Document:

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                  COLLABORATIVE RESEARCH AND LICENSE AGREEMENT

                                 by and between

                                 IMMUNOGEN, INC.

                                       and

                           RAVEN BIOTECHNOLOGIES, INC.

                                 March 28, 2001

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

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                                TABLE OF CONTENTS

<TABLE>
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                                                                            PAGE

<S>                                                                           <C>
ARTICLE 1       DEFINITIONS....................................................1

      1.1    "Affiliate".......................................................1

      1.2    "Agreement".......................................................2

      1.3    "Antigen".........................................................2

      1.4    "Candidate Designation Period"....................................2

      1.5    "Candidate Mab"...................................................2

      1.6    "Candidate Target"................................................2

      1.7    "Combination Product".............................................2

      1.8    "Commercial Field"................................................2

      1.9    "Commercially Reasonable Efforts".................................2

      1.10   "Confidential Information"........................................2

      1.11   "Control", "Controls" and "Controlled"............................3

      1.12   [     *             ].............................................3

      1.14   "Derivative"......................................................3

      1.15   "Effective Date"..................................................4

      1.16   "Europe"..........................................................4

      1.17   "FDA".............................................................4

      1.18   "First Commercial Sale"...........................................4

      1.19   "[                                 ]".............................4

      1.20   "ImmunoGen".......................................................4

      1.21   "ImmunoGen Background Technology".................................4

      1.22   "ImmunoGen Mab"...................................................4

      1.24   "ImmunoGen Program Technology"....................................4

      1.25   "ImmunoGen Technology"............................................4

      1.26   "IND".............................................................4

      1.27   "Initial Research Term"...........................................5

      1.28   "Joint Know-How"..................................................5

      1.29   "Joint Patents"...................................................5

      1.30   "Know-How"........................................................5

      1.31   "Licensed Know-How"...............................................5

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       1.
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      1.32   "Licensed Mab"....................................................5

      1.33   "Licensed Patents"................................................5

      1.34   "Licensed Product"................................................5

      1.35   "Licensed Target".................................................5

      1.36   "Mab".............................................................5

      1.37   "Mab Criteria"....................................................5

      1.38   "Major Indication"................................................5

      1.39   "Major Market"....................................................5

      1.40   "Marketing Approval"..............................................6

      1.41   "Molecular Target"................................................6

      1.42   "Naked Mab Licensed Product"......................................6

      1.43   "[     *             ]"...........................................6

      1.44   "Non-Program Molecule"............................................6

      1.45   "Party" and "Parties".............................................6

      1.46   "Patents".........................................................6

      1.47   "Phase II Clinical Trials"........................................7

      1.48   "Phase III Clinical Trials".......................................7

      1.49   "Program Mab".....................................................7

      1.50   "Program Target"..................................................7

      1.51   "Raven"...........................................................7

      1.52   "Raven Technology"................................................7

      1.53   "Regulatory Authority"............................................7

      1.54   "Research"........................................................7

      1.55   "Research Plan"...................................................7

      1.56   "Research Term"...................................................7

      1.57   [     *             ].............................................7

      1.58   [     *             ].............................................7

      1.59   [     *             ].............................................8

      1.60   [     *             ].............................................8

      1.61   [     *             ].............................................8

      1.62   "RMC".............................................................8

      1.63   "Royalty Term"....................................................8

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       2.
<PAGE>

      1.64   "Selected Mab"....................................................8

      1.65   "Selected Target".................................................8

      1.66   "Selection Period"................................................8

      1.67   "Subsequent Research Period"......................................8

      1.68   "Term"............................................................8

      1.69   "Territory".......................................................8

      1.70   "Third Party".....................................................8

      1.71   "Valid Claim".....................................................8

ARTICLE 2       RESEARCH COLLABORATION MANAGEMENT..............................9

      2.1    Formation.........................................................9

      2.2    Functions and Powers of the RMC...................................9

      2.3    RMC Governance....................................................9

      2.4    RMC Access.......................................................10

ARTICLE 3       CONDUCT OF RESEARCH...........................................11

      3.1    General..........................................................11

      3.2    Screening and Evaluation of Mabs.................................11

      3.3    Candidate Mabs...................................................11

      3.4    Selected Mabs....................................................12

      3.5    ImmunoGen Mabs...................................................12

      3.6    Combination Products.............................................12

      3.7    Subsequent Research Period.......................................12

      3.8    Reporting........................................................13

      3.9    Other Research Programs..........................................13

ARTICLE 4       OWNERSHIP OF INTELLECTUAL PROPERTY AND LICENSE GRANTS.........13

      4.1    Ownership of Intellectual Property...............................13

      4.2    Screening Licenses...............................................13

      4.3    Development and Commercialization License........................14

      4.4    Sublicensing.....................................................14

      4.5    Right of Negotiation for Non-Program Molecules...................14

      4.6    [     *             ]............................................15

      4.7    Third Party Licenses.............................................15

ARTICLE 5       FINANCIAL TERMS...............................................16

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       3.
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      5.1    Technology Access Fees...........................................16

      5.2    Research Funding.................................................16

      5.3    Raven Research Performance Milestones............................16

      5.4    Milestone Payments...............................................16

      5.5    Royalty on Licensed Products.....................................17

      5.6    Royalty [   *    ] in Case of [    *    ] Third Parties..........18

      5.7    Payment of Royalties.............................................18

      5.8    Currency Conversion..............................................18

      5.9    Records and Audit................................................18

      5.10   Late Payments....................................................19

      5.11   Sublicensee Record Keeping Obligations...........................19

      5.12   Payment Currency and Method......................................19

ARTICLE 6       Development and Commercialization.............................19

      6.1    Development......................................................19

      6.2    Commercialization................................................19

      6.3    Subcontracting...................................................20

      6.4    General Development and Commercialization Diligence..............20

      6.5    Communications with Raven........................................21

      6.6    Compliance with Laws.............................................22

ARTICLE 7       PATENT PROSECUTION AND EXPENSES...............................22

      7.1    Prosecution of Patents...........................................22

      7.2    Infringement of Licensed Patents by Third Parties................23

      7.3    Infringement of Third Party's Rights.............................24

ARTICLE 8       REPRESENTATIONS AND WARRANTIES................................25

      8.1    Mutual Representations and Warranties............................25

      8.2    No Other Representations.........................................25

ARTICLE 9       INDEMNIFICATION...............................................25

      9.1    Indemnification by Raven.........................................26

      9.2    Indemnification by ImmunoGen.....................................26

      9.3    Mechanics........................................................26

      9.4    Insurance Coverage...............................................26

      9.5    Limitation of Liability..........................................27

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       4.
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ARTICLE 10      CONFIDENTIALITY...............................................27

      10.1   Confidential Information.........................................27

      10.2   Authorized Disclosure............................................27

      10.3   Publication......................................................28

      10.4   Terms of Agreement...............................................28

      10.5   Return of Confidential Information...............................28

      10.6   Publicity........................................................28

      10.7   Disclosure of Terms of Agreement.................................28

      10.8   Use of Names, Logos or Symbols...................................29

ARTICLE 11      TERM AND TERMINATION..........................................29

      11.1   Term.............................................................29

      11.2   Termination for Breach...........................................29

      11.3   Licenses upon Expiration.........................................29

      11.4   Product Rights upon Termination..................................29

      11.5   Accrued Rights and Obligations; Survival.........................30

ARTICLE 12      MISCELLANEOUS.................................................31

      12.1   Dispute Resolution...............................................31

      12.2   Governing Law....................................................31

      12.3   No Agency........................................................31

      12.4   Assignment.......................................................31

      12.5   Amendment........................................................32

      12.6   Covenant of Further Assurances...................................32

      12.7   Notices..........................................................32

      12.8   Rights in Bankruptcy.............................................33

      12.9   Force Majeure....................................................33

      12.10  Counterparts.....................................................33

      12.11  Captions.........................................................34

      12.12  Severability.....................................................34

      12.13  Cumulative Rights................................................34

      12.14  Waiver...........................................................34

      12.15  Entire Agreement.................................................34
</TABLE>

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       5.
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Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       6.
<PAGE>

      THIS COLLABORATIVE RESEARCH AND LICENSE AGREEMENT (the "Agreement") is
entered into and made effective as of March 28, 2001 (the "Effective Date") by
and between IMMUNOGEN, INC., a Massachusetts corporation having an address of
128 Sidney Street, Cambridge, MA 02139 ("ImmunoGen") and RAVEN BIOTECHNOLOGIES,
INC., a Delaware corporation having an address at 305 Old County Road, San
Carlos, CA 94070 ("Raven"). ImmunoGen and Raven are referred to herein each
individually as a "Party" and collectively as the "Parties."

                                    RECITALS

      WHEREAS, Raven has developed and has expertise in applying proprietary
immunization and other methods for generating Mabs against cell surface
proteins, and possesses certain proprietary cell lines or will acquire cell
lines which have cell surface proteins with relevance to ovarian cancer;

      WHEREAS, ImmunoGen is in the business of developing anti-cancer products
based upon monoclonal antibodies that bind selectively to tumor cells, many of
which products couple one of ImmunoGen's proprietary small molecule cytotoxic
compounds to such antibodies, and wishes to develop monoclonal antibody-based
products for the treatment of ovarian cancer and possibly other cancers;

      WHEREAS, the Parties wish to embark upon a collaborative research program
wherein Raven would apply its proprietary technologies to identify proteins
expressed on the surface of ovarian cancer cells, identify monoclonal antibodies
targeted against those proteins and perform certain screening and evaluation of
such antibodies, and ImmunoGen would perform various in vitro and in vivo
evaluations of selected antibodies as further specified herein; and

      WHEREAS, Raven wishes to grant ImmunoGen, and ImmunoGen wishes to accept,
a license to develop and commercialize certain of the antibodies produced and
evaluated by the Parties pursuant to such collaborative relationship and/or
other antibodies generated against the target proteins identified within the
collaboration and selected by ImmunoGen for development, and the Parties desire
for Raven to have all rights to those targets and antibodies coming out of the
collaborative research that ImmunoGen does not elect to further develop, all on
the terms set forth and as more specifically described herein.

       NOW, THEREFORE, in consideration of the foregoing premises and the
covenants and obligations set forth in this Agreement, the Parties hereby agree
as follows:

                                    AGREEMENT

                                    ARTICLE 1

                                   DEFINITIONS

      As used herein, the following terms shall have the following meanings:

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

<PAGE>

      1.1 "Affiliate" shall mean an entity that, directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common
control with Raven or ImmunoGen. A legal entity will be regarded as in "control"
of another legal entity if it directly or indirectly owns at least fifty percent
(50%) (or such lesser percentage which is the maximum allowed to be owned by a
foreign entity in a particular jurisdiction) of the voting stock or other
ownership interest of the owned entity, or if it directly or indirectly
possesses the ability to direct or cause the direction of the management and
policies of the owned entity by lawful means.

      1.2 "Agreement" shall have the meaning as defined in the first paragraph
above.

      1.3 "Antigen" shall mean any protein, peptide or carbohydrate or other
composition, and/or any fragment, peptide and/or epitope thereof which causes an
immune response that produces antibodies.

      1.4 "Candidate Designation Period" shall have the meaning as defined in
Section 3.3.

      1.5 "Candidate Mab" shall mean a Program Mab designated by ImmunoGen
pursuant to Section 3.3, and any Derivative thereof.

      1.6 "Candidate Target" shall mean any Molecular Target to which a
Candidate Mab binds.

      1.7 "Combination Product" shall mean any product that contains both a
Licensed Product and one or more compounds having independent therapeutic
activity in the Commercial Field.

      1.8 "Commercial Field" shall mean therapeutic products employing Mabs,
alone or in conjunction with other ingredients, to treat cancer in humans.

      1.9 "Commercially Reasonable Efforts" shall mean those efforts that are
required to perform an obligation to develop or commercialize a Licensed Product
in a sustained manner consistent with the those efforts that [ * ] as ImmunoGen,
but in any event [ * ] which are [ * ] in the market for [ * ] would typically
devote to products of similar nature, market potential, profit potential or
strategic value, in view of conditions prevailing at the time, and evaluated
taking into account all relevant factors, including without limitation the
competitiveness of the marketplace, the proprietary position of the product, the
relative potential safety and efficacy of the product, the regulatory
requirements involved in its development and commercialization, and the seeking
of Marketing Approval therefor, and other technical, legal scientific or medical
factors. With respect to a particular Licensed Product, such efforts include,
without limitation, the assignment of appropriate personnel to develop and
commercialize such product, the establishment of specific and meaningful goals
regarding the development and commercialization of such product and the
allocation of sufficient resources to achieve such goals.

      1.10 "Confidential Information" shall mean, subject to the limitations set
forth below, all Know-How and other confidential or proprietary information
received by a Party (a

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       2
<PAGE>

"Receiving Party") from the other Party (a "Disclosing Party") pursuant to this
Agreement, including, without limitation, any patent application or drawing, any
trade secret, information, invention, idea, samples, assay components, process,
formula, or test data relating to any research project, work in progress or
development, engineering, manufacturing, regulatory, marketing, financing or
personnel information relating to the Disclosing Party, its present or future
products, business plans, sales, suppliers, clients, customers, employees,
investors or business, whether in oral, written, graphic or electronic form.

      Confidential Information shall not include any information which, as shown
by competent proof:

            (a) is now, or hereafter becomes, through no act or failure to act
on the part of the Receiving Party in breach hereof, generally known or
available;

            (b) is known by the Receiving Party at the time of receiving such
information, as shown by contemporaneous written records, other than by virtue
of a prior confidential disclosure by the Disclosing Party;

            (c) is hereafter furnished to the Receiving Party by a Third Party,
as a matter of right and without restriction on disclosure by the Disclosing
Party;

            (d) is independently developed by the Receiving Party without use of
or reference to Confidential Information of the Disclosing Party, as shown by
independent, contemporaneous written records; or

            (e) is the subject of a prior, express, written permission to
disclose provided by the Disclosing Party.

      1.11 "Control", "Controls" and "Controlled" shall mean, with respect to a
particular item of information or intellectual property right, that the
applicable Party owns or has a license to such item or right and has the ability
to grant to the other Party access to and a license or sublicense (as
applicable) under such item or rights as provided for herein without violating
the terms of any agreement or other arrangement with any Third Party.

      1.12 [ * ] shall mean any [ * ], and all [ * ] thereof, whether produced
by a [ * ] or [ * ], which is, in any case, [ * ].

      1.13 [ * ] shall mean any [ * ] the [ * ] within which is [ * ] with a [ *
] or with any other molecule or compound that increases the [ * ] of the [ * ]
compared to a product the [ * ] within which is solely the [ * ].

      1.14 "Derivative" shall mean, with respect to a Mab, (i) any molecule or
compound that is derived from, or that is designed based upon, the amino acid
sequence of or nucleotide sequence coding for such Mab, in each case including
without limitation via the humanization or

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       3
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deimmunization of such Mab; and (ii) any molecule or compound that is or
contains any fragment or portion of such Mab or any molecule or compound
described in (i) above.

      1.15 "Effective Date" shall have the meaning as defined in the first
paragraph above.

      1.16 "Europe" shall mean all countries on the European continent, and
includes for purposes of this definition the entire territory of the Russian
Federation and Turkey.

      1.17 "FDA" shall mean the United States Food and Drug Administration, or
any successor thereto.

      1.18 "First Commercial Sale" shall mean, with respect to any particular
country and any particular Licensed Product, the first sale of such Licensed
Product in such country by ImmunoGen, or any of its Affiliates or sublicensees,
after Marketing Approvals have been granted in such country for such Licensed
Product.

      1.19 "[ * ]" shall have the meaning as defined in [ * ].

      1.20 "ImmunoGen" shall have the meaning as defined in the first paragraph
above.

      1.21 "ImmunoGen Background Technology" shall mean any Know-How that is,
and all Patents claiming inventions that are (a) useful or necessary to generate
and to screen Mabs binding to a Molecular Target Controlled by ImmunoGen, (b)
Controlled by ImmunoGen as of the Effective Date, and (c) disclosed by ImmunoGen
to Raven during the Term.

      1.22 "ImmunoGen Mab" shall mean any Mab, other than a Selected Mab,
generated by or for ImmunoGen against a Selected Target or which binds to a
Selected Target, and any Derivative thereof.

      1.23 "ImmunoGen Non-Program Technology" shall mean any invention, Know-How
or Patent which is developed or conceived solely by employees of or consultants
to ImmunoGen in the conduct of the Research which is not ImmunoGen Program
Technology.

      1.24 "ImmunoGen Program Technology" shall mean any invention, Know-How or
Patent developed or conceived solely by employees of or consultants to ImmunoGen
in the conduct of the Research and/or the exercise by ImmunoGen of any of the
licenses granted to ImmunoGen under Sections 4.2 or 4.3(a)(i) which is necessary
to practice the Raven Technology.

      1.25 "ImmunoGen Technology" shall mean, collectively, ImmunoGen Background
Technology, ImmunoGen Non-Program Technology and ImmunoGen Program Technology.

      1.26 "IND" shall mean an investigational new drug application filed with
the FDA (pursuant to 21 CFR ss.312.3) prior to beginning clinical trials in
humans or any comparable application filed with a Regulatory Authority of a
country other than the United States prior to beginning clinical trials in
humans in that country. If no application is required to be filed prior

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       4
<PAGE>

to commencing human clinical trial in a particular regulatory jurisdiction, an
IND is deemed to have been filed upon the administration of the first dose of a
Licensed Product to the first human.

      1.27 "Initial Research Term" shall mean the time period beginning on the
Effective Date and ending on the [ * ] anniversary of the Effective Date.

      1.28 "Joint Know-How" shall mean any Know-How (a) jointly invented by both
ImmunoGen and Raven in the conduct of the Research, (b) invented by Raven in the
conduct of the Research as a direct result of its use of ImmunoGen Technology or
(c) invented by ImmunoGen in the conduct of the Research as a direct result of
its use of Raven Technology.

      1.29 "Joint Patents" shall mean Patents claiming inventions that are Joint
Know-How.

      1.30 "Know-How" shall mean all proprietary inventions; discoveries;
technology; trade secrets; data; methods; techniques; clinical and preclinical
results; physical, chemical or biological material; cell lines; know-how or
other information.

      1.31 "Licensed Know-How" shall mean all Know-How Controlled by Raven
during the Term and disclosed to ImmunoGen, including, without limitation,
Raven's interest in any Joint Know-How, that is, in each case, useful or
necessary to develop and commercialize Licensed Products.

      1.32 "Licensed Mab" shall mean a Selected Mab or an ImmunoGen Mab and all
Derivatives of such Selected Mab or ImmunoGen Mab.

      1.33 "Licensed Patents" shall mean (a) all Patents Controlled by Raven
during the Term and (b) Raven's interest in any Joint Patents, to the extent
that they contain a Valid Claim which would, but for the license granted
hereunder, be infringed in any country in the Territory by the manufacture, or
by the use or sale of a Licensed Product or a Licensed Target.

      1.34 "Licensed Product" shall mean any pharmaceutical product containing a
Licensed Mab.

      1.35 "Licensed Target" shall mean a Molecular Target to which a Licensed
Mab binds.

      1.36 "Mab" shall mean a monoclonal antibody with binding affinity for an
Antigen.

      1.37 "Mab Criteria" shall mean those criteria defined in Appendix 1 of the
Research Plan.

      1.38 "Major Indication" shall mean any one of [ * ].

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       5
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      1.39 "Major Market" shall mean the United States, Germany, the United
Kingdom, France, Italy or Spain or, if an application for Regulatory Approval is
filed through the centralized procedure, the European Union.

      1.40 "Marketing Approval" shall mean the act of a Regulatory Authority
necessary for the marketing and sale of Licensed Products in a regulatory
jurisdiction in the Territory in compliance with applicable laws.

      1.41 "Molecular Target" shall mean any Antigen to which a Mab binds.

      1.42 "Naked Mab Licensed Product" shall mean any Licensed Product that is
not a Cytotoxin-Coupled Licensed Product.

            1.43 "[ * ]" shall mean the [ * ] for the [ * ] of [ * ] in [ * ]
form made by [ * ], as applicable, [ * ] the following [ * ]:

            (a) [ * ] or [ * ] by reason of [ * ] or [ * ];

            (b) [ * ] upon or measured by the [ * ];

            (c) [ * ] of [ * ] for [ * ], and [ * ] and [ * ], including [ * ];
and

[ * ] granted to [ * ], including [ * ] to [ * ] or [ * ], if applicable;
provided, however that in the case of [ * ], similar programs or [ * ] on [ * ]
of [ * ], all [ * ] and the like shall be [ * ] to the [* ] of such [ * ] when [
* ].

[ * ] received by [ * ] for the [ * ] among [ * ] for [ * ] shall not be [ * ]
hereunder.

For purposes of [ * ] in accordance with the foregoing in this [ * ], use of [ *
] or other [ * ], or [ * ] of [ * ] as part of a [ * ] at [ * ] in the industry
shall [ * ].

      1.44 "Non-Program Molecule" shall have the meaning as defined in Section
4.5.

      1.45 "Party" and "Parties" shall have the meaning as defined in the first
paragraph above.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       6
<PAGE>

      1.46 "Patents" shall mean (i) United States issued patents,
re-examinations, reissues, renewals, extensions, patent term restorations, (ii)
any foreign counterparts of each of the foregoing; and (iii) pending
applications for any of the foregoing.

      1.47 "Phase II Clinical Trials" shall mean, as to a particular Licensed
Product, those trials on sufficient numbers of patients that are designed to
establish the preliminary safety, dosage and biological activity of such
Licensed Product for its intended use, and to define warnings, precautions and
adverse reactions that are associated with such Licensed Product in the dosage
range to be prescribed, in any case to generate sufficient data to commence a
Phase III Clinical Trial of such Licensed Product.

      1.48 "Phase III Clinical Trials" shall mean, as to a particular Licensed
Product, a clinical trial (or set of clinical trials) usually initiated after
completion of a Phase II or IIa Clinical Trial and after such date as the FDA
(or equivalent Regulatory Agency) has indicated that the Party conducting the
trial may reasonably continue such trials on sufficient numbers of patients to
establish definitively that such Licensed Product is safe and efficacious for
its intended use, and to define warnings, precautions and adverse reactions that
are associated with such Licensed Product in the dosage range to be prescribed,
and to support Marketing Approval of such Licensed Product or label expansion of
such Licensed Product.

