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                                                                   EXHIBIT 10.18

                             TRANSMETA CORPORATION

                         NON-PLAN STOCK OPTION AGREEMENT

        This Non-Plan Stock Option Agreement ("AGREEMENT") is made and entered
into as of the date of grant set forth below (the "DATE OF GRANT") by and
between Transmeta Corporation, a Delaware corporation (the "COMPANY"), and the
participant named below ("PARTICIPANT").

PARTICIPANT:
                                        ----------------------------------------
SOCIAL SECURITY NUMBER:
                                        ----------------------------------------
ADDRESS:
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                                        ----------------------------------------
TOTAL OPTION SHARES:
                                        ----------------------------------------
EXERCISE PRICE PER SHARE:
                                        ----------------------------------------
DATE OF GRANT:
                                        ----------------------------------------
FIRST VESTING DATE:
                                        ----------------------------------------
EXPIRATION DATE:
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                                        (unless earlier terminated under
                                         Section 3 below)

        1. GRANT OF OPTION. The Company hereby grants to Participant a
nonqualified stock option (the "OPTION") to purchase the total number of shares
of Common Stock, $0.00001 par value per share, of the Company set forth above as
Total Option Shares (the "SHARES") at the Exercise Price Per Share set forth
above (the "EXERCISE PRICE"), subject to all of the terms and conditions of this
Agreement.

        2. EXERCISE PERIOD.

                2.1 Exercise Period of Option. Provided Participant continues to
provide services to the Company or any Subsidiary or Parent of the Company, the
Option will become vested and exercisable as to portions of the Shares as
follows: (i) this Option shall not vest nor be exercisable with respect to any
of the Shares until the First Vesting Date set forth on the first page of this
Agreement (the "FIRST VESTING DATE"); (ii) on the First Vesting Date the Option
will become vested and exercisable as to one-fourth of the Shares; and (iii)
thereafter at the end of each full succeeding month the Option will become
vested and exercisable as to 2.0833% of the Shares until the Shares are vested
with respect to one hundred percent (100%) of the Shares. If application of the
vesting percentage causes a fractional share, such share shall be rounded down
to the nearest whole share for each month except for the last month in such
vesting period, at the end of which last month this Option shall become
exercisable for the full remainder of the Shares.

                "PARENT" means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if each of such
corporations other than the Company owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in such chain. "SUBSIDIARY" means any corporation (other than the
Company) in an unbroken chain of corporations beginning with the Company if each
of the corporations other than the last corporation in the unbroken chain owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

                2.2 Vesting of Options. Shares that are vested pursuant to the
schedule set forth in Section 2.1 are "VESTED SHARES." Shares that are not
vested pursuant to the schedule set forth in Section 2.1 are

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"UNVESTED SHARES." Unvested Shares may not be sold or otherwise transferred by
Participant without the Company's prior written consent.

                2.3 Expiration. The Option shall expire on the Expiration Date
set forth above or earlier as provided in Section 3 or Section 16.1 below.

        3. TERMINATION.

                3.1 Termination for Any Reason Except Death, Disability or
Cause. If Participant is Terminated for any reason, except death, Disability or
Cause, the Option, to the extent (and only to the extent) that it would have
been exercisable by Participant on the Termination Date, may be exercised by
Participant no later than three (3) months after the Termination Date, but in
any event no later than the Expiration Date.

                3.2 Termination Because of Death or Disability. If Participant
is Terminated because of death or Disability of Participant (or Participant dies
within three (3) months of Termination other than for Cause or because of
Participant's death or Disability), the Option, to the extent that it is
exercisable by Participant on the Termination Date, may be exercised by
Participant (or Participant's legal representative) no later than twelve (12)
months after the Termination Date, but in any event no later than the Expiration
Date.

                3.3 Termination for Cause. If Participant is Terminated for
Cause, then the Option will expire on Participant's Termination Date, or at such
later time and on such conditions as determined by the Company's Board of
Directors.

                3.4 No Obligation to Employ. Nothing in this Agreement shall
confer on Participant any right to continue in the employ of, or other
relationship with, the Company or any Parent or Subsidiary of the Company, or
limit in any way the right of the Company or any Parent or Subsidiary of the
Company to terminate Participant's employment or other relationship at any time,
with or without Cause.

                3.5 Definitions. The following terms used in this Agreement will
have the meanings set forth in this Section. "TERMINATION" or "TERMINATED"
means, for purposes of this Agreement with respect to Participant, that the
Participant has for any reason ceased to provide services as an employee,
officer, director or consultant to the Company or a Parent or Subsidiary of the
Company. An employee will not be deemed to have ceased to provide services in
the case of (i) sick leave, (ii) military leave, or (iii) any other leave of
absence approved by the Company's Board of Directors, provided that such leave
is for a period of not more than 90 days unless reemployment upon the expiration
of such leave is guaranteed by contract or statute, or unless provided otherwise
pursuant to formal policy adopted from time to time by the Company and issued
and promulgated in writing. In the case of Participant on (i) sick leave, (ii)
military leave or (iii) an approved leave of absence, the Company's Board of
Directors may make such provisions respecting suspension of vesting of the
Option while on leave from the employ of the Company or a Subsidiary as it may
deem appropriate, except that in no event may the Option be exercised after the
expiration of the term set forth herein. The Company's Board of Directors will
have sole discretion to determine whether Participant has ceased to provided
services and the effective date on which Participant ceased to provided services
(the "TERMINATION DATE"). "DISABILITY" means a disability, whether temporary or
permanent, partial or total, as determined by the Company's Board of Directors.
"CAUSE" means Termination because of (i) any willful material violation by the
Participant of any law or regulation applicable to the business of the Company
or a Parent or Subsidiary of the Company, the Participant's conviction for, or
guilty plea to, a felony or a crime involving moral turpitude, any willful
perpetration by the Participant of a common law fraud or any unlawful use by the
Participant of drugs or other controlled substances, (ii) the Participant's
commission of an act of personal dishonesty which involves personal profit in
connection with the Company or any other entity having a business relationship
with the Company, (iii) any material breach by the Participant of any provision
of any agreement or understanding between the Company and the Participant
regarding the terms of the Participant's service as an employee, director or
consultant to the Company or a Parent or Subsidiary of the Company, including
without limitation, the willful and continued failure or refusal of the
Participant to perform the material duties required of such Participant as an
employee, director or consultant of the Company or a Parent or Subsidiary of the
Company, other than as a result of having a Disability, or a breach of any
applicable invention

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assignment and confidentiality agreement or similar agreement between the
Company and the Participant, (iv) Participant's disregard of the policies of the
Company so as to cause loss, damage or injury to the property, reputation or
employees of the Company or a Parent or Subsidiary of the Company, or (v) any
other misconduct by the Participant which is materially injurious to the
financial condition or business reputation of, or is otherwise materially
injurious to, the Company or a Parent or Subsidiary of the Company.

