Document:

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                                                                   EXHIBIT 10.33

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                            COLLABORATION AGREEMENT

         This COLLABORATION AGREEMENT (the "Agreement") dated as of November 29,
1999 (the "Effective Date"), is entered into between Ixsys, Inc., a Delaware
corporation ("Ixsys"), having a place of business at 3520 Dunhill Street, San
Diego, CA 92121, and Bio-Management Inc., a Nevada corporation
("Bio-Management"), having a place of business at Four Hook Road, Sharon Hill,
PA 19079.

         NOW THEREFORE, in consideration of the promises and mutual covenants
contained herein, the parties agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         For purposes of this Agreement, the terms defined in the Article 1
shall have the respective meanings set forth below:

         1.1      "Affiliate" shall mean, with respect to any Person, any other
Person which directly or indirectly controls, is controlled by, or is under
common control with, such Person. A Person shall be regarded as in control of
another Person if it owns, or directly or indirectly controls, at least forty
percent (40%) of the voting stock or other ownership interest of the other
Person, or if it directly or indirectly possesses the power to direct or cause
the direction of the management and policies of the other Person by any means
whatsoever.

         1.2      "BLA" shall mean a Biologics License Application, Product
License Application, New Drug Application, or other application for marketing
approval of a product for use in any human or veterinary therapeutic application
submitted to the applicable governing health authority of any country.

         1.3      "Candidate Molecules" shall mean, collectively, monoclonal
antibody ("mAb") HUIV26 and mAb HUI77 as provided by Bio-Management to Ixsys
hereunder.

         1.4      "Confidential Information" shall mean, with respect to a
party, all information of any kind whatsoever (including without limitation,
data, compilations, formulae, models, patent disclosures, procedures, processes,
projections, protocols, results of experimentation and testing, specifications,
strategies and techniques), and all tangible and intangible embodiments thereof
of any kind whatsoever (including without limitation, apparatus, compositions,
documents, drawings, machinery, patent applications, records, reports), which is
disclosed by such party to the other party and is marked, identified as or
otherwise acknowledged to be confidential at the time of disclosure to the other
party. Notwithstanding the foregoing, Confidential Information of a party shall
not include information which the other party can establish by written
documentation (a) to have been publicly known prior to disclosure of such
information by the disclosing party to the other party, (b) to have become
publicly known, without fault on the part of the other party, subsequent to
disclosure of such information by the disclosing party to the other party, (c)
to have been received by the other party at any time from a source, other than
the disclosing party, rightfully having possession of and the right to disclose
such information, (d) to

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have been otherwise known by the other party prior to disclosure of such
information by the disclosing party to the other party, or (e) to have been
independently developed by employees or agents of the other party without access
to or use of such information disclosed by the disclosing party to the other
party.

         1.5      "Derived" or "derived" shall mean obtained, developed,
created, synthesized, designed, derived or resulting from, based upon or
otherwise generated (whether directly or indirectly, or in whole or in part).

         1.6      "Field" shall mean human and veterinary therapeutic and
diagnostic applications.

         1.7      "First Commercial Sale" shall mean, with respect to any
Product, the first sale of such Product by a party, its Affiliates or
sublicensees to customers who are not Affiliates in any country after all
applicable marketing and pricing approvals (if any) have been granted by the
applicable governing health authority of such country.

         1.8      "FDA" shall mean the United States Food and Drug
Administration, or the successor thereto.

         1.9      "IND" shall mean an Investigational New Drug application, or
any other filing with the governing regulatory of any country to commence
clinical testing of a product for use in any human or veterinary therapeutic
application submitted to the applicable governing health authority of any
country.

         1.10     "Materials" shall mean the Candidate Molecules, DNA sequence
information and the cDNA to encode Candidate Molecules and the hybridoma cell
lines expressing the Candidate Molecules.

         1.11     "Net Sales" shall mean, with respect to each Product, the
gross sales price charged by Bio-Management, its Affiliates and sublicensees or
Ixsys, its Affiliates and sublicensees for sales of such Product to
non-Affiliate customers, less, to the extent such amounts are deducted by the
customer from the amounts paid to the seller: (i) normal and customary trade,
cash and quality credits, discounts, refunds or government rebates; (ii) credits
for claims, allowances or returns; retroactive price reductions; chargebacks or
the like; and (iii) sales taxes, duties and other governmental charges
(including value added tax), but excluding what is commonly known as income
taxes. Net Sales shall not include sales among Bio-Management, its Affiliates
and sublicensees or Ixsys its Affiliates and sublicensees for resale, provided
that Net Sales shall include the amounts invoiced by Bio-Management, its
Affiliates and sublicensees or Ixsys its Affiliates and sublicensees to Third
Parties on the resale of such Products.

         1.12     "Person" shall mean an individual, corporation, partnership,
limited liability company, trust, business trust, association, joint stock
company, joint venture, pool, syndicate, sole proprietorship, unincorporated
organization, governmental authority or any other form of entity not
specifically listed herein.

         1.13     "Phase II Clinical Trial" shall mean a human clinical trial in
any country that is intended to initially evaluate the effectiveness of a
product for a particular indication or

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indications in patients with the disease or indication under study, or that
would otherwise satisfy requirements of 21 CFR 312.21(b), or its foreign
equivalent.

         1.14     "PMA" shall mean a Product Marketing Application, 510(k)
application or other application for marketing approval of a product for use in
any human or veterinary diagnostic application submitted to the applicable
governing health authority of any country.

         1.15     "Product" shall mean any product for use in the Field, which
is a composition that incorporates one or more Program Antibodies or is derived
from one or more Program Antibodies.

         1.16     "Program" shall mean the collaborative research program
described in Section 3.1 below to optimize and humanize the Candidate Molecules,
and to use the Program Antibodies (as defined below) to evaluate their
diagnostic and therapeutic potential.

         1.17     "Program Antibody" shall mean the optimized and humanized
compositions of matter developed under the Program, and the cDNA encoding such
compositions of matter, delivered to Bio-Management hereunder.

         1.18     "Program Invention" shall mean any invention, discovery,
composition, technology, data or information (whether or not patentable), made
or conceived by employees or others on behalf of Ixsys, Bio-Management or both
in the performance of the Program during the term of the Program, excluding
Program Antibodies.

         1.19     "Research Plan" shall mean the written research work plan
established by the parties pursuant to Section 3.2 below, as modified from time
to time pursuant to Section 3.2.

         1.20     "Third Party" shall mean any Person other than Ixsys,
Bio-Management and their respective Affiliates.

                                    ARTICLE 2
                         REPRESENTATIONS AND WARRANTIES

         Each party hereby represents and warrants to the other party as
follows:

         2.1      Corporate Existence. Such party is a corporation duly
organized, validly existing and in good standing under the laws of the state in
which it is incorporated.

         2.2      Authorization and Enforcement of Obligations. Such party (a)
has the corporate power and authority and the legal right to enter into this
Agreement and to perform its obligations hereunder, and (b) has taken all
necessary corporate action on its part to authorize the execution and delivery
of this Agreement and the performance of its obligations hereunder. This
Agreement has been duly executed and delivered on behalf of such party, and
constitutes a legal, valid, binding obligation, enforceable against such party
in accordance with its terms.

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         2.3      Consents. All necessary consents, approvals and authorizations
of all governmental authorities and other Persons required to be obtained by
such party in connection with this Agreement have been obtained.

         2.4      No Conflict. The execution and delivery of this Agreement and
the performance of such party's obligations hereunder (a) do not conflict with
or violate any requirement of applicable laws or regulations and (b) do not
conflict with, or constitute a default under, any contractual obligation of such
party.

         2.5      DISCLAIMER OF WARRANTIES. NEITHER PARTY MAKES ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE MATERIALS
(INCLUDING BUT NOT LIMITED TO THE CANDIDATE MOLECULES), INCLUDING WITHOUT
LIMITATION ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
NONINFRINGEMENT OF THE PATENT RIGHTS OR OTHER INTELLECTUAL PROPERTY RIGHTS OF
ANY OTHER PERSON.

                                    ARTICLE 3
                                   THE PROGRAM

         3.1      Collaborative Research. The goal of the Program is: (a)
humanize and optimize Candidate Molecules, and (b) to perform certain
preclinical development.

         3.2      Conduct of Program. An initial Research Plan is attached as
Schedule A. Either party may recommend changes to the Research Plan at any time
during the Program Term. Such change shall only be effective if in a written
amendment duly executed by the parties.

         3.3      Specific Obligations of Bio-Management. Bio-Management shall
provide Ixsys with sufficient quantities of the Materials, sufficient quantities
of a single soluble antigen per Candidate Molecule for purposes of screening and
affinity determination (such single soluable antigen per Candidate molecule
shall be specified in writing prior to the transfer of the Materials to Ixsys),
antigens to which the Materials are directed, and any Bio-Management technology
necessary or useful for the humanization and optimization in accordance with the
Program, and any information known and available to Bio-Management concerning
the storage of the Materials that may be unique or peculiar to the Materials.
Bio-Management shall use its commercially reasonable efforts to perform its
obligations under the Program in accordance with the Research Plan.
Bio-Management shall perform its obligations under the Program in accordance
with high scientific and professional standards, and in compliance with all
material respects within the requirements of applicable laws and regulations and
shall provide all reasonable assistance to Ixsys in connection with Ixsys'
performance of the Program.

         3.4      Specific Obligations of Ixsys. Ixsys shall optimize and
humanize the Candidate Molecules as set forth in the Research Plan. Ixsys shall
use its commercially reasonable efforts to perform its obligations under the
Program in accordance with the Research Plan. Ixsys shall provide the personnel,
materials, equipment and other resources required to conduct its obligations
under the Program. Ixsys shall perform its obligations under the Program in

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accordance with high scientific and professional standards, and in compliance in
all material respects with the requirements of applicable laws and regulations.

         3.5      Materials. Ixsys shall use the Materials solely for purposes
of conducting the Program, at its address listed above, under commercially and
scientifically reasonable containment conditions, and not for any commercial,
business or other use or purpose, without the prior express written consent of
Bio-Management. Notwithstanding anything to the contrary in this Agreement,
Ixsys shall not transfer or provide access to the Materials to any Third Party,
without the prior express written consent of Bio-Management. Ixsys shall not
transfer or transport the Materials from its address identified above to any
other location. Ixsys shall limit access to the Materials to those of its
employees working on its premises, to the extent such access is reasonably
necessary in connection with its activities as expressly authorized by this
Agreement; provided, however that each such employee shall be bound by
confidentiality obligations at least as stringent as those in Section 5.1.

         3.6      Funding of the Program. In consideration of Ixsys' performance
of its obligations under the Research Plan or the identification of a Program
Antibody demonstrating an affinity equal to or greater than [***] times the
initial affinity of the Candidate Molecule from which that Program Antibody was
derived as determined by an in vitro assay to be agreed upon by the parties,
Bio-Management shall pay to Ixsys the amounts set forth in Schedule B.