      1.49 "Program Mab" shall mean a Mab generated by Raven during the Research
Term that meets the Mab Criteria and any Derivative thereof.

      1.50 "Program Target" shall mean a Molecular Target to which a Program Mab
binds.

      1.51 "Raven" shall have the meaning as defined in the first paragraph
above.

      1.52 "Raven Technology" shall mean any Know-How that is and all Patents
claiming inventions that are (a) useful or necessary to generate and to screen
Mabs binding to a Molecular Target, including without limitation methods of
immunization, methods for maintaining and handling cell lines expressing Mabs,
production and freezing media, and antibody screening facilitation tools
including without limitation CellArray(TM) (b) Controlled by Raven as of the
Effective Date and during the Term, and (c) disclosed by Raven to ImmunoGen
during the Term.

      1.53 "Regulatory Authority" shall mean a supranational, regional, federal,
state, provincial or other local regulatory agency, department, bureau or other
governmental authority with jurisdiction over Marketing Approvals.

      1.54 "Research" shall have the meaning as defined in Section 3.1.

      1.55 "Research Plan" shall mean the research plan attached hereto as
Exhibit A, as it may be updated from time to time by the Parties by mutual
written agreement.

      1.56 "Research Term" shall mean the Initial Research Term together with
any Subsequent Research Period to which the Parties may agree pursuant to the
mechanism of Section 3.7.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       7
<PAGE>

      1.57 [ * ] shall have the meaning as defined in Section 6.4(a)(ii).

      1.58 [ * ] shall have the meaning as defined in Section 11.4.

      1.59 [ * ] shall have the meaning as defined in Section 11.4(d).

      1.60 [ * ] shall have the meaning as defined in Section 11.4(b).

      1.61 [ * ] shall have the meaning as defined in Section 6.4(a)(ii)(A).

      1.62 "RMC" shall have the meaning as defined in Section 2.1.

      1.63 "Royalty Term" shall mean, with respect to a particular Licensed
Product and country, the [ * ] of (i) the period of time commencing on the First
Commercial Sale of a Licensed Product or Reverted Product, as the case may be,
in a country and ending upon the date of expiration of the last to expire of the
Licensed Patents containing a Valid Claim which would, but for the license
granted hereunder, be infringed by the manufacture, or by the use or sale in
such country, of such Licensed Product or Reverted Product, as the case may be,
and (ii) [ * ] from First Commercial Sale in such country of such Licensed
Product or Reverted Product, as the case may be.

      1.64 "Selected Mab" shall mean a Candidate Mab designated by ImmunoGen
pursuant to Section 3.4, and any Derivative thereof.

      1.65 "Selected Target" shall mean a Molecular Target to which a Selected
Mab binds.

      1.66 "Selection Period" shall have the meaning as defined in Section 3.4.

      1.67 "Subsequent Research Period" shall mean a [ * ] period not part of
the Initial Research Term into which the Parties may agree to extend their
collaborative research pursuant to Section 3.7.

      1.68 "Term" shall mean the term of this Agreement as further described in
Section 11.1.

      1.69 "Territory" shall mean Canada, Mexico, the United States and all of
Europe.

      1.70 "Third Party" shall mean any entity or person other than Raven,
ImmunoGen, or an Affiliate of either of them.

      1.71 "Valid Claim" shall mean a claim (a) that has been allowed or is
contained in an issued patent, which claim has not lapsed, been canceled, or
become abandoned and which claim has not been declared invalid or unenforceable
by an unappealable court of competent jurisdiction, or (b) of a patent
application that has been pending for less than [ * ] from the date it was
filed.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       8
<PAGE>

                                   ARTICLE 2

                        RESEARCH COLLABORATION MANAGEMENT

      2.1 Formation. Within [ * ] after the Effective Date, the Parties will
establish a research management committee to oversee and coordinate the Parties'
research hereunder during the Research Term, composed of an equal number of
representatives of each Party and having the powers enumerated below in this
Article 2 (the "RMC").

      2.2 Functions and Powers of the RMC. During the Research Term, the RMC
will determine the overall strategy and direction of the Research, coordinate
and oversee the activities of the Parties in the performance of the Research.
The RMC will have no power to amend, modify or waive compliance with this
Agreement and will have only such powers as are specifically delegated to it
hereunder.

      2.3 RMC Governance.

            (a) Membership. The RMC shall consist of three (3) representatives
of each Party. ImmunoGen shall select one (1) person appointed by it to the RMC
to serve as chairperson to the RMC. Said representatives have initially been
designated by the Parties as follows:

                        For ImmunoGen: [ * ]
                                       [ * ]
                                       [ * ]

                        For Raven:     [ * ]
                                       [ * ]
                                       [ * ]

Raven shall select one (1) person appointed by it to the RMC to serve as
assistant chairperson to the RMC. Either Party may designate substitutes for its
RMC representatives to participate if one or more of such Party's designated
representatives is unable to be present at a meeting. A Party may replace its
representatives serving on the RMC from time to time by written notice to the
other Party specifying the prior representative(s) to be replaced and the
replacement(s) therefor. The RMC will have the power to form subcommittees or
working groups with appropriate representation from ImmunoGen and Raven, their
Affiliates, and Third Parties acceptable to both Parties. The RMC chairperson
shall be responsible for preparing and issuing minutes of each meeting within
thirty (30) days thereafter, which minutes shall not be effective unless and
until ratified by the RMC's assistant chairperson to the RMC.

            (b) Meetings. During the Research Term, the RMC shall hold meetings
at such times as it elects to do so, but in no event shall such meetings be held
less frequently than once every three (3) months during the Research Term. The
RMC shall meet alternately at ImmunoGen's facilities in Cambridge, Massachusetts
and Raven's facilities in San Carlos, California, or at such locations as the
Parties may otherwise agree. With the consent of the representatives of each
Party serving on the RMC, other representatives of each Party may attend

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       9
<PAGE>

meetings of the RMC as nonvoting participants. Meetings of the RMC may be held
by audio or video teleconference with the consent of each Party, provided that
at least two (2) meetings per year shall be held in person. Each Party shall be
responsible for all of its own expenses of participating in the RMC.

            (c) Decision-Making Process; Limited Authority.

                  (i) In performing its functions and exercising its powers
under this Agreement, all decisions by the RMC will be made, in person or by
proxy, with unanimous consent of all members of the RMC. In the absence of
consensus of RMC members with respect to any matter before the RMC, such matter
shall be deemed not to have been approved or resolved by the RMC.

                  (ii) The RMC members will attempt to resolve any disagreement
among them within the RMC in accordance with the goal of conducting the Research
as efficiently and effectively as possible. If the RMC cannot reach agreement as
to any matter that it is empowered to address, either Party may refer the
dispute to Raven's CEO and ImmunoGen's CEO for resolution in accordance with
Section 12.1.

            (d) Specific Responsibilities. In addition to its overall
responsibility for overseeing the Parties' activities under this Agreement,
during the Research Term, the RMC shall in particular:

                  (i) once notified by either Party pursuant to Section 3.7,
that such Party wishes to extend the Parties' collaborative research activities
into a Subsequent Research Period, discuss and agree upon a budget and research
plan for such potential Subsequent Research Period to present to the Parties for
their consideration;

                  (ii) discuss any Third Party intellectual property issues that
may arise relating to the Research and/or any Licensed Product;

                  (iii) review and monitor the progress of the Research;

                  (iv) discuss and approve any updates and amendments to the
Research Plan proposed by either of the Parties; and

                  (v) coordinate and monitor publication of research results
obtained from and the exchange of information and materials that relate to the
Research Program during the Research Term and for [ * ] thereafter.

            (e) Meeting Agendas. Each Party will disclose to the other Party its
final agenda items along with appropriate related information at least five (5)
business days in advance of each meeting of the RMC.

      2.4 RMC Access. During the Research Term, Raven and ImmunoGen will provide
the RMC and its authorized representatives with reasonable access during regular
business hours to all records and documents of the respective Parties specific
to the Research that the RMC may

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       10
<PAGE>

reasonably require in order to perform its obligations hereunder, subject to any
bona fide obligations of confidentiality to a Third Party.

                                   ARTICLE 3

                               CONDUCT OF RESEARCH

      3.1 General. During the Initial Research Term, the Parties will conduct a
program of research in accordance with the Research Plan (such research, the
"Research"). As more specifically described below in this Article 3, each Party
will carry out its responsibilities as outlined in the Research Plan and as
directed by the RMC diligently and in good scientific manner in accordance with
accepted laboratory practices and in compliance with any and all laws and
regulations applicable to the jurisdiction in which those activities take place.

      3.2 Screening and Evaluation of Mabs.

            (a) Raven shall generate and evaluate Mabs and Molecular Targets
according to the Research Plan with the goal of identifying Program Mabs and
Program Targets. Raven shall report promptly the results of the evaluations
pursuant to this Section 3.2(a) to the RMC on an on-going basis, which results
shall include the data and information demonstrating that a Program Mab meets
the Mab Criteria. In addition, at the request of the RMC, Raven will provide the
RMC with such additional data as the RMC shall reasonably request. Raven may
delay reporting data and information in accordance with the foregoing in this
Section 3.2(a) for a reasonable period of time to enable it to file patent
applications claiming such Molecular Targets and Mabs prior to such reporting;
provided that it hereby agrees to file such patents as promptly as is reasonably
practicable.

            (b) All data and results generated by Raven pursuant to this Section
3.2 shall be deemed to be Know-How of Raven.

      3.3 Candidate Mabs.

            (a) Within [ * ] of the RMC receiving the results reported by Raven
pursuant to Section 3.2 with respect to a particular Program Mab or (as
applicable) its receipt of the requested additional data ("Candidate Designation
Period"), ImmunoGen may designate, by written notice to Raven, such Program Mab
to be a Candidate Mab for further evaluation by ImmunoGen. ImmunoGen may choose
up to [ * ] such [ * ] and corresponding [ * ] for further evaluation, except
that ImmunoGen may not choose as [ * ] or [ * ] or [ * ] as part of an [ * ]
which was [ * ] prior to the [ * ].

            (b) ImmunoGen shall perform evaluations of each Candidate Mab at
least to the extent provided in the Research Plan and promptly report the
results thereof to the RMC. In connection therewith, for each Candidate Mab,
Raven shall provide ImmunoGen with (i) quantities of such Candidate Mab
sufficient for ImmunoGen to carry out its evaluation of such Candidate Mab as
called for in the Research Plan, or, alternatively, (ii) the means for

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       11
<PAGE>

ImmunoGen to generate sufficient quantities of such Candidate Mab, for example,
a cell line expressing such Candidate Mab.

            (c) If ImmunoGen reasonably determines, based upon the data
resulting from screening and evaluation of the Program Mabs conducted by
ImmunoGen, not to designate as Candidate Mabs any of the Program Mabs resulting
from the [ * ] immunizations and fusions performed by Raven in the course of the
Research Program, then it may request in writing that Raven perform, and Raven
shall perform, up to [ * ] additional immunizations and fusions to produce
potential Program Mabs. Raven shall report the results of such additional work
as provided in Section 3.2. Thereafter, [ * ] under the [ * ] even if [ * ] do
not [ * ] or if [ * ] none of the [ * ] .

      3.4 Selected Mabs. At any time on or before the [ * ] of (i) [ * ] after
the expiration of the Research Term and (ii) [ * ] after reporting to the RMC
the results of secondary screening of the Mabs produced by the last immunization
and fusion in accordance with the Research Plan (the "Selection Period"),
ImmunoGen may designate, by written notice to Raven, up to [ * ] Candidate Mabs
to be Selected Mabs which ImmunoGen has the right to develop and commercialize
as provided in this Agreement. Notwithstanding the foregoing, in the event that
(i) Raven has not performed its supply obligations under Section 3.3(b)(i)
hereof with respect to any Candidate Mab, then the Selection Period applicable
to such Candidate Mab shall be extended for an additional period of time that
Raven or ImmunoGen requires to generate such quantities of such Candidate Mab
and (ii) if neither Raven nor ImmunoGen are able to generate the quantities of
Candidate Mab contemplated in Section 3.3(b), or neither Raven nor ImmunoGen
have identified the Antigens targeted by the Candidate Mab, then the RMC will
discuss the impact of the same on the Selection Period applicable to such
Candidate Mabs.

      3.5 ImmunoGen Mabs. ImmunoGen shall have the right to use the Selected
Targets to identify ImmunoGen Mabs. ImmunoGen shall notify Raven promptly upon
deciding to proceed with preclinical development of any ImmunoGen Mab.
Commencing on the date that ImmunoGen notifies Raven of the discovery of an
ImmunoGen Mab pursuant to this Section 3.5, ImmunoGen shall include descriptions
of its research and development activities with respect to such ImmunoGen Mab in
its regular development reports pursuant to Section 6.5.

      3.6 Combination Products. If ImmunoGen desires to develop a Combination
Product, it shall inform Raven thereof in writing. Upon receipt of such notice,
the Parties shall meet to discuss and agree on any adjustments to the
calculation of Net Sales or to the royalty rates as may be appropriate under the
circumstances.

      3.7 Subsequent Research Period. Either Party may propose to extend the
Research Term into a Subsequent Research Period by submitting to the RMC a
written proposal for additional collaborative research to be conducted by the
Parties during such Subsequent Research Period. To the extent desired by the
Parties, the Parties may discuss the proposal via their participation in the
RMC, and the RMC may prepare for the Parties' consideration a written

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       12
<PAGE>

proposal incorporating the Parties' comments in the RMC's discussions.
Notwithstanding the foregoing, neither Party shall be required to agree to
extend the Parties' collaborative research hereunder to cover additional subject
matter beyond that which is described in the Research Plan as attached hereto as
of the Effective Date or to extend the Research Term into a Subsequent Research
Period.

      3.8 Reporting. Subject to Section 3.2(a), during the Research Term
ImmunoGen and Raven will prepare and provide to each other quarterly reports
summarizing the status of all Mabs and Molecular Targets that are subject to the
Research.

      3.9 Other Research Programs. Beginning upon [ * ] and continuing through [
* ], Raven shall not [ * ] any [ * ] with [ * ] directed towards [ * ].

                                   ARTICLE 4

              OWNERSHIP OF INTELLECTUAL PROPERTY AND LICENSE GRANTS

      4.1 Ownership of Intellectual Property.

            (a) Subject to the rights and licenses granted to ImmunoGen the
other terms in this Agreement, Raven shall own all Raven Technology and all
Know-How and Patents generated or conceived solely by employees of or
consultants to Raven in the performance of this Agreement, except to the extent
that such Know-How and Patents fall within the definition of Joint Know-How and
Joint Patents.

            (b) Subject to the rights and licenses granted to Raven and the
other terms in this Agreement, ImmunoGen shall own all ImmunoGen Technology and
all Know-How and Patents generated or conceived solely by employees of or
consultants to ImmunoGen in the performance of this Agreement, except to the
extent that such Know-How and Patents fall within the definition of Joint
Know-How and Joint Patents.

            (c) Subject to the rights and licenses granted to Raven and
ImmunoGen and the other terms in this Agreement, any Joint Know-How and Joint
Patents shall be owned jointly, with each Party having an undivided 50%
ownership interest in such Joint Know-How and Joint Patents, with the right to
practice and to grant licenses under such Joint Know-How and Joint Patents
without obligation to account to the other Party.

      4.2 Screening Licenses.

            (a) Raven hereby grants to ImmunoGen a non-exclusive, royalty-free,
fully paid-up license under the Raven Technology and Raven's interest in any
Joint Know-How in the United States solely as necessary to carry out the
Research hereunder during the Research Term. Such license shall not be
sublicensable.

            (b) ImmunoGen hereby grants to Raven a non-exclusive, royalty-free,
fully paid-up license under the ImmunoGen Technology and ImmunoGen's interest in
any Joint

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       13
<PAGE>

Know-How in the United States solely as necessary to carry out the Research
hereunder during the Research Term. Such license shall not be sublicensable.

      4.3 Development and Commercialization License.

            (a) Subject to the terms of this Agreement, Raven hereby grants
ImmunoGen an exclusive, royalty-bearing license, with the right to sublicense
solely as provided in Section 4.4, under the Licensed Know-How and the Licensed
Patents to (i) generate and screen ImmunoGen Mabs; and (ii) create Derivatives
of Selected Mabs and ImmunoGen Mabs, and (iii) develop, make, have made, use,
sell, offer for sale, have sold, import and have imported Licensed Products for
use in the Commercial Field in the Territory during the Term.

            (b) Subject to the terms of this Agreement, Raven hereby grants
ImmunoGen an exclusive, royalty-bearing license, with the right to sublicense
solely as provided in Section 4.4, under the Licensed Know-How and the Licensed
Patents to use the Selected Targets to (i) generate and screen ImmunoGen Mabs,
and (ii) develop Licensed Mabs in the Commercial Field in the Territory during
the Term.

            (c) ImmunoGen shall not use for any purpose or perform any
activities with the Licensed Mabs or Selected Targets other than as expressly
licensed pursuant to this Section 4.3 above.

      4.4 Sublicensing. The licenses granted to ImmunoGen by Raven pursuant to
Section 4.3 shall be sublicensable by ImmunoGen; provided that any sublicense
shall conform to the terms of this Agreement; and provided further that the
granting of any such sublicense shall not relieve ImmunoGen of any of its
responsibilities hereunder.

      4.5 Right of Negotiation for Non-Program Molecules.

            (a) If Raven, during the Research Term, decides that [ * ] the [ * ]
that (i) satisfies [ * ] as its [ * ] and (ii) is discovered [ * ] but not in
the course of [ * ], it shall promptly notify ImmunoGen in writing.

            (b) If, within [ * ] days after its receipt of such notice,
ImmunoGen provides written notice (the "Negotiation Notice") to Raven of its
desire to commence negotiations with Raven regarding the terms upon which Raven
would grant ImmunoGen a license to develop and commercialize a particular
Non-Program Molecule, then the Parties shall negotiate such terms in good faith
for a period of [ * ] days following the date of the Negotiation Notice, as such
period may be extended by mutual written agreement of the Parties. If the
Parties are unable to agree to such terms within such [ * ] day period, as such
period may be extended by mutual written agreement of the Parties, then Raven
shall thereafter be free to itself commercialize, or to contract with a Third
Party to commercialize, such Non-Program Molecule without further obligation
relating thereto to ImmunoGen.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       14
<PAGE>

            (c) This Section 4.5 shall not apply to any Non-Program Molecules
discovered in the course of research undertaken by Raven with or for a Third
Party and with respect to which Raven has an obligation to such Third Party
which would conflict with negotiating or granting a license relating to such
Non-Program Molecule to ImmunoGen. Except as provided in Section 3.9, nothing in
this Agreement shall be construed to limit Raven's right to enter into
agreements with Third Parties for the discovery, development and
commercialization of Mabs meeting the Mab Criteria or Molecular Targets.

      4.6 [ * ]. In recognition of the fact that the rights that are granted to
ImmunoGen pursuant to the licenses of Section 4.2(a) and 4.3 are rights to use
technology that is central to Raven's intellectual property portfolio and
proprietary position, [ * ] hereby [ * ] a [ * ] under all [ * ] to [ * ] shall
have [ * ] and [ * ] of [ * ] under the [ * ] it pursuant to [ * ].

      4.7 Third Party Licenses.

            (a) ImmunoGen shall be responsible for obtaining a license under any
intellectual property it deems necessary or desirable for the humanization or
other alteration of any Licensed Mab, and shall solely bear the costs of any
such license.

            (b) Either Party may propose to the RMC that ImmunoGen seek a
license under Third Party intellectual property not described by Section 4.7(a),
and [ * ] will discuss whether [ * ] is [ * ] to avoid successful Third Party
claims of patent infringement or trade secret misappropriation in relation to
the manufacture, use, sale, offer for sale or importation of any Licensed
Product (a "Necessary" license). If [ * ] that a particular license is
Necessary, then ImmunoGen shall seek such license and be [ * ] thereunder [ * ]
Raven hereunder to the extent permitted pursuant to Section 5.6. If [ * ]
reaches [ * ] that [ * ] is not [ * ] shall remain [ * ] but [ * ] to [ * ] due
[ * ] against [ * ] hereunder. In all other cases, either Party may, upon notice
to the other Party, submit the matter of whether a license is Necessary to an
independent patent counsel reasonably acceptable to both Parties to render a
decision as to whether such license is Necessary. If such patent counsel
determines that the license is Necessary, ImmunoGen shall be [ * ] thereunder [
* ] Raven to the extent provided pursuant to Section 5.6; in all other
circumstances such payments shall [ * ] Raven hereunder.

            (c) ImmunoGen shall be free at any time to seek licenses under Third
Party intellectual property to cover its or its Affiliate's or sublicensee's
development, manufacture, use, sale, offer for sale or importation of Licensed
Products hereunder (whether or not described elsewhere in this Section 4.7), and
shall solely bear the costs of all such licenses except as provided in Section
4.7(b).

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       15
<PAGE>

                                   ARTICLE 5

                                 FINANCIAL TERMS

      5.1 Technology Access Fees.

            (a) ImmunoGen shall pay Raven [ * ] in cash within [ * ] after [ *
].

            (b) ImmunoGen shall pay Raven [ * ] in cash within [ * ] after the
beginning of any [ * ].

      5.2 Research Funding. In support of the Research to be conducted during
the Initial Research Term, ImmunoGen shall pay Raven a total of [ * ], the first
such payment being due within [ * ] after the Effective Date, and each other
such payment being due on or before [ * ] anniversary of [ * ] during the [ * ].

      5.3 Raven Research Performance Milestones. ImmunoGen shall pay Raven [ * ]
within [ * ] of [ * ] in accordance with [ * ]. For each [ * ] that ImmunoGen
designates pursuant to [ * ], ImmunoGen shall pay Raven [ * ] within [ * ] of
such designation.

      5.4 Milestone Payments.

            (a) [ * ]. With respect to [ * ] and [ * ] is developed to [ * ],
ImmunoGen shall pay Raven the milestone payments set forth below:

   Milestone Event     Milestone Payment Amount
   -----------------   ------------------------
   1. [ * ]                     [ * ]

   2  [ * ]                     [ * ]

   3. [ * ]                     [ * ]

   4. [ * ]                     [ * ]

   5. [ * ]                     [ * ]

            (b) [ * ]. With respect to each [ * ] and [ * ], ImmunoGen shall pay
Raven the milestone payments set forth below:

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       16
<PAGE>

   Milestone Event     Milestone Payment Amount
   ---------------     ------------------------
   1. [ * ]                     [ * ]

   2  [ * ]                     [ * ]

   3. [ * ]                     [ * ]

   4. [ * ]                     [ * ]

   5. [ * ]                     [ * ]

            (c) Notification of Milestones. ImmunoGen shall promptly notify
Raven in writing of its achievement of each event referenced under the heading
"Milestone Event" set forth in Section 5.4(a) and (b).