        4. MANNER OF EXERCISE.

                4.1 Stock Option Exercise Agreement. To exercise this Option,
Participant (or in the case of exercise after Participant's death or incapacity,
Participant's executor, administrator, heir or legatee, as the case may be) must
deliver to the Company an executed stock option exercise agreement in the form
attached hereto as Exhibit A, or in such other form as may be approved by the
Company's Board of Directors from time to time (the "EXERCISE AGREEMENT"), which
shall set forth, inter alia, Participant's election to exercise the Option, the
number of Shares being purchased, any restrictions imposed on the Shares and any
representations, warranties and agreements regarding Participant's investment
intent and access to information as may be required by the Company to comply
with applicable securities laws. If someone other than Participant exercises the
Option, then such person must submit documentation reasonably acceptable to the
Company verifying that such person has the legal right to exercise the Option
and such person shall be subject to all of the restrictions contained herein as
if such person were the Participant.

                4.2 Limitations on Exercise. The Option may not be exercised
unless such exercise is in compliance with all applicable federal and state
securities laws, as they are in effect on the date of exercise. The Option may
not be exercised as to fewer than one hundred (100) Shares unless it is
exercised as to all Shares as to which the Option is then exercisable.

                4.3 Payment. The Exercise Agreement shall be accompanied by full
payment of the Exercise Price for the shares being purchased in cash (by check),
or where permitted by law:

        (a) by cancellation of indebtedness of the Company to the Participant;

        (b) at the discretion of the Company's Board of Directors, by surrender
            of shares of the Company's Common Stock that either: (1) have been
            owned by Participant for more than six (6) months and have been paid
            for within the meaning of SEC Rule 144 (and, if such shares were
            purchased from the Company by use of a promissory note, such note
            has been fully paid with respect to such shares); or (2) were
            obtained by Participant in the open public market; and (3) are clear
            of all liens, claims, encumbrances or security interests;

        (c) at the discretion of the Company's Board of Directors, by tender of
            a full recourse promissory note having such terms as may be approved
            by the Company's Board of Directors and bearing interest at a rate
            sufficient to avoid imputation of income under Sections 483 and 1274
            of the Code; provided, however, that Participant who is not an
            employee or director of the Company shall not be entitled to
            purchase Shares with a promissory note unless the note is adequately
            secured by collateral other than the Shares; provided further, that
            the portion of the Exercise Price equal to the par value of the
            Shares must be paid in cash or other legal consideration permitted
            by the Delaware General Corporation Law;

        (d) by waiver of compensation due or accrued to Participant for services
            rendered;

        (e) provided that a public market for the Company's stock exists, (1)
            through a "same day sale" commitment from Participant and a
            broker-dealer that is a member of the National Association of
            Securities Dealers (an "NASD DEALER") whereby Participant
            irrevocably elects to exercise the Option and to sell a portion of
            the Shares so purchased to pay for

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            the Exercise Price and whereby the NASD Dealer irrevocably commits
            upon receipt of such Shares to forward the Exercise Price directly
            to the Company, or (2) through a "margin" commitment from
            Participant and an NASD Dealer whereby Participant irrevocably
            elects to exercise the Option and to pledge the Shares so purchased
            to the NASD Dealer in a margin account as security for a loan from
            the NASD Dealer in the amount of the Exercise Price, and whereby the
            NASD Dealer irrevocably commits upon receipt of such Shares to
            forward the Exercise Price directly to the Company; or

        (f) by any combination of the foregoing.

                4.4 Tax Withholding. Prior to the issuance of the Shares upon
exercise of the Option, Participant must pay or provide for any applicable
federal, state and local withholding obligations of the Company. If the
Company's Board of Directors permits, Participant may provide for payment of
withholding taxes upon exercise of the Option by requesting that the Company
retain Shares with a fair market value (as determined in good faith by the
Company's Board of Directors) equal to the minimum amount of taxes required to
be withheld. In such case, the Company shall issue the net number of Shares to
the Participant by deducting the Shares retained from the Shares issuable upon
exercise.

                4.5 Issuance of Shares. Provided that the Exercise Agreement and
payment are in form and substance satisfactory to counsel for the Company, the
Company shall issue the Shares registered in the name of Participant,
Participant's authorized assignee, or Participant's legal representative, and
shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

        5. COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of the Option and
the issuance and transfer of Shares shall be subject to compliance by the
Company and Participant with all applicable requirements of federal and state
securities laws and with all applicable requirements of any stock exchange on
which the Company's Common Stock may be listed at the time of such issuance or
transfer. Participant understands that the Company is under no obligation to
register or qualify the Shares with the Securities and Exchange Commission, any
state securities commission or any stock exchange to effect such compliance.

        6. NONTRANSFERABILITY OF OPTION. The Option may not be transferred in
any manner other than by will or by the laws of descent and distribution and may
be exercised during the lifetime of Participant only by Participant. The terms
of the Option shall be binding upon the executors, administrators, successors
and assigns of Participant.

        7. INTENTIONALLY LEFT BLANK.

        8. TAX CONSEQUENCES. Set forth below is a brief summary as of the date
hereof of some of the federal and California tax consequences of exercise of the
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. PARTICIPANT SHOULD
CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES.

                8.1 Exercise of Option. There may be a regular federal and
California income tax liability upon the exercise of the Option. Participant
will be treated as having received compensation income (taxable at ordinary
income tax rates) equal to the excess, if any, of the fair market value of the
Shares on the date of exercise over the Exercise Price. If Participant is or was
an employee of the Company, the Company will be required to withhold from
Participant's compensation or collect from Participant and pay to the applicable
taxing authorities an amount equal to a percentage of this compensation income
at the time of exercise.

                8.2 Disposition of Shares. If the Shares are held for more than
twelve (12) months after the date of the transfer of the Shares pursuant to the
exercise of the Option for Vested Shares, any gain realized on disposition of
the Shares will be treated as long term capital gain for federal and California
income tax purposes.

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        9. PRIVILEGES OF STOCK OWNERSHIP. Participant shall not have any of the
rights of a stockholder with respect to any Shares until the Shares are issued
to Participant.

