Document:

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

                                                                   EXHIBIT 10.31

                                LICENSE AGREEMENT

     THIS  LICENSE  AGREEMENT  (the  "Agreement") is made and entered into as of
July  17,  2001 (the "Effective Date") by and between EXELIXIS, INC., a Delaware
corporation  having  its principal place of business at 170 Harbor Way, P.O. Box
511,  South  San  Francisco,  California  94083  ("Exelixis"), and BRISTOL-MYERS
SQUIBB COMPANY, a Delaware corporation having its principal place of business at
Route 206 and Province Line Road, Princeton, NJ 08543 ("BMS").  Exelixis and BMS
are  sometimes  referred to herein individually as a "Party" and collectively as
the  "Parties."

                                   BACKGROUND

     A.  BMS  is  the owner of the compound Rebeccamycin (as defined below); and

     B.  As  part  of  the  consideration for the Cancer Collaboration Agreement
between  BMS  and  Exelixis  dated July 17, 2001 ("CCA"), and the Stock Purchase
Agreement  between BMS and Exelixis dated July 17, 2001, BMS desires to grant to
Exelixis,  and  Exelixis  desires  to  receive,  a  license  to  develop  and
commercialize  Rebeccamycin  based  on the terms and conditions set forth below.

NOW  THEREFORE,  BMS  and  Exelixis  agree  as  follows:

1.     DEFINITIONS

The following terms shall have the following meanings as used in this Agreement:

     1.1     "AFFILIATE"  means,  with  respect to a particular Party, a person,
corporation,  partnership, or other entity that controls, is controlled by or is
under  common  control  with  such Party.  For the purposes of the definition in
this  Section  1.1, the word "control" (including, with correlative meaning, the
terms  "controlled  by"  or  "under  the  common control with") means the actual
power,  either  directly  or  indirectly  through one or more intermediaries, to
direct  or  cause  the  direction of the management and policies of such entity,
whether  by the ownership of at least fifty percent (50%) of the voting stock of
such  entity,  or  by  contract  or  otherwise.

     1.2  "BMS  KNOW-HOW"  means  all  Information  Controlled  by  BMS  or  its
Affiliates  as  of  the  Effective  Date  that relates to Rebeccamycin or to its
manufacture  or  use,  including  without  limitation: (i) cell lines, including
without  limitation  [  *  ],  and  related  media;  (ii)  technical data; (iii)
preclinical  data; (iv) protocols and clinical trial information; (v) methods of
manufacturing;  (vi)  quality  assurance  and  stability data; (vii) all adverse
events  data;  and (viii) regulatory filings. For sake of clarity, no trademarks
or  tradenames  Controlled  by  BMS  are  included  in  the  BMS  Know-How.

     1.3  "BMS PATENT RIGHTS" means (i) the Listed Patent Rights, (ii) all other
United  States  and foreign patents and patent applications Controlled by BMS or
its  Affiliates  as  of  the  Effective  Date  that  would  be  infringed by the
manufacture,  importation,  use,  offer  for  sale or sale of Rebeccamycin by an
unlicensed  Third  Party,  and  (iii)  all  continuations,  divisions, reissues,
extensions,  substitutions,  re-examinations, patents of addition, supplementary
protection  certificates  and  foreign  equivalents  of  the  patents and patent
applications  described  in  (ii).

     1.4  "CONTROL"  or  "CONTROLLED"  means,  with  respect  to  any  material,
particular  item  of  Information  or  intellectual property right, (i) that the
Party  owns and has the ability to grant to the other Party the licenses to such
item  provided for herein, without violating the terms of any agreement or other
arrangement  with  any  Third Party, and/or (ii) that the Party has a license to
such  item  and has the ability to grant to the other Party the licenses to such
item  provided for herein, without violating the terms of any agreement or other
arrangement  with  any  Third  Party.

     1.5  "IND" means an Investigational New Drug application, as defined in the
U.S. Food, Drug and Cosmetics Act and the regulations promulgated thereunder, or
any  corresponding  or  equivalent  foreign  application,  registration  or
certification.

     1.6 "INFORMATION" means information, material, results and data of any type
whatsoever,  in  any  tangible  or intangible form whatsoever, including without
limitation,  databases,  inventions,  practices,  methods,  techniques,
specifications,  formulations,  formulae,  cell  lines,  cell  media, knowledge,
know-how,  skill, experience, manufacturing materials, financial data, test data
including  pharmacological, biological, chemical, biochemical, toxicological and
clinical test data, analytical and quality control data, quality assurance data,
stability  data,  studies and procedures, and patent and other legal information
or  descriptions.

     1.7  "LISTED  PATENT  RIGHTS" means (i) the patents and patent applications
listed  in  Exhibit  1.7  and  (ii)  all  continuations,  continuations-in-part,
divisions,  reissues,  extensions,  substitutions,  re-examinations,  patents of
addition,  supplementary protection certificates and foreign equivalents of such
patents  and  patent  applications.

     1.8  "PRODUCT"  means  (i)  Rebeccamycin,  (ii)  any  product containing or
comprising  Rebeccamycin,  and  (iii)  any  formulation  of  (i)  or  (ii).

     1.9  "REBECCAMYCIN"  means  the  rebeccamycin  analog  compound  known  as
BMY-027557, with the CAS Identification No. CAS-119673-08-4 and CAS nomenclature
1  anosyl)-5H-indolo[2,3-a]pyrrolo[3,4-c]carbazole-5,7(6H)-dione.

     1.10  "THIRD  PARTY" means any person or entity other than Exelixis, BMS or
an  Affiliate  of  Exelixis  or  BMS.

2.     LICENSES  AND  OBLIGATIONS

     2.1     LICENSES  TO  EXELIXIS.

          2.1.1  EXCLUSIVE  LICENSE.  BMS hereby grants to Exelixis a worldwide,
exclusive,  irrevocable  (except  as  provided  in Section 7.5), Exelixis, fully
paid,  royalty-free  license  (with  the  right to sublicense), under BMS Patent
Rights and BMS Know-How, to make, have made, use, develop, test, sell, offer for
sale and import Products.  For clarity, the foregoing license excludes those BMS
Patent  Rights  and  BMS  Know-How  which are licensed to Exelixis under Section
2.1.2.

          2.1.2  NON-EXCLUSIVE  LICENSE.  BMS  hereby  grants  to  Exelixis  a
worldwide,  non-exclusive,  irrevocable,  fully paid, royalty-free license (with
the  right to sublicense), under (i) the BMS Patent Rights described in Sections
1.3(ii)  and  (iii) to which BMS only has non-exclusive rights, and (ii) the BMS
Know-How  to  which  BMS only has non-exclusive rights, to make, have made, use,
develop,  test,  sell,  offer  for  sale  and  import  Products.

     2.2  LICENSE  TO  BMS.  Exelixis  hereby grants to BMS and its Affiliates a
worldwide,  non-exclusive,  fully  paid,  royalty-free license, under BMS Patent
Rights  and  BMS Know-How, to make, have made, use, and test Rebeccamycin solely
for  internal pre-clinical research purposes (x) to profile or test the activity
of compounds other than Rebeccamycin or (y) to synthesize compounds that are not
Rebeccamycin.

     2.3  NEGATIVE  COVENANTS. Except as provided in Section 2.2, BMS and/or its
Affiliates shall not (itself or directly or indirectly with a Third Party) make,
have  made,  use, develop, test, sell, offer for sale and import Products during
the  term  of  this  Agreement.

     2.4     TRANSFER  OF  BMS  KNOW-HOW.

          2.4.1  Within  [ * ] of the Effective Date, BMS shall (i) commence and
use  commercially  reasonable  efforts  thereafter to disclose to Exelixis in an
orderly  fashion  as promptly as reasonably practicable all BMS Know-How that is
in  the  possession  of  BMS  or  its  Affiliates,  and  (ii)  commence  and use
commercially reasonable efforts thereafter to transfer to Exelixis in an orderly
fashion as promptly as reasonably practicable all such BMS Know-How that relates
to  Rebeccamycin;  provided,  that  the  foregoing  shall  not  apply  to  BMS
manufacturing  Know-How,  which  BMS  shall  be obliged to disclose  pursuant to
Section  2.6.  The Parties agree and acknowledge that BMS may retain one or more
copies  of  BMS  Know-How that also pertain to compounds other than Rebeccamycin
and  may  use  such  BMS  Know-How for purposes outside the scope of the license
granted  in  Section 2.1.1 or within the scope of the license granted in Section
2.2.  [  *  ] shall bear its own expenses in connection with this Section 2.4.1;
provided,  that  Exelixis  shall  reimburse  BMS  for  [  *  ].

          2.4.2  [  *  ],  during normal business hours, BMS shall at reasonable
times  permit  Exelixis and its representatives to have full and complete access
to  all contracts, data and records relating to Rebeccamycin in BMS' possession,
and  BMS  shall  provide Exelixis and its representatives an opportunity to meet
and  discuss with the individuals who have material knowledge pertaining to such
Rebeccamycin  contracts,  data and records and who are officers and employees of
BMS  and  its  Affiliates.

     2.5     CLINICAL  TRIAL  DEVELOPMENT.

          2.5.1 [ * ], BMS shall use commercially reasonable efforts to provide,
over  a  mutually  agreed  time  frame,  reasonable  assistance to Exelixis with
respect  to:  (i) the design of clinical trials for Products; (ii) the selection
of  investigators  and  end  points  for  clinical trials of Products; (iii) the
selection  of  contract  research organizations for clinical trials of Products;
and (iv) providing access to multinational cooperative study groups for clinical
trials  of  Products.  It  is  understood that such assistance will generally be
provided  through  a  monthly  teleconference  scheduled  at mutually convenient
times.  No  travel,  other  than  to  NCI  Steering  Committee  meetings  where
reasonably necessary, shall be required of BMS without its prior consent.  [ * ]
shall  bear  its  own  expenses in connection with this Section 2.5.1; provided,
that  Exelixis  shall reimburse BMS for [ * ]. [ * ], BMS shall promptly provide
to  Exelixis  any  notices  or other communications regarding Third Party claims
arising from clinical trials based on use of the Products prior to the Effective
Date.