         3.7      Term of the Program. Unless earlier terminated as provided
herein, the term of the Program and this Agreement shall begin on the Effective
Date and continue for the subsequent seven (7) months (the "Program Term").
Bio-Management shall have the right (in its sole discretion), exercisable by
giving Ixsys express written notice of such exercise not less than thirty (30)
days prior to the expiration of the Program Term, to extend the Program Term
with respect to the following Candidate Molecules: mAb XL313 and mAb FM155, for
the period commencing on the date ninety (90) days following the date Ixsys
timely receives such notice of exercise from Bio-Management and continuing for
the subsequent seven (7) months.

         3.8      Results.

                  3.8.1    Reports. Within thirty (30) days following the end of
the initial seven (7) month period of the Program, within thirty (30) days
following the expiration or termination of the Program (if extended), and within
thirty (30) days after the end of each six (6) month period thereafter for the
following ten (10) years, each Party shall prepare, and provide to the other
party, a reasonably detailed written report which shall describe the work
performed by such party during that period, and the results achieved, to date
under this Agreement, together with copies of all data resulting from the tests
and evaluation performed by such party to date under the Agreement. Such reports
shall include, without limitation, pre-clinical animal studies of efficacy,
toxicity and immunogenicity; and regulatory filings such as Investigational New
Drug ("IND") applications, and Phase I, Phase II and Phase III FDA reports.

                  3.8.2    Records. Each party shall maintain records, in
sufficient detail and in good scientific manner appropriate for patent purposes,
which shall be complete and accurate and shall fully and properly reflect all
work done and results achieved in the performance of the Program.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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                  3.8.3    Inspection of Records. Each party shall have the
right, during normal business hours and on reasonable written notice, to inspect
and copy such records of the other party regarding the work done and results
achieved in the performance of the Program, to the extent reasonably necessary
to enable such party to conduct its obligations under the Program or to exercise
its rights hereunder. Each party shall maintain such records of the other party
(together with the information contained therein) in confidence in accordance
with Article 5 below and shall not use such records (or information) except to
the extent otherwise permitted by this Agreement.

         3.9      Program Leaders. Each party shall appoint a person (a "Program
Leader") to coordinate its part of the Program. The Program Leaders shall be the
primary contacts between the parties with respect to the Program. Each party
shall notify the other within thirty (30) days after the date of this Agreement
of the appointment of its Program Leader and shall notify the other party as
soon as practicable upon changing this appointment.

         3.10     Subcontracts. Ixsys may not subcontract portions of the
Program to be performed by it in the normal course of its business without the
prior written consent of Bio-Management.

         3.11     Sale of Program Antibodies. Subject to the terms and
conditions herein, Ixsys hereby sells, assigns, transfers and conveys to
Bio-Management all right, title and interest in and to the Program Antibodies.
Ixsys shall not use the Program Antibodies, or the suboptimized and humanized
compositions of matter derived by Ixsys from the Candidate Molecules under the
Program (or the cDNA encoding such compositions of matter), for any purpose
other than the performance of its obligations under this Agreement.

         3.12     Materials and Program Antibodies. The parties hereby
acknowledge that the Materials and the Program Antibodies are experimental in
nature and that they are provided "AS IS" AND WITHOUT ANY REPRESENTATION OR
WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY
OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR ANY WARRANTY THAT
THE USE OF THE MATERIALS OR THE PROGRAM ANTIBODIES WILL NOT INFRINGE OR VIOLATE
ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY.

         3.13     Each party hereby represents that all employees and other
persons acting on its behalf in performing its obligations under the program
shall be obligated under a binding written agreement to assign to it, or as it
shall direct, all Inventions made or conceived by such employees or other
persons.

         3.14     Prosecution, Maintenance and Enforcement.

                  3.14.1   Bio-Management shall have the right, at its sole
discretion, to control the preparation, filing, prosecution, maintenance and
enforcement of all patent applications and patents which claim Program
Antibodies, with the exception that Campbell & Flores LLP, or another
intellectual property counsel with biotechnology expertise specifically in the
field of human antibodies, shall be appointed by mutual agreement between the
parties and retained as

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the intellectual property counsel for the prosecution and maintenance of all
patent applications and patents which claim Program Antibodies.

                  3.14.2   Bio-Management hereby assigns to Ixsys all right,
title and interest in the Program Inventions and all patent rights and other
intellectual property rights therein. Ixsys shall have the right, at its sole
discretion, to control the preparation, filing, prosecution, maintenance and
enforcement of all patent applications and patents which claim Program
Inventions. Nothing in this Section 3.14.2 shall relieve Ixsys from its
confidentiality obligations set forth in Article 5 below.

                                    ARTICLE 4
                                  CONSIDERATION

         4.1      Financial Terms.

                  4.1.1    Notice of First Commercial Sale. Within thirty (30)
days following the First Commercial Sale for each Product in each country, and
within thirty (30) days after the occurrence of each of the milestone events
described in Section 4.1.4 below, Bio-Management shall give written notice to
Ixsys thereof.

                  4.1.2    Royalties. In consideration for the sale of Program
Antibodies to Bio-Management pursuant to Section 3.11 above, Bio-Management
shall pay to Ixsys royalty equal to [***] of Net Sales of Products sold by
Bio-Management, its Affiliates and sublicensees; provided, however, in the event
that a Program Antibody demonstrates an affinity equal to or greater than [***]
times the initial affinity of the Candidate Molecule from which that Program
Antibody was derived, Bio-Management shall pay to Ixsys a royalty equal to [***]
of Net Sales of Products sold by Bio-Management, its Affiliates and
sublicensees.

                  4.1.3    Length of Royalty Obligations. Bio-Management's
obligation to pay royalties with respect to each Product in such country shall
commence on the First Commercial Date for such Product in such country, and
shall continue for such Product in such country until the date ten (10) years
from the First Commercial Sale.

                  4.1.4    Milestone Payments.

                           a.       Within thirty (30) days after the first
occurrence of each of the following milestone events with respect to each
Product for use in any human or veterinary therapeutic application,
Bio-Management shall pay to Ixsys the applicable non-refundable, non-creditable
milestone payment set forth below:

     [***]    [***]

     [***]    [***]

     [***]    [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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     [***]    [***]

If any milestone event listed in this Section 4.1.4(a) is achieved with respect
to a Product for use in any human or veterinary therapeutic application, and at
such time any one or more of the milestone events previously listed in this
Section 4.1.4(a) has not been achieved with respect to such Product, then at the
time of the payment of the milestone payment for such achieved milestone event,
Bio-Management shall pay to Ixsys the previously listed and unpaid payments for
such unmet milestone events. At the time of the First Commercial Sale of a
Product for use in any human or veterinary therapeutic application, if any one
or more of the milestone events listed in this Section 4.1.4(a) has not been
achieved with respect to such Product, then within thirty (30) days after the
First Commercial Sale of such Product, Bio-Management shall pay to Ixsys all
payments for such unmet milestone events for such Product.

                           b.       Within thirty (30) days after the first
occurrence of each of the following milestone events with respect to each
Product for use in any human or veterinary diagnostic application,
Bio-Management shall pay to Ixsys the applicable non-refundable, non-creditable
milestone payment set forth below:

     [***]    [***]

     [***]    [***]

If any milestone event listed in this Section 4.1.4(b) is achieved with respect
to a Product for use in any human or veterinary diagnostic application, and at
such time any one or more of the milestone events previously listed in this
Section 4.1.4(b) has not been achieved with respect to such Product, then at the
time of the payment of the milestone payment for such achieved milestone event,
Bio-Management shall pay to Ixsys the previously listed and unpaid payments for
such unmet milestone events. At the time of the First Commercial Sale of a
Product for use in any human or veterinary diagnostic application, if any one or
more of the milestone events listed in this Section 4.1.4(b) has not been
achieved with respect to such Product, then within thirty (30) days after the
First Commercial Sale of such Product, Bio-Management shall pay to Ixsys all
payments for such unmet milestone events for such Product.

                           c.       Within thirty (30) days after Bio-Management
first grants or transfers to, or authorizes, any other Person any license or
other right to conduct research (other than basic research conducted at academic
or non-profit institutions), develop or commercialize any Product,
Bio-Management shall pay to Ixsys [***] per Product.

                           d.       Notwithstanding anything to the contrary in
this Agreement, Bio-Management shall not be obligated to pay each milestone
payment set forth above more than once with respect to each milestone event
described above, beyond one series of milestone payments as encompassed by the
provisions of this Section 4.1.4, for all such Products derived from the same
Candidate Molecule.

         4.2      Royalty Reports and Payment Terms.

                  4.2.1    Royalty Reports. Within thirty (30) days after the
end of each calendar quarter during the term of this Agreement following the
First Commercial Sale of a Product by Bio-Management, its Affiliate, licensees
or sublicensee, Bio-Management shall furnish to Ixsys a written report showing
in reasonably specific detail, on a Product-by-Product and country-by-

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country basis, (a) the gross sales of all Products sold by Bio-Management, its
Affiliates, licensees, and sublicensees during such calendar quarter and the
calculation of Net Sales from such gross sales; (b) the calculation of the
royalties, if any, which shall have accrued based upon such Net Sales; (c) the
withholding taxes, if any, required by law to be deducted with respect to such
sales; and (d) the exchange rates, if any, used in determining the amount of
United States dollars.

                  4.2.2    With respect to sales of Products invoiced in United
States dollars, all such amounts shall be expressed in United States dollars.
With respect to sales of Products invoiced in a currency other than United
States dollars, all such amounts shall be expressed both in the currency in
which the distribution is invoiced and in the United States dollar equivalent.
The United States dollar equivalent shall be calculated using the exchange rate
(local currency per US$1) published in The Wall Street Journal, Western Edition,
under the heading "Currency Trading," on each of the last business day of each
month during the applicable calendar quarter.

                  4.2.3    Bio-Management shall keep complete and accurate
records in sufficient detail to properly reflect all gross sales and Net Sales
and to enable the royalties payable to be determined.

         4.3      Audits.

                  4.3.1    Upon the written request of Ixsys and not more than
once in each calendar year, Bio-Management shall permit an independent certified
public accounting firm of nationally recognized standing, selected by Ixsys and
reasonably acceptable to Bio-Management, at Ixsys' expense, to have access
during normal business hours to such of the records of Bio-Management as may be
reasonably necessary to verify the accuracy of the royalty reports hereunder for
any year ending not more than [***] prior to the date of such request. The
accounting firm shall disclose to Ixsys only whether the reports are correct or
not and the specific details concerning any discrepancies. No other information
shall be shared.

                  4.3.2    If such accounting firm concludes that additional

royalties were owed during the audited period, Bio-Management shall pay the
additional royalties within thirty (30) days of the date Ixsys delivers to
Bio-Management such accounting firm's written report so concluding. The fees
charged by such accounting firm shall be paid by Ixsys; provided, however, if
the audit discloses that the royalties payable by Bio-Management for such period
are more than [***] of the royalties actually paid for such period, then
Bio-Management shall pay the reasonable fees and expenses charged by such
accounting firm.

