Document:

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CONFIDENTIAL TREATMENT REQUEST                                    EXECUTION COPY

                                                                   Exhibit 10.62

PORTIONS OF THIS EXHIBIT WERE OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE
ACT OF 1934. SUCH PORTIONS ARE MARKED BY ASTERISKS.

                  RESEARCH COLLABORATION AND LICENSE AGREEMENT

                                     between

                            GENOME THERAPEUTICS CORP.

                                       and

                                   AMGEN INC.

                                                                    CONFIDENTIAL

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
FILED WITH THE COMMISSION PURSUANT TO RULE 24b-2 UNDER THE SECURITIES EXCHANGE
ACT OF 1934. SUCH PORTIONS ARE MARKED BY ASTERISKS.

                  RESEARCH COLLABORATION AND LICENSE AGREEMENT

        This Research Collaboration and License Agreement (this "Agreement") is
effective as of December __, 2002 (the "Effective Date") by and between Genome
Therapeutics Corp. ("GENE"), 100 Beaver Street, Waltham, Massachusetts 02453 and
Amgen Inc. ("Amgen"), One Amgen Center Drive, Thousand Oaks, California
91320-1799. Amgen and GENE are sometimes referred to herein individually as a
"Party" and collectively as the "Parties."

                                   WITNESSETH:

        WHEREAS, GENE is engaged in the discovery of novel genes related to high
bone density;

        WHEREAS Amgen is engaged in the discovery, development and
commercialization of human therapeutics; and

        WHEREAS GENE and Amgen desire to enter into a collaborative relationship
to discover and develop human therapeutics for the treatment of osteoporosis and
other diseases, on the terms and subject to the conditions set forth herein.

        NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants contained herein, the Parties agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

  1.1     "Affiliate" means any corporation, company, partnership, joint venture
          and/or firm which controls, is controlled by, or is under common
          control with a Party. For purposes of this definition, "control" shall
          be presumed to exist if one of the following conditions is met: (a) in
          the case of corporate entities, direct or indirect ownership of at
          least fifty percent (50%) of the stock or shares having the right to
          vote for the election of directors, and (b) in the case of
          non-corporate entities, direct or indirect ownership of at least fifty
          percent (50%) of the equity interest with the power to direct the
          management and policies of such non-corporate entities.

  1.2     "Amgen Background Know-How" means *****.

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  1.3     "Amgen Background Patent Rights" means all Patent Rights Controlled by
          Amgen as of the Effective Date or during the term of this Agreement
          that claim Amgen Background Know-How.

  1.4     "Amgen Technology" means, collectively, Amgen Background Patent
          Rights, Amgen Background Know-How, Amgen Program Patent Rights, Amgen
          Program Know-How and Amgen's interest in the Joint Patent Rights and
          Joint Know-How.

  1.5     "Calendar Quarter" means, with respect to the first such Calendar
          Quarter, the period beginning on the Effective Date and ending on
          December 31, 2002, and thereafter each successive period of three (3)
          consecutive calendar months ending on March 31, June 30, September 30
          or December 31.

  1.6     "Calendar Year" means each successive period of twelve (12) months
          commencing on January 1 and ending on December 31.

  1.7     "Change of Control of GENE" means the acquisition, directly or
          indirectly, by a Competitive Entity of fifty percent (50%) or more of
          the shares of GENE's voting capital stock, the holders of which have
          general voting power under ordinary circumstances to elect at least a
          majority of GENE's Board of Directors or equivalent body.

  1.8     "Clinical Milestone Payments" means those amounts payable by Amgen to
          GENE pursuant to Section 8.5.

  1.9     "Co-Detail" means the employment by Amgen and GENE of Representatives
          to jointly Detail the same Product under the same Product Trademark in
          the United States and/or Canada (as appropriate), under the
          coordination and direction of Amgen.

  1.10    "Commercialization" or "Commercialize" means any and all activities
          (whether before or after Regulatory Approval) directed to the
          marketing, Detailing and promotion of a Product after Regulatory
          Approval for commercial sale has been obtained and shall include *****
          When used as a verb, "Commercializing" means to engage in
          Commercialization and "Commercialized" shall have a corresponding
          meaning

  1.11    "Commercialization Expense" has the meaning set forth in Exhibit X.

  1.12    "Commercialization Plan" means the summary plan (which shall include a
          summary strategy and proposed timelines), and any updates thereto, to
          be prepared by Amgen pursuant to Section 6.2 for the Commercialization
          of any Product in the United States and/or Canada (as appropriate).

  1.13    "Commercially Reasonable Efforts" means a level of efforts and
          resources consistent with good business practice and standards that a
          company in the research-

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          based pharmaceutical industry would devote to research, develop or
          commercialize (as appropriate) a product for a similar use and of
          similar market potential at a similar stage in its product life as
          that of a Product, *****. Commercially Reasonable Efforts shall be
          determined on a country-by-country basis for a particular Product, and
          it is anticipated that the level of effort will change over time,
          reflecting changes in the status of the Product and the country
          involved.

  1.14    "Competitive Entity" means a company that at the time of a Change of
          Control of GENE *****.

  1.15    "Confidential Information" means (a) all tangible embodiments of
          Information produced or developed by either Party in the Research
          Program, and (b) all Information received by either Party (the
          "receiving Party") from the other Party (the "disclosing Party")
          pursuant to this Agreement, other than that portion of such
          Information which: (a) is publicly disclosed by the disclosing Party,
          either before or after it becomes known to the receiving Party; (b)
          was known to the receiving Party, without obligation to keep it
          confidential, prior to when it was received from the disclosing Party,
          as shown by written documentation; (c) is subsequently disclosed to
          the receiving Party by a Third Party lawfully in possession thereof
          without obligation to keep it confidential; (d) has been publicly
          disclosed other than by the disclosing Party and without breach of an
          obligation of confidentiality with respect thereto; or (e) has been
          independently developed by the receiving Party without the aid,
          application or use of Confidential Information, as shown by written
          documentation.

  1.16    "Contract Year" means the period beginning on the Effective Date and
          ending on the first anniversary thereof, and each succeeding twelve
          (12) month period thereafter.

  1.17    "Control" or "Controlled" means with respect to any (a) Material or
          Information or (b) intellectual property right, in each case the
          possession (whether by ownership, license or other right, other than
          pursuant to this Agreement) by a Party or its Affiliates of the
          ability to grant the other Party access and/or a license or
          (sublicense) to such Material or Information or intellectual property
          rights as provided for herein without violating the terms (in
          existence at the time of such Party or its Affiliates acquiring such
          ownership, license or other right) of any agreement or other
          arrangement between such Party (or its Affiliates) and any Third
          Party.

  1.18    "Creighton License" means that certain agreement between GENE and
          Creighton University, effective April 3, 1997, and any amendments
          thereto.

  1.19    "Detail" *****.

  1.20    "Development" or "Develop" means, with respect to a Product, all
          clinical and other activities undertaken to obtain Regulatory Approval
          of such Product, in accordance with this Agreement, after the first
          filing of an IND for such Product and prior to Regulatory Approval of
          such Product. These activities shall include *****. When

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          used as a verb, "Developing" means to engage in Development and
          "Developed" shall have a corresponding meaning.

  1.21    "Development Costs" means (a) with respect to Amgen, the cost of any
          and all activities performed by Amgen and specifically attributable to
          the Development of a Product consistent with the Development Plan,
          including, without limitation: *****.

  1.22    "Development Plan" means the summary plan (which shall include a
          summary strategy and proposed timelines), and any updates thereto, to
          be prepared by Amgen for the Development of any indication for a
          Product pursuant to Sections 4.2, 4.3 and 4.5 including, without
          limitation, the research, clinical and regulatory activities required
          to obtain Regulatory Approval(s) in the Territory.

  1.23    "Diligent Inquiry" has the meaning set forth in Section 8.4(a).

  1.24    "Drug Approval Application" means an application for any Regulatory
          Approval required before commercial sale or use of a Product as a drug
          or biologic or to treat a particular indication in a regulatory
          jurisdiction, including: (a) (i) a Biologics License Application
          ("BLA") pursuant to 21 C.F.R. 601.2 (or any successor application or
          procedure) or a New Drug Application ("NDA") pursuant to 21 C.F.R.
          314.5 (or any successor application or procedure) submitted to the
          FDA; and (ii) any counterpart of a U.S. BLA or NDA in any other
          country in the Territory; and (b) all supplements and amendments that
          may be filed with respect to the foregoing.

  1.25    "Early Development Costs" means the Development Costs associated with
          Early Stage Development of a Product for an indication. Early
          Development Costs include *****. Early Development Costs also include
          *****.

  1.26    "Early Stage Development" means, with respect to any indication for a
          Product, all post-IND filing Development commencing on the first
          filing of an IND for such indication and continuing up to and
          including the completion of Phase II Studies or commencement of
          Pivotal Studies, whichever is earlier for such indication.

  1.27    "Effective Date" means the first date set forth hereinabove.

  1.28    "Fair Market Value" means the average closing stock price over the
          period of time ***** for which the equity is being issued.

  1.29    "FDA" means the United States Food and Drug Administration and any
          successor thereto.

  1.30    "Field of Use" means all uses, *****.

  1.31    "First Commercial Sale" means, with respect to any Product, the first
          sale for end-use or consumption of such Product in a country after the
          governing health regulatory authority of such country has granted
          Regulatory Approval. Sale to an Affiliate or

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          sublicensee will not constitute a First Commercial Sale unless the
          Affiliate or sublicensee is the last entity in the distribution chain
          of the Product.

  1.32    "Force Majeure" means any occurrence beyond the reasonable control of
          a Party that prevents or substantially interferes with the performance
          by the Party of any of its obligations hereunder, if such occurs by
          reason of any act of God, flood, fire, explosion, earthquake,
          breakdown of plant, shortage of critical equipment, loss or
          unavailability of manufacturing facilities or material, strike,
          lockout, labor dispute, casualty or accident, or war, revolution,
          civil commotion, acts of public enemies, blockage or embargo, or any
          injunction, law, order, proclamation, regulation, ordinance, demand or
          requirement of any government or of any subdivision, authority or
          representative of any such government, inability to procure or use
          materials, labor, equipment, transportation or energy sufficient to
          meet manufacturing needs without the necessity of allocation, or any
          other cause whatsoever, whether similar or dissimilar to those above
          enumerated, beyond the reasonable control of such Party, if and only
          if the Party affected shall have used reasonable efforts to avoid such
          occurrence and to remedy it promptly if it shall have occurred.

  1.33    "FTE" means the equivalent of the work of one employee working full
          time on the Research Program or Development of a Product *****. No one
          person shall be permitted to account for more than one FTE.

  1.34    "FTE Cost" means, for any Calendar Quarter, the FTE Rate multiplied by
          the sum of the number of days (calculated by adding the full and
          partial percentage of days) actually spent in that Calendar Quarter by
          FTEs of a Party (as per their time sheets) working directly on the
          Research Program or Development of a Product under the terms of this
          Agreement and dividing the result thereof *****.

  1.35    "FTE Rate" means the amount to be charged per FTE. ***** subject to
          adjustment on an annual basis as of January 1 of each year beginning
          in 2004 by a factor which reflects changes in the Consumer Price Index
          as reported as of January 1 in each applicable year when compared to
          the comparable statistic for January 1 of the preceding year.

  1.36    "GAAP" means United States generally accepted accounting principles.

  1.37    "GENE Background Know-How" means *****.

  1.38    "GENE Background Patent Rights" means all Patent Rights Controlled by
          GENE as of the Effective Date or during the term of this Agreement
          that claim GENE Background Know-How.

  1.39    *****

  1.40    *****

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1.41      "GENE Technology" means, collectively, ***** GENE Background Know How,
          GENE Program Patent Rights, GENE Program Know-How and GENE's interest
          in the Joint Patent Rights and Joint Know-How.

  1.42    "IND" means (i) an Investigational New Drug Application (as defined in
          the U.S. Federal Food, Drug and Cosmetic Act, as amended from time to
          time, and the regulations promulgated thereunder) that is required to
          be filed with the FDA before beginning clinical testing of a Product
          in human subjects, or any successor application or procedure and (ii)
          any counterpart of a U.S. Investigational New Drug Application in any
          other country in the Territory.

  1.43    "Information" means all tangible and intangible techniques,
          technology, practices, trade secrets, inventions (whether patentable
          or not), methods, knowledge, know-how, conclusions, skill, experience,
          test data and results (including pharmacological, toxicological and
          clinical test data and results), analytical and quality control data,
          results or descriptions, software and algorithms.

  1.44    Joint Know-How means all Information and Materials characterized,
          conceived, developed, derived, discovered, generated or identified
          jointly by employees of or consultants to GENE and employees of or
          consultants to Amgen in the conduct of the Research Program.

  1.45    "Joint Patent Rights" means Patent Rights that are Controlled during
          the term of this Agreement by Amgen and GENE and claim Joint Know-How.

  1.46    "Joint Research Committee" means the committee formed pursuant to
          Section 2.1.

  1.47    "Joint Steering Committee" means the committee formed pursuant to
          Section 2.4.

  1.48    "Large Molecule" means a *****.

  1.49    "Large Molecule Manufacturing Technology" means *****.

  1.50    "Late Development Costs" means the Development Costs associated with
          Late Stage Development of a Product for an indication, other than the
          Development Costs explicitly included in Early Development Costs.

  1.51    "Late Stage Development" means, with respect to any indication for a
          Product, all Development following the completion of Phase II Studies
          or commencement of Pivotal Studies, whichever is earlier for such
          indication, up to and including filing of the first Drug Approval
          Application for such indication in any jurisdiction and including any
          supplementary Development necessary or required by a Regulatory
          Authority (a) in order to obtain the first Regulatory Approval for
          such indication; or (b) to satisfy any conditions of the first
          Regulatory Approval in that jurisdiction.

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  1.52    "Losses" means liabilities, damages, expenses, costs and/or losses,
          including without limitation reasonable legal expenses and attorneys'
          fees for outside counsel.

  1.53    "Materials" has the meaning provided in Section 3.7.

  1.54    "Major Market Country" shall mean the United States, United Kingdom,
          Italy, Germany, France, Japan, Canada and Spain.

  1.55    "Net Sales" has the meaning set forth in Exhibit X.

  1.56    "Patent Rights" means (a) valid and enforceable United States patents,
          re-examinations, reissues, renewals, extensions and term restorations,
          and foreign counterparts thereof, and (b) pending applications for
          United States patents including, without limitation, provisional
          applications, continuations, continuations-in-part, divisional and
          substitute applications including, without limitation, inventors'
          certificates, and foreign counterparts thereof.

  1.57    "Phase I Study" means a clinical trial that is designed to determine
          the metabolism, pharmacologic actions (including pharmacodynamics) and
          pharmacokinetics of a drug in humans, the tolerability and any
          potential side effects of the drug associated with increasing doses
          and that satisfy the requirements of 21 CFR 312.21(a), or its
          successor regulation, or its equivalent in any other jurisdiction.

  1.58    "Phase II Study" means a clinical trial that is designed to establish
          the safety and preliminary efficacy of a drug for its intended use,
          and to define warnings, precautions and adverse reactions that are
          associated with the drug in the dosage range to be prescribed and that
          satisfy the requirements of 21 CFR 312.21(b) (or its successor
          regulation), or its equivalent in any other jurisdiction.

  1.59    Pivotal Study(ies)" means those clinical trials on sufficient numbers
          of patients that, if the defined end-points are met, are designed (and
          agreed to by the FDA, or other Regulatory Authorities in the
          Territory) based upon existing data in the same patient population as
          of the start of the trial to definitively establish that a drug is
          safe and efficacious for its intended use, and to define warnings,
          precautions and adverse reactions that are associated with the drug in
          the dosage range to be prescribed, and which provide pivotal data
          supporting Regulatory Approval of such drug or label expansion of such
          drug and that satisfy the requirements of 21 CFR 321.21(c), or its
          successor regulation, or an equivalent foreign clinical trial.

  1.60    "Product Contribution" has the meaning set forth in Exhibit X.

  1.61    "Product(s)" means a Small Molecule pharmaceutical(s) and/or a Large
          Molecule pharmaceutical(s) *****

  1.62    "Product Trademark(s)" means any trademarks and trade names, whether
          or not registered, and any trademark applications, renewals,
          extensions or modifications

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          thereto in the Territory together with all goodwill associated
          therewith, trade dress and packaging which are applied to or used with
          Products or any promotional materials relating thereto.

  1.63    "Program Know-How" means all Information and Materials characterized,
          conceived, developed, derived, discovered, generated or identified by
          employees of or consultants to either Party in the conduct of the
          Research Program. Amgen Program Know-How means that portion of Program
          Know-How characterized, conceived, developed, derived, discovered,
          generated or identified solely by employees of or consultants to
          Amgen. GENE Program Know-How means that portion of Program Know-How
          characterized, conceived, developed, derived, discovered, generated or
          identified solely by employees of or consultants to GENE.

  1.64    "Program Patent Rights" means all Patent Rights that are Controlled
          during the Agreement by Amgen or GENE and claim Program Know-How. In
          particular, Amgen Program Patent Rights means that portion of Program
          Patent Rights Controlled by Amgen and GENE Program Patent Rights means
          that portion of Program Patent Rights Controlled by GENE.

  1.65    "Regulatory Approval" means any approvals (including supplements,
          amendments, pre- and post-approvals and price approvals), licenses,
          registrations or authorizations (including any designations of an
          indication for a Product as an "Orphan Product" under the Orphan Drug
          Act), howsoever called, of any Regulatory Authority, which are
          necessary for the distribution, importation, exportation, manufacture,
          production, use, storage, transport or clinical testing and/or sale of
          a Product in a regulatory jurisdiction. Regulatory Approval shall not
          include any site license for an Amgen manufacturing facility.

  1.66    "Regulatory Authority" means the FDA or any counterpart of the FDA
          outside the United States, or other national, supra-national,
          regional, state or local regulatory agency, department, bureau,
          commission, council or other governmental entity with authority over
          the distribution, importation, exportation, manufacture, production,
          use, storage, transport or clinical testing and/or sale of a Product.

  1.67    "Regulatory Filings" means, collectively, INDs, BLAs, establishment
          license applications (ELAs) and drug master files (DMFs), applications
          for designation of a Product as an "Orphan Product(s)" under the
          Orphan Drug Act or any other similar filings (including any foreign
          equivalents and further including any related correspondence and
          discussions), and all data contained therein, as may be required by
          the FDA or equivalent foreign Regulatory Authorities for the
          Development, manufacture or Commercialization of a Product.

  1.68    "Regulatory Plan" means the list of all Regulatory Filings and
          Regulatory Approvals regarding Products, and any updates thereto.

  1.69    "Research Field" means (i) *****

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  1.70    "Research Plan" means the written plan for conducting the Research
          Program attached hereto as Exhibit 1, as amended from time to time by
          the Joint Research Committee.

  1.71    "Research Program" means the program of collaborative research to be
          carried out by the Parties pursuant to Article 3 and the activities
          related thereto as described in the Research Plan.

  1.72    *****

  1.73    "Royalty Term" means, in the case of any Product, and on a
          country-by-country basis, the period of time commencing on the First
          Commercial Sale of such Product and ending upon the later of *****.

  1.74    "Small Molecule" means a *****.

  1.75    "Territory" means worldwide.

  1.76    "Third Party(ies)" means any entity(ies) other than Amgen and its
          Affiliates or GENE and its Affiliates.

                                    ARTICLE 2
                                   GOVERNANCE

  2.1     Joint Research Committee. Promptly after the Effective Date, the
          Parties will form a Joint Research Committee ("JRC") comprised of
          ***** representatives each of Amgen and GENE. ***** A reasonable
          number of additional representatives of a Party may attend meetings of
          the JRC in a non-voting capacity. The JRC will meet at least
          quarterly, on reasonable written notice, during the Research Program
          (in person, by teleconference or otherwise). If in person, such
          meetings shall alternate between the offices of the Parties, with the
          first meeting at the offices of Amgen. *****. Promptly following the
          Effective Date, the JRC shall hold an organizational meeting to
          establish the operational requirements of the JRC, which shall include
          the methods whereby decisions of the JRC are recorded.

  2.2     Joint Research Committee Responsibilities. The JRC generally shall
          have the responsibility of managing, directing and coordinating the
          Research Program, including, without limitation, the following
          responsibilities:

          a.    managing and monitoring the progress and results of the Research
                Program and the Parties' diligence in carrying out their
                responsibilities thereunder;

          b.    determining future Research Program activities to be conducted
                under the Research Plan;

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          c.    allocating responsibility for the various Research Program
                activities between the Parties;

          d.    *****;

          e.    reviewing and approving modifications of the Research Plan from
                time to time *****; and

          f.    *****.

  2.3     Excepted Items. Excepted Items are the following:

          a.    *****

          b.    *****

          c.    *****

          d.    *****

          *****.

  2.4     Joint Steering Committee. Promptly after the Effective Date, GENE and
          Amgen shall establish a Joint Steering Committee ("JSC") comprised of
          ***** members from each of GENE and Amgen. Members from each of the
          Parties will include the respective Senior Vice Presidents of Research
          of each of the Parties or other Vice Presidents appointed by such
          respective Senior Vice Presidents. The JSC shall be responsible for
          managing the relationship between the Parties *****. Each member of
          the JSC will have equal voting authority and the agreement of the
          majority of the members of the JSC shall be required for all matters
          considered, except for any disagreements arising under Section 2.3.c.
          in which instances *****. The JSC shall meet at least once every *****
          on reasonable written notice in person, by teleconference or as
          mutually agreed by the JSC, or, in the event of a disagreement between
          members of the JRC with respect to Excepted Items or other matters
          referred by the Parties to the JSC to resolve, within ***** following
          notice by the chair of the JRC of such disagreement. *****.

