Document:

EXHIBIT 10.13

CERTAIN INFORMATION IN THIS EXHIBIT IS SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT. IN ACCORDANCE WITH RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, SUCH INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF SUCH OMITTED INFORMATION HAS
BEEN INDICATED WITH AN ASTERISK(*).

                                LICENSE AGREEMENT

   This License Agreement (hereinafter "Agreement") is made and entered into as
of the 1st day of June (the "Effective Date") between Biogen, Inc., a
Massachusetts corporation having a principal place of business at 14 Cambridge
Center, Cambridge MA, 02142 ("Biogen") and Tanox Biosystems, Inc., a Texas
corporation, having a principal place of business at 10301 Stella Link, Houston,
TX 77025 ("Tanox").

   NOW THEREFORE, the parties hereby agree as follows:

BACKGROUND

   Biogen owns certain patent rights identified in Appendix A hereto, relating
to ANTI-CD4 MONOCLONAL ANTIBODIES.

   Biogen has additional rights to technical data and information pertaining to
anti-CD4 monoclonal antibodies.

   Tanox wishes to be licensed under certain of the TECHNOLOGY (as defined
below) and patent rights and Biogen is willing to grant Tanox such a license,
for the consideration and under the terms set forth in this Agreement.

1. DEFINITIONS

1.1    "AFFILIATE", as applied to either party, shall mean any corporation,
       firm, partnership or other entity which directly or indirectly owns, is
       owned by, or is under common control with, a party to the Agreement to
       the extent of at least fifty percent (50%) of the equity or other
       ownership interests (or such lesser percentage which is the maximum
       allowed to be owned by a foreign corporation in a particular
       jurisdiction) having the power to vote on, or direct the affairs of, the
       entity.

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1.2    "DISTRIBUTOR(S)" shall mean a person or entity in a country who buys
       LICENSED PRODUCT from Tanox or its AFFILIATES or SUBLICENSEES and who,
       under an implied license, sells such LICENSED PRODUCT in that country.

1.3    "FIELD" shall mean the manufacture, use, importation, offer for sale or
       sale of LICENSED PRODUCT for human use only, including therapeutic,
       prophylactic and diagnostic use.

1.4    "FIRST COMMERCIAL SALE" shall mean in each country of the TERRITORY, the
       first sale of a LICENSED PRODUCT by Tanox or any of its AFFILIATES,
       DISTRIBUTOR(S) or its SUBLICENSEES to a third party in connection with
       the nationwide introduction of LICENSED PRODUCT by Tanox or any of its
       AFFILIATES, DISTRIBUTOR(S) or its SUBLICENSEES following marketing and/or
       pricing approval by the appropriate governmental agency for the country
       in which the sale is made. When governmental approval is not required or
       when sales can be made through named patient sales (also including
       "compassionate use sales", "treatment INDs" or their equivalents) prior
       to governmental approval, such FIRST COMMERCIAL SALE in that country
       shall be the first sale in connection with the nationwide introduction of
       LICENSED PRODUCT.

1.5    "IND" shall mean an Investigational New Drug Application filed with the
       U.S. Food and Drug Administration ("FDA") or an equivalent filing in the
       TERRITORY.

1.6    "LICENSED PRODUCT(S)" shall mean any composition(s) (i) the manufacture,
       use, importation, offer for sale, or sale of which, but for this license,
       infringes a VALID CLAIM of one or more PATENTS or (ii) which embodies any
       of the TECHNOLOGY.

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1.7    "MAA" shall mean an application for regulatory approval to sell LICENSED
       PRODUCT in the European Union and is similar in purpose to an NDA in the
       United States.

1.8    "NDA" shall mean a New Drug Application or Biologic License Application
       ("BLA") or equivalent filed for LICENSED PRODUCT with the U.S. Food and
       Drug Administration ("FDA").

1.9    "NET SALES" shall mean the total gross invoice amount actually received
       by Tanox on the sale of LICENSED PRODUCT in the TERRITORY by Tanox and
       its AFFILIATES, SUBLICENSEES and DISTRIBUTOR(S) to third parties less the
       following items, as determined from the books and records of Tanox or its
       AFFILIATES, SUBLICENSEES or DISTRIBUTOR(S): (i) insurance and transport
       charges actually invoiced; (ii) amounts repaid or credited for rejection
       or return of LICENSED PRODUCT; (iii) sales or other excise taxes or other
       governmental charges levied on the invoiced amount and actually paid by
       the seller; (iv) custom duties and charges actually paid by the seller;
       (v) normal and customary trade and quantity discounts actually allowed
       and actually taken which relate to LICENSED PRODUCT.

      Sales of LICENSED PRODUCT between or among Tanox, its AFFILIATES,
DISTRIBUTOR(S) or the SUBLICENSEES shall be excluded from the computation of NET
SALES. Notwithstanding the previous sentence, the resale of the LICENSED PRODUCT
by the AFFILIATE, DISTRIBUTOR(S) or SUBLICENSEES to a third party who is not an
AFFILIATE, DISTRIBUTOR(S) or SUBLICENSEES of Tanox, shall be included in the
definition of NET SALES for the purposes of this Agreement.

      In the event that Tanox, its AFFILIATES, DISTRIBUTOR(S) or its
SUBLICENSEES receives in any transaction included within the definition of NET
SALES, any non-cash compensation or lower prices on other products in exchange
for any LICENSED PRODUCT, or sells LICENSED PRODUCT in other than an arms length

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transaction, then the gross amount invoiced in such transaction shall be deemed
to be the gross amount that would have been paid had there been such a sale at
the average sale price of such LICENSED PRODUCT during the applicable royalty
reporting period in the country in which such disposition took place. The
preceding sentence shall not apply to the distribution at no cost of LICENSED
PRODUCT to physicians, hospitals or clinics for promotional purposes or academic
investigators for research and clinical trial purposes, which are not included
in the definition of NET SALES.

      In the event that LICENSED PRODUCT is sold in combination with one or more
other active ingredients, including one or more other antibodies having a
therapeutic effect (such antibody(ies) defined as an "Antibody Active
Ingredient"), the NET SALES on the combination product shall be calculated by
multiplying actual NET SALES of the combination product by the fraction obtained
after dividing A by the sum of A+B, in which "A" is the average selling price of
LICENSED PRODUCT sold separately by the same party during the same accounting
period in the country in which the sale of the combination product was made and
"B" is the average selling price of the other active ingredient(s) sold
separately by the same party during the same accounting period in the country in
which the sale of the combination product was made.

      If, however, no separate sales of LICENSED PRODUCT or Antibody Active
Ingredient(s) or other active ingredients are made then:

      A. If the combination product includes one or more Antibody Active
Ingredients (the combination product defined for the purpose of this sentence as
a "TRUE ANTIBODY COMBINATION PRODUCT"), the NET SALES of such TRUE ANTIBODY
COMBINATION PRODUCT shall be reduced by 50%; or

      B. If the combination product includes one or more active ingredients that
are not Antibody Active Ingredients, the parties shall negotiate in good faith a
mutually agreeable formula for determining appropriate reduction in NET SALES
with the goal of equitably determining the appropriate percentage value
represented by the components.

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      The parties agree that in no event shall NET SALES of LICENSED PRODUCT or
any combination product of this Article 1.9 be reduced to less than fifty
percent (50%) of actual NET SALES of such LICENSED PRODUCT or combination
product by reason of any adjustment set forth in this Article 1.9.

      The parties further agree that if Tanox becomes (a) an AFFILIATE of; or
(b) merged with; or (c) acquired by: or (d) an acquirer of, a third party having
a market capitalization equal to, or greater than ten billion dollars ($10B) at
the time of such AFFILIATE formation or merger or acquisition, then NET SALES as
defined in the first sentence of this Article shall be redefined to mean the
total gross invoice amount (not dependent on whether the invoices were actually
paid) on the sale of LICENSED PRODUCT in the TERRITORY by Tanox and its
AFFILIATES, SUBLICENSEES and DISTRIBUTOR(S) to third parties, less the items
recited in the first sentence of this Article. All other provisions of the
definition of NET SALES shall remain unaffected by such AFFILIATE formation,
merger or acquisition.

