

|        |                                                                                   |
|--------|-----------------------------------------------------------------------------------|
|   | Any breach of this Clause 8.2 shall bea material breach of this LicenseAgreement. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.3  | Other than expressly set outherein, no Party gives any representation or warranty to any otherParty that the performance of this License Agreement will not result inthe infringement of any rights, including intellectual property rights,vested in a Third Party; provided that LICENSOR represents and warrantsthat it has no knowledge of any third party intellectual propertyrights reasonably likely to be infringed by VION's performance ofthe Agreement and use of the LICENSOR Existing IntellectualProperty. |

25

----

|           |                                                                                                                                                                                                                   |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.4  | Nothing in thisLicense Agreement shall be construed as a representation made orwarranty given by LICENSOR in relation to the LICENSOR Existing PatentRights or other LICENSOR Existing Intellectual Propertythat: |

|        |       |                                                                |
|--------|-------|----------------------------------------------------------------|
|   | 8.4.1 | any patentwill issue based upon any pending patentapplication; |

|        |       |                                      |
|--------|-------|--------------------------------------|
|   | 8.4.2 | anypatent which issues will bevalid. |

|             |                                                                                                                                            |
|-------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| 8.4.3  | except as stated in 8.3,the use of any Licensed Intellectual Property will not infringe thepatent or proprietary rights of any ThirdParty. |

|        |                                                                                                                                                                                                                                                 |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Furthermore, except as stated in 8.3,LICENSOR makes no representation or warranty, express or implied, withrespect to the LICENSOR Existing Intellectual Property, including anywarranty of merchantability or fitness for a particularpurpose. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.5  | No Party shall be liable to theother Party, its Affiliates or Sub-licensees in contract, tort,negligence, breach of statutory duty or otherwise for any loss, damage,cost or expense of an indirect or consequential nature (including anyeconomic loss or other loss of turnover, profits, business or goodwill)arising out of or in connection with this License Agreement or thesubject matter of this License Agreement. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.6  | VION shall be responsible for and indemnify,defend and hold harmless LICENSOR, and their respective officers,servants and agents against any and all liability, loss, damage, costor expense (including reasonable attorney's fees and court andother expenses of litigation) arising out of or in connection withThird Party claims relating to the discovery, research, development,manufacture, marketing, selling and disposal of Licensed Products orcandidate Licensed Products by VION its Affiliates andSub-licensees. |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8.7  | In the event that LICENSORintends to seek indemnification under Clause 8.6, it shall promptlyinform VION of a claim after receiving notice of the claim and shallpermit VION to direct and control the defence of the claim and shallprovide such reasonable assistance as reasonably requested by VION (atVION's cost) in the defence of the claim. Provided always thatnothing in this Clause 8.7 shall permit VION to make any admission onbehalf of, or to settle any litigation without the prior writtenconsent of,LICENSOR. |

|          |                 |
|----------|-----------------|
| 9.  | CONFIDENTIALITY |

|           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.1  | EachParty undertakes and agrees not at any time for any reason whatsoeverto disclose or permit to be disclosed to any Third Party or otherwisemake use of or permit to be made use of (except as expressly permittedby this License Agreement), any trade secrets or confidentialinformation relating to the other Party's technology or thebusiness affairs or finances of the other Party or of an Affiliate,Sub-licensee or of any suppliers, agents, distributors or customers ofthe other Party (the "ConfidentialInformation") which come into its possession pursuant tothis License Agreement. |

|           |                                                                                                                                                                                                                                                                                                                                                                                    |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.2  | The Parties shallensure that only those of their and their Affiliates' officersand employees who have a need to know are given access to ConfidentialInformation and that those who are directly concerned with the carryingout of this License Agreement and who have access to the ConfidentialInformation of the other Party are informed of its secret andconfidential nature. |

|           |                                                                                                                 |
|-----------|-----------------------------------------------------------------------------------------------------------------|
| 9.3  | The obligations ofconfidence referred to in this Clause 9 shall not extend to anyConfidential Informationwhich: |

|        |       |                                                                                                                                                                                       |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 9.3.1 | is at thetime of disclosure, or thereafter becomes, generally available to thepublic otherwise than by reason of a breach by the recipient Party ofthe provisions of this Clause 9;or |

|        |       |                                                                                                                                                 |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 9.3.2 | is known to therecipient Party without obligations of confidence prior to its receiptfrom the other Party, as can be shown by written record;or |

|        |       |                                                                                                                                                   |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 9.3.3 | is subsequentlydisclosed to the recipient Party without obligations of confidence byanother party owing no such obligations in respect thereof;or |

