EXHIBIT 10.51

# EXCLUSIVE
LICENSE AGREEMENT

This
Agreement is made and entered  into by and between THE REGENTS OF THE  UNIVERSITY  OF
COLORADO,  a body  corporate,  having  its  principal  office  at  201  Regent  Hall,
Regent  Drive,  Boulder,  CO  80309  (hereinafter  "University")  and AVIGEN,
INC.,  a Delaware  corporation  having its  principal  office at 1301 Harbor Bay
Parkway,  Alameda, CA 94502 (hereinafter "Licensee").

# WITNESSETH

WHEREAS,
University  is the owner of certain  Patent  Rights (as later  defined  herein)  relating
to [ * ],  identified as University Case # CU 1068B,  developed by Professor  Linda
Watkins,  and has the right to grant licenses  under said Patent Rights, and;

WHEREAS,
Licensee is  interested  in  licensing  and further  developing  the Patent  Rights for
commercial  applications, and;

WHEREAS,
University  desires to have the Patent Rights  developed and  commercialized  to benefit
the public  and is willing to grant a license hereunder.

NOW,
THEREFORE,  in  consideration of the premises and the mutual covenants  contained
herein,  the parties  hereto agree as follows:

# ARTICLE 1.
DEFINITIONS

For the
purposes of this  Agreement, the following words and phrases shall have the following
meanings:



|1.01 | Affiliate
      of a party shall mean any entity that is directly or indirectly controlling,
      controlled by or under common control with that party. Control
      for these purposes means the direct or indirect ownership of more than fifty
      percent (50%) of the capital stock of the subject entity entitled to vote
      in the election of directors (or, in the case of an entity that is not a
      corporation, interests entitled to vote in the election of the corresponding
      managing authority); or actual, present capacity to elect a majority of
      the directors or other managing authority of such entity
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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|1.02 | Effective
Date shall mean the date of the last signature on this Agreement.
|---- | -----------------------------------------------------------------------------

|1.03 | Fields
of  Use shall mean the fields of use identified in Appendix B.
|---- | -----------------------------------------------------------------------

|1.04 | Licensed
Process(es) shall mean any process, art, or method that is covered  in whole or in
part by an issued, unexpired claim or a pending claim that  has been pending for no more
than six (6) years contained in the Patent  Rights.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.05 | Licensed
Product(s) shall mean any:
|---- | -------------------------------------

| | (a) | product
or part thereof  that is covered in whole or in part by an issued, unexpired claim or a
pending  claim that has been pending for no more than six (6) years contained in  the
Patent Rights; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | product,
chemical composition,  apparatus, or part thereof that is manufactured using a Licensed
Process(es)  or is employed to practice a Licensed Process(es); or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | product
produced or  manufactured through the use of any Licensed Product defined in §1.05(a)
or §1.05(b).
| | --- | ----------------------------------------------------------------------------------------------------------

|1.06 | Net
Sales shall mean the total gross receipts for sales of Licensed Products or
practice  of Licensed Processes by or on behalf of Licensee or its sublicensees to  a
third party in an arms-length transaction, and from leasing, renting,  or otherwise
making Licensed Products available to a third party in an arms-length  transaction,
whether invoiced or not, less returns and allowances, packing  costs, insurance costs,
freight out, taxes or excise duties imposed on the  transaction (if separately invoiced
and paid), and wholesaler and cash discounts  in amounts customary in the trade to the
extent actually granted. No deductions  shall be made for commissions, or for the costs
of collections. Net sales  shall also include the fair market value of any non-cash
consideration received  by Licensee or sublicensees for the sale, lease, or transfer of
Licensed  Products or Licensed Processes. In no case shall Licensed Products transferred
to third parties for use in clinical trials or provided free of charge small  quantities
for compassionate use or other charitable purposes be deemed  to be Net Sales. Transfers
of Licensed Products between Licensee and its  Affiliates and sublicensees shall not be
treated as sales for purposes of  calculating Net Sales, provided that such Affiliates
and/or sublicensees  are not the end-users of the Licensed Products.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|1.07 | Patent
Rights shall mean all of the following University intellectual property:
|---- | --------------------------------------------------------------------------------

| | (a) | the
United States and  foreign patents and/or patent applications and/or provisional patent
applications  listed in Appendix A; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------

| | (b) | United
States and foreign  patents issued from the applications listed in Appendix A and from
divisionals  and continuations of these applications; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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| | (c) | claims
of United States  and foreign continuation-in-part applications, and of the resulting
patents,  which are directed to subject matter specifically described in the United
States and foreign applications listed in Appendix A; and
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | any reissues
or  reexaminations  of United States and foreign patents described in (a), (b) or (c)
above.
| | --- | ---------------------------------------------------------------------------------------------------------

|1.08 | Royalty shall
mean any consideration paid by Licensee to University  pursuant to this Agreement.
|---- | --------------------------------------------------------------------------------------------------

|1.09 | Territory shall
mean the geographical area identified in Appendix  B.
|---- | -----------------------------------------------------------------------

