Document:

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                                                                    EXHIBIT 10.3

                                                                  EXECUTION COPY

                     AMENDED AND RESTATED LICENSE AGREEMENT

            This Amended and Restated License Agreement (this "Agreement") is
made effective as of May 20, 2004 (the "Restated Effective Date") by and between
Ramot at Tel Aviv University Ltd., Company Registration No. 51-066714-0, a
corporation duly organized and existing under the laws of the State of Israel
("Ramot") and Predix Pharmaceuticals Holdings, Inc. a corporation duly organized
and existing under the laws of the State of Delaware (hereinafter
"Predix")(Ramot and Predix are each hereafter referred to individually as a
"Party" and together as the "Parties").

      WHEREAS, Ramot is a company formed by Tel-Aviv University ("TAU") for
applied research and industrial development of know-how and inventions developed
or arrived at by scientists of TAU; and

      WHEREAS, by operation of law or under the terms of such scientists'
employment or other relationships with TAU or Ramot, and according to agreement
between TAU and Ramot, all rights, title and interest in and to such know-how
and inventions are owned by Ramot; and

      WHEREAS, Ramot has the right and authority to enter into agreements
relating to such know-how and inventions; and

      WHEREAS, Ramot (formerly Ramot University Authority For Applied Research
and Industrial Development Ltd.) and Predix (by assignment from a predecessor
corporation) are Parties to that certain License Agreement dated September 18,
2000 (the "Effective Date"), pursuant to which Ramot granted to Predix an
exclusive license under intellectual property rights controlled by Ramot and
pertaining to certain drug discovery and development technology (the "Original
Agreement"); and

      WHEREAS, Ramot and Predix now desire to amend and restate the Original
Agreement in its entirety as set forth herein.

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Parties hereby agree as follows:

      1. DEFINITIONS

      Whenever used in the Agreement with an initial capital letter, the terms
defined in this Article 1 shall have the meanings specified.

            1.1 "AFFILIATE" shall mean, with respect to either Party, any other
person, corporation, company, partnership, joint venture and/or firm which
controls, is controlled by or is under common control with such Party. As used
in this Section 1.1 only, "control" of another person, corporation, company,
partnership, joint venture and/or firm shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the activities,
management or policies of such person, organization or entity, whether through
the ownership of voting securities, by contract or otherwise. Without limiting
the foregoing, control shall be presumed to

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

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exist when a person, corporation, company, partnership, joint venture and/or
firm (a) in the case of corporate entities, directly or indirectly owns at least
twenty percent (20%) of the stock or shares having the right to vote for the
election of directors, and (b) in the case of non-corporate entities, holds the
direct or indirect power to manage, direct or cause the direction of the
management and policies of the non-corporate entity or the power to elect at
least twenty percent (20%) of the members of the governing body of such
non-corporate entity, any corporation, firm, limited liability company,
partnership or other entity that directly controls or is controlled by or is
under common control with a Party to this Agreement.

                     1.2 "CONFIDENTIAL INFORMATION" shall mean any confidential
scientific, technical, trade or business information relating to the subject
matter of this Agreement disclosed by or on behalf of one party to the other
that is either marked as confidential or if disclosed orally is reduced to a
written summary marked as confidential and delivered to the receiving party
within 30 days of disclosure. Confidential Information does not include
information that (i) is in possession of the receiving Party at the time of
disclosure, as reasonably demonstrated by written records; (ii) is or later
becomes part of the public domain through no fault of the receiving Party; (iii)
is received by a receiving Party from a third Party having no obligation of
confidentiality to the disclosing Party; or (iv) is developed independently by a
receiving Party without use of the disclosing Party's Confidential Information.

                     1.3 "CONTROL" or "CONTROLLED" shall mean, with respect to
any intellectual property rights, the right and authority of a Party to grant
the rights, licenses and options provided for herein without breaching any
written agreement with any third Party by virtue of such grant.

                     1.4 "DEVELOPMENT" and "DEVELOP" shall mean, with respect to
any Licensed Product, all activities with respect to such Licensed
Product relating to research and development and in connection with seeking,
obtaining and/or maintaining any Regulatory Approval for such Licensed Product
in the Field in the Territory, including without limitation, all pre-clinical
research and development activities, all human clinical studies, all activities
relating to developing the ability to manufacture any Licensed Product or any
component thereof (including, without limitation, process development work), and
all other activities relating to seeking, obtaining and/or maintaining any
Regulatory Approvals from the FDA and/or any Foreign Regulatory Authority.

                     1.5 "DERIVATIVE WORK" means any software that is derived
from the Licensed Technology, including without limitation, software that is a
translation (including any translation into other computer languages),
portation, modification, correction, extension, upgrade, improvement,
compilation, abridgment, adaptation or other form of the Licensed Technology.
Derivative Works shall include without limitation any software that would
infringe any of Ramot's copyrights in the Licensed Technology.

                     1.6 "DERIVED PRODUCT" shall mean a product, compound or
drug candidate that is identified, characterized or developed through the Use of
Licensed Technology and/or a Derivative Work, which is not a Discovered Product,
and that is commercialized by Predix, an Affiliate of Predix or a Sublicensee.
"Derived Products" include, without limitation, those compounds listed on
Exhibit 1.6 attached hereto.

                     1.7 "DISCOVERED PRODUCT" shall mean a product, compound or
drug candidate that is identified from an in silico library through the Use of
the Licensed Technology and/or a

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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Derivative Work, which is commercialized by Predix, an Affiliate of Predix or a
Sublicensee, without Modification and which had not been Modified by Predix
prior to such identification. For purposes of this Section 1.7, "Modification"
and "Modified" shall mean modification or optimization that increases the
likelihood that the product, compound or drug candidate can be successfully
developed into a drug product, including without limitation, by making
modifications to such product, compound or drug candidate to alter the
pharmacokinetics, bioavailability, toxicity, or efficacy, to improve stability,
to solve or avoid manufacturing issues or to avoid the intellectual property
rights of a Third Party.

                     1.8 "DISPUTE" shall have the definition set forth in
Section 10.1.

                     1.9 "DRUG APPROVAL APPLICATION" shall mean any application
for Regulatory Approval (including pricing and reimbursement approvals) required
prior to any commercial sale or use of a Licensed Product in any country or
jurisdiction in the Territory.

                     1.10 "FIELD" shall mean and include all uses, including
without limitation, all uses relating to the diagnosis, prevention and treatment
of any and all diseases or conditions in humans or animals.

                     1.11 "FIRST COMMERCIAL SALE" shall mean, on a
country-by-country basis, the date of the first arm's length transaction,
transfer or disposition for value to a Third Party of a Licensed Product by or
on behalf of Predix or any Affiliate of Predix in such country after Regulatory
Approval has been achieved in the country in which such Licensed Product is
sold. Sales for test marketing, sampling and promotional uses, clinical trial
purposes or compassionate or similar use shall not be considered to constitute a
First Commercial Sale.

                     1.12 "FDA" shall mean the United States Food and Drug
Administration and any successor agency or authority thereto.

                     1.13 "FOREIGN REGULATORY AUTHORITIES" shall mean any
applicable supranational, national, federal, state or local regulatory agency,
department, bureau or other governmental entity of any country or jurisdiction
in the Territory (other than the FDA in the United States), having
responsibility in such country or jurisdiction for any Regulatory Approvals of
any kind in such country or jurisdiction, and any successor agency or authority
thereto.

                     1.14 "LICENSED PATENT RIGHTS" shall mean all Patent Rights
owned by Ramot that claim Licensed Technology.

                     1.15 "LICENSED PRODUCT" shall mean any and all Derived
Products and Discovered Products, taken collectively.

                     1.16 "LICENSED TECHNOLOGY" shall mean: (a) the inventions
disclosed in Israeli Patent Application IL 137885, including without limitation,
the novel computational method for modeling the three (3) dimensional structure
of G-protein coupled receptors from their one (1) dimensional sequence, (b) the
inventions disclosed in Israeli Patent Application IL 137886, including without
limitation, the novel automated protein design algorithm based on the physical
properties that determine the protein structure stability and that is useful for
predicting protein sequences likely to achieve a desired folding pattern in a
very high computational efficiency.

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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                     1.17 "LICENSED TECHNOLOGY EXCLUSIVITY TERM" shall mean that
period commencing on the Effective Date and continuing until the later of: (a)
the expiration or termination of the last [************] within the Licensed
Patent Rights and (b) the [*******] anniversary of the Effective Date.

                     1.18 "NET SALES" shall mean the gross invoiced sales price
for all Licensed Products sold by Predix and its Affiliates to Third Parties
throughout the Territory during each calendar quarter, less the following
amounts incurred or paid by Predix or its Affiliates during such calendar
quarter with respect to sales of Licensed Products regardless of the calendar
quarter in which such sales were made:

                      (a) trade, cash and quantity discounts or rebates actually
                      allowed or taken, including discounts or rebates to
                      governmental or managed care organizations;

                      (b) credits or allowances actually given or made for
                      rejection of, and for uncollectible amounts on, or return
                      of previously sold Licensed Products (including Medicare
                      and similar types of rebates);

                      (c) any charges for insurance, freight, and other
                      transportation costs directly related to the delivery of
                      Licensed Product to the extent included in the gross
                      invoiced sales price;

                      (d) any tax, tariff, duty or governmental charge levied on
                      the sales, transfer, transportation or delivery of a
                      Licensed Product (including any tax such as a value added
                      or similar tax or government charge) borne by the seller
                      thereof, other than franchise or income tax of any kind
                      whatsoever; and

                      (e) any import or export duties or their equivalent borne
                      by the seller;

                      provided that:

                     (i) In any transfers of Licensed Products between Predix
and an Affiliate of Predix or between an Affiliate of Predix and an Affiliate of
such Affiliate, Net Sales (subject to the deductions listed above) shall be
equal to the higher of: (x) the fair market value of the Licensed Products so
transferred, assuming an arm's length transaction made in the ordinary course of
business and (y) the total amount invoiced by such Affiliate on resale to an
independent third party purchaser; and

                     (ii) In the event that Predix, or an Affiliate of Predix,
receives non-monetary consideration for any Licensed Products or in the case of
transactions not at arm's length with a non-Affiliate of Predix or its
Affiliate, Net Sales (subject to the deductions listed above) shall be
calculated based on the fair market value of such consideration or transaction,
assuming an arm's length transaction made in the ordinary course of business.

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                        4
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Notwithstanding the foregoing, "Net Sales" shall not include sales or transfers
between Predix and its Affiliates, if the Licensed Product is resold by the
Affiliate.

In the event that a Licensed Product under this Agreement is sold in combination
with another active ingredient or component having independent therapeutic
effect or diagnostic utility, then "Net Sales," for purposes of determining
royalty payments on the combination, shall be calculated by multiplying the Net
Sales of the combination by the fraction A/A+B, where A is the gross selling
price, during the royalty paying period in question, of the Licensed Product
sold separately, and B is the gross selling price, during the royalty period in
question, of the other active ingredients or components sold separately.

                     1.19 "PATENT RIGHTS" shall mean all patent applications and
patents, including Israeli and foreign applications, divisions, continuations,
and continuations-in-part, applications for certificates of invention and
priority rights, certificates of invention, reissues, re-examination
certificates, extensions or other governmental acts that effectively extend the
period of exclusivity by the patent holder, substitutions, renewals,
supplementary protection certificates, confirmations, registrations, validations
and additions.

                     1.20 "REGULATORY APPROVAL" shall mean any and all final
approvals (including pricing and reimbursement approvals), product and
establishment licenses, registrations or authorizations of any kind of the FDA
or any Foreign Regulatory Authority permitting the commercial sale of a Licensed
Product (or any component thereof) for use in the Field in any country or other
jurisdiction in the Territory.

                     1.21 "ROYALTY TERM" shall mean with respect to each
Licensed Product, on a country-by-country basis, a period of twelve (12) years
commencing on the First Commercial Sale of such Licensed Product in such
country.

                     1.22 "SERVICE INCOME" shall mean all amounts and other
consideration received by Predix, or an Affiliate of Predix, for or in
connection with the performance of Services; provided that in the event that
Predix or an Affiliate of Predix receives non-monetary consideration in
connection with any such services or in the case of transactions not at arm's
length, Service Income shall be calculated based on the fair market value of
such consideration or transaction, assuming an arm's length transaction made in
the ordinary course of business.

                     1.23 "SERVICES" shall mean services performed by Predix, or
an Affiliate of Predix, for the benefit of (a) a Third Party or (b) for the
benefit of a Third Party and Predix and/or an Affiliate of Predix, using the
Licensed Technology.

                     1.24 "SOFTWARE PRODUCT" shall mean a software product that
incorporates Licensed Technology. Notwithstanding the foregoing, Software
Products that are also within the definition of "Discovered Product" or "Derived
Product" are hereby deemed to be Software Products only.

                     1.25 "SUBLICENSE" shall mean a sublicense, assignment or
other grant of rights by Predix or an Affiliate of Predix to a Third Party
(regardless of whether such grant of rights is or is referred to as a
sublicense) of or with respect to: (a) some or all of the rights granted to
Predix under this Agreement; (b) a Software Product; or (c) the right to
Develop, have Developed, make, have made, use, have used, sell, offer for sale,
have sold, import or have imported Licensed Product(s). For avoidance of doubt,
an assignment completed in accordance

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       5
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with Section 11.3 shall not be included within the term "Sublicense".

                     1.26 "SUBLICENSE INCOME" shall mean all amounts and other
consideration received by Predix or an Affiliate of Predix, in connection with a
Sublicense, excluding loans given at prevailing market conditions, research
funding specifically committed to cover costs actually incurred by Predix in the
research and development of Licensed Products under and in accordance with
detailed budgets and workplans included in bona-fide sublicense agreements with
Sublicensees solely to the extent such funding does not exceed the actual cost
of performing the research (if reimbursement exceeds such costs only the excess
amount will be "Sublicense Income") and equity investments in Predix to the
extent made at fair market value (if the investment exceeds the fair market
value, only the excess amount will be "Sublicense Income"); provided that in the
event that Predix or an Affiliate of Predix receives non-monetary consideration
in connection with any such Sublicense or in the case of transactions not at
arm's length, Sublicense Income shall be calculated based on the fair market
value of such consideration or transaction, assuming an arm's length transaction
made in the ordinary course of business. For purposes of this definition, the
term "fair market value" with respect to Predix equity means the value of Predix
equity as determined in good faith by the Board of Directors of Predix taking
into consideration the value most recently paid by a Third Party for shares of
such equity and any material events that have occurred subsequent to such
purchase.

                     1.27 "SUBLICENSEE" shall mean any Third Party to whom
Predix grants a Sublicense.

                     1.28 "TECHNOLOGY" shall mean any and all technical data,
information, processes, designs, ideas, know-how, methods, procedures, trade
secrets, formulae and all other technology, whether tangible or intangible and
whether patented, patentable or otherwise.

                     1.29 "TERM" shall have the definition set forth in Section
9.1.

                     1.30 "TERRITORY" shall mean all countries and jurisdictions
of the world.

                     1.31 "THIRD PARTY" shall mean any person or entity other
than Predix, Ramot and their respective Affiliates.

                     1.32 "USE" shall mean the use of the Licensed Technology or
a Derivative Work in any stage of the characterization, optimization or
development of a Licensed Product or the characterization of the protein
targeted by the Licensed Product; provided that such use either was made prior
to the Effective Date or is made during the Licensed Technology Exclusivity
Term.

                     1.33 "VALID CLAIM" shall mean a claim in an unexpired
patent or patent application that: (a) has not been finally cancelled,
withdrawn, abandoned or rejected by any administrative agency or other body of
competent jurisdiction in a final non-appealable or unappealable decision, and
(b) has not been revoked, held invalid, or declared unpatentable in a decision
of a court or other body of competent jurisdiction that is unappealable or
unappealed within the time allowed for appeal.

           2. GRANT OF RIGHTS

                     2.1 LICENSE TO PREDIX.

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       6
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                               2.1.1 Grant of License. Ramot hereby grants to
Predix an exclusive, royalty-bearing license, including the right to grant
sublicenses in accordance with Section 2.1.2, under the Licensed Patent Rights
and Licensed Technology, during the Term, to Develop, have Developed, make, have
made, use, have used, sell, offer for sale, have sold, import and have imported,
Licensed Products in the Territory, for any and all uses within the Field,
subject to the terms and conditions of this Agreement.

                               2.1.2 Right to Sublicense. Predix shall have the
right to grant sublicenses to any Sublicensee to all or any portion of its
rights under the license granted pursuant to this Article 2, including without
limitation as part of a license to a Software Product; provided, however, that
any and all such sublicenses shall be made for consideration and in arm's length
transactions. Predix shall promptly deliver to Ramot a copy of all sublicenses
and all sublicenses shall be consistent with the material terms and conditions
of this Agreement that impact Ramot.

           3. DEVELOPMENT AND COMMERCIALIZATION OF LICENSED PRODUCTS.

                     3.1 COMMERCIALIZATION.

                               3.1.1 Responsibility. From and after the
Effective Date, Predix shall have full control and authority over the
Development and commercialization of Licensed Products. All activities relating
to Development and commercialization under this Agreement shall be undertaken at
Predix's sole cost and expense.

                               3.1.2 Diligence. Predix will exercise
commercially reasonable efforts and diligence in developing and commercializing
Licensed Products in the Field in the Territory, such reasonable efforts and
diligence to be in accordance with the efforts and resources Predix would use
for a product candidate owned by it or to which it has rights, which is of
similar market potential as the applicable Licensed Product, taking into account
the competitiveness of the marketplace, the proprietary position of the Licensed
Product, the relative potential safety and efficacy of the Licensed Product, the
cost of goods and availability of capacity to manufacture and supply the
Licensed Product at commercial scale, the profitability of the applicable
Licensed Product, and other relevant factors including, without limitation,
technical, legal, scientific or medical factors. The collective annual
expenditure by Predix, its Affiliates and Sublicensees of not less than
[*****************] dollars ($[*******]) on the Development of Licensed Products
shall be deemed to satisfy Predix's obligations under this Section 3.1.2 for
such year.

           4.        PAYMENTS AND ROYALTIES

                     4.1 LICENSE FEE. In consideration of the grant of the
license described in Section 2.1 hereof, Predix agrees to the payment to Ramot
of an upfront license fee in the amount of forty thousand dollars ($40,000).
Ramot hereby acknowledges the receipt of such payment prior to the Restated
Effective Date.

                     4.2 SHARING OF SUBLICENSE INCOME. In further consideration
of the grant of the license by Ramot hereunder, and subject to the other terms
of this Agreement (including the remainder of this Article 4), Predix agrees to
pay to Ramot, within thirty (30) days of receipt of any Sublicense Income, an
amount equal to: (a) ten percent (10%) of such Sublicense Income if such
Sublicense Income is attributable to a Sublicense with respect to Discovered
Products or

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       7
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Software Products and (b) five percent (5%) of any and all other Sublicense
Income.

                     4.3 SERVICE INCOME. In further consideration of the grant
of the license by Ramot hereunder, and subject to the other terms of this
Agreement (including the remainder of this Article 4), Predix agrees to pay to
Ramot, within thirty (30) days of receipt of any Service Income, an amount equal
to: (a) 4% of all cumulative Service Income from $[********] to
$[***************]; (b) [*]% of all cumulative Service Income from $[********]
to $[***********]; and (c) an amount equal to 2% of all cumulative Service
Income above $[***********]. Predix shall not be required to pay Ramot any
amount on the first $[*******] in cumulative Service Income.

                     4.4 PAYMENT OF ROYALTIES; ROYALTY RATES; MINIMUM AND
MAXIMUM ANNUAL ROYALTIES.

                               4.4.1 Royalty Payments In further consideration
of the grant of the license by Ramot hereunder, and subject to the other terms
of this Agreement (including the remainder of this Article 4), commencing on the
date of the First Commercial Sale of each Licensed Product and continuing during
the Royalty Term for such Licensed Product, Predix shall pay to Ramot a royalty,
calculated on a Licensed Product-by-Licensed Product basis, and equal to a
percentage of cumulative annual Net Sales of each such Licensed Product sold by
Predix and/or its Affiliates in the Territory, as set forth below:

<TABLE>
<CAPTION>
LICENSED PRODUCT TYPE      ANNUAL NET SALES           PERCENTAGE OF NET SALES PAYABLE AS ROYALTY
---------------------      ----------------           ------------------------------------------
<S>                        <C>                        <C>
Discovered Products        Up to $[***********]       2.5%

                           From $[*********] to       [**]%
                           $[*******]

                           Above $[**********]        [**]%

Derived Products           Up to $[***********]       1.5%

                           From $[*********] to       [**]%
                           $[*******]

                           Above $[**********]        [**]%
</TABLE>

                               4.4.2 Minimum Royalties. In further consideration
of the grant of the license by Ramot hereunder, and subject to the other terms
of this Agreement (including the remainder of this Article 4), Predix agrees to
pay to Ramot an annual minimum royalty of ten thousand dollars ($10,000),
payable on December 31, 2005, and on the each subsequent anniversary of that
date during the term of this Agreement. All amounts paid by Predix under Section
4.4.1 shall be fully credited against its obligations under this Section 4.4.2.

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       8
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                               4.4.3 Maximum Annual Royalties. Anything herein
to the contrary notwithstanding, the maximum amount Predix shall be obligated to
pay to Ramot under Section 4.4.1 as royalties on Net Sales generated during any
calendar year shall be [**********] dollars ($[*********]).

                     4.5 PAYMENT TERMS.

                               4.5.1 Payment. Predix shall make any payments
under Section 4.4 to Ramot in arrears within ninety (90) days from the end of
each quarter in which such payment accrues. Each royalty payment shall be
accompanied by a report for each country in the Territory in which sales of
Licensed Products occurred in the calendar quarter covered by such statement,
specifying: the gross sales and Net Sales in each country's currency; the
applicable royalty rate under this Agreement; the royalties payable in each
country's currency, including an accounting of deductions taken in the
calculation of Net Sales; the applicable exchange rate to convert from each
country's currency to United States Dollars under this Section 4.4; and the
royalties payable in United States Dollars. An officer of Predix shall sign each
such report, on behalf of Predix, certifying its completeness and accuracy.

                               4.5.2 Accounting. All payments hereunder shall be
made in United States dollars by wire transfer to a bank account designated by
Ramot. Conversion of foreign currency to United States dollars shall be made at
the conversion rate existing in the United States (as reported in The Wall
Street Journal) on the last business day of the applicable calendar quarter. If
The Wall Street Journal ceases to be published, then the rate of exchange to be
used shall be that reported in such other business publication of national
circulation in the United States as the Parties reasonably agree. Such payments
shall be without deduction of exchange, collection, or other charges.