                  4.3.3    Ixsys shall treat all financial information subject
to review under this Section 4.3 as confidential, and shall cause its accounting
firm to retain all such financial information in confidence.

                  4.3.4    Payment Terms. All royalties shown to have accrued by
each royalty report provided for under Section 4.1 above shall be payable on the
date such royalty report is due. Payment of royalties in whole or in part may be
made in advance of such due date.

                  4.3.5    Payment Method. All payments by Bio-Management to
Ixsys under this Agreement shall be paid in United States dollars, and all such
payments shall be originated from

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
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a United States bank located in the United States and made by bank wire transfer
in immediately available funds to such account as Ixsys shall designate before
such payment is due.

                  4.3.6    Exchange Control. If at any time legal restrictions
prevent the prompt remittance of part or all royalties with respect to any
country where the Product is sold, Bio-Management shall have the right, at its
option, to make such payments by depositing the amount thereof in local currency
to Ixsys' account in a bank or other depository in such country. If the royalty
rate specified in this Agreement should exceed the permissible rate established
in any country, the royalty rate for sales in such country shall be adjusted to
the highest legally permissible or government-approved rate.

                  4.3.7    Withholding Taxes. Bio-Management shall be entitled
to deduct the amount of any withholding taxes, value-added taxes or other taxes,
levies or charges with respect to such amounts, other than United States taxes,
payable by Bio-Management, or any taxes required to be withheld by
Bio-Management, to the extent Bio-Management pays to the appropriate
governmental authority on behalf of Ixsys such taxes, levies or charges. Bio-
Management shall use reasonable efforts to minimize any such taxes, levies or
charges required to be withheld on behalf of Ixsys by Bio-Management.
Bio-Management promptly shall deliver to Ixsys proof of payment of all such
taxes, levies and other charges, together with copies of all communications from
or with such governmental authority with respect thereto.

                                    ARTICLE 5
                                 CONFIDENTIALITY

         5.1      Confidential Information. During the term of this Agreement,
and for a period of five (5) years following the expiration or earlier
termination hereof, each party shall maintain in confidence all Confidential
Information disclosed by the other party, and shall not use, disclose or grant
the use of the Confidential Information except on a need-to-know basis to those
directors, officers, employees, consultants, clinical investigators,
contractors, sublicensees, distributors or permitted assignees, to the extent
such disclosure is reasonably necessary in connection with such party's
activities as expressly authorized by this Agreement. To the extent that
disclosure is authorized by this Agreement, prior to disclosure, each party
hereto shall obtain agreement of any such Person to hold in confidence and not
make use of the Confidential Information for any purpose other than those
permitted by this Agreement. Each party shall notify the other promptly upon
discovery of any unauthorized use or disclosure of the other party's
Confidential Information.

         5.2      Terms of this Agreement. Except as otherwise provided in
Section 5.1 above, neither party shall disclose any terms or conditions of this
Agreement to any Third Party without the prior written consent of the other
party. Notwithstanding the foregoing, prior to execution of this Agreement, the
parties shall agree upon the substance of information that can be used to
describe the terms of this transaction, and each party may disclose such
information, as modified by mutual agreement from time to time, without the
other party's consent.

         5.3      Permitted Disclosures. The confidentiality obligations
contained in this Article 5 shall not apply to the extent that the receiving
party (the "Recipient") is required (a) to disclose

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information by law, order or regulation of a governmental agency or a court of
competent jurisdiction, or (b) to disclose information to any governmental
agency for purposes of obtaining approval to test or market a Product, provided
in either case that the Recipient shall provide written notice thereof to the
other party and sufficient opportunity to object to any such disclosure or to
request confidential treatment thereof.

         5.4      Notice of Publication. During the term of the Agreement, Ixsys
and Bio-Management each acknowledge the other party's interest in publishing
certain of its results to obtain recognition within the scientific community and
to advance the state of scientific knowledge. Each party also recognizes the
mutual interest in obtaining valid patent protection and protecting business
interests. Consequently, either party, its employees or consultants wishing to
make a publication (including any oral disclosure made without obligation of
confidentiality) relating to work performed by such party as part of the Program
(the "Publishing Party") shall transmit to the other party (the "Reviewing
Party") a copy of the proposed written publication at least forty-five (45) days
prior to the presentation. The Reviewing Party shall have the right (a) to
propose modifications to the publication for patent reasons, (b) to request a
reasonable delay in publication in order to protect patentable information and
(c) to edit the publication in a manner reasonably acceptable to the Publishing
Party to protect its Confidential Information.

                                    ARTICLE 6
                                    DILIGENCE

         Bio-Management shall use its best efforts to actively research, develop
and obtain regulatory approvals to market in major markets throughout the world
at least one Product hereunder as expeditiously as possible, and following such
approval to maximize sales of such Product. Without limiting the foregoing,
Bio-Management shall meet the following diligence milestones by the dates set
forth below:

         6.1      Filing of IND. Bio-Management, its licensees or sublicensees
shall file an IND with the U.S. FDA for one or more Products under this
Agreement within [***] of the Effective Date. After the filing of an
IND for a Product, Bio-Management, its licensees or sublicensees, shall be
required to have an active IND and to be actively and diligently conducting
clinical trials in pursuit of regulatory approval for such Product in the U. S.
until such Product may be sold commercially in the U.S.

         6.2      Conduct of Clinical Trials. Bio-Management, its licensees or
sublicensees shall use its best efforts to conduct, as soon as commercially
practicable, such human clinical trials as are necessary or desirable to obtain
all regulatory approvals to develop and commercialize in the U.S. each Product
for which an IND has been filed.

         6.3      Obtain Regulatory Approvals. Bio-Management, its licensees or
sublicensees shall use its best efforts to obtain, as soon as commercially
practicable, regulatory approval to market in the U.S. at least one Product, and
(b) shall obtain regulatory approval to market in the United States at least one
Product within [***] after the Effective Date.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                     - 11 -

<PAGE>

                                    ARTICLE 7
                              TERM AND TERMINATION

         7.1      Expiration. Unless terminated earlier pursuant to Section 7.2
below, this Agreement shall expire on the expiration of Bio-Management's
obligations to pay royalties under this Agreement.

         7.2      Termination for Cause. A party may terminate this Agreement
upon or after the breach of any material provision of this Agreement by the
other party, if the breaching party has not cured such breach within [***] after
notice thereof from the other party; provided, however, that if the breach is
due to Bio-Management's failure to pay under Article 4 or Section 3.6, Ixsys
shall provide an additional notice of failure to pay and allow Bio-Management a
second [***] period to cure such breach. If Bio-Management fails to cure such
breach during the second [***] period, Ixsys shall provide a third and final
notice of failure to pay and allow Bio-Management a third and final [***] period
to cure such breach prior to any termination hereunder.

         7.3      Effect of Expiration and Termination. Expiration or
termination of this Agreement shall not relieve the parties of any obligation
accruing prior to such expiration or termination. The provisions of Articles 2,
5, 8, and Sections 3.8.1, 3.12, 7.4 and 9.11 shall survive the expiration or
termination of this Agreement.

         7.4      Effect of Certain Breaches. In addition to all other rights
and remedies available by law or otherwise, in the event of a breach of the
provisions of Section 3.6 or Article 4 or 6 above, Ixsys shall have the right to
terminate the Agreement pursuant to Section 7.2 thereof. In the event of such
termination, Bio-Management shall grant to Ixsys an exclusive license under all
Bio-Management's patent rights relating to Program Antibodies, Products and the
use of thereof in the Field. In addition, Bio-Management shall deliver to Ixsys
copies of all data and information in Bio-Management's control resulting from
research related to the Program Antibodies and Products, and shall assign and
deliver to Ixsys all copies of any and all regulatory filings related to Program
Antibodies and Products. In consideration of the foregoing, Ixsys shall pay to
Bio-Management the following: (a) [***] of cash consideration received by Ixsys
or its Affiliates in consideration for sublicenses (including modified or
renegotiated sublicenses) granted thereunder (excluding royalties on sales) and
(b) with respect to sales, [***] received on Net Sales of Products
covered by Bio-Management's patents on Program Antibodies or Products except for
[***] of which shall be retained by Ixsys; provided, however, that in the event
that Ixsys sells Products directly, Ixsys shall only pay to Bio-Management a
royalty equal to [***] of Net Sales on Products sold by Ixsys. In the event that
such termination occurs and an exclusive license to Ixsys is granted pursuant to
this Section 7.4 and Bio-Management previously has granted license or sublicense
rights to any third party, Ixsys shall enter into a license or sublicense, as
the case may be, on substantially the same terms provided that such third party
agrees in writing to be bound by all of the terms and conditions therein.

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                     - 12 -

<PAGE>

                                    ARTICLE 8
                                    INDEMNITY

         8.1      Indemnity.

                  8.1.1    By Ixsys. Ixsys shall indemnify and hold
Bio-Management harmless, and hereby forever releases and discharges
Bio-Management, from and against all losses, liabilities, damages and expenses
(including reasonable attorneys' fees and costs) resulting from all claims,
demands, actions and other proceedings by any Third Party to the extent arising
from (a) the breach of any representation, warranty or covenant of Ixsys under
this Agreement, (b) the use of the Materials by Ixsys or, its Affiliates, or (c)
the gross negligence or willful misconduct of Ixsys, its Affiliates or licensees
in the performance of its obligations, and its permitted activities, under this
Agreement.

                  8.1.2    By Bio-Management. Bio-Management shall indemnify and
hold Ixsys harmless, and hereby forever releases and discharges Ixsys, from and
against all losses, liabilities, damages and expenses (including reasonable
attorneys' fees and costs) resulting from all claims, demands, actions and other
proceedings by any Third Party to the extent arising from (a) the breach of any
representation, warranty or covenant of Bio-Management under this Agreement, (b)
the use of the Materials by Bio-Management, its Affiliates or licensees (other
than Ixsys), (c) the making, using or selling of Products (including claims,
demands, actions or other proceedings based on strict liability), or (d) the
gross negligence or willful misconduct of Bio-Management, its Affiliates or
licensees (other than Ixsys) in the performance of its obligations, and its
permitted activities, under this Agreement.

