Document:

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                                                                   EXHIBIT 10.14

                         TECHNOLOGY LICENSE AGREEMENT

     THIS TECHNOLOGY LICENSE AGREEMENT (the "Agreement"), effective as of the
Effective Date, is entered into by and between Somnus Medical Technologies,
Inc., a Delaware Corporation having a principal place of business located at 285
N. Wolfe Road, Sunnyvale, California 94086, ("Somnus") and Conway Stuart
Medical, Inc., a Delaware Corporation having a principal place of business
located at 735 Palomar Avenue, Sunnyvale, California 94086 ("Conway Stuart").

                                   RECITALS

     WHEREAS, Somnus owns certain patents, patent applications and know-how
covering certain inventions, discoveries and information, developed by Somnus at
Somnus's expense, relating to Somnus's Model S2 two channel radio frequency
("RF") generator with capability to be expanded to six channels; and

     WHEREAS, Conway Stuart wishes to develop an RF generator based on Somnus's
Model S2 RF generator with up to six channels for use by Conway Stuart in the
Licensed Field; and

     WHEREAS, Conway Stuart wishes to obtain from Somnus, and Somnus is willing
to grant to Conway Stuart, a right and license under the Licensed Subject Matter
(as defined hereinafter below) to develop such an RF generator; and

     WHEREAS, Conway Stuart desires to obtain from Somnus, and Somnus is willing
to grant to Conway Stuart, a right and license under the Licensed Subject Matter
to manufacture, use and sell RF generators based on the licensed technology in
the Licensed Field.

     NOW, THEREFORE, Somnus and Conway Stuart agree as follows:

1. DEFINITIONS

     As used in this Agreement, the following terms shall have the meanings
indicated:

     1.1  "Licensed Field" shall mean the field of RF ablation for treatment of
gastroesophageal reflux and other medical disorders or conditions of the
stomach, esophagus, intestine, anus and all other structures, organs or tissues
of the digestive tract; provided, however, that the Licensed Field shall
specifically exclude treatment of any body structure located above the upper
esophageal sphincter.  Notwithstanding anything to the contrary, the term
"Licensed Field" shall not include any structures, organs or tissues other than
structures, organs or tissues of the digestive tract.  Notwithstanding anything
to the contrary, the term "Licensed Field" shall not include any structures,
organs or tissues other than structures, organs or tissues of the digestive
tract.

     1.2  "Licensed Subject Matter" shall mean the Intellectual Property Rights
and the Technology Rights.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.
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     1.3  "Intellectual Property Rights" shall mean all rights owned or
otherwise held by Somnus in, to or under patents and patent applications,
whether domestic or foreign, and all divisions, continuations and continuations-
in-part of any patent applications, and all patents which may issue from any
patent applications, and all reissues, reexaminations and extensions of patents,
relating to Somnus's Model S2 RF generator.

     1.4  "Technology Rights" shall mean all rights owned or otherwise
controlled by Somnus in, to or under technical information, know-how, process,
procedure, composition, device, method, formula, protocol, technique, software,
design, drawing or data relating to Somnus's Model S2 RF generator which are not
covered by Intellectual Property Rights, but which are necessary for the
practice and full utilization of inventions at any time disclosed or claimed
under the Intellectual Property Rights.

     1.5  "Technology" shall mean all tangible and intangible results and items
arising out of, developed in connection with or constituting the results of
Conway Stuart's development, including all ideas, inventions, discoveries,
designs, know-how, notes, memoranda, documentation, and copyrighted materials,
and all intellectual property rights constituting, embodied in, or pertaining to
any of the foregoing.

     1.6  "Affiliate" shall mean (a) any entity controlled, controlling or under
common control with, directly or indirectly, at least fifty percent (50%) of the
stock normally entitled to vote for election of directors of a party; or (b) any
entity at least fifty percent (50%) of whose stock normally entitled to vote for
election of directors is controlled, controlling or under common control with,
directly or indirectly, a party, or, if such level exceeds that which is
otherwise permissible in the country of residence of such entity, the maximum
level permitted in such country.

     1.7  "Effective Date" shall mean the date of transfer by Conway Stuart to
Somnus of the Conway Stuart Medical, Inc. Series A Preferred Stock, as further
set forth in Section 3.1 of this Agreement.

     1.8  Rules of Construction. As used in this Agreement, all terms defined in
the singular shall include the plural, and vice versa, as the context may
require. The words "hereof," "herein," and "hereunder" and other words of
similar import refer to this Agreement as a whole. The word "including" when
used herein is intended to be exclusive and is not intended to mean "including,
without limitation." The headings of the several sections of this Agreement are
intended for convenience of reference only and are not intended to be a part of
or to affect the meaning or interpretation of this Agreement. This Agreement has
been negotiated and drafted by the parties with assistance by counsel and shall
be fairly interpreted in accordance with its terms and without any rules of
construction relating to which party drafted the Agreement being applied in
favor or against either party.

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2. LICENSE

     2.1  Grant. Subject to the terms and conditions stated herein, Somnus
hereby grants to Conway Stuart an irrevocable, non-exclusive, worldwide right
and license under Licensed Subject Matter to manufacture, have manufactured,
use, offer to sell, sell and import RF generators in the Licensed Field.

     2.2  Ownership. Conway Stuart acknowledges and agrees that Somnus is and
shall remain the sole and exclusive owner of the Licensed Subject Matter.

     2.3  No Other Rights. Except as expressly provided herein, no right, title,
or interest is granted by Somnus to Conway Stuart in, to or under the Licensed
Subject Matter.

     2.4  No Sublicense.  Conway Stuart shall have no right to sublicense the
technology licensed under this Agreement.  Any attempt to sublicense this
Agreement by Conway Stuart shall result in an immediate termination of this
Agreement.

3. PAYMENT

     3.1  Equity in Conway Stuart. In consideration for the rights and licenses
granted hereunder subject to approval by the Board of Directors of Conway
Stuart, Conway Stuart shall deliver to Somnus [*] of Conway Stuart Medical, Inc.
Series A Preferred Stock. In the event of a reverse stock split, Conway Stuart
shall transfer stock to Somnus in order to make Somnus whole.

     3.2  Technology License Payment. Subject to the terms set forth below in
this Section 3.2, Conway Stuart shall pay Somnus a nonrefundable total
technology license fee equal to [*] Such fee shall be paid in two nonrefundable
installments. The first installment equal to [*] shall be paid on the Effective
Date. The second and final installment equal to [*] shall be paid on February 1,
1999.

     3.3  Document Payment. Conway Stuart shall pay to Somnus nonrefundable fees
equal to [*] upon receipt of the design documents and [*] upon receipt of the
manufacturing documents listed below. Somnus shall have no obligation to provide
to Conway Stuart any documents that do not already exist at Somnus' facility as
of the Effective Date. Additionally, Somnus shall have no obligation to provide
to Conway Stuart any copies of Somnus' filings with UL, TUV, and FDA.

          (a)  Design Documents. Somnus shall deliver copies of documents
relating to hardware and software for Somnus's Model S2 RF generator, including
without limitation the following documents, to be provided according to the
indicated schedule:

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[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.
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               (i)  Somnus shall provide to Conway Stuart the following
materials within ten (10) days of the Effective Date of this Agreement:
mechanical drawings for Conway Stuart's enclosure development project.

               (ii) Somnus shall provide to Conway Stuart the following
materials within sixty (60) working days of the Effective Date of this
Agreement: bill of materials, mechanical drawings for electronics, schematics,
PCB layouts in hard copy format, and letters of reference to UL, TUV and FDA for
these agencies to refer to Somnus' filed documents.

          (b)  Manufacturing Documents. Somnus shall deliver copies of documents
relating to the manufacture of Somnus' Model S2 RF generator, limited to the
following: documents of materials, suppliers, all phases of manufacturing, and
all manufacturing, quality assurance test procedures and source code for all
software related to Somnus' Model S2 generator.

     3.4  Royalty. For the life of this Agreement, Conway Stuart shall pay to
Somnus a royalty equal to [*] of Conway Stuart's average selling price of RF
generators which, absent the right and license granted by Somnus to Conway
Stuart under Section 2.1, would infringe Somnus' rights under the Licensed
Subject Matter. For purposes of this Section 3.4, the term "average selling
price" shall mean the average of net revenue actually received by Conway Stuart
from end users on sales of such RF generators in each calendar quarter during
the term of this Agreement. As used in the previous sentence, "net revenue"
shall equal the total gross revenue, less credits or allowances on account of
rejections of RF generators previously sold upon which a royalty has already
been made to Somnus. In the event that Conway Stuart places such RF generators
with end users at no cost, Conway Stuart shall pay Somnus a royalty based on the
average selling price of [*] per unit.

