Document:

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                                 PROMISSORY NOTE
                           (Revolving Note - Renewal)

$40,000,000                      Eugene, Oregon                October 31, 2000

PARTIES:

         MONACO COACH CORPORATION, a Delaware corporation (Borrower)

         U.S. BANK NATIONAL ASSOCIATION (Bank)

RECITAL:

         On August 25, 2000, Borrower executed and delivered to Bank a
Promissory Note (the Original Note) in the principal amount of Forty Million
United States Dollars ($40,000,000). The entire balance of the Original Note,
principal and interest, is due and payable no later than September 30, 2000. The
parties previously extended that due date to October 31, 2000 pursuant to a
first renewal note (the Prior Renewal Note). The parties desire to further
extend that due date to November 30, 2000, and this note is being executed for
that purpose. This note renews the Original Note and the Prior Renewal Note, and
shall not be deemed payment or satisfaction of the indebtedness evidenced by
those notes.

AGREEMENTS:

         1. PROMISE TO PAY. Upon demand, for value received, Borrower promises
to pay to Bank, or its order, the principal amount of Forty Million United
States Dollars ($40,000,000), or so much as may be outstanding, together with
interest on the unpaid principal balance of each Advance at the rate specified
in this note. Interest shall be calculated from the date of each Advance until
repayment of each Advance.

         2. PAYMENT OF PRINCIPAL. Borrower shall pay the Principal Balance of
this note on demand, or if no demand, on November 30, 2000.

         3. INTEREST RATE AND PAYMENT OF INTEREST.

            3.1.     DEFINITIONS.  As used in this note, the following terms
have the following meanings:

                     a.       "Advance" means any one or more of the loans made
                          by Bank to Borrower pursuant to this note.

                     b.       "Business Day" means any day other than a
Saturday, Sunday or other day that commercial banks in Portland, Oregon,
Minneapolis, Minnesota, or New York,

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New York, are authorized or required by law to close; provided, however, that
when determining a LIBOR Rate or the first day of a LIBOR Interest Period, or
when obtaining LIBOR Borrowing Rate quotes, such term shall also exclude any day
on which dealings in U.S. dollar deposits are not carried on in the London
interbank market.

                     c.       "Dow Jones Page 3750" means the display designated
as such on the Dow Jones Markets Service (formerly known as Telerate) (or such
other page as may replace page 3750 on that service for the purpose of
displaying London interbank offered rates of major banks for United States
Dollar deposits).

                     d.       "Event of Default" means an event described in
Paragraph 6.

                     e.       "LIBOR Borrowing Rate" means the LIBOR Rate plus
one percent (1.0%) per annum. The LIBOR Borrowing Rate for each LIBOR Borrowing
Rate Amount shall be determined pursuant to Paragraph 3.3., as of the beginning
of the applicable LIBOR Interest Period, based on the then current LIBOR Rate,
and, except as provided in Paragraphs 3.3.c., 3.3.d. and 3.4., shall remain
fixed during that LIBOR Interest Period.

                     f.       "LIBOR Borrowing Rate Amount(s)" means those
portions of the Principal Balance that, at any time, are accruing interest at a
LIBOR Borrowing Rate.

                     g.       "LIBOR Interest Period" means, as to any LIBOR
Borrowing Rate Amount, a period of two weeks or one month commencing on the date
the LIBOR Borrowing Rate becomes applicable thereto; provided, however, that (1)
the first day of each LIBOR Interest Period must be a Business Day; (2) no LIBOR
Interest Period shall be selected which would extend beyond November 30, 2000;
(3) any LIBOR Interest Period which would otherwise expire on a day which is not
a Business Day, shall be extended to the next succeeding Business Day, unless
the result of such extension would be to extend such LIBOR Interest Period into
another calendar month, in which event the LIBOR Interest Period shall end on
the immediately preceding Business Day; and (4) any LIBOR Interest Period that
begins on the last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of such
LIBOR Interest Period) shall end on the last Business Day of a calendar month.

                     h.       "LIBOR Rate" means, for any LIBOR Interest Period,
the average offered rate for deposits in United States Dollars (rounded upwards,
if necessary, to the nearest 1/16 of 1%) for delivery of such deposits on the
first day of such LIBOR Interest Period, for the period thereof, which appears
on Dow Jones Page 3750 as of 11:00 a.m., London time (or such other time as of
which such rate appears) on the day that is two Business Days preceding the
first day of such LIBOR Interest Period; or the rate for such deposits
determined by Bank at such time based on such other published service of general
application as shall be selected by Bank for such purpose; provided, that in
lieu of determining the rate in the foregoing manner, Bank may determine the
rate based on the rates offered to Bank for

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deposits in United States Dollars (rounded upwards, if necessary, to the nearest
1/16 of 1%) in the interbank eurodollar market at such time for delivery on the
first day of such LIBOR Interest Period for the period thereof; provided,
further, that because a two week LIBOR Rate is generally not quoted in the
marketplace, if Borrower requests a two week LIBOR Interest Period, Bank may
determine and use the one month LIBOR Rate for that LIBOR Interest Period; and
provided, further, that in any case the LIBOR Rate shall be adjusted to take
into account the maximum reserves required to be maintained for Eurocurrency
liabilities by banks during each such LIBOR Interest Period as specified in
Regulation D of the Board of Governors of the Federal Reserve System or any
successor regulation.

                     i.       "Maturity" means the time when the entire unpaid
Principal Balance of this note becomes due and payable, whether by agreement,
acceleration, demand or otherwise.

                     j.       "Prime Borrowing Rate" means a variable interest
rate equal to the Prime Rate minus three-quarters of one percent (0.75%) per
annum. The Prime Borrowing Rate shall be adjusted without notice effective on
each day the Prime Rate changes.

                     k.       "Prime Rate" means the rate identified and
publicly announced by Bank from time to time as its prime rate and does not
necessarily mean, for example, the lowest rate of interest which Bank collects
for any borrower or group of borrowers.

                     l.       "Prime Borrowing Rate Amount" means that portion
of the Principal Balance that, at any time, is accruing interest at the Prime
Borrowing Rate.

                     m.       "Principal Balance" means, at any time, the unpaid
principal balance of this note.

                     n.       "Related Documents" means, without limitation, all
loan agreements, mortgages, deeds of trust, security agreements, guaranties and
all other instruments, agreements and documents, whether now or hereafter
existing, relating to the indebtedness evidenced by this note.

            3.2.     PRIME BORROWING RATE. Except for portions of the
Principal Balance that are accruing interest at a LIBOR Borrowing Rate, Borrower
shall pay interest on the Principal Balance at the Prime Borrowing Rate. The
Prime Borrowing Rate shall be adjusted without notice effective on each day the
Prime Rate changes.

