Document:

<PAGE>
                                                                    EXHIBIT 10.5

                    LICENCE AGREEMENT (CASE#[*** Redacted])

                                    Between

                    President and Fellows of Harvard College

                                      And

                                 NanoSys, Inc.

               Effective as of October 4, 2001 ("Effective Date")
                        Re: Harvard Case#[*** Redacted]

         In consideration of the mutual promises and covenants set forth below,
         the parties hereto agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

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

1.1      ACADEMIC RESEARCH PURPOSE: use of PATENT RIGHTS solely for academic
         non-commercial research or other non-for-profit scholarly purposes,
         which use in undertaken at a non-profit or governmental institution.
         ACADEMIC RESEARCH PURPOSES does not include selling products covered by
         PATENT RIGHTS or using PATENT RIGHTS in researching, developing,
         producing or manufacturing products for sale, or performance of
         services a free or other financial consideration. It is understood that
         using the PATENT RIGHTS to conduct normal research activities at
         non-profit or governmental institution is within the defined term of
         ACADEMIC RESEARCH PURPOSE.

1.2      AFFILIATE: any entity which controls, is controlled by, or is under
         common control with a party. An entity shall be regarded as in control
         of another entity for purposes of this definition if it owns or control
         at least fifty percent (50%) of the shares entitled to vote in the
         election of directors (or in the case of an entity that is not a
         corporation, for the election of the corresponding managing authority).
         Unless otherwise specified, the term LICENSEE includes AFFILIATES.

1.3      FIELD: All fields of use.

1.4      HARVARD: President and Fellows of Harvard College, a nonprofit
         Massachusetts educational corporation having offices at the Office for
         Technology and Trademark

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.
<PAGE>

         Licensing, Holyoke Centre, Suite 727, 1350 Massachusetts Avenue,
         Cambridge, Massachusetts 02138.

1.5      LICENSED PROCESSES: methods, processes or procedures covered by at
         least one VALID CLAIM included within the PATENT RIGHTS.

1.6      LICENSED PRODUCTS: products covered by at least one VALID CLAIM
         included within the PATENT RIGHTS or products made in accordance with
         LICENSED PROCESSES.

1.7      LICENSEE: Nanosys, Inc., a corporation organized under the laws of
         Delaware having its principal offices at CW Group East, 1041 Third
         Avenue, New York, New York 10021.

1.8      NET SALES: [*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               2

<PAGE>
         [*** Redacted]

1.9      PATENT RIGHTS: PATENT RIGHTS shall include (i) the applications and
         patents as listed in Appendix A of this Agreement, (ii) any foreign
         counterparts to such patents and patent applications, (iii) the
         inventions described and claimed in the foregoing, (iv) any divisions,
         continuations, substitution of the foregoing, and (v) specific claims
         of any continuations-in-part of the foregoing to the extent the
         specific claims are directed to subject matter described in the
         foregoing in a manner sufficient to support such specific claims under
         35 U.S.C. and to the extent Licensable by HARVARD, (vi) all patents
         issuing on any of the foregoing, and (vii) registrations, renewals,
         reissues, reexaminations, extensions or patents of addition of any kind
         with respect to any of such patents. For purposes of this Agreement
         "Licensable" shall mean those claims of continuations-in-parts filed
         after the Effective Date for which HARVARD has sole ownership (or has
         been granted the sole right to license by a co-owner) and where there
         are no obligations to grant licenses to a third party as the result of
         research support provided to one or more of the inventors.

1.10     SERVICES INCOME: [*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               3

<PAGE>
1.11     SUBLICENSE INCOME: [*** Redacted]

1.12     TERRITORY: Worldwide.

1.13     VALID CLAIM: either (i) a claim of an issued patent that has not
         expired or been held unenforceable or invalid by an agency or a court
         of competent jurisdiction, and which has not been admitted to be
         invalid or unenforceable through reissue, disclaimer or otherwise;
         provided, however, that if the holding of such court or agency is later
         reversed by a court or agency with overriding authority, the claim
         shall be reinstated as a Valid Claim with respect to Net Sales made
         after the date of such reversal, of (ii) a claim of a pending patent
         application that has not been abandoned or finally rejected without the
         possibility of appeal or re-filing and that has been pending for less
         than five (5) years from its priority date, and is being actively
         prosecuted in good faith.

1.14     The terms "Public Law 96-517" and "Public Law 98-620" include all
         amendments to those statutes.

1.15     The terms "sold" and "sell" include, without limitation, leases and
         other dispositions and similar transactions.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               4
<PAGE>

1.16     RELATED LICENSE AGREEMENTS: Other patent license agreements between
         LICENSEE and HARVARD licensing patent rights known internally at
         HARVARD as Case [*** Redacted] to LICENSEE.

1.17     R&D SPENDING, MINIMUM INVESTMENT: shall have the meanings as set forth
         in Section 4.5.

1.18     DEVELOPMENT PAYMENT: [*** Redacted]

                                   ARTICLE II
                                    RECITALS

2.1      HARVARD is owner (or HARVARD will be owner) by assignment from
         [*** Redacted] of their entire right, title and interest in United
         States Patents [*** Redacted], issued [*** Redacted] and [*** Redacted]
         issued [*** Redacted] entitled [*** Redacted] (Harvard Case
         [*** Redacted]), in the foreign patent applications corresponding
         thereto, and in the inventions described and claimed therein.

2.2      HARVARD has the authority to issue license under PATENT RIGHTS.

2.3      HARVARD is committed to the policy that ideas or creative works
         produced at HARVARD should be used for the greatest possible public
         benefit, and believes that every reasonable incentive should be
         provided for the prompt introduction of such ideas into public use, all
         in a manner consistent with the public interest.

2.4      LICENSEE intends to use commercially reasonable efforts to develop the
         invention(s), and to bring to market at least one product falling
         within the definition of LICENSED PRODUCT or otherwise embodying the
         subject matter described or claimed in the patents rights licensed
         under such agreements.

2.5      LICENSEE is desirous of obtaining an exclusive license in the TERRITORY
         in order to practice the above-referenced in invention covered by
         PATENT RIGHTS in the United States and in certain foreign countries,
         and to manufacture, use and sell in the commercial market the products
         made in accordance therewith, and HARVARD is desirous of granting such
         a license to LICENSEE in accordance with the terms of this Agreement.

                                  ARTICLE III
                                GRANT OF RIGHTS

3.1      HARVARD hereby grants to LICENSEE and LICENSEE accepts, subject to the
         terms and conditions hereof, an exclusive (except as set forth in
         Sections 3.2(a) and 3.2(b) license under PATENT RIGHTS in the TERRITORY
         and in the FIELD (i) to make and have made, to use and have used, to
         sell and have sold, to offer for sale, import, export, or

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               5

<PAGE>
         otherwise distribute the LICENSED PRODUCTS, (ii) to practice the
         LICENSED PROCESSES, and (iii) to otherwise fully exploit the PATENT
         RIGHTS, and (iv) to have the foregoing performed on behalf of LICENSEE
         by a third party, in each case for the life of the PATENT RIGHTS. The
         foregoing license under PATENT RIGHTS shall include the full right to
         grant sublicenses, and LICENSEE shall promptly provide copies of any
         sublicenses of PATENT RIGHTS to HARVARD for its review. Unless HARVARD
         has rendered the license under PATENT RIGHTS non-exclusive under
         Section 3.2 (d), HARVARD agrees that it will not grant licenses under
         PATENT RIGHTS to others, nor make, use, sell, offer for sale, import or
         otherwise exploit PATENT RIGHTS itself except as required by HARVARD's
         obligations in Section 3.2 (a) or as permitted in Section 3.2 (b).

3.2      The granting and exercise of this license is subject to the following
         conditions:

         (a)      HARVARD's "Statement of Policy in Regard to Inventions,
                  Patents and Copyrights," dated August 10, 1998, Public Law
                  96-517 and Public Law 98-620, and HARVARD's obligations under
                  prior or current agreements with other sponsors of research
                  and, with regard to continuations-in-part. contained in the
                  PATENT RIGHTS, any future agreements with other sponsors of
                  research related to such continuations-in-part. Any right
                  granted in this Agreement greater than that permitted under
                  Public Law 96-517, or Public Law 98-620, shall be subject to
                  modification to the extent required to conform to the
                  provisions of those status.

         (b)      HARVARD reserves the right to make and use, and grant to other
                  non-profit or governmental institutions non-exclusive licenses
                  to make and use, in each case solely for ACADEMIC RESEARCH
                  PURPOSES the subject matter described and claimed in PATENT
                  RIGHTS. HARVARD shall promptly notify LICENSEE of any rights
                  granted to any third party (other than the U.S. government)
                  under Sections 3.2(a) and (b).

         (c)      LICENSEE shall use commercially reasonable efforts to effect
                  introduction into the commercial market at least [***
                  Redacted] falling within the definition of LICENSED PRODUCT or
                  otherwise embodying the subject matter described or claimed in
                  PATENT RIGHTS, consistent with sound and reasonable business
                  practice and judgment; thereafter, until the expiration of
                  this Agreement, LICENSEE shall use commercially reasonable
                  efforts to endeavor to keep any [*** Redacted] reasonably
                  available to the public so long as it shall be a sound and
                  reasonable commercial practice to do so.

         (d)      At any time after [*** Redacted] from the effective date of
                  this Agreement, HARVARD may render this license non-exclusive
                  if LICENSEE has not:

                  (i)               used commercially reasonable efforts to put
                           the licensed subject matter into commercial use in
                           one or more of the countries hereby licensed,
                           directly or through a sublicense; nor

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               6

<PAGE>

                  (ii)              used commercially reasonable efforts to keep
                           products falling within the definition of LICENSED
                           PRODUCT or otherwise embodying the subject matter
                           described or claimed in PATENT RIGHTS reasonably
                           available to the public so long as it shall be a
                           sound and reasonable commercial practice to do so;
                           nor

                  (iii)             engaged in research, development,
                           manufacturing, marketing or sublicensing activity
                           that is commercially reasonably appropriate to
                           achieving Section 3.2(d)(i) or 3.2(d)(ii).

                  LICENSEE shall be deemed to have satisfied Section
                  3.2(d)(iii), and HARVARD shall not render the license of
                  PATENT RIGHTS granted hereunder non-exclusive, if LICENSEE'S
                  R&D SPENDING exceeds the MINIMUM INVESTMENT for such year as
                  set forth in Section 4.5.

         (e)      In all sublicenses granted by LICENSEE hereunder, LICENSEE
                  shall include a requirement that the sublicensee use
                  commercially reasonable efforts to put the subject matter of
                  the sublicense into commercial use, provided that such
                  sublicensee is authorized to develop and sell to the public a
                  [*** Redacted] covered by PATENT RIGHTS on its own behalf.
                  LICENSEE shall further provide that such sublicenses are
                  subject and subordinate to the terms and conditions of this
                  Agreement, except for the [*** Redacted] paid by such
                  sublicensee to the LICENSEE. Copies of all sublicense
                  agreements hereunder shall be provided promptly to HARVARD.
                  All sublicense agreements of LICENSEE provided to HARVARD
                  shall deemed Confidential Information of LICENSEE subject to
                  Section 11.1.

         (f)      At any time [*** Redacted] years after the effective date of
                  this Agreement, if LICENSEE is unable or unwilling to grant
                  sublicenses, either [*** Redacted] by HARVARD or [***
                  Redacted] or otherwise, then HARVARD may directly license such
                  [*** Redacted], but only if: (i) LICENSEE is not currently
                  pursuing development of LICENSED PRODUCTS for the same
                  application as contemplated by the potential sublicensee, or
                  LICENSEE commits to do so within a [*** Redacted] period, (ii)
                  the granting of such a license by HARVARD to the potential
                  sublicensee will increase the availability of useful products
                  to the public, (iii) the granting of such license by HARVARD
                  will not materially adversely affect LICENSEE'S then current
                  business or reasonably foreseeable future business (e.g., such
                  license is not intended for an application competitive with
                  LICENSEE) and (iv) HARVARD notifies LICENSEE of its intention
                  to grant such license and permits LICENSEE a reasonable period
                  to negotiate a sublicense on its own.

         (g)      To the extent required by law, during the period of
                  exclusivity of this license in the United States, LICENSEE
                  shall cause any LICENSED PRODUCT produced for sale in the
                  United States to be manufactured substantially in the United
                  States.

3.3      All rights reserved to the United States Government and others under
         Public Law 96-517, and Public Law 98-620, shall remain and shall in no
         way be affected by this Agreement.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               7

<PAGE>

3.4      HARVARD shall promptly notify LICENSEE when any new patent or patent
         application arises from (i) research conducted in the laboratory of
         [*** Redacted], or (ii) improvements made by HARVARD [*** Redacted] on
         the subject matter described in PATENT RIGHTS. If LICENSEE so requests
         and the intellectual property is available for licensing, HARVARD will
         evaluate in good faith LICENSEE'S proposal along with proposals
         received from any third parties. Any decision to grant a license to
         LICENSEE shall be subject to approval by HARVARD'S Committee on Patents
         and Copyrights. In the event LICENSEE and HARVARD cannot agree on terms
         for a license to any new intellectual property which is dominated by
         PATENT RIGHTS, HARVARD shall not offer any third party terms more
         favorable than the terms offered to LICENSEE.

                                   ARTICLE IV
                                    ROYALTIES

4.1      LICENSEE shall pay to HARVARD a non-refundable license royalty fee in
         the sum of [*** Redacted] dollars ($[*** Redacted]) upon execution of
         this Agreement.

4.2      As consideration for the rights granted hereunder, LICENSEE shall pay
         to HARVARD a non-refundable fee in the form of stock of LICENSEE as
         follows:

                  (i)     LICENSEE shall issue to HARVARD [*** Redacted]
                          ([*** Redacted]) fully vested shares, at a price per
                          share of $0.001 per share and an aggregate value of
                          $[*** Redacted] of LICENSEE'S common stock which
                          represent [*** Redacted] percent ([*** Redacted]%) of
                          the reserved shares for founders (total [*** Redacted]
                          shares) shown on the capitalization table of LICENSEE
                          attached as Appendix B ("Shares") upon execution of
                          this Agreement, provided, however, that HARVARD shall
                          be subject to and enter into (1) appropriate
                          agreements and related documents as required of other
                          stockholders of LICENSEE, including without limitation
                          a Common Stock Purchase Agreement, and (2) a Voting
                          Agreement by and among the LICENSEE, HARVARD and
                          certain other holders of common stock of LICENSEE
                          dated as of even date hereof.

                  (ii)     HARVARD'S ownership rights to Shares shall not be
                           affected should the license pursuant to this
                           Agreement be terminated by LICENSEE or HARVARD.

4.3(a)   LICENSEE shall pay to HARVARD during the term of this Agreement a
         royalty on NET SALES by LICENSEE according to the following schedule:

                  (i)      [*** Redacted]% of NET SALES by LICENSEE in [***
                           Redacted] applications;

                  (ii)     [*** Redacted]% of NET SALES by LICENSEE in [***
                           Redacted] applications; or

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               8

<PAGE>

                  (iii)    [*** Redacted]% of NET SALES by LICENSEE in [***
                  Redacted] applications.