            (d) Payment of Milestones. ImmunoGen shall pay Raven the milestone
payments as set forth in this [ * ] within [ * ] after the achievement of the
corresponding milestone. Such milestone payments shall be nonrefundable and
noncreditable against royalties or other payments hereunder.

            (e) Major Indications. For the avoidance of doubt, it is hereby
acknowledged and agreed that a separate milestone payment will be made for each
of the foregoing milestone events ImmunoGen or its Affiliates or sublicensees
hereunder achieves with a given Licensed Product, the first time each such event
is achieved with respect to each Major Indication such Licensed Product is
developed to treat.

      5.5 Royalty on Licensed Products. In consideration of the grant of the
license by Raven hereunder, and subject to the other terms of this Agreement
(including the remainder of this Section 5), commencing on [ * ] of [ * ] during
the Royalty Term applicable thereto, ImmunoGen shall pay Raven the following
royalties based on [ * ] ImmunoGen, its Affiliates or sublicensees on an
incremental basis, according to the following rates:

              For [ * ]                              Royalty Rate
 in any Calendar Year During the Term                   [ * ]
 ------------------------------------                ------------
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]

          For [ * ] of [ * ]                         Royalty Rate
 in any Calendar Year During the Term                   [ * ]
 ------------------------------------                ------------
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]
                [ * ]                                   [ * ]

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       17
<PAGE>

      As an example, for the avoidance of doubt, in the event that ImmunoGen has
[ * ] equal [ * ] the [ * ] would be [ * ] calculated as follows: [ * ] , [ * ]
and [ * ] [ * ] .

      Upon expiration of the Royalty Term in a country with respect to a
Licensed Product, ImmunoGen shall thereafter have a paid-up, royalty-free,
non-exclusive license under any and all Know-How and Patents of Raven covering
such Licensed Patent for purposes of the manufacture, use, sale or import
thereof.

      5.6 Royalty [ * ] in Case of [ * ] Third Parties. ImmunoGen [ * ] owed to
Raven for sales of a particular Licensed Product, [ * ], on a country-by-country
basis, [ * ] by ImmunoGen [ * ] in respect of the Net Sales of such Licensed
Product under licenses entered into in accordance with [ * ]; provided however,
that in no event shall [ * ] paid to Raven [ * ] pursuant to this [ * ] by an
amount that is [ * ] of [ * ] of such Licensed Product if such [ * ] is a [ * ]
of [ * ] of such [ * ] if such [ * ] is a [ * ].

      5.7 Payment of Royalties. ImmunoGen shall pay [ * ] owed pursuant to [ * ]
within [ * ] after the end of each calendar quarter in which [ * ] are
generated. Such payments shall be accompanied by a statement showing the [ * ]
of each Licensed Product by ImmunoGen, its Affiliates or any of their
sublicensees in each country, the applicable royalty rate for such Licensed
Product, and a calculation of the amount of royalty due, including any offsets
and deductions.

      5.8 Currency Conversion. The [ * ] used for computing the royalties
payable to Raven by ImmunoGen shall be computed in U.S. dollars. For purposes of
determining the amount of royalties due, the amount of [ * ] in any foreign
currency shall be computed by converting such amount into U.S. dollars at the
prevailing commercial rate of exchange for purchasing dollars with such foreign
currency as published in the Wall Street Journal for the close of the last
business day of the calendar quarter for which the relevant royalty payment is
to be made by ImmunoGen.

      5.9 Records and Audit. ImmunoGen shall keep complete and accurate records
pertaining to the sale or other disposition of the Licensed Product and of the
royalty payments and other amounts payable under this Agreement [ * ] [ * ].
Raven shall have the right to [ * ], [ * ] to [ * ] to confirm [ * ] for the
preceding year. Such [ * ] may be exercised no more often than once a year,
within [ * ] after the calendar quarter to which [ * ], upon reasonable notice
to ImmunoGen and during normal business hours. Raven will [ * ] [ * ] unless [ *
] an [ * ] of [ * ] from the amount of [ * ]. In such case, ImmunoGen shall [ *
] of such [ * ]. The terms of this Section 5.10 shall survive any termination or
expiration or termination of this Agreement for a period of [ * ].

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       18
<PAGE>

      5.10 Late Payments. Any amounts not paid by ImmunoGen when due under this
Agreement shall be subject to interest from and including the date payment is
due through and including the date upon which Raven has collected immediately
available funds in an account designated by Raven. Such interest shall (a) with
respect to royalty payments, be at a rate equal to [ * ], and (b) with respect
to all other payments due hereunder, be at an annual rate equal to the sum of [
* ] plus the prime rate of interest quoted in the Money Rates section of The
Wall Street Journal (online edition found at http://www.interactive.wsj.com),
or, if lower, the highest rate permitted under applicable law.

      5.11 Sublicensee Record Keeping Obligations. Any sublicenses granting the
right to sell Licensed Product shall include obligations for the sublicensee to
account for and report its Net Sales of Licensed Products, and provide that
Raven shall have [ * ] corresponding to this Article 5 for any payment report
received by ImmunoGen from any ImmunoGen sublicensee on the same basis as if the
information contained in such report were Net Sales of Licensed Products by
ImmunoGen, and ImmunoGen shall [ * ] as if the [ * ] of the [ * ] were [ * ].

      5.12 Payment Currency and Method. All payments due to Raven under this
Agreement shall be made in U.S. dollars by wire transfer in immediately
available funds to a U.S. account designated by Raven, or by other mutually
agreed upon means.

                                   ARTICLE 6

                        DEVELOPMENT AND COMMERCIALIZATION

      6.1 Development. Beginning upon the designation pursuant to [ * ] of each
Candidate Mab and upon the initiation of work aimed at discovery of each
ImmunoGen Mab, ImmunoGen shall be responsible, at its sole expense, for all
further research and development of such Candidate Mabs or ImmunoGen Mabs and
Licensed Products based upon such Candidate Mabs or ImmunoGen Mabs, including,
without limitation, the conduct of any pre-clinical and clinical development of
such Licensed Products and making all regulatory filings necessary to obtain
Marketing Approvals of such Licensed Products in the Territory. ImmunoGen may
carry out such development in its sole discretion except as provided in [ * ]
and [ * ].

      6.2 Commercialization. ImmunoGen shall be responsible, at its sole
expense, for all commercialization (including marketing, promotion, sales and
distribution activities) of Licensed Products in the Territory beginning on the
Effective Date and may carry out such efforts in its sole discretion, except as
provided in [ * ] and [ * ].

      6.3 Subcontracting. Raven hereby acknowledges and agrees that ImmunoGen
shall have the right to subcontract with any Third Party to perform ImmunoGen's
obligations pursuant to Sections 6.1 and 6.2 hereof on behalf of ImmunoGen;
provided, however, that entering into any such subcontract, or the failure by
ImmunoGen's subcontractor to perform under such a subcontract, shall not relieve
ImmunoGen of its obligations hereunder.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       19
<PAGE>

      6.4 General Development and Commercialization Diligence.

            (a) Diligence in Selection of Mabs and Commencement of Development.

                  (i) ImmunoGen shall designate Program Mabs as Candidate Mabs
within the time period specified in [ * ], and designate Candidate Mabs as
Selected Mabs within the time period specified in [ * ]. Further, within [ * ]
after designating a Selected Mab, ImmunoGen shall (A) begin research and
development activities designed to humanize at least one Selected Mab for the
Selected Target associated with such Selected Mab or otherwise enable the filing
of an IND for a Licensed Product containing such a Selected Mab or (B) perform a
first immunization in a system designed to generate fully human ImmunoGen Mabs
that bind to the Selected Target for such Selected Mab.

                  (ii)

                        (A) Raven shall have the right, by written notice to
ImmunoGen, to [ * ] any [ * ] or [ * ] as a [ * ], and its [ * ] as a [ * ], if
ImmunoGen does not comply with the provisions of [ * ] with respect to such [ *
] or [ * ].

                        (B) ImmunoGen hereby grants Raven, under all Know-How
and Patents Controlled by ImmunoGen as of the date of such designation that (i)
were employed or developed by ImmunoGen in connection with the research,
development or commercialization of such [ * ] and such [ * ] and (ii) would,
but for the [ * ] in [ * ], be infringed or misappropriated by the research,
development, making, having made, use, sale, offer for sale and importation by
Raven (or its sublicensees) of such [ * ], such [ * ] or products directed
against such [ * ] in the Commercial Field, an [ * ] to [ * ] such [ * ] such [
* ] and products directed against such [ * ] in the Commercial Field. Further,
ImmunoGen shall [ * ] relating to such [ * ] and [ * ] which is reasonably
necessary to [ * ]. Any [ * ] shall thereafter [ * ] and shall be thereafter
deemed [ * ].

                        (C) Raven shall [ * ] on [ * ] of any product covered by
Patents or Know-How, or approved pursuant to a regulatory filing which [ * ].
Raven's obligation to [ * ] shall expire at such time as the [ * ] in the
development of such Patents, Know-How, data and results have been [ * ]. The [ *
] referenced in this Section 6.4(a)(ii)(C) shall include (a) the [ * ] and [ * ]
, [ * ]; (b) any [ * ] under the terms of [ * ] to the extent covering such [ *
]; and (c) the [ * ] of [ * ] and [ * ] [ * ]. The provisions of [ * ], and [ *
] through [ * ] shall apply [ * ] to Raven's [ * ] [ * ] under this [ * ].

            (b) Diligence in Development and Commercialization.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       20
<PAGE>

                  (i) ImmunoGen shall devote Commercially Reasonable Efforts (1)
to performing research and pre-clinical development of at least [ * ] Licensed
Mab for each Licensed Target, and clinical development of at least [ * ]
Licensed Product for each Licensed Target, (2) to obtaining Marketing Approvals
for [ * ] Licensed Products in [ * ], (3) to achieving a First Commercial Sale
on a timely basis thereafter in those of the countries of the Territory in which
Marketing Approval is obtained, and (4) to market, promote and sell each
Licensed Product during the Term.

                  (ii) Raven shall have the right, by written notice to
ImmunoGen, to terminate this Agreement with respect to any given Licensed Mab,
Licensed Product or Licensed Target in any or all countries of the Territory if
ImmunoGen does not comply with the provisions of subsection (i) above, subject
to ImmunoGen's ability to cure as provided in subsection (iii) below.

                  (iii) The notice of termination of subsection (ii) shall be
effective [ * ] after receipt thereof by ImmunoGen, unless (1) ImmunoGen has
cured its failure to comply with the diligence obligations and has provided
evidence of such cure which is acceptable to Raven within such [ * ] period, or
(2) if such failure is not curable within such [ * ] , ImmunoGen has provided a
written plan acceptable to Raven for curing such failure within a reasonable
period, and thereafter cures such failure in accordance with such plan.

            (c) Diligence of ImmunoGen Affiliates and Sublicensees The efforts
of ImmunoGen Affiliates and sublicensees shall be treated as efforts of
ImmunoGen for purposes of this Section 6.4.

      6.5 Communications with Raven.

            (a) General Reports and Meeting. Beginning with the [ * ]
anniversary of the expiration of the Research Term, on or before each [ * ]
anniversary of such date, ImmunoGen will submit to Raven written reports
summarizing the status and progress of the preclinical and clinical development,
marketing and commercialization efforts for Licensed Product in detail at a
minimum sufficient to allow Raven to monitor ImmunoGen's compliance with [ * ]
and the progress towards achieving milestone events. Such reports shall be
deemed to be ImmunoGen's Confidential Information. Upon request of Raven, the
Parties shall meet to discuss the reports provided by ImmunoGen under this
subsection (a) and ImmunoGen shall reasonably consider any concerns raised or
suggestions made by Raven during such discussions.

            (b) Regulatory Filings and Matters. As between Raven and ImmunoGen,
ImmunoGen shall own all applications for Marketing Approval of Licensed Products
and be responsible for all communications with all Regulatory Agencies in
connection with those filings that may be necessary to obtain Marketing
Approvals of Licensed Products within the Territory, subject to Section 11.4.
ImmunoGen will keep Raven informed of the status of such filings in each
country. ImmunoGen will promptly advise Raven each time that it obtains
Marketing Approval of a Licensed Product anywhere in the Territory. As between
Raven and ImmunoGen,

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       21
<PAGE>

ImmunoGen shall be responsible for the reporting of adverse events related to
the use of Licensed Products marketed by ImmunoGen, its Affiliates or
sublicensees in the Territory.

      6.6 Compliance with Laws. Each Party shall carry out its activities
pursuant to this Agreement in compliance with all applicable supranational,
national, state, provincial and other local laws, rules, regulations and
guidelines.

                                   ARTICLE 7

                         PATENT PROSECUTION AND EXPENSES

      7.1 Prosecution of Patents.

            (a) By Raven. Subject to Section 7.1(b), Raven shall, at its sole
expense, file, prosecute and maintain the Licensed Patents using commercially
reasonable efforts, except as otherwise provided in this Section 7.1. Raven
shall keep ImmunoGen reasonably informed of the status of each Licensed Patent
the claims of which are directed primarily to any Licensed Mab, Licensed Target
or the use of either of the foregoing in the Commercial Field in the Territory
(each, a "Product-Specific Licensed Patent"). Actions to keep ImmunoGen so
informed shall include without limitation notifying ImmunoGen reasonably in
advance of any action or filing with respect to, providing ImmunoGen copies of
all correspondence with governmental patent authorities regarding and providing
ImmunoGen copies of proposed filings with respect to each Product-Specific
Licensed Patent. Raven shall give reasonable consideration to any suggestions or
recommendations of ImmunoGen regarding the preparation, filing, prosecution and
maintenance of the Product-Specific Licensed Patents.

            (b) Raven Election not to Prosecute. In the event that Raven elects
not to file, prosecute or maintain any Product-Specific Licensed Patent or not
to file any patent term extensions thereto which may be appropriate to obtain an
extended period of market exclusivity for a Licensed Product, Raven shall give
ImmunoGen notice of such election promptly but in any event at least [ * ] days
before any filing or payment of fees is required for such prosecution,
maintenance or filing. If after receiving such notice, ImmunoGen gives notice to
Raven that ImmunoGen wishes to take responsibility for such any Product-Specific
Licensed Patents, Raven shall (i) promptly provide ImmunoGen with all pertinent
files, correspondence, records, information and other documents relating thereto
in its Control, and (ii) take all other actions reasonably necessary to transfer
to ImmunoGen the authority to prosecute, maintain and file for patent term
extension for such any Product-Specific Licensed Patents. In the event that
ImmunoGen wishes to have filed a patent application in respect of a
Product-Specific Licensed Patent in a particular country, it shall notify Raven.
If Raven elects not to file in such country within [ * ] of ImmunoGen's notice,
then the responsibility for, and the costs of, filing and prosecuting that
application in that country shall be borne entirely by ImmunoGen, who shall be
entitled to use for that purpose patent attorneys or agents of its choice.
ImmunoGen's filing, prosecution and maintenance of any Product-Specific Licensed
Patent pursuant to this Section 7.1(b) shall be at ImmunoGen's sole expense. If
ImmunoGen elects to discontinue the filing, prosecution or maintenance of any
Product-Specific Licensed Patent or not to file any patent term extensions
thereto which may be appropriate to obtain an extended period of market

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       22
<PAGE>

exclusivity for a Licensed Product, Raven shall have the right to assume control
of such activities and this subsection (e) shall apply mutatis mutandis to such
right of Raven.

            (c) Licensed Patent Status. Once prosecution of any Product-Specific
Licensed Patent has been transferred to ImmunoGen pursuant to Section 7.1(b),
such Patent shall continue to be deemed to be a Licensed Patent for purposes of
this Agreement.

      7.2 Infringement of Licensed Patents by Third Parties.

            (a) Notification. Each Party shall promptly notify the other Party
in writing of any alleged, threatened or actual infringement in the Commercial
Field of the Licensed Patents of which it becomes aware and provide any
information available to that Party relating to such infringement.

            (b) Enforcement of Licensed Patents.

                  (i) If any Licensed Patent is infringed by a Third Party,
Raven shall have the first right, but not the obligation, to initiate, prosecute
and control any action with respect to such infringement, by counsel of its own
choice, to secure the cessation of the infringement or to bring suit against the
infringer. ImmunoGen shall have the right, but not the obligation (subject to
Section 7.2(c)), to participate in any such action with respect to the Licensed
Patent and to be represented by counsel of its own choice at its own expense if
ImmunoGen provides Raven with written notice that ImmunoGen will join such suit
within [ * ] after Raven first brings suit and joins the suit reasonably
promptly thereafter, or to itself bring suit if Raven fails to bring suit within
[ * ] after either Party's notice pursuant to Section 7.2(a).

                  (ii) Notwithstanding the foregoing, if the infringement
primarily relates to a product which would compete directly with a Licensed
Product, ImmunoGen shall have the first right, but not the obligation, to
initiate, prosecute and control any action with respect to such infringement, by
counsel of its own choice, to secure the cessation of the infringement or to
bring suit against the infringer, and Raven shall have the right, but not the
obligation (subject to Section 7.2(c), to participate in any such action with
respect to the Licensed Patent and to be represented by counsel of its own
choice and at its own expense if Raven provides ImmunoGen with written notice
that Raven will join such suit within [ * ] days after ImmunoGen first brings
suit and joins the suit reasonably promptly thereafter, or to itself bring suit
if ImmunoGen fails to bring suit within [ * ] days after either Party's notice
pursuant to Section 7.2(a).

            (c) Cooperation. If a Party brings any such action or proceeding as
permitted under Section 7.2(b), the other Party agrees to be joined as a party
plaintiff and to give the first Party reasonable assistance and authority to
control, file and prosecute the suit as necessary.

            (d) Recoveries. In the event that either Party or the Parties shall
undertake an enforcement action pursuant to Section 7.2(b), any award or
compensation (including the fair market value of non-monetary compensation) paid
by Third Parties as a result of such an infringement action (whether by way of
settlement or otherwise) shall be applied as follows: (i)

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       23
<PAGE>

first, to reimbursement of each Party for their respective costs and expenses
(including reasonable attorneys' fees and costs) incurred by each in connection
with such action, on a pro rata basis, and (ii) second, [ * ] as [ * ] for [ * ]
associated with [ * ] and to [ * ] as [ * ] for [ * ] to the [ * ] the [ * ] is
attributable [ * ] associated with [ * ]; [ * ]; (iii) third, any amounts
remaining shall be allocated as follows: (a) if ImmunoGen is the Party
prosecuting such action, [ * ], (b) if Raven is the Party prosecuting such
action, [ * ] and (c) if both Parties are prosecuting such action, [ * ].

      7.3 Infringement of Third Party's Rights.

            (a) If the practice of the Licensed Patents through the manufacture,
use or sale of Licensed Products by ImmunoGen, its Affiliates or sublicensees
results in a claim of patent infringement against ImmunoGen, its Affiliates or
sublicensees, the Party first having notice of that claim shall promptly notify
the other Party in writing. The notice shall set forth the facts of the claim in
reasonable detail.

            (b) If a Third Party asserts that a Patent or other right owned by
or licensed to it is infringed by the practice of the Licensed Patents through
the manufacture, use or sale of Licensed Products by ImmunoGen, ImmunoGen's
Affiliates or sublicensees, ImmunoGen shall have the exclusive right to resolve
the problem raised by the asserted infringement. ImmunoGen shall have the sole
right, but not the obligation, to defend any such claim. Raven shall have the
right, but not the obligation, to participate in any such suit at its sole
option and at its own expense, and if it elects to so participate, it shall
reasonably cooperate with ImmunoGen in conducting the defense of the claim.
Additionally, Raven shall reasonably cooperate with ImmunoGen in any suit being
prosecuted by ImmunoGen hereunder and in which Raven is not otherwise
participating pursuant to the foregoing sentence at ImmunoGen's expense and to
the extent reasonably requested by ImmunoGen. If, as a consequence of such an
action, suit or proceeding by a Third Party, either Party is prohibited or is
only allowed in a restricted manner or subject to some conditions, financial or
other, to discover, develop, manufacture, use, sell, offer for sale and/or
import a Licensed Product, the Parties shall examine and discuss in good faith
(i) the consequences of such prohibition or restriction or other conditions on
activities governed by this Agreement and (ii) possible modifications this
Agreement.

                                   ARTICLE 8

                         REPRESENTATIONS AND WARRANTIES

      8.1 Mutual Representations and Warranties. Each Party hereby represents
and warrants to the other Party as follows:

            (a) Corporate Existence and Power. It is a corporation duly
organized, validly existing and in good standing under the laws of the state in
which it is incorporated, and has full corporate power and authority and the
legal right to own and operate its property and

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       24
<PAGE>

assets and to carry on its business as it is now being conducted and as
contemplated in this Agreement, including, without limitation, the right to
grant the licenses granted hereunder.

            (b) Authority and Binding Agreement. As of the Effective Date, (a)
it has the corporate power and authority and the legal right to enter into this
Agreement and perform its obligations hereunder; (b) it has taken all necessary
corporate action on its part required to authorize the execution and delivery of
the Agreement and the performance of its obligations hereunder; and (c) the
Agreement has been duly executed and delivered on behalf of such Party, and
constitutes a legal, valid and binding obligation of such Party and is
enforceable against it in accordance with its terms.

            (c) Title. As of the Effective Date, it has sufficient legal and/or
beneficial title under its intellectual property rights necessary to perform
activities contemplated under this Agreement and to grant the licenses contained
in this Agreement.

            (d) No Conflict. It has not entered, and will not enter, into any
agreement with any Third Party which is in conflict with the rights granted to
the other Party under this Agreement, and has not taken and will not take any
action that would in any way prevent it from granting the rights granted to the
other Party under this Agreement, or that would otherwise materially conflict
with or adversely affect the rights granted to the other Party under this
Agreement.

      8.2 No Other Representations. THE EXPRESS REPRESENTATIONS AND WARRANTIES
STATED IN THIS ARTICLE 8 ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND
WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, INCLUDING WITHOUT LIMITATION,
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY
RIGHTS, TITLE, CUSTOM OR TRADE.