1.10   "PATENTS" shall mean: (a) the patent applications and patents listed in
       Appendix A to this Agreement, any extensions, supplemental protection
       certificates, reissues, renewals, re-examinations, divisionals,
       continuations or continuations-in-part thereof, any foreign counterparts
       thereof, any patent issuing from any of the foregoing, which Biogen
       presently or hereafter owns and (b) such other patent applications and
       patents which Biogen presently or hereafter owns or controls that is
       required for the manufacture, use or sale of LICENSED PRODUCT.

1.11   "PROTEIN DESIGN LABS PATENTS" shall mean the patents and patent
       applications listed in Appendix B hereto.

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1.12   "ROYALTY QUARTER" shall mean the three (3) months ending on the last day
       of March, June, September and December of each year.

1.13   "SUBLICENSEES" shall mean a third party (but not an AFFILIATE of Tanox)
       licensed by Tanox to make, use, import, offer for sale and sell LICENSED
       PRODUCT.

1.14   "TECHNOLOGY" shall mean any data, know-how, or other information, or any
       material, reagent or other substance relating to LICENSED PRODUCT or to
       anti-CD4 monoclonal antibodies which may be useful in the discovery,
       research, development, manufacture, use or sale of LICENSED PRODUCT or to
       anti-CD4 monoclonal antibodies and which is known to, and/or in the
       possession of, Biogen on the Effective Date and to which Biogen has a
       transferable right.

1.15   "TERRITORY" shall mean the entire world.

1.16   "VALID CLAIM" shall mean (i) any claim(s) in an issued, unexpired patent
       which has not been held unenforceable, unpatentable, or invalid by a
       court or other governmental agency of competent jurisdiction, in a
       decision that is unappealable or unappealed, within the time allowed for
       appeal, and which has not been abandoned or admitted to be invalid or
       unenforceable through reissue or disclaimer or (ii) a claim of a pending
       patent application which is pending as of the Effective Date and for
       which examination has been requested or, in the case of Japan and Canada,
       will be timely requested, and which claim shall not have been canceled,
       withdrawn, abandoned or rejected by an administrative agency from which
       no appeal can be taken. If in the TERRITORY there should be two or more
       such decisions conflicting with respect to the validity of the same
       claims, the decision of the higher or highest tribunal shall thereafter
       control. However, should the tribunals be of equal rank, then the
       decision or decisions upholding the claim shall prevail

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       when the conflicting decisions are equal in number, and the majority of
       decisions shall prevail when conflicting decisions are unequal in number.

2.     LICENSES AND TECHNOLOGY TRANSFER

2.1    Biogen hereby grants Tanox a TERRITORY-wide, exclusive, royalty-bearing
       license under the TECHNOLOGY and PATENTS to make, have made, import, use,
       offer for sale, and sell LICENSED PRODUCT for use in the FIELD. As soon
       as reasonably possible following execution of this Agreement, Biogen will
       transfer all TECHNOLOGY listed on Appendix C that is in its control or
       possession to Tanox, and shall cooperate with Tanox in its initial use of
       the TECHNOLOGY to develop a LICENSED PRODUCT by making Biogen personnel
       with knowledge of the TECHNOLOGY available for initial meetings at Biogen
       as agreed, not to exceed two working days, and subsequent telephone
       conference(s) with Tanox during Biogen's normal business hours under the
       following conditions:

       (a) Biogen personnel are given at least reasonable advance notice of such
       conference(s);

       (b) Tanox shall direct all telephone calls to a Technology Liaison who
       will direct Tanox's attention to the appropriate person responsible for a
       particular TECHNOLOGY. Biogen shall provide Tanox with all available
       TECHNOLOGY within 3 months from the Effective Date of this Agreement;

       (c) Telephone conferences shall not exceed 5 hours per month for the
       first three months,

       (d) Any time spent by Biogen personnel on retrieval of information
       requested shall, except for information previously requested and not
       provided, be limited to the three month period after the Effective Date
       and shall be reasonably based upon pre-existing commitments and the time
       required to complete the tasks requested by Tanox; and

       (e) Telephone conferences subsequent to the time period of subpart (b)
       (other than for pursuing information or TECHNOLOGY previously requested
       but not provided) shall not exceed 1 hour per month.

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2.2    The term "exclusive" in Article 2.1 shall mean that Biogen cannot grant
       further licenses hereunder for LICENSED PRODUCT in the TERRITORY in the
       FIELD, subject only to:

                                       *

      (b) Biogen's reserved right to use the TECHNOLOGY and PATENTS for internal
research and educational purposes.

2.3    The license granted to Tanox hereunder shall include the right to grant a
       sublicense to one SUBLICENSEE in each country. A copy of the sublicense
       shall be provided to Biogen. Tanox shall ensure that its AFFILIATE(S) and
       SUBLICENSEES to whom Tanox has extended or sublicensed its rights under
       this Article 2, shall comply with all of the terms of this Agreement to
       which Tanox is bound.

      Any sublicense granted by Tanox under this Agreement shall be subject and
subordinate to the terms and conditions of this Agreement except that:

      (a) the sublicense terms and conditions shall reflect that the
SUBLICENSEES shall not have the right to further sublicense;

      (b)the sublicense shall include a requirement that the SUBLICENSEES use
the same efforts to bring the subject matter of the sublicense into commercial
use as those efforts of Tanox under Article 9.1 of this Agreement; and

      (c) the sublicense shall expressly provide for the transfer of all
obligations, including the payment of royalties specified in the sublicense, to
Biogen or its designee, in the event that the present Agreement is terminated.

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2.4    Except as expressly provided herein, nothing in this Agreement shall be
       deemed to grant either party any rights or license to any patent, patent
       application, technology, know-how or invention of the other party.

3. PAYMENTS AND REPORTING

   In consideration of the license rights granted to Tanox under this Agreement,
Tanox shall make the following payments to Biogen:

3.1                                    *

3.2    Tanox shall pay Biogen a royalty on NET SALES of LICENSED PRODUCT sold by
       Tanox, its AFFILIATES, SUBLICENSEES and DISTRIBUTOR(S) in the TERRITORY
       at the following rates:

    PORTION OF
    ANNUAL NET SALES                      ROYALTY RATE    OFFSET (ARTICLE 3.3)
    ----------------                      ------------    --------------------
           *                                    *                   *

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3.3    If Tanox licenses PROTEIN DESIGN LABS PATENT(S) to make, have made, use,
       sell, offer for sale, or import LICENSED PRODUCT, then so long as a VALID
       CLAIM of a PROTEIN DESIGN LABS PATENT encompasses the LICENSED PRODUCT in
       the United States, the royalty otherwise payable to Biogen under Article
       3.2 on sales in the respective countries in which there are such VALID
       CLAIMS shall be reduced by the amounts set forth in the above Table of
       Article 3.2 under the heading "Offset" determined by reference to the
       amount of annual NET SALES in such countries.

3.4    As further consideration of the rights granted to Tanox under this
       Agreement, Tanox shall make the following nonrefundable, noncreditable
       payments to Biogen upon the first achievement of each of the following
       milestones.

   MILESTONE                                                    PAYMENT
   ---------                                                    -------
   Upon filing an IND or equivalent
   filing for first LICENSED PRODUCT                              *

   Commencement of Phase III Clinical
   Trial (or equivalent pivotal trial)
   of first LICENSED PRODUCT                                      *

   Filing BLA/MAA or equivalent filing
   for first LICENSED PRODUCT                                     *

   Regulatory approval anywhere
   in the TERRITORY of first LICENSED
   PRODUCT                                                        *

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3.5    If, after executing this Agreement, Tanox becomes (a) an AFFILIATE of; or
       (b) merged with; or (c) acquired by: or (d) an acquirer of, a third party
       having an equal or greater number of employees than Biogen at the time of
       such AFFILIATE formation or merger or acquisition, then Tanox shall be
       obligated to make additional milestone payments in addition to those
       recited above in Article 3.4. Following such a merger or acquisition, the
       additional nonrefundable, noncreditable retroactive milestones are due
       thirty (30) days after the later of: (i) being triggered by the events
       described in the Table below or (ii) the date of the acquisition, or
       merger transaction and are as follows:

   MILESTONE                                                        PAYMENT
   ---------                                                        -------
   Commencement of Phase II

   Clinical Trial of first LICENSED PRODUCT                            *

   Commencement of Phase III
   Clinical Trial (or equivalent pivotal trial)
   of first LICENSED PRODUCT                                           *

   Regulatory approval by FDA of first LICENSED PRODUCT                *

   Regulatory approval by EMEA of first LICENSED PRODUCT               *

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3.6    All royalties accrued pursuant to this Article 3 shall be paid to Biogen
       on a quarterly basis within forty five (45) days after the end of each
       calendar quarter with respect to NET SALES on sales of LICENSED PRODUCT
       made in such quarter.