ARTICLE 2.
GRANT OF RIGHTS AND ACCEPTANCE

|2.01 | University
hereby grants and Licensee accepts, during the term and subject to  the terms and
conditions of this Agreement, and further subject to any rights  of the United States
government, an exclusive license to all Universitys  Patent Rights in the
Territory, including the right to make, have made, use,  sell, offer to sell, have sold,
import, or distribute any Licensed Products  in the Fields of Use and to practice any
Licensed Processes in the Fields of  Use.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.02 | This
Agreement confers no license or rights by implication, estoppel, or otherwise  under any
patent applications or patents of University other than licensed Patent  Rights
regardless of whether such patents are dominant or subordinate to licensed  Patent
Rights.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2.03 | This
Agreement shall be subject to the mandatory public laws in any country  where this
Agreement will produce an effect.
|---- | -------------------------------------------------------------------------------------------------------------------------

# ARTICLE 3.
SUBLICENSING

|3.01 | Upon
prior notice to University, Licensee may sublicense to one or more third  parties the
rights granted in Article 2 subject to the following limitations:
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | Licensee
agrees that any sublicenses granted by it shall impose restrictions  and conditions upon
sublicensees that are consistent with those imposed upon  Licensee; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Licensee
agrees that, in the event this Agreement is terminated for any reason,  any sublicenses
granted, in Universitys sole discretion, shall be directly  enforceable by
University; and
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Licensee
agrees that any sublicenses granted shall contain terms to protect  Universitys
security and property interest in Universitys Patent  Rights to at least the extent
that such interest is protected in this Agreement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

|3.02 | Any
payments made by Licensee to University based on revenues from sublicenses  granted by
Licensee shall be in the form of cash consideration unless University  has expressly
consented otherwise in writing in advance.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.03 | Licensee
agrees to forward to University a copy of each fully executed sublicense  agreement
postmarked within thirty (30) days of the execution of such agreement, provided however,
that Licensee may redact confidential information which  is not relevant to Licensees
obligations to University under this agreement.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE 4. GOVERNMENT
AND UNIVERSITY RIGHTS

|4.01 | Notwithstanding
any use of descriptive terms within this Agreement such as exclusive,  this
Agreement is subject to all of the terms and conditions of Title 35 U.S.C.  §§ 200
et al (Bayh-Dole Act) and 37 C.F.R. 401, as such  may be amended. Further,
Licensee agrees to take all reasonable action necessary  to enable University to satisfy
its obligations hereunder upon receipt of written  request for such action by University.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.02 | University
shall have the transferable right to practice the Patent Rights for  nonprofit research
and education purposes, but excluding all human clinical  trials.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.03 | University
shall have the right to publish any information included in the Patent  Rights and the
know-how provided that University takes reasonable steps to avoid  the loss of any patent
rights as a result of University exercising its rights  under this § 4.03. Such
reasonable steps shall include notifying Licensee  thirty (30) days in advance of any
planned publication reasonably related to  Patent Rights, so that Licensee may take steps
to protect Patent Rights.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 5.  ROYALTIES

As
consideration for the  disclosure of Universitys know-how as well as the licenses
and rights  under Universitys Patent Rights,

|5.01 | Licensee
agrees to pay a non-creditable, nonrefundable license issue royalty as set forth  in
Appendix C within thirty (30) days from the Effective Date of this Agreement;  and
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5.02 | Licensee
agrees to pay University earned royalties as set forth in Appendix C; and
|---- | ----------------------------------------------------------------------------------

|5.03 | Licensee
agrees to pay University milestone royalties as set forth in Appendix C; and
|---- | -------------------------------------------------------------------------------------

|5.04 | Licensee
agrees to pay University sublicensing royalties as set forth in Appendix C.
|---- | ------------------------------------------------------------------------------------