  2.5     Dispute Resolution. If the JSC is unable to resolve any disagreement
          ***** within ***** business days of notification of such disagreement
          to the JSC, the matter shall be referred to *****. If such persons
          cannot resolve such matter within ***** of commencing such
          negotiations, then the matter shall be referred within *****, then
          either Party may at any time thereafter pursue any legal or equitable
          remedy available to it. Notwithstanding the above, either Party shall
          be entitled at all times and without delay to seek equitable relief.

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                                    ARTICLE 3
                             COLLABORATION RESEARCH

  3.1     Conduct of Research Program. The Parties hereby agree to conduct the
          Research Program in accordance with the terms of this Agreement with
          the goal of identifying one or more Small Molecules and/or one or more
          Large *****. The Parties shall conduct the studies outlined in the
          Research Plan, as set forth in attached Exhibit 1.

  3.2     Performance Standards. GENE shall *****. Amgen will *****. Each Party
          will conduct its activities under the Research Program in good
          scientific manner and in compliance in all material respects with
          applicable laws and regulations. Each Party will prepare and maintain
          complete and accurate written records with respect to its activities
          under the Research Plan consistent with industry standards including,
          for purposes of patent and regulatory matters, prompt signing and
          corroboration of laboratory notebooks and conception documents.

  3.3     Research Reports. Each Party will keep the other Party fully informed
          as to all discoveries and technical developments (including, without
          limitation, any inventions) made in the course of performing
          activities under the Research Program. In particular, prior to each
          JRC meeting GENE and Amgen each will prepare and distribute to all
          members of the JRC (no later than five (5) business days prior to each
          such JRC meeting) a reasonably detailed written summary report setting
          forth the results and progress of performance of the Research Program
          since the last report. The format and content of such report shall be
          determined by the JRC. The information contained in the report shall
          be accurate in the reporting Party's best scientific judgment.

  3.4     GENE Researchers. Amgen and GENE acknowledge the importance of having
          personnel suitably qualified and devoted full-time to work in the
          Research Program. Accordingly, in order to maximize the effective
          conduct of the Research Program, the Parties shall ***** of their
          respective researchers conducting the Research Program and GENE shall
          devote suitably qualified personnel to the Research Program who *****.

  3.5     Employee Obligations. Prior to beginning work on the Research Program
          and/or being given access to Confidential Information, each employee,
          consultant or agent of GENE and Amgen shall have signed or shall be
          required to sign a non-disclosure and invention assignment agreement
          pursuant to which each such person shall agree to comply with all of
          the obligations of GENE or Amgen under this Agreement, as appropriate,
          substantially including: (a) promptly reporting any invention,
          discovery, process or other intellectual property right; (b) assigning
          to GENE or Amgen, as appropriate, all of his or her right, title and
          interest in and to any such invention, discovery, process or other
          intellectual property right; (c) cooperating in the preparation,
          filing, prosecution, maintenance and enforcement of any patent rights;
          (d) performing all acts and signing, executing, acknowledging and
          delivering any and all papers, documents and instruments required for
          effecting the obligations and

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          purposes of this Agreement and (e) abiding by the obligations of
          confidentiality and non-use set forth in this Agreement. It is
          understood and agreed that any such non-disclosure and invention
          assignment agreement need not be specific to this Agreement. The
          Parties agree that each such employee, consultant or agent may sign
          the respective Party's standard form of non-disclosure and invention
          assignment agreement, provided that such standard form substantially
          contains the requirements set forth in subparts (a) to (e) above.

  3.6     Technical Assistance. In addition to other assistance explicitly set
          forth in this Agreement, during the term of this Agreement, GENE shall
          provide Amgen with reasonable technical assistance relating to the use
          of GENE Background Know-How, *****, GENE Program Know-How and Joint
          Know-How solely to the extent permitted under the license(s) granted
          to Amgen. In addition, during the term of this Agreement, GENE shall
          make its employees, consultants and agents reasonably available upon
          reasonable notice during normal business hours at GENE's facilities to
          consult with Amgen on issues relating to any aspect of the subject
          matter of this Agreement and in connection with any request from any
          Regulatory Authority, including those relating to regulatory,
          scientific and technical issues. If such consultation occurs after the
          completion of the Research Program, Amgen will pay GENE's reasonable
          costs in providing such consultation unless *****.

  3.7     Materials Transfer. In order to facilitate the Research Program,
          either Party may provide to the other Party certain materials,
          including, without limitation, biological materials, chemical
          compounds, screens, databases, animal models, cell lines, cells,
          nucleic acids, receptors and reagents (collectively, "Materials") for
          use by the other Party in furtherance of the Research Program. All
          such Materials delivered to the other Party shall remain the sole
          property of the supplying Party and, except to the extent permitted by
          applicable law and permitted by the licenses granted hereunder, shall
          be used only in furtherance of the Research Program in accordance with
          this Agreement and remain solely under the control of the other Party,
          shall not be used or delivered to or for the benefit of any Third
          Party without the prior written consent of the supplying Party, and
          shall not be used in research or testing involving human subjects.
          Except as expressly set forth in this Agreement (including, without
          limitation, Section 14.3), THE MATERIALS ARE PROVIDED "AS IS" AND
          WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING
          WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF
          FITNESS FOR ANY PARTICULAR PURPOSE.

  3.8     Materials for Subcontractors. Notwithstanding the previous paragraph,
          without the prior approval of GENE, Amgen may transfer Materials to
          any Third Party engaged as a subcontractor pursuant to Section 17.7;
          provided however, that any such subcontractor shall be bound by
          conditions of confidentiality and non-use at least equivalent to those
          herein, including that such Materials shall not be transferred to
          another Third Party and that any such unused Materials shall be
          returned or destroyed upon completion of the activity for which such
          Materials were provided, and that

                                       12

<PAGE>

          Amgen shall be responsible for the performance of each such
          subcontractor in fulfilling Amgen's obligation under the Research
          Plan.

                                    ARTICLE 4
                             DEVELOPMENT OF PRODUCTS

  4.1     Responsibility. Amgen shall have the sole right and responsibility for
          all aspects of Developing Products and obtaining regulatory approval
          of such Products in the Territory, including making all strategic and
          tactical decisions with respect thereto, undertaking all necessary
          Development and establishing the methods and means by which it
          performs such activities under this Agreement (including the
          management of permitted subcontractors, pursuant to Section 17.7), and
          shall ***** in doing so.

  4.2     Early Stage Contribution Option. Amgen shall promptly notify GENE in
          writing when it files the first IND for a Product, which notice will
          include a Development Plan for Early Stage Development together with
          Amgen's non-binding, ***** estimate, in ***** detail, of the
          Development Costs of such Development Plan. Within ***** days of
          GENE's receipt of such notice from Amgen, GENE shall notify Amgen in
          writing whether it elects to contribute to Early Development Costs for
          the first indication of that Product and if so, at what level (GENE's
          "Early Contribution Level"). GENE shall have the option to contribute
          ***** of such Early Development Costs. During such *****, and upon
          GENE's request, Amgen shall promptly provide GENE with an explanation
          in reasonable detail of the Development Plan *****. The Parties hereby
          agree that such Development Plan and estimate of such Development
          Costs as well as the explanation and information-providing obligations
          of Amgen set forth in this Section 4.2 are not subject to the dispute
          resolution mechanism set forth in Sections 2.4 and 2.5.

  4.3     Late Stage Contribution Option. Upon completion of Early Stage
          Development, and only if GENE *****, Amgen shall promptly notify GENE
          in writing that Amgen intends to commence Late Stage Development for
          such Product, which notice shall include a Development Plan for Late
          Stage Development together with Amgen's non-binding, ***** estimate,
          in ***** detail, of the Development Costs of such Development Plan.
          Within ***** days of GENE's receipt of such notice from Amgen, GENE
          shall notify Amgen in writing whether GENE elects to contribute to
          Late Development Costs for such indication and, if so, at what level
          (GENE's "Late Contribution Level"). *****. During such *****, and upon
          GENE's request, Amgen shall promptly provide GENE with an explanation
          in reasonable detail of the Development Plan *****. The Parties hereby
          agree that such Development Plan and estimate of such Development
          Costs as well as the explanation and information-providing obligations
          of Amgen set forth in this Section 4.3 are not subject to the dispute
          resolution mechanism set forth in Sections 2.4 and 2.5. *****.

  4.4     Differential Payment. *****

                                       13

<PAGE>

  4.5     Additional Indications.

          a.    Early Stage Contribution Option. After filing the first IND for
                a Product, Amgen may, at its sole discretion, file additional
                IND's for the same Product for additional indications. If GENE
                *****, on filing such an additional IND, Amgen shall notify GENE
                in writing of such filing, which notice will include a
                Development Plan for Early Stage Development for such indication
                together with Amgen's non-binding, ***** estimate, in *****
                detail, of the Development Costs of such Development Plan.
                Within ***** days of GENE's receipt of such notice from Amgen,
                GENE shall notify Amgen in writing whether it elects to
                contribute to Early Development Costs for the additional
                indication of that Product and if so, at what level. During such
                *****, and upon GENE's request, Amgen shall promptly provide
                GENE with an explanation in reasonable detail of the Development
                Plan *****. The Parties hereby agree that such Development Plan
                and estimate of such Development Costs as well as the
                explanation and information-providing obligations of Amgen set
                forth in this Section 4.5.a. are not subject to the dispute
                resolution mechanism set forth in Sections 2.4 and 2.5. GENE
                shall have the option to contribute to Early Stage Development
                for such additional indications at *****.

          b.    Late Stage Contribution Option. Upon completion of Early Stage
                Development for an additional indication for a Product, and only
                if GENE has elected to contribute to Early Development Costs for
                that indication and has not elected a ***** Late Contribution
                Level with respect to an earlier indication for such Product,
                Amgen shall promptly notify GENE in writing that Amgen intends
                to commence Late Stage Development for such indication, which
                notice shall include a Development Plan for Late Stage
                Development for such indication together with Amgen's
                non-binding, ***** estimate, in ***** detail, of the Development
                Costs of such Development Plan. Within ***** days of GENE's
                receipt of such notice from Amgen, GENE shall notify Amgen in
                writing whether GENE elects to contribute to Late Development
                Costs for such indication and, if so, at what level. During such
                *****, and upon GENE's request, Amgen shall promptly provide
                GENE with an explanation in reasonable detail of the Development
                Plan *****. The Parties hereby agree that such Development Plan
                and estimate of such Development Costs as well as the
                explanation and information-providing obligations of Amgen set
                forth in this Section 4.5.b. are not subject to the dispute
                resolution mechanism set forth in Sections 2.4 and 2.5. *****.

          c.    Calculation of Development Contribution Royalty. For the
                purposes of calculating the Development Contribution Royalty
                pursuant to Section 8.6.b in the case of multiple indications
                for a Product, the following shall apply:

                i.    *****

                      aa.   *****

                                       14

<PAGE>

                      ab.   *****

                      ac.   *****

                      ad.   *****

                      ae.   *****

                      af.   *****

                ii.   *****

                      aa.   *****

                      ab.   *****

                      ac.   *****

                      ad.   *****

                      ae.   *****

                iii.  *****

  *****                            *****                            *****
  *****                            *****                            *****
  *****                            *****                            *****
  *****                            *****                            *****
  *****                            *****                            *****
  *****                            *****                            *****
  *****                            *****                            *****

          d.    Formulations and Presentations. The Parties hereby agree that,
                for each indication of a Product, GENE's Early Contribution
                Level or Late Contribution Level, as the case may be, shall
                remain the same for any presentation or formulation of a Product
                containing the same Small Molecule or Large Molecule.

  4.6     Multiple Products Contribution. If more than one Product is developed,
          GENE shall have the option to contribute to Development Costs *****.

  4.7     Up-dating of Development Plan. If GENE contributes to Early
          Development Costs and/or Late Development Costs for a Product, Amgen
          shall (i) provide GENE with an update of the Development Plan for such
          Product ***** (which shall not be less than annually), together with
          Amgen's revised non-binding, ***** estimate of Development Costs and
          (ii) provide GENE, on an annual basis, with a written summary of all
          clinical data generated by Amgen with respect to Products.

                                       15

<PAGE>

  4.8     Sharing of Development Costs. All Development Costs incurred by Amgen
          and GENE *****. By way of example, should *****.

  4.9     Quarterly Reconciliation of Development Costs. Within ***** days
          following the end of each Calendar Quarter, Amgen shall submit to GENE
          a written report setting forth in reasonable detail its Development
          Costs for such Calendar Quarter. Within ***** days following the end
          of each Calendar Quarter, GENE shall submit to Amgen a written report
          setting forth in reasonable detail its Development Costs for such
          Calendar Quarter. Within ***** days following the end of each Calendar
          Quarter, Amgen shall submit to GENE a written report setting forth in
          reasonable detail the calculation of all Development Costs of both
          Parties and the calculation of the net amount owed by GENE to Amgen in
          order to ensure the appropriate sharing of Development Costs in
          accordance with the provisions of Section 4.8. The net amount payable
          shall be paid by GENE within ***** days after receipt of such written
          report.

          If, in any Calendar Year, the actual Development Costs for that
          Calendar Year are *****. The Early Contribution Level or Late
          Contribution Level, as the case may be, to be applied ***** shall be
          the Early Contribution Level or Late Contribution Level applicable at
          the time ***** Development Costs were incurred.

  4.10    Joint Development Committee. If GENE elects to contribute to Early
          Development Costs in accordance with Section 4.2 above, a U.S. and/or
          Canadian Joint Development Committee (the "JDC") comprised of *****
          representatives each of Amgen and GENE, including at least one
          marketing representative, shall be formed. Amgen shall appoint the
          chair of this committee and the *****. The purpose of the JDC is to
          inform GENE of the progress of Development and to enable GENE to
          comment on Amgen's intended Development program. Notwithstanding the
          above, Amgen shall, however, retain full right and responsibility for
          all aspects of Development as set forth in Section 4.1. If and when
          GENE elects not to contribute to Development Costs pursuant to
          Sections 4.2, 4.3 or 4.5 above, the JDC shall be disbanded. The JDC
          shall meet once every Calendar Quarter on reasonable written notice,
          in person or by teleconference, or as otherwise mutually agreed by the
          JDC. *****.

                                    ARTICLE 5
                                   REGULATORY

  5.1     Ownership. Amgen shall own all Regulatory Filings and Regulatory
          Approvals.

  5.2     Responsibility. Amgen shall have the sole right to monitor, review and
          direct all aspects of regulatory matters regarding Products in the
          Territory, including making all strategic and tactical decisions with
          respect thereto and establishing the methods and means by which it
          performs such activities (including the management of permitted
          subcontractors, pursuant to Section 17.7). Amgen shall have sole
          responsibility for

                                       16

<PAGE>

          (a) the filing of Regulatory Filings and the seeking of Regulatory
          Approvals, as well as all associated official correspondence and
          communications with Regulatory Authorities regarding such matters and
          (b) reporting to Regulatory Authorities any adverse experience and
          safety issues for such Product in compliance with the requirements of
          the U.S. Food, Drug and Cosmetic Act, 21 USC Section321 et seq., the
          Public Health Service Act, 42 USC Section201 et seq., the regulations
          promulgated thereunder, and the equivalent laws, rules and regulations
          in the Territory and, if GENE elects to Co-Detail pursuant to Section
          6.3, promptly thereafter provide GENE with a copy of such report.
          Notwithstanding the foregoing, following the first Regulatory Filing,
          Amgen shall promptly prepare and provide to GENE with respect to each
          Product a Regulatory Plan, which shall be updated as necessary on at
          least an annual basis.

  5.3     Adverse Event Reporting. Amgen shall maintain a record of all
          non-medical and medical product-related complaints and reports of
          adverse events that it receives with respect to any Product. If GENE
          elects to Co-Detail pursuant to Section 6.3, each Party will notify
          the other Party of any complaint received by it with respect to any
          Product and, within ten (10) days (but, in the event of serious
          adverse events, five (5) days) of the initial receipt, provide the
          other Party with a copy of such complaint(s) and adverse event
          reports.

                                    ARTICLE 6
                                COMMERCIALIZATION

  6.1     Responsibility. Subject only to GENE's right to Co-Detail in the USA
          and/or Canada, Amgen shall have the sole right and responsibility for
          all aspects of Commercializing Products in the Territory, including
          making all strategic and tactical decisions with respect thereto,
          including the appointment of sub-licensees, distributors and agents,
          and establishing the methods and means by which it performs such
          activities under this Agreement (including the management of permitted
          subcontractors, pursuant to Section 17.7), and shall ***** in doing
          so.

  6.2     Profit Sharing Option. If GENE *****, Amgen shall promptly provide
          written notice to GENE of Amgen's filing of a first Drug Approval
          Application for such Product in the United States or Canada, which
          notice shall include the Commercialization Plan for the United States
          and Canada together with Amgen's non-binding, ***** estimate, in *****
          detail, of the Product Contribution for that Commercialization Plan.
          Within ***** of GENE's receipt of such notice from Amgen, GENE may
          elect to share profits (and losses) in the United States and/or Canada
          pursuant to Section 6.6 below in lieu of receiving any royalty
          payments in those countries, by providing written notice thereof to
          Amgen. During such *****, and upon GENE's request, Amgen shall
          promptly provide GENE with an explanation in reasonable detail of the
          Commercialization Plan *****. The Parties hereby agree that such
          Commercialization Plan and estimate of such Product Contribution as
          well as the explanation and information-providing obligations of Amgen
          set forth in this

                                       17

<PAGE>

          Section 6.2 are not subject to the dispute resolution mechanism set
          forth in Sections 2.4 and 2.5.

  6.3     Co-Detailing Option. If GENE*****, If GENE elects to Co-Detail a
          Product in the United States and/or Canada, a Joint Sales and
          Marketing Committee (the "JSMC") comprised of ***** representatives
          each of Amgen and GENE shall be formed. Amgen shall appoint the chair
          of this committee and the chair shall have the casting vote in all
          matters where there is a disagreement between the Parties. The purpose
          of the JSMC is *****. Notwithstanding the above, Amgen shall, however,
          retain full right and responsibility for all aspects of
          Commercialization as set forth in Section 6.1. The JSMC shall meet
          ***** on reasonable written notice in person or by teleconference, or
          as otherwise mutually agreed by the JSMC. *****.

  6.4     Co-Detailing Rights. GENE shall be responsible for ensuring that its
          Representatives Detail a Product in a manner consistent with the
          decisions of the JSMC. The number of Representatives that GENE may
          employ in Co-Detailing shall be determined *****. All such GENE
          Representatives shall be full-time employees of GENE. *****. For the
          purposes of this Section 6.4, *****. If a Product is Developed for
          multiple indications, *****.

  6.5     Up-dating of Commercialization Plan. If GENE elects to share profits
          pursuant to Section 6.2, Amgen shall provide GENE with an update of
          the Commercialization Plan for Canada and/or the United States *****,
          at least once per Calendar Year, together with Amgen's non-binding,
          good faith estimate, in ***** detail, of the Product Contribution for
          that Commercialization Plan.

  6.6     Product Contribution.

          a.    The Parties shall *****:

                (A) GENE shall be allocated a percentage of the Product
                Contribution from sales of Products for the United States and/or
                Canada (as appropriate) *****:

                *****

                *****

          b.    In the event that Losses are incurred in any legal proceeding
                not subject to Sections 13.1 or 13.2 alleging personal injury
                resulting from or arising in connection with the Development,
                manufacture or Commercialization for the United States and
                Canada (as appropriate) of Product, such Losses shall be treated
                as a Commercialization Expense. Notwithstanding the foregoing,
                *****.

          c.    In the event that GENE's share of the cumulative Product
                Contribution losses for a given Product exceed US$*****, GENE
                may, at its sole discretion, by providing written notice to
                Amgen, *****. Notwithstanding the above, GENE

                                       18

<PAGE>

                shall not be excused from its obligation to pay its share of any
                Product Contribution *****.

          d.    Any Commercialization Expenses incurred prior to Regulatory
                Approval of a Product shall be charged to the Product
                Contribution and be borne by the Parties on the same basis.

  6.7     Calculation and Duration of Product Contribution. The Product
          Contribution shall be payable in respect of sales for the United
          States and/or Canada as appropriate, on a country-by-country and
          Product-by-Product basis, for so long as there are sales by Amgen, its
          Affiliates or sublicensees of each such Product in that country. The
          Product Contribution shall be *****.

  6.8     Quarterly Reconciliation of Product Contribution. If GENE elects to
          Co-Detail as set forth in Section 6.3 within ***** days following the
          end of the second month of each Calendar Quarter, GENE shall submit to
          Amgen a written calculation of its actual Detailing Costs for the
          first two months of such Calendar Quarter, calculated according to
          Exhibit Y, together with (i) its best estimate of the Detailing Costs
          it expects to incur in the third month of such Calendar Quarter and
          (ii) the actual Detailing Costs (calculated according to Exhibit Y)
          incurred during the third month of the preceding Calendar Quarter (for
          which GENE has previously provided its best estimate), for the United
          States and/or Canada as appropriate. Within ***** days following the
          end of each Calendar Quarter, Amgen shall submit to GENE a written
          report setting forth the calculation of total Product Contribution,
          calculated as set forth in Exhibit X, for each Product in the United
          States and/or Canada as appropriate for that Calendar Quarter and the
          calculation of any net amount owed by Amgen to GENE or by GENE to
          Amgen. With respect to GENE's Detailing Costs, Amgen shall base such
          calculation on the actual Detailing Costs submitted by GENE for the
          first two months of such Calendar Quarter, together with (i) GENE's
          best estimate of the Detailing Costs for the third month of such
          Calendar Quarter and (ii) any adjustment (positive or negative)
          required as a consequence of any difference between GENE's best
          estimate of the Detailing Costs for the third month of the previous
          Calendar Quarter and GENE's actual Detailing Costs for the same
          period. Amgen shall pay GENE the net amount owed by Amgen to GENE or
          GENE shall pay Amgen the net amount owed by GENE to Amgen, as the case
          may be, within ***** of issuance of such report.

