Document:

<PAGE>

                                                                   EXHIBIT 10.25

                           LEASE TERMINATION AGREEMENT

         This LEASE TERMINATION AGREEMENT (this "Agreement") is dated effective
October 31, 2002, by and between BRUCE H. CARTER, AN INDIVIDUAL AND KEITH M.
CARTER, AN INDIVIDUAL, succesors in interest to the Clint S. Carter and Esther
Carter Family Trust ("Landlord") and INTRABIOTICS PHARMACEUTICALS, INC., a
Delaware corporation ("Tenant").

                                    RECITALS

         A.       Landlord and Tenant entered into that certain Lease Standard
Industrial/Commercial Single Tenant Lease dated July 31, 1998 (the "Lease") for
premises located at 1255 Terra Bella Avenue, Mountain View (the "Premises"),
comprised of approximately 18,000 rentable square feet; and

         B.       Landlord and Tenant now desire to amend and terminate the
Lease according to the terms and conditions set forth herein. Capitalized terms
used in this Agreement and not otherwise defined shall have the meanings
assigned to them in the Lease.

                                    AGREEMENT

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

         1.       EXPIRATION AND TERMINATION OF LEASE. Notwithstanding anything
in the Lease to the contrary, and conditioned on satisfaction or waiver of each
of the conditions precedent set forth in Paragraph 2 below, the Lease is hereby
amended to change the expiration date of the Lease to October 31, 2002, which
shall now be referred to as the "Termination Date." As of 5:00 p.m. PST on the
Termination Date, Landlord and Tenant shall be released from each and all of
their respective obligations (past, present and future) under the Lease, such
that the Lease shall have no further binding effect or force.

         2.       CONDITIONS PRECEDENT. Each of the following shall have
occurred, as a condition precedent to the effectiveness of this Agreement:

                  2.1      SUBLEASE AGREEMENT. Tenant shall have entered into an
agreement with ReShape, Inc. terminating the Sublease dated August 22, 2001
between ReShape and Tenant relating to the Premises and providing for a sublease
of to Tenant of a portion of the Premises, on terms agreeable to ReShape and
Tenant (the "Sublease Agreement"). The date of execution of the Sublease
Agreement shall be referred to as the "Closing Date."

                  2.2      CONSIDERATION. On the Closing Date, Tenant shall
surrender to Landlord the Security Deposit provided for in the Lease, consisting
of cash in the amount of $41,040 and a letter of credit in the amount of
$175,500. From and after Closing Date, Landlord shall be entitled to negotiate
the letter of credit and shall retain all rights to the proceeds thereof.

                                       1.

<PAGE>

                  2.3      FURNITURE. On the Closing Date, Tenant shall sell and
deliver to Landlord all rights in and to the personal property of Tenant
currently located in the Premises (the "Furniture") and Tenant shall deliver to
Landlord a Bill of Sale substantially in the form of Exhibit "A" hereto
transferring title to the Furniture to Landlord.

                  2.4      SURRENDER OF PREMISES. Notwithstanding anything to
the contrary contained in the Lease, on the Closing Date, Tenant shall surrender
the Premises in its current condition on the Termination Date.

         3.       FULL RELEASE. Conditioned on satisfaction or waiver of each of
the conditions precedent set forth in Paragraph 2, each of the parties signing
below on behalf of itself and its employees, officers, directors, agents,
predecessors, successors, parents, subsidiaries, affiliates, and all others
hereby fully releases and discharges the other party and the other party's
employees, officers, directors, agents, predecessors, successors, parents,
subsidiaries, affiliates, and all others from any and all claims and demands of
every kind and nature, known and unknown, suspected and unsuspected, disclosed
and undisclosed, for any damages or other remedy whatsoever, arising out of or
in any way related to the Lease. Each party acknowledges and agrees that the
release it gives to the other party upon executing this Agreement applies to all
claims for injuries, damages, or losses to his own person and property, real or
personal (whether those injuries, damages, or losses are known or unknown,
foreseen or unforeseen, patent or latent) which it may have against the other
party. Each party waives application of California Civil Code Section 1542.