                                   ARTICLE 9

                                 INDEMNIFICATION

      9.1 Indemnification by Raven. Raven will indemnify, hold harmless and
defend (collectively, "Indemnify") ImmunoGen, its Affiliates and their
respective employees and agents (each an "ImmunoGen Indemnitee") against any and
all losses, damages, liabilities, judgments, fines, amounts paid in settlement,
expenses and costs of defense (including without limitation reasonable
attorneys' fees and witness fees) ("Losses") resulting from any claim, action or
proceeding brought or initiated by a Third Party ("Third Party Claim") against
them to the extent that such Third Party Claim arises out of (i) the breach or
alleged breach of any representation or warranty by Raven in Article 8, or (ii)
the gross negligence or willful misconduct of Raven, its Affiliates, or their
respective employees or agents; provided that such indemnity shall not apply to
the extent ImmunoGen has an indemnification obligation pursuant to Section 9.2,
and provided further, that such indemnity shall not apply to the extent arising
from the gross negligence or willful misconduct of any ImmunoGen Indemnitee.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       25
<PAGE>

      9.2 Indemnification by ImmunoGen. ImmunoGen will Indemnify Raven, its
Affiliates, and their respective employees and agents (each, a "Raven
Indemnitee") against any and all Losses resulting from any Third Party Claim
against them to the extent that such Third Party Claim arises out of (i) the
development, manufacture, use, sale or other commercialization of Licensed
Products by ImmunoGen, its Affiliates, sublicensees or distributors; (ii) the
breach or alleged breach of any representation or warranty by ImmunoGen in
Article 8; or (iii) the gross negligence or willful misconduct of ImmunoGen, its
Affiliates, or their respective employees or agents; provided that such
indemnity shall not apply to the extent Raven has an indemnification obligation
pursuant to Section 9.1 for such Loss; and provided, further that such indemnity
shall not apply to the extent arising from the gross negligence or willful
misconduct of any Raven Indemnitee.

      9.3 Mechanics. A Party entitled to be Indemnified pursuant to this Article
9 (either for itself or its ImmunoGen Indemnitee, as the case may be) (the
"Indemnified Party") shall give prompt notice of the Third Party Claim to the
other Party (the "Indemnifying Party") and subject to Section 7.3, the
Indemnifying Party shall defend against such Third Party Claim, with the
reasonable cooperation of the Party; provided that the Indemnified Party will
not settle any such Third Party Claim for anything other than money damages
without the prior written consent of the Indemnified Party, which consent shall
not be unreasonably withheld, conditioned or delayed. The Indemnified Party
shall have the right to be present in person or through counsel at substantive
legal proceedings relating to the Third Party Claim giving rise to the
Indemnified Party's right to indemnification hereunder. In the event that the
Parties cannot agree as to the application of Sections 9.1 and 9.2 to any Loss
or Third Party Claim, the Parties may conduct separate defenses of such Third
Party Claim. In such case, each Party further reserves the right to claim
indemnity from the other in accordance with Sections 9.1 and 9.2 upon resolution
of such underlying Third Party Claim.

      9.4 Insurance Coverage. ImmunoGen represents and warrants that it
maintains and shall continue to maintain adequate comprehensive general
liability insurance which covers ImmunoGen's activities and obligations
hereunder (including product liability) in accordance with reasonable
pharmaceutical industry standards. ImmunoGen will maintain such insurance
program, or other program with comparable coverage, beyond the expiration or
termination of this Agreement during the period in which any Licensed Product is
being commercially distributed or sold, and for a commercially reasonable period
thereafter.

      9.5 Limitation of Liability. In no event shall either Party or its
respective Affiliates and permitted sublicensees be liable for special,
exemplary, consequential or punitive damages, whether in contract, warranty,
tort, strict liability or otherwise, except to the extent such Party may be
required to Indemnify the other Party under this Article 9 from such damages
claimed by Third Parties.

                                   ARTICLE 10

                                 CONFIDENTIALITY

      10.1 Confidential Information.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       26
<PAGE>

            (a) Each Party will maintain all Confidential Information of the
other Party received by it under this Agreement in trust and confidence and will
not disclose any such Confidential Information to any Third Party. Each Party
may use the Confidential Information of the other Party only to the extent
required to exercise the rights expressly granted and perform the obligations
imposed by this Agreement. Neither Party will use any Confidential Information
of the other Party for any purpose or in any manner that would constitute a
violation of any laws or regulations, including without limitation the export
control laws of the United States. Neither Party will reproduce any Confidential
Information of the other Party in any form except as required to accomplish the
intent of this Agreement.

            (b) Neither Party will disclose Confidential Information of the
other Party to any employee, agent, consultant, Affiliate, or sublicensee who
does not have a reasonable need for such information for purposes of performance
under this Agreement or who is not subject to binding obligations of
confidentiality and limited use at least as restrictive as those of this Article
10. Each Party will use at least the same standard of care as it uses to protect
its own Confidential Information of a similar nature to prevent unauthorized
disclosures or uses of Confidential Information of the requesting Party, but no
less than reasonable care. Each Party will promptly notify the other Party upon
discovery of any unauthorized use or disclosure of the Confidential Information
of the other Party.

      10.2 Authorized Disclosure. Notwithstanding any other provision of this
Agreement, each Party may disclose Confidential Information of the other Party:

            (a) to the extent and to the persons and entities required by an
applicable governmental law, rule, regulation or order; provided, however, that
the responding Party shall first have given prompt notice to the other Party
hereto to enable it to seek any available exemptions from or limitations on such
disclosure requirement and shall reasonably cooperate in such efforts by the
other Party, except as provided in Section 10.4;

            (b) to the extent and to the persons and entities required by rules
of the National Association of Securities Dealers; or

            (c) as necessary to file or prosecute patent applications, prosecute
or defend litigation or otherwise establish rights or enforce obligations under
this Agreement, but only to the extent that any such disclosure is necessary.

      10.3 Publication. Notwithstanding any matter set forth with particularity
in this Agreement to the contrary, results obtained in the course of the
Research Program may be submitted for publication following scientific review by
the RMC and subsequent approval by the management of both Parties, which
approval shall not be unreasonably withheld. After receipt of the proposed
publication by both Parties' management, written approval or disapproval shall
be provided within [ * ] for a manuscript, within [ * ] for an abstract for
presentation at, or inclusion in the proceedings of a scientific meeting, and
within [ * ] for a transcript of an oral presentation to be given at a
scientific meeting. Upon request of either Party, the other Party shall delete
from any proposed publication any Confidential

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       27
<PAGE>

Information of the other Party, and shall delay the publication by up to [ * ]
to enable the filing of patent applications on subject matter to be published in
the proposed publication.

      10.4 Terms of Agreement. The Parties agree that the material financial
terms of this Agreement will be deemed to be Confidential Information of both
Parties. Notwithstanding the foregoing, either Party may disclose such terms to
bona fide potential corporate partners, potential investors or merger or
acquisition partners, and to financial underwriters and legal and financial
advisors, provided that all such disclosures shall be made only to such parties
under an obligation of confidentiality.

      10.5 Return of Confidential Information. In the event that the Agreement
is terminated for breach according to the provisions of Section 11.2, both
Parties will use diligent efforts (including without limitation a diligent
search of files and computer storage devices) to return all Confidential
Information received by it from the other Party except to the extent such
Confidential Information is necessary to exercise any license or other right
surviving termination of this Agreement. Additionally, each Party will be
allowed to keep one archival copy of any Confidential Information of the other
Party's Confidential Information for record keeping purposes only.

      10.6 Publicity. The Parties shall mutually agree on a press release
announcing the execution of this Agreement. Prior to any public disclosure
regarding this Agreement and/or the terms hereof, including but not limited to
press releases, the releasing Party shall provide a copy of the proposed release
to the other Party for comment prior to release. Once any written statement is
approved for disclosure by both Parties, either Party may make subsequent public
disclosures of the contents of such statement without further approval of the
other Party.

      10.7 Disclosure of Terms of Agreement. Either Party may file this
Agreement as may be required pursuant to applicable securities laws or
regulations of the Securities and Exchange Commission ("SEC"), provided that the
Party filing this Agreement shall first confer with the non-filing Party
regarding for which of the provisions of this Agreement the filing Party will
seek confidential treatment from the SEC and shall reasonably consider the
non-filing Party's comments relating thereto.

      10.8 Use of Names, Logos or Symbols. Neither Party shall use the name,
trademarks, logos, physical likeness, employee names or owner symbol of the
other Party for any purpose without the prior written consent of the affected
Party. Such consent shall not be unreasonably withheld, conditioned or delayed
so long as such use of name is limited to objective statements of fact regarding
this Agreement, rather than for endorsement purposes; provided, however, that
nothing contained herein shall be construed to prevent either Party from using
the name of the other Party for purposes of preparing necessary filings for the
SEC or complying with SEC regulations, including preparing proxy statements or
prospectuses. Nothing contained herein shall be construed as granting either
Party any rights or license to use any of the other Party's trademarks or trade
names without separate, express written permission of the owner of such
trademark or trade name.

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       28
<PAGE>

                                   ARTICLE 11

                              TERM AND TERMINATION

      11.1 Term. The term of this Agreement shall commence upon the Effective
Date and, unless sooner terminated as provided in this Article 11, expire on the
expiration of the last-to-expire Royalty Term for any Licensed Product.

      11.2 Termination for Breach. Each Party shall have the right to terminate
this Agreement and its obligations hereunder for material breach by the other
Party, which breach remains uncured for [ * ] after written notice is provided
to the breaching Party, or in the case of an obligation to pay royalty payments
or other amounts owing under this Agreement, which breach remains uncured for [
* ] after written notice to the breaching Party.

      11.3 Licenses upon Expiration. In the event that the Agreement expires as
set forth in Section 11.1, the licenses granted under Section 4.3 shall
automatically become irrevocable, fully paid licenses to use, and/or sublicense
the use of the Licensed Know-How, to research, develop, make, have made, use,
sell, offer for sale, import and otherwise commercialize the Licensed Products
worldwide.

      11.4 Product Rights upon Termination.

            (a) If Raven terminates this Agreement pursuant to Section 11.2, or
if Raven terminates this Agreement with respect to a particular Licensed Product
in any country of the Territory as provided in Section 6.4(b) (a "Partial
Termination"), the licenses by Raven to ImmunoGen pursuant to Section 4.3 shall
terminate (in the case of a Partial Termination, solely with respect to such
Licensed Product in such country).

            (b) [ * ] of such [ * ] in and to the [ * ] (or in the case of [ *
]), including without limitation all [ * ] (or in the case of a [ * ])
(collectively, such rights the [ * ] and such [ * ] the [ * ] and such [ * ] of
finished [ * ] as Raven may, in its sole discretion, request.

            (c) Upon such termination, Raven shall [ * ] for [ * ] in the [ * ]
of any [ * ] by [ * ] a [ * ] of [ * ] covered by [ * ] until the [ * ] (as
defined below) applicable to such [ * ] have been [ * ] (or [ * ] , such [ * ]
and [ * ] applicable to the [ * ] for [ * ] . [ * ] shall [ * ] if [ * ] to [ *
], the [ * ] of [ * ] , including [ * ] any [ * ] obtained [ * ] and under [ * ]
pursuant to [ * ]; and [ * ] associated with [ * ] of such product; but shall be
[ * ]. As used herein, [ * ] with respect to [ * ] shall mean the [ * ] by [ * ]
and [ * ] to [ * ] in respect of [ * ].

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       29
<PAGE>

            (d) If Raven [ * ] of any [ * ] that would be [ * ] if sold by
ImmunoGen prior to termination, Raven [ * ] to ImmunoGen [ * ], in addition to
the royalty provided for in [ * ] of [ * ] at a [ * ] in the [ * ] of a [ * ],
in each [ * ].

            (e) The provisions of Sections 1.42 (Net Sales definition), 5.5
(solely with respect to the last paragraph) and 5.7 through 5.13 shall apply
mutatis mutandis to Raven's [ * ] obligation under this Section 11.4. Raven
shall be responsible for [ * ], including without [ * ] under any [ * ].

      11.5 Accrued Rights and Obligations; Survival.

            (a) Expiration or termination of this Agreement shall not affect any
accrued rights or obligations, including, without limitation, ImmunoGen's
responsibility to make any payment accruing prior to or in respect of Net Sales
made prior to the effective date of termination or expiration, and any
provisions applicable to the calculation or payment or royalties shall survive
until all royalties have been paid.

            (b) The provisions of Articles 1, 9, 10, 11 and 12 and Sections 4.1,
4.4, 4.6, 5.10, 5.11, 5.12, 7.2 (but only with respect to alleged infringement
prior to the effective date of termination), 7.3 (but only with respect to
alleged infringement prior to the effective date of termination), 7.4, of this
Agreement shall survive expiration or termination of this Agreement for any
reason (subject to any subsequent dates of termination referred to in such
individual Articles). Additionally, all Sections of this Agreement that by their
terms survive termination or expiration of this Agreement shall survive any such
termination or expiration.

                                   ARTICLE 12

                                  MISCELLANEOUS

      12.1 Dispute Resolution. The Parties recognize that disputes may from time
to time arise between the Parties during the term of this Agreement. It is the
objective of the Parties to establish procedures to facilitate the resolution of
disputes arising under this Agreement in an expedient manner by mutual
cooperation and without resort to litigation. To accomplish this objective, the
Parties agree to follow the procedures set forth in this Section 12.1 to resolve
any dispute arising under this Agreement. In the event of such a dispute between
the Parties, either Party, by written notice to the other Party, have such
dispute referred to the Parties' respective executive officers designated below
or their successors, for attempted resolution by good faith negotiations within
[ * ] after such notice is received. Said designated officers are as follows:

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       30
<PAGE>

               For Raven:     Chief Executive Officer
               For ImmunoGen: Chief Executive Officer

In the event the designated executive officers are not able to resolve such
dispute after such [ * ] period then the Parties shall resolve such dispute by
arbitration in accordance with the rules provided for in Sections 1282-1288 of
the California Code of Civil Procedure before a panel of three (3) arbitrators.
ImmunoGen and Raven shall each select one (1) arbitrator and the two (2)
arbitrators selected by the Parties shall select the third (3rd) arbitrator.
Unless otherwise agreed by ImmunoGen and Raven, the arbitration will be held in
Denver, Colorado.

      12.2 Governing Law. This Agreement is made in accordance with and shall be
governed and construed under the laws of the State of California, excluding its
choice of law principles.

      12.3 No Agency. Neither Party is, nor will be deemed to be, an employee,
agent or legal representative of the other Party for any purpose. Neither Party
will be entitled to enter into any contracts in the name of, or on behalf of the
other Party, nor will a Party be entitled to pledge the credit of the other
Party in any way or hold itself out as having authority to do so. This Agreement
is an arm's-length agreement between the Parties and shall not constitute or be
construed as a joint venture.

      12.4 Assignment.

            (a) Affiliates. ImmunoGen may assign any of its rights or
obligations under this Agreement in any country to any of its Affiliates;
provided, however, that such assignment shall not relieve ImmunoGen of its
responsibilities for performance of its obligations under this Agreement.

            (b) Merger, Acquisition or Sale of Assets. Subject to the terms
hereof, either Party may assign its rights or obligations under this Agreement
to a non-Affiliate only in connection with a merger or similar reorganization;
the sale of all or substantially all of its assets or the sale of all or
substantially all of its pharmaceutical and/or healthcare assets; or otherwise
with the prior written consent of the other Party. This Agreement shall survive
any such merger or reorganization of either Party with or into, or such sale of
assets to, another party and no consent for such merger, reorganization or sale
shall be required hereunder.

            (c) Binding Upon Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the successors and permitted assigns of
the Parties. Any assignment of this Agreement not made in accordance with this
Agreement shall be void.

      12.5 Amendment. No amendment or modification hereof shall be valid or
binding upon the Parties unless made in writing and signed by both Parties.

      12.6 Covenant of Further Assurances. Each Party shall duly execute and
deliver, or cause to be duly executed and delivered, such further instruments
and do and cause to be done such further acts and things, including the filing
of such assignments, agreements, documents

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       31
<PAGE>

and instruments, as may be necessary or as the other Party may reasonably
request in connection with this Agreement or to carry out more effectively the
provisions and purposes, or to better assure and confirm unto such other Party
its rights under this Agreement.

      12.7 Notices. Any notice or other communication required or permitted to
be given to either Party hereto shall be in writing unless otherwise specified
and shall be deemed to have been properly given and to be effective upon
receiving written confirmation of receipt signed by an employee of the receiving
Party, if sent by a nationally recognized overnight delivery service or
registered or certified mail, to the other Party at the following address:

      In the case of Raven:

                Raven Biotechnologies, Inc.
                305 Old County Road
                San Carlos, CA 94070
                Attention: Chief Executive Officer

      With a copy to:

                Cooley Godward LLP
                One Freedom Square
                Reston Town Center
                11951 Freedom Drive
                Reston, VA 20190
                Attention: Matthias Alder, Esq.

      In the case of ImmunoGen:

                ImmunoGen, Inc.
                128 Sidney Street
                Cambridge, MA 02139
                Attention: Chief Executive Officer

      With a copy to:

                Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
                One Financial Center
                Boston, MA 02140
                Attention: Jeffrey M. Wiesen, Esq.

Either Party may change its address for communications by a notice to the other
Party in accordance with this Section 12.7.

      12.8 Rights in Bankruptcy. All rights and licenses granted under or
pursuant to this Agreement are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to
"intellectual property" as defined under Section 101 of the

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       32
<PAGE>

U.S. Bankruptcy Code. The Parties agree that, as a licensee of such rights under
this Agreement, the other Party (the "Licensee") shall retain and may fully
exercise all of their rights and elections under the U.S. Bankruptcy Code,
however nothing herein shall be deemed to constitute a present exercise of such
rights and elections. The Parties further agree that, in the event of the
commencement of a bankruptcy proceeding by or against the other Party (the
"Bankrupt Party") under the U.S. Bankruptcy Code, the Licensee shall be entitled
to a complete duplicate of (or complete access to, as appropriate) any such
intellectual property and all embodiments of such intellectual property, and
same, if not already in its possession, shall be promptly delivered to the
Licensee (a) upon any such commencement of a bankruptcy proceeding upon their
written request therefore, unless the Bankrupt Party elects to continue to
perform all of its obligations under this Agreement, or (b) if not delivered
under (a) above, upon rejection of this Agreement by or on behalf of the
Bankrupt Party upon written request therefor by the Licensee.

      12.9 Force Majeure. Any delay in performance by any Party under this
Agreement shall not be considered a breach of this Agreement if and to the
extent caused by occurrences beyond the reasonable control of the Party
affected, including but not limited to acts of God, embargoes, governmental
restrictions, strikes or other concerted acts of workers, fire, flood,
earthquakes, explosions, riots, wars, civil disorder, rebellion or sabotage. The
Party suffering such occurrence shall immediately notify the other Party and any
time for performance hereunder shall be extended by the actual time of delay
caused by the occurrence.

      12.10 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original but all of which
together shall constitute a single instrument.

      12.11 Captions. All section titles or captions contained in this
Agreement, in any Exhibit referred to herein and the table of contents, if any,
to this Agreement are for convenience only, shall not be deemed a part of this
Agreement and shall not affect the meaning or interpretation of this Agreement.

      12.12 Severability. If any term, condition or provision of this Agreement
is held to be unenforceable for any reason, it shall, if possible, be
interpreted to achieve the intent of the Parties to this Agreement to the extent
possible rather than voided. In any event, all other terms, conditions and
provision of this Agreement shall be deemed valid and enforceable to the full
extent.

      12.13 Cumulative Rights. The rights, powers and remedies hereunder shall
be in addition to, and not in limitation of, all rights, powers and remedies
provided at law or in equity, or under any other agreement between the Parties.
All of such rights, powers and remedies shall be cumulative, and may be
exercised successively or cumulatively.

      12.14 Waiver. No waiver by either Party hereto on any breach or default of
any of the covenants or agreements herein set forth shall be deemed a waiver as
to any subsequent or similar breach or default.

      12.15 Entire Agreement. This Agreement, and any and all Exhibits referred
to herein embody the entire understanding of the Parties with respect to the
subject matter hereof and shall

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       33
<PAGE>

supersede all previous communications, representations or understandings, either
oral or written, between the Parties relating to the subject matter hereof.

      IN WITNESS WHEREOF, both Raven and ImmunoGen have executed this Agreement
by their respective officers hereunto duly authorized.

IMMUNOGEN, INC.                         RAVEN BIOTECHNOLOGIES, INC.

By:    ___________________________      By:    _________________________________

Name:  ___________________________      Name:  _________________________________

Title: ___________________________      Title: _________________________________

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       34
<PAGE>

                                    Exhibit A

                                  RESEARCH PLAN

ImmunoGen/Raven Discovery Research Plan

1     Overview

      The [ * ] of [ * ] is [ * ]. [ * ] summarizing the [ * ] subject to [ * ].
      The overall [ * ] will be [ * will consist of an [ * ] from [ * ] , but
      will be [ * ].

Research Activities

2.    [ * ]

      [ * ] has [ * ] that are [ * ] of relevance to [ * ]. Sufficient [ * ] for
      the [ * ].

3.    [ * ]

      [ * ] will [ * ] during the [ * ], and [ * ] that [ * ]. Upon [ * ] will
      do [ * ]. All [ * ] for [ * ] to the [ * ]. [ * ] will be [ * ] on their [
      * ].

4.    [ * ]

      [ * ] will [ * ] on a [ * ] to [ * ] that [ * ] on [ * ] as [ * ]. [ * ]
      will [ * ] that [ * ], but do not, [ * ]. These [ * ] will be [ * ] that
      will be [ * ] to [ * ].

5.    [ * ]

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       1
<PAGE>

      [ * ] will [ * ] the [ * ] the [ * ] on a [ * ]. [ * ] with [ * ], and [ *
      ], will be [ * ]. [ * ] may [ * ] the [ * ] to [ * ] of the [ * ]. [ * ]
      that [ * ] are [ * ] , and their [ * ].

      [ * ] of [ * ] of all [ * ] by [ * ] will be prepared by [ * ] [ * ].

6.    [ * ]

      [ * ] of the [ * ] will be [ * ] to be [ * ] and will be [ * ]. If there
      are [ * ] may [ * ] from the [ * ]. [ * ] will provide [ * ] for [ * ]
      will provide [ * ].

            1.    [ * ].