          2.5.2 Subject to the consent of the National Cancer Institute ("NCI"),
BMS  hereby  assigns  to Exelixis, and Exelixis agrees to accept such assignment
of,  all  of  BMS' rights, obligations and interests in and under the "Agreement
Between  Pharmaceutical  Industry  and the Division of Cancer Treatment, NCI for
the  Clinical Development of Diethylaminorebeccamycin" between BMS and NCI dated
December  20, 1993 (the "NCI Agreement"). [ * ], BMS shall send the NCI a letter
that  informs  NCI of the license between BMS and Exelixis and that requests NCI
to  send  a  letter  assigning  to  Exelixis all of BMS' rights, obligations and
interests  in  and  under  the  NCI Agreement.  [ * ], BMS: (i) use commercially
reasonable  efforts  to  facilitate  the  assignment  to Exelixis of all of BMS'
rights,  obligations and interests in and under the NCI Agreement; and agrees to
(ii)  request  that NCI perform whatever actions are needed to give Exelixis (A)
the  right  to  review NCI's clinical trial data relating to Products, including
without  limitation  the  amending of NCI's informed consents regarding clinical
trials of Products, (B) the right to cross-reference NCI's IND for Rebeccamycin,
and  (C)  the  ability  to  formulate  Rebeccamycin using formulation technology
developed  or used by NCI pursuant to its work on Rebeccamycin. [ * ] shall bear
its  own expenses in connection with this Section 2.5.2; provided, that Exelixis
shall  reimburse  BMS  for  [  *  ].

          2.5.3  Effective  upon  the  date  on  which  BMS' interest in the NCI
Agreement  is  assigned  to  Exelixis  and  consented to by NCI (the "Assignment
Date")

               (A) BMS shall retain all liability for its failure to fulfill any
obligations  under  the NCI Agreement that accrued prior to the Assignment Date.

               (B)  Exelixis  shall  assume all liability for (i) its failure to
fulfill  any  obligations  under  the  NCI  Agreement  that accrued after to the
Assignment  Date,  and  (ii) any loss, claim, damage or liability resulting from
Exelixis'  activities  under  the  NCI  Agreement  after to the Assignment Date.
Following  the  Assignment  Date,  Exelixis  covenants and agrees to perform and
fully  discharge  in  a  timely  manner all obligations under the NCI Agreement.

          2.5.4  Following  the  Effective Date of this Agreement the Assignment
Date:  (x)  BMS  covenants  and agrees to perform and fully discharge in until a
timely  manner  all  obligations required of it under the NCI Agreement; and (y)
Exelixis  shall  assume  all  liability for any loss, claim, damage or liability
resulting  from  BMS' activities under the NCI Agreement after to the Assignment
Date, except to the extent attributable to a breach by BMS of its obligations in
(x).

     2.6     IDENTIFICATION  OF MANUFACTURER.  [ * ], BMS shall (i) recommend to
Exelixis  candidates  for  a  Third  Party  manufacturer  for  the  supply  of
Rebeccamycin  to Exelixis, and (ii) disclose a sufficient amount of BMS Know-How
related  to the manufacture of Rebeccamycin to enable Exelixis to select a Third
Party  manufacturer  for the supply of Rebeccamycin to Exelixis.  At the request
of  Exelixis,  BMS shall, subject to the execution by a Third Party manufacturer
of  an appropriate license and confidentiality agreement with Exelixis, promptly
transfer  to  such  Third  Party  manufacturer chosen by Exelixis all useful BMS
Know-How  that  relates to the manufacture of Rebeccamycin and advise such Third
Party manufacturer concerning the manufacture of Rebeccamycin.  [ * ] shall bear
its  own  expenses  in connection with this Section 2.6; provided, that Exelixis
shall  reimburse BMS for [ * ].  It is not expected that BMS will be required to
provide on-site advice in connection with the foregoing, and provision of advice
by  BMS  with  respect  to  its  manufacturing Know-How shall not require BMS to
provide  on-site support, unless BMS agrees to same in advance and is reimbursed
for its [ * ].  If Exelixis requests BMS to transfer BMS Know-How concerning the
manufacture of Rebeccamycin to one other Third Party manufacturer in addition to
the Third Party manufacturer described above in this Section 2.6, then BMS shall
transfer  such BMS Know-How to such additional Third Party Manufacturer provided
that  [  *  ].

     2.7  NON-SOLICITATION  AND  NON-HIRE. For [ * ], Exelixis will not, without
the  prior  written  consent  of  BMS:  [ * ]  Nothing in this Section 2.7 shall
prohibit  a  general  solicitation  made  by  newspaper  or  other  media.

3.     CONFIDENTIALITY

     3.1     NONDISCLOSURE  OF  CONFIDENTIAL  INFORMATION.  For  all  purposes
hereunder,  "Confidential  Information"  shall mean all Information disclosed by
one  Party  to  the  other Party (i) prior to the Effective Date and relating to
Rebeccamycin or Products, or (ii) pursuant to this Agreement.  The Parties agree
that  for  a  period  of  [  *  ]  after a disclosure of an item of Confidential
Information  is  made  hereunder,  a  Party  receiving such item of Confidential
Information  of  the other Party will (i) use commercially reasonable efforts to
maintain  in confidence such item of Confidential Information (but not less than
those  efforts  as such Party uses to maintain in confidence its own proprietary
industrial  information of similar kind and value) and not to disclose such item
of  Confidential Information to any Third Party without prior written consent of
the  other  Party,  except for disclosures made in confidence to any Third Party
under  terms  consistent  with  this  Agreement  and made in furtherance of this
Agreement or of rights granted to a Party hereunder, and (ii) not use such other
Party's  Confidential Information for any purpose except those permitted by this
Agreement.
     3.2 EXCEPTIONS. The obligations in Section 3.1 shall not apply with respect
to any portion of the Confidential Information that the receiving Party can show
by  competent  written  proof:

          (A)  Is  publicly  disclosed by the disclosing Party, either before or
after  it  is  disclosed  to  the  receiving  Party  hereunder;  or

          (B) Was known to the receiving Party or any of its Affiliates, without
obligation to keep it confidential, prior to disclosure by the disclosing Party;
or

          (C)  Is  subsequently  disclosed  to the receiving Party or any of its
Affiliates  by  a  Third  Party  lawfully  in  possession  thereof  and  without
obligation  to  keep  it  confidential;  or

          (D)  Is  published  by  a  Third  Party  or otherwise becomes publicly
available or enters the public domain, either before or after it is disclosed to
the  receiving  Party;  or

          (E)  Has  been  independently developed by employees or contractors of
the receiving Party or any of its Affiliates without the aid, application or use
of  Confidential  Information.

     3.3  AUTHORIZED  DISCLOSURE.  A  Party  may  disclose  the  Confidential
Information  belonging  to  the  other  Party  to  the extent such disclosure is
reasonably  necessary  in  the  following  instances:

          (A)  Filing  or  prosecuting  patents  relating  to  Products;

          (B)  Regulatory  filings;

          (C)  Prosecuting  or  defending  litigation;

          (D)  Complying  with  applicable  governmental  regulations;  and

          (E)  Disclosure, in connection with the performance of this Agreement,
to  Affiliates, sublicensees, research collaborators, employees, consultants, or
agents, each of whom prior to disclosure must be bound by similar obligations of
confidentiality  and  non-use at least equivalent in scope to those set forth in
this  Article  3. The Parties acknowledge that the terms of this Agreement shall
be  treated  as  Confidential  Information  of  both  Parties. Such terms may be
disclosed  by a Party to investment bankers, investors, and potential investors,
each  of  whom  prior  to  disclosure  must  be  bound by similar obligations of
confidentiality  and  non-use at least equivalent in scope to those set forth in
this  Article  3. In addition, a copy of this Agreement may be filed by Exelixis
with  the  Securities  and  Exchange  Commission  in  connection with any public
offering  of  Exelixis  securities. In connection with any such filing, Exelixis
shall  endeavor  to  obtain  confidential treatment of economic and trade secret
information.  In  any  event, the Parties agree to take all reasonable action to
avoid  disclosure  of  Confidential  Information  except as permitted hereunder.

4.     REPRESENTATIONS  AND  WARRANTIES

     4.1     MUTUAL  WARRANTIES.  Exelixis  and BMS each represents and warrants
to  the  other that (i) it has the authority and right to enter into and perform
this Agreement, (ii) this Agreement is a legal and valid obligation binding upon
it  and  is  enforceable  in  accordance  with  its terms, subject to applicable
limitations  on  such  enforcement  based  on bankruptcy laws and other debtors'
rights, and (iii) its execution, delivery and performance of this Agreement will
not  conflict  in  any material fashion with the terms of any other agreement or
instrument to which it is or becomes a party or by which it is or becomes bound,
nor  violate  any  law  or  regulation  of  any  court,  governmental  body  or
administrative  or  other  agency  having  authority  over  it.