         Each party certifies that it has read the following provisions of
California Civil Code Sections 1542:

                  "A general release does not extend to claims which the
                  creditor does not know or suspect to exist in his favor at the
                  time of executing the release, which if known by him must have
                  materially affected his settlement with the debtor."

and indicates that fact by signing here:

                                                /s/ E.B.    [initials]
                                               -----------------------
                                                /s/ B.H.C.  [initials]
                                               -----------------------
                                                /s/ K.M.C. [initials]
                                               -----------------------

         4.       MISCELLANEOUS.

                  4.1      VOLUNTARY AGREEMENT. The parties have read this
Agreement and the mutual releases contained in it, and on the advice of counsel
they have freely and voluntarily entered into this Agreement.

                  4.2      ENTIRE AGREEMENT. This Agreement contains the entire
understanding of the parties with respect to the subject matters covered hereby
and may be modified only by a written instrument signed by the party against
whom enforcement of any modification is sought. Landlord and Tenant intend that,
to the maximum extent possible, invalidity or unenforceability of any provision
of this Agreement will not affect any other provision hereof.

                                       2.

<PAGE>

                  4.3      ATTORNEY'S FEES. If either party commences an action
against the other party arising out of or in connection with this Agreement, the
prevailing party shall be entitled to recover from the losing party reasonable
attorney's fees and costs of suit.

                  4.4      SUCCESSORS. This Agreement shall be binding on and
inure to the benefit of the parties and their successors.

                  4.5      COUNTERPARTS. This Agreement may be signed in two or
more counterparts. When at least one such counterpart has been signed by each
party, this Agreement shall be deemed to have been fully executed, each
counterpart shall be deemed to be an original, and all counterparts shall be
deemed to be one and the same agreement.

         IN WITNESS WHEREOF, Landlord and Tenant have executed this Agreement as
of the date first written above.

                                     LANDLORD:

                                       /s/ Bruce H. Carter
                                     ----------------------------------
                                     Bruce H. Carter

                                       /s/ Keith M. Carter
                                     ----------------------------------
                                     Keith M. Carter

                                     TENANT:

                                     IntraBiotics Pharmaceuticals, Inc.
                                     a Delaware corporation

                                     By: /s/ Eric Bjerkholt
                                        --------------------------------
                                     Name:   Eric Bjerkholt
                                     Title:  SVP & CFO

                                       3.

<PAGE>

                                    Exhibit A

                                  BILL OF SALE

         For the sum good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, INTRABIOTICS PHARMACEUTICALS, a
Delaware corporation ("Seller"), hereby bargains, sells, assigns, transfers and
delivers to BRUCE H. CARTER AND KEITH M. CARTER ("Purchaser") all of Seller's
right, title and interest in and to the property described on Exhibit 1 attached
hereto (the "Property").

         SELLER IS SELLING THE PROPERTY ON AN "AS IS, WHERE IS" BASIS AND SELLER
DISCLAIMS ALL WARRANTIES, REPRESENTATIONS AND GUARANTIES WHETHER EXPRESS OR
IMPLIED. SELLER MAKES NO REPRESENTATION OR WARRANTY AS TO MERCHANTABILITY OR
FITNESS FOR ANY PARTICULAR PURPOSE AND NO IMPLIED WARRANTIES WHATSOEVER.

         TO HAVE AND TO HOLD all and singular the Property unto Purchaser, its
successors, heirs, executors, administrators and assigns to their own proper use
and benefit, forever.

         IN WITNESS WHEREOF, this Bill of Sale has been executed as of October
31, 2002.

                                  SELLER:

                                  INTRABIOTICS PHARMACEUTICALS, INC.

                                  By: /s/ Eric Bjerkholt
                                     -------------------------------
                                  Title:  SVP & CFO

                                  PURCHASER:

                                    /s/ Bruce H. Carter
                                  ----------------------------------
                                  Bruce H. Carter

                                    /s/ Keith M. Carter
                                  ----------------------------------
                                  Keith M. Carter

                                       4.