          If in any Calendar Year Amgen's ***** estimate of Product Contribution
          is a *****, and the actual Product Contribution in such Calendar Year
          is a ***** that is *****, GENE may delay payment of its share of any
          such ***** estimate ***** until the subsequent Calendar Year. If in
          any Calendar Year Amgen's *****, GENE may delay payment of its share
          of any ***** until the subsequent Calendar Year. Such delayed payments
          shall be paid within ***** days of receipt of Amgen's calculation of
          the Product Contribution for the last Calendar Quarter of the Calendar
          Year in which ***** occurs.

                                       19

<PAGE>

  6.9     Negotiation of Profit Sharing as a Royalty Calculation. The Parties
          hereby agree to negotiate in good faith sufficiently in advance of the
          first filing of a Drug Approval Application in the United States or
          Canada of a Product for which GENE may elect to Co-Detail pursuant to
          Section 6.3, an equitable way to calculate profit sharing as a royalty
          payment by Amgen to GENE.

                                    ARTICLE 7
                             MANUFACTURE AND SUPPLY

  7.1     Supply of Product. Amgen shall have the sole right and responsibility
          for all aspects of manufacturing Products, including making all
          strategic and tactical decisions with respect thereto and establishing
          the methods and means by which it performs such activities (including
          the management of permitted subcontractors, pursuant to Section 17.7).

                                    ARTICLE 8
                              PAYMENTS AND FUNDING

  8.1     Upfront Fee. Within five (5) business days following the Effective
          Date, Amgen will pay to GENE a non-refundable, non-creditable fee of
          US$***** by wire transfer of immediately available funds to such bank
          account as may be designated in writing by GENE to Amgen.

  8.2     Research Funding. Amgen will fund and GENE will conduct the Research
          Program at the following effort levels: ***** during the first
          Contract Year of the Research Program, ***** during the second
          Contract Year of the Research Program and three ***** per Contract
          Year thereafter for a maximum of three additional Contract Years or
          until the initiation of pre-clinical toxicology on a clinical
          candidate, whichever is earlier. The JRC may ***** in order to more
          rapidly progress the Research Program. Such request shall be made in
          writing and shall state *****, the reason for such request and *****.

  8.3     Payment of Research Funding. Promptly after the Effective Date, and on
          the first day of each subsequent Calendar Quarter, GENE shall notify
          Amgen in writing of the number of FTE's required by GENE to undertake
          its obligations under the Research Plan for the next Calendar Quarter.
          Amgen will pay GENE within ***** days of such notification the FTE
          Costs of such FTE's; provided however, Amgen shall not be obligated to
          pay, in any given Contract Year, for more than the number of FTE's
          agreed to for any such Contract Year (plus any additional FTE's
          approved by Amgen and GENE pursuant to Section 8.2). GENE shall ensure
          that all such FTEs are fully engaged in the Research Program and to
          such end, GENE shall deliver written reports ***** to Amgen within
          ***** days after each Calendar Quarter, setting forth the number of
          FTEs actually devoted by GENE to Research Program activities and a
          summary of all such FTE-funded activities during such period. To the
          extent that, in any Calendar Quarter, the number of GENE FTEs actually
          engaged in the Research Program ("Actual FTEs") is less than the
          number that GENE has notified Amgen will

                                       20

<PAGE>

          be required for that Calendar Quarter ("Expected FTEs") Amgen shall
          have the right to deduct the balance of the FTE Costs of Expected FTEs
          less the FTE Costs of Actual FTEs from any payments for FTE Costs due
          to GENE in subsequent Calendar Quarters until such balance is zero;
          provided however, that GENE shall promptly remit to Amgen any balance
          outstanding upon expiration of the Research Program.

  8.4     Research Milestones. Amgen shall pay to GENE the following one-time,
          non-refundable, non-creditable payments via wire transfer to an
          account designated by GENE within ***** days following the achievement
          of the below-identified research milestones as determined by the JRC
          in accordance with Sections 2.2-2.4:

          a.    *****. Payment of ***** upon identification of the *****, i.e.,
                the achievement of each of the following: *****

          b.    ***** Functional Validation. Payment of ***** upon either (a)
                ***** (to be determined by the JRC).

          c.    ***** Validation. Payment of *****

  8.5     Clinical Milestones.

          a.    With respect to a first Product, Amgen shall pay to GENE the
                following one-time, non-refundable, non-creditable payments via
                wire transfer to an account designated by GENE within ***** days
                following the achievement by Amgen, its Affiliates or
                sublicensees, of each of the clinical milestones set forth
                below:

                        MILESTONE EVENT               MILESTONE PAYMENT

  *****                                                   US$*****
  *****                                                   US$*****
  *****                                                   US$*****
  *****                                                   US$*****
  *****                                                   US$*****
  Total                                                   US$

          b.    If the first Product to obtain approval by a Regulatory
                Authority of a Drug Approval Application is a ***** via wire
                transfer to an account designated by GENE within ***** days
                following the achievement by Amgen, its Affiliates or
                sublicensees, of each of the clinical milestones set forth
                below:

                        MILESTONE EVENT               MILESTONE PAYMENT

  *****                                                   US$*****
  *****                                                   US$*****
  Total                                                   US$

                                       21

<PAGE>

          c.    Amgen shall provide GENE with prompt written notice upon its
                achievement of each of the milestones set forth in this Section
                8.5. In the event that, notwithstanding the fact that Amgen has
                not given any such notice, GENE reasonably believes any such
                milestone payment is due, it shall so notify Amgen and members
                of the JSC in writing, *****. Any negative determination shall
                be accompanied by a detailed explanation of the reasons
                therefore.

  8.6     Global Royalty Rates. Amgen shall pay to GENE *****. If GENE *****. In
          addition, Net Sales of a Product beyond the Royalty Term of such
          Product in a country *****.

          a.    Baseline Royalty. During the Royalty Term of each Product, the
                Baseline Royalty shall be paid at the following rates:

                i.    *****;

                ii.   *****;

                iii.  *****; and

                iv.   *****.

          b.    Development Contribution Royalty. If GENE has elected to
                contribute to Development Costs for a Product, Amgen shall pay
                to GENE, from the date of First Commercial Sale of such Product
                until such Product is no longer sold, an additional royalty on
                annual Net Sales in the Territory ("Development Contribution
                Royalty") based on GENE's Early Contribution Level and Late
                Contribution Level, as set forth below:

          GENE'S EARLY           GENE'S LATE            DEVELOPMENT CONTRIBUTION
          CONTRIBUTION LEVEL     CONTRIBUTION LEVEL     ROYALTY

  i               *****                  *****                         *****
  ii              *****                  *****                         *****
  iii             *****                  *****                         *****
  iv              *****                  *****                         *****
  v               *****                  *****                         *****
  vi              *****                  *****                         *****
  vii             *****                  *****                         *****
  viii            *****                  *****                         *****
  ix              *****                  *****                         *****
  x               *****                  *****                         *****
  xi              *****                  *****                         *****
  xii             *****                  *****                         *****

  *****

                                       22

<PAGE>

  8.7     Anti-Stacking Royalty Reduction. If, in Amgen's reasonable opinion,
          Amgen is required to enter into any agreement with Third Parties for
          rights under patents for which but for a license the sale, manufacture
          or use of any Product by Amgen, its Affiliates and sublicensees would
          infringe one or more claims of said licensed patent(s), ***** by
          Amgen, its Affiliates or sublicensees *****, Amgen shall provide
          written notice thereof to GENE, *****. With respect to any formulation
          or presentation of such Product which, but for such license would
          infringe such Third Party patent(s), GENE's Baseline Royalty with
          respect to such formulation or presentation shall *****. With respect
          to any formulation or presentation of such Product which, but for such
          license would infringe such Third Party patent(s), Amgen shall *****.
          *****. If GENE ***** (pursuant to Sections 4.2, 4.3 and 4.5) *****
          (pursuant to Section 6.2), *****.

  8.8     Cross License. In the event that Amgen shall determine in its sole
          discretion that it is necessary to grant a sublicense, or a covenant
          not to sue under *****, to any Third Party in a country in the
          Territory in order for Amgen to make, have made, use, sell, lease,
          offer to sell or lease, import, export (within the Territory) or
          otherwise exploit, or transfer physical possession of or title in,
          Product(s) in the Field of Use in a country in the Territory, Amgen
          shall have the exclusive right and discretion to grant such sublicense
          or covenant not to sue to such Third Party for such country. For
          purposes of this Section 8.8, the determination of Net Sales of said
          Product for purposes of calculating the royalties otherwise payable by
          Amgen to GENE under Section 8.6 shall not include sales of any Product
          by such Third Party receiving such sublicense or such a covenant not
          to sue. If, as part of any sublicense or covenant not to sue, Amgen
          receives payments then such payments shall be included within the
          definition of Net Sales and the royalty rates as set forth in Section
          8.6 shall be applied.

  8.9     Equity Investment. Subject to the terms and conditions set forth below
          and in that certain stock purchase agreement executed on the same date
          herewith ("Stock Purchase Agreement"), GENE may, at its sole
          discretion, sell a certain number of shares of GENE's Common Stock to
          Amgen within ***** days following the achievement of certain
          milestones as set forth below, all as more fully described in the
          Stock Purchase Agreement. If GENE decides not to sell equity to Amgen
          at the time that any particular milestone set forth below is achieved,
          then Amgen shall have no further obligation to acquire the stock at a
          later date or of any other form of payment to GENE with respect to
          that particular milestone. The Parties acknowledge and agree that at
          no time shall Amgen's equity interest in ***** of the outstanding
          shares of GENE common stock. If the requirement to purchase stock in
          accordance with any one of the milestones set forth below would result
          in Amgen acquiring an equity interest equal to ***** or greater,
          Amgen's obligation to purchase such stock shall be limited to that
          amount of stock that would result in the cumulative purchase of an
          equity interest of ***** of outstanding shares in GENE's common stock,
          and Amgen shall have no further obligation to purchase additional
          stock at a later date or of any other form of payment to GENE with
          respect to that particular milestone. A copy of the Stock Purchase
          Agreement, in the form to be executed and delivered by each of Amgen
          and GENE on the Effective Date, is attached hereto as Exhibit Z.

                                       23

<PAGE>

                     MILESTONE                             PURCHASE PRICE

         *****                                  *****
         *****                                  *****
         *****                                  *****

  8.10    Paid-Up License. Upon the expiration of Amgen's obligation under this
          Article 8 to pay royalties on Net Sales of a Product in a country,
          Amgen shall have a fully paid-up, non-exclusive license, with the
          right to sublicense, to make, have made, use, sell, lease, offer to
          sell or lease, import, export or otherwise exploit, transfer physical
          possession of or otherwise transfer title in such Product in the Field
          of Use in that country.

  8.11    No Other Compensation. Other than as explicitly set forth (and as
          applicable) in this Article 8, and in Sections 3.6, 6.8, 10.5, 13.1
          and 16.5, Amgen shall not be obligated to pay any additional fees,
          milestone payments, royalties or any additional payments to GENE under
          this Agreement.

                                    ARTICLE 9
                              INTELLECTUAL PROPERTY

  9.1     Ownership of Inventions. Ownership of inventions shall be determined
          in accordance with the rules of inventorship under United States
          patent laws. Subject to the licenses granted in Section 9.2(a) below,
          as between the Parties, Amgen shall own all right, title and interest
          in and to Amgen Technology, and any Confidential Information contained
          therein shall be considered the Confidential Information of Amgen.
          Subject to the licenses granted in Section 9.2(b) below, as between
          the Parties, GENE shall own all right, title and interest in and to
          GENE Technology, and any Confidential Information contained therein
          shall be considered the Confidential Information of GENE. All right,
          title and interest in and to Joint Know-How (which shall be considered
          the joint Confidential Information of the Parties) and Joint Patent
          Rights shall be owned, as between the Parties, jointly by GENE and
          Amgen. Other than with respect to the rights and licenses granted
          under this Agreement to Joint Know-How, each Party shall have the
          unrestricted, royalty-free, worldwide right to make, have made, use,
          sell, lease, offer to sell or lease, import, export or otherwise
          exploit, or transfer physical possession of or title in Joint
          Know-How, without accounting. All right and interest in and to Product
          Trademarks shall be owned by Amgen, and any Confidential Information
          related thereto shall be considered the Confidential Information of
          Amgen.

  9.2     Patent Licenses.

                                       24

<PAGE>

          a.    Amgen hereby grants to GENE a non-exclusive, royalty-free
                license, without the right to sublicense, under the Amgen
                Technology solely to perform GENE's responsibilities under the
                Research Plan and, subject to GENE's election in accordance with
                Section 6.3, to Co-Detail Products in the U.S. and/or Canada.

          b.    GENE hereby grants to Amgen an exclusive (subject to GENE's
                option to Co-Detail in the U.S. and Canada as set forth in
                Section 6.3), royalty-bearing license, with a right to
                sublicense, under the *****, GENE Program Patent Rights related
                to the Research Field, GENE Program Know-How related to the
                Research Field, and GENE's interest in Joint Patent Rights and
                Joint Know-How, and a non-exclusive, royalty-free license, with
                a right to sublicense, under GENE Background Patent Rights and
                GENE Background Know-How to make, have made, use, sell, offer to
                sell, import, export or otherwise transfer physical possession
                of or otherwise transfer title in Products in the Field of Use
                in the Territory. Amgen hereby agrees that any sublicensee shall
                as a condition of such sublicense agree to be bound by the terms
                and conditions of this Agreement.

          c.    The Parties agree that GENE shall have the sole right to
                commercialize the ***** for any and all diagnostic uses other
                than diagnostic uses directed to Products ("Diagnostic Uses")
                only upon the prior written approval of Amgen, which may be
                withheld if in Amgen's sole opinion the commercialization of
                such Diagnostic Uses would be detrimental to the Development or
                Commercialization of any Product, and retain any financial
                benefit realized in connection with such commercialization. Upon
                GENE's receipt of such written approval, Amgen shall be deemed
                to have granted to GENE an *****, under the Amgen Program Patent
                Rights related to the Research Field and Amgen's interest in
                Joint Patent Rights to commercialize such Diagnostic Uses.
                Notwithstanding the above, the parties hereby agree that Amgen,
                its Affiliates and sublicensees have the right to develop
                Diagnostic Uses for the purposes of conducting human clinical
                trials and obtaining Regulatory Approvals of any Product.

  9.3     Other Intellectual Property Licenses.

          a.    Amgen hereby grants to GENE a ***** license under Amgen's entire
                right, title and interest in any copyrights and any other
                intellectual property rights in promotional materials relating
                to Products, *****, to distribute copies of and publicly perform
                and display such promotional materials in connection with
                Products in the United States and Canada solely in compliance
                with the terms and conditions of this Agreement.

  9.4     Patent Prosecution.

          a.    Amgen shall have the first right (using mutually acceptable
                outside counsel), but not the obligation, for the preparation,
                filing, prosecution, maintenance and defense before all patent
                offices (and courts to the extent an appeal is taken from a
                patent office decision) of ***** and Joint Patent Rights at
                Amgen's expense.

                                       25

<PAGE>

                Amgen shall have the sole right, but not the obligation, to
                prepare, file, prosecute, maintain and defend before all patent
                offices all Amgen Background Patent Rights and Amgen Program
                Patent Rights not related to the Research Field at Amgen's
                expense. GENE shall have the sole right, but not the obligation,
                to prepare, file, prosecute, maintain and defend before all
                patent offices all GENE Background Patent Rights and GENE
                Program Patent Rights not related to the Research Field at
                GENE's expense.

          b.    With respect to its activities pursuant to Section 9.4.a., Amgen
                shall instruct such outside counsel in writing to act in the
                best interests of both Parties under this Agreement and Amgen
                will keep GENE informed of the progress with regard to the
                preparation, filing, prosecution, maintenance and defense before
                all patent offices (and courts to the extent an appeal is taken
                from a patent office decision) of ***** and Joint Patent Rights
                and instruct such outside counsel to furnish to GENE copies of
                all relevant documents filed with the various patent offices
                around the world. GENE shall have the right to review and
                comment on any papers pertaining to proposed applications,
                responses, interferences and oppositions before the filing
                thereof by such outside counsel with any such patent office and
                Amgen will instruct such outside counsel to timely provide such
                papers and consider in good faith such comments of GENE relating
                to ***** and Joint Patent Rights.

          c.    GENE shall cooperate with Amgen and such outside counsel and
                render all reasonable assistance in filing, prosecuting,
                maintaining and defending all intellectual property licensed
                under this Agreement and shall sign any necessary legal papers
                and provide such outside counsel with data or other information
                in GENE's Control which is reasonably requested by Amgen in
                support thereof (and use its reasonable best efforts to ensure
                the cooperation of any of its employees, consultants and agents
                as might reasonably be requested).

          d.    If Amgen determines in its sole discretion not to file,
                prosecute, defend or maintain any Patent Right within ***** and
                Joint Patent Rights referred to in Section 9.4.a. above in any
                country, and further providing that no other patent applications
                or patents claiming the same or similar subject matter are then
                pending or issued in that same country, then Amgen shall provide
                GENE with thirty (30) days prior written notice of such
                determination and GENE shall have the right and opportunity to
                file, prosecute, defend and/or maintain such Patent Right on
                behalf of the Parties at GENE's expense.

  9.5     Trademark Prosecution. Amgen shall be responsible (using mutually
          acceptable outside counsel) for the filing, prosecution, defense and
          maintenance before all trademark offices of the Product Trademarks at
          Amgen's expense.

  9.6     Patent and Trademark Prosecution Expenses. With respect to carrying
          out the activities under Sections 9.4 and 9.5, Amgen shall have the
          right to charge all of Amgen's external costs, expenses and fees (as
          documented by written invoices for

                                       26

<PAGE>

          legal services and receipts for filing, maintenance and other fees
          paid) to have outside counsel prepare, file, prosecute, maintain
          and/or defend *****, Joint Patent Rights, Amgen Background Patent
          Rights related to Products and Product Trademarks before all patent
          and trademark offices (and courts to the extent an appeal is taken
          from a patent office decision) as a Development Cost if incurred
          during Development and, if GENE elects to share profits pursuant to
          Section 6.2, to the extent such costs, expenses and fees pertain to
          such activities in the U.S. and/or Canada (as appropriate) as a
          Commercialization Expense.

  9.7     Patent Infringement by Third Parties.

          a.    GENE and Amgen will promptly notify the other in writing after
                becoming aware of any alleged or threatened infringement of any
                patent included in ***** and Joint Patent Rights or any right
                relating to ***** and Joint Know-How.

          b.    By counsel of its own choice, Amgen shall have the sole right
                but not the obligation to bring, defend, control and maintain
                (including the right to settle or compromise) any suit or action
                against a Third Party for infringement or declaratory relief of
                a claim of an issued patent within *****, Joint Patent Rights
                and Amgen Background Patent Rights and any right relating to
                ***** and Joint Know-How. In the event Amgen shall so engage in
                any such litigation, Amgen shall seek and reasonably consider
                GENE's comment before determining the strategy with respect to
                any such litigation. GENE shall cooperate and, if Amgen finds it
                necessary or desirable, join Amgen as a party in any such
                litigation (at Amgen's expense with respect to external costs
                and expenses incurred by GENE), including the signing of any
                necessary legal papers, and shall provide Amgen with data or
                other information in support thereof, and shall use reasonable
                best efforts to ensure the cooperation of any of its personnel
                as might reasonably be requested in any such matters.
                Notwithstanding the above, in any such settlement or compromise
                of any such litigation, Amgen will not admit the invalidity of
                any claim within ***** and Joint Patent Rights without the prior
                written approval of GENE, which approval shall not be
                unreasonably withheld or delayed.

          c.    Without the prior written approval of Amgen, GENE shall not
                bring any suit or action against a Third Party developing or
                commercializing any product which interacts with *****.

  9.8     Trademark Infringement by Third Parties. At its own expense and by
          counsel of its own choice, Amgen shall have the sole right but not the
          obligation to enforce the Product Trademarks against any actual,
          alleged or threatened infringement by Third Parties or from any unfair
          trade practices, trade dress imitation, passing off of counterfeit
          goods or like offenses. GENE shall cooperate in any such enforcement
          or defense and shall use reasonable best efforts to ensure the
          cooperation of any of its personnel as might reasonably be requested
          in any such matters.

  9.9     Infringement of Third Party Rights.

                                       27

<PAGE>

          a.    Each Party will promptly notify the other in writing of any
                allegation by a Third Party that the activity of either of the
                Parties pursuant to this Agreement infringes or may infringe the
                intellectual property rights of such Third Party.

          b.    Amgen shall have the sole right and responsibility to defend any
                actual, alleged or threatened claim or action which names Amgen
                and/or GENE and which claims the infringement of (i) Third Party
                Patent Rights or other intellectual property rights through the
                making, having made, using, selling, offering to sell, importing
                exporting or otherwise transferring physical possession of or
                otherwise transferring title in a Product or (ii) any Third
                Party trade name, service mark, logo or trademark by the use of
                Product Trademark(s). In the event that GENE is a named Party in
                any such defense, Amgen shall seek and reasonably consider
                GENE's comment before determining the strategy of such defense.
                If necessary, GENE will assist and cooperate with Amgen in any
                such defense (at Amgen's expense with respect to external costs
                and expenses incurred by GENE).