            3.3.     LIBOR BORROWING RATE.

                     a.       Borrower may obtain LIBOR Borrowing Rate quotes
from Bank between 8:00 a.m. and 10:00 a.m. (Portland, Oregon, time) on any
Business Day. Borrower may request a new Advance as a LIBOR Borrowing Rate
Amount, conversion of a portion of

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the Prime Borrowing Rate Amount to a LIBOR Borrowing Rate Amount, or a new LIBOR
Interest Period for a LIBOR Borrowing Rate Amount whose LIBOR Interest Period is
expiring, only by giving Bank notice in accordance with Paragraph 3.3.b. not
later than 10:00 a.m. on such date.

                     b.       Whenever Borrower desires to use the LIBOR
Borrowing Rate option, Borrower shall give Bank irrevocable notice (either in
writing or orally) between 8:00 a.m. and 10:00 a.m. (Portland, Oregon, time) two
(2) Business Days in advance of the desired effective date of such rate. Any
oral notice shall be given by, and any written notice or confirmation of an oral
notice shall be signed by, any officer of Borrower or any other authorized
person, and shall specify the requested effective date of the rate, the LIBOR
Interest Period and LIBOR Borrowing Rate Amount, and whether Borrower is
requesting a new Advance as a LIBOR Borrowing Rate Amount, conversion of a
portion of the Prime Borrowing Rate Amount to a LIBOR Borrowing Rate Amount, or
a new LIBOR Interest Period for a LIBOR Borrowing Rate Amount whose LIBOR
Interest Period is expiring. Bank may, but need not, require that all oral
notices be confirmed in writing. Notwithstanding any other term of this note,
Borrower may elect a LIBOR Borrowing Rate Amount only in the minimum principal
amount of Five Hundred Thousand Dollars ($500,000) and in larger integral
multiples of One Hundred Thousand Dollars ($100,000). Except as provided in
Paragraphs 3.3.c., 3.3.d. and 3.4., the LIBOR Borrowing Rate for each LIBOR
Borrowing Rate Amount shall remain fixed for the applicable LIBOR Interest
Period.

                     c.       If at any time Bank's LIBOR Rate is
unascertainable or unavailable to Bank or if LIBOR Rate loans become unlawful,
the option to select the LIBOR Borrowing Rate shall terminate immediately. If
any LIBOR Borrowing Rates are then in effect (i) each shall terminate
automatically with respect to the applicable LIBOR Borrowing Rate Amount (a) on
the last day of the applicable LIBOR Interest Period, if Bank may lawfully
continue to maintain such loans, or (b) immediately if Bank may not lawfully
continue to maintain such loans through such day, and (ii) the Prime Borrowing
Rate automatically shall become effective as to such amounts upon termination.

                     d.       If at any time after the date of this note (i) any
revision in or adoption of any applicable law, rule or regulation or in the
interpretation or administration thereof (a) shall subject Bank or its
Eurodollar lending office to any tax, duty or other charge, or change the basis
of taxation of payments to Bank with respect to any loans bearing interest based
on Bank's LIBOR Rate or (b) shall impose or modify any reserve, insurance,
special deposit or similar requirements against assets of, deposits with or for
the account of, or credit extended by Bank or its Eurodollar lending office, or
impose on Bank or its Eurodollar lending office any other condition affecting
any such loans, and (ii) the result of the foregoing is (x) to increase the cost
to Bank of making or maintaining any such loans or (y) to reduce the amount of
any sum receivable under this note by Bank or its Eurodollar lending office,
Borrower shall pay Bank within fifteen (15) days after demand by Bank such
additional amount as will compensate Bank for such increased cost or reduction.
The determination hereunder by Bank

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of such additional amounts shall be conclusive in the absence of manifest error.
If Bank demands compensation under this paragraph, Borrower may, upon three (3)
Business Days' notice to Bank, pay the accrued interest on all LIBOR Borrowing
Rate Amounts as may be affected, together with any additional amounts payable
under Paragraph 3.3.e. Upon Borrower's paying such accrued interest and
additional costs, the Prime Borrowing Rate immediately shall be effective with
respect to the unpaid principal balance of such LIBOR Borrowing Rate Amounts.

                     e.       Borrower will indemnify Bank upon demand against
any loss or expense which Bank may sustain or incur (including, without
limitation, any loss or expense sustained or incurred in obtaining, liquidating
or employing deposits or other funds acquired to effect, fund or maintain any
portion of the loan or any Advance) as a consequence of:

                              (1)     Any failure of Borrower to make any
payment when due;

                              (2)     Any failure of Borrower to borrow,
continue or prepay any LIBOR Borrowing Rate Amount or to convert any portion of
the Prime Borrowing Rate Amount to a LIBOR Borrowing Rate Amount on a date
specified in notice thereof; or

                              (3)     Any payment or prepayment of a LIBOR
Borrowing Rate Amount, termination of the LIBOR Borrowing Rate or conversion of
a LIBOR Borrowing Rate Amount to the Prime Borrowing Rate on a day other than
the last day of the applicable LIBOR Interest Period (including as a result of
acceleration or demand or pursuant to Paragraph 3.3.c. or 3.3.d.).

Determinations by Bank of the amount required to indemnify Bank shall be
conclusive in the absence of manifest error.

                     f.       Notwithstanding any provision of this note to the
contrary, Bank shall be entitled to fund and maintain its funding of all or any
part of the loan evidenced by this note in any manner it elects; it being
understood, however, that with respect to any LIBOR Borrowing Rate Amount, all
determinations hereunder shall be made as if Bank had actually funded and
maintained each LIBOR Borrowing Rate Amount during the LIBOR Interest Period
applicable to it through the purchase of deposits having a term corresponding to
such LIBOR Interest Period and bearing an interest rate equal to the LIBOR Rate
for such LIBOR Interest Period (whether or not Bank shall have granted any
participations in such LIBOR Amounts).

                     g.       Notwithstanding any other term of this note,
Borrower may not select the LIBOR Borrowing Rate if an event has occurred that
constitutes an Event of Default or which, with notice or lapse of time, or both,
would be an Event of Default.

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                     h.       Nothing contained in this note, including without
limitation the determination of any LIBOR Interest Period or Bank's quotation of
any LIBOR Borrowing Rate, shall be construed to prejudice Bank's right, if any,
to decline to make any requested Advance or to require payment on demand.

            3.4.     DEFAULT INTEREST RATE. Notwithstanding anything in this
note to the contrary, upon the occurrence of an Event of Default, the Prime
Borrowing Rate Amount shall thereafter accrue interest at a Prime Borrowing Rate
equal to the Prime Rate plus five percent (5%), and each outstanding LIBOR
Borrowing Rate Amount shall accrue interest at a LIBOR Borrowing Rate equal to
the LIBOR Rate previously determined by Bank for that LIBOR Borrowing Rate
Amount plus six percent (6%).

            3.5.     PAYMENT OF INTEREST. Except for interest on LIBOR
Borrowing Rate Amounts, Borrower shall pay accrued interest on November 1, 2000,
and at Maturity. With respect to all LIBOR Borrowing Rate Amounts, accrued
interest shall be paid on the last day of the applicable LIBOR Interest Period,
and at Maturity.

            3.6.     COMPUTATION OF INTEREST. All interest will be computed at
the applicable rate based on a three hundred sixty (360) day year and applied to
the actual number of days elapsed.

            3.7.     USURY. Notwithstanding anything in this note to the
contrary, at no time shall the Prime Borrowing Rate or any LIBOR Borrowing Rate
exceed the maximum rate permitted by applicable law.

         4. LINE OF CREDIT. This note evidences a revolving line of credit.
Advances under this note may be requested orally by Borrower, any officer of
Borrower or any other authorized person. Bank may, but need not, require that
all oral requests be confirmed in writing. All communications, instructions or
directions by telephone or otherwise to Bank are to be directed to the Eugene
office of Bank's Commercial Banking Division. Borrower agrees to be liable for
all sums either (a) advanced in accordance with the instructions of an
authorized person or (b) credited to any of Borrower's accounts with Bank,
regardless of the fact that persons other than those authorized to borrow have
authority to draw against the accounts. The Principal Balance may be evidenced
by endorsements on this note or by Bank's internal records, including daily
computer printouts. Borrower agrees that Bank is under no obligation and has not
committed to make any Advances hereunder. Each Advance hereunder shall be made
at the sole option of Bank.

         5. LATE CHARGE. If a payment is nineteen (19) or more days past due,
Borrower will pay a late charge of five percent (5%) of the delinquent payment,
but not more than the maximum amount authorized by law.

