Document:

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                                                                   EXHIBIT 10.39

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
ASTERISKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
AMENDED.

                                    AGREEMENT

                                     between

                               LONZA BIOLOGICS PLC

                                       and

                                  INHIBITEX INC

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THIS AGREEMENT is made the 5th day of November 2004

BETWEEN

1.       LONZA BIOLOGICS PLC, the registered office of which is at 228 Bath
         Road, Slough, Berkshire SL1 4DX, England ("LB") and

2.       INHIBITEX INC of 1165 Sanctuary Parkway, Suite 400, Alpharetta, GA
         30004, ("Customer").

WHEREAS

A.       Customer has created the Cell Line as defined herein; and

B.       LB has expertise in the evaluation and production of monoclonal
         antibodies for therapeutic use using such Cell Lines; and

C.       Customer wishes to contract LB for Services relating to the Cell Line
         as described in this Agreement, and

D.       LB is prepared to perform such Services for Customer on the terms and
         conditions set out herein.

NOW IT IS AGREED AS FOLLOWS:

1.       The following terms shall have the following meanings unless the
         context requires otherwise:

         "Affiliate"                            means any Company, partnership
                                                or other entity which directly
                                                or indirectly Controls, is
                                                Controlled by or is under common
                                                Control with the relevant party
                                                to this Agreement. "Control"
                                                means the ownership of more than
                                                fifty per cent (50%) of the
                                                issued share capital or the
                                                legal power to direct or cause
                                                the direction of the general
                                                management and policies of the
                                                party in question;

         "Agreement"                            means this agreement
                                                incorporating Schedules 1
                                                (Product Specification), 2
                                                (Services), 3 (Price and Terms
                                                of Payment) and Schedule 4
                                                (Inhibitex Patents) as amended
                                                or varied from time to time by
                                                written agreement of the
                                                parties;

         "Batch"                                means the total Product obtained
                                                from one fermentation and
                                                associated purification using
                                                the Process and carried out in
                                                accordance with cGMP;

         "Cell Line"                            means the cell line, particulars
                                                of which are set out in Schedule
                                                1;

         "cGMP"                                 means Good Manufacturing
                                                Practices and General Biologics
                                                Products Standards as
                                                promulgated under

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                                                the US Federal Food Drug and
                                                Cosmetic Act at 21CFR (Chapters
                                                210, 211, 600 and 610) and the
                                                Guide to Good Manufacturing
                                                Practices for Medicinal Products
                                                as promulgated under European
                                                Directive 91/356/EEC. For the
                                                avoidance of doubt, LB's
                                                operational quality standards
                                                are defined in internal GMP
                                                policy documents;

         "cGMP Product"                         means Product which is required
                                                under Schedule 2 to be
                                                manufactured in accordance with
                                                cGMP;

         cGMP run(s)                            means the 2000 (two thousand)
                                                liter fermentation run(s) to be
                                                performed under this Agreement

         "Customer"                             means Inhibitex Inc and its
                                                successors in title and lawful
                                                assigns;

         "Customer Information"                 means all technical and other
                                                information not known to LB or
                                                not in the public domain
                                                relating to the Cell Line, the
                                                Process (including for the
                                                avoidance of doubt improvements
                                                or modifications thereto from
                                                time to time) and the Product,
                                                from time to time supplied by
                                                the Customer to LB;

         "Customer Materials"                   means the Materials supplied by
                                                Customer to LB (if any) and
                                                identified as such by Schedule 1
                                                hereto;

         "Customer Patent Rights"               means all patents and patent
                                                applications of any kind
                                                throughout the world owned by or
                                                licensed to Customer that are
                                                necessary or useful in
                                                performance of the Services
                                                excluding the LB Patent Rights;

         "Deliver", "Delivered" or "Delivery"   has the meaning given to it in
                                                Clause 4.1;

         "FDA"                                  means the United States Food and
                                                Drug Administration;

         "LB"                                   means Lonza Biologics plc and
                                                its Affiliates and successors in
                                                title and lawful assigns;

         "LB Know-How"                          means all technical and other
                                                information relating directly or
                                                indirectly to the Process known
                                                to LB from time to time other
                                                than Customer Information and
                                                information in the public
                                                domain;

         "LB Patent Rights"                     means all patents and patent
                                                applications of any kind
                                                throughout the world relating to
                                                the Process which from time to
                                                time LB is the owner of or is
                                                entitled to use;

         "Price"                                means the price specified in
                                                Schedule 3 for the Services;

         "Process"                              means the process for the
                                                production of the Product from
                                                the Cell Line, including any
                                                improvements or modifications
                                                thereto from time to time;

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         "Product"                              means all or any part of the
                                                product manufactured using the
                                                Process (including any sample
                                                thereof), particulars of which
                                                are set out in Schedule 1 and
                                                includes all derivatives thereof
                                                made by LB;

         "Services"                             means all or any part of the
                                                services which are the subject
                                                of the Agreement (including,
                                                without limitation, cell culture
                                                evaluation, purification
                                                evaluation, assay evaluation and
                                                qualification, a 130 liter pilot
                                                run, master, working and
                                                extended cell bank creation,
                                                sample and bulk production, and
                                                characterization, cGMP
                                                manufacture), particulars of
                                                which are set out in Schedule 2;

         "Specification"                        means the specification for
                                                Product, particulars of which
                                                are set out in Schedule 1;

         "Terms of Payment"                     means the terms of payment
                                                specified in Schedule 3;

         "Testing Laboratories"                 means any third party instructed
                                                by LB to carry out tests on the
                                                Cell Line or the Product.

         References to the singular number include the plural and vice versa,
         references to Clauses and Schedules are references to clauses and
         schedules to this Agreement.

2        CUSTOMER OBLIGATIONS, WARRANTIES AND INDEMNITIES

2.1      Customer shall pay the Price set out in Schedule 3 for provision of the
         Services together with any additional costs and expenses that fall due
         under this Agreement in accordance with the Terms of Payment, provided
         that any such additional costs and expenses are agreed to in advance by
         Customer. Resin for the cGMP run shall be procured by LB and billed to
         Customer at LB's cost with no mark up or premium added. Customer shall
         pay for the Resins prior to the start of the cGMP run. LB shall use the
         Resins only in the performance of the Services. The Resins shall at all
         times remain the property of Customer, and at the Customer's request
         and option, LB shall destroy or return to the Customer all of the
         Resins at the termination of this Agreement.

2.2      Immediately following the date of the Agreement the Customer shall
         supply to LB the Customer Information, together with full details of
         any hazards relating to the Cell Line and/or the Customer Materials,
         their storage and use. On review of this Customer Information, the Cell
         Line and/or the Customer Materials shall be provided to LB at LB's
         request. Property in the Cell Line and/or the Customer Materials and/or
         the Customer Information supplied to LB shall remain vested in the
         Customer.

2.3      The Customer hereby grants LB the non-exclusive right to use the Cell
         Line, the Customer Materials and the Customer Information only for the
         purpose of the Agreement.

2.4      The Customer warrants to LB that:

         2.4.1    Customer has the right to enter into this Agreement;

         2.4.2    Customer has and shall at all times throughout the term of
                  this Agreement have the right to supply the Cell Line, the
                  other Customer Materials and the Customer Information to LB
                  and the necessary rights to licence or permit LB to use the
                  same only for the purpose of the Services;

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         2.4.3    To the best of the Customer's knowledge and belief as of the
                  date of this Agreement the patents and patent applications and
                  corresponding international applications and patents listed on
                  Schedule 4 relating to any of the Cell Line, the other
                  Customer Materials, Customer Information and Customer Patent
                  Rights not owned by Customer are licensed to Customer under a
                  licence which will permit their use by LB to perform the
                  Services;

         2.4.4    to the best of Customer's knowledge and belief as of the date
                  of this Agreement, the use by LB of the Cell Line, other
                  Customer Materials, Customer Information and Customer Patent
                  Rights for the Services (including without limitation the
                  manufacture of the Product) will not infringe any intellectual
                  property rights of any third party other than third parties
                  from whom customer is a sublicensee through LB (provided,
                  however, that LB shall waive any breach of this warranty which
                  arises if a court of competent jurisdiction determines that
                  the use by LB of the Cell Line, other Customer Materials,
                  Customer Information or Customer Patent Rights for the
                  Services infringes the intellectual property rights of a third
                  party, provided that and for so long as Customer actually
                  indemnifies LB pursuant to Clauses 2.5 and 2.6); this warranty
                  is limited to the Cell Line, other Customer Materials,
                  Customer Information and Customer Patent Rights; Customer
                  makes no warranty as to the Process or the Services; and

         2.4.5    Customer will promptly notify LB in writing if it receives or
                  is notified of a claim from a third party that the Cell Line,
                  other Customer Materials, Customer Information or the Customer
                  Patent Rights or that the use by LB thereof for the provision
                  of the Services infringes any intellectual property rights of
                  such third party.

Clause 2.4 is in lieu of all conditions, warranties and statements in respect of
the Cell Line, Customer Information, Customer Patent Rights and/or Customer
Materials whether expressed or implied by statute, custom of the trade or
otherwise (including but without limitation any such condition, warranty or
statement relating to the description or quality of the Cell Line, Customer
Patent Rights, Customer Materials and Customer Information, their fitness or
suitability for a particular purpose or use under any conditions whether or not
known to Customer) and any such condition, warranty or statement is hereby
excluded.

2.5      The Customer undertakes to indemnify and to maintain LB promptly
         indemnified against any direct loss, damage, costs and expenses
         (including court costs and legal fees), that LB may suffer arising
         directly out of any breach of the warranties given by the Customer
         under Clause 2.4 above or any claims alleging LB's use of the Cell
         Line, the Customer Materials or the Customer Information infringes any
         rights (including, without limitation, any intellectual or industrial
         property rights) vested in any third party (other than third parties
         from whom Customer is a sublicense through LB) (whether or not the
         Customer knows or ought to have known about the same).

2.6      The Customer shall further indemnify and maintain LB promptly
         indemnified against all claims, actions, costs, expenses (including
         court costs and legal fees on a full indemnity basis) or other
         liabilities whatsoever in respect of:

         2.6.1    any product liability in respect of Product, except to the
                  extent such liability is caused by (1) the negligent or
                  willful act or omission of LB in the production and/or supply
                  of Product or provision of Services, or (2) breach of any
                  warranty by LB, or (3) breach of a term of this Agreement by
                  LB; and

         2.6.2    any negligent or willful act or omission of the Customer in
                  relation to the use, processing, storage or sale of the
                  Product.