     3.5  Records, Reports and Payment of Royalties.  During the term of this
Agreement and for five (5) years thereafter, Conway Stuart shall keep complete
and accurate records of the sale of RF generators which, absent the right and
license granted by Somnus to Conway Stuart under Section 2.1, would infringe
Somnus' rights under the Licensed Subject Matter in sufficient detail to enable
the royalties payable to Somnus under Section 3.4 of this Agreement to be
determined.  Within sixty (60) days after the end of each calendar quarter
during which units using the technology licensed under this Agreement have been
sold, Conway Stuart shall furnish to Somnus a written report setting forth the
number of such RF generators sold in such just-ended calendar quarter, together
with royalties payable to Somnus pursuant to Section 3.4.

     3.6  Audit Rights. Conway Stuart shall permit Somnus, or representatives of
Somnus which are reasonably acceptable to Conway Stuart, at Somnus's expense, to
periodically examine Conway Stuart's books, ledgers, and records during regular
business hours for the sole purpose of, and only to the extent necessary, to
verify reports furnished to Somnus pursuant to Section 3.5; provided that Somnus
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delivers to Conway Stuart a written notice of Somnus's intention to conduct an
inspection not less than ten

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[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.

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(10) business days before the intended date of such inspection; and provided
                                                                    --------
further that only one (1) such inspection may be conducted during any calendar
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six (6) month period. In the event that amounts due Somnus are determined to
have been underpaid by an amount greater than ten percent (10%) of the amount
actually due, Conway Stuart shall pay the cost of such examination. Any royalty
payment not paid on or before the date corresponding to forty five (45) days
after the end of the calendar quarter for which such royalties are due and
payable hereunder shall accrue interest at a rate equal to one percent (1%) per
calendar month or, if less, the maximum rate permitted under applicable law.
Notwithstanding the above, each report delivered by Conway Stuart to Somnus
pursuant to Section 3.5, shall be deemed correct and accurate, and Somnus shall
have no right to inspection records relating thereto, or otherwise challenge the
accuracy of either such report or the records relating thereto, after the third
anniversary of the date of delivery of such report to Somnus.

4. DEVELOPMENT PROGRAM

     4.1  Kits.  Somnus shall provide Conway Stuart with up to twenty (20) RF
Generator kits, including one (1) extra RF board per kit, at a price of [*] per
kit, payable upon request of a kit by Conway Stuart to Somnus. The twenty (20)
kits shall be consumed by Conway Stuart in, at most, two (2) separate orders.
Ten (10) kits shall include Somnus' Model S2 generator enclosure, the remaining
ten (10) kits shall not include the enclosure. A kit shall be composed of the
components necessary to build Somnus' Model S2 RF generator. Conway Stuart shall
have ten (10) days to inspect the kits upon receipt from Somnus. Conway Stuart
shall have no claim against Somnus for defective kits, or components therein,
after the ten (10) day inspection period has expired or after the kit has been
assembled, whichever event occurs first.

     4.2  Use of Resources. Conway Stuart is expressly prohibited from using any
resources belonging to Somnus, including but not limited to engineering
resources, equipment and Somnus's employees and consultants, without first
obtaining express written permission from Somnus. Such permission shall be
requested and obtained from Somnus's Chief Executive Officer and Chief Financial
Officer, and such officers of Somnus shall have the authority to grant such
permission. Payment for Conway Stuart's use of Somnus's resources shall be
determined by Somnus' Chief Executive Officer and Chief Financial Officer, shall
be made by Conway Stuart to Somnus and, in the case of Somnus's employees, shall
not exceed two times such employee's hourly rate.

     4.3  Solicitation of Employees. Except as provided in this Section 4.3
below, Conway Stuart is expressly prohibited from soliciting any employee or
consultant of Somnus involved with the development of Somnus's Model S2 RF
generator. For purposes of clarification, Bruno Strul, Ph.D., is not an employee
or a consultant of Somnus.

          4.3.1 Use of George Schils. Upon execution of this Agreement, Conway
Stuart shall reimburse Somnus in an amount equal to Twenty Four Thousand Dollars
($24,000) for consulting services performed by George Schils on behalf of

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[*] CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH
THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED PORTIONS.
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Conway Stuart that were paid by Somnus through December 31, 1998. Upon execution
of this Agreement, Conway Stuart shall pay George Schils directly for use of his
services after December 31, 1998.

          4.3.2 Use of Robin Bek. Commencing on December 1, 1998, Conway Stuart
shall pay Somnus an amount equal to fifty percent (50%) of Robin Bek's burdened
salary to reimburse Somnus for the time that Mr. Bek spends on RF generator
development for Conway Stuart. Such payments shall be made by Conway Stuart to
Somnus on the fifteenth (15th) of every month until the development of Conway
Stuart's generator is completed. Conway Stuart shall be limited to fifty percent
(50%) of Mr. Bek's working time.

     4.4  Transfer of Technology.  Conway Stuart agrees that copies of all
information and descriptions of technology, including but not limited to, all
ideas, inventions, discoveries, specifications, designs, know-how, notes,
memoranda, documentation, test fixtures, calibration equipment, all copyrighted
materials, and all intellectual property rights constituting, embodied in, or
pertaining to any of the foregoing, developed by Conway Stuart as a result of
this Technology License Agreement shall be transferred by Conway Stuart to
Somnus.  Somnus hereby grants to Conway Stuart an irrevocable, non-exclusive,
worldwide, fully-paid, royalty-free right and license under intellectual
property covering such information and technology to use and otherwise exploit
such information and technology.

     4.5  No Conflicts. Conway Stuart agrees not to conduct any work for its own
behalf or seek out any services from any party which relates to development of
an RF generator or RF generator technology for use in treatment of any body
structure located above the upper esophageal sphincter. Somnus agrees not to
conduct any work for its own behalf or seek out any services from any party
which relates to development of an RF generator or RF generator technology for
use in the Licensed Field.

     4.6  Documentation. Conway Stuart agrees that copies of all documentation,
test results and test protocols, verifications and validations, lists of
components different from Somnus's Model S2 RF generator, and proof of
regulatory approvals shall be delivered by Conway Stuart to Somnus in a timely
fashion.

     4.7  Ownership and Rights in Technology. Somnus shall own all right, title
and interest in Technology developed, made or otherwise created solely by
employees and consultants of Somnus. Conway Stuart shall own all right, title
and interest in Technology developed, made or otherwise created solely by
employees and consultants of Conway Stuart. Somnus and Conway Stuart jointly
shall own all right, title and interest in Technology developed, made or
otherwise created jointly by employees and consultants of Somnus and Conway
Stuart. Somnus and Conway Stuart each agrees to deliver to the other party
hereto (i) a written description of any Technology developed, made or otherwise
created by its employees and consultants as a result of this Technology License
Agreement, and (ii) an example of tangible embodiments of such Technology, where
applicable. Conway Stuart shall require each of its employees and consultants to
enter into confidentiality and proprietary rights agreements, in a form
acceptable to

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Somnus, irrevocably assigning any and all right, title and interest such
employees and consultants might have in, to and under such Technology to Conway
Stuart. Somnus shall require each of its employees and consultants to enter into
confidentiality and proprietary rights agreements, in a form acceptable to
Conway Stuart, irrevocably assigning any and all right, title and interest such
employees and consultants might have in, to and under such Technology to Somnus.
All Technology shall be deemed to be Confidential Information of the party (or
parties) whose employee(s) and consultant(s) developed, made or otherwise
created such Technology and shall be subject to the restrictions set forth in
Article 6 below. Application and registration for intellectual property
protection of Technology shall be the exclusive right of the party owning such
Technology and such party shall bear the cost of such application and
registration; provided, however, that the parties shall determine which of the
parties hereto shall apply and register for intellectual property protection of
Technology jointly owned by the parties and the parties shall bear the cost and
expense of such application and registration equally. Each party agrees to
execute such documents, render such assistance, and take such other action
reasonably requested by the other party in connection with application,
registration, perfection, enforcement and defense of intellectual property
rights relating to Technology developed, made or otherwise created. Conway
Stuart agrees to grant, and hereby grants, to Somnus an irrevocable, non-
exclusive, worldwide, fully-paid, royalty-free right and license, together with
the right to grant and authorize sublicenses, under intellectual property
covering Technology developed as a result of this Technology License Agreement
and owned by Conway Stuart to make, have made, import, use, offer for sale, sell
and otherwise distribute tangible embodiments of such Technology in all fields
other than the Licensed Field. Somnus agrees to grant, and hereby grants, to
Conway Stuart an irrevocable, non-exclusive, worldwide, fully-paid, royalty-free
right and license, under intellectual property covering Technology developed as
a result of this Technology License Agreement and owned by Somnus to make, have
made, import, use, offer for sale, sell and otherwise distribute tangible
embodiments of such Technology in the Licensed Field, and to use such Technology
in development projects.

     4.8  Use of Third Party Developers.  Due to the confidential nature of the
Licensed Subject Matter, in the event Conway Stuart uses a third party developer
or manufacturer, Conway Stuart shall require such third party developer or
manufacturer to execute confidentiality agreements in a form acceptable to
Somnus.  Conway Stuart shall provide copies of all such confidentiality
agreements to Somnus.