3.7    Together with each royalty payment due under this Article 3, Tanox shall
       provide Biogen with a signed written statement certifying, separately for
       each type of LICENSED PRODUCT, the following information: (i) gross sales
       by Tanox, its AFFILIATES, SUBLICENSEES, and DISTRIBUTOR(S), by country;
       (ii) NET SALES separately by country and in total; (iii) quantity sold by
       Tanox, its AFFILIATES, SUBLICENSEES, and DISTRIBUTOR(S); and (iv) average
       sales price in each country. Tanox shall maintain, and shall use
       reasonable efforts to ensure that its AFFILIATES, SUBLICENSEE and
       DISTRIBUTOR(S) maintain, appropriate books of account and records of all
       sales of LICENSED PRODUCT in any calendar year for a period of three (3)
       full years after such calendar year. At Biogen's request, Tanox shall
       make such books of account and records available for inspection during
       normal business hours by independent public accountants appointed by
       Biogen for the purpose of verification of the amounts paid to Biogen
       under this Agreement. Biogen shall not conduct more than one audit in any
       calendar year.

   The cost of such audit shall be borne by BIOGEN unless it is established by
the audit that there has been an error which has caused Tanox to underpay by ten
percent (10%) or more for the period under audit, in which case the cost of such
audit shall be borne by Tanox. Tanox shall pay to Biogen any underpaid
compensation that is confirmed by the audit promptly and with interest at a rate
not to exceed the interest rate defined in Article 3.9 hereunder.

3.8    The amounts computed or specified under this Article 3 as due to Biogen
       are the actual amounts to be received by BIOGEN and shall not be reduced
       in any way, including but

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       not limited to, withholding taxes and reduction by any liabilities
       incurred by Tanox or its SUBLICENSEES or DISTRIBUTOR(S) on Tanox's behalf
       (but not on Biogen's behalf) upon remittance to BIOGEN of the payments
       due hereunder, provided, however, that if required, Tanox shall be
       allowed to withhold taxes incurred by Biogen.

3.9    All payments made to either party hereunder shall be paid in U.S.
       Dollars. Monetary conversion from the currency of a foreign country into
       U.S. currency shall be made at the exchange rate in force on the last
       business day of the quarter in which the payment obligations were
       incurred as reported in The Wall Street Journal, or on such other basis
       as mutually agreed upon by both parties. Any amounts due under this
       Agreement that are not paid when due shall bear interest at the lesser of
       (i) *.

3.10   The obligation to pay royalties shall continue on a country-by-country
       basis from the date of first sale of LICENSED PRODUCT in that country
       until the later of (i) twelve (12) years from the date of FIRST
       COMMERCIAL SALE of such LICENSED PRODUCT in that country or (ii) the date
       on which the manufacture, use, sale, offer for sale or import of LICENSED
       PRODUCT is no longer covered by a VALID CLAIM of any PATENT in such
       country or in the country of manufacture.

4. *

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5. PATENT PROSECUTION AND LITIGATION

5.1    Biogen shall be solely responsible for prosecution and maintenance of the
       PATENTS. Tanox shall bear the cost of all matters relating to the
       maintenance and prosecution of the PATENTS, such costs to be creditable
       against any payments due Biogen. Biogen shall promptly notify Tanox of
       all information received by Biogen relating to the prosecution and
       maintenance of PATENTS, including, without limitation, any lapse,
       revocation, surrender, invalidation or abandonment of any of the PATENTS.

   Biogen may, in its sole discretion, decide to refrain from, or cease to
prosecute, or maintain any of the PATENTS. In such an event, Biogen shall notify
Tanox promptly and in sufficient time to permit Tanox at its sole discretion to
continue such prosecution or maintenance at Tanox's expense. If Tanox elects to
continue such prosecution or maintenance, Biogen shall execute such documents
and perform such acts at Biogen's expense as may be reasonably necessary for
Tanox to so continue such prosecution or maintenance.

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5.2    In the event either party or its AFFILIATES, DISTRIBUTORS (or Tanox's
       SUBLICENSEES) becomes aware of any actual or probable infringement of a
       PATENT claim licensed to Tanox under this Agreement, it shall notify the
       other party in writing of the details to the extent known of such
       infringement. Tanox, in its sole discretion and at its sole expense, may
       take action against any alleged infringer but would be required to take
       such action in the name of Biogen, if legally permissible, and if Biogen
       consents thereto. In determining whether to bring an action to enforce
       any such PATENT, Tanox shall act in a commercially reasonable manner,
       giving due consideration to the threat represented by the infringement
       and the potential risk to the PATENT involved. In the event Tanox
       declines within six (6) months of notification of such infringement to
       either (i) cause infringement to cease such as, for example, by
       settlement, or (ii) initiate legal proceedings against the infringer.
       Biogen may, but is not obligated to (upon notice to Tanox) initiate legal
       proceedings against the infringer, at Biogen's expense and in its own
       name. Biogen, under the circumstances of the previous sentence, is not
       obligated to initiate proceedings against more than one infringer at a
       time.

5.3    In the event either Tanox or Biogen shall initiate or carry out legal
       proceedings to enforce any of the PATENTS licensed under this Agreement
       against an alleged infringer, the party not initiating or carrying out
       such proceedings shall fully cooperate with, and supply all reasonable
       assistance requested by, the other party. Except as described hereunder,
       any party that institutes any suit to protect or enforce any such PATENTS
       shall have control of that suit and shall bear the reasonable expenses
       incurred by the non-initiating party in providing such assistance and
       cooperation as is requested pursuant to this Article.

5.4    Any recovery obtained by Tanox as the result of legal proceedings
       initiated and paid for by Tanox to enforce any of the PATENTS licensed
       under this Agreement against an

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       alleged infringer, whether obtained by settlement or otherwise, shall
       (after reimbursement of all otherwise unreimbursed legal fees and
       expenses incurred by either Tanox or Biogen) be paid 100% to Tanox, and
       such recovery obtained by Tanox shall be treated as NET SALES so that
       Tanox shall pay a royalty to Biogen commensurate with the recovery as
       specified under Article 3.2. Any recovery obtained by Biogen as the
       result of legal proceedings initiated and paid for by Biogen to enforce
       such PATENTS against an alleged infringer, whether obtained by settlement
       or otherwise, shall (after reimbursement of all otherwise unreimbursed
       legal fees and expenses incurred by either Biogen or Tanox) be paid 100%
       to Biogen.

6. INDEMNIFICATION

6.1    Tanox and its AFFILIATES and its SUBLICENSEES assume all risk of damage
       or injury to persons or property arising out of the clinical testing,
       manufacture, use, marketing, promotion, distribution, or sale of LICENSED
       PRODUCT(S). Tanox shall hold harmless and indemnify Biogen, its officers,
       directors, agents, shareholders and employees (the "Biogen Indemnitees")
       from and against any and all liabilities, damages, losses, costs and
       expense incurred or imposed upon Biogen Indemnitees or any one of them in
       connection with any claims, suits, actions, demands, proceedings, causes
       of action or judgments resulting from arising out of: (i) the
       development, design, preclinical or clinical testing, manufacture, use,
       marketing, promotion, distribution or sale of the LICENSED PRODUCT(S) by
       Tanox or any of its AFFILIATES, SUBLICENSEES or DISTRIBUTOR(S) or any of
       their respective agents or employees; (ii) any other activities carried
       out by Tanox or any of its AFFILIATES, SUBLICENSEES or DISTRIBUTOR(S) or
       any of their respective agents or employees, including failure to comply
       with applicable law.

   Biogen shall give prompt notice to Tanox of any claim that may be subject to
indemnification upon Biogen's receipt of notice to such claim, and Tanox shall

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assume the defense thereof, including the employment of counsel reasonably
satisfactory to Biogen, provided, however, that Tanox shall act reasonably and
in good faith with respect to all matters related to settlement or disposition
of any claim as the settlement or disposition thereof relates to Biogen, and
further provided that Tanox shall not settle or otherwise dispose of any claim
without prior written notice to Biogen. Biogen shall have the right to employ
separate counsel in any such action and to participate in the defense thereof,
but the fees and expenses in this situation shall be Biogen's.