|5.05 | No
multiple royalties shall be payable in the event that any Licensed Products  or Licensed
Processes are covered by more than one of the Patent Rights.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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|5.06 | Unless
otherwise provided herein, all payments required under this Agreement  shall be due
within thirty (30) days of written notice from University. Payments  past due shall bear
interest at the rate of one and one-half percent (1 1/2%)  per month compounded, or the
maximum interest rate allowed by applicable law,  whichever is less.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 6.  REPORTS,
RECORDS AND AUDITS

|6.01 | On
or before the sixtieth (60th) day following the end of each calendar  quarter during the
term of this Agreement following the first commercial sale  of a Licensed Product,
Licensee shall provide to University written accounts  for each calendar quarter of the
Net Sales of Licensed Products and/or Licensed  Processes subject to royalty hereunder
made during the prior three (3) month  period and shall simultaneously pay to University
the royalties due on such  Net Sales, if any, in United States Dollars. Notwithstanding
the foregoing,  reports shall be due semi-annually until sales of Licensed Products or
Licensed  Processes commence. The written report shall discuss the progress and results,
as well as ongoing plans, with respect to the Licensed Products and/or Licensed
Processes. University shall have the right to request one meeting per year to  discuss
such information. Net Sales shall be reported in the format of Appendix  D.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.02 | Licensee
shall keep accurate records in sufficient detail to reflect its operations  under this
Agreement and to enable the royalties accrued and payable under this  Agreement to be
determined. Such records shall be retained for at least three  (3) years after the close
of the period to which they pertain, or for such longer  time as may be required to
finally resolve any question or discrepancy raised  by University provided that such
University has provided notice of such question  or discrepancy in writing prior to the
end of the three year retention period.
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.03 | Upon
the request of University, with reasonable notice, but not more frequently  than once a
year, Licensee shall permit an independent public accountant selected  and paid by
University to have access during regular business hours to such  records as may be
necessary to verify the accuracy of royalty payments made  or payable hereunder. Said
accountant shall disclose information acquired to  University only to the extent that it
should properly have been contained in  the royalty reports required under this
Agreement. If an inspection shows an  underreporting or underpayment in excess of [ * ] percent
([ * ]%)  for any [ * ]  period, then Licensee shall reimburse University for the  cost
of the inspection and pay the amount of the underpayment including any  interest as
required by this Agreement.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.04 | Licensee
acknowledges that University is subject to the Colorado Public Records  Act (C.R.S. §§ 24-72-201
et seq.). All plans and reports marked Confidential shall be treated by
University as confidential to the extent permitted under  §§ 24-72-204.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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|6.05 | Each
Party shall vigilantly protect the confidential information of the other  party according
to any and all mutual nondisclosure agreement between Avigen  and the Reagents of the
University of Colorado.
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 7.  DUE
DILIGENCE AND PERFORMANCE

|7.01 | Licensee
shall use commercially reasonable efforts to bring Licensed Products  and Licensed
Processes to market through a [ * ] program for exploitation  of the Patent Rights, to
develop manufacturing capabilities, to continue [  * ] marketing efforts, and to satisfy
the needs of such market with the  Licensed Products and Licensed Processes throughout
the life of this Agreement  through its internal efforts and/or through sublicensing or
other contractual  arrangement. Licensee acknowledges and agrees to the performance
milestones  defined in Appendix E provided however that specific dates for such
milestones  may be adjusted if required due to developments including scientific and
regulatory  developments beyond the reasonable control of Licensee. No changes to the
dates  of such milestones will be made without the consent, which will not be
unreasonably  denied, of University.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.02 | Licensee
agrees to use commercially reasonable efforts to develop a [ * ] sublicensing program to
effect commercialization of Licensed Products and Licensed  Processes in any Field of Use
or Territory that Licensee decides not to exploit  for itself.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.03 | University
may terminate this Agreement or convert this Agreement to a non-exclusive  Agreement if
Licensee fails to meet any of the due diligence or performance  requirements of this
Article 7, subject to the notification and time to cure  provisions of section 10.03(c).
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 8.  PATENTS,
COSTS, AND ENFORCEMENT