2.7 Customer shall not be liable for the following loss or damage howsoever
caused (even if foreseeable or in the contemplation of LB or the Customer):

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         2.7.1    loss of profits, business or revenue whether suffered by LB or
any other person; or

         2.7.2    special, indirect or consequential loss, whether suffered by
LB or any other person; and

         2.7.3    any loss arising from any claim made against LB by any other
person.

2.8 Customer shall obtain and maintain clinical trial insurance with a reputable
and solvent insurance provider in the amount of five million dollars per event
or linked events. Customer shall supply LB with a copy of such insurance policy
on reasonable request and shall not terminate or amend (other than amending to
increase the level of cover) such policy without prior written notice to LB.

2.9 The obligations of the Customer under this Clause 2 shall survive the
termination for whatever reason of the Agreement.

3        PROVISION OF THE SERVICES

         3.1.1    LB shall diligently carry out the Services as provided in
                  Schedule 2, shall initiate the first cGMP run prior to the end
                  of March 2005, and shall use all reasonable efforts to achieve
                  the estimated timescales and Specifications set out in that
                  Schedule, with the aim of ensuring that the Product is
                  accepted by the FDA for use in a Phase III clinical trial.

         3.1.2    If due to the negligence or willful misconduct of LB:

                  (i)      the Product does not meet the Specification; or

                  (ii)     the Product meets the Specification but for other
                  reasons cannot be used in a clinical trial;

                  then the Customer shall be under no obligation to pay for the
                  cGMP batch that produced such Product (in which case LB shall
                  refund amounts already paid by Customer in respect of such
                  batch), and shall at its discretion have the option of
                  terminating this Agreement in accordance with the principles
                  of Clause 8.1 below (including making a pro-rata payment in
                  respect of Services performed other than the cGMP batch that
                  produced such Product) or requiring LB to repeat the
                  appropriate cGMP batch, for which the Customer shall pay LB in
                  accordance with the payment terms set out in Schedule 3
                  applicable to a cGMP batch. In the event Customer requires LB
                  to replace such Product, LB shall use all reasonable efforts
                  to do so with the minimum delay having regard to its
                  commitments to third parties in the timing of such
                  replacement.

                  If failure to meet Specification is due to acts or omissions
                  of both LB and Customer, then the cost to replace Product
                  shall be apportioned to the extent fault lies with each party.

         3.1.3    If for reasons related to the inherent qualities of the Cell
                  Line or Product:

                  (i)      the Product does not meet the Specification; or

                  (ii)     the Product meets the Specification but for other
                  reasons cannot be used in a clinical trial; then the Customer
                  shall pay to LB the sum of [ *** ] for the cGMP batch that
                  produced such Product.

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                  If the Services cannot be completed for scientific or
                  technical reasons not the fault of either party then the
                  provisions of section 8.1 (termination) shall apply.

         3.1.4    For the cGMP runs (Stages 8 and 16) Customer shall perform the
                  potency testing as set forth in Schedule 1 within thirty (30)
                  days of sample receipt from LB. LB shall perform the remaining
                  tests as set forth in Schedule 1 within thirty (30) days of
                  completion of the run. Each party is entitled to audit the
                  other party's test procedures. Prior to the start of the cGMP
                  run the parties shall agree on the tests to be run and on the
                  test results necessary for the Product to meet Specification.
                  Costs incurred by Customer in auditing LB's tests shall be
                  born by Customer. Costs incurred by LB in auditing Customer's
                  test shall be born by LB. The Price shall include the actual
                  costs incurred by LB in auditing Customer's test.

         3.1.5    LB shall commence the first cGMP batch (Stage 8) within 15
                  weeks of the completion of Stage 6 (bulk fill of 130L pilot
                  batch) but in no event later than March 31, 2005. If due to
                  any delays or actions or inactions caused solely by LB and not
                  specifically related to Customer's Material this first cGMP
                  batch is not commenced by such date, then the Customer shall
                  be entitled to terminate this Agreement in accordance with
                  Clause 8.1.

         3.1.6    If LB is unable to perform any or all of the Services for a
                  period of at least thirty (30) days due to restrictions placed
                  upon LB by the FDA or any other regulatory authority, Customer
                  may terminate this Agreement in accordance with Clause 8.1
                  below.

         3.1.7    Prior to the start of the cGMP run each party shall designate
                  in writing a Project Manager who shall be the primary contact
                  for each party during the provision of the Services. Prior to
                  the start of the cGMP Run the parties shall enter into a
                  written Quality Agreement which shall be attached as an
                  appendix hereto and incorporated by reference as a part of
                  this agreement.

         3.1.8    In accordance with the Quality Agreement, LB shall make
                  available to Customer such data and documentation as may be
                  necessary for Customer to include in its regulatory filings
                  with the FDA. LB shall cooperate as reasonably requested by
                  Customer, at Customer's expense, in support of Customer's
                  regulatory filings. Any such filings shall be the sole and
                  exclusive property of Customer.

         3.1.9    The parties shall comply with all terms of the Quality
                  Agreement.

3.2      LB shall comply with the International Committee for Harmonisation
         regulatory requirements and all applicable local, state and federal
         regulatory requirements including but not limited to FDA regulations
         from time to time applicable to the Services as set out in Schedule 2.

3.3      LB hereby undertakes not to use the Cell Line, the Customer Materials
         or the Customer Information (or any part thereof) for any purpose
         except as set forth in this Agreement.

3.4      LB shall:

         3.4.1    at all times keep the Cell Line and/or the Customer Materials
                  secure and safe from loss and damage in such manner as LB
                  stores its own material of similar nature;

         3.4.2    not part with possession of the Cell Line and/or the Customer
                  Materials or the Product, save for the purpose of tests at the
                  Testing Laboratories; and

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         3.4.3    procure that all Testing Laboratories are subject to
                  obligations of confidence substantially in the form of those
                  obligations of confidence imposed on LB under this Agreement.

3.5      In providing the Services LB shall employ its most current, most
         efficient and best available LB Know How and LB Patent Rights.

4        DELIVERY, TRANSPORTATION OF PRODUCT AND CUSTOMER TESTS

4.1      Product shall be Delivered EXW (ex-works) LB premises (as defined by
         Incoterms 2000) which means (a) when LB places Product at the disposal
         of Customer at LB's premises not cleared for export and not loaded onto
         any collecting vehicle and (b) risk and title to Product pass to
         Customer upon Delivery ("Deliver," "Delivery," or "Delivered," as
         appropriate). Subject to Clause 4.2, unless otherwise instructed by
         Customer, LB shall not Deliver Product to Customer or place Product at
         the disposal of Customer until after Customer has received the
         Certificate of Analysis and approved (in writing) Product for Delivery.
         Transportation of Product, whether or not under any arrangements made
         by LB on behalf of Customer, shall be made at the sole risk and expense
         of the Customer. Notwithstanding the forgoing, Delivery by LB shall not
         be interpreted as the agreement by Customer that the Product meets the
         Specification.

4.2      At Customer's request, LB will Deliver Product in quarantine prior to
         delivery of the Certificate of Analysis. Such request shall be
         accompanied by Customer's written acknowledgement that the Product has
         been Delivered without the transmittal to Customer of a Certificate of
         Analysis and, that accordingly the Product cannot be administered to
         humans until transmittal of the Certificate of Analysis, and that
         Customer nevertheless accepts full risk of loss, title and ownership of
         the Product. The Delivery of Product in quarantine shall be subject to
         such testing requirements as LB may reasonably require.

4.3      Unless otherwise agreed in writing, LB shall package and label Product
         for Delivery in accordance with its standard operating procedures. It
         shall be the responsibility of the Customer to inform LB in writing in
         advance of any special packaging and labeling requirements for Product.
         Customer shall be responsible for validating any special packaging or
         vessels requested by Customer. All actual additional costs and expenses
         of whatever nature incurred by LB in complying with such special
         written requirements shall be charged to the Customer in addition to
         the Price.

4.4      If requested in writing by the Customer, LB will (acting as agent for
         Customer) arrange for insurance of Product whilst held by LB after
         Delivery (awaiting transportation) for a maximum of thirty (30) days on
         terms equivalent to those under which LB insures product prior to
         Delivery. All actual additional costs and expenses of whatever nature
         incurred by LB in arranging such insurance shall be charged to the
         Customer in addition to the Price.

4.5      If requested in writing by the Customer, LB will (acting as agent of
         the Customer for such purpose) arrange the transportation of Product
         from LB's premises to the destination indicated by the Customer
         together with insurance cover for Product in transit at its invoiced
         value. All actual additional costs and expenses of whatever nature
         incurred by LB in arranging such transportation and insurance shall be
         charged to the Customer in addition to the Price.

4.6      Where LB has made arrangements for the transportation of Product, the
         Customer shall diligently examine the Product as soon as practicable
         after receipt. Notice of all claims (time being of the essence) arising
         out of:

         4.6.1    visible damage to or total or partial loss of Product in
                  transit shall be given in writing to LB and the carrier within
                  five (5) working days of receipt by Customer; or

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         4.6.2    non-Delivery shall be given in writing to LB within ten (10)
                  days after Customer's receipt of LB's dispatch notice.

4.7      The Customer shall make damaged Product and associated packaging
         materials available for inspection and shall comply with the
         requirements of any insurance policy covering the Product notified by
         LB to the Customer. LB shall offer the Customer all reasonable
         assistance (at the cost and expense of the Customer) in pursuing any
         claims arising out of the transportation of Product.

4.8      If there is any dispute concerning whether Product returned to LB fails
         to meet Specification or whether such failure is due (in whole or in
         part) to acts or omissions of LB, the Customer, or any third party
         after Delivery, or if there is any dispute in relation to clauses 3.1.2
         and/or 3.1.3, such dispute shall be referred for decision to an
         independent expert (acting as an expert and not as an arbitrator) to be
         appointed by agreement between LB and the Customer or, in the absence
         of agreement by the President for the time being of Biotechnology
         Industry Organization. The costs of such independent expert shall be
         borne equally between LB and the Customer. The decision of such
         independent expert shall be in writing and, save for manifest error on
         the face of the decision, shall be binding on both LB and the Customer.

4.9      The provisions of clauses 3.1.2, 3.1.3 and 4.8 shall be the sole remedy
         available to the Customer in respect of Product that fails to meet
         Specification. This limitation of remedy applies only to Customer's
         remedy with respect to its procurement of such Product and the
         provisions of Article 6 shall nevertheless apply.