     4.2  BMS  WARRANTIES.  BMS  represents  and  warrants to Exelixis as of the
Effective  Date  that

          4.2.1 BMS has the full right and power to grant the licenses set forth
in  Section  2.1  in  the  manner  and to the extent set forth in this Agreement
(including Exelixis' right to further sublicense), free and clear of any adverse
assignment,  grant  or  other  encumbrances  inconsistent  with  such  grant;

          4.2.2  The  individuals  listed  on  Exhibit  4.2  are the individuals
employed  by  BMS  who  would  be  reasonably  likely  to  have the most current
knowledge  within  BMS with respect to manufacture and clinical development, and
intellectual  property  issues,  related  to  Rebeccamycin  and Products and the
carrying  out  of  the  NCI  Agreement;

          4.2.3  To  the knowledge of the BMS individuals listed on Exhibit 4.2:
(a)  BMS  and  its  Affiliates  have not infringed any issued patents within the
United  States  of  any  Third Party or misappropriated any trade secrets of any
Third  Party  with  respect  to  the  manufacture (to the extent manufactured or
formulated  by  BMS)  of,  or  the  use  in  the  treatment  of  cancer  of, (i)
Rebeccamycin, or (ii) the Product being tested in human clinical trials; (b) BMS
has  not  entered  into  any  agreement  with  any Third Party pursuant to which
royalties would be owed to such Third Party with respect to the manufacture, use
or  sale  of Rebeccamycin; and (c) neither BMS nor an Affiliate has received any
written  notice  or  other  written  communication  alleging  that  Rebeccamycin
infringes  or misappropriates the intellectual property rights of a Third Party;

          4.2.4 BMS owns all right, title and interest to the patents and patent
applications  listed  in  Exhibit  1.7  and, to the knowledge of the individuals
listed on Exhibit 4.2, all inventors of the inventions claimed in each patent or
patent  application  are  identified  on  such  patent  or  patent  application;

          4.2.5  BMS has provided Exelixis with complete copies of all summaries
provided  by  NCI  to  BMS  of  clinical  trial  data  relating  to  Products;

          4.2.6  There  are  no  regulatory  filings  in the U.S. or abroad with
respect  to  Rebeccamycin  that  are  Controlled  by  BMS or its Affiliates; and

          4.2.7  To  the knowledge of the BMS individuals listed on Exhibit 4.2,
NCI does not Control any patents or patent application that claim (i) methods of
formulating  Rebeccamycin,  or  (ii) Rebeccamycin formulations. For clarity, the
representations  and  warranties  concerning  intellectual property rights under
Sections 4.2.3, 4.2.4, and 4.2.7 do not create, and shall not be interpreting as
requiring an obligation for BMS to perform any additional patent searches at any
time  prior  to  the  Effective Date other than those already made by BMS in the
ordinary  course  of  its  business

     4.3     NO  ADDITIONAL  REPRESENTATIONS.

          4.3.1  Exelixis  acknowledges  that, upon completion of the activities
described  in Section 2.4.2, it and its representatives will have been permitted
full  and  complete  access  to  the  contracts,  data  and  records relating to
Rebeccamycin  that it has desired or requested to see or review, and that it and
its  representatives  will  have had a opportunity to meet with the officers and
employees  of BMS and its Affiliates to discuss Rebeccamycin.  For the avoidance
of  doubt, Exelixis' access to such information and its opportunity to meet with
such  personnel  shall  not  limit its right to make a claim for indemnification
under  Article  6.

          4.3.2  Exelixis  acknowledges  that  BMS,  its Affiliates, and its and
their  directors,  officers,  employees, agents or contractors have not made any
representation  or  warranty,  expressed  or  implied,  as  to  the  accuracy or
completeness  of  any  information regarding Rebeccamycin and its development or
commercialization,  as  currently  conducted or planned, except as expressly set
forth  in  this  Agreement.  BMS,  its  Affiliates, and its and their directors,
officers,  employees,  agents or contractors shall not have or be subject to any
liability  to  Exelixis  or  any  other  Person  resulting from the provision to
Exelixis,  or Exelixis' use of, any such information, documents or material made
available  to  Exelixis  in any "data rooms", management presentations or in any
other  form in expectation of the transactions contemplated hereby except to the
extent  such  information,  documents  or  materials  is  included  in  the
representations  or  warranties  of BMS expressly set forth in Article 4 of this
Agreement,  provided  that  all  such information, documents or material be made
available  in  their  original  state,  without  redaction  or  alteration.

          4.3.3  Except  as  expressly  set  forth  in  the  representations and
warranties set forth in Sections 4.1 and 4.2 of this Agreement, (i) there are no
representations  or  warranties  by  BMS  of  any kind, express or implied, with
respect  to Rebeccamycin (including without limitation its research, development
or  commercialization),  (ii)  Exelixis  is  taking  the  license rights granted
hereunder  "as is", "where is" and "with all faults" (except for the liabilities
retained  by  BMS  pursuant to Section 2.5.3(a)), and (iii) BMS NEITHER MAKES OR
EXTENDS  ANY  OTHER  EXPRESS  OR  IMPLIED  REPRESENTATION OR WARRANTY, INCLUDING
WITHOUT  LIMITATION  ANY  EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR OF
FITNESS FOR A PARTICULAR PURPOSE OR USE OF ANY PRODUCT OR ANY REPRESENTATIONS OR
WARRANTIES  WITH  RESPECT  TO  INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY
RIGHTS  BY  REASON  OF  THE  MANUFACTURE,  USE  OR  SALE  OF  ANY  PRODUCT.

     4.4     SURVIVAL  OF  REPRESENTATIONS.  The  representations and warranties
contained  in this Agreement (including the Schedules) and in any other document
delivered  in connection herewith shall survive solely for purposes of Article 6
hereof  and  shall  terminate  at  the  third anniversary of the Effective Date.

5.     PATENT  RIGHTS

     5.1     PATENT  PROSECUTION,  MAINTENANCE  AND  ENFORCEMENT.

          5.1.1  PATENT  PROSECUTION  AND  MAINTENANCE.  Exelixis shall have the
first  right  to  control,  at  its  expense  and  in  its  sole discretion, the
preparation, filing, prosecution and maintenance of the Listed Patent Rights and
for  conducting  any  interferences,  reexaminations,  reissues, oppositions, or
request  for  patent term extension relating thereto.  At the reasonable request
of  Exelixis,  BMS  shall  provide  reasonable assistance to Exelixis in matters
pertaining to the preparation, filing, prosecution and maintenance of the Listed
Patent  Rights,  including without limitation any interferences, reexaminations,
reissues,  oppositions,  or  request for patent term extension relating thereto,
and  [  *  ].  If  Exelixis  elects not to maintain or enforce any Listed Patent
Right  and so notifies BMS, then BMS may maintain or enforce such Listed Patents
Right  at  its own expense, in its own name and entirely under its own direction
and  control.

          5.1.2  ENFORCEMENT  OF  PATENT  RIGHTS  BY  EXELIXIS.  If either Party
becomes  aware  of  a  suspected  infringement of the Listed Patent Rights, such
Party  shall  notify  the other Party promptly, and following such notification,
the  Parties  shall  confer.  Exelixis  shall  have  the right, but shall not be
obligated,  to bring an infringement action at its own expense, in its own name,
and  entirely  under  its  own direction and control. BMS will reasonably assist
Exelixis [ * ] in such actions or proceedings if so requested, and will lend its
name  to such actions or proceedings if required by law in order for Exelixis to
bring such action. BMS shall have the right to participate and be represented in
any  such  suit by its own counsel at its own expense. No settlement of any such
action  or  defense  which  restricts the scope or affects the enforceability of
Listed  Patent  Rights may be entered into by Exelixis without the prior consent
of  BMS,  which  consent  shall  not  be  unreasonably  withheld.

          5.1.3  ENFORCEMENT  OF PATENT RIGHTS BY BMS. If Exelixis elects not to
bring  any  action  for  infringement described in Section 5.1.2 and so notifies
BMS,  then,  BMS  may  bring  such  action  or defend such proceeding at its own
expense,  in  its  own  name,  and entirely under its own direction and control.
Exelixis  will  reasonably  assist  BMS  [ * ] in any action or proceeding being
prosecuted  or  defended  by  BMS,  if  so  requested by BMS or required by law.
Exelixis shall have the right to participate and be represented in any such suit
by  its  own  counsel  at  its  own expense. No settlement of any such action or
defense which restricts the scope or affects the enforceability of Listed Patent
Rights  may  be entered into by BMS without the prior consent of Exelixis, which
consent  shall  not  be  unreasonably  withheld

     5.2     INFRINGEMENT  CLAIMS.  If an allegation is made or claim is brought
by  a  Third  Party  that  any  activity  related  to  a  Product  infringes the
intellectual  property  rights  of such Third Party, each Party will give prompt
written  notice  to  the  other  Party  of  such  claim.

6.     INDEMNIFICATION

     6.1     BMS.  BMS  shall  indemnify, defend and hold harmless Exelixis, its
Affiliates,  and  their  respective  directors,  officers and employees (each an
"Exelixis  Indemnitee")  from  and  against  any  and  all liabilities, damages,
losses,  costs or expenses (including attorneys' and professional fees and other
expenses  of  litigation  and/or  arbitration)  ("Liabilities") resulting from a
claim,  suit  or proceeding made or brought by a Third Party against an Exelixis
Indemnitee  arising  from  or  occurring  as  a  result of (i) any breach of the
representations  and warranties set forth in Section 4.1 or 4.2, (ii) any claims
based  on injury to a Third Party (including death) arising from the manufacture
of  Products  by  BMS  and  their use prior to the Effective Date, and (iii) any
liability  retained  by  BMS  pursuant to Section 2.5.3(a), except to the extent
that  Liabilities  resulting  from  (i), (ii), or (iii) were caused by the gross
negligence  or  willful  misconduct  of  Exelixis.