            2.    [ * ] will determine the [ * ]. ImmunoGen will [ * ]. In
                  addition to [ * ] and [ * ] the [ * ] of [ * ].

            3.    [ * ]. As [ ] will [ * ] to [ * ].

7.    [ * ]

      [ * ] the [ * ] in [ * ], will [ * ] to be [ * ] that it [ * ] into in [ *
      ]. [ * ] will provide [ * ] with [ * ] with [ * ].

8.    [ * ]

      [ * ] will perform [ * ] of the [ * ] on the [ * ]. [ * ] will [ * ] the [
      * ].

      [ * ] of [ * ] of [ * ] specified [ * ] will be [ * ] at the [ * ] during
      the [ * ].

9.    [ * ]

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       2
<PAGE>

      [ * ] will [ * ] for [ * ], and [ * ] of the [ * ]. This will [ * ].

      [ * ] shall submit [ * ] after the [ * ] of all [ * ].

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.

                                       3
<PAGE>

                                   Appendix 1

                                  MAB CRITERIA

[ * ]:

      [ * ]: [ * ] will be [ * ] for [ * ]. [ * ] this [ * ] will be any [ * ]
      that [ * ] with at [ * ].

      [ * ]: [ * ] will also be evaluated for [ * ]. [ * ] will be [ * ] that [
      * ] with [ * ].

[ * ]: [ * ] that have [ * ] will be [ * ] a [ * ]:

      [ * ]: [ * ] will be [ * ] for [ * ] on [ * ]. [ * ].

      [ * ]: [ * ] will be [ * ] for [ * ] on a [ * ] using [ * ] that are [ *
      ]. [ * ], subject to availability, [ * ]. [ * ] will have [ * ] by [ * ].

Portions of this Exhibit were omitted and have been filed separately with the
Secretary of the Commission pursuant to the Company's application requesting
confidential treatment under Rule 24b-2 of the Securities Exchange Act.<PAGE>

                                                                   Exhibit 10.7
DATE:     MAY 5, 2001

LANDLORD:   ADAPTEC, INC., A DELAWARE CORPORATION

TENANT:   ROXIO, INC., A DELAWARE CORPORATION

PREMISES:    461 SOUTH MILPITAS BLVD. (BUILDING 5), MILPITAS, CALIFORNIA 95035

                                 LEASE AGREEMENT

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

PARAGRAPH                                                                                                PAGE
<S>      <C>                                                                                            <C>
 1.      Fundamental Lease Provisions.................................................................     3
 2.      Premises.....................................................................................     4
 3.      Use..........................................................................................     4
 4.      Rent.........................................................................................     4
 5.      Term.........................................................................................     5
 6.      Possession...................................................................................     5
 7.      Common Areas.................................................................................     5
 8.      Parking......................................................................................     6
 9.      Expenses of Operation and Maintenance of the Complex.........................................     6
10.      Acceptance and Surrender of Premises.........................................................     6
11.      Alterations and Additions....................................................................     6
12.      Maintenance and Repair of the Premises.......................................................     7
13.      Utility and Other Services...................................................................     7
14.      Furnishings, Office Supplies and Equipment...................................................     7
15.      Taxes........................................................................................     7
16.      Tenant's Insurance ..........................................................................     8
17.      Landlord's Insurance; Waiver of Subrogation..................................................     8
18.      Indemnification; Exemption of Landlord from Liability........................................     8
19.      Compliance...................................................................................     9
20.      Liens........................................................................................     9
21.      Assignment and Subletting....................................................................     9
22.      Subordination and Mortgages..................................................................    10
23.      Entry by Landlord............................................................................    10
24.      Tenant's Default.............................................................................    10
25.      Landlord's Remedies and Rights...............................................................    10
26.      Destruction..................................................................................    11
27.      Eminent Domain...............................................................................    11
28.      Sale or Conveyance by Landlord...............................................................    12
29.      Attornment to Lender or Third Party..........................................................    12
30.      Holding Over.................................................................................    12
31.      Certificate of Estoppel......................................................................    12
32.      Construction Changes.........................................................................    12
33.      Right of Landlord to Perform.................................................................    12
34.      Attorney's Fees..............................................................................    12
35.      Waiver.......................................................................................    12
36.      Notices......................................................................................    12
37.      Examination of Lease.........................................................................    13
38.      Default by Landlord..........................................................................    13
39.      Corporate Authority..........................................................................    13
40.      Limitation of Liability......................................................................    13
41.      Brokers......................................................................................    13
42.      Signs........................................................................................    13
43.      Hazardous Materials..........................................................................    13
44.      Interest.....................................................................................    14
45.      Use of Furniture.............................................................................    14
46.      Early Termination Right......................................................................    14
47.      Miscellaneous and General Provisions.........................................................    14
</TABLE>

ADDENDA AND EXHIBITS

         Exhibit A   --  Floor Plan of the Premises
         Exhibit B   --  Site Plan of Complex and Building
         Exhibit C-1 --  Tenant Improvements Space Plan
         Exhibit C-2 --  Alterations and Additions
         Exhibit D   --  Building Common Areas
         Exhibit E   --  Premises Configuration for Surrender
         Exhibit F   --  Original Configuration of Furniture

                                       2

<PAGE>

FULL SERVICE GROSS
                                 LEASE AGREEMENT

DATED: May 5, 2001
LANDLORD: ADAPTEC, INC., a Delaware corporation
TENANT: ROXIO, INC., a Delaware corporation

1. FUNDAMENTAL LEASE PROVISIONS.

A.   PREMISES: The following premises ("Premises") in the building located on a
     parcel of land in the County of Alameda, State of California, with an
     address of 461 South Milpitas Boulevard, Milpitas, California 95035
     ("Building"): 42,283 rentable square feet as shown on EXHIBIT A attached
     hereto. The Building is located within a complex that consists of multiple
     buildings, together with related driveways, parking areas, and related
     fixtures and improvements. For purposes of this Lease "the Complex" shall
     consist of Buildings 5 and 6 as designated on EXHIBIT B.

B.   LEASE TERM: 60 full calendar months from the Commencement Date.

C.   COMMENCEMENT DATE: The commencement date of this Lease shall be May 5, 2001
     (the "Commencement Date").

D.   BASIC RENT: (Paragraph 4.A):   Lease Year 1:    $2.61/rsf/month
                                    Lease Year 2:    $2.69/rsf/month
                                    Lease Year 3:    $2.77/rsf/month
                                    Lease Year 4:    $2.85/rsf/month
                                    Lease Year 5:    $2.93/rsf/month

     References herein to Lease Years shall be based on the Commencement Date.

E.   ADDITIONAL RENT: Costs and expenses under this Lease. (Paragraph 4.D)

F.   TENANT'S SHARE: N/A

G.   PREPAID RENT: $110,358.63 for the first month of the Lease Term.
     (Paragraph 4.G)

H.   BASIC RENT ADJUSTMENT: 3% per rentable square foot per year, as set forth
     in the rent schedule in Paragraph 1.D hereof.

I.   SECURITY DEPOSIT: $110,358.63 (the "Security Deposit"). (Paragraph 4.F)

J.   PERMITTED USE: general office use, research and development, light
     manufacturing and sales. (Paragraph 3)

K.   NUMBER OF PARKING SPACES: 4 spaces per 1,000 rentable square feet of the
     Premises as to which the Commencement Date has occurred, in common with
     other Complex occupants (170 spaces). (Paragraph 8)

L.   ADDRESSES FOR NOTICES AND PAYMENT OF RENT (Paragraphs 4.E and 36):

     To Landlord:      Adaptec, Inc.
                       691 South Milpitas Boulevard, MS 20
                       Milpitas, CA 95035
                       Attn: Louie Bringino
                       Fax: (408) 957-6600

       To Tenant:      Roxio, Inc.
                       461 South Milpitas Boulevard
                       Milpitas, CA 95035
                       Attn: Spencer Clevenger
                       Fax: (408) 957-4544

M.   TENANT'S BROKER: N/A. (Paragraph 41)

N.   GUARANTORS: N/A.

O.   ADDENDA AND EXHIBITS: The following addenda and exhibits are added hereto
     and included as part of this Lease:

     Exhibit A    --  Floor Plan of the Premises
     Exhibit B    --  Site Plan of Complex and Building
     Exhibit C-1  --  Tenant Improvements Space Plan
     Exhibit C-2  --  Alterations and Additions
     Exhibit D    --  Building Common Areas
     Exhibit E    --  Premises Configuration for Surrender

                                       3
<PAGE>

     Exhibit F    --  Original Configuration of Furniture

Each reference in this Lease to any of the provisions in this Paragraph 1 shall
be construed to incorporate all of the terms of each such provision. In the
event of any conflict between this Paragraph 1 and the balance of the Lease, the
balance of the Lease shall control.

2.   PREMISES.

A.   PREMISES. Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord the Premises until the expiration of the Lease Term, at the Rent and
upon the terms and conditions hereinafter set forth. Said letting and hiring is
upon and subject to the terms, covenants and conditions hereinafter set forth,
and Tenant covenants as a material part of the consideration for this Lease to
perform and observe each and all of said terms, covenants and conditions.

B.   IMPROVEMENTS. Prior to the Commencement Date of this Lease, Landlord agrees
to construct certain improvements (the "Tenant Improvements") as follows: (i)
Install new wall and door to separate room #5137 and room #5137A; (ii) create
pass through in wall separating room #5137A and room #5138; (iii) install two
(2) key locks in room #5176; (iv) secure the door in room #5187 to separate that
room from Suite 1; and (v) install new door in fire corridor prepared for a card
reader. The Tenant Improvements are described in the space plan attached as
EXHIBIT C-1 hereto and incorporated herein by reference, in accordance with such
specifications as may be set forth in such EXHIBIT C-1. The Tenant Improvements
shall be deemed substantially complete when Landlord notifies Tenant in writing
that the Tenant Improvements (if any) are substantially completed in accordance
with EXHIBIT C-1, subject only to "punch list" items that do not materially
diminish the usefulness of the Premises. The parties acknowledge that Landlord
has already installed three (3) 20AMP 120V circuits supported by a back-up
generator in room #5137A. Landlord shall have no obligation to make any
improvement or alteration to the Premises except as specifically and expressly
agreed to in writing by Landlord, and all other improvements or alterations
required by Tenant for Tenant's use and occupancy of the Premises (including
without limitation the installation of satellite dishes on the roof of the
Building) shall be Tenant's sole responsibility at Tenant's sole cost, in
accordance with Paragraph 11 and other applicable provisions of this Lease.

C.   SQUARE FOOTAGE. Landlord and Tenant conclusively agree that the statements
of rentable square footage contained herein shall be deemed to be correct and
binding upon the parties for all purposes under this Lease, even if subsequent
measurements determine that one or more of such figures is incorrect.

3.   USE. Tenant shall use the Premises only in conformance with applicable
governmental laws, regulations, rules and ordinances, including without
limitation the Americans With Disabilities Act of 1990 (the "ADA"), and solely
for the purpose specified in Paragraph 1.J and for no other purpose. Tenant
shall not do or permit its employees, agents, contractors or invitees (the
"Tenant's Related Parties") to do in or about the Premises or the Complex nor
bring or keep or permit Tenant's Related Parties to bring or keep in or about
the Premises or the Complex anything which is prohibited by or will in any way
increase the existing rate of (or otherwise affect) fire or any insurance
covering the Premises or the Complex or any part thereof, or any of its
contents, or will cause a cancellation of any insurance covering the Premises or
the Complex or any part thereof, or any of its contents. Tenant shall not do or
permit Tenant's Related Parties to do anything in, on or about the Premises or
the Complex which will in any way obstruct or interfere with the rights of other
tenants or occupants of the Complex or injure or annoy them, or use or allow the
Premises to be used for any improper, immoral, unlawful or objectionable
purpose, nor shall Tenant cause, maintain or permit Tenant's Related Parties to
create any nuisance in, on or about the Premises or the Complex. No sale by
auction shall be permitted on the Premises or in the Complex. Tenant shall not
place any loads upon the floors, walls, or ceiling, which endanger the
structure, or place any harmful fluids or other materials in the drainage system
of the Building therein, or overload existing electrical or other mechanical
systems. No waste materials or refuse shall be dumped upon or permitted to
remain upon any part of the Premises or outside of the Premises, except in trash
containers placed inside exterior enclosures designated by Landlord for that
purpose or inside of the Building proper where designated by Landlord. No
materials, supplies, equipment, finished products or semi-finished products, raw
materials or articles of any nature shall be stored upon or permitted to remain
outside the Premises. No loudspeaker or other device, system or apparatus which
can be heard outside the Premises shall be used in or at the Premises without
the prior written consent of Landlord. Tenant shall not commit any waste in or
upon the Premises. Tenant shall, upon receipt of copies thereof, comply with any
covenants, conditions, or restrictions ("CC&R's") affecting the Premises, as the
same may hereafter be amended from time to time, as well as any reasonable rules
and regulations promulgated by Landlord from time to time (the "Rules and
Regulations"). Landlord reserves the right to reasonably amend such Rules and
Regulations from time to time as Landlord may deem appropriate, which amendment
shall be binding upon Tenant upon delivery of a copy thereof to Tenant. Tenant
shall use commercially reasonable efforts to cause Tenant's Related Parties to
cooperate in observance of such Rules and Regulations, as the same may be
amended from time to time. The provisions of this Paragraph are for the benefit
of Landlord only and shall not be construed to be for the benefit of any tenant
or occupant of the Complex. Landlord shall not be responsible to Tenant for the
breach of the Rules and Regulations by any other tenant or occupant of the
Complex.

4.   RENT

A.   BASIC RENT. Tenant agrees to pay to Landlord the sum set forth in Paragraph
1.D hereof as "Basic Rent" based on the square footage of the Premises as to
which the Commencement Date has occurred, in lawful money of the United States
of America, without deduction, offset, prior notice, or demand, on the first day
of every calendar month of the Lease Term, and Landlord agrees to accept such
sum as Basic Rent for the Premises.

B.   PARTIAL MONTHS. In the event that the Lease Term commences on a date other
than the first day of a calendar month as to any portion of the Premises, on the
applicable Commencement Date, Tenant shall pay to Landlord as Basic Rent for the
period from such Commencement Date to the first day of the first full calendar
month that proportion of the monthly Basic Rent hereunder which the number of
days between such Commencement Date and the first day of the next succeeding
calendar month bears to the actual number of days in such calendar month, and
such partial first month shall not be counted when computing the number of
months in the term of this Lease. In the event that the Lease Term is terminated
for any reason on a date other than the last day of a calendar month, on the
first day of the last calendar month of the Lease Term Tenant shall pay to
Landlord as Basic Rent for the period from said first day of said last calendar
month to and including the last day of the Lease Term that proportion of the
monthly Basic Rent hereunder which the number of days between said first day of
said last calendar month and the last day of the term hereof bears to the actual
number of days in such calendar month.

C.   LATE CHARGE. Notwithstanding any other provision of this Lease, if Tenant
is delinquent in the payment of Rent as set forth in this Paragraph 4, or any
part thereof, Tenant agrees to pay Landlord, in addition to the delinquent Rent
due, a late charge for each Rent payment which is not received by Landlord
within ten (10) days after due date for such payment. Said late charge shall be
six percent (6%) of the delinquent Rent payment. Notwithstanding the foregoing,
Landlord shall waive such late charge one time only in the first twelve (12)
month period if Tenant pays any delinquent amount within five (5) days of
receipt of written notice of such delinquency by Landlord.

                                       4
<PAGE>

D.   ADDITIONAL RENT. Beginning with the Commencement Date, Tenant shall pay to
Landlord in addition to the Basic Rent and as Additional Rent all charges, costs
and expenses that Tenant is required to pay under this Lease, together with all
interest and penalties, costs and expenses including without limitation
attorneys' fees and legal expenses, that may accrue thereto in the event of
Tenant's failure to pay such amounts within applicable notice and cure periods,
and all damages, reasonable costs and expenses which Landlord may incur by
reason of default of Tenant or failure on Tenant's part to comply with the terms
of this Lease within applicable notice and cure periods. In the event of
nonpayment by Tenant of Additional Rent, Landlord shall have all the rights and
remedies with respect thereto as Landlord has for nonpayment of Basic Rent. The
Additional Rent due hereunder shall be paid to Landlord or Landlord's agent, at
the option of Landlord, directly to the designated recipient thereof, as and
when such amounts are due, in accordance with statements or invoices presented
to Tenant. The obligations of Tenant under this Paragraph shall survive the
expiration or other termination of this Lease.

E.   PLACE OF PAYMENT OF RENT. All Basic Rent hereunder and all payments
hereunder for Additional Rent shall be paid to Landlord at the address of
Landlord as specified in Paragraph 1.L or such other place as Landlord may from
time to time designate in writing.

F.   SECURITY DEPOSIT. Concurrently with Tenant's execution of this Lease,
Tenant shall deposit with Landlord the sum specified in Paragraph 1.I hereof as
the Security Deposit. Said sum shall be held by Landlord as a security deposit
for the faithful performance by Tenant of all of the terms, covenants, and
conditions of this Lease to be kept and performed by Tenant during the Lease
Term, and shall not in any event be used or applied by Tenant as "last month's
rent." If Tenant defaults with respect to any provision of this Lease after
expiration of applicable notice and cure periods, including, but not limited to,
the provisions relating to the payment of Rent, Landlord may (but shall not be
required to) use, apply or retain all or any part of the Security Deposit for
the payment of any amount which Landlord may spend by reason of Tenant's default
or to compensate Landlord for any other loss or damage which Landlord may suffer
by reason of Tenant's default. If any portion of said Security Deposit is so
used or applied, Tenant shall, within ten (10) days after written demand
therefor, deposit cash with Landlord in the amount sufficient to restore the
Security Deposit to its original amount. Tenant's failure to do so shall be a
material breach of this Lease. Landlord shall not be required to keep this
Security Deposit separate from its general funds, and Tenant shall not be
entitled to interest on such Security Deposit. Provided that Tenant is not in
default under this lease, the Security Deposit or any balance thereof shall be
returned to Tenant (or at Landlord's option, to the last assignee of Tenant's
interest hereunder) at the expiration of the Lease Term and after Tenant has
vacated the Premises. In the event of termination of Landlord's interest in this
Lease, Landlord shall transfer said Security Deposit to Landlord's successor in
interest whereupon Landlord shall be released from liability for the return of
such Security Deposit or any accounting therefor.

G.   PREPAID RENT. Concurrently with Tenant's execution of this Lease, Tenant
shall pay to Landlord the sum specified in Paragraph 1.G as prepaid Rent for the
months designated therein.

H.   DEFINITION OF RENT. The term "Rent" as used in this Lease shall mean Basic
Rent, Additional Rent, and any and all other sums, however designated, required
to be paid by Tenant under this Lease, whether payable to Landlord or third
parties.

I.   ADDITIONAL RIGHTS OF LANDLORD. In addition to any late payment or interest
charges payable to Landlord hereunder and any other rights or remedies that
Landlord may have under this Lease or applicable law, all of which rights and
remedies shall be cumulative, Tenant, as a material part of the consideration
for this Lease, hereby agrees as follows:

     (1)  If Tenant makes any payment under this Lease by check and such check
is dishonored or otherwise returned unpaid to Landlord due to insufficient
funds, then Landlord, at its option, may require Tenant to make all future
payments under this Lease for the next twelve (12) month period by cashier's
check or wire transfer in accordance with wiring instructions given to Tenant by
Landlord.

     (2)  If Landlord fails to receive any payment that Tenant is required to
make under this Lease when due and Landlord thereafter, and prior to receiving
such payment, proceeds to serve a "3-Day Notice" or similar notice to Tenant as
permitted under Section 1162 of the California Code of Civil Procedure, then in
each such instance, and regardless of whether Tenant thereafter makes such
payment, Tenant shall pay to Landlord, upon demand, as Additional Rent, an
administrative charge in the amount of $250. Tenant acknowledges that such
charge constitutes liquidated damages and not a penalty and represents a
reasonable estimate of the additional administrative costs that Landlord will
incur in serving such notice.

          (3)  If Landlord fails to receive any payment that Tenant is required
to make under this Lease within ten (10) days after the due date for such
payment, and such delinquency occurs on three (3) separate occasions, then
Landlord, at its election, exercisable by one or more written notices to Tenant
at any time after the third such delinquency, may require any or all of the
following: (i) that all future payments of Basic Rent for the next twelve (12)
month period be paid three (3) months in advance; and (ii) that the Security
Deposit specified in Paragraph 1.H be immediately increased by one hundred
percent (100%), in which event Tenant shall, within ten (10) days after written
demand therefor, deposit such additional amount in cash with Landlord.

5.   TERM. The term of this Lease (the "Lease Term") shall be for the period of
time specified in Paragraph 1.B (unless sooner terminated as provided for in
this Lease) and shall commence on the Commencement Date described in Paragraph
1.C.

6.   POSSESSION. Landlord shall use commercially reasonable efforts to deliver
possession of the Premises to Tenant between May 5, 2001 and May 31, 2001. If
for any reason Landlord cannot deliver possession of any of the Premises to
Tenant on the date set forth in Paragraph 1.C or any other date, this Lease
shall not be void or voidable; no obligation of Tenant shall be affected
thereby; nor shall Landlord or Landlord's agents be liable to Tenant for any
loss or damage resulting therefrom. In the event, however, that Landlord fails
to deliver possession of the Premises on or before May 31, 2001 (which date
shall be extended by delays caused by Acts of God, strikes, war, utilities,
governmental bodies, weather, unavailable materials, and delays beyond
Landlord's control), the date that Tenant would otherwise commence paying Basic
Rent shall be delayed by one (1) day for each day delivery of the Premises is
delayed beyond such date.

7.   COMMON AREAS. Subject to the terms and conditions of this Lease and any
Rules and Regulations, Tenant shall have the non-exclusive right (i) in common
with other occupants of the Complex, to use the access roads, parking areas, and
facilities provided and designated by Landlord for the general use and
convenience of the occupants of the Complex, and (ii) in common with the other
occupants of the Building, the bathrooms and the break room as shown on EXHIBIT
D hereto, which areas and facilities are referred to herein as "Common Areas".
This right shall terminate upon the termination of this Lease. Landlord reserves
the right from time to time to make changes in the shape, size, location, amount
and extent of Common Areas. Any rights to use other amenities including the
fitness center and cafeteria will be detailed under a separate license
agreement. Notwithstanding the foregoing, the occupants of Suite 4 (as Suite 4
is

                                       5
<PAGE>

shown on Exhibit A hereto) and their invitees shall use only the bathrooms
located in Suite 4 and are prohibited from using the bathrooms adjacent to
Suite 2 (as Suite 2 is shown on Exhibit A hereto).

