<PAGE>

[CONFIDENTIAL TREATMENT REQUESTED, CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION]

                                   AGREEMENT                       EXHIBIT 10.17

This Agreement is made on 10 February 2000

between:

UNILEVER PLC,  an English company having its principal place of business at
Unilever House, Blackfriars, London EC4P 4BQ, England, and UNILEVER NV a
Netherlands company having its principal place of business at Weena 455, 3013 AL
Rotterdam, Netherlands (hereinafter collectively "Unilever")

and:

THERASENSE INC, a California corporation having its principal place of business
at 1360 South Loop Road, Alameda, California 94502, United States (hereinafter
"Licensee")

WHEREAS:
-------

A.   Unilever is in possession directly or indirectly of certain Patent Rights
     relating to biosensors.

B.   The Licensee has requested a non-exclusive licence under the Unilever
     Patent Rights, and the parties have agreed thereto on the terms hereinafter
     set forth.

NOW THEREFORE IT IS HEREBY AGREED:
---------------------------------

1.   DEFINITIONS:
     -----------

1.1  "Affiliate" shall mean any company which owns, is owned by or is commonly
     owned with the Licensee. Ownership shall mean the control of the voting
     rights attaching to over 50% of the voting shares of the company concerned.

<PAGE>

                                     - 2 -

1.2  "Patent Rights" shall mean the Unilever patent applications and patents set
     forth in the Schedule hereto, and patents based on or claiming priority
     from any of those patent applications and patents, as well as any
     substitution, division, continuation, continuation-in-part, re-examination
     or reissue thereof.

1.3  "Territory" shall mean all countries where the Patent Rights are valid and
     subsisting.

1.4  "Licensed Product" shall mean any electrochemical biosensor for analysis of
     markers for diabetes in a liquid sample, covered by or made in accordance
     with, or adapted for use as claimed in any granted patent or published
     patent application within the Patent Rights.

1.5  The "Effective Date" shall mean the date of this Agreement.

1.6  "First Commercial Sale" shall mean the first offering for sale by the
     Licensee or its Affiliates of Licensed Product for immediate delivery to an
     unrelated third party, and shall not include the building up of inventories
     at Licensee or Affiliates or pre-introduction announcements of anticipated
     products of Licensee.

2.   GRANT OF LICENCE
     ----------------

2.1  Unilever hereby grants to the Licensee and Licensee hereby accepts with
     effect from the Effective Date a non-exclusive *** licence under the
     Patent Rights in the Territory to make, have made for it, use and sell
     Licensed Products according to the terms set out in this Agreement.

2.2  There will be no right to sub-licence without prior written consent of
     Unilever.

*** Confidential Treatment Requested.
<PAGE>

                                     - 3 -

2.3  The licence to the Licensee shall not be assigned or otherwise transferred
     in whole or in part to any third party, except that the rights and
     obligations of the Licensee may be exercised by Affiliates, provided that
     the Licensee will remain wholly responsible and accountable to Unilever for
     the performance by each Affiliate of any such rights and obligations and
     the Licensee shall inform Unilever in writing before any Affiliate is
     nominated to exercise such rights and obligations.

3.   *** ROYALTY FEE
     -----------------

3.1  In consideration of the licence rights to be granted by Unilever in Clause
     2 hereof, Licensee will pay to Unilever by bank transfer to the account
     identified in Clause 4.1 hereof, non-returnable payments as follows:

        *** upon signature of this Agreement;

        *** within 10 days after the date of the First Commercial Sale, or on
        15th March 2000, whichever shall be earlier;

        ***
        ***
        ***

     The Licensee shall promptly notify Unilever in writing to the address in
     clause 6.3, the date when the second payment is to be made.

     *** Confidential Treatment Requested
<PAGE>

                                      -4-

4. ACCOUNTS
   --------

4.1  All payments due hereunder shall be made in US Dollars by bank credit
     transfer to:

     Correspondent Bank:  Citibank, New York
                          Swift address: ***
     For the account of:  CITIBANK, London
                          Swift address: ***
     In favour of:        Unilever UKCR
                          Account: ***

     or otherwise as Unilever shall direct. Unilever NV hereby confirm that
     Unilever PLC may make a valid and binding receipt on its behalf. Any
     payments which are sent to Unilever more than fifteen (15) days beyond
     their due dates as indicated in clause 3.1, shall bear interest at fifteen
     (15) percent per annum from the date on which payment was due to the date
     on which payment is received by Unilever.

4.2  All payments provided for under this Agreement shall be made to Unilever in
     full, provided however that in the event and only to the extent that any
     sum payable hereunder is subject to direct taxes levied or assessed by any
     government authority under the law of the country from which the remittance
     is made, and a treaty exists with that country and the country where the
     remittance is received or there is other provision for the avoidance of
     double taxation, the Licensee has the right to deduct from the payment any
     such taxes and the Licensee shall for each such deduction provide to
     Unilever a certificate or other documentary evidence executed by the
     appropriate official or relevant government authority to enable Unilever to
     claim relief from double taxation on such payments. All payments due under
     this Agreement are exclusive of value added tax, or equivalent taxes where
     applicable.