        10. INTERPRETATION. Any dispute regarding the interpretation of this
Agreement shall be submitted by Participant or the Company to the Company's
Board of Directors for review. The resolution of such a dispute by the Company's
Board of Directors shall be final and binding on the Company and Participant.

        11. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of
the parties and supersedes all prior undertakings and agreements with respect to
the subject matter hereof.

        12. NOTICES. Any notice required to be given or delivered to the Company
under the terms of this Agreement shall be in writing and addressed to the
Corporate Secretary of the Company at its principal corporate offices. Any
notice required to be given or delivered to Participant shall be in writing and
addressed to Participant at the address indicated above or to such other address
as such party may designate in writing from time to time to the Company. All
notices shall be deemed to have been given or delivered upon: personal delivery;
three (3) days after deposit in the United States mail by certified or
registered mail (return receipt requested); one (1) business day after deposit
with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile, rapifax or telecopier.

        13. SUCCESSORS AND ASSIGNS. The Company may assign any of its rights
under this Agreement. This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer set forth herein, this Agreement shall be binding upon
Participant and Participant's heirs, executors, administrators, legal
representatives, successors and assigns.

        14. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California as such laws are applied to
agreements between California residents entered into and to be performed
entirely within California. If any provision of this Agreement is determined by
a court of law to be illegal or unenforceable, then such provision will be
enforced to the maximum extent possible and the other provisions will remain
fully effective and enforceable.

        15. TAX CONSEQUENCES. Participant acknowledges that there may be adverse
tax consequences upon exercise of the Option or disposition of the Shares and
that Participant should consult a tax adviser prior to such exercise or
disposition.

        16. CORPORATE TRANSACTIONS.

                16.1 Assumption or Replacement of Option by Successor. In the
event of (a) a dissolution or liquidation of the Company, (b) a merger or
consolidation in which the Company is not the surviving corporation (other than
a merger or consolidation with a wholly-owned subsidiary, a reincorporation of
the Company in a different jurisdiction, or other transaction in which there is
no substantial change in the stockholders of the Company or their relative stock
holdings and the Option is assumed, converted or replaced by the successor
corporation, which assumption will be binding on Participant), (c) a merger in
which the Company is the surviving corporation but after which the stockholders
of the Company immediately prior to such merger (other than any stockholder
which merges, or which owns or controls another corporation which merges, with
the Company in such merger) cease to own their shares or other equity interests
in the Company, or (d) the sale of substantially all of the assets of the
Company, the Option may be assumed, converted or replaced by the successor
corporation (if any), which assumption, conversion or replacement will be
binding on Participant. In the alternative, the successor corporation may
substitute an equivalent Option or provide substantially similar consideration
to Participant as was provided to stockholders (after taking into account the
existing provisions of the Option). The successor corporation may also issue, in
place of outstanding Shares of the Company held by the Participant,
substantially similar shares or other property subject to repurchase
restrictions and other provisions no less favorable to the Participant than
those which applied to such outstanding Shares immediately prior to such
transaction described in this Subsection 16.1. In the event such successor
corporation (if any) refuses to assume or substitute the Option, as provided
above, pursuant to a transaction described in this Subsection 16.1, then
notwithstanding any other

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provision in this Agreement to the contrary, the Option will expire on such
transaction at such time and on such conditions as the Company's Board of
Directors will determine.

                16.2 Other Treatment of Option or Shares. Subject to any greater
rights granted to Participant under the foregoing provisions of this Section 16,
in the event of the occurrence of any transaction described in Section 16.1, the
Option and the Shares will be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation or sale of assets.

        17. REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF PARTICIPANT.
Participant hereby represents and warrants to, and agrees with, the Company
that:

                17.1 AUTHORIZATION. This Agreement constitutes Participant's
valid and legally binding obligation, enforceable in accordance with its terms
except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization or other laws of general application relating to or affecting the
enforcement of creditors' rights generally and (ii) the effect of rules of law
governing the availability of equitable remedies.

                17.2 PURCHASE FOR OWN ACCOUNT. The Option will be acquired for
investment for Participant's own account, not as a nominee or agent, and not
with a view to the public resale or distribution thereof within the meaning of
the Securities Act of 1933, as amended (the "SECURITIES ACT"), and Participant
has no present intention of selling, granting any participation in, or otherwise
distributing the same.

                17.3 DISCLOSURE OF INFORMATION. Participant has received or has
had full access to all the information Participant considers necessary or
appropriate to make an informed investment decision with respect to the Option.
Participant further has had an opportunity to ask questions and receive answers
from the Company regarding the terms and conditions of the offering of the
Option and to obtain additional information (to the extent the Company possessed
such information or could acquire it without unreasonable effort or expense)
necessary to verify any information furnished to Participant or to which
Participant had access.

                17.4 INVESTMENT EXPERIENCE. Participant understands that the
Option involves substantial risk. Participant: (i) has experience as an investor
in securities of companies in the development stage and acknowledges that
Participant is able to fend for itself, can bear the economic risk of
Participant's investment in the Option and has such knowledge and experience in
financial or business matters that Participant is capable of evaluating the
merits and risks of this investment in the Option and protecting Participant's
own interests in connection with this investment and/or (ii) has a preexisting
personal or business relationship with the Company and certain of its officers,
directors or controlling persons of a nature and duration that enables
Participant to be aware of the character, business acumen and financial
circumstances of such persons.

                17.5 RESTRICTED SECURITIES. Participant understands that the
Option is characterized as "restricted securities" under the Securities Act
inasmuch as it is being acquired from the Company in a transaction not involving
a public offering and that under the Securities Act and applicable regulations
thereunder such securities may be resold without registration under the
Securities Act only in certain limited circumstances. In this connection,
Participant represents that Participant is familiar with Rule 144 of the U.S.
Securities and Exchange Commission (the "SEC"), as presently in effect, and
understands the resale limitations imposed thereby and by the Securities Act.
Participant understands that the Company is under no obligation to register any
of the securities sold hereunder. Participant understands that no public market
now exists for the Option or the Shares and that it is uncertain whether a
public market will ever exist for the Options or the Shares.

        18. ADJUSTMENT OF SHARES. In the event that the number of outstanding
shares of the Company's Common Stock is changed by a stock dividend,
recapitalization, stock split, reverse stock split, subdivision, combination,
reclassification or similar change in the capital structure of the Company
without consideration, then the Exercise Price of and number of Shares subject
to the Option will be proportionately adjusted, subject to any required action
by the Company's Board of Directors or stockholders and compliance with
applicable securities laws; provided, however, that fractions of a Share will
not be issued but will either be paid in

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cash at fair market value of such fraction of a Share or will be rounded down to
the nearest whole Share, as determined by the Company's Board of Directors.