                               4.5.3 Tax Withholding; Restrictions on Payment.
All payments hereunder shall be made free and clear of any taxes, duties,
levies, fees or charges, except for withholding taxes (to the extent
applicable). If applicable law requires that taxes be withheld from any amounts
due Ramot under this Agreement, Predix shall make any applicable withholding
payments due on behalf of Ramot and shall promptly provide Ramot with a
statement including the amount of tax withheld and justification therefore, and
such other written documentation regarding any such payment as available to
Predix relating to an application by Ramot for a foreign tax credit for such
payment. If by law, regulations or fiscal policy of a particular country in the
Territory, remittance of royalties in United States Dollars is restricted or
forbidden, written notice thereof shall promptly be given to Ramot, and payment
of the royalty shall be made by the deposit thereof in local currency to the
credit of Ramot in a recognized banking institution reasonably designated by
Ramot by written notice to Predix. Ramot shall be responsible for paying all
income taxes attributable to Ramot as a result of its receipt of funds
hereunder, to the extent applicable.

                               4.5.4 Late Payments. Any payments to be paid
under this Agreement that are not paid on or before the date such payments are
due under this Agreement shall bear interest at an annual interest, compounded
monthly, equal to [*****] percent ([*]%) above the London Interbank Offer Rate
(LIBOR) as determined for each month on the last business day of that month,
assessed from the day payment was initially due until the date of payment.

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       9
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                     4.6 REPORTS; RECORDS RETENTION; REVIEW.

                               4.6.1 Reporting. Predix undertakes to notify
Ramot promptly following the grant of a Sublicense or the execution of an
agreement for the provision of Services. Each such notification shall include a
brief summary of the financial terms of such transaction.

                               4.6.2 Reports. In addition to the reports under
Section 4.5.1, commencing with the receipt of the first Sublicense Income or
Service Income, Predix shall provide Ramot with quarterly reports setting forth
all Sublicense Income and Service Income received by Predix and its Affiliates.
In addition, within sixty (60) days after the end of each calendar year, Predix
shall furnish Ramot with a written report on the progress of its, its
Affiliate's and Sublicensees' efforts during the prior year to develop and
commercialize Licensed Products, including without limitation research and
development efforts, efforts to obtain Regulatory Approval and marketing
efforts. All reports provided by Predix under Section 4.6.1 and Section 4.6.2
shall be signed by the chief financial officer or chief business officer of
Predix certifying on behalf of Predix the accuracy and completeness of the
information provided therein.

                               4.6.3 Records. Commencing as of the date of the
receipt of the first Net Sales, Sublicense Income or Service Income hereunder,
Predix and its Affiliates shall keep for at least three (3) years from the end
of the calendar year to which they pertain complete and accurate records of
sales by Predix or its Affiliates, as the case may be, of each Licensed Product
and of Sublicense Income and Service Income received, in sufficient detail to
allow the accuracy of the payments hereunder to be confirmed.

                               4.6.4 Review. Subject to the other terms of this
Section 4.6.4, at the request of Ramot, which shall not be made more frequently
than [*****************] during the Term, upon reasonable prior notice from
Ramot, and at the expense of Ramot, except as otherwise provided herein, Predix
and its Affiliates shall permit an independent certified public accountant
selected by Ramot and reasonably acceptable to Predix to inspect, during regular
business hours, the relevant records required to be maintained by Predix and its
Affiliates under this Section 4.6. In every case the accountant must have
previously entered into a confidentiality agreement with both Parties
substantially similar to the provisions of Article 5 and limiting the disclosure
and use of such information by such accountant to authorized representatives of
the Parties and the purposes germane to this Section 4.6. Results of any such
review shall be binding on both Parties absent manifest error. Ramot agrees to
treat the results of any such accountant's review as Confidential Information of
Predix subject to the terms of Article 5. If any review reveals a deficiency in
the calculation and/or payment of royalties by Predix, then Predix shall
promptly pay Ramot the amount remaining to be paid, and if such underpayment is
by [*****] percent ([*]%) or more of the amount payable during the period under
audit, Predix shall [**********************************************************]
in connection with the review.

           5. TREATMENT OF CONFIDENTIAL INFORMATION; PUBLICATION

                     5.1 Confidentiality. Commencing on the Effective Date and
continuing until the [*****************] of the expiration or earlier
termination hereof, each Party shall maintain in confidence the Confidential
Information of the other Party, shall not use or grant the use of the
Confidential Information of the other Party except as expressly permitted
hereby, and

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       10
<PAGE>
shall not disclose the Confidential Information of the other Party except on a
need-to-know basis to such Party's directors, officers and employees, and to
such Party's consultants, to the extent such disclosure is necessary in
connection with such Party's activities as expressly authorized by this
Agreement. In addition to the foregoing, Predix may disclose Confidential
Information of Ramot to any Sublicensees that are bound by restrictions on
disclosure that are at least as stringent as those set forth herein. To the
extent that disclosure to any person is authorized by this Agreement, prior to
disclosure, a Party shall obtain, or shall have obtained prior to the date of
this Agreement, written agreement of such person pursuant to which such person
is bound to hold in confidence and not disclose, use or grant the use of the
Confidential Information of the other Party except as expressly permitted under
this Agreement. Each Party shall notify the other Party promptly upon discovery
of any unauthorized use or disclosure of the other Party's Confidential
Information.

                     5.2 Terms of Agreement. Neither Party shall disclose any
terms or conditions of this Agreement to any Third Party without the prior
consent of the other Party; provided, however, that a Party may disclose the
terms or conditions of this Agreement: (a) on a need-to-know basis to its legal
and financial advisors to the extent such disclosure is reasonably necessary in
connection with such Party's activities as expressly permitted by this
Agreement, and (b) to a Third Party who is subject to confidentiality
obligations similar to those set forth herein in connection with: (i) an equity
investment in or by such Party, (ii) a merger, consolidation or similar
transaction involving such Party, (iii) the negotiation of a sublicense of
rights granted hereunder or (iv) the sale of all or substantially all of the
assets of such Party. Notwithstanding the foregoing, prior to execution of this
Agreement, the Parties have agreed upon the text of one or more press releases
that describe the terms and conditions of this transaction, and each Party may
disclose such information, as modified by mutual written agreement the Parties,
without the consent of the other Party.

                     5.3 Permitted Disclosures. The confidentiality obligations
under this Article 5 shall not apply to the extent that a Party is required to
disclose information by applicable law, regulation or order of a governmental
agency or a court of competent jurisdiction; provided, however, that such Party
shall provide written notice thereof to the other Party, consult with the other
Party with respect to such disclosure and provide the other Party sufficient
opportunity to object to any such disclosure or to request confidential
treatment thereof.

           6. OWNERSHIP OF TECHNOLOGY AND INVENTIONS; FILING, PROSECUTION AND
MAINTENANCE OF PATENT RIGHTS

                     6.1 OWNERSHIP OF TECHNOLOGY. Subject to the terms and
conditions set forth herein, including without limitation the license granted in
Section 2.1, Ramot shall own all right, title and interest in and to any and all
Licensed Technology. No rights or licenses in or to any Technology are conveyed
hereunder by implication or estoppel or by any means other than express grant.

                     6.2 OWNERSHIP OF LICENSED PRODUCTS. Predix shall own all
right, title and interest in and to any and all Licensed Products, subject to
Ramot's ownership of the underlying Licensed Technology, the terms of the
license granted herein and Predix's obligations herein, including the obligation
to pay royalties as set forth above.

                     6.3 PATENT FILING, PROSECUTION AND MAINTENANCE.

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       11
<PAGE>
                               6.3.1 Licensed Patent Rights. Ramot and Predix
shall consult each other regarding the preparation, filing and prosecution of
all patent applications, and the maintenance of all patents, included within the
Licensed Patent Rights, including, without limitation, the content, timing and
jurisdiction of the filing of such patent applications and their prosecution,
and other details. Predix shall be responsible for preparing, filing,
prosecuting, obtaining and maintaining, at its sole cost and expense, using
patent counsel reasonably acceptable to Ramot, all Licensed Patent Rights, in
the name of Ramot, with the goal of obtaining and maintaining the Licensed
Patents in a manner that will provide the maximum economic advantage and return
to the Parties under this Agreement. Predix: (i) will provide Ramot with a copy
of any proposed patent application within such Licensed Patent Rights for review
and comment reasonably in advance of filing, and (ii) will keep Ramot informed
of the status of such filing, prosecution and maintenance, including, without
limitation, by providing Ramot with copies of all communications received from
or filed in patent office(s) with respect to such filing, and by providing
Ramot, a reasonable time prior to taking or failing to take any action that
would affect the scope or validity of any such filing (including the
substantially narrowing, cancellation or abandonment of any claim(s) without
retaining the right to pursue such subject matter in a separate application, or
the failure to file or perfect the filing of any claim(s) in any country), with
prior written notice of such proposed action or inaction so that Ramot has a
reasonable opportunity to review and comment. Predix shall not take any such
action that would affect the scope of validity or any such filing without the
prior written consent of Ramot. If Predix fails to undertake the filing(s),
prosecution, protection and/or maintenance of any patent application, patent or
submission within the Licensed Patent Rights, without the prior consent of
Ramot, all claims included in such patent applications, patents and/or
submissions shall be deemed Valid Claims within the Licensed Patent Rights for
purposes of Section 1.17 until such times as the relevant patents would have
expired had they continued to their fullest term.

                               6.3.2 Other Patent Rights. Except as set forth in
Section 6.3.1, each Party shall be responsible for preparing, filing,
prosecuting, obtaining and maintaining, at its sole cost, expense and
discretion, all of its own Patent Rights. Predix undertakes to notify Ramot, on
an annual basis, of the filing by or on behalf of Predix or any of its
Affiliates of any priority patent application relating to or covering an actual
or potential Licensed Product. Each such notification shall include a brief
summary of the invention disclosed in such application.

                     6.4 NOTICE OF INFRINGEMENT. If, during the Term, either
Party learns of any actual, alleged or threatened infringement by a Third Party
of any Licensed Patent Rights, such Party shall promptly notify the other Party
and shall provide such other Party with available evidence of such infringement.

                     6.5 INFRINGEMENT OF PATENT RIGHTS. Predix, after
consultation with Ramot, shall have the first right, but not the obligation and
with legal counsel of its own choice, to bring suit, or take other appropriate
legal action, against any actual, alleged or threatened infringement of the
Licensed Patent Rights. If Ramot is joined as a party plaintiff in any such
suit, Ramot shall have the right to approve or disapprove of the counsel
selected by Predix to represent Predix and Ramot, such approval not to be
unreasonably withheld. The expenses of such suit or suits that Predix elects to
bring, including any expenses of Ramot incurred in conjunction with the
prosecution of such suits or the settlement thereof, shall be paid for entirely
by Predix and Predix shall hold Ramot free, clear and harmless from and against
any and all costs of such litigation, including attorney's fees. Predix shall
not compromise or settle such litigation without

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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<PAGE>
the prior written consent of Ramot, which consent shall not be unreasonably
withheld or delayed. Ramot shall have the right, at its own expense, to be
represented in any such action by Predix by counsel of Ramot's own choice. If
Predix does not file any action or proceeding against any such infringement
within three (3) months after the earlier of: (i) Predix's notice to Ramot under
Section 6.4 above, (ii) Ramot's notice to Predix under Section 6.2 above, or
(iii) a written request from Ramot to take action with respect to such
infringement, then Ramot shall have the right, but not the obligation, at its
own expense, to bring suit, or take other appropriate legal action, against such
actual, alleged or threatened infringement, with legal counsel of its own
choice, but shall not be permitted to settle any such suit without the prior
consent of Predix, which consent shall not be unreasonably withheld. Any
damages, monetary awards or other amounts recovered, whether by judgment or
settlement, pursuant to any suit, proceeding or other legal action taken under
this Section 6.3, shall be applied as follows:

                               (a) First, to reimburse the Parties for their
respective costs and expenses (including reasonable attorneys' fees and costs)
incurred in prosecuting such enforcement action; and

                               (b) Second, any amounts remaining shall be
allocated as follows: (a) if Ramot is the Party bringing such suit or proceeding
or taking such other legal action, [***********] percent ([****]%)
[*********************], (b) if Predix is the Party bringing such suit or
proceeding or taking such other legal action, [**********] percent ([****]%)
[******************], and (c) if the suit is brought jointly, [*****] percent
([***]%) [********************].

If a Party brings any such action or proceeding hereunder, the other Party
agrees to be joined as Party plaintiff if necessary to prosecute such action or
proceeding, and to give the Party bringing such action or proceeding reasonable
assistance and authority to file and prosecute the suit; provided, however, that
neither Party shall be required to transfer any right, title or interest in or
to any property to the other Party or any Third Party to confer standing on a
Party hereunder.

           7. REPRESENTATIONS AND WARRANTIES

                     7.1 RAMOT REPRESENTATIONS. Ramot represents and warrants to
Predix that:

                     (a) the execution and delivery of this Agreement and the
performance of the transactions contemplated hereby have been duly authorized by
all appropriate Ramot corporate action;

                     (b) this Agreement is a legal and valid obligation binding
upon Ramot and enforceable in accordance with its terms, and the execution,
delivery and performance of this Agreement by the Parties does not conflict with
any agreement, instrument or understanding to which Ramot is a Party or by which
it is bound;

                     (c) Ramot has the full right and legal capacity to grant
the rights granted to Predix hereunder;

                     (d) To the best of Ramot's knowledge, the Licensed Patent
Rights have been properly filed and prosecuted and Ramot is the sole owner of
the Licensed Patent Rights;

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       13
<PAGE>
                     (e) Ramot has no actual knowledge as of the date hereof of
any legal suit or proceeding by a third party (whether threatened or filed)
against Ramot or TAU contesting the ownership or validity of the Licensed Patent
Rights, or claiming that the practice of the Licensed Patent Rights in the
manner contemplated by this Agreement would infringe the rights of such third
party;

                     (f) Ramot will not grant or convey any rights or licenses
to the Licensed Technology that may limit Predix's ability to exercise the
rights and licenses granted herein to their fullest extent; and

                     (g) No member of Ramot's legal staff has received notice of
any infringement or misappropriation by a Third Party of the Licensed
Technology.

                     7.2 PREDIX REPRESENTATIONS. Predix represents and warrants
to Ramot that:

                     (a) the execution and delivery of this Agreement and the
performance of the transactions contemplated hereby have been duly authorized by
all appropriate Predix corporate action; and

                     (b) this Agreement is a legal and valid obligation binding
upon Predix and enforceable in accordance with its terms, and the execution,
delivery and performance of this Agreement by the Parties does not conflict with
any agreement, instrument or understanding to which Predix is a Party of or by
which it is bound.

                     (c) Predix will comply with, and shall ensure that its
Affiliates and Sublicensees undertake to comply with, all local, state, federal,
and international laws and regulations relating to the use of the Licensed
Technology and the development, manufacture, use, license and sale of Licensed
Products.

                     7.3 NO WARRANTIES.

                               7.3.1 Nothing in this Agreement is or shall be
construed as:

                                          (a) a warranty or representation by
either Party as to the validity or scope of any patent application or patent
licensed hereunder;

                                          (b) a warranty or representation that
the Licensed Technology or anything made, used, sold or otherwise disposed of
under any license granted pursuant to this Agreement is or will be free from
infringement of patents, copyrights, and other rights of third Parties.

                               7.3.2 Except as expressly set forth in this
Agreement, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF
ANY KIND, EITHER EXPRESS OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR OF NON-INFRINGEMENT
OF ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OF THIRD PARTIES, OR ANY
OTHER EXPRESS OR IMPLIED WARRANTIES.

           8. INDEMNIFICATION; INSURANCE

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       14
<PAGE>
                     8.1 INDEMNIFICATION. Predix shall indemnify, defend and
hold harmless Ramot, its Affiliates and their respective governors, directors,
officers, employees, stockholders and agents and their respective successors,
heirs and assigns (the "Ramot Indemnitees") from and against any liability,
damage, loss or expense (including reasonable attorneys' fees and expenses of
litigation) incurred by or imposed upon such Ramot Indemnitees, or any of them,
in connection with any Third Party claims, suits, actions, demands or judgments,
including, without limitation, personal injury and product liability matters, to
the extent arising out of: (a) the development, testing, production,
manufacture, supply, promotion, import, sale or use by any person of any
Software Product or Licensed Product (or any component thereof) manufactured or
sold by Predix or any Affiliate or Sublicensee under this Agreement, (b) the use
of the Licensed Technology or practice of the Licensed Patent Rights by Predix,
any of its Affiliates or any Sublicensees, (c) any material breach of this
Agreement by Predix, (d) any breach by a Sublicensee of a Sublicense, or (e) the
gross negligence or willful misconduct on the part of Predix or any Affiliate or
Sublicensee, in any such case under this Section 8.1.1, except to the extent any
of the foregoing is caused by the negligence or willful misconduct of Ramot or a
breach of this Agreement by Ramot.

                     8.2 INDEMNIFICATION PROCEDURES. In the event that any
Indemnitee is seeking indemnification under Section 8.1 above from Predix, Ramot
shall notify Predix of such claim with respect to such Indemnitee as soon as
reasonably practicable after the Ramot Indemnitee receives notice of the claim,
and Ramot (on behalf of itself and such Ramot Indemnitee) shall permit the
Predix to assume direction and control of the defense of the claim (including
the right to settle the claim solely for monetary consideration, provided that
no settlement shall be made without the consent of Ramot, which consent shall
not be unreasonably withheld) and shall cooperate as requested (at the expense
of Predix) in the defense of the claim. The indemnification obligations under
Article 8 shall not apply to any harm suffered as a direct result of any delay
in notice to Predix hereunder or to amounts paid in settlement of any claim,
demand, action or other proceeding if such settlement is effected without the
consent of Predix, which consent shall not be withheld or delayed unreasonably.
The Indemnitee, its employees and agents, shall reasonably cooperate with Predix
and its legal representatives in the investigation of any claim, demand, action
or other proceeding covered by Section 8.1.

                     8.3 INSURANCE. Predix shall, at its sole cost and expense,
procure and maintain product liability insurance with respect to Licensed
Products commencing upon the First Commercial Sale of the first Licensed Product
and continuing until the termination of this Agreement. Such insurance coverage
shall be on terms that are in keeping with industry standards within the
bio-pharmaceutical industry. The insurance shall be underwritten by a reputable
insurance carrier. Ramot shall be named as an additional insured on such policy
and shall be entitled to advance notice of cancellation or expiration of such
policy. Predix shall comply with the requirements and restrictions imposed by
such insurance policy including with respect to the full and timely payment of
all premiums due thereon. Predix shall provide a copy of such insurance policy
to Ramot upon request.

           9. TERM AND TERMINATION

                     9.1 TERM; EXPIRATION. The term of this Agreement shall,
unless sooner terminated in accordance with this Section 9, expire upon the
expiration of the final payment obligation under Article 4 above (the "Term").
Upon the expiration of the Term of this Agreement, Predix shall have a fully
paid-up, irrevocable, freely transferable and sublicensable

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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<PAGE>
exclusive license in the Territory under the Licensed Patent Rights and Licensed
Technology, to Develop, have Developed, make, have made, use, have used, sell,
offer for sale, have sold, import and have imported any and all Licensed
Products in the Territory for any and all uses within the Field.

                     9.2 TERMINATION RIGHTS FOR BREACH.

                               Subject to the other terms of this Agreement,
this Agreement and the rights and options granted herein may be terminated
by either Party upon any material breach by the other Party of any material
obligation or condition, effective thirty (30) days after giving written notice
to the breaching Party of such termination in the case of a payment breach and
ninety (90) days after giving written notice to the breaching Party of such
termination in the case of any other breach, which notice shall describe such
breach in reasonable detail. The foregoing notwithstanding, if such default or
breach is cured or remedied or shown to be non-existent within the aforesaid
thirty (30) or ninety (90) day period, the notice shall be automatically
withdrawn and of no effect. However, prior to giving any notice of termination
for breach, the Parties shall first attempt to resolve any disputes as to the
existence of any breach as set forth in Article 10.

                     9.3 TERMINATION FOR BANKRUPTCY. In the event that either
Party files for protection under bankruptcy laws, makes an assignment for the
benefit of creditors, appoints or suffers appointment of a receiver or trustee
over its property, files a petition under any bankruptcy or insolvency act or
has any such petition filed against it which is not discharged within sixty (60)
days of the filing thereof, then the other Party may terminate this Agreement
effective immediately upon written notice to such Party.

                     9.4 EFFECTS OF TERMINATION.

                               9.4.1 Termination for Predix Breach. Upon any
termination of this Agreement by Ramot under Section 9.2, as of the effective
date of such termination all relevant licenses and sublicenses granted by Ramot
to Predix hereunder shall terminate automatically. Notwithstanding the
foregoing: (a) no such termination of this Agreement shall be construed as a
termination of any valid sublicense of any Sublicensee hereunder, and thereafter
each such Sublicensee shall be considered a direct licensee of Ramot, provided
that (i) such Sublicensee is then in full compliance with all terms and
conditions of its sublicense, (ii) all accrued payments obligations to Ramot
have been paid, and (iii) such Sublicensee agrees in writing to assume all
applicable obligations of Predix under this Agreement, and (b) Predix and its
Affiliates and Sublicensees shall have the right, for six (6) months or such
longer time period (if any) on which the Parties mutually agree in writing, to
sell or otherwise dispose of all Licensed Products then on hand, with royalties
to be paid to Ramot on all Net Sales of such Licensed Products as provided for
in this Agreement.

                               9.4.2 Termination for Ramot Breach. Upon any
termination of this Agreement by Predix under Section 9.2, as of the effective
date of such termination, Predix thereafter automatically shall have a fully
sublicensable and transferable, fully paid up (subject to the remainder of this
Section 9.4), exclusive license in the Territory under the Licensed Patent
Rights and Licensed Technology, to Develop, have Developed, make, have made,
use, have used, sell, offer for sale, have sold, import and have imported any
and all Licensed Products in the Territory for any and all uses within the
Field, provided that Predix shall pay, for the remainder of the relevant Royalty
Term under Section 4.4 above and as long as it receives

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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<PAGE>
Sublicense Income or Service Income, in lieu of any payments including
milestones or royalties it would otherwise owe to Ramot under this Agreement, a
royalty equal to [*****] percent ([**]%) of the royalty rates that would
otherwise apply with respect to Net Sales, Sublicense Income and Service Income
under Section 4 of this Agreement.

                     9.5 REMEDIES. Except as otherwise expressly set forth in
this Agreement, the termination provisions of this Article 9 are in addition to
any other relief and remedies available to either Party at law.

                     9.6 SURVIVING PROVISIONS. Notwithstanding any provision
herein to the contrary, the rights and obligations of the Parties set forth in
Articles 5, 7, 8 and 10 and Sections 6.1, 6.2, 9.1, 9.4, 9.5, 9.6, 11.1, 11.8,
and 11.11 as well as any rights or obligations otherwise accrued hereunder
(including any accrued payment obligations), shall survive the expiration or
termination of the Term.

