Document:

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                                                                    EXHIBIT 10.3

                                  Telik, Inc.
                       2000 Employee Stock Purchase Plan

              Adopted by Board of Directors March 22, 2000
                   Approved by Stockholders March 29, 2000
                           Termination Date: None

1.   Purpose.

     (a) The purpose of the Plan is to provide a means by which Employees of the
Company and certain designated Affiliates may be given an opportunity to
purchase common stock of the Company (the "Common Stock").

     (b) The Company, by means of the Plan, seeks to retain the services of such
Employees, to secure and retain the services of new Employees and to provide
incentives for such persons to exert maximum efforts for the success of the
Company and its Affiliates.

     (c) The Company intends that the Rights to purchase Common Stock granted
under the Plan be considered options issued under an "employee stock purchase
plan," as that term is defined in Section 423(b) of the Code.

2.   Definitions.

     (a) "Affiliate" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and (f), respectively, of the Code.

     (b) "Board" means the Board of Directors of the Company.

     (c) "Code" means the United States Internal Revenue Code of 1986, as
amended.

     (d) "Committee" means a Committee appointed by the Board in accordance with
subparagraph 3(c) of the Plan.

     (e) "Company" means Telik, Inc., a Delaware corporation.

     (f) "Director" means a member of the Board.

     (g) "Eligible Employee" means an Employee who meets the requirements set
forth in the Offering for eligibility to participate in the Offering.

     (h) "Employee" means any person, including Officers and Directors, employed
by the Company or an Affiliate of the Company. Neither service as a Director nor
payment of a director's fee shall be sufficient to constitute "employment" by
the Company or the Affiliate.

                                       1.
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  (i) "Employee Stock Purchase Plan" means a plan that grants rights intended to
be options issued under an "employee stock purchase plan," as that term is
defined in Section 423(b) of the Code.

  (j) "Exchange Act" means the United States Securities Exchange Act of 1934, as
amended.

  (k) "Fair Market Value" means the value of a security, as determined in good
faith by the Board.  If the security is listed on any established stock exchange
or traded on the Nasdaq National Market or the Nasdaq SmallCap Market, then,
except as otherwise provided in the Offering, the Fair Market Value of the
security shall be the closing sales price (rounded up where necessary to the
nearest whole cent) for such security (or the closing bid, if no sales were
reported) as quoted on such exchange or market (or the exchange or market with
the greatest volume of trading in the relevant security of the Company) on the
trading day prior to the relevant determination date, as reported in The Wall
Street Journal or such other source as the Board deems reliable.

  (l) "Non-Employee Director" means a Director who either (i) is not a current
Employee or Officer of the Company or its parent or subsidiary, does not receive
compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director (except for an amount as to which disclosure would not be required
under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
("Regulation S-K")), does not possess an interest in any other transaction as to
which disclosure would be required under Item 404(a) of Regulation S-K, and is
not engaged in a business relationship as to which disclosure would be required
under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a "non-
employee director" for purposes of Rule 16b-3.

  (m) "Offering" means the grant of Rights to purchase Common Stock under the
Plan to Eligible Employees.

  (n) "Offering Date" means a date selected by the Board for an Offering to
commence.

  (o) "Outside Director" means a Director who either (i) is not a current
employee of the Company or an "affiliated corporation" (within the meaning of
the Treasury regulations promulgated under Section 162(m) of the Code), is not a
former employee of the Company or an "affiliated corporation" receiving
compensation for prior services (other than benefits under a tax qualified
pension plan), was not an officer of the Company or an "affiliated corporation"
at any time, and is not currently receiving direct or indirect remuneration from
the Company or an "affiliated corporation" for services in any capacity other
than as a Director, or (ii) is otherwise considered an "outside director" for
purposes of Section 162(m) of the Code.

  (p) "Participant" means an Eligible Employee who holds an outstanding Right
granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Right granted under the Plan.

  (q) "Plan" means this 2000 Employee Stock Purchase Plan.

                                       2.
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     (r) "Purchase Date" means one or more dates established by the Board during
an Offering on which Rights granted under the Plan shall be exercised and
purchases of Common Stock carried out in accordance with such Offering.

     (s) "Right" means an option to purchase Common Stock granted pursuant to
the Plan.

     (t) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to
Rule 16b-3 as in effect with respect to the Company at the time discretion is
being exercised regarding the Plan.

     (u) "Securities Act" means the United States Securities Act of 1933, as
amended.

3.   Administration.

     (a) The Board shall administer the Plan unless and until the Board
delegates administration to a Committee, as provided in subparagraph 3(c).
Whether or not the Board has delegated administration, the Board shall have the
final power to determine all questions of policy and expediency that may arise
in the administration of the Plan.

     (b) The Board (or the Committee) shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

         (i)    To determine when and how Rights to purchase Common Stock shall
be granted and the provisions of each Offering of such Rights (which need not be
identical).

          (ii)  To designate from time to time which Affiliates of the Company
shall be eligible to participate in the Plan.

          (iii) To construe and interpret the Plan and Rights granted under it,
and to establish, amend and revoke rules and regulations for its administration.
The Board, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan, in a manner and to the extent it shall deem necessary
or expedient to make the Plan fully effective.

          (iv)  To amend the Plan as provided in paragraph 14.

          (v)   To terminate or suspend the Plan as provided in paragraph 16.

          (vi)  Generally, to exercise such powers and to perform such acts as
it deems necessary or expedient to promote the best interests of the Company and
its Affiliates and to carry out the intent that the Plan be treated as an
Employee Stock Purchase Plan.

     (c) The Board may delegate administration of the Plan to a Committee of the
Board composed of two (2) or more members, all of the members of which Committee
may be, in the discretion of the Board, Non-Employee Directors and/or Outside
Directors.  If administration is delegated to a Committee, the Committee shall
have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee of two
(2) or more Outside Directors any of the administrative powers the

                                       3.
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Committee is authorized to exercise (and references in this Plan to the Board
shall thereafter be to the Committee or such a subcommittee), subject, however,
to such resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board may abolish the Committee at
any time and revest in the Board the administration of the Plan.

4.   Common Stock Subject to the Plan.

     (a) Subject to the provisions of paragraph 13 relating to adjustments upon
changes in securities, the Common Stock that may be sold pursuant to Rights
granted under the Plan shall not exceed in the aggregate two hundred fifty
thousand (250,000) shares (the "Reserved Shares").  As of each January 1,
starting with January 1, 2001 and continuing through and including January 1,
2010, the number of Reserved Shares will be automatically increased by the least
of (i) one percent (1%) of the total number of shares of Common Stock
outstanding on such date, (ii) one hundred fifty thousand (150,000) shares or
(iii) a number determined by the Board.  If any Right granted under the Plan
shall for any reason terminate without having been exercised, the Common Stock
not purchased under such Right shall again become available for the Plan.

     (b) The Common Stock subject to the Plan may be unissued shares or shares
that have been bought on the open market at prevailing market prices or
otherwise.

5.   Grant of Rights; Offering.

     (a) The Board may from time to time grant or provide for the grant of
Rights to purchase Common Stock of the Company under the Plan to Eligible
Employees in an Offering on an Offering Date or Dates selected by the Board.
Each Offering shall be in such form and shall contain such terms and conditions
as the Board shall deem appropriate, which shall comply with the requirements of
Section 423(b)(5) of the Code that all Employees granted Rights to purchase
Common Stock under the Plan shall have the same rights and privileges. The terms
and conditions of an Offering shall be incorporated by reference into the Plan
and treated as part of the Plan. The provisions of separate Offerings need not
be identical, but each Offering shall include (through incorporation of the
provisions of this Plan by reference in the document comprising the Offering or
otherwise) the period during which the Offering shall be effective, which period
shall not exceed twenty-seven (27) months beginning with the Offering Date, and
the substance of the provisions contained in paragraphs 6 through 9, inclusive.

     (b) If a Participant has more than one Right outstanding under the Plan,
unless he or she otherwise indicates in agreements or notices delivered
hereunder:  (i) each agreement or notice delivered by that Participant will be
deemed to apply to all of his or her Rights under the Plan, and (ii) an earlier-
granted Right (or a Right with a lower exercise price, if two Rights have
identical grant dates) will be exercised to the fullest possible extent before a
later-granted Right (or a Right with a higher exercise price if two Rights have
identical grant dates) will be exercised.

6.   Eligibility.

     (a) Rights may be granted only to Employees of the Company or, as the Board
may designated as provided in subparagraph 3(b), to Employees of an Affiliate.

                                       4.
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         (i)    Except as provided in subparagraph 6(b), an Employee shall not
be eligible to be granted Rights under the Plan unless, on the Offering Date,
such Employee has been in the employ of the Company or the Affiliate, as the
case may be, for such continuous period preceding such grant as the Board may
require in the Offering, but in no event shall the required period of continuous
employment be equal to or greater than two (2) years.

         (ii)   The Board may provide in an Offering that Employees whose
customary employment is twenty (20) hours or less per week shall not be eligible
to participate.

         (iii)  The Board may provide in an Offering that Employees whose
customary employment is for not more than five (5) months in any calendar year
shall not be eligible to participate.

         (iv)   The Board may provide in an Offering that Employees who are
highly compensated Employees within the meaning of Section 423(b)(4)(D) of the
Code shall not be eligible to participate.

     (b) The Board may provide that each person who, during the course of an
Offering, first becomes an Eligible Employee will, on a date or dates specified
in the Offering which coincides with the day on which such person becomes an
Eligible Employee or which occurs thereafter, receive a Right under that
Offering, which Right shall thereafter be deemed to be a part of that Offering.
Such Right shall have the same characteristics as any Rights originally granted
under that Offering, as described herein, except that:

         (i)    the date on which such Right is granted shall be the "Offering
Date" of such Right for all purposes, including determination of the exercise
price of such Right;

         (ii)   the period of the Offering with respect to such Right shall
begin on its Offering Date and end coincident with the end of such Offering; and

         (iii)  the Board may provide that if such person first becomes an
Eligible Employee within a specified period of time before the end of the
Offering, he or she will not receive any Right under that Offering.