     4.9  Control Use Algorithm.  Conway Stuart is expressly prohibited from
incorporating into the RF generators to be developed as a result of this
Technology License Agreement Somnus' proprietary algorithm preventing reuse of a
disposable medical device. If Conway Stuart elects to incorporate into such RF
generators an algorithm to prevent reuse of a disposable medical device that is
based upon the intellectual property that Somnus licensed from Medtronic, Conway
Stuart must obtain an independent license from Medtronic prior to incorporating
this feature.

     4.10 Conway Stuart Generator Appearance. Conway Stuart shall develop an
icon user interface, enclosure and connector for use in the RF generators to be
developed as a result of this Technology License Agreement which are separate
and

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distinct from the icon user interface, enclosure and connector used by Somnus as
of the Effective Date. For the avoidance of doubt, in the event that any
question exists as to whether such icon user interface, enclosure and connector
developed by Conway Stuart is not separate and distinct from the icon user
interface, enclosure and connector used by Somnus as of the Effective Date,
Conway Stuart shall obtain written approval from Somnus prior to implementation
of such icon user interface, enclosure and connector into the RF generators to
be developed as a result of this Technology License Agreement.

     4.11 Regulatory Approvals and Testing. Conway Stuart shall be responsible
for obtaining necessary regulatory approvals and authorizations for the RF
generators to be developed as a result of this Technology License Agreement,
development of all test procedures and all test fixtures. Conway Stuart shall be
responsible for developing all verification and validation protocols and
performing such verification and validation protocols to determine whether each
unit using the technology licensed under this Agreement meets the specification
requirements for such RF generators.

     4.12 Software and Hardware Changes. Conway Stuart shall be solely
responsible for development of a proprietary enclosure for RF generators to be
developed as a result of this Technology License Agreement.

     4.13 Right of Access. Representatives of Somnus shall have the right to
visit Conway Stuart's facilities and the facilities of Conway Stuart's
contractors and subcontractors during normal business hours to observe, discuss
progress with representatives of Conway Stuart and Conway Stuart's contractors,
consultants, and subcontractors, and inspect all relevant documents; provided
                                                                     --------
that, with respect to any visit or inspection of documents, Somnus shall notify
Conway Stuart of its intention to visit or inspect documents at least five (5)
business days in advance; and provided further that copies of any documents
                              -------- -------
shall be provided to Somnus only after consent by Conway Stuart, such consent
not to be unreasonably withheld; and provided further that any and all
                                     --------
information obtained by Somnus as a result of actions permitted under this
Section 4.13, including without limitation any and all copies of documents,
shall be deemed Confidential Information of Conway Stuart and shall be subject
to the restrictions set forth in Article 6 below.

5.  REPRESENTATIONS, WARRANTIES AND COVENANTS

     5.1  Representations, Warranties and Covenants of Somnus. Somnus
represents, warrants and covenants that: (i) Somnus is the sole and exclusive
owner of all right, title and interest in the Licensed Subject Matter; (ii) the
Licensed Subject Matter is free and clear of any lien, encumbrance, security
interest and restriction on license; (iii) Somnus has not previously granted,
and will not grant during the term of this Agreement, any right, license or
interest in, to or under the Licensed Subject Matter, or any portion thereof,
which is inconsistent with the rights and licenses granted to Conway Stuart
herein; (iv) to the best of Somnus' knowledge as of the Effective Date, the
Licensed Subject Matter does not infringe any intellectual property right of any
third party; (v) there are no actions, suits, investigations, claims or
proceedings pending or threatened in any way relating to the Licensed Subject
Matter; (vi) during the term of this Agreement,

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Somnus will not conduct any work for its own behalf or seek out any services
from any party which relates to development of an RF generator, or RF generator
technology, for use in the Licensed Field, (vii) Somnus is a corporation, duly
organized validly existing and in good standing under the laws of the State of
Delaware; and (viii) the execution, delivery and performance of this Agreement
have been duly authorized by all necessary corporate action on the part of
Somnus.

     5.2  Representations, Warranties and Covenants of Conway Stuart. Conway
Stuart represents, warrants and covenants that: (i) during the term of this
Agreement, Conway Stuart will not conduct any work for its own behalf or seek
out any services from any party which relates to development of an RF generator,
or RF generator technology, for use in treatment of any body structure located
above the upper esophageal sphincter; (ii) Conway Stuart is a corporation, duly
organized validly existing and in good standing under the laws of the State of
Delaware; and (iii) the execution, delivery and performance of this Agreement
have been duly authorized by all necessary corporate action on the part of
Conway Stuart.

     5.3  Effect of Representations, Warranties and Covenants. It is understood
that if the representations and warranties made by a party under this Article 5
are not true and accurate, or if the covenants made by a party under this
Article 5 are not upheld and complied with, and the other party incurs damages,
liabilities, costs or other expenses as a result of such falsity or non-
compliance, the party making such representations, warranties and covenants
shall indemnify and hold the other party harmless from and against any such
damages, liabilities, costs or other expenses incurred as a result of such
falsity or such non-compliance.

6.  CONFIDENTIAL INFORMATION

     6.1  General.  Somnus and Conway Stuart each agree that all information
contained in documents marked "confidential" which are received by one party
from the other party, and all information indicated to be Confidential
Information in Sections 4.7 and 4.13 (collectively, "Confidential Information")
shall be received in strict confidence, used only for the express purposes set
forth in this Agreement, and not disclosed by the recipient party (except as
required by law or court order), its agents or employees without the prior
written consent of the other party, unless such Confidential Information (i) was
in the public domain at the time of disclosure, (ii) later became part of the
public domain through no act or omission of the recipient party, its employees,
agents, or permitted successors or assigns, (iii) was lawfully disclosed to the
recipient party by a third party having no obligation to the disclosing party,
(iv) was already known by the recipient party at the time of disclosure, (v) was
independently developed by the recipient without use of or access to such
Confidential Information or (vi) is required to be disclosed to a government
agency.

     6.2  Protection of Confidential Information.  Each party's obligations of
confidentiality, non-use and nondisclosure set forth in Section 6.1 shall be
fulfilled by using at least the same degree of care with the other party's
Confidential Information as it uses to protect its own confidential information.
This obligation shall continue in full

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force and effect during the term of this Agreement and thereafter for a period
of three (3) years.

7.  INFRINGEMENT BY THIRD PARTIES

     7.1  General. Conway Stuart shall notify Somnus if it learns of any
possible infringement by any third party of the Intellectual Property Rights. In
the event that Somnus does not file suit against a substantial infringer of such
patents or other rights granted herein within six (6) months after receipt of
such notification from Conway Stuart, Conway Stuart shall have a right, but no
obligation, to enforce any patent licensed hereunder on behalf of itself and
Somnus. Somnus shall provide all reasonable assistance requested by Conway
Stuart in connection with any action taken by Conway Stuart to enforce the
Intellectual Property Rights consistent with its obligations pursuant to Section
7.2, including without limitation joining legal action initiated by Conway
Stuart as a party. In the event that Conway Stuart takes action to enforce the
Intellectual Property Rights, Conway Stuart shall retain for its own benefit all
recoveries obtained from such action.

     7.2  Cooperation. In any suit or dispute involving an infringer, the
parties shall cooperate fully, and upon the request and at the expense of the
party bringing suit, the other party shall make available to the party bringing
suit, at reasonable times and under appropriate conditions all relevant
personnel, records, papers, information, samples, specimens, and the like in its
possession.

8.  INDEMNIFICATION

     8.1  General.  Conway Stuart shall hold harmless and indemnify Somnus, its
officers, employees and agents from and against any claims, demands or causes of
action whatsoever, including without limitation those arising on account of any
injury or death of persons or damage to property caused by, or arising out of,
or resulting from, the exercise or practice of the rights and licenses granted
hereunder by Conway Stuart, its Affiliates or their officers, employees, agents
or representatives, except to the extent that any such claims, demands or causes
of action arise as a result of Somnus' negligence or misconduct.

9.  TERM AND TERMINATION

     9.1  Term. The term of this Agreement shall commence on the Effective Date
and continue in full force and effect until the earlier of either (i) the
expiration of the term of the last patent within the Licensed Subject Matter or,
if sooner, determination by a court or administrative agency of competent
jurisdiction that the last patent within the Licensed Subject Matter is invalid
or unenforceable, or (ii) fifteen (15) years if no patents within the Licensed
Subject Matter issue.

     9.2  Termination for Cause. Either party may, without penalty, terminate
this Agreement, effective upon written notice to the other party in the event of
one of the following events:

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     9.2.1 The other party materially breaches this Agreement, and such breach
remains uncured for thirty (30) days following written notice of breach by the
non-breaching party, unless such breach is incurable, in which event termination
shall be immediate upon receive of written notice;

     9.2.2 To the extent permitted by applicable, a petition for relief under
any bankruptcy statute is filed by or against the other party, or the other
party makes an assignment for creditors, or a receiver is appointed for all or a
substantial party of the party's assets, and such petition, assignment or
appointment is not dismissed or vacated within sixty (60) days.