           10. DISPUTE RESOLUTIONS

           10.1 DISPUTE RESOLUTION. Prior to engaging in any formal dispute
resolution with respect to any dispute, controversy or claim arising out of or
in relation to this Agreement, or the breach, termination or invalidity hereof
(each, a "Dispute"), the Chief Executive Officers of the Parties shall attempt
over a period of not less than thirty (30) days to resolve such Dispute.

           11. MISCELLANEOUS

           11.1 GOVERNING LAW. Except as otherwise provided herein, this
Agreement shall be governed by, interpreted and construed in accordance with the
laws of the State of Israel, without regard to the conflicts of law principles
thereof, and sole jurisdiction is granted to the competent courts in Tel Aviv,
Israel.

           11.2 WAIVER. No waiver by a Party hereto of any breach or default of
any of the covenants or agreements herein set forth shall be effective unless
set forth in a writing signed by the waiving Party or shall be deemed a waiver
as to any subsequent and/or similar breach or default.

           11.3 ASSIGNMENT. Neither this Agreement nor any right or obligation
hereunder may be assigned or delegated, in whole or part, by either Party
without the prior express written consent of the other; provided, however, that
either Party may, without the written consent of the other, assign this
Agreement and its rights and delegate its obligations hereunder in connection
with the transfer or sale of all or substantially all of its business, or in the
event of its merger, consolidation, change in control or similar transaction.
Any permitted assignee shall assume all obligations of its assignor under this
Agreement. Any purported assignment in violation of this Section 11.3 shall be
void.

           11.4 INDEPENDENT CONTRACTORS. The relationship of the Parties hereto
is that of independent contractors. Neither Party hereto shall be deemed to be
the agent, partner or joint venturer of the other for any purpose as a result of
this Agreement or the transactions contemplated thereby.

           11.5 FURTHER ACTIONS. Each Party agrees to execute, acknowledge and
deliver such further documents and instruments and to perform all such other
acts as may be necessary or

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
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          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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<PAGE>
appropriate in order to carry out the purposes and intent of this Agreement.

           11.6 NOTICES. All requests and notices required or permitted to be
given to the Parties hereto shall be given in writing, shall expressly reference
the section(s) of this Agreement to which they pertain, and shall be delivered
to the other Party, effective on receipt, at the appropriate address as set
forth below or to such other addresses as may be designated in writing by the
Parties from time to time during the term of this Agreement.

                     If to Ramot:

                               Ramot at Tel Aviv University Ltd.
                               32 Haim Levanon Street
                               POB 39296
                               Tel Aviv 61392
                               ISRAEL

                              Attn: CEO

                     If to Predix:

                               Predix Pharmaceuticals
                               10K Gill Street
                               Woburn, MA 01801
                               USA
                               Attn: Chief Executive Officer

                               Copy to:

                               Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC
                               One Financial Center
                               Boston, MA 02111
                               USA

                               Attn: Christopher J. Denn, Esq.

           11.7 FORCE MAJEURE. Nonperformance of a Party (other than for the
payment of money) shall be excused to the extent that performance is rendered
impossible by strike, fire, earthquake, flood, governmental acts or orders or
restrictions, failure of suppliers, or any other reason where failure to perform
is beyond the reasonable control and not caused by the negligence, intentional
conduct or misconduct of the nonperforming Party; provided, however, that the
nonperforming Party shall use commercially reasonable efforts to resume
performance as soon as reasonably practicable.

           11.8 NO CONSEQUENTIAL DAMAGES. IN NO EVENT SHALL A PARTY BE LIABLE
FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT
OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST
PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF
ANY NOTICE OF SUCH DAMAGES.

           11.9 COMPLETE AGREEMENT. This Agreement constitutes the entire
agreement between

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           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
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          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

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<PAGE>
the Parties regarding the subject matter hereof, and all prior representations,
understandings and agreements regarding the subject matter hereof, either
written or oral, expressed or implied, are superseded and shall be and of no
effect.

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

           11.11 SECTION 365(N). All licenses granted under this Agreement are
deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code,
licenses of right to "intellectual property" as defined in Section 101 of such
Code.

           11.12 FURTHER ASSURANCES. Each Party agrees to execute, acknowledge
and deliver such further instructions, and to do all such other acts, as may be
necessary or appropriate in order to carry out the purposes and intent of this
Agreement.

           11.13 COUNTERPARTS. This Agreement may be executed simultaneously in
one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

           11.14 TERMINATION OF ORIGINAL AGREEMENT. The Parties acknowledge and
agree that: (i) the Original Agreement is hereby terminated as of the Restated
Effective Date and (ii) except as provided herein, all rights, obligations and
licenses provided for under the Original Agreement shall terminate and shall be
of no further force or effect on and after the Restated Effective Date.

                  [Remainder of page intentionally left blank]

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       19
<PAGE>
           IN WITNESS WHEREOF, the Parties have caused this Agreement to be
executed by their duly authorized representative in two (2) originals.

PREDIX PHARMACEUTICALS
HOLDINGS, INC.                            RAMOT AT TEL AVIV UNIVERSITY LTD.

By:  /s/ MICHAEL G. KAUFFMAN              By:  /s/ ISAAC T. KOHLBERG
        ---------------------------              -------------------------------
Name: Michael Kauffman   Chen Shor        Name: Isaac T. Kohlberg   Menashe Kay
        ---------------------------              -------------------------------
Title:  President and CEO   CBO           Title: Chief Executive Officer
        ---------------------------              -------------------------------
                                                 Chief Operating Officer

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       20
<PAGE>
                                   EXHIBIT 1.6

                                DERIVED PRODUCTS

<TABLE>
<CAPTION>
                                                                                     NAMED                        PATENT    FILING
PREDIX COMPOUNDS      TARGET   MINTZ LEVIN  DOCKET NO.  COUNTRY  TITLE            INVENTOR(S)   APPLICATION NO.     NO.      DATE
----------------      ------   -----------  ----------  -------  -----            -----------   ---------------     ---      ----
<S>                   <C>      <C>          <C>         <C>      <C>            <C>             <C>               <C>      <C>
[******************   [**]     24591        501         US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   [**]     24591        501-061     US       [***********]  [************]  [*************]     --     [******]
*******************
*******************   [**]     24591        501 PRO     US       [***********]  [************]    [*********]       --     [*****]
*******************
*******************   [**]     24591        501 PRO B   US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   [**]     24591        501 PRO C   US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   [**]     24591        502-061     US       [***********]  [************]  [*************]     --     [******]
*******************
*******************   [**]     24591        502 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   [**]     24591        503 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   [**]     24591        504 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   [**]     24591        505 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************
*******************
*******]

[******************   5-HT1A   24591        506         US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   5-HT1A   24591        506-061     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   5-HT1A   24591        506 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   5-HT1A   24591        506 PRO B   US       [***********]  [************]    [*********]       --     [******]
****************]
                      5-HT1A   24591        506 PRO C   US       [***********]  [************]    [*********]       --     [******]

                      5-HT1A   24591        507-061     US       [***********]  [************]       [*]            --     [*****]

                      5-HT1A   24591        507 PRO     US       [***********]  [************]    [*********]       --     [*****]

                      5-HT1A   24591        508 PRO     US       [***********]  [************]    [*********]       --     [*****]

                      5-HT1A   24591        509 PRO     US       [***********]  [************]    [*********]       --     [*****]
</TABLE>

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.
<PAGE>
<TABLE>
<S>                   <C>      <C>          <C>         <C>      <C>            <C>               <C>               <C>    <C>
[******************   5-HT2B   24591        510 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   5-HT2B   24591        510         US       [***********]  [************]    [*********]       --     [******]
*******************
*******************   5-HT2B   24591        510-061     PCT      [***********]  [************]    [*********]       --     [******]
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
**********]

[******************   5-HT4    24591        511 PRO     US       [***********]  [************]    [*********]       --     [******]
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
*******************
**********]
</TABLE>

            PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED
           SEPARATELY WITH THE SECRETARY OF THE COMMISSION PURSUANT TO
           THE COMPANY'S APPLICATION REQUESTING CONFIDENTIAL TREATMENT
          UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES OMISSIONS.

                                       2
<PAGE>

exist when a person, corporation, company, partnership, joint venture and/or
firm (a) in the case of corporate entities, directly or indirectly owns at least
twenty percent (20%) of the stock or shares having the right to vote for the
election of directors, and (b) in the case of non-corporate entities, holds the
direct or indirect power to manage, direct or cause the direction of the
management and policies of the non-corporate entity or the power to elect at
least twenty percent (20%) of the members of the governing body of such
non-corporate entity, any corporation, firm, limited liability company,
partnership or other entity that directly controls or is controlled by or is
under common control with a Party to this Agreement.

            1.2 "CONFIDENTIAL INFORMATION" shall mean any confidential
scientific, technical, trade or business information relating to the subject
matter of this Agreement disclosed by or on behalf of one party to the other
that is either marked as confidential or if disclosed orally is reduced to a
written summary marked as confidential and delivered to the receiving party
within 30 days of disclosure. Confidential Information does not include
information that (i) is in possession of the receiving Party at the time of
disclosure, as reasonably demonstrated by written records; (ii) is or later
becomes part of the public domain through no fault of the receiving Party; (iii)
is received by a receiving Party from a third Party having no obligation of
confidentiality to the disclosing Party; or (iv) is developed independently by a
receiving Party without use of the disclosing Party's Confidential Information.

            1.3 "CONTROL" or "CONTROLLED" shall mean, with respect to any
intellectual property rights, the right and authority of a Party to grant the
rights, licenses and options provided for herein without breaching any written
agreement with any third Party by virtue of such grant.

            1.4 "DEVELOPMENT" and "DEVELOP" shall mean, with respect to any
Licensed Product, all activities with respect to such Licensed Product relating
to research and development and in connection with seeking, obtaining and/or
maintaining any Regulatory Approval for such Licensed Product in the Field in
the Territory, including without limitation, all pre-clinical research and
development activities, all human clinical studies, all activities relating to
developing the ability to manufacture any Licensed Product or any component
thereof (including, without limitation, process development work), and all other
activities relating to seeking, obtaining and/or maintaining any Regulatory
Approvals from the FDA and/or any Foreign Regulatory Authority.

            1.5 "DERIVATIVE WORK" means any software that is derived from the
Licensed Technology, including without limitation, software that is a
translation (including any translation into other computer languages),
portation, modification, correction, extension, upgrade, improvement,
compilation, abridgment, adaptation or other form of the Licensed Technology.
Derivative Works shall include without limitation any software that would
infringe any of Ramot's copyrights in the Licensed Technology.

            1.6 "DERIVED PRODUCT" shall mean a product, compound or drug
candidate that is identified, characterized or developed through the Use of
Licensed Technology and/or a Derivative Work, which is not a Discovered Product,
and that is commercialized by Predix, an Affiliate of Predix or a Sublicensee.
"Derived Products" include, without limitation, those compounds listed on
Exhibit 1.6 attached hereto.

            1.7 "DISCOVERED PRODUCT" shall mean a product, compound or drug
candidate that is identified from an in silico library through the Use of the
Licensed Technology and/or a

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       2
<PAGE>

Derivative Work, which is commercialized by Predix, an Affiliate of Predix or
a Sublicensee, without Modification and which had not been Modified by Predix
prior to such identification. For purposes of this Section 1.7, "Modification"
and "Modified" shall mean modification or optimization that increases the
likelihood that the product, compound or drug candidate can be successfully
developed into a drug product, including without limitation, by making
modifications to such product, compound or drug candidate to alter the
pharmacokinetics, bioavailability, toxicity, or efficacy, to improve stability,
to solve or avoid manufacturing issues or to avoid the intellectual property
rights of a Third Party.

            1.8 "DISPUTE" shall have the definition set forth in Section 10.1.

            1.9 "DRUG APPROVAL APPLICATION" shall mean any application for
Regulatory Approval (including pricing and reimbursement approvals) required
prior to any commercial sale or use of a Licensed Product in any country or
jurisdiction in the Territory.

            1.10 "FIELD" shall mean and include all uses, including without
limitation, all uses relating to the diagnosis, prevention and treatment of any
and all diseases or conditions in humans or animals.

            1.11 "FIRST COMMERCIAL SALE" shall mean, on a country-by-country
basis, the date of the first arm's length transaction, transfer or disposition
for value to a Third Party of a Licensed Product by or on behalf of Predix or
any Affiliate of Predix in such country after Regulatory Approval has been
achieved in the country in which such Licensed Product is sold. Sales for test
marketing, sampling and promotional uses, clinical trial purposes or
compassionate or similar use shall not be considered to constitute a First
Commercial Sale.

            1.12 "FDA" shall mean the United States Food and Drug Administration
and any successor agency or authority thereto.

            1.13 "FOREIGN REGULATORY AUTHORITIES" shall mean any applicable
supranational, national, federal, state or local regulatory agency, department,
bureau or other governmental entity of any country or jurisdiction in the
Territory (other than the FDA in the United States), having responsibility in
such country or jurisdiction for any Regulatory Approvals of any kind in such
country or jurisdiction, and any successor agency or authority thereto.

            1.14 "LICENSED PATENT RIGHTS" shall mean all Patent Rights owned by
Ramot that claim Licensed Technology.

            1.15 "LICENSED PRODUCT" shall mean any and all Derived Products and
Discovered Products, taken collectively.

            1.16 "LICENSED TECHNOLOGY" shall mean: (a) the inventions disclosed
in Israeli Patent Application IL 137885, including without limitation, the novel
computational method for modeling the three (3) dimensional structure of
G-protein coupled receptors from their one (1) dimensional sequence, (b) the
inventions disclosed in Israeli Patent Application IL 137886, including without
limitation, the novel automated protein design algorithm based on the physical
properties that determine the protein structure stability and that is useful for
predicting protein sequences likely to achieve a desired folding pattern in a
very high computational efficiency.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       3
<PAGE>

            1.17 "LICENSED TECHNOLOGY EXCLUSIVITY TERM" shall mean that period
commencing on the Effective Date and continuing until the later of: (a) the
expiration or termination of the last [************] within the Licensed Patent
Rights and (b) the [*******] anniversary of the Effective Date.

            1.18 "NET SALES" shall mean the gross invoiced sales price for all
Licensed Products sold by Predix and its Affiliates to Third Parties throughout
the Territory during each calendar quarter, less the following amounts incurred
or paid by Predix or its Affiliates during such calendar quarter with respect to
sales of Licensed Products regardless of the calendar quarter in which such
sales were made:

            (a) trade, cash and quantity discounts or rebates actually allowed
            or taken, including discounts or rebates to governmental or managed
            care organizations;

            (b) credits or allowances actually given or made for rejection of,
            and for uncollectible amounts on, or return of previously sold
            Licensed Products (including Medicare and similar types of rebates);

            (c) any charges for insurance, freight, and other transportation
            costs directly related to the delivery of Licensed Product to the
            extent included in the gross invoiced sales price;

            (d) any tax, tariff, duty or governmental charge levied on the
            sales, transfer, transportation or delivery of a Licensed Product
            (including any tax such as a value added or similar tax or
            government charge) borne by the seller thereof, other than franchise
            or income tax of any kind whatsoever; and

            (e) any import or export duties or their equivalent borne by the
            seller;

            provided that:

            (i) In any transfers of Licensed Products between Predix and an
Affiliate of Predix or between an Affiliate of Predix and an Affiliate of such
Affiliate, Net Sales (subject to the deductions listed above) shall be equal to
the higher of: (x) the [**************] of the Licensed Products so transferred,
assuming [********************************************************] and (y) the
total amount invoiced by such Affiliate on resale to an independent third party
purchaser; and

            (ii) In the event that Predix, or an Affiliate of Predix, receives
non-monetary consideration for any Licensed Products or in the case of
transactions not at arm's length with a non-Affiliate of Predix or its
Affiliate, Net Sales (subject to the deductions listed above) shall be
calculated based on the fair market value of such consideration or transaction,
assuming an arm's length transaction made in the ordinary course of business.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       4
<PAGE>

Notwithstanding the foregoing, "Net Sales" shall not include sales or transfers
between Predix and its Affiliates, if the Licensed Product is resold by the
Affiliate.

In the event that a Licensed Product under this Agreement is sold in combination
with another active ingredient or component having independent therapeutic
effect or diagnostic utility, then "Net Sales," for purposes of determining
royalty payments on the combination, shall be calculated by [******************
******************************************************************************
***********]. 1.19 "PATENT RIGHTS" shall mean all patent applications and
patents, including Israeli and foreign applications, divisions, continuations,
and continuations-in-part, applications for certificates of invention and
priority rights, certificates of invention, reissues, re-examination
certificates, extensions or other governmental acts that effectively extend the
period of exclusivity by the patent holder, substitutions, renewals,
supplementary protection certificates, confirmations, registrations, validations
and additions.

            1.20 "REGULATORY APPROVAL" shall mean any and all final approvals
(including pricing and reimbursement approvals), product and establishment
licenses, registrations or authorizations of any kind of the FDA or any Foreign
Regulatory Authority permitting the commercial sale of a Licensed Product (or
any component thereof) for use in the Field in any country or other jurisdiction
in the Territory.

            1.21 "ROYALTY TERM" shall mean with respect to each Licensed
Product, on a country-by-country basis, a period of twelve (12) years commencing
on the First Commercial Sale of such Licensed Product in such country.

            1.22 "SERVICE INCOME" shall mean all amounts and other consideration
received by Predix, or an Affiliate of Predix, for or in connection with the
performance of Services; provided that in the event that Predix or an Affiliate
of Predix receives non-monetary consideration in connection with any such
services or in the case of transactions not at arm's length, Service Income
shall be calculated based on the fair market value of such consideration or
transaction, assuming an arm's length transaction made in the ordinary course of
business.

            1.23 "SERVICES" shall mean services performed by Predix, or an
Affiliate of Predix, for the benefit of (a) a Third Party or (b) for the benefit
of a Third Party and Predix and/or an Affiliate of Predix, using the Licensed
Technology.

            1.24 "SOFTWARE PRODUCT" shall mean a software product that
incorporates Licensed Technology. Notwithstanding the foregoing, Software
Products that are also within the definition of "Discovered Product" or "Derived
Product" are hereby deemed to be Software Products only.

            1.25 "SUBLICENSE" shall mean a sublicense, assignment or other grant
of rights by Predix or an Affiliate of Predix to a Third Party (regardless of
whether such grant of rights is or is referred to as a sublicense) of or with
respect to: (a) some or all of the rights granted to Predix under this
Agreement; (b) a Software Product; or (c) the right to Develop, have Developed,
make, have made, use, have used, sell, offer for sale, have sold, import or have

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                        5
<PAGE>

imported Licensed Product(s). For avoidance of doubt, an assignment completed in
accordance with Section 11.3 shall not be included within the term "Sublicense".

            1.26 "SUBLICENSE INCOME" shall mean all amounts and other
consideration received by Predix or an Affiliate of Predix, in connection with a
Sublicense, excluding loans given at prevailing market conditions, research
funding specifically committed to cover costs [******] incurred by Predix in the
research and development of Licensed Products under and in accordance with
[**********************************] bona-fide sublicense agreements with
Sublicensees [*************************************************************
*******] and equity investments in Predix [**********************************];
provided that in the event that Predix or an Affiliate of Predix receives
non-monetary consideration in connection with any such Sublicense or in the case
of transactions not at arm's length, Sublicense Income shall be calculated based
on the fair market value of such consideration or transaction, assuming an arm's
length transaction made in the ordinary course of business. [*******************
*****************************************************************************].

            1.27 "SUBLICENSEE" shall mean any Third Party to whom Predix grants
a Sublicense.

            1.28 "TECHNOLOGY" shall mean any and all technical data,
information, processes, designs, ideas, know-how, methods, procedures, trade
secrets, formulae and all other technology, whether tangible or intangible and
whether patented, patentable or otherwise.

            1.29 "TERM" shall have the definition set forth in Section 9.1.

            1.30 "TERRITORY" shall mean all countries and jurisdictions of the
world.

            1.31 "THIRD PARTY" shall mean any person or entity other than
Predix, Ramot and their respective Affiliates.

            1.32 "USE" shall mean the use of the Licensed Technology or a
Derivative Work in any stage of the characterization, optimization or
development of a Licensed Product or the characterization of the protein
targeted by the Licensed Product; provided that such use either was made prior
to the Effective Date or is made during the Licensed Technology Exclusivity
Term.

            1.33 "VALID CLAIM" shall mean a claim in an unexpired patent or
patent application that: (a) has not been finally cancelled, withdrawn,
abandoned or rejected by any administrative agency or other body of competent
jurisdiction in a final non-appealable or unappealable decision, and (b) has not
been revoked, held invalid, or declared unpatentable in a decision of a court or
other body of competent jurisdiction that is unappealable or unappealed within
the time allowed for appeal.

      2. GRANT OF RIGHTS

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                        6
<PAGE>

      2.1 LICENSE TO PREDIX.

            2.1.1 Grant of License. Ramot hereby grants to Predix an exclusive,
royalty-bearing license, including the right to grant sublicenses in accordance
with Section 2.1.2, under the Licensed Patent Rights and Licensed Technology,
during the Term, to Develop, have Developed, make, have made, use, have used,
sell, offer for sale, have sold, import and have imported, Licensed Products in
the Territory, for any and all uses within the Field, subject to the terms and
conditions of this Agreement.

            2.1.2 Right to Sublicense. Predix shall have the right to grant
sublicenses to any Sublicensee to all or any portion of its rights under the
license granted pursuant to this Article 2, including without limitation as part
of a license to a Software Product; provided, however, that any and all such
sublicenses shall be made for consideration and in arm's length transactions.
Predix shall promptly deliver to Ramot a copy of all sublicenses and all
sublicenses shall be consistent with the material terms and conditions of this
Agreement that impact Ramot.

      3. DEVELOPMENT AND COMMERCIALIZATION OF LICENSED PRODUCTS.

            3.1 COMMERCIALIZATION.

                  3.1.1 Responsibility. From and after the Effective Date,
Predix shall have full control and authority over the Development and
commercialization of Licensed Products. All activities relating to Development
and commercialization under this Agreement shall be undertaken at Predix's sole
cost and expense.

                  3.1.2 Diligence. Predix will exercise [***********************
********] in developing and commercializing Licensed Products in the Field in
the Territory, such [*********************] to be in accordance [************
*****************************************************************************].
The collective annual expenditure by Predix, its Affiliates and Sublicensees of
not less than [*******************************] on the Development of Licensed
Products shall be deemed to satisfy Predix's obligations under this Section
3.1.2 for such year.