  9.10    Infringement Expenses. Amgen, in bringing or defending a suit against
          infringers under Sections 9.7 and 9.8 and defending a suit pursuant to
          Section 9.9, shall be entitled to charge all external costs, fees and
          expenses (including attorneys' fees of outside counsel) incurred by
          such Party to carry out the activities described in Sections 9.7-9.9
          as a Development Cost if incurred during Development and, if GENE
          elects to share profits pursuant to Section 6.2, to the extent such
          costs, expenses and fees pertain to such activities in the U.S. and/or
          Canada (as appropriate) as a Commercialization Expense. Each Party
          shall bear its own internal costs and expenses incurred in carrying
          out the activities described in Sections 9.7-9.9. *****

  9.11    Third Party Licenses. Amgen shall have final decision making authority
          with respect to determining whether to enter into any agreement it (in
          its sole discretion) deems necessary for a license or other rights or
          to incur an obligation for any Third Party payments for a license to
          any Third Party of Patent Rights and other intellectual property
          rights necessary or useful to make, have made, use, sell, offer to
          sell, import, export or otherwise transfer physical possession of or
          otherwise transfer title in Products in the Field of Use in the
          Territory.

  9.12    Waiver. GENE, on behalf of itself and its directors, employees,
          officers, shareholders, agents, successors and assigns hereby waives
          any and all actions and causes of action, claims and demands
          whatsoever, in law or equity, of any kind it or they may have against
          Amgen, its directors, employees, officers, shareholders, agents,
          successors and assigns which may arise in any way in the performance
          of its rights or obligations under Sections 9.4, 9.5, 9.7, 9.8 and
          9.9, except as a result of Amgen's gross negligence, recklessness or
          willful misconduct.

                                       28

<PAGE>

                                   ARTICLE 10
                            PAYMENTS; RECORDS; AUDIT

  10.1    Payment; Reports. Beginning with ***** the First Commercial Sale of
          the first Product occurs until the expiration of Amgen's obligation to
          pay royalties, royalty payments and reports of the sale of Products
          for each ***** will be calculated and delivered to GENE under this
          Agreement within ***** days of the end of each such *****, unless
          otherwise specifically provided herein. Each payment of royalties will
          be made by wire transfer of immediately available funds to such bank
          account as may be designated in writing by GENE to Amgen and followed
          up with a report of Net Sales of Products in sufficient detail to
          permit confirmation of the accuracy of the royalty payment made,
          including, without limitation and on a country-by-country basis, the
          number of Products sold, the gross sales and Net Sales of Products,
          the royalties payable (in U.S. dollars), the method used to calculate
          the royalty and the exchange rates used. Amgen will keep complete and
          accurate records pertaining to the sale or other disposition of
          Products in sufficient detail to permit GENE to confirm the accuracy
          of all payments due hereunder.

  10.2    Exchange Rate. All payments hereunder will be payable in U.S. dollars.
          With respect to each *****, for countries other than the United
          States, whenever conversion of payments from any foreign currency will
          be required, such conversion will be made at the rate of exchange at
          the close of business on the 25th day (or the next business day
          thereafter) of each month in the ***** (or such other day as Amgen
          subsequently uses in consolidating its corporate accounts) for that
          particular month's Net Sales, as reported in Bloomberg Professional (a
          service of Bloomberg L.P.), or in the event Bloomberg Professional is
          not available then The Wall Street Journal, for the currency of the
          country in which the sale is made.

  10.3    Tax Withholding. If laws, rules or regulations require withholding of
          income taxes or other taxes, assessments and/or imposed upon payments
          set forth in Article 8, Amgen will make such withholding payments as
          required and will subtract such withholding payments from the payments
          set forth in Article 8. Amgen will promptly submit proof of payment of
          the withholding taxes to GENE in a form sufficient to permit GENE to
          document such tax withholding for purposes of claiming foreign tax
          credits and similar benefits.

  10.4    Blocked Currency. With respect to receipt of a foreign currency for
          sales of Products, if Amgen or its Affiliates are unable to convert
          such foreign currency into United States Dollars for reasons beyond
          their respective control, or are restricted by law or regulation from
          remitting funds from any country of sale, Amgen shall promptly notify
          GENE and cause such payment to be made by deposit to the credit and
          account of GENE (or their respective nominee(s)) in any commercial
          bank designated by GENE in the applicable country or if none is
          designated by GENE within thirty (30) days of such notice from Amgen,
          in a recognized banking institution selected by Amgen and identified
          in a written notice to GENE. Amgen shall promptly deliver to GENE
          proper evidence of such deposit.

                                       29

<PAGE>

  10.5    Audits. Each Party will keep complete and accurate records pertaining
          to, with respect to Amgen, (i) the sale or other disposition of
          Products including payments pursuant to the Product Contribution, (ii)
          Development Costs and (iii) Detailing Costs, and with respect to GENE,
          (i) the number of FTEs actually engaged in activities under the
          Research Program, (ii) Development Costs and (iii) Detailing Costs, in
          each case in sufficient detail to permit the other Party to confirm
          the accuracy of all payments due hereunder, and such records will be
          open to inspection for ***** years following the end of the period to
          which they pertain. Not more than once per year, each Party will have
          the right, upon at least ***** business days' prior written notice, to
          cause an independent, certified public accountant reasonably
          acceptable to the other Party to audit such records to confirm such
          payments and associated costs therewith for a period covering not more
          than the preceding ***** years, such audit to be conducted during
          normal working hours on any business day. Such audit may take place no
          more than ***** during usual business hours for the sole purpose of
          and only to the extent necessary to verify the completeness and
          accuracy of the records and payments made under this Agreement. The
          independent certified public accountant(s) shall keep confidential any
          information obtained during such inspection and shall report to the
          Party conducting the audit (the "Auditing Party") only the amount of
          payment due and payable related to the subject matter of the audit,
          but may include, in the event the accountant shall be unable to verify
          the correctness of any or all of such payment, the unverifiable amount
          of such payment and information relating to why any or all of such
          payment is unverifiable. The Party being audited (the "Audited Party")
          shall receive a copy of each such report concurrently with receipt by
          the Auditing Party. The Auditing Party shall pay the fees and expenses
          of the accountant engaged to perform the audit, unless such audit
          reveals a net discrepancy of ***** or more for the period examined
          which is to the disadvantage of the Auditing Party, in which case the
          Audited Party shall pay such fees and expenses and any other payment
          due within thirty (30) days following the completion of such audit;
          provided however, that any estimates of revenues, costs, fees or
          expenses later reconciled to actuals shall not count toward such
          discrepancy. Upon the expiration of ***** years following the end of
          any particular Calendar Year, the calculation of any such amounts
          payable with respect to such particular Calendar Year shall be binding
          and conclusive upon the Auditing Party, and the Audited Party (and its
          Affiliates in the case of Amgen) shall be released from any liability
          or accountability with respect to such amounts for such Calendar Year,
          other than any liability related to fraudulent records or records
          fraudulently withheld by the Audited Party (and its Affiliates in the
          case of Amgen).

  10.6    Confidentiality. Each Party shall treat all financial information
          subject to review under Article 8 as the other Party's Confidential
          Information. Both Parties shall cause their respective accounting firm
          to be bound to obligations of confidentiality at least as restrictive
          as such Party's obligations of confidentiality in this Agreement.

                                       30

<PAGE>

                                   ARTICLE 11
                                  PUBLICATIONS

  11.1    Publications.

          a.    The Parties hereby acknowledge the publication rights granted
                pursuant to the *****. Amgen agrees that as between the Parties,
                GENE shall have the sole right to publish the identification of
                the ***** with the consultation of Amgen; provided however, GENE
                shall use its best efforts to prevent the publication of such
                results in a manner which would jeopardize Amgen's proprietary
                position in the Research Field such as *****.

          b.    Amgen shall have the sole right to publish the results of any
                and all pre-clinical and clinical studies of Products without
                the consultation of GENE, subject to its confidentiality
                obligations under Article 12.

          c.    Subject to Section 11.2.a. below, both Parties shall have the
                right to publish scientific results and other related
                Information of any and all work conducted during the Research
                Program related to the Research Field, excluding the results of
                pre-clinical studies of Products, which are publishable pursuant
                to Section 11.1.b.

          d.    Subject to Section 11.2.b. below, each Party shall have the sole
                right to publish their respective Program Know-How not related
                to the Research Field.

  11.2    Procedure.

          a.    For purposes of publication pursuant to Section 11.1.c. above,
                neither Party will publish without the prior review and written
                approval of *****. Each Party will submit to ***** any paper
                proposed for publication by such Party that relates to both the
                Research Program and to the Research Field, including oral
                presentations and abstracts. Before any such paper is submitted
                for publication or an oral presentation is made, the Party
                publishing or presenting will deliver a complete copy of the
                paper or abstract or materials for oral presentation to ***** at
                least ***** days prior to submitting the paper to a publisher or
                making the presentation. Notwithstanding the prior written
                approval of ***** to publish, upon the request of the other
                Party, the publishing Party will delete references to the other
                Party's Confidential Information in any such paper, materials
                and abstracts and agrees to withhold publication of same for an
                additional ***** days in order to permit the Parties to obtain
                patent protection, if either of the Parties deems it necessary,
                in accordance with the terms of this Agreement.

          b.    For purposes of publication pursuant to Section 11.1.d. above,
                each Party will have the right to review any paper proposed for
                publication by the other Party that relates to the other Party's
                Program Know-How not related to the Research Field, including
                oral presentations and abstracts. Before any such paper is
                submitted for

                                       31

<PAGE>

                publication or an oral presentation is made, the Party
                publishing or presenting will deliver a complete copy of the
                paper or abstract or materials for oral presentation to the
                other Party at least ***** days prior to submitting the paper to
                a publisher or making the presentation. The other Party will
                review any such paper and give its comments to the publishing
                Party within ***** days after the delivery of such paper to the
                other Party. Amgen may request, and GENE shall comply with such
                request, that any such publication or oral presentation of GENE
                is delayed, modified or withheld if it reasonably considers that
                such publication or oral presentation would be detrimental to
                Patent Rights or would have other detrimental consequences on
                the Development or Commercialization of any Product. With
                respect to oral presentation materials and abstracts, the other
                Party will make reasonable efforts to expedite review of such
                materials and abstracts, and will return such items as soon as
                practicable to the presenting Party with appropriate comments,
                if any, but in no event later than ***** days after the delivery
                to the other Party. The publishing Party will comply with the
                other Party's request to delete references to the other Party's
                Confidential Information in any such paper, materials and
                abstracts and agrees to withhold publication of same for an
                additional ***** days in order to permit the Parties to obtain
                patent protection, if either of the Parties deems it necessary,
                in accordance with the terms of this Agreement.

  11.3    Acknowledgment. Any such publication or presentation subject to
          Sections 11.1 and 11.2 will include recognition of the contributions
          of the other Party according to standard practice for assigning
          scientific credit, either through authorship or acknowledgment, as may
          be appropriate.

                                   ARTICLE 12
                                 CONFIDENTIALITY

  12.1    Treatment of Confidential Information. The Parties agree that during
          the Term, and for a period of five (5) years after this Agreement
          expires or terminates, with respect to the other Party's Confidential
          Information, each Party shall (a) maintain in confidence such
          Confidential Information to the same extent such Party maintains its
          own confidential or proprietary information or trade secrets of
          similar kind and value (but at a minimum each Party shall use
          reasonable best efforts to maintain such Confidential Information in
          confidence); (b) not disclose such Confidential Information to any
          Third Party without prior written consent of the other Party, except
          for disclosures to its Affiliates and, pursuant to Section 17.7, to
          authorized subcontractors who agree to be bound by obligations of
          non-disclosure and non-use at least as stringent as those contained in
          this Article 12; and (c) not use such Confidential Information for any
          purpose except those purposes permitted by this Agreement. Neither
          Party shall knowingly disclose to the other Party any Third Party
          information or know-how that such Party does not have the legal right
          to disclose to the other Party and/or has a contractual obligation not
          to disclose to the other Party.

                                       32

<PAGE>

  12.2    Authorized Disclosure. Notwithstanding any other provision of this
          Agreement, unless otherwise specified below, each Party may disclose
          Confidential Information of the other Party:

          a.    to the extent and to the persons and entities as required by an
                applicable law, rule, regulation, legal process, court order or
                the rules of the National Association of Securities Dealers or
                of a Regulatory Authority;

          b.    as necessary to file, prosecute or defend those patent
                applications or patents for which such Party has the right to
                assume filing, prosecution, defense or maintenance, pursuant to
                Section 9.4 of this Agreement;

          c.    to prosecute or defend litigation or otherwise establish rights
                or enforce obligations pursuant to its rights under this
                Agreement, but only to the extent that any such disclosure is
                necessary;

          d.    (solely with respect to Amgen) in the event of a recall of a
                Product; or

          e.    to such Party's employees, consultants and agents who have a
                need to know and who have an obligation to treat such
                information as confidential.

  The Party required or intending to disclose the other Party's Confidential
  Information under Section 12.2.c. shall first have given prompt notice to such
  other Party to enable it to seek any available exemptions from or limitations
  on such disclosure requirement and shall reasonably cooperate in such efforts
  by the other Party.

  12.3    Publicity; Terms of Agreement. The Parties agree that the existence of
          and the material terms of this Agreement shall be considered
          Confidential Information of both Parties, subject to the special
          authorized disclosure provisions set forth below in this Section 12.3
          (in lieu of the authorized disclosure provisions set forth in Section
          12.2, to the extent of any conflict) and without limiting the
          generality of the definition of Confidential Information. The Parties
          will mutually agree on the text of a press release announcing the
          execution of this Agreement. Thereafter, if either Party desires to
          make a public announcement concerning this Agreement or the terms
          hereof, such Party shall give reasonable prior advance notice of the
          proposed text of such announcement to the other Party for its prior
          review and approval, such approval not to be unreasonably withheld or
          delayed. With respect to GENE's public announcement of the achievement
          of each of the milestones set forth in Section 8.9, GENE shall make
          such announcement within ***** working days of the achievement of such
          milestone as determined in accordance with the provisions of this
          Agreement. A Party shall not be required to seek the permission of the
          other Party to repeat any information as to the terms of this
          Agreement that has already been publicly disclosed by such Party in
          accordance with the foregoing or by the other Party. Either Party may
          disclose the terms of this Agreement to potential investors who agree
          to be bound by obligations of non-disclosure and non-use at least as
          stringent as those contained in this Agreement. The Parties
          acknowledge that Amgen and/or GENE

                                       33

<PAGE>

          may be obligated to file a copy of this Agreement and/or the Stock
          Purchase Agreement with the U.S. Securities and Exchange Commission
          with its next quarterly report on Form 10-Q, an annual report on Form
          10-K or a current report on Form 8-K or with any registration
          statement filed with the U.S. Securities and Exchange Commission
          pursuant to the Securities Act of 1933, as amended, and each such
          Party shall be entitled to make such filing, provided however, that it
          requests confidential treatment of the more sensitive terms hereof to
          the extent such confidential treatment is reasonably available to the
          filing Party under the circumstances then prevailing. In the event of
          any such filing, the filing Party will provide the non-filing Party
          with an advance copy of this Agreement or the Stock Purchase Agreement
          marked to show provisions for which the filing Party intends to seek
          confidential treatment, and the filing Party shall reasonably consider
          the non-filing Party's timely comments thereon.

  12.4    Prohibition on Solicitation. Without the written consent of the other
          Party, neither Party nor its Affiliates shall, during the term of this
          Agreement or for a period of one year following the expiration or
          termination of this Agreement, solicit (directly or indirectly) any
          person who was employed by such Party or its Affiliates and
          participated in the Research Program at any time during the term of
          this Agreement. This provision shall not restrict either Party or its
          Affiliates from advertising employment opportunities in any manner
          that does not directly target the other Party or its Affiliates.

                                   ARTICLE 13
                                 INDEMNIFICATION

  13.1    Indemnification by Amgen. Except for claims defended pursuant to
          Section 9.10, Amgen hereby agrees to defend, hold harmless and
          indemnify (collectively "Indemnify" or "Indemnified") GENE and its
          agents, directors, officers and employees (the "GENE Indemnitees")
          from and against any and all Losses resulting directly or indirectly
          from any Third Party (which, for the avoidance of doubt, shall exclude
          employees, agents or independent contractors of Amgen and/or GENE)
          claims, suits, actions or demands arising out of (a) any of Amgen's
          representations and warranties set forth in this Agreement being
          untrue in any material respect when made; (b) any material breach or
          material default by Amgen of its covenants and obligations under this
          Agreement; (c) Amgen's negligence or intentional misconduct (or the
          negligence or intentional misconduct of any agent, independent
          contractor, Third Party engaged by Amgen, Affiliate or sublicensee of
          Amgen) in carrying out its activities set forth in the Research Plan
          and in Developing and Commercializing Product(s); and (d) the
          Development, manufacture, import, use or sale of any Product(s) by
          Amgen or any Affiliate, sublicensee, distributor or agent of Amgen,
          but excluding any Product(s) for which GENE shall have elected to
          contribute to any Development Costs pursuant to Sections 4.2, 4.3, 4.4
          and 4.5 or share profits pursuant to Section 6.2.

  13.2    Indemnification by GENE. GENE hereby agrees to Indemnify Amgen and its
          Affiliates, agents, directors, officers and employees (the "Amgen
          Indemnitees") from

                                       34

<PAGE>

          and against any and all Losses resulting directly or indirectly from
          any Third Party (which, for the avoidance of doubt, shall exclude
          employees, agents or independent contractors of Amgen and/or GENE)
          claims, suits, actions or demands arising out of (a) any of GENE's
          representations and warranties set forth in this Agreement being
          untrue in any material respect when made; (b) any material breach or
          material default by GENE of its covenants and obligations under this
          Agreement; (c) GENE's negligence or intentional misconduct (or the
          negligence or intentional misconduct of any agent, independent
          contractor, Third Party engaged by GENE or Affiliate of GENE) in
          carrying out its activities set forth in the Research Plan and in
          Co-Detailing Product(s); and (d) the development, manufacture, import,
          use or sale of any product(s) related to Diagnostic Uses by GENE or
          any Affiliate, sublicensee, distributor or agent of GENE.

  13.3    Indemnification Procedure. To be eligible to be so Indemnified as
          described in Section 13.1 or Section 13.2 above, each of the GENE
          Indemnitees or Amgen Indemnitees, as the case may be (the
          "Indemnitee(s)"), seeking to be Indemnified, shall provide the Party
          required to Indemnify the Indemnitee(s) (the "Indemnifying Party")
          with prompt notice of any claim (with a description of the claim and
          the nature and amount of any such Loss) giving rise to the
          indemnification obligation pursuant to Section 13.1 or Section 13.2,
          as the case may be, and the exclusive ability to defend such claim but
          for the differing interests exception set forth below (with the
          reasonable cooperation of Indemnitee(s)); provided however, that the
          failure to provide notice shall not relieve the Indemnifying Party of
          its obligations except to the extent any failure by the Indemnitee(s)
          to deliver prompt notice shall have been prejudicial to its ability to
          defend such action. Each Indemnitee(s) shall have the right to retain
          its own counsel, at its own expense, if representation of the counsel
          of the Indemnifying Party would be inappropriate due to actual or
          potential differing interests between such Indemnitee(s) and the
          Indemnifying Party. Neither the Indemnitee(s) nor the Indemnifying
          Party shall settle or consent to the entry of any judgment with
          respect to any claim for Losses for which indemnification is sought,
          without the prior written consent of the other Party (not to be
          unreasonably withheld); provided however, the Indemnifying Party shall
          have the right to settle or compromise any claim for Losses without
          such prior written consent if the settlement or compromise provides
          for an unconditional release of the Indemnitee(s). The Indemnifying
          Party's obligation to Indemnify the Indemnitee(s) pursuant to this
          Section 13.3 shall not apply to the extent of any Losses (i) that
          arise from the negligence or intentional misconduct of any Indemnitee
          (including but not limited to, in the case of GENE Indemnitees, those
          Losses arising from Research Plan activities and the Co-Detailing of
          Product(s) by GENE, or, in the case of Amgen Indemnitees, those Losses
          arising from Research Plan activities and the Development or
          Commercialization of Product(s) by Amgen); or (ii) that, in the case
          of GENE Indemnitees, arise from the breach by GENE or, in the case of
          Amgen Indemnitees, arise from the breach by Amgen, of any
          representation, warranty, covenant or obligation under this Agreement;
          or (iii) that arise from the failure of the Indemnitee(s) to take
          reasonable action to mitigate any Losses.

                                       35

<PAGE>

  13.4    Insurance. Within thirty (30) days after the Effective Date, each
          Party shall at its own expense procure and maintain during the term of
          this Agreement insurance adequate to cover its obligations hereunder
          and which is consistent with normal business practices of prudent
          companies similarly situated. Amgen may self-insure all or part of
          such insurance. GENE may self-insure part of any such insurance;
          provided however, that GENE shall at all times maintain the following
          minimum Third Party insurance coverage:

                        TYPE OF COVERAGE                      AMOUNT (AGGREGATE)

                                                                   *****
                Commercial General Liability Insurance

                                                                   *****
                Excess Liability Insurance

                Worker's Compensation                              *****

                Employer's Liability                               *****

          The Parties hereby agree to negotiate in good faith the amount of
          product liability insurance that GENE shall maintain in the event that
          GENE elects to Co-Detail pursuant to Section 6.3. Each insurance
          policy required by and procured by a Party under this Section 13.4
          shall name the other Party as an additional insured except for
          Worker's Compensation. Such insurance shall not be construed to create
          a limit of the insuring Party's liability with respect to its
          indemnification obligations under this Article 13. Each Party shall
          provide the other Party with a certificate of insurance or other
          evidence of such insurance and/or self-insurance, upon request. Each
          Party shall provide the other Party with written notice at least
          thirty (30) days prior to the cancellation, non-renewal or a material
          change in such insurance or self-insurance, which materially adversely
          affects the rights of the other Party hereunder. An Indemnifying
          Party's insurance shall be primary and non-contributing.

  13.5.   Pre-Effective Date Losses. In connection with this Agreement, Amgen
          shall not assume or be liable for any Losses resulting from or arising
          in connection with the activities of GENE (or any agent, independent
          contractor or Third Party engaged by GENE) relating to Research Field
          on or prior to the Effective Date.

