Document:

Prepared by R.R. Donnelley Financial -- Am. No. 1 to License and Purchase Agmt.

  
 EXHIBIT 10.20 
  
 CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST. OMISSIONS ARE DESIGNATED AS [***]. A
COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. 
  
 AMENDMENT
NUMBER ONE TO THE 
 OEM HARDWARE (WITH SOFTWARE) LICENSE AND PURCHASE AGREEMENT 
 BETWEEN SonicWALL, INC. and CISCO SYSTEMS, INC. 
  
 This Amendment Number One to the OEM
Hardware (with Software) License and Purchase Agreement between Cisco Systems, Inc. and SonicWALL, Inc., is entered into on this day of June 25 , 2002 by and between SonicWALL, a California corporation, having principal offices at 1160 Bordeaux
Drive, Sunnyvale, California 94089-1209 and Cisco Systems, Inc., a California corporation with a place of business at 170 West Tasman Drive, San Jose, California 95134-1706 (“Cisco”). 
  
 WHEREAS, on May 28, 2001 Cisco and SonicWALL entered into a OEM Hardware (with Software) License and Purchase Agreement
(“Agreement”); and 
  
 WHEREAS, the parties desire to establish a new pricing for the SCA2; and

  
 NOW THEREFORE, in consideration of the promises and covenants contained in the Agreement, the parties hereby
amend the Agreement as follows: 
  
 1.    Cisco and SonicWALL agree to amend the Agreement to add
a new product known as the SCA2: 
  

	 	•
	 
	Exhibit A-1—Products and Pricing 
 

  

	 	•
	 
	Exhibit B-1—Product Specifications 
 

  
 2.    The parties agree that: 
  

	 	•
	 
	Every reference in the Agreement to Exhibit A shall include a reference to Exhibit A-1 and every reference to Exhibit B in the Agreement shall include a
reference to Exhibit B-1; and 
 

  

	 	•
	 
	Terms capitalized shall have the meaning assigned to them in the Agreement unless specifically defined herein 
 

  
 3.    Except for terms amended herein, all of the provisions of the Agreement shall remain unchanged and in force.
Terms capitalized shall have the meaning assigned to them in the Agreement unless specifically defined herein. 

  
 IN WITNESS WHEREOF, the parties have executed this Amendment Number One by
persons duly authorized as of the date and year first written above. 
  
 
	 SonicWALL, Inc.
 
	  	  	 	 Cisco Systems, Inc.
 

	 
	 By:
 	 	 /S/    STEPHEN C. MACRI
 	  	  	 	 By:
 	 	 /S/    RANDY POND 
 
	  	 	 
	  	  	 	  	 	 

	 
	 Name:
 	 	 Stephen C. Macri
 	  	  	 	 Name:
 	 	 Randy Pond
 
	  	 	 
	  	  	 	  	 	 

	 
	 Title:
 	 	 V.P. OEM Sales 
 	  	  	 	 Title:
 	 	 Sr. V.P., WW Mfg. Ops. 
 
	  	 	 
	  	  	 	  	 	 

	 
	 Date:
 	 	 6/25/02
 	  	  	 	 Date:
 	 	 6/25/02
 
	  	 	 
	  	  	 	  	 	 

 

  
 EXHIBIT A-1 
 For 
 SCA2 Product 
  
 PRODUCTS; PRICES 
  
 PRODUCTS; PRICES 
  
 1.    Non-Recurring Engineering Cost (NRE): 
  
 NRE Payments. Cisco shall pay the NRE charges at the times and in the amounts as follows: [***] 
  
 2.    Products and Prices. 
  
 SCA2 Unit cost: [***] 
  
 
 
 [***] Certain information on this page has been omitted and filed
separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

  
 EXHIBIT B-1 
 For 
 SCA2 Product 
  
 Product Specifications 
  
 Regulation Requirements: 
  
 SonicWall product adheres to the following requirements. 
  
 Safety Marks to be applied to product relating to product safety. 
  
 UL (1) or CSA for USA and Canada with factory follow-up inspections. 
  
 TUV/GS (1) with factory follow-up inspections. 
  
 CE marking. 
  
 Safety
Standards to be applied. 
  
 IEC 60950:1999-04, Safety of information technology equipment 

 
 EN 60950:2000 Safety of information technology equipment 
  
 UL CAN/CSA-C22.2 No. 60950-00 
  
 Safety Report Deliverables 
  
 UL or CSA test report. 
  
 TUV License for GS Mark 
  
 CB Scheme Report to IEC 60950 3rd Edition and all national deviations.

  
 Declaration of Conformity to EN 60950:2000 
  
 TS001-1997 with AS/NZS3260; incorporating Amendment 1, 2, 3 and 4. 
  
 Safety Marks to be applied to product relating to product safety. 
  
 UL (1) or CSA for USA and Canada with factory follow-up inspections. 
  
 TUV/GS (1) with factory follow-up inspections. 

  
 CE marking. 
  
 Safety Standards to be applied. 
  
 IEC 60950:1999-04, Safety
of information technology equipment 
  
 EN 60950: 2000 Safety of information technology equipment 

 
 UL CAN/CSA-C22.2 No. 60950-00 
  
 Safety Report Deliverables 
  
 UL or CSA test report. 
  
 TUV License for GS Mark 
  
 CB Scheme Report to IEC 60950 3rd Edition and all national deviations. 
  
 Declaration of
Conformity to EN 60950:2000 
  
 TS001-1997 with AS/NZS3260; incorporating Amendment 1, 2, 3 and 4. 

 
 EMC Marks to applied: 
 For commercial and other
non-domestic 
 FCC class A, CE, VCCI class A, ICES-003 class A, C-Tick (Aus/NZ) 
  
 EMC Standards applied 
 EMC Emissions 
 47CFR, part 15, subpart B (FCC-USA) Class A 
 ICES-003 (IC-Canada) ; 1998 Class A 
 VCCI
(VCCI-Japan) ; V-3/2001.4 
 EN61000-3-2 ; 2000 
 EN61000-3-3 ; 1995 
 CISPR 22; 1997 
 EN55022 ; 1998 Class A (CE, European Union) 
 AS/NZS 3548 ;1995 Class A or CISPR 22 :2002 
 CNS134328 (BSMI) 
  
 EMC Immunity 
 EN55024 ; 1998 (CE, European Union) 
 CISPR 24; 1997 (International
standard for many countries) 
 EN 61000-4-2, 4 kV Contact, 8 kV Air discharge 

 EN 61000-4-3, 3 V/m, 80 to 1000 MHz, 80% AM 
 EN 61000-4-4, 1 kV Mains, 0.5 kV data and control 
 EN 61000-4-5, 1 kV L to L, 2 kV L to G 
 EN 61000-4-6, 3 V, 0.15 to 80 MHz, 80% AM 
 EN 61000-4-8, 1 A/m, 50 Hz

 EN 61000-4-11, 0.5 p >95%, 25 p 30 %, 250 p >95% 

 SSL-R (SCA) and SSL-RX (SCA2) 
 Standards 

IEEE 802.3 10Base-T Ethernet 
 IEEE 802.3u 100Base-TX Fast Ethernet 
 Data Transfer Rates 
 Ethernet 10Mbps (half duplex) 
 20Mbps (full duplex)

 Fast Ethernet 100Mbps (half duplex) 
 200Mbps (full duplex) 
 Processors 
 SSL-R (SCA) CPU: PPC8240 250MHz 
 SSL-RX (SCA2 CPU: IBM750CXE 600MHz 
 SSL-R (SCA) Crypto: Rainbow FastMap 
 SSL-RX (SCA2)
Crypto: Broadcom 5821 
 Configuration Software OS Support 
 Windows NT 4.0; Windows 2K; Red
Hat Linux 6.2, 7.0 
 Dimensions 
 Length: 10. 5” Height: 1U (1.75”) Width: 19”

 Weight (Populated w/PCI insert) 
 6 lbs. (2.7 kg) 
 Port Description 
 Network Ports: Two 10/100Base TX 
 Console Port: 1 DB9
Serial Port 
 Reset Switch: Push to reset hardware. Configuration data maintained. 
 Environmental
Operating Range 
 Temperature: 0° to 40° C (32° 104° F) 
 Humidity: 10 to 85%
non-condensing 
 Altitude: Up to 3,048 meters (10,000 ft) 
 Power Requirements 

Operating Voltage: 100-240 V 50-60Hz; 
 Consumption: SSL-R (SCA)—20W; SSLR-X (SCA2) – 30W 

Power Supply: Internal redundant power supplies 
 Network Cabling 
 Cable Type: UTP Category 5 (100m) 
 Connector Type: RJ-45 
 Memory 
 SSL-R (SCA): 64 MB RAM; 16 MB Flash ROM 
 SSL-RX (SCA2): 256 MB RAM; 32 MB
Flash ROM 
 Protocols 
 CSMA/CD Ethernet 
 Public Key Cryptography Algorithms 
 RSA—512, 1024, 2048 bit 
 Encryption Algorithms 
 3DES, DES, ARC4, ARC2 
 Hash Algorithms 

SHA1, MD5<PAGE>

Confidential Treatment Requested

                                                                   EXHIBIT 10.54

                              BNP AGREEMENT (1995)

entered into as of November 17, 1995 by and between

SCIOS NOVA INC.
2450 Bayshore Parkway
Mountain View, CA 94043/USA

(hereinafter referred to as "SCIOS NOVA")

and

BIOCHEMIE GESELLSCHAFT M.B.H.
A-6250 Kundl/Austria
(hereinafter referred to as "BC")