                  In the event, any NET SALES by LICENSEE reasonably falls
                  within more than one of categories (i) to (iii) above,
                  LICENSEE shall pay to HARVARD the lowest applicable royalty
                  set forth in such categories.

         (b)      For each LICENSED PRODUCT sold by LICENSEE, LICENSEE may
                  credit up to [*** Redacted] ([*** Redacted]) of royalties that
                  LICENSEE is paying to third parties (or HARVARD under
                  agreements not included within section 4.3(c)) on LICENSEE'S
                  sales of that LICENSED PRODUCT, provided that the royalty paid
                  to HARVARD shall not be reduced below [*** Redacted] percent
                  ([*** Redacted]%) of the NET SALES of that LICENSED PRODUCT
                  for which such third party royalties are being paid.

         (c)      In the event that sales of a LICENSED PRODUCT are subject to
                  the payment of royalties under one or more of the RELATED
                  LICENSE AGREEMENTS or any license agreements with HARVARD with
                  the same effective date as this Agreement, then the total
                  royalty payment due HARVARD under all such agreements
                  including this Agreement shall be at most the royalty payment
                  due under this Section 4.3 on such NET SALE, no matter how
                  many license agreements from HARVARD are involved, and
                  notwithstanding the terms of any such agreement. LICENSEE
                  shall notify HARVARD of the identity of each license agreement
                  that includes patent rights covering the product or process,
                  and HARVARD shall distribute the royalties evenly among such
                  agreements, including this Agreement.

         (d)      LICENSEE shall pay HARVARD [*** Redacted] percent ([***
                  Redacted]%) of SUBLICENSE INCOME received by LICENSEE for a
                  sublicense of PATENT RIGHTS. If compensation for such a
                  sublicense of PATENT RIGHTS is bundled with compensation
                  received for the sublicensing of the other HARVARD patents
                  rights or other HARVARD intellectual property licensed to
                  LICENSEE under the RELATED LICENSE AGREEMENTS or any
                  agreements with HARVARD having the same effective date as this
                  Agreement, then LICENSEE shall pay HARVARD at most the royalty
                  payment due under this Section 4.3(d) for such SUBLICENSE
                  INCOME no matter how many license agreements from HARVARD are
                  involved, and notwithstanding the terms of any such license
                  agreements. In such a case, LICENSEE shall notify HARVARD of
                  the identity of each license agreement involved and HARVARD
                  shall distribute the royalties equally among those license
                  agreements, including this Agreement.

         (e)      For provision of services under PATENT RIGHTS, LICENSEE shall
                  pay a royalty of [*** Redacted] percent ([*** Redacted]%) of
                  SERVICE INCOME received by LICENSEE from each and every third
                  party ("Third Party") to whom LICENSEE provides such services.
                  In the event any services from which SERVICE INCOME is derived
                  are subject to the payment of royalties under the RELATED
                  LICENSE AGREEMENTS or any agreement with HARVARD having the
                  same effective date as this Agreement, then the total royalty
                  due under all such agreements, including this Agreement, shall
                  be at most the royalty

         *** Confidential treatment requested pursuant to a request for
         confidential treatment filed with the Securities and Exchange
         Commission. Omitted portions have been filed separately with the
         Commission.

                                                                               9

<PAGE>

                  payment due under this Section 4.3 on such services, no matter
                  how many license agreements from HARVARD are involved, and
                  notwithstanding the terms of any such license agreements. In
                  such event, LICENSEE shall notify HARVARD of the identity of
                  each license agreement involved and HARVARD shall distribute
                  the royalties equally among those license agreements,
                  including this Agreement.

         (f)      If the license pursuant to this Agreement is converted to a
                  non-exclusive one under Section 3.2(d) and if another
                  non-exclusive license to any of PATENT RIGHTS is granted or
                  otherwise exists for any field or territory, then the royalty
                  rate of this Agreement shall be adjusted so as not to exceed
                  the royalty rate payable by such other non-exclusive licensee
                  under such PATENT RIGHTS in such field or territory, provided
                  that LICENSEE agrees to amend this Agreement to include terms
                  requested by HARVARD that have been accepted by such other
                  non-exclusive licensee.

         (g)      On sales between LICENSEE and its AFFILIATES for resale, the
                  royalty shall be paid on the NET SALES of the AFFILIATE.

         (h)      In the event that more than one VALID CLAIM within PATENT
                  RIGHTS is applicable to any LICENSED PRODUCT subject to
                  royalties under this Section 4.3, then only one royalty shall
                  be paid to HARVARD in respect of such LICENSED PRODUCT. In no
                  event shall more than one royalty be due to HARVARD with
                  respect to any LICENSED PRODUCT unit; nor shall a royalty be
                  payable under this Section 4.3 with respect to sales of
                  LICENSED PRODUCTS for clinical trials or as samples nor the
                  use of LICENSED PRODUCTS or LICENSED PROCESSES by LICENSEE for
                  such purposes, in each case whether or not in collaboration
                  with a third party.

4.4      No later than January 1 of each calendar year after the effective date
         of this Agreement, LICENSEE shall pay to HARVARD the following
         non-refundable license maintenance royalty and/or advance on royalties.
         Such payments may be credited against running royalties due for that
         calendar year and Royalty Reports shall reflect such a credit. Such
         payments shall not be credited against milestone payments (if any) nor
         against royalties due for any subsequent calendar year.

                  January 1, 2002           $[*** Redacted]
                  January 1, 2003           $[*** Redacted]
                  January 1, 2004           $[*** Redacted]
                  January 1, 2005           $[*** Redacted]
                  January 1, 2006           $[*** Redacted]
                  January 1, 2007           $[*** Redacted]
                  each year thereafter      $[*** Redacted]

4.5      Notwithstanding Section 4.4, the minimum royalty set forth in Section
         4.4 for the years 2002, 2003, and 2004 will be waived if LICENSEE'S
         spending on research and development (LICENSEE'S "R&D SPENDING")
         exceeds the amount set forth below for each category for such year
         (such amounts below, the "MINIMUM INVESTMENT").

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              10

<PAGE>

<TABLE>
<CAPTION>
                          CHEMICAL AND
                        BIOLOGICAL SENSOR    OPTOELECTRONICS    NANOELECTRONICS
                          APPLICATIONS         APPLICATIONS       APPLICATIONS
                        -----------------    ---------------    ---------------
<S>                     <C>                  <C>                <C>
Year 2002:              $  [*** Redacted]     [*** Redacted]     [*** Redacted]
Year 2003:              $  [*** Redacted]     [*** Redacted]     [*** Redacted]
Year 2004:              $  [*** Redacted]     [*** Redacted]     [*** Redacted]
Year 2005               $  [*** Redacted]     [*** Redacted]     [*** Redacted]
Year 2006               $  [*** Redacted]     [*** Redacted]     [*** Redacted]
Each Year Thereafter    $  [*** Redacted]     [*** Redacted]     [*** Redacted]
</TABLE>

         LICENSEE'S MINIMUM INVESTMENT may be allocated by LICENSEE in any way
         within the three categories set forth above among the different subject
         matter of the RELATED LICENSE AGREEMENTS.

                                    ARTICLE V
                                    REPORTING

5.1      Within [*** Redacted] of the Effective Date, LICENSEE will provide to
         HARVARD a written research and development plan acceptable to
         LICENSEE'S investors under which LICENSEE intends to bring the subject
         matter of the licenses granted hereunder into commercial use upon
         execution of this Agreement. Such plan will include projections of
         sales and proposed marketing efforts. It is understood that LICENSEE
         may provide one research and development plan for all RELATED LICENSE
         AGREEMENTS.

5.2      No later than [*** Redacted] days after [*** Redacted] of each
         [*** Redacted], LICENSEE shall provide to HARVARD a written annual
         Progress Report describing progress on the commercialization of
         PATENT RIGHTS during the most recent [*** Redacted] period ending
         [*** Redacted], the amount of LICENSEE'S R&D SPENDING relating to the
         subject matter described or claimed in PATENT RIGHTS during such time,
         and plans for the forthcoming year. If multiple technologies are
         covered by the license granted hereunder, the Progress Report shall
         provide the information set forth above for each technology. If
         progress differs from that anticipated in the plan required under
         Section 5.1, LICENSEE shall explain the reasons for the difference and,
         if appropriate or necessary, provide a modified research and
         development plan for HARVARD'S review. It is understood that LICENSEE
         may provide one Progress Report covering all RELATED LICENSE
         AGREEMENTS.

5.3      LICENSEE shall report to HARVARD the date of its first NET SALE of a
         LICENSED PRODUCT (or the date of its first use of a LICENSED PROCESS
         from which SERVICE INCOME is derived) in each country within [***
         Redacted] days of occurrence. It is understood that LICENSEE shall be
         obligated to report the date of first sale of LICENSED PRODUCTS (or the
         first commercial use of LICENSED PROCESSES) under this Section 5.3 only
         once for each country.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              11

<PAGE>

5.4       (a) LICENSEE shall submit to HARVARD within [*** Redacted] days after
          each calendar [*** Redacted] ending [*** Redacted], a Royalty Report
          setting forth, for the most recent [*** Redacted] that ended on [***
          Redacted] or [*** Redacted], at least the following information:

                  (i)      the number and identification of LICENSED PRODUCTS
                           sold by LICENSEE that constitute a NET SALE, in each
                           country;

                  (ii)     total amounts received for such LICENSED PRODUCTS;

                  (iii)    an accounting for all LICENSED PROCESSES used or
                           sold;

                  (iv)     deductions applicable to determine the NET SALES
                           thereof;

                  (v)      the amount of SUBLICENSE INCOME received by LICENSEE;

                  (vi)     the amount of SERVICE INCOME received by LICENSEE;
                           and

                  (vii)    the amount of royalty due for such reporting period,
                           or, if no royalties are due to HARVARD for such
                           reporting period, the statement that no royalties are
                           due.

                  Such report shall be certified as correct by an officer of
                  LICENSEE and shall include a listing of all deductions from
                  royalties. It is understood that LICENSEE may submit one
                  Royalty Report covering all RELATED LICENSE AGREEMENTS.
                  However, the Royalty Report shall, for each type of income,
                  provide a detailed listing of the RELATED LICENSE AGREEMENTS
                  that are involved.

         (b)      LICENSEE shall pay to HARVARD with each such Royalty Report
                  the amount of royalty due with respect to such [*** Redacted].
                  If multiple technologies are covered by the license granted
                  hereunder, LICENSEE shall specify which PATENT RIGHTS are
                  utilized for each category of LICENSED PRODUCTS and/or
                  LICENSED PROCESSES for which royalties are separately reported
                  in the Royalty Report.

         (c)      All payments due hereunder shall be deemed received when funds
                  are credited to HARVARD'S bank account and shall be payable by
                  check or wire transfer in United States dollars. Conversion of
                  foreign currency to U.S. dollars shall be made at the
                  conversion rate existing in the United States (as reported in
                  the New York Times or the Wall Street Journal) on the last
                  working day of each royalty period. No transfer, exchange,
                  collection or other charges shall be deducted from such
                  payments. If legal restrictions block the removal of local
                  currency from any country where a LICENSED PRODUCT is sold,
                  the royalties payable under this Agreement on NET SALES,
                  SERVICE INCOME and SUBLICENSING INCOME earned in such currency
                  in such country shall continue to be reported and accrued, but
                  will not be paid until such currency may be removed from such
                  country.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                       12

<PAGE>

         (d)      All plans or reports received under Sections 5.1, 5.2, 5.3,
                  5.4 shall deemed Confidential Information of LICENSEE subject
                  to Section 11.1; provided, however, that HARVARD may disclose
                  such information as required by law under Section 11.1 (b),
                  and may include in its usual reports the annual amounts of
                  royalties paid.

         (e)      Late payments shall be subject to a charge of [*** Redacted]
                  and [*** Redacted] percent [*** Redacted%] per month, or $[***
                  Redacted], whichever is greater.

5.5      In the event of acquisition, merger, change of corporate name, or
         change of make-up, organization, or identity, LICENSEE shall notify
         HARVARD in writing within [*** Redacted] days of such event.

5.6      If LICENSEE or any of its sublicensees does not qualify as a "small
         entity" as provided by the United States Patent and Trademark Office,
         LICENSEE must notify HARVARD immediately.

                                   ARTICLE VI
                                 RECORD KEEPING

6.1      LICENSEE shall keep accurate records (together with supporting
         documentation) of LICENSED PRODUCTS made, used or sold under this
         Agreement, sufficient to determine the amount of royalties due to
         HARVARD hereunder. Such records shall be retained for at least [***
         Redacted] years following the end of the reporting period to which they
         relate. They shall be available during normal business hours for
         examination, upon HARVARD'S reasonable request, not more than once in
         any [*** Redacted] month period and upon at least [*** Redacted] days
         prior notice, by an independent accountant under a duty of
         confidentiality, selected by HARVARD and reasonably acceptable to
         LICENSEE, for the sole purpose of verifying reports and payments under
         Section 5.4. In conducting examinations pursuant to this Section,
         HARVARD'S accountant shall have access to records materially relevant
         to the calculation of royalties under Article IV.

6.2      HARVARD'S accountant shall only disclose to HARVARD whether the reports
         and payments of royalties hereunder are accurate, and the amount of the
         underreporting or underpayment of royalties by LICENSEE, if any.

6.3      Such examination by HARVARD'S accountant shall be at HARVARD'S expense,
         except that if such examination shows an underreporting or underpayment
         in excess of [*** Redacted] percent ([*** Redacted]%) for any [***
         Redacted] month period, then LICENSEE shall pay the reasonable
         out-of-pocket cost of such examination as well as any additional sum
         that would have been payable to HARVARD had the LICENSEE reported
         correctly, plus interest on said sum at the rate of [*** Redacted]
         percent [*** Redacted] per month.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              13

<PAGE>

                                  ARTICLE VII
               DOMESTIC AND FOREIGN PATENT FILING AND MAINTENANCE

7.1      Within 30 days of the closing of LICENSEE'S sale of Series A Preferred
         Stock to venture capital investors, but not later than 60 days after
         the Effective Date, LICENSEE shall reimburse HARVARD for all reasonable
         out-of-pocket expenses HARVARD has incurred for the preparation,
         filing, prosecution and maintenance of PATENT RIGHTS, including for
         counseling with regard to such preparation, filing, prosecution and
         maintenance. Such expenses total [*** Redacted] as of the most recent
         invoice paid by HARVARD. Thereafter, LICENSEE shall reimburse HARVARD
         for all such future expenses upon receipt of quarterly invoices from
         HARVARD. Late payment of these invoices shall be subject to interest
         charges of [*** Redacted] percent ([*** Redacted]%) per month.

         HARVARD shall be responsible for the preparation, filing, prosecution
         and maintenance of any and all patent applications and patents included
         in PATENT RIGHTS. HARVARD will instruct counsel to directly notify
         HARVARD and LICENSEE and provide them copies of any communications to
         and from the United States and foreign patent offices relating to said
         prosecution, and drafts of all communications to the various patent
         offices, and will instruct counsel to consider any comments on such
         drafts, so that LICENSEE will be informed and apprised of the
         continuing prosecution of patent applications in PATENT RIGHTS.
         LICENSEE shall have reasonable opportunity to participate in decision
         making on key decisions affecting filing, prosecution and maintenance
         of patents and patent applications in PATENT RIGHTS.