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         6. DEFAULT. Each of the following shall constitute an Event of Default
under this note:

            6.1.     Borrower fails to make any payment within five (5) days
after it is due.

            6.2.     Any default under any Related Document or under any
other agreement between Bank and Borrower.

         7. FEE. Contemporaneously with the execution of this note, Borrower
shall pay to Bank a loan fee in the amount of Four Thousand One Hundred
Sixty-Seven Dollars ($4,167).

         8. NOTICES. Any notices required or permitted to be given under the
terms of this note shall be in writing and may be given by personal delivery;
first-class mail; certified mail, return receipt requested; or nationally
recognized overnight courier; directed to the parties at the following
addresses, or such other address as any party may designate in writing prior to
the time of the giving of such notice, or in any other manner authorized by law:

               Borrower:  91320 Industrial Way
                          Coburg, Oregon 97408
                          Attn: John Nepute, Executive Vice President and CFO

               Bank:      Oregon Commercial Banking
                          800 Willamette Street, Third Floor
                          P.O. Box 10553
                          Eugene, Oregon   97440
                          Attn: Ken Carson

Any notice given shall be effective when actually received; or if given by
certified mail, then forty-eight (48) hours after deposit of such notice in the
United States mail with postage prepaid; or if given by overnight courier, then
twenty-four (24) hours after the deposit of such notice with the overnight
courier with delivery charges prepaid.

         9. ARBITRATION.

            9.1.     Either Bank or Borrower may require that all disputes,
claims, counterclaims and defenses, including those based on or arising from any
alleged tort ("Claims") relating in any way to this note or any transaction of
which this note is a part (the "Loan"), be settled by binding arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association and Title 9 of the U.S. Code. All Claims will be subject to the
statutes of limitation applicable if they were litigated. This provision is void
if the effect of the arbitration procedure (as opposed to any Claims of
Borrower) would be to materially impair Bank's ability to realize on any
collateral securing the Loan.

Page 7-PROMISSORY NOTE
<PAGE>

            9.2.     If arbitration occurs and each party's Claim is less than
$100,000, one neutral arbitrator will decide all issues; if any party's Claim is
$100,000 or more, three neutral arbitrators will decide all issues. All
arbitrators will be active Oregon State Bar members in good standing. All
arbitration hearings will be held in Eugene, Oregon. In addition to all other
powers, the arbitrator(s) shall have the exclusive right to determine all issues
of arbitrability. Judgment on any arbitration award may be entered in any court
with jurisdiction.

            9.3.     If either party institutes any judicial proceeding
relating to the Loan, such action shall not be a waiver of the right to submit
any Claim to arbitration. In addition, each has the right before, during and
after any arbitration to exercise any number of the following remedies, in any
order or concurrently: (i) setoff; (ii) self-help repossession; (iii) judicial
or non-judicial foreclosure against real or personal property collateral; and
(iv) provisional remedies, including injunction, appointment of receiver,
attachment, claim and delivery and replevin.

         10. COLLECTION COSTS AND ATTORNEY FEES. Borrower agrees to pay upon
demand all of Bank's reasonable costs and expenses, including attorneys' fees
and Bank's legal expenses, incurred in connection with the enforcement of this
note. Costs and expenses include Bank's attorneys' fees and legal expenses
whether or not there is a lawsuit, including attorneys' fees and legal expenses
for bankruptcy proceedings (and including efforts to modify or vacate any
automatic stay or injunction), appeals and any anticipated post-judgment
collection services. Borrower also shall pay all court costs and such additional
fees as may be directed by the court.

         11. REQUESTS FOR ADVANCES AND RATES. Borrower agrees that Lender shall
have no obligation to verify the identity of any person making any request
pursuant to this note, and Borrower assumes all risks of the validity and
authorization of such requests. Borrower promises to pay Bank, in accordance
with the provisions of this note, the Principal Balance together with interest
thereon and other sums due hereunder, although any requests may have been
submitted by a person or persons not authorized to do so.

         12. WAIVERS. Each maker, co-maker, endorser or guarantor of this note
waives diligence, demand, presentment for payment, notice of non-payment,
protest and notice of protest and consents to all extensions of time and
renewals hereof, whether or not the extensions or renewals are longer than the
original period of the note, to any exchange or release of any security for the
indebtedness evidenced by this note, and to any release of any party liable on
this note.

         13. GENERAL PROVISIONS. Time is of the essence of this note. All
obligations of any maker, co-maker, endorser or guarantor of this note are joint
and several. This note shall be governed by and construed and enforced in
accordance with the laws of the State of

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<PAGE>

Oregon without regard to conflicts of law principles. Bank's rights and remedies
under this note are cumulative.

         14. EXECUTION BY FACSIMILE; COUNTERPARTS. This note may be executed in
several counterparts, each of which will be deemed to be an original and all of
which together constitute one and the same instrument. Delivery of an executed
copy of this note by telecopy, telex or other means of electronic communication
producing a printed copy will be deemed to be an execution and delivery of this
note on the date of such communication by the parties so delivering such a copy.
The party so delivering such a copy via electronic communication shall deliver
an executed original of this note to the other party within one week of the date
of delivery of the copy sent via electronic communication.

         15. WARRANTY OF AUTHORITY. The person executing this note on behalf of
Borrower personally represent and warrant that he is duly authorized to do so,
and that this note is enforceable against Borrower in accordance with its terms.

         16. UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY
BANK AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH
ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE
BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY
BANK TO BE ENFORCEABLE.

                                   MONACO COACH CORPORATION

                                   By  /s/:  Kay Toolson
                                       ------------------------
                                       Name: Kay Toolson
                                       Title: President and CEO

Page 9-PROMISSORY NOTE<PAGE>

                                                                    Exhibit 10.1

                               SUBLEASE AGREEMENT

         This SUBLEASE AGREEMENT ("Sublease") is made and entered into as of the
25th day of July, 2000 by and between TREGA BIOSCIENCES, INC., a Delaware
corporation ("Sublandlord") and NEUROVIR THERAPEUTICS, INC., a Delaware
corporation ("Subtenant").

         WHEREAS, AID ASSOCIATION FOR LUTHERANS, a Wisconsin corporation, as
landlord ("Landlord"), and SUBLANDLORD, as tenant ("Tenant"), entered into a
lease dated September 24, 1997 ("Master Lease") whereby Landlord leased to
Tenant those certain premises ("Master Premises") consisting of the entire
building (and containing 71,510 rentable square feet) located at 9880 Campus
Point Drive, San Diego, California 92121 (the "Building"), as more particularly
described in the Master Lease, upon the terms and conditions contained therein.
All capitalized terms used herein shall have the same meaning ascribed to them
in the Master Lease unless otherwise defined herein. A true, correct and
complete copy of the Master Lease is attached hereto as Exhibit "A" and made a
part hereof.

         WHEREAS, Sublandlord and Subtenant are desirous of entering into a
sublease of that portion of the Master Premises shown cross-hatched in black on
the demising plan annexed hereto as Exhibit "B" and made a part hereof
("Sublease Premises") on the terms and conditions hereafter set forth.

         NOW, THEREFORE, in consideration of the mutual covenants herein
contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto mutually
covenant and agree as follows:

         1.       DEMISE.

         Sublandlord hereby subleases and demises to Subtenant and Subtenant
hereby hires and subleases from Sublandlord the Sublease Premises agreed to
contain 16,723 rentable square feet upon and subject to the terms, covenants and
conditions hereinafter set forth.

         2.       LEASE TERM.

                  (a)      LEASE TERM. The term of this Sublease ("Term") shall
be for five (5) years commencing on the earlier of (i) July 25, 2000, or (ii)
the date upon which Subtenant, or any person occupying any of the Sublease
Premises with Subtenant's permission, commences business operations from the
Sublease Premises ("Sublease Commencement Date") and ending, unless sooner
terminated as provided herein, on the last day of the month in which the fifth
(5th) anniversary of the Sublease Commencement Date occurs ("Sublease Expiration
Date"); provided, however, in no event shall the Sublease Commencement Date
occur prior to the receipt of Landlord's consent in accordance with Section 16
below.