     (c) No Employee shall be eligible for the grant of any Rights under the
Plan if, immediately after any such Rights are granted, such Employee owns stock
possessing five percent (5%) or more of the total combined voting power or value
of all classes of stock of the Company or of any Affiliate. For purposes of this
subparagraph 6(c), the rules of Section 424(d) of the Code shall apply in
determining the stock ownership of any Employee, and stock which such Employee
may purchase under all outstanding rights and options shall be treated as stock
owned by such Employee.

     (d) An Eligible Employee may be granted Rights under the Plan only if such
Rights, together with any other Rights granted under all Employee Stock Purchase
Plans of the Company and any Affiliates, as specified by Section 423(b)(8) of
the Code, do not permit such Eligible Employee's rights to purchase common stock
of the Company or any Affiliate to accrue at a rate which exceeds twenty five
thousand dollars ($25,000) of the fair market value of such common

                                       5.
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stock (determined at the time such Rights are granted) for each calendar year in
which such Rights are outstanding at any time.

7.   Rights; Purchase Price.

     (a) On each Offering Date, each Eligible Employee, pursuant to an Offering
made under the Plan, shall be granted the Right to purchase up to the number of
Shares purchasable either:

         (i)    with a percentage designated by the Board not exceeding fifteen
percent (15%) of such Employee's Earnings (as defined by the Board in each
Offering) during the period which begins on the Offering Date (or such later
date as the Board determines for a particular Offering) and ends on the date
stated in the Offering, which date shall be no later than the end of the
Offering; or

         (ii)   with a maximum dollar amount designated by the Board that, as
the Board determines for a particular Offering, (1) shall be withheld, in whole
or in part, from such Employee's Earnings (as defined by the Board in each
Offering) during the period which begins on the Offering Date (or such later
date as the Board determines for a particular Offering) and ends on the date
stated in the Offering, which date shall be no later than the end of the
Offering and/or (2) shall be contributed, in whole or in part, by such Employee
during such period.

     (b) The Board shall establish one or more Purchase Dates during an Offering
on which Rights granted under the Plan shall be exercised and purchases of
Common Stock carried out in accordance with such Offering.

     (c) In connection with each Offering made under the Plan, the Board may
specify a maximum number of shares of Common Stock that may be purchased by any
Participant as well as a maximum aggregate number of shares of Common Stock that
may be purchased by all Participants pursuant to such Offering.  In addition, in
connection with each Offering that contains more than one Purchase Date, the
Board may specify a maximum aggregate number of shares of Common Stock that may
be purchased by all Participants on any given Purchase Date under the Offering.
If the aggregate purchase of Common Stock upon exercise of Rights granted under
the Offering would exceed any such maximum aggregate amount, the Board shall
make a pro rata allocation of the Common Stock available in as nearly a uniform
manner as shall be practicable and as it shall deem to be equitable.

     (d) The purchase price of Common Stock acquired pursuant to Rights granted
under the Plan shall be not less than the lesser of:

         (i)    an amount equal to eighty-five percent (85%) of the fair market
value of the Common Stock on the Offering Date; or

         (ii)   an amount equal to eighty-five percent (85%) of the fair market
value of the Common Stock on the Purchase Date.

                                       6.
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8.   Participation; Withdrawal; Termination.

     (a) An Eligible Employee may become a Participant in the Plan pursuant to
an Offering by delivering a participation agreement to the Company within the
time specified in the Offering, in such form as the Company provides. Each such
agreement shall authorize payroll deductions of up to the maximum percentage
specified by the Board of such Employee's Earnings during the Offering (as
defined in each Offering). The payroll deductions made for each Participant
shall be credited to a bookkeeping account for such Participant under the Plan
and either may be deposited with the general funds of the Company or may be
deposited in a separate account in the name of, and for the benefit of, such
Participant with a financial institution designated by the Company. To the
extent provided in the Offering, a Participant may reduce (including to zero) or
increase such payroll deductions. To the extent provided in the Offering, a
Participant may begin such payroll deductions after the beginning of the
Offering. A Participant may make additional payments into his or her account
only if specifically provided for in the Offering and only if the Participant
has not already had the maximum permitted amount withheld during the Offering.

     (b) At any time during an Offering, a Participant may terminate his or her
payroll deductions under the Plan and withdraw from the Offering by delivering
to the Company a notice of withdrawal in such form as the Company provides.
Such withdrawal may be elected at any time prior to the end of the Offering
except as provided by the Board in the Offering.  Upon such withdrawal from the
Offering by a Participant, the Company shall distribute to such Participant all
of his or her accumulated payroll deductions (reduced to the extent, if any,
such deductions have been used to acquire Common Stock for the Participant)
under the Offering, without interest unless otherwise specified in the Offering,
and such Participant's interest in that Offering shall be automatically
terminated.  A Participant's withdrawal from an Offering will have no effect
upon such Participant's eligibility to participate in any other Offerings under
the Plan but such Participant will be required to deliver a new participation
agreement in order to participate in subsequent Offerings under the Plan.

     (c) Rights granted pursuant to any Offering under the Plan shall terminate
immediately upon cessation of any participating Employee's employment with the
Company or a designated Affiliate for any reason (subject to any post-employment
participation period required by law) or other lack of eligibility. The Company
shall distribute to such terminated Employee all of his or her accumulated
payroll deductions (reduced to the extent, if any, such deductions have been
used to acquire Common Stock for the terminated Employee) under the Offering,
without interest unless otherwise specified in the Offering. If the accumulated
payroll deductions have been deposited with the Company's general funds, then
the distribution shall be made from the general funds of the Company, without
interest.  If the accumulated payroll deductions have been deposited in a
separate account with a financial institution as provided in subparagraph 8(a),
then the distribution shall be made from the separate account, without interest
unless otherwise specified in the Offering.

     (d) Rights granted under the Plan shall not be transferable by a
Participant otherwise than by will or the laws of descent and distribution, or
by a beneficiary designation as provided in paragraph 15 and, otherwise during
his or her lifetime, shall be exercisable only by the person to whom such Rights
are granted.

                                       7.
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9.   Exercise.

     (a) On each Purchase Date specified therefor in the relevant Offering, each
Participant's accumulated payroll deductions and other additional payments
specifically provided for in the Offering (without any increase for interest)
will be applied to the purchase of Common Stock up to the maximum number of
shares permitted pursuant to the terms of the Plan and the applicable Offering,
at the purchase price specified in the Offering. No fractional shares shall be
issued upon the exercise of Rights granted under the Plan unless specifically
provided for in the Offering.

     (b) Unless otherwise specifically provided in the Offering, the amount, if
any, of accumulated payroll deductions remaining in any Participant's account
after the purchase of Common Stock that is equal to the amount required to
purchase one or more whole shares on the final Purchase Date of the Offering
shall be distributed in full to the Participant at the end of the Offering,
without interest. If the accumulated payroll deductions have been deposited with
the Company's general funds, then the distribution shall be made from the
general funds of the Company, without interest. If the accumulated payroll
deductions have been deposited in a separate account with a financial
institution as provided in subparagraph 8(a), then the distribution shall be
made from the separate account, without interest unless otherwise specified in
the Offering.

     (c) No Rights granted under the Plan may be exercised to any extent unless
the Common Stock to be issued upon such exercise under the Plan (including
Rights granted thereunder) are covered by an effective registration statement
pursuant to the Securities Act and the Plan is in material compliance with all
applicable state, foreign and other securities and other laws applicable to the
Plan. If on a Purchase Date in any Offering hereunder the Plan is not so
registered or in such compliance, no Rights granted under the Plan or any
Offering shall be exercised on such Purchase Date, and the Purchase Date shall
be delayed until the Plan is subject to such an effective registration statement
and such compliance, except that the Purchase Date shall not be delayed more
than twelve (12) months and the Purchase Date shall in no event be more than
twenty-seven (27) months from the Offering Date. If, on the Purchase Date of any
Offering hereunder, as delayed to the maximum extent permissible, the Plan is
not registered and in such compliance, no Rights granted under the Plan or any
Offering shall be exercised and all payroll deductions accumulated during the
Offering (reduced to the extent, if any, such deductions have been used to
acquire Common Stock) shall be distributed to the Participants, without interest
unless otherwise specified in the Offering. If the accumulated payroll
deductions have been deposited with the Company's general funds, then the
distribution shall be made from the general funds of the Company, without
interest. If the accumulated payroll deductions have been deposited in a
separate account with a financial institution as provided in subparagraph 8(a),
then the distribution shall be made from the separate account, without interest
unless otherwise specified in the Offering.

10.  Covenants of the Company.

     (a) During the terms of the Rights granted under the Plan, the Company
shall ensure that the number of shares of Common Stock required to satisfy such
Rights are available.

                                       8.
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     (b) The Company shall seek to obtain from each federal, state, foreign or
other regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to issue and sell Common Stock upon exercise of the
Rights granted under the Plan.  If, after reasonable efforts, the Company is
unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale
of Common Stock under the Plan, the Company shall be relieved from any liability
for failure to issue and sell Common Stock upon exercise of such Rights unless
and until such authority is obtained.

11.  Use of Proceeds from Common Stock.

     Proceeds from the sale of Common Stock pursuant to Rights granted under the
Plan shall constitute general funds of the Company.

12.  Rights as a Stockholder.

     A Participant shall not be deemed to be the holder of, or to have any of
the rights of a holder with respect to, Common Stock subject to Rights granted
under the Plan unless and until the Participant's Common Stock acquired upon
exercise of Rights under the Plan are recorded in the books of the Company.