      4. PAYMENTS AND ROYALTIES

            4.1 LICENSE FEE. In consideration of the grant of the license
described in Section 2.1 hereof, Predix agrees to the payment to Ramot of an
upfront license fee in the amount of forty thousand dollars ($40,000). Ramot
hereby acknowledges the receipt of such payment prior to the Restated Effective
Date.

            4.2 SHARING OF SUBLICENSE INCOME. In further consideration of the
grant of the license by Ramot hereunder, and subject to the other terms of this
Agreement (including the remainder of this Article 4), Predix agrees to pay to
Ramot, within [***********] of receipt of

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       7
<PAGE>

any Sublicense Income, an amount equal to: (a) ten percent (10%) of such
Sublicense Income if such Sublicense Income is attributable to a Sublicense
with respect to Discovered Products or Software Products and (b) five percent
(5%) of any and all other Sublicense Income.

            4.3 SERVICE INCOME. In further consideration of the grant of the
license by Ramot hereunder, and subject to the other terms of this Agreement
(including the remainder of this Article 4), Predix agrees to pay to Ramot,
within [***********] of receipt of any Service Income, an amount equal to: (a)
[**] of all cumulative Service Income from [*********] to [*****************];
(b) [**] of all cumulative Service Income from [*********] to [************];
and (c) an amount equal to [**] of all cumulative Service Income above [****
*******]. Predix shall not be required to pay Ramot any amount on the first
[********] in cumulative Service Income.

            4.4 PAYMENT OF ROYALTIES; ROYALTY RATES; MINIMUM AND MAXIMUM ANNUAL
ROYALTIES.

                  4.4.1 Royalty Payments In further consideration of the grant
of the  license by Ramot hereunder, and subject to the other terms of this
Agreement (including the remainder of this Article 4), commencing on the date
of the First Commercial Sale of each Licensed Product and continuing during the
Royalty Term for such Licensed Product, Predix shall pay to Ramot a royalty,
calculated on a Licensed Product-by-Licensed Product basis, and equal to a
percentage of cumulative annual Net Sales of each such Licensed Product sold by
Predix and/or its Affiliates in the Territory, as set forth below:

<TABLE>
<CAPTION>
                                                       PERCENTAGE OF NET SALES
LICENSED PRODUCT TYPE     ANNUAL NET SALES              PAYABLE AS ROYALTY
---------------------     -----------------            ----------------------
<S>                       <C>                          <C>
Discovered Products       [***************]                       2.5%

                          [***************]                      [***]
                          [********]

                          [***************]                      [***]

Derived Products          [***************]                       1.5%

                          [***************]                      [***]
                          [********]

                          [***************]                      [***]
</TABLE>

                  4.4.2 Minimum Royalties. In further consideration of the grant
of the license by Ramot hereunder, and subject to the other terms of this
Agreement (including the remainder of this Article 4), Predix agrees to pay to
Ramot an annual minimum royalty of ten thousand dollars ($10,000), payable on
December 31, 2005, and on the each subsequent anniversary of that date during
the term of this Agreement.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       8
<PAGE>
All amounts paid by Predix under Section 4.4.1 shall be fully credited
against its obligations under this Section 4.4.2.

                  4.4.3 Maximum Annual Royalties. Anything herein to the
contrary notwithstanding, the maximum amount Predix shall be obligated to pay to
Ramot under Section 4.4.1 as royalties on Net Sales generated during any
calendar year shall be [*****************************].

            4.5 PAYMENT TERMS.

                  4.5.1 Payment. Predix shall make any payments under Section
4.4 to Ramot in arrears within [**************] from the end of each quarter in
which such payment accrues. Each royalty payment shall be accompanied by a
report for each country in the Territory in which sales of Licensed Products
occurred in the calendar quarter covered by such statement, specifying: the
gross sales and Net Sales in each country's currency; the applicable royalty
rate under this Agreement; the royalties payable in each country's currency,
including an accounting of deductions taken in the calculation of Net Sales; the
applicable exchange rate to convert from each country's currency to United
States Dollars under this Section 4.4; and the royalties payable in United
States Dollars. [***************************************************************
**********************************************].

                  4.5.2 Accounting. All payments hereunder shall be made in
United States dollars by wire transfer to a bank account designated by Ramot.
Conversion of foreign currency to United States dollars shall be made at the
conversion rate existing in the United States [*********************************
************************************************************************
**********************************************], then the rate of exchange to be
used shall be [****************************************************************]
as the Parties reasonably agree. Such payments shall be without deduction of
exchange, collection, or other charges.

                  4.5.3 Tax Withholding; Restrictions on Payment. All payments
hereunder shall be made free and clear of any taxes, duties, levies, fees or
charges, except for withholding taxes (to the extent applicable). If applicable
law requires that taxes be withheld from any amounts due Ramot under this
Agreement, Predix shall make any applicable withholding payments due on behalf
of Ramot and shall promptly provide Ramot with a statement including the amount
of tax withheld and justification therefore, and such other written
documentation regarding any such payment as available to Predix relating to an
application by Ramot for a foreign tax credit for such payment. If by law,
regulations or fiscal policy of a particular country in the Territory,
remittance of royalties in United States Dollars is restricted or forbidden,
written notice thereof shall promptly be given to Ramot, and payment of the
royalty shall be made by the deposit thereof in local currency to the credit of
Ramot in a recognized banking institution reasonably designated by Ramot by
written notice to Predix. Ramot shall be responsible for paying all income taxes
attributable to Ramot as a result of its receipt of funds hereunder, to the
extent applicable.

                  4.5.4 Late Payments. Any payments to be paid under this
Agreement that are not paid on or before the date such payments are due under
this Agreement [**************************************************************
**********************************************************************].

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       9
<PAGE>

            4.6 REPORTS; RECORDS RETENTION; REVIEW.

                  4.6.1 Reporting. Predix undertakes to notify Ramot promptly
following the grant of a Sublicense or the execution of an agreement for the
provision of Services. Each such notification shall include a brief summary of
the financial terms of such transaction.

                  4.6.2 Reports. In addition to the reports under Section 4.5.1,
commencing with the receipt of the first Sublicense Income or Service Income,
Predix shall provide Ramot with quarterly reports setting forth all Sublicense
Income and Service Income received by Predix and its Affiliates. In addition,
within [***********] after the end of each calendar year, Predix shall furnish
Ramot with a written report on the progress of its, its Affiliate's and
Sublicensees' efforts during the prior year to develop and commercialize
Licensed Products, including without limitation research and development
efforts, efforts to obtain Regulatory Approval and marketing efforts. All
reports provided by Predix under Section 4.6.1 and Section 4.6.2 shall
[********************************************************************].

                  4.6.3 Records. Commencing as of the date of the receipt of the
first Net Sales, Sublicense Income or Service Income hereunder, Predix and its
Affiliates shall keep for at least [***********] from the end of the calendar
year to which they pertain complete and accurate records of sales by Predix or
its Affiliates, as the case may be, of each Licensed Product and of Sublicense
Income and Service Income received, in sufficient detail to allow the accuracy
of the payments hereunder to be confirmed.

                  4.6.4 Review. Subject to the other terms of this Section
4.6.4, at the request of Ramot, which shall not be made more frequently than
[*****************] during the Term, upon reasonable prior notice from Ramot,
and at the expense of Ramot, except as otherwise provided herein, Predix and its
Affiliates shall permit an independent certified public accountant selected by
Ramot and reasonably acceptable to Predix to inspect, during regular business
hours, the relevant records required to be maintained by Predix and its
Affiliates under this Section 4.6. In every case the accountant must have
previously entered into a confidentiality agreement with both Parties
substantially similar to the provisions of Article 5 and limiting the disclosure
and use of such information by such accountant to authorized representatives of
the Parties and the purposes germane to this Section 4.6. Results of any such
review shall be binding on both Parties absent manifest error. Ramot agrees to
treat the results of any such accountant's review as Confidential Information of
Predix subject to the terms of Article 5. If any review reveals a deficiency in
the calculation and/or payment of royalties by Predix, then Predix shall
promptly pay Ramot the amount remaining to be paid, and if such underpayment is
by [*******************] of the amount payable during the period under audit,
Predix shall [**********************************************************] in
connection with the review.

      5. TREATMENT OF CONFIDENTIAL INFORMATION; PUBLICATION

            5.1 Confidentiality. Commencing on the Effective Date and continuing
until the [*****************] of the expiration or earlier termination hereof,
each Party shall maintain in confidence the Confidential Information of the
other Party, shall not use or grant the use of the Confidential Information of
the other Party except as expressly permitted hereby, and

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       10
<PAGE>

shall not disclose the Confidential Information of the other Party except on a
need-to-know basis to such Party's directors, officers and employees, and to
such Party's consultants, to the extent such disclosure is necessary in
connection with such Party's activities as expressly authorized by this
Agreement. In addition to the foregoing, Predix may disclose Confidential
Information of Ramot to any Sublicensees that are bound by restrictions on
disclosure that are at least as stringent as those set forth herein. To the
extent that disclosure to any person is authorized by this Agreement, prior to
disclosure, a Party shall obtain, or shall have obtained prior to the date of
this Agreement, written agreement of such person pursuant to which such person
is bound to hold in confidence and not disclose, use or grant the use of the
Confidential Information of the other Party except as expressly permitted under
this Agreement. Each Party shall notify the other Party promptly upon discovery
of any unauthorized use or disclosure of the other Party's Confidential
Information.

            5.2 Terms of Agreement. Neither Party shall disclose any terms or
conditions of this Agreement to any Third Party without the prior consent of the
other Party; provided, however, that a Party may disclose the terms or
conditions of this Agreement: (a) on a need-to-know basis to its legal and
financial advisors to the extent such disclosure is reasonably necessary in
connection with such Party's activities as expressly permitted by this
Agreement, and (b) to a Third Party who is subject to confidentiality
obligations similar to those set forth herein in connection with: (i) an equity
investment in or by such Party, (ii) a merger, consolidation or similar
transaction involving such Party, (iii) the negotiation of a sublicense of
rights granted hereunder or (iv) the sale of all or substantially all of the
assets of such Party. Notwithstanding the foregoing, prior to execution of this
Agreement, the Parties have agreed upon the text of one or more press releases
that describe the terms and conditions of this transaction, and each Party may
disclose such information, as modified by mutual written agreement the Parties,
without the consent of the other Party.

            5.3 Permitted Disclosures. The confidentiality obligations under
this Article 5 shall not apply to the extent that a Party is required to
disclose information by applicable law, regulation or order of a governmental
agency or a court of competent jurisdiction; provided, however, that such Party
shall provide written notice thereof to the other Party, consult with the other
Party with respect to such disclosure and provide the other Party sufficient
opportunity to object to any such disclosure or to request confidential
treatment thereof.

      6. OWNERSHIP OF TECHNOLOGY AND INVENTIONS; FILING, PROSECUTION AND
MAINTENANCE OF PATENT RIGHTS

            6.1 OWNERSHIP OF TECHNOLOGY. Subject to the terms and conditions set
forth herein, including without limitation the license granted in Section 2.1,
Ramot shall own all right, title and interest in and to any and all Licensed
Technology. No rights or licenses in or to any Technology are conveyed hereunder
by implication or estoppel or by any means other than express grant.

            6.2 OWNERSHIP OF LICENSED PRODUCTS. Predix shall own all right,
title and interest in and to any and all Licensed Products, subject to Ramot's
ownership of the underlying Licensed Technology, the terms of the license
granted herein and Predix's obligations herein, including the obligation to pay
royalties as set forth above.

            6.3 PATENT FILING, PROSECUTION AND MAINTENANCE.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       11
<PAGE>

                  6.3.1 Licensed Patent Rights. Ramot and Predix shall consult
each other regarding the preparation, filing and prosecution of all patent
applications, and the maintenance of all patents, included within the Licensed
Patent Rights, including, without limitation, the content, timing and
jurisdiction of the filing of such patent applications and their prosecution,
and other details. Predix shall be responsible for preparing, filing,
prosecuting, obtaining and maintaining, at its sole cost and expense, using
patent counsel reasonably acceptable to Ramot, all Licensed Patent Rights, in
the name of Ramot, with the goal of obtaining and maintaining the Licensed
Patents in a manner that will provide the maximum economic advantage and return
to the Parties under this Agreement. Predix: (i) will provide Ramot with a copy
of any proposed patent application within such Licensed Patent Rights for review
and comment reasonably in advance of filing, and (ii) will keep Ramot informed
of the status of such filing, prosecution and maintenance, including, without
limitation, by providing Ramot with copies of all communications received from
or filed in patent office(s) with respect to such filing, and by providing
Ramot, a reasonable time prior to taking or failing to take any action that
would affect the scope or validity of any such filing (including the
substantially narrowing, cancellation or abandonment of any claim(s) without
retaining the right to pursue such subject matter in a separate application, or
the failure to file or perfect the filing of any claim(s) in any country), with
prior written notice of such proposed action or inaction so that Ramot has a
reasonable opportunity to review and comment. Predix shall not take any such
action that would affect the scope of validity or any such filing without the
prior written consent of Ramot. If Predix fails to undertake the filing(s),
prosecution, protection and/or maintenance of any patent application, patent or
submission within the Licensed Patent Rights, without the prior consent of
Ramot, all claims included in such patent applications, patents and/or
submissions shall be deemed Valid Claims within the Licensed Patent Rights for
purposes of Section 1.17 until such times as the relevant patents would have
expired had they continued to their fullest term.

                  6.3.2 Other Patent Rights. Except as set forth in Section
6.3.1, each Party shall be responsible for preparing, filing, prosecuting,
obtaining and maintaining, at its sole cost, expense and discretion, all of its
own Patent Rights. Predix undertakes to notify Ramot, on an annual basis, of the
filing by or on behalf of Predix or any of its AFFILIATES of any priority patent
application relating to or covering an actual or potential Licensed Product.
Each such notification shall include a brief summary of the invention disclosed
in such application.

            6.4 NOTICE OF INFRINGEMENT. If, during the Term, either Party learns
of any actual, alleged or threatened infringement by a Third Party of any
Licensed Patent Rights, such Party shall promptly notify the other Party and
shall provide such other Party with available evidence of such infringement.

            6.5 INFRINGEMENT OF PATENT RIGHTS. Predix, after consultation with
Ramot, shall have the first right, but not the obligation and with legal counsel
of its own choice, to bring suit, or take other appropriate legal action,
against any actual, alleged or threatened infringement of the Licensed Patent
Rights. If Ramot is joined as a party plaintiff in any such suit, Ramot shall
have the right to approve or disapprove of the counsel selected by Predix to
represent Predix and Ramot, such approval not to be unreasonably withheld. The
expenses of such suit or suits that Predix elects to bring, including any
expenses of Ramot incurred in conjunction with the prosecution of such suits or
the settlement thereof, shall be paid for entirely by Predix and Predix shall
hold Ramot free, clear and harmless from and against any and all costs of such
litigation, including attorney's fees. Predix shall not compromise or settle
such litigation without

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       12
<PAGE>

the prior written consent of Ramot, which consent shall not be unreasonably
withheld or delayed. Ramot shall have the right, at its own expense, to be
represented in any such action by Predix by counsel of Ramot's own choice. If
Predix does not file any action or proceeding against any such infringement
within three (3) months after the earlier of: (i) Predix's notice to Ramot under
Section 6.4 above, (ii) Ramot's notice to Predix under Section 6.2 above, or
(iii) a written request from Ramot to take action with respect to such
infringement, then Ramot shall have the right, but not the obligation, at its
own expense, to bring suit, or take other appropriate legal action, against such
actual, alleged or threatened infringement, with legal counsel of its own
choice, but shall not be permitted to settle any such suit without the prior
consent of Predix, which consent shall not be unreasonably withheld. Any
damages, monetary awards or other amounts recovered, whether by judgment or
settlement, pursuant to any suit, proceeding or other legal action taken under
this Section 6.3, shall be applied as follows:

                  (a) First, to reimburse the Parties for their respective costs
and expenses (including reasonable attorneys' fees and costs) incurred in
prosecuting such enforcement action; and

                  (b) Second, any amounts remaining shall be allocated as
follows: (a) if Ramot is the Party bringing such suit or proceeding or taking
such other legal action, [********************************], (b) if Predix is
the Party bringing such suit or proceeding or taking such other legal action,
[****************************], and (c) if the suit is brought jointly,
[*************************].

If a Party brings any such action or proceeding hereunder, the other Party
agrees to be joined as Party plaintiff if necessary to prosecute such action or
proceeding, and to give the Party bringing such action or proceeding reasonable
assistance and authority to file and prosecute the suit; provided, however, that
neither Party shall be required to transfer any right, title or interest in or
to any property to the other Party or any Third Party to confer standing on a
Party hereunder.

      7. REPRESENTATIONS AND WARRANTIES

            7.1 RAMOT REPRESENTATIONS. Ramot represents and warrants to Predix
that:

            (a) the execution and delivery of this Agreement and the performance
of the transactions contemplated hereby have been duly authorized by all
appropriate Ramot corporate action;

            (b) this Agreement is a legal and valid obligation binding upon
Ramot and enforceable in accordance with its terms, and the execution, delivery
and performance of this Agreement by the Parties does not conflict with any
agreement, instrument or understanding to which Ramot is a Party or by which it
is bound;

            (c) Ramot has the full right and legal capacity to grant the rights
granted to Predix hereunder;

            (d) To the best of Ramot's knowledge, the Licensed Patent Rights
have been properly filed and prosecuted and Ramot is the sole owner of the
Licensed Patent Rights;

            (e) Ramot has no actual knowledge as of the date hereof of any legal
suit or proceeding by a third party (whether threatened or filed) against Ramot
or TAU contesting the

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       13
<PAGE>

ownership or validity of the Licensed Patent Rights, or claiming that the
practice of the Licensed Patent Rights in the manner contemplated by this
Agreement would infringe the rights of such third party;

            (f) Ramot will not grant or convey any rights or licenses to the
Licensed Technology that may limit Predix's ability to exercise the rights and
licenses granted herein to their fullest extent; and

            (g) No member of Ramot's legal staff has received notice of any
infringement or misappropriation by a Third Party of the Licensed Technology.

            7.2 PREDIX REPRESENTATIONS. Predix represents and warrants to Ramot
      that:

            (a) the execution and delivery of this Agreement and the performance
of the transactions contemplated hereby have been duly authorized by all
appropriate Predix corporate action; and

            (b) this Agreement is a legal and valid obligation binding upon
Predix and enforceable in accordance with its terms, and the execution, delivery
and performance of this Agreement by the Parties does not conflict with any
agreement, instrument or understanding to which Predix is a Party of or by which
it is bound.

            (c) Predix will comply with, and shall ensure that its Affiliates
and Sublicensees undertake to comply with, all local, state, federal, and
international laws and regulations relating to the use of the Licensed
Technology and the development, manufacture, use, license and sale of Licensed
Products.

            7.3 NO WARRANTIES.

                  7.3.1 Nothing in this Agreement is or shall be construed as:

                        (a) a warranty or representation by either Party as to
the validity or scope of any patent application or patent licensed hereunder;

                        (b) a warranty or representation that the Licensed
Technology or anything made, used, sold or otherwise disposed of under any
license granted pursuant to this Agreement is or will be free from infringement
of patents, copyrights, and other rights of third Parties.

                  7.3.2 Except as expressly set forth in this Agreement, NEITHER
PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR OF NON-INFRINGEMENT OF
ANY PATENT, COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OF THIRD PARTIES, OR ANY OTHER
EXPRESS OR IMPLIED WARRANTIES.

      8. INDEMNIFICATION; INSURANCE

            8.1 INDEMNIFICATION. Predix shall indemnify, defend and hold
harmless Ramot, its Affiliates and their respective governors, directors,
officers, employees, stockholders

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       14
<PAGE>

and agents and their respective successors, heirs and assigns (the "Ramot
Indemnitees") from and against any liability, damage, loss or expense (including
reasonable attorneys' fees and expenses of litigation) incurred by or imposed
upon such Ramot Indemnitees, or any of them, in connection with any Third Party
claims, suits, actions, demands or judgments, including, without limitation,
personal injury and product liability matters, to the extent arising out of: (a)
the development, testing, production, manufacture, supply, promotion, import,
sale or use by any person of any Software Product or Licensed Product (or any
component thereof) manufactured or sold by Predix or any Affiliate or
Sublicensee under this Agreement, (b) the use of the Licensed Technology or
practice of the Licensed Patent Rights by Predix, any of its Affiliates or any
Sublicensees, (c) any material breach of this Agreement by Predix, (d) any
breach by a Sublicensee of a Sublicense, or (e) the gross negligence or willful
misconduct on the part of Predix or any Affiliate or Sublicensee, in any such
case under this Section 8.1.1, except to the extent any of the foregoing is
caused by the negligence or willful misconduct of Ramot or a breach of this
Agreement by Ramot.

            8.2 INDEMNIFICATION PROCEDURES. In the event that any Indemnitee is
seeking indemnification under Section 8.1 above from Predix, Ramot shall notify
Predix of such claim with respect to such Indemnitee as soon as reasonably
practicable after the Ramot Indemnitee receives notice of the claim, and Ramot
(on behalf of itself and such Ramot Indemnitee) shall permit the Predix to
assume direction and control of the defense of the claim (including the right to
settle the claim solely for monetary consideration, provided that no settlement
shall be made without the consent of Ramot, which consent shall not be
unreasonably withheld) and shall cooperate as requested (at the expense of
Predix) in the defense of the claim. The indemnification obligations under
Article 8 shall not apply to any harm suffered as a direct result of any delay
in notice to Predix hereunder or to amounts paid in settlement of any claim,
demand, action or other proceeding if such settlement is effected without the
consent of Predix, which consent shall not be withheld or delayed unreasonably.
The Indemnitee, its employees and agents, shall reasonably cooperate with Predix
and its legal representatives in the investigation of any claim, demand, action
or other proceeding covered by Section 8.1.

            8.3 INSURANCE. Predix shall, at its sole cost and expense, procure
and maintain product liability insurance with respect to Licensed Products
commencing upon the First Commercial Sale of the first Licensed Product and
continuing until the termination of this Agreement. Such insurance coverage
shall be on terms that are in keeping with industry standards within the
bio-pharmaceutical industry. The insurance shall be underwritten by a reputable
insurance carrier. Ramot shall be named as an additional insured on such policy
and shall be entitled to advance notice of cancellation or expiration of such
policy. Predix shall comply with the requirements and restrictions imposed by
such insurance policy including with respect to the full and timely payment of
all premiums due thereon. Predix shall provide a copy of such insurance policy
to Ramot upon request.