WHEREAS, SCIOS NOVA is seeking to start Phase III clinical trials and obtain
regulatory approval of its NATRECOR(R) brand brain natriuretic peptide ("BNP")
for the treatment of acute congestive heart failure and is seeking a long-term
source of supply of BNP made by recombinant manufacture; and

WHEREAS, BC is in the business of the recombinant manufacture of peptides and
proteins and wishes to become SCIOS NOVA's supplier; and

WHEREAS, SCIOS NOVA has developed a 10 liter recombinant manufacturing process
for BNP and BC is willing to scale-up SCIOS NOVA's 10 liter manufacturing
process for BNP to the 150 liter scale so that the parties' can evaluate BC's
capability to become SCIOS NOVA's long-term supplier of BNP in bulk solution in
commercial quantities; and

WHEREAS, SCIOS NOVA wishes to ensure BC is willing and has the capacity to meet
SCIOS NOVA's requirements for bulk BNP during the term of this AGREEMENT, and BC
is willing to provide such assurance; and

WHEREAS, BC and SCIOS NOVA wish to set forth the principal terms and conditions
on which they will evaluate BC's capability to scale up the production of BNP in
BULK SOLUTION and on which the parties may thereafter agree to continue to work
together; and

WHEREAS, SCIOS NOVA is willing to purchase BULK SOLUTION from BC on a long-term
basis and BC is willing to sell BULK SOLUTION to SCIOS NOVA on a long-term
basis;

THE PARTTES HERETO AGREE AS FOLLOWS:

1.     Definitions

       Whenever written in capital letters throughout this Agreement the
following terms shall have the following meaning:

       1.1    BC DELIVERABLES shall mean the following items to be delivered by
              BC to SCIOS NOVA after Development Phase I:

              (a)    a written report of BC's complete results in Development
                     Phase I;

              (b)    samples of BULK SOLUTION that has been manufactured by BC
                     at the 150 liter fermentation volume;

                                       1

<PAGE>

                     (c)    results of the tests described in Annex 4;

                     (d)    copies of the batch records for all of the
                            production runs performed by BC in Development Phase
                            I;

                     (e)    BC's statement of its yield from fermentation at the
                            150 liter scale, including supporting data,

                     (f)    BC's estimate of the quantity of BNP that will be
                            contained in the BULK SOLUTION to be produced in
                            Development Phase II; and

                     (g)    BC's proposed revision of the TARGET PRICE.

              1.2    BC KNOWHOW shall mean all know how, technology and trade
                     secrets developed by BC during the course of this Agreement
                     that relate or are useful to the manufacture of BULK
                     SOLUTION or BNP that are not included in BC PATENT RIGHTS.

              1.3    BC PATENT RIGHTS shall mean all patent applications and
                     valid, issued and unexpired patents which are now or
                     hereafter owned or controlled by BC, including any
                     substitutions, extensions, reissues, renewals, divisions,
                     continuations, or continuations-in-part therefor or
                     thereof, and all foreign counterparts of the foregoing,
                     which cover the development or manufacture of BULK SOLUTION
                     or BNP.

              1.4    BNP means brain natriuretic peptide produced by recombinant
                     DNA expression in E. coli which has the amino acid sequence
                     and meets the BNP SPECIFICATIONS set forth in Annex 1.

              1.5    BNP COMPOUND shall mean BNP or any derivative thereof
                     containing [*****]

              1.6    BNP SPECIFICATIONS shall mean the specifications set forth
                     in Annex 1. Annex 1 may be updated by mutual agreement of
                     the parties at the end of Development Phase I as provided
                     in Article 4.1 and at the end of Development Phase II as
                     provided in Article 5.3. All revisions shall take into
                     account the then current requirements of regulatory
                     authorities with regard to the acceptable characteristics
                     for proteins manufactured by recombinant means.

              1.7    BULK SOLUTION means frozen bulk solution of BNP that meets
                     the SPECIFICATIONS FOR BULK SOLUTION.

              1.8    COMMERCIAL PRICE shall mean the price per gram of BNP in
                     BULK SOLUTION that the parties establish in Article 5.5
                     will be charged by BC for deliveries under Article 6 during
                     the Commercial Phase, such price to be valid until December
                     31, 2002.

              1.9    COMPREHENSIVE AGREEMENT means any superseding agreement
                     that the parties may subsequently elect to create under
                     Article 6.10.

              1.10   CONFIDENTIAL INFORMATION shall have the definition that is
                     set forth in the Confidential Disclosure Agreement between
                     the parties dated December 30, 1994.

              1.11   DEVELOPMENT PHASE I means the development work to be
                     conducted by BC under Article 4.

              1.12   DEVELOPMENT PHASE II means the development work to be
                     conducted by BC under

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                        2

<PAGE>

              Article 5.

       1.13   NATRECOR is the United States trademark under which SCIOS NOVA
              intends to market its BNP product. As used in this Agreement,
              NATRECOR shall mean a synonym for BNP in finished form to be sold
              to the trade, irrespective of whether such trademark shall be used
              or not.

       1.14   REVISED TARGET PRICE shall mean the revision of the TARGET PRICE
              based on BC's results in DEVELOPMENT PHASE I that is established
              by the parties according to Article 4.1.

       1.15   SCIOS NOVA KNOWHOW shall mean the 10 liter PROCESS and other
              know-how, technology and trade secrets that SCIOS NOVA may
              disclose to BC related or useful to the manufacture of BULK
              SOLUTION or BNP that are not included in the SCIOS NOVA PATENT
              RIGHTS.

       1.16   SCIOS NOVA PATENT RIGHTS shall mean all patent applications and
              valid, issued and unexpired patents which are now or hereafter
              owned or controlled by SCIOS NOVA, including any substitutions,
              extensions, reissues, renewals, divisions, continuations, or
              continuations-in-part therefor or thereof, and all foreign
              counterparts of the foregoing, which cover the development or
              manufacture of BULK SOLUTION or BNP or a derivative thereof.

       1.17   SPECIFICATIONS FOR BULK SOLUTION shall mean the specifications in
              Annex 2. Annex 2 may be updated by mutual agreement of the parties
              at the end of DEVELOPMENT PHASE I as provided in Article 4.1 and
              at the end of DEVELOPMENT PHASE II as provided in Article 5.3. All
              revisions shall take into account the then current requirements of
              regulatory authorities with regard to the acceptable
              characteristics for proteins manufactured by recombinant means.

       1.18   TARGET PRICE means a price per gram of BNP delivered to SCIOS NOVA
              in BULK SOLUTION of [*****] calculated upon BC's knowledge before
              DEVELOPMENT PHASE I for the supply of BULK SOLUTION in commercial
              quantities.

       1.19   10 liter PROCESS means SCIOS NOVA's current process to manufacture
              BULK SOLUTION at a 10 liter fermentation volume including:

              [*****]

              details being listed in Annex 3.

       1.20   150 liter PROCESS means a manufacturing process to produce BULK
              SOLUTION at a 150 liter fermentation volume to be developed by BC
              based on the 10 liter PROCESS.

       1.21   3,000 liter PROCESS means a manufacturing process for BULK
              SOLUTION at a 3,000 liter fermentation volume to be developed by
              BC based on the 150 liter PROCESS.

2.     Supply of information from SCIOS NOVA to BC, starting criteria

       2.1    Delivery. Under a separate letter agreement, SCIOS NOVA has
              provided BC with the 10 liter PROCESS so that BC could begin its
              work on approximately November 1, 1995.

       2.2    Response. Within 2 weeks of BC's receipt of the 10 liter PROCESS
              under Article 2.1, BC

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                        3

<PAGE>

              shall advise SCIOS NOVA whether BC regards the information
              provided to be adequate for BC's activities as per Article 3. In
              the event BC shall regard the information provided by SCIOS NOVA
              to be inadequate, SCIOS NOVA shall, to the extent SCIOS NOVA has
              previously generated such information, provide upon BC's request
              within 14 days such additional documents and research/development
              results that SCIOS NOVA may possess.

              Within 2 weeks of BC's receipt of the additional information, BC
              shall advise SCIOS NOVA whether BC regards the additional
              information so obtained to be adequate.

              In the event BC shall have concluded that it does not have
              adequate information, to perform DEVELOPMENT PHASE I for the price
              indicated, BC shall so advise SCIOS NOVA and the parties shall
              endeavor to reach an agreement on terms for proceeding. If the
              parties are unable to reach such a revised agreement by December
              1, 1995, then this Agreement shall be automatically terminated
              with immediate effect (except Articles 11 and 12 which shall
              continue in effect) and no party shall have a right for
              compensation. Upon any termination under this Article, BC shall
              return to SCIOS NOVA and cease to use all information and
              materials provided by SCIOS NOVA as part of the 10 liter PROCESS.

       2.3    Support. Upon BC's request, SCIOS NOVA shall, without charge to
              BC, provide BC with a maximum of two experts from SCIOS NOVA for a
              period of up to three weeks each to support BC's development
              activities in DEVELOPMENT PHASE I.

       2.4    Essential Dates. The dates as per Articles 3, 4 and 5 shall depend
              on SCIOS NOVA having provided the 10 liter PROCESS and additional
              information under Article 2.2 so that BC can provide the positive
              advice from BC to SCIOS NOVA by November 15. In the event delays
              by SCIOS NOVA cause such advice to be given later, the dates as
              mentioned in Articles 3, 4 and 5 shall be postponed by the period
              of such delay.

       2.5    Addition of Lyophilization. During DEVELOPMENT PHASE I the parties
              shall decide whether BC shall also perform the lyophilization of
              the BULK SOLUTION and ship BNP in a solid form. If the parties
              determine that BC should perform such work, appropriate amendments
              will be made by mutual agreement, including revisions of the
              specifications, the references to the specifications, and setting
              an additional charge for BC to perform the lyophilization.