     9.3  Licenses.

          9.3.1 Upon expiration of this Agreement pursuant to the terms of
Section 9.1, Conway Stuart shall have a paid-up, irrevocable, non-exclusive,
worldwide right and license under the Technology Rights to manufacture, have
manufactured, use, offer to sell, sell and import RF generators in the Licensed
Field.

          9.3.2 Upon termination of this Agreement by Somnus pursuant to Section
9.2, all rights and licenses granted herein by Somnus to Conway Stuart under
Licensed Subject Matter shall terminate. Upon termination of this Agreement by
Conway Stuart pursuant to Section 9.2, or upon expiration of this Agreement, all
rights and licenses granted herein by Somnus to Conway Stuart under Licensed
Subject Matter shall survive.

     9.4  Return of Confidential Information. Upon termination of this Agreement
by Somnus pursuant to Section 9.2, but not upon expiration or termination of
this Agreement by Conway Stuart pursuant to Section 9.2, Conway Stuart shall
promptly return to Somnus any Confidential Information of Somnus received from
Somnus prior to such termination, and Conway Stuart shall be no longer be
entitled to use any such Confidential Information for any purpose.

     9.5  Accrued Rights.  Expiration or termination of this Agreement shall not
release either party from any obligation theretofore accrued.

     9.6  Survival. Articles 5, 6, and 10, and Sections 9.3, 9.4, 9.5 and 9.6,
of this Agreement shall survive expiration or termination of this Agreement for
any reason.

10. MISCELLANEOUS

     10.1 Governing Law.  This Agreement shall be governed by, and construed and
interpreted, in accordance with the laws of the State of California without
reference to principles of conflicts of laws.

     10.2 Compliance with Laws.  Each party shall perform this Agreement in
compliance with all applicable federal, national, state and local laws, rules
and regulations and shall indemnify the other party and its customers for loss
or damage sustained because of such party's noncompliance with any such law,
rule or regulation.

                                       11
<PAGE>

Each party shall furnish to the other party any information requested or
required by that party during the term of this Agreement or any extensions
hereof to enable that party to comply with the requirements of any U.S. or
foreign federal, state, and/or governmental agency.

     10.3  Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR
INCIDENTAL, CONSEQUENTIAL, INDIRECT, OR SPECIAL DAMAGES OF THE OTHER PARTY
ARISING OUT OF THIS AGREEMENT, UNDER ANY THEORY OF LIABILITY.

     10.4  Force Majeure. Neither party shall be held responsible for any delay
or failure in performance hereunder caused by strikes, embargoes, unexpected
government requirements, civil or military authorities, acts of God, earthquake,
or by the public enemy or other causes reasonably beyond such party's control
and without such party's fault or negligence.

     10.5  Independent Contractors. The relationship of Somnus and Conway Stuart
established by this Agreement is that of independent contractors. Nothing in
this Agreement shall be constructed to create any other relationship between
Somnus and Conway Stuart. Neither party shall have any right, power or authority
to assume, create or incur any expense, liability or obligation, express or
implied, on behalf of the other.

     10.6  Confidentiality of Agreement. Except as required by law, neither
party to this Agreement shall disclose the contents or any term of this
Agreement to any person or entity without the prior written consent of the non-
disclosing party.

     10.7  Assignment. The parties agree that their rights and obligations under
this Agreement may not be transferred or assigned to a third party without the
prior written consent of the other party hereto. Notwithstanding the foregoing,
a party may transfer or assign its rights and obligations under this Agreement
to a successor to all or substantially all of its business or assets relating to
this Agreement whether by sale, merger, operation of law or otherwise.

     10.8  No Use of Names.  Neither party will use the name of the other in its
advertising or promotional materials without the prior written consent of such
other party.

     10.9  Notices.  Any required notices hereunder shall be given in writing by
certified mail or overnight express delivery service (such as FedEx) at the
address of each party below, or to such other address or as either party may
substitute by written notice.  Notice shall be deemed served when delivered or,
if delivery is not accomplished by reason or some fault of the addressee, when
tendered.

     If to Somnus:  Somnus Medical Technologies, Inc.
                    285 N. Wolfe Road
                    Sunnyvale, California 94086
                    Attn: Chief Executive Officer

                                       12
<PAGE>

     If to Conway Stuart:  Conway Stuart Medical, Inc.
                           735 Palomar Avenue
                           Sunnyvale, California 94086
                           Attn: Chief Executive Officer

     10.10  Modification; Waiver.  This Agreement may not be altered, amended or
modified in any way except by a writing signed by both parties.  The failure of
a party to enforce any provision of the Agreement shall not be construed to be a
waiver of the right of such party to thereafter enforce that provision or any
other provision or right.

     10.11  Severability. If any provision of any provision of this Agreement
shall be found by a court to be void, invalid or unenforceable, the same shall
be reformed to comply with applicable law or stricken if not so conformable, so
as not to affect the validity or enforceability of this Agreement.

     10.12  Entire Agreement. The parties hereto acknowledge that this Agreement
sets forth the entire Agreement and understanding of the parties hereto as to
the subject matter hereof, and supersedes all prior discussions, agreements, and
writings in respect hereto.

     10.13  Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and which together shall
constitute one instrument.

     IN WITNESS WHEREOF, Somnus and Conway Stuart have executed this Agreement
by their respective duly authorized representatives.

SOMNUS MEDICAL                           CONWAY STUART MEDICAL, INC.
TECHNOLOGIES, INC.                       ("Conway Stuart")
("Somnus")

By: /s/ John Schulte                     By: /s/ Stuart D. Edwards
    --------------------------               --------------------------

Print: John Schulte                      Print: Stuart D. Edwards

Title: Chief Executive Officer           Title: Chief Executive Officer

                                       13<PAGE>

                                                                   EXHIBIT 10.15
                          Exclusive License Agreement
                                    Page 1

                               LICENSE AGREEMENT

     This License Agreement ("License Agreement") is effective February 1, 2000
(the "Effective Date") and is between University of Kansas Medical Center
Research Institute, Inc., a non-profit 501(3)(c) corporation of the State of
Kansas, located at 3901 Rainbow Blvd., Kansas City, Kansas 66160-7702 (the
"Research Institute"), which is an agent of the University of Kansas Medical
Center ("KUMC"), and Conway Stuart Medical, Inc., a for-profit Delaware
corporation, having a place of business at 735 Palomar Avenue, Sunnyvale,
California 94086 (the "Company").

                                  Background

     KUMC owns United States Patent No. 5,057,105, United States Reissue Patent
No. 35,330, and their foreign counterparts, as are identified in License Exhibit
A (the "Patent Rights"). The Research Institute has the right to grant licenses
under the Patent Rights on behalf of KUMC.

     The Company designs and develops products and techniques useful or
prospectively useful for applying radio frequency energy to tissue in the
gastro-intestinal tract, e.g., for the treatment of gastrointestinal reflux
disease (GERD) and fecal incontinence.

     The Company seeks an exclusive field of use license under the Patent
Rights.

     Accordingly, the parties agree as follows:

                        Article 1.  Definition of Terms

1.1. "Affiliate" shall mean, with respect to a given business entity, any
      ---------
corporation or other entity which controls, is controlled by, or is under common
control with such entity. A corporation or other entity shall be regarded as in
control of another corporation or entity if it owns or directly or indirectly
controls more than fifty percent (50%) of the voting stock or other ownership
interest of the other corporation or entity, or if it possesses, directly or
indirectly, the power to direct or cause the direction of the management and
policies of the corporation or other entity or the power to elect or appoint
fifty percent (50 %) or more of the members of the governing body of the
corporation or other entity.

1.2. The "Licensor" shall mean the Research Institute.
          --------

1.3. The "Gastro-Intestinal Tract" shall mean the body passage beginning at the
          -----------------------
esophagus and including, but not limited to, the stomach, the small and large
intestines, and the rectum, through which food taken into the body is digested.

1.4. The "Company's Field of Use" shall mean the Gastro-Intestinal Tract.
          ----------------------
<PAGE>

                          Exclusive License Agreement
                                    Page 2

1.5. "Valid Patent Claim" shall mean a claim of an issued and unexpired patent
      ------------------
included within the Patent Rights, which has not been held permanently revoked,
unenforceable or invalid by a decision of a court or other governmental agency
of competent jurisdiction, unappealable or unappealed within the time allowed
for appeal, and which has not been admitted to be invalid or unenforceable
through reissue or disclaimer or otherwise.

1.6. "Related Materials" shall mean all technical information, know-how,
      -----------------
processes, procedures, compositions, devices, methods, techniques, data or other
subject matter that is useful or prospectively useful for the practice of  the
Patent Rights, and  that are confidential and not publically known or available
under the provisions of Article 8 of this License Agreement.