7.2      HARVARD and LICENSEE shall cooperate fully in the preparation, filing,
         prosecution and maintenance of PATENT RIGHTS and of all patents and
         patent applications licensed to LICENSEE hereunder, executing all
         papers and instruments or requiring members of HARVARD to execute such
         papers and instruments so as to enable HARVARD to apply for, to
         prosecute and to maintain patent applications and patents in HARVARD'S
         name in any country. Each party shall provide to the other
         [*** Redacted] notice as to all matters which come to its attention and
         which may affect the preparation, filing, prosecution or maintenance of
         any such patent applications or patents. In particular, LICENSEE must
         immediately notify HARVARD if LICENSEE does not qualify as a "small
         entity" as provided by the United States Patent and Trademark Office.

7.3      LICENSEE may elect to surrender its rights to any patent or patent
         application within PATENT RIGHTS in any country upon [*** Redacted]
         days written notice to HARVARD. Such notice shall not relieve LICENSEE
         from responsibility to reimburse HARVARD for expenses under Section 7.1
         relating to the filing, prosecution or maintenance of such patent or
         patent application incurred prior to the receipt of the written notice
         by HARVARD (or a longer period if specified in LICENSEE'S notice).

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              14

<PAGE>

                                  ARTICLE VIII
                                  INFRINGEMENT

8.1      With respect to any PATENT RIGHTS that have not been rendered
         non-exclusive under Section 3.2(d), LICENSEE shall have the right to
         enforce in its own name and at its own expense any patents within such
         PATENT RIGHTS. HARVARD agrees to notify LICENSEE promptly of each
         infringement of such patents of which HARVARD is or becomes aware.

8.2      (a)      If LICENSEE elects to commence an action as described above,
                  HARVARD may, to the extent permitted by law, elect to join as
                  a party in that action. Regardless of whether HARVARD elects
                  to join as a party, HARVARD shall cooperate fully with
                  LICENSEE in connection with any such action, including making
                  available relevant personnel, information, records, papers,
                  samples, specimens and other similar materials for the
                  purposes of such action as reasonably requested by LICENSEE
                  through the Office of Technology and Trademark Licensing at
                  HARVARD.

         (b)      If HARVARD elects to join as a party pursuant to Subsection
                  (a), HARVARD shall jointly control the action with LICENSEE.

         (c)      LICENSEE shall reimburse HARVARD for any out-of-pocket costs
                  HARVARD reasonably incurs, including reasonable attorneys'
                  fees, as part of an action brought by LICENSEE under Section
                  8.1, whether or not HARVARD becomes a co-plaintiff.

8.3      If LICENSEE elects to commence an action as described above, LICENSEE
         may deduct from its [*** Redacted] to HARVARD with respect to the
         patent(s) subject to suit an amount not exceeding [*** Redacted]
         percent ([*** Redacted]%) of LICENSEE'S expenses and costs of such
         action, including reasonable attorneys' fees and reimbursement of
         amounts under Section 8.2(c) above; provided, however, that such
         reduction shall not exceed [*** Redacted] percent ([*** Redacted]%) of
         the [*** Redacted] due to HARVARD with respect to the patent(s) subject
         to suit for each calendar year. If such [*** Redacted] percent ([***
         Redacted]%) of LICENSEE'S expenses and costs exceeds the amount of
         [*** Redacted] deducted by LICENSEE for any calendar year, LICENSEE may
         to that extent reduce [*** Redacted] due to HARVARD from LICENSEE in
         succeeding calendar years, but never by more than [*** Redacted]
         percent ([*** Redacted]%) of the [*** Redacted] due in any [***
         Redacted] with respect to the patent(s) subject to suit.

8.4      Neither party may enter into a settlement, consent judgment or other
         voluntary final disposition of any suit under Section 8.1, 8.6, 8.7 and
         8.8 without the prior written consent of other party, which consent
         shall not be unreasonably withheld, if such settlement, consent
         judgment or other voluntary final disposition includes any admissions
         or statements about the validity or enforceability of PATENT RIGHTS.

8.5      Recoveries or reimbursements from actions commenced pursuant to this
         Article shall first be applied to reimburse LICENSEE and HARVARD for
         litigation costs not paid from royalties [*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              15

<PAGE>

         pursuant to Section 8.3. Any remaining recoveries or reimbursements
         shall be shared as follows: [*** Redacted]% to LICENSEE and [***
         Redacted]% to HARVARD.

8.6      If LICENSEE elects not to exercise its right to enforce the PATENT
         RIGHTS against any infringement pursuant to this Article, HARVARD may
         do so at its own expense, controlling such action and retaining all
         recoveries therefrom. LICENSEE shall cooperate fully with HARVARD in
         connection with any such action.

8.7      Without limiting the generality of Section 8.6, HARVARD may, at its
         election and by notice to LICENSEE, establish a time limit of [***
         Redacted] days for LICENSEE to decide whether to enforce the PATENT
         RIGHTS against any infringement of which HARVARD is or becomes aware.
         If, by the end of such [*** Redacted] day period, LICENSEE has not
         commenced such an action or taken reasonable efforts to settle such
         infringement, HARVARD may enforce the PATENT RIGHTS against such an
         infringement at its own expense, controlling such action and retaining
         all recoveries therefrom. Notwithstanding sections 8.6 and 8.7, HARVARD
         shall not bring any action alleging the infringement of PATENT RIGHTS
         against any sublicensee of LICENSEE under PATENT RIGHTS, without the
         consent of LICENSEE.

8.8      If a declaratory judgment action is brought naming LICENSEE as a
         defendant and alleging invalidity of any of the PATENT RIGHTS, if both
         parties agree, HARVARD may take over the sole defense of the action at
         its own expense. LICENSEE shall cooperate fully with HARVARD in
         connection with any such action.

8.9      If LICENSEE or any sublicensee, distributor or other customer is sued
         by a third party charging infringement of patent rights that dominate a
         claim of PATENT RIGHTS, with respect to the manufacture, use,
         distribution or sale of LICENSED PRODUCT or practice or use of a
         LICENSED PROCESS, LICENSEE will promptly notify HARVARD. As between the
         parties to this Agreement, LICENSEE will be entitled to control the
         defense in any such action(s) and withhold up to one-half (1/2) of the
         amounts otherwise payable to HARVARD hereunder to pay for defense
         costs, attorneys fees and any liability incurred in such infringement
         suit(s). If Licensee is required to pay a royalty or other amount to a
         third party as a result of a final judgment or settlement, the amounts
         payable to HARVARD hereunder will be reduced as provided in Section 4.3
         above.

                                   ARTICLE IX
                            TERMINATION OF AGREEMENT

9.1      This Agreement, unless terminated as provided herein, shall remain in
         effect until the last patent or patent application in PATENT RIGHTS has
         expired or been abandoned.

9.2      HARVARD may terminate this Agreement as follows:

         (a)      If LICENSEE does not make a payment due hereunder and fails to
                  cure such nonpayment (including the payment of interest in
                  accordance with Section 5.4(e)) within [*** Redacted] days
                  after the date of notice in writing of such non-payment by
                  HARVARD. If LICENSEE disputes the amount of such non-payment
                  in writing

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              16

<PAGE>
                  within such [*** Redacted] day period, HARVARD shall not have
                  the right to terminate this Agreement until it has been
                  determined in an arbitration proceeding under Section 11.10
                  below that LICENSEE has failed to pay amounts owed hereunder,
                  and thereafter Licensee does not cure such failure within [***
                  Redacted] days after such determination. This Section 9.2(a)
                  shall not, however, suspend any obligation of LICENSEE to
                  compensate HARVARD for any undisputed amounts, as provided for
                  under any term of this Agreement, during the pendency of the
                  foregoing arbitration and cure period.

         (b)      If LICENSEE defaults in its obligations under Sections 11.2(c)
                  and 11.2(d) to procure and maintain insurance, and fails to
                  cure such breach within [*** Redacted] days after notice in
                  writing of such breach by HARVARD.

         (c)      If LICENSEE shall make an assignment for the benefit of
                  creditors, or shall have a petition in bankruptcy filed for or
                  against it, provided that such bankruptcy petition is not
                  dismissed within [*** Redacted] days after its filing. Such
                  termination shall be effective immediately upon HARVARD giving
                  written notice to LICENSEE.

         (d)      If LICENSEE is convicted of a felony within the United States
                  relating to the manufacture, use, or sale of LICENSED
                  PRODUCTS.

         (e)      Except as provided in Subsections (a), (b), (c), (d) above, if
                  LICENSEE materially breaches any obligations under this
                  Agreement and the breach has not been cured within [***
                  Redacted] days after the date of notice in writing of such
                  breach by HARVARD. If LICENSEE disputes in writing that it has
                  materially breached this Agreement within such [*** Redacted]
                  day period, HARVARD shall not have the right to terminate this
                  Agreement until it has been determined in an arbitration
                  proceeding under Section 11.10 below that LICENSEE has
                  materially breached this Agreement, and thereafter Licensee
                  does not cure such breach within [*** Redacted] days after
                  such determination. This Section 9.2(e) shall not, however,
                  suspend any obligation of LICENSEE to compensate HARVARD for
                  any undisputed amounts, as provided for under any term of this
                  Agreement, during the pendency of the foregoing arbitration
                  and cure period.

9.3      All sublicenses granted by LICENSEE under this Agreement in compliance
         with the terms and conditions hereof shall survive the termination of
         this Agreement upon the request of the party to whom such sublicense is
         granted, provided that such party agrees in writing that (i) it will
         pay all royalties or other amounts that otherwise would have been due
         thereafter under such sublicense directly to HARVARD rather than
         LICENSEE, and (ii) HARVARD shall not be held liable for the breach or
         the performance of any obligations stated in such sublicense unless
         such obligations have been expressly assumed in writing by HARVARD.

9.4      LICENSEE may terminate this Agreement by giving [*** Redacted] days
         advance written notice of termination to HARVARD. Upon termination,
         LICENSEE shall promptly

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              17

<PAGE>

         submit a Royalty Report to HARVARD for the final reporting period and
         any royalty payments incurred during such reporting period, and any
         unreimbursed patent expenses under Section 7 that have been invoiced by
         HARVARD, shall become immediately payable with such Royalty Report.

9.5      Articles I, VI, IX, X and XI (except for Section 11.7) of this
         Agreement shall survive termination. Article VIII shall survive with
         respect to any infringement of third parties and/or any lawsuits filed
         by or against LICENSEE, prior to the termination of this Agreement. In
         the event this Agreement is terminated for any reason, LICENSEE may,
         within [*** Redacted] after the effective date of such termination,
         sell or otherwise dispose of all LICENSED PRODUCTS that LICENSEE may
         have on hand on the effective date of such termination, and fulfill any
         contracts requiring the use of LICENSED PRODUCTS and/or LICENSED
         PROCESSES that LICENSEE may have entered into prior to the date of such
         termination, subject to LICENSEE'S payment of amounts due to HARVARD
         under Section 4.3 of this Agreement.

9.6      In the event that after termination of this Agreement, HARVARD licenses
         PATENT RIGHTS to another licensee, HARVARD shall use commercially
         reasonable efforts to require such other licensee to pay the costs of
         the preparation, filing, prosecution and maintenance of PATENT RIGHTS.
         HARVARD shall reimburse LICENSEE for any costs so paid by such other
         licensee to the extent LICENSEE paid for such costs under Section 7.1.

                                   ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

10.1     Except for the rights, if any, of the Government of the United States,
         HARVARD represents and warrants that:

         (a)      HARVARD is the owner of the entire right, title and interest
                  in and to the PATENT RIGHTS as they exist on the Effective
                  Date;

         (b)      HARVARD has the right and authority to enter into this
                  Agreement and grant the rights and licenses set forth herein,
                  including without limitation under PATENT RIGHTS;

         (c)      HARVARD has not previously granted, and will not grant in the
                  future, any rights in the PATENT RIGHTS that are inconsistent
                  with the rights and licenses granted to LICENSEE herein;

         (d)      To the best knowledge of HARVARD without having made an
                  investigation, as of the Effective Date, practice of
                  inventions within the PATENT RIGHTS does not infringe any
                  patent rights, trade secrets or other proprietary rights of
                  any third party,

         (e)      To the best knowledge of HARVARD, as of the Effective Date,
                  HARVARD does not own any rights in any other patent or patent
                  application, the claims of which would

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             18
<PAGE>

                  dominate the claims of a patent or patent application within
                  the PATENT RIGHTS or any practice of PATENT RIGHTS. If HARVARD
                  owns, now or thereafter, any such rights in such patents or
                  patent applications on which [*** Redacted] is an inventor,
                  HARVARD will negotiate in good faith to the extent it has the
                  legal right to do so  with LICENSEE to grant LICENSEE rights
                  to the extent sufficient to practice PATENT RIGHTS.

         (f)      To the best knowledge of HARVARD, all prior and current
                  agreements between HARVARD and other sponsors of research
                  under which HARVARD has obligations relating to PATENT RIGHTS
                  are listed on Appendix C.

10.2     Except as set forth in this Agreement, HARVARD does not warrant the
         validity of the PATENT RIGHTS licensed hereunder and makes no
         representations whatsoever with regard to the scope of the licensed
         PATENT RIGHTS or that such PATENT RIGHTS may be exploited by LICENSEE,
         an AFFILIATE, or sublicensee without infringing other patents.

10.3     EXCEPT FOR THE WARRANTIES STATED IN THIS AGREEMENT, HARVARD EXPRESSLY
         DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND MAKES NO
         EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY
         PARTICULAR PURPOSE OF THE PATENT RIGHTS OR INFORMATION SUPPLIED BY
         HARVARD, LICENSED PROCESSES OR LICENSED PRODUCTS CONTEMPLATED BY THIS
         AGREEMENT.

                                   ARTICLE XI
                                    GENERAL

11.1     (a)      The parties may, from time to time, in connection with this
                  Agreement disclose to each other Confidential Information. Any
                  Confidential Information shall be in writing and marked
                  "confidential" and disclosed only to the Office of Technology
                  and Trademark Licensing. As used in the this Agreement,
                  "Confidential Information" of a party shall mean (i) any
                  information disclosed in writing by such party to the other
                  party, which is marked by such party with the legend
                  "CONFIDENTIAL" or other similar legend sufficient to identify
                  the information as its confidential information, (ii) any
                  information disclosed orally by such party to the other party
                  which is identified as confidential at the time of disclosure
                  and is confirmed as confidential in writing within thirty (30)
                  days after such time of disclosure, or (iii) any information
                  deemed Confidential Information under the terms of this
                  Agreement. With respect to categories (i) and (ii) above,
                  "Confidential Information" shall not include any information
                  that is: (1) already known to the receiving party at the time
                  of disclosure hereunder, or (2) now or hereafter becomes
                  publicly known other than through acts or omissions of the
                  receiving party, or (3) is disclosed to the receiving party by
                  a third party under no obligation of confidentiality to the
                  disclosing party or (4) is independently developed by the
                  receiving party without use of the Confidential Information of
                  the disclosing party.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.
                                                                              19

<PAGE>

         (b)      Each party shall maintain in confidence, and shall not use for
                  any purpose or disclose to any third party, the Confidential
                  Information of the other party. Notwithstanding the foregoing,
                  the receiving party may use or disclose the Confidential
                  Information of the disclosing party (i) to the extent
                  necessary to exercise its rights or fulfill its obligations
                  and/or duties under this Agreement, and (ii) to comply with
                  applicable law or governmental regulations or court order,
                  provided that the receiving party will give reasonable advance
                  notice to the disclosing party, and will use its reasonable
                  efforts to minimize the disclosure of Confidential Information
                  and to secure confidential treatment of any Confidential
                  Information disclosed.