3.     DEVELOPMENT PHASE I (150 liter PROCESS)

       3.1    General. In DEVELOPMENT PHASE I, BC shall use its best efforts and
              provide the necessary resources to scale up the 10 liter PROCESS
              to produce BULK SOLUTION by recombinant manufacturing methods at
              the 150 liter fermentation volume so that the parties may fully
              assess the feasibility of larger scale production. The goal of the
              parties is to assess whether BC can produce BULK SOLUTION that
              meets the SPECIFICATIONS FOR BULK SOLUTION at a price equal to or
              less than the TARGET PRICE. DEVELOPMENT PHASE I shall begin
              [*****]. SCIOS NOVA may, at its expense, have representatives
              visit BC's facility and view BC's fermentation and product
              recovery activities during DEVELOPMENT PHASE I.

       3.2    DELIVERABLES. During DEVELOPMENT PHASE I BC shall develop the 150
              liter PROCESS and define the yields and quantity of BNP in BULK
              SOLUTION that BC is able to produce. On or about January 15, 1996,
              BC shall provide to SCIOS NOVA a written interim report of BC's
              activities and not later than March 1, 1996, BC shall deliver the
              BC

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                        4

<PAGE>

              DELIVERABLES to SCIOS NOVA.

       3.3    Charge. BC's work in DEVELOPMENT PHASE I is outlined in Annex 5.
              SCIOS NOVA will be charged for BC's work in DEVELOPMENT PHASE I
              based on [*****]. Regardless of the specific results achieved in
              DEVELOPMENT PHASE I, SCIOS NOVA is obligated to [*****]; provided,
              however, the aggregate charge to SCIOS NOVA for all of BC's work
              under Articles 2 and 3 shall, in no event, exceed [*****] without
              SCIOS NOVA's prior written consent.

       3.4    Payment. In February 1996, BC shall invoice SCIOS NOVA for all of
              BC's charges for DEVELOPMENT PHASE I, calculated per Article 3.3,
              and such amount shall be paid by SCIOS NOVA within fourteen days
              from the later of (a) SCIOS NOVA's receipt of the invoice or (b)
              SCIOS NOVA's receipt of all of the BC DELIVERABLES.

4.     Analysis of DEVELOPMENT PHASE I

       4.1    Analysis and Discussion. Promptly following receipt of the BC
              DELIVERABLES, SCIOS NOVA shall determine whether it believes the
              samples and data indicate that BC will be able to meet the
              SPECIFICATIONS FOR BULK SOLUTION, and promptly advise BC of the
              results of its analysis. Not later than 30 days after receipt of
              the BC DELIVERABLES, SCIOS NOVA shall notify BC whether SCIOS NOVA
              wishes BC to conduct DEVELOPMENT PHASE II. If either party does
              not wish to conduct DEVELOPMENT PHASE II, this Agreement shall be
              discontinued per Article 10.2. If SCIOS NOVA notifies BC that it
              wishes to have BC perform DEVELOPMENT PHASE II, then BC and SCIOS
              NOVA shall meet to establish: (a) the Standard Operating Procedure
              to be used for the 3,000 liter PROCESS in DEVELOPMENT PHASE II and
              thereafter; (b) the BNP SPECIFICATIONS; (c) the SPECIFICATIONS FOR
              BULK SOLUTION; and (d) the REVISED TARGET PRICE that will be
              charged to SCIOS NOVA per gram of BNP in BULK SOLUTION that is
              produced by BC in commercial runs after DEVELOPMENT PHASE II. Upon
              mutual agreement of the parties, their decisions concerning these
              four matters shall be memorialized in a written addendum to be
              attached to and become a part of this Agreement.

       4.2    Advance Work. In order to avoid delay in commencing DEVELOPMENT
              PHASE II, BC agrees to perform the programming of its process
              control computers and complete the installation of additional
              equipment necessary for the manufacture of BULK SOLUTION by the
              end of March 1996. SCIOS NOVA will reimburse BC at the rate
              specified in Annex 5 for [*****] up to a maximum of [*****] within
              30 days after invoice from BC following any termination under
              Article 4.1 or, if SCIOS NOVA subsequently elects not to have BC
              perform DEVELOPMENT PHASE II or the parties are unable to agree on
              the four items for a long-term supply relationship per Article
              4.1.

       4.3    Use of 150 liter PROCESS. If the parties are unable to agree on
              the four matters in Article 4.1 or SCIOS NOVA shall otherwise
              elect not to proceed to DEVELOPMENT PHASE II then, in exchange for
              having funded the development of such process, BC does hereby
              grant to SCIOS NOVA a royalty-free, exclusive license to use, or
              allow others to use, all or any part of the 150 liter PROCESS
              solely for the manufacture of BNP. Such license shall be
              irrevocable if SCIOS NOVA has made the payment specified in
              Article 3.4 and in Article 10.2, if any is due, but may be revoked
              by BC by written notice to SCIOS NOVA if such payments are not
              made. BC shall have the right to use all or any part of the 150
              liter

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                        5

<PAGE>

              PROCESS solely for any use other than the manufacture of BNP.

5.     DEVELOPMENT PHASE II (3,000 liter PROCESS)

       5.1    Timing. If the parties agree on the four items per Article 4.1,
              then DEVELOPMENT PHASE II shall be conducted by BC according to
              the terms of this Article 5. It is the parties' mutual goal,
              assuming adequate results in DEVELOPMENT PHASE I, to begin
              DEVELOPMENT PHASE II not later than [*****]. Once DEVELOPMENT
              PHASE II is commenced, BC shall use its best efforts to complete
              the work described below as quickly as reasonable.

       5.2    Efforts. During DEVELOPMENT PHASE II, BC shall use its best
              efforts and provide the necessary resources to perform the
              following to manufacture BULK SOLUTION:

              (a)    complete the modification of its manufacturing plant by
                     investment in specific equipment necessary to manufacture
                     BULK SOLUTION at the 3,000 liter scale;

              (b)    develop the 3,000 liter PROCESS;

              (c)    manufacture, according to the Standard Operating Procedure
                     written by BC and approved by SCIOS NOVA under Article 4.1,
                     at least three batches using the 3,000 liter PROCESS;

              (d)    deliver to SCIOS NOVA the samples for DEVELOPMENT PHASE II
                     and results of tests described in Annex 4;

              (e)    deliver to SCIOS NOVA all BULK SOLUTION (except samples for
                     testing at BC) manufactured in DEVELOPMENT PHASE II,
                     together with a copy of the complete batch records for each
                     of the 3 batches to be produced;

              (f)    advise SCIOS NOVA of BC's yield from fermentation at the
                     3000 liter scale for each of the 3 batches, including
                     supporting data;

              (g)    advise SCIOS NOVA of the price per gram of BNP that BC
                     proposes to charge for production of BULK SOLUTION at
                     commercial scale under Article 6 based on results in
                     DEVELOPMENT PHASE II.

       5.3    Assessment of DEVELOPMENT PHASE II and Payment. SCIOS NOVA shall
              promptly assay the BULK SOLUTION produced in DEVELOPMENT PHASE II
              for conformity with the SPECIFICATIONS FOR BULK SOLUTION, (as
              established by the parties under Article 4.1) and provide the
              results of its analysis to BC. If three batch runs produce BULK
              SOLUTION that satisfies the SPECIFICATIONS FOR BULK SOLUTION and
              have a yield of at least 125 grams each, then SCIOS NOVA shall
              make one of the following payments to BC based on when SCIOS NOVA
              received the final shipment of the three batches from DEVELOPMENT
              PHASE II:

              [*****]

              Recognizing that delivery of BULK SOLUTION from DEVELOPMENT PHASE
              II and batch records to SCIOS NOVA after [*****] will prevent
              SCIOS NOVA from achieving its development timelines, the parties
              agree that SCIOS NOVA shall have the option whether to accept and
              pay [*****] for any batch that is delivered after [*****]. In
              addition, if the COMMERCIAL PRICE proposed by BC under Article 5.5
              is more than

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       6

<PAGE>

              the REVISED TARGET PRICE, then the amount otherwise payable by
              SCIOS NOVA under this Article 5.3 shall be [*****]; provided,
              however, that such reduction shall not apply if the COMMERCIAL
              PRICE is higher than the REVISED TARGET PRICE due to the fact that
              the average fermentation yield of the 3 batches (each yielding at
              least 125 grams) at the 3000 liter scale (as provided in Article
              5.2(f)) is less than the fermentation yield from the 150 liter
              scale provided by BC under Article 1.1(e).

       5.4    Third Party Testing. If SCIOS NOVA rejects the material from any
              of the three batches as not meeting the SPECIFICATIONS FOR BULK
              SOLUTION, and if the first results of BC conflict, a sample of
              such shipment shall be submitted for testing to a qualified
              independent laboratory mutually agreed on by the parties, and such
              test results shall control. Fees and expenses of the laboratory
              will be paid by the party against whom the finding is made.

       5.5    Setting Commercial Price. Within 60 days of delivery of the final
              DEVELOPMENT PHASE II shipment to SCIOS NOVA in accordance with
              Article 5.3, the parties shall endeavor to establish by mutual
              agreement (a) the COMMERCIAL PRICE to be charged for BULK SOLUTION
              produced under Article 6 by BC for SCIOS NOVA and (b) any revision
              to the SPECIFICATIONS FOR BULK SOLUTION and to the Standard
              Operating Procedure for the 3,000 liter PROCESS. The agreement of
              the parties concerning these matters shall be memorialized in a
              written addendum to be attached to and become part of this
              Agreement. The agreement on these matters shall thereafter apply
              between the parties for the duration of this Agreement or until
              revised by mutual agreement.