1.7. "Third Party" shall mean any individual or entity that is not the Licensor,
      -----------
KUMC, the Company, or an Affiliate or sublicensee of the Company.

1.8. "Other Licensees" shall mean any Third Party licensed by the Licensor under
      ---------------
the Patent Rights in a field of use outside the Company's Field of Use.

1.9. "Licensed Product' shall mean a hardware instrument or device (i) that is
      ----------------
designed or labeled for repeated use with multiple patients, (ii) that, during
use, generates and delivers in a controlled fashion energy to tissue in the
Gastro-Intestinal Tract, and (ii) the use, manufacture, or sale of which
infringes a Valid Patent Claim in the country where use, manufacture, or sale
occurs. The Licensed Product shall specifically not encompass any disposable
component that is designed or labeled for single use or for use with a single
patient, and intended to be disposed of after such use, and associated cabling
or connectors to couple any disposable component to the hardware instrument for
use.

1.10.  "Net Sales" shall mean the sum total of all amounts invoiced for sales
        ---------
of Licensed Products sold by the Company, its Affiliates, sublicensees, agents
or distributors, less: (i) normal trade and case discounts actually allowed
(excluding promotional, advertising and other non-normal or special discounts);
(ii) credits or refunds actually allowed for spoiled, damaged, outdated, or
returned goods; (iii) sales and other excise taxes imposed and paid directly
with respect to the sale; (iv) any shipping costs separately invoiced to the
Company's Customers.

1.11.  "GPR" shall mean the federal laws and regulations regarding inventions or
        ---
discoveries conceived or first actually reduced to practice in the performance
of work under a funding agreement between the U.S. federal government or agency
thereof and a small business firm or nonprofit organization,
<PAGE>

                          Exclusive License Agreement
                                    Page 3

specifically 35 U.S.C. ' 201-212, 37 C.F.R. Part 401, ' 401.1-401.16 as modified
by Executive Order No. 12618 of December 22, 1987 (published in the Federal
Register of December 24, 1987) and amendments and modifications thereto or
hereafter adopted or approved.

                          Article 2. Grant of Rights

2.1  Grant. Subject only to the provisions of Section 2.3, the Licensor hereby
     ------
grants to the Company and its Affiliates an exclusive, worldwide right under the
Patent Rights and Related Materials in the Company's Field of Use to (i) design,
develop, make, have made, use, sell, offer for sale, import, export or otherwise
distribute products in the Company's Field of Use, and (ii) practice or
authorize the practice of any method, process, or procedure in the Company's
Field of Use.

2.2  Right to Sublicense. The Company shall have the right to grant or authorize
     --------------------
sublicenses within the scope of the license granted in Section 2.1, provided
that any such sublicense and sublicensee shall be subject in all respects to the
restrictions, exceptions and termination provisions contained in this Agreement,
unless otherwise mutually agreed to in writing by the parties. The Company shall
be responsible to the Licensor for all obligations of its sublicensees in the
same fashion and to the full extent that the Company is obligated to the
Licensor hereunder. If the Licensor is required to bring suit against a
sublicensee of the Company for breach of this Agreement, the Company will pay
all reasonable costs incurred by the Licensor in connection therewith,
including, but not limited to, reasonable attorneys fees and disbursements.

2.3  Retained Rights.  The Licensor retains rights in all fields of use outside
     ----------------
the Company's Field of Use (the "Retained Rights"). No right or license is
granted by the Licensor under this Agreement to the Company, either expressly or
by implication, except those specifically set forth herein. The license granted
to the Company under Section 2.1 is also subject to certain rights and license
granted to the United States and foreign governments pursuant to provisions of
the GPR, which have been explained to the Company.

               Article 3. Consideration for the Grant of Rights

3.1. Consideration.  Consideration for the rights and licenses granted by the
     --------------
Licensor to the Company herein, are (i) payment by the Company on the Effective
Date of a cash lump sum licensing fee of fifteen thousand dollars ($15,000) to
the Licensor; (ii) payment by the Company to the Licensor of certain royalties
based upon the sale of Licensed Products, pursuant to Article 4 that follows;
(iii) payment by
<PAGE>

                          Exclusive License Agreement
                                    Page 4

the Company to the Licensor certain reasonable expenses, including attorney's
fees, incurred after the Effective Date for prosecuting, and maintaining the
Patent Rights, pursuant to Article 6 that follows; and (iv) the issuance on the
Effective Date by the Company to the Licensor of 100,000 shares of common stock
of the Company, pursuant to and subject to the terms and conditions set forth in
License Exhibit B.

                             Article 4. Royalties

4.1  Product Royalty.   The Company shall pay to the Licensor a running royalty
     ---------------
of two percent (2.0%) on the Net Sales of Licensed Products sold by the Company
or its Affiliates to Third Parties (the "Product Royalty"). Sales shall be
considered to be made, for purposes of this Section, when payment for a Licensed
Product is received by the Company. Only one Product Royalty shall be paid for
each Licensed Product sold, despite the number of Patent Rights or Valid Patent
Claims that may be applicable to the Licensed Product.

4.2. Sublicensee Royalty.  The Company shall pay to the Licensor twenty percent
     -------------------
(20%) of all compensation received by the Company due to sublicense of the
Patent Rights to a Third Party, including, but not limited to, royalties, fees,
equity in such Third Party sublicensees, etc (the "Sublicensee Royalty").

4.3. When Payments are Due.  Payment of the Product Royalties and the
     ---------------------
Sublicensee Royalties under the preceding Sections 4.1 and 4.2 shall be made to
the Licensor in U.S. Dollars within sixty (60) days following the end of each
calendar quarter. Remittance of the Product Royalties and the Sublicensee
Royalties in currency issued outside the U.S. shall be made to the Licensor in
U.S. Dollars at the official rate of exchange of the currency of the country
from which the royalties are payable (as quoted by Citibank NA for the last
business day of the calendar quarter in which the royalties are payable).  Each
such payment shall include the Product Royalties and the Sublicensee Royalties
that have accrued during the calendar quarter immediately preceding and shall be
accompanied by a report as described in Section 5.2 that follows. If no
royalties are due, the report shall so state.

4.4  Annual Minimum Royalty.  The Company shall pay to Licensor an annual
     ----------------------
minimum royalty of ten thousand dollars ($10,000) for each one year term, or
prorated portion thereof, this License Agreement is in effect (the "Annual
Minimum Royalty"). The Annual Minimum Royalty shall be payable to the Licensor
within sixty (60) days after December 31 of each year. The Product Royalties
<PAGE>

                          Exclusive License Agreement
                                    Page 5

or Sublicensee Royalties for a given year under the provisions of Section 4.1
and 4.2 above shall be fully creditable against the Annual Minimum Royalty due
for that year.

                     Article 5. Administration of Payments

5.1  Where to Send Payment.  Payments made to the Licensor under this License
     ---------------------
Agreement shall be made payable to "University of Kansas Medical Center Research
Institute, Inc., Tax ID:  48-1108830" referencing the License Agreement and
forwarded to K. M. A. Welch, M.D., President, University of Kansas Medical
Center Research Institute, 3901 Rainbow Blvd., Kansas City, Kansas, 66160-7702.

5.2  Sales Report. The Company shall prepare and sign a report each quarter
     ------------
which sets forth separately, the Net Sales of all Licensed Products sold by
Company, its sublicensees and Affiliates, during the quarter. This report is to
be generated whether there were sales during the quarter, or not. The Licensor
shall maintain all such financial and business information of the Company, its
Affiliates, and sublicensees in confidence and not disclose such information to
any Third Party.

5.3  Inspection of Sales Records.  The Company, its Affiliates, and sublicensees
     ---------------------------
shall keep and maintain records of sales of Licensed Products. Upon sixty (60)
days advance written notice to the Company, such records shall be open to
inspection at any reasonable time during normal business hours not more often
than once each year within three (3) years after the royalty period to which
such records relate, by a representative of the Licensor (the "Licensor's
Representative"), who shall be approved in advance by the party whose records
are being inspected, which approval shall not be unreasonably withheld. The
Licensor's Representative shall have the right to examine and make abstracts of
the records kept pursuant to this License Agreement and report findings of said
examination of records to Licensor, insofar as it is necessary to evidence any
mistake or impropriety on the part of the Company or its respective Affiliate or
sublicensee. The Licensor's Representative and the Licensor shall be obligated
to keep all such financial and business information of the Company confidential
and not disclose such information to any Third Party.