|8.01 | (a) | Licensee shall retain primary responsibility for all patent activities,
        including all costs, associated with the perfection and maintenance of
        Patent Rights originally transferred from University according to the
        Exclusive Option Agreement between the parties and including ongoing disclosures
        of data and know-how during the period through filing of the utility application(s). 
        Licensees patent counsel shall keep University advised as to the
        status of the Patent Rights by providing University, in a timely manner
        prior to their due date, with copies of all official documents and correspondence
        relating to the prosecution, maintenance, and validity of the Patent Rights. 
        Licensee shall consult with University in such prosecution and maintenance,
        and University shall reasonably assist Licensee in every proper way to
        obtain United States and foreign patents, in any and all countries. To
        that end University shall execute, verify and deliver such documents and
        perform such other acts as Licensee may reasonably request for use in
        applying for, obtaining, and sustaining such patents. Licensee shall diligently
        seek Universitys advice on all matters pertaining to the Patent
        Rights, shall diligently seek strong and broad claims under the Patent
        Rights, and shall not finally abandon prosecution of any patent application
        without first notifying University sixty (60) days prior to any bar date,
        of Licensees intention and reason therefore, and providing University
        with reasonable opportunity to assume responsibility for prosecution,
        maintenance and associated costs of such patents and patent applications. 
        If University pursues such patent protection, then from that time forward
        all such subject patent applications and any patents arising there from
        shall no longer be considered Patent Rights under this Agreement and Licensee
        shall forfeit all rights under this Agreement to such patent applications
        and any patents arising there from.
|---- | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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| | (b) | University
acknowledges that claims may need to be modified during patent prosecution in  order to
obtain the most favorable overall patent protection. Whenever possible,  Licensee shall
notify University in advance of its intention to modify, delete,  or abandon any claim of
the Patent Rights and shall seek Universitys input  into such decision.  Licensees
obligations under this § 8.01  shall include, without limitation, an obligation to
inform University in a timely  manner that Licensee will not pursue patents in any
foreign countries where  patent protection may be available, in order that University may
prosecute patents  in such countries if University so desires.  If University
pursues such  foreign patent protection, then from that time forward all such subject
patent  applications and any patents arising there from in such countries shall no longer
be considered Patent Rights under this Agreement and Licensee shall forfeit  all rights
under this Agreement to such patent applications and any patents  arising there from in
such countries.   University shall be responsible  for all costs associated
with those patent applications and patents it decides  to pursue and maintain.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.02 | If
Licensee breaches any of its obligations in section 8.01 above, [ * ].
|---- | -------------------------------------------------------------------------

|8.03 | University
and Licensee agree to inform the other party promptly in writing  of any suspected
infringement of the Patent Rights by a third party. Licensee  shall have, for a period of
one year from the date of any notice of infringement  of the Patent Rights, the first
right to institute suit against such third party.  During that period Licensee shall also
have the right to pursue alternate remedies  such as sublicensing. If Licensee institutes
such a suit, it shall bear all  costs of the litigation and shall be entitled to retain
the entire amount of  any recovery or settlement less earned royalties due to University,
provided  however  that Licensee may name University as a party plaintiff at Licensees
expense if required to maintain the suit. Thereafter, University and Licensee  shall each
have the right to institute an action for infringement of the Patent  Rights against such
third party in accordance with the following:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | If
both University and Licensee agree to institute suit jointly, the suit shall  be brought
in both their names, and the out-of-pocket costs thereof shall be  borne equally. Any
recovery that is designated as lost profit shall be divided  between the parties [ * ].
Any additional recovery or settlement shall  be [ * ]. University and Licensee shall
agree to the manner in which  they shall exercise control over such suit. Each party, at
its option, may be  represented by separate counsel of its own selection, the fees for
which shall  be paid for by the respective parties.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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| | (b) | In
the absence of an agreement to institute a suit jointly, University may,  but is not
obligated to, institute suit, and at its option, join Licensee as  a plaintiff. If
University decides to institute suit, it shall notify Licensee  in writing. Licensees
failure to notify University in writing within thirty  (30) days after the date of
receipt of Universitys notice, that it will  join in enforcing the Patent Rights
pursuant to the terms hereof, shall be deemed  a waiver of such rights. [ * ]
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | In
the absence of an agreement to institute a suit jointly, and if University  does not
notify Licensee of its intent to pursue legal action within ninety  (90) days, as
provided in (b) above, Licensee may institute suit and name University  as a party
plaintiff if required to maintain the suit. [ * ]
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d) | If
Licensee undertakes to defend the Patent Rights by litigation, Licensee may  defer from
its royalty payments to University with respect to the Patent Rights  subject to suit an
amount not exceeding [ * ] percent ([ * ]%)  of Licensees expenses and costs of
such action, including reasonable attorneys  fees, provided however, that such
deferral shall not exceed [ * ] percent  ([ * ]%) of the total royalty due to University
for each [  * ], and that such deferred payments shall be delivered to University upon
settlement of the litigation.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.04 | In
the event that a declaratory judgment action alleging invalidity or non-infringement  of
any of the Patent Rights shall be brought against Licensee or raised by way  of
counterclaim or affirmative defense in an infringement suit brought by Licensee  under
§ 8.03, pursuant to this Agreement and the provisions of Chapter  29 of Title 35,
U.S. Code or other statutes, Licensee may:
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | defend
the suit in its own name, at its own expense, and on its own behalf for  presumably valid
claims in the Patent Rights, in any such suit, ultimately to  enjoin infringement and to
collect for its use, damages, profits, and awards  of whatever nature recoverable for
such infringement consistent with § 8.03; and
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | settle
any claim or suit for declaratory judgment involving the Patent Rights,  except that
Licensee shall have no right to deny the validity of any patent,  patent claim, or patent
application included in the Patent Rights in any compromise  or settlement of any claim
or suit for declaratory judgment without the express  prior written consent of
University; provided however, that University shall  have a continuing right to intervene
in such actions described in (a) and (b).  Licensee shall take no action to compel
University either to initiate or to  join in any such declaratory judgment action. If
Licensee elects not to defend  against such declaratory judgment action, University, at
its option, may do  so at its own expense and shall be entitled to retain the entire
amount of any  recovery or settlement.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.05 | In
all cases, Licensee agrees to keep University reasonably apprised of the  status and
progress of any litigation.
|---- | -------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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ARTICLE 9.  WARRANTIES,  INDEMNIFICATIONS AND INSURANCE