         (c)      The terms of this Agreement shall be deemed "Confidential
                  Information" of both parties. In addition to the permissible
                  disclosures set forth in subsection (b) above, LICENSEE may
                  disclose such terms in confidence to its financial and legal
                  advisors, consultants, potential or actual investors,
                  potential or actual merger or acquisition partners, and others
                  on a need-to-know basis.

11.2     (a)      LICENSEE shall indemnify, defend and hold harmless HARVARD and
                  its current or former and future directors, governing board
                  members, trustees, officers, faculty and employees
                  (collectively, the "INDEMNITEES"), from and against any
                  lawsuit or cause or action against the INDEMNITEES brought by
                  a third party (collectively, "Claims"), based upon, arising
                  out of, or otherwise relating to this Agreement, including
                  without limitation any cause of action relating to product
                  liability concerning any product, process, or service made,
                  used or sold pursuant to any right or license granted under
                  this Agreement, except to the extent such Claims arise out of
                  or otherwise relate to the gross negligence or intentional
                  misconduct of any INDEMNITEES; and further provided that (i)
                  LICENSEE receives prompt notice of any such Claims; (ii)
                  LICENSEE is given the exclusive right to control the defense
                  and settlement of such Claims; and (iii) LICENSEE shall not be
                  obligated to indemnify any INDEMNITEE in connection with any
                  settlement for any Claim unless LICENSEE consents in writing
                  to such settlement.

         (b)      LICENSEE shall, at its own expense, defend against any actions
                  brought or filed against any INDEMNITEE hereunder with respect
                  to the subject of indemnity contained herein, whether or not
                  such actions are rightfully brought.

         (c)      Beginning at the time any such product, process or service is
                  being commercially distributed or sold (other than for the
                  purpose of obtaining regulatory approvals) by LICENSEE or by a
                  SUBLICENSEE, AFFILIATE or agent of LICENSEE, LICENSEE shall,
                  at its sole cost and expense, procure and maintain commercial
                  general liability insurance in amounts not less than [***
                  Redacted] per incident and [*** Redacted] annual aggregate and
                  naming the Indemnitees as additional insureds. During clinical
                  trials of any such product, process or service, LICENSEE
                  shall, at its sole cost and expense, procure and maintain
                  commercial general liability insurance in such equal or lesser
                  amount as HARVARD shall require, naming the Indemnitees as
                  additional insureds. Such commercial general liability
                  insurance shall provide: (i) product liability coverage; and
                  (ii) broad form contractual liability coverage for LICENSEE'S
                  indemnification under this Agreement. If LICENSEE elects to
                  self-

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              20

<PAGE>
                  insure all or part of the limits described above (including
                  deductibles or retentions which are in excess of [***
                  Redacted] annual aggregate) such self-insurance program must
                  be acceptable to HARVARD and the Risk Management Foundation of
                  the Harvard Medical Institutions, Inc. in their sole
                  discretion. The minimum amounts of insurance coverage required
                  shall not be construed to create a limit of LICENSEE's
                  liability with respect to its indemnification under this
                  Agreement.

         (d)      LICENSEE shall provide HARVARD with written evidence of such
                  insurance upon request of HARVARD. LICENSEE shall provide
                  HARVARD with written notice at least fifteen (15) days prior
                  to the cancellation, non-renewal or material change in such
                  insurance; if LICENSEE does not obtain replacement insurance
                  providing comparable coverage within such fifteen (15) day
                  period, HARVARD shall have the right to terminate this
                  Agreement in accordance with Section 9.2(b).

         (e)      LICENSEE shall maintain such commercial general liability
                  insurance beyond the expiration or termination of this
                  Agreement during: (i) the period that any product, process, or
                  service, relating to, or developed pursuant to, this Agreement
                  is being commercially distributed or sold by LICENSEE or by a
                  sublicensee, AFFILIATE or agent of LICENSEE; and (ii) a
                  reasonable period after the period referred to in Subsection
                  (e)(i) above which in no event shall be less than [***
                  Redacted].

11.3     Nothing in this Agreement shall be construed as conferring any right to
         use HARVARD's name or insignia, or any adaptation of them, or the name
         of any of HARVARD's inventors in any advertising, promotional or sales
         literature without the prior written approval of HARVARD, or the
         inventor in the case of the use of the name of an inventor.

11.4     Except as stated in this Section 11.4, without the prior written
         approval of HARVARD in each instance, neither this Agreement nor the
         rights granted hereunder shall be transferred or assigned in whole or
         in part by LICENSEE to any person whether voluntarily or involuntarily,
         by operation of law or otherwise. LICENSEE may transfer or assign this
         Agreement and all rights hereunder, upon notice to HARVARD but without
         its consent, to any entity that succeeds to all or substantially all of
         the business of LICENSEE to which this Agreements pertains, whether by
         merger, operation of law, purchase or sale of all or substantially all
         of LICENSEE's stock or assets or otherwise; provided that such assignee
         or transferee promptly agrees in writing to be bound by the terms and
         conditions of this Agreement. Subject to the foregoing, this Agreement
         shall be binding upon the respective successors, legal representatives
         and assignees of HARVARD and LICENSEE.

11.5     The interpretation and application of the provisions of this Agreement
         shall be governed by the laws of the Commonwealth of Massachusetts.

11.6     LICENSEE shall comply with all applicable laws and regulations. In
         particular, it is understood and acknowledged that the transfer of
         certain commodities and technical data is subject to United States laws
         and regulations controlling the export of such commodities and
         technical data, including all Export Administration Regulations of the
         United States Department of Commerce. These laws and regulations among
         other things, prohibit or

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              21

<PAGE>

         require a license for the export of certain types of technical data to
         certain specified countries. LICENSEE hereby agrees and gives written
         assurance that it will comply with all United States laws and
         regulations controlling the export of commodities and technical data,
         that it will be solely responsible for any violation of such by
         LICENSEE or its AFFILIATES or sublicensees, and that it will defend and
         hold HARVARD harmless in the event of any legal action of any nature
         occasioned by such violation with respect to LICENSED PRODUCTS.

11.7     LICENSEE agrees: (i) to obtain all regulatory approvals required for
         the manufacture and sale of LICENSED PRODUCTS and LICENSED PROCESSES;
         and (ii) to mark LICENSED PRODUCTS with the numbers of the applicable
         patents within PATENT RIGHTS, to the extent required by law. LICENSEE
         also agrees to register or record this Agreement as is required by law
         or regulation in any country where the license is in effect, and
         HARVARD shall cooperate fully with LICENSEE in connection with any such
         registration or recordation.

11.8     Any notices to be given hereunder shall be sufficient if signed by the
         party (or party's attorney) giving same and either: (i) delivered in
         person; (ii) mailed certified mail return receipt requested; or (iii)
         faxed to other party if the sender has evidence of successful
         transmission and if the sender promptly sends the original by ordinary
         mail, in any event to the following addresses:

         If to LICENSEE:
           c/o CW Group East
           1041 Third Avenue
           New York, New York 10021
           Attn: Lawrence A. Bock
           Fax: 212/644-0354

         cc: Wilson, Sonsini, Goodrich & Rosati
             650 Page Mill Road
             Palo Alto, California 94304
             Attn: Michael J. O'Donnell, Esq.
             Fax: 650/493-6811

         If to HARVARD:
             Office for Technology and Trademark Licensing
             Harvard University
             Holyoke Center, Suite 727
             1350 Massachusetts Avenue
             Cambridge, MA 02138
             Fax: (617)495-9568

         By such notice either party may change their address for future
         notices.

                                                                              22

<PAGE>

         Notices delivered in person shall be deemed given on the date
         delivered. Notices sent by fax shall be deemed given on the date faxed.
         Notices mailed shall be deemed given on the date postmarked on the
         envelope.

11.9     Should a court of competent jurisdiction later hold any provision of
         this Agreement to be invalid, illegal, or unenforceable, and such
         holding is not reversed on appeal, it shall be considered severed from
         this Agreement. All other provisions, rights and obligations shall
         continue without regard to the severed provision, provided that the
         remaining provisions of this Agreement are in accordance with the
         intention of the parties.

11.10    In the event of any controversy or claim arising out of or relating to
         any provision of this Agreement or the breach thereof, the parties
         shall try to settle such conflict amicably between themselves. Subject
         to the limitation stated in the final sentence of this Section, any
         such conflict which the parties are unable to resolve promptly shall be
         settled through arbitration conducted in accordance with the rules of
         the American Arbitration Association. The demand for arbitration shall
         be filed within a reasonable time after the controversy or claim has
         arisen, and in no event after the date upon which institution of legal
         proceedings based on such controversy or claim would be barred by the
         applicable statute of limitation. Such arbitration shall be held in
         Boston, Massachusetts. The award through arbitration shall be final and
         binding. Either party may enter any such award in a court having
         jurisdiction or may make application to such court for judicial
         acceptance of the award and an order of enforcement, as the case may
         be. Notwithstanding the foregoing, either party may, without recourse
         to arbitration, assert against the other party a third-party claim or
         cross-claim in any action brought by a third party, to which the
         subject matter of this Agreement may be relevant.

11.11    This Agreement constitutes the entire understanding between the parties
         and neither party shall be obligated by any condition or representation
         other than those expressly stated herein or as may be subsequently
         agreed to by the parties hereto in writing.

11.12    Nothing in this Agreement shall be deemed to require LICENSEE to
         exploit the PATENT RIGHTS, except to the extent expressly set forth in
         this Agreement, and nothing in this Agreement shall be deemed to
         prevent LICENSEE from commercializing products similar to or
         competitive with a LICENSED PRODUCT.

11.13    The relationship between HARVARD and LICENSEE established by this
         Agreement is that of independent contractors. Nothing in this Agreement
         shall be construed to create any other relationship between HARVARD and
         LICENSEE. 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.

11.14    In the event either party hereto is prevented from or delayed in the
         performance of any of its obligations hereunder by reason of acts of
         God, war, strikes, riots, storms, fires or any other cause whatsoever
         beyond the reasonable control of the party, the party so prevented or
         delayed shall be excused from the performance of any such obligation to
         the extent and during the period of such prevention or delay.

                                                                              23

<PAGE>

11.15    NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR TO ANY THIRD PARTY
         FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY OR INCIDENTAL DAMAGES
         (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO THE
         SAME), ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT, WHETHER SUCH
         CLAIM IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE,
         EVEN IF AN AUTHORIZED REPRESENTATIVE OF SUCH PARTY IS ADVISED OF THE
         POSSIBILITY OF LIKELIHOOD OF SAME.

11.16    This Agreement may be executed in counterparts, each of which shall be
         deemed an original, but both of which together shall constitute one and
         the same instrument.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
         executed by their duly authorized representatives.

         PRESIDENT AND FELLOWS
         OF HARVARD COLLEGE                                  COMPANY

              /s/ Joyce Brinton                         /s/ Lawrence A. Bock
---------------------------------------------        ---------------------------
           Joyce Brinton, Director                           Signature
Office for Technology and Trademark Licensing

            10/2/01                                       Lawrence A. Bock
         ------------                                ---------------------------
             Date                                               Name

                                                          President and CEO
                                                     ---------------------------
                                                                Title

                                                              10/3/01
                                                         -------------------
                                                                 Date

                                                                              24

<PAGE>

                                   APPENDIX A

The following comprise PATENT RIGHTS:

[*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              25

<PAGE>

                                   APPENDIX B

NANOSYS, INC. CAPITALIZATION TABLE - CONFIDENTIAL

FOUNDERS' STOCK (Common Stock Capitalization Before Series A Preferred Stock
Financing)

<TABLE>
<CAPTION>
                        % of Founders Stock    # of Shares of Common Stock        Amount Invested
                        -------------------    ---------------------------    --------------------
<S>                     <C>                    <C>                            <C>          <C>
[*** Redacted]#                11.0%                                            550,000    $   550
[*** Redacted] #                9.0%                                            450,000    $   450
[*** Redacted] +                2.0%                                            100,000    $   100
CW Group *                     12.0%                                            600,000    $   600
Other advisors (tbd)            2  %                                            100,000    $   100
Reserve                        64.0%                                          3,200,000    $ 3,200
Total Common Shares           100.0%                                          5,000,000    $ 5,000
</TABLE>

PROPOSED SERIES A PREFERRED
STOCK

<TABLE>
<S>                                <C>                    <C>
Investors as a group               5,000,000-6,666,667    $  1,500-2,000,000
Total Series A Preferred Shares    5,000,000-6,666,667    $  1,500-2,000,000
</TABLE>

# Founders stock will vest monthly over a five year period

+ [*** Redacted] shares will be fully vested

* Shares will be issued in the form of an option

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              26

<PAGE>

                                   APPENDIX C

<TABLE>
<CAPTION>

CASE     LEAD INVENTOR     REPORT DATE            TITLE                    AGENCY              GRANT NUMBERS
----    ---------------    -----------    --------------------    ------------------------    ----------------
<S>     <C>                <C>            <C>                     <C>                         <C>
[***Redacted]
</TABLE>

*** Confidential treatment requested pursuant to a request for confidential
    treatment filed with the Securities and Exchange Commission. Omitted
    portions have been filed separately with the Commission.<PAGE>
                                                                 EXHIBIT 10.5.1

                  CO-EXCLUSIVE LICENSE AGREEMENT (CASE [*** Redacted])

                                    Between

                    President and Fellows of Harvard College

                                      And

                                 NanoSys, Inc.

               Effective as of October 4, 2001 ("Effective Date")
                             Re: Harvard Case [*** Redacted]

      In consideration of the mutual promises and covenants set forth below,
      the parties hereto agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

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

1.1   ACADEMIC RESEARCH PURPOSES: use of PATENT RIGHTS solely for academic
      non-commercial research or other not-for-profit scholarly purposes, which
      use is undertaken at a non-profit or governmental institution. ACADEMIC
      RESEARCH PURPOSES does not include selling products covered by PATENT
      RIGHTS or using PATENT RIGHTS in researching, developing, producing or
      manufacturing products for sale, or performance of services for a fee or
      other financial consideration. It is understood that using the PATENT
      RIGHTS to conduct normal research activities at non-profit or
      governmental institution is within the defined term of ACADEMIC RESEARCH
      PURPOSES.