        19. VOTING AND DIVIDENDS. Participant will not have any of the rights of
a stockholder with respect to any Shares until the Shares are issued to the
Participant. After Shares are issued to the Participant, the Participant will be
a stockholder and have all the rights of a stockholder with respect to such
Shares, including the right to vote and receive all dividends or other
distributions made or paid with respect to such Shares.

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        IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
in duplicate by its duly authorized representative and Participant has executed
this Agreement in duplicate as of the Date of Grant.

TRANSMETA CORPORATION                       PARTICIPANT

By:
   --------------------------------         ------------------------------------
                                            (Signature)

-----------------------------------         ------------------------------------
(Please print name)                         (Please print name)

-----------------------------------         ------------------------------------
(Please print title)

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                                                                   EXHIBIT 10.45

                                LICENSE AGREEMENT

        This License Agreement ("Agreement") dated as of December 22, 2000, is
entered into by and between Chugai Pharmaceutical Co. Ltd., a Japanese
corporation with principal offices at 1-9 Kyobashi 2-Chome, Chuo-ku, Tokyo
104-8301, Japan ("Chugai"), Molecular Biosystems, Inc., a Delaware corporation
with principal offices at 10030 Barnes Canyon Road, San Diego, California 92121,
USA ("MBI"), and Sonus Pharmaceuticals, Inc., a Delaware corporation with
principal offices at 22026 20th Avenue S.E., Bothell, Washington 98021, USA
("Sonus").

                                    RECITALS

        WHEREAS, Sonus has developed and holds patents and patent applications
on ultrasound contrast agents, and

        WHEREAS, Chugai and MBI are parties to one or more agreements pursuant
to which MBI has licensed Chugai to develop, manufacture use, sell and offer to
sell certain ultrasound contrast agents, including Optison (as defined below) in
Japan, South Korea, and Taiwan, and

        WHEREAS, Chugai and MBI desire that Chugai and MBI obtain rights under
the Sonus Patents (as defined below) to develop manufacture, use, sell, offer to
sell, and import ultrasound contrast agents in Japan, South Korea, and Taiwan,

        NOW THEREFORE, in consideration of the premises and the faithful
performance of the mutual covenants hereinafter set forth, the parties hereto
hereby agree as follows:

1. DEFINITIONS

As used in this Agreement, the following defined terms shall have the respective
meanings set forth below:

        1.1 "Sonus Japanese Patent Applications" means Japanese patent
applications nos. 05-506054, 06-517084, and 2000-150619.

        1.2 "Sonus Patents" shall mean Korean patent no. 191,303, Taiwanese
patent nos. 63,126 and 111,135, and any patents which may issue from Korean
patent application no. 703129/95 or from the Sonus Japanese Patent Applications,
or on any continuation or divisional application of them.

        1.3 "Affiliate" means any entity which controls, is controlled by, or is
under common control with another entity. An entity is deemed to be in control
of another entity if such company directly or indirectly owns 50% or more in
nominal value of the issued equity share capital of such other company, or 50%
or more of the shares entitled to vote upon the election of: (i) the directors,
(ii) persons performing functions similar to those performed by directors or
(iii) persons otherwise having the right to elect or appoint (a) directors
having the majority vote of the Board of Directors, or (b) other persons having
the majority vote of the highest and most authoritative directive body of such
other company.

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   2

        1.4 "Territory" shall mean Japan, Taiwan, and South Korea.

        1.5 "Net Sales" shall mean the gross revenues recognized by Chugai or
MBI, and their Affiliates (including revenues recognized from distributors,
agents, or licensees), less sales, use, value-added, consumption or other
similar taxes, returns, and actual discounts or rebates granted, and
transportation and insurance on account of the sale or other disposition of
Optison.

        1.6 "Nycomed" shall mean Nycomed Imaging AS, a Norwegian corporation.

        1.7 "Quarter" shall mean each three-month calendar quarter, commencing
each January 1st, April 1st, July 1st and October 1st during the term of this
Agreement, provided that the first Quarter shall include any remaining portion
of the calendar quarter following the date of this Agreement in addition to the
calendar quarter following such portion. "Quarterly" shall mean per Quarter.

        1.8 "Third Party" shall mean all persons and entities other than Chugai,
MBI, Sonus, and their respective Affiliates.

        1.9 "Optison" shall mean (i) an ultrasound contrast agent constituted as
Optison is presently constituted and described in the application for U.S. Food
and Drug Administration approval of same, together with such modifications
thereto as may be made in connection with such application; (ii) an ultrasound
contrast agent constituted as Optison is presently constituted and described in
the application for U.S. Food and Drug Administration approval of same, but
having a recombinant albumin shell together with such modifications thereto as
may be made in connection with a Japanese MHW application or approval thereof;
provided however that "Optison" shall not include any product comprising
perfluorocarbon gas other than perfluoropropane.

        1.10 "Sonus Products" shall mean any ultrasound contrast agent
comprising perfluoropentane (a/k/a dodecafluoropentane) developed, manufactured
or sold by Sonus or its licensees.

2. LICENSE GRANT

        2.1 As of the date of this Agreement, Sonus grants to Chugai and MBI a
non-exclusive license under the Sonus Patents to develop, make, have made, use,
sell, offer to sell, and import Optison in the Territory. The grant of this
license is expressly conditioned on the covenant not to sue set forth in Section
5.1 below, and shall terminate automatically if that covenant of either Chugai
or MBI ceases to be effective for any reason.

        2.2 Each party retains all rights in its patents and patent applications
not granted to another party in this Agreement.

        2.3 Sonus shall determine in its own sole and absolute discretion which
of the Sonus Patents (or applications therefor) to prosecute or maintain, how
such prosecution shall be conducted, and whether to cease prosecution and/or
maintenance of any of the Sonus Patents (or applications therefor). All expenses
for such prosecution and/or maintenance shall be the responsibility of Sonus.
Sonus shall keep Chugai duly informed of the issuance of Sonus Patents. As soon
as any of the Sonus Patents shall be issued by and duly registered with the
competent patent authority, Chugai may register the licenses granted hereunder
as a non-exclusive license ("Tsujo Jisshiken" in Japanese

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   3

language) with the competent patent authority, provided that such registration
does not disclose any material terms of this Agreement other than the fact of
the license. Sonus shall reasonably assist Chugai, at Chugai's expense, to
complete such registration.