      9. TERM AND TERMINATION

            9.1 TERM; EXPIRATION. The term of this Agreement shall, unless
sooner terminated in accordance with this Section 9, expire upon the expiration
of the final payment obligation under Article 4 above (the "Term"). Upon the
expiration of the Term of this Agreement, Predix shall have a fully paid-up,
irrevocable, freely transferable and sublicensable exclusive license in the
Territory under the Licensed Patent Rights and Licensed Technology, to Develop,
have Developed, make, have made, use, have used, sell, offer for sale, have
sold,

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       15
<PAGE>

import and have imported any and all Licensed Products in the Territory for any
and all uses within the Field.

            9.2 TERMINATION RIGHTS FOR BREACH.

                  Subject to the other terms of this Agreement, this Agreement
and the rights and options granted herein may be terminated by either Party upon
any material breach by the other Party of any material obligation or condition,
effective thirty (30) days after giving written notice to the breaching Party of
such termination in the case of a payment breach and ninety (90) days after
giving written notice to the breaching Party of such termination in the case of
any other breach, which notice shall describe such breach in reasonable detail.
The foregoing notwithstanding, if such default or breach is cured or remedied or
shown to be non-existent within the aforesaid thirty (30) or ninety (90) day
period, the notice shall be automatically withdrawn and of no effect. However,
prior to giving any notice of termination for breach, the Parties shall first
attempt to resolve any disputes as to the existence of any breach as set forth
in Article 10.

            9.3 TERMINATION FOR BANKRUPTCY. In the event that either Party files
for protection under bankruptcy laws, makes an assignment for the benefit of
creditors, appoints or suffers appointment of a receiver or trustee over its
property, files a petition under any bankruptcy or insolvency act or has any
such petition filed against it which is not discharged within sixty (60) days of
the filing thereof, then the other Party may terminate this Agreement effective
immediately upon written notice to such Party.

            9.4 EFFECTS OF TERMINATION.

                  9.4.1 Termination for Predix Breach. Upon any termination of
this Agreement by Ramot under Section 9.2, as of the effective date of such
termination all relevant licenses and sublicenses granted by Ramot to Predix
hereunder shall terminate automatically. Notwithstanding the foregoing: (a) no
such termination of this Agreement shall be construed as a termination of any
valid sublicense of any Sublicensee hereunder, and thereafter each such
Sublicensee shall be considered a direct licensee of Ramot, provided that (i)
such Sublicensee is then in full compliance with all terms and conditions of its
sublicense, (ii) all accrued payments obligations to Ramot have been paid, and
(iii) such Sublicensee agrees in writing to assume all applicable obligations of
Predix under this Agreement, and (b) Predix and its Affiliates and Sublicensees
shall have the right, for [**********] or such longer time period (if any) on
which the Parties mutually agree in writing, to sell or otherwise dispose of all
Licensed Products then on hand, with royalties to be paid to Ramot on all Net
Sales of such Licensed Products as provided for in this Agreement.

                  9.4.2 Termination for Ramot Breach. Upon any termination of
this Agreement by Predix under Section 9.2, as of the effective date of such
termination, Predix thereafter automatically shall have a fully sublicensable
and transferable, fully paid up (subject to the remainder of this Section 9.4),
exclusive license in the Territory under the Licensed Patent Rights and Licensed
Technology, to Develop, have Developed, make, have made, use, have used, sell,
offer for sale, have sold, import and have imported any and all Licensed
Products in the Territory for any and all uses within the Field, provided that
Predix shall pay, [***************************************************
********************************************************************************
********************************************************************************

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       16
<PAGE>

********] that would otherwise apply with respect to Net Sales, Sublicense
Income and Service Income under Section 4 of this Agreement.

            9.5 REMEDIES. Except as otherwise expressly set forth in this
Agreement, the termination provisions of this Article 9 are in addition to any
other relief and remedies available to either Party at law.

            9.6 SURVIVING PROVISIONS. Notwithstanding any provision herein to
the contrary, the rights and obligations of the Parties set forth in Articles 5,
7, 8 and 10 and Sections 6.1, 6.2, 9.1, 9.4, 9.5, 9.6, 11.1, 11.8, and 11.11 as
well as any rights or obligations otherwise accrued hereunder (including any
accrued payment obligations), shall survive the expiration or termination of the
Term.

      10. DISPUTE RESOLUTIONS

      10.1 DISPUTE RESOLUTION. Prior to engaging in any formal dispute
resolution with respect to any dispute, controversy or claim arising out of or
in relation to this Agreement, or the breach, termination or invalidity hereof
(each, a "Dispute"), the Chief Executive Officers of the Parties shall attempt
over a period of not less than [***********] to resolve such Dispute.

      11. MISCELLANEOUS

      11.1 GOVERNING LAW. Except as otherwise provided herein, this Agreement
shall be governed by, interpreted and construed in accordance with the laws of
the State of Israel, without regard to the conflicts of law principles thereof,
and sole jurisdiction is granted to the competent courts in Tel Aviv, Israel.

      11.2 WAIVER. No waiver by a Party hereto of any breach or default of any
of the covenants or agreements herein set forth shall be effective unless set
forth in a writing signed by the waiving Party or shall be deemed a waiver as to
any subsequent and/or similar breach or default.

      11.3 ASSIGNMENT. Neither this Agreement nor any right or obligation
hereunder may be assigned or delegated, in whole or part, by either Party
without the prior express written consent of the other; provided, however, that
either Party may, without the written consent of the other, assign this
Agreement and its rights and delegate its obligations hereunder in connection
with the transfer or sale of all or substantially all of its business, or in the
event of its merger, consolidation, change in control or similar transaction.
Any permitted assignee shall assume all obligations of its assignor under this
Agreement. Any purported assignment in violation of this Section 11.3 shall be
void.

      11.4 INDEPENDENT CONTRACTORS. The relationship of the Parties hereto is
that of independent contractors. Neither Party hereto shall be deemed to be the
agent, partner or joint venturer of the other for any purpose as a result of
this Agreement or the transactions contemplated thereby.

      11.5 FURTHER ACTIONS. Each Party agrees to execute, acknowledge and
deliver such further documents and instruments and to perform all such other
acts as may be necessary or appropriate in order to carry out the purposes and
intent of this Agreement.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.

                                       17
<PAGE>

      11.6 NOTICES. All requests and notices required or permitted to be given
to the Parties hereto shall be given in writing, shall expressly reference the
section(s) of this Agreement to which they pertain, and shall be delivered to
the other Party, effective on receipt, at the appropriate address as set forth
below or to such other addresses as may be designated in writing by the Parties
from time to time during the term of this Agreement.

           If to Ramot:

                  Ramot at Tel Aviv University Ltd.
                  32 Haim Levanon Street
                  POB 39296
                  Tel Aviv 61392
                  ISRAEL

                  Attn: CEO

           If to Predix:

                  Predix Pharmaceuticals
                  10K Gill Street
                  Woburn, MA 01801
                  USA
                  Attn: Chief Executive Officer

                  Copy to:

                  Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, PC
                  One Financial Center
                  Boston, MA 02111
                  USA
                  Attn: Christopher J. Denn, Esq.

      11.7 FORCE MAJEURE. Nonperformance of a Party (other than for the payment
of money) shall be excused to the extent that performance is rendered impossible
by strike, fire, earthquake, flood, governmental acts or orders or restrictions,
failure of suppliers, or any other reason where failure to perform is beyond the
reasonable control and not caused by the negligence, intentional conduct or
misconduct of the nonperforming Party; provided, however, that the nonperforming
Party shall use commercially reasonable efforts to resume performance as soon as
reasonably practicable.

      11.8 NO CONSEQUENTIAL DAMAGES. IN NO EVENT SHALL A PARTY BE LIABLE FOR
SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT OR
THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST PROFITS
ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY
NOTICE OF SUCH DAMAGES.

      11.9 COMPLETE AGREEMENT. This Agreement constitutes the entire agreement
between the Parties regarding the subject matter hereof, and all prior
representations, understandings and agreements regarding the subject matter
hereof, either written or oral, expressed or implied, are

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OMISSIONS.

                                       18
<PAGE>

superseded and shall be and of no effect.

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

      11.11 SECTION 365(n). All licenses granted under this Agreement are deemed
to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of
right to "intellectual property" as defined in Section 101 of such Code.

      11.12 FURTHER ASSURANCES. Each Party agrees to execute, acknowledge and
deliver such further instructions, and to do all such other acts, as may be
necessary or appropriate in order to carry out the purposes and intent of this
Agreement.

      11.13 COUNTERPARTS. This Agreement may be executed simultaneously in one
or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

      11.14 TERMINATION OF ORIGINAL AGREEMENT. The Parties acknowledge and agree
that: (i) the Original Agreement is hereby terminated as of the Restated
Effective Date and (ii) except as provided herein, all rights, obligations and
licenses provided for under the Original Agreement shall terminate and shall be
of no further force or effect on and after the Restated Effective Date.

                  [Remainder of page intentionally left blank]

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                                       19
<PAGE>
      IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed
by their duly authorized representative in two (2) originals.

<Table>
<Caption>
<S>                                                            <C>
PREDIX PHARMACEUTICALS
HOLDINGS, INC.                                                 RAMOT AT TEL AVIV UNIVERSITY LTD.

By: /s/ MICHAEL G. KAUFFMAN       /s/ CHEN SCHOR               By: /s/ ISAAC T. KOHLBERG       /s/ MENASHE KAY
    -------------------------------------------                    --------------------------------------------

Name: Michael Kauffman            Chen Schor                   Name: Isaac T. Kohlberg         Menashe Kay

Title: President and CEO CBO                                   Title: Chief Executive Officer Chief
                                                                      Operating Officer
</Table>

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OMISSIONS.

                                       20
<PAGE>

                                   EXHIBIT 1.6

                                DERIVED PRODUCTS

<TABLE>
<CAPTION>
PREDIX COMPOUNDS TARGET MINTZ LEVIN DOCKET NO. COUNTRY TITLE NAMED INVENTOR(S) APPLICATION NO. PATENT NO. FILING DATE
<S>              <C>                           <C>     <C>   <C>               <C>             <C>        <C>
[ * * * * * * * Exhibit 1.6 contains confidential material and has been omitted
                      in its entirety. * * * * * * * * * *]
</TABLE>

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OMISSIONS.<PAGE>
                                                                    Exhibit 10.4
                                                                  EXECUTION COPY

              RESEARCH, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

                                     BETWEEN

                      PREDIX PHARMACEUTICALS HOLDINGS, INC.

                                       AND

              CYSTIC FIBROSIS FOUNDATION THERAPEUTICS INCORPORATED

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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

              Research, Development and Commercialization Agreement

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                              Page
<S>                                                                           <C>
ARTICLE I - DEFINITIONS.....................................................   2

ARTICLE II - RESEARCH PROGRAM...............................................   8
  2.1   Commencement; Objective.............................................   8
  2.2   Term................................................................   9
  2.3   Research Diligence..................................................   9
  2.4   Research Plan.......................................................   9
  2.5   Joint Research Committee............................................  10
  2.6   Exchange of Information.............................................  11

ARTICLE III - PAYMENTS......................................................  12
  3.1   Staffing and Research Support Payments..............................  12
  3.2   Payments............................................................  14
  3.3   Records.............................................................  15

ARTICLE IV - COMMERCIALIZATION; ROYALTIES...................................  16
  4.1   Discovery and Commercialization of a CFTR Corrector-Based Product;
  Commercialization of P2(Y)2 Product.......................................  16
  4.2   Due Diligence.......................................................  16
  4.3   Royalties...........................................................  17
  4.4   Sales Reports.......................................................  17

ARTICLE V - CONFIDENTIALITY.................................................  19
  5.1   Undertaking.........................................................  19
  5.2   Exceptions..........................................................  20
  5.3   Publicity...........................................................  21

ARTICLE VI - PUBLICATION....................................................  22

ARTICLE VII - INDEMNIFICATION...............................................  24
  7.1   Indemnification by Predix...........................................  24
  7.2   Claims Procedures...................................................  25

ARTICLE VIII - PATENTABLE INVENTIONS........................................  26
  8.1   Ownership...........................................................  26
  8.2   Preparation.........................................................  27
  8.3   Costs...............................................................  27

ARTICLE IX - TERM AND TERMINATION...........................................  27
  9.1   Term................................................................  27
  9.2   Termination of the Research Programs Without Cause..................  28
  9.3   Termination of the Research Program by CFFT for Cause...............  28
  9.4   Termination of the Research Program by Predix for Cause.............  28
  9.5   General Effect of Termination.......................................  29
</TABLE>

                                       i

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<PAGE>
                                                                  EXECUTION COPY

<TABLE>
<S>                                                                           <C>
  9.6   Consequences of an Interruption.....................................  29

ARTICLE X - REPRESENTATIONS AND WARRANTIES..................................  30
  10.1  Representations and Warranties of Predix............................  30
  10.2  Representations and Warranties of CFFT..............................  31

ARTICLE XI - MISCELLANEOUS PROVISIONS.......................................  31
  11.1  Governing Law, and Jurisdiction.....................................  31
  11.2  Waiver..............................................................  31
  11.3  Force Majeure.......................................................  32
  11.4  Severability........................................................  32
  11.5  Government Acts.....................................................  32
  11.6  Assignment..........................................................  33
  11.7  Counterparts........................................................  33
  11.8  No Agency...........................................................  34
  11.9  Notice..............................................................  34
  11.10 Headings............................................................  35
  11.11 Authority...........................................................  35
  11.12 Entire Agreement....................................................  36
  11.13 Notice of Pharmaceutical Side-Effects...............................  36
</TABLE>

                                       ii

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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

             RESEARCH, DEVELOPMENT AND COMMECIALIZATION AGREEMENT

      This Agreement (this "Agreement") is made on this 7th day of March, 2005
(the "Effective Date"), between Predix Pharmaceuticals Holdings, Inc.
("Predix"), a Delaware corporation with principal offices at 10K Gill Street,
Woburn, MA 01801, and Cystic Fibrosis Foundation Therapeutics Incorporated, a
Delaware corporation with its principal offices at 6931 Arlington Road,
Bethesda, Maryland 20814 ("CFFT"). Collectively, Predix and CFFT shall be
referred to hereinafter as the "Parties".

      WHEREAS, Predix has expertise in 3D technology and the discovery and
development of small molecule compounds addressing a variety of diseases; and

      WHEREAS, CFFT is significantly focused on the discovery and development of
methods of treatment of cystic fibrosis, to which CFFT and its Affiliates bring
significant scientific and human resources and financial support; and

      WHEREAS, CFFT wishes to support the Research Programs specified
hereinafter to be undertaken by Predix;

      NOW, THEREFORE, in consideration of the mutual covenants set forth in this
Agreement, and other good and valuable consideration, the Parties agree as
follows:

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<PAGE>
                                                                  EXECUTION COPY

                              ARTICLE I - DEFINITIONS

      For purposes of this Agreement, the terms defined in this Article 1 shall
have the following meanings whether used in their singular or plural forms. Use
of the singular shall include the plural and vice versa, unless the context
requires otherwise:

      1.1 "Affiliate" shall mean, with respect to any Person, any other Person
who directly or indirectly, by itself or through one or more intermediaries,
controls, or is controlled by, or is under direct or indirect common control
with, such Person. The term "control" means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise. Control will be presumed if one Person owns, either of record or
beneficially, more than fifty percent (50%) of the voting stock of any other
Person. For the avoidance of any doubt, the Cystic Fibrosis Foundation and CFFT
are considered to be Affiliates.

      1.2 "Agreement" means this agreement, together with all appendices,
exhibits and schedules hereto, and as the same may be amended or supplemented
from time to time hereafter by a written agreement duly executed by authorized
representatives of each party hereto.

      1.3 "Budget" shall mean the total amount to be paid by CFFT to Predix for
each of Research Program I and Research Program II as specified in Article III.

      1.4   "CF" means the disease known as Cystic Fibrosis.

      1.5   "CF Field" means the treatment of humans diagnosed with CF.

      1.6 "CFTR" shall mean a CF transmembrane conductance regulator protein
which has the biological effect of transporting molecules across human cellular
membranes.

                                      -2-

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<PAGE>
                                                                  EXECUTION COPY

      1.7 "Commercially Reasonable Efforts" shall have the definition set forth
in Section 4.2.

      1.8 "Controlled" (except in the context of Section 1.1) shall mean the
legal authority or right of a party hereto to grant a license or sublicense of
intellectual property rights to another party hereto, or to otherwise disclose
proprietary or trade secret information to such other party, without breaching
the terms of any agreement with a Third Party, infringing upon the intellectual
property rights of a Third Party, or misappropriating the proprietary or trade
secret information of a Third Party.

      1.9 "Corrector" shall mean a compound which, as its principal mode of
therapeutic action, modulates the biological effect of CFTR by increasing the
amount of functional AF508 CFTR present at the apical cell membrane.

      1.10 "Effective Date" shall mean the date specified in the first paragraph
of this Agreement.

      1.11 "Field" shall mean the treatment of conditions or diseases in the CF
Field and the Pulmonary Field.

      1.12 "First Commercial Sale" shall mean the first sale of a P2(Y)2 Product
by Predix or an Affiliate, licensee or sublicensee of Predix in a country in the
Territory following Regulatory Approval of the P2(Y)2 Product in that country
or, if no such Regulatory Approval or similar marketing approval is required,
the date upon which the P2(Y)2 Product is first commercially launched in that
country.

      1.13 "FTE" shall mean the equivalent of the work of one Predix scientist
or other project managerial professional, full time for one year, on or directly
related to the Research

                                      -3-
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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

Program. Activities included in calculating FTE's shall not include negotiation
of this Agreement or modifications or extensions thereof or administration
activities such as accounting, invoicing, personnel related activities or the
like.

      1.14 "Hit" shall have the meaning ascribed to it in Section 3.1.2 of this
Agreement.

      1.15 "Interruption" shall occur (i) if at any time before the First
Commercial Sale of a P2(Y)2 Product, Predix, its Affiliates and sublicensees,
all cease to conduct, or have conducted, research activities associated with the
development of such Product for a period of one hundred and eighty (180)
consecutive days; and (ii) as specified in Section 4.1.1.

      1.16 "Joint Research Committee" or "JRC" shall have the meaning ascribed
to it in Section 2.5 of Agreement.

      1.17 "Net Sales" with respect to any product shall mean the gross amount
invoiced by the selling party and its Affiliates, licensees or sublicensees for
products sold in bona fide, arms-length transactions to Third Parties for use in
the Field, less (i) quantity and/or cash discounts from the gross invoice price
which are actually allowed or taken; (ii) freight, postage and insurance
included in the invoice price; (iii) amounts repaid or credited by reasons of
rejections or return of goods or because of retroactive price reductions
specifically identifiable to such product; (iv) amounts payable resulting from
government (or agency thereof) mandated rebate programs; (v) third-party rebates
or charge-backs to the extent actually allowed; (vi) invoiced customs duties and
sales taxes (excluding income, value-added and similar taxes), if any, actually
paid and directly related to the sale that are not reimbursed by the buyer; and
(vii) any other specifically identifiable amounts included in the product's
gross invoice price that should be credited for reasons substantially equivalent
to those listed above; all as determined in

                                      -4-

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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

accordance with the selling party's usual and customary accounting methods,
which are in accordance with generally accepted accounting principles.

            In the case of any sale or other disposal of a product between or
among the selling party and its Affiliates, licensees and sublicensees, for
resale, Net Sales shall be calculated as above only on the value charged or
invoiced on the first arm's-length sale thereafter to a Third Party;

            In the case of any sale which is not invoiced or is delivered before
invoice, Net Sales shall be calculated at the time of shipment or when the
product is paid for, if paid for before shipment or invoice;

            In the case of any sale or other disposal for value, such as barter
or counter-trade, of any product, or part thereof, other than in an arm's length
transaction exclusively for money, Net Sales shall be calculated as above on the
value of the consideration received;

            In the event the product is sold in a finished dosage form
containing the product in combination with one or more other active ingredients
(a "Combination Product"), the Net Sales of the product, for the purposes of
determining royalty payments, shall be determined by multiplying the Net Sales
(as defined above in this Section) of the Combination Product by the fraction,
A/(A+B) where A is the weighted (by sales volume) average sale price of the
product when sold separately in finished form and B is the weighted average sale
price of the other product(s) sold separately in finished form, provided that
the above formula in this Section 1.19 shall not apply if the product is only
sold in combination form and if each of the active ingredients in a Combination
Product results from the Research Program and in each such event the following
sentence shall apply. In the event that such average sale price cannot be
determined for both the product and the other product(s) in combination, Net
Sales for purposes

                                      -5-

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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

of determining royalty payments shall be mutually agreed by the Parties based on
relative value contributed by each component, and such agreement shall not be
unreasonably withheld.

      1.18 "Patents" means all existing patents and patent applications and all
patent applications hereafter filed, including any continuation,
continuation-in-part, division, provisional or any substitute applications, any
patent issued with respect to any such patent applications, any reissue,
reexamination, renewal or extension (including any supplementary protection
certificate) of any such patent, and any confirmation patent or registration
patent or patent of addition based on any such patent, and all foreign
counterparts of any of the foregoing.

      1.19 "Person" means any individual, corporation, partnership, association,
joint-stock company, trust, unincorporated organization or government or
political subdivision thereof.

      1.20 "Predix CF Technology" shall mean all data, technical information,
know-how, inventions (whether or not patented) trade secrets, processes and
methods discovered or developed, and Controlled by Predix or its Affiliates, in
the performance of the Research Program under this Agreement, including without
limitation, the 3D coordinates of the CFTR to be developed by Predix hereunder;
provided, however, that notwithstanding the foregoing, the term "Predix CF
Technology" shall not include any data, technical information, know-how,
inventions (whether or not patented) trade secrets, processes or methods owned
or Controlled by Predix prior to, or outside of, Predix's performance of the
Research Program under this Agreement, including without limitation, Predix's
general receptor and ion channel modeling technology, or computational drug
discovery, drug optimization and drug design technology, or any enhancements or
improvements to any of the foregoing.

      1.21 "Predix Patents" shall mean any Patents Controlled by Predix or its
Affiliates claiming Predix CF Technology.

                                      -6-

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<PAGE>
                                                                  EXECUTION COPY

      1.22 "Prime Rate" shall mean the average prime rate published in the Wall
Street Journal during the relevant period.

      1.23 "Pulmonary Field" shall mean the treatment of diseases of the human
pulmonary tract or lungs, other than CF.

      1.24  "P2Y(2) Product" shall have the meaning set forth in Section 2.1.

      1.25 "Regulatory Approval" shall mean, with respect to any country, all
authorizations by the appropriate governmental entity or entities necessary for
commercial sale of a pharmaceutical product in that country including, without
limitation and where applicable, approval of labeling, price, reimbursement and
manufacturing. "Regulatory Approval" in the United States shall mean final
approval of a new drug application pursuant to 21 CFR Section 314, permitting
marketing of the P2(Y)2 Product in interstate commerce In the United States.
"Regulatory Approval" in the European Union shall mean final approval of a
Marketing Authorization Application, or equivalent.