     6.2  EXELIXIS.  Exelixis shall indemnify, defend and hold harmless BMS, its
Affiliates,  and their respective directors, officers and employees (each a "BMS
Indemnitee")  from  and  against any and all Liabilities resulting from a claim,
suit  or  proceeding  made or brought by a Third Party against a BMS Indemnitee,
arising  from  or occurring as a result of (i) any breach of the representations
and  warranties  set  forth  in  Section  4.1,  (ii) subject to Section 6.1, any
research,  development,  marketing, sale, promotion, and other commercialization
activities related to any Products by or for Exelixis or its licensees after the
Effective  Date, (iii) the manufacture of any Products by or for Exelixis or its
licensees  after  the  Effective  Date  or  the  use  of  any Products after the
Effective  Date  by  any  person  or  entity, and (iv) any liability retained by
Exelixis  pursuant  to  Section  2.5.3(b), except to the extent that Liabilities
resulting  from  (i), (ii), (iii) or (iv) were caused by the gross negligence or
willful  misconduct  of  BMS.

     6.3  PROCEDURE.  In  the  event  that  a  Party  indemnified  hereunder (an
"Indemnitee")  intends  to  claim  indemnification  under  this  Article 6, such
Indemnitee  shall  promptly notify the other Party (the "Indemnitor") in writing
of  such alleged Liability.  The Indemnitor shall have the sole right to control
the  defense  and  settlement thereof.  The Indemnitees shall cooperate with the
Indemnitor  and  its  legal  representatives in the investigation of any action,
claim  or liability covered by this Article 6.  The Indemnitee shall not, except
at its own cost and risk, voluntarily make any payment or incur any expense with
respect  to  any  claim  or  suit  without  the  prior  written  consent  of the
Indemnitor,  which the Indemnitor shall not be required to give.  The Indemnitor
shall not be required to provide indemnification with respect to a Liability the
defense  of  which is prejudiced by the failure to give notice by the Indemnitee
or  the  failure of the Indemnitee to cooperate with the Indemnitor or where the
Indemnitee settles or compromises a Liability without the written consent of the
Indemnitor.  Each  Party  shall cooperate with each other in resolving any claim
or liability with respect to which one party is obligated to indemnify the other
under  this  Agreement,  including  without  limitation,  by making commercially
reasonable  efforts  to  mitigate  or  resolve  any  such  claim  or  liability

     6.4     LIMITATIONS  ON  LIABILITY.

          6.4.1  BMS and Exelixis each acknowledges and agrees that its sole and
exclusive  remedy  with  respect  to  any  and  all  claims and causes of action
relating  to  this  Agreement (other than claims of, or causes of action arising
from, fraud or relating to breaches of covenants requiring performance after the
Effective Date) shall be pursuant to the indemnification provisions set forth in
this  Article  6,  the  termination  provisions as provided in Article 7 and/or,
where  and  to  the  extent  permitted  by applicable law, specific performance.
6.4.2     Notwithstanding  any  provision  herein,  a Party shall in no event be
liable  to  the  other  Party or its Affiliates, officers, directors, employees,
stockholders,  agents  or  representatives  for  any  indirect, consequential or
punitive  damages  (including,  but  not  limited to, lost profits, loss of use,
damage  to goodwill or loss of business), unless such damages (i) are owed under
the  liable  Party's indemnification obligations under Article 6, (ii) breach of
Article 3, or (iii) are due to the gross negligence or willful misconduct of the
liable  Party.

7.     TERM  AND  TERMINATION

     7.1     TERM.  The  term  of this Agreement shall commence on the Effective
Date  and  continue  until  the Agreement is terminated pursuant to Section 7.2.

     7.2  MATERIAL BREACH. In the event one Party has materially breached in the
performance  of  any of its obligations hereunder, and such breach has continued
for  [  *  ] after written notice thereof was provided to the breaching Party by
the  non-breaching  Party, the non-breaching Party may terminate this Agreement.
Any  termination  shall  become effective at the end of such [ * ] period unless
the breaching Party has cured any such breach prior to the expiration of the [ *
]  period.

     7.3     BANKRUPTCY.

          7.3.1  All  rights  and  licenses  granted  under  or pursuant to this
Agreement,  including  amendments  hereto, by each Party to the other Party are,
for  all  purposes  of Section 365(n) of Title 11 of the U.S. Code ("Title 11"),
licenses  of rights to intellectual property as defined in Title 11.  Each Party
agrees  during  the term of this Agreement to create and maintain current copies
or,  if  not  amenable  to  copying,  detailed descriptions or other appropriate
embodiments,  to  the  extent feasible, of all such intellectual property.  If a
case  is commenced by or against either Party (the "Bankrupt Party") under Title
11,  then,  unless and until this Agreement is rejected as provided in Title 11,
the  Bankrupt  Party  (in  any capacity, including debtor-in-possession) and its
successors  and  assigns  (including,  without  limitation,  a Title 11 Trustee)
shall,  at  the  election  of  the  Bankrupt Party made within 60 days after the
commencement  of the case (or, if no such election is made, immediately upon the
request  of  the  non-Bankrupt  Party) either (i) perform all of the obligations
provided  in  this  Agreement  to  be performed by the Bankrupt Party including,
where  applicable  and  without  limitation, providing to the non-Bankrupt Party
portions  of  such intellectual property (including embodiments thereof) held by
the  Bankrupt  Party  and  such successors and assigns or otherwise available to
them  or  (ii)  provide to the non-Bankrupt Party all such intellectual property
(including  all  embodiments  thereof)  held  by  the  Bankrupt  Party  and such
successors  and  assigns  or  otherwise  available  to  them.

          7.3.2 If a Title 11 case is commenced by or against the Bankrupt Party
and  this  Agreement  is  rejected  as provided in Title 11 and the non-Bankrupt
Party  elects  to  retain its rights hereunder as provided in Title 11, then the
Bankrupt  Party  (in  any  capacity,  including  debtor-in-possession)  and  its
successors  and  assigns  (including,  without  limitations, a Title 11 Trustee)
shall  provide  to  the  non-Bankrupt  Party  all  such  intellectual  property
(including  all  embodiments  thereof)  held  by  the  Bankrupt  Party  and such
successors  and  assigns  or  otherwise  available  to them immediately upon the
non-Bankrupt  Party's  written  request therefor. Whenever the Bankrupt Party or
any  of  its successors or assigns provides to the non-Bankrupt Party any of the
intellectual property licensed hereunder (or any embodiment thereof) pursuant to
this  Section  7.3,  the  non-Bankrupt Party shall have the right to perform the
obligations  of  the  Bankrupt Party hereunder with respect to such intellectual
property,  but  neither  such provision nor such performance by the non-Bankrupt
Party shall release the Bankrupt Party from any such obligation or liability for
failing  to  perform  it.

          7.3.3  All  rights,  powers  and  remedies  of  the non-Bankrupt Party
provided herein are in addition to and not in substitution for any and all other
rights,  powers  and  remedies  now  or  hereafter  existing at law or in equity
(including,  without limitation, Title 11) in the event of the commencement of a
Title  11  case  by  or  against  the Bankrupt Party. The non-Bankrupt Party, in
addition  to  the rights, power and remedies expressly provided herein, shall be
entitled  to  exercise  all other such rights and powers and resort to all other
such  remedies  as  may  now  or hereafter exist at law or in equity (including,
without  limitation,  under Title 11) in such event. The Parties agree that they
intend  the  foregoing non-Bankrupt Party rights to extend to the maximum extent
permitted  by law and any provisions of applicable contracts with Third Parties,
including  without  limitation for purposes of Title 11, (i) the right of access
to any intellectual property (including all embodiments thereof) of the Bankrupt
Party  or  any  Third Party with whom the Bankrupt Party contracts to perform an
obligation  of  the Bankrupt Party under this Agreement, and, in the case of the
Third  Party,  which  is  necessary  for  the  development,  registration  and
manufacture  of  licensed  products and (ii) the right to contract directly with
any  Third  Party  described  in (i) in this sentence to complete the contracted
work.  Any  intellectual  property  provided  pursuant to the provisions of this
Section  7.3  shall  be  subject  to  the  licenses  set forth elsewhere in this
Agreement  and  the payment obligations of this Agreement, which shall be deemed
to  be  royalties  for  purposes  of  Title  11.

     7.4     EFFECT  OF  TERMINATION OR EXPIRATION. Termination or expiration of
this  Agreement  for  any  reason shall not release either Party hereto from any
liability  which,  at  the  time  of such termination or expiration, has already
accrued  to  the  other Party or which is attributable to a period prior to such
termination  or expiration or preclude either Party from pursuing any rights and
remedies it may have hereunder or at law or in equity with respect to any breach
of, or default under, this Agreement.  It is understood and agreed that monetary
damages may not be a sufficient remedy for any breach of this Agreement and that
the  non-breaching  Party  may  be entitled to specific performance as a partial
remedy  for  any  such  breach.

     7.5  SURVIVAL.  Articles  1,  3,  4  (where  the Agreement is terminated by
Exelixis),  5,  6,  and  8  and Sections 2.1 (except where terminated by BMS for
material  breach under Section 7.2 by Exelixis of its obligations under Sections
2.5.3,  2.5.4,  2.7,  or 6.2, breach of its representations and warranties under
Section  4.1),  2.6,  7.4, and 7.5 of this Agreement shall survive expiration or
termination  of  this  Agreement  for  any  reason.