5        PRICE AND TERMS OF PAYMENT

5.1      Unless otherwise indicated in writing by LB, all prices and charges are
         exclusive of Value Added Tax or of any other applicable taxes, levies,
         imposts, duties and fees of whatever nature imposed by or under the
         authority of any government or public authority, which shall be paid by
         the Customer (other than taxes on LB's income). All invoices are
         strictly net and payment must be made within thirty (30) days of date
         of invoice. Payment shall be made without deduction, deferment,
         set-off, lien or counterclaim of any nature.

5.2      In default of payment on due date:

         5.2.1    interest shall accrue on any amount overdue at the prime
                  lending rate in the United States, interest to accrue on a day
                  to day basis both before and after judgment; and

         5.2.2    LB shall, at its sole discretion, and without prejudice to any
                  other of its accrued rights, be entitled to suspend the
                  provision of the Services or to treat this Agreement as
                  repudiated on not less than thirty (30) days' prior notice in
                  writing to Customer given at any time thereafter.

6        LB WARRANTIES AND INDEMNITY

6.1      LB warrants that:

         6.1.1    the Services shall be performed in accordance with the terms
                  of section 3 and the Quality Agreement and schedule 1 of this
                  Agreement, and the cGMP batch (Stages 8 and 16) shall in
                  addition be performed in accordance with LB's standard
                  operating procedures and cGMP.

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         6.1.2    unencumbered title (save for any unlicensed third party
                  intellectual property rights which may exist) to Product will
                  be conveyed to Customer upon Delivery;

         6.1.3    as of the date of this Agreement the LB Know How and LB Patent
                  Rights are owned by LB or LB is otherwise entitled to use them
                  for the purposes of providing Services under this Agreement
                  and during the term of this Agreement LB shall not do or cause
                  anything to be done which would adversely affect their
                  ownership or entitlement to use the same for those purposes;

         6.1.4    LB has the necessary corporate authorisations to enter into
                  this Agreement;

         6.1.5    as of the date of this Agreement to the best of LB's knowledge
                  and belief, the use by LB of the Process (excluding any
                  modifications or steps made or developed by Customer, the
                  Customer Materials, Customer Information and Customer Patent
                  Rights) and LB Patent Rights and LB Know How for the
                  performance of the Services as provided herein will not
                  infringe any rights (including without limitation any
                  intellectual or industrial property rights) vested in any
                  third party; and

         6.1.6    LB will notify Customer in writing immediately if it receives
                  or is notified of a claim from a third party that the use by
                  LB of the Process and/or the LB Know How or the LB Patent
                  Rights for Services infringes any intellectual property rights
                  vested in such third party.

6.2      This Agreement including but not limited to Clause 6.1 is in lieu of
         all conditions, warranties and statements in respect of the Services
         and/or the Product whether expressed or implied by statute, custom of
         the trade or otherwise (including but without limitation any such
         condition, warranty or statement relating to the description or quality
         of the Product, its fitness or suitability for a particular purpose or
         use under any conditions whether or not known to LB) and any such
         condition, warranty or statement is hereby excluded.

6.3      LB undertakes to indemnify and to maintain Customer promptly
         indemnified against any direct loss, damage, costs and expenses
         (including court costs and legal fees) that Customer may suffer arising
         directly out of any breach of the warranties given by LB in Clause 6.1
         or any claims alleging that LB's use of LB Know-How (excluding use of
         LB Know-How with Customer Materials or Customer Information) infringes
         any rights (including without limitation any intellectual or industrial
         rights) vested in a third party (whether or not LB knows or ought to
         have known the same).

6.4      LB shall further indemnify and maintain Customer promptly indemnified
         against all claims, actions, costs, expenses (including court costs and
         legal fees on a full indemnity basis) or other liabilities whatsoever
         in respect of:

         6.4.1    any clinical trial liability or product liability in respect
                  of Product, except to the extent such liability is caused by
                  the negligent or willful act or omission of Customer in the
                  provision of the Customer Materials or Customer Information to
                  LB; and

         6.4.2    any negligent or willful act or omission of LB in relation to
                  the processing, or storage of the Product or provision of the
                  Services.

6.5      LB's aggregate liability for direct damages arising out of or in
         connection with this Agreement or the transactions contemplated hereby
         shall not exceed [ * * * ], except that the foregoing limitation shall
         not apply in the case of (a) breach of Clause 7 (Confidentiality) by
         LB, (b) personal injury or death caused by the negligence of LB, or (c)
         grossly negligent or intentionally wrongful acts or omissions of LB.
         The foregoing limitation shall also not apply to claims arising under,
         or LB's breach of, Clause 6.1 (LB Warranties and Indemnity); provided,
         however, that LB's aggregate liability for direct damages arising out
         of or in connection with claims arising

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         under, or LB's breach of, Clause 6.1 (LB Warranties and Indemnity),
         shall not exceed [ *** ].

6.6      NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INCIDENTAL,
         PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
         LOST PROFITS, LOST DATA, LOST REVENUES, AND LOSS OF BUSINESS
         OPPORTUNITY, WHETHER OR NOT THE OTHER PARTY WAS AWARE OR SHOULD HAVE
         BEEN AWARE OF THE POSSIBILITY OF THESE DAMAGES, EXCEPT THAT THE
         FOREGOING LIMITATION SHALL NOT APPLY IN THE CASE OF (a) BREACH OF
         CLAUSE 7 (CONFIDENTIALITY) BY EITHER PARTY, (b) PERSONAL INJURY OR
         DEATH, OR (c) NEGLIGENT OR INTENTIONALLY WRONGFUL ACTS OR OMISSIONS.

6.7 LB shall obtain and maintain product liability insurance with a reputable
and solvent insurance provider in the amount of not less than [ * * * ] per
event or linked. LB shall supply Customer with a copy of such insurance policy
on reasonable request and shall not terminate or amend (other than amending to
increase the level of cover) such policy without prior written notice to
Customer.

6.8 Nothing contained in this Agreement shall purport to exclude or restrict any
liability for death or personal injury resulting directly from negligence by LB
in carrying out the Services or any liability for breach of the implied
undertakings of LB as to title.

6.9 The obligations of LB and of the Customer under this Clause 6 shall survive
the termination for whatever reason of the Agreement.

7.       CONFIDENTIALITY

7.1      The Customer acknowledges that LB Know-How and LB acknowledges that
         Customer Information with which it is supplied by the other pursuant to
         the Agreement is supplied, subject to Clause 7.5, in circumstances
         imparting an obligation of confidence and each agrees to keep such LB
         Know-How or such Customer Information secret and confidential and to
         respect the other's proprietary rights therein and not at any time for
         any reason whatsoever to disclose or permit such LB Know-How or LB
         Information or such Customer Information to be disclosed to any third
         party save as expressly provided herein.

7.2      The Customer and LB shall each procure that all their respective
         employees, consultants, contractors and persons for whom it is
         responsible having access to confidential LB Know-How or LB Information
         or confidential Customer Information shall be subject to the same
         obligations of confidence as the principals pursuant to Clauses 7.1 and
         7.3 and shall be bound by secrecy agreements in support of such
         obligations.

7.3      LB and the Customer each undertake not to disclose or permit to be
         disclosed to any third party (including any contractors or consultants
         not previously approved in writing by LB, such approval not to be
         unreasonably withheld or delayed), or otherwise make use of or permit
         to be made use of (a) any trade secrets or confidential information
         relating to the technology, business affairs or finances of the other,
         any subsidiary, holding company or subsidiary or any such holding
         company of the other, or of any suppliers, agents, distributors,
         licensees or other customers of the other which comes into its
         possession under this Agreement. or (b) the commercial terms of this
         Agreement except to the extent that the same is required to be
         disclosed pursuant to subpoena, court order, judicial process or
         otherwise by law, provided the Receiving Party provides prompt notice
         to the Disclosing Party of such requirement in order to give the
         Disclosing Party an opportunity to timely seek a protective order or
         other appropriate judicial relief. In the event the Disclosing Party is
         unable to obtain a protective order or other appropriate judicial
         relief, the Receiving Party shall disclose only that portion of the
         Disclosing Party's Confidential Information which

                                       11

<PAGE>

         is legally required to be disclosed, and ensure that all such
         Confidential Information of the Disclosing Party shall be redacted to
         the fullest extent permitted by law prior to such disclosure and that
         the Disclosing Party shall be given an opportunity to review the
         Confidential Information prior to its disclosure.

7.4      The obligations of confidence referred to in this Clause 7 shall not
         extend to any information which:

         7.4.1    is or becomes generally available to the public otherwise than
                  by reason of a breach by the Receiving Party of the provisions
                  of this Clause 7;

         7.4.2    is known to the Receiving Party and is at its free disposal
                  prior to its receipt from the Disclosing Party;

         7.4.3    is subsequently disclosed to the Receiving Party without being
                  made subject to an obligation of confidence by a third party;

         7.4.4    LB or the Customer may be required to disclose under any
                  statutory, regulatory or similar legislative requirement
                  including but not limited to the U.S. Securities and Exchange
                  Commission requirements for registrations to sell securities
                  to the public , subject to the imposition of obligations of
                  secrecy wherever possible in that relation; or

         7.4.5    is developed by any servant or agent of the Receiving Party
                  without access to or use or knowledge of the information by
                  the Disclosing Party.

7.5      The Customer and LB acknowledge that:

         7.5.1    without prejudice to any other rights and remedies that the
                  parties may have, the parties agree that the Confidential
                  Information is valuable and that damages may not be an
                  adequate remedy for any breach of the provisions of Clauses
                  7.1, 7.2, 7.3 and 7.4. The parties agree that the relevant
                  party will be entitled without proof of special damage to the
                  remedies of an injunction and other equitable relief for any
                  actual or threatened breach by the other party;

         7.5.2    the Customer shall not at any time have any right, title,
                  licence or interest in or to LB Know-How, the LB Patent Rights
                  or any other intellectual property rights relating to the
                  Process which are vested in LB or to which LB is otherwise
                  entitled except as otherwise agreed in writing by the parties;
                  and

         7.5.3    LB acknowledges that save as provided herein LB shall not at
                  any time have any right, title, licence or interest in or to
                  the Customer Information, Customer Patent Rights or any other
                  intellectual property rights vested in Customer or to which
                  the Customer is entitled.

7.6      Ownership of any technique, process, apparatus, material, product,
         data, formula, software, design, trade secret, Confidential
         Information, improvement, know-how, or invention, whether patentable or
         not, made in performing the services will, save as set out in this
         section 7.6 follow the United States laws of inventorship, and
         inventors shall be the owners.