      1.26 "Research Plan" shall have the meaning set forth in Section 2.4
hereof.

      1.27 "Research Program I" shall have the meaning set forth in Section 2.1.

      1.28 "Research Program II" shall have the meaning set forth in Section
2.1.

      1.29 "Research Programs" shall mean collectively all research activities
undertaken under this Agreement relating to Research Program I and Research
Program II.

      1.30 "Research Termination Date" shall mean the date which is thirty six
(36) months following the Effective Date for Research Program I and the date
which is twenty four (24)

                                      -7-
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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

months following the Effective Date for Research Program II, in both cases
subject to extension as provided in Section 2.2.

      1.31  "Territory" shall mean worldwide.

      1.32 "Third Party" shall mean any person or entity which is not a party or
an Affiliate of any party to this Agreement.

                           ARTICLE II - RESEARCH PROGRAM

      2.1   COMMENCEMENT; OBJECTIVE.

      Predix will be responsible for the conduct of the Research Programs as set
forth herein. CFFT will provide the financial support hereinafter specified, and
consultation and advice as provided herein through its participation on the JRC
as provided below. The Research Program will consist of two sets of separate
activities, as set forth in the Research Plan, and generally described as
follows: (i) Predix will use its 3D technology and modeling expertise to model
the 3D structure of the CFTR (such activities are the "Research Program I") and
(ii) Predix will use its 3D GPCR technology to discover a small-molecule P2Y(2)
agonist that once optimized will be a novel compound for the treatment of CF
(such activities are "Research Program II" and any product containing a
small-molecule P2Y(2) agonist discovered during the performance of Research
Program II, whether or not the molecule has been further optimized, is a "P2Y(2)
Product").

      Following the successful completion of Research Program I (or prior to its
completion if the Parties so desire), the Parties agree to negotiate in good
faith towards an agreement pursuant to which a molecule that will act as a CFTR
Corrector will be discovered, optimized, developed

                                      -8-

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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

and commercialized, all as more fully set forth in Section 4.1. Subject to
CFFT's rights in the event of an Interruption pursuant to Section 9.6 of this
Agreement, Predix shall have exclusive rights to further develop and
commercialize all P2Y(2) Products.

      2.2   TERM.

      The Research Programs shall commence on the Effective Date and will
conclude on the Research Termination Date, unless extended by agreement of the
Parties, or unless earlier terminated in accordance with the provisions of
Article IX hereof. The Parties may discuss at any time whether, and upon what
basis, the Research Program might be extended beyond the initial Research
Termination Date.

      2.3   RESEARCH DILIGENCE.

      Predix will work diligently and use reasonable efforts, consistent with
prudent business judgment, to accomplish the goals of the Research Programs.
Predix will dedicate to the Research Programs at least that level of staffing
referenced in Section 3.1 hereof, and expects to employ an appropriate
combination of experience and training in the CF Field.

      2.4   RESEARCH PLAN.

            Predix and CFFT have agreed upon an overall research plan for the
Research Programs, a copy of which is attached to this Agreement as Exhibit 2.4.
The JRC will review and evaluate the Research Plan, taking into consideration
ongoing research outcomes and other scientific and commercial developments, at
each meeting of the JRC after the Effective Date, and any resulting
modifications will be incorporated into the Research Plan (the original plan,
and any such modifications are referred to herein as the "Research Plan").
Modifications to the Research Plan may be proposed by either Predix or CFFT and
must be approved by the JRC

                                      -9-

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<PAGE>
                                                                  EXECUTION COPY

before being adopted. Any modification to the Research Plan proposed by Predix
that would (a) reduce the levels of FTE resources to be devoted by Predix to the
Research Programs below; or (b) increase the Budget for either Research Program
I or Research Program II, shall not be adopted without the approval of CFFT,
which will act expeditiously on any such proposal.

      2.5   JOINT RESEARCH COMMITTEE.

            2.5.1 Composition and Purposes. Predix and CFFT shall establish a
Joint Research Committee ("JRC") consisting of at least six (6) representatives
(as may be increased or decreased by the JRC), half of whom shall be designated
from time to time by each party. Each party shall choose a Program Coordinator
who may be changed from time to time by designation of each party. The Program
Coordinator for Predix shall be Oren Becker, PhD. The Program Coordinator for
CFFT shall be Diana Wetmore. If the JRC chooses to designate a Committee Chair,
the Chair will be Predix's Program Coordinator. The JRC shall meet formally no
less frequently than once in each three (3) month period during the Research
Program, and at such time and location, as may be established by the Committee.
However, the JRC will make its schedule flexible in order to foster the
successful completion of the Research Programs. The JRC shall meet for the
following purposes:

                  (I) to review and discuss the Research Plan and evaluate any
            proposed revisions to any of those plans;

                  (II) to determine whether milestones have been achieved; and

                  (III) to provide guidance to the research team if such
            guidance is needed on next steps to implement the Research Programs.

                                      -10-

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            At least five (5) working days prior to each JRC meeting, Predix
will send a written report to CFFT detailing the progress made in the respective
Research Programs during the preceding quarter. Within thirty (30) days after
the date of each meeting, Predix shall prepare and deliver minutes of the
meeting to the members of the JRC, setting forth, inter alia, all decisions of
the JRC, and including as an attachment the report on the progress of work
performed required by this Section 2.5.1.

            2.5.2 MILESTONE DECISION-MAKING. The JRC shall determine whether or
not milestone events have been achieved. Each of Predix and CFFT shall have one
vote on such matter, to be exercised by their respective Program Coordinators.
In the event a deadlock occurs or whether or not a milestone event has been
successfully completed, the Parties shall mutually select a Third Party who
shall make such determination. The determination of such party shall be binding
on the Parties.

            Each party shall retain the rights, powers, and discretion granted
to it under this Agreement, and the JRC shall not be delegated or vested with
any such rights, powers or discretion except as expressly provided in this
Agreement. The JRC shall not have the power to amend or modify this Agreement,
which may only be amended or modified as provided in Section 11.12.

      2.6   EXCHANGE OF INFORMATION.

            Predix will share information with the JRC when available and
necessary to facilitate mutual understanding of the status of the Research
Program and decision-making in connection therewith.

                                      -11-

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SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

                               ARTICLE III - PAYMENTS

      3.1   STAFFING AND RESEARCH SUPPORT PAYMENTS.

            CFFT will make the payments to Predix specified below during the
Term in support of the Research Programs under this Agreement.

            3.1.1.RESEARCH PROGRAM I

<TABLE>
<CAPTION>
               Item in     Estimated    FTE          Out-sourced  Total
               Exhibit 2.4 Time         Research     activities   Budgeted
                           (Months)*    Funding (#                Amount
                                        FTEs
                                        charged at
<S>            <C>         <C>          <C>          <C>          <C>
                                        $[*******
                                        **********]
</TABLE>

a)  [******************]:   to be paid on the date of execution   $2,000,000

b)  Base Research Funding:

<TABLE>
<S>            <C>         <C>            <C>          <C>          <C>
Modeling the   [**] and    [**] or less   $[*****](6)  $[*****];    $[********]
3D structure   [**]                                    $[*****]
of
[***********
*********
*******] and
**********
[*******
*********]
Structure      [**] and    [**] or less   $[*****](6)  $[*****      $[********]
based          [**]                                    *****]
analysis and
experimental
validation of
[*********
******] and
[********
********]
Modeling 3D    [**]        [**] or less   $[*****](6)  $[********   $[*********]
structure of                                           *********
the [********                                          ********]
*********
**********]
Structure      [**]        [**] or less   $*****](6)   $[********   $[********]
based                                                  ********]
analysis and
Experimental
validation of
[**********]
</TABLE>

                                      -12-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

c)  Milestones:

<TABLE>
<S>                                                                                                      <C>
(1) 3D Model of [**************] (as defined in section 13.1 of Exhibit 2.4)                             $[********]
(2) 3D Model of [**************] (as defined in section 13.2 of Exhibit 2.4)                             $[********]
(3) Identification of a route for [**************] (as defined in section 13.3 of Exhibit 2.4)           $[********]**

Aggregate Budgeted Amount for Research Program I                                                         $10,500,000
</TABLE>

Each milestone shall be due and payable thirty (30) days after it is achieved.
All milestones under Research Program I that are not achieved prior to the
Research Termination Date will nevertheless be paid by CFFT to Predix if
achieved within 180 days after the Research Termination Date.

*    Periods are estimates. The parties anticipate that particular aspects of
     the Research Programs may take longer than the periods indicated but that
     the Research Programs will likely be completed on or prior to the Research
     Termination Date.

**   This payment shall be reduced to $[********] if this milestone is
     accomplished before the milestone in subparagraph (c)(2) above ("Milestone
     (c)(2)"); and, the remaining $[********] shall be added to the amount
     specified for Milestone (c)(2) and paid to Predix upon the accomplishment
     of Milestone (c)(2).

            3.1.2.RESEARCH PROGRAM II

      The total Budget for Research Program II shall be $2 million consisting of
up to [******] FTEs per year and/or the expense of out-sourced activities, for
the [******] period beginning on the Effective Date. FTEs budgeted amounts shall
be billed by Predix to CFFT [******]; provided that, total FTE billing in
[*************************] during which Research Program II will be conducted
will not exceed [*****] FTEs billable at $[****] per FTE in each such
[*************] period. If Predix does not identify a hit for the P2Y(2)
receptor that has an [***************] in a [**************] (or an equivalent
assay) (a "Hit"), within the [***************] period following the Effective
Date of this Agreement, CFFT will terminate payments for FTE payments for
Research Program II, after payment for the FTE's allocable to the initial
[********] period until a Hit is identified; provided that, FTE payments for the

                                      -13-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

additional [***********] period budgeted for Research Program II will resume
when a Hit is identified if such identification occurs within
[******************] of such termination.

      3.2   PAYMENTS.

            Budgeted payments due on account of internal FTEs shall be made by
CFFT [******] within thirty (30) days of the receipt of invoices for such
amounts. Budgeted payments on account of external costs shall be made by CFFT
[******] in arrears within thirty (30) days following receipt of an invoice for
such external costs accompanied by usual and customary documentation of such
costs. Amounts budgeted for outsourced activities may be reallocated among
different outsourced activities so long as the total costs to be reimbursed by
CFFT do not exceed the total amount budgeted for outsourced activities. In
addition to the amounts indicated above for outsourced activities, CFFT shall
arrange for and direct pay a service provider for the site directed mutagenesis
services described in Section 10.2.1 of Exhibit 2.4. All payments shall be made
without deduction for withholding or other similar taxes, in United States
dollars to the credit of such bank account as may be designated by Predix in
writing to CFFT. Any payments which fall due on a date which is a legal holiday
in the State of Maryland may be made on the next following day which is not a
legal holiday in the State of Maryland. On or before each of March 1, 2006 and
March 1, 2007 Predix will provide CFFT with an accounting of all internal FTE
costs (consisting of the names and dates worked for those persons who are
included within the reimbursed FTE costs) and outsourcing costs incurred under
the Research Programs during the most recently concluded calendar year. Internal
FTE costs will be calculated at an annual rate of $[******] per FTE. Costs
incurred will be compared with funds provided by CFFT on account of that year,
and any excess of funds paid to Predix over costs incurred will be refunded to
CFFT within thirty (30) days or, as to amounts due on account of 2005
activities, applied as a credit against amounts due for 2006 activities.

                                      -14-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

      3.3   RECORDS.

            Predix shall keep accurate records and books of accounts containing
all data reasonably required for the calculation and verification of the number
of FTE's employed in the performance of the Research Programs, and outsourcing
costs incurred by Predix in the Research Program during the term of this
Agreement and for a period of thirty six (36) months thereafter. CFFT, through
an independent accounting firm unaffiliated with either CFFT or Predix, shall
have the right at its expense to audit Predix's relevant records to verify
compliance with FTE and other research funding allocation requirements
hereunder. At CFFT's request, Predix shall make those records available, no more
than [********], during reasonable working hours, for review by a recognized
independent accounting firm acceptable to both Parties, at CFFT's expense, for
the sole purpose of verifying the accuracy of those records in the calculation
of Research Program FTEs and outsourcing costs. Predix shall not, however, be
required to retain or make available to CFFT or its accountants, any such
records or books of account for either [*****] or [*****] beyond
[***************] from the Research Termination Date. CFFT shall cause the
accounting firm to retain all such information in confidence. Such accounting
firm shall report to CFFT only the existence and amount of any variance between
the amount paid and the amount that was actually due hereunder. In the event
that the aggregate costs actually chargeable to the Research Programs during any
calendar year are less than the amount previously advanced to Predix by CFFT and
properly attributable to that calendar year (a "Negative Difference"), in
addition to reimbursing CFFT for the Negative Difference
[*************************** **************************], if the Negative
Difference is more than [*****] percent ([*****]%) of the amounts properly
attributable to that calendar year, then Predix shall [*****************
****************************************************] in the review.

                                      -15-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

                     ARTICLE IV - COMMERCIALIZATION; ROYALTIES

      4.1 DISCOVERY AND COMMERCIALIZATION OF A CFTR CORRECTOR-BASED PRODUCT;
COMMERCIALIZATION OF P2(Y)2 PRODUCT.

            4.1.1 DISCOVERY AND COMMERCIALIZATION OF A CFTR CORRECTOR-BASED
PRODUCT. Following the completion of the work set forth in the Research Plan
relating to Research Program I (or prior to its completion if the Parties so
desire), the Parties agree to negotiate in good faith, for a period of up to
sixty (60) days, towards an agreement pursuant to which Predix will, building
upon the Predix CF Technology, explore a structure-based route for the discovery
and commercialization of a molecule that will act as a CFTR Corrector with the
financial support of CFFT and subject to a royalty or similar obligation to
CFFT. Other than participating in such good faith negotiations, however, neither
party shall be obligated to enter into such an agreement. If the Parties do not
enter into such an agreement during such sixty (60) day period, an Interruption
shall be deemed to have occurred with respect to Research Program I with the
attendant consequences provided for in Section 9.6.

            4.1.2 COMMERCIALIZATION OF P2Y(2) PRODUCT. Except in the event of an
Interruption, Predix and/or its licensees and sublicensees shall have exclusive
rights to market, sell and distribute any or all P2Y(2) Products throughout the
Territory.

      4.2   DUE DILIGENCE.

            Predix shall use diligent and commercially reasonable efforts
consistent with the requirements of the Development Program and sound and
reasonable business practices and judgment to effect introduction of P2(Y)2
Products into major markets in North America and Europe as soon as reasonably
practicable, devoting the same degree of attention and diligence to

                                      -16-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

those efforts that it devotes to similar activities for its other products of
comparable market potential (such efforts are "Commercially Reasonable
Efforts").

      4.3   ROYALTIES.

            Within thirty (30) days following the [***************] of the first
P2(Y)2 Product, Predix shall pay a [*****] royalty to CFFT of $[*****]. If
aggregate Net Sales of such P2(Y)2 Product in the [***************] following
the month the [*************] is granted ("Relevant [**]") exceed $250 million,
Predix shall pay to CFFT an additional [*****] royalty of $[*****]; or, if such
Net Sales exceed $[************], Predix shall pay to CFFT an additional [*****]
royalty of $[*****] (in lieu of the $[**********] payment). The additional
royalty shall be paid within 60 days following the close of the relevant
[*************] period.

      4.4   SALES REPORTS.

            (A) Within sixty (60) days after the conclusion of the Relevant
[**], Predix shall furnish or cause to be furnished to CFFT a written report or
reports covering the Relevant [**] showing, for Net Sales, (i) the Net Sales for
the first P2(Y)2 Product in each country in the world during the reporting
period by Predix and each Affiliate, licensee and sublicensee; (ii) any royalty,
payable in U.S. dollars ("Dollars"), which shall have accrued under Section 4.3
hereof in respect of such sales and the basis of calculating the royalty; and
(iii) the exchange rates used in converting into Dollars, from the currencies in
which sales were made, any amounts which are included within Net Sales; and (iv)
dispositions of P2(Y)2 Products other than pursuant to sale for cash. With
respect to sales of P2(Y)2 Products invoiced in Dollars, the Net Sales amounts
and the amounts due to CFFT hereunder shall be expressed in Dollars. With
respect to sales of P2(Y)2 Products invoiced in a currency other than Dollars,
the Net Sales and amounts due to

                                      -17-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

CFFT hereunder shall be expressed in the domestic currency of the party making
the sale, together with the Dollar equivalent of the amount payable to CFFT,
calculated by translating foreign currency sales into U.S. dollars at the
exchange rates for the [********************* ******************] as reported in
The Wall Street Journal, Eastern US Edition. If any licensee or sublicensee
makes any sales invoiced in a currency other than its domestic currency, the Net
Sales shall be converted to its domestic currency in accordance with the
licensee's or sublicensee's normal accounting principles. Predix shall keep
accurate records in sufficient detail to enable the amounts due hereunder to be
determined and to be verified by CFFT.

            (B) Amounts shown to have accrued by each sales report provided for
under Section 4.4(a), above, shall be due and payable on the date that sales
report is due.

            (C) All payments shall be made in Dollars.

            (D) Upon the written request of CFFT, at CFFT's expense and not more
than [***] time in the [*************] period following the receipt by CFFT of
the report required under Section 4.4(a), Predix shall permit an independent
accountant of national prominence selected by CFFT, to have access during normal
business hours to those records of Predix as may be reasonably necessary to
verify the accuracy of the report furnished by Predix pursuant to this Section
4.4. The report prepared by such independent accountant, a copy of which shall
be sent or otherwise provided to Predix by such independent accountant at the
same time it is sent or otherwise provided to CFFT, shall contain the
conclusions of such independent accountant regarding the existence and amount of
any variance between the amount paid and the amount that was actually due
hereunder. If such independent accountant's report shows any underpayment,
Predix shall remit to CFFT within thirty (30) days after Predix's receipt of
such report (i) the amount of such underpayment[********************************
*************************************************] and (ii) if such underpayment

                                      -18-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

exceeds [*****] percent ([*****]%) of the total amount owed, the [*****] and
[*****] and [**********]. Any overpayment shall be refunded by CFFT to Predix
within thirty (30) days following CFFT's receipt of the auditor's report. CFFT
agrees that all information subject to review under this Section 4.4 is
confidential and that CFFT shall retain and cause its accountant to retain all
such information in confidence.

            (E) In case of any delay in payment by Predix to CFFT not occasioned
by Force Majeure, [**********************************************************
**********************************************].

                            ARTICLE V - CONFIDENTIALITY

      5.1   UNDERTAKING.

            During the term of this Agreement, each party shall keep
confidential, and other than as provided herein, shall not use or disclose,
directly or indirectly, any trade secrets, confidential or proprietary
information, or any other knowledge, information, documents or materials, owned,
developed or possessed by the other party, whether in tangible or intangible
form, the confidentiality of which such other party takes reasonable measures to
protect ("Confidential Information"). Neither CFFT nor Predix will use the other
party's Confidential Information except as expressly permitted in this
Agreement:

                      (A) Each party shall take any and all lawful measures to
            prevent the unauthorized use and disclosure of the other party's
            Confidential Information, and to prevent unauthorized persons or
            entities from obtaining or using that Information.

                                      -19-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

                      (B) Each party will refrain from directly or indirectly
            taking any action which would constitute or facilitate the
            unauthorized use or disclosure of the other party's Confidential
            Information. Each party may disclose that Information to its
            officers, employees and agents, to authorized licensees and
            sublicensees, and to subcontractors in connection with the
            development or manufacture of P2(Y)2 Products, to the extent
            necessary to enable such parties to perform their obligations
            hereunder or under the applicable license, sublicense or
            subcontract, as the case may be; provided, that such officers,
            employees, agents, licensees, sublicensees and subcontractors have
            entered into appropriate confidentiality agreements for secrecy and
            non-use of such Confidential Information which by their terms shall
            be enforceable by injunctive relief at the instance of the
            disclosing party.

                      (C) Each party shall be liable for any unauthorized use
            and disclosure of the other party's Confidential Information by its
            officers, employees and agents and any such sublicensees and
            subcontractors.

      5.2   EXCEPTIONS.

            Notwithstanding the foregoing, the provisions of Section 5.1 hereof
shall not apply to Confidential Information which the receiving party can
conclusively establish:

                      (A) has entered the public domain without such party's
            breach of any obligation owed to the disclosing party;

                      (B) is permitted to be disclosed by the prior written
            consent of the disclosing party;

                                      -20-

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

                      (C) has become known to the receiving party from a source
            other than the disclosing party, other than by breach of an
            obligation of confidentiality owed to the disclosing party;

                      (D) is independently developed by the receiving party
            without breach of this Agreement; or

                      (E) is required to be disclosed by the receiving party to
            comply with applicable laws or regulations, to defend or prosecute
            litigation or to comply with governmental regulations, provided that
            the receiving party provides prior written notice of such disclosure
            to the disclosing party and takes reasonable and lawful actions to
            avoid or minimize the degree of such disclosure.

            Either Predix or CFFT may at any time, by notice in writing to the
other party, waive any or all of the confidentiality obligations to which the
other party is subject hereunder, for any length or time or with respect to any
specific information.

      5.3   PUBLICITY.

            The Parties will agree upon the timing and content of any initial
press release or other public communications relating to this Agreement and the
transactions contemplated herein.

                      (A) Except to the extent already disclosed in that initial
            press release or other public communication, no public announcement
            concerning the terms of this Agreement or concerning the
            transactions described herein shall be made, either directly or
            indirectly, by Predix or CFFT, except (i) as may be legally required
            by applicable laws, regulations, or judicial order, (ii) as may be
            required

                                      -21-

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SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

            by the rules of any stock exchange on which such party's securities
            are listed, or (iii) if limited to the fact that the Research
            Programs exist, that research is in progress, and its anticipated
            completion without first obtaining the approval of the other party
            and agreement upon the nature, text, and timing of such
            announcement, which approval and agreement shall not be unreasonably
            withheld.

                      (B) The party desiring to make any such public
            announcement shall provide the other party with a written copy of
            the proposed announcement in sufficient time prior to public release
            to allow such other party to comment upon such announcement, prior
            to public release.