<PAGE>

                                    EXHIBIT 1

                                    PROPERTY

<TABLE>
<CAPTION>
COUNT                                                   DESCRIPTION
-----                                                   -----------
<S>                                                     <C>
</TABLE>

                                       5.

<PAGE>

MISCELLANEOUS FURNITURE

<TABLE>
<CAPTION>
QTY.                                       DESCRIPTION                                       P.O.
-------------------------------------------------------------------------------------------------
<S>    <C>                      <C>             <C>                   <C>                   <C>
40     plastic chair            Jaz             Amber                 yellow                3973
-------------------------------------------------------------------------------------------------
40     plastic chair            Jaz             lilac                 Purple                3973
-------------------------------------------------------------------------------------------------
20     plastic chair            Jaz             smoke                 gray                  3973
-------------------------------------------------------------------------------------------------
4      chair dollies                                                                        3973
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
9      rectangular table        60"W x 24"D     Haworth 500           dk. gray/gray
-------------------------------------------------------------------------------------------------
1      table dollies
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
2      ractrack table           120"W x 42"D    Haworth 500           dk. gray/gray
-------------------------------------------------------------------------------------------------
1      ractrack table           120"W x 42"D    Haworth 500           dk. green/dk. gray
-------------------------------------------------------------------------------------------------
24     task chair, adjustable   Interval                              Haworth
-------------------------------------------------------------------------------------------------
20     task chair, adjustable   Interval                              Haworth
-------------------------------------------------------------------------------------------------
28     task chair, adjustable   Interval        maroon, w/o arms      Haworth
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
4      lobby lounge chair       Royale          Maharam Block Party   Plantation            4022
-------------------------------------------------------------------------------------------------
1      ocassional table         Round, 20"H                                                 4062
-------------------------------------------------------------------------------------------------
1      ocassional table         oval, 16"H                                                  4062
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
1      sofa                     77"W x 31"D     grn. Leather          Milano                4063
-------------------------------------------------------------------------------------------------
2      side chair               33"W x 31"D     grn. Leather          Milano                4063
-------------------------------------------------------------------------------------------------
2      side chair               33"W x 31"D     fabric, Pesto         Milano                4063
-------------------------------------------------------------------------------------------------
1      ocassional table         18"W x 22"H     Galerie               Haworth               4079
-------------------------------------------------------------------------------------------------
1      ocassional table         26"W x 16"H     Galerie               Haworth               4079
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
1      lateral file cabinet     2-dwr., 42"W    locking               Haworth                ?
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
1      lg. conference table     168"W x 48"D    semi-circ. Bases
-------------------------------------------------------------------------------------------------
1      credenza                 26"D x 60"W     4-dwr., cabinet,
                                                open.
-------------------------------------------------------------------------------------------------
2      rectangular table        60"W x 18"D     Hawroth 500           Haworth
-------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------
5      3-shelf bookcase         36"W            beige                 Haworth                ?
-------------------------------------------------------------------------------------------------
13     4-shelf bookcase         36"W            beige                 Haworth                ?
-------------------------------------------------------------------------------------------------
1      5-shelf bookcase         36"W            beige                 Haworth                ?
-------------------------------------------------------------------------------------------------
</TABLE>

                                       6.

<PAGE>

30 - SINGLE OCCUPANT WORKSTATIONS, APPROX. 8' X 10', TYPICAL - HAWORTH PREMIS
PRODUCT: FABRIC: TATAMI; COLOR: SAFFRON; WORKSURFACE, PAINT, TOP CAP, KICK BASE,
WALL TRACK: BEIGE