|9.01 | UNIVERSITY
MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND, EITHER  EXPRESS OR IMPLIED,
AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT  TO USE, SALE, OR OTHER
DISPOSITION BY LICENSEE, SUBLICENSEE(S), OR THEIR VENDEES  OR OTHER TRANSFEREES OF
LICENSED PRODUCTS OR LICENSED PROCESSES INCORPORATING  OR MADE BY USE OF THE PATENT
RIGHTS. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES  OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, OR THAT THE USE OR SALE  OF SUCH PRODUCTS OR PROCESSES WILL NOT
INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK,  SERVICE MARK, OR OTHER RIGHTS.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.02 | Notwithstanding
anything in this Agreement to the contrary, nothing in this  Agreement shall be construed
as:
|---- | -------------------------------------------------------------------------------------------------------------

| | (a) | A
warranty or representation by University as to rights in know-how or the validity  or
scope of any of the Patent Rights;
| | --- | --------------------------------------------------------------------------------------------------------------------------

| | (b) | A
warranty or representation that the Patent Rights or anything made, used,  sold or
otherwise disposed of under the License will or will not infringe patents,  copyrights or
other rights of third parties; or
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | An
obligation to furnish any know-how or technology not agreed to in this Agreement,  to
bring or prosecute actions or suits against third parties for infringement  (except to
the extent described in §8.05) or to provide any services other  than those
specified in this Agreement.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.03 | Licensee
shall indemnify, defend, and hold harmless University, its regents,  employees, students,
officers, agents, affiliates, and representatives from  and against all liability,
demands, damages, losses, and expenses (including  attorney fees), for death, personal
injury, illness, property damage, noncompliance  with applicable laws and any other
claim, proceeding, demand, expense and liability  of any kind whatsoever in connection
with or arising out of:
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (a) | the
use by or on behalf of Licensee, its sublicensees, affiliates, directors,  officers,
employees, or third parties of any Patent Rights; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | the
design, manufacture, production, distribution, advertisement, consumption,  sale, lease,
sublicense or use of any Licensed Product(s), Licensed Process(es)  or materials by
Licensee, or other products or processes developed in connection  with or arising out of
the Patent Rights; or
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | any
right or obligation of Licensee under this Agreement, provided however that no part of
this section 9.03 shall remain in effect in the case of negligence  or willful
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

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| |  | misconduct  on
the part of University, its regents, employees, students,  officers, agents,  affiliates,
or representatives.
| |  | ----------------------------------------------------------------------------------------------------------------------------

|9.04 | Within
(30) thirty days of the Effective Date, Licensee shall provide to University
certificates of insurance for comprehensive general liability insurance, including
products liability insurance, from companies reasonably acceptable to University,  which
companies shall include St. Paul Fire & Marine Insurance Co. and General  Star
Indemnity Co. The certificates shall specify that This coverage is  primary to
other coverage in the event of a covered loss, and that University  and its
regents, trustees, directors, officers, employees, students, and agents  are additional
insureds. In addition, the certificates must evidence that the  policy carries a minimum
limit of one million dollars ($1,000,000) per specific  occurrence and a minimum limit of
five million dollars ($5,000,000) for aggregate  liability insurance; provided, however,
that not less than thirty (30) days  before the earlier date upon which Licensee or its
affiliates (i) initiates  testing of Licensed Products or Licensed Processes in a
clinical trial involving  human subjects for purposes of diagnosis or treatment, or (ii)
makes a First  Commercial Sale of any Licensed Product or Licensed Processes, such
coverage  shall be increased to a minimum limit of five million dollars ($5,000,000) per
specific occurrence and a minimum limit of ten million dollars ($10,000,000)  for
aggregate liability insurance.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 10.  DURATION
AND TERMINATION