  13.6    Limitation of Liability. NEITHER PARTY NOR ITS RESPECTIVE AFFILIATES
          SHALL BE LIABLE FOR SPECIAL, EXEMPLARY, CONSEQUENTIAL OR PUNITIVE
          DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY OR
          OTHERWISE INCURRED BY THE OTHER PARTY IN CONNECTION WITH THIS
          AGREEMENT, INCLUDING BUT NOT LIMITED TO DAMAGES MEASURING LOST PROFITS
          OR BUSINESS OPPORTUNITIES.

                                       36

<PAGE>

                                   ARTICLE 14
                         REPRESENTATIONS AND WARRANTIES

  14.1    Mutual Representations and Warranties. Each Party represents and
          warrants to the other that:

          a.    it is a corporation duly organized and validly existing under
                the laws of its jurisdiction of incorporation, and has full
                power and authority to enter into this Agreement and to carry
                out the provisions hereof;

          b.    the execution and delivery of this Agreement and the performance
                of the transactions contemplated hereby have been duly
                authorized by all necessary corporate action of such Party, and
                the person executing this Agreement on behalf of each Party has
                been duly authorized to do so by requisite corporate action;

          c.    the execution and delivery of this Agreement and the performance
                of the transactions contemplated hereby will not violate such
                Party's corporate charter, bylaws or any other organizational
                document, other contractual obligations (express or implied) it
                has or may have, or any judgment of any court or governmental
                body applicable to such Party or its properties or, to such
                Party's knowledge, any statute, decree, order, rule or
                regulation of any court or governmental agency or body
                applicable to such Party or its properties, in each case, which
                violation, individually or in the aggregate, would reasonably
                likely have a materially adverse effect on its business or
                financial condition or its ability to perform its obligations
                hereunder;

          d.    the execution and delivery of this Agreement does not and will
                not require any consent or approval of any governmental entity
                or person;

          e.    this Agreement is a legally binding obligation of such Party and
                enforceable against such Party according to its terms; except as
                enforceability may be limited by bankruptcy, fraudulent
                conveyance, insolvency, reorganization, moratorium and other
                laws relating to or affecting creditors' rights generally and by
                general equitable principles and public policy constraints
                (including those pertaining to limitations and/or exclusions of
                liability, competition law, penalties and jurisdictional issues
                including conflicts of law); and

          f.    except as disclosed in any documents filed with the Securities
                and Exchange Commission pursuant to the Exchange Act as of the
                Effective Date, such Party is not aware of any facts or
                circumstances, individually or in the aggregate, which would be
                reasonably expected to have a material adverse effect on such
                Party's ability to perform its obligations under this Agreement.

  14.2    Mutual Covenants. Each Party covenants to the other that:

                                       37

<PAGE>

          a.    all activities conducted by that Party under the Research
                Program will comply in all material respects with all applicable
                government laws, regulations and guidelines, including those
                relating to work with recombinant DNA;

          b.    it shall not enter into any collaboration with, or render
                services for, a Third Party whereby such collaboration or
                services with or for such Third Party will negatively impact the
                timely accomplishment of the goals and objectives of the
                Research Program; and

          c.    it shall not knowingly misappropriate the trade secret of a
                Third Party in connection with the performance of its activities
                under the Research Program.

  14.3    Additional Representations, Warranties and Covenants of GENE.

          a.    As of the Effective Date, GENE has provided Amgen with all
                Material Information (as defined below) which is necessary for
                Amgen to decide the merits of entering into this Agreement,
                including without limitation, all Material Information relating
                to the representations and warranties of this Section 14.3 and
                all Material Information concerning the ***** and GENE's efforts
                to date in identifying and characterizing the *****, and all
                such provided Material Information is, to the best knowledge of
                GENE, true in all material respects. For purposes of this
                Section 14.3, the term "Material Information" means all
                information required to make the disclosed information
                substantially complete and not misleading which is in GENE's
                possession and control and which GENE is permitted to share with
                Amgen without violating the terms of any agreement between GENE
                and any Third Party.

          b.    As of the Effective Date, and with respect to Material
                Information as defined in Section 14.3.a. above, GENE is not
                aware of any Third Party information that it has not disclosed
                to Amgen that would materially affect Amgen's decision regarding
                the merits of entering into this Agreement.

          c.    As of the Effective Date, GENE has sufficient legal and/or
                beneficial title and ownership under, or sufficient rights to
                use and license, the *****, GENE Background Patent Rights and
                GENE Background Know-How as is necessary to fulfill its
                obligations under this Agreement and to grant the licenses to
                Amgen pursuant to this Agreement. As of the Effective Date GENE
                has not granted, and shall not during the term of this
                Agreement, grant any right, license, covenant, consent or
                privilege to any Third Party or otherwise undertake any action,
                either directly or indirectly, which would conflict in a
                material respect with the rights granted to Amgen or interfere
                in any material respect with any obligations of GENE set forth
                in this Agreement.

          d.    *****

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<PAGE>

          e.    GENE has maintained and shall maintain and keep in full force
                and effect all agreements (including license agreements, e.g.
                *****) and filings (including patent filings) necessary to
                perform its obligations hereunder. GENE (i) shall not consent to
                any termination, modification, amendment or waiver of any of its
                rights under ***** that may materially and adversely affect
                Amgen's rights under this Agreement, without first obtaining
                Amgen's prior written consent, which, with respect to matters
                not related to the Research Field, such consent shall not be
                reasonably withheld or delayed, (ii) has not and will not take
                or fail to take any action that may lead to the termination,
                modification, amendment or waiver of its rights under ***** that
                would materially and adversely affect Amgen's rights under this
                Agreement, and (iii) has and will take all necessary actions,
                including without limitation payment of all fees to timely
                exercise its option with respect to the subject matter of this
                Agreement under *****. As of the Effective Date, GENE has not
                received any notice of default, and, to the best of its
                knowledge, is not in default of its obligations under *****.

          f.    As of the Effective Date, there is no pending or, to the best
                knowledge of GENE, threatened litigation, and GENE has not
                received any communication which alleges that GENE's activities
                with respect to the ***** or proposed activities under this
                Agreement would infringe or misappropriate any intellectual
                property rights of any Third Party.

          g.    GENE has disclosed to Amgen all Material Information (as defined
                above) of which GENE is aware and which GENE reasonably believes
                to be material to the validity of the *****. Exhibit 2 contains
                the complete list of ***** as of the Effective Date.

          h.    GENE has provided Amgen with a *****.

          i.    GENE covenants that during the term of this Agreement GENE shall
                work exclusively with Amgen regarding the Research Field.

  14.4    Disclaimer of Representations and Warranties. EXCEPT AS EXPRESSLY SET
          FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR
          WARRANTY TO THE OTHER PARTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING
          BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
          PARTICULAR PURPOSE, VALIDITY OF THE PATENT RIGHTS LICENSED HEREUNDER,
          OR NONINFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF THIRD
          PARTIES. Nothing in this Agreement shall be construed as a
          representation or warranty by either Party that any Product Developed
          or Commercialized is or will be effective, valuable, safe, non-toxic
          or patentable.

                                       39

<PAGE>

                                   ARTICLE 15
                              TERM AND TERMINATION

  15.1    Term. This Agreement shall become effective on the Effective Date and
          shall remain in full force and effect, unless earlier terminated
          pursuant to this Article 15, until such time as Amgen provides written
          notice to GENE that it no longer (i) intends to Develop or
          Commercialize Products or (ii) is Developing or Commercializing
          Products.

  15.2    Termination by Amgen.

          a.    If the ***** has not been identified, as that research milestone
                is defined in Section 8.4.a., on or before ***** months from the
                Effective Date, Amgen may, at its option, provide written notice
                of termination to GENE at any time thereafter until such time as
                the ***** is identified or Amgen elects to advance the Research
                Program to the ***** of the Research Plan pursuant to Section
                8.4.a., and the Agreement shall automatically terminate *****
                days after such prior written notice of termination is provided
                to GENE.

          b.    At any time after the ***** has been identified, Amgen shall
                have the right, in its sole discretion, to terminate this
                Agreement by providing ***** days prior written notice of
                termination to GENE.

          c.    The effects of any such termination under this Section 15.2 will
                occur in accordance with Section 15.6.

  15.3    Termination for Default.

          a.    In the event any material representation or warranty made
                hereunder by either Party shall have been untrue in any material
                respect ("Representation Default"), or upon any material breach
                or material default of a material obligation under this
                Agreement a Party ("Performance Default"), the Party not in
                default ("Non-Defaulting Party") must first give the other Party
                ("Defaulting Party") written notice thereof ("Notice of
                Default"), which notice must state the nature of the
                Representation Default or Performance Default in reasonable
                detail and must request that the Defaulting Party cure such
                Representation Default or Performance Default within ***** days.
                During any such ***** after receipt or delivery of a Notice of
                Default under this Section 15.3.a. for which termination of this
                Agreement is a remedy under Sections 15.3.b. and 15.3.c., all of
                the Party's respective rights and obligations under the affected
                parts of this Agreement, including but not limited to
                Development, manufacture and Commercialization, shall (to the
                extent applicable) remain in force and effect. If the Defaulting
                Party shall dispute the existence, extent or nature of any
                default set forth in a Notice of Default, the Parties shall use
                good faith efforts to resolve the dispute in accordance with
                Sections 2.4 and 2.5.

                                       40

<PAGE>

          b.    GENE Default. In the event of a Performance Default by GENE that
                shall not have been cured within the period set forth in Section
                15.3.a. above after receipt of a Notice of Default, Amgen may,
                at its option, but in lieu of any right to terminate this
                Agreement, exercise the rights set forth in Section 15.4 upon
                prior written notice to GENE. In the event of a Representation
                Default by GENE that shall not have been cured within the period
                set forth in Section 15.3.a. above after receipt of a Notice of
                Default, Amgen may, at its option, terminate this Agreement upon
                ***** days prior written notice to GENE and, in addition to any
                other remedies which may be available at law or equity, Amgen
                shall have the right to (i) *****, each with respect to a
                representation(s) other than the representations set forth in
                subparts a., c., e. and h. of Section 14.3, provided however,
                that Amgen shall have provided such Notice of Default within
                ***** months after the Effective Date or before the
                identification of the *****, whichever is later; (ii) *****,
                each with respect to a representation(s) set forth in subpart a.
                of Section 14.3, provided however, that Amgen shall have
                provided such Notice of Default ***** months after the Effective
                Date or before the identification of the *****, whichever is
                later; and (iii) *****.

          c.    Amgen Default. In the event of a Representation Default by Amgen
                that shall not have been cured within the period set forth in
                Section 15.3.a. above after receipt of a Notice of Default,
                GENE, at its option, may terminate this Agreement upon *****
                days prior written notice to Amgen. In the event that any
                Performance Default by Amgen arises out of (i) *****; (ii)
                *****; (iii) *****; or (iv) *****, that in each case shall not
                have been cured within the period set forth in Section 15.3.a.
                above after receipt of a Notice of Default, GENE, at its option,
                may terminate this Agreement upon ***** prior written notice to
                Amgen. The effects of such termination will occur in accordance
                with Section 15.6. In the event of a Performance Default by
                Amgen other than regarding subsections (i) through (iv) of this
                Section 15.3.c. that shall not have been cured within the period
                set forth in Section 15.3.a. above after receipt of a Notice of
                Default, GENE shall only be entitled to seek legal remedies, but
                shall not be entitled to terminate or seek termination of this
                Agreement, and all of Amgen's rights and obligations under this
                Agreement shall remain in full force and effect.

  15.4    Effects of GENE Default. In addition to any other remedies which may
          be available at law or equity, but not the right to terminate or seek
          termination of this Agreement, upon any uncured Performance Default by
          GENE under Section 15.3(b), the following rights and obligations of
          the Parties shall apply:

          a.    In the event that such uncured Performance Default arises out of
                GENE's obligation to conduct the Research Program, (i) GENE's
                rights and obligations to participate in the Research Program
                pursuant to Articles 2 and 3 (including GENE's rights to
                participate in the Joint Research Committee and Joint Steering
                Committee to the extent that the JSC shall no longer have any
                oversight responsibility with respect to the Research Program)
                shall terminate, (ii) Amgen shall have the sole right and
                responsibility for all aspects of the Research Program

                                       41

<PAGE>

                going forward, and (iii) Amgen's obligations to fund GENE FTEs
                pursuant to Section 8.2 and pay GENE research milestone payments
                pursuant to Section 8.4 shall terminate.

          b.    In the event that such uncured Performance Default arises out of
                GENE's obligation to participate in Co-Detailing any Product,
                GENE's right to Co-Detail such Product pursuant to Sections 6.3
                and 6.4 (including its right to participate in the Joint Sales
                and Marketing Committee) shall terminate.

          c.    In the event that such uncured Performance Default arises out of
                GENE's failure to pay its share of Development Costs pursuant to
                Section 4.9, GENE's right to a Development Contribution Royalty
                under Section 8.6.b. shall terminate (but not its right to a
                Baseline Royalty under Section 8.6.a.). In addition, GENE's
                rights and obligations to contribute to Development Costs
                pursuant to Article 4 (including GENE's right to participate in
                the Joint Development Committee), GENE's right to share profits
                pursuant to Sections 6.5, 6.6, 6.7 and 6.8 and GENE's right to
                Co-Detail pursuant to Sections 6.3 and 6.4 shall terminate.

          d.    In the event that such uncured Performance Default arises out of
                GENE's failure to pay its share of Product Contribution pursuant
                to Section 6.8, GENE's right to share profits pursuant to
                Sections 6.5, 6.6, 6.7 and 6.8 shall terminate and GENE shall
                have no right to any royalty payments pursuant to Sections 8.6.a
                and 8.6.b with respect to the United States and/or Canada (as
                appropriate).

  15.5    Bankruptcy. All rights and licenses granted under or pursuant to this
          Agreement by GENE are, and shall otherwise be deemed to be, for
          purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of
          rights to "intellectual property" as defined under Section 101 of the
          U.S. Bankruptcy Code. The Parties agree that Amgen shall retain and
          may fully exercise all of its rights and elections under the U.S.
          Bankruptcy Code. The Parties further agree that, in the event of the
          commencement of a bankruptcy proceeding by or against GENE under the
          U.S. Bankruptcy Code, Amgen shall be entitled to a complete duplicate
          of (or complete access to, as appropriate) any intellectual property
          and all embodiments of such intellectual property, and same, if not
          already in Amgen's possession, shall be promptly delivered to Amgen
          (i) upon any such commencement of a bankruptcy proceeding, upon
          Amgen's written request therefor, unless Gene (or a trustee on behalf
          of GENE) elects to continue to perform all of its obligations under
          this Agreement or (ii) if not delivered under (i) above, upon the
          rejection of this Agreement by or on behalf of GENE, upon written
          request therefor by Amgen.

  15.6    Effects of Termination. In addition to any other remedies which may be
          available at law or equity, upon termination of this Agreement under
          Section 15.2, Section 15.3.b. (except as specifically provided in
          Section 15.4) or Section 15.3.c., the following rights and obligations
          of the Parties shall apply:

                                       42

<PAGE>

          a.    In the event that Amgen terminates this Agreement (i) at any
                time as a consequence of an uncured Representation Default by
                GENE or (ii) in the event that GENE terminates this Agreement as
                a consequence of an uncured Performance Default by Amgen in
                accordance with Section 15.3.c. or Amgen terminates this
                Agreement in accordance with Sections 15.2.a or 15.2.b, which
                termination in any case occurs prior to the administration by
                Amgen of any Product to human subjects under a Phase I Study
                (the "Phase I Study Initiation"), the license granted by Amgen
                under Section 9.2.a. to GENE shall terminate.

          b.    In the event that GENE terminates this Agreement as a
                consequence of an uncured Performance Default by Amgen in
                accordance with Section 15.3.c. or Amgen terminates this
                Agreement in accordance with Section15.2.b, which termination in
                any case occurs after Phase I Study Initiation has occurred and
                no serious adverse events have been reported to Amgen, GENE may
                notify Amgen in writing, within thirty (30) days following any
                such termination, of its desire to obtain an *****, under the
                Amgen Technology to make, use or sell only Product which is
                identified as the clinical candidate in the applicable IND.
                Notwithstanding the above, Amgen shall be under no obligation to
                license to GENE *****.

          c.    Should GENE so notify Amgen pursuant to Section 15.6.b. above,
                the parties will negotiate in good faith commercially reasonable
                terms for such ***** days based upon terms and conditions
                applicable to a product for a similar use and of similar market
                potential at a similar stage in its product life as that of such
                Product, taking into account *****. Such terms shall include,
                without limitation, *****, for all of which Amgen will be
                reasonably compensated. If the Parties are unable to agree upon
                such terms within said ***** days in the event that (i) Amgen
                terminates pursuant to Section 15.2.b., Amgen shall be free to
                dispose of such rights; *****.

          d.    Amgen shall within ***** days destroy (and provide GENE with a
                certification of such destruction signed by an officer of Amgen)
                all of GENE's Confidential Information (other than with respect
                to maintaining one (1) archival copy of Confidential Information
                related thereto for its legal files, for the sole purpose of
                determining its obligations under this Agreement) and Materials,
                and shall provide GENE with certification by an officer of Amgen
                that all such Confidential Information and Materials have been
                destroyed or returned to Amgen, as appropriate.

          e.    In the event that (i) GENE does not notify Amgen of its desire
                to obtain a license pursuant to Section 15.6.b.; or (ii) the
                parties are unable to agree upon the terms of such license
                pursuant to Section 15.6.c, GENE shall, within ***** days of the
                occurrence of either of such events in (i) or (ii) above,
                destroy (and provide Amgen with a certification of such
                destruction signed by and officer of GENE) all of Amgen's
                Confidential Information (other than with respect to maintaining
                one (1) archival copy of Confidential Information related
                thereto for its legal files, for the sole purpose of determining
                its obligations under this Agreement) and Materials, and shall
                provide Amgen with certification by an officer of GENE that

                                       43

<PAGE>

                all such Confidential Information and Materials have been
                destroyed or returned to Amgen, as appropriate.

          f.    The Parties shall immediately conduct a final accounting to
                reconcile and calculate Development Costs in accordance with
                Section 4.9 and/or Product Contribution in accordance with
                Section 6.8.

          g.    The following provisions shall remain in full force and effect
                after the expiration or termination of this Agreement: Article
                1, Section 5.1 (unless negotiated otherwise between the Parties
                pursuant to subpart c. above), Article 8 (only with respect to
                payments due by Amgen at the time of termination), Section 9.1,
                Section 9.4 (with respect to Joint Patent Rights), Section 9.5,
                Section 9.7 (with respect to Joint Patent Rights and Joint
                Know-How), Section 9.8, Section 9.9 (with respect to GENE, only
                such claims or actions relating to matters prior to termination
                in which GENE is also named), Section 9.12, Article 10 (only
                with respect to accrued rights pursuant to Section 15.7),
                Article 12, Article 13, Article 14 (subject to the time
                restrictions set forth in Section 15.3.b), Article 15 and
                Article 17.

          h.    Except as expressly set forth in this Section 15.6, all other
                rights and obligations shall terminate.

  15.7    Accrued Rights. Termination, relinquishment or expiration of this
          Agreement for any reason in accordance with this Article 15 shall be
          without prejudice to any rights which shall have accrued to the
          benefit of either Party or any liability incurred by either Party
          prior to the effective date of such termination, relinquishment or
          expiration and shall not preclude either Party from pursuing all
          rights and remedies it may have hereunder or at law or in equity with
          respect to any breach of this Agreement nor prejudice either Party's
          right to obtain performance of any obligation.

                                   ARTICLE 16
                                CHANGE OF CONTROL

  16.1    Change of Control. If GENE enters into or proposes to enter into a
          transaction which will result in a Change of Control of GENE during
          the term of this Agreement, GENE may notify Amgen of such transaction
          at any time prior to entering into such transaction and if GENE does
          not notify Amgen of such transaction prior to entering into it, GENE
          shall promptly notify Amgen of such transaction upon entering into it.
          Within ***** days of such notice, Amgen shall have the right to send
          written notice ***** and Amgen's obligation to fund GENE FTEs pursuant
          to Section 8.2) and Amgen shall have the sole right and responsibility
          for all aspects of the ***** going forward; (ii) GENE's rights and
          obligations under Sections *****; (iii) if Amgen exercises its
          termination right prior to or during the notice period set forth in
          Section 6.2, GENE's right to *****; (iv) GENE's right to *****
          pursuant to Sections *****; (v) GENE's right to *****; and/or (vi)
          Amgen's obligation to ***** pursuant to Section *****. Unless
          explicitly set forth otherwise in such notice, such notice shall

                                       44

<PAGE>

          be effective to ***** all rights and obligations set forth in
          subsections (i)-(vi) hereinabove upon the occurrence of the Change of
          Control. Should Amgen fail to notify GENE within such ***** period,
          Amgen shall have no further rights under this Section 16.1 as a result
          of the Change of Control of GENE identified in GENE's notice to Amgen.

  16.2    Effect on Royalty Rates. In the event Amgen exercises its termination
          right pursuant to Section 16.1, GENE shall be entitled to the
          following royalties *****:

          a.    ***** as follows:

       GENE'S ACTUAL CONTRIBUTION TO TOTAL   APPLICABLE DEVELOPMENT CONTRIBUTION
              EARLY DEVELOPMENT COSTS                      ROYALTY

 *****                                      *****
 *****                                      *****
 *****                                      *****
 *****                                      *****
 *****                                      *****
 *****                                      *****
 *****                                      *****
          b.    *****:

            GENE'S EARLY    GENE'S ACTUAL CONTRIBUTION TO        APPLICABLE
            CONTRIBUTION    TOTAL LATE DEVELOPMENT COSTS         DEVELOPMENT
               LEVEL                                        CONTRIBUTION ROYALTY

          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****
          *****           *****                           *****

          c.    *****.