6.2    Following the FIRST COMMERCIAL SALE, Tanox shall purchase and maintain in
       effect, and require its AFFILIATES and SUBLICENSES to purchase and
       maintain in effect, a policy of product liability insurance in the amount
       of at least * covering all claims with respect to any LICENSED PRODUCT
       used, made, sold, imported, licensed or otherwise distributed by Tanox or
       any of its AFFILIATES, DISTRIBUTOR(S) or SUBLICENSES within the term of
       this Agreement. Each policy obtained under this Article shall specify
       Biogen as an additional insured and Tanox shall furnish to Biogen upon
       Biogen's request, a certificate evidencing such insurance.

7.     REPRESENTATIONS, WARRANTIES AND LIABILITY

7.1    BIOGEN warrants that it owns title to the PATENTS listed in Appendix A
       and the TECHNOLOGY and has the right to enter into this Agreement. BIOGEN
       MAKES NO REPRESENTATION OR WARRANTY AS TO THE VALIDITY OF THE PATENTS.

7.2    BIOGEN MAKES NO REPRESENTATION OR WARRANTY THAT THE MANUFACTURE, USE,
       IMPORTATION OR SALE OF LICENSED PRODUCTS BY TANOX OR ITS SUBLICENSEES OR
       THEIR CUSTOMERS WILL NOT CONSTITUTE AN INFRINGEMENT OF THE INTELLECTUAL
       PROPERTY RIGHTS OF OTHERS.

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7.3    BIOGEN MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND,
       EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED
       WARRANTIES OF MERCHANT ABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND
       ASSUMES NO RESPONSIBILITY WHATEVER WITH RESPECT TO DESIGN, DEVELOPMENT,
       MANUFACTURE, USE, SALE, IMPORTATION OR OTHER DISPOSITION OF LICENSED
       PRODUCT BY TANOX OR ITS AFFILIATES, SUBLICENSEES OR DISTRIBUTOR(S) TO
       THEIR RESPECTIVE CUSTOMERS.

7.4    The entire risk as to performance of LICENSED PRODUCTS is assumed by
       Tanox and its AFFILIATES, DISTRIBUTOR(S) and SUBLICENSEES. Except as set
       forth under Article 6, in no event shall either party be responsible or
       liable to the other, its AFFILIATES or DISTRIBUTOR(S) (or Tanox's
       SUBLICENSEES), end users (or any other individual or entity regardless of
       legal theory), for any DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR
       CONSEQUENTIAL DAMAGES OR LOST REVENUES OR PROFITS arising out of this
       Agreement. The provisions of this Article 7.4 shall apply even though a
       party may have been advised of the possibility of such damage.

7.5    Tanox covenants and agrees that in conducting activities contemplated
       under this Agreement, it shall comply with all applicable laws and
       regulations including those related to the manufacture, use, labeling,
       importation and marketing of LICENSED PRODUCT.

                                       18

<PAGE>
7.6    Tanox shall make no statements, representations or warranties or accept
       any liabilities or responsibilities to, or with regard to any person or
       entity, which are inconsistent with any disclaimer or provisions of this
       Article 7 and Tanox shall take reasonable steps to ensure that its
       AFFILIATES and its SUBLICENSEES do not do so.

7.7    Tanox and Biogen agree that, except for the obligations contained within
       this Agreement, there are no other express and/or implied obligations on
       either party that can be created by the activities contemplated
       hereunder.

8.     CONFIDENTIALITY

8.1    During the term of this Agreement, and for a period of seven (7) years
       after termination, Biogen and Tanox shall treat all confidential
       information (including confidential TECHNOLOGY) received from the other
       hereunder as the exclusive property of the disclosing party and each
       party agrees not to use or disclose to any third party any such
       information, except as permitted hereunder, without first obtaining the
       disclosing party's written consent. Each party further agrees to take all
       practicable steps to ensure that any such information shall not be used
       by its directors, officers, employees, or agents and that it shall be
       kept fully private and confidential by them.

8.2    The above provision of confidentiality shall not apply to that part of
       such information which a receiving party is clearly able to demonstrate:

   (a)   was fully in its possession prior to receipt from the other; or

   (b)   was in the public domain at the time of receipt from the other; or

   (c)   became part of the public domain through no fault of the party
         receiving such information, its director, officers or employees;

   (d)   was lawfully received without obligations of confidentiality or non-use
         from some third party having a right of further disclosure; or

   (e)   other than information submitted pursuant to obtaining regulatory
         approval for LICENSED PRODUCT, is required to be disclosed by law or
         applicable government or European Community regulations; provided,
         however, that the disclosing party is given prior written notice of
         such required disclosure and afforded an opportunity to participate in
         drafting a protective order or otherwise limiting the disclosure to the
         extent possible.

                                       19
<PAGE>
9.     COMMERCIALIZATION

9.1    Tanox undertakes to use reasonable commercial efforts to diligently
       develop and market LICENSED PRODUCT in the major market countries for the
       LICENSED PRODUCT in the TERRITORY and, with Biogen's reasonable
       assistance, to diligently obtain regulatory approval for LICENSED PRODUCT
       in the major market countries for the LICENSED PRODUCT in the TERRITORY.
       Tanox shall provide Biogen with summaries of such efforts, including the
       clinical development status of LICENSED PRODUCTS in the FIELD, before
       January 1 of each calendar year and shall provide Biogen with notice of
       the date Tanox and/or its SUBLICENSEES makes the FIRST COMMERCIAL SALE of
       LICENSED PRODUCT. For the purposes of this Article 9.1, "reasonable
       commercial efforts" means the usual practice followed by a
       biopharmaceutical company in pursuing commercialization of its products.

9.2    Tanox shall take reasonable steps to ensure the compliance of its
       SUBLICENSEES with all applicable laws and regulations, including, without
       limitation any labeling requirements relating to the sale of LICENSED
       PRODUCT by the SUBLICENSEES.

10.   PUBLICITY

                                       20
<PAGE>
10.1   Neither Tanox nor its AFFILIATES nor its SUBLICENSEES shall make any use
       of the name of Biogen in connection with the exercise of its rights
       hereunder (including in any advertising, promotional or sales
       literature), without the prior written consent of Biogen, except as
       required by law or regulation. Upon request, Tanox or its AFFILIATES or
       its SUBLICENSEES shall ensure that LICENSED PRODUCT will be labeled "sold
       under license" from Biogen.

10.2   Any initial announcements or similar publicity with respect to this
       Agreement shall be at such time and in such manner and such form as
       Biogen and Tanox shall mutually agree. Thereafter, either party may
       subsequently publicize the terms and subject matter of this Agreement in
       its sole discretion as long as the content of subsequent disclosures is
       consistent with the approved form. To the extent that any such
       publication or the terms and subject matter of this Agreement is
       inconsistent with the agreed announcement AND/or includes additional
       disclosure relating thereto, the party submitting any such subsequent
       announcement or similar publicity shall first send it to the other party
       for review. The other party agrees to review and return such announcement
       or similar publicity to the sending party within 24 hours of receipt.

11.    PATENT EXTENSIONS

11.1   Subject to the applicable governmental laws and regulations in the
       TERRITORY regarding extension of patent terms, Tanox and its SUBLICENSEES
       shall cooperate fully with Biogen in providing Biogen, at Biogen's
       request, all facts and documentation which may assist Biogen in its
       procurement of term extension for the PATENTS. Biogen shall be
       responsible for, and shall bear the expense, of obtaining such patent
       term extension as to patent rights encompassing LICENSED PRODUCT.

                                       21
<PAGE>
11.2   Upon termination of this Agreement by Biogen pursuant to Article 12.2,
       information related to government approvals for LICENSED PRODUCT and
       safety, efficacy, and toxicity studies of the LICENSED PRODUCT (provided
       that the above is accessible to Tanox and/or its SUBLICENSEES in the
       TERRITORY) shall be shared by Tanox and/or its SUBLICENSEES with Biogen
       and such information may be transmitted to a governmental agency for use
       by Biogen if necessary.

12.    TERM AND TERMINATION

12.1   This Agreement shall commence on the Effective Date and shall continue
       until Tanox's obligation to pay royalties pursuant to Article 3
       terminates.