3. LICENSE FEES AND ROYALTIES

        3.1 Within ten (10) business days after the date of this Agreement,
Chugai shall pay to Sonus, in the manner specified in Section 25.3, a
non-refundable license fee of one million US dollars (US $1,000,000). Any
applicable withholding taxes will be borne by Sonus. Chugai shall pay all such
withholding taxes to the relevant tax authority for the account of Sonus in
accordance with applicable law, and shall provide Sonus with a certificate of
such payment in a form reasonably acceptable to Sonus. The license fee payment
called for in this paragraph shall not be an advance against royalties nor shall
it be credited against any other amounts due under this Agreement.

        3.2 On or before June 15, 2001 Chugai shall pay Sonus, in the manner
specified in Section 25.3, an additional amount of one million U.S. dollars with
any applicable withholding taxes borne by Sonus. Chugai shall pay all such
withholding taxes to the relevant tax authority for the account of Sonus in
accordance with applicable law, and shall provide Sonus with a certificate of
such payment in a form reasonably acceptable to Sonus. If on or before the
second anniversary of the date of this Agreement any claim(s) in the Sonus
Japanese Patent Application No. 05-506054 are allowed, or are indicated by the
Japanese Patent Office as being allowable, or are indicated by the Japanese
Patent Office as being allowable if amended and Sonus files such an amendment,
then this payment will be considered a non-refundable license fee. The said
payment called for in this paragraph, if considered as a non-refundable license
fee pursuant to this paragraph, shall not be an advance against royalties nor
shall it be credited against any other amounts due under this Agreement. If on
or before the second anniversary of the date of this Agreement no claim(s) in
the Sonus Japanese Patent Application No. 05-506054 are allowed, or indicated by
the Japanese Patent Office as being allowable, or indicated by the Japanese
Patent Office as being allowable if amended, then Sonus will repay this second
one million payment to Chugai (without interest on terms agreed between the
parties) within one (1) month from said second anniversary.

        3.3 In addition to the payments required under Sections 3.1 and 3.2
above, Chugai and MBI shall each owe to Sonus in each Quarter a royalty of * on
their aggregate respective Net Sales of Optison in all countries within the
Territory where any Sonus Patent is in force at any time during the Quarter;
provided, however, that the definition of Net Sales in Section 1.5 of this
Agreement notwithstanding, Net Sales by Chugai in its capacity as MBI's licensee
shall not be considered Net Sales of MBI. The obligations of Chugai and MBI to
pay such royalty are several, and neither of them shall be responsible for
failure by either of them to pay the same.

        3.4 The royalties provided in Section 3.3 shall be calculated Quarterly
on a country-by-country basis. No later than thirty (30) days after the end of
each Quarter, Chugai shall provide Sonus with a statement of Net Sales of
Optison in each country in the Territory. The royalty payments due Sonus by
Chugai shall then be made within twenty (20) days of the delivery of said
statements. All royalty payments shall be paid in US dollars.

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   4

4. SUBLICENSES, RELEASES, AND PATENT ENFORCEMENT

        4.1 Chugai or MBI, as the case may be, shall give Sonus prompt written
notice of any infringement by any Third Party of any Sonus Patent as soon as
possible after such infringement comes to knowledge of Chugai or MBI. Chugai and
MBI (or their sublicensees, if any) shall have the right to enforce the Sonus
Patents in the Territory against any Third Party, provided that such Third Party
is not licensed directly or indirectly by Sonus and Sonus has elected in writing
not to enforce the Sonus Patents against such Third Party. If Chugai or MBI (or
their sublicensees, if any) make use of the right to enforce set forth in the
preceding sentence; it shall bear all costs and expenses associated with the
enforcement. Sonus shall reasonably cooperate with the enforcement efforts
provided that the reasonable costs and expenses of Sonus's cooperation are
promptly reimbursed by Chugai or MBI (or their sublicensees, if any).

        4.2 If Chugai or MBI (or their sublicensees, if any) makes use of the
right to enforce set forth in Section 4.1, it may grant a sublicense in the
Territory to any or all of the Sonus Patents as part of a settlement of the
dispute. Chugai or MBI (or their sublicensees, if any) also may release the
infringing third party from damages on account of past infringement of the Sonus
Patents. No such sublicense or release shall be effective without Sonus's prior
review of the terms and written consent thereto, not to be unreasonably
withheld. Sonus shall receive one-half of the royalties, payments or other
consideration received on account of such a sublicense or release, payable to
Sonus within twenty (20) days of such receipt. If the consideration for such a
sublicense or release includes a license to Chugai or MBI (or their
sublicensees, if any) of any patents covering ultrasound contrast agents or
their use, Chugai or MBI (or their sublicensees, if any) shall ensure that the
license also extends to Sonus with respect to the manufacture, use, sale, offer
for sale or importation of Sonus Products in the Territory.

        4.3 If enforcement by Chugai or MBI (or their sublicensees, if any)
pursuant to the right to enforce set forth in Section 4.1 results in a judicial
or administrative award in favor of Chugai or MBI (or their sublicensees, if
any) on account of infringement of the Sonus Patents, Sonus shall receive
one-half the amount of such award, after deduction of the reasonable costs
(including reasonable attorneys' fees) of obtaining such award, payable within
twenty (20) days of receipt of the proceeds of the award by Chugai or MBI (or
their sublicensees, if any).

        4.4 Chugai shall have the right to sublicense the Sonus Patents to its
Affiliate in the Territory by giving thirty (30) days prior written notice to
Sonus, provided that such Affiliate agrees in a writing, reasonably acceptable
to Sonus, to be bound by all the terms of this Agreement to the same extent as
Chugai.

5. COVENANTS NOT TO SUE

        5.1 Chugai (and its sublicensees, if any ) and MBI (and its
sublicensees, if any ) shall not sue or otherwise bring any type of claim
against Sonus (or its direct or indirect licensees of Sonus Patents in the
Territory) for infringement of any patent in the Territory on account of the
manufacture, sale, marketing, use, or importation of any Sonus Product that
relies on a Sonus Patent during the term of this Agreement. The covenant of the
preceding sentence shall apply to any patent owned or controlled by Chugai
and/or MBI at any time during the term of this Agreement, and shall bind any
assignee of such patents or successor in interest thereto. In the event of any
assignment or transfer of this Agreement by Chugai or MBI, whether by operation
of law or otherwise, the covenant of this paragraph shall continue to bind both
the assignor and

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   5

assignee.

        5.2 Sonus (and its sublicensees) shall not sue or otherwise bring any
type of claim against Chugai or MBI (or their sublicensees in the Territory) for
infringement of any Sonus Patent in the Territory on account of the development,
manufacture, sale, marketing, use, or importation of Optison during the term of
this Agreement.