  16.3    Effect on Profit Share. In the event Amgen exercises its ***** right
          pursuant to Section 16.1 after GENE has elected to share profits in
          accordance with Section 6.2,

                                       45

<PAGE>

          with respect to sales of Product in the United States and/or Canada
          (as appropriate), *****.

  16.4    Effect on Milestone Payments. Any such ***** under Section 16.1 above
          shall not relieve Amgen from its obligation to pay GENE milestone
          payments in accordance with Section 8.4 and Section 8.5.

  16.5    Wind Down. In the event Amgen exercises its termination right pursuant
          to Section 16.1, the Parties shall cooperate to ensure an orderly wind
          down of related activities as soon as practicable. In particular,
          should Amgen exercise its termination right pursuant to Section
          16.1(i), GENE shall provide Amgen with reasonable technical assistance
          in transferring the activities of GENE researchers involved in the
          Research Program to Amgen, including any Materials Controlled by GENE
          necessary or desirable for Amgen to continue the Research Plan and
          Amgen shall pay for the FTE Costs associated with transferring such
          Research Program activities to Amgen as set forth in this Section
          16.5; provided however, GENE shall not be required to provide such
          technical assistance for more than ***** days following the effective
          date of such termination. Should Amgen exercise its termination right
          pursuant to Section 16.1(iv), the Parties shall cooperate to ensure an
          orderly wind down of all Co-Detailing in the United States and/or
          Canada as soon as practicable.

                                   ARTICLE 17
                                     GENERAL

  17.1    Conditions to Closing. The obligations of each Party to the other
          Party under this Agreement are subject to fulfillment, on or before
          the Effective Date, of the execution and delivery of the Stock
          Purchase Agreement.

  17.2    Force Majeure. Both Parties shall be excused from the performance of
          their obligations under this Agreement to the extent that such
          performance is prevented by Force Majeure and the nonperforming Party
          promptly provides notice of the prevention to the other Party. Such
          excuse shall be continued so long as the condition constituting Force
          Majeure continues. When such circumstances arise, the Parties shall
          discuss what, if any, modification of the terms of this Agreement may
          be required in order to arrive at an equitable solution.

  17.3    Notices. Any notice required or permitted to be given under this
          Agreement shall be in writing, shall specifically refer to this
          Agreement and shall be deemed to have been sufficiently given for all
          purposes if mailed by first class certified or registered mail,
          postage prepaid, express delivery service or personally delivered, or
          if sent by facsimile, electronic transmission confirmed. Unless
          otherwise notified in writing, the mailing addresses and fax numbers
          for notice of the Parties shall be as described below.

                                       46

<PAGE>

                For GENE:      Genome Therapeutics Corporation
                               100 Beaver Street
                               Waltham, Massachusetts 02453
                               Facsimile: *****
                               Attention:  1. Martin Williams,
                                              Senior Vice President,
                                              Corporate Development;
                                           2. General Counsel

                               With a copy to:
                               Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C.
                               One Financial Center
                               Boston, MA  02111
                               Facsimile:  (617) 542-2241
                               Attention:  1. Thomas R. Burton, III, Esq.;
                                           2. John J. Cheney, III, Esq.

                For Amgen:     Amgen Inc.
                               One Amgen Center Drive
                               Thousand Oaks, CA 91320-1799
                               Facsimile: (805) 499-8011
                               Attention:  Vice President, Licensing

                               With a copy to:  Corporate Secretary

  17.4    Maintenance of Records. Each Party shall keep and maintain all records
          required by law or regulation with respect to Products and shall make
          copies of such records available to the other Party upon request.

  17.5    No Strict Construction. This Agreement has been prepared jointly and
          shall not be strictly construed against either Party.

  17.6    Performance by Affiliates. GENE acknowledges that obligations under
          this Agreement may be performed by Affiliates of Amgen and that Amgen
          may grant its Affiliates a license or sublicense to (or covenant not
          to sue) under GENE Technology, Joint Patent Rights and Joint Know-How,
          as applicable. Amgen guarantees performance of this Agreement by its
          Affiliates, notwithstanding any assignment to Affiliates in accordance
          with Section 17.8 below. Wherever in this Agreement Amgen delegates
          responsibility to Affiliates or local operating entities, Amgen agrees
          that such entities may neither make decisions inconsistent with this
          Agreement, amend the terms of this Agreement nor act contrary to its
          terms in any way.

  17.7    Subcontracting. GENE acknowledges and agrees that Amgen may
          subcontract any or all portions of its work involved in the Research
          Program and the Development, manufacture and Commercialization of
          Products to a Third Party, and that Amgen may as part of such
          subcontract grant to such Third Party a *****; provided however, that
          Amgen remains responsible for the satisfactory accomplishment of such
          work in

                                       47

<PAGE>

          accordance with the terms and conditions of this Agreement and that
          the subcontractor shall enter into a written agreement binding such
          subcontractor to the obligations Amgen has to GENE (and containing any
          other provisions normal and customary for similar types of
          agreements). GENE may subcontract certain support functions related to
          its work involved in the Research Program, including any work to be
          performed by *****, only upon the prior written approval of *****;
          provided however, that GENE remains responsible for the satisfactory
          accomplishment of such work in accordance with the terms and
          conditions of this Agreement and that the subcontractor shall enter
          into a written agreement binding such subcontractor to the obligations
          GENE has to Amgen (and containing any other provisions normal and
          customary for similar types of agreements).

  17.8    Assignment. Except as set forth in Sections 17.6 and 17.7, neither
          Party may assign or transfer this Agreement or any rights or
          obligations hereunder without the prior written consent of the other,
          except that a Party may make such an assignment without the other
          Party's consent to Affiliates or to an entity that acquires all or
          substantially all of the business of such Party or the business of
          such Party to which this Agreement relates, whether in a merger,
          consolidation, reorganization, acquisition, sale or otherwise. This
          Agreement shall be binding on the successors and assigns of the
          assigning Party, and the name of a Party appearing herein shall be
          deemed to include the name(s) of such Party's successors and permitted
          assigns to the extent necessary to carry out the intent of this
          Agreement. Any assignment or attempted assignment by either Party in
          violation of the terms of this Section 17.8 shall be null and void and
          of no legal effect. The assigning Party shall forward to the other
          Party a copy of those portions of each fully executed assignment
          agreement which relate to the assumption of the rights and
          responsibilities of the assigning Party, within sixty (60) days of the
          execution of such assignment agreement.

  17.9    Counterparts. This Agreement may be executed in two (2) or more
          counterparts, each of which shall be deemed an original, but all of
          which together shall constitute one and the same instrument.

  17.10   Severability. If any one or more of the provisions of this Agreement
          are held to be invalid or unenforceable by any court of competent
          jurisdiction from which no appeal can be or is taken, the provision
          shall be considered severed from this Agreement and shall not serve to
          invalidate any remaining provisions hereof. The Parties shall make a
          good faith effort to replace any invalid or unenforceable provision
          with a valid and enforceable one such that the objectives contemplated
          by the Parties when entering this Agreement, as evidenced by the terms
          of this Agreement in accordance with Section 17.19, may be realized.

  17.11   Headings. The headings for each Article and Section in this Agreement
          have been inserted for convenience of reference only and are not
          intended to limit or expand on the meaning of the language contained
          in the particular Article or Section. Unless otherwise specified, (a)
          references in this Agreement to any Article, Section, Exhibit or
          Schedule shall mean references to such Article, Section, Exhibit or
          Schedule of

                                       48

<PAGE>

          this Agreement, (b) references in any Section to any clause are
          references to such clause of such Section, and (c) references to any
          agreement, instrument or other document in this Agreement refer to
          such agreement, instrument or other document as originally executed
          or, if subsequently varied, replaced or supplemented from
          time-to-time, as so varied, replaced or supplemented and in effect at
          the relevant time of reference thereto.

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

  17.13   Independent Contractors. The relationship between GENE and Amgen
          created by this Agreement is solely that of independent contractors.
          This Agreement does not create any agency, distributorship,
          employee-employer, partnership, joint venture or similar business
          relationship between the Parties. Neither Party is a legal
          representative of the other Party, and neither Party can assume or
          create any obligation, representation, warranty or guarantee, express
          or implied, on behalf of the other Party for any purpose whatsoever.
          Each Party shall use its own discretion and shall have complete and
          authoritative control over its employees and the details of performing
          its obligations under this Agreement.

  17.14   No Benefit of Third Parties. The representations, warranties,
          covenants and agreements set forth in this Agreement are for the sole
          benefit of the Parties hereto and their successors and permitted
          assigns, and they shall not be construed as conferring any rights on
          any Third Parties.

  17.15   Use of Names, Logos or Symbols. No Party hereto shall use, and no
          rights are granted in or to, the names or trademarks (including the
          names "Amgen" and "GENE"), physical likeness, employee names or other
          symbols of the other Party for any purpose (including, without
          limitation, private or public securities placements) without the prior
          written consent of the affected Party, such consent not to be
          unreasonably withheld or delayed so long as such use is limited to
          objective statement of fact rather than for endorsement or publicity
          purposes. Neither Party shall use any trademark which either
          substantially resembles or is confusingly similar to, misleading or
          deceptive with respect to, or which dilutes any of the other Party's
          trademarks in connection with the subject matter of this Agreement.

  17.16   No Waiver. Any delay in enforcing a Party's rights under this
          Agreement or any waiver as to a particular default or other matter
          shall not constitute a waiver of such Party's rights to the future
          enforcement of its rights under this Agreement, except with respect to
          an express written and signed waiver relating to a particular matter
          for a particular period of time.

  17.17   Offset. Either Party shall be entitled to offset, against any payments
          due and payable to the other Party hereunder, all such amounts due and
          payable hereunder but not yet paid by the other Party to the Party
          seeking such offset. Prior to applying an offset

                                       49

<PAGE>

          under this Section 17.17, the Party seeking such offset shall first
          give the other Party written notice of such due and payable amounts
          and shall request the other Party to pay all such due and payable
          amounts within thirty (30) days from the date of such notice.

  17.18   Export Requirements. It is understood and acknowledged that the
          transfer of certain commodities and technical data is subject to
          United States laws and regulations controlling the export of such
          commodities and technical data, including all Export Administration
          Regulations of the United States Department of Commerce. Each Party
          hereby agrees and by entering into this Agreement gives written
          assurance that it shall comply with all United States laws and
          regulations controlling the export of commodities and technical data
          within Information and Materials, that it will be solely responsible
          for any violation of any such laws and regulations by itself, its
          Affiliates or its sublicensees, and that it will Indemnify, defend and
          hold the other Party harmless from any liability in the event of any
          legal action of any nature occasioned by such violation, pursuant to
          Section 13.1 (in the case of Amgen) or Section 13.2 (in the case of
          GENE).

  17.19   Entire Agreement; Amendment. This Agreement (including all Exhibits
          and Schedules, including the Stock Purchase Agreement) set forth the
          complete, final and exclusive agreement and all the covenants,
          promises, agreements, warranties, representations, conditions and
          understandings between the Parties hereto and supersedes and
          terminates all prior agreements and understandings between the
          Parties; on the Effective Date of this Agreement, the Confidential
          Disclosure Agreement dated March 11, 2002 (Amgen Reference No.
          200201526) is hereby superseded, provided that all Confidential
          Information disclosed therein shall be treated as if disclosed under,
          and shall be subject to the terms of, this Agreement. There are no
          covenants, promises, agreements, warranties, representations,
          conditions or understandings, either oral or written, between the
          Parties other than as are set forth herein and therein. This Agreement
          may only be modified or supplemented in a writing expressly stated for
          such purpose and signed by an authorized officer of each Party (i.e.,
          it may not be modified by any purchase order, change order,
          acknowledgment, order acceptance, standard terms of sale, invoice or
          the like); except that the Joint Research Committee may amend or
          update the Research Plan as expressly permitted hereby.

  17.20   Exhibits and Schedules. All Exhibits and Schedules referenced herein
          and attached hereto are incorporated in this Agreement by reference.
          In case of any discrepancies between the language incorporated from
          the Exhibits and Schedules and the terms of the Sections, the terms of
          the Sections shall prevail; provided however, where Sections of the
          Agreement make explicit reference to a substantive matter contained in
          an Exhibit or Schedule, or with respect to definitions set forth in
          the Exhibits or Schedules, the substantive matter or definitions
          contained in such Exhibit and Schedules shall prevail.

                                       50

<PAGE>

  17.21   Applicable Law. This Agreement shall be governed by and interpreted in
          accordance with the substantive laws of the State of Delaware, without
          reference to the conflicts of law principles thereof. The parties
          hereby acknowledge their diversity (GENE having its principal place of
          business in Massachusetts and Amgen having its principal place of
          business in California) and each of the Parties hereby submits to the
          jurisdiction of the courts of the State of Delaware, both state and
          federal. The venue for such proceedings shall be the state of
          Delaware. As between the Parties, any dispute, controversy or claim
          relating to the scope, validity, enforceability or infringement of any
          licensed Patent Rights shall be submitted to a court of competent
          jurisdiction in the Territory in which such licensed Patent Rights
          were granted or arose.

                                       51

<PAGE>

        IN WITNESS WHEREOF, the Parties hereto have executed this Agreement in
duplicate by proper persons thereunto duly authorized.

AMGEN INC.                                GENOME THERAPEUTICS CORP.

Kevin W. Sharer                           Steven M. Rauscher
Chairman of the Board, Chief Executive    President and Chief Executive Officer
Officer and President

                                       52

<PAGE>

                                    EXHIBIT 1
                                  RESEARCH PLAN

                                      *****

<PAGE>

                                    EXHIBIT 1
                                  RESEARCH PLAN

                                      *****

<PAGE>

                                    EXHIBIT 1
                                  RESEARCH PLAN

                                      *****

<PAGE>

                                    EXHIBIT 1
                                  RESEARCH PLAN

                                      *****

<PAGE>

                                    EXHIBIT 1
                                  RESEARCH PLAN

                                      *****

<PAGE>

                                    EXHIBIT 1
                                  RESEARCH PLAN

                                      *****

<PAGE>

                                    EXHIBIT 2

                                      *****

                                       2-1

<PAGE>

                                    EXHIBIT X

                                      *****

                                       Y-1

<PAGE>

                                    EXHIBIT Y

                                      *****

                                       Y-2

<PAGE>

                                       S-1<PAGE>

CONFIDENTIAL TREATMENT REQUEST                                    EXECUTION COPY

                                                                   EXHIBIT 10.63

PORTIONS OF THIS EXHIBIT WERE OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT
FILED WITH THE COMMISSION PURSUANT TO RULE 24B-2 UNDER THE SECURITIES EXCHANGE
ACT OF 1934. SUCH PORTIONS ARE MARKED BY ASTERISKS.

                            STOCK PURCHASE AGREEMENT

        This Stock Purchase Agreement (this "Agreement") is made as of December
20, 2002 by and between Genome Therapeutics Corp., a Massachusetts corporation
(the "Company"), and Amgen Inc., a Delaware corporation ("Purchaser").

                                    RECITALS

        a.      The Company and Purchaser have entered into a research
collaboration and license agreement dated the date hereof (the "Collaboration
Agreement") related to the discovery and development of human therapeutics for
the treatment of osteoporosis and other diseases;

        b.      In connection with the Collaboration Agreement, the Company and
the Purchaser have agreed that the Purchaser will purchase up to an aggregate
value of ***** of the Company's common stock, par value $0.10 per share (the
"Common Stock"); and

        c.      The Company and Purchaser are executing and delivering this
agreement in reliance upon the exemption from registration under the Securities
Act of 1933, as amended, by virtue of Section 4(2) thereof and Regulation D, as
promulgated thereunder by the U.S. Securities and Exchange Commission.

        NOW, THEREFORE, in consideration of the premises and mutual promises
made herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged the parties hereto, intending to be
legally bound, hereby confirm their respective agreements as follows:

        1.      AUTHORIZATION AND PURCHASE OF THE SHARES.

                1.1     Authorization of the Shares. The Company's Board of
Directors has authorized the issuance by the Company and the sale to the
Purchaser of fully paid and nonassessable shares of Common Stock, all as more
fully described, and subject to the conditions set forth, below (the "Shares").

                1.2     Purchase of Shares. Subject to the terms and conditions
set forth below, the Company agrees to issue to Purchaser, and Purchaser hereby
agrees to purchase from the Company, the Shares in consideration for the rights
granted to the Company under the Collaboration Agreement and for cash
consideration at such times and in the amounts as more fully described, and
subject to the conditions set forth, below. A copy of the Collaboration

                                        1

<PAGE>

CONFIDENTIAL TREATMENT REQUEST                                    EXECUTION COPY

Agreement, in the form to be executed and delivered by each of Purchaser and the
Company on the date hereof, is annexed hereto as Exhibit 1.

                                        2

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

        2.      THE CLOSING.

                2.1     Closing Dates. Each closing of the purchase and sale of
the Shares to Purchaser hereunder (the "Closings") shall be held at the offices
of the Company, within thirty (30) days of the achievement of each of the
milestones referenced in Section 2.2 hereof, at 5:00 p.m., Massachusetts time,
or at such other date, time and place as the Company and Purchaser mutually
agree upon, orally or in writing (the "Closing Dates"). On each Closing Date,
the Company shall deliver to Purchaser the Shares registered in the name of
Purchaser.

                2.2     Schedule of Closings. Purchaser shall purchase at the
Fair Market Value per share (a) that number of shares equal to ***** upon
satisfaction of the *****; (b) that number of shares ***** upon satisfaction of
*****; and (c) that number of shares equal to *****. For the purposes of this
Agreement, "Fair Market Value" means 125% of the average closing stock price
over the period of time *****. The Company and Purchaser acknowledge and agree
that at no time shall Purchaser's equity interest in the Company ***** of the
outstanding shares of the Company's Common Stock. If, at the time of a Closing,
the requirement to purchase Shares at such Closing, in accordance with the
milestones set forth above would result in Purchaser owning an equity interest
***** of the outstanding shares of the Company's Common Stock at such time,
Purchaser's obligation to purchase such Shares as such Closing shall be limited
to that amount of Common Stock that would result in the cumulative purchase of
an equity interest of ***** of the Company's Common Stock, and Purchaser shall
have no further obligation to purchase additional stock at a later date or of
any other form of payment to the Company with respect to that particular
milestone.

                2.3     Option of the Company. Notwithstanding anything in this
Agreement to the contrary, the obligation of the Company to sell Shares to
Purchaser upon satisfaction of the conditions set forth above will be at the
option of the Company. If the Company elects not to sell Shares to Purchaser,
then it must deliver written notice to Purchaser of such election within ten
business days of the date the Company is notified of satisfaction of the
applicable milestone. If the Company so elects, Purchaser will be relieved of
its obligation to purchase such Shares and will be under no further obligation
to purchase such Shares at a future date or make any other form of payment to
the Company with respect to that particular milestone.

                                        3

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

        3.      CONDITIONS OF THE PURCHASER'S OBLIGATIONS.

                The obligations of Purchaser to the Company under this Agreement
are subject to the fulfillment, on or before each Closing, of each of the
following conditions, unless otherwise waived by Purchaser:

                3.1     Representations and Warranties. The representations and
warranties of the Company contained in Section 5 shall be true and correct in
all material respects on and as of such Closing with the same effect as though
such representations and warranties had been made on and as of the date of such
Closing.

                3.2     Performance. The Company shall have performed and
complied in all material respects with all covenants, agreements, obligations
and conditions contained in this Agreement that are required to be performed or
complied with by it on or before such Closing.

                3.3     Qualifications. All authorizations, approvals or
permits, if any, of any governmental authority or regulatory body of the United
States or of any state or other self-regulatory body that are required to be in
effect as of such Closing in connection with the lawful issuance and sale of the
Shares pursuant to this Agreement shall be obtained and effective as of such
Closing.

                3.4     Consents and Waivers. The Company shall have obtained
any and all consents and waivers necessary or appropriate for consummation of
the transactions contemplated by this Agreement (except as such as may be
properly obtained subsequent to such Closing).

                3.5     Compliance Certificate. The President of the Company
shall deliver to Purchaser at each Closing a certificate certifying that the
conditions specified in Sections 3.1, 3.2, 3.3, 3.4, 3.6, 3.9 and 3.10 have been
fulfilled.

                3.6     Collaboration Agreement. Purchaser and the Company shall
have executed and delivered the Collaboration Agreement and the Collaboration
Agreement shall be in full force and effect. Purchaser shall have made the
applicable milestone payment under the Collaboration Agreement corresponding to
such Closing, whether by payment or pursuant to any offset provided under the
Collaboration Agreement.

                3.7     Opinion of Company Counsel. Purchaser shall have
received from outside counsel for the Company a legal opinion, dated as of the
applicable Closing Date, containing the opinions attached hereto as Exhibit 3.7,
subject, in each case, to such outside counsel's customary exceptions,
qualifications and assumptions.

                3.8     Bankruptcy Proceeding. Neither the Company nor any of
its Subsidiaries (as defined below) (a) has instituted or consented to the
institution of any proceeding under a Debtor Relief Law relating to it or to all
or any material part of its respective property; (b) is unable or has admitted
in writing its inability to pay its debts as they mature; (c) has made an
assignment for the benefit of creditors; or (d) applied for or consented to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material part of its
property; nor has any receiver, trustee, custodian, conservator,

                                        4

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

liquidator, rehabilitator or similar officer been appointed without the
application or consent of the Company or any of its Subsidiaries. No proceeding
under a Debtor Relief Law relating to the Company or any of its Subsidiaries or
to all or any part of their respective property has been instituted without the
consent of the Company or any of its Subsidiaries and continued undismissed or
unstayed for 30 days. For the purposes of this Agreement, "Debtor Relief Laws"
means the Bankruptcy Code of the United States of America, as amended from time
to time, and all other applicable liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief laws from
time to time in effect affecting the rights of creditors generally.

                3.9     Nasdaq Listing. The Shares to be purchased at such
Closing shall have been listed on The Nasdaq Stock Market, Inc. Nation Market.