|10.01 | The
term of the License shall extend to the date of expiration of the last to  expire of anypatents
embodying the Licensed Products or Licensed Processes,  including any renewals or
extensions thereof or until such time any patents  embodying the Licensed Products or
Licensed Processes are held invalid or unenforceable  by a court of competent
jurisdiction. The obligation to pay the royalty set  forth under Article 5 with respect
to each Licensed Product or Licensed Process  shall expire when the Licensed Product or
Licensed Process patent expires on  a country by country basis.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.02 | Licensee
may terminate this Agreement at any time on sixty (60) days written  notice to University
if Licensee:
|----- | ---------------------------------------------------------------------------------------------------------------

| | (a) | pays
all amounts due, including pro-rata minimum annual royalties, as well as  all
non-cancelable costs to University through the termination date;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | submits
a final report of the type described in Article 6;
| | --- | ----------------------------------------------------------

| | (c) | returns
any confidential materials provided to Licensee by University in connection  with this
Agreement; and
| | --- | -------------------------------------------------------------------------------------------------------------

| | (d) | suspends
its use and sales of the Licensed Product(s) and Licensed Process(es); provided  however,
that subject to making the payments required by Article  5 and the reports  required by
Article 6, Licensee may, for a period of ninety  (90) days after
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

| |  | the effective
date of  such termination, sell all Licensed Products  which may be in  inventory.
| |  | ------------------------------------------------------------------------------------------------

|10.03 | University
may terminate this Agreement in the event that:
|----- | ----------------------------------------------------------

| | (a) | Licensee
fails to pay University any amounts when due to University hereunder  and Licensee fails
to make such payment within thirty (30) days of receipt of  written notice of such
failure; or
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | Licensee
becomes insolvent, files a petition in bankruptcy, has such a petition  filed against it,
determines to file a petition in bankruptcy, or receives notice  of a third partys
intention to file an involuntary petition in bankruptcy;  or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | Licensee
is in material breach or default of this Agreement other than those  occurrences listed
in § 10.03 (a) or (b) and Licensee fails to cure the  breach or default or to
provide a mutually acceptable plan to cure the breach  or default within sixty (60) days
of receipt of written notice of the breach  or default. Licensees ability to cure
such breach shall be limited to  the first two breaches properly noticed under the terms
of this Agreement, regardless  of the nature of those breaches. Any subsequent breach
shall entitle University  to terminate this Agreement immediately.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ARTICLE 11.
MISCELLANEOUS

|11.01 | This
Agreement shall be binding upon and inure to the benefit of the respective  successors
and assigns of the parties hereto. However, Licensee may not assign  its rights in this
Agreement without prior written approval by University, such  approval not to be
unreasonably withheld or delayed.
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.02 | This
section intentionally omitted.
|----- | -----------------------------------

|11.03 | Notice
hereunder shall be deemed effective when given by registered mail or  overnight carrier
such as Federal Express, postage prepaid, and addressed to  the party to receive such
notice at the address given below, or such other address  as may hereafter be designated
by notice in writing.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|University:                           | Licensee:
|------------------------------------- | ---------
|Technology Transfer Office            |          
|University of Colorado, 588 SYS       |          
|Suite 390, 4001 Discovery Drive       |          
|Boulder, CO 80309-0588                |          
|License Administrator, Case # CU1068B |          