12.2   If the parties agree that this Agreement has been breached as to a
       material covenant, undertaking, representation or obligation and that the
       allegedly breaching party has not pursued steps to correct or cure such
       breach within sixty (60) days of notification from the other party, or if
       a court of competent jurisdiction so determines in a decision that is
       unappealable or unappealed within the time allowed for appeal, or if the
       decision is affirmed on appeal, by the highest court with jurisdiction,
       then the non-breaching party shall have the right, by notice in writing,
       to terminate this Agreement. A party shall also have the right to
       terminate this Agreement in the event that the other party shall enter
       into any arrangement or composition with its creditors, or enter or be
       put into voluntary or compulsory liquidation or bankruptcy (except for
       the purpose of any reorganization reasonably acceptable to the other
       party), or have its business enjoined into receivership by executive or
       judicial authorities.

12.3   Tanox shall have the right to terminate this Agreement on thirty (30)
       days written notice to Biogen, provided that Tanox supplies to Biogen
       within 180 days of termination hereunder, and sooner if feasible, all
       preclinical, clinical and other data reasonably related to Biogen's

                                       22
<PAGE>
       relicensing of the LICENSED PRODUCT as well as a royalty-free,
       nonexclusive license to any Tanox-owned patents necessary to make, use,
       or sell the LICENSED PRODUCT. Any termination under this Article 12 shall
       be without prejudice to the rights of either party against the other then
       accruing or otherwise accrued under the Agreement.

12.4   Expiration of this Agreement pursuant to Article 12.1 shall result in the
       exclusive license to Tanox under Article 2.1 being converted to a
       non-exclusive and cost and royalty-free license. Both expiration of the
       Agreement under Article 12.1 and termination of this Agreement by either
       party pursuant to Articles 12.2 and 12.3 shall terminate all outstanding
       obligations and liabilities between Biogen and Tanox arising from this
       Agreement except:

       (a)  obligations to pay royalties and other sums accruing hereunder up to
            the day of such termination or expiration;

       (b)  obligations for record keeping and accounting reports for so long as
            LICENSED PRODUCT is sold pursuant to this Agreement up to the date
            of termination or expiration. Tanox shall render a final report
            along with any royalty payment at such time after termination or
            expiration of this Agreement;

       (c)  Biogen's right to inspect books and records up to the date of
            termination or expiration as in Article 3.7;

       (d)  obligations of defense and indemnity under Article 6;

       (e)  any cause of action or claim of Tanox or Biogen accrued as of the
            date of termination or expiration because of any breach or default
            by the other party hereunder;

       (f)  the confidentiality provisions of Article 8;

       (g)  the disclosure obligations of Article 11.2, as applicable.

       (h)  all other terms, provisions, representations, rights and obligations
            contained in this Agreement that by their sense and context are
            intended to survive until performance thereof by either or both
            parties; and

       (i)  the right to complete the manufacture and sale of LICENSED PRODUCTS
            which qualify as "work in progress" under generally accepted cost
            accounting standards or which are in stock at the date of
            termination, and the obligation to pay royalties on NET SALES of
            such LICENSED PRODUCTS.

                                       23
<PAGE>
13.    NOTICES

13.1   Any notice required or permitted to be given hereunder shall be sent in
       writing by registered or certified airmail, postage prepaid, return
       receipt requested, or by telecopier, air courier or hand delivery,
       addressed to the party to whom it is to be given as follows:

   If to BIOGEN:   Biogen, Inc.
                   14 Cambridge Center
                   Cambridge, MA 02142
                   Telephone (617) 679-2000; Fax (617) 679-2838
                   Attention: Vice President-General Counsel
   If to TANOX:
                   Tanox Biosystems, Inc.
                   10301 Stella Link
                   Houston, TX 77025
                   Telephone: (713) 664-2288; Fax: (713) 664-8914
                   Attention: Nancy T. Chang, Ph.D., President
                   and CEO

   or to such other address or addresses as may from time to time be given in
   writing by either party to the other pursuant to the terms hereof.

                                       24
<PAGE>
13.2   Any notice sent pursuant to this Article shall be deemed delivered within
       five (5) days if sent by registered or certified airmail and within
       twenty-four (24) hours if sent by telecopier, air courier or hand
       delivery.

14.    EXPORT LAWS AND REGULATIONS OF THE UNITED STATES
      The Export regulations of the United States Department of Commerce
prohibit the exportation from the United States of certain types of technical
data and commodities unless the exporter (i.e., Tanox, AFFILIATES,
DISTRIBUTOR(S) or the SUBLICENSEES) has received the required license. In
addition, the exporter may be required to obtain certain written assurances
regarding re-export from the foreign importer for certain types of technical
data and commodities. Tanox agrees to comply with (and shall take reasonable
steps to ensure the compliance of its AFFILIATES, DISTRIBUTOR(S) and its
SUBLICENSEES with) the Export Administration Regulations of the United States
Department of Commerce.

15.    MISCELLANEOUS

15.1   ENTIRE AGREEMENT:

       This Agreement constitutes the entire understanding between the parties
with respect to the subject matter between the parties with respect to the
subject matter hereof, and supersedes and replaces all prior agreements,
understandings, writings and discussions between parties relating to said
subject matter.

15.2  AMENDMENTS: WAIVERS:
      This Agreement may be amended and any of its terms or conditions may be
waived only by a written instrument executed by both parties, or, in the case of
a waiver, by the party waiving compliance. The failure of either party at any
time to require performance of any provision hereof shall in no manner affect
its rights a later time to enforce the same. No waiver by either party of any
condition or term in any instance shall be construed as a further or continuing
waiver of such condition or term or of another condition or term.

                                       25
<PAGE>
15.3  NO AGENCY:
      The relationship between Tanox and Biogen is that of independent
contractor. Nothing herein shall be deemed to constitute Tanox, on the one hand,
or Biogen, on the other hand, as the agent or representative of the other, or as
master and servant, employer and employee, joint venturers or partners for any
purpose.

15.4  ASSIGNMENT:
      This Agreement shall not be assigned by Tanox without the prior written
consent of Biogen, except to an AFFILIATE or a successor Tanox's entire
business. This Agreement shall be binding upon and inure to the benefit of and
be enforceable by the parties hereto and their respective successors and
permitted assigns.

15.5  LAW OF THE CONTRACT:
      This Agreement shall be governed by and construed and interpreted in
accordance with the law of the Commonwealth of Massachusetts.

15.6  SEVERABILITY:
      In the event one or more provisions of this Agreement should for any
reason be held by any court or authority having applicable jurisdiction to be
invalid, illegal or unenforceable, such provision(s) shall either be reformed to
comply with applicable law or stricken if not so conformable, so as not to
affect the validity or enforceability of the remainder of this Agreement.

                                       26
<PAGE>
15.7  AGREEMENT TO PERFORM NECESSARY ACTS:
      Each party agrees to perform further acts and execute and deliver any and
all further documents, agreements, and/or instruments which may be reasonable to
carry out or effect the provisions of this Agreement.

15.8  COUNTERPARTS:
      This Agreement may be executed in counterparts, and each such counterpart
shall be deemed an original for all purposes.

   IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers on the date and year first above
written.

BIOGEN, INC.                              TANOX BIOSYSTEMS, INC.

By: /s/ MICHAEL J. ASTRUE                 By: /s/ NANCY T. CHANG, Ph.D.

Name: Michael J. Astrue                   Name: Nancy T. Chang, Ph.D.

Title: Vice President-General Counsel     Title: President and CEO

Date: June 18, 1998                       Date: June 23, 1998

                                       27
<PAGE>
                                   APPENDIX A
<TABLE>
<CAPTION>
<S>             <C>
COUNTRY          NUMBER          FILED       ISSUED #      EXPIRES       BIOGEN NO.

Australia          *            11/27/91      662891      11/27/011          *

Canada             *            11/27/91        --           --              *

EPO*            92903295.1      11/27/91      512112       11/27/011         *

Japan              *            11/27/91        --           --              *

United          07/916,098      11/27/91        --                           *
States           to issue
Q2  1998

</TABLE>

   *Austria, Belgium, Switzerland, Germany, Denmark, Spain, France, Great
Britain, Greece, Italy, Liechtenstein, Luxembourg, Netherlands, Sweden

                                       28
<PAGE>
                                   APPENDIX B

   The following are patents and patent applications defined as PROTEIN DESIGN
LABS PATENTS and shall expressly include any United States continuations,
continuations-in-part or divisions thereof or any substitute applications
therefor; or foreign counterparts thereof, any patents issued with respect to
such patent applications, any reexaminations, reissues, extensions or patent
term extensions of any such patents.