13.  Adjustments upon Changes in Securities.

     (a) If any change is made in the Common Stock subject to the Plan, or
subject to any Right, without the receipt of consideration by the Company
(through merger, consolidation, reorganization, recapitalization,
reincorporation, stock dividend, dividend in property other than cash, stock
split, liquidating dividend, combination of shares, exchange of shares, change
in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the
class(es) and maximum number of shares of Common Stock subject to the Plan
pursuant to subparagraph 4(a), and the outstanding Rights will be appropriately
adjusted in the class(es), number of shares of Common Stock and purchase limits
of such outstanding Rights. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction that
does not involve the receipt of consideration by the Company.)

     (b) In the event of:  (i) a dissolution, liquidation or sale of all or
substantially all of the securities or assets of the Company, (ii) a merger or
consolidation in which the Company is not the surviving corporation or (iii) a
reverse merger in which the Company is the surviving corporation but the Common
Stock outstanding immediately preceding the merger is converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, then any surviving corporation may assume outstanding Rights or
substitute similar rights for those outstanding under the Plan.  In the event
that no surviving corporation assumes outstanding Rights or substitutes similar
rights therefor, participants' accumulated payroll deductions shall be used to
purchase Common Stock immediately prior to the transaction described above and
the participants' Rights under the ongoing Offering shall terminate immediately
following such purchase.

                                       9.
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14.  Amendment of the Plan.

     (a) The Board at any time, and from time to time, may amend the Plan.
However, except as provided in paragraph 13 relating to adjustments upon changes
in securities and except as to minor amendments to benefit the administration of
the Plan, to take account of a change in legislation or to obtain or maintain
favorable tax, exchange control or regulatory treatment for Participants or the
Company or any Affiliate, no amendment shall be effective unless approved by the
stockholders of the Company to the extent stockholder approval is necessary for
the Plan to satisfy the requirements of Section 423 of the Code, Rule 16b-3
under the Exchange Act and any Nasdaq or other securities exchange listing
requirements.  Currently under the Code, stockholder approval within twelve (12)
months before or after the adoption of the amendment is required where the
amendment will:

         (i)    Increase the number of shares of Common Stock reserved for
Rights under the Plan;

         (ii)   Modify the provisions as to eligibility for participation in the
Plan to the extent such modification requires stockholder approval in order for
the Plan to obtain employee stock purchase plan treatment under Section 423 of
the Code or to comply with the requirements of Rule 16b-3; or

         (iii)  Modify the Plan in any other way if such modification requires
stockholder approval in order for the Plan to obtain employee stock purchase
plan treatment under Section 423 of the Code or to comply with the requirements
of Rule 16b-3.

     (b) It is expressly contemplated that the Board may amend the Plan in any
respect the Board deems necessary or advisable to provide Employees with the
maximum benefits provided or to be provided under the provisions of the Code and
the regulations promulgated thereunder relating to Employee Stock Purchase Plans
and/or to bring the Plan and/or Rights granted under it into compliance
therewith.

     (c) Rights and obligations under any Rights granted before amendment of the
Plan shall not be impaired by any amendment of the Plan, except with the consent
of the person to whom such Rights were granted, or except as necessary to comply
with any laws or governmental regulations, or except as necessary to ensure that
the Plan and/or Rights granted under the Plan comply with the requirements of
Section 423 of the Code.

15.  Designation of Beneficiary.

     (a) A Participant may file a written designation of a beneficiary who is to
receive any Common Stock and/or cash, if any, from the Participant's account
under the Plan in the event of such Participant's death subsequent to the end of
an Offering but prior to delivery to the Participant of such Common Stock and
cash.  In addition, a Participant may file a written designation of a
beneficiary who is to receive any cash from the Participant's account under the
Plan in the event of such Participant's death during an Offering.

     (b) The Participant may change such designation of beneficiary at any time
by written notice. In the event of the death of a Participant and in the absence
of a beneficiary validly

                                      10.
<PAGE>

designated under the Plan who is living at the time of such Participant's death,
the Company shall deliver such Common Stock and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company,
in its sole discretion, may deliver such Common Stock and/or cash to the spouse
or to any one or more dependents or relatives of the Participant, or if no
spouse, dependent or relative is known to the Company, then to such other person
as the Company may designate.

16.  Termination or Suspension of the Plan.

     (a) The Board in its discretion may suspend or terminate the Plan at any
time. No Rights may be granted under the Plan while the Plan is suspended or
after it is terminated.

     (b) Rights and obligations under any Rights granted while the Plan is in
effect shall not be impaired by suspension or termination of the Plan, except as
expressly provided in the Plan or with the consent of the person to whom such
Rights were granted, or except as necessary to comply with any laws or
governmental regulation, or except as necessary to ensure that the Plan and/or
Rights granted under the Plan comply with the requirements of Section 423 of the
Code.

17.  Effective Date of Plan.

     The Plan shall become effective as determined by the Board, but no Rights
granted under the Plan shall be exercised unless and until the Plan has been
approved by the stockholders of the Company within twelve (12) months before or
after the date the Plan is adopted by the Board, which date may be prior to the
effective date set by the Board.

                                      11.
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                                  Telik, Inc.
                       2000 Employee Stock Purchase Plan
                                   Offering

                            Adopted March 22, 2000
                       Amended Effective June 8, 2000

1.   Grant of Rights.

     (a)  The Board of Directors ("Board") of Telik, Inc., a Delaware
corporation (the "Company"), pursuant to the Company's 2000 Employee Stock
Purchase Plan (the "Plan"), hereby authorizes the grant of Rights to purchase
the common stock of the Company (the "Common Stock") to all Eligible Employees
(an "Offering"). Defined terms not explicitly defined in this Offering but
defined in the Plan shall have the same definitions as in the Plan. In the event
of any conflict between the provisions of an Offering and those of the Plan
(including interpretations, amendments, rules and regulations that may from time
to time be promulgated and adopted pursuant to the Plan), the provisions of the
Plan shall control.

     (b)  An "Offering Date" is the first day of an Offering. An Offering may
consist of one purchase period or may be divided into shorter purchase periods
("Purchase Periods"). A "Purchase Date" is the last day of a Purchase Period or
the Offering, as the case may be.

     (c)  Except as otherwise provided, each Offering hereunder shall be twenty-
four (24) months long and shall be divided into four (4) shorter Purchase
Periods approximately six (6) months in length. Offerings shall be consecutive.
A new Offering shall begin the day after the immediately preceding Offering
ends.

     (d) The first Offering shall begin simultaneously with the effectiveness
of the Company's registration statement under the Securities Act of 1933 with
respect to the initial public offering of the Common Stock and end on August
31, 2002 (the "Initial Offering"). The Initial Offering will be divided into
four (4) shorter Purchase Periods of approximately six (6) months in duration,
with the initial Purchase Period ending on February 28, 2001, the second
Purchase Period ending on August 31, 2001, the third Purchase Period ending on
February 28, 2002 and the fourth Purchase Period ending on August 31, 2002.

     (e) Thereafter, new Offerings shall begin on each September 1, beginning
with September 1, 2002, and each such Offering shall end on the day prior to
the second anniversary of its Offering Date.

     (f)  Notwithstanding anything to the contrary, in the event that the fair
market value of a share of Common Stock on any Purchase Date during an Offering
is less than the fair market value of a share of Common Stock on the Offering
Date of such Offering, then following the purchase of Common Stock on such
Purchase Date: (i) the Offering shall terminate and (ii) all participants in the
just-terminated Offering shall automatically be enrolled in a new Offering that
shall commence on the day following the Purchase Date on the same terms on which
such participants were enrolled in the terminated Offering. Such new Offering
shall end on the day prior to the second anniversary of its Offering Date.
<PAGE>

     (g)  Prior to the commencement of any Offering, the Board may change any or
all terms of such Offering and any subsequent Offerings. The granting of Rights
pursuant to each Offering hereunder shall occur on each respective Offering Date
unless, prior to such date (i) the Board (or such Committee) determines that
such Offering shall not occur, or (ii) no shares of Common Stock remain
available for issuance under the Plan in connection with the Offering.

2.   Eligible Employees.

     (a)  All employees of the Company and each of its Affiliates incorporated
in the United States shall be granted Rights to purchase Common Stock under each
Offering on the Offering Date of such Offering, provided that each such employee
otherwise meets the employment requirements of subparagraph 6(a) of the Plan and
has been continuously employed for at least ten (10) days on the Offering Date
of such Offering (an "Eligible Employee"); however, the ten- (10-) day
eligibility requirement shall be waived with respect to the Initial Offering
only.

     (b)  Notwithstanding the foregoing, the following employees shall not be
Eligible Employees or be granted Rights under an Offering: (i) part-time or
seasonal employees whose customary employment is twenty (20) hours or less per
week or five (5) months or less per calendar year or (ii) 5% stockholders
(including ownership through unexercised options) described in subparagraph 6(c)
of the Plan.

     (c)  Notwithstanding the foregoing, each person who first becomes an
Eligible Employee during any Offering will, on the next March 1 or September 1
during that Offering, receive a Right under such Offering, which Right shall
thereafter be deemed to be a part of the Offering. Such Right shall have the
same characteristics as any Rights originally granted under the Offering except
that:

          (i)    the date on which such Right is granted shall be the "Offering
Date" of such Right for all purposes, including determination of the exercise
price of such Right; and

          (ii)   the Offering for such Right shall begin on its Offering Date
and end coincident with the end of the ongoing Offering.