         8.2      Procedure. A party (the "Indemnitee") that intends to claim
indemnification under this Article 8 shall promptly notify the other party (the
"Indemnitor") of any claim, demand, action or other proceeding for which the
Indemnitee intends to claim such indemnification. The Indemnitor shall have the
right to participate in, and to the extent the Indemnitor so desires jointly
with any other indemnitor similarly noticed, to assume the defense thereof with
counsel selected by the Indemnitor; provided, however, that the Indemnitee shall
have the right to retain its own counsel, with the fees and expenses to be paid
by the Indemnitor, if representation of the Indemnitee by the counsel retained
by the Indemnitor would be inappropriate due to actual or potential differing
interests between the Indemnitee and any other party represented by such counsel
in such proceedings. The indemnity obligations under this Article 8 shall not
apply to amounts paid in settlement of any claim, demand, action or other
proceeding if such settlement is effected without the prior express written
consent of the Indemnitor, which consent shall not be unreasonably withheld or
delayed. The failure to deliver notice to the Indemnitor within a reasonable
time after notice of any such claim or demand, or the commencement of any such
action or other proceeding, if prejudicial to its ability to defend such claim,
demand, action or other proceeding, shall relieve such Indemnitor of any
liability to the Indemnitee under this Article 8 with respect thereto, but the
omission so to deliver notice to the Indemnitor shall not relieve it of any
liability that it may have to the Indemnitee otherwise than under this Article
8. The Indemnitor may not settle or otherwise consent to an adverse judgment in
any such claim, demand, action or other proceeding, that diminishes the rights
or interests of the Indemnitee without the prior express written consent of the
Indemnitee, which consent shall not be unreasonably withheld or delayed. The
Indemnitee, its employees and agents, shall reasonably cooperate with the
Indemnitor and its legal representatives in the investigation of any claim,
demand, action or other proceeding covered by this Article 8.

                                     - 13 -

<PAGE>

         8.3      Insurance. Each party shall maintain insurance with respect to
the development, manufacture and sales of Products by such party, its Affiliates
or sublicensees in such amounts as such party customarily maintains with respect
to the development, manufacture and sales of its other products. Each party
shall maintain such insurance for so long as it continues to develop,
manufacture or sell Products, and thereafter for so long as it customarily
maintains insurance for itself covering the development, manufacture and sales
of its other products.

                                    ARTICLE 9
                                  MISCELLANEOUS

         9.1      Notices. Any consent, notice or report required or permitted
to be given or made under this Agreement by one of the parties to the other
shall be in writing and addressed to such other party at its address indicated
below, or to such other address as the addressee shall have last furnished in
writing to the addressor, and shall be effective upon receipt by the addressee.

                  If to Ixsys:             Ixsys, Inc.
                                           3520 Dunhill Street
                                           San Diego, California 92121
                                           Attention: Lawrence E. Bloch, M.D.,
                                                      M.B.A.

                  with a copy to:          Pillsbury Madison & Sutro LLP
                                           235 Montgomery Street, 16th Floor
                                           San Francisco, California 94104
                                           Attention: Thomas E. Sparks, Jr.

                  If to Bio-Management:    Bio-Management Inc.
                                           Four Hook Road
                                           Sharon Hill, PA 19079
                                           Attention: Mr. Raymond A. Mirra, Jr.

                  with a copy to:          Bio-Management Inc.
                                           Four Hook Road
                                           Sharon Hill, PA 19079
                                           Attention: Joseph A. Troilo, Jr.

         9.2      Assignment. Except as otherwise expressly provided under this
Agreement neither this Agreement nor any right or obligation hereunder may be
assigned or otherwise transferred (whether voluntarily, by operation of law or
otherwise), without the prior express written consent of the other party;
provided, however, that either party may, without such consent, assign this
Agreement and its rights and obligations hereunder in connection with the
transfer or sale of all or substantially all of its business related to this
Agreement or in the event of its merger, consolidation, change in control or
similar transaction. Any permitted assignee shall assume all obligations of its
assignor under this Agreement. Any purported assignment or transfer in violation
of this Section 9.2 shall be void.

                                     - 14 -

<PAGE>

         9.3      Applicable Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of California, without regard
to the conflicts of law principles thereof.

         9.4      Entire Agreement. This Agreement contains the entire
understanding of the parties with respect to the subject matter hereof. All
express or implied representations, agreements and understandings, either oral
or written, heretofore made are expressly superseded by this Agreement. This
Agreement may be amended, or any term hereof modified, only by a written
instrument duly executed by both parties.

         9.5      Headings. The captions to the several Articles and Sections
hereof are not a part of this Agreement, but are merely guides or labels to
assist in locating and reading the several Articles and Sections hereof.

         9.6      Independent Contractors. Each party hereby acknowledges that
the parties shall be independent contractors and that the relationship between
the parties shall not constitute a partnership, joint venture or agency. Neither
party shall have the authority to make any statements, representations or
commitments of any kind, or to take any action, which shall be binding on the
other party, without the prior consent of the other party to do so.

         9.7      Waiver. The waiver by a party of any right hereunder, or of
any failure to perform or breach by the other party hereunder, shall not be
deemed a waiver of any other right hereunder or of any other breach or failure
by the other party hereunder whether of a similar nature or otherwise.

         9.8      Force Majeure. A party shall neither be held liable or
responsible to the other party, nor be deemed to have defaulted under or
breached this Agreement, for failure or delay in fulfilling or performing any
obligation under this Agreement (other than an obligation for the payment of
money) to the extent, and for so long as, such failure or delay is caused by or
results from causes beyond the reasonable control of such party including but
not limited to fire, floods, embargoes, war, acts of war (whether war be
declared or not), insurrections, riots, civil commotions, strikes, lockouts or
other labor disturbances, acts of God or acts, omissions or delays in acting by
any governmental authority or the other party.

         9.9      Other Activities. Except as otherwise expressly provided in
this Agreement, nothing in this Agreement shall preclude either party from
conducting other programs (either for its own benefit or with or for the benefit
of any other Person) to conduct research, or to develop or commercialize
products or services, for use in any field.

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

         9.11     Arbitration. All controversies or claims under this Agreement,
the enforcement or interpretation hereof, or because of an alleged breach,
default or misrepresentation under the provisions hereof, shall be settled by
final and binding arbitration in San Diego, California in accordance with the
then-existing commercial arbitration rules (the "Rules") of the American
Arbitration Association ("AAA"), and judgment upon the award rendered by the
arbitrators may

                                     - 15 -

<PAGE>

be entered in any court having jurisdiction thereof; provided, however, that the
law applicable to any controversy shall be the law of the State of California,
regardless of its or any other jurisdiction's choice of law principles. In any
arbitration pursuant to this Agreement, the award or decision shall be rendered
by the majority of the members of a Board of Arbitration consisting of three (3)
members, one of whom shall be appointed by each party and the third of whom
shall be the chairman of the panel and shall be appointed be mutual agreement of
said two party-appointed arbitrators. In the event of a failure of said two
arbitrators to agree within sixty (60) days after the commencement of the
arbitration proceeding upon the appointment of the third arbitrator, the third
arbitrator shall be appointed by the AAA in accordance with the Rules. In the
event that either party shall fail to appoint an arbitrator within thirty (30)
days after the commencement of the arbitration proceedings, such arbitrator
shall be appointed by the AAA in accordance with the Rules. Notwithstanding the
foregoing, the parties may apply to any court of competent jurisdiction for a
temporary restraining order, as necessary, without breach of this arbitration
agreement and without abridgement of the powers of the arbitrator. In no event
shall the demand for arbitration be made after the date when institution of a
legal or equitable proceeding based on such claim, dispute or other matter in
question would be barred by the applicable statute of limitation.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and
year first above written.

Bio-Management, Inc.                   Ixsys, Inc.

Signature: /s/ Raymond A Mirra, Jr.    Signature: /s/Lawrence E. Bloch
Name:  Mr. Raymond A Mirra, Jr.        Name:  Lawrence E. Bloch, M.D.,M.B.A
Title: Vice President                  Title: Vice President of Business
                                              Development

                                     - 16 -

<PAGE>

                                   SCHEDULE A

                                  RESEARCH PLAN

[2 Pages of Proprietary Information Deleted Pursuant to Confidential Treatment
Request]

<PAGE>

                                   SCHEDULE B

                                 PROJECT FUNDING

         1.       Fixed Fee. Bio-Management shall pay to Ixsys Five Hundred
Thousand Dollars ($500,000) each for the humanization and optimization of each
of the two (2) Candidate Molecules, to be paid in equal quarterly installments
over the six (6) months starting from the Effective Date. Payments shall be due
within thirty (30) days.

         2.       Milestone Payments. Bio-Management shall pay to Ixsys
milestone payments equal to [***] per Program Antibody demonstrating an affinity
equal to or greater than [***] times the initial affinity of the Candidate
Molecule from which that Program Antibody was derived as determined by an in
vitro assay to be agreed upon by the parties. These milestone payments shall be
paid within sixty (60) days following the demonstration of the Program Antibody
demonstrating an affinity equal to or greater than [***] times the initial
affinity of the Candidate Molecule from which that Program Antibody was derived.
In the event that a Program Antibody fails to demonstrate an affinity equal to
or greater than [***] times the initial affinity of that Candidate Molecule from
which that Program Antibody was derived, no milestone payment shall be payable
for that Program Antibody.

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.<PAGE>

                                                                   Exhibit 10.36

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                LICENSE AGREEMENT

         This Agreement, effective as of June 2, 2003 (the "Effective Date"), is
by and between:

         NEW YORK UNIVERSITY (hereinafter "NYU"), a not-for-profit corporation
organized and existing under the laws of the State of New York and having a
place of business at 70 Washington Square South, New York, New York, 10012

                                       AND

         Cell-Matrix, Inc., (hereinafter "Cell-Matrix"), a corporation organized
and existing under the laws of the State of Nevada having its principal office
at 2110 Rutherford Road, Carlsbad, California, 92008.

                                    RECITALS

         WHEREAS, Dr. Peter Brooks of NYU (hereinafter "the NYU Scientist") has
made certain inventions relating to [***]-Peptides and [***]-Peptides and
[***]-Peptides, all as more particularly described in certain invention
disclosures attached hereto as Exhibits A and B (hereinafter "the Pre-Existing
Inventions"), in a pending U.S. patent application owned by NYU, filed on [***],
entitled "[***]-Peptide and [***]-Peptide" and/or in a pending U.S. patent
application owned by NYU, filed on [***] entitled "[***]-Peptides" (hereinafter
"the Pre-Existing Patent Applications");

         WHEREAS, subject to the terms and conditions hereinafter set forth, NYU
is willing to grant to Cell-Matrix and Cell-Matrix is willing to accept from NYU
the License (as hereinafter defined);

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

         NOW, THEREFORE, in consideration of the mutual promises and agreements
contained herein, the parties hereto hereby agree as follows:

1.       DEFINITIONS.

         a.       "Affiliate" shall mean any company or other legal entity which
controls, or is controlled by, or is under common control with, Cell-Matrix;
control means the holding of twenty five and one tenth percent (25.1%) or more
of (i) the capital and/or (ii) the voting rights and/or (iii) the right to elect
or appoint directors.

         b.       "Calendar Year" shall mean any consecutive period of twelve
months commencing on the first day of January of any year.

         c.       "License" shall mean the exclusive worldwide license,
including the right to sublicense, to make, to have made, to import, to use, to
offer for sale, and to sell the Licensed Products (as hereinafter defined), and
to practice the NYU Technology (as hereinafter defined) for the development,
manufacture, use and sale of the Licensed Products.

         d.       "Licensed Products" shall mean [***]-Peptides and
[***]-Peptides and [***]-Peptides, covered by a claim of any unexpired NYU
Patent (as hereinafter defined) which has not been disclaimed or held invalid by
a court of competent jurisdiction from which no appeal can be taken, or which
incorporates or is developed using NYU Know-How.

         e.       "Net Sales" shall mean the total amount invoiced in connection
with sales of the Licensed Products to any person or entity that is not a
Affiliate or a sublicensee of Cell-Matrix or an Affiliate under the License,
after deduction of all the following to the extent applicable to such sales;

                  i)       all trade, case and quantity credits, discounts,
                           refunds or rebates;

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       2

<PAGE>

                  ii)      allowances or credits for returns;

                  iii)     sales commissions; and

                  iv)      prepaid freight, transportation insurance, sales
                           taxes and other government charges (including
                           value-added tax).