1.2   AFFILIATE: any entity which controls, is controlled by, or is under
      common control with a party. An entity shall be regarded as in control of
      another entity for purposes of this definition if it owns or controls at
      least fifty percent (50%) of the shares entitled to vote in the election
      of directors (or in the case of an entity that is not a corporation, for
      the election of the corresponding managing authority). Unless otherwise
      specified, the term LICENSEE includes AFFILIATES.

1.3   FIELD: All fields of use.

1.4   HARVARD: President and Fellows of Harvard College, a nonprofit
      Massachusetts educational corporation having offices at the Office for
      Technology and Trademark

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>
     Licensing, Holyoke Center, Suite 727, 1350 Massachusetts Avenue, Cambridge,
     Massachusetts 02138.

1.5  LICENSED PROCESSES: methods, processes or procedures covered by at least
     one VALID CLAIM included within the PATENT RIGHTS.

1.6  LICENSED PRODUCTS: products covered by at least one VALID CLAIM included
     within the PATENT RIGHTS or products made in accordance with LICENSED
     PROCESSES.

1.7  LICENSEE: Nanosys, Inc., a corporation organized under the laws of Delaware
     having its principal offices at CW Group East, 1041 Third Avenue, New York,
     New York 10021.

1.8  NET SALES: [*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               2

<PAGE>
[*** Redacted]

1.9  PATENT RIGHTS: PATENT RIGHTS shall include (i) the applications and patents
     as listed in Appendix A of this Agreement, (ii) any foreign counterparts to
     such patents and patent applications, (iii) the inventions described and
     claimed in the foregoing; (iv) any divisions, continuations, substitutions
     of the foregoing, and (v) specific claims of any continuations-in-part of
     the foregoing to the extent the specific claims are directed to subject
     matter described in the foregoing in a manner sufficient to support such
     specific claims under 35 U.S.C. and to the extent Licensable by HARVARD,
     (vi) all patents issuing on any of the foregoing, and (vii) registrations,
     renewals, reissues, reexaminations, extensions or patents of addition of
     any kind with respect to any of such patents. For purposes of this
     Agreement "Licensable" shall mean those claims of continuations-in- part
     filed after the Effective Date for which HARVARD has sole ownership (or has
     been granted the sole right to license by a co-owner) and where there are
     no obligations to grant licenses to a third party as the result of research
     support provided to one or more of the inventors.

1.10 SERVICE INCOME: [*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               3
<PAGE>
          [*** Redacted]

1.11      SUBLICENSE INCOME: [*** Redacted]

1.12      TERRITORY: Worldwide.

1.13      VALID CLAIM: either (i) a claim of an issued patent that has not
          expired or been held unenforceable or invalid by an agency or a court
          of competent jurisdiction, and which has not been admitted to be
          invalid or unenforceable through reissue, disclaimer or otherwise;
          provided, however, that if the holding of such court or agency is
          later reversed by a court or agency with overriding authority, the
          claim shall be reinstated as a Valid Claim with respect to Net Sales
          made after the date of such reversal, or (ii) a claim of a pending
          patent application that has not been abandoned or finally rejected
          without the possibility of appeal or re-filing and that has been
          pending for less than five (5) years from its priority date, and is
          being actively prosecuted in good faith.

1.14      The terms "Public Law 96-517" and "Public Law 98-620" include all
          amendments to those statutes.

1.15      The terms "sold" and "sell" include, without limitation, leases and
          other dispositions and similar transactions.

*** Confidential treatment requested pursuant to a request for
confidential treatment filed with the Securities and Exchange
Commission. Omitted portions have been filed separately with the
Commission.

                                                                             -4-
<PAGE>
1.16      RELATED LICENSE AGREEMENTS: Other patent license agreements between
          LICENSEE and HARVARD licensing patent rights known internally at
          HARVARD as Case [*** Redacted] to LICENSEE.

1.17      R&D SPENDING, MINIMUM INVESTMENT: shall have the meanings as set forth
          in Section 4.5.

1.18      DEVELOPMENT PAYMENTS: DEVELOPMENT PAYMENTS shall mean (a) any
          payments, in consideration for, or to support, research and/or
          development efforts by LICENSEE and (b) any reimbursement of expenses
          including without limitation patent expenses.

                                   ARTICLE II
                                    RECITALS

2.1       HARVARD is owner (or HARVARD will be owner) by assignment from
          [*** Redacted] of their entire right, title and interest in the PCT
          application [*** Redacted] (claiming priority to US Provisional
          Application [*** Redacted], in the foreign and US patent applications
          corresponding thereto, and in the inventions described and claimed
          therein.

2.2       HARVARD has the authority to issue licenses under PATENT RIGHTS.

2.3       HARVARD is committed to the policy that ideas or creative works
          produced at HARVARD should be used for the greatest possible public
          benefit, and believes that every reasonable incentive should be
          provided for the prompt introduction of such ideas into public use,
          all in a manner consistent with the public interest.

2.4       LICENSEE intends to use commercially reasonable efforts to develop the
          invention(s), and to bring to market at least one product falling
          within the definition of LICENSED PRODUCT or otherwise embodying the
          subject matter described or claimed in the patents rights licensed
          under such agreements.

2.5       LICENSEE is desirous of obtaining a co-exclusive license in the
          TERRITORY in order to practice the above-referenced invention covered
          by PATENT RIGHTS in the United States and in certain foreign
          countries, and to manufacture, use and sell in the commercial market
          the products made in accordance therewith, and HARVARD is desirous of
          granting such a license to LICENSEE in accordance with the terms of
          this Agreement.

                                  ARTICLE III
                                GRANT OF RIGHTS

3.1       HARVARD hereby grants to LICENSEE and LICENSEE accepts, subject to the
          terms and conditions hereof, a co-exclusive license (with Nantero,
          Inc. and except as set forth in Sections 3.2(a) and 3.2(b)) under
          PATENT RIGHTS in the TERRITORY and in the FIELD (i) to make and have
          made, to use and have used, to sell and have sold, to offer for

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               5
<PAGE>
        sale, import, export, or otherwise distribute the LICENSED PRODUCTS,
        (ii) to practice the LICENSED PROCESSES, and (iii) to otherwise fully
        exploit the PATENT RIGHTS, and (iv) to have the foregoing performed on
        behalf of LICENSEE by a third party, in each case for the life of the
        PATENT RIGHTS. The foregoing license under PATENT RIGHTS shall include
        the right to grant sublicenses only in accordance with Section
        3.2(b)(iii). LICENSEE shall promptly provide copies of any sublicenses
        of PATENT RIGHTS to HARVARD  for its review. Unless HARVARD has
        rendered the license under PATENT RIGHTS non-exclusive under Section
        4.3(d), HARVARD agrees that it will not grant licenses under PATENT
        RIGHTS to others, nor make, use, sell, offer for sale, import or
        otherwise exploit PATENT RIGHTS itself except to Nantero Inc. and as
        required by HARVARD's obligations in Section 3.2(a) or as permitted in
        Section 3.2(b)

3.2     The granting and exercise of this license is subject to the following
        conditions:

        (a)  HARVARD's "Statement of Policy in Regard to Inventions, Patents
             and Copyrights," dated August 10, 1998, Public Law 96-517 and
             Public Law 98-620, and HARVARD's obligations under prior or
             current agreements with other sponsors of research and, with
             regard to continuations-in-part contained in the PATENT RIGHTS,
             any future agreements with other sponsors of research related to
             such continuations-in-part. Any right granted in this Agreement
             greater than that permitted under Public Law 96-517, or Public Law
             98-620, shall be subject to modification to the extent required to
             conform to the provisions of those statutes.

        (b)  This co-exclusive license shall mean that LICENSEE shall have the
             exclusive rights to PATENT RIGHTS except as provided in 3.2(a) and
             as provided below.

             (i)   HARVARD reserves the right to make and use, and grant to
                   other non-profit or governmental institutions non-exclusive
                   licenses to make and use, in each case solely for ACADEMIC
                   RESEARCH PURPOSES the subject matter described and claimed in
                   PATENT RIGHTS. HARVARD shall promptly notify LICENSEE of any
                   rights granted to any third party (other than the U.S.
                   government) under Sections 3.2(a) and (b).

             (ii)  LICENSEE expressly recognizes that Nantero, Inc. ("NANTERO")
                   currently has the right to obtain a co-exclusive license
                   under PATENT RIGHTS. In the event that NANTERO's rights
                   should expire or terminate for any reason, HARVARD shall
                   immediately notify LICENSEE, and LICENSEE shall have the
                   right to convert its license to PATENT RIGHTS hereunder to an
                   exclusive (subject to Sections 3.2(a) and 3.2(b)(i)) and
                   fully sublicensable license upon the payment of [***
                   Redacted] to HARVARD.

             (iii) Neither LICENSEE nor NANTERO may grant sublicenses under
                   PATENT RIGHTS unless (x) such entity can demonstrate to
                   HARVARD that it has added significant value to the PATENT
                   RIGHTS to be sublicensed, and that its sublicense of PATENT
                   RIGHTS accompanies a substantial and essentially simultaneous
                   license of such added value in the form of LICENSEE-owned
                   intellectual property, or (y) such entity is granting an
                   authorized sublicense under other patent rights licensed
                   exclusively from HARVARD which are

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>
          dominated by PATENT RIGHTS, and its sublicense of PATENT RIGHTS is
          therefore necessary to permit the sublicensee to practice such other
          HARVARD patent rights, or (z) such entity obtains the approval of
          HARVARD and the other co-exclusive licensee of PATENT RIGHTS.
          Notwithstanding the foregoing, the restrictions on sublicensing set
          forth in this Section 3.2(b)(iii) shall not apply to LICENSEE, and
          LICENSEE shall have the full unrestricted right to grant sublicenses,
          in the event LICENSEE's license to PATENT RIGHTS is converted to an
          exclusive license under Section 3.2(b)(ii).

(c)  LICENSEE shall use commercially reasonable efforts to effect introduction
     into the commercial market at least [*** Redacted] falling within the
     definition of LICENSED PRODUCT or otherwise embodying the subject matter
     described or claimed in PATENT RIGHTS, consistent with sound and reasonable
     business practice and judgment; thereafter, until the expiration of this
     Agreement, LICENSEE shall use commercially reasonable efforts to endeavor
     to keep any [*** Redacted] reasonably available to the public so long as it
     shall be a sound and reasonable commercial practice to do so.

(d)  At any time after [*** Redacted] years from the effective date of this
     Agreement, HARVARD may render the license non-exclusive if LICENSEE has
     not:

     (i)    used commercially reasonable efforts to put the licensed subject
            matter into commercial use in one or more of the countries hereby
            licensed, directly or through a sublicense; nor

     (ii)   used commercially reasonable efforts to keep products falling within
            the definition of LICENSED PRODUCT or otherwise embodying the
            subject matter described or claimed in PATENT RIGHTS reasonably
            available to the public so long as it shall be a sound and
            reasonable commercial practice to do so; nor

     (iii)  engaged in research, development, manufacturing, marketing or
            sublicensing activity that is commercially reasonably appropriate to
            achieving Section 3.2(d)(i) or 3.2(d)(ii).

     LICENSEE shall be deemed to have satisfied Section 3.2(d)(iii), and HARVARD
     shall not render the license of PATENT RIGHTS granted hereunder
     non-exclusive, if LICENSEE's R&D SPENDING exceeds the MINIMUM INVESTMENT
     for such year as set forth in Section 4.5.

(e)  In all sublicenses granted by LICENSEE hereunder, LICENSEE shall include a
     requirement that the sublicensee use commercially reasonable efforts to put
     the subject matter of the sublicense into commercial use, provided that
     such sublicensee is authorized to develop and sell to the public a [***
     Redacted] covered by PATENT RIGHTS on its own behalf. LICENSEE shall
     further provide that such sublicenses are subject and subordinate to the
     terms and conditions of this Agreement, except for

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               7
<PAGE>
         the [*** Redacted] paid by such sublicensee to the LICENSEE. Copies of
         all sublicense agreements hereunder shall be provided promptly to
         HARVARD. All sublicense agreements of LICENSEE provided to HARVARD
         shall deemed Confidential Information of LICENSEE subject to Section
         11.1.

     (f) At any time [*** Redacted] years after the effective date of this
         Agreement, if LICENSEE is unable or unwilling to grant sublicenses,
         either [*** Redacted] by HARVARD or by a [*** Redacted] or otherwise,
         then HARVARD may directly license such [*** Redacted], but only if: (i)
         LICENSEE is not currently pursuing development of LICENSED PRODUCTS for
         the same application as contemplated by the potential sublicensee, or
         LICENSEE commits to do so within a [*** Redacted] period, (ii) the
         granting of such a license by HARVARD to the potential sublicensee will
         increase the availability of useful products to the public, (iii) the
         granting of such license by HARVARD will not materially adversely
         affect LICENSEE's then current business or reasonably foreseeable
         future business (e.g., such license is not intended for an application
         competitive with LICENSEE) and (iv) HARVARD notifies LICENSEE of its
         intention to grant such license and permits LICENSEE a reasonable
         period to negotiate a sublicense on its own.

     (g) To the extent required by law, until this license is rendered
         non-exclusive in the United States under Section 3.2 (d), LICENSEE
         shall cause any LICENSED PRODUCT produced for sale in the United States
         to be manufactured substantially in the United States.

3.3  All rights reserved to the United States Government and others under Public
     Law 96-517, and Public Law 98-620, shall remain and shall in no way be
     affected by this Agreement.

3.4  HARVARD shall promptly notify LICENSEE when any new patent or patent
     application arises from (i) research conducted in the laboratory of [***
     Redacted], or (ii) improvements made by HARVARD under the direction of [***
     Redacted] on the subject matter described in PATENT RIGHTS. If LICENSEE so
     requests and the intellectual property is available for licensing, HARVARD
     will evaluate in good faith LICENSEE's proposal along with proposals
     received from any third parties. Any decision to grant a license to
     LICENSEE shall be subject to approval by HARVARD's Committee on Patents and
     Copyrights. In the event LICENSEE and HARVARD cannot agree on terms for a
     license to any new intellectual property which is dominated by PATENT
     RIGHTS, HARVARD shall not offer any third party terms more favorable than
     the terms offered to LICENSEE.

                                   ARTICLE IV
                                   ROYALTIES

4.1  LICENSEE shall pay to HARVARD a non-refundable license royalty fee in the
     sum of [*** Redacted] upon execution of this Agreement.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               8
<PAGE>
4.2  As consideration for the rights granted hereunder, LICENSEE shall pay to
     HARVARD a non-refundable fee in the form of stock of LICENSEE as follows:

          (i)   LICENSEE shall issue to HARVARD [*** Redacted] fully vested
                shares, at a price per share of $0.001 per share and an
                aggregate value of $[*** Redacted] of LICENSEE's common stock
                which represent [*** Redacted] percent ([*** Redacted]%) of the
                reserved shares for founders (total [*** Redacted] shares) shown
                on the capitalization table of LICENSEE attached as Appendix B
                ("Shares") upon execution of this Agreement, provided, however,
                that HARVARD shall be subject to and enter into (1) appropriate
                agreements and related documents as required of other
                stockholders of LICENSEE, including without limitation a Common
                Stock Purchase Agreement, and (2) a Voting Agreement by and
                among the LICENSEE, HARVARD and certain other holders of common
                stock of LICENSEE dated as of even date hereof.