        5.3 During the term of this Agreement, Chugai and MBI (and their
sublicensees, if any) shall not oppose, seek the revocation of, submit prior art
or observations respecting prior art, or otherwise challenge any Sonus Patent or
Japanese Patent Application or Sonus' Korean patent application no. 703129/95.
If Chugai or MBI has taken any such action on or before the date of this
Agreement, said party will take such steps as may be necessary to retract or
withdraw such action, at its own cost. During the term of this Agreement, Sonus
shall not oppose, seek the revocation of, submit prior art or observations
respecting prior art, or otherwise challenge any patent or patent application
owned by Chugai or by MBI in the Territory relating to ultrasound contrast to
the extent that the covenant not to sue set forth in Section 5.1 above applies
to such patent or patent application.

        5.4 The obligations of Chugai and MBI under Sections 5.1 and 5.3 are
several, and, except with respect to the condition set forth in the second
sentence of Section 2.1, neither of them shall be responsible for failure by the
other to perform the same. Notwithstanding the foregoing, nothing in this
section shall relieve either Chugai or MBI of liability for inducing or aiding
the other in any breach or non-performance of obligations under this Agreement.

6. PATENT MARKING

        6.1 Insofar as practical and permitted by all applicable laws and
regulations, MBI and Chugai (and any sublicensees) shall place, or shall cause
the manufacturer to place, appropriate patent and/or patent pending markings on
an exposed surface of each unit of Optison made or sold hereunder or on the
packaging thereof. The content, form, size, location and language used in such
markings shall be in accordance with the laws and practices of the country where
such markings are required.

7. ASSIGNMENT

        7.1 This Agreement may not be assigned or transferred by either party
without written consent of the other party, such consent not to be unreasonably
withheld, except that either party may assign this Agreement to any successor by
merger, consolidation, or sale of substantially all of its business unit (or
assets relating to that business unit) to which this Agreement relates without
the consent of the other party. Any attempted delegation or assignment not in
accordance with this section shall be of no force or effect.

        7.2 This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their successors and permitted assigns.

        7.3 Notwithstanding the provisions of Section 7.1 above, either party
may upon written notice assign this Agreement to an Affiliate, provided that no
such assignment shall relieve the assigning party of its duties and
responsibilities under this Agreement.

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   6

8. CONFIDENTIALITY

        Each party agrees that the terms of this Agreement and any information
provided by either party to the other hereunder shall remain confidential
throughout the term of this Agreement and shall not be disclosed to any person
or entity, except to a party's professional advisors without advance written
permission of the other party, provided that, either party in negotiation or
business with a Third Party concerning the sublicensing of patent rights
pursuant to this Agreement may disclose to such Third Party, under a written
confidentiality agreement, such terms of this Agreement as are reasonably
necessary in order to engage in such negotiations or business, and further
provided that either party may make any filings of this Agreement, subject to
confidential treatment, required by law in any country. Each party further
agrees that it will not issue any press release or publicity in regard to this
Agreement without the advance written permission of the other party, which
consent shall not be unreasonably withheld. Advance written permission will not
be required when a party is ordered to disclose information concerning the
Agreement by a competent tribunal, such disclosures are required by law, or
disclosure is to be made to the tribunal in arbitration proceedings under
section 23 below. Each party agrees that to the extent that information subject
to claims of attorney-client privilege, work product, or any similar privilege
or immunity is disclosed to the other pursuant to performance of this Agreement,
such disclosure is intended to further the parties' common legal interests
and/or joint defense and shall remain subject to such privilege or immunity to
the maximum extent permitted by law.

9. TERM

        This Agreement is effective as of its date recited in the first
paragraph above. Unless earlier terminated as provided in section 10 of this
Agreement, it shall continue in effect until the expiration of the last to
expire patent among the Sonus Patents, provided that the obligation of Chugai to
pay royalties under Section 3.4 shall terminate on a country-by-country basis
upon the expiration of all of the Sonus Patents in each country in the
Territory. As used in this Agreement, the "expiration" of a patent includes (i)
irrevocable lapse for failure to pay maintenance fees or the like, (ii) final
revocation of the applicable claims by a national patent office and the
exhaustion or expiration of all appeals of such revocation, and (iii) final
adjudication by a court of competent jurisdiction that the applicable claims of
the patent are invalid or unenforceable and the exhaustion or expiration of all
appeals from said adjudication.

10. DEFAULT AND TERMINATION

        10.1 If any party breaches any of the material terms or conditions of
this Agreement, the party claiming such breach may serve the alleged breaching
party with a notice of breach specifying the acts or omissions creating such
alleged breach. If the alleged breaching party fails to remedy said breach
within 60 days of receipt of said notice, the party claiming breach may
terminate this Agreement only to the extent related to such alleged breaching
party by serving a notice of termination. Except as otherwise provided herein,
termination under this Section 10.1 as to an alleged breaching party shall not
affect the rights of any other non-breaching party with respect to either the
party claiming breach or the alleged breaching party.

        10.2 Any notice of termination pursuant to Section 10.1 above shall be
effective 30 days after receipt of such notice by the non-terminating party,
unless before the expiration of said 30 day period, the non-terminating party
requests or shall have requested arbitration pursuant to Section 23 of this
Agreement, in which event this

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   7

Agreement shall not terminate until after the conclusion of such arbitration,
and then only if and to the extent not inconsistent with any award rendered in
such arbitration.

        10.3 It is the intention and desire of the parties hereto that the
licenses and covenants not to sue granted hereunder shall survive any insolvency
or bankruptcy of any party, and that a trustee of any party, or such party as
debtor-in-possession, or other competent bankruptcy authority shall give full
force and effect to the provisions of this Agreement and the licenses and
covenants not to sue granted hereunder. In the event that, pursuant to the U.S.
Bankruptcy Code or any amendment or successor thereto (the "Code"), a trustee in
bankruptcy of any party, , or such party as debtor-in-possession, may reject or
deny this Agreement, the other parties may retain and use the licenses and
covenants not to sue granted hereunder in accordance with the Code. Failure by
any party to assert its rights or to retain its benefits pursuant to the Code
under an executory contract rejected by a trustee or party as
debtor-in-possession shall not be construed as a termination of this Agreement
by the other parties to this Agreement ("Nonbankrupt Parties") under the Code.
If a trustee or party as debtor-in-possession is permitted to assume this
Agreement and does so and, thereafter, desires to assign this Agreement to a
third party, which assignment satisfies the requirements of the Code, the
trustee or debtor-in-possession, as the case may be, shall notify the
Nonbankrupt Parties of same in writing. Said notice shall set forth the name and
address of the proposed assignee, the proposed consideration for the assignment
and all other relevant details thereof. The giving of such notice shall be
deemed to constitute the grant to each of the Nonbankrupt Parties of an option
to have this Agreement assigned to it or to its designee for such consideration,
or its equivalent in money, and upon such terms as are specified in the notice.
The aforesaid option may be exercised only by written notice by the Nonbankrupt
Parties to the trustee or debtor-in-possession, as the case may be, within 15
days of receipt of the notice of the proposed transaction. If a Nonbankrupt
Party fails to accept the terms within the said exercise period, the party
giving notice may complete the assignment referred to in its notice, but only if
such assignment is to the entity named in said notice and for the consideration
and upon the terms specified therein.