8.   PARKING. Subject to the terms and conditions of this Lease and subject to
the Rules and Regulations, Tenant shall have the non-exclusive right, in common
with other tenants or occupants of the Complex, to use the number of spaces set
forth in Paragraph 1.K in the common parking areas of the Complex. Landlord
shall have the right (but not the obligation), at Landlord's sole discretion, to
designate the specific location of Tenant's parking spaces within the common
parking areas of the Complex that is reasonably proximate to the Building.
Landlord shall also have the right to implement a system of parking charges,
vouchers, fines or other parking control fees to be paid by Tenant and/or the
users of the Complex that is reasonably proximate to the Building, if so
required by any governmental agency having jurisdiction over the Complex or if
required to meet parking programs mandated by government.

     Tenant shall not, at any time, park, or permit to be parked, any trucks or
vehicles adjacent to the loading areas so as to interfere in any way with the
use of such areas, nor shall Tenant at any time park, or permit the parking of
Tenant's trucks or other vehicles or the trucks and vehicles of Tenant's
suppliers or others, in any portion of the common area not designated by
Landlord for such use by Tenant. Tenant shall not park nor permit to be parked,
any inoperative vehicles or equipment on any portion of the parking area or
outside areas of the Complex, or use the same for storage. Tenant agrees to
assume responsibility for compliance by its employees with the parking
provisions contained herein.

     If Tenant or its employees park in other than such designated parking
areas, then Landlord may charge Tenant, as Additional Rent, and Tenant agrees to
pay, ten ($10.00) dollars per day for each day or partial day each such vehicle
is parked in any area other than that designated. Tenant hereby authorizes
Landlord at Tenant's sole expense to tow away from the Complex any vehicle
belonging to Tenant or Tenant's employees parked in violation of these
provisions (after reasonable notice of such violation), or to attach violation
stickers or notices to such vehicles and levy reasonable fines for such
violations. Landlord shall have no obligation to Tenant to police the parking
areas or enforce any private or public parking restrictions.

9.   EXPENSES OF OPERATION AND MAINTENANCE OF THE COMPLEX. Except for those
expenses required to be paid exclusively by Tenant as set forth in Paragraphs
12, 13 and 14 or elsewhere in this Lease (which shall be paid as Additional Rent
hereunder), Landlord shall pay all expenses of operation, maintenance and repair
of the Building, Complex and Common Areas.

10.  ACCEPTANCE AND SURRENDER OF PREMISES. By taking possession hereunder,
Tenant accepts the Premises as being in good and sanitary order, condition and
repair and accepts the Building, the Premises and the Common Areas in their then
existing condition and without representation or warranty by Landlord as to its
condition, the use or occupancy which may be made thereof, or the precise square
footage of the Building or the Premises. Any exceptions to the foregoing must be
by written agreement executed by Landlord and Tenant. Subject to Paragraphs 26
(Destruction) and 27 (Eminent Domain), and in accordance with this Paragraph 10
and Paragraph 45 (Furniture), Tenant agrees on the last day of the Lease Term,
or on the sooner termination of this Lease, to surrender the Premises promptly
and peaceably to Landlord in the same condition as received (normal wear and
tear excepted), with all interior walls painted, or cleaned so that they appear
freshly painted, and repaired and replaced, if damaged; all floors cleaned and
waxed; all carpets cleaned and shampooed together with all alterations,
additions, and improvements which may have been made in, to, or on the Premises
(except movable trade fixtures installed at the expense of Tenant) and in the
configuration shown on EXHIBIT E hereto; provided, however, that Tenant shall
ascertain from Landlord within thirty (30) days before the end of the Lease Term
whether Landlord desires to have the Premises or any part or parts thereof
restored to their condition and configuration as when the Premises were
delivered to Tenant and if Landlord shall so desire (subject to the last
paragraph of Paragraph 11 hereof), then Tenant shall restore said Premises or
such part or parts thereof before the end of this Lease at Tenant's sole cost
and expense. Tenant, on or before the end of the Lease Term or sooner
termination of this Lease, shall remove all of Tenant's personal property and
trade fixtures from the Premises, and all property not so removed on or before
the end of the Lease Term or sooner termination of this Lease shall be deemed
abandoned by Tenant and title to same shall thereupon pass to Landlord without
compensation to Tenant. Landlord may, upon termination of this Lease, remove all
moveable furniture and equipment so abandoned by Tenant, at Tenant's sole cost,
and repair any damage caused by such removal at Tenant's sole cost. If the
Premises are not surrendered at the end of the term or sooner termination of
this Lease, Tenant shall indemnify Landlord against loss or liability resulting
from the delay by Tenant in so surrendering the Premises including, without
limitation, consequential damages to Landlord caused, in whole or in part, by
such delay. Nothing contained herein shall be construed as an extension of the
term hereof or as a consent of Landlord to any holding over by Tenant. The
voluntary or other surrender of this Lease or the Premises by Tenant or a mutual
cancellation of this Lease shall not work as a merger and, at the option of
Landlord, shall either terminate all or any existing subleases or operate as an
assignment to Landlord of all or any such subleases.

11.  ALTERATIONS AND ADDITIONS. Tenant shall not make, or suffer to be made, any
alteration or addition to the Premises or the Building, or any part thereof, or
make any installations (of satellite dishes or other equipment or fixtures) on
the roof or other exterior portions of the Building, without the prior written
consent of Landlord; provided, however, Tenant may construct non-structural
alterations, additions and improvements in the Premises without Landlord's prior
approval, if the cost of any such project does not exceed Fifteen Thousand
Dollars ($15,000). Notwithstanding the foregoing, regardless of the cost of
alteration, no roof penetration or changing of locks will be allowed without
Landlord's prior written approval. All work with respect to any alteration,
addition or exterior installation shall be done in a good and workmanlike
manner, shall be under the supervision of a competent architect or competent
licensed structural engineer approved by Landlord, and shall be made in
accordance with all applicable laws, ordinances, codes and regulations related
thereto and the plans and specifications with respect thereto shall be approved
in writing by Landlord before commencement of work. Tenant shall use Landlord's
approved contractors for electrical, mechanical and general construction and
Landlord's approved vendors for information technology services so long as the
cost of such services provided by Landlord's contractors and/or vendors are
reasonable and customary. Landlord's approval of Tenant's plans and
specification shall create no responsibility or liability on the part of
Landlord for their completeness, design sufficiency or compliance with
governmental laws, rules or regulations.

     Tenant agrees that it will not proceed to make such alterations, additions
or installations without having obtained consent from Landlord to do so, and
until ten (10) days after the receipt of such consent, in order that Landlord
may post appropriate notices to avoid any liability to contractors or material
suppliers for payment for Tenant's improvements. Tenant will at all times permit
such notices to be posted and to remain posted until the completion of work.
Tenant further covenants and agrees that any mechanic's lien filed against the
Premises or against the Complex for work claimed to have been done for, or
materials claimed to have been furnished to, Tenant will be discharged by
Tenant, by bond or otherwise, within twenty (20) days after Tenant's actual
notice of the imposition thereof, at the cost and expense of Tenant. Any
exceptions to the foregoing must be made in writing and executed by both
Landlord and Tenant. Upon completion of the work, Tenant shall file a Notice of
Completion as permitted by law in the Office of the County Recorder where the
Premises is located.

                                       6
<PAGE>

     Subject to Paragraph 45 (Furniture), any addition to, or alteration of, the
Premises, except moveable equipment and trade fixtures owned by Tenant, shall at
once become a part of the Premises and belong to Landlord. Upon request by
Tenant, Landlord shall inform Tenant at the time it consents to an alteration
whether it shall require such alteration to be removed at the end of the Lease
Term. Tenant shall retain title to all moveable equipment, satellite dishes and
trade fixtures placed in or upon the Premises or the Building by Tenant. All
heating, lighting, electrical, air conditioning, floor to ceiling partitioning,
carpeting, and floor installations made by Tenant, together with all property
that has become an integral part of the Premises, shall not be deemed trade
fixtures.

     Tenant has requested Landlord's approval, and Landlord hereby grants such
approval, to Tenant's construction of the following alterations (the
"Alterations and Additions"): (i) the installation of new card readers on door
#5164, door #5104, and the door in the fire corridor; (ii) the installation of a
new door in room #5126 to the break room; (iii) the construction of three (3) VP
offices (including, the installation of HVAC for such offices) subject to
Landlord's reasonable approval of final plans therefor. The Alterations and
Additions are described in the space plan attached as EXHIBIT C-2 hereto and are
incorporated herein by reference. Tenant shall be required to remove, at the
expiration or earlier termination of the Lease, the VP offices and the HVAC for
such offices and restore such portion of the Premises to its original condition
as of the date the Premises were delivered to Tenant.

12.  MAINTENANCE AND REPAIR OF THE PREMISES. So long as no Event of Default (as
defined in Paragraph 24) has occurred, which remains uncured beyond the
applicable cure period (if any) set forth in this Lease, Landlord shall, at its
sole cost and expense, maintain and repair the Premises and the Building, except
to the extent of any non insured damage (or deductible portion of any insured
damage) (subject to Paragraph 17(B)) that is the result of the negligence or
willful act of Tenant or Tenant's Related Parties, in which case Tenant shall be
liable for the repair at Tenant's sole cost and expense. Landlord shall have no
obligation to make repairs under this Paragraph (except for routine preventative
maintenance) until a reasonable time after receipt of written notice from Tenant
of the need for such repairs; provided, however, in cases involving an emergency
or a condition making the Premises uninhabitable, Landlord shall make such
repairs as soon as practicable after receipt of written notice from Tenant of
the need for such repairs stating the urgency therefor. In no event shall any
payments owed by Tenant under this Lease be abated on account of Landlord's
failure to make repairs under this Paragraph. Tenant hereby waives all statutory
rights to make repairs for or at the expense of Landlord.

13.  UTILITY AND OTHER SERVICES PROVIDED BY LANDLORD.

A.   SERVICES PROVIDED BY LANDLORD. Landlord shall provide, during the Lease
Term as to the applicable Premises, janitorial, electric, water, sewer, and HVAC
services to reasonable commercial standard for the Premises, including HVAC
between 6:00 a.m. and 8:00 p.m. on business days Monday through Friday and 8:00
a.m. through 5:00 p.m. Saturdays. The cost of such services shall be included in
Basic Rent except where expressly provided in this Lease. Landlord shall not be
liable for, and Tenant shall not be entitled to, any abatement or reduction of
Rent or other compensation by reason of any interruption or failure of utility
services to the Premises. Tenant may request HVAC service outside the standard
upon 24 hour written notice (48 hour if needed on Sunday); such excess HVAC
costs shall be billed to Tenant at a rate of $50.00 per hour, subject to
increase due to increases in the cost of electrical power necessary to provide
such excess HVAC. Tenant acknowledges that the server room #5137A is served only
by the building's main HVAC system and does not contain dedicated HVAC.

B.   INFORMATION SYSTEMS SERVICES/TELECOMMUNICATIONS. Landlord shall have no
obligation under this Lease to provide any information or telecommunication
systems access or services. Tenant shall, however, when accompanied by an
authorized information services employee of Landlord, have access to the
telecom/data closet serving the Building for the purpose of installing and
maintaining Tenant's network and telecommunications services to the Premises.

C.   ELECTRIC CHARGES. Tenant acknowledges that the estimate for the cost to
provide electricity to the Building used by Landlord in calculating Basic Rent
was twenty-seven cents ($0.27) per square foot per month. Landlord shall audit
annually the cost to provide electricity to the Building. Landlord shall
provide Tenant with a detailed statement showing the results of each such
audit within ninety (90) days of the calendar year end. Any cost to provide
electricity to the Building in excess of thirty-two cents ($0.32) per square
foot per month, shall be billed to Tenant. Such additional electrical charges
shall be considered Additional Rent pursuant to paragraph 4.D. of this Lease,
and Tenant shall pay such additional electrical charges within thirty (30)
days of being billed therefor.

14.  SECURITY, OFFICE SUPPLIES AND EQUIPMENT.

A.   SECURITY. During the Lease Term, Tenant shall be entitled to use all
existing security hardware, as currently located in the Premises (the "Security
System"). The Security System shall at all times remain the property of
Landlord, and may be used by Tenant during the Lease Term without additional
charge. Any new equipment installations with respect to the Security System will
constitute accessions and shall become part of the Security System and shall be
owned by Landlord. Such installations shall be paid for by Tenant and Tenant
shall use Landlord's normal installation vendor for all such service so long as
the cost of such services provided by Landlord's vendor are reasonable and
customary. Landlord shall be responsible for fire extinguisher maintenance,
storm water runoff filing, Premises door checks, monitoring cameras and alarms,
responding to alarm calls (to the same degree that Landlord currently responds
to alarm calls in areas occupied by its own employees and other Complex
tenants), and maintenance of badging system as well as issuance of new hire
badges. Landlord's Security Command Center will provide passport photo service
to Tenant's employees so long as it is offering that same service to Landlord's
employees.

B.   OFFICE SUPPLIES AND EQUIPMENT. Tenant shall be responsible for supplying,
at Tenant's sole cost and expense, all office supplies, and equipment utilized
by Tenant in connection with its operations at the Premises, including without
limitation, coffee services, vending machines, computer equipment, fax machines,
postage meters, and all materials, supplies and services related to such
matters. On or prior to the Commencement Date, Landlord plans to terminate the
existing lease agreement for the three (3) leased copiers currently located in
the Premises. Tenant shall be responsible for entering into its own copier
leases. The cost of said copiers and supplies (including paper and drums) shall
be the sole responsibility of the Tenant, billed directly to Tenant and paid
directly to the vendor by Tenant.

15.  TAXES.

A.   TAXES PAYABLE BY LANDLORD. Landlord shall pay for any and all real property
taxes and assessments levied or imposed against the Premises, Building and/or
Complex.

B.   TAXES PAYABLE BY TENANT. Tenant shall be liable for and shall pay before
delinquency, taxes levied against any personal property or trade fixtures placed
by Tenant in or about the Premises. If any such taxes on Tenant's personal
property or trade fixtures are levied against Landlord or Landlord's property or
if the assessed value of the Premises is increased by the inclusion therein of a
value placed upon such personal property or trade fixtures of Tenant and if
Landlord, after written notice to Tenant, pays the taxes based on such increased
assessment, which Landlord shall have the right to do regardless of the validity
thereof (but only under proper protest if requested by Tenant), Tenant shall
upon

                                       7
<PAGE>

demand, as the case may be, repay to Landlord the taxes so levied against
Landlord, or the proportion of such taxes resulting from such increase in the
assessment; provided that in any such event Tenant shall have the right, in the
name of Landlord and with Landlord's full cooperation (but without cost to
Landlord), to bring suit in any court of competent jurisdiction to recover the
amount of any such taxes so paid under protest, and any amount so recovered
shall belong to Tenant.

                                       8
<PAGE>

     If the Tenant Improvements in the Premises, whether installed, and/or
paid for by Landlord or Tenant and whether or not affixed to the real
property so as to become a part thereof, are assessed for real property tax
purposes at a valuation higher than the valuation at which standard office
improvements in other space in the Complex are assessed, then the real
property taxes and assessments levied against Landlord or the Complex by
reason of such excess assessed valuation shall be deemed to be taxes levied
against personal property of Tenant and shall be paid by Tenant within thirty
(30) days after Landlord delivers a demand therefore. If the records of the
County Assessor are available and sufficiently detailed to serve as a basis
for determining whether said Tenant Improvements are assessed at a higher
valuation than standard office improvements in other space in the Complex,
such records shall be binding on both the Landlord and the Tenant. If the
records of the County Assessor are not available or sufficiently detailed to
serve as a basis for making said determination, the actual cost of
construction shall be used.

16.  TENANT'S INSURANCE.

A.   LIABILITY INSURANCE. Tenant, at Tenant's expense, agrees to obtain and
keep in force during the term of this Lease a policy of commercial general
liability insurance against any and all claims for personal injury, death,
property damage, or other liabilities related to the condition, use or
occupancy of the Premises or to Tenant's operations on the Premises. Such
insurance shall also contain a cross-liability clause. Notwithstanding such
cross-liability clause, Tenant's obligations pursuant to the indemnity set
forth in Paragraph 18 shall not be limited to the amount of any insurance
required of, or otherwise carried by, Tenant. Such liability insurance shall
be written with limits of not less than One Million Dollars ($1,000,000) per
occurrence and One Million Dollars ($1,000,000) annual aggregate.
Certificates evidencing such insurance shall be furnished to Landlord prior
to Tenant's occupancy of the Premises. The policy or policies affecting such
insurance shall name Landlord and the beneficiary or mortgagee of any deed of
trust or mortgage affecting the Premises as additional insureds, and shall
insure any liability of Landlord, contingent or otherwise; shall be issued by
an insurance company admitted to transact business in the State of California
having a rating of A or better in "Best's Insurance Guide"; and shall provide
that the insurance effected thereby shall not be canceled, except upon thirty
(30) days' prior written notice to Landlord. Said liability insurance shall
be primary and not contributing to any insurance available to Landlord, and
Landlord's insurance shall be in excess thereto. If, during the Lease Term,
in the considered opinion of Landlord's lender or insurance advisor, the
amount of insurance described in this Paragraph 16 is not adequate, Tenant
agrees to increase said coverage to such reasonable amount as Landlord's
lender or insurance advisor, shall deem adequate.

B.   PROPERTY INSURANCE AND WORKER'S COMPENSATION. Tenant shall maintain a
policy or policies of fire and property damage insurance in "special perils"
form with a sprinkler leakage endorsement insuring the personal property,
inventory, trade fixtures and any improvements, alterations or additions made
by or on behalf of Tenant within the Premises in an amount not less than
ninety percent (90%) of the full replacement value thereof and not subject to
a coinsurance clause. Tenant shall also maintain a policy or policies of fire
and property damage insurance in "special perils" form with a sprinkler
leakage endorsement insuring the "Furniture" (as defined in Paragraph 45) in
an amount not less than one hundred percent (100%) of the full replacement
value thereof and not subject to a coinsurance clause (the "Furniture
Insurance Policy"). Tenant shall name Landlord as a loss payee on the
Furniture Insurance Policy. The proceeds from any of such policies shall be
used for the repair or replacement of such items so insured. Tenant shall
also maintain a policy or policies of worker's compensation insurance and any
other employee benefit insurance sufficient to comply with all laws.
Certificates evidencing all of the foregoing insurance shall be furnished to
Landlord prior to Tenant's occupancy of the Premises.

17.  LANDLORD'S INSURANCE; WAIVER OF SUBROGATION.

A.   LANDLORD'S PROPERTY INSURANCE. Landlord shall purchase and keep in
force, a policy or policies of casualty insurance covering loss or damage to
the Premises, Building and related Common Area improvements in the amount of
the full replacement value thereof, providing protection against those perils
covered by "special perils" insurance, and including such other casualty
endorsements as Landlord may elect. Landlord may also maintain at Landlord's
election, or if required by Landlord's lender from time to time, earthquake
and/or flood damage insurance, worker's compensation insurance, sprinkler
leakage insurance and rental income insurance. If the cost of such insurance
is increased due to Tenant's use of the Premises or the Complex, Tenant
agrees to pay to Landlord the full cost of such increase upon Tenant's
receipt of evidence of the same. Tenant shall have no interest in nor any
right to the proceeds of any insurance procured by Landlord as described in
this Paragraph 17.

B.   WAIVER OF SUBROGATION. Notwithstanding anything to the contrary herein,
each party hereby releases the other party, and its partners, officers,
agents, employees and servants, from any and all claims, demands, loss,
expense, or injury to the Premises or to the furnishings, fixtures,
equipment, inventory, or other property in, about, or upon the Premises,
which is caused by or results from perils, events, or happenings which are
the subject of fire or other casualty insurance required to be carried
hereunder irrespective of any negligence on the part of the released party
which may have contributed to or caused such loss; subject to the following
limitations: (i) the party being released shall not be released from any
liability to the extent that such damages are not covered by the insurance
recovery obtained by the releasing party, and (ii) the party being released
shall be responsible for reimbursing the releasing party for any deductible
owed as a result of such damages. Each party shall use commercially
reasonable efforts to obtain, if needed, appropriate endorsements to its
policies of insurance with respect to the foregoing releases; provided,
however, that failure to obtain such endorsements shall not affect the
releases hereinabove given.

18.  INDEMNIFICATION; EXEMPTION OF LANDLORD FROM LIABILITY.

A.   INDEMNIFICATION. Subject to Section 2782 of the California Civil Code,
Tenant shall, at its sole cost and expense, indemnify, protect, defend (with
counsel acceptable to Landlord) and hold harmless Landlord, its partners,
shareholders, officers, directors, attorneys, agents, beneficiaries,
employees, affiliates, contractors, and related entities (collectively,
"Landlord's Related Parties") from and against all liabilities, obligations,
damages, penalties, claims, costs, charges and expenses, including reasonable
attorneys' fees, which may arise in any manner due to injury, death or
property loss caused by, arising out of or in connection with (i) Tenant's
use or occupancy of the Premises; (ii) the conduct of Tenant's business;
(iii) any negligent or willful act of Tenant or Tenant's partners,
shareholders, officers, directors, attorneys, agents, beneficiaries,
employees, affiliates, contractors, and related entities (collectively,
"Tenant's Related Parties"); and/or any breach by Tenant under this Lease;
provided, however, Tenant shall have no obligation to defend or indemnify
Landlord from claims which are caused by the sole negligence or willful
misconduct of Landlord or Landlord's Related Parties.

B.   WAIVER OF RESPONSIBILITY. Except to the extent caused by the willful
misconduct or sole negligence of Landlord, Landlord and Landlord's Related
Parties shall not be liable for, and Tenant waives, all claims for loss or
damage to Tenant's business or damage or injury to person or property
sustained by Tenant or any person claiming by, through, or under Tenant,
resulting from any accident or occurrence in, on or about the Premises, or
any other part of the Complex, including, without limitation, claims for
loss, theft or damage resulting from: (i) any Furnishings or other equipment
or appurtenances being in disrepair; (ii) injury done or occasioned by wind
or weather; (iii) any defect in or failure to operate, for whatever reason,

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<PAGE>

any Furnishings or other equipment or facilities in or about the Building;
(iv) broken glass; (v) any act, omission or negligence of other users or
occupants of the Building or the public; or (vi) any other cause of any
nature. To the maximum extent permitted by law, Tenant agrees to use and
occupy the Premises and the Furnishings at Tenant's own risk.