   1. United States Patent Numbers 5,585,089, 5,693,761, 5,693,762, and U.S.
patent divisional application numbers 08/477,728, 08/474,040 and 08/487,200 of
issued United States Patent No. 5,530,101.

   2. European Patent 0451216

   3. Japanese Patent application No. 4-503758

                                       29
<PAGE>
                                   APPENDIX C

                       TECHNOLOGY TO BE PROVIDED BY BIOGEN

                                       *

                                       30
<PAGE>
                                       *

                                       31
<PAGE>
FAX TRANSMISSION

To:   Dr. Linda Burkly
      Biogen, Inc.

Date: December 11, 1996

From: Keith A. Reimann
      Division of Viral Pathogenesis
      Department of Medicine
      Beth Israel Hospital - RE-113
      330 Brookline Avenue

      Boston, MA 02215
      Phone-   617-667-4583
      Fax   617-667-8210
      E-mail   kreimann@bih.harvard.edu

   Re:      Hu5A8 IN VIVO summary

                                       *
<PAGE>
                                       *EXHIBIT 10.14

CERTAIN INFORMATION IN THIS EXHIBIT IS SUBJECT TO A REQUEST FOR CONFIDENTIAL
TREATMENT. IN ACCORDANCE WITH RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, SUCH INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION. THE LOCATION OF SUCH OMITTED INFORMATION HAS
BEEN INDICATED WITH AN ASTERISK(*).

                                                                    CONFIDENTIAL
                                                          TANOX BIOSYSTEMS, INC.

               OUTLINE OF TERMS FOR SETTLEMENT OF THE LITIGATIONS

             AMONG GENENTECH INC., GENENTECH INTERNATIONAL LIMITED

                             TANOX BIOSYSTEMS, INC.

                             AND CIBA-GEIGY LIMITED

             RELATING TO ANTI-IgE INHIBITING MONOCLONAL ANTIBODIES

     In 1993 Tanox sued Genentech * in the context of anti-IgE-antibody projects
     to which both companies are committed. Genentech then sued Tanox and, later
     on Ciba for infringement of Genentech's * patent by their anti-IgE and
     anti-HIV monoclonal antibody projects. Ciba and Tanox filed a counterclaim
     for invalidation of said patent. Tanox has further filed certain patent
     applications on which some patent rights have already been granted which
     may extend to Genentech's anti-IgE substance, although Genentech does not
     agree that they do. Now the parties are willing to settle a11 their pending
     litigations including potential future disputes regarding anti-IgE
     antibodies on the basis of the following principles:

1.   MERGER OF ANTI-IgE PROJECTS

     The anti-IgE-antibody projects of Genentech on the one side and Ciba/Tanox
     on the other side shall be merged, but Genentech and Ciba/Tanox will
     continue to take their respective anti-IgE antibodies through Phase II
     clinical trials currently in progress or planned to be performed during
     1996. Based upon the results of these trials and other relevant
     considerations Genentech, Tanox and Ciba shall jointly discuss and decide
     by June 1, 1997 at the latest which of the anti-IgE antibodies shall be
     taken up in Phase III trials, be developed for additional indications (if
     any), be submitted for marketing authorization and be commercialized as a
     pharmaceutical product ("anti-IgE Product"). The final Agreement(s) as
     referred to in Section 8.2 shall provide for procedures in case of a
     disagreement between the parties. All development activities shall be
     supervised by a Steering Committee on which each party is represented. The
     merging of each party's anti-IgE-antibody projects and the development and
     commercialization thereof according to this Outline of Terms shall extend
     to all IgE inhibiting antibodies (including fractions or derivatives
     thereof) which have been identified and synthesized by either party hereto
     *.
<PAGE>
                                      -2 -

2.   SHARING OF DEVELOPMENT COST

     All development activities for the anti-IgE Project/Product including such
     things as the manufacture of the clinical material, the conduct of clinical
     trials, the development of the process to make anti-IgE antibodies and
     required supporting activities/services and fees which are necessary for
     obtaining the NDA in the USA and the marketing authorization(s) in Europe
     shall be pooled between Genentech and Ciba. This cost pooling shall
     commence as of the date on which the selection of the anti-IgE Product for
     further development has been made (the "Selection Date").

     These pooled costs shall be allocated to the US development cost account on
     the one side and the Europe development cost account on the other side on a
     pro rata basis to be agreed upon according to the prospective sales
     potential for the anti-IgE Product in each of the two territories.

     The development cost allocated to the US shall be shared between Ciba and
     Genentech in the ratio of *, whereas the development cost for Europe
     -- subject to Section 11 hereafter shall be borne as to * by Ciba and as
     to * by Genentech.

     Any additional development cost required for the commercialization of the
     anti-IgE Product in territories outside the US and Europe shall be borne
     exclusively by Ciba/Tanox according to the Development and Licensing
     Agreement between Tanox and Ciba dated May 11, 1990, and the amendment
     thereto relating to the territories of Taiwan, Korea, Singapore, China and
     Hong Kong (the "D&L Agreement"), subject to additional cost obligations for
     Japan which may arise according to Section 11 hereafter.

3.   COMMERCIALIZATION

3.1  The anti-IgE Product shall be commercialized in the US under one brand
     under a co-promotion scheme by Ciba and Genentech to be further elaborated
     and agreed upon. In lieu of Tanox's right under the D&L Agreement to
     participate in such co-promotion in the US, Tanox will be entitled to the
     payments set forth in Section 5.1 hereafter.

     All the cost for the manufacturing/purchase of anti-IgE Product and all the
     cost for its marketing and sale in the US including all supporting and
     auxiliary activities and royalties to third parties (if any) shall be
     shared between Ciba and Genentech on a * basis.
<PAGE>
                                      -3-

     All the net profIts from the commercialization of the anti-IgE Product in
     the US shall be shared between Ciba and Genentech on a * basis.

3.2  The anti-IgE Product shall be commercialized in Europe exclusively by Ciba,
     subject to Section 11 hereafter.

     All the cost for the manufacturing/purchase of the anti-IgE Product and
     all the cost for its marketing and sale including all supporting activities
     and royalties to Tanox on the one hand and third parties (if any) and all
     the net profits from the commercialization of the anti-IgE Product in
     Europe shall be shared between Ciba and Genentech on the basis of *
     (Ciba): * (Genentech).

3.3  In all countries in the world other than US and Europe, Ciba shall have
     exclusive rights for the commercialization of the anti-IgE Product, subject
     to certain rights which Tanox has in Taiwan, Korea, Singapore, China and
     Hong Kong according to a separate agreement and the rights for Japan as set
     out in Section 11 hereafter. No specific compensation shall be due to
     Genentech by Ciba for these rights.

4.   MANUFACTURE

     Ciba and Genentech together with Tanox (to the extent they are exercising
     their rights of co-manufacturing) shall share in the responsibility for
     assuring adequate product supply necessary for commercialization of the
     anti-IgE Product. Genentech shall, on request of Ciba, manufacture the
     jointly selected anti-IgE Product up to a quantity of * of the anti-IgE
     antibody per year and shall sell the anti-IgE Product to the appropriate
     selling organizations in the US, Europe and the rest of the world at a
     price equal to the full manufacturing cost as defined in the Appendix
     hereto, plus an uplift of *. The parties also shall consider and, as
     appropriate, reach agreement on plans to assure adequate product supply in
     the event such * quantity is insufficient to meet projections for product
     requirements reasonably established by mutual agreement of the parties. The
     parties acknowledge that such manufacturing by Genentech and any
     manufacturing by Ciba shall be subject to Tanox's co-manufacturing rights
     under the D&L Agreement and the terms of a manufacturing and supply
     agreement to be negotiated between Tanox and the purchasing party in the
     manner contemplated by the D&L Agreement. Tanox agrees to waive its rights
     to compensation for relinquishing its rights under the D&L Agreement to
     manufacture * of such * which may be manufactured by Genentech, but Tanox
     does not waive its right prospectively to exercise its co-manufacturing
     rights. If Genentech terminates its cooperation hereunder, it shall
     continue to be bound by the above supply obligation for a reasonable period
     of time to establish an alternative
<PAGE>
                                      -4-

     supply source for the anti-IgE Product, such period to be mutually agreed
     upon in the Definitive Agreement.