3.   Rights.

     (a)  Subject to the limitations contained herein and in the Plan, on each
Offering Date each Eligible Employee shall be granted the Right to purchase the
number of shares of Common Stock purchasable with up to fifteen percent (15%) of
such Eligible Employee's Earnings paid during such Offering after the Eligible
Employee first commences participation; provided, however, that:

          (i)    no employee may purchase Common Stock on a particular Purchase
Date that would result in more than fifteen percent (15%) of such employee's
Earnings in the period from the Offering Date to such Purchase Date having been
applied to purchase Common Stock under all ongoing Offerings under the Plan and
all other Company plans intended to qualify as "employee stock purchase plans"
under Section 423 of the Internal Revenue Code of 1986, as amended (the "Code");

                                      2.
<PAGE>

          (ii)   no employee may purchase more than five thousand (5,000) shares
of Common Stock on any Purchase Date;

          (iii)  no Eligible Employee shall be granted any Right under the Plan
which permits such Eligible Employee's Right to purchase Common Stock under this
Plan and all other employee stock purchase plans (described in Section 423 of
the Code) of the Company to accrue at a rate which exceeds twenty-five thousand
dollars ($25,000) of fair market value of such Common Stock (determined at the
time such Right is granted) for each calendar year in which such Right is
outstanding at any time; and

          (iv)   the maximum aggregate number of shares of Common Stock
available to be purchased by all Eligible Employees under an Offering shall be
the number of shares remaining available under the Plan on the Offering Date. If
the aggregate purchase of shares of Common Stock upon exercise of Rights granted
under the Offering would exceed the maximum aggregate number of shares of Common
Stock available, the Board shall make a pro rata allocation of the shares of
Common Stock available in a uniform and equitable manner.

     (b)  For this Offering, "Earnings" means the total compensation paid to an
employee, including all salary, wages (including amounts elected to be deferred
by the employee, that would otherwise have been paid, under any cash or deferred
arrangement established by the Company), overtime pay, commissions, bonuses, and
other remuneration paid directly to the employee, but excluding profit sharing,
the cost of employee benefits paid for by the Company, education or tuition
reimbursements, imputed income arising under any Company group insurance or
benefit program, traveling expenses, business and moving expense reimbursements,
income received in connection with stock options, contributions made by the
Company under any employee benefit plan, and similar items of compensation.

4.   Purchase Price.

     (a)  The purchase price of the Common Stock under the Offering shall be the
lesser of eighty-five percent (85%) of the fair market value of the Common Stock
on the Offering Date or eighty-five percent (85%) of the fair market value of
the Common Stock on the Purchase Date, in each case rounded up to the nearest
whole cent per Share.

     (b)  For the Initial Offering, the fair market value of the Common Stock at
the time when the Offering commences shall be the price per Share at which
Common Stock is first sold to the public in the Company's initial public
offering as specified in the final prospectus with respect to that offering.

5.   Participation.

     (a)  An Eligible Employee may elect to participate in an Offering only at
the beginning of the Offering or on any subsequent March 1 or September 1.

     (b)  A Participant who is enrolled in an Offering automatically will be
enrolled in the next Offering that commences after the current Offering ends.

                                      3.
<PAGE>

     (c)  An Eligible Employee shall become a Participant in an Offering by
delivering an agreement authorizing payroll deductions. Such deductions must be
in whole percentages, with a minimum percentage of one percent (1%) and a
maximum percentage of fifteen percent (15%) of Earnings. A Participant may not
make additional payments into his or her account. The agreement shall be made on
such enrollment form as the Company provides, and must be delivered to the
Company at least ten (10) days before the Offering Date, or before such later
date specified in subparagraph 2(c), in advance of the date of participation to
be effective, unless a later time for filing the enrollment form is set by the
Board for all Eligible Employees with respect to a given Offering Date. For the
Initial Offering, the time for filing an enrollment form and commencing
participation for individuals who are Eligible Employees on the Offering Date
for the Initial Offering may be after the Offering Date, as determined by the
Company and communicated to such Eligible Employees.

     (d)  If the agreement authorizing payroll deductions is required to be
delivered to the Company or designated Affiliate a specified number of days
before the Offering Date to be effective, then an employee who becomes eligible
during the required delivery period shall not be considered to be an Eligible
Employee at the beginning of the Offering but may elect to participate during
the Offering as provided in subparagraph 2(c).

6.   Changing Participation Level during Offering; Withdrawal from Offering.

     (a)  A Participant may not increase his or her deductions during the course
of a Purchase Period. A Participant may increase or decrease his or her
deductions prior to the beginning of a new Purchase Period or a new Offering, to
be effective at the beginning of such new Purchase Period or new Offering. A
Participant shall make a change in his or her participation level by delivering
a notice to the Company in such form as the Company provides and up to ten (10)
days before the start of such new Purchase Period or new Offering (or such
shorter period of time determined by the Company and communicated to
Participants).

     (b)  A Participant may reduce (including to zero) his or her deductions
once (and only once) during a Purchase Period, effective as soon as
administratively practicable. A Participant shall make a change in his or her
participation level by delivering a notice to the Company in such form as the
Company provides up to ten (10) days before the end of such Purchase Period (or
such shorter period of time determined by the Company and communicated to
Participants).

     (c)  Except as otherwise specifically provided herein, a Participant may
not increase or decrease his or her participation level during the course of an
Offering.

     (d)  Notwithstanding the foregoing, a Participant may withdraw from an
Offering and receive his or her accumulated payroll deductions from the Offering
(reduced to the extent, if any, such deductions have been used to acquire Common
Stock for the Participant on any prior Purchase Dates), without interest, or
reduce his or her participation percentage to zero (0), at any time prior to the
end of the Offering, excluding only each ten (10) day period immediately
preceding a Purchase Date (or such shorter period of time determined by the
Company and communicated to Participants) by delivering a withdrawal notice to
the Company in such form as the Company provides.

                                      4.
<PAGE>

7.   Purchases.

     Subject to the limitations contained herein, on each Purchase Date, each
Participant's accumulated payroll deductions (without any increase for interest)
shall be applied to the purchase of whole shares of Common Stock, up to the
maximum number of shares permitted under the Plan and the Offering.

8.   Notices and Agreements.

     Any notices or agreements provided for in an Offering or the Plan shall be
given in writing, in a form provided by the Company, and unless specifically
provided for in the Plan or this Offering shall be deemed effectively given upon
receipt or, in the case of notices and agreements delivered by the Company, five
(5) days after deposit in the United States mail, postage prepaid.

9.   Exercise Contingent on Stockholder Approval.

     The Rights granted under an Offering are subject to the approval of the
Plan by the stockholders as required for the Plan to obtain treatment as a tax-
qualified employee stock purchase plan under Section 423 of the Code or to
comply with the requirements of Rule 16b promulgated under the Securities
Exchange Act of 1934, as amended.

10.  Offering Subject to Plan.

     Each Offering is subject to all the provisions of the Plan, and its
provisions are hereby made a part of the Offering, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time
be promulgated and adopted pursuant to the Plan.

                                      5.<PAGE>

                                                                   EXHIBIT 10.5

                        COLLABORATIVE RESEARCH AGREEMENT

     This Collaborative Research Agreement (the "Agreement") is made as of the
24th day of March, 1999 ("Effective Date"), by and between Telik, Inc., a
Delaware corporation having a place of business at 750 Gateway Boulevard, South
San Francisco, California 94080, U.S.A. ("Telik") and Sankyo Company, Ltd., a
Japanese corporation having a place of business at 5-1, Nihonbashi Honcho 3-
chome, Chuo-ku, Tokyo 103-8426, Japan ("Sankyo").  Telik and Sankyo shall be
referred to herein individually as a "Party" and collectively as the "Parties."

                               Recitals

     Whereas, Telik possesses a library of compounds ("Telik Library") and
proprietary technology which enables it to classify and search compounds
according to their protein-binding capabilities ("TRAP Technology");

     Whereas, Sankyo has certain biological targets ("Sankyo Targets") for which
it desires to find activity-modulating compounds; and

     Whereas, Sankyo wishes to evaluate the ability of the Telik Library and
TRAP Technology to identify compounds that affect Sankyo Targets and that may
lead to candidates for pharmaceutical development;

     Now, Therefore, in consideration of the foregoing premises and the
covenants set forth below, the parties hereby agree as follows:

1.   [ * ]  Fee.

     1.1  Payment of Fee.  Sankyo shall pay Telik a [*] two million dollar
($2,000,000) [*] in [*] [*], and [*]. Telik shall send invoices to Sankyo [*] to
the [*]. The installment payments shall be made in U.S. dollars by wire transfer
to a bank account to be specified by Telik.

     1.2  Taxes.  Sample Supply Fee payments shall be made without deduction
other than such amount (if any) Sankyo is required by law to deduct or withhold.
If the Sample Supply Fee is subject to such deductions or other withholdings, it
shall be increased by an amount which shall equal, as nearly as possible, the
amount required to be deducted or withheld.

2.   Screening Activity.

     2.1  Screening Term.  The term during which Sankyo may perform the
screening activities set forth in this Article 2 (the "Screening Term") shall
begin on the Effective Date and

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

                                       1
<PAGE>

expire [ * ] later, provided however, that if Sankyo elects to choose Substitute
Selected Targets as provided in Section 2.4(a)(i), the Screening Term shall be
extended as described therein.

     2.2  Target Selection. During the first [ * ] of the Screening Term,
Sankyo may notify Telik in writing of Sankyo Targets against which Sankyo wishes
to screen compounds provided by Telik ("Proposed Targets").  Sankyo's
notification must provide the molecular identity of the Proposed Targets and
such other information as Telik may reasonably request to permit Telik to
confirm that none of such Proposed Targets is identical to, overlapping or
otherwise in conflict with (i) targets included in, or subject to any then-
existing restriction resulting from, any research collaboration between Telik
and a third party or (ii) targets that Telik was already actively pursuing prior
to receipt of Sankyo's notice (collectively, "Reserved Targets").  Telik shall
notify Sankyo in writing whether or not each Proposed Target is a Reserved
Target.  If a Proposed Target is not a Reserved Target, then the Proposed Target
will be deemed a "Selected Target" upon dispatch of Telik's notification.  Telik
shall list all Proposed Targets in the Appendix to this Agreement and shall
update such Appendix, as necessary, to indicate whether a Proposed Target
becomes a Selected Target and to delete all Reserved Targets.  Sankyo may
designate no more than ten (10) Selected Targets.