                Article 6. Patent Prosecution and Maintenance

6.1. Domestic and Foreign Patent Prosecution (The Licensor).  The Licensor shall
     ------------------------------------------------------
retain patent counsel acceptable to the Company to control the prosecution and
maintenance of the Patent Rights. The Company shall share in equal proportion
with the Other Licensees the reasonable costs of prosecution and maintenance of
the Patent Rights. The Licensor shall (i) keep the Company reasonably informed
as
<PAGE>

                          Exclusive License Agreement
                                    Page 6

to the prosecution and maintenance of such patents and patent applications, (ii)
furnish to the Company copies of documents relevant to any such filing,
prosecution and maintenance, (iii) allow the Company reasonable opportunity to
comment on documents filed with any patent office which could affect the nature
or scope of Patent Rights, and (iv) obtain the Company's consent prior to
prosecuting any patent application in favor of claims inside the Company's Field
of Use to the detriment of claims outside the Company's Field of Use. For
purposes of this Article 6, "prosecution and maintenance" of patents and patent
applications shall be deemed to include, without limitation, the conduct of
interferences or oppositions, and/or requests for re-examinations, reissues or
extensions of patent terms.

6.2. Domestic and Foreign Patent Prosecution (The Company). If no Other Licensee
     -----------------------------------------------------
exists to proportionally share in the costs as set forth in Section 6.1 above,
the Company shall have the right, at its option and at its expense, to retain
patent counsel to control the prosecution and maintenance of the Patent Rights
pertaining to the Company's Field of Use.

                            Article 7. Infringement

7.1  Notification of Infringement or Challenge.  If any party believes that a
     ------------------------------------------
Third Party is making, using or selling a product that may infringe any Patent
Right in any field of use, or if any party learns of the institution by a Third
Party of any proceeding challenging the validity or enforceability of any
Patent Right in any field of use, that party shall notify the other party in
writing.

7.2. Enforcement of  Patent Rights in the Company's Field of Use.  The Company
     ------------------------------------------------------------
(or its Sublicensee, where the Company has transferred such right) shall have
the first right (itself or through others), under its own control and at its
sole expense, to bring suit to enforce the Patent Rights against infringement by
a Third Party within the Company's Field of Use, and/or to defend any
declaratory judgment action with respect thereto. The Licensor, at the Company's
request, agree to join as a party plaintiff in any such action initiated by the
Company. The Licensor shall permit any action under this Article 6 to be brought
in its name, if required by law. In the event the Company (or its Sublicensee)
elects not to initiate an action to enforce the Patent Rights against a
commercially significant infringement by a Third Party within the Company's
Field of Use, or to answer a declaratory judgment action within ninety days
after notice thereof, the Licensor shall have the right to initiate such action
under its own control and at its sole expense. The Company (or its Sublicensee)
shall have the right to participate in any action with
<PAGE>

                          Exclusive License Agreement
                                    Page 7

counsel of its own choice and at its own expense in any suit brought to enforce
the Patent Rights against infringement by a Third Party outside the Company's
Field of Use.

7.3. Defense of Third Party Claims in the Company's Field of Use.  If any party
     ------------------------------------------------------------
is threatened or is named in an action alleging infringement of patent or other
intellectual property right owned by a Third Party, which arises out of an
activity under the Patent Rights in any field of use (the "Third Party Claim"),
that party shall notify the other party in writing. The Company (or its
Sublicensee) shall have the first right (itself or through others), under its
own control and at its sole expense, to defend and settle any Third Party Claim
in the Company's Field of Use. The Company shall keep the Licensors reasonably
informed as to the defense and/or settlement of such action. The Licensor shall
have the right to participate in any such action with counsel of its own choice
at its own expense. The Company (or its Sublicensee) shall have the right to
participate in any action with counsel of its own choice and at its own expense
in any suit involving a Third Party Claim outside the Company's Field of Use.

7.4. Voluntary Disposition of Suit.  No party may enter into any settlement,
     ------------------------------
consent judgment, or other voluntary final disposition of a suit or action
involving the Patent Rights in any field of use without the prior approval of
the other party, which approval shall not be unreasonably withheld. The Licensor
shall not approve any settlement, consent judgment, or other voluntary final
disposition of a suit or action involving the Patent Rights in fields of use
outside the Company's Field of Use without the prior approval of the Company,
which approval shall not be unreasonably withheld.

7.5. Cooperation.  Each party agrees to cooperate fully in any action under this
     -------------
Article 7 which is controlled by another party, provided that the controlling
party reimburses the cooperating party promptly for any reasonable costs and
expenses incurred by the cooperating party in connection with providing such
assistance. Any recovery obtained in an action under this Article 7 shall be
used to reimburse the cooperating party, with any remaining amounts to be
retained by the controlling party.

7.6. No Implied Obligations.  Except as expressly provided in this Article 7, no
     ----------------------
party has any obligation to bring or prosecute actions or suits against any
Third Party for patent infringement.

                          Article 8.  Confidentiality

8.1.   Designation.  It is understood that it may be necessary for the Licensor,
       ------------
or the Company, or both, to exchange confidential information from time to time
in furtherance of the Company's rights in the Company's Field of Use. To the
extent that one party (the "Disclosing Party") desires to disclose to
<PAGE>

                          Exclusive License Agreement
                                    Page 8

another party (the "Receiving Party") information or data which reasonably
relates to the activity of the Company pursuant to this License Agreement, and
which is considered to be confidential ("Confidential Information"), the
Disclosing Party shall place the Confidential Information in a written form,
marked with an appropriate legend indicating its confidential status. If
Confidential Information is first disclosed orally or visually to the Receiving
Party, the Disclosing Party shall, within one month of the disclosure, prepare a
written summary of the Confidential Information disclosed, referencing the date
of disclosure and identifying the Receiving Party or Parties.

8.2. Obligations.  Except as otherwise provided in this Article 8, the Receiving
     ------------
Party shall, for a period of five (5) years after disclosure of an item of
Confidential Information from the Disclosing Party, hold the Confidential
Information in confidence and shall not disclose the Confidential Information to
a Third Party, nor use the Confidential Information except in furtherance of the
Company's rights in the Company's Field of Use.

8.3. Exemptions.  To the extent it is reasonably necessary or appropriate to
     -----------
exercise its rights under this License Agreement, the Company may disclose
Confidential Information of the Licensor it is otherwise obligated under this
Article 8 not to disclose, to its Affiliates, sublicensees, consultants, outside
contractors, clinical investigators, directors, officers, employees, and legal
counsel on a need-to-know basis, on condition that such entities or persons
agree to keep the Confidential Information confidential for the same time
periods and to the same extent as the Company is required to keep the
Confidential Information confidential. Furthermore, the Company or its
sublicensees may disclose Confidential Information of the Licensor to government
or other regulatory authorities to the extent that such disclosure is reasonably
necessary to obtain authorizations to conduct clinical trials of, and to
commercially market, products in the Company's Field of Use. KUMC and the
Licensor, at their option, may freely publish any or all of research results and
technical information developed at KUMC with no participation by the Company.

8.4. Exceptions. The obligation not to disclose or use Confidential Information
     ------------
shall not apply to any part of such Confidential Information that: (i) is or
becomes part of the public domain other than by unauthorized acts of the party
obligated not to disclose such Information or its Affiliates or sublicensees:
(ii) can be shown by written documents to have been disclosed to the Receiving
Party or its Affiliates or sublicensees by a Third Party, provided such
Confidential Information was not obtained by such Third
<PAGE>

                          Exclusive License Agreement
                                    Page 9

Party directly or indirectly from the other party under this License Agreement
pursuant to a confidentiality agreement; (iii) prior to disclosure under this
License Agreement, was already in the possession of the Receiving Party or its
Affiliates or sublicensees, provided such Information was not obtained directly
or indirectly from the other party under this License Agreement pursuant to a
confidentiality agreement; (iv) can be shown by written documents to have been
independently developed by the Receiving Party or its Affiliates or sublicensees
without breach of any of the provisions of this License Agreement, or (v) is
disclosed by the Receiving Party pursuant to interrogatories, requests for
information or documents, subpoena, civil investigative demand issued by a court
or governmental agency or as otherwise required by law; provided that the
Receiving Party notifies the Disclosing Party immediately upon receipt thereof.
The burden of proof under this Section 8.4 rests with the party claiming the
existence of one of the exceptions.

8.5  Terms of this License Agreement.  Except as required by law, and, in the
     ---------------------------------
case of the Licensor, except as may be required in order to maintain its status
as an exempt organization under 501(c)(3) of the U.S. Internal Revenue Code and
regulations thereunder, neither the Licensor nor the Company shall originate any
publicity, news release, or other public announcement, written or oral, whether
to the public press, to stockholders, or otherwise, relating to this Agreement
to any amendment thereto or to performance hereunder without the prior written
approval of the other party. The Company shall not use the name of the
University of Kansas, University of Kansas Medical Center or the University of
Kansas Medical Center Research Institute, Inc. (or any variant thereof) or any
related organization in any advertising, packaging (except for customary
technical references) or other promotional material in connection with the sale
of Licensed Product referred to in this License Agreement. If the Company
determines that it is required to file with the Securities and Exchange
Commission or other governmental agency this License Agreement for any reason,
such party shall request confidential treatment of such portions of this License
Agreement as it and the other party shall together determine. Notwithstanding
the foregoing, prior to execution of this License Agreement, the parties may
agree upon the substance of information that can be used as a routine reference
in the usual course of business to describe the terms of this transaction, and
the parties may disclose such information, as modified by mutual agreement from
time to time, without the other party's consent.
<PAGE>

                          Exclusive License Agreement
                                    Page 10

8.6. Return of Confidential Information.  Upon termination of this License
     -----------------------------------
Agreement, the Receiving Party shall, upon written request of the Disclosing
Party, return to the Disclosing Party all copies of the Confidential Information
then subject to the provisions of this Article 8, except that the Receiving
Party may retain one copy of such Confidential Information in the possession of
its legal counsel for the purpose of monitoring its obligations under this
License Agreement.