                  (b)      OPTION TO EXTEND.

                           (i)      OPTION. Tenant shall have one (1) option to
         extend the Sublease Term (the "Renewal Option"), on all the provisions
         contained in this Sublease except as

                                       1
<PAGE>
                                                                    Exhibit 10.1

         to the Base Rental, subject to the terms herein. The Renewal Option
         shall be for an additional thirty (30) month period ("Option Term")
         after the expiration of the initial Sublease Term.

                  If Subtenant elects to exercise the Renewal Option, such
         Renewal Option shall be exercised by Subtenant giving written notice of
         its irrevocable exercise of the Renewal Option (the "Option Notice") to
         Sublandlord at least nine (9) months, but not more than twelve (12)
         months, before the expiration of the initial Sublease Term. If such
         Option Notice is not sent during such three (3) month period, such
         Renewal Option shall be null and void and in no event shall Subtenant
         have any right to extend the initial Sublease Term or renew the
         Sublease beyond the initial Sublease Term as provided herein. Subtenant
         agrees that time is of the essence of this provision.

                           (ii)     OPTION PERSONAL. The Renewal Option is
         personal to Subtenant and may not be exercised, voluntarily or
         involuntarily, by any person or entity other than Subtenant or an
         affiliate of Subtenant ("Affiliate"). For purposes hereof, an Affiliate
         shall include an entity which controls, is controlled by or is in
         common control with Subtenant, or an entity with which Subtenant is
         merged or to which Subtenant sells substantially all of its assets.
         Under no circumstances whatsoever shall the assignee under a complete
         or partial assignment of the Sublease (other than an Affiliate), or a
         sub-subtenant under a sub-sublease of the Sublease Premises, have any
         right to exercise the Renewal Option granted herein. The Renewal Option
         is not assignable, voluntarily or involuntarily, separate and apart
         from the Sublease. If the Sublease or Subtenant's right to possession
         of the Sublease Premises shall terminate in any manner, or if Subtenant
         shall have assigned the sublease or sub-sublet more than twenty percent
         (20%) of the Sublease Premises on or prior to the expiration of the
         initial Sublease Term to other than an Affiliate, then immediately upon
         such termination, assignment or sub-sublease, the Renewal Option herein
         granted shall simultaneously terminate and become null and void and
         neither Subtenant, nor any assignee or sub-sublessee, shall have the
         right to extend the Sublease Term beyond the initial Sublease Term
         pursuant to the terms of the Renewal Option.

                           (iii)    EFFECT OF DEFAULT ON RENEWAL OPTION. At
         Sublandlord's election, Subtenant shall have no right to exercise the
         Renewal Option and extend the Sublease Term beyond the initial Sublease
         Term, as appropriate, pursuant to the terms herein if, at the time
         Subtenant delivers Subtenant's Option Notice or any time prior to the
         expiration of the initial Sublease Term, a default has occurred and is
         continuing after applicable notice and grace period under any of the
         provisions of the Sublease.

                           (iv)     BASE RENTAL DURING THE OPTION TERM. All Rent
         payable during the Option Term shall be payable in the same manner and
         under the same terms and conditions as Rent is paid during the initial
         Sublease Term.

                  Subtenant shall pay to Sublandlord, as Base Rental for the
         Sublease Premises during the Option Term, the Fair Market Rental Rate
         (as hereinafter defined). "Fair Market Rental Rate" shall mean the rate
         being charged to new subtenants in the Building as of the expiration of
         the initial Sublease Term (or if necessary, because no such new

                                       2
<PAGE>
                                                                    Exhibit 10.1

         subtenants exist, in other comparable buildings in the San Diego
         submarket area ("Comparable Buildings")), for space of equivalent
         quality, size and location in the Building or Comparable Buildings, as
         appropriate (or adjusting the rental rate as appropriate for
         differences therein), but disregarding any so-called "concessions" then
         being offered to prospective new subtenants in the Building or
         Comparable Buildings.

                  Sublandlord shall determine the Fair Market Rental Rate by
         using its good faith judgment. Sublandlord shall use its best efforts
         to provide written notice of such amount within thirty (30) days after
         Subtenant sends the Option Notice to Sublandlord exercising the Renewal
         Option. Subtenant shall have fifteen (15) business days (the
         "Subtenant's Review Period") after receipt of Sublandlord's notice of
         the Fair Market Rental Rate within which to accept such rental or to
         reasonably object thereto in writing. In the event Subtenant objects,
         Sublandlord and Subtenant shall attempt to agree upon such Fair Market
         Rental Rate, using their best good faith efforts. If Sublandlord and
         Subtenant fail to reach agreement within ten (10) business days
         following Subtenant's Review Period (the "Outside Agreement Date"),
         then each party shall place in a separate sealed envelope their final
         proposal as to Fair Market Rental Rate and such determination shall be
         submitted to arbitration in accordance with subsections (A) through (E)
         below. Failure of Subtenant to so elect in writing within Subtenant's
         Review Period shall conclusively be deemed its approval of the Fair
         Market Rental Rate determined by Sublandlord. In the event that
         Sublandlord fails to timely generate the initial written notice of
         Sublandlord's opinion of the Fair Market Rental Rate which triggers the
         negotiation period of this provision, then Subtenant may commence such
         negotiations by providing the initial notice, in which event
         Sublandlord shall have fifteen (15) days ("Sublandlord's Review
         Period") after receipt of Subtenant's notice of the proposed Fair
         Market Rental Rate within which to accept such rental. In the event
         Sublandlord does not affirmatively in writing consent to Subtenant's
         proposed Fair Market Rental Rate, such proposed rental shall be deemed
         rejected and Sublandlord and Subtenant shall attempt in good faith to
         agree upon such Fair Market Rental Rate, using their best good faith
         efforts. If Sublandlord and Subtenant fail to reach agreement within
         fifteen (15) days following Sublandlord's Review Period (which shall
         be, in such event, the "Outside Agreement Date" in lieu of the above
         definition of such date), then each party shall place in a separate
         sealed envelope their final proposal as to Fair Market Rental Rate and
         such determination shall be submitted to arbitration in accordance with
         subsections (A) through (E) below.

                           (A)      Sublandlord and Subtenant shall meet with
                  each other within five (5) business days of the Outside
                  Agreement Date and exchange the sealed envelopes and then open
                  such envelopes in each other's presence. If Sublandlord and
                  Subtenant do not mutually agree upon the Fair Market Rental
                  Rate within one (1) business day of the exchange and opening
                  of envelopes, then, within ten (10) business days of the
                  exchange and opening of envelopes Sublandlord and Subtenant
                  shall agree upon and jointly appoint a single arbitrator who
                  shall by profession be a real estate broker who shall have
                  been active over the five (5) year period ending on the date
                  of such appointment in the leasing of comparable commercial
                  properties in the vicinity of the Building. Neither
                  Sublandlord nor Subtenant shall consult with such broker as to
                  his or her opinion as to Fair Market

                                       3
<PAGE>
                                                                    Exhibit 10.1

                  Rental Rate prior to the appointment. The determination of the
                  arbitrator shall be limited solely to the issue of whether
                  Sublandlord's or Subtenant's submitted Fair Market Rental Rate
                  for the Sublease Premises is the closer to the actual Fair
                  Market Rental Rate for the Sublease Premises as determined by
                  the arbitrator, taking into account the requirements of this
                  Section regarding same. Such arbitrator may hold such hearings
                  and require such briefs as the arbitrator, in his or her sole
                  discretion, determines is necessary.