       5.6    Regulatory Documents. If the BULK SOLUTION manufactured in
              DEVELOPMENT PHASE II has been found by SCIOS NOVA to meet the
              SPECIFICATIONS FOR BULK SOLUTION, yield the minimum quantity of
              BNP, and the parties have agreed on the COMMERCIAL PRICE and
              SPECIFICATIONS as per Article 5.5, then BC shall also use its best
              efforts and provide the necessary resources to prepare and either
              deliver to SCIOS NOVA or file directly, as appropriate, the
              following materials written in the English language concerning the
              manufacture of BULK SOLUTION for use by SCIOS NOVA in seeking
              regulatory approval for NATRECOR:

              .      all site relevant documents necessary to the filing of an
                     IND amendment by SCIOS NOVA to support the testing of BNP
                     produced by BC in human clinical trials shall be filed or
                     delivered to SCIOS NOVA within 30 days of the setting of
                     the COMMERCIAL PRICE under Article 5.5.

              .      all site relevant documents necessary to support an
                     Establishment License Application (ELA) (which may include
                     BC filing a PLA concurrently with SCIOS NOVA). The parties
                     shall coordinate their efforts with the other regulatory
                     filings that will be necessary to determine in which
                     countries an ELA (or equivalent filing or PLA by BC) shall
                     be filed in addition to filings with the United States FDA,
                     and consult with each fully concerning the content and
                     scope of all filings to be made related to BC's manufacture
                     of BULK SOLUTION. If the parties determine that BC should
                     make any filing directly, then a full copy of each such
                     filing and any subsequent amendments shall be provided to
                     SCIOS NOVA simultaneous with its filing by BC.

*****  Confidential portions of the material have been omitted and filed
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              .      all relevant information and documents relating to the
                     process for the production of BULK SOLUTION that is needed
                     for SCIOS NOVA to prepare the Chemical Manufacturing
                     Control section of the Product License Application or New
                     Drug Application (PLA/NDA), whichever is required to be
                     filed with, and meeting the standards of the United States
                     FDA.

       5.7    Payment for Regulatory Documents. Upon the complete delivery to
              SCIOS NOVA of all documentation described in Article 5.6 necessary
              for filings with, and meeting the standards of, the United States
              FDA for an ELA, and PLA/NDA for NATRECOR, SCIOS NOVA shall pay
              [*****] to BC.

       5.8    Timing. The payments specified in Articles 5.3 and 5.6 shall be
              made within 30 days of completion of the delivery to SCIOS NOVA of
              the specified items by BC and confirmation that the relevant
              specifications have been met.

*****  Confidential portions of the material have been omitted and filed
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6.     Commercial Phase

       6.1    Terms. As provided in Article 5.5, at the conclusion of
              DEVELOPMENT PHASE II the parties shall have established and
              documented by mutual agreement certain key matters, including, (a)
              the Standard Operating Procedure for the 3,000 liter PROCESS, (b)
              any revision to the SPECIFICATIONS FOR BULK SOLUTION, (c) any
              revision to the BNP SPECIFICATIONS, and (d) the COMMERCIAL PRICE.

       6.2    Future Orders. After DEVELOPMENT PHASE II, future orders will be
              initiated by written purchase order from SCIOS NOVA and the
              manufacture, delivery, acceptance and purchase of all such orders
              shall be governed by the provisions of this Article 6, and the
              other applicable provisions of this Agreement. Process validation
              shall be fully performed by BC with SCIOS NOVA's input prior to
              regulatory approval. Assuming successful clinical trials, SCIOS
              NOVA's current goal is to file prior to [*****] an NDA application
              with the United States FDA for approval to market BNP in the
              United States.

       6.3    Price. Subject to Article 6.9(e), (which applies after regulatory
              approval has been obtained), the price to SCIOS NOVA for BULK
              SOLUTION produced by BC after DEVELOPMENT PHASE II shall be the
              COMMERCIAL PRICE that the parties established under Article 5.5.
              Such price shall be valid until [*****]. In the event the [*****]
              as per Article 10.1 shall not have ended at that time, the
              COMMERCIAL PRICE shall be revised by mutual agreement of both
              parties for the remaining term of this Agreement taking into
              consideration BC's cost development, and BC's and SCIOS NOVA's
              respective profitability related to BNP. If the parties are unable
              to agree on a revision to the COMMERCIAL PRICE, shipments shall
              nonetheless continue and initially be paid for at the COMMERCIAL
              PRICE, with a retroactive adjustment upon a determination by the
              arbitrators under Article 13.3 setting the revised COMMERCIAL
              PRICE to apply for the remainder of [*****]. Payment for
              deliveries of BNP shall be based on the net quantity of BNP
              meeting the BNP SPECIFICATIONS that is contained in a shipment of
              BULK SOLUTION as determined initially by BC using methods
              consistent with applicable regulatory requirements and guidelines,
              and with the methods described in the then current ELA and PLA/NDA
              filings related to NATRECOR. The quantity shipped shall be subject
              to confirmation by SCIOS NOVA under Article 6.5. If there is a
              disagreement about the quantity shipped of [*****], then the
              parties shall confer and attempt to resolve the matter. If the
              parties are unable to resolve the matter, then it will be
              submitted to a qualified independent laboratory mutually agreed by
              the parties, and the determination of such laboratory shall
              control. Fees and expenses of such laboratory will be paid by the
              party against whom the finding is made.

       6.4    Forecasts and Coordination. In order to assist BC in planning for
              and meeting SCIOS NOVA's requirements for BULK SOLUTION, SCIOS
              NOVA agrees to: (a) keep BC informed on a regular basis with
              respect to its long-range development plans for NATRECOR, and
              notify BC promptly of any developments expected to substantially
              impact SCIOS NOVA's future BULK SOLUTION requirements; (b) provide
              BC on a quarterly basis, beginning in [*****], with non-binding,
              good faith, rolling forecasts of its supply requirements and dates
              it anticipates requiring delivery in the ensuing twelve months;
              and (c) provide BC with firm orders at least [*****] prior to
              scheduled delivery date.

              In addition, in order to ensure a high level of communication
              between the parties, SCIOS

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                        9

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              NOVA and BC agree, beginning after completion of DEVELOPMENT PHASE
              II, to meet not less frequently than bi-annually during the term
              of this Agreement to discuss issues relating to the supply of BULK
              SOLUTION. Subject to SCIOS NOVA's compliance with the foregoing
              lead times, during the term of this Agreement BC is committed and
              prepared to supply up to [*****] of SCIOS NOVA's forecasted
              purchases of BNP in BULK SOLUTION.

       6.5    Acceptance and Payment. Acceptance of delivery and payment for all
              orders will be subject to release testing and acceptance by SCIOS
              NOVA for conformity with the then current SPECIFICATIONS FOR BULK
              SOLUTION. SCIOS NOVA will be invoiced upon shipment of BULK
              SOLUTION, with a summary of BC's results of analysis against the
              SPECIFICATIONS FOR BULK SOLUTION, and [*****] after receipt of
              such items (in order to allow time for release testing of each
              batch by SCIOS NOVA). SCIOS NOVA may reject within [*****] after
              receipt of any batch of BULK SOLUTION that fails to meet the then
              current SPECIFICATIONS FOR BULK SOLUTION. If test results of BC
              and SCIOS NOVA conflict with respect to a given shipment, a sample
              of such shipment shall be submitted for testing to a qualified
              independent laboratory, mutually agreed upon by the parties, and
              such test results will control. Fees and expenses of the
              laboratory will be paid by the party against whom the findings
              were made.

       6.6    Risk of Loss. Deliveries of each lot or portion thereof will be
              CIP SCIOS NOVA's facility in Mountain View, CA, or if directed by
              SCIOS NOVA, its third party fill and finish contractor or
              marketing partner.

       6.7    Marketing Partner(s). SCIOS NOVA currently intends to market
              NATRECOR in territories outside the United States and Canada
              through partners. BC agrees to supply BULK SOLUTION to such
              partner(s) on terms comparable to those set forth herein if SCIOS
              NOVA determines not to supply NATRECOR to such partner(s) via
              SCIOS NOVA.

       6.8    Access to Plant. SCIOS NOVA shall have reasonable access to BC's
              facility at all times that BC is manufacturing BULK SOLUTION for
              the purpose of monitoring BC's activities under this Agreement.
              During such visits SCIOS NOVA personnel shall be observers and
              shall not have the authority to direct the operations of BC's
              personnel. BC shall keep SCIOS NOVA reasonably informed concerning
              BC's manufacturing schedule and facilitate such access. Following
              the agreement of the parties under Article 4.1, changes to the
              3,000 liter PROCESS are to be agreed upon in writing by both
              parties prior to implementation.