     The manufacturing price paid to Genentech shall constitute a cost element
     in the calculation of the cost/net profit to be shared according to Sec.
     3.1 paragraphs 2 and 3 and Sec. 3.2 paragraph 2.

     In the event that there should not be enough anti-IgE Products available
     to meet the requirements of the different markets the available quantities
     shall be allocated pro rata to the respective potential in these markets.

5.   ROYALTIES AND MILESTONE PAYMENTS TO TANOX

5.1  Tanox is entitled to a royalty on the net sales of the anti-IgE product in
     the USA, as set out in the D&L Agreement, which amounts to * of such US
     net sales (or * if there is no valid Tanox patent), plus (i) * on *
     of such US net sales, payable by Genentech, and (ii) * of Ciba's net
     profits from the commercialization of the anti-IgE Product in the US,
     payable by Ciba.

5.2  For the sales of the anti-IgE Product in Europe and the rest of the world,
     Tanox shall be paid the royalties specified in the D&L Agreement.

5.3  The milestone payments payable to Tanox specified in the D&L Agreement
     shall become due regardless of whether the anti-IgE Product selected
     originates from Tanox or Genentech and, except for payments due for NDA/PLA
     submission and approval in Japan, shall be included in the cost to be
     shared according to Section 2 above.

5.4  Payments made to Tanox in connection with development activities undertaken
     by Tanox for the anti-IgE Project/Product after the Selection Date shall be
     included in the cost to be shared according to Section 2 above. The parties
     acknowledge and agree that for 1996 the already approved Tanox budget will
     continue. For 1997 the Tanox budget will be similar to that of 1996, unless
     Genentech, Tanox and Ciba conclude that activities at Tanox for 1997 would
     result in a significant reduction of Tanox's 1997 budget. In such event
     Ciba, Genentech and Tanox will negotiate in good faith an appropriate
     payment in addition to such reduced budget covering Tanox's reasonable cost
     for phase-out of its activities. Such payment, however, shall not exceed
     * of the budget calculated for the last full 12 months prior to the
     Selection Date. For subsequent years thereafter, development activities
     which should be undertaken by Tanox so as to maintain its active
     involvement will be agreed by Ciba, Genentech and Tanox and a Tanox budget
     will be submitted for approval in accordance with current procedures.
<PAGE>
                                      -5-

6.   LICENSES

     Each party hereto shall grant to the other party any and all licenses
     and/or sublicenses (to the extent possible and subject to payment of the
     appropriate royalty or other payment amount due to third parties, such
     payment to be borne or shared by the parties as otherwise provided herein,
     or if not provided herein, then only if the party sublicensed pays such
     royalty or amount) under their respective present and future patent rights,
     other intellectual property rights, licenses, know-how, technology, cell
     lines, materials, etc. they own and/or control to the extent they are
     required for or are to be used by the parties as jointly agreed for the
     development, manufacture, use and sale of the anti-IgE Product. No other
     compensations for these licenses shall be due than those set out in this
     outline.

     Each party hereto represents that it does not have knowledge of any such
     rights that it currently owns and to which it currently has a license which
     cannot be made accessible to the other parties hereto.

     To the extent any such rights of a party are not licensable or
     sublicensable such party shall take reasonable actions to permit the
     commercialization of the anti-IgE Product on a reasonable basis in the
     light of the restrictions to which it is subject.

7.   SETTLEMENT

7.1  The parties hereto shall dismiss all claims filed in the lawsuits against
     each Genentech and F. Hoffmann-La Roche Ltd. and its three affiliates
     concerned on the one side and Ciba and Tanox on the other side pending and
     consolidated with the US District Court for the Southern District of Texas,
     Houston Division (the "Litigation").

7.2  Except as may be otherwise agreed between some of the parties hereto, each
     party shall bear all cost and expenditure incurred by it under or in
     connection with the above lawsuits.

8.   CONDITIONS PRECEDENT

8.1  The parties are aware that the envisaged terms of settlement set out herein
     might need clearance by the relevant authorities and agree to cooperate via
     their internal and external experts in this respect.
<PAGE>
                                       -6-

8.2  The parties shall negotiate in good faith and enter into (a) detailed
     agreement(s) (the "Detailed Agreement") implementing and completing the
     terms outlined herein within 6 months from the execution of this Outline.

9.   PUBLICATIONS

     Unless otherwise agreed in advance in writing among all parties hereto,
     none of the parties hereto shall directly or indirectly make any public
     statement, press release or give any information to the public about this
     Outline of Terms and the Detailed Agreement to be entered into pursuant
     hereto. However, this restriction shall not apply to disclosure of
     information which the parties acknowledge will be set forth in press
     release with agreed upon text and release date and time, to be prepared
     following execution of the Outline of Terms, and to statements,
     information, or announcements required by law, regulation or administrative
     action to be disclosed including disclosure to (prospective) investors in
     the securities of a party. In such event, the parties shall promptly
     coordinate to the extent possible, the wording of any such disclosures.
     This restriction on publication shall not be applicable to disclosures made
     to third parties who are subject to non-disclosure or confidentiality
     obligations.

10.  CONFIDENTIALITY

10.1 Any information and data disclosed by a party to another party hereto (the
     "Receiving Party" in the context of the selection, development and
     commercialization of the anti-IgE Product shall be kept strictly
     confidential by the Receiving Party, shall not be disclosed to any third
     party by the Receiving Party and shall not be used by the Receiving Party
     for any purpose other than those contemplated under this Outline of Terms,
     the D&L Agreement and the Detailed Agreement.

10.2 The obligations set out in Section 10.1 above shall not apply to
     information and data of which the receiving party can show that it:

     (i) is or has become generally available to the public otherwise than
         through violation of the obligation set out in Section 10.1 above;

     (ii) has been received from a third party who did not acquire it directly
          or indirectly from the disclosing party.

     Notwithstanding the above, the parties may disclose such information (a) to
     the extent as required to be disclosed to comply with applicable laws, to
     defend or
<PAGE>
                                      -7-

     prosecute litigation or to comply with governmental regulations including
     disclosure to {prospective) investors in the securities of a party,
     provided that the receiving party provides prior written notice of such
     disclosure to the disclosing party and takes reasonable and lawful actions
     to avoid and/or minimize the degree of such disclosure, and (b) to their
     legal representatives, to affiliates and their legal representatives, and
     to consultants to the extent such disclosure is intended to further the
     purposes contemplated under this Outline of Terms, the D&L Agreement, and
     the Detailed Agreement, provided such legal representatives, affiliates and
     consultants are covered by obligations of confidentiality with respect to
     such information no less stringent than those set forth herein, and to
     further (c) in connection with publications, lectures, seminars or other
     presentations with respect to which all parties hereto have agreed in
     advance in writing.

11.  RIGHTS RESERVED TO ROCHE

11.1 The parties acknowledge that Genentech is a party to certain agreements
     with F. Hoffman-La Roche Ltd. and certain of its affiliates (collectively,
     "Roche") under which Roche has certain rights to products being developed
     by Genentech ("G/R Agreements"). In the event Roche exercises its rights
     under the G/R Agreements, Genentech and Roche have requested that certain
     rights to participate in the commercialization of the anti-IgE Product be
     reserved to Roche. Subject to receipt by Ciba and Tanox of a joint
     notification by Roche and Genentech of Roche's exercise of rights under the
     G/R Agreements and to its joinder in this Outiine of Terms and the Detailed
     Agreement implementing and completing the terms outlined herein, the
     parties agree to reserve for Roche's benefit certain rights to participate
     in commercialization of the anti-IgE Product in Europe and Japan as set
     forth in this Section 11.