7.6.1    In the event that LB develops an invention which relates exclusively to
         the LB Process, Know-how or Patent Rights, and not to Customer
         Material, Information or Patent Rights, LB shall own all right, title
         and interest in and to such invention.

7.6.2    In the event that LB develops an invention which relates exclusively to
         the Customer Material, Information or Patent Rights, and not to the LB
         Process, Know-how or Patent Rights, LB shall promptly provide written
         notice to Customer of such invention and will,

                                       12

<PAGE>

         upon request of Customer, assign such invention to Customer on
         commercially reasonable terms to be negotiated in good faith between
         the parties. For the avoidance of doubt an invention shall not relate
         exclusively to the Customer material if such invention is capable of
         application by LB to materials other than Customer Material.

7.6.3    In the event that LB develops an invention using the Customer Material
         for which no Customer employee is an inventor and which is an invention
         not described in either section 7.6.1 or 7.6.2 above, then LB shall,
         upon request by Customer, grant a nonexclusive license to Customer of
         such invention on commercially reasonable terms to be negotiated in
         good faith by the parties.

7.6.4    In the event that Customer develops an invention relating to the LB
         Process, Know-how or Information during its interaction with LB in the
         performance of the Services, then Customer shall, upon request by LB,
         grant a nonexclusive license to LB of such invention on commercially
         reasonable terms to be negotiated in good faith by the parties.

7.6.5    All notices described in this section 7.6 shall include a detailed
         description of the invention.

7.7      The obligations of LB and the Customer under this Clause 7 shall
         survive the termination for whatever reason of the Agreement.

8.       TERMINATION

8.1      If the parties agree at any stage in the provision of the Services that
         it will not be possible to successfully complete the Services for
         scientific or technical reasons not the fault of either party, a thirty
         (30) day period shall be allowed for good faith discussion and attempts
         to resolve such problems. If such problems are not resolved within such
         period, or if the parties do not agree that scientific or technical
         reasons prohibit successful completion of the Services, LB and the
         Customer shall each have the right to terminate the Agreement forthwith
         by notice in writing. In the event of such termination, the Customer
         shall pay to LB a termination sum calculated by reference to all the
         Services performed by LB prior to such termination including a pro rata
         proportion of the Price for any stage of the Services which is in
         process at the date of termination including the costs of terminating
         any third party commitments entered into pursuant to the Agreement,
         such sum not to exceed the Price.

8.2      Customer may in its sole discretion terminate the Services at any time
         for any reason by giving not less than (thirty) 30 days' notice in
         writing to LB. In the event of termination pursuant to this Clause 8.2
         and subject to Clauses 8.3 and 8.4 the Customer shall pay LB a
         termination sum calculated by reference to the Services actually
         performed by LB prior to termination including a pro rata proportion of
         the Price for any stage of the Services which is in process at the date
         of termination including costs of terminating any third party
         commitments entered into pursuant to this Agreement, such sum not to
         exceed the Price. plus:

         8.2.1    in the event notice to terminate Services pursuant to this
                  Clause 8.2 is issued to LB six (6) months or less before LB's
                  then estimated start date for Stage 8 or Stage 16, or at any
                  time during such Stages, Customer shall pay LB a sum equal to
                  the full price of that stage or those stages in question,
                  which payment shall fall due to LB thirty days from the date
                  of termination of such Services. (For the avoidance of doubt,
                  per Schedule 3 the first cGMP run, i.e. Stage 8, is already
                  planned to start no later than the end of March 2005;
                  therefore this clause will require full payment if the first
                  cGMP run is cancelled) ; or

         8.2.2    in the event notice to terminate Services pursuant to this
                  Clause 8.2 is issued to LB more than six (6) months but not
                  more than twelve (12) months before LB's then estimated start
                  date for Stage 8, Customer shall pay LB a sum equal to 85%

                                       13

<PAGE>

                  (eighty-five percent) of the full price of Stage 8, which
                  payment shall fall due to LB thirty days from the date of
                  termination of such Services; or

         8.2.3    in the event notice to terminate Services pursuant to this
                  Clause 8.2 is issued to LB more than six (6) but not more than
                  nine (9) months before LB's then estimated start date for
                  Stage 16, Customer shall pay LB a sum equal to twenty five
                  percent (25%) of the full price of that stage or those stages
                  in question; which payment shall fall due to LB thirty days
                  from the date of termination of such Services.

         8.2.4    in the event notice to terminate Services pursuant to this
                  Clause 8.2 is issued to LB more than nine (9) months before
                  LB's then estimated start date for Stage 16 then no payment
                  shall be due to LB (For the avoidance of doubt, per Schedule
                  3, the second cGMP run, i.e. Stage 16 is now planned to start
                  by the end of December 2005; therefore if Customer cancels
                  this run prior to the end of March 2005 then no payment shall
                  be owed to LB for the second cGMP run) .

         LB shall use reasonable efforts to mitigate loss and the obligation to
         make payment under Clause 8.1 or clause 8.2 shall be reduced
         (retrospectively, and hence LB shall make an appropriate refund to
         Customer) to the extent that LB mitigates its loss in this regard (and
         LB shall promptly notify the Customer of any such mitigation). This
         provision shall not entitle the Customer to be refunded an amount
         greater than that paid by customer to LB pursuant to this Clause 8.

8.3      For the avoidance of doubt activities relating to the start or
         commencement of a run shall be deemed to commence with the date of
         removal of the vial of cells for the performance of the fermentation
         from frozen storage.

8.4      The parties may each terminate the Agreement forthwith by notice in
         writing to the other party upon the occurrence of any of the following
         events:

         8.4.1    if the other commits a material breach of the Agreement (which
                  shall include a breach of the warranties set out in Clauses 2
                  and 6 respectively) which in the case of a breach capable of
                  remedy is not remedied within thirty (30) days of the receipt
                  by the other of written notice identifying the breach and
                  requiring its remedy; or

         8.4.2    if the other ceases for any reason to carry on business or
                  compounds with or convenes a meeting of its creditors or has a
                  receiver or manager appointed in respect of its assets to
                  which this agreement pertains or is the subject of an
                  application for an administration order or of any proposal for
                  a voluntary arrangement or enters into liquidation (whether
                  compulsorily or voluntarily) or undergoes any analogous act or
                  proceedings under foreign law.

8.5      Upon the termination of the Agreement for whatever reason:

         8.5.1    LB shall promptly return to the Customer all Customer
                  Information and shall dispose of or return to the Customer the
                  Customer Materials (and where supplied by Customer the Cell
                  Line) and any materials therefrom, as directed by the
                  Customer;

         8.5.2    the Customer shall promptly return to LB all LB Know-How it
                  has received from LB;

         8.5.3    the Customer shall not thereafter use or exploit the LB Patent
                  Rights or the LB Know-How in any way whatsoever unless subject
                  to a separate written license or agreement;

         8.5.4    LB and the Customer shall do all such acts and things and
                  shall sign and execute all such documents as necessary to
                  evidence compliance with this Clause 8.5.

                                       14
<PAGE>

8.6      Termination of this Agreement for whatever reason shall not affect the
         accrued rights of either LB or the Customer arising under or out of
         this Agreement and all provisions which are expressed to survive the
         Agreement shall remain in full force and effect.

8.6.1    The term of this Agreement shall commence on the date first written
         above and shall expire upon completion of the Services and payment
         therefor, unless earlier terminated as provided herein.

8.7      During the course of this Agreement, and at any time prior to 31st
         December 2007, Customer may request and if requested, LB shall provide
         to Customer a license and technology transfer agreement for relevant
         technical know-how related to the Process, excluding the content of
         LB's proprietary feed additives, to allow Customer or its designee to
         duplicate the Process, under a technology transfer agreement mutually
         agreed upon, subject to commercially reasonable pricing and other terms
         associated with technology transfer. The financial terms for the
         technology transfer shall be negotiated in good faith by the parties,
         and the total fee for such technology transfer will depend on the
         extent of LB's proprietary know-how used in the Process. For the
         avoidance of doubt, the terms of any such technology transfer do not
         include a licence to LB's proprietary glutamine synthetase (GS) gene
         expression system.

8.8      If prior to 31st December 2006, LB and Customer agree that additional
         cGMP product is to be produced by LB for Customer then the terms for
         such further production at the 2000L scale shall include a price not to
         exceed the Price under this Agreement. All other terms of that
         agreement will be substantially as set forth in this Agreement.

8.9      Should the Customer seek future commercial supply of the Product at
         2000L or 5000L scale Lonza will enter into good faith negotiations in
         respect of such supply. The price for such supply will be dependent
         upon selected scale, total product requirements and campaign size.

9.       FORCE MAJEURE

9.1      If LB is prevented or delayed in the performance of any of its
         obligations under the Agreement by Force Majeure and shall give written
         notice thereof to the Customer specifying the matters constituting
         Force Majeure together with such evidence as LB reasonably can give and
         specifying the period for which it is estimated that such prevention or
         delay will continue, LB shall be excused from the performance or the
         punctual performance of such obligations as the case may be from the
         date of such notice for so long as such cause of prevention or delay
         shall continue.

9.2      The expression "Force Majeure" shall be deemed to include any cause
         affecting the performance by LB of the Agreement arising from or
         attributable to acts, events, acts of God, omissions or accidents
         beyond the reasonable control of LB or which LB could not reasonably
         prevent or mitigate; provided, however that unanticipated scientific or
         technical problems shall not constitute Force Majeure. Customer shall
         have the right to terminate this Agreement if a force majeure event
         continues for a period longer than two months.

10.      GOVERNING LAW, JURISDICTION AND ENFORCEABILITY

10.1     The construction, validity and performance of the Agreement shall be
         governed by the laws of the United States and the State of New York,
         and LB and the Customer submit to the non-exclusive jurisdiction of the
         Courts.

10.2     No failure or delay on the part of either LB or the Customer to
         exercise or enforce any rights conferred on it by the Agreement shall
         be construed or operate as a waiver thereof nor shall any single or
         partial exercise of any right, power or privilege or further exercise
         thereof operate so as to bar the exercise or enforcement thereof at any
         time or times thereafter.

                                       15
<PAGE>

10.3     The illegality or invalidity of any provision (or any part thereof) of
         the Agreement or these Standard Terms shall not affect the legality,
         validity or enforceability of the remainder of its provisions or the
         other parts of such provision as the case may be.