       6.9    Understanding on Quantity and Shipment. In the commercial
              production phase under this Article 6, the following shall apply
              unless otherwise agreed by the parties:

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       10

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          [*****]

6.10      Comprehensive Agreement. After DEVELOPMENT PHASE II the parties may
          elect to enter into the COMPREHENSIVE AGREEMENT as an updated
          statement reflecting the terms of this Agreement, including Article
          6.1 through 6.9, Article 7, Article 8, and Article 10, and such
          additional terms as they may then deem to be reasonable and customary
          in such agreements. The COMPREHENSIVE AGREEMENT would consolidate in
          one document all of the aspects of the parties' relationship, perhaps
          to make it easier for a SCIOS NOVA marketing partner or various
          regulatory authorities to more easily understand the commitments of
          the parties. However, if the parties elect to conduct DEVELOPMENT
          PHASE II and have agreed on the items described in Article 4.1, then
          this current Agreement is intended by the parties as their binding
          commitment to one another until such time, if ever, as the
          COMPREHENSIVE AGREEMENT is finalized, at which time the COMPREHENSIVE
          AGREEMENT will supersede this Agreement. Each of BC and SCIOS NOVA
          will exercise good faith and reasonable best efforts to conclude the
          COMPREHENSIVE AGREEMENT within 90 days after SCIOS NOVA gives notice
          that it believes the COMPREHENSIVE AGREEMENT is needed to secure a
          marketing partner for NATRECOR or to clarify matters for any
          regulatory authority. In specific reliance upon the understandings
          indicated above, SCIOS NOVA has engaged BC to conduct DEVELOPMENT
          PHASE I which in turn may lead to DEVELOPMENT PHASE II as per Article
          5.

7.   Regulatory

     7.1  Compliance. SCIOS NOVA intends to use BULK SOLUTION produced in
          DEVELOPMENT PHASE II to produce its product NATRECOR for large-scale,
          pivotal clinical trials in humans. BULK SOLUTION produced in the
          commercial phase will be used to produce NATRECOR for sale as a
          pharmaceutical agent throughout the world, wherever regulatory
          approval has been obtained. Accordingly, BC agrees that beginning with
          the three production runs to be performed using the 3,000 liter
          PROCESS in DEVELOPMENT PHASE II and for all production runs
          thereafter, all BULK SOLUTION will be manufactured, tested, stored,
          and shipped by BC in accordance with the then current Good
          Manufacturing Practices Regulations as interpreted by the United
          States FDA and relevant regulatory agencies in other major countries,
          as well as other applicable regulatory requirements of the United
          States FDA, which are not otherwise specifically described in the Good
          Manufacturing Practices. Once the ELA, BC's PLA (if any), and/or SCIOS
          NOVA's PLA/NDA have been filed, then BC agrees that all BULK SOLUTION
          shall also be manufactured, tested, stored and shipped in accordance
          with the then current version of such regulatory documents. As
          manufacturer of BULK SOLUTION, BC will promptly provide all assistance
          reasonably requested by SCIOS NOVA to secure and maintain regulatory
          approval for NATRECOR, and BC shall make all regulatory filings and
          provide to SCIOS NOVA all information concerning the manufacture of
          BULK SOLUTION by BC, that may be necessary or advisable in order for
          SCIOS NOVA or its licensees to obtain approval to market BNP in any
          country, and SCIOS NOVA shall have full access, and the right to
          review and copy all such filings, including, but not limited to, the
          following:

               (i)  BC will prepare, maintain and give SCIOS NOVA's regulatory
               and quality personnel access to all batch records, and provide
               copies to SCIOS NOVA upon reasonable request;

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       11

<PAGE>

               (ii)  BC will file and keep current (including filing of all
               annual updates) the portions of the ELA or DMF relating to the
               manufacturing of BULK SOLUTION being performed by BC (the filing
               date will be agreed upon by BC and SCIOS NOVA based on the
               schedule for the PLA/NDA filing);

               (iii) BC will cooperate with SCIOS NOVA regarding product
               marketing application requirements to demonstrate the consistency
               of the characteristics of BULK SOLUTION, from lot to lot, and of
               the purity profile of the BULK SOLUTION from lot to lot. BC will
               also cooperate with SCIOS NOVA and perform the activities
               necessary to assure that all validation requirements are met on a
               timely basis;

               (iv)  SCIOS NOVA will be permitted to inspect BC's facility, at
               reasonable times and at least annually, and, upon advance notice,
               to be present during manufacture and to be present during
               regulatory inspections;

               (v)   BC will notify SCIOS NOVA of all regulatory inspections and
               provide SCIOS NOVA with copies of all significant correspondence
               to or from the United States FDA (e.g., Section 483 letters,
               warning letters and BC's responses) and with any comparable
               regulatory agency in another country; and

               (vi)  BC will notify SCIOS NOVA in writing at least 30 days in
               advance of any proposed modification to those portions of its
               facility or organization that are involved in the manufacture of
               BULK SOLUTION, consider all concerns that SCIOS NOVA may express
               in writing about the impact of such changes on regulatory
               compliance and production timing, minimize the negative impact of
               such changes on BC's methods and schedule for production of BULK
               SOLUTION (including obtaining advance regulatory approval of the
               change), and promptly prepare and file any such amendments to the
               regulatory filings related to the BULK SOLUTION which need to be
               amended.

               Compensation for all such services is included in the price to be
               charged by BC under Article 6.3.

8.   Back-up Supplier: Licenses

     8.1  Alternate Supplier. In order that SCIOS NOVA is not dependent on a
          single supplier of BULK SOLUTION and recognizing that regulatory
          requirements dictate that all BULK SOLUTION utilized by SCIOS NOVA
          should be manufactured by the same process, BC agrees that beginning
          in 1998 and pursuant to Article 8.2, SCIOS NOVA may itself use, or
          have another supplier use, the 150 liter PROCESS or the 3,000 liter
          PROCESS to produce annually the quantity of BULK SOLUTION that is
          necessary to yield [*****] of BNP. In addition to the foregoing, in
          the event BC fails for any reason, including without limitation, a
          force majeure event described in Article 14.6, to deliver BULK
          SOLUTION to SCIOS NOVA for a continuous period of 120 days, then SCIOS
          NOVA shall have the right to make or have made all of its requirements
          of BULK SOLUTION for the duration of BC's inability to supply.

     8.2  Access to Process; Royalties. To permit SCIOS NOVA to manufacture BULK
          SOLUTION itself or arrange for such an alternate supplier, BC does
          hereby grant to SCIOS NOVA a license to use and to allow such
          alternate supplier to use the 3,000 liter PROCESS and the 150 liter
          PROCESS solely to make or have made BULK SOLUTION. Such license shall
          be

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       12

<PAGE>

          royalty-free when it is exercised under Article 8.1 due to BC's
          inability to supply. When exercised under Article 8.2 or when
          exercised under Article 8.1 so that SCIOS NOVA may establish an
          alternate supplier even though BC is able to supply SCIOS NOVA's
          needs, such license shall bear a royalty of [*****] of SCIOS NOVA's
          net sales of NATRECOR that has been produced by using BC KNOWHOW or BC
          PATENT RIGHTS. The license shall be irrevocable except for a
          termination under Article 10.5 based on SCIOS NOVA's material breach
          or SCIOS NOVA becoming insolvent or going into liquidation where such
          insolvency or liquidation is not withdrawn within 90 days. To
          implement the foregoing license, promptly after setting the COMMERCIAL
          PRICE as per Article 5.5, BC will take all steps necessary to disclose
          all details concerning the 3,000 liter PROCESS and 150 liter PROCESS
          to SCIOS NOVA in order to enable SCIOS NOVA itself to manufacture BULK
          SOLUTION pursuant to this provision. BC shall not be required to make
          available members of its staff for face-to-face meetings with SCIOS
          NOVA for more than 100 person hours in the aggregate. SCIOS NOVA shall
          reimburse BC for reasonable travel, living, other out-of-pocket
          expenses, and for the work at the rates incurred by BC in providing
          assistance to SCIOS NOVA under this paragraph.

9.   Investment in Specific Equipment

     9.1  Investment. In order to manufacture BULK SOLUTION in DEVELOPMENT PHASE
          II, BC will invest in planning, purchasing and installing of specific
          equipment, such activities and equipment to be listed in Annex 6 to
          this Agreement as investment. Any such equipment shall be ordered by
          BC and any such construction activity shall be started not later than
          [*****].

          BC's investment under this Article, including BC's internal and
          external planning cost, specific equipment and installation thereof
          shall not exceed [*****] in the aggregate without SCIOS NOVA's prior
          written approval.

          Subject to Article 9.3, full and unencumbered title to all such
          investment by BC under Article 9.1 shall at all times be with BC.

     9.2  Identification of Cost and Payment. BC agrees to notify SCIOS NOVA in
          writing of the actual cost of BC's investment under Article 9.1 not
          later than [*****]. BC's notification shall be accompanied by BC's
          invoice and by copies of the respective third parties' invoices for
          any work and delivery performed and BC's internal activity-report and
          charges according to BC's accounting guidelines. [*****]

     9.3  Effects of Termination on Investment. The termination of this
          Agreement shall not affect SCIOS NOVA's obligation to reimburse BC's
          investment as per Article 9.1 and 9.2.

          Upon a termination before the first purchase of BULK SOLUTION in the
          COMMERCIAL PHASE as per Article 6:

          [*****]

          .    BC shall credit SCIOS NOVA with the amount of [*****], provided
               such amount had been reimbursed by SCIOS NOVA for the [*****] as
               detailed in item 1 of Annex 6 as per Article 9.2.

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       13

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10.  Term and Discontinuance

     10.1 Term. Unless earlier terminated pursuant to the provisions of this
          Article 10, this Agreement shall remain in full force and [*****]
          under Article 6 or until this Agreement is superseded by the
          COMPREHENSIVE AGREEMENT.