Sales of Licensed Products by Cell-Matrix, or an Affiliate or sublicensee of
Cell-Matrix to any Affiliate or sublicensee which is a reseller thereof shall be
excluded, and only the subsequent sale of such Licensed Products by Affiliates
or sublicensees of Cell-Matrix to unrelated parties shall be deemed Net Sales
hereunder.

         f.       "NYU Know-How" shall mean information and materials related to
the Pre-Existing Inventions made by the NYU Scientist and owned or controlled by
NYU, including, but not limited to, pharmaceutical, chemical, biological and
biochemical products, technical and non-technical data, materials, methods and
processes and any drawings, plans, diagrams, specifications and/or other
documents containing such information, and including any additional peptides,
peptide analogs or peptide homologs that (i) bind to denatured collagen or
denatured laminin preferentially, or (ii) are directed towards the same, any
adjacent, or any subpart of the epitopes to which the Pre-Existing Inventions
are directed, that are conceived, invented or developed by NYU during the period
of the Research Agreement (as such term is defined below), including any
extensions thereof, and for which Dr. Peter Brooks is an inventor.

         g.       "NYU Patents" shall mean all rights arising out of or
resulting from (i) any and all U.S. and foreign patent applications covering the
NYU Know-How including, without limitation, the Pre-Existing Patent
Applications, (ii) the patents proceeding from such

                                        3

<PAGE>

applications, (iii) all claims of and any divisions, continuations, in whole or
in part, reissues, re-examinations, renewals and extensions of any such patents
or patent applications.

         h.       "NYU Technology" shall mean all NYU Patents and NYU Know-How.

         i.       "Research Agreement" shall mean the Research Support Agreement
between NYU and CancerVax Corporation, effective as of December 18, 2002, as
amended.

         j.       "USC Claim" shall mean a valid claim of an issued patent owned
by the University of Southern California (hereinafter "USC") and licensed by USC
to Cell-Matrix for which Dr. Peter Brooks is an inventor.

2.       EFFECTIVE DATE.

         This Agreement shall be effective as of the Effective Date and shall
remain in full force and effect until it expires or is terminated in accordance
with Section 13 hereof.

3.       TITLE.

         a.       Subject to the License granted to Cell-Matrix hereunder, it is
hereby agreed that all right, title and interest, in and to the NYU Technology,
and in and to any drawings, plans, diagrams, specifications, and other documents
containing any of the NYU Technology shall vest solely in NYU. At the request of
NYU, Cell-Matrix shall take all steps as may be necessary to give full effect to
said right, title and interest of NYU including, but not limited to, the
execution of any documents that may be required to record such right, title and
interest with the appropriate agency or government office.

4.       PATENTS AND PATENT APPLICATIONS.

         a.    Cell-Matrix shall, within thirty (30) days following the signing
of this Agreement, pay NYU the sum of U.S. [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                        4

<PAGE>

[***], being the amount of all costs and fees incurred by NYU up to the date
hereof in connection with the Pre-Existing Patent Applications.

         b.       At the initiative of Cell-Matrix or NYU, the parties shall
consult with each other regarding the prosecution of all patent applications
with respect to the NYU Technology and each party shall use reasonable efforts
to implement all reasonable requests made by the other party with regard to the
preparation, filing, prosecution and/or maintenance of the patent applications
and/or patents within NYU Technology. Such patent applications shall be filed,
prosecuted and maintained by the law firm of Darby & Darby or by other patent
counsel jointly selected by NYU and Cell-Matrix. Copies of all such patent
applications, patent office actions and related correspondence shall be
forwarded on a timely basis to each of NYU and Cell-Matrix.

         NYU and Cell-Matrix shall each also have the right to have such patent
applications and patent office actions independently reviewed by other patent
counsel separately retained by NYU or Cell-Matrix, upon prior notice to and
consent of the other party, which consent shall not unreasonably be withheld.

         c.       All applications and proceedings with respect to the NYU
Patents shall be filed, prosecuted and maintained by NYU at the expense of
Cell-Matrix. Against the submission of invoices, Cell-Matrix shall reimburse NYU
for all costs and fees invoiced by outside patent counsel to NYU during the term
of this Agreement, in connection with the filing, maintenance, prosecution,
protection and the like of the NYU Patents.

         d.       If at any time during the term of this Agreement Cell-Matrix
decides that it is undesirable, as to one or more countries, to prosecute or
maintain any patents or patent applications within the NYU Patents, it shall
give prompt written notice thereof to NYU, and

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                        5

<PAGE>

upon receipt of such notice Cell-Matrix shall be released from its obligations
to bear all of the expenses to be incurred thereafter as to such countries in
conjunction with such patent(s) or patent application(s) and such patent(s) or
application(s) shall be deleted from the NYU Technology and NYU shall be free to
grant rights in and to the NYU Technology in such countries to third parties,
without further notice or obligation to Cell-Matrix, and Cell-Matrix shall have
no rights whatsoever to exploit the NYU Technology in such countries.

         e.       Nothing herein contained shall be deemed to be a warranty by
                  NYU that

                  i)       NYU can or will be able to obtain any patent or
                  patents on any patent application or applications in the NYU
                  Patents or any portion thereof, or that any of the NYU Patents
                  will afford adequate or commercially worthwhile protection, or

                  ii)      that the manufacture, use, or sale of any element of
                  the NYU Technology or any Licensed Product will not infringe
                  any patent(s) of a third party.

5.       GRANT OF LICENSE.

         a.       Subject to the terms and conditions hereinafter set forth, NYU
hereby grants to Cell-Matrix and Cell-Matrix hereby accepts from NYU the
License. The License is subject to (i) the right of NYU to use and to permit
other non-commercial entities to use the NYU Technology for non-commercial
educational and research purposes only, and (ii) the rights of the U.S.
Government. Permission to use the NYU Technology shall only be granted to
non-commercial entities by NYU under a written agreement, a copy of which shall
be provided by NYU to Cell-Matrix as soon as practicable after the signing
thereof, and which shall contain, at a minimum, the provisions listed in Exhibit
C to this Agreement. Cell-Matrix agrees to consider, in good faith, reasonable
changes to the provisions listed in Exhibit C requested by NYU.

                                        6

<PAGE>

         b.       The License granted to Cell-Matrix in Section 5.a. hereto
shall commence upon the Effective Date and shall remain in force on a
country-by-country basis, if not previously terminated under the terms of this
Agreement, for fifteen (15) years from the date of first commercial sale in such
country or until the expiration date of the last to expire of the NYU Patents,
whichever shall be later. Cell-Matrix shall inform NYU in writing of the date of
first commercial sale with respect to each Licensed Product in each country as
soon as practicable after the making of each such first commercial sale.

         c.       Cell-Matrix shall be entitled to grant sublicenses under the
License on terms and conditions in compliance and not inconsistent with the
terms and conditions of this Agreement (except that the rate of royalty may be
at higher rates than those set forth in this Agreement) (i) to an Affiliate or
(ii) to other third parties for consideration and in arms-length transactions.
All sublicenses to third parties shall only be granted by Cell-Matrix under a
written agreement, a copy of which shall be provided by Cell-Matrix to NYU as
soon as practicable after the signing thereof. Each sublicense granted by
Cell-Matrix hereunder shall be subject and subordinate to the terms and
conditions of this License Agreement and shall contain (inter-alia) the
following provisions:

                  (1)      the sublicense shall expire automatically on the
                  termination of the License;

                  (2)      the sublicense shall not be assignable, in whole or
                  in part;

                  (3)      the sublicensee shall not grant further sublicenses;
                  and

                  (4)      both during the term of the sublicense and thereafter
                  the sublicensee shall agree to a confidentiality obligation
                  similar to that imposed on Cell-Matrix in Section 9 below, and
                  the sublicensee shall impose on its employees, both during the

                                        7

<PAGE>

                  terms of their employment and thereafter, a similar
                  undertaking of confidentiality; and

                  (5)      the sublicense agreement shall include the text of
                  Sections 11 and 12 of this Agreement and shall state that NYU
                  is an intended third party beneficiary of such sublicense
                  agreement for the purpose of enforcing such indemnification
                  and insurance provisions.

6.       PAYMENTS FOR LICENSE.

         a.       In consideration for the grant and during the term of the
License, Cell-Matrix shall pay to NYU:

                  (1)      a non-refundable, non-creditable license issue fee of
                           two hundred thousand dollars ($200,000.00) payable as
                           follows: (i) sixty-six thousand, six hundred and
                           sixty-six dollars ($66,666.00) within thirty (30)
                           days after the Effective Date; (ii) sixty-six
                           thousand, six hundred and sixty-seven dollars
                           ($66,667.00) on or before the first anniversary of
                           the Effective Date; and (iii) sixty-six thousand, six
                           hundred and sixty-seven dollars ($66,667.00) on or
                           before the second anniversary of the Effective Date;
                           and

                  (2)      on the first and each succeeding anniversary of the
                           Effective Date until approval to market a Licensed
                           Product is received by Cell-Matrix, non-refundable,
                           non-creditable license maintenance fees of fifteen
                           thousand dollars ($15,000.00) each; and

                  (3)      upon the achievement of the following technical
milestones, with respect to a Licensed Product, the payments as indicated below:

                                        8

<PAGE>

<TABLE>
<CAPTION>
                     Milestone                        Payment
                     ---------                        -------
-------------------------------------------------------------
<S>                                                   <C>
i) Upon the first approval of an Investigational       [***]
New Drug Application by the FDA
-------------------------------------------------------------
ii)Upon commencement of the first Phase III            [***]
clinical trial of a Licensed Product for
therapeutic purposes
-------------------------------------------------------------
iii) Upon receipt of the first approval to market      [***]
a Licensed Product for therapeutic purposes
-------------------------------------------------------------
</TABLE>

                  provided that if a milestone payment is owed to USC under
Cell-Matrix's license agreement with USC with respect to the Licensed Product
generating the milestone payment and a milestone payment is paid by Cell-Matrix
to USC based on the same milestone for the same Licensed Product under an
agreement in effect prior to the Effective Date, then Cell-Matrix may credit the
milestone payment paid to USC for the respective milestone against the milestone
payment due to NYU, provided that the milestone payment to NYU shall not be
reduced by more than fifty percent (50%);