                           (B)      The arbitrator shall, within thirty (30)
                  days of his or her appointment, reach a decision as to whether
                  the parties shall use Sublandlord's or Subtenant's submitted
                  Fair Market Rental Rate, and shall notify Sublandlord and
                  Subtenant thereof.

                           (C)      The decision of the arbitrator shall be
                  binding upon Sublandlord and Subtenant.

                           (D)      If Sublandlord and Subtenant fail to agree
                  upon and appoint an arbitrator, then the appointment of the
                  arbitrator shall be made by the Presiding Judge of the San
                  Diego Superior Court, or, if he or she refuses to act, by any
                  judge having jurisdiction over the parties.

                           (E)      The cost of arbitration shall be paid by
                  Sublandlord and Subtenant equally.

                           (v)      DOCUMENTATION. Sublandlord and Subtenant
         shall execute and deliver appropriate documentation to evidence any
         renewal of the Sublease pursuant to the Renewal Option and the terms
         and conditions of the Sublease during the Option Term.

         3.       USE.

         The Sublease Premises shall be used and occupied by Subtenant for the
uses permitted under and in compliance with Section 10 of the Master Lease and
for no other purpose.

         4.       SUBRENTAL.

                  (a)      BASE RENTAL. Beginning with the Sublease Commencement
Date and thereafter during the Term of this Sublease and ending on the Sublease
Expiration Date, Subtenant shall pay to Sublandlord the following monthly
installments of base rent ("Base Rental"):

<TABLE>

                  <S>               <C>
                  Year 1            $31,940.93 per month/$383,291.16 per annum (calculated at
                                    the rate of $1.91 per rentable square foot per month)

                  Year 2            $44,148.72 per month/$529,784.64 per annum (calculated at
                                    the rate of $2.64 per rentable square foot per month)

</TABLE>

                                       4
<PAGE>
                                                                    Exhibit 10.1

<TABLE>

                  <S>               <C>
                  Year 3            $45,653.79 per month/$547,845.48 per annum (calculated at
                                    the rate of $2.73 per rentable square foot per month)

                  Year 4            $47,326.09 per month/$567,913.08 per annum (calculated at
                                    the rate of $2.83 per rentable square foot per month)

                  Year 5            $48,831.16 per month/$585,973.92 per annum (calculated at
                                    the rate of $2.92 per rentable square foot per month)

</TABLE>

         The first monthly installment of Base Rental shall be paid by Subtenant
upon the execution of this Sublease. Base Rental and additional rent (including
without limitation, late fees) shall hereinafter be collectively referred to as
"Rent."

                  (b)      PRORATIONS. If the Sublease Commencement Date is not
the first (1st) day of a month, or if the Sublease Expiration Date is not the
last day of a month, a prorated installment of monthly Base Rental based on a
thirty (30) day month shall be paid for the fractional month during which the
Term commenced or terminated.

                  (c)      ADDITIONAL RENT. Beginning with the Sublease
Commencement Date and continuing to the Sublease Expiration Date, Subtenant
shall pay to Sublandlord as additional rent for this subletting all special or
after-hours cleaning, heating, ventilating, air-conditioning, elevator and other
Building charges incurred at the request of Subtenant.

                  (d)      OPERATING EXPENSES. Beginning with the Sublease
Commencement Date and thereafter during the Term of this Sublease, Subtenant
shall pay to Sublandlord as additional rent for this subletting twenty-three and
39/100ths percent (23.39%) ("Subtenant's Share") of the amount that Sublandlord,
as Tenant, has to pay Landlord, as Tenant's Pro Rata Share of Building Operating
Expenses and Tenant's Pro Rata Share of Project Operating Expenses pursuant to
Sections 5.2 and 7 of the Master Lease (including, without limitation, any and
all costs incurred by Landlord with respect to the internal facility support and
maintenance); provided, however, in no event shall Subtenant's Share of Building
Operating Expenses and Project Operating Expenses increase by more than 3.5% per
year on a compounded and cumulative basis per annum. Subtenant's Share is a
percentage which reflects the ratio of the rentable square feet in the Sublease
Premises to the rentable square feet in the Master Premises. Current estimate of
Building Operating Expenses and Project Operating Expenses for the first twelve
(12) months of the Sublease Term is $.21 per rentable square foot per month.

                  (e)      PAYMENT OF RENT. Payment of Rent Except as otherwise
specifically provided in this Sublease, Rent shall be payable in lawful money
without demand, and without offset, counterclaim, or setoff in monthly
installments, in advance, on the first day of each and every month during the
Term of this Sublease. All of said Rent is to be paid to Sublandlord at its
office at the address set forth in Section 13 herein, or at such other place or
to such agent and at such place as Sublandlord may designate by notice to
Subtenant. Any additional rent payable on account of items which are not payable
monthly by Sublandlord to Landlord under the Master

                                       5
<PAGE>
                                                                    Exhibit 10.1

Lease is to be paid to Sublandlord as and when such items are payable by
Sublandlord to Landlord under the Master Lease unless a different time for
payment is elsewhere stated herein. Sublandlord shall provide Subtenant with
copies of any statements or invoices received by Sublandlord from Landlord
pursuant to the terms of the Master Lease with respect to which Subtenant shall
be responsible for payment in whole or in part, as herein provided.

         5.       SECURITY DEPOSIT.

         Concurrently with the execution of this Sublease, Subtenant shall
deposit with Sublandlord the sum of Ninety-Nine Thousand Eight Hundred
Thirty-Six and 31/100 Dollars ($99,836.31) ("Deposit"), which shall be held by
Sublandlord as security for the full and faithful performance by Subtenant of
its covenants and obligations under this Sublease. The Deposit is not an advance
Rent deposit, an advance payment of any other kind, or a measure of
Sublandlord's damage in case of Subtenant's default. If Subtenant defaults in
the full and timely performance of any or all of Subtenant's covenants and
obligations set forth in this Sublease, then Sublandlord may, from time to time,
without waiving any other remedy available to Sublandlord, use the Deposit, or
any portion of it, to the extent necessary to cure or remedy the default or to
compensate Sublandlord for all or a part of the damages sustained by Sublandlord
resulting from Subtenant's default. Subtenant shall immediately pay to
Sublandlord within five (5) days following receipt of demand, the amount so
applied in order to restore the Deposit to its original amount, and Subtenant's
failure to immediately do so shall constitute a default under this Sublease. If
Subtenant is not in default with respect to the covenants and obligations set
forth in this Sublease at the expiration or earlier termination of the Sublease,
Sublandlord shall return the Deposit to Subtenant promptly after the expiration
or earlier termination of this Sublease. Sublandlord's obligations with respect
to the Deposit are those of a debtor and not a trustee. Sublandlord shall not be
required to maintain the Deposit separate and apart from Sublandlord's general
or other funds and Sublandlord may commingle the Deposit with any of
Sublandlord's general or other funds. Subtenant shall not at any time be
entitled to interest on the Deposit.

         6.       SIGNAGE. Subtenant is granted the right, at or about the
inception of the Term of this Sublease, to install a monument signage, lobby
signage and one directional sign identifying Subtenant, subject to Landlord's
and Sublandlord's prior written approval, which approval shall not be
unreasonably withheld, delayed or conditioned. Except for the foregoing,
Subtenant shall have no right to maintain Subtenant identification signs in any
other location in, on, or about the Sublease Premises. The size, design, color
and other physical aspects of all such permitted signs shall also be subject to
Landlord's and Sublandlord's prior written approval, which approval shall not be
unreasonably withheld, delayed or conditioned and shall also be subject to any
covenants, conditions or restrictions encumbering the Sublease Premises and any
applicable municipal or other governmental permits and approvals. The cost of
all such signs, including the installation, maintenance and removal thereof,
shall be at Subtenant's sole cost and expense. If Subtenant fails to maintain
its signs within a reasonable period of time after receipt of notice from
Sublandlord, or if Subtenant fails to remove same upon the expiration or earlier
termination of this Sublease and repair any damage caused by such removal,
Sublandlord may do so at Subtenant's expense and Subtenant shall reimburse
Sublandlord for all actual costs incurred by Sublandlord to effect such removal.