11.      NOTICES

11.1     Any notice or other communication to be given under this Agreement
         shall be delivered personally or sent by facsimile transmission and by
         first class pre-paid post addressed as follows:

         11.1.1   If to Lonza Biologics to: Lonza Biologics plc
                                            228 Bath Road
                                            Slough
                                            Berkshire SL1 4DX
                                            England
                                            Facsimile: 01753 777001
                  For the attention of: The Head of Legal Services

         11.1.2   If to the Customer to: Inhibitex Inc
                                         1165 Sanctuary Parkway
                                         Suite 400
                                         Alpharetta
                                         GA 30004, USA
                                         Facsimile: (678) 746 1299
                  For the attention of:  Robert Schweiger

         or to such other destination as either party hereto may hereafter
         notify to the other in accordance with the provisions of this Clause
         11.

11.2     All such notices or other communications shall be deemed to have been
         served as follows:

         11.2.1   if delivered personally, at the time of such delivery;

         11.2.2   if sent by facsimile, upon receipt of the transmission
                  confirmation slip showing completion of the transmission;

         11.2.3   if sent by first class pre-paid post, ten (10) business days
                  (Saturdays, Sundays and Bank or other public holidays
                  excluded) after being placed in the post.

12.      MISCELLANEOUS

12.1     Neither party shall be entitled to assign, transfer, charge or in any
         way make over the benefit and/or the burden of this Agreement without
         the prior written consent of the other which consent shall not be
         unreasonably withheld or delayed, save that either party shall be
         entitled without the prior written consent of the other to assign,
         transfer, charge, sub-contract, deal with or in any other manner make
         over the benefit and/or burden of this Agreement to any company with
         which such party may merge or to any company to which such party may
         transfer or license its assets and undertakings.

12.2     The text of any press release or other communication to be published by
         or in the media concerning the subject matter of the Agreement shall
         require the prior written approval of LB and the Customer.

12.3     The Agreement embodies the entire understanding of LB and the Customer
         and there are no promises, terms, conditions or obligations, oral or
         written, expressed on implied,

                                       16
<PAGE>

         other than those contained in the Agreement. The terms of the Agreement
         shall supersede all previous agreements (if any) which may exist or
         have existed between LB and the Customer relating to the Services.

12.4     No variation of or addition to this Agreement or any part thereof shall
         be effective unless in writing and signed on behalf of both parties.
         Notwithstanding the above the parties hereby confirm that amendments to
         the Specification shall be effective if reduced to writing and signed
         by the quality and/or regulatory representative of both parties, which
         quality and/or regulatory representative shall be nominated from time
         to time by each party

AS WITNESS the hands of the duly authorised representatives of the parties
hereto the day and year first above written.

                                               LONZA BIOLOGICS PLC

Signed for and on behalf of                    /s/ G.T. Klement
Nov. 5, 2004                                   -------------------------------
                                               G.T. Klement

                                               Head of LBP
                                               -------------------------------
                                               TITLE

                                               INHIBITEX INC

Signed for and on behalf of                    /s/ Robert Schweiger
Nov. 5, 2004                                   -------------------------------
                                               Robert Schweiger

                                               VP Business Development
                                               -------------------------------
                                               TITLE

                                       17
<PAGE>

                                   SCHEDULE 1

[ * * * ]

                                       18
<PAGE>

[ * * * ]

                                       19
<PAGE>

[ * * * ]

                                       20
<PAGE>

[ * * * ]

                                       21
<PAGE>

[ * * * ]

                                       22
<PAGE>

[ * * * ]

                                       23
<PAGE>

                                   SCHEDULE 2

[ * * * ]

                                       24
<PAGE>

[ * * * ]

                                       25
<PAGE>

[ * * * ]

                                       26
<PAGE>

[ * * * ]

                                       27
<PAGE>

[ * * * ]

                                       28
<PAGE>

[ * * * ]

                                       29
<PAGE>

[ * * * ]

                                       30
<PAGE>

[ * * * ]

                                       31
<PAGE>

[ * * * ]

                                       32
<PAGE>

[ * * * ]

                                       33

<PAGE>

[ * * * ]

                                       34

<PAGE>

[ * * * ]

                                       35

<PAGE>

[ * * * ]

                                       36
<PAGE>

[ * * * ]

                                       37

<PAGE>

[ * * * ]

                                       38

<PAGE>

[ * * * ]

                                       39

<PAGE>

[ * * * ]

                                       40

<PAGE>

[ * * * ]

                                       41

<PAGE>

[ * * * ]

                                       42

<PAGE>

[ * * * ]

                                       43

<PAGE>

                                   SCHEDULE 3

                           Price and Terms of Payment

1.       Price

In consideration for LB carrying out the Services as detailed in Schedule 2 the
Customer shall pay LB as follows:

<TABLE>
<CAPTION>
                                                                                               PRICE(1)
        STAGE                                                                            (UK (pound) STERLING)
<S>                                                                                      <C>
Stage 1         [ * * * ]                                                                [ * * * ]
                                                                                         Individual invoice
                                                                                         may be issued
                                                                                         for each sub-stage.

Stage 2         [ * * * ]                                                                [ * * * ]

Stage 3         [ * * * ]                                                                [ * * * ]

Stage 4         [ * * * ]                                                                [ * * * ] plus
                                                                                         testing laboratory
                                                                                         charges actually
                                                                                         incurred by LB
                                                                                         estimated to be [ * * * ]

Stage 5         [ * * * ]                                                                [ * * * ] plus
                                                                                         testing laboratory
                                                                                         charges estimated
                                                                                         to be [ * * * ]

Stage 6         [ * * * ]                                                                [ * * * ]

Stage 7         [ * * * ]                                                                [ * * * ]

Stage 8         [ * * * ]                                                                [ * * * ]

Stage 9         [ * * * ]                                                                (pound)[ * * * ] plus
                                                                                         testing laboratory
                                                                                         charges actually
                                                                                         incurred by LB
                                                                                         estimated to be [ * * * ]

Stage 10        [ * * * ]                                                                [ * * * ]

Stage 11        [ * * * ]                                                                [ * * * ] per time
                                                                                         point

Stage 12        [ * * * ]                                                                [ * * * ]

Stage 13        [ * * * ]                                                                [ * * * ] per time
                                                                                         point
</TABLE>

                                44

<PAGE>
<TABLE>
<S>                                                                                      <C>
Stage 14        [ * * * ]                                                                Depending on Scope
                                                                                         for IND preparation

                                                                                         Estimated  to be [* * * ]

Stage 15        [ * * * ]                                                                [ * * * ]

Stage 16        [ * * * ]                                                                [ * * * ]

</TABLE>

Notes:

(1)      [ * * * ]

(2)      [ * * * ]

(3)      [ * * * ]

(4)      [ * * * ]

(5)      [ * * * ]

(6)      [ * * * ]

                                       45

<PAGE>

2.       Payment

         Payment by the Customer of the Price for each Stage shall be made
         against LB's invoices as follows(1):

         2.1      For Stage 1
                  50% upon commencement of Stage 1.
                  50% upon completion of Stage 1.

         2.2      For Stage 2
                  50% upon commencement of Stage 2.
                  50% upon completion of Stage 2.

         2.3      For Stage 3
                  50% upon commencement of Stage 3.
                  50% upon completion of Stage 3.

         2.4      For Stage 4
                  50% upon commencement of Stage 4.
                  50% upon completion of Stage 4.

         2.5      For Stage 5
                  50% upon commencement of Stage 5.
                  50% upon completion of Stage 5.

         2.6      For Stage 6
                  50% upon commencement of Stage 6.
                  50% upon completion of Stage 6.

         2.7      For Stage 7
                  50% upon commencement of Stage 7.
                  50% upon completion of Stage 7.

         2.8      For Stage 8
                  50% upon removal of an ampoule of MCB out of freeze.
                  50% upon completion of Stage 8.

         2.9      For Stage 9
                  50% upon commencement of Stage 9.
                  50%  upon completion of Stage 9.
                  Testing Laboratory charges will be invoiced separately.

         2.10     For Stage 10
                  50% upon commencement of Stage 10.
                  50% upon completion of Stage 10.
                  Testing Laboratory charges will be invoiced separately.

2.11     For Stage 11
                  50% upon commencement of Stage 11.
                  50% upon completion of Stage 11.

2.12     For Stage 12
         100% payment per issued time point

         2.13     For Stage 13
                  100% payment per issued time point

         2.14     For Stage 14
                  Price depends on scope of work(6)

         2.15     For Stage 15

                                       46

<PAGE>

                  50% upon commencement of Stage 15
50% upon completion of Stage 15

2.16     For Stage 16
                  50% upon removal of an ampoule of MCB out of freeze.
                  50% upon completion of Stage 16.

Notes: see "1 Price", above, in this Schedule 3.

                                       47

<PAGE>

                                   SCHEDULE 4

                                Inhibitex Patents

1.       U.S. 6,008,341 (ClfA DNA); U.S. 6,177,084 (ClfA protein)

2.       U.S. 6,635,473 (SdrG DNA)

3.       U.S. 10/056,052 (ClfA monoclonal application)

The Inhibitex Patents also include divisional and continuation applications as
well as all corresponding international applications.

                                       48<PAGE>
                                                                    EXHIBIT 10.5

                         EXECUTIVE EMPLOYMENT AGREEMENT

                                     BETWEEN

                          EDUCATION REALTY TRUST, INC.

                                       AND

                                  PAUL O. BOWER

                                DECEMBER 6, 2004

<PAGE>

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") by and between Education
Realty Trust, Inc. (the "Company"), and Paul O. Bower ("You" or "Your")
(collectively, the "Parties"), is effective as of the date of the consummation
of the Company's initial public offering pursuant to an effective registration
statement on Form S-11 (the "Effective Date"). Unless otherwise indicated, all
capitalized terms used in this Agreement are defined in the "Definitions"
section attached as Exhibit A. Exhibit A is incorporated by reference and is
included in the definition of "Agreement."