          (ii)  HARVARD's ownership rights to Shares shall not be affected
                should the license pursuant to this Agreement be terminated by
                LICENSEE or HARVARD.

4.3 (a) LICENSEE shall pay to HARVARD during the term of this Agreement a
        royalty on NET SALES by LICENSEE according to the following schedule:

          (i)   [*** Redacted]% of NET SALES by LICENSEE in [*** Redacted]
                applications;

          (ii)  [*** Redacted]% of NET SALES by LICENSEE in [*** Redacted]
                applications; or

          (iii) [*** Redacted]% of NET SALES by LICENSEE in [*** Redacted]
                applications.

    In the event, any NET SALES by LICENSEE reasonably falls within more than
    one of categories (i) to (iii) above, LICENSEE shall pay to HARVARD the
    lowest applicable royalty set forth in such categories.

    (b) For each LICENSED PRODUCT sold by LICENSEE, LICENSEE may credit up to
        [*** Redacted] of royalties that LICENSEE is paying to third parties (or
        HARVARD under agreements not included within section 4.3(c)) on
        LICENSEE's sales of that LICENSED PRODUCT, provided that the royalty
        paid to HARVARD shall not be reduced below [*** Redacted] percent
        ([*** Redacted]%) of the NET SALES of that LICENSED PRODUCT for which
        such third party royalties are being paid.

    (c) In the event that sales of a LICENSED PRODUCT are subject to the payment
        of royalties under one or more of the RELATED LICENSE AGREEMENTS or any
        license agreements with HARVARD with the same effective date as this
        Agreement, then the total royalty payment due HARVARD under all such
        agreements including this Agreement shall be at most the royalty payment
        due under this Section 4.3 on such

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                               9
<PAGE>
     NET SALE, no matter how many license agreements from HARVARD are involved,
     and notwithstanding the terms of any such agreement. LICENSEE shall notify
     HARVARD of the identity of each license agreement that includes patent
     rights covering the product or process, and HARVARD shall distribute the
     royalties evenly among such agreements, including this Agreement.

(d)  LICENSEE shall pay HARVARD [*** Redacted] percent ([*** Redacted]%) of
     SUBLICENSE INCOME received by LICENSEE for a sublicense of PATENT RIGHTS.
     If compensation for such a sublicense of PATENT RIGHTS is bundled with
     compensation received for the sublicensing of the other HARVARD patents
     rights or other HARVARD intellectual property, licensed to LICENSEE under
     the RELATED LICENSE AGREEMENTS or any agreements with HARVARD having the
     same effective date as this Agreement, then LICENSEE shall pay HARVARD at
     most the royalty payment due under this Section 4.3(d) for such SUBLICENSE
     INCOME no matter how many license agreements from HARVARD are involved, and
     notwithstanding the terms of any such license agreements. In such a case,
     LICENSEE shall notify HARVARD of the identity of each license agreement
     involved and HARVARD shall distribute the royalties equally among those
     license agreements, including this Agreement.

(e)  For provision of services under PATENT RIGHTS, LICENSEE shall pay a royalty
     of [*** Redacted] percent ([*** Redacted]%) of SERVICE INCOME received by
     LICENSEE from each and every third party ("Third Party") to whom LICENSEE
     provides such services. In the event any services from which SERVICE INCOME
     is derived are subject to the payment of royalties under the RELATED
     LICENSE AGREEMENTS or any agreement with HARVARD having the same effective
     date as this Agreement, then the total royalty due under all such
     agreements, including this Agreement, shall be at most the royalty payment
     due under this Section 4.3 on such services, no matter how many license
     agreements from HARVARD are involved, and notwithstanding the terms of any
     such license agreements. In such event, LICENSEE shall notify HARVARD of
     the identity of each license agreement involved and HARVARD shall
     distribute the royalties equally among those license agreements, including
     this Agreement.

(f)  If the license pursuant to this Agreement is converted to a non-exclusive
     one under Section 3.2(d) and if another non-exclusive license to any of
     PATENT RIGHTS is granted or otherwise exists for any field or territory,
     then the royalty rate of this Agreement shall be adjusted so as not to
     exceed the royalty rate payable by such other non-exclusive licensee under
     such PATENT RIGHTS in such field or territory, provided that LICENSEE
     agrees to amend this Agreement to include terms requested by HARVARD that
     have been accepted by such other non-exclusive licensee.

(g)  On sales between LICENSEE and its AFFILIATES for resale, the royalty shall
     be paid on the NET SALES of the AFFILIATE.

(h)  In the event that more than one VALID CLAIM within PATENT RIGHTS is
     applicable to any LICENSED PRODUCT subject to royalties under this Section
     4.3, then only one royalty shall be paid to HARVARD in respect of such
     LICENSED PRODUCT. In no

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              10
<PAGE>
     event shall more than one royalty be due to HARVARD with respect to any
     LICENSED PRODUCT unit; nor shall a royalty be payable under this Section
     4.3 with respect to sales of LICENSED PRODUCTS for clinical trials or as
     samples nor the use of LICENSED PRODUCTS or LICENSED PROCESSES by LICENSEE
     for such purposes, in each case whether or not in collaboration with a
     third party.

4.4  No later than January 1 of each calendar year after the effective date of
     this Agreement, LICENSEE shall pay to HARVARD the following non-refundable
     license maintenance royalty and/or advance on royalties. Such payments may
     be credited against running royalties due for that calendar year and
     Royalty Reports shall reflect such a credit. Such payments shall not be
     credited against milestone payments (if any) nor against royalties due for
     any subsequent calendar year.

<TABLE>
<CAPTION>
<S>                                     <C>
          January 1, 2002               [*** Redacted]
          January 1, 2003               [*** Redacted]
          January 1, 2004               [*** Redacted]
          January 1, 2005               [*** Redacted]
          January 1, 2006               [*** Redacted]
          January 1, 2007               [*** Redacted]
          each year thereafter          [*** Redacted]
</TABLE>

4.5  Notwithstanding Section 4.4, the minimum royalty set forth in Section 4.4
     for the years 2002, 2003, and 2004 will be waived if LICENSEE's spending
     on research and development (LICENSEE's "R&D SPENDING") exceeds the amount
     set forth below for each category for such year (such amounts below, the
     "MINIMUM INVESTMENT").

<TABLE>
<CAPTION>
                              CHEMICAL AND
                            BIOLOGICAL SENSOR      OPTOELECTRONICS         NANOELECTRONICS
                               APPLICATIONS          APPLICATIONS            APPLICATIONS
<S>                         <C>                    <C>                     <C>
     Year 2002:             [*** Redacted]         [*** Redacted]          [*** Redacted]
     Year 2003:             [*** Redacted]         [*** Redacted]          [*** Redacted]
     Year 2004:             [*** Redacted]         [*** Redacted]          [*** Redacted]
     Year 2005              [*** Redacted]         [*** Redacted]          [*** Redacted]
     Year 2006              [*** Redacted]         [*** Redacted]          [*** Redacted]
     Each Year Thereafter   [*** Redacted]         [*** Redacted]          [*** Redacted]
</TABLE>

     LICENSEE's MINIMUM INVESTMENT may be allocated by LICENSEE in any way
     within the three categories set forth above among the different subject
     matter of the RELATED LICENSE AGREEMENTS.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              11
<PAGE>
                                   ARTICLE V
                                   REPORTING

5.1  Within [*** Redacted] months of the Effective Date, LICENSEE will provide
     to HARVARD a written research and development plan acceptable to LICENSEE's
     investors under which LICENSEE intends to bring the subject matter of the
     licenses granted hereunder into commercial use upon execution of this
     Agreement. Such plan will include projections of sales and proposed
     marketing efforts. It is understood that LICENSEE may provide one research
     and development plan for all RELATED LICENSE AGREEMENTS.

5.2  No later than [*** Redacted] days after [*** Redacted] of each calendar
     year, LICENSEE shall provide to HARVARD a written annual Progress Report
     describing progress on the commercialization of PATENT RIGHTS during the
     most recent [*** Redacted] month period ending [*** Redacted], the amount
     of LICENSEE's R&D SPENDING relating to the subject matter described or
     claimed in PATENT RIGHTS during such time, and plans for the forthcoming
     year. If multiple technologies are covered by the license granted
     hereunder, the Progress Report shall provide the information set forth
     above for each technology. If progress differs from that anticipated in the
     plan required under Section 5.1, LICENSEE shall explain the reasons for the
     difference and, if appropriate or necessary, provide a modified research
     and development plan for HARVARD's review. It is understood that LICENSEE
     may provide one Progress Report covering all RELATED LICENSE AGREEMENTS.

5.3  LICENSEE shall report to HARVARD the date of its first NET SALE of a
     LICENSED PRODUCT (or the date of its first use of a LICENSED PROCESS from
     which SERVICE INCOME is derived) in each country within [*** Redacted] days
     of occurrence. It is understood that LICENSEE shall be obligated to report
     the date of first sale of LICENSED PRODUCTS (or the first commercial use of
     LICENSED PROCESSES) under this Section 5.3 only once for each country.

5.4  (a) LICENSEE shall submit to HARVARD within [*** Redacted] days after each
     calendar [*** Redacted] ending [*** Redacted], a Royalty Report setting
     forth, for the most recent [*** Redacted] that ended on [*** Redacted], at
     least the following information:

        (i)   the number and identification of LICENSED PRODUCTS sold by
              LICENSEE that constitute a NET SALE, in each country;

        (ii)  total amounts received for such LICENSED PRODUCTS;

        (iii) an accounting for all LICENSED PROCESSES used or sold;

        (iv)  deductions applicable to determine the NET SALES thereof;

        (v)   the amount of SUBLICENSE INCOME received by LICENSEE;

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              12

<PAGE>
          (vi)      the amount of SERVICE INCOME received by LICENSEE; and

          (vii)     the amount of royalty due for such reporting period, or, if
                    no royalties are due to HARVARD for such reporting period,
                    the statement that no royalties are due.

          Such report shall be certified as correct by an officer of LICENSEE
          and shall include a listing of all deductions from royalties. It is
          understood that LICENSEE may submit one Royalty Report covering all
          RELATED LICENSE AGREEMENTS. However, the Royalty Report shall, for
          each type of income, provide a detailed listing of the RELATED LICENSE
          AGREEMENTS that are involved.

     (b)  LICENSEE shall pay to HARVARD with each such Royalty Report the amount
          of royalty due with respect to such [*** Redacted]. If multiple
          technologies are covered by the license granted hereunder, LICENSEE
          shall specify which PATENT RIGHTS are utilized for each category of
          LICENSED PRODUCTS and/or LICENSED PROCESSES for which royalties are
          separately reported in the Royalty Report.

     (c)  All payments due hereunder shall be deemed received when funds are
          credited to HARVARD's bank account and shall be payable by check or
          wire transfer in United States dollars. Conversion of foreign currency
          to U.S. dollars shall be made at the conversion rate existing in the
          United States (as reported in the New York Times or the Wall Street
          Journal) on the last working day of each royalty period. No transfer,
          exchange, collection or other charges shall be deducted from such
          payments. If legal restrictions block the removal of local currency
          from any country where a LICENSED PRODUCT is sold, the royalties
          payable under this Agreement on NET SALES, SERVICE INCOME and
          SUBLICENSING INCOME earned in such currency in such country shall
          continue to be reported and accrued, but will not be paid until such
          currency may be removed from such country.

     (d)  All plans or reports received under Sections 5.1, 5.2, 5.3, 5.4 shall
          deemed Confidential Information of LICENSEE subject to Section 11.1;
          provided, however, that HARVARD may disclose such information as
          required by law under Section 11.1(b), and may include in its usual
          reports the annual amounts of royalties paid.

     (e)  Late payments shall be subject to a charge of [*** Redacted] percent
          ([***Redacted]%) per month, or $[*** Redacted], whichever is greater.

5.5  In the event of acquisition, merger, change of corporate name, or change of
     make-up, organization, or identity, LICENSEE shall notify HARVARD in
     writing within [*** Redacted] days of such event.

5.6  If LICENSEE or any of its sublicensees does not qualify as a "small entity"
     as provided by the United States Patent and Trademark Office, LICENSEE must
     notify HARVARD immediately.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              13
<PAGE>
                                   ARTICLE VI
                                 RECORD KEEPING

6.1  LICENSEE shall keep accurate records (together with supporting
     documentation) of LICENSED PRODUCTS made, used or sold under this
     Agreement, sufficient to determine the amount of royalties due to HARVARD
     hereunder. Such records shall be retained for at least [*** Redacted] years
     following the end of the reporting period to which they relate. They shall
     be available during normal business hours for examination, upon HARVARD's
     reasonable request, not more than once in any [*** Redacted] month period
     and upon at least [*** Redacted] days prior notice, by an independent
     accountant under a duty of confidentiality, selected by HARVARD and
     reasonably acceptable to LICENSEE, for the sole purpose of verifying
     reports and payments under Section 5.4. In conducting examinations pursuant
     to this Section, HARVARD's accountant shall have access to records
     materially relevant to the calculation of royalties under Article IV.

6.2  HARVARD's accountant shall only disclose to HARVARD whether the reports
     and payments of royalties hereunder are accurate, and the amount of the
     underreporting or underpayment of royalties by LICENSEE, if any.

6.3  Such examination of HARVARD's accountant shall be at HARVARD's expense,
     except that if such examination shows an underreporting or underpayment in
     excess of [*** Redacted] percent ([*** Redacted]%) for any [*** Redacted]
     month period, then LICENSEE shall pay the reasonable out-of-pocket cost of
     such examination as well as any additional sum that would have been payable
     to HARVARD had the LICENSEE reported correctly, plus interest on said sum
     at the rate of [*** Redacted] percent ([*** Redacted]%) per month.

                                  ARTICLE VII
               DOMESTIC AND FOREIGN PATENT FILING AND MAINTENANCE

7.1  Within 30 days of the closing of LICENSEE's sale of Series A Preferred
     Stock to venture capital investors, but not later than 60 days after the
     Effective Date, LICENSEE shall reimburse HARVARD for [*** Redacted] percent
     ([*** Redacted]%) of all reasonable out-of-pocket expenses HARVARD has
     incurred for the preparation, filing, prosecution and maintenance of PATENT
     RIGHTS, including for counseling with regard to such preparation, filing,
     prosecution and maintenance. [*** Redacted] percent of such expenses total
     $[*** Redacted] as of the most recent invoice paid by HARVARD. Thereafter,
     LICENSEE shall reimburse HARVARD for [*** Redacted] percent ([***
     Redacted]%) of all such future expenses upon receipt of quarterly invoices
     from HARVARD. Should this license be converted to an exclusive one,
     LICENSEE shall then reimburse all such expenses. Late payment of these
     invoices shall be subject to interest charges of [*** Redacted] percent
     ([*** Redacted]%) per month.