                  (4)      a royalty of [***] of the Net Sales of Cell-Matrix or
                  of an Affiliate or of a sublicensee of Cell-Matrix or an
                  Affiliate, provided that if a royalty is owed to USC under
                  Cell-Matrix's license agreement with USC with respect to the
                  Licensed Product generating the royalty, and a royalty is paid
                  by Cell-Matrix to USC for the same Licensed Product under an
                  agreement in effect prior to the Effective Date, then
                  Cell-Matrix may credit the royalty payments paid to USC
                  against the royalty payments due to NYU, provided that the
                  royalty payments to NYU shall not be reduced by more than
                  fifty percent (50%); and

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                        9

<PAGE>

                  (5)      [***] of any revenue (including any monetary payments
                  not based on Net Sales, but not including any non-monetary
                  consideration), received by Cell-Matrix from a sublicensee of
                  Cell-Matrix (not being a Affiliate) under the terms of, or as
                  a consideration for the grant of, a sublicense of any rights
                  or for grant of an option to acquire such a sublicense.

         b.       For the purpose of computing the royalties due to NYU
hereunder, the year shall be divided into four parts ending on March 31, June
30, September 30, and December 31. Not later than sixty (60) days after each
December, March, June, and September in each Calendar Year during the term of
the License, Cell-Matrix shall submit to NYU a full and detailed report of
royalties or payments due NYU under the terms of this Agreement for the
preceding quarter year (hereinafter "the Quarter-Year Report"), setting forth
the Net Sales and/or lump sum payments and all other payments or consideration
from sublicensees upon which such royalties are computed and including at least

                           i)       the quantity of Licensed Products used,
                           sold, transferred or otherwise disposed of;

                           ii)      the selling price of each Licensed Product;

                           iii)     the deductions permitted under subsection
                           1.g. hereof to arrive at Net Sales; and

                           iv)      the royalty computations.

         If no royalties or other payments are due, a statement shall be sent to
NYU stating such fact. Payment of the full amount of any royalties or other
payments due to NYU for the preceding quarter shall accompany each Quarter-Year
Report on royalties and payments. Cell-Matrix shall keep for a period of at
least six (6) years after the date of entry, full, accurate and

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       10

<PAGE>

compete books and records consistent with sound business and accounting
practices and in such form and in such detail as to enable the determination of
the amounts due to NYU from Cell-Matrix pursuant to the terms of this Agreement.

         c.       Within sixty (60) days after the end of each Calendar Year,
commencing on the Date of First Commercial Sale, Cell-Matrix shall furnish NYU
with a report (hereinafter "the Annual Report"), relating to the royalties and
other payments due to NYU pursuant to this Agreement in respect of the Calendar
Year covered by such Annual Report and containing the same details as those
specified in Section 6.b. above in respect of the Quarter-Year Report.

         d.       On reasonable notice and during regular business hours, NYU
or the authorized representative of NYU shall each have the right to inspect the
books of accounts, records and other relevant documentation of Cell-Matrix or
any of its Affiliates insofar as they relate to the production, marketing and
sale of the Licensed Products, in order to ascertain or verify the amount of
royalties and other payments due to NYU hereunder, and the accuracy of the
information provided to NYU in the aforementioned reports.

7.       METHOD OF PAYMENT.

         a.       Royalties and other payments due to NYU hereunder shall be
paid to NYU in United States dollars. Any such royalties on or other payments
relating to transactions in a foreign currency shall be converted into United
States dollars based on the closing buying rate of Citibank, N.A., in New York
applicable to transactions under exchange regulations for the particular
currency on the last business day of the accounting period for which such
royalty or other payment is due.

                                       11

<PAGE>

         b.       Cell-Matrix shall be responsible for payment to NYU of all
royalties due on sale, transfer or disposition of Licensed Products by Affiliate
or by the sublicensees of Cell-Matrix or of Affiliate.

         c.       Any amount payable hereunder by one of the parties to the
other, which has not been paid by the date on which such payment is due, shall
bear interest from such date until the date on which such payment is made, at
the rate of one percent (1%) per annum in excess of the prime rate prevailing at
the Citibank, N.A., in New York, during the period of arrears and such amount
and the interest thereon may be set off against any amount due, whether in terms
of this Agreement or otherwise, to the party in default by any non-defaulting
party.

8.       DEVELOPMENT AND COMMERCIALIZATION.

         a.       Cell-Matrix shall use reasonable efforts and due diligence to
develop Licensed Products, as promptly as is reasonably and commercially
feasible, and to perform all efficacy, pharmaceutical, safety, toxicological and
clinical tests, trials and studies and all other activities necessary in order
to obtain the approval of the FDA for the production, use and sale of the
Licensed Products. Cell-Matrix further undertakes to exercise due diligence and
to employ its reasonable diligence to obtain or to cause its sublicensees to
obtain, the appropriate approvals of the health authorities for the production,
use and sale of the Licensed Products, in each of the other countries of the
world in which Cell-Matrix or its sublicensees intend to produce, use, and/or
sell Licensed Products.

         b.       Provided that applicable laws, rules and regulations require
that the performance of the tests, trials, studies and other activities
specified in subsection a. above shall be carried out in accordance with FDA
Good Laboratory Practices and in a manner acceptable to the relevant health
authorities, Cell-Matrix shall carry out such tests, trials, studies and other
activities in

                                       12

<PAGE>

accordance with FDA Good Laboratory Practices and in a manner acceptable to the
relevant health authorities. Furthermore, the Licensed Products for commercial
sale shall be produced in accordance with FDA Good Manufacturing Practice
("GMP") procedures in a facility that has been certified by the FDA as complying
with GMP, provided that applicable laws, rules and regulations so require.

         c.       Cell-Matrix shall provide NYU with written reports on
significant activities and actions undertaken by Cell-Matrix to develop and
commercialize the Licensed Products; such reports shall be made within sixty
(60) days after each twelve (12) months of the duration of this Agreement,
commencing twelve months after the Effective Date.

         e.       In the event that Cell-Matrix shall not meet its commercial
development obligations, as set forth in paragraph (a) of this Section 8, unless
such delay is necessitated by FDA or other regulatory agencies or unless NYU and
Cell-Matrix have mutually agreed to extend the period of time in which
Cell-Matrix is obligated, under paragraph (a) of this Section 8, to
commercialize a Licensed Product because of unforeseen circumstances, NYU shall
notify Cell-Matrix in writing of Cell-Matrix's failure to commercialize and
shall allow Cell-Matrix one (1) year to materially cure its failure to
commercialize. Cell-Matrix's failure to materially cure such delay to NYU's
reasonable satisfaction within such one (1) year period shall be a material
breach of this Agreement..

         f.       Cell-Matrix shall give NYU the option to participate as a
clinical site in any clinical trials of Licensed Products sponsored by
Cell-Matrix or its Affiliates, under the same compensation and other terms as
those offered to other clinical sites participating in such trials, provided
that NYU meets the reasonable qualification criteria established by Cell-Matrix
for its other clinical sites for any such clinical trials.

                                       13

<PAGE>

         g.       Licensed Products sold by Cell-Matrix, its Affiliates, or its
sublicensees in the United States shall be substantially manufactured in the
United States.

9.       CONFIDENTIAL INFORMATION.

         a.       Except as otherwise provided in Section 9.b and 9.c below
Cell-Matrix shall maintain any and all of the NYU Technology in confidence to
the same extent Cell-Matrix maintains its own proprietary industrial information
and shall not release or disclose any tangible or intangible component thereof
to any third party without first receiving the prior written consent of NYU to
said release or disclosure.

         b.       The obligations of confidentiality set forth in Sections 9.a
shall not apply to any component of the NYU Technology which: (i) was in
Cell-Matrix's possession prior to the date of its actual receipt from NYU; (ii)
was part of the public domain prior to the Effective Date of this Agreement or
which becomes a part of the public domain not due to some unauthorized act by or
omission of Cell-Matrix after the effective date of this Agreement; (iii) is
disclosed to Cell-Matrix by a third party who has the right to make such
disclosure; or (iv) is developed independently by Cell-Matrix without use of the
NYU Technology.

         c.       The provisions of Section 9.a notwithstanding, Cell-Matrix may
disclose the NYU Technology (i) to third parties who need to know the same in
order to secure regulatory approval for the sale of Licensed Products; and (ii)
to Cell-Matrix's Affiliates, sublicensees, prospective sublicensees and
assignees of Cell-Matrix and its Affiliates, attorneys and other agents who are
bound by confidentiality obligations equivalent to those provided herein.

         d.       Upon the expiration or termination of this Agreement, any and
all NYU Technology possessed in tangible form by Cell-Matrix, its Affiliates or
its or any of its officers, directors, employees, agents, consultants or
clinical investigators and belonging to NYU, shall, upon

                                       14

<PAGE>

written request, be returned to NYU (or destroyed if so requested); provided,
however, that Cell-Matrix may retain one (1) copy of the NYU Technology, which
by applicable laws, rules or regulations it is obligated to retain, for the
later of: (a) the period in which any such applicable laws, rules or regulations
require such retention; or (b) the expiration of the statute of limitations
applicable to actions arising under this Agreement or Cell-Matrix's receipt of
NYU's release from any actions by Cell-Matrix under this Agreement.