         WHEREAS, the Company desires to employ You as President and Chief
Executive Officer, and You desire to accept said employment by the Company;

         WHEREAS, Your position is a position of trust and responsibility with
access to Confidential Information, Trade Secrets, and information concerning
employees and customers of the Company;

         WHEREAS, the Trade Secrets and Confidential Information, and the
relationship between the Company and each of its employees and customers are
valuable assets of the Company and may not be used for any purpose other than
the Company's Business;

         WHEREAS, You acknowledge that if You were to perform services for a
competitor during the Restrictive Period, it would be inevitable that You would
disclose the Company's Trade Secrets and Confidential Information;

         WHEREAS, the Company has agreed to employ You in exchange for Your
compliance with the terms of this Agreement;

         WHEREAS, the Company and You desire to express the terms and conditions
of Your employment in this Agreement.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:

         1.       Employment and Duties

                  A.       Position. The Company shall employ You as President
         and Chief Executive Officer.

                  B.       Duties. You agree to perform all duties that are
         consistent with Your position and that may otherwise be assigned to You
         by the Company from time to time.

                  C.       Reporting. You shall report directly to the Board of
         Directors (the "Board") of the Company or any other executive
         designated by the Board from time to time.

                  D.       Devotion of Time. You agree to (i) devote all
         necessary working time required of Your position, (ii) devote Your best
         efforts, skill, and energies to promote and advance the business and/or
         interests of the Company, and (iii) fully perform Your obligations
         under this Agreement. During Your employment, You shall not render
         services to any other entity, regardless of whether You receive
         compensation, without the prior written consent of the Company. You
         may, however, (i) engage in community, charitable, and educational
         activities, (ii) manage Your personal investments, (iii) continue
         working with Allen & O'Hara, Inc.,

<PAGE>

         provided, however, that such work does not compete with the Company and
         does not involve student housing whatsoever, and (iv) with the prior
         written consent of the Company, serve on corporate boards or
         committees, provided that such activities do not conflict or interfere
         with the performance of Your obligations under this Agreement or
         conflict with the interests of the Company.

                  E.       Company Policies. You agree to comply with the
         policies and procedures of the Company as may be adopted and changed
         from time to time, including those described in the Company's employee
         handbook. If this Agreement conflicts with such policies or procedures,
         this Agreement will control.

                  F.       Fiduciary Duties. As an officer of the Company, You
         owe a duty of care and loyalty to the Company, as well as a duty to
         perform Your Duties in a manner that is in the best interests of the
         Company. You owe such duties to the Company in addition to duties
         imposed upon You under applicable law.

         2.       Term. The term of this Agreement shall be for a period of 3
years, beginning on the Effective Date and ending on the third anniversary of
the Effective Date (the "Employment Period"). Upon expiration of the Employment
Period, this Agreement will automatically renew for a one-year period (each a
"Renewal Period"), unless either Party notifies the other Party, in writing, at
least sixty (60) days prior to the end of the Employment Period or the Renewal
Period that the Agreement will not be renewed. If this Agreement is renewed in
accordance with this Section, each Renewal Period shall be included in the
definition of "Employment Period" for purposes of this Agreement. If this
Agreement is not renewed in accordance with this Section, Your employment will
either (a) terminate, or (b) convert to an at-will relationship, meaning that
You may terminate your employment with the Company at any time and for any
reason whatsoever simply by notifying the Company, and the Company may terminate
your employment at any time with or without cause or advance notice. If this
Agreement is not renewed and Your employment converts to an at-will
relationship, then (a) the period in which You continue to be employed with the
Company shall not be included in the definition of "Employment Period" for
purposes of this Agreement, and (b) this Agreement will no longer be in effect;
provided, however, that the restrictive covenants and all post-termination
obligations contained in this Agreement shall survive termination of this
Agreement.

         3.       Compensation.

                  A.       Base Salary. During the Employment Period, the
         Company will pay You an annual base salary ("Base Salary") of
         $300,000.00, minus applicable withholdings, in accordance with the
         Company's normal payroll practices. Your Base Salary will be increased
         annually at the discretion of the Compensation Committee of the Board
         (the "Committee") based upon Your performance and the Company's
         performance; provided, however, that the annual increase in Your Base
         Salary shall not be less than the percentage increase in the applicable
         Consumer Price Index published by the U.S. Bureau of Labor Statistics.

                  B.       Bonus. During the Employment Period, You will receive
         an annual bonus of up to 100% of Your Base Salary only if, as
         determined by the Committee in its sole discretion, You meet certain
         criteria established from year to year by the Committee (the "Bonus").
         You will not receive any Bonus if You do not meet such criteria. In
         addition, You will not receive any Bonus if, for any reason, You are
         not employed on the date on which the Bonus is to be paid. The Bonus
         will be subject to all applicable withholdings and will be paid as soon
         as reasonably practical after the end of the calendar year.

                                       2
<PAGE>

                  C.       Restricted Stock. As soon as possible after execution
         of this Agreement, the Company will request that the Committee grant
         You 45,000 restricted shares of the Company's common stock (the
         "Restricted Stock") pursuant to the terms and conditions of the
         Restricted Stock Grant Certificate (the "Restricted Stock Certificate")
         to be prepared by the Company in accordance with the Stock Incentive
         Plan. The Restricted Stock shall vest pursuant to the terms of the
         Restricted Stock Certificate.

                  D.       Profits Interest Units. As soon as possible after
         execution of this Agreement, the Company will request that the
         Committee cause Education Realty Limited Partner LLC, a Delaware
         limited liability company controlled by the Company (the "Profits
         Interest LLC"), to grant to You Units in Profits Interest LLC that will
         result in your receiving with respect to such Units in Profits Interest
         LLC current distributions that are equivalent to those distributions
         that would be received by a holder of 30,000 Common Partnership Units
         in Education Realty Operating Partnership, LP, a Delaware limited
         partnership (the "UPREIT"), pursuant to the terms and conditions of the
         operating agreement of the Profits Interest LLC, as such agreement may
         be amended, restated and supplemented from time to time (the "Profits
         Interest LLC Agreement"). A condition to Your receipt of such interest
         in the Profits Interest LLC shall be the execution by You of the
         Profits Interest LLC Agreement.

                  E.       Benefits Plans. During the Employment Period, You are
         eligible to participate in all benefit plans in effect for executives
         and employees of the Company, subject to the terms and conditions of
         such plans.

                  F.       Vacation. During the Employment Period, You are
         entitled to 4 weeks of paid vacation per calendar year. All vacation
         must be pre-approved by the Board.

                  G.       Executive Benefits. During the Employment Period, You
         will be entitled to receive all other fringe benefits available to
         executives of the Company.

                  H.       Business Expenses. During the Employment Period, the
         Company will reimburse You for all approved business expenses incurred
         by You in the performance of Your duties under this Agreement in
         accordance with the policies and procedures of the Company.

         4.       Termination. This Agreement may be terminated by any of the
following events:

                  A.       Expiration of the Employment Period unless
         renewed/extended as set forth above.

                  B.       Mutual written agreement between You and the Company
         at any time.

                  C.       Your death.

                  D.       Your disability which renders You unable to perform
         the essential functions of Your job even with reasonable accommodation,
         as determined in the Company's sole discretion.

                  E.       For Cause, which shall mean a termination by the
         Company, upon the action of the Board, because of any one of the
         following events:

                  (i)      Your insubordination;

                  (ii)     Your breach of this Agreement;

                                       3
<PAGE>

                  (iii)    Any act or omission by You which injures, or is
                           likely to injure, the Company or the business
                           reputation of the Company;

                  (iv)     Your dishonesty, fraud, malfeasance, negligence or
                           misconduct;

                  (v)      Your failure to (a) satisfactorily perform Your
                           duties under this Agreement, (b) follow the direction
                           of any individual to whom You report, (c) abide by
                           the policies, procedures, and rules of the Company,
                           or (d) abide by laws applicable to You in Your
                           capacity as an employee, executive, or officer of the
                           Company;

                  (vi)     Your arrest, indictment for, conviction of, or entry
                           of a plea of guilty or no contest to, a felony or
                           crime involving moral turpitude;

                  (vii)    Your resignation unless such resignation is based
                           upon Good Reason; or

                  (viii)   Your refusal to perform duties unless such refusal is
                           based upon Good Reason.

                  F.       Your resignation for Good Reason.

                  G.       Without Cause, which shall mean any termination of
         employment by the Company which is not defined in sub-sections A-F
         above.

         5.       Company's Post-Termination Obligations

                  A.       If this Agreement terminates for the reasons set
         forth in Sections 4.A, B, C, D, or E above, then the Company will pay
         You all accrued but unpaid wages, based on Your then current Base
         Salary, through the termination date. The Company shall have no other
         obligations to You, including under any provision of this Agreement,
         Company policy, or otherwise; however, You shall continue to be bound
         by Section 7 and all other post-termination obligations to which You
         are subject, including, but not limited to, the obligations contained
         in this Agreement.

                  B.       If this Agreement terminates for any of the reasons
         set forth in Sections 4.F or G above, then the Company will pay You (i)
         all accrued but unpaid wages through the termination date, based on
         Your then current Base Salary; (ii) a payment for all accrued but
         unpaid vacation through Your termination date, based on Your then
         current Base Salary; (iii) a payment for all approved, but
         unreimbursed, business expenses, provided that a request for
         reimbursement of business expenses is submitted in accordance with the
         Company's policies and submitted within five (5) business days of Your
         termination date; (iv) a payment for all earned and accrued but unpaid
         bonuses; and (v) payment of any COBRA continuation coverage premiums
         required for the coverage of You and Your eligible dependents under the
         Company's major medical group health plan for a period of up to 18
         months (or, if less, the period that You and Your eligible dependents
         are entitled to such COBRA continuation coverage).(1) In addition, the
         Company will continue to pay You Your then current Base Salary for
         either the remainder of the initial Employment Period (excluding any
         Renewal Period), to be paid in accordance with the Company's regular
         payroll practices, or for a period of twelve (12) months, to be paid
         over a period of 12 months in accordance with the Company's regular
         payroll practices, whichever is

------------------
         (1) You and Your eligible dependents shall be solely responsible for
any requirements which must be satisfied or actions that must be taken in order
to obtain such COBRA continuation coverage other than the payment of COBRA
premiums.

                                       4
<PAGE>

         greater. Except as set forth in this Section 5.B, the Company shall
         have no other obligations to You. The Company's obligation to provide
         the payments set forth in this Section 5.B above shall be conditioned
         upon the following (the "Separation Conditions"):

                  (i)      Your execution and non-revocation of a Separation &
                           Release Agreement in a form prepared by the Company
                           by which You release the Company from any and all
                           liability and claims of any kind; and

                  (ii)     Your compliance with the restrictive covenants
                           (Section 7) and all post-termination obligations,
                           including, but not limited, the obligations contained
                           in this Agreement.