<TABLE>
<CAPTION>
QTY.                                DESCRIPTION                             P.O.
--------------------------------------------------------------------------------
<S>       <C>                       <C>              <C>         <C>        <C>
30        worksurface               30" x 60"        D-Top       Haworth    3919
--------------------------------------------------------------------------------
30        worksurface               24" x 36"        bridge      Haworth    3919
--------------------------------------------------------------------------------
30        worksurface               30" x 96"        regular     Haworth    3919
--------------------------------------------------------------------------------
30        make-a-corner (MAC)                                    Haworth    3919
--------------------------------------------------------------------------------
60        tackboard                 48" W                        Haworth    3919
--------------------------------------------------------------------------------
60        task light                48" W                        Haworth    3919
--------------------------------------------------------------------------------
30        overhead shelf            48" W                        Haworth    3919
--------------------------------------------------------------------------------
30        overhead stg.             48" W            locking     Haworth    3919
--------------------------------------------------------------------------------
30        lateral file cabinet      2-dwr., 42" W    locking     Haworth    3919
--------------------------------------------------------------------------------
30        fixed ped. cabinet        6"/6"/12"        locking     Haworth    3919
--------------------------------------------------------------------------------
30        task chair, adjustable    Interval         Bayou       Haworth    3919
--------------------------------------------------------------------------------
30        side chair                Improv           stacking    Haworth    3919
--------------------------------------------------------------------------------
asst'     hdwr.                                                  Haworth    3919
d
--------------------------------------------------------------------------------
asst'     fabric panel              64" H                        Haworth    3919
d
--------------------------------------------------------------------------------
</TABLE>

1 - SINGLE OCCUPANT RECEPTION WORKSTATION, APPROX. 8' X 9', TYPICAL - HAWORTH
PREMIS PRODUCT: FABRIC: TATAMI; COLOR: SAFFRON; WORKSURFACE, PAINT, TOP CAP,
KICK BASE, WALL TRACK: BEIGE

<TABLE>
<CAPTION>
QTY.                                 DESCRIPTION                              P.O.
----------------------------------------------------------------------------------
<S>      <C>                       <C>              <C>            <C>        <C>
1        worksurface               24" x 72"        regular        Haworth    3917
----------------------------------------------------------------------------------
2        worksurface               30" x 48"        regular        Haworth    3917
----------------------------------------------------------------------------------
1        worksurface               12" x 72"        transaction    Haworth    3917
----------------------------------------------------------------------------------
1        make-a-corner (MAC)                                       Haworth    3917
----------------------------------------------------------------------------------
1        lateral file cabinet      2-dwr., 42" W    locking        Haworth    3917
----------------------------------------------------------------------------------
1        task chair, adjustable    Interval         bayou          Haworth    3917
----------------------------------------------------------------------------------
asst.    hdwr.                                                     Haworth    3917
----------------------------------------------------------------------------------
7        asst'd. fabric panel      42" H                           Haworth    3917
----------------------------------------------------------------------------------
</TABLE>

                                       7.<PAGE>

                                                                   EXHIBIT 10.26

                   SUBLEASE TERMINATION AGREEMENT AND SUBLEASE

         This SUBLEASE TERMINATION AGREEMENT AND SUBLEASE (this "Agreement") is
dated as of October 31, 2002, by and between INTRABIOTICS PHARMACEUTICALS, INC.
a Delaware corporation ("IntraBiotics") and RESHAPE, INC., a California
corporation ("ReShape").

                                    RECITALS

         A.       IntraBiotics currently leases premises located at 1255 Terra
Bella Avenue, Mountain View, Santa Clara, CA (the "Premises"), comprised of
approximately 18,000 square feet pursuant to that certain Standard
Industrial/Commercial Single Tenant Lease dated July 31, 1998 between
IntraBiotics and Clint S. Carter and Esther Carter Family Trust, predecessor in
interest to Bruce Carter and Keith Carter ("Master Landlord");

         B.       IntraBiotics and ReShape entered into that certain Sublease
dated August 22, 2001, as amended (the "Sublease"), pursuant to which
IntraBiotics currently leases the Premises to ReShape;

         C.       In connection with the Sublease, IntraBiotics and ReShape
entered into that certain Furniture Rental Agreement dated August 22, 2001, as
amended (the "Furniture Rental Agreement"), pursuant to which IntraBiotics
currently leases to ReShape certain personal property of IntraBiotics currently
located in the Premises;

         C.       Concurrently herewith, IntraBiotics and Master Landlord will
be terminating the Master Lease and ReShape and Master Landlord will be entering
into a new lease for the Premises ("New Lease");

         B.       IntraBiotics and ReShape now desire to amend and terminate the
Sublease according to the terms and conditions set forth herein. Capitalized
terms used in this Agreement and not otherwise defined shall have the meanings
assigned to them in the Sublease.