26

----

|        |       |                                                                                                                             |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------|
|   | 9.3.4 | isrequired to be disclosed by any applicable law or any CompetentAuthority to which a Party is from time to time subject;or |

|        |       |                                                                                                                                                                                                                         |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 9.3.5 | is independentlydeveloped by a servant, agent or employee of the recipient Party or anyother person or persons having no access to the ConfidentialInformation disclosed by a Party, as demonstrated by writtenrecords. |

|           |                                                                                                                                                                          |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 9.4  | The obligations of each Partyunder this Clause 9 shall survive the expiration or termination forwhatever reason of this License Agreement for a period of five (5)years. |

|           |                     |
|-----------|---------------------|
| 10.  | TERM ANDTERMINATION |

|            |                                                                                                                                                                                                                                  |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1  | This License Agreement shallbecome effective as of the Commencement Date and shall expire, on acountry by country basis, when the last patent included within theLICENSOR Existing Intellectual Property in such countryexpires. |

|            |                                                                                                                                                                                                                                                                                                                                                                                            |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.2  | Either LICENSOR on the one handor VION on the other hand ("the TerminatingParty") shall have the right to terminate this LicenseAgreement forthwith upon giving written notice of termination to VIONon the one hand or LICENSOR on the other hand as the case may be("the Defaulting Party"), upon the occurrenceof any of the following events at any time during this LicenseAgreement: |

|  |              |                                                                                                                                                                                                                                                                        |
|--|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 10.2.1  | the Defaulting Partycommits a material breach of this License Agreement which in the caseof a breach capable of remedy shall not have been remedied withinthirty (30) Business Days of the receipt by it of a notice identifyingthe breach and requiring its remedy;or |

|  |              |                                                                                                                                                                                                                                                                             |
|--|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 10.2.2  | VION for a period of longerthan ninety (90) Business Days fails to make payments set out in Clause4 and VION fails to reach an agreement with LICENSOR concerning suchpayments within thirty (30) Business Days of the receipt by it of anotice identifying thedelinquency. |

|           |                            |
|-----------|----------------------------|
| 11.  | CONSEQUENCES OFTERMINATION |

|            |                                                                                                           |
|------------|-----------------------------------------------------------------------------------------------------------|
| 11.1  | Upon expiry of this LicenseAgreement or in the case that VION commits a material breach of thisAgreement: |

|  |              |                                                                                    |
|--|--------------|------------------------------------------------------------------------------------|
|  | 11.1.1  | the license rightsgranted by LICENSOR to VION pursuant to Clause 2 shallterminate; |

|  |              |                                                                                                                                                 |
|--|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 11.1.2  | VION shall pay toLICENSOR within sixty (60) Business Days all sums due to LICENSORhereunder which have accrued prior to the date oftermination; |

|  |              |                                                                                                                                                                                                                                                                                           |
|--|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 11.1.3  | VION shall returnto LICENSOR, or as LICENSOR may direct, all Documents which embody andpertain to LICENSOR Existing Intellectual Property and associated KnowHow. For the sake of clarity any and all data generated by VIONaccording to the Development plan shall be vested in VION;and |

|  |              |                                                                                                                                                  |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 11.1.4  | VION shall return toLICENSOR, or at the election of LICENSOR destroy, all LICENSOR ExistingMaterials in VION's possession or under theircontrol. |

|            |                                                                                                                                                                                                                                                                             |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.2  | In the case that LICENSOR commitsa material breach of this Agreement, LICENSOR shall reimburse VIONwithin 30 (thirty) Business Days after receiving VION's invoiceof all documentable expenses related to this Agreement which haveaccrued prior to the date oftermination. |

|            |                                                                                                                                                                                                                                                                                                                                                                                   |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 11.3  | Termination or expiry ofthis License Agreement for whatever reason shall not affect the accruedrights of the Parties arising in any way out of this License Agreementas at the date of termination or expiry and in particular but withoutlimitation the right to recover damages and interest, and theprovisions of Clauses 5, 8, 9 and 20 shall remain in full force andeffect. |