                  C.       If You do not execute an effective Separation &
         Release Agreement as set forth above, the Company will not provide any
         payments or benefits to You under Section 5.B. The Company's obligation
         to make the separation payments set forth in Section 5.B shall
         terminate immediately upon any breach by You of any post-termination
         obligations to which You are subject.

         6.     Change of Control. Notwithstanding the provisions of Section 5,
if, within one (1) year following a Change of Control, the Company terminates
Your employment without Cause, as defined in Section 4.G, or You resign for Good
Reason, then the Company will pay You (i) all accrued but unpaid wages through
the termination date, based on Your then current Base Salary; (ii) a separation
payment equal to 3x the sum of (A) Your then current Base Salary, and (B) Your
average Bonus for the two (2) year period prior to Change of Control or the time
period within which the Company was in existence prior to Change of Control,
whichever is shorter, which separation payment shall be paid within thirty (30)
days of Your termination date; (iii) a payment for all earned and accrued but
unpaid bonuses; and (iv) payment of any COBRA continuation coverage premiums
required for the coverage of You and Your eligible dependents under the
Company's major medical group health plan for a period of up to 18 months (or,
if less, the period that You and Your eligible dependents are entitled to such
COBRA continuation coverage).(2) The payments and benefits set forth in this
Section 6 shall be provided to You in lieu of any benefits to which You may be
entitled to receive under Section 5.B above; provided, however, that Your right
to receive the separation payments and benefits set forth in this Section 6
shall be subject to the Separation Conditions set forth in Section 5.B above.
The separation payments and benefits set forth in this Section 6 shall
constitute full satisfaction of the Company's obligations under this Agreement,
any Company policy, or otherwise.

         7.       Your Post-Termination Obligations.

                  A.       Return of Materials. Upon the termination of Your
         employment for any reason, You will return to the Company all of the
         Company's property, including, but not limited to, keys, passcards,
         credit cards, customer lists, rolodexes, tapes, software, computer
         files, marketing and sales materials, and any other property, record,
         document or piece of equipment belonging to the Company.

                  B.       Set-Off. If You have any outstanding obligations to
         the Company upon the termination of Your employment for any reason, You
         hereby authorize the Company to deduct any amounts owed to the Company
         from Your final paycheck and/or any amounts that would otherwise be due
         to You, including under Sections 5 or 6 above.

------------------
         (2)  Id.

                                       5
<PAGE>

                  C.       Non-Disparagement. During Your employment and upon
         the termination of Your employment with the Company for any reason, You
         will not make any disparaging or defamatory statements, whether written
         or verbal, regarding the Company.

                  D.       Restrictive Covenants. You acknowledge that the
         restrictions contained in this Section 7 are reasonable and necessary
         to protect the legitimate business interests of the Company, and will
         not impair or infringe upon Your right to work or earn a living after
         Your employment with the Company ends.

                  (i)      Trade Secrets and Confidential Information. You
                           represent and warrant that: (a) You are not subject
                           to any legal or contractual duty or agreement that
                           would prevent or prohibit You from performing the
                           duties contemplated by this Agreement or otherwise
                           complying with this Agreement, and (b) You are not in
                           breach of any legal or contractual duty or agreement,
                           including any agreement concerning trade secrets or
                           confidential information owned by any other party.

                           You agree that You will not: (a) use, disclose, or
                           reverse engineer the Trade Secrets or the
                           Confidential Information for any purpose other than
                           the Company's Business, except as authorized in
                           writing by the Company; (b) during Your employment
                           with the Company, use, disclose, or reverse engineer
                           (1) any confidential information or trade secrets of
                           any former employer or third party, or (2) any works
                           of authorship developed in whole or in part by You
                           during any former employment or for any other party,
                           unless authorized in writing by the former employer
                           or third party; or (c) upon Your resignation or
                           termination (1) retain Trade Secrets or Confidential
                           Information, including any copies existing in any
                           form (including electronic form), which are in Your
                           possession or control, or (2) destroy, delete, or
                           alter the Trade Secrets or Confidential Information
                           without the Company's written consent.

                           The obligations under this Section 7 shall remain in
                           effect as long as the information constitutes a trade
                           secret or Confidential Information under applicable
                           law. The confidentiality, property, and proprietary
                           rights protections available in this Agreement are in
                           addition to, and not exclusive of, any and all other
                           rights to which the Company is entitled under federal
                           and state law, including, but not limited to, rights
                           provided under copyright laws, trade secret and
                           confidential information laws, and laws concerning
                           fiduciary duties.

                  (ii)     Non-Competition. During the Restricted Period, You
                           agree that You shall not perform the Duties,
                           individually or on behalf of any person, firm,
                           partnership, association, business organization,
                           corporation or entity engaged in the Business within
                           the Territory. The Parties agree and acknowledge
                           that: (a) the periods of restriction and Territory of
                           restriction contained in this Agreement are fair and
                           reasonable in that they are reasonably required for
                           the protection of the Company and that the Territory
                           is the area in which You perform services for
                           Company; and (b) by having access to information
                           concerning employees and actual or prospective
                           Customers of Company, You shall obtain a competitive
                           advantage as to the Company.

                  (iii)    Non-Solicitation of Customers. During the Restricted
                           Period, You will not, directly or indirectly, solicit
                           any Customer of the Company for the purpose of
                           providing any goods or services competitive with the
                           Business within the

                                       6
<PAGE>

                           Territory. The restrictions set forth in this Section
                           7 apply only to the Customers with whom You had
                           Contact.

                  (iv)     Non-Recruit of Employees. During the Restricted
                           Period, You will not, directly or indirectly,
                           solicit, recruit or induce any Employee to (a)
                           terminate his or her employment relationship with the
                           Company or (b) work for any other person or entity
                           engaged in the Business.

                  E.       Post-Employment Disclosure. During the Restricted
         Period, You shall provide a copy of this Agreement to persons and/or
         entities for whom You work or consult as an owner, partner, joint
         venturer, employee or independent contractor. If, during the Restricted
         Period, You work or consult for another person or entity as an owner,
         partner, joint venturer, employee or independent contractor, You shall
         provide the Company with such person or entity's name, the nature of
         such person or entity's business, Your job title, and a general
         description of the services You will provide.

                  F.       Resignation. Upon the termination of Your employment
         with the Company for any reason and upon the request of the Company,
         You shall deliver to the Company a written resignation from all
         offices, membership on the Board, and fiduciary positions in which You
         serve for the Company and each of its subsidiaries and affiliates.

         8.       Work Product. Your employment duties may include inventing in
areas directly or indirectly related to the Business of the Company or to a line
of business that the Company may reasonably be interested in pursuing. All Work
Product shall constitute work made for hire. If (a) any of the Work Product may
not be considered work made for hire, or (b) ownership of all right, title, and
interest to the legal rights in and to the Work Product will not vest
exclusively in the Company, then, without further consideration, You assign all
presently-existing Work Product to the Company, and agree to assign, and
automatically assign, all future Work Product to the Company.

         The Company will have the right to obtain, and hold in its own name,
copyrights, patents, design registrations, proprietary database rights,
trademarks, rights of publicity, and any other protection available in the Work
Product. At the Company's request, You agree to perform, during or after Your
employment with the Company, any acts to transfer, perfect and defend the
Company's ownership of the Work Product, including, but not limited to: (a)
executing all documents (including a formal assignment to the Company) necessary
for filing an application or registration for protection of the Work Product (an
"Application"), (b) explaining the nature of the Work Product to persons
designated by the Company, (c) reviewing Applications and other related papers,
or (d) providing any other assistance reasonably required for the orderly
prosecution of Applications.

         You agree to provide the Company with a written description of any Work
Product in which You are involved (solely or jointly with others) and the
circumstances attendant to the creation sufficient of such Work Product.

         9.       License. During Your employment and after Your employment
with the Company ends, You grant to the Company an irrevocable, nonexclusive,
worldwide, royalty-free license to: (i) make, use, sell, copy, perform, display,
distribute, or otherwise utilize copies of the Licensed Materials, (ii) prepare,
use and distribute derivative works based upon the Licensed Materials, and (ii)
authorize others to do the same. You shall notify the Company in writing of any
Licensed Materials You deliver to the Company.

                                       7
<PAGE>

         10.      Release. During Your employment and after Your employment with
the Company ends, You consent to the Company's use of Your image, likeness,
voice, or other characteristics in the Company's products or services. You
release the Company from any causes of action that You have or may have arising
out of the use, distribution, adaptation, reproduction, broadcast, or exhibition
of such characteristics.

         11.      Injunctive Relief. You agree that if You breach Section 7 of
this Agreement: (a) the Company would suffer irreparable harm; (b) it would be
difficult to determine damages, and money damages alone would be an inadequate
remedy for the injuries suffered by the Company, and (c) if the Company seeks
injunctive relief to enforce this Agreement, You will waive and will not (i)
assert any defense that the Company has an adequate remedy at law with respect
to the breach, (ii) require that the Company submit proof of the economic value
of any Trade Secret or Confidential Information, or (iii) require the Company to
post a bond or any other security. Nothing contained in this Agreement shall
limit the Company's right to any other remedies at law or in equity.

         12.      Payment of Defense Costs. If You are individually named as a
defendant in a lawsuit relating to or arising out of the performance of Your
duties for the Company pursuant to this Agreement, then the Company agrees to
pay the reasonable attorneys' fees and expenses You incur in defending such
lawsuit (the "Defense Costs"). The Company will not pay any damages or any other
sums or relief for which You are held liable. Payment of the Defense Costs shall
be the Company's only obligation under this Section. If You are held liable,
then You agree to reimburse the Company for all Defense Costs the Company paid
to You or on Your behalf. The Company's obligation under this Section shall not
apply to any claim or lawsuit brought by the Company against You.

         13.      Severability. The provisions of this Agreement are severable.
If any provision of this Agreement is determined to be unenforceable, in whole
or in part, then such provision shall be modified so as to be enforceable to the
maximum extent permitted by law. If such provision cannot be modified to be
enforceable, the provision shall be severed from this Agreement to the extent
unenforceable. The remaining provisions and any partially enforceable provisions
shall remain in full force and effect.

         14.      Attorneys' Fees. In the event of litigation relating to this
Agreement, the prevailing party shall be entitled to recover attorneys' fees and
costs of litigation in addition to all other remedies available at law or in
equity.

         15.      Waiver. Either Party's failure to enforce any provision of
this Agreement shall not act as a waiver of that or any other provision. Either
Party's waiver of any breach of this Agreement shall not act as a waiver of any
other breach.