                   Article 9. Representations and Warranties

9.1.  Licensor's Authorization.   The Licensor represents and warrants that: (i)
      -------------------------
it has the legal right, title, and power to enter into this License Agreement
and to extend the rights and/or licenses granted to the Company in this License
Agreement, (ii) the performance of such obligations will not conflict with any
agreements, contracts or other arrangements to which it is a party, (iii) it has
not previously granted and will not grant any rights in the Patent Rights and
the Related Materials that are inconsistent with the rights and licenses granted
to the Company herein; and (iv) Exhibit A lists, as of the Effective Date, all
Basic Patent Rights throughout the world. To the best of the Licensor's
knowledge, (i) there is no pending or threatened claim or litigation to which
the Licensor is a party contesting the ownership, derivation, inventorship,
validity or right to use any of the Patent Rights or Related Materials, and (ii)
the Licensor has received any notice of infringement with respect to exercise of
the Patent Rights.

9.2. Company's Authorization. The Company represents and warrants that: (i) it
     -------------------------
is a corporation duly organized validly existing and in good standing under the
laws of the State of Delaware; and (ii) the execution, delivery and performance
of this License Agreement have been duly authorized by all necessary corporate
action on the part of the Company.

                       Article 10. Term and Termination

10.1.    Term.  Unless terminated earlier pursuant to this Article 10, the term
         ----
of this License Agreement shall commence on the Effective Date and continue in
full force and effect until expiration, revocation or invalidation of the last
patent or the abandonment of the last application within the Patent Rights.

10.2.  Termination by the Licensor.  The Licensor may terminate this Agreement
       ---------------------------
and the license herein granted upon the breach of any of the terms herein
contained upon sixty (60) days written notice to the Company; provided that, if
                                                              -------------
during said sixty (60) days, the Company cures the breach complained of,  then
this Agreement shall continue in full force and effect. In the event this
Agreement shall be terminated according to this Section 10.2, the Company shall
promptly make an accounting to the
<PAGE>

                          Exclusive License Agreement
                                    Page 11

Licensor of the inventory of Licensed Products which it and its Affiliates and
sublicensees have on hand as of the date of such termination. The Company, its
Affiliates and sublicensees shall then have the right, for a period of six (6)
months after said termination, to sell such inventory, provided that the Net
                                                       -------------
Sales thereof shall be subject to the payment to the Licensor of the royalties
set forth in Article 4 above.

10.2.  Termination by the Company.  Any provision herein notwithstanding, the
       --------------------------
Company may terminate this License Agreement, in its entirety or as to any
particular patent or patent application within the Patent Rights, at any time by
giving the Licensors at least ninety (90) days prior written notice. From and
after the effective date of a termination under this Section 10.2 with respect
to a particular patent or application, such patent(s) and patent application(s)
in the particular country shall cease to be within the Patent Rights for all
purposes of this License Agreement, and the Company shall no longer be liable
for the expenses relating to that patent or patent application under Section
6.1.

                  Article 11. Indemnification and Insurance

11.1.  Licensee Indemnification Agreement.  The Company hereby indemnifies the
       ----------------------------------
KUMC and the Licensor and its agents and agrees to be solely responsible and
hold KUMC and the Licensor and their employees and agents harmless from any
claims, demands, suits or causes of action, including all judgments, damages,
and costs (including reasonable attorneys' fees) resulting therefrom, arising
out of the use, manufacture, sale, storage or advertising of any Licensed
Product.

11.2.  Export Administration Regulations Duties of the Company.  The Company
       -------------------------------------------------------
acknowledges that it has certain duties and obligations under Part 379 of the
Export Administration Regulations of the U.S. Department of Commerce (as
presently promulgated or hereafter modified or amended) concerning the export
and re-export of technical data. The Company will be solely responsible for any
breach of such Regulations by the Company, its Affiliates or sublicensees and
will defend and hold the Licensor and KUMC harmless in the event of a suit or
action involving the Licensor, KUMC occasioned by any such breach.

11.3.  General and Product Liability Insurance. The Company shall be responsible
       ---------------------------------------
for maintaining reasonable product liability insurance coverage applicable to
the Licensed Product in accordance with the standard business practices of the
Company.
<PAGE>

                          Exclusive License Agreement
                                    Page 12

                           Article 12. Miscellaneous

12.1.   Assignment. This License Agreement may not be assigned or otherwise
        ------------
transferred by any party without the consent of the other parties; provided,
however, that, without such consent, (i) the Company may assign its rights and
obligations under this License Agreement in connection with a merger,
consolidation or sale of substantially all of such party's assets to which this
License Agreement relates, and (ii) the Licensor may assign its rights and
obligations under this License Agreement to an Affiliate of the Licensor.

12.2 Force Majeure. In the event that further lawful performance of this
     -------------
Agreement or any part hereof by either party shall be rendered impossible by or
as a consequence of any law, regulation, order, rule, direction, priority,
seizure, allocation, requisition, or any other official action by any
department, bureau, board, administration or other instrumentality or agency or
any government or political subdivision thereof having jurisdiction over such
party, such party shall not be considered in default hereunder by reason of any
failure to perform occasioned thereby.

12.2.  Consent   Neither party shall unreasonably withhold its consent or
       -------
agreement when such consent or agreement is required hereunder or is requested
in good faith by the other party hereunder.

12.3   Notices.   All notices to be given by each party to the other shall be
       ---------
made in writing by Registered or Certified Mail, return receipt requested, and
addressed, respectively, to the parties at the following:

               The University of Kansas Medical Center Research Institute, Inc.
                           Attn.: K. M. A. Welch, M.D., President
                                  3901 Rainbow Boulevard
                                  Kansas City, KS 66160-7702
               and
               ---
                           Attn.: Ann Victoria Thomas, Esq.
                                  Office of General Counsel
                                  University of Kansas
                                  Lawrence, KS 66045
<PAGE>

                          Exclusive License Agreement
                                    Page 13

               Conway Stuart Medical, Inc.
                        735 Palomar Avenue
                         Sunnyvale, CA 94086
                         Attn.: John W. Morgan
                         President and CEO
               and
               ---
                    Attn: Daniel D. Ryan, Ryan Kromholz & Manion, S.C.
                          P.O. Box 26618
                          Milwaukee, WI 53226-0618

Any notice shall be effective as of its date of receipt.

12.4.  Entire Agreement.  This Agreement constitutes the entire agreement
       ----------------
between the parties and supersedes all written or oral prior agreements or
understandings. No variation or modification of the terms or provisions of this
Agreement shall be valid unless in writing and signed by the parties hereto.

12.5.  Waiver.  Waiver by the Company or the Licensor of any single default or
       ------
breach or succession of defaults or breaches by the other shall not deprive the
other party of any right to terminate this Agreement arising out of any
subsequent default or breach.

12.6.  Choice of Law. All matters affecting the interpretation, validity, and
       -------------
performance of this Agreement shall be governed by the laws of Kansas
applicable to agreements made and to be performed wholly within Kansas, but the
scope and validity of Patent Rights shall be governed by the applicable laws of
the country granting the patent in question.

12.7.  Captions. The captions herein are solely for convenience of reference and
       --------
shall not affect the construction or interpretation of this Agreement.

12.9   Independent Contractors. It is expressly agreed that the Licensor and the
       -----------------------
Company shall be independent contractors and that the relationship between the
parties shall not constitute a partnership, joint venture or agency. Neither the
Licensors nor the Company shall have the authority to make any statements,
representations or commitments of any kind, or to take any action, which shall
be binding on the other, without the prior consent of the other party to do so.
<PAGE>

                          Exclusive License Agreement
                                    Page 14

12.10   Counterparts. This License Agreement may be executed in two or more
        ------------
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties have executed this License Agreement as of
the Effective Date set forth above.