                              ARTICLE VI- PUBLICATION

      Each of Predix and CFFT reserves the right to publish or publicly present
the data generated during the performance of the Research Programs (the
"Results"), subject to the following terms and conditions. The party proposing
to publish or publicly present the Results (the "publishing party") will submit
a draft of any proposed manuscript or speech to the other party (the
"non-publishing party") for comments at least sixty (60) days prior to
submission for publication or oral presentation. The non-publishing party shall
notify the publishing party in writing within thirty (30) days of receipt of
such draft whether such draft contains (i) information of the non-publishing
party which it considers to be confidential under the provisions of Article V
hereof, (ii) information that if published would have an adverse effect on a
patent application which the non-publishing party intends to file, or (iii)
information which the non-publishing party reasonably believes would be likely
to have a material adverse impact on the development

                                      -22-

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SECRETARY OF THE COMMISSION PURSUANT TO THE COMPANY'S APPLICATION REQUESTING
CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE EXCHANGE ACT; [*] DENOTES
OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

or commercialization of a P2(Y)2 Product or a CFTR Corrector-based product. In
any such notification, the non-publishing party shall indicate with specificity
its suggestions regarding the manner and degree to which the publishing party
may disclose such information. In the case of item (ii) above, the
non-publishing party may request a delay and the publishing party shall delay
such publication, for a period not exceeding an additional ninety (90) days, to
permit the timely preparation and filing of a patent application or an
application for a certificate of invention on the information involved. In the
case of item (i) above, no party may publish Confidential Information of the
other party without its consent in violation of Article V of this Agreement. In
the case of item (iii) above, if the publishing party shall disagree with the
non-publishing party's assessment of the impact of the publication, then the
issue shall be referred to the Chief Executive Officer of CFFT and the Chief
Executive Officer of Predix who shall attempt in good faith to reach a fair and
equitable resolution of this disagreement. If the disagreement is not resolved
in this manner within two (2) weeks of referral to the respective Chief
Executive Officers, then the decision of the publishing party as to publication
of any information generated by it, subject always to the confidentiality
provisions of Article V hereof, shall be final, provided that such decision
shall be exercised with reasonable regard for the interests of the
non-publishing party. The Parties agree that authorship of any publication will
be determined based on the customary standards then being applied in the
relevant scientific journal. The Parties will use their reasonable best efforts
to gain the right to review proposed publications relating to the subject matter
of the Research Programs by consultants or contractors.

      Notwithstanding the foregoing and subject to the last sentence of this
paragraph, Predix intends to advance the body of general scientific knowledge of
CF and its potential therapies, and to contribute to the identification of
chemical tools as optimal scientific benchmarks, all in a manner consistent with
its general scientific and commercial objectives in entering into the

                                      -23-

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OMISSIONS.
<PAGE>
                                                                  EXECUTION COPY

collaboration with CFFT to which this Agreement relates. In furtherance of that
objective, Predix will publish the 3D structure of the CFTR to be developed by
Predix by the first (1st) anniversary after the achievement of the second
milestone set forth in Section 3.1.1, or the termination of this Agreement,
whichever occurs first. CFFT's funding of the research will be acknowledged by
the publication; and by the third (3rd) anniversary after the achievement of
such second milestone, Predix shall cause the 3D structure of the CFTR developed
by Predix to become part of the public domain. In addition, Predix shall grant
to up to [******] requesting qualified, not-for-profit research institutions,
reasonably acceptable to Predix, a nonexclusive license to use the 3D structure
of the CFTR solely for research purposes. Such non-exclusive licenses shall
include restrictions on the disclosure of Predix' confidential information,
including without limitation, the structure of the CFTR (if not previously
published by Predix); provided that the licensee shall be permitted to publish
the data, including mutagenesis data, it may generate in the exercise of the
license. Notwithstanding the foregoing publication and licensing obligations in
this paragraph, if at any time such obligations are scheduled to occur, CFFT has
a license pursuant to Section 9.6, CFFT (and not Predix) shall determine the
timing and scope of such publication and the recipients of such sublicenses with
respect to the rights covered by the license granted to CFFT.

                           ARTICLE VII - INDEMNIFICATION

      7.1   INDEMNIFICATION BY PREDIX.

            Predix will indemnify and hold CFFT and its Affiliates, and their
employees, officers and directors harmless against any loss, damage, action,
suit, claim, demand, liability, expense, bodily injury, death or property damage
(a "Loss"), that may be brought, instituted or arise against or be incurred by
such persons to the extent such Loss is based on or arises out of:

                                      -24-

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OMISSIONS.
<PAGE>
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                      (A) the conduct of the Research Programs by Predix or its
            Affiliates or their representatives, agents, authorized licensees,
            sublicensees or subcontractors under this Agreement, or any actual
            or alleged violation of law resulting therefrom; or

                      (B)     the breach by Predix of any of its covenants,
            representations or warranties set forth in this Agreement; and

                      (C) provided however, that the foregoing indemnification
            shall not apply to any Loss to the extent such Loss is caused by the
            negligent or willful misconduct of CFFT or its Affiliates or a
            breach of this Agreement by CFFT or its Affiliates.

      7.2   CLAIMS PROCEDURES.

            In order to be indemnified by Predix, pursuant to Section 7.1, CFFT
shall give notice to Predix promptly after CFFT has actual knowledge of any
threatened or asserted claim as to which indemnity may be sought, and shall
permit Predix to assume the defense of any such claim or any litigation
resulting therefrom; provided:

                      (A) that counsel for Predix, who shall conduct the defense
            of such claim or any litigation resulting therefrom, shall be
            approved by CFFT (the approval of which shall not unreasonably be
            withheld) and CFFT may participate in such defense at its expense,
            unless (i) the employment of counsel by CFFT has been authorized by
            Predix; or (ii) there is a conflict of interest that would prevent
            Predix and CFFT from being represented by a single law firm in the
            defense of such action, in each of which instance Predix shall pay
            the reasonable fees and

                                      -25-

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OMISSIONS.
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            expenses of one law firm serving as counsel for CFFT, which law firm
            shall be subject to approval, not to be unreasonably withheld, by
            Predix; and

                      (B) the failure of CFFT or its Affiliates to give notice
            as provided herein shall relieve Predix of its obligations under
            this Agreement to the extent that the failure to give notice
            prejudices a defense that otherwise may have been available or
            increases the amount of the Loss or otherwise results in harm to
            Predix.

                      (C) Predix shall not, in the defense of any such claim or
            litigation, except with the approval of CFFT which approval shall
            not be unreasonably withheld, consent to entry of any judgment or
            enter into any settlement which (i) would result in injunctive or
            other relief being imposed against CFFT and its Affiliates; or (ii)
            does not include, as an unconditional term thereof, the giving by
            the claimant or plaintiff to CFFT and its Affiliates of a release
            from all liability in respect to such claim or litigation.

                      (D) CFFT and its Affiliates shall cooperate in the defense
            of such claim as reasonably requested by Predix, including without
            limitation, by furnishing such information regarding itself or the
            claim in question as Predix may reasonably request in writing.

                        ARTICLE VIII - PATENTABLE INVENTIONS

      8.1   OWNERSHIP.

                                      -26-

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            All inventions made and all data and know-how generated exclusively
by either party or its Affiliates (directly or through others acting on its
behalf) prior to and during the term of this Agreement relating to the Research
Program shall be owned by the party making the invention or generating the data
or know-how claimed, or if such invention is made jointly (a "Joint Invention"),
shall be owned jointly, all as determined in accordance with United States laws
of inventorship; provided that, CFFT hereby grants to Predix an exclusive (even
as to CFFT) worldwide license to its rights in any Joint Invention and any
invention made by a CFFT employee resulting from the Research Program for the
purposes specified in this Agreement.

      8.2   PREPARATION.

            Predix shall take responsibility for the preparation, filing,
prosecution and maintenance of all Predix Patents, and any patents and patent
applications claiming Joint Inventions, and CFFT shall take responsibility for
the preparation, filing, prosecution and maintenance of all CFFT Patents. Predix
shall provide the JRC with periodic reports listing, by name, Patents filed by
Predix in the United States and other jurisdictions, along with a general
summary of the claims made and the jurisdictions of filing.

      8.3   COSTS.

            Predix shall be responsible for all costs incurred in the
preparation, prosecution and maintenance of Predix Patents and Joint Patents.

                         ARTICLE IX - TERM AND TERMINATION

      9.1   TERM.

                                      -27-

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            This Agreement will expire upon the Research Termination Date as
defined herein, unless earlier terminated by either party hereto in accordance
with this Agreement, or unless extended by mutual agreement of the Parties.

      9.2   TERMINATION OF THE RESEARCH PROGRAMS WITHOUT CAUSE.

            CFFT may terminate either or both of the Research Programs without
cause upon one hundred and twenty (120) day's notice.

      9.3   TERMINATION OF THE RESEARCH PROGRAM BY CFFT FOR CAUSE.

            Without limitation of its ability to seek damages for breach of this
Agreement, CFFT may at its sole discretion unilaterally terminate the Research
Program and this Agreement upon the occurrence of any of the following events:

                      (A) Predix shall materially breach any of its material
            obligations under this Agreement, and such material breach shall not
            have been remedied or material steps initiated to remedy the same to
            CFFT's reasonable satisfaction, within thirty (30) days after CFFT
            sends written notice of breach to Predix; or

                      (B)     Predix shall cease to function as a going
            concern by suspending or discontinuing its business for any
            reason except for interruptions caused by events of Force Majeure.

            In the event of any valid termination under this Section 9.3,
CFFT shall not be required to make any payments which have not accrued prior to
receipt by Predix of the notice of breach referenced under Section 9.3(a) or
receipt by Predix of the notice of termination pursuant to this Section 9.3(b),
as the case may be.

      9.4   TERMINATION OF THE RESEARCH PROGRAM BY PREDIX FOR CAUSE.

                                      -28-

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            Without limitation of its ability to seek damages for breach of this
Agreement, Predix may at its sole discretion terminate this Agreement upon
written notice to CFFT upon the occurrence of the following event:

            CFFT shall materially breach any of its material obligations under
this Agreement and such material breach shall not have been remedied or material
steps initiated to remedy the same to Predix's reasonable satisfaction, within
thirty (30) days after Predix sends written notice of breach to CFFT.

      9.5   GENERAL EFFECT OF TERMINATION.

                      (A) The termination of this Agreement for any reason, or
            expiration of this Agreement, will not affect obligations which have
            accrued as of the date of termination or expiration, and obligations
            and rights under the following Sections, each of which shall survive
            any expiration or termination: Sections 2.5.2, 3.1.1 (solely for
            payment for milestones completed within [*****************] of such
            expiration), 3.3, 9.5 and 9.6 and Articles IV, V, VI, VII, VIII, X
            and XI.

                      (B) Subject to Section 4.1 hereof, and subject to the
            license that may be granted under Section 9.6(a), upon termination
            or expiration of this Agreement, Predix will retain ownership or
            exclusive rights to the Predix CF Technology and the inventions
            licensed to it by CFFT pursuant to Section 8.1 of this Agreement
            (including intellectual property rights).

      9.6   CONSEQUENCES OF AN INTERRUPTION.

            Upon the effective date of any Interruption with respect to Research
Program I and/or Research Program II, the following license in favor of CFFT
shall become effective:

                                      -29-

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                      (A) CFFT shall have an irrevocable, with respect to the
            Research Program to which an Interruption has occurred, exclusive
            (even as to Predix) worldwide license, with the right to sublicense,
            under the Predix CF Technology and Joint Inventions to develop,
            manufacture, have manufactured, use, sell, offer to sell and import
            CFTR Corrector-based products or P2Y(2) Products, as applicable, in
            the Field.

                      (B) In lieu of any research funding obligation owed by
            CFFT to Predix pursuant to this Agreement, except obligations that
            accrued prior to the date of termination and obligations that
            survive termination of this Agreement, CFFT shall pay Predix a
            [*****] percent ([*****]%) royalty on the annual Net Sales of any
            CFTR Corrector-based products discovered or developed using the
            Predix CF Technology or P2Y(2) Products, as applicable, thereafter
            sold by CFFT or any Affiliate, licensee or sublicensee of CFFT, to
            which the foregoing licenses relate.

                      (C) In connection with either or both of the foregoing
            licenses, Predix shall deliver to CFFT, expeditiously upon the
            occurrence of an Interruption, all materials and data generated in
            the performance of Research Program I or Research Program II as
            applicable and the Predix CF Technology, including without
            limitation, the 3D coordinates of the CFTR, that are relevant to
            Research Program I or Research Program II, as applicable.

                     ARTICLE X - REPRESENTATIONS AND WARRANTIES

      10.1  REPRESENTATIONS AND WARRANTIES OF PREDIX.

                                      -30-

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            Predix represents and warrants to CFFT that this Agreement has been
duly executed and delivered by Predix and constitutes the valid and binding
obligation of Predix, enforceable against Predix in accordance with its terms
except as enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, bankruptcy, reorganization, moratorium and other laws relating to or
affecting creditors' rights generally and by general equitable principles. The
execution, delivery and performance of this Agreement have been duly authorized
by all necessary action on the part of Predix, its officers and directors.

      10.2  REPRESENTATIONS AND WARRANTIES OF CFFT.

            CFFT represents and warrants to Predix that this Agreement has been
duly executed and delivered by CFFT and constitutes the valid and binding
obligation of CFFT, enforceable against CFFT in accordance with its terms except
as enforceability may be limited by bankruptcy, fraudulent conveyance,
insolvency, bankruptcy, reorganization, moratorium and other laws relating to or
affecting creditors' rights generally and by general equitable principles. The
execution, delivery and performance of this Agreement have been duly authorized
by all necessary action on the part of CFFT, its officers and directors.

                       ARTICLE XI - MISCELLANEOUS PROVISIONS

      11.1  GOVERNING LAW, AND JURISDICTION.

            This Agreement shall be governed and construed in accordance with
the internal laws of the State of Maryland.

      11.2  WAIVER.

                                      -31-

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            No provision of this Agreement may be waived except in writing by
both Parties hereto. No failure or delay by either party hereto in exercising
any right or remedy hereunder or under applicable law will operate as a waiver
thereof, or a waiver of any right or remedy on any subsequent occasion.

      11.3  FORCE MAJEURE.

            Neither party will be in breach hereof by reason of its delay in the
performance of or failure to perform any of its obligations hereunder, if that
delay or failure is caused by strikes, acts of God or the public enemy, riots,
incendiaries, interference by civil or military authorities, compliance with
governmental priorities for materials, or any fault beyond its reasonable
control or without its fault or negligence.

      11.4  SEVERABILITY.

            Should one or more provisions of this Agreement be or become
invalid, then the Parties hereto shall attempt to agree upon valid provisions in
substitution for the invalid provisions, which in their economic effect come so
close to the invalid provisions that it can be reasonably assumed that the
Parties would have accepted this Agreement with those new provisions. If the
Parties are unable to agree on such valid provisions, the invalidity of such one
or more provisions of this Agreement shall nevertheless not affect the validity
of the Agreement as a whole, unless the invalid provisions are of such essential
importance for this Agreement that it may be reasonably presumed that the
Parties would not have entered into this Agreement without the invalid
provisions.

      11.5  GOVERNMENT ACTS.

            In the event that any act, regulation, directive, or law of a
country or its government, including its departments, agencies or courts, should
make impossible or prohibit,

                                      -32-

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restrain, modify or limit any material act or obligation of CFFT or Predix under
this Agreement, the party, if any, not so affected, shall have the right, at its
option, to suspend or terminate this Agreement as to such country, if good faith
negotiations between the Parties to make such modifications therein as may be
necessary to fairly address the impact thereof, are not successful after a
reasonable period of time in producing mutually acceptable modifications to this
Agreement.

      11.6  ASSIGNMENT.

            This Agreement may not be assigned or otherwise transferred by
either party without the prior written consent of the other party; provided,
however, that either party may assign this Agreement, without the consent of the
other party, (i) to any of its Affiliates, if the assigning party guarantees the
full performance of its Affiliates' obligations hereunder, or (ii) in connection
with the transfer or sale of all or substantially all of its assets or business
to which this Agreement relates or in the event of its merger or consolidation
with another company. Any purported assignment in contravention of this Section
11.6 shall, at the option of the non-assigning party, be null and void and of no
effect. No assignment shall release either party from responsibility for the
performance of any accrued obligation of such party hereunder. This Agreement
shall be binding upon and enforceable against the successor to or any permitted
assignees from either of the Parties hereto.

      11.7  COUNTERPARTS.

            This Agreement may be executed in duplicate, each of which shall be
deemed to be original and both of which shall constitute one and the same
Agreement.

                                      -33-

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      11.8  NO AGENCY.

            Nothing herein contained shall be deemed to create an agency, joint
venture, amalgamation, partnership or similar relationship between CFFT and
Predix. Notwithstanding any of the provisions of this Agreement, neither party
to this Agreement shall at any time enter into, incur, or hold itself out to
third parties as having authority to enter into or incur, on behalf of the other
party, any commitment, expense, or liability whatsoever, and all contracts,
expenses and liabilities in connection with or relating to the obligations of
each party under this Agreement shall be made, paid, and undertaken exclusively
by such party on its own behalf and not as an agent or representative of the
other.

      11.9  NOTICE.

            All communications between the Parties with respect to any of the
provisions of this Agreement will be sent to the addresses set out below, or to
such other addresses as may be designated by one party to the other by notice
pursuant hereto, by prepaid, certified air mail (which shall be deemed received
by the other party on the seventh business day following deposit in the mails),
or by facsimile transmission, or other electronic means of communication (which
shall be deemed received when transmitted), with confirmation by first class
letter, postage pre-paid, given by the close of business on or before the next
following business day:

            if to CFFT, at:
               Cystic Fibrosis Foundation Therapeutics Incorporated
               6931 Arlington Road
               Bethesda, Maryland  20814
               Attention:  Dr. Robert J. Beall, President

                                      -34-

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            with a copy to: Kenneth I. Schaner, Esq.
               Swidler Berlin LLP
               3000 K Street, N.W., Suite 300
               Washington, D.C. 20007

            if to Predix, at:

               Predix Pharmaceuticals Holdings , Inc.
               10K Gill Street
               Woburn, MA  01810
               Attention:  President

                 with a copy to: Christopher J. Denn, Esq.
                 Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC
                 One Financial Center
                 Boston, MA 02111

      11.10 HEADINGS.

            The paragraph headings are for convenience only and will not be
deemed to affect in any way the language of the provisions to which they refer.

      11.11 AUTHORITY.

            The undersigned represent that they are authorized to sign this
Agreement on behalf of the Parties hereto. The Parties each represent that no
provision of this Agreement will

                                      -35-

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violate any other agreement that such party may have with any other person or
company. Each party has relied on that representation in entering into this
Agreement.

      11.12 ENTIRE AGREEMENT.

            This Agreement contains the entire understanding of the Parties
relating to the matters referred to herein, and may only be amended by a written
document, duly executed on behalf of the respective Parties.

      11.13 NOTICE OF PHARMACEUTICAL SIDE-EFFECTS.

            During the term of this Agreement, the Parties shall keep each other
promptly and fully informed and will promptly notify appropriate authorities in
accordance with applicable law, after receipt of information with respect to any
serious adverse event (as defined by the ICH Harmonized Tripartite Guideline on
Clinical Safety Data Management), directly or indirectly attributable to the use
or application of any P2(Y)2 Product, and any other product for which royalties
are payable under this Agreement.

                                      -36-

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Agreed and acknowledged as of the Effective Date.

                          PREDIX PHARMACEUTICALS HOLDINGS, INC.

                          By: /s/ MICHAEL G. KAUFFMAN, MD
                              -------------------------------
                            Title: President and CEO
                                   --------------------------

                          CYSTIC FIBROSIS FOUNDATION THERAPEUTICS INCORPORATED

                          By: /s/ ROBERT J. BEALL
                              -------------------------------
                            Title: President and CEO
                                   --------------------------

                                      -37-

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                                  CONFIDENTIAL

                                   EXHIBIT 2.4

                             CFTR PROGRAM WORK PLAN

  MODELING THE 3D STRUCTURE OF CFTR AND EXPLORING A ROUTE FOR THE DISCOVERY OF
                       A CYSTIC FIBROSIS "CORRECTOR" DRUG

  1. The objective of this study is to identify potential sites for therapeutic
     intervention on the 3D model of the Cystic Fibrosis Transmembrane
     Conductance Regulator protein (CFTR).

  2. To achieve this objective Predix will use its 3D Drug Discovery technology
     to model the 3D structure of CFTR and to suggest a structure-based route
     for future discovery of a CFTR "corrector" drug.

  3. The overall work plan consists of the following steps:

   1.1[*****]

      a. Modeling the 3D structure of the [*****].

      b. Structure-based analysis and experimental validation of the
         [*****].

      c. Attempt to identify a site for therapeutic intervention in
         the [*****].

   2.1[*****]

      a. Modeling the 3D structure of the [*****].

      b. Structure-based analysis and experimental validation of the
         [*****].

      c. Attempt to identify a site for therapeutic intervention in
         the [*****].

   3.1 The [*****]

      a. Modeling the 3D structure of the [*****].

      b. Structure-based analysis and experimental validation of the
         [*****].

      c. Attempt to identify a site for therapeutic intervention in
         the [*****].

  4. Modeling the 3D structure of [*****]

                                      -i-

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            1.1   Predix will use its PREDICT(TM) technology and its
      modeling expertise to generate a 3D model of the [*****].

            2.1   It is understood that the [*****]:

      4.2.1 Modeling the [*****].

            4.2.2 Modeling the  [*****].

            4.2.3 Modeling the [*****].

            4.2.4 Packing the  [*****].

            4.2.5 The resulting 3D model of the [*****].

   3.1Modeling will be guided by [*****], including (but not limited to):

            4.3.1 The [*****].

            4.3.2 [*****]

            4.3.3 [*****].

  5. The [*****] will be subject to structure-based analysis and
     experimental validation.

   1.1 The 3D model of the [*****].

   2.1 This process will involve the following steps:

            5.2.1 Structural analysis of the [*****].

            5.2.2 [*****].

            5.2.3 [*****].

            5.2.4 Analysis of the [*****].

            5.2.5 Repeating steps [*****].

      3.1 The validated structure will be re-examined in an attempt to identify
      a site or a route for therapeutic intervention in the form of a CFTR
      "corrector" drug.

  6. Modeling the 3D structure of [*****]

   1.1 Predix will use its modeling expertise to generate a 3D model of
      the [*****].

   2.1 Modeling the [*****]:

      6.2.1 [*****].

      6.2.2 Modeling the [*****].

      6.2.3 [*****]

  7. The [*****].

                                      -ii-

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  8. Modeling the 3D structure of the [*****]

   1.1 Following the generation of a 3D model for the [*****]:

            8.1.1 Combining the [*****].

            8.1.2 Modeling [*****]

            8.1.3 Packing of [*****].

            8.1.4 [*****].

   2.1 The resulting 3D model will be [*****].

   3.1 Modeling will be guided by the [*****].

   4.1 Additional experiments that can assist in the modeling process,
       such as [*****].

  9. Structure-based analysis and experimental validation of the [*****]

      The 3D model of the [*****].

  10. Experiments for structural data and model validation

   1.1 At various points throughout the modeling process [*****].

   2.1 Such studies may include the following:

      10.2.1      [*****].

      10.2.2      [*****].

      10.2.3      [*****].