         16.      Entire Agreement. This Agreement, including Exhibit A that is
incorporated by reference, constitutes the entire agreement between the Parties
concerning the subject matter of this Agreement. This Agreement supersedes any
prior communications, agreements or understandings, whether oral or written,
between the Parties relating to the subject matter of this Agreement. Other than
terms of this Agreement, no other representation, promise or agreement has been
made with You to cause You to sign this Agreement.

         17.      Amendments. This Agreement may not be amended or modified
except in writing signed by both Parties.

         18.      Successors and Assigns. This Agreement shall be assignable to,
and shall inure to the benefit of, the Company's successors and assigns,
including, without limitation, successors through merger, name change,
consolidation, or sale of a majority of the Company's stock or assets, and shall
be

                                       8
<PAGE>

binding upon You. You shall not have the right to assign Your rights or
obligations under this Agreement. The covenants contained in Section 7 of this
Agreement shall survive cessation of Your employment with the Company,
regardless of who causes the cessation or the reason for cessation.

         19.      Governing Law. The laws of the State of Tennessee shall govern
this Agreement. If Tennessee's conflict of law rules would apply another state's
laws, the Parties agree that Tennessee law shall still govern.

         20.      No Strict Construction. If there is a dispute about the
language of this Agreement, the fact that one Party drafted the Agreement shall
not be used in its interpretation.

         21.      Notice.  Whenever any notice is required, it shall be given
in writing addressed as follows:

         To Company:                Attention: Chief Financial Officer
                                    Education Realty Trust, Inc.
                                    530 Oak Court Drive
                                    Suite 300
                                    Memphis, TN 38117

         To Executive:              Paul O. Bower
                                    9200 Rocky Cannon Road
                                    Cordova, Tennessee 38018

         Notice shall be deemed given and effective three (3) days after the
deposit in the U.S. mail of a writing addressed as above and sent first class
mail, certified, return receipt requested, or when actually received. Either
Party may change the address to which notices shall be delivered or mailed by
notifying the other party of such change in accordance with this Section.

         22.      Consent to Jurisdiction and Venue. You agree that any claim
arising out of or relating to this Agreement shall be brought in a state or
federal court of competent jurisdiction in Tennessee. You consent to the
personal jurisdiction of the state and/or federal courts located in Tennessee.
You waive (i) any objection to jurisdiction or venue, or (ii) any defense
claiming lack of jurisdiction or improper venue, in any action brought in such
courts.

         23.      AFFIRMATION. YOU acknowledge that YOU HAVE carefully read this
Agreement, YOU know and understand its terms and conditions, and YOU HAVE had
the opportunity to ask the Company any questions YOU may have had prior to
signing this Agreement.

         24.      Compliance with Code ss.409A. Notwithstanding any provision of
this Agreement to the contrary, it is the intent of the parties hereto that this
Agreement shall not create or provide for any "nonqualified deferred
compensation plan" (as defined in Code ss.409A(d)(1)) unless such "nonqualified
deferred compensation plan" shall meet the requirements of Code ss.409A(a)(2),
(3) and (4), and this Agreement and any plans, agreements or arrangements
between the parties shall be interpreted accordingly. If any "nonqualified
deferred compensation plan" created or provided for pursuant to this Agreement
shall fail to meet the requirements of Code ss.409A(a)(2), (3) or (4) due to a
term or provision of such "nonqualified deferred compensation plan" prior to
taking into account the provisions of this paragraph 24, such "nonqualified
deferred compensation plan" and its corresponding terms or provisions causing
such failure shall be deemed to be modified and shall be interpreted (1) so as
not to allow any distributions or payments to be made until one of the events
listed in Code ss.409A(a)(2)(A) have occurred,

                                       9
<PAGE>

(2) so as not to allow any acceleration of the time or schedule of any payment
or distribution in accordance with Code ss.409A(a)(3), and (3) so that any
elections regarding deferrals, or the timing or form of distributions or
payments, shall comply with the provisions of Code ss.409A(a)(4). For example,
should this Agreement provide for a payment from a "nonqualified deferred
compensation plan" earlier than the occurrence of an event listed in Code
ss.409A(a)(2)(A), such payment shall not occur until the occurrence of an event
listed in Code ss.409A(a)(2)(A) notwithstanding any terms or provisions of any
document effectuating such "nonqualified deferred compensation plan" to the
contrary, and this Agreement shall be deemed to be modified accordingly.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       10
<PAGE>

         IN WITNESS WHEREOF, the Parties hereto have executed this Agreement
effective as of the Effective Date.

                            EDUCATION REALTY TRUST, INC.:

                            By: /s/ RANDALL H. BROWN
                               ------------------------------------------------

                                 Name: Randall H. Brown
                                       ----------------------------------------

                                 Title: Executive Vice President/
                                        Chief Financial Officer
                                       ----------------------------------------

                            Date: 12/6/04
                                 ----------------------------------------------

                            PAUL O. BOWER:

                            /s/ PAUL O. BOWER
                            ---------------------------------------------------

                            Date: 12/6/04
                                 ----------------------------------------------

                                       11
<PAGE>

                                    EXHIBIT A

                                   DEFINITIONS

A.       "Business" shall mean the business of owning and managing off-campus
         student housing communities, providing third-party management services
         for student housing communities, and providing third-party development
         consulting services for student housing communities.

B.       "Change of Control" means (i) the sale, transfer, or other disposition
         of eighty percent (80%) or more of the aggregate value of the Company's
         assets, as reasonably determined by the Board, or (ii) a sale of fifty
         percent (50%) or more of the then outstanding voting stock of the
         Company in a single transaction or a series of related transactions.

C.       "Confidential Information" means (i) information of the Company, to the
         extent not considered a Trade Secret under applicable law, that (a)
         relates to the business of the Company, (b) possesses an element of
         value to the Company, (c) is not generally known to the Company's
         competitors, and (d) would damage the Company if disclosed, and (ii)
         information of any third party provided to the Company which the
         Company is obligated to treat as confidential. Confidential Information
         includes, but is not limited to, (i) future business plans, (ii) the
         composition, description, schematic or design of products, future
         products or equipment of the Company, (iii) communication systems,
         audio systems, system designs and related documentation, (iv)
         advertising or marketing plans, (v) information regarding independent
         contractors, employees, clients and customers of the Company, and (vi)
         information concerning the Company's financial structure and methods
         and procedures of operation. Confidential Information shall not include
         any information that (i) is or becomes generally available to the
         public other than as a result of an unauthorized disclosure, (ii) has
         been independently developed and disclosed by others without violating
         this Agreement or the legal rights of any party, or (iii) otherwise
         enters the public domain through lawful means.

D.       "Contact" means any interaction between You and a Customer which (i)
         takes place in an effort to establish, maintain, and/or further a
         business relationship on behalf of the Company, and (ii) occurs during
         the last year of Your employment with the Company (or during Your
         employment if employed less than a year).

E.       "Customer" means any person or entity to whom the Company has sold its
         products or services, or solicited to sell its products or services.

F.       "Duties" means managing the day-to-day operations of the Company, which
         includes, but is not limited to, the usual and customary duties of a
         President and Chief Executive Officer of a public corporation.

G.       "Employee" means any person who (i) is employed by the Company at the
         time Your employment with the Company ends, (ii) was employed by the
         Company during the last year of Your employment with the Company (or
         during Your employment if employed less than a year), or (iii) is
         employed by the Company during the Restricted Period.

H.       "Good Reason" shall exist if (i) the Company, without Your written
         consent, materially reduces Your then current title, duties or
         responsibilities, provided, however, that the occurrence of the Change
         of Control and the corresponding change in Your duties and
         responsibilities one (1) or more year(s) after the Change of Control
         shall not, by itself, be sufficient to qualify as Good Reason under
         this clause, (ii) You provide written notice to the Company of such
         action and

<PAGE>

         provide the Company with thirty (30) days to remedy such action (the
         "Cure Period"), (iii) the Company fails to remedy such action within
         the Cure Period, and (iv) You resign within ten (10) days of the
         expiration of the Cure Period. Good Reason shall not include any
         isolated, insubstantial or inadvertent action that (i) is not taken in
         bad faith, and (ii) is remedied by the Company within the Cure Period.

I.       "Licensed Materials" means any materials that You utilize for the
         benefit of the Company, or deliver to the Company or the Company's
         customers, which (i) do not constitute Work Product, (ii) are created
         by You or of which You are otherwise in lawful possession, and (iii)
         You may lawfully utilize for the benefit of, or distribute to, the
         Company or the Company's customers.

J.       "Restricted Period" means the time period during Your employment with
         the Company, and for three years after Your employment with the Company
         ends.

K.       "Territory" means the states of Alabama, Arizona, California, Colorado,
         Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Maryland,
         Michigan, Missouri, Mississippi, North Carolina, Ohio, Oklahoma,
         Pennsylvania, South Carolina, Tennessee and Texas.

L.       "Trade Secrets" means information of the Company, and its licensors,
         suppliers, clients and customers, without regard to form, including,
         but not limited to, technical or nontechnical data, a formula, a
         pattern, a compilation, a program, a device, a method, a technique, a
         drawing, a process, financial data, financial plans, product plans, or
         a list of actual or potential customers or suppliers which is not
         commonly known by or available to the public and which information (i)
         derives economic value, actual or potential, from not being generally
         known to, and not being readily ascertainable by proper means by, other
         persons who can obtain economic value from its disclosure or use, and
         (ii) is the subject of efforts that are reasonable under the
         circumstances to maintain its secrecy.

M.       "Work Product" means (i) any data, databases, materials, documentation,
         computer programs, inventions (whether or not patentable), designs,
         and/or works of authorship, including but not limited to, discoveries,
         ideas, concepts, properties, formulas, compositions, methods, programs,
         procedures, systems, techniques, products, improvements, innovations,
         writings, pictures, audio, video, images of You, and artistic works,
         and (ii) any subject matter protected under patent, copyright,
         proprietary database, trademark, trade secret, rights of publicity,
         confidential information, or other property rights, including all
         worldwide rights therein, that is or was conceived, created or
         developed in whole or in part by You while employed by the Company and
         that either (i) is created within the scope of Your employment, (ii) is
         based on, results from, or is suggested by any work performed within
         the scope of Your employment and is directly or indirectly related to
         the Business of the Company or a line of business that the Company may
         reasonably be interested in pursuing, (iii) has been or will be paid
         for by the Company, or (iv) was created or improved in whole or in part
         by using the Company's time, resources, data, facilities, or equipment.

                                        2

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