19.  COMPLIANCE. Tenant, at its sole cost and expense, shall promptly comply
with all laws, statutes, ordinances and governmental rules, regulations or
requirements now or hereafter in effect; with the requirements of any board
of fire underwriters or other similar body now or hereafter constituted; and
with any direction or occupancy certificate issued pursuant to law by any
public officer; provided, however, that no such failure shall be deemed a
breach of these provisions if Tenant, immediately upon notification,
commences to remedy or rectify said failure. The judgment of any court of
competent jurisdiction or the admission by Tenant in any action against
Tenant, whether Landlord be a party thereto or not, that Tenant has violated
any such law, statute, ordinance or governmental rule, regulation,
requirement, direction or provision, shall be conclusive of that fact as
between Landlord and Tenant. This Paragraph shall not be interpreted as
requiring Tenant to make structural changes or structural improvements,
except to the extent such changes or improvements are required as a result of
Tenant's particular use or alteration of the Premises. Tenant shall, at its
sole cost and expense, comply with any and all requirements pertaining to
said Premises, of any insurance organization or company, necessary for the
maintenance of reasonable fire and public liability insurance covering the
Premises.

20.  LIENS. Tenant shall keep the Premises and the Complex free from any
liens arising out of any work performed, materials furnished or obligation
incurred by Tenant. In the event that Tenant shall not, within thirty (30)
days following Tenant's actual notice of the imposition of such lien, cause
the same to be released of record, by bond or otherwise, Landlord shall have,
in addition to all other remedies provided herein and by law, the right, but
not the obligation, to cause the same to be released by such means as it
shall deem proper, including payment of the claim giving rise to such lien.
All sums paid by Landlord for such purpose, and all expenses incurred by it
in connection therewith, shall be payable to Landlord by Tenant on demand
with interest thereon as specified in Paragraph 44 below.

21.  ASSIGNMENT AND SUBLETTING.

A.   RESTRICTION ON TRANSFERS. Tenant shall not assign, transfer, or
hypothecate the leasehold estate under this Lease, or any interest herein,
and shall not sublet the Premises, or any part thereof, or any right or
privilege appurtenant thereto (in any case, a "Transfer"), including, but not
limited to, the parking spaces to be used in connection with Tenant's
occupancy, or suffer any other person or entity to occupy or use the
Premises, or any portion thereof, without, in each case, the prior written
consent of Landlord, which consent will not be unreasonably withheld. Any
attempt to do so without such prior consent shall be wholly void and shall
constitute a default by Tenant under this Lease. In the event Landlord
consents to any Transfer, such consent shall not constitute a waiver of any
of the restrictions of this Paragraph 21 and the same shall apply to each
successive Transfer hereunder, if any. In no event shall Landlord's consent
to a Transfer affect the continuing primary liability of Tenant (which,
following assignment, shall be joint and several with the assignee), or
relieve Tenant of any of its obligations hereunder without an express written
release being given by Landlord. In the event that Landlord consents to a
Transfer under this Paragraph 21, such Transfer shall not be effective until
the assignee or sublessee shall assume all of the obligations of this Lease
on the part of Tenant to be performed or observed and whereby the assignee or
sublessee shall agree that the provisions contained in this Lease shall,
notwithstanding such Transfer, continue to be binding upon it with respect to
all future Transfers. Such assignment or sublease agreement shall be duly
executed and a fully executed copy thereof shall be delivered to Landlord,
and Landlord may collect Rent due hereunder directly from the assignee or
sublessee. Collection of Rent directly from an assignee or sublessee shall
not constitute a consent or a waiver of the necessity of consent to such
assignment or subletting, nor shall such collection constitute a recognition
of such assignee or sublessee as the Tenant hereunder or a release of Tenant
from the performance of all of its obligations hereunder.

B.   PROFITS ON A TRANSFER. In the event that Tenant shall make a permitted
Transfer hereunder of all or any portion of the Premises (the "Transfer
Space"), then the following shall apply: Tenant shall pay Landlord monthly,
as Additional Rent, at the same time as the monthly installment of Basic Rent
required hereunder, one hundred percent (100%) of the "Profit" paid by the
transferee pursuant to the terms reserved in the agreement of Transfer,
assignment or sublease. For purposes of this paragraph, "Profit" shall mean
all rent and other amounts paid by the transferee to Tenant pursuant to the
terms of the Transfer (including, without limitation, any amounts paid by the
transferee for the right to use the Furniture, as defined in Paragraph 45)
which are in excess of the applicable Basic Rent and Additional Rent payable
under this Lease, after deducting and paying therefrom Tenant's reasonable
costs incurred with the Transfer, which shall be reasonably approved by
Landlord in writing, including, but not limited to, reasonable concessions,
reasonable attorneys' fees, reasonable broker's commissions and reasonable
tenant improvement allowances. As a condition to deducting such costs and
expenses, Tenant shall provide to Landlord evidence of the costs incurred and
any other information reasonably acceptable to Landlord to document such
expenditures. Tenant also shall furnish to Landlord upon request from
Landlord a complete statement setting forth in detail the computation of all
Profit derived and to be derived from such Transfer, such computation to be
made in accordance with generally accepted accounting principles. Tenant
agrees that Landlord or its authorized representatives shall be given access
at all reasonable times to the books, records and papers of Tenant relating
to the calculation of such Profit, and Landlord shall have the right to make
copies thereof.

C.   RECAPTURE RIGHT. In lieu of giving or withholding consent pursuant to
Paragraph 21.A above, Landlord may, at its option, terminate this Lease (or
in the case of a proposed subletting or assignment of a portion of the
Premises, elect to terminate this Lease as respects that portion) upon thirty
(30) days' prior notice and release Tenant from any liability under this
Lease for Basic Rent and Additional Rent (as to that portion of the Premises
involved) accruing after the effective date of such termination ("Landlord's
Recapture Right"), subject to the following provisions. Landlord shall
exercise Landlord's Recapture Right, if at all, by giving Tenant notice of
such exercise not later than thirty (30) days after Tenant notifies Landlord
that Tenant has determined to assign the Lease or sublease the Premises
(whether or not Tenant has located a specific proposed transferee). If
Landlord fails to exercise Landlord's Recapture Right within said thirty (30)
day period, such right shall be of no further force or effect with respect to
the transaction in question.

     In the event Landlord elects to terminate the Lease as set forth above,
Tenant may negate Landlord's election by withdrawing its request for
Landlord's consent to the Transfer by delivering notice thereof to Landlord
within five (5) days of Tenant's receipt of Landlord's notice. In
consideration for Landlord's right and election to terminate this Lease as
set forth above, Landlord will release Tenant from liability under this Lease
for future Basic Rent and Additional Rent with respect to the Premises (or
the portion of the Premises subject to the proposed Transfer) in connection
with the exercise of such right by Landlord. Landlord and Tenant agree and
acknowledge that Landlord's Recapture Right as set forth above is intended to
permit Landlord to maintain control over the leasing of space in the
Premises, to protect its interest in the Premises and to prevent such
interest from being impaired. Tenant understands the nature of this right and
has approved the recapture provisions in consideration for (i) Tenant's right
to negate Landlord's recapture election by withdrawing its request for a
Transfer and (ii) Landlord's agreement to release Tenant from liability for
future Rent due with respect to the recaptured portion of the Premises
pursuant to the provisions of this Section.

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<PAGE>

D.   PERMITTED TRANSFERS. Notwithstanding anything to the contrary herein,
Tenant may, without Landlord's prior written consent and without being
subject to the provisions of this Paragraph 21, sublet the Premises or assign
the Lease to (a) a currently existing entity controlling, controlled by or
under common control with Tenant, (b) a successor entity related to Tenant by
merger, consolidation, reorganization, or government action, or (c) a
purchaser of substantially all of Tenant's assets. A sale or transfer of
Tenant's capital stock shall not be deemed a Transfer.

22.  SUBORDINATION AND MORTGAGES. If Landlord's title in the Premises or the
Complex is now or hereafter encumbered by the lien of any mortgage or deed of
trust to secure a loan from a lender (hereinafter referred to as a "Lender")
to Landlord, Tenant shall, at the request of Landlord or Lender, execute in
writing an agreement subordinating its rights under this Lease to the lien of
such mortgage or deed of trust, or, if so requested, agreeing that the lien
of Lender's mortgage or deed of trust shall be or remain subject and
subordinate to the rights of Tenant under this Lease. Notwithstanding any
such subordination, Tenant's possession under this Lease shall not be
disturbed if Tenant is not in default and so long as Tenant shall pay all
Rent and fully and faithfully observe and perform all of the provisions set
forth in this Lease within applicable notice and cure periods. Tenant
acknowledges that upon receipt from a lender of a "Demand to Pay Rent to
Party other than Landlord" under Section 2938 of the California Civil Code,
Tenant shall be required to pay all Rents to the Lender as they become due.

23.  ENTRY BY LANDLORD. At all reasonable times after 24 hours prior notice
(except in emergencies, in which case no notice is required) Landlord shall
have, the right to enter the Premises to inspect them; to perform any
services to be provided by Landlord hereunder; to submit the Premises to
prospective purchasers, lenders, or tenants and to post "For Rent" or "For
Sale" or other signs relative to the same; to post notices of
nonresponsibility; and to alter, improve or repair the Premises, all without
abatement of Rent; and may erect scaffolding and other necessary structures
in or through the Premises where reasonably required by the character of the
work to be performed; provided, however that Landlord shall endeavor not to
unreasonably interfere with Tenant's use of the Premises and shall comply
with Tenant's reasonable security measures. For each of the foregoing
purposes, Landlord shall at all times have and retain a key with which to
unlock all of the doors in an emergency. Any entry to the Premises obtained
by Landlord by any of said means, or otherwise, shall not under any
circumstances be construed or deemed to be a forcible or unlawful entry into
or a detainer of the Premises or an eviction, actual or constructive, of
Tenant from the Premises or any portion thereof. Landlord shall also have the
right at any time to change the arrangement or location of entrances or
passageways, doors and doorways, corridors, elevators, stairs, toilets or
other public parts of the Complex and to change the name, number or
designation by which the Complex is commonly known, and none of the foregoing
shall be deemed an actual or constructive eviction of Tenant, or shall
entitle Tenant to any damages or reduction of Rent hereunder.

24.  TENANT'S DEFAULT. The occurrence of any of the following shall be an
"Event of Default" (sometimes referred to herein as a "default") by Tenant
and a material breach of this Lease:

     (1)  Tenant shall fail to make any payment owed by Tenant under this
Lease, as and when due, and such failure is not cured within three (3) days
after Tenant receives written notice from Landlord specifying such failure.
At Landlord's election, any such notice shall be concurrent with, and not in
addition to, any such notice required under Section 1161 of the California
Code of Civil Procedures;

     (2)  Tenant shall fail to observe, keep or perform any of the terms,
covenants, agreements or conditions under this Lease that Tenant is obligated
to observe or perform, other than that described in subsection (1) above, for
a period of thirty (30) days after Tenant receives written notice from
Landlord of said failure; provided, however, that if the nature of Tenant's
default is such that more than thirty (30) days are reasonably required for
its cure, then Tenant shall not be deemed to be in default under this Lease
if Tenant shall commence the cure of such default within said thirty (30) day
period and diligently prosecute the same to completion within such time
period as is reasonably needed but not to exceed ninety (90) days from the
date of Landlord's notice. At Landlord's election, any such notice from
Landlord shall be concurrent with, and not in addition to, any notice
required under Section 1161 of the California Code of Civil Procedure;

     (3)  Tenant shall (i) make any general arrangement or assignment for the
benefit of creditors; (ii) become a "debtor" as defined in 11 U.S.C. Section
101 or any successor statute thereto (unless, in case of a petition filed
against Tenant, the same is dismissed within 60 days); (iii) suffer the
appointment of a trustee or receiver to take possession of substantially all
of Tenant's assets located at the Premises or of Tenant's interest in this
Lease, where possession is not restored to Tenant within 30 days; or (iv)
suffer the attachment, execution or other judicial seizure of substantially
all of Tenant's assets located at the Premises or of Tenant's interest in
this Lease, where such seizure is not discharged within 30 days. The
provisions of this subparagraph 24(3) shall also apply to any Guarantor of
this Lease. However, in the event that any provision of this subparagraph is
contrary to any applicable law, such provision shall be of no force or effect;

     (4)  Tenant shall vacate or abandon the Premises at any time during the
Lease Term (except that Tenant may vacate so long as it pays Rent, and
otherwise performs its obligations hereunder); or

     (5)  A default beyond applicable cure periods exists under any other
leases, licenses or occupancy agreements or arrangements between Landlord and
Tenant.

25.  LANDLORD'S REMEDIES AND RIGHTS

A.   TERMINATION OF LEASE. In case of an Event of Default by Tenant, Landlord
shall have the right, in addition to all other rights available to Landlord
under this Lease or now or hereafter permitted by law or in equity, to
terminate this Lease by providing Tenant with a notice of termination. Upon
termination, Landlord may recover any damages proximately caused by Tenant's
failure to perform under this Lease, or which are likely in the ordinary
course of business to be incurred, including any amount expended or to be
expended by Landlord in an effort to mitigate damages, as well as any other
damages which Landlord is entitled to recover under any statute now or
hereafter in effect. Landlord's damages include, without limitation, the
following:

     (1)  the worth at the time of the award of any unpaid Rent which had
been earned at the time of termination;

     (2)  the worth at the time of the award of the amount by which the
unpaid Rent which would have been earned after termination until the time of
the award exceeds the amount of the loss of such Rent that Tenant proves
could have been reasonably avoided; and

     (3)  the worth at the time of the award of the amount by which the
unpaid Rent for the balance of the term after the time of the award exceeds
the amount of the loss of such Rent that Tenant proves could have been
reasonably avoided.

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<PAGE>

     As used in subparagraphs (1) and (2) above, the "worth at the time of
award" shall be determined by allowing interest at the lesser of four percent
(4%) in excess of the reference rate (or prime rate) of the Bank of America,
N.T. & S.A., as it may be adjusted from time to time (the "Interest Rate")
and the maximum rate of interest permitted by applicable law. As used in
subparagraph (3), the "worth at the time of award" shall be determined by
discounting to present value such amount at one percent (1%) more than the
discount rate of the Federal Reserve Bank in San Francisco in effect at the
time of the award.

B.   CONTINUATION OF LEASE. In accordance with California Civil Code Section
1951.4 (or any successor statute), Tenant acknowledges that in the event
Tenant has breached this Lease and abandoned the Premises, this Lease shall
continue in effect for so long as Landlord does not terminate Tenant's right
to possession, and Landlord may enforce all its rights and remedies under
this Lease, including the right to recover the Rent as it becomes due under
this Lease. Acts of maintenance or preservation or efforts to relet the
Premises or the appointment of a receiver upon initiative of Landlord to
protect Landlord's interest under this Lease shall not constitute a
termination of Tenant's right to possession.

C.   RIGHT OF ENTRY. In case of an Event of Default by Tenant, Landlord shall
also have the right, after terminating this Lease, to enter the Premises and
remove all persons and personal property from the Premises, such property
being removed and stored in a public warehouse or elsewhere at Tenant's sole
cost and expense for at least thirty (30) days, and after such thirty (30)
day period, Landlord shall have the right to discard or otherwise dispose of
such property in accordance with California law. No removal by Landlord of
any persons or property in the Premises shall constitute an election to
terminate this Lease. Such an election to terminate may only be made by
Landlord in writing, or decreed by an arbitrator or a court competent
jurisdiction. Landlord's right of entry shall include the right to remodel
the Premises and relet the Premises. All costs incurred in such entry and
reletting shall be paid by Tenant. Rents collected by Landlord from any other
Tenant which occupies the Premises shall be offset against the amounts owed
to Landlord by Tenant shall be responsible for any amounts not recovered by
Landlord from any other tenant which occupies the Premises. Any payments made
by Tenant shall be credited to the amounts owed by Tenant in the sole order
and discretion of Landlord, irrespective of any designation or request by
Tenant. No entry by Landlord shall prevent Landlord from later terminating
this Lease by written notice.

D.   REMEDIES. Tenant hereby waives, for itself and all persons claiming by,
through or under Tenant, all rights and privileges which it might have under
any present or future law to redeem the Premises or to continue this Lease
after being legally dispossessed or ejected from the Premises. The rights and
remedies of Landlord set forth in this Lease are not exclusive, and Landlord
may exercise any other right or remedy available to it under this Lease, at
law or in equity.

26.  DESTRUCTION. In the event the Premises are destroyed in whole or in part
from any cause, except damage and destruction caused from vandalism or
accident for which Tenant is responsible for under Paragraph 12, Landlord
may, at its option:

     (a)  Rebuild or restore the Premises to their condition prior to the
damage or destruction, or

     (b)  Terminate this Lease, provided that the Premises is damaged to the
extent of twenty percent (20%) of the replacement cost thereof or to any
extent if (i) the damage is not covered by insurance and/or (ii) the damage
occurs during the last twelve (12) months of the Lease Term.

     Landlord shall give Tenant notice in writing within thirty (30) days
from the destruction of the Premises of its election to either rebuild and
restore them, or to terminate this Lease. In the event Landlord agrees to
rebuild or restore the Premises, Landlord shall do so promptly at its
expense. Unless such damage is caused by Tenant or Tenant's Related Parties,
Tenant shall be entitled to a reduction in Rent while such repair is being
made in the proportion that the area of the Premises rendered untenantable by
such damage bears to the total area of the Premises. If Landlord initially
estimates that the rebuilding or restoration will exceed 180 days or if
Landlord does not complete the rebuilding or restoration within one hundred
eighty (180) days following the date of destruction (such period of time to
be extended for delays caused by the fault or neglect of Tenant or because of
Acts of God, acts of public agencies, labor disputes, strikes, fires, freight
embargoes, rainy or stormy weather, inability to obtain materials, supplies
or fuels, acts of contractors or subcontractors, or delay of the contractors
or subcontractors due to such causes or other contingencies beyond the
control of Landlord), then Tenant shall have the right to terminate this
Lease by giving thirty (30) days prior written notice to Landlord.
Notwithstanding anything herein to the contrary, Landlord's obligation to
rebuild or restore shall not include restoration of Tenant's trade fixtures,
equipment (including telecommunication equipment, whether or not located
within the Premises), merchandise, or any improvements, alterations, or
additions made by Tenant to the Premises, which Tenant shall forthwith
replace or fully repair at Tenant's sole cost and expense provided this Lease
is not cancelled according to the provisions above.

     Unless this Lease is terminated pursuant to the foregoing provisions,
this Lease shall remain in full force and effect. Tenant hereby expressly
waives any statutory rights of termination which may arise by reason of any
partial or total destruction of the Premises.

     In the event the damage or destruction of the Premises is caused by
Tenant or Tenant's Related Parties, Tenant shall pay the deductible portion
of Landlord's insurance proceeds.

27.  EMINENT DOMAIN. If all or any part of the Premises shall be taken by any
public or quasi-public authority under the power of eminent domain or
conveyance in lieu thereof, this Lease shall terminate as to any portion of
the Premises so taken or conveyed on the date when title vests in the
condemnor, and Landlord shall be entitled to any and all payment, income,
rent, award, or any interest therein whatsoever which may be paid or made in
connection with such taking or conveyance, and Tenant shall have no claim
against Landlord or otherwise for the value or any unexpired term of this
Lease. Notwithstanding the foregoing Paragraph, any compensation specifically
awarded to Tenant for loss of business, Tenant's personal property, moving
cost or loss of goodwill, shall be and remain the property of Tenant.

     If (i) any action or proceeding is commenced for such taking of the
Premises or any part thereof, or if Landlord is advised in writing by any
entity or body having the right or power of condemnation of its intention to
condemn the Premises or any portion thereof, or (ii) any of the foregoing
events occur with respect to the taking of any other space in the Complex, or
(iii) any such spaces are taken or conveyed in lieu of such taking, Landlord
shall have the right to terminate this Lease by giving Tenant written notice
thereof within sixty (60) days of the date of receipt of said written advice,
or commencement of said action or proceeding, taking or conveyance, which
termination shall take place as of the first to occur of the last day of the
calendar month next following the month in which such notice is given or the
date on which title to the Premises shall vest in the condemnor.

     In the event of a partial taking or conveyance of the Premises, if the
portion of the Premises taken or conveyed is so substantial that the Tenant
can no longer reasonably conduct its business, Tenant shall have the
privilege of terminating this Lease within sixty (60) days from the date of
such taking or conveyance, upon written notice to Landlord of its intention
to do so, and upon giving of such notice this Lease shall terminate on the
last day of the calendar month

                                       12

<PAGE>

next following the month in which such notice is given, upon payment by
Tenant of the Rent from the date of such taking or conveyance to the date of
termination.

     If a portion of the Premises shall be taken by condemnation or
conveyance in lieu thereof and neither Landlord nor Tenant terminate this
Lease as provided herein, this Lease shall continue in full force and effect
as to the part of the Premises not so taken or conveyed, and the Rent herein
shall be apportioned as of the date of such taking or conveyance so that
thereafter the Rent to be paid by Tenant shall be in the ratio that the area
of the portion of the Premises not so taken or conveyed bears to the total
area of the Premises prior to such taking.

28.  SALE OR CONVEYANCE BY LANDLORD. In the event of a sale or conveyance of
the Complex or any interest therein and transfer of the Security Deposit, by
any owner of the reversion then constituting Landlord, the transferor shall
thereby be released from any liability upon any of the terms, covenants or
conditions (express or implied) herein contained accruing after such transfer
in favor of Tenant, and in such event, insofar as such transfer is concerned,
Tenant agrees to look solely to the responsibility of the successor in
interest of such transferor in and to the Complex and this Lease. This Lease
shall not be affected by any such sale or conveyance, and Tenant agrees to
attorn to the successor in interest of such transferor.

29.  ATTORNMENT TO LENDER OR THIRD PARTY. In the event the interest of
Landlord in the Complex is encumbered by mortgage or deed of trust, and such
interest is acquired by the lender or any third party through judicial
foreclosure, non-judicial foreclosure, or conveyance in lieu thereof, Tenant
hereby agrees to attorn to such purchaser or transferee and to recognize such
purchaser or transferee as the landlord under this Lease. In the event the
lien of the deed of trust securing the loan from a lender to Landlord is
prior and paramount to the Lease, this Lease shall nonetheless continue in
full force and effect for the remainder of the unexpired term hereof, at the
same rental herein reserved and upon all the other terms, conditions and
covenants herein contained.