                                    AGREEMENT

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

         1.       EXPIRATION AND TERMINATION OF SUBLEASE. Notwithstanding
anything in the Sublease to the contrary, subject to satisfaction or waiver of
each of the conditions precedent contained in Paragraph 2 below, the Sublease
shall be amended to change the expiration date of the Sublease to October 31,
2002, which shall now be referred to as the "Termination Date". As of 5:00 p.m.
PST on the Termination Date, IntraBiotics and ReShape shall be released from
each and all of their respective obligations (past, present and future) under
the Sublease, such that the Sublease shall have no further binding effect or
force.

                                       1.

<PAGE>

         2.       CONDITIONS PRECEDENT. The effectiveness of this Agreement is
conditioned upon the satisfaction or waiver of each of the following conditions
precedent:

                  2.1      MASTER LEASE TERMINATION AGREEMENT. IntraBiotics
shall have entered into an agreement with master Landlord terminating the Master
Lease on terms agreeable to IntraBiotics and Master landlord (the "Master Lease
Termination Agreement"). The date deemed to be the "Closing Date" in the Master
Lease Termination Agreement shall be referred to herein as the "Closing Date."

                  2.2      SECURITY DEPOSIT. The parties agree that IntraBiotics
shall be return to ReShape the letter of credit currently held by IntraBiotics
as Security Deposit under the Sublease.

                  2.3      SURRENDER OF PREMISES. Notwithstanding anything to
the contrary contained in the Sublease, on the Closing Date, ReShape shall
surrender the Premises in its current condition on October 31, 2002

                  2.4      FURNITURE RENTAL AGREEMENT. The Furniture Rental
Agreement is hereby amended to change the expiration date of such agreement to
the Termination Date. As of 5:00 p.m. PST on the Termination Date, Landlord and
Tenant shall be released from each and all of their respective obligations
(past, present and future) under the Furniture Rental Agreement, such that the
Furniture Rental Agreement shall have no further binding effect or force.
Additionally, on the Closing Date, IntraBiotics shall return to ReShape the
security deposit in the amount of $9,000 currently held by IntraBiotics pursuant
to the Furniture Rental Agreement.

         3.       FULL RELEASE. Each of the parties signing below on behalf of
itself and its employees, officers, directors, agents, predecessors, successors,
parents, subsidiaries, affiliates, and all others hereby fully releases and
discharges the other party and the other party's employees, officers, directors,
agents, predecessors, successors, parents, subsidiaries, affiliates, and all
others from any and all claims and demands of every kind and nature, known and
unknown, suspected and unsuspected, disclosed and undisclosed, for any damages
or other remedy whatsoever, arising out of or in any way related to the Sublease
or the Furniture Rental Agreement. Each party acknowledges and agrees that the
release it gives to the other party upon executing this Agreement applies to all
claims for injuries, damages, or losses to his own person and property, real or
personal (whether those injuries, damages, or losses are known or unknown,
foreseen or unforeseen, patent or latent) which it may have against the other
party. Each party waives application of California Civil Code Section 1542.

         Each party certifies that it has read the following provisions of
California Civil Code Sections 1542:

                  "A general release does not extend to claims which the
                  creditor does not know or suspect to exist in his favor at the
                  time of executing the release, which if known by him must have
                  materially affected his settlement with the debtor."

and indicates that fact by signing here:

                                       2.