                3.10    Change of Control. Between the date hereof and the
applicable Closing, there shall not have been a Change of Control of the
Company. For the purposes of this Agreement, "Change of Control" shall have the
meaning set forth in the Collaboration Agreement.

        4.      CONDITIONS OF THE COMPANY'S OBLIGATIONS.

                The obligations of the Company to Purchaser under this Agreement
are subject to the fulfillment, on or before each Closing, of each of the
following conditions, unless otherwise waived by Company:

                4.1     Representations and Warranties. The representations and
warranties of Purchaser contained in Section 6 shall be true and correct in all
material respects on and as of such Closing with the same effect as though such
representations and warranties had been made on and as of such Closing.

                4.2     Performance. Purchaser shall have performed and complied
in all material respects with all covenants, agreements, obligations and
conditions contained in this Agreement that are required to be performed or
complied with by it on or before such Closing.

                                        5

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

        5.      REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

                The Company represents and warrants to Purchaser as follows:

                5.1     Organization. The Company is duly organized and validly
existing in good standing under the laws of the jurisdiction of its
organization. Each of the Company and its Subsidiaries (as defined in Rule 405
under the Securities Act of 1933, as amended (the "Securities Act")) has full
power and authority to own, operate and occupy its properties and to conduct its
business as presently conducted and as described in the SEC Documents
(hereinafter defined) and is registered or qualified to do business and in good
standing in each jurisdiction in which it owns or leases property or transacts
business and where the failure to be so qualified would have a material adverse
effect upon the business, financial condition, properties or operations of the
Company and its Subsidiaries, considered as one enterprise. The Company has no
subsidiaries other than Collaborative Securities Corp. and Collaborative
Genetics, Inc. (each, a "Subsidiary").

                5.2     Due Authorization; Consents. The Company has all
requisite corporate power and has taken all requisite corporate action to
execute and deliver each of this Agreement and the Collaboration Agreement
(collectively, the "Transaction Agreements"), to sell and issue the Shares and
to carry out and perform all of its obligations hereunder and thereunder. Each
of the Transaction Agreements has been duly authorized, executed and delivered
on behalf of the Company and constitutes the valid and binding agreement of the
Company, enforceable in accordance with its terms. All consents, approvals and
authorizations of, and registrations, qualifications and filings with, any
federal or state governmental agency, authority or body, or any third party,
required in connection with the execution, delivery and performance of this
Agreement and the Collaboration Agreement, the valid issuance and sale of the
Shares to be sold pursuant to this Agreement and the consummation of the
transactions contemplated hereby and thereby have been obtained or will be
obtained as of each Closing and are effective as of each Closing, except for any
securities filings required to be made under federal or state securities laws.

                5.3     Validity of Securities. The Shares, when sold against
the consideration therefore as provided herein, will be duly authorized and
validly issued, fully paid and nonassessable and free of any liens or
encumbrances arising through the Company. The issuance and delivery of the
Shares is not subject to preemptive or any similar rights of the stockholders of
the Company or any liens or encumbrances arising through the Company.

                5.4     SEC Documents; Financial Statements. Each of (a) the
Company's Annual Report on Form 10-K for the most recently completed fiscal
year, (b) the Company's most recently filed Notice of Annual Meeting of
Stockholders and Proxy Statement and (c) the Company's Quarterly Reports on Form
10-Q, and all other documents, if any, filed by the Company since the date of
the most recently filed Annual Report on Form 10-K pursuant to the reporting
requirements of the Securities Exchange Act of 1934, as amended (the "Exchange
Act;" collectively, the above documents shall be referred to hereinafter as the
"SEC Documents"), as filed by the Company with the Securities and Exchange
Commission (the "SEC") or incorporated by reference therein complied in all
material respects to the requirements of the Exchange Act, and the rules,
regulations and instructions of the SEC thereunder. Each of

                                        6

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CONFIDENTIAL TREATMENT REQUEST

the SEC Documents, as of its respective filing date, contained no untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements made therein, in the light of
the circumstances in which they were made, not misleading. The financial
statements of the Company included in the SEC Documents (the "Financial
Statements") comply as to form in all material respects with applicable
accounting requirements and with the published rules and regulations of the SEC
with respect thereto. Except as may be indicated in the Financial Statements or
the notes thereto, the Financial Statements have been prepared in accordance
with generally accepted accounting principles ("GAAP") consistently applied and
fairly present the consolidated financial position and operating results of the
Company and its Subsidiaries as of the dates, and for the periods, indicated
therein.

                5.5     Non-Contravention. The execution and delivery of the
Agreement, the issuance and sale of the Shares to be sold by the Company under
this Agreement, the fulfillment of the terms of the Transaction Agreements and
the consummation of the transactions contemplated hereby and thereby will not
(A) conflict with or constitute a violation of, or default (with the passage of
time or otherwise) under, (i) any bond, debenture, note or other evidence of
indebtedness, or under any lease, contract, indenture, mortgage, deed of trust,
loan agreement, joint venture or other agreement or instrument to which the
Company or any Subsidiary is a party or by which it or any of its Subsidiaries
or their respective properties are bound, (ii) the charter, by-laws or other
organizational documents of the Company or any Subsidiary, or (iii) any law,
administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority applicable to the Company or any
Subsidiary or their respective properties, except where, in the cases of clauses
(i) and (iii) of this Section 5.5, any such conflict, violation, or default
would not, individually or in the aggregate have a material adverse effect on
the Company, or (B) result in the creation or imposition of any lien,
encumbrance, claim, security interest or restriction whatsoever upon any of the
properties or assets of the Company or any Subsidiary or an acceleration of
indebtedness pursuant to any obligation, agreement or condition contained in any
bond, debenture, note or any other evidence of indebtedness or any indenture,
mortgage, deed of trust or any other agreement or instrument to which the
Company or any Subsidiary is a party or by which any of them is bound or to
which any of the property or assets of the Company or any Subsidiary is subject.

                5.6     Liabilities. Except as set forth in the SEC Documents,
the Company has no material indebtedness for borrowed money that the Company has
directly or indirectly created, incurred, assumed, or guaranteed, or with
respect to which the Company has otherwise become directly or indirectly liable.

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CONFIDENTIAL TREATMENT REQUEST

                5.7     Capitalization. The capitalization of the Company is as
set forth in the SEC Documents. Since the date of the most recent SEC Document
which includes a full description of the capitalization of the Company, the
Company has not issued any capital stock other than pursuant to (i) employee
benefit plans disclosed in the SEC Documents, or (ii) outstanding warrants or
options disclosed in the SEC Documents. The outstanding shares of capital stock
of the Company have been duly and validly issued and are fully paid and
nonassessable, have been issued in compliance with all federal and state
securities laws, and were not issued in violation of any preemptive rights or
similar rights to subscribe for or purchase securities. Except as a result of
the purchase and sale of the Shares and except as disclosed in Schedule 5.7,
which schedule shall only be required to be provided at each Closing, or as set
forth in or contemplated by the SEC Documents, there are no outstanding rights
(including, without limitation, preemptive rights), warrants or options to
acquire, or instruments convertible into or exchangeable for, any unissued
shares of capital stock or other equity interest in the Company or any
Subsidiary, or any contract, commitment, agreement, understanding or arrangement
of any kind to which the Company is a party or of which the Company has
knowledge and relating to the issuance or sale of any capital stock of the
Company or any Subsidiary, any such convertible or exchangeable securities or
any such rights, warrants or options. Without limiting the foregoing, no
preemptive right, co-sale right, right of first refusal, registration right, or
other similar right exists with respect to the Shares or the issuance and sale
thereof. No further approval or authorization of any stockholder, the Board of
Directors of the Company or others is required for the issuance and sale of the
Shares. The Company owns the entire equity interest in each of its Subsidiaries,
free and clear of any pledge, lien, security interest, encumbrance, claim or
equitable interest, other than as described in the SEC Documents. Except as
disclosed in the SEC Documents, there are no stockholders agreements, voting
agreements or other similar agreements with respect to the Common Stock to which
the Company is a party or, to the knowledge of the Company, between or among any
of the Company's stockholders.

                5.8     Legal Proceedings. There is no material legal or
governmental proceeding pending or, to the knowledge of the Company, threatened
to which the Company or any Subsidiary is or may be a party or of which the
business or property of the Company or any Subsidiary is subject that is not
disclosed in the SEC Documents.

                5.9     No Violations. Neither the Company nor any Subsidiary is
in violation of its charter, bylaws, or other organizational document, or in
violation of any law, administrative regulation, ordinance or order of any court
or governmental agency, arbitration panel or authority applicable to the Company
or any Subsidiary (including without limitation, all foreign, federal, state and
local laws relating to taxes, environmental protection, occupational health and
safety, product quality and safety and employment and labor matters), which
violation, individually or in the aggregate, would be reasonably likely to have
a material adverse effect on the business or financial condition of the Company
and its Subsidiaries, considered as one enterprise, or is in default (and there
exists no condition which, with the passage of time or otherwise, would
constitute a default) in any material respect in the performance of any bond,
debenture, note or any other evidence of indebtedness in any indenture,
mortgage, deed of trust or any other material agreement or instrument to which
the Company or any Subsidiary is a party or by which the Company or any
Subsidiary is bound or by which the properties of the Company or any Subsidiary
are bound.

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CONFIDENTIAL TREATMENT REQUEST

                5.10    Title to Properties and Assets. Except as set forth in
the SEC Documents, the Company has good and marketable title to its properties
and assets held in each case subject to no lien of any kind except for liens for
taxes that are not yet due and payable or, in the case of leased real property,
easements and other rights or restrictions of record that do not materially
impair the use or value of such property to the Company. With respect to the
property and assets it leases, the Company is in material compliance with such
leases and, to the Company's knowledge, the Company holds valid leasehold
interests in such assets free of any liens, encumbrances, security interests or
claims of any party other than the lessors of such property and assets.

                5.11    Intellectual Property. (i) Each of the Company and its
Subsidiaries owns or possesses sufficient rights to use all patents, patent
rights, trademarks, copyrights, licenses, inventions, trade secrets, trade names
and know-how (collectively, "Intellectual Property") described or referred to in
the SEC Documents as owned by it or that are necessary for the conduct of its
business as now conducted or as proposed to be conducted as described in the SEC
Documents except where the failure to currently own or possess would not have a
material adverse effect on the condition (financial or otherwise), earnings,
operations, business or business prospects of the Company and its Subsidiaries
considered as one enterprise, and (ii) neither the Company nor any of its
Subsidiaries has received any notice of, or has any knowledge of, any violation
or infringement by a third party of any Intellectual Property that, individually
or in the aggregate, would have a material adverse effect on the financial
condition or business of the Company and its Subsidiaries considered as one
enterprise.

                5.12    No Infringement. Except as disclosed in the SEC
Documents, to the Company's knowledge, the Company has not violated or
infringed, and, to the Company's knowledge, is not currently violating or
infringing, and the Company has not received any communications alleging that
the Company (or any of its employees or consultants) has violated or infringed
or, by conducting its business as currently proposed, would violate or infringe,
any Intellectual Property of any other person or entity.

                5.13    No Material Adverse Change. Since the date of the latest
Annual Report on Form 10-K or Quarterly Report on Form 10-Q, there has not been
(i) any material adverse change in the financial condition or operating results
of the Company or its Subsidiaries, (ii) any material adverse event affecting
the Company or its Subsidiaries, (iii) any obligation, direct or contingent,
that is material to the Company and its Subsidiaries considered as one
enterprise, incurred by the Company or any Subsidiary, except obligations
incurred in the ordinary course of business (iv) any dividend or distribution of
any kind declared, paid or made on the capital stock of the Company or any of
its Subsidiaries, or (v) any loss or damage (whether or not insured) to the
physical property of the Company or any of its Subsidiaries which has been
sustained which has a material adverse effect on the condition (financial or
otherwise), operating results, operations or business of the Company and its
Subsidiaries considered as one enterprise.

                5.14    Disclosure. No representation or warranty by the Company
in the Transaction Agreements or in any statement or certificate signed by any
officer of the Company furnished or to be furnished to the Purchaser pursuant to
this Agreement contains or will contain any untrue statement of a material fact
or omits or will omit to state any material fact required to

                                        9

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

be stated therein or necessary in order to make the statements therein, in light
of the circumstances in which they are made, not misleading.

                5.15    Exchange Market Compliance. The Company's Common Stock
is listed on the Nasdaq Stock Market, Inc. National Market (the "Nasdaq National
Market") or such other nationally recognized exchange or quotation system,
including, but not limited to, the Nasdaq SmallCap Market or the OTC Bulletin
Board. The Company has taken no action that is likely to have the effect of
causing the Common Stock to be delisted from the Nasdaq National Market or such
other nationally recognized exchange or quotation system. The Company's Common
Stock is registered pursuant to Section 12(g) of the Exchange Act, and the
Company has taken no action that is likely to have the effect of terminating the
registration of the Common Stock under the Exchange Act, nor has the Company
received any notification that the SEC is contemplating terminating such
registration.

                5.16    Listing. The Company shall comply with all requirements
of the National Association of Securities Dealers, Inc. ("NASD") with respect to
the issuance of the Shares and the listing thereof on the Nasdaq National Market
or other trading market on which the Common Stock is listed or quoted, if
applicable.

        6.      REPRESENTATIONS AND WARRANTIES OF PURCHASER.

                Purchaser hereby represents and warrants to the Company as
follows:

                6.1     Investment Experience. Purchaser is an "accredited
investor" within the meaning of Rule 501 under the Securities Act. Purchaser is
aware of the Company's business affairs and financial condition and has, in
reliance upon the representations and warranties contained in this Agreement,
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Shares. Purchaser has such business and
financial experience as is required to give it the capacity to protect its own
interests in connection with the purchase of the Shares. Purchaser has had the
opportunity to ask questions and receive answers concerning the terms and
conditions of its purchase of the Shares and to obtain any additional
information from the Company that is necessary to verify the information
furnished in the SEC Documents.

                6.2     Investment Intent. Purchaser is purchasing the Shares
for investment for its own account only and not with a view to, or for resale in
connection with, any "distribution" thereof within the meaning of the Securities
Act. Purchaser understands that the Shares have not been registered under the
Securities Act or registered or qualified under any state securities law in
reliance on specific exemptions therefrom, which exemptions may depend upon,
among other things, the bona fide nature of Purchaser's investment intent as
expressed herein.

                6.3     Due Authorization. Purchaser has all requisite corporate
power and has taken all requisite corporate action to execute and deliver this
Agreement and to carry out and perform all of its obligations hereunder. This
Agreement has been duly authorized, executed and delivered on behalf of
Purchaser and constitutes the valid and binding agreement of Purchaser,
enforceable in accordance with its terms, except (i) as limited by applicable
bankruptcy,

                                       10

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

insolvency, reorganization or similar laws relating to or affecting the
enforcement of creditors' rights generally and (ii) as limited by equitable
principles generally.

                6.4     No Legal, Tax or Investment Advice. Purchaser
understands that nothing in this Agreement or any other materials presented to
Purchaser in connection with the purchase and sale of the Shares constitutes
legal, tax or investment advice. Purchaser has consulted such legal, tax and
investment advisors as it, in its sole discretion, has deemed necessary or
appropriate in connection with its purchase of the Shares.

        7.      RESTRICTIONS ON TRANSFER OF SECURITIES; REGISTRATION OF THE
                SHARES; COMPLIANCE WITH THE SECURITIES ACT.

                7.1     Restrictions on Transferability Prior to Registration.
The Securities shall not be offered, resold, pledged or otherwise transferred
from Purchaser to a transferee other than (i) in accordance with the provisions
of this Section 7 or (ii) in a transaction meeting the requirements of Rule 144
under the Securities Act ("Rule 144") or otherwise in accordance with the
Securities Act and the applicable securities laws of any state of the United
States or any other applicable jurisdiction, provided that Purchaser provides
prior notice to the Company and, if reasonably requested by the Company,
delivers to the Company an opinion of counsel, reasonably satisfactory to the
Company, that such disposition will not require registration under the
Securities Act. Notwithstanding the foregoing, the Company hereby consents to
and agrees to register on the books of the Company and with any transfer agent
for the securities of the Company, any transfer of Shares by Purchaser to an
"affiliate" (as such term is defined in Rule 144) of such Purchaser, provided
that the transferee certifies to the Company that it is an "accredited investor"
within the meaning of Rule 501 under the Securities Act and that it is acquiring
the Shares solely for investment purposes. As a condition of such transfer, any
such transferee shall agree in writing to be bound by the terms of Section 7 of
this Agreement and, so long as Purchaser transfers ***** of the Shares held by
it at such time to the transferee, such transferee shall have the rights of
Purchaser under Section 7 of this Agreement; provided, however, with respect to
any subsequent transfer of Shares by any such subsequent transferee, such Shares
shall not be considered Registrable Securities (as defined below) under this
Agreement. Purchaser will be required to notify any subsequent transferee of any
then existing resale restrictions as set forth above and to comply with the
provisions of this Section 7.

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<PAGE>

CONFIDENTIAL TREATMENT REQUEST

                7.2     Restrictive Legends. Each certificate representing any
of the Shares (or any other securities issued in respect of the Shares upon any
stock split or stock dividend) shall (unless otherwise permitted by the
provisions hereof) be stamped or otherwise imprinted with a legend substantially
in the following form (in addition to any legend required under applicable
federal or state securities laws):

        THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR
        INVESTMENT AND HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
        1933, AS AMENDED. THE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE
        ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. THE SECURITIES
        REPRESENTED BY THIS CERTIFICATE AND THE RIGHTS OF THE HOLDER HEREOF ARE
        SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OTHER RESTRICTIONS, AND
        THE HOLDER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE (INCLUDING
        ANY FUTURE HOLDER) IS BOUND BY THE TERMS OF A STOCK PURCHASE AGREEMENT
        BETWEEN THE ORIGINAL PURCHASER AND THE COMPANY (COPIES OF WHICH MAY BE
        OBTAINED FROM THE COMPANY).

        Such legend shall be removed by delivery of substitute certificates
without legend: (i) if the Shares have been sold pursuant to an effective
registration statement, or (ii) if Rule 144(k) may be utilized by the seller of
such security, or (iii) if such legend is not required under applicable
requirements of the Securities Act.

                7.3     Registration Procedures and Expenses.

                        (a)     Shelf Registration.

                        (i)     Shelf Registration Statement. Upon the request
of the Holders of a majority of Registrable Securities (as defined below), the
Company shall prepare and file or cause to be prepared and filed with the SEC
promptly, but in no event later than ten business days, after receipt of such
request a Registration Statement (as defined below) for an offering to be made
on a delayed or continuous basis pursuant to Rule 415 of the Securities Act
registering the resale from time to time by the Holders (as defined below) of
all of the Registrable Securities acquired by the Holders at such Closing (each
a "Shelf Registration Statement"). *****. For the purposes of this Agreement,
"Registration Statement" shall mean any registration statement under the
Securities Act of the Company that covers any of the Registrable Securities
pursuant to the provisions of this Agreement, including the related Prospectus,
all amendments and supplements to such registration statement, including pre-
and post-effective amendments, all exhibits thereto and all material
incorporated by reference or deemed to be incorporated by reference in such
registration statement; "Registrable Securities" shall mean the Shares and any
shares of common stock which may be issued or distributed with respect to, or in
exchange for, such Registrable Securities pursuant to a stock dividend, stock
split or other distribution, merger, consolidation, recapitalization or
reclassification or similar transaction; "Holders" shall mean any person owning
or having the right to acquire Registrable Securities or any assignee thereof in
accordance with Sections 7.1 or 9.4; and "Prospectus" shall mean the prospectus
included in any Registration Statement (including a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A),

                                       12

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

as amended or supplemented by any prospectus supplement, with respect to the
terms of the offering of any portion of the Registrable Securities covered by
such Registration Statement and all other amendments and supplements to such
prospectus, including post-effective amendments, and all material incorporated
by reference or deemed to be incorporated by reference in such prospectus. The
Shelf Registration Statement shall be on Form S-3 or, if Form S-3 is
unavailable, another appropriate form permitting registration of such
Registrable Securities for resale by such Holders in accordance with the methods
of distribution set forth in the Shelf Registration Statement (such methods of
distribution to include underwritten offerings and other methods designated in
writing by the Holders pursuant to Section 7.3(d)). The Company shall not permit
any securities other than the Registrable Securities to be included in the Shelf
Registration Statement. The Company shall use commercially reasonable efforts to
cause the Shelf Registration Statement to be declared effective under the
Securities Act by the date (the "Shelf Effectiveness Deadline Date") that, if
the Registration Statement is to be filed on Form S-3, is thirty (30) days after
receipt of the request for such filing, and, if the Registration Statement is to
be filed on Forms S-1, S-2, or any other appropriate form permitting
registration of such Registrable Securities for resale by such Holders, is
ninety (90) days after receipt of the request for such filing. The Company shall
use commercially reasonable efforts to keep the Shelf Registration Statement
continuously effective under the Securities Act (subject to Section 7.3(a)(v))
until the earlier of (x) the second anniversary of the date such Shelf
Registration Statement is declared effective and (y) the sale of all of the
Registrable Securities included in the Shelf Registration Statement (such period
as may be extended in accordance with the proviso in Section 7.3(a)(ii), the
"Shelf Effectiveness Period"). Each Holder agrees that if such Holder wishes to
sell Registrable Securities pursuant to the Shelf Registration Statement and
related Prospectus, it will do so only in accordance with this Section 7.3(a).