30.  HOLDING OVER. Any holding over by Tenant after expiration or other
termination of the Lease Term shall not constitute a renewal of the Lease or
give Tenant any rights to the Premises except as expressly provided in this
Lease. Tenant shall have no right to hold over whatsoever, except with the
prior written consent of Landlord, which consent may be withheld in
Landlord's sole discretion. Any holding over after the expiration or other
termination of the Lease Term, with the prior written consent of Landlord,
shall be construed to be a tenancy from month to month, on the same terms and
conditions herein specified insofar as applicable except that the monthly
Basic Rent shall be increased to an amount equal to one hundred fifty (150%)
percent of the monthly Basic Rent required during the last month of the Lease
Term.

31.  CERTIFICATE OF ESTOPPEL. Tenant shall, within ten (10) business days
after written notice from Landlord, at any time, execute, acknowledge and
deliver to Landlord a statement in writing (i) certifying that this Lease is
unmodified and in full force and effect (or, if modified, stating the nature
of such modification and certifying that this Lease, as so modified, is in
full force and effect) and the date to which the rent and other charges are
paid in advance, if any; (ii) acknowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of Landlord hereunder, or
specifying such defaults, if any are claimed; and (iii) certifying to such
other matters concerning the Premises, the Lease or Tenant's tenancy as
Landlord may request. Any such statement may be conclusively relied upon by
any prospective purchaser or encumbrancer of the Premises. Tenant's failure
to deliver such statement within such time shall be conclusive upon Tenant
that this Lease is in full force and effect, without modification except as
may be represented by Landlord, that there are no uncured defaults in
Landlord's performance, and that not more than one month's Rent has been paid
in advance.

32.  CONSTRUCTION CHANGES. Landlord does not guarantee the accuracy of any
drawings supplied to Tenant and verification of the accuracy of such drawings
rests with Tenant.

33.  RIGHT OF LANDLORD TO PERFORM. All terms, covenants and conditions of
this Lease to be performed or observed by Tenant shall be performed or
observed by Tenant at Tenant's sole cost and expense and without any
reduction of Rent. If Tenant shall fail to pay Rent, required to be paid by
it hereunder, or shall fail to perform any other term or covenant required to
be performed by it hereunder, and such failure shall continue for three (3)
days after written notice thereof from Landlord (as to monetary defaults) or
thirty (30) days thereafter (as to non-monetary defaults) or such shorter
period of time as Landlord may reasonably determine in the case of emergency,
Landlord, without waiving or releasing Tenant from any obligation of Tenant
hereunder, may, but shall not be obligated to, make any such payment or
perform any such other term or covenant on Tenant's part to be performed. All
sums so paid by Landlord and all necessary costs of such performance by
Landlord together with interest thereon at the rate of interest specified in
Paragraph 44 below, shall be paid to Landlord on demand as Additional Rent,
and Landlord shall have (in addition to any other right or remedy of
Landlord) the same rights and remedies in the event of nonpayment by Tenant
of Rent hereunder.

34.  ATTORNEYS' FEES. In the event that either Landlord or Tenant should
bring suit or become involved in any proceeding for the possession of the
Premises, for the recovery of any sum due under this Lease, or because of the
breach of any provision of this Lease, or for any other relief against the
other party hereunder, then all costs and expenses, including reasonable
attorneys' fees, incurred by the prevailing party therein shall be paid by
the other party, which obligation on the part of the other party shall be
deemed to have accrued on the date of the commencement of such action or
proceeding and shall be enforceable whether or not the action or proceeding
is prosecuted to judgment. Should Landlord be named as a defendant in any
suit brought against Tenant in connection with or arising out of Tenant's
occupancy hereunder, Tenant shall pay to Landlord its costs and expenses
incurred in such suit, including a reasonable attorneys' fees.

35.  WAIVER. No covenant, term or condition or the breach thereof shall be
deemed waived, except by written consent of the party against whom the waiver
is claimed, and any waiver of the breach of any covenant, term or condition
shall not be deemed to be a waiver of any other covenant, term or condition
or any subsequent failure of the party failing to perform or observe the same
or any other such term, covenant or condition. Acceptance by Landlord of any
performance by Tenant after the time the same shall have become due shall not
constitute a waiver by Landlord of the breach or default of any covenant,
term or condition unless otherwise expressly agreed to by Landlord in writing.

36.  NOTICES. All notices, demands, requests, advises or designations
(collectively "Notices") which may be or are required to be given by either
party to the other party hereunder shall be in writing. All Notices shall be
sufficiently given, made or delivered if (i) to Tenant, personally delivered
to the address set forth in Paragraph 1.L, or (ii) to Landlord, if personally
delivered to the address set forth in Paragraph 1.L. Notice shall also be
sufficiently given, made or delivered if sent by (a) postage prepaid United
States mail or overnight courier, addressed as specified in Paragraph 1.L, or
(b) facsimile transmission to the numbers specified in Paragraph 1L, with
confirming copy sent via United States mail. Each Notice referred to in this
Paragraph shall be deemed received on the date of the personal service or
facsimile transmission, the next business day after sending via overnight
courier, or on the third (3rd) business day after mailing thereof by United
States mail, postage prepaid, as the case may be. Either party may change its
address for delivery of notices by giving a notice as set forth herein.

                                       13

<PAGE>

37.  EXAMINATION OF LEASE. Submission of this instrument for examination or
signature by Tenant does not constitute a reservation of or option for a
lease, and this instrument is not effective as a lease or otherwise until its
execution and delivery by both Landlord and Tenant.

38.  DEFAULT BY LANDLORD. Landlord shall not be in default unless Landlord
fails to perform obligations required of Landlord within a reasonable time,
but in no event earlier than thirty (30) days after written notice by Tenant
to Landlord and to the holder of any mortgage or deed of trust covering the
Premises whose name and address shall have previously been furnished to
Tenant in writing, specifying wherein Landlord has failed to perform such
obligations; provided, however, that if the nature of Landlord's obligations
is such that more than thirty (30) days are required for performance, then
Landlord shall not be in default if Landlord commences performance within
such thirty (30) day period and thereafter diligently prosecutes the same to
completion.

39.  AUTHORITY. If Tenant is a corporation (or other entity) Tenant
represents and warrants that each individual executing this Lease on behalf
of said corporation (or other entity) is duly authorized to execute and
deliver this Lease on behalf of said corporation (or other entity) in
accordance with the by-laws of said corporation (or in accordance with the
agreement of such other entity) and that this Lease is binding upon said
corporation (or other entity) in accordance with its terms.

40.  LIMITATION OF LIABILITY. In consideration of the benefits accruing
hereunder, Tenant and all successors and assigns covenant and agree that, in
the event of any actual or alleged failure, breach or default hereunder by
Landlord, the sole and exclusive remedy and source of recovery for any
judgment or award shall be against Landlord's interest in the Premises,
including insurance, condemnation, sale proceeds and income therefrom. Tenant
agrees that the foregoing covenant and agreement shall be applicable to any
covenant or agreement either expressly contained in this Lease or imposed by
statute or at common law.

41.  BROKERS. Tenant warrants that it has had no dealings with any real
estate broker(s) or agent(s) in connection with the negotiation of this Lease
and that it knows of no real estate broker or agent who is entitled to a
commission in connection with this Lease. Tenant shall indemnify, defend,
protect and hold harmless Landlord and Landlord's agents, employees and
independent contractors from and against any and all liabilities, losses,
costs, expenses and damages (including attorneys' fees and costs) arising out
of any allegations or claim by any third party for a commission or fee in
connection with the negotiation of this Lease.

42.  SIGNS. Landlord shall provide Tenant, at Landlord's expense, an
identification sign on the entry door to the Premises and shall allow
Landlord's existing monument sign on Milpitas Boulevard to be altered to
reflect Tenants name and logo at Tenant's expense. No sign, placard, picture,
advertisement, name or notice shall be inscribed, displayed or printed or
affixed on or to any part of the outside of the Premises or any exterior
windows of the Premises without the prior written consent of Landlord. If
Tenant does not obtain Landlord's prior written consent pursuant to the
preceding sentence, Landlord shall have the right to remove any such sign,
placard, picture, advertisement, name or notice without notice to and at the
expense of Tenant. All approved signs or lettering on outside doors shall be
printed, painted, affixed or inscribed at the expense of Tenant or by a
person approved of by Landlord and shall be removed and restored upon the
expiration or earlier termination of this Lease at Tenant's sole cost and
expense. Prior to the expiration or the earlier termination of the Lease,
Tenant shall restore Landlord's monument sign to the original "Adaptec, Inc."
sign or, at Landlord's option, pay Landlord Eight Thousand Dollars ($8,000)
for Landlord's cost in replacing Tenant's sign with the original "Adaptec,
Inc." sign or with a sign for another tenant comparable to the original
"Adaptec, Inc." sign.

     Tenant shall not place anything or allow anything to be placed near the
glass of any window, door partition or wall, which may, in Landlord's
reasonable judgment, appear unsightly from outside the Premises.

43.  HAZARDOUS MATERIALS.

A.   DEFINITIONS. As used herein, the term "Hazardous Material" shall mean
any substance or material which has been determined by any state, federal, or
local government authority to be capable of posing a risk of injury to health
or safety including all of those materials and substances designated as
hazardous or toxic by the Environmental Protection Agency, the California
Water Quality Control Board, the Department of Labor, the California
Department of Industrial Relations, the Department of Transportation, the
Department of Agriculture, the Department of Human Services, the Food and
Drug Agency or any other governmental agency which regulates hazardous or
toxic substances in the environment. Without limiting the generality of the
foregoing, the term "Hazardous Material" shall include (i) all of those
materials and substances defined as "Toxic Materials" in Sections 66680
through 66685 of Title 22 of the California Administrative Code, Division 4,
Chapter 30, as the same shall be amended from time to time, or any other
federal, state or local statute, law, ordinance, resolution, code, rule,
regulation, order or decree regulating, relating to, or imposing liability or
standards of conduct concerning, any hazardous, toxic or dangerous waste,
substance or material as now or at any time hereafter in effect, (ii) any
substance, product, waste or other material of any nature whatsoever which
may give rise to liability under any statutory or common law theory based on
negligence, trespass, intentional tort, nuisance or strict liability or under
any reported decisions of a state or federal court, or (iii) petroleum or
crude oil other than petroleum and petroleum products which are contained
within regularly operated motor vehicles.

B.   RESTRICTION ON USE. Except for small quantities of products used in
normal office environments (e.g., toner, white out), Tenant shall not cause
or permit any Hazardous Material to be used, generated, released, discharged,
transported to or from, stored, or disposed of in or about the Premises, the
Complex, or any other land or improvements in the vicinity of the Premises or
the Complex, without the prior written consent of Landlord, which consent may
be withheld in Landlord's sole and absolute discretion. Without limiting the
generality of the foregoing, Tenant, at its sole cost and expense, shall
comply with all laws relating to the storage, use, generation, release,
transportation and disposal of Hazardous Materials. If the presence of any
Hazardous Material on the Premises caused by Tenant or Tenant's Related
Parties results in contamination of the Premises, the Complex, or any nearby
premises, Tenant, at its sole cost and expense, shall promptly take all
actions necessary to return the same to the condition existing prior to such
contamination.

     Tenant shall indemnify, defend, protect and hold harmless Landlord and
Landlord's agents, employees and independent contractors from and against any
and all claims, judgments, damages (including, without limitation, punitive
damages), losses, penalties, fines, demands, liabilities, encumbrances,
liens, costs and expenses of investigation and defense of any claim,
including, without limitation, reasonable attorneys' fees and disbursements
and consultants' fees, arising out of, relating to or resulting from any
storage, use, generation, discharge, treatment, transportation, release or
disposal by Tenant, or Tenant's Related Parties, of any Hazardous Material
upon, about, above or beneath the Premises, the Complex or any nearby
premises. This indemnity shall survive the expiration or earlier termination
of this Lease. Tenant shall not suffer any lien to be recorded against the
Premises or the Complex as a consequence of a Hazardous Material, including
any so-called state, federal or local "super fund" lien related to the "clean
up" of a Hazardous Material in or about the Premises, the Complex or any
other premises.

                                       14

<PAGE>

     Under no circumstance shall Tenant be liable for, and Landlord shall
indemnify, defend, protect and hold harmless Tenant and Tenant's Related
Parties from and against any and all claims, judgments, damages (including,
without limitation, punitive damages), losses, penalties, fines, demands,
liabilities, encumbrances, liens, costs and expenses of investigation and
defense of any claim, including, without limitation, reasonable attorneys'
fees and disbursements and consultants' fees, arising out of, relating to or
resulting from any Hazardous Material present at any time on or about the
Complex, or the soil, air, improvements, groundwater or surface water
thereof, or the violation of any laws, orders or regulations, relating to any
such Hazardous Material, except to the extent that any of the foregoing is
caused by or negligently or willfully exacerbated by Tenant or Tenant's
Related Parties.

44.  INTEREST. Any sum accruing to Landlord under the provisions of this
Lease which shall not be paid by Tenant within thirty (30) days after such
sum becomes due, shall bear interest from the expiration of such 30 day
period, until paid, at the Interest Rate, or the maximum rate then permitted
under applicable law, whichever is less.

45.  USE OF FURNITURE.

A.   FURNITURE. Commencing on the Commencement Date and terminating upon the
expiration or earlier termination of the Lease, Tenant may use, at no
additional rent, the furniture located in the Premises as of the Commencement
Date (the "Furniture"). Tenant shall maintain the Furniture in the same
condition as received, ordinary wear and tear excepted. Tenant shall be
responsible for insuring the Furniture from and after the Commencement Date
pursuant to Paragraph 16.B. In the event of a casualty, Tenant shall restore
the Furniture at Tenant's cost or, at Landlord's election, pay to Landlord
the insurance proceeds from the Furniture Insurance upon written demand by
Landlord. Tenant may, at its cost, reconfigure the Furniture as required upon
prior written notice to Landlord (the "Reconfiguration Notice"); provided,
however, Landlord may require that Tenant return the Furniture to its
original location and configuration on or before the expiration or earlier
termination of the Lease at Tenant's cost by written notice to Tenant of such
requirement within ten (10) days of the Reconfiguration Notice. The Furniture
is originally configured as shown on EXHIBIT F hereto. Tenant shall not
remove all or any portion of the Furniture from the Premises at any time.
Notwithstanding the foregoing, Tenant shall not reconfigure the Furniture in
any manner that will affect the splines of the Furniture without Landlord's
prior written consent, which consent shall not be unreasonably withheld. Any
additions made or attached to the Furniture (including, without limitation,
any additional cubicles purchased by Tenant) shall be at Tenant's sole cost,
and any such additions shall be deemed part of the Furniture hereunder and,
upon the expiration or earlier termination of the Lease, shall become the
property of Landlord and shall be surrendered in the Premises.
Notwithstanding the foregoing, Landlord may require that Tenant remove any
such additions upon the expiration or earlier termination of the Lease.

B.   OWNERSHIP OF FREE STANDING FURNISHINGS. Notwithstanding the foregoing,
in the event Roxio, Inc., the originally named "Tenant", occupies the entire
Premises for the entire sixty (60)-month Lease Term, has not exercised the
early termination right set forth in Section 46 of the Lease, is not in
default under the Lease, and has not at any time subleased any portion of the
Premises or assigned any interest in the Lease, then those items of Furniture
which are free standing furnishings (the "Free Standing Furnishings")
including, without limitation, file cabinets, desk chairs and conference room
tables and chairs, shall become the property of Tenant and shall be removed
by Tenant from the Premises at the expiration of the Lease Term.
Notwithstanding the foregoing, all light fixtures and cubicle partitions in
the Premises and all items of Furniture attached thereto including, without
limitation, all tack boards, shelves, flipper units, work surfaces and paper
management systems shall not be considered Free Standing Furnishings and
shall at all times remain the property of Landlord.

C.   PERSONAL RIGHTS. Tenant's rights to use the Furniture pursuant to this
Paragraph 45 shall be personal to Roxio, Inc. and shall not be assigned or
transferred, nor shall the Furniture be subleased, without the prior written
consent of Landlord, which consent shall not be unreasonably withheld. In
lieu of giving or withholding such consent, Landlord may elect to terminate
Tenant's rights hereunder to use the Furniture by written notice to Tenant,
in which event Landlord shall promptly remove the Furniture from the Premises
at Landlord's cost.

46.  EARLY TERMINATION RIGHT. Tenant shall have the one (1) time right to
terminate this Lease effective on May 1, 2002 (the "Early Termination Date")
upon written notice to Landlord at least one hundred twenty (120) days prior
to the Early Termination Date. If Tenant fails to timely deliver such
termination notice to Landlord as provided in the immediately preceding
sentence, then Tenant shall be deemed to have waived such right to terminate
the Lease early. Such early termination right shall be personal to Roxio,
Inc. and may not be assigned or transferred.

47.  MISCELLANEOUS AND GENERAL PROVISIONS.

A.   USE OF BUILDING NAME. Tenant shall not, without the written consent of
Landlord, use the name of the Building for any purpose other than as the
address of the business conducted by Tenant in the Premises.

B.   GOVERNING LAW; PARTIAL INVALIDITY. This Lease shall in all respects be
governed by and construed in accordance with the laws of the State of
California. If any provision of this Lease shall be invalid, unenforceable or
ineffective for any reason whatsoever, all other provisions hereof shall be
and remain in full force and effect.

C.   DEFINITIONS; BINDING EFFECT. The term "Premises" includes the space
leased hereby and any improvements now or hereafter installed therein or
attached thereto. The term "Landlord" or any pronoun used in place thereof
includes the plural as well as the singular and the successors and assigns of
Landlord. The term "Tenant" or any pronoun used in place thereof includes the
plural as well as the singular and individuals, firms, associations,
partnerships and corporations, and their and each of their respective heirs,
executors, administrators, successors and permitted assigns, according to the
context hereof, and the provisions of this Lease shall inure to the benefit
of and bind such heirs, executors, administrators, successors and permitted
assigns.

     The term "person" includes the plural as well as the singular and
individuals, firms, associations, partnerships and corporations. Words used
in any gender include other genders. If there be more than one Tenant, the
obligations of Tenant hereunder are joint and several. The paragraph headings
of this Lease are for convenience of reference only and shall have no effect
upon the construction or interpretation of any provision hereof.

D.   TIME OF THE ESSENCE. Time is of the essence of this Lease and of each
and all of its provisions.

E.   QUITCLAIM OF LEASEHOLD INTEREST. At the expiration or earlier
termination of this Lease, Tenant shall execute, acknowledge and deliver to
Landlord, within ten (10) days after written demand from Landlord to Tenant,
any quitclaim deed or other document required by any reputable title company
licensed to operate in the State of California, to remove the cloud or
encumbrance created by this Lease from the real property of which the
Premises are a part.

F.   ENTIRE AGREEMENT. All exhibits, riders and attachments referenced in
this Lease are hereby incorporated into this Lease. This instrument along
with any exhibits, riders and attachments hereto constitutes the entire
agreement between Landlord and Tenant relative to the lease of the Premises
and this agreement and the exhibits and attachments may be altered, amended
or revoked only by an instrument in writing signed by both Landlord and
Tenant. Landlord

                                       15

<PAGE>

and Tenant hereby acknowledge that neither party has relied upon any
representation concerning the Premises that is not set forth in this Lease
and agree that all prior or contemporaneous oral agreements between and among
themselves and their agents or representatives relative to the leasing of the
Premises are merged in or revoked by this agreement.

G.   RECORDING OF LEASE. Neither Landlord nor Tenant shall record this Lease
or short form memorandum hereof without the consent of the other.

H.   AMENDMENTS REQUIRED BY LENDER. Tenant further agrees to execute any
amendments required by a lender to enable Landlord to obtain financing, so
long as Tenant's rights, obligations or use of the Premises hereunder are not
materially affected.

I.   AIR RIGHTS RETAINED BY LANDLORD. Tenant covenants and agrees that no
diminution or shutting off of light, air or view by any structure which may
be hereafter erected (whether or not by Landlord) shall in any way affect
this Lease, entitle Tenant to any reduction of Rent hereunder or result in
any liability of Landlord to Tenant.

J.   APPROVALS. Whenever this Lease requires an approval, consent,
determination, selection or judgment by either Landlord or Tenant, unless
another standard is expressly set forth, such approval, consent,
determination, selection or judgment and any conditions imposed thereby shall
be reasonable and shall not be unreasonably withheld or delayed.

K.   LIMITATION OF LIABILITY. Notwithstanding any provision in this Lease to
the contrary, neither party shall be liable to the other nor to any other
person, firm or entity for incidental, indirect, special, consequential,
punitive or reliance damages of any nature whatsoever regardless of the
foreseeability thereof (including, but not limited to, any claim from any
client, customer, third party or patron for loss of services, lost profits or
lost revenues) arising under or in connection with the this Lease, or arising
out of any act or omission by either Landlord or Tenant, or their respective
employees, consultants, servants or agents whether based on breach of
contract, breach of warranty, negligence or any other theory of liability.

L.   CROSS DEFAULT. Concurrently herewith, Landlord and Tenant are executing
that certain Longmont License with respect to premises located at 1951 South
Fordham Street, Longmont Colorado (the "Longmont License"). Tenant hereby
agrees that a default by Tenant as "Licensee" under the terms of the Longmont
License (including without limitation, a default under Section 28 of the
Longmont License regarding non-solicitation, whether or not the term of the
Longmont License has expired) shall be a default under this Lease entitling
Landlord immediately to its remedies hereunder.

                                       16

<PAGE>

     IN WITNESS WHEREOF, Landlord and Tenant have executed and delivered this
Lease as of the date first above written.

<TABLE>
<S><C>
LANDLORD                                                      TENANT

ADAPTEC, INC.                                                 ROXIO, INC.

By: /s/ Robert W. Kraiss                                      By: /s/ Tom Shea
   --------------------------------------------------            ------------------------------------

Name:   Robert W. Kraiss                                      Name:   Tom Shea

Title: Director of Corporate Facilities & Real Estate         Title:  COO
                                                                    ---------------------------------
</TABLE>

                                        [SIGNATURE PAGE TO LEASE AGREEMENT]

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