10.      INFRINGEMENT OF NYU PATENT.

         a.       In the event a party to this Agreement acquires information
that a third party is infringing one or more of the NYU Patents, the party
acquiring such information shall promptly notify the other party to the
Agreement in writing of such infringement.

         b.       In the event of an infringement of an NYU Patent, Cell-Matrix
shall have the right but not required to bring suit against the infringer.
Should Cell-Matrix elect to bring suit against an infringer and NYU is joined as
a party plaintiff in any such suit, NYU shall have the right to approve the
counsel selected by Cell-Matrix to represent Cell-Matrix and NYU, which approval
shall not be unreasonably withheld. The expenses of such suit or suits that
Cell-Matrix elects to bring, including any expenses of NYU incurred in
conjunction with the prosecution of such suit or the settlement thereof, shall
be paid for entirely by Cell-Matrix and Cell-Matrix shall hold NYU free, clear
and harmless from and against any and all costs of such litigation, including
attorneys' fees. Cell-Matrix shall not compromise or settle such litigation
without the prior written consent of NYU, which shall not be unreasonably
withheld.

         c.       In the event Cell-Matrix exercises the right to sue herein
conferred, it shall have the right to first reimburse itself out of any sums
recovered in such suit or in settlement thereof for all costs and expenses of
every kind and character, including reasonable attorneys' fees

                                       15

<PAGE>

necessarily involved in the prosecution of any such suit, and if after such
reimbursement, any funds shall remain from said recovery, Cell-Matrix shall
promptly pay to NYU an amount equal to thirty percent (30%) of such remainder
and Cell-Matrix shall be entitled to receive and retain the balance of the
remainder of such recovery.

         d.       If Cell-Matrix does not bring suit against said infringer
pursuant to Section 10.b. herein, or has not commenced negotiations with said
infringer for discontinuance of said infringement, within ninety (90) days after
receipt of such notice, NYU shall have the right, but shall not be obligated, to
bring suit for such infringement. Should NYU elect to bring suit against an
infringer and Cell-Matrix is joined as a party plaintiff in any such suit,
Cell-Matrix shall have the right to approve the counsel selected by NYU to
represent NYU and Cell-Matrix, which approval shall not be unreasonably
withheld, and NYU shall hold Cell-Matrix free, clear and harmless from and
against any and all costs and expenses of such litigation, including attorneys'
fees. If Cell-Matrix has commenced negotiations with an alleged infringer of the
NYU Patent for discontinuance of such infringement within such 90-day period,
Cell-Matrix shall have an additional ninety (90) days from the termination of
such initial 90-day period to conclude its negotiations before NYU may bring
suit for such infringement. In the event NYU brings suit for infringement of any
NYU Patent, NYU shall have the right, following consultation with Cell-Matrix,
to settle any such suit by licensing the alleged infringer on terms
substantially equivalent to those included in this Agreement. In the event NYU
brings suit for infringement of any NYU Patent, NYU shall have the right to
first reimburse itself out of any sums recovered in such suit or settlement
thereof for all costs and expenses of every kind and character, including
reasonable attorneys' fees necessarily involved in the prosecution of such suit,
and if after such reimbursement, any funds shall remain from

                                       16

<PAGE>

said recovery, NYU shall promptly pay to Cell-Matrix an amount equal to thirty
percent (30%) of such remainder and NYU shall be entitled to receive and retain
the balance of the remainder of such recovery.

         e.       Each party shall always have the right, at its own expense, to
be represented by counsel of its own selection in any suit for infringement of
the NYU Patents instituted by the other party to this Agreement under the terms
hereof.

         f.       Cell-Matrix agrees to cooperate fully with NYU at the request
of NYU, including by giving testimony and producing documents lawfully requested
in the prosecution of any suit by NYU for infringement of the NYU patents;
provided, NYU shall pay all reasonable expenses (including attorneys' fees)
incurred by Cell-Matrix in connection with such cooperation. NYU shall cooperate
fully with Cell-Matrix and shall endeavor to cause the NYU Scientists to
cooperate with Cell-Matrix at the request of Cell-Matrix, including by giving
testimony and producing documents lawfully requested in the prosecution of any
suit by Cell-Matrix for infringement of the NYU Patents; provided, that
Cell-Matrix shall pay all reasonable expenses (including attorneys' fees)
incurred by NYU in connection with such cooperation.

11.      LIABILITY AND INDEMNIFICATION.

         a.       Cell-Matrix shall indemnify, defend and hold harmless NYU and
its trustees, officers, medical and professional staff, employees, students and
agents and their respective successors, heirs and assigns (the "Indemnitees"),
against any liability, damage, loss or expense (including reasonable attorneys'
fees and expenses of litigation) incurred by or imposed upon the Indemnitees or
any one of them in connection with any claims, suits, actions, demands or
judgments (i) arising out of the design, production, manufacture, sale, use in
commerce or in human clinical trials, lease, or promotion by Cell-Matrix or by a
sublicensee,

                                       17

<PAGE>

Affiliate or agent of Cell-Matrix of any Licensed Product, process or service
relating to, or developed pursuant to, this Agreement or (ii) arising out of any
other activities to be carried out pursuant to this Agreement.

         b.       With respect to an Indemnitee, Cell-Matrix's indemnification
under subsection a(i) of this Section 11 shall apply to any liability, damage,
loss or expense, whether or not it is attributable to the negligent activities
of such Indemnitee; however, Cell-Matrix's indemnification obligation under
subsection a(ii) of this Section 11 shall not apply to any liability, damage,
loss or expense to the extent that it is attributable to the negligent
activities or willful misconduct of any such Indemnitee.

         c.       Cell-Matrix agrees, at its own expense, to provide attorneys
reasonably acceptable to NYU to defend against any actions brought or filed
against any Indemnitee with respect to the subject of indemnity to which such
Indemnitee is entitled hereunder, whether or not such actions are rightfully
brought.

12.      SECURITY FOR INDEMNIFICATION.

         a.       At such time as any Licensed Product, process or service
relating to, or developed pursuant to, this Agreement is being commercially
distributed or sold (other than for the purpose of obtaining regulatory
approvals) by Cell-Matrix or by a licensee, Affiliate or agent of Cell-Matrix,
Cell-Matrix shall at its sole costs and expense, procure and maintain policies
of comprehensive general liability insurance in amounts not less than
$10,000,000 per incident and $20,000,000 annual aggregate and naming the
Indemnitees as additional insureds. Such comprehensive general liability
insurance shall provide (i) product liability coverage and (ii) broad form
contractual liability coverage for Cell-Matrix's indemnification under Section
11 of this Agreement. If Cell-Matrix elects to self-insure all or part of the
limits described above

                                       18

<PAGE>

(including deductibles or retentions which are in excess of $250,000 annual
aggregate) such self-insurance program must be reasonably acceptable to NYU.

         The minimum amounts of insurance coverage required under this Section
12 shall not be construed to create a limit of Cell-Matrix's liability with
respect to its indemnification under Section 11 of this Agreement.

         b.       Cell-Matrix shall provide NYU with written evidence of such
insurance upon request of NYU. Cell-Matrix shall provide NYU with written notice
at least sixty (60) days prior to the cancellation, non-renewal or material
change in such insurance; if Cell-Matrix does not obtain replacement insurance
providing comparable coverage within such sixty (60) day period, NYU shall have
the right to terminate this Agreement effective at the end of such sixty (60)
day period without notice or any additional waiting periods.

         c.       Cell-Matrix shall maintain such comprehensive general
liability insurance beyond the expiration or termination of this Agreement
during (i) the period that any product, process or service, relating to, or
developed pursuant to, this Agreement is being commercially distributed or sold
(other than for the purpose of obtaining regulatory approvals) by Cell-Matrix or
by a sublicensee, Affiliate or agent of Cell-Matrix and (ii) a reasonable period
after the period referred to in (c)(i) above, which in no event shall be less
than fifteen (15) years.

13.      EXPIRY AND TERMINATION

         a.       Unless earlier terminated pursuant to this Section 13 hereof,
this Agreement shall expire upon the expiration of the period of the License in
all countries as set forth in Section 5.b. above.

         b.       At any time prior to expiration of this Agreement, either
party may terminate this Agreement forthwith for cause, as "cause" is described
below, by giving written notice to the

                                       19

<PAGE>

other party. Cause for termination by one party of this Agreement shall be
deemed to exist if the other party materially breaches or defaults in the
performance or observance of any of the provisions of this Agreement and such
breach or default is not materially cured within sixty (60) days or, in the case
of failure to pay any amounts due hereunder, thirty (30) days (unless otherwise
specified herein) after the giving of notice by the other party specifying such
breach or default, or if either NYU or Cell-Matrix discontinues its business or
becomes insolvent or bankrupt.

         c.       Cell-Matrix may terminate this Agreement at any time in
Cell-Matrix's sole discretion, upon not less than one hundred eighty (180) days'
prior written notice to NYU.

         d.       Upon termination of this Agreement for any reason and prior to
expiration as set forth in Section 13.a and 13.b hereof, all rights in and to
the NYU Technology shall revert to NYU, and, except as provided in Section 9.d,
Cell-Matrix shall not be entitled to make any further use whatsoever of the NYU
Technology.

         e.       Cell-Matrix shall promptly, without further consideration,
provide to NYU copies of all data and regulatory documents, including INDs,
NDAs, Orphan Drug applications, or their equivalents in all countries, directly
related to the development of Licensed Products (the "Regulatory Information"),
provided that NYU and any of its sublicensees who utilize such .Regulatory
Information shall agree to indemnify, defend and hold harmless Cell-Matrix and
its Affiliates and sublicensees against any liability, damage, loss or expense
(including reasonable attorney's fees and expenses of litigation) incurred by or
imposed upon Cell-Matrix, its Affiliates or sublicensees, or any one of them in
connection with any claims, suits, actions, demands or judgments arising out of
any use by NYU or its sublicensees of such Regulatory Information.

                                       20

<PAGE>

         f.       Termination of this Agreement shall not relieve either party
of any obligation to the other party incurred prior to such termination.

         g.       Sections 3, 9, 11, 12, 16, 17, and 18 hereof shall survive and
remain in full force and effect after any termination, cancellation or
expiration of this Agreement.

14.      REPRESENTATIONS AND WARRANTIES BY CELL-MATRIX.

         Cell-Matrix hereby represents and warrants to NYU as follow:

         (1)      Cell-Matrix is a corporation duly organized, validly existing
and in good standing under the laws of the State of Nevada. Cell-Matrix has been
granted all requisite power and authority to carry on its business and to own
and operate its properties and assets. The execution, delivery and performance
of this Agreement have been duly authorized by the Board of Directors of
Cell-Matrix.

         (2)      There is no pending or, to Cell-Matrix's knowledge, threatened
litigation involving Cell-Matrix which would have any effect on this Agreement
or on Cell-Matrix's ability to perform its obligations hereunder; and

         (3)      There is no indenture, contract, or agreement to which
Cell-Matrix is a party or by which Cell-Matrix is bound which prohibits or would
prohibit the execution and delivery by Cell-Matrix of this Agreement or the
performance or observance by Cell-Matrix of any term or condition of this
Agreement.

15.      REPRESENTATIONS AND WARRANTIES BY NYU.

         NYU hereby represents and warrants to Cell-Matrix as follows:

         (1)      NYU is a corporation duly organized, validly existing and in
good standing under the laws of the State of New York. NYU has been granted all
requisite power and authority to carry on its business and to own and operate
its properties and assets. The execution, delivery

                                       21

<PAGE>

and performance of this Agreement have been duly authorized by the Board of
Trustees of NYU.

         (2)      There is no pending or, to NYU's knowledge, threatened
litigation involving NYU which would have any effect on this Agreement or on
NYU's ability to perform its obligations hereunder;

         (3)      There is no indenture, contract, or agreement to which NYU is
a party or by which NYU is bound which prohibits or would prohibit the execution
and delivery by NYU of this Agreement or the performance or observance by NYU of
any term or condition of this Agreement; and

         (4)      NYU shall provide to Cell-Matrix the materials and information
listed in Exhibit D hereto (the "Supporting Data") within thirty (30) days
following the Effective Date. In the event that Supporting Data are not provided
within this time period, Cell-Matrix may delay payment of [***] from the portion
of the License Issue Fee that would otherwise be payable within thirty (30) days
following the Effective Date under Section 6(a)(1) of this Agreement until such
time as all of Supporting Data are received by Cell-Matrix.