*** Confidential Treatment Requested
<PAGE>

                                      -5-

5.    TERMINATION
      -----------

5.1   The Licensee may terminate the licence granted in this Agreement at any
      time upon ninety (90) days written notice subject to payment of paid-up
      royalty as indicated in clause 3.1 until the actual date of termination.

5.2   Upon any default by the Licensee in the performance of any material
      obligation to be performed under the Agreement, Unilever may give written
      notice specifying the matter in default, and unless the default is cured
      within sixty (60) days following the giving of notice, Unilever may
      forthwith terminate the Agreement and the licence rights granted
      hereunder.

5.3   Unilever may terminate the licence rights of the Licensee forthwith if the
      Licensee shall be declared bankrupt or shall enter into liquidation or
      receivership or equivalent state.

5.4   In the event that Licensee challenges, directly or indirectly, any Patent
      Right outside the territory of the USA, Unilever shall have the right to
      terminate the license under this Patent Right immediately in the country
      in which the Patent Right is challenged.

5.5   In all instances, in the event that Licensee challenges any Patent Right
      in any country in the Territory, including the USA, Licensee will still be
      obliged to continue paying the royalties due under this Patent Right as
      set forth in Clause 3.

5.6   Unilever may terminate the licence rights of the Licensee forthwith if the
      Licensee manufactures, uses or sells any product which is covered by the
      Patent Rights in the country of such manufacture, use or sale, other than
      a Licensed Product. Such termination will be effective thirty (30) days
      after Unilever provides written notice to Licensee.

<PAGE>

                                    - 6 -

     specifying breach of this provision, unless during such notice period the
     default is cured by Licensee.

5.7  Termination pursuant to Clauses 5.1 to 5.6 hereof shall not relieve either
     party of any obligations accrued prior to the termination, nor rescind or
     give rise to any right to rescind anything done or any payments made
     hereinunder prior to the time of such termination.

5.8  Unless sooner terminated as provided above, the license rights granted
     hereunder shall continue until expiration of the last to expire of the
     patents within the Patent Rights.

6.   GENERAL PROVISIONS
     ------------------

6.1  This Agreement supersedes all previous oral and written agreements between
     the parties, and this Agreement constitutes complete resolution of all
     issues relating to the Patent Rights and is the only and entire
     understanding existing between the parties with respect to the subject
     matter of this Agreement. Any amendment thereto shall be in writing and
     signed by the parties.

6.2  The provisions of this Agreement shall be deemed separable, and if any part
     of this Agreement is rendered void, invalid, or unenforceable, such
     rendering shall not affect the validity or enforceability of the remainder
     of the Agreement unless the part or parts which are void, invalid or
     unenforceable shall substantially impair the value of the whole Agreement
     to either party.

6.3  All notices and reports shall be sent to the parties at the addresses shown
     below. Such notice or report shall be deemed received when sent addressed
     to the party at the address shown below by recorded delivery or registered
     mail or by express service prepaid or by facsimile or telex confirmed by
     mail within seven (7) days. The addresses for

<PAGE>

                                    - 7 -

     notices and reports may be changed by timely written notice to the other
     party.

     For the Licensee:  VP Business Development
                        THERASENSE Inc
                        1360 South Loop Road
                        Alameda
                        CA 94502
                        United States

     For Unilever:      The Senior Agreements Officer
                        UNILEVER PLC
                        Patent Division
                        Colworth House
                        Sharnbrook
                        Bedfordshire MK44 1LQ
                        England

6.4  Unilever PLC and Unilever NV represent and warrant that they own all right
     title and interest in and to the Patent Rights or are otherwise authorised
     to enter into this Agreement, and that the patent applications in the
     Patent Rights were made in good faith, and Unilever is not aware of grounds
     which invalidate the Patent Rights, but Unilever expressly do not warrant
     the validity of any of the Patent Rights.

6.5  Unilever expressly does not warrant that any Licensed Product is free from
     infringement of any third party patent or other intellectual property
     rights. The Licensee accepts full responsibility for the manufacture, use
     and sale of all Licensed Products and Unilever shall not be liable to the
     Licensee or any Affiliate or any customers thereof for the consequences of
     such manufacture, use or sale, and the Licensee shall defend, hold harmless
     and indemnify Unilever from any and all damages, costs (including
     reasonable attorney's fees) or judgements of any kind which arise from such
     manufacture, use or sale of Licensed Product.
<PAGE>

                                     -8-

6.6  The Licensee shall not make any use of the Unilever name or any trademark
     of Unilever or of any of its subsidiaries or affiliates, in connection with
     the manufacture, use, promotion or sale of Licensed Products or otherwise
     without the prior written consent of Unilever.