8.     MISCELLANEOUS

     8.1     GOVERNING  LAW.  Resolution  of  all  disputes  arising  out  of or
related to this Agreement or the performance, enforcement, breach or termination
of  this  Agreement  and any remedies relating thereto, shall be governed by and
construed  under  the substantive laws of the State of California, as applied to
agreements  executed  and  performed  entirely  in  the  State  of California by
residents  of the State of California, without regard to conflicts of law rules;
provided,  however, that resolution of all disputes arising out of or related to
the  performance, enforcement or breach of Section 2.7 of this Agreement and any
remedies  relating  thereto  shall  be  governed  by  and  construed  under  the
substantive laws of the State of New York, as applied to agreements executed and
performed  entirely  in  the  State of New York by residents of the State of New
York,  without  regard  to  conflicts  of  law  rules.

     8.2  PATENTS.  Any  dispute,  controversy  or  claim relating to the scope,
validity,  enforceability  or infringement of any BMS Patent Rights covering the
manufacture,  use  or  sale  of  any  Products  shall be submitted to a court of
competent jurisdiction in the territory in which such Patent or trademark rights
were  granted  or  arose.

     8.3  CONSENTS  NOT  UNREASONABLY WITHHELD OR DELAYED. Whenever provision is
made in this Agreement for either Party to secure the consent or approval of the
other,  that  consent or approval shall not unreasonably be withheld or delayed,
and whenever in this Agreement provisions are made for one Party to object to or
disapprove  a  matter,  such  objection or disapproval shall not unreasonably be
exercised.

     8.4  MAINTENANCE OF RECORDS. Each Party shall keep and maintain all records
required  by law or regulation with respect to Products and shall make copies of
such  records  available  to  the  other  Party  upon  request.

     8.5 INDEPENDENT CONTRACTORS. The relationship of the Parties hereto is that
of  independent  contractors.  The  Parties  hereto are not deemed to be agents,
partners  or  joint  venturers of the others for any purpose as a result of this
Agreement  or  the  transactions  contemplated  thereby.

     8.6  ASSIGNMENT. Neither Party may assign or transfer this Agreement or any
rights  or obligations hereunder without the prior written consent of the other,
except  a Party may make such an assignment without the other Party's consent to
an  Affiliate  or  to  a  successor to substantially all of the business of such
Party,  whether in a merger, sale of stock, sale of assets or other transaction;
provided,  that  any  such  permitted  successor  or  assignee  of rights and/or
obligations  hereunder  shall, in a writing to the other Party, expressly assume
performance  of  such rights and/or obligations.  Any permitted assignment shall
be  binding  on  the  successors  of  the  assigning  Party.  Any  assignment or
attempted  assignment  by either Party in violation of the terms of this Section
8.6  shall  be  null  and  void  and  of  no  legal  effect.

     8.7  BINDING  EFFECT. This Agreement shall be binding upon and inure to the
benefit  of  the  Parties  and  their  successors  and  permitted  assigns.

     8.8  NOTICES.  Any  notice  required  or  permitted  to be given under this
Agreement  shall  be  in writing, shall specifically refer to this Agreement and
shall  be  deemed  to have been sufficiently given for all purposes if mailed by
first  class  certified  or  registered  mail, postage prepaid, express delivery
service  or  personally  delivered.  Unless  otherwise specified in writing, the
mailing  addresses  of  the  Parties  shall  be  as  described  below.

         For  Exelixis:  Exelixis,  Inc.
                         170  Harbor  Way
                         P.O.  Box  511
                         South  San  Francisco,  CA  94083
                         Attention:  Chief  Executive  Officer

          With  a  copy  to:  Cooley  Godward  LLP
                         Five  Palo  Alto  Square
                         3000  El  Camino  Real
                         Palo  Alto,  CA  94306
                         Attention:  Robert  L.  Jones,  Esq.

          For  BMS:      Bristol-Myers Squibb Pharmaceutical Research Institute
                         Route  206  and  Province  Line  Road
                         Princeton,  NJ  08543-4000
                         Attention: Senior Vice President - External Development

          With a copy to: Bristol-Myers Squibb Pharmaceutical Research Institute
                         Route  206  and  Province  Line  Road
                         Princeton,  NJ  08543-4000
                         Attention:  Vice  President and Senior Counsel - BMSPRI

     8.9     FORCE  MAJEURE.  Both Parties shall be excused from the performance
of their obligations under this Agreement to the extent that such performance is
prevented  by force majeure and the nonperforming Party promptly provides notice
of the prevention to the other Party.  Such excuse shall be continued so long as
the  condition  constituting force majeure continues and the nonperforming Party
takes  reasonable  efforts  to  remove  the  condition.  For  purposes  of  this
Agreement,  force  majeure  shall  include  conditions beyond the control of the
Parties,  including  without limitation, an act of God, voluntary or involuntary
compliance  with  any  regulation,  law  or  order of any government, war, civil
commotion,  labor  strike  or  lock-out,  epidemic, failure or default of public
utilities  or common carriers, destruction of production facilities or materials
by  fire,  earthquake, storm or like catastrophe; provided, however, the payment
of invoices due and owing hereunder shall not be delayed by the payer because of
a  force  majeure  affecting  the  payer.

     8.10  ADVICE  OF  COUNSEL.  BMS and Exelixis have each consulted counsel of
their  choice  regarding  this  Agreement, and each acknowledges and agrees that
this  Agreement shall not be deemed to have been drafted by one Party or another
and  shall  be  construed  accordingly.

     8.11 COMPLIANCE WITH LAWS. Subject to Article 3, Party shall use reasonable
efforts  to  furnish  to the other Party any information reasonably requested or
required  by  that  Party  during  the  term of this Agreement or any extensions
hereof  to  enable  that  Party  to  comply with the requirements of any U.S. or
foreign  federal,  state  and/or  government  agency that is consistent with the
license  rights  granted  hereunder.

     8.12  FURTHER ASSURANCES. At any time or from time to time on and after the
date  of  this  Agreement,  either Party shall at the request of the other Party
hereto  (i)  subject  to  the provisions of Article 3, deliver to the requesting
Party  any  records,  data  or other documents consistent with the provisions of
this Agreement, and (ii) execute, and deliver or cause to be delivered, all such
consents,  documents  or  further  instruments  of  transfer  or  license.

     8.13 RETAINED RIGHTS; NO FURTHER RIGHTS. Only the licenses granted pursuant
to  the  express  terms of this Agreement shall be of any legal force or effect.
No  other license rights shall be granted or created by implication, estoppel or
otherwise.

     8.14  SEVERABILITY.  In  the  event that any provision of this Agreement is
determined  to be invalid or unenforceable by a court of competent jurisdiction,
the  remainder  of  the  Agreement shall remain in full force and effect without
said  provision.  In  such  event,  the  Parties shall in good faith negotiate a
substitute  clause  for  any  provision declared invalid or unenforceable, which
shall  most  nearly  approximate  the  intent  of  the  Parties in entering this
Agreement.

     8.15  WAIVER.  It  is  agreed  that no waiver by either Party hereto of any
breach  or  default of any of the covenants or agreements herein set forth shall
be  deemed  a  waiver  as  to  any  subsequent and/or similar breach or default.

     8.16  COMPLETE  AGREEMENT.  This  Agreement,  along with the CCA, the Stock
Purchase  Agreement  between  BMS  and Exelixis dated July 17, 2001, and the NCI
Agreement,  constitutes the entire agreement, both written and oral, between the
Parties  with  respect  to  the  subject matter hereof, and all prior agreements
respecting  the  subject  matter  hereof,  either  written or oral, expressed or
implied,  are  superseded hereby, merged and canceled, and are null and void and
of  no  effect.  No  amendment  or  change  hereof  or  addition hereto shall be
effective  or  binding on either of the Parties hereto unless reduced to writing
and  duly  executed  on behalf of both Parties.  For clarity, the termination of
this  Agreement  does not affect in any way either the CCA or the Stock Purchase
Agreement  between  BMS  and  Exelixis  dated  July  17,  2001.

     8.17  USE  OF  NAME. Except as required by law, neither Party shall use the
name  or trademarks of the other Party without the prior written consent of such
other  Party.

     8.18 HEADINGS. The captions to the several sections and articles hereof are
not  a  part  of  this  Agreement,  but  are  included merely for convenience of
reference  only  and  shall  not  affect  its  meaning  or  interpretation.

     8.19  COUNTERPARTS. This Agreement may be executed in two (2) counterparts,
each  of  which  shall be deemed an original and which together shall constitute
one  instrument.

                     [Rest of Page Intentionally Left Blank]

<PAGE>
IN  WITNESS  WHEREOF,  BMS  and  Exelixis  have executed this Agreement by their
respective  duly  authorized  representatives  as  of  the  Effective  Date.

BRISTOL-MYERS  SQUIBB  COMPANY     EXELIXIS,  INC.