16.      NO ASSIGNMENT.

         Neither Cell-Matrix nor NYU shall have the right to assign, delegate or
transfer at any time to any party, in whole or in part, any or all of the
rights, duties and interest herein granted without first obtaining the written
consent of the other to such assignment, which consent shall not be unreasonably
withheld, provided, however, that no prior written consent shall be required in
the event that a third party acquires substantially all of the assigning party's
assets or outstanding shares, or merges with the assigning party. No assignment
of this Agreement shall

*** Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                       22

<PAGE>

relieve the assigning party of any of its obligations or liability hereunder.
Any attempted assignment not in compliance with this Section 16 shall be of no
force or effect.

17.      USE OF NAME.

         Without the prior written consent of the other party, neither
Cell-Matrix nor NYU shall use the name of the other party or any adaptation
thereof:

         i)       in any product labeling, advertising, promotional or sales
         literature;

         ii)      in connection with any public or private offering, in
         conjunction with any application for regulatory approval, in reports or
         documents or other disclosures sent to stockholders or filed with or
         submitted to any government authority or stock exchange, unless
         disclosure is otherwise required by law, in which case either party may
         make factual statements concerning the Agreement or file copies of the
         Agreement.

         Except as provided herein, neither NYU nor Cell-Matrix will issue
public announcements about this Agreement without prior written approval of the
other party, which approval shall not be unreasonably withheld. The parties each
agree that once approval for disclosure of information subject to this Section
17 has been obtained, the party that requested such approval shall be entitled
to use such information substantially in the form initially presented without an
obligation to seek further approval.

18.      MISCELLANEOUS.

         a.       In carrying out this Agreement the parties shall comply with
all local, state and federal laws and regulations including but not limited to,
the provisions of Title 35 United States Code Section 200 et seq. and 15 CFR
Section 368 et seq.

         b.       If any provision of this Agreement is determined to be invalid
or void, the remaining provisions shall remain in effect.

                                       23

<PAGE>

         c.       This Agreement shall be deemed to have been made in the State
of New York and shall be governed and interpreted in all respects under the laws
of the State of New York.

         d.       All payments or notices required or permitted to be given
under this Agreement shall be given in writing and shall be effective when
either personally delivered or deposited, postage prepaid, in the United States
registered or certified mail, addressed as follows:

         To:      NYU:
                  New York University School of Medicine
                  650 First Avenue, 6th Floor
                  New York, NY  10016
                  Attention: Abram M. Goldfinger
                  Executive Director, Industrial Liaison/Technology Transfer

                  With a copy to:

                  Office of Legal Counsel
                  New York University
                  Bobst Library
                  70 Washington Square South
                  New York, NY  10012
                  Attention: Annette B. Johnson, Esq.
                  Vice Dean & Senior Counsel for Medical School Affairs

         To:      Cell-Matrix:
                  Cell-Matrix, Inc.
                  2110 Rutherford Road
                  Carlsbad, CA 92008
                  Attention: General Counsel

         or such other address or addresses as either party may hereafter
specify by written notice to the other. Such notices and communications shall be
deemed effective on the date of delivery or fourteen (14) days after having been
sent by registered or certified mail, whichever is earlier.

         f.       This Agreement (and the annexed Appendices) constitute the
entire Agreement between the parties and no variation, modification or waiver of
any of the terms or conditions hereof shall be deemed valid unless made in
writing and signed by both parties hereto. This

                                       24

<PAGE>

Agreement supersedes any and all prior agreements or understandings, whether
oral or written, with respect to the NYU Technology between Cell-Matrix and NYU.

         g.       No waiver by either party of any non-performance or violation
by the other party of any of the covenants, obligations or agreements of such
other party hereunder shall be deemed to be a waiver of any subsequent violation
or non-performance of the same or any other covenant, agreement or obligation,
nor shall forbearance by any party be deemed to be a waiver by

         such party of its rights or remedies with respect to such violation or
non-performance.

         h.       The descriptive headings contained in this Agreement are
included for convenience and reference only and shall not be held to expand,
modify or aid in the interpretation, construction or meaning of this Agreement.

         i.       It is not the intent of the parties to create a partnership or
joint venture or to assume partnership responsibility or liability. The
obligations of the parties shall be limited to those set out herein and such
obligations shall be several and not joint.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective as of the date and year first above written.

         NEW YORK UNIVERSITY                         CELL-MATRIX, INC.

         By: /s/ Abram M. Goldfinger                 By: /s/ William R. LaRue
             -------------------------------             -----------------------
             Abram M. Goldfinger                         William R. LaRue
             Executive Director,                         President
             Industrial Liaison/Technology Transfer

         Date:  6/2/03                               Date:  5/30/03

                                       25

<PAGE>

                                    EXHIBIT A

                        [***]-Peptide and [***]-Peptide

                              Invention Disclosure

                                 (NYU # 2002-41)

 [15 Pages of Proprietary Information Deleted Pursuant to Confidential Treatment
                                    Request]

*** Certain information on this page has been omitted and filed separately with
    the Commission. Confidential treatment has been requested with respect to
    the omitted portions.

                                       26

<PAGE>

                                    EXHIBIT B

                                 [***]-Peptide

                              Invention Disclosure

                                 (NYU # 2002-40)

 [15 Pages of Proprietary Information Deleted Pursuant to Confidential Treatment
                                    Request]

*** Certain information on this page has been omitted and filed separately with
    the Commission. Confidential treatment has been requested with respect to
    the omitted portions.

                                       27

<PAGE>

                                    EXHIBIT C

-   "Material(s)" shall mean the NYU Technology.

-   "Derivatives" shall mean and shall only include progeny of the Material(s)
    or their Derivatives.

-   "New Substance" shall mean any material produced or isolated by Transferee
    in connection with Transferee's use of Materials which is not a Derivative.

-   Transferor shall transfer to Transferee the Materials following the
    execution of the Agreement or as otherwise agreed upon by the parties, and
    grants Transferee a nonexclusive license to use and modify the Materials for
    non-commercial, non-clinical educational and research purposes only, as
    fully described in Attachment X hereto.

-   Transferee represents and warrants that the Materials will not be given or
    made available to any other person, firm or corporation, but are to remain
    under Transferee's immediate and direct control. Transferee further
    represents and warrants that the Materials will not be used in humans or,
    directly or indirectly, in any "sponsored" research or other research
    programs if the terms of such sponsorship or program would entitle the
    sponsor or any third party to any rights or interests in such research or
    its results, including the right to review and/or publish such results. Any
    other uses of the Materials by Transferee are prohibited.

-   TRANSFEREE AGREES TO USE THE MATERIALS IN COMPLIANCE WITH ALL APPLICABLE
    FEDERAL, STATE, NATIONAL, OR LOCAL LAWS AND REGULATIONS. TRANSFEREE
    UNDERSTANDS AND ACKNOWLEDGES THAT THE USE OF THE MATERIALS IN HUMANS WITHOUT
    THE EXPRESS WRITTEN PERMISSION OF TRANSFEROR IS EXPRESSLY PROHIBITED.

-   Transferee agrees to return all unused Materials to Transferor upon the
    termination or expiration of the Agreement or upon written request of
    Transferor within ten (10) business days of such request.

-   All right, title and interest to all Materials shall remain in or are hereby
    assigned to Transferor. All right, title and interest to all Derivatives and
    New Substances (and any patent and other intellectual property rights to the
    Derivatives and New Substances) shall vest in or are hereby assigned to
    Transferor.

-   Transferee shall keep Transferor and Cell-Matrix, Inc., informed of all uses
    made of the Materials, and shall provide Transferor and Cell-Matrix, Inc.,
    with a report summarizing

                                       28

<PAGE>

    the results of experiments and data generated utilizing the Materials
    quarterly during the course of the research and within thirty days following
    the conclusion of such research.

-   CONFIDENTIALITY. THE MATERIALS SHALL BE RECEIVED AND HELD IN CONFIDENCE BY
    TRANSFEREE, WHICH ACKNOWLEDGES THAT THEY ARE CONSIDERED PROPRIETARY TO
    TRANSFEROR. TRANSFEREE SHALL EXECUTE A CONFIDENTIAL DISCLOSURE AGREEMENT
    WITH TRANSFEROR PRIOR TO THE TRANSFER BY TRANSFEROR OF THE MATERIALS. THE
    CONFIDENTIAL DISCLOSURE AGREEMENT SHALL SURVIVE ANY TERMINATION OR
    EXPIRATION OF THE AGREEMENT.

-   Publications. Transferee shall have the right to publish or present
    information which results from Transferee's research using the Materials,
    provided that such publication or presentation (and any revisions thereto):
    (a) does not disclose Confidential Information (as such term is defined in
    the Confidential Disclosure Agreement referenced in Section 3, above) of
    Transferor; and (b) is submitted to Transferor and Cell-Matrix, Inc., at
    least ninety (90) days prior to the date of submission of such proposed
    publication or presentation. Upon notice by Transferor or Cell-Matrix, Inc.,
    that Transferor's or Cell-Matrix, Inc.'s legal counsel recommends delaying
    or modifying the proposed publication or presentation in order to protect
    intellectual property rights and/or as otherwise required by applicable law
    or regulation, Transferee agrees that the submission of the publication or
    presentation shall be delayed by the period of time reasonably recommended
    by such legal counsel and/or the publication or presentation shall be
    modified in accordance with comments or changes as directed by Transferor or
    Cell-Matrix, Inc..

-   TERM. THIS AGREEMENT WILL TERMINATE ON THE EARLIEST OF THE FOLLOWING DATES:
    (I) UPON COMPLETION OF TRANSFEREE'S CURRENT INVESTIGATION WITH THE MATERIAL,
    OR (II) ON TEN (10) BUSINESS DAYS PRIOR WRITTEN NOTICE BY EITHER PARTY TO
    THE OTHER.

-   This Agreement may not be assigned by either party without the written
    consent of the other party, except to a person or entity acquiring all or
    substantially all of the assigning party's business or voting power through
    merger, consolidation or otherwise. This Agreement may be modified only in
    writing, signed by both parties.

                                       29

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                                    EXHIBIT D

                                "Supporting Data"

The following list refers only to data already in existence as of the Effective
Date:

     1. Raw data from which the graphs that we received were generated and data
from the repeat studies that were done with the peptides in the CAM,
proliferation and adherence assays.

     2. Raw data that was generated on the effect of the peptides in the mouse
tumor model along with the protocol that was used.

     3. Comparative data with the other peptides that were generated and tested
and did not show activity

     4. Any comparative data on soluble vs less soluble forms of the peptides

     5. List of peptides tested

                                       30

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