                                       6
<PAGE>
                                                                    Exhibit 10.1

         7.       PARKING.

         Subtenant shall have the right, during the Term of this Sublease, to
non-exclusive access to and use of the parking facilities within the Project as
set forth in Section 14.2 of the Master Lease. All such parking privileges shall
be subject to the terms and conditions set forth in the Master Lease.

         8.       INCORPORATION OF TERMS OF MASTER LEASE.

                  (a)      This Sublease is subject and subordinate to the
Master Lease. Subject to the modifications set forth in this Sublease, the terms
of the Master Lease are incorporated herein by reference, and shall, as between
Sublandlord and Subtenant (as if they were Landlord and Tenant, respectively,
under the Master Lease) constitute the terms of this Sublease except to the
extent that they are inapplicable to, inconsistent with, or modified by, the
terms of this Sublease. In the event of any inconsistencies between the terms
and provisions of the Master Lease and the terms and provisions of this
Sublease, the terms and provisions of this Sublease shall govern. Subtenant
acknowledges that it has reviewed the Master Lease and is familiar with the
terms and conditions thereof.

                  (b)      For the purposes of incorporation herein, the terms
of the Master Lease are subject to the following additional modifications:

                           (i)      In all provisions of the Master Lease (under
         the terms thereof and without regard to modifications thereof for
         purposes of incorporation into this Sublease) requiring the approval or
         consent of Landlord, Subtenant shall be required to obtain the approval
         or consent of both Sublandlord and Landlord; provided, however, that in
         any instance in which the approval or consent of Landlord may not be
         unreasonably withheld, conditioned or delayed, the same limitation
         shall apply to the approval or consent of Sublandlord.

                           (ii)     In all provisions of the Master Lease
         requiring Tenant to submit, exhibit to, supply or provide Landlord with
         evidence, certificates, or any other matter or thing, Subtenant shall
         be required to submit, exhibit to, supply or provide, as the case may
         be, the same to both Landlord and Sublandlord. In any such instance,
         Sublandlord shall determine if such evidence, certificate or other
         matter or thing shall be satisfactory.

                           (iii)    Sublandlord shall have no obligation to
         restore or rebuild any portion of the Sublease Premises after any
         destruction or taking by eminent domain.

                  (c)      The following provisions of the Master Lease are
specifically excluded: Sections 2, 4, 5.1, 6, 8, 9.1, 9.5, 11, 24, 38, 40,
Exhibit B and Exhibit C.

                  (d)      Sublandlord shall not modify or amend the Master
Lease in any way which would materially adversely affect Subtenant's use of,
access to or quiet enjoyment of the Sublease Premises, or which would materially
increase Subtenant's obligations, or materially diminish Subtenant's rights,
under the Sublease without Subtenant's consent, which consent Subtenant may
withhold in its sole and absolute discretion.

                                       7
<PAGE>
                                                                    Exhibit 10.1

         9.       SUBTENANT'S OBLIGATIONS. Subtenant covenants and agrees that
all obligations of Sublandlord under the Master Lease shall be done or performed
by Subtenant with respect to the Sublease Premises, except as otherwise provided
by this Sublease, and Subtenant's obligations shall run to Sublandlord and
Landlord as Sublandlord may reasonably determine to be appropriate or be
required by the respective interests of Sublandlord and Landlord. Subtenant
agrees to indemnify Sublandlord, and hold it harmless, from and against any and
all claims, damages, losses, expenses and liabilities (including reasonable
attorneys' fees) incurred as a result of the non-performance, non-observance or
non-payment of any of Sublandlord's obligations under the Master Lease which, as
a result of this Sublease, became an obligation of Subtenant. If Subtenant makes
any payment to Sublandlord pursuant to this indemnity, Subtenant shall be
subrogated to the rights of Sublandlord concerning said payment. Subtenant shall
not do, nor permit to be done, any act or thing which is, or with notice or the
passage of time would be, a default under this Sublease or the Master Lease.

         10.      SUBLANDLORD'S OBLIGATIONS. Sublandlord agrees that Subtenant
shall be entitled to receive all services and repairs to be provided by Landlord
to Sublandlord under the Master Lease. Subtenant shall not, under any
circumstances, seek nor require Sublandlord to perform any of such services, nor
shall Subtenant make any claim upon Sublandlord for any damages which may arise
by reason of Landlord's default under the Master Lease, unless Sublandlord shall
have failed to comply with the provisions hereof. Any condition resulting from a
default by Landlord shall not constitute as between Sublandlord and Subtenant an
eviction, actual or constructive, of Subtenant and no such default shall excuse
Subtenant from the performance or observance of any of its obligations to be
performed or observed under this Sublease, or entitle Subtenant to receive any
reduction in or abatement of the Rent provided for in this Sublease, unless
Sublandlord's performance or observance is so excused or Sublandlord is entitled
to such a reduction or abatement. In furtherance of the foregoing, Subtenant
does hereby waive any cause of action and any right to bring any action against
Sublandlord by reason of any act or omission of Landlord under the Master Lease.
Sublandlord covenants and agrees with Subtenant that Sublandlord will pay all
fixed rent and additional rent payable by Sublandlord pursuant to the Master
Lease to the extent that failure to perform the same would adversely affect
Subtenant's use or occupancy of the Sublease Premises. Sublandlord further
covenants and agrees with Subtenant that Sublandlord shall perform its other
obligations under the Master Lease (except with respect to the Sublease Premise
which shall become the obligation of Subtenant pursuant to the terms and
conditions of this Sublease), remedy any default by Sublandlord under the Master
Lease and enforce its rights under the Master Lease.

         In the event Sublandlord is prevented from performing any of its
obligations under this Sublease by a breach by Landlord of a term of the Master
Lease, then Sublandlord's sole obligation in regard to its obligation under this
Sublease shall be to use reasonable efforts in diligently pursuing the
correction or cure by Landlord of Landlord's breach.

         11.      DEFAULT BY SUBTENANT. In the event Subtenant shall be in
default of any covenant of, or shall fail to honor any obligation under this
Sublease, in each case after applicable notice and grace period as set forth in
the Master Lease, Sublandlord shall have available to it against Subtenant all
of the remedies available (a) to Landlord under the Master Lease in the event of
a similar default on the part of Sublandlord thereunder or (b) at law.

                                       8
<PAGE>
                                                                    Exhibit 10.1

         12.      QUIET ENJOYMENT. So long as Subtenant pays all of the Rent due
hereunder and performs all of Subtenant's other obligations hereunder,
Sublandlord shall not do anything or permit anything to be done to affect
Subtenant's right to peaceably and quietly have, hold and enjoy the Sublease
Premises.