By: /s/  Elliott  Sigal                              By:  /s/  Geoffrey  Duyk
   ------------------------------------------             -------------------

Title:  Sr.  Vice  President  Drug  Discovery        Title:  CSO
      ----------------------------------------             -------------------
&  Exploratory  Development
----------------------------------------------

Date:  July  17,  2001                               Date:  7/20/01
     -----------------                                    -------------------

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

<TABLE>
<CAPTION>
                                  EXHIBIT 1.7

                    PATENTS (BMY-027557 Rebaccamycin Analog)

COUNTRY  DESIGNATION                              PATENT  NUMBER  EXPIRATION  DATE
--------------------                              --------------  ----------------
<S>                                                <C>            <C>
United States
[ * ]                                                  4,785,085  Nov. 21, 2006
-------------------------------------------------  -------------  ---------------
United States
[ * ]                                                  4,808,613  Nov. 21, 2006
-------------------------------------------------  -------------  ---------------
Australia                                                 614068  Nov. 12, 2007
-------------------------------------------------  -------------  ---------------
Austria                                                  0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Belgium                                                  0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Canada                                                   1287349  Aug. 6, 2008
-------------------------------------------------  -------------  ---------------
China                                                      23842  Nov. 20, 2002
-------------------------------------------------  -------------  ---------------
Cyprus Republic                                          0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Czech Republic                                            265248  Nov. 17, 2002
-------------------------------------------------  -------------  ---------------
Denmark                                                   165986  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
European Patent                                          0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Finland                                                    86189  Nov. 18, 2007
-------------------------------------------------  -------------  ---------------
France                                                   0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Germany                                                  0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Great Britain                                            0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Greece                                                   0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Hong Kong                                               490/1993  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Hungary                                                   201773  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Ireland                                                    60595  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Israel                                                     84515  Nov. 18, 2007
-------------------------------------------------  -------------  ---------------
Italy                                                    0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
South Korea                                                42361  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Luxembourg                                               0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Malaysia                                               MY102722A  Sept.30, 2007
-------------------------------------------------  -------------  ---------------
Mexico                                                    181199  Nov. 21, 2006
-------------------------------------------------  -------------  ---------------
Netherlands                                              0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
New Zealand                                               222544  Nov. 13, 2007
-------------------------------------------------  -------------  ---------------
Norway                                                    167741  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Portugal                                                   86188  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Singapore                                                0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
South Africa                                             87/8714  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Spain                                                    0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Sweden                                                   0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Switzerland                                              0269025  Nov. 20, 2007
-------------------------------------------------  -------------  ---------------
Taiwan                                                    049467  Nov. 18, 2005
-------------------------------------------------  -------------  ---------------

                PATENTS (BMY-027557 REBECCAMYCIN ANALOG SOLUTION)

COUNTRY DESIGNATION                                PATENT NUMBER  EXPIRATION DATE
-------------------------------------------------  -------------  ---------------
United States
[ * ]                                                  5,496,809  March 5, 2013
-------------------------------------------------  -------------  ---------------
Australia                                                 618896  May 9, 2010
-------------------------------------------------  -------------  ---------------
Austria                                                  0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Belgium                                                  0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Canada                                                   2015632  Apr. 27, 2010
-------------------------------------------------  -------------  ---------------
China                                                   90102658  May 9, 2005
-------------------------------------------------  -------------  ---------------
Czech Republic                                            283416  May 7, 2010
-------------------------------------------------  -------------  ---------------
Denmark                                                  0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
European Patent                                          0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Finland                                                    95777  May 7, 2010
-------------------------------------------------  -------------  ---------------
France                                                   0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Germany                                                  0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Great Britain                                            0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Greece                                                   0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Hong Kong                                               1005033A  May 9, 2010
-------------------------------------------------  -------------  ---------------
Hungary                                                   206627  May 10, 2010
-------------------------------------------------  -------------  ---------------
Ireland                                                    66515  May 9, 2010
-------------------------------------------------  -------------  ---------------
Israel                                                     94312  May 7, 2010
-------------------------------------------------  -------------  ---------------
Italy                                                    0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Japan                                                    1918587  May 9, 2010
-------------------------------------------------  -------------  ---------------
South Korea                                               054248  May 8, 2010
-------------------------------------------------  -------------  ---------------
Liechtenstein                                            0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Luxembourg                                               0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Malaysia                                                MY105696  Nov. 30, 2009
-------------------------------------------------  -------------  ---------------
Netherlands                                              0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
New Zealand                                               233512  May 1, 2010
-------------------------------------------------  -------------  ---------------
Norway                                                    176390  May 9, 2010
-------------------------------------------------  -------------  ---------------
Portugal                                                   93991  Sep. 2, 2011
-------------------------------------------------  -------------  ---------------
Russian Fed                                              2053766  May 8, 2010
-------------------------------------------------  -------------  ---------------
South Africa                                             90/3535  May 9, 2010
-------------------------------------------------  -------------  ---------------
Spain                                                    0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Sweden                                                   0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Switzerland                                              0397147  May 9, 2010
-------------------------------------------------  -------------  ---------------
Taiwan                                                    061465  Mar. 20, 2008
-------------------------------------------------  -------------  ---------------
</TABLE>
<PAGE>

     2.

     1.
                                   EXHIBIT 4.2

                                   INDIVIDUALS

                                      [ * ]

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

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

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS
                                                        PAGE
<C>   <S>                                                <C>
  1.     Definitions . . . . . . . . . . . . . . . . . .   1
  2.     Licenses And Obligations. . . . . . . . . . . .   2
     2.1 Licenses to Exelixis. . . . . .   . . . . . . . . 2
     2.2 License to BMS. . . . . . . . .   . . . . . . . . 3
     2.3 Negative Covenants. . . . . . .   . . . . . . . . 3
     2.4 Transfer of BMS Know-How. .   . . . . . . . . . . 3
     2.5 Clinical Trial Development. .   . . . . . . . . . 3
     2.6 Identification of Manufacturer.   . . . . . . . . 5
     2.7 Non-solicitation and Non-hire . .   . . . . . . . 5
  3.    Confidentiality . . . . . . . . . .  . . . . . .   6
     3.1 Nondisclosure of Confidential Information .  .  . 6
     3.2 Exceptions. . . . . . . . . . . . . . . . . .   . 6
     3.3 Authorized Disclosure . . . . . . .   . . . . . . 6
  4.    Representations And Warranties. . . .  . . . . .   7
     4.1 Mutual Warranties . . . . . . . . . .   . . . . . 7
     4.2 BMS Warranties. . . . . . . . . . . . .   . . . . 7
     4.3 No Additional Representations . . . . . .   . . . 8
     4.4 Survival of Representations . . .   . . . . . . . 9
  5.    Patent Rights . . . . . . . . . . .  . . . . . .   9
     5.1 Patent Prosecution, Maintenance and Enforcement.. 9
     5.2 Infringement Claims . . . . . . . . .  . . . . . 10
  6.    Indemnification . . . . . . . . . . . .  . . . .  10
     6.1 BMS . . . . . . . . . . . . . . . . . .  . . . . 10
     6.2 Exelixis. . . . . . . . . . . . . . . .  . . . . 10
     6.3 Procedure . . . . . . . . . . . . . . . .  . . . 10
     6.4 Limitations on Liability. . . . . . . . .  . . . 11
  7.    Term And Termination. . . . . . . . . . . .  . .  11
     7.1 Term. . . . . . . . . . . . . . .  . . . . . . . 11
     7.2 Material Breach . . . . . . . . .  . . . . . . . 11
     7.3 Bankruptcy. . . . . . . . . . . . .  . . . . . . 11
     7.4 Effect of Termination or Expiration  . . . . . . 12
     7.5 Survival. . . . . . . . . . . . . . .  . . . . . 13
  8.    Miscellaneous . . . . . . . . . . . . .  . . . .  13
     8.1 Governing Law . . . . . . . . . . . . .  . . . . 13
     8.2 Patents . . . . . . . . . . . . . . . .  . . . . 13
     8.3 Consents Not Unreasonably Withheld or Delayed .  13
     8.4 Maintenance of Records. . . . . .  . . . . . . . 13
     8.5 Independent Contractors . . . . .  . . . . . . . 13
     8.6 Assignment. . . . . . . . . . . . .  . . . . . . 13
     8.7 Binding Effect. . . . . . . . . . .  . . . . . . 14
     8.8 Notices . . . . . . . . . . . . . . .  . . . . . 14
     8.9 Force Majeure . . . . . . . . . . . .  . . . . . 14
     8.11 Compliance with Laws. . . . . . . . . . . . . . 15
     8.12 Further Assurances. . . . . . . . . . . . . . . 15
     8.13 Retained Rights; No Further Rights. . . . . . . 15
     8.14 Severability. . . . . . . . . . . . . . . . . . 15
     8.15 Waiver. . . . . . . . . . . . . . . . . . . . . 15
     8.16 Complete Agreement. . . . . . . . . . . . . . . 15
     8.17 Use of Name . . . . . . . . . . . . . . . . . . 15
     8.18 Headings. . . . . . . . . . . . . . . . . . . . 15
     8.19 Counterparts. . . . . . . . . . . . . . . . . . 16
</TABLE>

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

Exhibit 10.1

                    SEPARATION AGREEMENT AND GENERAL RELEASE
                    ----------------------------------------

               Caution: Read Carefully This Is a Release in Full

     THIS SEPARATION AGREEMENT AND GENERAL RELEASE ("Agreement") is made and
entered into this 19th day of September 2001, between Jerry T. McDowell
("Employee"), and Alltrista Corporation (the "Company").

     WHEREAS, the Company employed Employee in the position of Group Vice
President, Metal Products;

     WHEREAS, the Company and Employee desire to amicably dispose of any and all
matters and claims of any kind or nature between them which may now or hereafter
exist in any way relating to Employee's employment with the Company and the
conclusion of that employment;

     NOW, THEREFORE, in consideration of the mutual promises contained in this
Agreement, it is agreed as follows:

     1. Definitions.
        -----------

     (a)  "Company" means Alltrista Corporation and all of its past and present
officers, directors, employees, trustees, agents, parent, partners, members,
shareholders, affiliates, divisions, principals, insurers, all employee benefit
plans (and any fiduciary of such plans) sponsored by the aforesaid entities, and
each of them, and each entity's subsidiaries, predecessors, successors, and
assigns, and all other entities, persons, firms, or corporations liable or who
might be claimed to be liable to Employee, none of whom admit any liability, but
all of whom expressly deny any such liability.

     (b)  "Competitor" means any person or entity that competes with the
Company's business of manufacturing, distributing, selling, packaging or
shipping either home-food preservation products or zinc metal coinage.