     HARVARD shall be responsible for the preparation, filing, prosecution and
     maintenance of any and all patent applications and patents included in
     PATENT RIGHTS.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              14

<PAGE>
     HARVARD will instruct counsel to directly notify HARVARD and LICENSEE and
     provide them copies of any communications to and from the United States and
     foreign patent offices relating to said prosecution, and drafts of all
     communications to the various patent offices, and will instruct counsel to
     consider any comments on such drafts, so that LICENSEE will be informed and
     apprised of the continuing prosecution of patent applications in PATENT
     RIGHTS. LICENSEE (as well as NANTERO) shall have reasonable opportunity to
     participate in decision making on key decisions affecting filing,
     prosecution and maintenance of patents and patent applications in PATENT
     RIGHTS.

7.2  HARVARD and LICENSEE shall cooperate fully in the preparation, filing,
     prosecution and maintenance of PATENT RIGHTS and of all patents and patent
     applications licensed to LICENSEE hereunder, executing all papers and
     instruments or requiring members of HARVARD to execute such papers and
     instruments so as to enable HARVARD to apply for, to prosecute and to
     maintain patent applications and patents in HARVARD's name in any country.
     Each party shall provide to the other [*** Redacted] notice as to all
     matters which come to its attention and which may affect the preparation,
     filing, prosecution or maintenance of any such patent applications or
     patents. In particular, LICENSEE must immediately notify HARVARD if
     LICENSEE does not qualify as a "small entity" as provided by the United
     States Patent and Trademark Office.

7.3  LICENSEE may elect to surrender its rights to any patent or patent
     application within PATENT RIGHTS in any country upon [*** Redacted] days
     written notice to HARVARD. Such notice shall not relieve LICENSEE from
     responsibility to reimburse HARVARD for expenses under Section 7.1 relating
     to the filing, prosecution or maintenance of such patent or patent
     application incurred prior to the receipt of the written notice by HARVARD
     (or a longer period if specified in LICENSEE'S notice).

                                  ARTICLE VIII
                                  INFRINGEMENT

8.1  With respect to any PATENT RIGHTS that have not been rendered non-exclusive
     under Section 4.3(d), LICENSEE shall have the right to enforce in its own
     name and at its own expense any patents within such PATENT RIGHTS. HARVARD
     agrees to notify LICENSEE promptly of each infringement of such patents of
     which HARVARD is or becomes aware.

8.2  LICENSEE acknowledges that the other co-exclusive licensee of PATENT RIGHTS
     shall have rights identical to LICENSEE to prosecute infringers and that
     both co-exclusive licensees shall be bound by the identical terms of this
     Section 8.2. In any prosecution instituted by LICENSEE, LICENSEE must
     notify the other co-exclusive licensee of the existence of such legal
     action and allow the other co-exclusive licensee to join as a plaintiff. In
     addition, in the event the other co-exclusive licensee instigates and
     infringement prosecution, LICENSEE hereby consents to being joined as a
     plaintiff in such suit solely for the purpose of procuring standing to
     bring the action and at the sole expenses of the instigating party. To the
     extent that LICENSEE desires to participate in

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              15
<PAGE>
     any strategic decisions affecting the prosecution of an action brought by
     the other co-exclusive licensee, LICENSEE acknowledges and it and the other
     co-exclusive licensee will necessarily have to reach a mutual agreement
     concerning litigation expenses and strategy. In no event shall HARVARD
     incur any liability or expense in connection with any action brought by
     LICENSEE or the other co-exclusive licensee, joint or otherwise. During any
     such litigation, HARVARD will agree to not license any defendant or accused
     infringer of the PATENT RIGHTS in the litigation, without LICENSEE's prior
     written consent.

8.3  (a) If LICENSEE elects to commence an action as described above, HARVARD
     may, to the extent permitted by law, elect to join as a party in that
     action. Regardless of whether HARVARD elects to join as a party, HARVARD
     shall cooperate fully with LICENSEE in connection with any such action,
     including making available relevant personnel, information, records,
     papers, samples, specimens and other similar materials for the purposes of
     such action as reasonably requested by LICENSEE through the Office of
     Technology and Trademark Licensing at HARVARD.

     (b) If HARVARD elects to join as a party pursuant to Subsection (a),
         HARVARD shall jointly control the action with LICENSEE.

     (c) LICENSEE shall reimburse HARVARD for any out-of-pocket costs HARVARD
         reasonably incurs, including reasonable attorneys' fees, as part of an
         action brought by LICENSEE under Section 8.1, whether or not HARVARD
         becomes a co-plaintiff.

8.4  If LICENSEE elects to commence an action as described above, LICENSEE may
     deduct from its royalty payments to HARVARD with respect to the patent(s)
     subject to suit an amount not exceeding [*** Redacted] percent ([***
     Redacted]%) of LICENSEE's expenses and costs of such action, including
     reasonable attorneys' fees and reimbursement of amounts under Section
     8.3(c) above; provided, however, that such reduction shall not exceed [***
     Redacted] percent [[*** Redacted]%] of the [*** Redacted] due to HARVARD
     with respect to the patent(s) subject to suit for each calendar year. If
     such [*** Redacted] percent [*** Redacted] of LICENSEE's expenses and costs
     exceeds the amount of [*** Redacted] deducted by LICENSEE for any calendar
     year, LICENSEE may to that extent reduce the [*** Redacted] due to HARVARD
     from LICENSEE in succeeding calendar years, but never by more than [***
     Redacted] percent [*** Redacted] of the [*** Redacted] due in any [***
     Redacted] with respect to the patent(s) subject to suit.

8.5  Neither LICENSEE nor the other co-exclusive licensee may enter into a
     settlement, consent judgment or other voluntary final disposition of any
     suit under Article 8 (except for Section 8.10) without the prior written
     consent of HARVARD, which consent shall not be unreasonably withheld.

8.6  Recoveries or reimbursements from actions commenced by LICENSEE pursuant to
     this Article shall first be applied to reimburse LICENSEE and HARVARD for
     litigation costs not paid from royalties and [*** Redacted] pursuant to
     Section 8.4. Any remaining recoveries or reimbursements shall be shared as
     follows: [*** Redacted]% to LICENSEE and [*** Redacted]% to HARVARD. In the
     event both co-

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              16

<PAGE>

      exclusive licensees undertake the suit, the provisions of this Section
      will be modified to take into account each licensee's expenses and lost
      profits/revenues. Such modification shall be negotiated by the parties
      and the other co-exclusive licensee in good faith.

8.7   If LICENSEE elects not to exercise its right to enforce the PATENT RIGHTS
      against any infringement pursuant to this Article, HARVARD may do so at
      its own expense, controlling such action and retaining all recoveries
      therefrom. LICENSEE shall cooperate fully with HARVARD in connection with
      any such action.

8.8   Without limiting the generality of Section 8.7, HARVARD may, at its
      election and by notice to LICENSEE, establish a time limit of
      [*** Redacted] days for LICENSEE to decide whether to enforce the PATENT
      RIGHTS against any infringement of which HARVARD is or becomes aware. If,
      by the end of such [*** Redacted] day period, LICENSEE has not commenced
      such an action or taken reasonable efforts to settle such infringement,
      HARVARD may enforce the PATENT RIGHTS against such an infringement at its
      own expense, controlling such action and retaining all recoveries
      therefrom. Notwithstanding sections 8.7 and 8.8, HARVARD shall not bring
      any action alleging the infringement of PATENT RIGHTS against any
      sublicensee of LICENSEE under PATENT RIGHTS, without the consent of
      LICENSEE.

8.9   If a declaratory judgment action is brought naming LICENSEE as a
      defendant and alleging invalidity of any of the PATENT RIGHTS, if both
      parties agree, HARVARD may take over the sole defense of the action at
      its own expense. LICENSEE shall cooperate fully with HARVARD in
      connection with any such action.

8.10  If LICENSEE or any sublicensee, distributor or other customer is sued by a
      third party charging infringement of patent rights that dominate a claim
      of PATENT RIGHTS, with respect to the manufacture, use, distribution or
      sale of LICENSED PRODUCT or practice or use of a LICENSED PROCESS,
      LICENSEE will promptly notify HARVARD. As between the parties to this
      Agreement, LICENSEE will be entitled to control the defense in any such
      action(s) and withhold up to [*** Redacted] ( [*** Redacted]) of the
      amount otherwise payable to HARVARD hereunder to pay for defense costs,
      attorneys fees and any liability incurred in such infringement suit(s). If
      Licensee is required to pay a royalty or other amount to a third party as
      a result of a final judgment or settlement, the amounts payable to HARVARD
      hereunder will be reduced as provided in Section 4.3 above.

                                   ARTICLE IX
                            TERMINATION OF AGREEMENT

9.1   This Agreement, unless terminated as provided herein, shall remain in
      effect until the last patent or patent application in PATENT RIGHTS has
      expired or been abandoned.

9.2   HARVARD may terminate this agreement as follows:

      (a)   If LICENSEE does not make a payment due hereunder and fails to cure
            such non-payment (including the payment of interest in accordance
            with Section 5.4(e)) within  [*** Redacted]  days after date of
            notice in writing of such non-payment by

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             17
<PAGE>
         HARVARD. If LICENSEE disputes the amount of such non-payment in writing
         within such [*** Redacted] day period, HARVARD shall not have the right
         to terminate this Agreement until it has been determined in an
         arbitration proceeding under Section 11.10 below that LICENSEE has
         failed to pay amounts owed hereunder, and thereafter Licensee does not
         cure such failure within [*** Redacted] days after such determination.
         This Section 9.2(a) shall not, however, suspend any obligation of
         LICENSEE to compensate HARVARD for any undisputed amounts, as provided
         for under any term of this Agreement, during the pendency of the
         foregoing arbitration and cure period.

     (b) If LICENSEE defaults in its obligations under Sections 11.2(c) and
         11.2(d) to procure and maintain insurance, and fails to cure such
         breach within [*** Redacted] days after notice in writing of such
         breach by HARVARD.

     (c) If LICENSEE shall make an assignment for the benefit of creditors, or
         shall have a petition in bankruptcy filed for or against it, provided
         that such bankruptcy petition is not dismissed within [*** Redacted]
         days after its filing. Such termination shall be effective immediately
         upon HARVARD giving written notice to LICENSEE.

     (d) If LICENSEE is convicted of a felony within the United States relating
         to the manufacture, use, or sale of LICENSED PRODUCTS.

     (e) Except as provided in Subsections (a), (b), (c), (d) above, if LICENSEE
         materially breaches any obligations under this Agreement and the breach
         has not been cured within [*** Redacted] days after the date of
         notice in writing of such breach by HARVARD. If LICENSEE disputes in
         writing that it has materially breached this Agreement within such
         [*** Redacted] day period, HARVARD shall not have the right to
         terminate this Agreement until it has been determined in an arbitration
         proceeding under Section 11.10 below that LICENSEE has materially
         breached this Agreement, and thereafter Licensee does not cure such
         breach within [*** Redacted] days after such determination. This
         Section 9.2(e) shall not, however, suspend any obligation of LICENSEE
         to compensate HARVARD for any undisputed amounts, as provided for under
         any term of this Agreement, during the pendency of the foregoing
         arbitration and cure period.

9.3  All sublicenses granted by LICENSEE under this Agreement in compliance
     with the terms and conditions hereof shall survive the termination of this
     Agreement upon the request of the party to whom such sublicense is
     granted, provided that such party agrees in writing that (i) it will pay
     all royalties or other amounts that otherwise would have been due
     thereafter under such sublicense directly to HARVARD rather than LICENSEE,
     and (ii) HARVARD shall not be held liable for the breach or the
     performance of any obligations stated in such sublicense unless such
     obligations have been expressly assumed in writing by HARVARD.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.
                                                                              18

<PAGE>
9.4  LICENSEE may terminate this Agreement by giving [*** Redacted] days advance
     written notice of termination to HARVARD. Upon termination, LICENSEE shall
     promptly submit a Royalty Report to HARVARD for the final reporting period
     and any royalty payments incurred during such reporting period, and any
     unreimbursed patent expenses under Section 7 that have been invoiced by
     HARVARD, shall become immediately payable with such Royalty Report.

9.5  Articles I, VI, IX, X and XI (except for Section 11.7) of this Agreement
     shall survive termination. Article VIII shall survive with respect to any
     infringement of third parties and/or any lawsuits filed by or against
     LICENSEE, prior to the termination of this Agreement. In the event this
     Agreement is terminated for any reason, LICENSEE may, within [*** Redacted]
     after the effective date of such termination, sell or otherwise dispose of
     all LICENSED PRODUCTS that LICENSEE may have on hand on the effective date
     of such termination, and fulfill any contracts requiring the use of
     LICENSED PRODUCTS and/or LICENSED PROCESSES that LICENSEE may have entered
     into prior to the date of such termination, subject to LICENSEE's payment
     of amounts due to HARVARD under Section 4.3 of this Agreement.

9.6  In the event that after termination of this Agreement, HARVARD licenses
     PATENT RIGHTS to another licensee, HARVARD shall use commercially
     reasonable efforts to require such other licensee to pay the costs of the
     preparation, filing, prosecution and maintenance of PATENT RIGHTS. HARVARD
     shall reimburse LICENSEE for any costs so paid by such other licensee to
     the extent LICENSEE paid for such costs under Section 7.1.

                                   ARTICLE X
                         REPRESENTATIONS AND WARRANTIES

10.1 Except for the rights, if any, of the Government of the United States,
     HARVARD represents and warrants that:

     (a)  HARVARD is the owner of the entire right, title and interest in and to
          the PATENT RIGHTS as they exist on the Effective Date;

     (b)  HARVARD has the right and authority to enter into this Agreement and
          grant the rights and licenses set forth herein, including without
          limitation under PATENT RIGHTS;

     (c)  HARVARD has not previously granted, and will not grant in the future,
          any rights in the PATENT RIGHTS that are inconsistent with the rights
          and licenses granted to LICENSEE herein;

     (d)  To the best knowledge of HARVARD without having made an investigation,
          as of the Effective Date, practice of inventions within the PATENT
          RIGHTS does not infringe any patent rights, trade secrets or other
          proprietary rights of any third party,

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.
                                                                              19
<PAGE>
          (e)  To the best knowledge of HARVARD, as of the Effective Date,
               HARVARD does not own any rights in any other patent application,
               the claims of which would dominate the claims of a patent or
               patent application within the PATENT RIGHTS, or any practice of
               PATENT RIGHTS. IF HARVARD owns, now or thereafter, any such
               rights in such patents or patent applications on which
               [*** Redacted] is an inventor, HARVARD will negotiate in good
               faith to the extent it has the legal right to do so with LICENSEE
               to grant LICENSEE rights to the extent sufficient to practice
               PATENT RIGHTS.

          (f)  To the best knowledge of HARVARD, all prior and current
               agreements between HARVARD and other sponsors of research under
               which HARVARD has obligations relating to PATENT RIGHTS are
               listed on Appendix C.

     10.2  Except as set forth in this Agreement, HARVARD does not warrant the
           validity of the PATENT RIGHTS licensed hereunder and makes no
           representations whatsoever with regard to the scope of the licensed
           PATENT RIGHTS or that such PATENT RIGHTS may be exploited by
           LICENSEE, an AFFILIATE, or sublicensee without infringing other
           patents.