     2.3  Active Molecule Criteria.  Prior to the initiation of compound
screening against each Selected Target, the Parties will agree on the screening
results required for a compound provided by Telik as set forth in Section 2.4 to
be classified as an "Active Molecule."

     2.4  Screening Activity and Data Collection.

          (a)  Within [ * ] of the later of (i) the date that a Proposed Target
is deemed a Selected Target or (ii) the Parties' agreement regarding the Active
Molecule criteria for that Selected Target, Telik shall, based upon its
knowledge of the Telik Library and using the TRAP Technology, select and provide
to Sankyo approximately [ * ] compounds ("Initial Compounds") from the Telik
Library that Telik believes, in its sole discretion, represent maximum chemical
compound diversity in the Telik Library.  Telik shall provide such Initial
Compounds in quantities of approximately [ * ] per Initial Compound, per
Selected Target.  Sankyo shall screen each Initial Compound for activity in
relation to the Selected Target and provide all data (including but not limited
to the concentration at which a compound elicits a response which is 50% of the
maximum response in the assay being applied (the "EC\50\") for each Initial
Compound) resulting therefrom ("Initial Results") to Telik within [ * ] of
Sankyo's receipt of the Initial Compounds.  Sankyo hereby covenants that it will
not use the Initial Compounds for any purpose other than that set forth in this
Section 2.4(a), it will cease using the Initial Compounds after completion of
testing as set forth in this Section 2.4(a), and it will store and return unused
Initial Compounds as set forth in Section 2.4(f).

               (i) If none of the Initial Compounds has an EC\50\ equal to or
less than [ * ] or the Initial Results otherwise contain insufficient useful
information for Telik to select Secondary Compounds pursuant to Section 2.4(b),
then Telik will provide Sankyo with another set of Initial Compounds (the
"Substitute Initial Compounds"), in quantities of approximately [ * ] per
Substitute Initial Compound, per Selected Target. The Substitute Initial
Compounds shall be treated by both Parties as if they were Initial Compounds;
provided, however, that if none of

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

                                       2
<PAGE>

the Substitute Initial Compounds has an EC\50\ equal to or less than [ * ] or
the Initial Results from the Substitute Initial Compounds otherwise contain
insufficient useful information for Telik to select Secondary Compounds, then

                   (1) Telik shall not be obligated to provide any additional
Compounds to Sankyo with respect to the relevant Selected Target, and Telik's
obligations under Article 5 with respect to such Selected Target shall
terminate; and

                   (2) Sankyo may, at its election, not later than [ * ] after
Telik's receipt of the Initial Results for the Substitute Initial Compounds for
a particular Selected Target, choose a new target in substitution for such
Selected Target ("Substitute Selected Target"), not to exceed ten (10)
Substitute Selected Targets in the aggregate. The Substitute Selected Targets
shall be treated by both Parties as if they were Selected Targets. If Sankyo
exercises its right to choose a Substitute Selected Target, the Screening Term
shall be extended as necessary to complete the screening process for such
Substitute Selected Target within the schedule described in this Article 2, but
in no event shall the Screening Term be extended by more than [ * ].

          (b)  Within [ * ] after receipt of the Initial Results, Telik shall,
based upon the Initial Results and using the TRAP Technology or any other search
technology available to Telik, select and provide to Sankyo an appropriate
number of additional compounds ("Secondary Compounds") from the Telik Library
that Telik believes, in its sole discretion, will exhibit the greatest
likelihood of activity in relation to the Selected Target.  Sankyo shall screen
each Secondary Compound for selected activity in relation to the Selected Target
and provide all data (including but not limited to the EC\50\ for each Secondary
Compound) resulting therefrom ("Secondary Results") to Telik within [ * ] of
Sankyo's receipt of the Secondary Compounds.  Sankyo hereby covenants that it
will not use the Secondary Compounds for any purpose other than that set forth
in this Section 2.4(b), it will cease using the Secondary Compounds after
completion of testing as set forth in this Section 2.4(b), and it will store and
return unused Secondary Compounds as set forth in Section 2.4(f).

          (c)  Within [ * ] after receipt of the Secondary Results, Telik shall,
based upon the Secondary Results and using the TRAP Technology or any other
search technology available to Telik, select and provide to Sankyo [ * ]
additional compounds ("Tertiary Compounds") from the Telik Library that Telik
believes, in its sole discretion, will exhibit the greatest likelihood of
activity in relation to the Selected Target.  Sankyo shall screen each Tertiary
Compound for selected activity in relation to the Selected Target and provide
all data (including but not limited to the EC\50\ for each Tertiary Compound)
resulting therefrom ("Tertiary Results") to Telik within [ * ] of Sankyo's
receipt of the Tertiary Compounds.  Sankyo hereby covenants that it will not use
the Tertiary Compounds for any purpose other than that set forth in this Section
2.4(c), it will cease using the Tertiary Compounds after completion of testing
as set forth in this Section 2.4(c), and it will store and return unused
Tertiary Compounds as set forth in Section 2.4(f).

          (d)  If Sankyo and Telik jointly determine that further screening
activity is necessary, then based upon the Tertiary Results and using the TRAP
Technology or any other search technology available to Telik, Telik shall select
and provide to Sankyo [ * ] additional compounds ("Quaternary Compounds") from
the Telik Library that Telik believes, in its sole

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

                                       3
<PAGE>

discretion, will exhibit the greatest likelihood of assay activity in relation
to the Selected Target. Sankyo will screen each Quaternary Compound for selected
activity in relation to the Selected Target and provide Telik all data
(including but not limited to the EC\50\ for each Quaternary Compound) resulting
therefrom ("Quaternary Results") to Telik within [ * ] of Sankyo's receipt of
the Quaternary Compounds. Sankyo hereby covenants that it will not use the
Quaternary Compounds for any purpose other than that set forth in this Section
2.4(d), it will cease using the Quaternary Compounds after completion of testing
as set forth in this Section 2.4(d), and it will store and return unused
Quaternary Compounds as set forth in Section 2.4(f).

          (e)  The total number of Initial Compounds, Secondary Compounds,
Tertiary Compounds and Quaternary Compounds provided by Telik pursuant to this
Section 2.4 (collectively, the "Provided Compounds") shall be in the range of
approximately [ * ] to approximately [ * ] Provided Compounds per Selected
Target.  Telik shall provide to Sankyo any information Telik may have in its
possession regarding appropriate usage and handling of the Provided Compounds
concurrent with the delivery to Sankyo of such Provided Compounds.

          (f)  Beginning with receipt by Sankyo and continuing through the
completion of testing under Section 2.4(a), 2.4(b), 2.4(c) or 2.4(d), Sankyo
shall store any unused Initial Compounds, Secondary Compounds, Tertiary
Compounds or Quaternary Compounds, as applicable, in a secure location. Within
[ * ] of the completion of screening against a Selected Target, Sankyo will
return to Telik all unused Provided Compounds for that Selected Target unless
specifically authorized by Telik, in writing, to do otherwise.

3.   Identification and Disclosure of Chemical Structures.

     3.1  Not later than [ * ] after sending the Tertiary Results or, if
applicable, the Quaternary Results to Telik, Sankyo shall provide Telik with a
written list of the Provided Compounds in which Sankyo has an interest.  Telik
shall determine which of these Provided Compounds qualify as Active Molecules
and shall provide to Sankyo the two dimensional representations of the chemical
structures of the Active Molecules on Sankyo's list (the "Disclosed Active
Molecules").  In addition, to provide Sankyo with additional information for
evaluating the potential of the Disclosed Active Molecules, Telik may also
provide the two dimensional representations of the chemical structures of
certain other Provided Compounds, selected by Telik in its sole discretion, that
did not qualify as Active Molecules.  Sankyo will use the structural information
provided by Telik solely to evaluate whether it wishes to exercise its option,
set forth in Section 4.1, for a license to develop and commercialize such
Disclosed Active Molecules.  Sankyo hereby covenants that it will not use the
structural information for any other purpose.  If Sankyo does not submit to
Telik a written list of the Provided Compounds in which Sankyo has an interest
within the time permitted under this Section 3.1, Telik's obligations under
Article 5 with respect to the relevant Selected Target shall terminate.

     3.2  The parties anticipate that Telik will be conducting research
collaborations with third parties during the Screening Term with respect to
targets other than Selected Targets.  Telik will not provide to Sankyo under
Section 2.4 compounds as to which a third party has exercised an option to
obtain or has obtained license rights, or which has otherwise been reserved by a
third party ("Reserved Compound").  Nonetheless, the parties acknowledge that
the compounds provided to Sankyo under this Agreement may include compounds
provided to third parties

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

                                       4
<PAGE>

under research collaborations or similar arrangements with such third parties.
Accordingly, a third party may, while Sankyo is screening a particular compound,
designate that compound a Reserved Compound. In such event, Telik will promptly
inform Sankyo that such compound has become a Reserved Compound, and all of
Sankyo's rights regarding that Reserved Compound, including those rights set
forth in Articles 2, 3 and 4, shall terminate. In no event will Telik provide
Sankyo with the chemical structure of such Reserved Compound. In the event that
a third party terminates or otherwise waives its rights to a Reserved Compound
that Sankyo has screened and which qualifies as an Active Molecule, Telik will
notify Sankyo that such compound is no longer a Reserved Compound and Sankyo may
elect, in its discretion and by written notice to Telik, to receive the two
dimensional representation of its chemical structure from Telik. Such compound
shall thereafter be deemed a Disclosed Active Molecule subject to Section 3.1
and Article 4.