   3.1CFFT will [*****].

  11. Screening and optimization of CFTR "corrector" compounds

   1.1 As soon as a [*****].

   2.1 Hence, screening for a [*****].

   3.1 This screening effort is [*****].

  12. The timeline for this project is as follows:

  -   Modeling the [*****]

  -   Initiation of [*****].

  -   Analysis and validation of the [*****]

  -   Modeling the [*****]

                                     -iii-

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  -   Analysis and validation of the [*****]

  -   Some activities [*****]. Total Expected timeline is 36 months.

  13. Milestones

   1.1 -  1st milestone - 3D model of the [*****].

   2.1 -  2nd milestone - 3D model of the [*****].

   3.1 -  3rd milestone - [*****].

  14.Predix and the CFFT will maintain interaction throughout the duration of
     the project. A Joint Research Committee (JRC) will meet at least on a
     quarterly basis to follow the progress of the project. The JRC will also
     establish a Joint Subcommittee for Validation Assays. This subcommittee
     will meet on an ad hoc basis and its task will be to identify the most
     suitable assays to support the various modeling tasks, as well as the
     research labs that can perform them.

  15. The Cystic Fibrosis Foundation will [*****]:

   1.1  [*****].

   2.1  [*****].

   3.1  [*****].

   4.1  [*****].

In addition, CFFT will introduce Predix to expert labs and key scientists, and
in general will use its internal expertise and network of alliances to assist
the program.

                                      -iv-

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<PAGE>
                               FIRST AMENDMENT TO
          RESEARCH, DEVELOPMENT AND COMMERCIALIZATION AGREEMENT BETWEEN
      PREDIX PHARMACEUTICALS HOLDINGS, INC. AND CYSTIC FIBROSIS FOUNDATION
                            THERAPEUTICS INCORPORATED

      This First Amendment (this "Amendment") to Research, Development and
Commercialization Agreement Between Predix Pharmaceuticals Holdings, Inc. and
Cystic Fibrosis Foundation Therapeutics Incorporated is made as of this 18th day
of May, 2006 (the "Effective Date"), by and between Predix Pharmaceuticals
Holdings, Inc., a Delaware corporation with its principal place of business
located at 4 Maguire Road, Lexington, MA 02421 ("Predix") and Cystic Fibrosis
Foundation Therapeutics Incorporated, a Delaware corporation with its principal
place of business located at 6931 Arlington Road, Bethesda, MD 20814 ("CFFT").
Reference is made hereby to that certain Research, Development and
Commercialization Agreement entered into by and between Predix and CFFT and
dated March 7, 2005 (the "Agreement"). Capitalized terms used but not defined
herein shall have the definition provided in the Agreement.

      WHEREAS, the Parties entered into the Agreement to research, develop and
commercialize products to treat cystic fibrosis; and

      WHEREAS, the Parties now desire to amend the Agreement to better align the
incentives provided to Predix under the Agreement with the goals desired by
CFFT.

      NOW, THEREFORE, in consideration of the foregoing and other consideration,
the receipt and sufficiency of which is hereby acknowledged, the Parties hereby
agree as follows.

      1. Amendment of Agreement. The Agreement is hereby amended by deleting the
term [********] as it appears in section (c)(1) in the table in Section 3.1.1
and replacing it with the following term: [********].

      2. Confirmation of Terms. The Agreement shall otherwise remain
unamended hereby and shall continue in full force and effect in accordance
with its terms.

      Agreed and acknowledged as of the Effective Date.

Predix Pharmaceuticals Holdings, Inc.     Cystic Fibrosis Foundation
                                          Therapeutics Incorporated

By: /s/ Chen Schor                        By: /s/ Robert J. Beall
    ---------------------------------         ----------------------------------

Title: Chief Business Officer             Title: President and CEO

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<PAGE>

                               Second Amendment to
          Research Development and Commercialization Agreement Between
      Predix Pharmaceuticals Holdings, Inc. ("Predix") and Cystic Fibrosis
                  Foundation Therapeutics Incorporated ("CFFT")

      This Second Amendment (this "Second Amendment") to the Agreement of March
7, 2005 (as amended, the "Agreement") is made as of this second day of August
2006 (the "Effective Date"), by and between Predix and CFFT. Capitalized terms
used but not defined herein shall have the definition provided in the Agreement.

      WHEREAS, the Parties entered into the Agreement to research, develop and
commercialize products to treat cystic fibrosis; and

      WHEREAS, the Parties now desire to amend the Agreement and add additional
research by Predix for Research Program I and certain additional funding by
CFFT.

      NOW, THEREFORE, in consideration of the foregoing, the receipt and
sufficiency of which is hereby acknowledged, the Parties agree as follows:

      1. Confirmation of Terms. Except as provided in this Second Amendment, the
Agreement (as amended by the First Amendment) shall remain in full force and
effect.

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OMISSIONS.

                                        1
<PAGE>

      2. Definitions.

            a) Existing Definitions -- The following existing terms shall be
amended as follows:

                  (i) For avoidance of doubt, the term "Hit" as utilized in the
Agreement shall remain unamended by this Second Amendment; and

                  (ii) The term "Budget" shall mean the budget attached to this
Second Amendment as Exhibit A.

            b) New Definitions. The following new definitions shall be added:

                  (i) "Additional Milestone" shall have the meaning ascribed to
it in Section 7 of this Second Amendment.

                  (ii) "Deferred Potentiator Negotiation Date" shall have the
meaning ascribed to it in Section 5 of this Second Amendment.

                  (iii) "Hit Corrector Compound" shall mean a compound that has
an [********] in a Corrector biological assay, as specified in the Screening
Research Plan for Research Program I.

                  (iv) "Hit Potentiator Compound" shall mean a compound that has
an [********] in a Potentiator biological assay, as specified in the Screening
Research Plan for Research Program I.

                  (v) "Joint Steering Committee" or "JSC" shall have the meaning
ascribed to it in Section 6 of this Second Amendment.

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                                        2

<PAGE>

                  (vi) "Potentiator" shall mean a Compound which modulates the
biological effect of CFTR by enhancing the gating activity of [DELTA]F508 CFTR
present in the apical cell membrane, as specified in the Screening Research Plan
for Research Program I.

                  (vii) "Screening Sub-Project" shall mean a full in silico
screening project focusing on one of the potential binding sites, as specified
in the Screening Research Plan for Research Program I.

                  (viii) "Virtual Hits" shall mean a set of compounds identified
by Predix through in silico screening methodologies which have a high likelihood
of binding to the protein at a specific binding site and exerting the desirable
functional response, as specified in the Screening Research Plan for Research
Program I, attached to this Second Amendment as Exhibit B.

      3. Acknowledgements.

            a) Research Termination Date. The parties acknowledge and agree that
the Research Termination Date for Research Program I is hereby extended until
the third anniversary of the Effective Date of this Second Amendment.

            b) Screening Research Plan. The parties acknowledge and agree that
the Screening Research Plan for Research Program I shall be the screening
research plan attached hereto as Exhibit B and, except as specifically set forth
herein, that such plan shall be part of the Research Plan for all purposes under
the Agreement and the work described therein shall be part of the Research
Program for all purposes under the Agreement.

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OMISSIONS.

                                        3

<PAGE>

      4. Additional CFFT Funding.

            a) FTE Funding. In addition to the FTE funding specified in the
Agreement, CFFT will provide funding for [********] additional internal FTE, at
[********] per FTE, for each of the remaining three (3) years of Research
Program I.

            b) Other Additional Funding. In addition to the current funding
under the Agreement, CFFT will provide additional funding at the request of
Predix (and accompanied by customary documentation), to reimburse Predix for, or
to fund, amounts incurred in connection with the following activities:

                  (i) Up to an aggregate of [********] to acquire compounds
predicted to bind to the CFTR protein, not to exceed [********] for each
Screening Sub-Project; provided that in case Predix terminates its CFTR program,
any unused compounds remaining shall be promptly transferred to CFFT (or a third
party) in accordance with CFFT's instructions;

                  (ii) Up to [********] for purchasing Virtual Hit compounds and
compounds to assist in determining or confirming structure-activity
relationships; and

                  (iii) All costs for biological assays will be paid directly,
or as pass through costs, by the CFFT.

      5. Good Faith Negotiation. The Parties acknowledge (i) that the goals of
Research Program I have been expanded by this Second Amendment and, accordingly,
that the good faith negotiations contemplated by Section 4.1.1 will commence
only after Predix notifies CFFT that it has identified a Hit Corrector Compound,
and (ii) that although the principal objective of Research Program I is the
identification of a Hit Corrector Compound, the assays to be conducted pursuant
to the Agreement could yield a Hit Potentiator Compound; and, in such event: (A)
Predix shall continue to focus on the discovery of a Hit Corrector Compound
during

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OMISSIONS.

                                        4

<PAGE>

the remainder of the Research Program; and (B) Section 4.1.1 of the Agreement
and the corresponding good faith negotiations, and the Interruption resulting
from the failure to reach agreement after such negotiations, shall also be
applicable to any such Hit Potentiator Compound; provided that, in lieu of
pursuing negotiations immediately following the identification of a Hit
Potentiator Compound, CFFT may elect in writing to defer such negotiations with
respect to a Hit Potentiator Compound to a subsequent date designated by CFFT
(the "Deferred Potentiator Negotiation Date").

      6. JRC and Joint Steering Committee. Existing Section 2.6 of the Agreement
is redesignated as Section 2.7, Section 2.5 of the Agreement is amended and a
new Section 2.6 is inserted as follows:

      "2.5 JOINT RESEARCH COMMITTEE.

            2.5.1 Composition and Purposes. Predix and CFFT shall establish a
Joint Research Committee ("JRC") consisting of at least six (6) representatives
(as may be increased or decreased by the JRC), half of whom shall be designated
from time to time by each party. Each party shall choose a Program Coordinator
who may be changed from time to time by designation of each party. The Program
Coordinator for Predix shall be Oren Becker, Ph.D. The Program Coordinator for
CFFT shall be Diana Wetmore. If the JRC chooses to designate a Committee chair,
the chair will be Predix's Program Coordinator. The JRC shall meet formally no
less frequently than once in each three (3) month during the Research Program,
and at such time and location, as may be established by the JRC. However, the
JRC will make its schedule

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OMISSIONS.

                                        5

<PAGE>

flexible in order to foster the successful completion of the Research Programs.
The JRC shall meet for the following purposes:

                  (i) to review and discuss the Research Plan and evaluate and
make recommendations to the JSC with respect to any proposed revisions;

                  (ii) to make recommendations to the JSC on whether milestones
have been achieved;

                  (iii) to provide guidance to the research team if such
guidance is needed on next steps to implement the Research Programs; and

                  (iv) to recommend the initiation of Screening-Sub Projects.

      At least five (5) working days prior to each JRC meeting, Predix will send
a written report to CFFT detailing the progress made in the respective Research
Programs during the preceding quarter. Within thirty (30) days after the date of
each meeting, Predix shall prepare and deliver minutes of the meeting to the
members of the JRC, setting forth, inter alia, all recommendations of the JRC,
and including as an attachment the report on the progress of work performed
required by this Section 2.5.1.

      2.6. JOINT STEERING COMMITTEE.

            Predix and CFFT shall establish a Joint Steering Committee ("JSC")
which shall consist of an equal number of senior management personnel from each
party with the requisite experience and seniority to enable them to make
decisions on behalf of the Parties with respect to the initiation, planning and
performance of the activities of the Research Program, as may be agreed by the
Parties from time to time. The JSC shall initially have a total of four (4)
members.

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OMISSIONS.

                                        6

<PAGE>

If the JSC chooses to designate a Committee Chair, the Chair will be appointed
from among the members of the JSC designated by Predix. The JSC shall terminate
its activities upon the occurrence of the last Research Termination Date. The
JSC shall meet, in person or by conference telephone, annually, or with such
other frequency and at such time and location or by such means, as may be
established by the Committee, for the following purposes:

                  (i) To provide general oversight of the Research Program;

                  (ii) To periodically review the overall goals and strategy of
the Research Program;

                  (iii) To approve achievement of milestones and record such
approval in JSC minutes; and

                  (iv) To discuss and attempt to resolve any disagreements
submitted with respect to recommendations made by the JRC, including
recommendations on the completion of milestones events. In the event a deadlock
of the JSC occurs on whether or not a milestone event has been successfully
completed, the Parties shall mutually select a Third Party who shall make such
determination. The determination of the Third Party shall be binding on the
Parties."

      7. Milestones.

            (a) Completion of Milestone (c)(2). The Parties hereby agree that
the Milestone specified in Section 3.1.1(c)(3) of the Agreement has been
completed prior to Milestone (c)(2) and that CFFT shall promptly make the
corresponding [********] milestone

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OMISSIONS.

                                        7

<PAGE>

payment to Predix as provided for in the Agreement, with the remaining
[********] to be paid upon the completion of Milestone (c)(2) in accordance with
the Agreement.

            (b) Additional Milestone. CFFT shall pay to Predix an additional
[********] milestone (the "Additional Milestone") upon the identification of the
[********]; provided that, if the Additional Milestone has not been paid by the
date on which negotiations are required to be commenced with respect to a
[********] under [********] of this Agreement (as amended by this Second
Amendment), or if later by the [********], CFFT shall pay to Predix [********]
of the Additional Milestone, with the remaining amount to be paid upon
identification of a [********]. If CFFT does not elect a [********] that occurs
on or before the Research Termination Date, no Additional Milestone will be paid
for the [********] and the [********] shall remain the property of Predix
notwithstanding an Interruption with respect to the [********]. If there is a
[********] at the time negotiations are required to take place under Section
4.1.1 of this Agreement (as amended by this Second Amendment) with respect to a
[********], the disposition of the [********] also shall be included in such
negotiations and, if no such agreement is reached with respect to such
[********], then [********] shall apply thereto as if such [********] were a
CFTR Corrector-based product.

      Agreed and acknowledged as of the Effective Date.

Predix Pharmaceuticals Holdings, Inc.     Cystic Fibrosis Foundation
                                          Therapeutics Incorporated

By: Michael G. Kauffman M.D., Ph.D.       By: /s/ Robert J. Beall
    ---------------------------------         ----------------------------------

Title: President and CEO                  Title: President and CEO

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OMISSIONS.

                                       8
<PAGE>

                                    EXHIBIT A

                                 Revised Budget

PREDIX RESEARCH PROGRAM I REVISED
BUDGET 2006 - 2009

<Table>
<Caption>
-----------------------------------------------------------------------------------------------------------
                                                 BUDGETED
                                         PMT.    AMOUNT         PROJECTED
SHORT DESCRIPTION          FEE TYPE      #       (MAX)          DATE/QTR1        FY              STATUS
-----------------------------------------------------------------------------------------------------------
<S>                        <C>           <C>     <C>            <C>              <C>           <C>
[********]                 [********]       1    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       2    [********]     [********]       [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       3    [********]     [********]       [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       4    [********]     [********]       [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       5    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       6    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       7    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       8    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]       9    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      10    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      11    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      12    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      13    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      14    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      15    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      16    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      17    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      18    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      19    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      20    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      21    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      22    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      23    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      24    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      25    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
</TABLE>

-------------
1     The parties acknowledge that expenditure dates are flexible depending on
      the scientific progress of the research program.

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE
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OMISSIONS.

                                       9
<PAGE>

<TABLE>
<S>                        <C>           <C>     <C>            <C>              <C>           <C>
[********]                 [********]      26    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      27    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      28    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      29    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      30    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      31    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      32    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      33    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      34    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
[********]                 [********]      35    [********]     [********]       [********]    [********]
-----------------------------------------------------------------------------------------------------------
TOTAL BUDGET PROJECT I                         $14,045,000
----------------------------------------------------------
Predix Research
Program II  Budget
2006 - 2007 Unchanged                           $2,000,000
----------------------------------------------------------
TOTAL CONTRACT -
REVISED                                        $16,045,000
==========================================================
</Table>

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OMISSIONS.

                                       10
<PAGE>

                                    EXHIBIT B

                 Screening Research Plan for Research Program I

                    CFTR PROGRAM WORK PLAN - SCREENING PHASE

           IDENTIFYING "CORRECTOR" OR " POTENTIATOR" HIT COMPOUNDS FOR
                        THE TREATMENT OF CYSTIC FIBROSIS

Objective

1.    The objective of this study is to identify Hit Compounds that bind to the
      Cystic Fibrosis Transmembrane Conductance Regulator protein (CFTR) and
      exert "Corrector" activity. Potential outcome of the screening may be a
      "Corrector", a "Potentiator" or a Hit Compound that exert both "Corrector"
      and "Potentiator" activity.

Background

2.    Since March 2005 Predix and CFFT have been collaborating on a project for
      modeling the 3D structure of CFTR with an aim to identify potential sites
      on CFTR for therapeutic intervention as "Correctors" or "Potentiators".

3.    Now that the CFTR modeling project has reached its mid-point the JRC
      believes that such potential sites have been identified. CFFT wants Predix
      to use its 3D model of CFTR for in silico screening in search of Hit
      Compounds that can act as CFTR Correctors or Potentiators.

4.    The JRC recognizes that there are multiple potential binding sites on
      CFTR. Since each of these potential sites has different characteristics
      Predix will be required to carry out a separate in silico "Screening
      Sub-Project" for each site.

5.    The JRC also recognizes that additional potential binding sites are likely
      to be identified as the CFTR modeling project progresses towards
      completion.

6.    It is understood by the JRC that the separate in silico Screening
      Sub-Projects are completely independent of each other, and success/failure
      in one of these sub-projects has no bearing on the success potential of
      the other screening sub-projects.

Definitions

7.    Following are definitions used in this work-plan

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                                       11
<PAGE>

      7.1   "Hit Compound" shall mean a compound that has an [********] in a
            Corrector biological assay, as defined in section 13 below.

      7.2   "Corrector" shall mean a compound which modulates the biological
            effect of CFTR by increasing the amount of [DELTA]F508 CFTR present
            at the apical cell membrane.

      7.3   "Potentiator" shall mean a Compound which modulates the biological
            effect of CFTR by enhancing the gating activity of [DELTA]F508 CFTR
            present in the apical cell membrane.

      7.4   "Screening Sub-Project" shell mean a full in silico screening
            project focusing on one of the potential binding sites identified in
            the CFTR 3D model prepared by Predix in Research Program I.

      7.5   "Virtual Hits" shall mean a set of compounds identified by Predix
            through in silico screening methodologies, which have a high
            likelihood of binding to the protein at a specific binding site and
            exerting the desirable functional response.

Work-plan

8.    The work-plan consists of the following steps:

      8.1   On an on going basis, hand in hand with progress in the CFTR
            modeling effort, identify [********] on CFTR.

      8.2   Each [********] that is identified will be characterized for its
            potential as a therapeutic intervention site.

      8.3   If a [********] qualifies as a potential intervention site and is
            approved as such by the JSC Predix will perform in silico screening
            on that site ("Screening Sub-Project") in an attempt to [********]
            as defined above.

9.    Identification of [********]:

      9.1   The 3D model of CFTR, or parts of that model, will be examined on an
            on going basis in an attempt to identify [********].

      9.2   A [********] is defined as a concave region on the protein's surface
            with dimensions that roughly correspond to the size of a small
            compound.

10.   Each [********] will be characterized for its potential as a therapeutic
      intervention site, by [********].

      10.1  [********] will address the likelihood that a small compound that
            binds in that [********] will exert either [********].

      10.2  [********] will map the properties of the [********] and give a
            [********] of the [********] that can [********]

11.   Each separate in silico Screening Sub-Project involves the following steps

      11.1  [********] based on the characteristics of the [********] (see item
            12 below). The typical size of a [********] is expected to be
            [********].

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                                       12
<PAGE>

      11.2  [********] refinement of the[********]

      11.3  Selection of the most [********], and an exploration of the
            likelihood that some of the known CFTR [********] to this
            [********].

      11.4  [********] the [********] into the [********].

      11.5  Apply Predix' proprietary [********] and [********] on the
            [********].

      11.6  Apply [********] and a [********] from Predix ensemble of in silico
            methods to [********].

      11.7  Select up to [********] for [********] (see item 13 below).

      11.8  Acquire [********] in the [********], send them to the lab (or labs)
            that will perform the [********], and confirm which of these
            [********] qualify as [********].

      11.9  For each [********], a set of up to [********] will be identified in
            the Predix Library, purchased and sent to [********] in order to
            identify qualifying [********]. If no related compounds are found in
            the Predix Library, up to [********] will be [********] and sent to
            [********].

12.   Screening libraries

      12.1  A separate [********] will be created and used for each screening
            sub-project, optimally, matching the [********] of the [********].
            There may be two sources for this [********]:

            12.1.1 Predix will use its [********] as the primary source for
                   [********].

            12.1.2 If a suitable [********] cannot be identified within the
                   [********] for screening will be [********] (see "Budget" in
                   section 16 below).

13.   Biological assays2

      13.1  The [********] or [********] in the program will be experimentally
            tested for [********] using the following assays:

            13.1.1 Correction assay: One or more of the following: [********].

            13.1.2 Potentiation assay: Same as above, however [********].

      13.2  CFFT will be responsible for [********] necessary to evaluate the
            [********].

      13.3  Predix will interact directly with the study director(s) performing
            the experiments regarding [********].

-------------

2     The parties acknowledge that these assay definitions do not cover the
      higher throughput assays under development on the Effective Date. They
      agree that they will continue to collaborate on the development of such
      assays.

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                                       13
<PAGE>

      13.4  It is the interest of both CFFT and Predix to ensure rapid turn
            around of up to [********] from the receipt of [********] service
            providers to the draft results report. CFFT and Predix will work
            together to ensure high [********] giving strong incentives to
            [********] providers to generate results within [********].

14.   Timeline

      14.1  The term of this screening project is expected to be three (3) years
            from initiation. In this period Predix should complete all the
            Screening Sub-Projects against the pool of "potential sites" agreed
            upon by the JRC.

      14.2  Predix, on its own discretion, will decide on the prioritization of
            the different "Screening Sub-Projects" and their internal timelines
            and completion dates, as these will vary based on technical
            considerations such as availability of screening compounds, the
            specific in silico screening methodology most suitable for that
            site, queue for biological assay testing, and additional technical
            consideration.

15.   Joint Research Committee and Joint Steering Committee (JSC)

      15.1  The existing JRC for the CFTR modeling project will preside over
            this screening project as well.

      15.2  Based on the resulting characterization of each [********], and in
            view of Predix's recommendations, the JSC will recommend for each
            specific [********] whether to initiate a Screening Sub-Project or
            not, thus creating a pool of [********]. Minutes of the JSC may
            qualify as recommendation for initiation of screening.

      15.3  The JRC will be updated, in its regular quarterly meetings, on
            progress in the various screening sub-projects.

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OMISSIONS.

                                       14

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