     10.2 Termination after DEVELOPMENT PHASE I. Pursuant to Article 4.1, the
          parties shall determine whether or not to proceed to DEVELOPMENT PHASE
          II after reviewing the results of DEVELOPMENT PHASE I. If SCIOS NOVA
          elects not to continue to DEVELOPMENT PHASE II and to terminate the
          Agreement even though BC has proposed a REVISED TARGET PRICE that is
          not higher than the TARGET PRICE and BC has otherwise succeeded in the
          goals of DEVELOPMENT PHASE I, then SCIOS NOVA shall pay to BC (in
          addition to any payments due under Article 3) a cancellation fee equal
          to [*****] of the charge under Article 3.3 for the DEVELOPMENT PHASE I
          work. In all other cases (i.e., if SCIOS NOVA terminates after BC has
          proposed a REVISED TARGET PRICE under Article 5.2 that is higher than
          the TARGET PRICE or after the goals of DEVELOPMENT PHASE I are not met
          or if BC elects to terminate under any circumstances), then no
          additional payment shall be due from SCIOS NOVA to BC.

     10.3 Termination after DEVELOPMENT PHASE II. If the COMMERCIAL PRICE as
          proposed by BC under Article 5.2 is higher than the REVISED TARGET
          PRICE and the parties are unable to agree under Article 5.5 on a
          COMMERCIAL PRICE and on the other terms specified in Article 5.5, then
          either party may terminate this Agreement without additional payment.

     10.4 Termination for NATRECOR Results. SCIOS NOVA may also terminate this
          Agreement any time during or after DEVELOPMENT PHASE II if it believes
          the clinical results for NATRECOR warrant such termination so that
          SCIOS NOVA finally decides not to market directly or indirectly
          NATRECOR. In the event SCIOS NOVA so terminates this Agreement after
          giving notice to BC to commence DEVELOPMENT PHASE II, then SCIOS NOVA
          shall pay to BC (in addition to any payments due under Articles 3) a
          cancellation fee equal to [*****] of the cost that SCIOS NOVA
          previously paid to BC for the DEVELOPMENT PHASE I work.

     10.5 Termination for Breach. Either party may terminate this Agreement upon
          a material breach by the other party which goes uncured for more than
          30 days after receipt of written notice identifying the alleged
          breach. [*****]

     10.6 Termination for Third Party Patent. If a party receives a claim that a
          third party patent on BNP would be infringed by BC's manufacture of
          BNP for SCIOS NOVA under this Agreement, the parties shall attempt to
          agree on a strategy to respond to such claim. If the parties are
          unable to agree within 90 days, then notwithstanding the obligations
          of the parties in Article 11.4, either party may terminate this
          Agreement effective upon 60 days notice to the other party.

          In the event such termination shall be based upon a claim of a third
          party, alleging infringement based on the structure of BNP or the fact
          that BC is manufacturing BNP, then SCIOS NOVA shall pay to BC a
          cancellation fee equal to [*****] of the cost that SCIOS NOVA
          previously paid to BC for the DEVELOPMENT PHASE I work.

          In the event of a termination under this Article 10.6, the license to
          SCIOS NOVA under

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       14

<PAGE>

          Article 8 shall be deemed to have been granted under Article 8.2 and
          bear the 1% royalty set forth in Article 8.2.

     10.7 Notice. Each party shall give notice to the other of any
          discontinuance or breach by registered air mail letter or air courier.

     10.8 Survival of Certain Obligations. Termination shall not affect any
          right or obligation previously accrued. In addition, Article 4.3,
          Article 7, Article 8, Article 9, Article 11, Article 12, Article 13
          and Article 14 shall survive and continue to have effect following any
          termination of this Agreement.

11.  Intellectual Property

     11.1 General. Recognizing: (a) that SCIOS NOVA has developed SCIOS NOVA
          KNOWHOW and holds the SCIOS NOVA PATENT RIGHTS; (b) that SCIOS NOVA
          will contribute to BC to develop the 150 liter PROCESS and the 3,000
          liter PROCESS; and (c) that in the course of developing the 150 liter
          PROCESS and 3,000 liter PROCESS BC may develop the BC KNOWHOW and the
          BC PATENT RIGHTS, the parties agree as follows concerning intellectual
          property matters.

     11.2 License to BC. SCIOS NOVA hereby grants to BC a non-exclusive,
          non-transferable license to use SCIOS NOVA KNOWHOW and SCIOS NOVA
          PATENT RIGHTS solely for the purpose of manufacturing BNP for SCIOS
          NOVA as provided in this Agreement. The license granted under this
          Article 11.2 should automatically terminate upon the expiration or
          termination of this Agreement.

     11.3 BC Ownership, License to Scios Nova. BC shall own the BC KNOWHOW and
          BC PATENT RIGHTS. Pursuant to Article 4 and Article 8 BC has granted
          to SCIOS NOVA certain licenses to use or to authorize others to use
          any of the of the BC KNOWHOW or BC PATENT RIGHTS solely for the
          purpose of manufacturing BNP pursuant to SCIOS NOVA's exercise of its
          rights in accordance with such articles.

     11.4 Third Party Claims. [*****]

     11.5 Non-Use. Recognizing that the transfer by SCIOS NOVA of SCIOS NOVA
          KNOWHOW constitutes a disclosure of valuable proprietary information
          of SCIOS NOVA and also that it may be difficult to separate SCIOS NOVA
          KNOWHOW from BC KNOWHOW, BC agrees that during the term of this
          Agreement BC shall not undertake a project involving the manufacture
          of a BNP COMPOUND without first obtaining the written approval of
          SCIOS NOVA.

     11.6 Allowed Use. SCIOS NOVA acknowledges and agrees that BC shall be free
          to:

          .  Manufacture any compound other than a BNP COMPOUND at any time
             using the BC KNOWHOW and/or BC PATENT RIGHTS, if such manufacture
             can be done without infringing or using any of the SCIOS NOVA
             PATENT RIGHTS or SCIOS NOVA KNOWHOW falling within the scope of
             Article 12;

          .  Manufacture a BNP COMPOUND for itself or third parties following
             any termination of this Agreement to the extent such manufacture
             will not infringe SCIOS NOVA PATENT RIGHTS or SCIOS NOVA KNOWHOW
             being covered by Article 12.

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       15

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     The foregoing shall not be deemed to grant BC any right in the continued
     use of SCIOS NOVA KNOWHOW or SCIOS NOVA PATENT RIGHTS after the term of
     this Agreement.

12.  Secrecy and Non-Use

     12.1 General. Each party shall keep strictly secret and use solely for the
          purposes described or authorized herein any CONFIDENTIAL INFORMATION
          it may receive from the other party through the activities described
          in this Agreement. Except as may be required by law or for SCIOS NOVA
          to secure a licensee for BNP, neither party may discuss the terms of
          this Agreement without the prior approval of the other party.

     12.2 Exclusions. Such secrecy and non-use obligations shall not apply to
          any facts which

          . are or will be part of the public domain without breach of these
            secrecy provisions;

          . is already in the receiving parties possession at the time of
            receipt; or

          . will be made available to a party through a third party who has not
            breached an obligation of confidentiality in so doing.

     12.3 Non-exclusion. Information which is specific shall not be excluded
          from a secrecy and non-use obligation when it is in general form in
          the public domain or being made available to the receiving party.

     12.4 Term. These secrecy and non-use obligation shall be enforced for the
          term of this Agreement and 10 years thereafter.

     12.5 Outside Patent Counsel. BC shall be free to disclose the SCIOS NOVA
          KNOWHOW solely to BC's patent advisors, including those in BC's
          affiliated company [*****], provided such advisors are subject to the
          same obligations of secrecy and non-use as set out in this Article 12
          and such disclosure is made and used solely for the purpose of BC
          obtaining patent advice to implement the purposes of the Agreement.

13.  Interpretation and Jurisdiction

     13.1 No Agency. This Agreement shall not be interpreted as a contract of
          association or agency and, except as specifically set forth herein,
          the parties shall be under no obligation to enter into any further
          agreement or to make available to each other any CONFIDENTIAL
          INFORMATION.

     13.2 Governing Law. This Agreement shall be governed by the laws of
          Switzerland.

     13.3 Dispute Resolution. Any dispute arising out of this Agreement shall be
          finally settled by arbitration according to the Rules of Conciliation
          and Arbitration of the International Chamber of Commerce headquartered
          in Paris, France. The arbitration shall be effected by 3 arbitrators
          to be appointed according to said rules and the arbitration shall be
          held in Geneva, Switzerland in the English language.

14.  Miscellaneous

     14.1 Assignment. Neither party may assign its obligations under this
          Agreement without the written consent of the other party, except that
          (a) either party shall assign its rights and obligations to a third
          party which merges with or otherwise acquires substantially all of its
          assets; and (b) SCIOS NOVA may assign its rights and obligations to a
          third party which

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       16

<PAGE>

          acquires rights to distribute NATRECOR.

     14.2 Entire Agreement. This Agreement sets forth the entire Agreement of
          the parties, relating to the subject matter hereof, and supersedes all
          prior understandings.

     14.3 Notices. Any notices under this Agreement shall be in writing and may
          be transmitted personally, by telefax, mail or courier. Notices shall
          be deemed to have been given upon receipt. Until changed by further
          notice from one party to another, the following address shall be used
          for Notices under this Agreement:

          If to SCIOS NOVA:

          2450 Bayshore Parkway
          Scios Nova Inc.
          Mountain View, CA 94043
          Telefax:   01-415-962-5816
          Attention: General Counsel

          If to BC:

          Biochemie Gesellschaft m.b.H.
          A-6250 Kundl/Austria
          Telefax:   0043-5338-8828
          Attention: General Counsel

     14.4 Waiver. Should either party fail to enforce any provision of this
          Agreement or fail to exercise or waive any right with respect thereto,
          such failure shall not be deemed a waiver or continuing waiver of its
          rights to enforce such provision or any other provisional right.

     14.5 Further Assurances. From time to time, either SCIOS NOVA or BC shall,
          at the request of the other party, take or cause to be taken, such
          other actions as the other party may reasonably deem necessary or
          desirable in order to carry out the transactions contemplated by this
          Agreement.