11.2 For Europe and Japan, Roche shall have an option to participate in the
     commercialization of the anti-IgE Product according to the following terms:

     Roche's option, which shall be established and may be exercised on a
     country-by-country basis, will be subject to the anti-IgE Product having a
     significant "general practitioner potential" ("GP potential") in each
     country. The GP potential of the anti-IgE Product is characterized in
     particular by the following (cumulative) criteria: (i) clinical activity in
     patients with mild to moderate allergic asthma and/or allergic rhinitis is
     demonstrated; (ii) a patient friendly formulation (e.g. inhalation device
     or pen for autoinjection); {iii) safety profile of the Product and its
     application is adequate for self-administration; (iv) dose level and cost
     for the galenical formulation and/or a device, such as to permit pricing
     accepted for reimbursement by social security schemes in the respective
     country with a sufficient gross margin to support the business case for
     co-promotion.
<PAGE>
                                      -8-

     The envisaged commercialization scheme in Europe would be a co-promotion by
     Roche of the anti-IgE Product sold by Ciba wherever legally possible and,
     in those countries in Europe where no co-promotion is possible, each of
     Ciba and Roche may market and sell the anti-IgE Product under different
     trademarks on its own. The commercial terms and conditions e.g. modus of
     exercising of the option (until submission of marketing authorization to
     the competent authorities at the latest), time and manner in which
     reimbursement/sharing of development costs will occur, and manner in which
     co-promotion sales will be attributed to each party, etc., will be part of
     the detailed agreement(s) referenced in Section 8.2. It is understood,
     however, that each Ciba and Roche should be able to make bookings of sales
     in the same order of magnitude.

11.3 For each country in Europe in which Roche exercises its option, Ciba agrees
     to share profits on a * basis under a co-promotion scheme, subject also
     to a * sharing of all development and commercialization costs as
     provided in Sections 2 and 3 above, in lieu of the * cost and profit
     sharing for Europe otherwise provided in such Sections 2 and 3. For any
     country in Europe in which Roche chooses not to exercise its option, the
     cost and profit sharing ratios will continue to be * between Ciba and
     Genentech, as set out in Section 3.2 paragraph 2 above. In case of a
     co-marketing in a country Ciba and Roche shall negotiate in good faith the
     terms and conditions of such co-marketing in that country on the basis of a
     * sharing of the pertaining development cost, but, with respect to that
     country no sharing of marketing cost nor profit sharing neither between the
     co-marketing parties nor according to sections 2 and 3 above shall apply.
     If Roche exercises its option hereunder only for a limited number but not
     for all countries in Europe, then the costs to be shared in each country in
     which Roche exercises its option(s) will be based on a allocation of all
     development and commercialization costs attributable to Europe on a pro
     rata basis to each such country in a manner to be agreed upon according to
     the prospective sales potential for the anti-IgE Product in each of the
     countries in Europe. Profits for each such country will be based on total
     sales revenues for the anti-IgE Product in each such country.

11.4 At the time Roche exercises its option for any country in Europe, Roche and
     Genentech shall notify Ciba of their agreement regarding which of them will
     be responsible for the costs to be shared or whether each will share a
     portion thereof and regarding the manner in which they will participate in
     the profits to be shared. Such notice will be accompanied by payment of an
     amount sufficient to reduce Ciba's share in those costs already shared on a
     * basis to *.

11.5 In Japan, subject to Roche's participation in co-development of the
     anti-IgE Product for Japan, Roche shall have an option to market and sell
     the approved anti-IgE Product on its own under a different trademark. To
     maintain its rights for Japan hereunder, Roche shall have twelve (12)
     months from the date of execution of this Outline of Terms in which to
     notify Ciba and Tanox of its
<PAGE>
                                      -9-

     election to participate in the development of the anti-IgE Product for
     Japan. At such time as Roche notifies Ciba of such election, Roche shall be
     obligated to reimburse Ciba for * of all development costs incurred by
     Ciba for development in Japan since the Selection Date and Roche shall be
     entitled immediately to participate with Ciba/Tanox in the development
     activities in Japan on the basis of a * sharing of development cost
     including the milestone payments to Tanox due on filing and grant of
     NDA/PLA in Japan, as specified in the D&L Agreement. In the event that it
     should become evident that "the anti-IgE Product has no GP Potential in
     Japan, contrary to prior expectations, Ciba and/or Roche may chose to
     terminated the joint development in Japan, and Ciba shall retain all
     further rights to development and commercialization of the anti-IgE Product
     in Japan against reimbursement of Roche's development cost including
     milestone payment, if any incurred.

11.6 The parties acknowledge that the detailed agreement(s) contemplated under
     Section 8.2 will contain provisions which complete and implement the terms
     outlined in this Section 11. The parties agree that Roche may participate
     in negotiations relating to such provisions whether or not Roche has
     exercised its rights under the G/R Agreements so that Roche will have the
     opportunity to participate in establishing the detailed terms governing the
     rights reserved to Roche hereunder.

12.  EARLY TERMINATION

     Genentech may terminate the cooperation hereunder at any time during the
     development of the Anti-IgE Product by giving 120 days prior notice to Ciba
     and Tanox and paying all amounts due hereunder up to such termination date.
     If Genentech terminates its cooperation hereunder, Roche shall have the
     option exercisable for a period of 30 days after Genentech's termination,
     to assume all of Genentech's rights and obligations hereunder. If Roche
     does not exercise such option, all of Genentech's rights under this
     cooperation, except for rights with respect to which Roche has exercised
     its options under Section 11, shall revert to Ciba, which shall be entitled
     to continue the development and to commercialize the Anti-IgE Product on
     its own or with Roche, as the case may be, without further compensation to
     Genentech, and which shall assume Genentech's obligations hereunder.

     Ciba may terminate the cooperation hereunder at any time during the
     development of the Anti-IgE Product by giving 120 days prior notice to
     Genentech and Tanox and paying all amounts due hereunder up to such
     termination date. Such notice also shall act as notice to Tanox of Ciba's
     termination of the D&L Agreement In such event, subject to the rights of
     the parties hereunder, the termination
<PAGE>
                                      -10-

     provisions of the D&L Agreement shall govern such termination. Genentech
     and, as applicable, Roche shall be entitled to continue development in the
     U.S., Europe and Japan, as the case may be, in Ciba's stead, subject to
     assuming Ciba's obligations hereunder, and to reimbursing Tanox for any
     compensation which may be payable by Tanox to Ciba as a result of such
     termination. Tanox shall have and retain exclusive rights for the
     commercialization of the Anti-IgE Product in all other countries in the
     world.

13.  BINDING NATURE

     The contents of this Outline of Terms represent the bona fide intent of the
     parties. The parties hereto shall use all reasonable effort to complete the
     final agreement(s) as referred to in Section 8.2 above as soon as
     reasonably practicable. It is understood, however, that unless and until
     the said formal agreement(s) is/are completed and entered into the parties
     (including their legal successors) shall be legally bound by and shall
     operate under the terms reflected in the present Outline of Terms, which
     shall be governed by the laws of the State of New York without regard to
     conflict of law principles.

TANOX BIOSYSTEMS INC.:                                        Date: July 8, 1996

By: /s/ David Anderson
David Anderson
Executive Vice President

GENENTECH INC.:                                               Date: July 8, 1996
/s/ ILLEGIBLE

GENENTECH INTERNATIONAL LIMITED:                              Date: July 8, 1996
/s/ ILLEGIBLE

CIBA-GEIGY LIMITED:                                           Date: July 6, 1996

Dr. Herbert Gut                                               Dr. H. F. Mohr
Senior Division Counsel                                       Head of
                                                              Pharma Licensing
<PAGE>
                                                    APPENDIX TO OUTLINE OF TERMS

DEFINITION OF FULLY BURDENED MANUFACTURING COST

Genentech's Fully Burdened Manufacturing Cost shall mean:

(a)  the actual direct cost associated with the manufacture of the Anti-IgE
     Product. i.e. direct material cost, direct labor cost, direct equipment
     cost, direct facility expense, direct quality control expense, direct
     energy cost, direct environmental expense, provided, however, that such
     actual direct cost shall not include cost associated with idle plant
     capacity, plus

(b)  an allocation of Genentech's overhead cost associated with such
     manufacture, up to a maximum of fifty percent of the actual price cost,
     which allocation for manufacturing overhead shall be made in accordance
     with U.S. Generally accepted cost accounting principles consistently
     applied by Genentech across all similar pharmaceutical manufacture
     operations, plus

(c)  Genentech's allocable intellectual property acquisition, licensing and
     royalty cost paid to third parties (except Tanox) upon the sale of Anti-IgE
     Products to third parties, plus

(d)  any other costs borne by Genentech for transport, customs clearance and
     storage of Anti-IgE Product, to the extent necessary (i.e. freight, duty,
     insurance and warehousing).

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