4.   Option for Development and Commercialization License.

     4.1  License Option.  Effective upon Telik's delivery to Sankyo of the
structures of all of the Disclosed Active Molecules for a particular Selected
Target (the "Option Effective Date"), Telik hereby grants to Sankyo an option to
acquire an exclusive, worldwide license to develop and commercialize any or all
Disclosed Active Molecules for such Selected Target (the "License Option").  The
term of such option shall commence on the Option Effective Date and expire [ * ]
thereafter (the "Option Term").

     4.2  Exercise of License Option.  Sankyo shall exercise the License Option
described in Section 4.1 by (i) providing written notice to Telik, prior to the
expiration of the Option Term, identifying each Disclosed Active Molecule to
which Sankyo desires to procure a license (a "Sankyo-Reserved Molecule") and
(ii) negotiating and entering into a mutually agreed license agreement (the
"License Agreement") as set forth in Section 4.4 within [ * ] of the Option
Effective Date.

     4.3  Consolidation of Licensing Negotiations.  To facilitate the execution
of a single License Agreement covering Sankyo-Reserved Molecules related to more
than one Selected Target, Telik may, in its sole discretion, agree to extend the
negotiation period for a Selected Target if Sankyo provides, during the
negotiation period for that Selected Target, timely written notification of its
desire to procure a license for Disclosed Active Molecules related to one or
more additional Selected Targets.  As a result of such an extension, the parties
will have until [ * ] after the Option Effective Date for the last Selected
Target as to which Sankyo has provided timely notification under Section 4.2 to
negotiate and execute a License Agreement covering all such Selected Targets.

     4.4  License Agreement.  If Sankyo exercises the License Option, Telik
intends to provide Sankyo with exclusive, worldwide rights to all know-how and
under all patents, patent applications and patent claims owned by Telik to the
extent necessary or useful to the development and commercialization of products
that, in the course of their discovery, development or production, utilize or
incorporate the relevant Licensed Active Molecule (as defined below) or a
derivative thereof.  To this end, in the License Agreement Telik shall grant to
Sankyo an exclusive, worldwide license (with the right to sublicense) to make,
have made, use, import, offer for sale and sell such products.  The License
Agreement shall contain such other

[*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE sECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE sECURITIES ACT OF 1933, AS
AMENDED.

                                       5
<PAGE>

terms as are consistent with terms then-applied to products of similar market
potential arising out of or developed in the biopharmaceutical industry,
provided however that (i) the royalty rate payable to Telik on net sales of
products to be developed and commercialized under such license shall not exceed
[ * ]; and (ii) except for any patents or patent applications assigned to Sankyo
under such a License Agreement, in the event that any inventions arise out of
the development and commercialization of products incorporating the relevant
Licensed Active Molecule or a derivative thereof, inventions made by either
party shall be owned by the party that made such inventions and inventions made
jointly by the parties shall be owned jointly by the parties. Upon the execution
of a License Agreement, any Sankyo-Reserved Molecule that is subject to the
License Agreement shall become a "Licensed Active Molecule." If Sankyo prefers
the assignment by Telik of certain patent application(s) or patent(s) in lieu of
an exclusive license for such applications or patents, Telik is willing to
consider such a request during the negotiation of the License Agreement.

5.   Exclusivity.

     5.1  Research.  Commencing on Telik's acceptance of a Proposed Target as a
Selected Target, Telik shall not thereafter perform research directed at such
Selected Target other than that research which is within the scope of this
Agreement, until the earlier of (i) the expiration or termination of this
Agreement, (ii) the expiration of the Option Term without receipt by Telik of
written notice from Sankyo under Section 4.2, (iii) expiration of the time to
enter a License Agreement as described in Sections 4.2 and 4.3, (iv) Telik has
delivered all results to Sankyo under Section 2.4 without identification of an
Active Molecule with respect to such Selected Target as provided in Section 3.1;
or (v) the Initial Results are insufficient to permit Telik to select Secondary
Compounds as described in Section 2.4(a)(i).

     5.2  Sankyo-Reserved Molecules. Upon receipt of Sankyo's notice pursuant to
Section 4.2, Telik shall remove each Sankyo-Reserved Molecule identified in such
notice from the Telik Library, and shall not conduct or permit to be conducted,
or grant any third party the right to conduct, any research, development or
commercialization of such Sankyo-Reserved Molecules, provided that:

          (a) Telik's obligations under this Article 5 with respect to any
Sankyo-Reserved Molecule not then the subject of an executed License Agreement
shall terminate [ * ] after the Option Effective Date for the relevant Selected
Target (or, if Telik grants an extension pursuant to Section 4.3, [ * ] after
the Option Effective Date for the last Selected Target as to which Sankyo
provided timely notification under Section 4.2).  Telik shall thereafter be free
to conduct or grant any third party the right to conduct research, development
and commercialization activities with respect to such Sankyo-Reserved Molecules.

          (b) Telik's obligations under this Article 5 with respect to any
Selected Target for which no Sankyo-Reserved Molecule is then the subject of an
executed License Agreement shall terminate [ * ] after the Option Effective Date
for such Selected Target (or, if Telik grants an extension pursuant to Section
4.3, [ * ] after the Option Effective Date for the last Selected Target as to
which Sankyo provided timely notification under Section 4.2).  Telik shall
thereafter be free to conduct or grant any third party the right to conduct
research, development and commercialization activities with respect to such
Selected Target, and Sankyo shall be free to conduct or grant any third party
the right to conduct research, development and commercialization activities with
respect to such Selected Target.

6.   Ownership of Data and Intellectual Property.

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

                                       6
<PAGE>

     6.1  Data Ownership.  Prior to the expiration of the License Option for all
Disclosed Active Molecules for a Selected Target, the Initial Results, Secondary
Results, Tertiary Results, and Quaternary Results, if applicable, (the "Combined
Screening Results") pertaining to those Disclosed Active Molecules shall be
jointly owned by the Parties.  Upon the execution of a License Agreement
pursuant to Article 4, Telik shall grant to Sankyo the exclusive right to use
Telik's interest in the Combined Screening Results pertaining to the relevant
Licensed Active Molecules in the manufacture, use and sale of products
incorporating or based upon such Licensed Active Molecules, including analogues,
derivatives, or formulations thereof, and in the manufacture, use and sale of
products incorporating compounds identified via analysis of structure-activity
information gathered from the Combined Screening Results.  Upon the later of (i)
the expiration of the License Option for a Disclosed Active Molecule or (ii) the
passing of [ * ] from the Option Effective Date for a Sankyo-Reserved Molecule
(or, if Telik grants an extension pursuant to Section 4.3, [ * ] after the
Option Effective Date for the last Selected Target as to which Sankyo provided
timely notification under Section 4.2) for which no License Agreement was
executed, the Combined Screening Results pertaining to the Disclosed Active
Molecule or Sankyo-Reserved Molecule shall be solely owned by Telik;  Telik
shall have the right to use such Combined Screening Results for any purpose, and
Sankyo shall not have any right to use such Combined Screening Results.

     6.2  Ownership of Telik Library, Provided Compounds and TRAP Technology.
All right, title and interest in and to the Telik Library, Provided Compounds,
TRAP Technology, and any know-how, patents, or patent applications controlled by
Telik and pertaining to the above items shall remain exclusively with Telik,
subject only to the rights granted to Sankyo under Sections 2.4, 4.1, 4.4 and
5.2.  Sankyo agrees not to obtain or attempt to obtain patents on the Telik
Library, Provided Compounds, TRAP Technology, or use thereof without the express
written consent of Telik.

     6.3  Inventions. Notwithstanding the ownership of data set forth in Section
6.1, any inventions or discoveries (whether patentable or not) pertaining to,
and all information resulting directly from the activities of either party
pursuant to Articles 2 and 3 (the "Inventions"), will be solely owned by Telik.
Sankyo shall promptly disclose to Telik any Invention resulting from the
activities of Sankyo, its employees, agents or affiliates.  Sankyo agrees not to
obtain or attempt to obtain patents on the Inventions without the express
written consent of Telik.

          (a) Prior to the execution of a License Agreement pursuant to Article
4, Telik shall have the sole right to file, prosecute, maintain, enforce and
defend all patent applications and patents for Inventions and shall pay all
costs and fees incurred with respect to such activities.  Sankyo shall provide
Telik, at Telik's expense, any assistance reasonably requested by Telik for the
filing, prosecution, maintenance, enforcement or defense of such patents or
patent applications.  If Telik decides not to file a patent application for an
Invention and Sankyo so requests in writing, Telik shall file and prosecute such
a patent application and maintain any patent arising therefrom for so long as
Sankyo promptly pays all costs and fees incurred with respect to such activities
(including any costs associated with assistance provided by Sankyo at Telik's
request).  Telik shall not be obligated to file, prosecute or maintain any
patent application or patent for an Invention other than that for which Sankyo
has complied with the requirements set forth in the preceding sentence.  In no
event shall Telik be obligated to enforce or defend such

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

                                       7
<PAGE>

patent application or patent for Inventions. Within [ * ] after the filing of a
patent application for an Invention, Telik shall provide Sankyo with written
notification that such filing has been made.

          (b)  Upon the execution of a License Agreement pursuant to Article 4,
Sankyo shall reimburse Telik for all patent filing, prosecution and maintenance
costs (including attorneys' fees) incurred by Telik as of the effective date of
such License Agreement regarding any patent or patent application for Inventions
licensed to Sankyo thereunder.  Thereafter, Sankyo shall promptly pay all patent
filing, prosecution and maintenance expenses for any patent or patent
application for Inventions licensed to Sankyo under the License Agreement.

7.   Representations and Warranties.

     7.1  Each Party represents and warrants to the other that:

          (a)  It will exercise due care in performing its obligations under the
Agreement.