     14.6 Force Majeure. No failure or omission by a party hereto in the
          performance of any obligation of this Agreement shall be deemed a
          breach of this Agreement nor creating a liability, if the same shall
          arise from any cause or any causes beyond the control of the party,
          including, but not limited to, the following, which, for the purposes
          of this Agreement, shall be regarded as beyond the control of the
          party in question: acts of God; acts or omissions of any government;
          any rules, regulations or orders issued by governmental authority or
          by any officer, department, agency of instrumentality thereof; fire,
          storm; flood; earthquake; accident; war; rebellion; insurrection;
          riot; invasion; strikes and lockout. Performance shall be excused only
          for the duration of such an event and upon cessation of the cause of
          non-performance the party whose performance has been delayed shall
          promptly resume performance and use all reasonable efforts to make up
          time lost in the delay. If the delay in performance shall extend for
          more than [*****] days, then the party whose performance is not being
          delayed may terminate this Agreement by notice to the other or SCIOS
          NOVA may exercise its rights under Article 8.1.

     14.7 Currency. The parties have selected the German Deutsche Mark
          (abbreviated DM) as the currency for all payments under this Agreement
          and all payment amounts expressed herein are intended to be references
          to the Deutsche Mark.

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       17

<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
     day and year first above written.

SCIOS NOVA INC., a Delaware                  BIOCHEMIE
Corporation                                  Gesellschart m.b.H.

By:  ____________________________            By:  ______________________________

Its: ____________________________            Its:  _____________________________

List of Annexes:

Annex 1 BNP SPECIFICATIONS
Annex 2 SPECIFICATIONS FOR BULK SOLUTION
Annex 3 Details 10 liter PROCESS per Article 1.19
Annex 4 Samples and tests to be provided from DEVELOPMENT PHASE I and
        Development Phase II
Annex 5 Description of BC's DEVELOPMENT PHASE I effort and charges
Annex 6 Investment in Equipment
Annex 7 Chromatography Filling Materials

                                       18

<PAGE>

                                     Annex 1

                   SPECIFICATIONS FOR HUMAN BRAIN NATRIURETIC
                                 PEPTIDE (1-32)

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       19

<PAGE>

                                     Annex 2

                        SPECIFICATIONS FOR BULK SOLUTION

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       20

<PAGE>

                                     Annex 3

    SCIOS NOVA DELIVERABLES (Details of 10 liter PROCESS as per Article 1.19)

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       21

<PAGE>

                                     Annex 4

                SAMPLES AND TESTS TO BE PROVIDED FROM DEVELOPMENT
                        PHASE I AND DEVELOPMENT PHASE II

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       22

<PAGE>

                                     Annex 5

           DESCRIPTION OF BC'S DEVELOPMENT PHASE I EFFORT AND CHARGES
                         All rates are given in DM/hour

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       23

<PAGE>

                                     Annex 6

                             INVESTMENT IN EQUIPMENT

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       24

<PAGE>

                                     Annex 7

                        CHROMATOGRAPHY FILLING MATERIALS

                                     [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       25

<PAGE>

                                 FIRST ADDENDUM
                           to the BNP Agreement (1995)
                      entered into as of November 17, 1995

entered into as of April 30, 1996 by and between

SCIOS INC.
2450 Bayshore Parkway
Mountain View, CA 94043/USA

and

BIOCHEMIE Gesellschaft mbH
A-6250 Kundl/Austria

WHEREAS, BIOCHEMIE Gesellschaft mbH (hereinafter "BC") and Scios Nova Inc.
entered into the BNP AGREEMENT (1995) as of November 17, 1995 (the "Agreement").
WHEREAS, Scios Nova Inc. subsequently changed its name to Scios Inc.
(hereinafter "Scios").
WHEREAS, BC and Scios wish to amend the Agreement to document their agreements
on the following matters: (1) their agreement on four items as specified in
article 4.1 of the Agreement; (2) their agreement that Development Phase H shall
be conducted by BC; and (3) their agreement according to article 2.5 of the
Agreement that BC shall perform lyophilization of the BULK SOLUTION and ship BNP
in solid form to Scios.

The parties hereto agree as follows:

1.        Definitions

Capitalized terms used herein shall have the meaning given to them in the
Agreement unless otherwise defined herein. All references To "Scios Nova" in the
Agreement shall be deemed to be references to Scios.

2. Analysis and discussion as per article 4.1

          a.      BNP SPECIFICATIONS

                  The BNP SPECIFICATIONS remain unchanged and shall be as set
                  forth in Annex 1 to the Agreement.

          b.      SPECIFICATIONS FOR BULK SOLUTION

                  The SPECIFICATIONS FOR BULK SOLUTION remain unchanged and
                  shall be as set forth in Annex 2 to the Agreement. Based on
                  the changes below to incorporate lyophilization into the
                  manufacturing process to be performed by BC in DEVELOPMENT
                  PHASE II and thereafter, the SPECIFICATIONS FOR BULK SOLUTION
                  now have application primarily to the DEVELOPMENT PHASE I
                  work.

          c.      SOP FOR 3000 liter PROCESS

                  The standard operating procedure to be used for the 3000 liter
                  PROCESS in DEVELOPMENT PHASE II and thereafter has been agreed
                  on in a separate document which will be signed by both
                  parties.

          d.      REVISED TARGET PRICE

                  [*****]

***** Confidential portions of the material have been omitted and filed
      separately with the Securities and Exchange Commission

                                       26

<PAGE>

3.   Agreement on DEVELOPMENT PHASE II (3000 liter PROCESS)

          The parties agree that DEVELOPMENT PHASE II shall be conducted by BC
          according to the terms of article 5 of the Agreement.

4.   Agreement on lyophilization

     a.   New Definitions

Article 1 is hereby amended by adding the following definitions to the
Agreement:

     "1.22 BULK LYOPHILIZED BNP means lyophilized BNP that meets the
     SPECIFICATIONS FOR BULK LYOPHILIZED BNP."

     "1.23 SPECIFICATIONS FOR BULK LYOPHILIZED BNP shall mean the specifications
     set forth in Annex 8 which shall be used beginning in Development Phase II.
     Annex 8 may be updated by mutual agreement of the parties at the end of
     DEVELOPMENT PHASE II. Such a revision shall take into account the then
     current requirements of the characteristics for proteins manufactured by
     recombinant means.

     b.   Lyophilization

     The parties agree that BC shall perform during DEVELOPMENT PHASE II and the
     commercial phase as per article 6 of the Agreement the lyophilization of
     the BULK SOLUTION to obtain BULK LYOPHILIZED BNP that meets the
     SPECIFICATIONS FOR BULK LYOPHILIZED BNP. The 3000 liter PROCESS shall
     include the process for lyophilization to be developed by BC.

     c.   Amendment of article 5.3

     To allow time for the lyophilization work to be performed by BC, Article
     5.3 of the Agreement is hereby amended to read as follows:

     "5.3 Assessment of DEVELOPMENT PHASE II and Payment. SCIOS shall promptly
          assay the BULK LYOPHILIZED BNP produced in DEVELOPMENT PHASE II for
          conformity with the SPECIFICATIONS FOR BULK LYOPHILIZED BNP and
          provide the results of its analysis to BC. If three batch runs produce
          BULK LYOPHILIZED BNP that satisfies the SPECIFICATIONS FOR BULK
          LYOPHILIZED BNP and have a yield of at least 125 grams BNP each, then
          SCIOS shall make one of the following payments to BC based on when
          SCIOS received the final shipment of the three batches from
          DEVELOPMENT PHASE II:

          [*****]

     d.   Amendment of article 5.7 of the Agreement

     Article 5.7 of the Agreement is hereby amended to read in its' entirety as
     follows:

     "5.7 Payment for Regulatory Documents. Upon the complete delivery to SCIOS
          of all documentation described in Article 5.6 necessary for filings
          with, and meeting the standards of the United States FDA for an ELA,
          and PLA/NDA for NATRECOR, SCIOS shall pay to BC, [*****]"

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       27

<PAGE>

     e.   References to BULK SOLUTION

     The following references to BULK SOLUTION in the Agreement shall hereafter
     be deemed to be references to BULK LYOPHILIZED BNP: Whereas clauses 3, 5, &
     6, articles 1.2, 1.3, 1.8, 1.15, 1.16, 1.21, 5.2, 5.5, 5.6, 6.3, 6.4, 6.5,
     6.7, 6.8, 6.9 (all paragraphs), 7.1, 8.1, 8.2, 9.1, and 9.3.

     f.   References to SPECIFICATIONS FOR BULK LYOPHILIZED BNP

     The following references to SPECIFICATIONS FOR BULK SOLUTION in the
     Agreement shall hereafter be deemed to be references to SPECIFICATIONS FOR
     BULK LYOPHILIZED BNP: articles 5.4, 5.5, 5.6, 6.1 and 6.5.

                                       28

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Addendum, which shall
     form an integral part of the Agreement and shall come into force as of
     April 30, 1996.