     (c)  "Customer" or "Client" means any person or entity which, within the
twelve (12) month period immediately preceding the Separation Date (as defined
below), used or purchased or contracted to use or purchase any services or
products from the Company; including, but not limited to, the following: the
United States Mint, the Royal Canadian Mint, Wal-Mart Stores, Inc., SuperValu,
Inc., Kroger Co., and Consolidated Stores Corp., and the affiliates and
subsidiaries thereof.

     (d)  "Effective Date" means that date occurring seven (7) calendar days
after Employee's signing of this Agreement, on the condition that this Agreement
is not revoked by Employee within the "Revocation Period".

<PAGE>

     (e)  "Performance Share Plan" means the Alltrista Corporation 1998
Performance Share Plan, effective as of January 1, 1998, and any amendments
thereto.

     (f)  "Restricted Period" means the period of time during the Consulting
Term (as defined below) and any extension of the Restricted Period pursuant to
paragraph 10 below.

     (g)  "Revocation Period" means the seven (7) calendar day period after
Employee signs this Agreement, not counting the day Employee actually signs it.

     (h) "Separation Date" means September 28, 2001.

     (i)  "Signing Period" means the twenty-one (21) day period following the
day Employee receives this Agreement, in which Employee has to consider whether
to sign this Agreement.

     (j)  "Stock Option Plan" means the Alltrista Corporation 1998 Stock Option
Plan.

     (k)  "Vendor" means any person or entity which is or within the twelve (12)
month period immediately preceding the Separation Date contracted to provide
services or products to the Company.

     2.   Employee's Release Of Claims. In consideration of the Company's
          ----------------------------
agreement to make the Separation Payments upon the terms and conditions
described in paragraph 3, Employee gives up, releases, and waives all Claims
against the Company, including without limitation: (a) all claims Employee has
as of the Effective Date of this Agreement, whether known or unknown, including
without limitation all claims arising directly or indirectly out of or relating
to Employee's employment with Company, or the termination of that employment,
including, but not limited to, any claims arising under the Fair Labor Standards
Act; Title VII of the Civil Rights Act of 1964, as amended; the Age
Discrimination in Employment Act ("ADEA"); the Older Worker Benefits Protection
Act ("OWBPA"); the Equal Pay Act; Employee Retirement Income Security Act; the
Consolidated Omnibus Budget Reconciliation Act; the Rehabilitation Act of 1973;
the Civil Rights Act of 1991; the Civil Rights Act of 1866 (42 U.S.C. ss.1981,
et seq.); the Family and Medical Leave Act; the Americans with Disabilities Act;
Indiana Civil Rights Law; all such laws as amended and/or any other federal,
state or local law; (b) all claims under any principle of common law or equity,
including but not limited to, claims for alleged unpaid wages or other
compensation; any tort; breach of contract; promissory or equitable estoppel;
and any other allegedly wrongful employment practices; and (c) all claims for
any type of relief from the Company, including but not limited to, claims for
damages of any kind and all claims for costs, expenses and attorneys fees.

     3.   Separation Payments. Contingent upon Employee's execution of this
          -------------------
Agreement within the Signing Period and the expiration of the Revocation Period,
the Company shall make payments (collectively, the "Separation Payments") to
Employee in the amounts and on the terms as set forth below in subparagraphs
3(a) through 3(e). Unless otherwise specified, all Separation Payments will be
made minus all applicable deductions, including deductions for any applicable,
federal, state, and local taxes and FICA. All Separation Payments will be deemed
to have been

                                       2

<PAGE>

made when a check representing the appropriate amount is mailed to Employee's
last known address. Employee acknowledges that the Separation Payments described
below constitute full and fair consideration for the release of all Claims, as
set forth in paragraph 2 above, and the performance of the consulting services
described in paragraph 4 below, and that the Company is not otherwise obligated
to make the below described Separation Payments. Employee also acknowledges that
all other forms of compensation, of whatever kind, that may be due to him by the
Company, other than those mentioned in this agreement are hereby extinguished.

     (a)  Initial Payment. Upon the expiration of the Revocation Period, the
          ---------------
Company shall pay to Employee an amount equal to Three Hundred and Thirty-Nine
Thousand Dollars ($339,000).

     (b)  COBRA. Upon the expiration of the Revocation Period, the Company shall
          -----
pay to Employee a lump sum cash payment in an amount equal to twelve (12) months
of premium payments for Employee's insurance coverage under COBRA.

     (c)  Performance Share Plan. Employee shall participate in the Performance
          ----------------------
Share Plan through the Separation Date and any payouts to Employee thereunder
shall be based on performance factors as of December 31, 2001. Any shares earned
by Employee under the Performance Share Plan shall be issued to Employee no
later than February 28, 2002.

     (d)  Incentive Compensation. Incentive compensation for 2001 shall be based
          ----------------------
on Employee's performance factor for that year and Employee's salary earned from
January 1, 2001 through the Separation Date. The Company shall pay any such
incentive compensation and any remaining bank balance to Employee no later than
February 28, 2002.

     (e)  Stock Options/Restricted Stock. Effective on the Separation Date, all
          ------------------------------
grants of stock options previously made to Employee (the "Options"), shall be
fully vested and immediately exercisable. Employee must exercise the Options in
accordance with the terms of the Stock Option Plan on or before June 30, 2002 or
the Options shall expire. Effective on the Separation Date, all restrictions on
any restricted stock grants made to Employee prior to the Separation Date shall
automatically lapse.

     4.   Consulting Services. Employee agrees during the period commencing on
          -------------------
the Effective Date and continuing until the third anniversary hereof (the
"Consulting Term") to be available to the Company up to ten (10) hours per
month, for such advisory and consulting services relating to the business,
operations, administration or policies of Company as from time to time may be
reasonably requested by Company. During the Consulting Term, Employee shall act
in the capacity of an independent contractor to Company, shall have no authority
to make commitments on behalf of or bind Company in any manner except as may be
specifically authorized by Company's Board of Directors from time to time, and
shall not make any representation nor hold himself out in any fashion
inconsistent with the foregoing. Without limiting the generality of the
preceding sentence, it is expressly understood that, during the Consulting Term,
Employee shall not be construed to be an employee, agent or partner of, or joint
venturer with, or to have any other relationship with Company except as an
independent contractor with Company under this Agreement. During the Restricted
Period (and any

                                       3

<PAGE>

extension thereof) and upon prior written approval of the Company (which such
approval will not be unreasonably withheld), the Employee may consult with any
person or business entity. Upon the expiration of the Restricted Period (and any
extension thereof) the company's prior approval is not required.

     5.   Return Of The Company's Property/Non-Disparagement. On or before the
          --------------------------------------------------
Effective Date, Employee will return to the Company all of the Company's
property that is in his possession or control, including, but not limited to,
credit cards, phone cards, cellular telephones, pagers, office keys,
directories, computer, computer hardware, books, documents, memoranda, computer
disks and other software, and all other records, and copies thereof. Each party
further agrees that neither will make any negative or disparaging remarks or
comments to any other person and/or entity about the other party.

     6.   Confidentiality. The Employee shall maintain the fact of and terms and
          ---------------
conditions of this Agreement as strictly confidential, and shall not disclose
the same to any person other than to Employee's attorney, accountant, and
spouse, if any, or as required by law or lawfully-issued subpoena.

     7.   Confidential Information. Employee acknowledges that in the course of
          ------------------------
his employment with the Company he had access to or knowledge of trade secrets
and other information about the Company which is confidential or proprietary to
the Company, including, but not limited to: (a) information about the Company,
Company's business, its employees and its products; (b) techniques, technical
know-how, methods, and formulations; (c) hardware, software and computer
programs and technology used by Company; (d) the Customer/Client database and
other information about the Company's Customers/Clients, such as contacts,
criteria, requirements, specifications, policies, or other similar information;
(e) relationships with other service providers, partners and contractors; (f)
Vendor and supplier information; (g) marketing plans and concepts; (h) fee, rate
and price information; (i) sales, costs, profits, profit margins, salaries and
other financial information pertaining to the Company or Company's business; and
(j) information pertaining to the Company's Customers'/Clients' users, customers
or clients, including but not limited to personal information such as names,
addresses, e-mail addresses, financial information, etc. (All collectively
referred to as "Confidential Information"). At all times after the Effective
Date, Employee agrees not to disclose to any third party any Confidential
Information made known to him by the Company, or learned by him while in the
Company's employ; nor shall Employee use any such information for his benefit or
for the benefit of any third party. Employee understands that this
confidentiality provision was a material and significant inducement for the
Company to enter into this Agreement.

     8.   Non-Competition. Employee has become acquainted with the affairs of
          ---------------
the Company, its officers and employees, its services, products, business
practices, business relationships and the needs and requirements of its
Customers and prospective customers, trade secrets, Confidential Information,
and other information proprietary to the Company. To protect these interests of
the Company and the Company's goodwill, and to prevent unfair competition and
the inevitable use or disclosure of such proprietary information or Confidential
Information to a Competitor, Vendor, Customer or Client, during the Restricted
Period Employee agrees that he SHALL NOT either directly or indirectly, perform
on behalf of a Competitor, Vendor,

                                       4

<PAGE>

Customer or Client the same or similar services as those Employee performed
for the Company while employed by the Company. Because of the nature of the
Company's business, the potential irreparable harm that will occur to the
Company as a result of competition by Employee is not necessarily tied to the
physical location or presence of the Company, Employee, Competitor, Vendor,
Customer or Client. Therefore, the non-competition restriction set forth in this
paragraph 8 shall apply to the broadest enforceable geographic restrictions,
including without limitation the following (excluding any state or location
where covenants not to compete are prohibited by law): (a) any state or location
in which Employee acted on behalf of the Company within the twenty-four (24)
month period immediately preceding the Separation Date, including without
limitation: Indiana, Tennessee, Washington, D.C., Colorado, Florida, Ohio,
Arkansas, Pennsylvania, Minnesota; (b) any state in which Employee performs
consulting services (as described in paragraph 4 above) for the Company during
the Consulting Term; and (c) the United States of America and Canada. Employee's
obligations set forth in this paragraph 8 and the Company's rights and remedies
with respect thereto, whether legal or equitable, shall remain in full force and
effect during the Restricted Period (and any extension thereof).