 University of Kansas Medical Center Research     Conway Stuart Medical, Inc.
 Institute

 By:  /s/ K.M.A. Welch, M.D.                      By:  /s/ John W. Morgan
    ________________________                          _____________________
 Name: K.M.A. Welch, M.D.                         Name: John W. Morgan
 Title: President                                 Title: President and Chief
                                                         Executive Officer
 Date:  02/04/00                                  Date:  02/01/00
<PAGE>

                          Exclusive License Agreement
                                    Page 15

                         EXHIBIT A TO LICENSE AGREEMENT

                         LISTING OF BASIC PATENT RIGHTS

United States Patent No. 5,057,105

United States Patent No. RE 35,330

Australian Patent No.  633358

Canadian Patent No. 2,065,261

European Regional Patent No. 489,814 (in effect in Germany, France, Great
Britain, Italy)
<PAGE>

                          Exclusive License Agreement
                                    Page 16

                         EXHIBIT B TO LICENSE AGREEMENT

                            STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement is made this 1st day of February, 2000,
between Conway Stuart Medical, Inc., a Delaware corporation (the "Company") and
University of Kansas Medical Center Research Institute, Inc., a non-profit
501(3) (c) corporation of Kansas, which is an agent for the University of Kansas
Medical Center (the "Purchaser").

     WHEREAS the Company and the Purchaser have entered into a license agreement
under which the Purchaser is licensing technology relating to United States
Patent No. 5,057,105, which is controlled by the Purchaser (the "License
Agreement"), into which License Agreement this Stock Purchase Agreement is
incorporated as Exhibit B; and

     WHEREAS, as part of the consideration for the License Agreement, the
Company is willing to issue to the Purchaser 100,000 shares of Common Stock of
the Company according to the terms and conditions hereof.

     THEREFORE, the parties agree as follows:

1.   Sale of Stock.  The Company hereby agrees to issue to the Purchaser an
     -------------
aggregate of 100,000 shares of the Company's Common Stock (the "Shares"), at the
price of $0.35 per share for an aggregate purchase price of $35,000.

2.   Payment of Purchase Price.  The purchase price for the Shares shall be paid
     -------------------------
by the license of technology to the Company pursuant to the License Agreement.

3.   Issuance of Shares.  The Company shall issue a duly executed certificate
     ------------------
evidencing the Shares in the name of the Purchaser.

4.   Legends.  The share certificate evidencing the Shares issued hereunder
     -------
shall be endorsed with the following legends:

(a) THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.
NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF
<PAGE>

                          Exclusive License Agreement
                                    Page 17

COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER
THE SECURITIES ACT OF 1933.

(b) THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE TRANSFERRED ONLY IN
ACCORDANCE WITH THE TERMS OF A STOCK PURCHASE AGREEMENT BETWEEN THE COMPANY AND
THE STOCKHOLDER, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY.

(c) Any legend required to be placed thereon by the California Commissioner of
Corporations or any other applicable state securities laws.

5.   Investment Representations; Restriction on Transfer.
     ---------------------------------------------------

(a)  In connection with the purchase of the Shares, the Purchaser represents to
the Company the following:

     (i)  Purchaser is aware of the Company's business affairs and financial
     condition and has acquired sufficient information about the Company to
     reach an informed and knowledgeable decision to acquire the securities.
     Purchaser is purchasing these securities for investment for his own account
     only and not with a view to, or for resale in connection with, any
     "distribution" thereof within the meaning of the Securities Act of 1933
     (the "Securities Act").

     (ii)  Purchaser understands that the securities have not been registered
     under the Securities Act by reason of a specific exemption therefrom, which
     exemption depends upon, among other things, the bona fide nature of his
     investment intent as expressed herein. In this connection, Purchaser
     understands that, in view of the Securities and Exchange Commission
     ("Commission"), the statutory basis for such exemption may not be present
     if his representations meant that his present intention was to hold these
     securities for a minimum capital gains period under the tax statutes, for a
     deferred sale, for a market rise, for a sale if the market does not rise,
     or for a year or any other fixed period in the future.

     (iii)  Purchaser further acknowledges and understands that the securities
     must be held indefinitely unless they are subsequently registered under the
     Securities Act or an exemption from such registration is available.
     Purchaser further acknowledges and understands that the Company is under no
     obligation to register the securities.  Purchaser understands that the
     certificate evidencing the securities will be imprinted with a legend that
     prohibits the transfer
<PAGE>

                          Exclusive License Agreement
                                    Page 18

     of the securities unless they are registered or such registration is not
     required in the opinion of counsel for the Company.

     (iv)  Purchaser is aware of the adoption of Rule 144 by the Commission,
     promulgated under the Securities Act, which permits limited public resale
     of securities acquired in a non-public offering subject to the satisfaction
     of certain conditions.

     (v)  Purchaser further acknowledges that in the event all of the
     requirements of Rule 144 are not met, compliance with Regulation A or some
     other registration exemption will be required; and that although Rule 144
     is not exclusive, the staff of the Commission has expressed its opinion
     that persons proposing to sell private placement securities other than in a
     registered offering and other than pursuant to Rule 144 will have a
     substantial burden of proof in establishing that an exemption from
     registration is available for such offers or sales and that such persons
     and the brokers who participate in the transactions do so at their own
     risk.

(b) The Purchaser agrees, in connection with the Company's initial public
offering of the Company's securities, (i) not to sell, make short sales of,
loan, grant any options for the purchase of, or otherwise dispose of any shares
of Common Stock of the Company held by the Purchaser (other than those shares
included in the registration) without the prior written consent of the Company
or the underwriters managing such initial underwritten public offering of the
Company's securities for one hundred eighty (180) days from the effective date
of such registration and (ii) further agrees to execute any agreement reflecting
(i) above as may be reasonably requested by the underwriters at the time of the
public offering.

6.   Adjustment for Stock Split.  All references to the number of Shares and the
     --------------------------
purchase price of the Shares in this Stock Purchase Agreement shall be
appropriately adjusted to reflect any stock split, stock dividend or other
change in the Shares that may be made by the Company after the date of this
Stock Purchase Agreement.

7.   General Provisions.
     ------------------
(a)  This Stock Purchase Agreement shall be governed by the internal laws of the
     State of Kansas. This Stock Purchase Agreement represents the entire
     agreement between the parties with respect to the purchase of Common Stock
     by the Purchaser, may only be modified or amended in writing signed by both
     parties and satisfies all of the Company's obligations to the Purchaser
     with regard to the issuance or sale of securities.
<PAGE>

                          Exclusive License Agreement
                                    Page 19

(b)  Any notice, demand or request required or permitted to be given by either
     the Company or the Purchaser pursuant to the terms of this Stock Purchase
     Agreement shall be in writing and shall be deemed given when delivered
     personally or deposited in the U.S. mail, First Class with postage prepaid,
     and addressed to the parties at the addresses of the parties set forth at
     the end of this Stock Purchase Agreement or such other address as a party
     may request by notifying the other in writing.

(c)  The rights and benefits of the Company under this Stock Purchase Agreement
     shall be transferable to any one or more persons or entities, and all
     covenants and agreements hereunder shall inure to the benefit of, and be
     enforceable by the Company's successors and assigns. The rights and
     obligations of the Purchaser under this Stock Purchase Agreement may only
     be assigned with the prior written consent of the Company, which consent
     may not be unreasonably withheld.

(d)  Either party's failure to enforce any provision or provisions of this Stock
     Purchase Agreement shall not in any way be construed as a waiver of any
     such provision or provisions, nor prevent that party thereafter from
     enforcing each and every other provision of this Stock Purchase Agreement.
     The rights granted both parties herein are cumulative and shall not
     constitute a waiver of either party's right to assert all other legal
     remedies available to it under the circumstances.

(e)  The Purchaser agrees upon request to execute any further documents or
     instruments reasonably necessary or desirable to carry out the purposes or
     intent of this Stock Purchase Agreement.

(f)  The Purchaser understands that Purchaser (and not the Company) shall be
     responsible for his own federal, state, local or foreign tax liability and
     any of Purchaser's other tax consequences that may arise as a result of the
     transactions contemplated by this Stock Purchase Agreement. The Purchaser
     shall rely solely on the determinations of Purchaser's tax advisors or
     Purchaser's own determinations, and not on any statements or
     representations by the Company or any of its agents, with regard to all
     such tax matters.

(g)  Sale of the securities which are the subject of this Stock Purchase
     Agreement has not been qualified with the Commissioner of Corporations of
     the State of California and the issuance of such securities or the payment
     or receipt of any part of the consideration therefor prior to such
     qualification is unlawful, unless the sale of securities is exempt from the
     qualification by Section 25100, 25102, or 25105 of the California
     Corporations Code. The rights of all parties to this Stock Purchase
     Agreement are expressly conditioned upon such qualification being obtained,
     unless the sale is so exempt.
<PAGE>

                          Exclusive License Agreement
                                    Page 20

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

 University of Kansas Medical Center Research        Conway Stuart Medical, Inc.
 Institute

 By:  /s/ K.M.A. Welch, M.D.                       By:   /s/ John W. Morgan
    ________________________                          ______________________
 Name: K.M.A. Welch, M.D.                          Name: John W. Morgan
 Title: President                                  Title: President and Chief
                                                          Executive Officer
 Date:  [undated]                                  Date:  02/01/00

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