SCIOS INC., a Delaware                   BIOCHEMIE Gesellschaft m.b.H.
corporation

By:_____________________________        By:_____________________________________

Name: Armin H. Ramel                     Name: Dr.W.Ki11iches     Dr.F.Nachtmann
                                               ---------------------------------
Its: Vice President of                   Its:  General Counsel Director
Product Development                                               New Business
                                                                  Development

Attachment: Annex 8 - SPECIFICATIONS FOR BULK LYOPHILIZED BNP

                                       29

<PAGE>

                                     Annex 8

                     SPECIFICTIONS FOR BULK LYOPHILIZED BNP

                                     [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       30

<PAGE>

                                 SECOND ADDENDUM
                           to the BNP Agreement (1995)
                    entered into as of November 17, 1995 and
                          amended as of April 30, 1996

       entered into as of September 30, 1997 by and between

       Scios Inc.
       2450 Bayshore Parkway
       Mountain View, CA 94043/USA

       (hereinafter referred to as "SCIOS")

       and

       BIOCHEMIE GmbH

       Biochemiestra(beta)e 10, A-6250 Kundl
       (hereinafter referred to as "BC")

       WHEREAS, BC and SCIOS entered into the BNP AGREEMENT (1995) (hereinafter
       referred to as "AGREEMENT") as of November 17, 1995 and entered into a
       first addendum to the AGREEMENT as of April 30, 1996 (hereinafter
       referred to as "FIRST ADDENDUM");

       WHEREAS, BC and SCIOS wish to amend the AGREEMENT and FIRST ADDENDUM, to
       document their agreements on the following matters:

       A.  COMMERCIAL PRICE of BNP in BULK SOLUTION and in BULK LYOPHILIZED BNP

       B.  Payment of additional specific equipment

       C.  Updated specifications

       the parties hereto agree as follows:

1.     Definitions

       Capitalized terms used herein shall have the meaning given to them
       in the AGREEMENT or FIRST ADDENDUM unless otherwise defined herein.

2.     Setting commercial price as per article 5.5

2.1    BULK LYOPHILIZED BNP

2.1.1. The COMMERCIAL PRICE per gram of BNP delivered to SCIOS as BNP BULK
       LYOPHILIZED shall be [*****],--.

       Even though BC has manufactured BULK LYOPHILIZED BNP, the parties have
       agreed that, subject to SCIOS obtaining all necessary approvals, future
       deliveries will be as BULK SOLUTION.

2.2    BULK SOLUTION

2.2.1  [*****]

2.2.2  [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       31

<PAGE>

2.2.3     [*****]

2.3       The COMMERCIAL PRICE shall be understood CIP SCIOS' facility in
          Mountain View, California, USA, payment within 45 days after receipt
          of delivery.

2.4       [*****]

3.        Additional Specific equipment

3.1       SCIOS requests BC to purchase and install the specific equipment at a
          price not to exceed [*****],-- and invoice the total cost related to
          such investment as listed in Annex 9 to SCIOS by [*****]. BC's invoice
          shall be paid by SCIOS within 30 days after date of invoice but not
          earlier than completion of installation.

3.2       Full and unencumbered title to such investment by BC shall at all
          times be with BC and such investment shall not be reimbursed by BC to
          SCIOS for any reason whatsoever.

4.        SPECIFICATIONS for BULK SOLUTION and BULK LYOPHILIZED BNP

4.1       The specifications for BULK SOLUTION and for BULK LYOPHILIZED BNP
          shall be amended as per the annex to this SECOND ADDENDUM.

5.        Continuation of validity

          5.1  The terms of the AGREEMENT, the FIRST ADDENDUM and the SECOND
               ADDENDUM shall apply to the purchase of BULK SOLUTION as well as
               to BULK LYOPHILIZED BNP.

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       32

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Addendum, which shall
     form an integral part of the AGREEMENT and shall come into force as of
     September 30, 1997.

     Scios Inc.                         BIOCHEMIE GmbH

     By: __________________________     By: ____________________________

     Name: John H. Newman               Name: Dr. W. Killiches  Dr. F. Nachtmann

     Function: Vice President of        Function: General       Head Bioproducts
               Legal Affairs                      Counsel

 Annex 2: Specifications for BULK SOLUTION
 Annex 8: Specifications for BULK LYOPHILIZED BNP
 Annex 9: Specific equipment

                                       33

<PAGE>

                                     Annex 2
           to the BNP Agreement between SCIOS Inc. and BIOCHEMIE GmbH
             entered into as of November 17, 1995 as amended by the
                      SECOND ADDENDUM of September 30, 1997

                        Specifications for BULK SOLUTION

                                     [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       34

<PAGE>

                                     Annex 8
           to the BNP Agreement between SCIOS Inc. and BIOCHEMIE GmbH
             entered into as of November 17, 1995 as amended by the
                      SECOND ADDENDUM of September 30, 1997

                     Specifications for BULK LYOPHILIZED BNP

                                     [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       35

<PAGE>

                                     Annex 9
           to the BNP Agreement between SCIOS Inc. and BIOCHEMIE GmbH
             entered into as of November 17, 1995 as amended by the
                      SECOND ADDENDUM of September 30, 1997

                               Specific Equipment

                                     [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       36

<PAGE>

                                 THIRD ADDENDUM
                           to the BNP Agreement (1995)
                    entered into as of November 17, 1995 and
            amended as of April 30, 1996 and as of September 30, 1997

entered into as of September 1, 1998 by and between

Scios Inc.
2450 Bayshore Parkway
Mountain View, CA 94043/USA
(hereinafter referred to as "SCIOS")

and

BIOCHEMIE GmbH
Biochemiestra(beta)e 10, A6250 Kundl/Austria
(hereinafter referred to as "BC")

WHEREAS, BC and SCIOS entered into the BNP AGREEMENT (1995) (hereinafter
referred to as "AGREEMENT") as of November 17, 1995 and entered into a FIRST
ADDENDUM to the AGREEMENT as of April 30, 1996 (hereinafter referred to as
"FIRST ADDENDUM") and SECOND ADDENDUM to the AGREEMENT as of September 30, 1997
(hereinafter referred to as "SECOND ADDENDUM");

WHEREAS, BC and SCIOS wish to amend the AGREEMENT and prior ADDENDUMS to
document their agreements on the following matters:

     (a) Revision of COMMERCIAL PRICE of BNP in BULK LYOPHILIZED BNP;

     (b) Updated specifications; and

     (c) Prolongation of the AGREEMENT;

the parties hereto agree as follows:

1.   Definitions

     Capitalized terms used herein shall have the meaning given to them in the
     AGREEMENT or prior ADDENDUMS unless otherwise defined herein.

2.   Revision of the COMMERCIAL PRICE for BULK LYOPHILIZED BNP

          The COMMERCIAL PRICE in DM per gram of BNP delivered to SCIOS as BNP
          BULK LYOPHILIZED shall be as follows:

          [*****]

          Even though BC has manufactured BULK LYOPHILIZED BNP, the parties have
          agreed that subject to SCIOS obtaining all necessary approvals, future
          deliveries will be as BULK SOLUTION once the production process for
          BULK SOLUTION has been validated. In order to accomplish the
          changeover to BULK SOLUTION, the parties anticipate that certain
          additional development work will be performed on a contract or project
          basis as to which the parties shall separately specify the scope and

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       37

<PAGE>

          cost for each project in a separate letter agreement to be agreed
          regarding work that does not produce validated BNP that may be used
          for commercial purposes.

3.   SPECIFICATIONS for BULK SOLUTION and BULK LYOPHILIZED BNP

     3.1  The specifications for BULK SOLUTION shall be amended to now read as
          per Annex 2 to this THIRD ADDENDUM and the specifications for BULK
          LYOPHILIZED BNP shall be amended to read as per Annex 8 to this THIRD
          ADDENDUM.

4.   PROLONGATION of the AGREEMENT

     4.1  Article 10.1 of the AGREEMENT shall read as follows:

               10.1 Term. Unless earlier terminated pursuant to the provisions
               of this Article 10, this AGREEMENT shall remain in full force and
               effect for [*****] by BC to SCIOS under Article 6 or until this
               AGREEMENT is superseded by the COMPREHENSIVE AGREEMENT.

4.2  The references made in the AGREEMENT and relating to the [*****] term shall
     be adapted to relate to an [*****] term. The parties intend that this
     modification of the term of the AGREEMENT shall also [*****] the period of
     time set forth in Sections 6.9(c) and (e) during which SCIOS shall purchase
     from BC at least 25 kg of BNP in BULK SOLUTION of BULK LYOPHILIZED form
     from [*****].

5.   Continuation of validity

5.1  The terms of the AGREEMENT, the FIRST ADDENDUM and SECOND ADDENDUM, and
     this THIRD ADDENDUM shall apply to the purchase of BULK SOLUTION as well as
     to BULK LYOPHILIZED BNP.

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       38

<PAGE>

IN WITNESS WHEREOF, the parties have executed this Addendum, which shall form an
integral part of the AGREEMENT and shall come into force as of July 1, 1998.

Scios Inc.                               BIOCHEMIE GmbH

By: ___________________________          By: ___________________________________

Name: Elliott Grossbard, M.D.            Name: Dr. F. Nachtmann

Function: Senior Vice President,         Function: Head Bioproducts
          Development

                                         By: ___________________________________

                                         Name: Dr. E. Dolejei

                                         Function: Legal Counsel

Annex 2:  Specifications for BULK SOLUTION
Annex 8:  Specifications for BULK LYOPHILIZED BNP

                                       39

<PAGE>

                                     Annex 2
           to the BNP Agreement between SCIOS Inc. and BIOCHEMIE GmbH
             entered into as of November 17, 1995 as amended by the
                       THIRD ADDENDUM of September 1, 1998

                        Specifications for BULK SOLUTION

                                     [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       40

<PAGE>

                                     Annex 8
           to the BNP Agreement between SCIOS Inc. and BIOCHEMIE GmbH
             entered into as of November 17, 1995 as amended by the
                       THIRD ADDENDUM of September 1, 1998

                     Specifications for BULK LYOPHILIZED BNP

                                     [*****]

*****  Confidential portions of the material have been omitted and filed
       separately with the Securities and Exchange Commission

                                       41

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