     10.3  EXCEPT FOR THE WARRANTIES STATED IN THIS AGREEMENT, HARVARD
           EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND
           MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS
           FOR ANY PARTICULAR PURPOSE OF THE PATENT RIGHTS OR INFORMATION
           SUPPLIED BY HARVARD, LICENSED PROCESSES OR LICENSED PRODUCTS
           CONTEMPLATED BY THIS AGREEMENT.

                                   ARTICLE XI
                                    GENERAL

     11.1 (a)  The parties may, from time to time, in connection with this
               Agreement disclose to each Confidential Information. Any
               Confidential Information shall be in writing and marked
               "confidential" and disclosed only to the Office of Technology and
               Trademark Licensing. As used in this Agreement, "Confidential
               Information" of a party shall mean (i) any information disclosed
               in writing by such party to the other party, which is marked by
               such party with the legend "CONFIDENTIAL" or other similar legend
               sufficient to identify the information as its confidential
               information, (ii) any information disclosed orally by such party
               to the other party which is identified as confidential at the
               time of disclosure and is confirmed as confidential in writing
               within thirty (30) days after such time of disclosure, or (iii)
               any information deemed "Confidential Information under the terms
               of this Agreement. With respect to categories (i) and (ii) above,
               "Confidential Information" shall not include any information that
               is: (1) already known to the receiving party at the time of
               disclosure hereunder, or (2) now or hereafter becomes publicly
               known other than through acts or omissions of the receiving
               party, or (3) is disclosed to the receiving party by a third
               party under no obligation of confidentiality

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              20
<PAGE>
          to the disclosing party or (4) is independently developed by the
          receiving party without use of the Confidential Information of the
          disclosing party.

     (b)  Each party shall maintain in confidence, and shall not use for any
          purpose or disclose to any third party, the Confidential Information
          of the other party. Notwithstanding the foregoing, the receiving party
          may use or disclose the Confidential Information of the disclosing
          party (i) to the extent necessary to exercise its rights or fulfill
          its obligations and/or duties under this Agreement, and (ii) to comply
          with applicable law or governmental regulations or court order,
          provided that the receiving party will give reasonable advance notice
          to the disclosing party, and will use its reasonable efforts to
          minimize the disclosure of Confidential Information and to secure
          confidential treatment of any Confidential Information disclosed.

     (c)  The terms of this Agreement shall be deemed "Confidential Information"
          of both parties. In addition to the permissible disclosures set forth
          in subsection (b) above, LICENSEE may disclose such terms in
          confidence to its financial and legal advisors, consultants, potential
          or actual investors, potential or actual merger or acquisition
          partners, and others on a need-to-know basis.

11.2 (a)  LICENSEE shall indemnify, defend and hold harmless HARVARD and its
          current or former and future directors, governing board members,
          trustees, officers, faculty and employees (collectively, the
          "INDEMNITEES"), from and against any lawsuit or cause or action
          against the INDEMNITEES brought by a third party (collectively,
          "Claims"), based upon, arising out of, or otherwise relating to this
          Agreement, including without limitation any cause of action relating
          to product liability concerning any product, process, or service made,
          used or sold pursuant to any right of license granted under this
          Agreement, except to the extent such Claims arise out of or otherwise
          relate to the gross negligence or intentional misconduct of any
          INDEMNITEES; and further provided that (i) LICENSEE receives prompt
          notice of any such Claims; (ii) LICENSEE is given the exclusive right
          to control the defense and settlement of such Claims; and (iii)
          LICENSEE shall not be obligated to indemnify any INDEMNITEE in
          connection with any settlement for any Claim unless LICENSEE consents
          in writing to such settlement.

     (b)  LICENSEE shall, at its own expense, defend against any actions brought
          or filed against any INDEMNITEE hereunder with respect to the subject
          of indemnity contained herein, whether or not such actions are
          rightfully brought.

     (c)  Beginning at the time any such product, process or service is being
          commercially distributed or sold (other than for the purpose of
          obtaining regulatory approvals) by LICENSEE or by a SUBLICENSEE,
          AFFILIATE or agent of LICENSEE, LICENSEE shall, at its sold cost and
          expense, procure and maintain commercial general liability insurance
          in amounts not less than $[*** Redacted] per incident and $[***
          Redacted] annual aggregate and naming the Indemnitees as additional
          insureds. During clinical trials of any such product, process or
          service, LICENSEE shall, at its sole cost and expense, procure and
          maintain commercial general liability insurance in such equal or
          lesser amount as HARVARD shall require, naming the Indemnitees as

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              21

<PAGE>
          additional insureds. Such commercial general liability insurance shall
          provide: (i) product liability coverage; and (ii) broad form
          contractual liability coverage for LICENSEE's indemnification under
          this Agreement. If LICENSEE elects to self-insure all or part of the
          limits described above (including deductibles or retentions which are
          in excess of $[*** Redacted] annual aggregate) such self-insurance
          program must be acceptable to HARVARD and the Risk Management
          Foundation of the Harvard Medical Institutions, Inc. in their sole
          discretion. The minimum amounts of insurance coverage required shall
          not be construed to create a limit of LICENSEE's liability with
          respect to its indemnification under this Agreement.

     (d)  LICENSEE shall provide HARVARD with written evidence of such
          insurance upon request of HARVARD. LICENSEE shall provide HARVARD with
          written notice at least fifteen (15) days prior to the cancellation,
          non-renewal or material change in such insurance; if LICENSEE does not
          obtain replacement insurance providing comparable coverage within such
          fifteen (15) day period, HARVARD shall have the right to terminate
          this Agreement in accordance with Section 9.2(c).

     (e)  LICENSEE shall maintain such commercial general liability insurance
          beyond the expiration or termination of this Agreement during: (i) the
          period that any product, process, or service, relating to, or
          developed pursuant to, this Agreement is being commercially
          distributed or sold by LICENSEE or by a sublicensee, AFFILIATE or
          agent of LICENSEE; and (ii) a reasonable period after the period
          referred to in Subsection (e)(i) above which in no event shall be less
          than [*** Redacted] years.

11.3 Nothing in this Agreement shall be construed as conferring any right to use
     HARVARD's name or insignia, or any adaptation of them, or the name of any
     of HARVARD's inventors in any advertising, promotional or sales literature
     without the prior written approval of HARVARD, or the inventor in the case
     of the use of the name of an inventor.

11.4 Except as stated in this Section 11.4, without the prior written approval
     of HARVARD in each instance, neither this Agreement nor the rights granted
     hereunder shall be transferred or assigned in whole or in part by LICENSEE
     to any person whether voluntarily or involuntarily, by operation of law or
     otherwise. LICENSEE may transfer or assign this Agreement and all rights
     hereunder, upon notice to HARVARD but without its consent, to any entity
     that succeeds to all or substantially all of the business of LICENSEE to
     which this Agreement pertains, whether by merger, operation of law,
     purchase or sale of all or substantially all of LICENSEE's stock or assets
     or otherwise; provided that such assignee or transferee promptly agrees in
     writing to be bound by the terms and conditions of this Agreement. Subject
     to the foregoing, this Agreement shall be binding upon the respective
     successors, legal representatives and assignees of HARVARD and LICENSEE.

11.5 The interpretation and application of the provisions of this Agreement
     shall be governed by the laws of the Commonwealth of Massachusetts.

11.6 LICENSEE shall comply with all applicable laws and regulations. In
     particular, it is understood and acknowledged that the transfer of certain
     commodities and technical data

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              22

<PAGE>

     is subject to United States laws and regulations controlling the export of
     such commodities and technical data, including all Export Administration
     Regulations of the United States Department of Commerce. These laws and
     regulations among other things, prohibit or require a license for the
     export of certain types of technical data to certain specified countries.
     LICENSEE hereby agrees and gives written assurance that it will comply with
     all United States laws and regulations controlling the export of
     commodities and technical data, that it will be solely responsible for any
     violation of such by LICENSEE or its AFFILIATES or sublicensees, and that
     it will defend and hold HARVARD harmless in the event of any legal action
     of any nature occasioned by such violation with respect to LICENSED
     PRODUCTS.

11.7 LICENSEE agrees: (i) to obtain all regulatory approvals required for the
     manufacture and sale of LICENSED PRODUCTS and LICENSED PROCESSES; and (ii)
     to mark LICENSED PRODUCTS with the numbers of the applicable patents within
     PATENT RIGHTS, to the extent required by law. LICENSEE also agrees to
     register or record this Agreement as is required by law or regulation in
     any country where the license is in effect, and HARVARD shall cooperate
     fully with LICENSEE in connection with any such registration or
     recordation.

11.8 Any notices to be given hereunder shall be sufficient if signed by the
     party (or party's attorney) giving same and either: (i) delivered in
     person; (ii) mailed certified mail return receipt requested; or (iii) faxed
     to other party if the sender has evidence of successful transmission and if
     the sender promptly sends the original by ordinary mail, in any event to
     the following addresses:

     If to LICENSEE:
        c/o CW Group East
        1041 Third Avenue
        New York, New York 10021
        Attn: Lawrence A. Bock
        Fax: 212/644-0354

     cc:   Wilson, Sonsini, Goodrich & Rosati
           650 Page Mill Road
           Palo Alto, California 94304
           Attn: Michael J. O'Donnell, Esq.
           Fax: 650/493-6811

     If to HARVARD:
           Office for Technology and Trademark Licensing
           Harvard University
           Holyoke Center, Suite 727
           1350 Massachusetts Avenue
           Cambridge, MA 02138
           Fax: (617)495-9568

                                                                              23
<PAGE>
      By such notice either party may change their address for future notices.

      Notices delivered in person shall be deemed given on the date delivered.
      Notices sent by fax shall be deemed given on the date faxed. Notices
      mailed shall be deemed given on the date postmarked on the envelope.

11.9  Should a court of competent jurisdiction later hold any provision of this
      Agreement to be invalid, illegal, or unenforceable, and such holding is
      not reversed on appeal, it shall be considered severed from this
      Agreement. All other provisions, rights and obligations shall continue
      without regard to the severed provision, provided that the remaining
      provisions of this Agreement are in accordance with the intention of the
      parties.

11.10 In the event of any controversy or claim arising out of or relating to
      any provision of this Agreement or the breach thereof, the parties shall
      try to settle such conflict amicably between themselves. Subject to the
      limitation stated in the final sentence of this Section, any such
      conflict which the parties are unable to resolve promptly shall be
      settled through arbitration conducted in accordance with the rules of the
      American Arbitration Association. The demand for arbitration shall be
      filed within a reasonable time after the controversy or claim has arisen,
      and in no event after the date upon which institution of legal
      proceedings based on such controversy or claim would be barred by the
      applicable statute of limitation. Such arbitration shall be held in
      Boston, Massachusetts. The award through arbitration shall be final and
      binding. Either party may enter any such award in a court having
      jurisdiction or may make application to such court for judicial
      acceptance of the award and an order of enforcement, as the case may be.
      Notwithstanding the foregoing, either party may, without recourse to
      arbitration, assert against the other party a third-party claim or
      cross-claim in any action brought by a third party, to which the subject
      matter of this Agreement may be relevant.

11.11 This Agreement constitutes the entire understanding between the parties
      and neither party shall be obligated by any condition or representation
      other than those expressly stated herein or as may be subsequently agreed
      to by the parties hereto in writing.

11.12 Nothing in this Agreement shall be deemed to require LICENSEE to exploit
      the PATENT RIGHTS, except to the extent expressly set forth in this
      Agreement, and nothing in this Agreement shall be deemed to prevent
      LICENSEE from commercializing products similar to or competitive with a
      LICENSED PRODUCT.

11.13 The relationship between HARVARD and LICENSEE established by this
      Agreement is that of independent contractors. Nothing in this Agreement
      shall be construed to create any other relationship between HARVARD and
      LICENSEE. 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.

11.14 In the event either party hereto is prevented from or delayed in the
      performance of any of its obligations hereunder by reason of acts of God,
      war, strikes, riots, storms, fires or any other cause whatsoever beyond
      the reasonable control of the party, the party so prevented

                                                                              24
<PAGE>
       or delayed shall be excused from the performance of any such obligation
       to the extent and during the period of such prevention or delay.

11.15  NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR TO ANY THIRD PARTY
       FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY OR INCIDENTAL DAMAGES
       (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO THE SAME),
       ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT, WHETHER SUCH CLAIM IS
       BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EVEN IF AN
       AUTHORIZED REPRESENTATIVE OF SUCH PARTY IS ADVISED OF THE POSSIBILITY OF
       LIKELIHOOD OF SAME.

11.16  This Agreement may be executed in counterparts, each of which shall be
       deemed an original, but both of which together shall constitute one and
       the same instrument.

       IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
       executed by their duly authorized representatives.

<Table>
<Caption>
         PRESIDENT AND FELLOWS                                         COMPANY
          OF HARVARD COLLEGE

<S>                                                 <C>
           /s/ Joyce Brinton                                     /s/ Lawrence A. Bock
---------------------------------------------       ---------------------------------------------
         Joyce Brinton, Director                                       Signature
Office for Technology and Trademark Licensing

                                                                   Lawrence A. Bock
                                                    ---------------------------------------------
                                                                         Name

                  10/2/01                                          President and CEO
---------------------------------------------       ---------------------------------------------
                   Date                                                  Title

                                                                        10/3/01
                                                    ---------------------------------------------
                                                                          Date
</Table>

                                                                              25
<PAGE>

                                   APPENDIX A

The following comprise PATENT RIGHTS:

[*** Redacted]

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                              26
<PAGE>
                                   APPENDIX B

NANOSYS, INC. CAPITALIZATION TABLE - CONFIDENTIAL

FOUNDERS' STOCK (Common Stock Capitalization Before Series A Preferred Stock
Financing)

<Table>
<Caption>
                             % of Founders Stock       # of Shares of Common Stock     Amount Invested
<S>                          <C>                       <C>                            <C>

[*** Redacted]#               11.0%                             550,000                       $550
[*** Redacted]#                9.0%                             450,000                       $450
[*** Redacted]@                2.0%                             100,000                       $100
CW Group *                    12.0%                             600,000                       $600
Other advisor (tbd)             2%                              100,000                       $100
Reserve                       64.0%                           3,200,000                     $3,200

Total Common Shares          100.0%                           5,000,000                     $5,000

PROPOSED SERIES A PREFERRED
STOCK

Investors as a group                                5,000,000-6,666,667           $1,500-2,000,000
Total Series A Preferred Shares                     5,000,000-6,666,667           $1,500-2,000,000
</Table>

#  Founders stock will vest monthly over a five year period
@  [*** Redacted] shares will be fully vested
*  Shares will be issued in the form of an option

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.
<PAGE>
                                   APPENDIX C

<TABLE>
CASE       LEAD INVENTOR    REPORT          TITLE                     AGENCY                GRANT NUMBERS
                             DATE
<S>        <C>              <C>             <C>                       <C>                   <C>

[*** Redacted]

</TABLE>

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]