        10.4 Nothing contained herein shall be deemed to preclude or impair any
rights that a Nonbankrupt Party may have as a creditor in any bankruptcy
proceeding.

11. CHOICE OF LAW; CHOICE OF FORUM

        This Agreement shall be construed and interpreted in accordance with the
laws of the State of Washington without reference to its choice of law
principles. As provided in section 23 of this Agreement, any dispute between the
parties related to or arising out of this Agreement, the parties' relationship
created hereby, and/or the negotiations for and entry into this Agreement
including any dispute concerning its conclusion, binding effect, amendment,
coverage, or termination, shall be submitted to and resolved by arbitration. If,
however, any such dispute is not subject to arbitration under section 23 of this
Agreement, the state and federal courts located in King County, Washington
State, shall have non-exclusive jurisdiction of such dispute. The parties
expressly submit to the personal jurisdiction of such courts for any action
described in this section 11, agree that such courts provide a convenient forum
for any such action, and waive any objections or challenges to venue. Each party
agrees to accept service of process in the manner provided in Section 24 below
in connection with any judicial proceedings provided in this paragraph. In any
judicial proceeding brought under this paragraph, the prevailing party shall be
entitled to recover its reasonable attorneys' fees and other expenses.

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   8

12. ENTIRE AGREEMENT; NO ORAL MODIFICATIONS; WAIVER

        12.1 This Agreement contains the entire understanding and agreement
between Chugai, MBI, and Sonus with respect to the subject matter hereof, and
supersedes all prior oral or written understandings and agreements relating
thereto. Neither party shall be bound by any conditions, definitions,
warranties, understandings, or representations concerning the subject matter
hereof except as are (i) provided in this Agreement or (ii) duly set forth on or
after the date of this Agreement in a written instrument subscribed by an
authorized representative of the party to be bound thereby.

        12.2 Each party has relied solely on its own evaluation of the subject
matter in deciding to enter into this Agreement, and has not been induced to
enter into this Agreement by any statements, promises, or representations of the
other party, nor has it relied on any such statements, promises, or
representations.

        12.3 No waiver by either party, whether express or implied, of any
provision of this Agreement, or of any breach or default thereof, shall
constitute a continuing waiver of such provision or of any other provision of
this Agreement. Either party's acceptance of payments by the other under this
Agreement shall not be deemed a waiver of any violation of or default under any
of the provisions of this Agreement.

13. RELATIONSHIP OF THE PARTIES

        Nothing herein contained shall be construed to constitute the parties
hereto as partners or as joint venturers, or any party as agent or employee of
another. No party shall take any action that purports to bind the other.

14. SEVERABILITY

        If any provision or any portion of any provision of this Agreement shall
be held to be void or unenforceable (or a formal indication to that effect is
communicated by any competent authority), the parties shall in good faith
negotiate valid substitute provisions which reflect, as closely as reasonably
practicable, their commercial intentions as set out herein. Subject thereto, the
remaining provisions of this Agreement and the remaining portion of any
provision held void or unenforceable in part shall continue in full force and
effect.

15. CONSTRUCTION

        This Agreement shall be construed without regard to any presumption or
other rule requiring construction against the party causing this Agreement to be
drafted. If any words or phrases in this Agreement shall have been stricken out
or otherwise eliminated, whether or not any other words or phrases have been
added, this Agreement shall be construed as if those words or phrases were never
included in this Agreement, and no implication or inference shall be drawn from
the fact that the words or phrases were so stricken out or otherwise eliminated.

16. HEADINGS

        The captions and headings appearing in this Agreement are inserted for
convenience and reference only and in no way define, limit or describe the scope
or intent of this Agreement or any of the provisions thereof.

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   9

17. BOOKS AND RECORDS; AUDITS

        17.1 Each of Chugai and MBI (and their sublicensees, if any) shall
prepare and maintain, in accordance with generally accepted accounting
principles, complete and accurate books of account and records covering all
sales, receipts, payments, and other transactions relating to this Agreement.
Sonus may appoint an independent certified public accountant, recognized
nationally in the United States and approved by Chugai and MBI (such approval
not to be unreasonably withheld), to inspect and audit such books and records
with respect to the subject matter and terms of this Agreement. Such audits
shall be conducted during regular business hours, nor more than once per year
(nor more than three years after termination of this Agreement) at the expense
of the party requesting the audit (except as provided in Section 17.2 below).
The auditors may inspect and copy all such books of account and records in the
possession or under the control of the party being audited, but shall maintain
such information in confidence provided that the auditor may report its findings
(but not underlying data) to the party requesting the audit. All such books of
account, records, and documents shall be kept available by each party for at
least three years after the end of the quarter to which they relate.

        17.2 If as a result of any audit of books and records it is shown that
payments under this Agreement were less than the amount that should have been
paid, all payments required to be made to eliminate such underpayment shall be
made promptly upon the Sonus's demand therefor. If the discrepancy is in an
amount equal to five percent (5%) or more of the amount actually paid, the
audited party shall also reimburse Sonus for the reasonable costs of such audit.
No claim of underpayment may be made more than three years after the Quarter in
which the payments in question were initially due.

18. TAXES

        Each party shall bear its own taxes resulting from royalties under this
Agreement, that party's granting or receipt of licenses or sublicenses under
this Agreement, or that party's other activities under this Agreement.

19. REPRESENTATIONS AND WARRANTIES OF SONUS

        Sonus hereby represents and warrants that:

        19.1 Sonus has the full right, power, and corporate authority to enter
into this Agreement and to make the promises and grant the licenses set forth
herein.

        19.2 Sonus is the owner of all right, title, and interest in and to the
Sonus Patents and the Sonus Japanese Patent Applications.