          (b)  All documentation and other information conveyed by one Party to
another hereunder or in connection herewith, was, at the time it was conveyed or
provided, accurate and complete in light of the purposes for which it was
intended.

     7.2  THE PROVIDED COMPOUNDS ARE BEING SUPPLIED TO SANKYO ON AN "AS IS"
BASIS WITH NO WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR THAT THEY ARE FREE
FROM THE RIGHTFUL CLAIM OF ANY THIRD PARTY, BY WAY OF INFRINGEMENT OR THE LIKE.
TELIK MAKES NO REPRESENTATIONS THAT USE OF THE PROVIDED COMPOUNDS WILL NOT
INFRINGE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTIES.

8.   Acknowledgments and Covenants by Sankyo.

     8.1  Sankyo acknowledges and agrees that the Provided Compounds may have
biological and/or chemical properties that are unpredictable and unknown at the
time of transfer.  Sankyo hereby covenants that it will use the Provided
Compounds with caution and prudence and it will not use the Provided Compounds
for testing in or treatment of humans or in any other test not part of the
Appendix.

     8.2  Sankyo covenants that it will maintain reasonable security measures,
no less strict than it maintains to protect its own valuable tangible property,
against loss, theft or destruction of the Provided Compounds.

     8.3  Sankyo covenants that it shall not attempt to reverse engineer or
ascertain, by any means, the chemical structure or any other information
concerning any Provided Compound unless and until Telik has provided the
chemical structure to Sankyo.

9.   Confidentiality.

[*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES aCT OF 1933, AS
AMENDED.

                                       8
<PAGE>

     9.1  Definition of Confidential Information.  "Confidential Information"
shall mean any and all knowledge, know-how, Proposed Targets, Selected Targets,
Combined Screening Results, structures of Provided Compounds, practices,
processes, or other information received by one Party from the other Party
pursuant to this Agreement.

     9.2  Nondisclosure of Confidential Information.  Except to the extent
expressly authorized by this Agreement or otherwise agreed in writing by the
Parties, the Parties agree that, for the term of this Agreement and for [ * ]
after its expiration or termination, the receiving Party shall keep confidential
and shall not publish or otherwise disclose and shall not use for any purpose
other than as provided for in this Agreement any Confidential Information,
hereinafter defined, furnished to it by the other Party pursuant to this
Agreement unless the receiving Party can demonstrate by competent written proof
that such Confidential Information:

          (a)  was already known to the receiving Party, other than under an
obligation of confidentiality, at the time of disclosure by the other Party;

          (b)  was generally available to the public or otherwise part of the
public domain at the time of its disclosure to the receiving Party;

          (c)  became generally available to the public or otherwise part of the
public domain after its disclosure and other than through any act or omission of
the receiving Party in breach of such Agreements;

          (d)  was disclosed to the receiving Party, other than under an
obligation of confidentiality to a third party, by a third party who had no
obligation to the disclosing Party not to disclose such information to others;
or

          (e)  was independently discovered or developed by the receiving Party
without the use of Confidential Information belonging to the disclosing Party.

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

                                       9
<PAGE>

     9.3  Authorized Disclosure.  Each Party may disclose Confidential
Information belonging to the other Party to the extent such disclosure is
reasonably necessary in the following instances:

          (a)  Filing or prosecuting patents relating to Inventions or licensed
products;

          (b)  Regulatory filings;

          (c)  Prosecuting or defending litigation;

          (d)  Complying with applicable governmental regulations;

          (e)  Disclosure to Affiliates, sublicensees, employees, consultants,
or agents, each of whom prior to disclosure must be bound by similar obligations
of confidentiality and non-use at least equivalent in scope to those set forth
in this Article 9;

          (f)  Disclosure to investment bankers, investors, and potential
investors of information relevant to their assessment of the disclosing company,
such as the existence of the Agreement, the general nature of the diseases for
which targets have been selected, the number (but not the identity) of targets
selected and the status of the project on a per target basis (without
identifying the target); and

          (g)  Disclosure by Telik, more than [ * ] after the expiration of a
deadline applicable to Sankyo as set forth in Sections 4.1, 4.2 or 4.3 without
appropriate action or response by Sankyo, of the Combined Screening Results
against the relevant, identified Selected Target for a Disclosed Active
Molecule, to third parties interested in pursuing such Selected Target or
Disclosed Active Molecule, provided however, that Telik will not disclose to
such third party that Sankyo selected such Selected Target.

In any event, the Parties agree to take all reasonable action to avoid
disclosure of Confidential Information except as permitted hereunder.

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

                                       10
<PAGE>

     9.4  Publicity.  Any publication, news release or other public announcement
relating to this Agreement or to the performance hereunder, shall be first
reviewed and approved by both Parties, which approval shall not be unreasonably
withheld.

10.  Term; Termination.

     10.1 Term.  This Agreement shall become effective as of the Effective Date
and unless earlier terminated as provided in this Article 10, shall expire on
the later of (i) the expiration of the time to enter all License Agreements
under Section 4.2, or (ii) thirty-six (36) months after the Effective Date.

     10.2 Termination for Default.  In the event that either party to this
Agreement shall be in default of any of its material obligations hereunder and
shall fail to remedy such default within [ * ] after receipt of written notice
thereof, the party not in default shall have the option of terminating this
Agreement by giving written notice thereof, notwithstanding anything to the
contrary contained in this Agreement.

     10.3 Effect of Termination.

          (a)  In General.  Termination of this Agreement shall not relieve the
Parties of any obligations accruing prior to such termination.  In the event of
termination by Telik pursuant to Section 10.2 as a result of Sankyo's default of
a material obligation, Sankyo shall pay Telik any Sample Supply Fee accrued at
the time of termination but not yet paid.  Except to the extent necessary to
allow the Parties to exploit their respective rights pursuant to Section 6,
promptly after termination of this Agreement each Party shall return or dispose
of any know-how of the other in accordance with the instructions of the other,
including without limitation any compounds, assays or other biological or
chemical materials.

          (b)  Default by Telik.  Following Sankyo's termination of this
Agreement pursuant to Section 10.2 as a result of Telik's default of a material
obligation, [ * ].  If, as of the date of termination, Sankyo has not made
payments to Telik equal to or greater than [ * ], Sankyo shall make such
additional payment to Telik within [ * ] of the effective date of termination.
If, as of the date of termination, Sankyo's payments total an amount greater
than [ * ], Telik shall refund to Sankyo any excess amounts within [ * ] of the
effective date of termination.  Telik shall (i) disclose to Sankyo the
structures for the Provided Compounds that have been tested by Sankyo and
qualify as Active Molecules as of the date of Sankyo's termination and (ii)
grant to Sankyo a nonexclusive, royalty-free, perpetual worldwide license (with
the right to sublicense) to develop and commercialize products that, in the
course of their discovery, development or production, utilize or incorporate
such Disclosed Active Molecules.

     10.4 Surviving Obligations. The terms of Articles 6 and 9 and Section 12.9
of this Agreement shall survive expiration or termination of this Agreement.

11.  Governing Law; Dispute Resolution.

     11.1 Governing Law.  This Agreement shall be governed by and construed in
accordance with the domestic laws of the State of California, (i) without giving
effect to any choice or conflict of law provision or rule that would cause the
application of the laws of any

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

                                       11
<PAGE>

jurisdiction other than the State of California, and (ii) except that the rights
of the parties to resolve by arbitration any dispute arising between them
regarding the subject matter of this Agreement shall not be governed by the
California arbitration act or international arbitration act (Cal. Code of Civ.
Proc. (S) 1280 et seq. and 1297.11 et seq.) but rather by the United States
Arbitration Act (9 U.S.C. (S)(S) 1-14, 201-208).

     11.2 Dispute Resolution.  In the event of any controversy or claim arising
out of, relating to or in connection with any provision of this Agreement, the
Parties shall try to settle their differences amicably and in good faith between
themselves first, by referring the disputed matter to the respective heads of
research of each Party and, if not resolved by the research heads, by referring
the disputed matter to the respective Chief Executive Officer of each Party.  In
the event such executives are unable to resolve such dispute within such thirty
(30) day period, either Party may invoke the provisions of Section 11.3.

     11.3 Arbitration.  Upon failure to resolve any controversy or claim
arising out of, relating to or in connection with any provision of this
Agreement using the dispute resolution procedure described in Section 11.2, and
except as provided in Section 11.3(c) below, any dispute, controversy or claim
arising out of or relating to the validity, construction, enforceability or
performance of this Agreement, including disputes relating to alleged breach or
to termination of this Agreement, other than disputes which are expressly
prohibited herein from being resolved by this mechanism, shall be settled by
binding Alternative Dispute Resolution ("ADR") in the manner described below:

          (a)  If a party intends to begin an ADR to resolve a dispute, such
party shall provide written notice (the "ADR Request") to counsel for the other
party informing such other party of such intention and the issues to be
resolved.  From the date of the ADR Request and until such time as any matter
has been finally settled by ADR, the running of the time periods contained in
Article 10 as to which a party must cure a breach of this Agreement shall be
suspended as to the subject matter of the dispute.

          (b)  Within ten (10) business days after the receipt of the ADR
Request, the other party may, by written notice to the counsel for the party
initiating ADR, add additional issues to be resolved.

          (c)  Any dispute regarding the validity or enforceability of a patent
or trademark applicable to a product shall be submitted to a court of competent
jurisdiction in the country in which such patent or trademark right exists.

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

                                       12
<PAGE>

     11.4 Procedure. The ADR shall be conducted pursuant to JAMS/ENDISPUTE
Rules A and C then in effect.  Notwithstanding those rules, the following
provisions shall apply to the ADR hereunder.

          (a)  Arbitrator.  The arbitration shall be conducted by a panel of
three arbitrators ("the Arbitrators").  The Arbitrators shall be selected from a
pool of retired independent federal judges to be presented to the parties by
JAMS/ENDISPUTE.  Neither party shall engage in ex parte contact with the
arbitrator.