6.7  The parties hereto shall keep the terms of this Agreement confidential and
     shall not now or hereafter divulge these terms to any third party except:

     (a)  with the prior written consent of the other party; or

     (b)  to any governmental body having jurisdiction to call therefor;
          provided, however that the disclosing party shall consult with the
          other party prior to any disclosure and the two parties shall
          cooperate in good faith to minimise any unnecessary disclosure to such
          government body; or

     (c)  subject to (d) below, as otherwise may be required by law or legal
          process, including to legal and financial advisors in their capacity
          of advising a party in such matters; or

     (d)  during the course of litigation so long as the disclosure of such
          terms and conditions are restricted in the same manner as is the
          confidential information of other litigating parties and so long as
          (a) the restrictions are embodied in a court-entered Protective Order
          and (c) the disclosing party informs the other party in writing at
          least ten (10) days in advance of the disclosure; or

     (e)  in confidence to legal counsel, accountants, banks and financing
          sources and their advisors solely in connection with bona fide
          financial transaction, or
<PAGE>

                                     - 9 -

     (f) as required to comply with regulatory requirements of any governmental
         or quasi-governmental institution.

6.8  No licence is hereby granted to the Licensee for making any Product falling
     within the Patent Rights other than the Licensed Product.

6.9  In the performance of their obligations under this Agreement, the status of
     the parties, including its employees and agents, shall be that of
     independent contractors and not as employees or agents, or fiduciaries of
     the other party, and as such, neither party shall have the right to make
     any commitments for or on behalf of the other party. Nothing in this
     Agreement shall create any association, partnership or joint venture
     between the parties.

6.10 Failure by either party to enforce any provision of this Agreement shall
     not be construed as a waiver of such provision and shall not affect the
     validity of the Agreement or any part thereof or the right of that party to
     enforce any provision thereof.

6.11 This Agreement shall be deemed to be made in and shall be construed in
     accordance with the laws of England for all matters (other than scope and
     validity of the Patent Rights which shall be construed and governed in
     accordance with the laws of the jurisdiction in which the Patent Rights
     have been granted).

<PAGE>

                                    - 10 -

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in three originals.

UNILEVER PLC

BY:         SIGNATURE HERE
          ----------------------------------------

TITLE:
          ----------------------------------------


UNILEVER NV

BY (1):     SIGNATURE HERE
          ----------------------------------------

TITLE:
          ----------------------------------------


BY (2):     SIGNATURE HERE
          ----------------------------------------

TITLE:
          ----------------------------------------


THERASENSE, INC.

BY:         SIGNATURE HERE
          ----------------------------------------

TITLE:    Vice President, Business Development
          ----------------------------------------

<PAGE>

Granted Rights - P3043/100
--------------------------


<TABLE>
<CAPTION>
     ------------------------------------------------------------------------------------------
     COUNTRY                                  NUMBER                       EXPIRY DATE
     ------------------------------------------------------------------------------------------
     <S>                           <C>                            <C>
     European                                             470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
                                        -  designated states under the
                                            European patent are: -
     ------------------------------------------------------------------------------------------
     France                                               470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Germany                                           3752278.7           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Italy                                                470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Netherlands                                          470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Spain                                                470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Sweden                                               470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Switzerland                                          470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
     United Kingdom                                       470649           23 Jul 2007
     ------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                                                        AGR20657

                                    SCHEDULE
                                    --------


Granted rights - P3003/2
------------------------


<TABLE>
<CAPTION>
     ------------------------------------------------------------------------------------------
     COUNTRY                                  NUMBER                       EXPIRY DATE
     ------------------------------------------------------------------------------------------
     <S>                           <C>                            <C>
     Australia                                            588245           12 Jun 2005
     ------------------------------------------------------------------------------------------
     Canada                                              1231136           05 Jan 2005
     ------------------------------------------------------------------------------------------
     Japan                                               2527933           12 Jun 2005
     ------------------------------------------------------------------------------------------
     USA                                                 5141868           25 Aug 2005
     ------------------------------------------------------------------------------------------
     European                                             170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
                                               -  designated states under the
                                                    European patent are: -
     ------------------------------------------------------------------------------------------
     France                                               170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
     Germany                                             3577748           12 Jun 2005
     ------------------------------------------------------------------------------------------
     Italy                                                170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
     Netherlands                                          170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
     Sweden                                               170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
     Switzerland                                          170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
     United Kingdom                                       170375           12 Jun 2005
     ------------------------------------------------------------------------------------------
</TABLE>



Granted rights - P3043
----------------------

<TABLE>
<CAPTION>
     ------------------------------------------------------------------------------------------
     COUNTRY                                  NUMBER                       EXPIRY DATE
     ------------------------------------------------------------------------------------------
     <S>                           <C>                            <C>
     European                                             255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
                                                   -  designated states under the
                                                       European patent are: -
     ------------------------------------------------------------------------------------------
     Austria                                              E77697           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Belgium                                              255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     France                                               255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Germany                                             3779967           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Greece                                              3005757           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Italy                                                255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Netherlands                                          255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Spain                                                255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Sweden                                               255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     Switzerland                                          255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
     United Kingdom                                       255291           23 Jul 2007
     ------------------------------------------------------------------------------------------
</TABLE>