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CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

| | Electronic funds
transfer can be made to:Bank name: [ * ]ABA/Routing  #: [ * ] (Domestic wires only)
International bank code/SwiftID: [ * ] (Foreign  wires only)Payee/beneficiary: CU
Technology TransferAccount number: [ * ]Attention:  License Administrator, [ * ]Please
include sufficient information to identify  payment.Licensee is responsible for
electronic transfer expenses.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.04 | Licensee
agrees not to identify University in any promotional advertising, press  releases, sales
literature or other promotional materials to be disseminated  to the public or any
portion thereof without Universitys prior written  consent in each case, except
that Licensee may state that it has a license for  the Patent Rights from University.
Licensee further agrees not to use the name  of University or any University faculty
member, inventor, employee or student  or any trademark, service mark, trade name,
copyright or symbol of University,  without the prior written consent of the University,
entity or person whose  name is sought to be used.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.05 | Licensee
agrees to:
|----- | -------------------

| | (a) | cause
Licensed Products or the product of Licensed Processes sold under this  license to be
marked with the notice of the patent numbers or patent pending,  as may be appropriate;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b) | comply
with all laws and regulations of the United States and any other country  as appropriate
concerning or controlling the import or export of the Licensed  Products, data, software,
laboratory prototypes or other commodities under this  Agreement. University makes no
representation that a license or consent for  export will not be required by applicable
governmental agencies, or if required,  that it will be issued; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c) | comply
with all applicable statutes, regulations, and guidelines, including  applicable
governmental regulations, policies and guidelines in its use of any  University  supplied
materials (Materials). Licensee agrees  not to use the Materials for research
involving human subjects or clinical trials  in the United States without complying with
21 C.F.R. Part 50 and 45 C.F.R.  Part 46 (as those regulations may be amended from time
to time). Licensee agrees  not to use the Materials for research involving human subjects
or clinical trials  outside of the United States without notifying University in writing,
of such  research or trials and complying with the applicable regulations of the
appropriate  national control authorities. Written notification to University of research
involving human subjects or clinical
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

| |  | trials outside
of the United States shall  be given  no later than sixty (60) days prior to commencement
of such research  or trials.
| |  | -------------------------------------------------------------------------------------------------------------------------------------

|11.06 | In
the event of any dispute arising out of or relating to this Agreement, the  affected
party shall promptly notify the other party (Notice Date),  the parties shall
attempt in good faith to resolve the matter. Any disputes  not so resolved shall be
referred to senior executives of the parties, who shall  meet at a mutually acceptable
time and location within thirty (30) days of the  Notice Date and shall attempt to
negotiate a settlement. Any obligation or action  due under any section of this Agreement
will be suspended during this period  of good faith negotiations.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.07 | The
terms and provisions contained in this Agreement constitute the entire Agreement  between
the parties and shall supersede all previous communications, representations,  agreements
or understandings, either oral or written, between the parties hereto  with respect to
the subject matter hereof, provided, however, that the  mutual nondisclosure agreement
between the parties dated January 6, 2003 shall  remain in full force and effect. No
agreement or understanding varying or extending  this Agreement will be binding upon
either party hereto, unless in writing which  specifically refers to this Agreement,
signed by duly authorized officers or  representatives of the respective parties, and the
provisions of this Agreement  not specifically amended thereby shall remain in full force
and effect according  to their terms.
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.08 | The
provisions and clauses of this Agreement are severable, and in the event  that any
provision or clause is determined to be invalid or unenforceable under  any controlling
body of the law, such invalidity or unenforceability will not  in any way affect the
validity or enforceability of the remaining provisions  and clauses hereof.
|----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.09 | This
Agreement does not establish a joint venture, agency or partnership between  the parties,
nor create an employer  employee relationship.
|----- | ----------------------------------------------------------------------------------------------------------------------------------------------

|11.10 | The
parties agree that nothing in this Agreement is intended or shall be construed  as a
waiver, either express or implied, of any of the immunities, rights, benefits,  defenses
or protections provided to University under governmental or sovereign  immunity laws from
time to time applicable to University, including, without  limitation, the Colorado
Governmental Immunity Act (C.R.S. §§ 24-10-101,  et seq.) and the Eleventh
Amendment to the United States Constitution.
|----- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.11 | If
a partys performance required under this Agreement is rendered impossible  or
unfeasible due to any catastrophes or other major events beyond its reasonable  control,
including, without limitation, the following, the parties are excused  from performance:
war, riot, and insurrection; laws, proclamations, edicts,  ordinances or regulations;
strikes, lockouts or other serious labor disputes;  and floods, fires, explosions,
earthquakes or other natural disasters. When  such events abate, the parties respective
obligations under this Agreement  shall resume.
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

|11.12 | The
provisions of Articles 1 and 8, and §§ 6.01, 6.02, 9.01-9.03,  11.02, 11.04,
11.06-11.08, and 11.10, and any other provision of this Agreement  that by its nature is
intended to survive, shall survive any termination or  expiration of this Agreement.
*****
|----- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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[*] = CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