<PAGE>

                                                  /s/ E.B.   [initials]
                                                ------------
                                                  /s/ D.J.G.  [initials]
                                                -------------

         4.       SUBLEASE OF NEW PREMISES. Subject to satisfaction or waiver of
                  the conditions precedent set forth in Paragraph 2 above,
                  ReShape hereby subleases a portion of the Premises more fully
                  described in Exhibit A (the "New Premises") to IntraBiotics,
                  and IntraBiotics hereby subleases the New Premises from
                  ReShape, on the following terms and conditions (the "New
                  Sublease"):

                  4.1      TERM. The term of the New Sublease shall commence at
any date designated in writing by IntraBiotics which date is on or after
December 1, 2002; and shall terminate, at IntraBiotics' sole option, at any time
on or before May 31, 2003.

                  4.2      RENT. IntraBiotics shall pay no rent for the New
Premises.

                  4.3      OPERATING EXPENSES. For any period during which
IntraBiotics occupies the New Premises during the term of this sublease,
IntraBiotics shall reimburse ReShape for its operating expenses and expenses
relating to the Services (defined below) at the rate of $1,000 per month,
prorated for actual days of occupancy.

                  4.4      SERVICES. IntraBiotics' use of the New Premises shall
include the following services (the "Services"): telephone service including
local calling charges, snacks and drinks, utilities, security, broadband
internet access, janitorial service, maintenance and parking privileges
consistent with ReShape's lease of the Premises.

         5.       MISCELLANEOUS.

                  5.1      VOLUNTARY AGREEMENT. The parties have read this
Agreement and the mutual releases contained in it, and on the advice of counsel
they have freely and voluntarily entered into this Agreement.

                  5.2      ENTIRE AGREEMENT. This Agreement contains the entire
understanding of the parties with respect to the subject matters covered hereby
and may be modified only by a written instrument signed by the party against
whom enforcement of any modification is sought. IntraBiotics and ReShape intend
that, to the maximum extent possible, invalidity or unenforceability of any
provision of this Agreement will not affect any other provision hereof.

                  5.3      ATTORNEY'S FEES. If either party commences an action
against the other party arising out of or in connection with this Agreement, the
prevailing party shall be entitled to recover from the losing party reasonable
attorney's fees and costs of suit.

                  5.4      SUCCESSORS. This Agreement shall be binding on and
inure to the benefit of the parties and their successors.

                  5.5      COUNTERPARTS. This Agreement may be signed in two or
more counterparts. When at least one such counterpart has been signed by each
party, this Agreement shall be deemed to have been fully executed, each
counterpart shall be deemed to be an original, and all counterparts shall be
deemed to be one and the same agreement.

                                       3.

<PAGE>

         IN WITNESS WHEREOF, IntraBiotics and ReShape have executed this
Agreement as of the date first written above.

                           INTRABIOTICS PHARMACEUTICALS,

                           a Delaware corporation

                           By: /s/ Eric Bjerkholt
                              ------------------------------------
                           Name:   Eric Bjerkholt
                           Title:  SVP & CFO

                           RESHAPE, INC., a California corporation

                           By: /s/ David J. Gregory
                              ------------------------------------
                           Name:   David Gregory
                           Title:  CEO

                                       4.

<PAGE>

                                    Exhibit A

The New Premises shall consist of the rooms designated as room numbers 142, 143,
146, 141 (bullpen office) and 116 (document room), as shown on the existing
"As-built" drawings of the Premises. The New Premises shall include rights of
access to such space, as well as rights to use, in common with other users of
the Premises, all common areas and halls. ReShape shall provide IntraBiotics
with brass key or restricted card key access to Rooms 116 and 141, which rooms
shall be available to IntraBiotics on a 24/7 basis. In addition, IntraBiotics
shall be entitled to erect and maintain in the parking lot associated with the
Premises one Tote-a-Shed.

                                       5.

<PAGE>

                             MASTER LANDLORD CONSENT

The undersigned, as landlord under that certain Standard Industrial/Commercial
Single Tenant Lease dated July 31, 1998 between IntraBiotics and Clint S. Carter
and Esther Carter Family Trust, predecessor in interest to Bruce Carter and
Keith Carter, hereby consent to the above Sublease Termination Agreement and
Sublease.

 /s/ Bruce H. Carter
--------------------
Bruce Carter

 /s/ Keith M. Carter
--------------------
Keith Carter

                                       6.

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