27

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|           |        |
|-----------|--------|
| 12.  | WAIVER |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 12.1  | NeitherParty shall be deemed to have waived any of its rights or remediesconferred by this License Agreement unless the waiver is made inwriting and signed by a duly authorised representative of that Party.In particular, no delay or failure of either Party in exercising orenforcing any of its rights or remedies conferred by this LicenseAgreement shall operate as a waiver of those rights or remedies or soas to preclude or impair the exercise or enforcement of those rights orremedies nor shall any partial exercise or enforcement of any right orremedy by either Party preclude or impair any other exercise orenforcement of that right or remedy by that Party. |

|           |                             |
|-----------|-----------------------------|
| 13.  | ENTIRE AGREEMENT/VARIATIONS |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.1  | This License Agreement constitutes theentire agreement and understanding between the Parties and supersedesall prior oral or written understandings, arrangements, representationsor agreements between them relating to the subject matter of thisLicense Agreement, including the Research Collaboration Agreement whichis hereby terminated. No director, employee or agent of either Party isauthorised to make any representation or warranty to another Party notcontained in this License Agreement, and each Party acknowledges thatit has not relied on any such oral or written representations orwarranties. |

|            |                                                                                                                                                                                                        |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 13.2  | No variation, amendments,modification or supplement to this License Agreement shall be validunless made in writing in the English language and signed by a dulyauthorised representative of eachParty. |

|           |         |
|-----------|---------|
| 14.  | NOTICES |

|            |                                                                                                                                                                                                                                                                                                                                                              |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14.1  | Any notice to be given pursuant to thisLicense Agreement shall be in writing in the English language and shallbe delivered by hand, or sent by facsimile confirmed to the address orfacsimile number of the recipient set out below or such other addressor facsimile number as a Party may from time to time designate bywritten notice to the other Party. |

Addresses:

|        |                                                                                           |
|--------|-------------------------------------------------------------------------------------------|
|   | LICENSOR AUSTRIAWIRTSCHAFTSSERVICE Gesellschaft m.b.H Ungargasse 37A-1030 Vienna, Austria |

|        |                                                                                                                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   | PROF. DR. JOHANNHOFMANN Institut für Medizinische Chemie und BiochemieUniversity of Innsbruck Fritz-Pregl-Strasse 3 A-6020Innsbruck, Austria |

|        |                                                                                         |
|--------|-----------------------------------------------------------------------------------------|
|   | VION Pharmaceuticals,Inc. 4 Science Park New Haven, CT 06511 USA Attn:Howard B. Johnson |

|            |                                                                                  |
|------------|----------------------------------------------------------------------------------|
| 14.2  | Any notice givenpursuant to this Clause 14 shall be deemed to have beenreceived: |

|  |              |                                                    |
|--|--------------|----------------------------------------------------|
|  | 14.2.1  | in the case ofdelivery by hand, when delivered; or |

|  |              |                                                                                                                                                                                                                                            |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 14.2.2  | in the case of facsimile, onacknowledgement by the recipient facsimile receiving equipment on aBusiness Day if the acknowledgement occurs before 1700 hours local timeof the recipient and in any other case on the following BusinessDay. |

28

----

|           |            |
|-----------|------------|
| 15.  | ASSIGNMENT |

|            |                                                                                                                                                                                                                                                       |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.1  | Subjectto Clause 15.2, no Party shall without the prior written consent of theother Party, assign the benefit and/or burden of this License Agreementnor sub-contract any of its obligations hereunder unless otherwisepermitted by the terms hereof. |

|            |                                                                                                                                                                                                                                      |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 15.2  | LICENSORor VION shall be entitled to assign the benefit and/or burden of thisLicense Agreement to any Affiliate or its successor in connection withany merger, consolidation or sale or other disposal of its assetsand/or business. |

|           |              |
|-----------|--------------|
| 16.  | FORCEMAJEURE |

|            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 16.1  | If a Party (the"Non-Performing Party") is unable to carryout any of its obligations under this License Agreement due to ForceMajeure this License Agreement shall remain in effect but theNon-Performing Party's relevant obligations under this LicenseAgreement and the relevant obligations of the other Party("the Innocent Party") under this LicenseAgreement shall be suspended for a period equal to the duration of thecircumstance of Force Majeure provided that: |

|  |              |                                                                                            |
|--|--------------|--------------------------------------------------------------------------------------------|
|  | 16.1.1  | the suspension of performance isof no greater scope than is required by the Force Majeure; |

|  |              |                                                                                                                                                                                                                                                          |
|--|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 16.1.2  | the Non-Performing Party gives theInnocent Party prompt notice describing the circumstance of ForceMajeure, including the nature of the occurrence and its expectedduration, and continues to furnish regular reports during the period ofForce Majeure; |

|  |              |                                                                                                                                                            |
|--|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 16.1.3  | theNon-Performing Party uses all reasonable efforts to remedy itsinability to perform and to mitigate the effects of the circumstance ofForce Majeure; and |