         13.      NOTICES. Anything contained in any provision of this Sublease
to the contrary notwithstanding, Subtenant agrees, with respect to the Sublease
Premises, to remedy any default in this Sublease or the Master Lease which is
Subtenant's obligation to cure, within the period allowed to Sublandlord under
the Master Lease, even if such time period is shorter than the period otherwise
allowed therein due to the fact that notice of default from Sublandlord to
Subtenant is given after the corresponding notice of default from Landlord to
Sublandlord. Sublandlord agrees to forward to Subtenant, not later than one (1)
day after receipt thereof by Sublandlord, a copy of each notice of default
received by Sublandlord in its capacity as Tenant under the Master Lease.
Subtenant agrees to forward to Sublandlord, promptly upon receipt thereof,
copies of any notices received by Subtenant from Landlord or from any
governmental authorities. All notices, demands and requests shall be in writing
and shall be sent either by hand delivery or by a nationally recognized
overnight courier service (e.g., Federal Express), in either case return receipt
requested, to the address of the appropriate party. Notices, demands and
requests so sent shall be deemed given when the same are received. Notices to
Sublandlord shall be sent to the attention of:

         9880 Campus Point Drive
         San Diego, California 92121
         Attn:  Mr. Jerry Wills

         with a copy to:

         Pillsbury Madison & Sutro LLP
         725 South Figueroa Street, Suite 1100
         Los Angeles, California  90017
         Attn:  Jackie Park, Esq.

         Notices to Subtenant shall be sent to the attention of:

         9880 Campus Point Drive
         San Diego, California 92121
         Attn:  Mr. Jeffrey Ostrove, Ph.D.

         with a copy to:

         Mintz, Levin
         One Financial Center
         Boston, MA  02111
         Attn: Lewis J. Geffen, Esq.

         14.      BROKER. Sublandlord and Subtenant represent and warrant to
each other that, with the exception of Irving Hughes ("Broker"), no brokers were
involved in connection with the negotiation or consummation of this Sublease.
Sublandlord agrees to pay the commission of the

                                       9
<PAGE>
                                                                    Exhibit 10.1

Broker pursuant to a separate agreement. Each party agrees to indemnify the
other, and hold it harmless, from and against any and all claims, damages,
losses, expenses and liabilities (including reasonable attorneys' fees) incurred
by said party as a result of a breach of this representation and warranty by the
other party.

         15.      CONDITION OF PREMISES.

                  (a)      IMPROVEMENTS. Pursuant to the full execution of this
Sublease by the parties hereto and the receipt of Landlord's consent to this
Sublease, Sublandlord shall at its sole cost and expense make the following
improvements to the Sublease Premises (collectively, "Improvements").

                           (i)      Demise the Sublease Premises from the
         remainder of the Master Premises;

                           (ii)     Install a card reader security system; and

                           (iii)    Construct a server room to house Subtenant's
         equipment.

                  (b)      SUBSTANTIAL COMPLETION OF IMPROVEMENTS. Sublandlord
shall deliver the Sublease Premises to Subtenant with the Improvements
"substantially complete," and otherwise in conformance with all applicable laws,
rules, regulations and codes affecting the Sublease Premises and all underlying
covenants, conditions and restrictions to which the Sublease Premises are
subject, including without limitation the provisions of Section 16 of the Master
Lease. The term "substantially complete" shall mean that Sublandlord has
completed the Improvements, notwithstanding the fact that minor details of
construction, mechanical adjustments or decoration which do not materially
interfere with Subtenant's use of the Sublease Premises remain to be performed
(items normally referred to as "punch-list" items). The "punch-list" items shall
be completed by Sublandlord within thirty (30) days following the date such
items on the "punch-list" have been agreed to by Sublandlord and Subtenant. The
Sublease Premises shall be deemed to be "substantially complete" even though
Subtenant's furniture, telephones, telecopier, computers, and other business
machines or equipment have not been installed, the purchase and installation of
which shall be Subtenant's sole responsibility.

                  (c)      WARRANTIES. Sublandlord shall assign to Subtenant (or
otherwise enforce all warranties received from, or rights against, all
contractors and subcontractors involved in the Improvements.

                  (d)      EARLY ENTRY. Subtenant may enter into the Sublease
Premises upon receipt of Sublandlord's consent, for the purpose of installing
furniture, special flooring or carpeting, trade fixtures, telephones, computers,
photocopy equipment, and other business equipment. Such early entry will not
advance the Sublease Commencement Date, provided (a) Subtenant does not commence
business operations from any part of the Premises, and (b) Subtenant's early
entry does not interfere with, or delay, the completion of the Improvements. If
Subtenant is allowed early entry, Sublandlord shall not be responsible for, and
Subtenant is required to obtain insurance covering, any loss, including theft,
damage or destruction to any work or material installed or stored by Subtenant
or Sublandlord, or any contractor or individual involved in the completion of
the Improvements, or for any injury to Subtenant or Subtenant's employees,

                                       10
<PAGE>
                                                                    Exhibit 10.1

agents, contractors, licensees, directors, officer, partners, trustees, visitors
or invitees or to any other person. Sublandlord shall have the right to post the
appropriate notices of non-responsibility and to require Subtenant to provide
Sublandlord with evidence that Subtenant has fulfilled its obligation to provide
insurance pursuant to this Sublease.

         Subtenant acknowledges that it is not authorized to make or do any
alterations or improvements in or to the Sublease Premises except as permitted
by the provisions of this Sublease and the Master Lease and that it must deliver
the Sublease Premises to Sublandlord on the Sublease Expiration Date in the
condition required by the Master Lease.

         16.      CONSENT OF LANDLORD. Section 24 of the Master Lease requires
Sublandlord to obtain the written consent of Landlord to this Sublease.
Sublandlord shall solicit Landlord's consent to this Sublease promptly following
the execution and delivery of this Sublease by Sublandlord and Subtenant, at
Sublandlord's sole cost and expense. In the event Landlord's written consent to
this Sublease has not been obtained within forty-five (45) days after the
execution hereof, then this Sublease may be terminated by either party hereto
upon notice to the other, and upon such termination neither party hereto shall
have any further rights against or obligations to the other party hereto.

         17.      TERMINATION OF THE LEASE. If for any reason the term of the
Master Lease shall terminate prior to the Sublease Expiration Date, this
Sublease shall automatically be terminated and Sublandlord shall not be liable
to Subtenant by reason thereof unless said termination shall have been caused by
the default of Sublandlord under the Master Lease, and said Sublandlord default
was not as a result of a Subtenant default hereunder.

         18.      RIGHT OF FIRST REFUSAL.

                  (a)      RIGHT OF FIRST REFUSAL. During the initial Sublease
Term as it may be extended, Subtenant shall have a right of first refusal to
sublease any space in the Building that Sublandlord elects to sublease during
the Sublease Term (the "Expansion Space") on the terms and conditions contained
herein. Subtenant shall lease the Expansion Space in its "then as-is" condition
on the terms and conditions stated in the Offer (as defined below).

                  (b)      EXERCISE OF RIGHT OF FIRST REFUSAL. Sublandlord shall
give notice to Subtenant of the material terms and conditions of any offer
received by Sublandlord (which offer is acceptable to Sublandlord) from any bona
fide third party ("Offeror") to lease the Expansion Space, including, without
limiting the generality of the details of said notice, the base rent, term, and
security deposit. A copy of the offer shall be attached to the notice
(collectively, the "Offer").

         Subtenant shall thereupon have fifteen (15) business days in which to
irrevocably notify Sublandlord of its intent to lease the entire Expansion Space
which is the subject of the Offer on the terms and conditions contained in the
Offer ("Subtenant's Right of First Refusal Exercise Notice").

         If Subtenant's Right of First Refusal Exercise Notice indicates
Subtenant's irrevocable intent to lease the entire Expansion Space which is the
subject of the Offer, Sublandlord and Subtenant shall execute and deliver
appropriate documentation to evidence Subtenant's lease of

                                       11
<PAGE>
                                                                    Exhibit 10.1

such Expansion Space subject to the terms and conditions contained in the Offer
and, to the extent not inconsistent with the terms and conditions specified in
the Offer, on the terms and conditions contained in this Sublease.