        19.3 Sonus is not party to any other agreement the terms of which (i)
conflict with the covenants and obligations of Sonus under this Agreement or the
rights granted by Sonus to Chugai and MBI under this Agreement or (ii) diminish,
limit, or impair the rights granted by Sonus to Chugai and MBI in this Agreement
or the ability of Sonus to perform its covenants and obligations under this
Agreement.

        19.4 The development, manufacture, use, sale or importation of Optison
in the Territory do not constitute infringement of any patent or patent
application owned by Sonus from time to time in the Territory other than the
Sonus Patents.

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   10

20. REPRESENTATIONS AND WARRANTIES OF CHUGAI

        Chugai hereby represents and warrants that:

        20.1 Chugai has the full right, power, and corporate authority to enter
into this Agreement and to make the promises and grant the covenants not to sue
set forth herein.

        20.2 Chugai is not party to any other agreement the terms of which (i)
conflict with the covenants and obligations of Chugai under this Agreement or
the rights granted by Chugai to Sonus under this Agreement or (ii) diminish
limit, or impair the rights granted by Chugai to Sonus in this Agreement or the
ability of Chugai to perform its covenants and obligations under this Agreement.

        20.3 No consent or approval of any Japanese governmental or regulatory
agency is required for this Agreement to be fully effective and enforceable.

21. REPRESENTATIONS AND WARRANTIES OF MBI

        MBI hereby represents and warrants that:

        21.1 MBI has the full right, power, and corporate authority to enter
into this Agreement and to make the promises and grant the covenants not to sue
set forth herein.

        21.2 MBI is not party to any other agreement the terms of which (i)
conflict with the covenants and obligations of MBI under this Agreement or the
rights granted by MBI to Sonus under this Agreement or (ii) diminish limit, or
impair the rights granted by MBI to Sonus in this Agreement or the ability of
MBI to perform its covenants and obligations under this Agreement.

22. RECORDING

        Neither party shall record this Agreement or any abstract hereof in any
patent office or public recording office. Provided, however, that each party
shall be permitted to record abstracts or short forms of its licenses under the
other's licensed patents in the European Patent Office, U.S. Patent and
Trademark Office, and any other national patent office. Each party shall execute
and deliver to the other any documents required for such recording.

23. ARBITRATION

        All disputes between the parties related to or arising out of this
Agreement, the parties' relationship created hereby, and/or the negotiations for
and entry into this Agreement, including any dispute concerning its conclusion,
binding effect, amendment, coverage, or termination, shall be resolved, to the
exclusion of the ordinary courts, by binding arbitration. Arbitration shall
proceed in accordance with the CPR Rules for Non-Administered Arbitration of
International Disputes in effect on the date of this Agreement. The arbitrator,
shall be mutually agreed by the parties to the arbitration, or selected in
accordance with the above rules, provided however that such arbitrator must be a
retired judge of a U.S. federal or state trial or appeal court of record. The
decision of the arbitrator shall be final, and the parties waive all challenge
of the award. The venue of any such proceeding shall be in a location in the
United States to be chosen by the party against whom the proceeding is
initiated. All proceedings shall be conducted in

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   11

the English language. The prevailing party in such arbitration shall be entitled
to recover its reasonable attorneys' fees and expenses.

24. NOTICES

        All reports, approvals, requests, demands and notices required or
permitted by this Agreement to be given to a party (hereafter "Notices") shall
be in writing. Notices shall be hand delivered, sent by certified or registered
mail, return receipt requested, or sent via a reputable private express service
which requires the addressee to acknowledge receipt thereof. Notices may also be
transmitted by fax, provided that a confirmation copy is also sent by one of the
above methods. Except as otherwise provided in this Agreement, notices shall be
effective upon dispatch unless sent by mail, in which case they shall be
effective five days after mailing. Notices shall be sent to the party concerned
as follows (or at such other address as a party may specify by notice to the
other):

                  As to Chugai:

                  Chugai Pharmaceutical Co., Ltd.
                  1-9 Kyobashi 2-Chome
                  Chuo-ku
                  Tokyo 104-8301
                  Japan
                  Fax: 011 81 3 3281 6610
                  Attention:  Dr. Hiroyuki Ohta

                  As to MBI:

                  Molecular Biosystems, Inc.
                  10030 Barnes Canyon Road
                  San Diego, CA 92121-2789
                  USA
                  Fax:  858-625-3906
                  Attention:  Mr. Bobba Venkatadri

                  As to Sonus:

                  Sonus Pharmaceuticals, Inc.
                  22026 20th Avenue S.E.
                  Bothell, Washington 98021
                  USA
                  Fax:  206-489-0626
                  Attention:  President

                  With a copy to:

                  Gary N. Frischling, Esq.
                  Irell & Manella LLP
                  1800 Avenue of the Stars, Suite 900
                  Los Angeles, CA 90067-4276
                  Fax:  310-203-7199

*Confidential portions omitted and filed separately with the Commission.

<PAGE>   12

25. PAYMENTS; PARTIAL PAYMENTS; INTEREST; CURRENCY

        25.1 Each party may accept partial payments from the other of any amount
due under this Agreement without prejudice to any claim for the balance owed.
The acceptance of any payments or checks marked "Payment in Full" or otherwise
shall be without prejudice and such notations shall be of no effect.

        25.2 Any payments not made when due shall bear interest from the due
date until the date of payment at the rate which is the lower of (i) two
percentage points above the one-month London Interbank Offering Rate in effect
on the due date or (ii) the highest rate permitted by applicable law.

        25.3 All payments required by this Agreement shall be made by wire
transfer to the institution and account designated in writing for receipt of
such payments by each party.

        25.4 All payments required by this Agreement shall be made in U.S.
dollars. When conversion of currency is required to render a statement under
Section 3.5 of this Agreement, the conversion shall be made at the rate in
effect on the last business day of the Quarter to which such statement relates.
The conversion rates shall be the Tokyo foreign exchange mid-range rates quoted
by Sumitomo Bank.

        IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed by its duly authorized representative as of the day and year first
above written.

CHUGAI PHARMACEUTICAL                       MOLECULAR BIOSYSTEMS,
CO., LTD.                                   INC.

By: /s/ Motoo Ueno                          By: /s/ Howard D. Dittrich, M.D.
   --------------------------------            ---------------------------------
   Motoo Ueno                                  Howard C. Dittrich, M.D.
   Senior Vice President                       Executive Vice President
   Member of the Board of Directors

SONUS PHARMACEUTICALS, INC.

By: /s/ Michael A. Martino
   --------------------------------
   Michael A. Martino
   President and CEO

*Confidential portions omitted and filed separately with the Commission.

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