     9.    Non-Solicitation. During the Restricted Period, Employee shall not,
           ----------------
directly or indirectly, as an entity, individually or on behalf of any other
individual, corporation, partnership, firm, other company, business
organization, or entity, or in any other capacity, in promotion of or otherwise
with respect to a Competitor, call upon, solicit, contact, or service any
Customer or Client, or any potential customer or client, of the Company that the
Employee called upon, solicited, contacted, or serviced within the twenty-four
(24) month period immediately preceding the Separation Date. Furthermore, during
the Restricted Period, Employee shall not, directly or indirectly, as an entity,
individually or on behalf of any other individual, corporation, partnership,
firm, other company, business organization, or entity, or in any other capacity,
in promotion of or otherwise with respect to any business or activity (whether
or not for a Competitor), solicit for employment, endeavor to entice away from
the Company, hire, or otherwise interfere with the relationship of the Company
with any person who was employed or otherwise engaged to perform services for
the Company within the twenty-four (24) month period immediately preceding the
Separation Date or during the Consulting Term. Employee's obligations set forth
in this paragraph 9 and the Company's rights and remedies with respect thereto,
whether legal or equitable, shall remain in full force and effect during the
Restricted Period (and any extension thereof).

     10.   Change In Ownership. The Company and Employee recognize that any
           -------------------
potential purchaser of the Company will value Employee's non-competition with
the Company given Employee's years of industry experience. Accordingly, the
Company and Employee have agreed to a 24-month extension of the Restricted
Period of this Agreement, in the event of a Change in Ownership. For purposes of
this Agreement, a Change in Ownership is defined as: the entering into any
discussions by the Company prior to June 30, 2002, the consummation of which
occurs within six (6) months of June 30, 2002 and results in a merger or
consolidation of the Company with any other corporation, company, or entity,
other than (a) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent (50%) of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such

                                       5

<PAGE>

merger or consolidation; or (b) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no
person acquires fifty percent (50%) or more of the combined voting power of the
Company's then outstanding securities. For purposes of this Agreement, Change in
Ownership also means the entering into any discussions by the Company prior to
June 30, 2002, the consummation of which occurs within six (6) months of June
30, 2002 and results in a complete liquidation of the Company, the sale or
disposition by the Company of all or substantially all of the Company's assets,
or the purchase by a third party of more than fifty percent (50%) of the
Company's outstanding common stock. Notwithstanding anything contained herein to
the contrary, Employee hereby recognizes and agrees that a sale by the Company
of the thermoforming division of the Company, alone, shall not constitute a
Change in Ownership.

     Upon a Change in Ownership of the Company (as defined above), the
Restricted Period shall extend for a period of twenty-four (24) months and the
Company shall pay Employee as soon as reasonably practicable after the Change in
Ownership Eight Hundred and Eighty-Five Thousand Dollars ($885,000).

     11.   Reasonableness Of Terms. The parties each stipulate and agree that
           -----------------------
the terms and covenants contained in paragraphs 6, 7, 8 and 9 are fair and
reasonable in all respects and that these restrictions are designed for the
reasonable protection of the Company's business.

     12.   Remedies. The Employee recognizes that any breach of the restrictive
           --------
covenants of this Agreement will cause irreparable injury to the goodwill and
proprietary rights of the Company, inadequately compensable in monetary damages.
Accordingly, in addition to any other legal or equitable remedies that may be
available to the Company, the Employee agrees that the Company will be able to
seek injunctive relief in the form of a temporary restraining order, without
notice, preliminary injunction, or permanent injunction against the Employee to
enforce this Agreement. To the extent that any damages are calculable resulting
from the breach of this Agreement, the Company shall also be entitled to recover
damages from the Employee, including any lost profits of the Company. Any
recovery of damages by the Company shall be in addition to and not in lieu of
the injunctive relief to which the Company is entitled. In no event shall a
damage recovery be considered a penalty in liquidated damages, but shall be
considered as measurable compensation damages for breach by the Employee. In any
action at law or in equity arising out of this Agreement, the prevailing party
shall be entitled to reasonable attorneys' fees, expenses (including experts and
consultants) and court costs in addition to any other relief to which it may be
entitled.

     13.   Twenty-One Calendar Day Period To Consider This Agreement. Employee
           ---------------------------------------------------------
hereby recognizes and acknowledges that his signing of this Agreement before the
end of the 21-day Signing Period will be his personal and voluntary decision to
do so. Employee further recognizes that if he fails to deliver this Agreement to
the Company within the Signing Period, the offer to provide the payments
described herein shall expire and be deemed withdrawn at the end of the Signing
Period.

                                       6

<PAGE>

     14.   Right To Revoke This Agreement. This Agreement will not become
           ------------------------------
effective or enforceable unless and until the Revocation Period has expired
without a revocation by Employee.

     15.   Procedure For Accepting Or Revoking The Agreement. To accept the
           -------------------------------------------------
terms of this Agreement, Employee must deliver the Agreement, after it has been
signed and dated by him, to the Company by hand or by mail and it must be
received by the Company within the Signing Period. To revoke his acceptance,
Employee must deliver a written, signed statement of the revocation of his
acceptance to the Company by hand or by mail and any such notice of revocation
must be received by the Company within the Revocation Period. All deliveries
shall be made to the Company as follows and marked "Personal and Confidential":
Alltrista Corporation, ATTN: J. David Tolbert, Vice President, Human Resources
and Administration, 5875 Castle Creek Parkway North Drive, Suite 440,
Indianapolis, Indiana 46250. If Employee chooses to deliver his acceptance or
any revocation notice by mail, it must be: (a) postmarked and received by the
Company within the applicable period stated above; (b) properly addressed to the
Company at the address stated above; and (c) sent by certified mail, return
receipt requested.

     16.   Representations And Warranties. Employee hereby represents and
           ------------------------------
warrants to the Company (with the understanding that the Company has relied upon
such representations and warranties) that: (a) he has read this Agreement
carefully and understands all of its terms; (b) in agreeing to sign this
Agreement, Employee has not relied on any statements or explanations made by the
Company, except as specifically set forth in this Agreement; (c) Employee
voluntarily releases any claims against the Company, and understands that, in
consideration of accepting the consideration described above, he may be giving
up possible administrative and/or legal claims against the Company; however, no
rights or claims arising after the execution of this agreement are hereby
waived; (d) Employee understands and agrees that this Agreement contains all of
the agreements between the Company and Employee relating to the matters included
in this Agreement; (e) Employee understands and agrees that this Agreement may
not be assigned by Employee to any individual or entity; and (f) the Company has
advised Employee that he should consult with an attorney prior to signing this
Agreement, that Employee has had adequate opportunity to do so, and that
Employee's decision to sign this Agreement was voluntary and made after being
given opportunity to consult with an attorney.

     17.   Severability. If any provision of this Agreement is or becomes
           ------------
invalid, illegal or unenforceable in any respect under any law, the validity,
legality and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired.

     18.   Amendment and Waiver. Neither this Agreement nor any term, covenant,
           --------------------
condition or other provision hereof may be changed, waived, discharged or
terminated except by an instrument in writing signed by both parties. No delay
or omission by either party hereto in exercising any right, power or privilege
hereunder shall impair such right, power or privilege nor shall any single or
partial exercise of any such right, power or privilege preclude any further
exercise thereof or the exercise of any other right, power or privilege.

                                       7

<PAGE>

     19.   Counterparts. This Agreement may be executed in one or more identical
           ------------
counterparts, each of which when executed by both of the parties and delivered
shall be an original, but all of which taken together shall constitute one and
the same instrument.

     20.   Assignment. The rights and obligations of the parties hereto shall
           ----------
inure to the benefit of, and shall be binding upon, the successors and assigns
of each of them; provided, however, that Employee shall not assign this
Agreement without the prior written consent of the Company.

     21.   Entire Agreement. This Agreement constitutes the entire agreement
           ----------------
between the parties with respect to the subject matter hereof.

     22.   Jurisdiction and Venue; Governing Law. Any action to enforce,
           -------------------------------------
challenge or construe the terms or making of this Agreement or to recover for
its breach shall be litigated exclusively in a state or federal court located in
Marion County, Indiana, except that the Company may elect, at its sole
discretion, to litigate the action in the county or state where Employee can be
found. Employee hereby waives any defense of lack of personal jurisdiction or
improper venue. This Agreement and the performance by the parties under this
Agreement shall be governed by the laws of the State of Indiana, notwithstanding
the choice of law provisions of the venue where the action is brought, where the
violation occurred, or where the Employee may be located.

     23.   Headings. The headings of the sections of this Agreement have been
           --------
inserted for convenience of reference only and shall not be deemed to be a part
of this Agreement.

                            [Signatures On Next Page]

                                       8

<PAGE>

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

                                              "COMPANY"

                                              ALLTRISTA CORPORATION

                                              /s/ Thomas B. Clark
                                              By:  Thomas B. Clark
                                              Its: Chairman, President and CEO

                                              "EMPLOYEE"

                                              /s/ Jerry T. McDowell
                                              Jerry T. McDowell

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]