         The foregoing right of first refusal shall apply only with respect to
the entire Expansion Space, and may not be exercised with respect to only a
portion thereof, unless only a portion shall first become available (in which
case, the foregoing expansion right shall apply to such portions, as the same
becomes legally available to sublease). Failure of Subtenant to deliver
Subtenant's Right of First Refusal Exercise Notice to Sublandlord in the time
period set forth above shall constitute Subtenant's intent not to lease the
Expansion Space which is subject to the Offer on the terms and conditions
contained in the Offer. If Subtenant rejects the Offer or fails to notify
Sublandlord as provided above, Sublandlord may then lease the Expansion Space
which is subject to the Offer pursuant to the Material Terms and Conditions (as
hereinafter defined) of the Offer or Material Terms and Conditions more
favorable to Sublandlord. If any of the Material Terms or Conditions as stated
in the Offer are changed and made materially less favorable to the Sublandlord
prior to the lease of such Expansion Space to the Offeror or any third party,
Sublandlord shall repeat the right of first refusal procedure set forth above,
setting forth all modified terms. "Material Terms or Conditions" shall mean
rent, additional rent, term of lease, tenant improvement allowance, options and
other material financial terms. In the event any such Expansion Space is not
leased to any other party within 180 days after notice thereof was given to
Subtenant, the provisions of this Section 18 shall again be applicable to such
Expansion Space.

                  (c)      DELIVERY OF EXPANSION SPACE. If Subtenant shall
exercise the right of first refusal granted herein, Sublandlord does not
guarantee that the Expansion Space will be available on the commencement date
for the sublease thereof, if the then existing occupants of the Expansion Space
shall holdover, or for any other reason beyond Sublandlord's reasonable control.
In such event, Rent with respect to the Expansion Space shall be abated until
Sublandlord legally delivers the same to Subtenant, as Subtenant's sole
recourse. Notwithstanding the foregoing, if Sublandlord does not deliver the
Expansion Space to Subtenant within one hundred eighty (180) days after the date
the Expansion Space was to be delivered to Subtenant, Subtenant shall have the
right, at Subtenant's sole option, to elect to terminate the lease of the
Expansion Space by delivery to Landlord of a notice (the "Termination Notice"),
which termination shall be effective upon receipt of the Termination Notice by
Sublandlord.

                  (d)      DEFAULT. Subtenant's exercise of the right of first
refusal shall not operate to cure any default by Subtenant of any of the terms
or provisions of the Sublease, nor to extinguish or impair any rights or
remedies of Sublandlord arising by virtue of such default. The right to sublease
the Expansion Space shall, at Sublandlord's election, be null and void if
Subtenant is in default under the Sublease, after applicable notice and grace
period, at the date Sublandlord would otherwise notify Subtenant of the
availability of the Expansion Space or at any time thereafter and prior to
commencement of the sublease for the Expansion Space.

                  (e)      PERSONAL. If the Sublease or Subtenant's right to
possession of the Sublease Premises shall terminate in any manner whatsoever
before Subtenant shall have exercised the right herein provided, or if Subtenant
shall have assigned the Sublease or sub-

                                       12
<PAGE>
                                                                    Exhibit 10.1

sublet more than twenty percent (20%) of the Sublease Premises to other than an
Affiliate, then immediately upon such termination, assignment or sub-sublease,
the right to sublease the Expansion Space herein granted shall simultaneously
terminate and become null and void. Such right is personal to Subtenant, and
under no circumstances whatsoever shall the assignee under a complete or partial
assignment of the Sublease, or a sub-subtenant under a sub-sublease of the
Sublease Premises, have any right to exercise the expansion right granted
herein. Subtenant agrees that time is of the essence of this provision.

                  (f)      DOCUMENTATION. After Subtenant validly exercises the
right of first refusal set forth herein, the parties hereto shall execute an
amendment to the Sublease adding the Expansion Space, or a new sublease for the
Expansion Space, or such other documentation as Sublandlord shall require in
order to confirm the addition of the Expansion Space to the Sublease Premises;
provided, however, that a valid exercise of the right of first refusal contained
herein shall be fully effective, whether or not such confirmatory documentation
is executed by the parties hereto.

         19.      MAINTENANCE.

                  (a)      MAINTENANCE OF PREMISES. Subject to Landlord's repair
and maintenance obligations set forth in Section 17 of the Master Lease,
Sublandlord shall maintain the Sublease Premises in accordance with the terms
and conditions of the Master Lease.

                  (b)      HAZARDOUS MATERIALS. Sublandlord shall, at its sole
cost and expense and prior to Subtenant's move-in into the Sublease Premises,
conduct a Base Line Phase I Environmental Assessment ("Baseline Study"), a copy
of which shall be provided to Subtenant. Subtenant shall, at its sole cost and
expense and prior to vacating the Sublease Premises, also conduct a Base Line
Study, a copy of which shall be provided to Sublandlord. If the Subtenant's
Baseline Study reveals contamination not revealed in the Baseline Study
conducted by Sublandlord, Subtenant shall be solely responsible for and shall
defend, indemnify and hold Sublandlord, its agents, contractors and employees
harmless from and against any and all claims, costs and liabilities (including
attorneys' fees), charges and disbursements arising out of or in connection with
any removal and/or clean up of Hazardous Materials and any restoration and
materials required hereunder to return the Sublease Premises and any other
property of whatever nature to their condition existing prior to the time of any
such contamination.

         Subtenant shall use the Sublease Premises in accordance with the terms
and conditions of the Master Lease, including, without limitation, Section 38
with respect to Hazardous Materials. Sublandlord and Subtenant shall each
indemnify, defend and hold the other party harmless from any and all claims,
judgments, damages, penalties, fines, costs, liabilities or losses (including,
without limitation, attorneys' fees) which arise during or after the Sublease
Term as a result of either party's use of Hazardous Materials in violation of
the terms and conditions of the Master Lease.

         20.      ENTIRE AGREEMENT. It is understood and acknowledged that there
are no oral agreements between the parties hereto affecting this Sublease and
this Sublease supersedes and cancels any and all previous negotiations,
arrangements, brochures, agreements and understandings, if any, between the
parties hereto or displayed by Sublandlord to Subtenant with

                                       13
<PAGE>
                                                                    Exhibit 10.1

respect to the subject matter thereof, and none thereof shall be used to
interpret or construe this Sublease. This Sublease, and the exhibits and
schedules attached hereto, contain all of the terms, covenants, conditions,
warranties and agreements of the parties relating in any manner to the rental,
use and occupancy of the Sublease Premises and shall be considered to be the
only agreements between the parties hereto and their representatives and agents.
None of the terms, covenants, conditions or provisions of this Sublease can be
modified, deleted or added to except in writing signed by the parties hereto.
All negotiations and oral agreements acceptable to both parties have been merged
into and are included herein. There are no other representations or warranties
between the parties, and all reliance with respect to representations is based
totally upon the representations and agreements contained in this Sublease. This
Sublease may be executed in any number of counterparts which together shall
constitute the Sublease.

         IN WITNESS WHEREOF, the parties have entered into this Sublease as of
the date first written above.

                                            SUBLANDLORD:

                                            TREGA BIOSCIENCES, INC.,
                                            a Delaware corporation

                                            By:      /s/ Gerard Wills
                                                     ---------------------------
                                            Its:     CFO
                                                     ---------------------------

                                            SUBTENANT:

                                            NEUROVIR THERAPEUTICS, INC.,
                                            a Delaware corporation

                                            By:      /s/ Jeffrey Ostrove
                                                     ---------------------------
                                            Its:     COO
                                                     ---------------------------

                                       14
<PAGE>
                                                                    Exhibit 10.1

                                   EXHIBIT "A"

                              COPY OF MASTER LEASE

                               [*TO BE ATTACHED*]

                                       15
<PAGE>
                                                                    Exhibit 10.1

                                   EXHIBIT "B"

                                  DEMISING PLAN

                               [*TO BE ATTACHED*]

                                       16

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