IN
WITNESS WHEREOF the parties  hereto have caused this Agreement, which is  effective on
the date of the last to sign  below, to be executed in duplicate by  their respective
duly authorized officers.

|**University:**                                                                                                                        |                       | **Licensee:**                                                                                                                                 
|-------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------
|****                                                                                                                                   |                       | ****                                                                                                                                          
|**By:**                                                                                                                                | /s/ David
      Allen |                                                                                                                                               
|**Name:**                                                                                                                              | David
      Allen     |                                                                                                                                               
|**Title:**                                                                                                                             | Assoc
      VP        |                                                                                                                                               
|**Date:**                                                                                                                              | 21 Nov
      2003     |                                                                                                                                               
|Technology Transfer Office 
      University of Colorado, 588 SYS 
      Suite 390, 4001 Discovery Drive 
      Boulder, CO 80309-0588 |                       | Avigen
      Inc.1301 Harbor Bay
      ParkwayAlameda, CA 94502APPROVEDAvigen, Inc. - Business Dvlp.Date: Nov 21, 2003
      By: /s/ Amy Percy

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

# APPENDIX A

# PATENT RIGHTS

[ * ]

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

# APPENDIX B

# FIELDS OF
USE and TERRITORY

Fields of Use:
ALL

Territory:
WORLDWIDE

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

# APPENDIX C

# ROYALTIES

In
accordance with  Articles 5 and 6, Licensee shall pay the following royalties to
University:

License
issue fee: [ * ]U.S. dollars ($[ * ]), plus a warrant for fifteen
thousand  (15,000) shares of Licensee common stock, $0.01 par value, with an exercise
price of the closing price for such stock as of the close of market on the  Effective
Date of this Agreement. Such warrant shall be exercisable at any time  on or after the
first anniversary of the Effective Date and shall have an  expiration date on the tenth
anniversary of the Effective Date.

Earned
royalty: Base  rate of [ * ] percent ([ * ]%) of Net Sales, with
adjustments  upward for increasing sales and downward for third-party royalties according
to  the following [ * ]

Milestone
royalties as follows:

[
* ]

Non-royalty
sublicense payments:

In the event
Licensee  sublicenses Patent Rights to a third party under this agreement, Licensee shall
pay University [ * ] percent ([ * ]%) of any cash receipts from
sublicensee for any event for which a milestone royalty under this Appendix C is  not
already provided for in this Agreement. For the purposes of calculating  amounts due to
University under this Agreement, issuance of licensees  stock for cash shall not be
considered a cash receipt from sublicensee,  provided however, that any premiums
received on equity investments shall  be considered to be cash receipts. Any payment
reimbursing Licensee for work  performed prior to the sublicense shall not be considered
a milestone payment.

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

APPENDIX D


**ROYALTY REPORT**

|Licensee:
      
      Inventor: 
      
      Period Covered: From: /                 /
      
      Prepared By: 
      
      Approved By: |  | Case
      No.: 
      Patent No: 
      
      Through: /                              /
      Date: 
      Date:
|--------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------

If
  license covers several major product lines, please prepare a separate report
  for each line. Then combine all product lines into a summary report.

|Report
      Type: | ____
      Single Product Line Report: 
      ____ Multiproduct Summary Report. Page 1 of _____Pages
      ____ Product Line Detail. Line: __________ Trademark: __________ Pages:
      _____
|------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Country       | **Gross
Sales** | ***
Less:
Allowances** | **Net
Sales** | **Royalty
Rate** | Period
Royalty Amount
|------------- | --------------- | ---------------------- | ------------- | ---------------- | ---------------------
|**This
Year** | **Last
Year**  
|**U.S.A.**    |                 |                        |               |                  |                      
|**Canada**    |                 |                        |               |                  |                      
|**Europe**    |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|**Japan**     |                 |                        |               |                  |                      
|Other:        |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|              |                 |                        |               |                  |                      
|**TOTAL:**    |                 |                        |               |                  |                      

Sublicense Fees this quarter: $________
  (attach page showing names, addresses, and telephone numbers; and amount of
  fees received; territory; field of use)

Total Royalty: $ _____________

The following royalty forecast is
  non binding and for University internal planning purposes only:

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  INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
  AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
  RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.**

---

Royalty
Forecast Under This Agreement:

Next
Quarter:_________ Q2:__________ Q3: ________ Q4: _________

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AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---

# APPENDIX E

# PERFORMANCE  MILESTONES

|                     | 
|-------------------- | 
|Phase I initiation   | 
|Phase III initiation | 
|BLA submission       | 
|Market launch        | 

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CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2
OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

---