|  |              |                                                                                                                                                                                                   |
|--|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 16.1.4  | as soon aspracticable after the event which constitutes Force Majeure the Partiesshall discuss how best to continue their operations as far as possiblein accordance with this License Agreement. |

|            |                                                                                                                                                                                                                                                                                                                              |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 16.2  | If Force Majeure is continuing at the expiryof 3 months either of the Innocent Party may give thirty (30) BusinessDays written notice to terminate this License Agreement to theNon-Performing Party and termination shall occur if the Force Majeureis continuing at the end of that thirty (30) Business Day noticeperiod. |

|           |                    |
|-----------|--------------------|
| 17.  | SEVERANCE OF TERMS |

|            |                                                                                                                                                                                                                                                                                                                                                                                         |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.1  | If the whole or any part of this LicenseAgreement is or becomes or is declared illegal, invalid orunenforceable in any jurisdiction for any reason (including both byreason of the provisions of any legislation and also by reason of anycourt or Competent Authority which either has jurisdiction over thisLicense Agreement or has jurisdiction over either or both of theParties): |

|  |              |                                                                                                                                                                            |
|--|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 17.1.1  | in the case of theillegality, invalidity or un-enforceability of the whole of thisLicense Agreement it shall terminate only in relation to thejurisdiction in question; or |

|  |              |                                                                                                                                                                                                                                                                                                                                                                                         |
|--|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 17.1.2  | inthe case of the illegality, invalidity or un-enforceability of part ofthis License Agreement that part shall be severed from this LicenseAgreement in the jurisdiction in question and that illegality,invalidity or un-enforceability shall not in any way whatsoeverprejudice or affect the remaining parts of this License Agreement whichshall continue in full force and effect. |

|            |                                                                                                                                                                                                                                  |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 17.2  | If in the reasonable opinion of either Partyany severance under this Clause 17 materially affects the commercialbasis of this License Agreement, the Parties shall discuss, in goodfaith, ways to eliminate the material effect. |

29

----

|           |                                                       |
|-----------|-------------------------------------------------------|
| 18.  | THIS LICENSEAGREEMENT NOT TO CONSTITUTE A PARTNERSHIP |

|            |                                                                                                                                                                                                                                      |
|------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 18.1  | None of the provisions of this LicenseAgreement shall be deemed to constitute a partnership between theParties and no Party shall have any authority to bind any other Partyin any way except as provided in this License Agreement. |

|           |                  |
|-----------|------------------|
| 19.  | PUBLICSTATEMENTS |

|            |                                                                                                               |
|------------|---------------------------------------------------------------------------------------------------------------|
| 19.1  | Except as provided in Clause19.2, neither Party shall, without the prior written consent of theother Parties: |

|  |              |                                                                                                                                                                                                                                                                    |
|--|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 19.1.1  | use inadvertising, publicly or otherwise, any trade-name, personal name,trademark, trade device, service mark, symbol, or any abbreviation,contraction or simulation thereof, owned by another Party (includingfor the sake of clarity in relation to LICENSOR);or |

|  |              |                                                                                                                                                                                                                                       |
|--|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  | 19.1.2  | represent, either directlyor indirectly, that any product or service of another Party is aproduct or service of the representing Party or that it is made inaccordance with or utilises the information or documents of anotherParty. |

|            |                                                                  |
|------------|------------------------------------------------------------------|
| 19.2  | The restrictions in Clause 19.1shall not apply to the following: |

|  |              |                                                                                                              |
|--|--------------|--------------------------------------------------------------------------------------------------------------|
|  | 19.2.1  | a press release, in a form agreedto in writing by the Parties, publicly announcing this LicenseAgreement; or |

|  |              |                                                                 |
|--|--------------|-----------------------------------------------------------------|
|  | 19.2.2  | use as requiredby any applicable law or governmentalregulation. |

|           |                               |
|-----------|-------------------------------|
| 20.  | GOVERNING LAW ANDJURISDICTION |

|            |                                                                                                                                                                                                                                         |
|------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 20.1  | The validity, constructionand performance of this License Agreement shall be governed by the lawsof the United Kingdom and any dispute relating to it shall be subjectto the exclusive jurisdiction of the Courts of the UnitedKingdom. |

30

----

SCHEDULE1

LICENSOR existing patents

AustrianApplication

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

PCT Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

|                |     |
|----------------|-----|
| Publ.No:  | *** |

EP Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                 |     |
|-----------------|-----|
| Appl.Date  | *** |

US Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

Canadian Application

|              |     |
|--------------|-----|
| Title:  | *** |

|                |     |
|----------------|-----|
| Appl.No:  | *** |

|                  |     |
|------------------|-----|
| Appl.Date:  | *** |

|  |
|--|

|  | ***Confidential |
|--|-----------------|

31

----

SCHEDULE 2

INTENTIONALLYLEFT BLANK

32

----

SCHEDULE3

"DevelopmentPlan"

|          |                                                                                 |
|----------|---------------------------------------------------------------------------------|
| 1.  | An IND or anequivalent will be filed *** after Clinical Candidate isidentified. |

|          |                                                                                                                                                                                                                                                                                                                    |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.  | Phase I clinical trials willbe started *** after the IND or an equivalent is approved. The firstPhase I clinical trial will be completed *** of its initiation.Completion of the final study report and data analysis will constitutethe end of the trial. Any further Phase I trials will be completed ***period. |

|          |                                                                                                                                                                                                                                                                                                                            |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.  | Phase II clinical trials will bestarted *** after the completion of Phase I clinical trials. The firstPhase II clinical trial will be completed *** of its initiation.Completion of the final study report and data analysis will constitutethe end of the trial. Any further Phase II trials will be completed ***period. |

|          |                                                                                                                                                         |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.  | 4. Phase III clinical trialswill be started ***after an agreement is reached with FDA (or similar regulatory body) atthe end of Phase II trial meeting. |

|  |
|--|

|  | ***Confidential |
|--|-----------------|

33

----

**IN WITNESS WHEREOF** this LicenseAgreement has been executed by duly authorised officers of the Partieson the date first above written.

|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signedby:  |                                                                                  |

|  |                                                                                  |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |                                                                                  |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |                                                                                  |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |                                                                                  |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

For and on behalf of **AUSTRIAWIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.**

|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signedby:  |                                                                                |

|             |              |
|-------------|--------------|
| Name:  |    |

|              |                                             |
|--------------|---------------------------------------------|
| Title:  |          |

|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signedby:  |                                                                                |

|             |                                      |
|-------------|--------------------------------------|
| Name:  |        |

|              |                                      |
|--------------|--------------------------------------|
| Title:  |        |

For and onbehalf of **VION PHARMACEUTICALS INC.**

|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signedby:  |                                                                                |

|             |                                |
|-------------|--------------------------------|
| Name:  |       |

|              |                                      |
|--------------|--------------------------------------|
| Title:  |        |

34

----

SCHEDULE5

Criteria for "ClinicalCandidate"

1. Potency:***

2. ***

3. ***

4. ***

5.***

|  |
|--|

|  | ***Confidential |
|--|-----------------|

35

----

**IN WITNESS WHEREOF** thisAgreement has been executed by the duly authorised officers of theParties hereto on the day and year first above written.

|                  |                                                                                                                                                                                                                                                                                                |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signed by:  |   /s/ Johann Hofmann                11/24/03          Prof. Dr.JohannHofmann           Date |

|  |   /s/Johnny Easmon                   11/24/03          Dr. Johnny Easmon                      Date |
|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   /s/Gottfried Heinisch              11/24/03          Dr.Gottfried Heinisch                 Date |
|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   /s/Gerhard Pürstinger             11/24/03          Dr.GerhardPürstinger                 Date |
|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |   /s/Heinz-Herbert Fiebig          11/28/03          Prof. Dr.Heinz-Herbert Fiebig    Date |
|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

For and on behalfof **AUSTRIA WIRTSCHAFTSSERVICE GESELLSCHAFT M.B.H.**

|                 |                                                                                                                                                                                                                                                  |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signedby:  |   /s/ Peter Takacs                          11/24/03         |

|             |                                                                                                                                                                         |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name:  |   Mag.Dr. PeterTakacs                      Date |

|              |                                                                           |
|--------------|---------------------------------------------------------------------------|
| Title:  |   CEOAustria Wirtschaftsservice Gesellschaft   m.b.H. |

Title:

|                  |                                                                                                                                   |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| Signed by:  |   /s/WilhelmHantsch-Linhart      11/24/03         |

|             |                                                          |
|-------------|----------------------------------------------------------|
| Name:  |   DIDr. WilhelmHantsch-Linhart  Date |

|              |                                             |
|--------------|---------------------------------------------|
| Title:  |   HeadTechnology & Innovation |

For and on behalf of **VIONPHARMACEUTICALS, INC**

|                 |                                                                                                                                                                              |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Signedby:  |   /s/ Howard B.Johnson              11/24/03         |

|             |                                                                                                                                                                                       |
|-------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name:  |   HowardB.Johnson                         Date |

|              |                 |
|--------------|-----------------|
| Title:  |   CFO |

36

----