          (b)  Proceedings. The time periods set forth in the JAMS/ENDISPUTE
rules shall be followed, unless a party can demonstrate to the Arbitrator that
the complexity of the issues or other reasons warrant the extension of one or
more of the time tables. The Arbitrator shall not award punitive damages to
either party and the parties shall be deemed to have waived any right to such
damages.  The Arbitrator shall apply the Federal Rules of Evidence to the
hearing.  The proceeding shall take place in Honolulu, Hawaii in the English
language.  The fees of the Arbitrators and JAMS/ENDISPUTE shall be paid by the
losing party, which shall be designated by the Arbitrator.  If the Arbitrator is
unable to designate a losing party, it shall so state and the fees shall be
split equally between the parties.

          (c)  Award.  The Arbitrator is empowered to award any remedy allowed
by law, including money damages, prejudgment interest and attorneys' fees, and
to grant final, complete, interim, or interlocutory relief, including injunctive
relief but excluding punitive damages.

     11.5 Confidentiality.  The ADR proceeding, the existence of any dispute
submitted to ADR, and the award shall be confidential and the Panel shall issue
appropriate protective orders to safeguard each party's Confidential
Information.  Except as required by law or in connection with the enforcement of
an award hereunder, no party shall disclose (or instruct the Panel to disclose)
such Confidential Information without prior written consent of each other party.

     11.6  Judicial Enforcement.  The parties agree that judgment on any
arbitral award issued pursuant to this Article 11 shall be entered in the United
States District Court for the Northern District of California or, in the event
such court does not have subject matter jurisdiction over the dispute in
question, such judgment shall be entered in the Superior Court of the State of
California, in the County of San Mateo.

12.  Miscellaneous.

     12.1 Notices.  All notices required or permitted to be given under this
Agreement shall be in writing and shall be mailed by registered or certified
mail, postage prepaid, addressed to the signatory to whom such notice is
required or permitted to be given and transmitted by facsimile to the number
indicated below.  All notices shall be deemed to have been given when mailed, as
evidenced by the postmark at the point of mailing, or transmitted by facsimile.

     All notices to Sankyo shall be addressed as follows:

     Sankyo Company, Ltd.

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

                                       13
<PAGE>

     2-58, Hiromachi 1-chome
     Shinagawa-ku
     Tokyo 140-8710
     JAPAN
     Attention:  Dr. Hiroshi Fukumi
     Fax: 81-3-5436-8569

     with a copy to:

     Sankyo Company, Ltd.
     2-58, Hiromachi 1-chome
     Shinagawa-ku
     Tokyo 140-8710
     JAPAN
     Attention:  Dr. Hidenori Shimotsu
     Fax:  81-3-5436-8561

     All notices to Telik shall be addressed as follows:

     Telik, Inc.
     750 Gateway Boulevard
     South San Francisco, California 94080
     U.S.A.
     Attention:  President
     Fax: (650) 244-9388

     with a copy to:

     Cooley Godward LLP
     Five Palo Alto Square
     3000 El Camino Real
     Palo Alto, California 94306
     U.S.A.
     Attention: Robert L. Jones, Esq.
     Fax:  (650) 857-0663

     Any Party may, by written notice to the other, designate a new addressee,
address or facsimile number to which notices to the Party giving the notice
shall thereafter be mailed or faxed.

     12.2 Force Majeure.  No Party shall be liable for any delay or failure of
performance to the extent such delay or failure is caused by circumstances
beyond its reasonable control and that by the exercise of due diligence it is
unable to prevent, provided that the Party claiming excuse uses its best efforts
to overcome the same.

     12.3 Entirety Of Agreement.  This Agreement embodies the entire, final and
complete agreement and understanding between the Parties and replaces and
supersedes all prior

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

                                       14
<PAGE>

discussions and agreements between them with respect to its subject matter
except as expressly stated herein. No modification or waiver of any terms or
conditions hereof shall be effective unless made in writing and signed by a duly
authorized officer of each Party.

     12.4  Non-Waiver.  The failure of a Party in any one or more instances to
insist upon strict performance of any of the terms and conditions of this
Agreement shall not constitute a waiver or relinquishment, to any extent, of the
right to assert or rely upon any such terms or conditions on any future
occasion.

     12.5  Disclaimer Of Agency.  Neither Party is, or will be deemed to be, the
legal representative or agent of the other, nor shall either Party have the
right or authority to assume, create, or incur any third party liability or
obligation of any kind, express or implied, against or in the name of or on
behalf of another except as expressly set forth in this Agreement.

     12.6  Severability.  If a court of competent jurisdiction declares any
provision of this Agreement invalid or unenforceable, or if any government or
other agency having jurisdiction over either Telik or Sankyo deems any provision
to be contrary to any laws, then that provision shall be severed and the
remainder of the Agreement shall continue in full force and effect.  To the
extent possible, the Parties shall revise such invalidated provision in a manner
that will render such provision valid without impairing the Parties' original
interest.

     12.7  Affiliates; Assignment.  Except as otherwise provided in this Section
12.7, neither Party may assign its rights or obligations under this Agreement
without the prior written consent of the other Party, such consent not to be
unreasonably withheld, except that a Party may assign its rights or obligations
to a third party in connection with the merger, consolidation, reorganization or
acquisition of stock or assets affecting substantially all of the assets or
actual voting control of the assigning Party.  This Agreement shall be binding
upon the successors and permitted assigns of the Parties. Any attempted
delegation or assignment not in accordance with this Section 12.7 shall be of no
force or effect.

     12.8  Headings.  The headings contained in this Agreement have been added
for convenience only and shall not be construed as limiting.

     12.9  Limitation Of Liability and Indemnification.  No Party shall be
liable to another for indirect, incidental, consequential or special damages,
including but not limited to lost profits, arising from or relating to any
breach of this Agreement, regardless of any notice of the possibility of such
damages.  In no event shall Telik be liable for any use by Sankyo of the
Provided Compounds.  Sankyo hereby agrees to indemnify, defend and hold Telik
harmless from damages for any loss, claim, injury or liability or whatsoever
kind or nature, which may arise from Sankyo's use, handling or storage of the
Provided Compounds.

     12.10 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be an original and all of which shall
constitute together the same document.

     12.11 English Language.  This Agreement has been prepared in the English
language and shall be construed in the English language.

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

                                       15
<PAGE>

     12.12 Further Assurances. Each party hereby agrees to execute, acknowledge
and deliver such further instruments, and to do all such other acts, as may be
necessary or appropriate in order to carry out the purposes and intent of this
Agreement.

     IN WITNESS WHEREOF, the parties have by duly authorized persons, executed
this Agreement, as of the date first above written.

<TABLE>
<CAPTION>
Sankyo Company, Ltd.                  Telik, Inc.
<S>  <C>                           <C>
By:    /s/ Tetsuo Hiraoka             By:    /s/ Reinaldo A. Gomez
       ----------------------------          ----------------------------------
Title: Director, Research Institute   Title: Vice President Corporate Alliances
       ----------------------------          ----------------------------------
Date:  March 23, 1999                 Date:  March 24, 1999
       ----------------------------          ----------------------------------
</TABLE>

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

                                       16
<PAGE>

                                    APPENDIX

                          SELECTED TARGETS AND ASSAYS

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

                                       17
<PAGE>

                                    APPENDIX

                Targets, Assays and Criteria of Active Molecules
                                    5/13/99

[*]

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

                                       18
<PAGE>

September 30, 1999

Dr. Yoshiki Matsui
Vice Director, Research Planning Department
and
Dr. Hidenori Shimotsu
Research Planning Department
Sankyo Co., Ltd.
2-58, Hiromachi 1-chome
Shinagawa-ku, Tokyo 140
Japan

Dear Dr. Matsui and Dr. Shimotsu:

     Reference is made to that certain Agreement dated as of March 24, 1999
     between Sankyo Company, Ltd. and Telik, Inc. (the "Agreement"; capitalized
     terms used and not otherwise defined herein shall have the meanings
     ascribed to such terms in the Agreement).  Subject to your agreement
     herewith, as of the date indicated below, the notices provided to Sankyo
     stated in Article 12.1 of the Agreement shall be addressed as follows:

          Sankyo Company, Ltd.
          2-58, Hiromachi 1-chome
          Shinagawa-ku
          Tokyo 140
          JAPAN
          Attention: Dr. Hidenori Shimotsu
          Fax: 81-3-5436-8561

     with a copy to:

          Sankyo Company, Ltd.
          2-58, Hiromachi 1-chome
          Shinagawa-ku
          Tokyo 140
          JAPAN
          Attention: Dr. Yoshiki Matsui
          Fax: 81-3-5436-8561

Page 2
September 30, 1999

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

                                       19
<PAGE>

     If you are in agreement with the foregoing, please execute this letter
agreement where indicated below whereupon it will become an agreement between us
on the terms indicated above.

                                       Sincerely,

                                       TELIK, INC.

                                       By:     /s/ Reinaldo F. Gomez
                                               ----------------------------
                                       Name:   Reinaldo F. Gomez
                                               ----------------------------
                                       Title:  VP Corporate Alliance
                                               ----------------------------

Accepted and Agreed to
this ____ of October, 1999.

 SANKYO COMPANY, LTD.

 By:     /s/ Yukio Sughnura
        ----------------------------
 Name:   Yukio Sughnura, Ph.D.
        ----------------------------
 Title:  Senior Director
        ----------------------------
        Research Planning Department
        ----------------------------
        Sankyo Co., Ltd.
        ----------------------------

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

                                       20
<PAGE>

                                    APPENDIX

                Targets, Assays and Criteria of Active Molecules
                                Ammended 2/16/00

Selected Targets
----------------

[*]

Substitute Selected Targets
---------------------------

[*]

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

                                       21

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