                        (ii)    Subsequent Shelf Registrations. If the initial
Shelf Registration Statement or any Subsequent Shelf Registration Statement
ceases to be effective for any reason at any time during the Shelf Effectiveness
Period (other than because of the sale of all of the Registrable Securities),
the Company shall use commercially reasonable efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall within twenty (20) days of such cessation of effectiveness (or, if the
cessation of effectiveness occurs during a Deferral Period, within five Business
Days of the end of such Deferral Period) amend the Shelf Registration Statement
in a manner reasonably expected by the Company to obtain withdrawal of the order
suspending the effectiveness thereof, or file an additional "shelf" Registration
Statement pursuant to Rule 415 of the Securities Act covering all of the
Registrable Securities (a "Subsequent Shelf Registration Statement") to permit
registration of the Registrable Securities. If a Subsequent Shelf Registration
Statement is filed, the Company shall use its commercially reasonable efforts to
cause the Subsequent Shelf Registration Statement to be declared effective under
the Securities Act as soon as reasonably practicable after such filing or, if
filed during a Deferral Period, immediately after completion of the Deferral
Period, and to keep such Registration Statement continuously effective until the
end of the Shelf Effectiveness Period; provided, however, that, unless all
Registrable Securities included on the Shelf Registration Statement have been
sold, the Shelf Effectiveness Period shall be extended by the aggregate number
of days such Registration Statement was not effective as a result of Deferral
Periods or Transaction Delay Periods. As used herein, the term "Shelf
Registration Statement" means the Shelf Registration Statement and any
Subsequent Shelf Registration Statement.

                                       13

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

                        (iii)   Amendments to Shelf Registration Statement. The
Company shall promptly supplement and amend the Shelf Registration Statement and
any related Prospectus if required by the rules, regulations or instructions
applicable to the registration form used by the Company for such Shelf
Registration Statement, if required by the Securities Act or as requested by
Purchaser or by the Shelf Underwriter.

                        (iv)    Underwritten Syndicated Offerings.

                                (A)     If one or more Holders proposes to sell
Registrable Securities in an underwritten syndicated offering pursuant to the
Shelf Registration Statement, such Holder or Holders may request the Company in
writing to effect such underwritten syndicated offering by supplement or
amendment to the Shelf Registration Statement, stating the number of Registrable
Securities proposed to be sold. The Company and all Holders proposing to
distribute Registrable Securities through such underwritten syndicated offering
shall enter into an underwriting agreement in customary form with the
underwriters for the offering.

                                (B)     Any underwritten syndicated offering
requested pursuant to this Section 7.3(a)(iv) shall be underwritten by an
underwriter selected by the Holders (the "Shelf Underwriter").

                                (C)     Notwithstanding any provision of this
Agreement to the contrary, the Company shall not be required to effect an
offering pursuant to this Section 7.3(a)(iv) during any Transaction Delay Period
(as defined below) if, promptly, but in no event later than three business days,
following the Company's receipt of a request from a Holder to effect an offering
pursuant to this Section 7.3(a)(iv), the Company furnishes such Holder with a
certificate signed by an executive officer of the Company (a "Transaction Delay
Notice") to the effect that the Company prior to the Company's receipt of such
request, had commenced preparations for the filing of a registration statement
pertaining to a public offering of securities of the Company for the account of
the Company (a "Company Offering"). Any "Transaction Delay Period" shall be the
period commencing on the day the Company furnishes a Transaction Delay Notice
and continuing until the ***** following the effectiveness of the registration
statement relating to the applicable Company Offering, (B) promptly after the
abandonment of the applicable Company Offering, or (C) ***** after the date of
the Transaction Delay Notice. The Company may deliver no more than *****
Transaction Delay Notices in any twelve-month period, and the aggregate duration
of all Transaction Delay Periods shall not exceed ***** in any twelve-month
period. The Company shall use commercially reasonable efforts to cause any such
registration statement relating to any such Company Offering to become effective
as soon as possible.

                                (D)     *****

                                (E)     If in an underwritten syndicated
offering requested pursuant to this Section 7.3(a)(iv), the Shelf Underwriter
reasonably advises the Company in writing that, in its opinion, the number of
Registrable Securities requested to be included in such offering exceeds the
number that can be sold in such offering at a price reasonably related to the
then current market value of such securities, there shall be included in such
offering only the

                                       14

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

Registrable Securities that the Shelf Underwriter so advises may be sold at a
price reasonably related to the then current market value of such securities.

                        (v)     Suspension of Shelf Registration Statement. Upon
(A) the issuance by the SEC of a stop order suspending the effectiveness of the
Shelf Registration Statement or the initiation of proceedings with respect to
the Shelf Registration Statement under Section 8(d) or 8(e) of the Securities
Act or (B) the occurrence of a Material Event (as defined below) or the
non-availability of financial statements required in the Shelf Registration
Statement, the Company shall (i) in the case of clause (B) above, subject to the
next to last sentence of this Section 7.3(a)(v), as promptly as practicable
prepare and file a post-effective amendment to the Shelf Registration Statement
or a supplement to the related Prospectus or any document incorporated therein
by reference or file any other required document that would be incorporated by
reference into the Shelf Registration Statement and Prospectus so that such
Shelf Registration Statement does not contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, and the related
Prospectus does not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, as thereafter delivered to the purchasers of the
Registrable Securities being sold thereunder, and, in the case of a
post-effective amendment to the Shelf Registration Statement, subject to the
next to last sentence of this Section 7.3(a)(v), use commercially reasonable
efforts to cause it to be declared effective as soon as possible, and (ii) give
notice to the Holders named as selling security holders in the Prospectus that
the availability of the Shelf Registration Statement is suspended (a "Deferral
Notice"). Upon receipt of any Deferral Notice, each Holder agrees not to sell
any Registrable Securities pursuant to the Registration Statement until such
Holder's receipt of copies of the supplemented or amended Prospectus provided
for in clause (i) above, or until it is advised in writing by the Company that
the Prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference
in such Prospectus. The Company will use commercially reasonable efforts to
ensure that the use of the Prospectus may be resumed (x) in the case of clause
(A) above, as promptly as is practicable, but ***** after the Deferral Notice is
given to the Holders, or (y) in the case of clause (B) above, as soon as in the
good faith judgment of the Company the public disclosure of such Material Event
would not be prejudicial to or contrary to the interests of the Company, but
***** after the Deferral Notice is given to the Holders. The period during which
the availability of the Shelf Registration Statement and any related Prospectus
is suspended pursuant to Section 7.3(a)(v) (the "Deferral Period") shall not
exceed ***** in any three (3) month period and ***** during the Shelf
Effectiveness Period. For the purposes of this Agreement, a "Material Event"
shall mean any event or the existence of any fact as a result of which the
Company shall determine in its reasonable discretion that a Registration
Statement shall contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the
statements therein not misleading, or any Prospectus shall contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading (including, in any such
case, as a result of the non-availability of financial statements).

                                       15

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

                        (b)     Holders Incidental Registration. Subject to
Section 7.3(f), the Company determines, in its sole discretion, that it shall
file a registration statement under the Securities Act (other than (i) a
registration statement providing for an offering on a delayed or continuous
basis pursuant to Rule 415 of the Securities Act or (ii) a registration
statement on Form S-4 or S-8 or any successor or similar forms) registering an
underwritten offering of Common Stock for cash consideration on any form that
also would permit the registration of the Registrable Securities and such filing
is to be on its behalf and/or on behalf of selling holders of the Company's
securities, the Company shall each such time promptly give each Holder written
notice of such determination setting forth the date on which the Company
proposes to file such registration statement, and advising each Holder of its
right to have Registrable Securities included in such registration. The Company
will select the managing underwriter and all other underwriters in any
underwritten offering pursuant to this Section 7.3(b). Upon the written request
of any Holder received by the Company no later than ten (10) days after the date
of the Company's notice, the Company shall use commercially reasonable efforts
to cause to be registered under the Securities Act all of the Registrable
Securities that each such Holder has so requested to be registered; provided
that if, at any time after giving written notice of its intention to register
any securities and prior to the effective date of the registration statement
filed in connection with such registration, the Company shall determine for any
reason not to proceed with the proposed registration of the securities to be
sold by it, the Company may, at its election, give written notice of such
determination to each Holder of Registrable Securities and, thereupon, shall be
relieved of its obligation to register any Registrable Securities in connection
with such registration (but not from its obligation to pay the registration
expenses pursuant to Section 7.3(e) in connection therewith). If, in the written
opinion of the managing underwriter, the total amount of such securities to be
so registered, including such Registrable Securities, will exceed the maximum
amount of the Company's securities that can be marketed either (a) at a price
reasonably related to the then current market value of such securities, or (b)
without otherwise materially and adversely affecting the entire offering, then
the Company shall include in such registration first (1st), all the securities
the Company proposes to sell for its own account or is required to register on
behalf of any third party exercising demand registration rights and without
having the adverse effect referred to above, and second (2nd), all Registrable
Securities requested to be included in such registration by the Holders pursuant
to this Section 7.3(b) and all shares of Common Stock requested to be included
by third parties exercising the rights similar to those granted in this Section
7.3(b) up to the number which the Company has been advised can be sold in such
offering without having either of the adverse effects referred to above. The
number of such Registrable Securities requested to be included in such
registration by the Holders pursuant to this Section 7.3(b) shall be limited to
such extent and shall be allocated pro rata among all such requesting Holders
and third parties exercising rights similar to those granted in this Section
7.3(b) on the basis of the relative number of Registrable Securities each such
Holder has requested to be included in such registration and the number of
shares of Common Stock requested to be included in such registration by such
third parties.

                        (c)     Obligations of the Company. Whenever required
under Section 7.3(a) or Section 7.3(b) to use commercially reasonable efforts to
effect the registration of any Registrable Securities, the Company shall, as
expeditiously as possible:

                        (i)     prepare and file with the SEC a Registration
Statement with respect to such Registrable Securities and use commercially
reasonable efforts to cause such

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CONFIDENTIAL TREATMENT REQUEST

Registration Statement to become and remain effective for the period of the
distribution contemplated thereby;

                        (ii)    prepare and file with the SEC such amendments
and supplements to such Registration Statement and the Prospectus used in
connection therewith as may be necessary to keep such Registration Statement
effective for the Shelf Effectiveness Period in the case of the Shelf
Registration Statement or for a period not in excess of sixty (60) days (or such
shorter period during which the distribution of securities thereunder continues)
in the case of all other Registration Statements contemplated by this Agreement,
cause the related Prospectus to be supplemented by any Prospectus supplement
required by applicable law, and as so supplemented to be filed pursuant to the
Securities Act and to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such
Registration Statement in accordance with the intended methods of disposition by
the seller or sellers thereof, and furnish to the Holders of the Registrable
Securities copies of any such amendments and supplements prior to their being
used or filed with the SEC, which amendments and supplements will be subject to
the review of the Holders and their counsel;

                                       17

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CONFIDENTIAL TREATMENT REQUEST

                        (iii)   furnish to the Holders such reasonable numbers
of copies of the Registration Statement and any Prospectus included therein
(including each preliminary Prospectus and any amendments or supplements thereto
(including all exhibits and documents incorporated by reference) in conformity
with the requirements of the Securities Act) and such other documents and
information as they may reasonably request and make available for inspection by
the parties referred to in Section 7.3(c)(iv) below such financial and other
information and books and records of the Company, and cause the officers,
directors, employees, counsel and independent certified public accountants of
the Company to respond to such inquiries, as shall be reasonably necessary, in
the judgment of the respective counsel referred to in such Section 7.3(c)(iv);

                        (iv)    provide (1) the Holders of the Registrable
Securities to be included in such Registration Statement, (2) the Shelf
Underwriter or Demand Underwriter, as applicable, (3) the sales or placement
agent, if any, therefor, (4) counsel for the Shelf Underwriters or Demand
Underwriters or agent, as applicable, and (5) not more than one outside counsel
for all the Holders of such Registrable Securities the opportunity to
participate in the preparation of such Registration Statement, each Prospectus
included therein or filed with the SEC, and each amendment or supplement
thereto, and (a) promptly incorporate in a Prospectus supplement or
post-effective amendment such information as the Shelf Underwriter or Demand
Underwriter, as applicable, its counsel, or such Holders' counsel reasonably
determine is necessary and appropriate to be included therein, (b) make all
required filings of such Prospectus supplement or such post-effective amendment
as soon as practicable after the Company has received notification of the
matters to be incorporated in such Prospectus supplement or post-effective
amendment, and (c) supplement or make amendments to such Registration Statement;

                        (v)     use commercially reasonable efforts to register
or qualify the Registrable Securities covered by such Registration Statement
under such other securities or Blue Sky laws of such jurisdictions within the
United States as the Holders shall request for the distribution of the
Registrable Securities covered by the Registration Statement; provided, however,
that the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business in or to file a general consent to service of
process in any jurisdiction wherein it would not but for the requirements of
this paragraph (v) be obligated to do so;

                        (vi)    promptly notify the selling Holders, the sales
or placement agent, if any, and the Shelf Underwriter or Demand Underwriter, as
applicable, (1) when such Registration Statement, amendment, supplement or
post-effective amendment has been filed, and, with respect to such Registration
Statement or any post-effective amendment, when the same has become effective,
(2) of any comments by the SEC or by any Blue Sky or securities commissioner or
regulator of any state with respect thereto, (3) of the issuance by the SEC of
any stop order suspending the effectiveness of such Registration Statement or
the initiation or threatening of any proceedings for that purpose, or (4) of the
receipt by the Company of any notification with respect to the suspension of the
qualification of the Registrable Securities for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose;

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<PAGE>

CONFIDENTIAL TREATMENT REQUEST

                        (vii)   subject to Sections 7.3(a)(v) use commercially
reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of such Registration Statement and use its commercially reasonable
efforts to cause such Registrable Securities covered by any such Registration
Statement to be registered with or approved by such other governmental agencies
or authorities as may be necessary to enable the Holders to consummate the
disposition of such Registrable Securities;

                        (viii)  furnish on the date that the Registrable
Securities are delivered to the Shelf Underwriter or Demand Underwriter, as
applicable, for sale pursuant to such registration, (1) a signed opinion, dated
such date, of the outside legal counsel representing the Company for the purpose
of such registration, addressed to the Shelf Underwriter or Demand Underwriter,
as applicable, as to such matters as such underwriters may reasonably request
and as would be customary in such a transaction; and (2) letters dated such date
and the date the offering is priced from the independent certified public
accountants of the Company, addressed to the Shelf Underwriter or Demand
Underwriter, as applicable, (i) stating that they are independent certified
public accountants within the meaning of the Securities Act and that, in the
opinion of such accountants, the financial statements and other financial data
of the Company included in the Registration Statement or the Prospectus, or any
amendment or supplement thereto, comply as to form in all material respects with
the applicable accounting requirements of the Securities Act and (ii) covering
such other financial matters with respect to the registration in respect of
which such letter is being given as the Shelf Underwriter or Demand Underwriter,
as applicable, may reasonably request and as would be customary in such a
transaction;

                        (ix)    enter into customary agreements (including,
without limitation, an underwriting agreement in customary form) and take such
other actions as are reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities to be so included in the Registration
Statement;

                        (x)     cooperate with the Holders of the Registrable
Securities and the Shelf Underwriter or Demand Underwriter, as applicable, to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold, and enable such Registrable Securities to be
in such denominations and registered in such names as the Shelf Underwriter or
Demand Underwriter, as applicable, may request at least five Business Days prior
to any sale of the Registrable Securities;

                        (xi)    otherwise comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as
reasonably practicable, but not later than eighteen months after the effective
date of the Registration Statement, an earnings statement covering the period of
at least twelve months beginning with the first full month after the effective
date of such Registration Statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act;

                        (xii)   use commercially reasonable efforts to list the
Registrable Securities covered by such Registration Statement with any
securities exchange on which the Common Stock of the Company is then listed; and

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CONFIDENTIAL TREATMENT REQUEST

                        (xiii)  use commercially reasonable efforts to make
available appropriate senior executive officers of the Company to participate in
customary "road show" presentations that may be reasonably requested by the
Holders in any underwritten syndicated offering; provided that the participation
of such senior executive officers shall not interfere with the conduct of their
duties to the Company.

With respect to registration required pursuant to Section 7.3(a), the period of
distribution of Registrable Securities in a firm commitment underwritten public
offering shall be deemed to extend until each underwriter has completed the
distribution of all securities purchased by it but in no event longer than
forty-five (45) days from the effective date.

                        (d)     Furnish Information. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Agreement that the Holders shall furnish to the Company such information
regarding themselves, the Registrable Securities held by them, and the intended
method of disposition of such securities as the Company shall reasonably request
in writing and as shall be required in connection with the action to be taken by
the Company.

                        (e)     Expenses of Registration.

                        (i)     Shelf and Requested Registration. All expenses
incurred in connection with each registration pursuant to Section 7.3(a),
including without limitation all registration, filing and qualification fees,
word processing, duplicating, printers' and accounting fees (including the
expenses of any special audits or "cold comfort" letters required by or incident
to such performance and compliance), fees of the NASD or listing fees, messenger
and delivery expenses, all fees and expenses of complying with state securities
or Blue Sky laws, and fees and disbursements of counsel for the Company and one
outside legal counsel for the Holders (if such Registration Statement is on Form
S-3, such fees and disbursements for outside legal counsel for the Holders shall
*****, or, if such Registration Statement is on another form permitting
registration of such Registrable Securities for resale by such Holders, such
fees and disbursements shall be limited to reasonable fees and disbursements),
hired to review and oversee any offering, shall be borne by the Company. The
Holders shall bear and pay the underwriting commissions and discounts applicable
to the Registrable Securities offered for their account in connection with any
regulations, filings and qualifications made pursuant to this Agreement.

                        (ii)    Incidental Registration. All expenses other than
underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications of Registrable Securities pursuant to
Section 7.3(b) for each Holder, including without limitation all registration,
filing and qualification fees, word processing, duplicating, printers' and
accounting fees (including the expenses of any special audits or "cold comfort"
letters required by or incident to such performance and compliance), fees of the
NASD or listing fees, messenger and delivery expenses, all fees and expenses of
complying with state securities or Blue Sky laws, and fees and disbursements of
counsel for the Company, shall be paid by the Company. The Holders shall bear
and pay the underwriting commissions and discounts applicable to the Registrable
Securities offered for their account in connection with any regulations, filings
and qualifications

                                       20

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

made pursuant to this Agreement, as well as related fees and disbursements of
counsel or other advisors to Holders.

                        (f)     Underwriting Requirements. In connection with
any underwritten offering, the Company shall not be required under Section
7.3(b) to include Registrable Securities in such underwritten offering unless
the Holder of such Registrable Securities accepts the terms of the underwriting
of such offering that have been reasonably agreed upon between the Company and
the underwriters selected by the Company in accordance with the terms of this
Agreement.

                7.4     Indemnification. For the purpose of this Section 7.4:

                        (a)     the term "Selling Stockholder" shall include
Holders and any "affiliate" (as such term is defined in Rule 144) of any such
Holder, and their respective permitted transferees and assigns;

                        (b)     the term "untrue statement" shall, with respect
to any Registration Statement, include any untrue statement or alleged untrue
statement of a material fact contained in the related Registration Statement, or
any omission or alleged omission to state in the related Registration Statement
a material fact required to be stated therein or necessary to make the
statements therein, not misleading, and, with respect to any Prospectus, include
any untrue statement or alleged untrue statement of a material fact contained in
the related Prospectus, or any omission or alleged omission to state in the
related Prospectus a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading.

                        (i)     The Company agrees to indemnify and hold
harmless the Selling Stockholder (and each person, if any, who controls the
Selling Stockholder within the meaning of Section 15 of the Securities Act, each
officer of the Selling Stockholder and each director of the Selling Stockholder)
from and against any losses, claims, damages or liabilities to which the Selling
Stockholder (or any such officer, director or controlling person) may become
subject (under the Securities Act or otherwise) insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) arise out
of, or are based upon (i) any untrue statement or (ii) any failure by the
Company to fulfill any undertaking included in the related Registration
Statement, and the Company will reimburse the Selling Stockholder promptly as
incurred for any legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim, provided,
however, that the Company shall not be liable in any such case to the extent
that such loss, claim, damage or liability (A) arises out of, or is based upon,
an untrue statement made in conformity with written information furnished to the
Company by the Selling Stockholder specifically for use in preparation of the
Registration Statement or Prospectus (which has not been subsequently corrected
or supplemented), (B) results directly from the failure of the Selling
Stockholder to comply in all material respects with its covenants and agreements
contained in Section 7 hereof respecting sale of the Shares, or (C) arises out
of any statement or omission in any Prospectus that is corrected in any
subsequent Prospectus that was delivered to the Selling Stockholder prior to the
pertinent sale or sales by the Selling Stockholder.

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<PAGE>

CONFIDENTIAL TREATMENT REQUEST

                        (ii)    The Selling Stockholder agrees to indemnify and
hold harmless the Company (and each person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act, each officer of the
Company and each director of the Company) from and against any losses, claims,
damages or liabilities to which the Company (or any such officer, director or
controlling person) may become subject (under the Securities Act or otherwise),
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of, or are based upon, any untrue
statement if such untrue statement was made in conformity with written
information furnished by the Selling Stockholder specifically for use in
preparation of the Registration Statement or Prospectus, and the Selling
Stockholder will reimburse the Company promptly as incurred for any legal or
other expenses reasonably incurred in investigating, defending or preparing to
defend any such action, proceeding or claim, provided, however, that the Selling
Stockholder need not indemnify any of the aforementioned indemnitees for such
losses, claims, damages or liabilities arising from any statement or omission in
any Prospectus that is corrected in any subsequent Prospectus if the subsequent
Prospectus was furnished to the person or entity asserting the loss, claim,
damage or liability prior to the pertinent transaction or transactions. The
Selling Stockholder will reimburse the Company (or such officer, director or
controlling person), as the case may be, for any legal or other expenses
reasonably incurred in investigating, defending or preparing to defend any such
indemnifiable action, proceeding or claim; provided that the Selling
Stockholder's obligation to indemnify the Company shall be limited to the net
amount received by the Selling Stockholder from the sale of the Shares to which
the loss related.

                        (iii)   Promptly after receipt by any indemnified person
of a notice of a claim or the beginning of any action in respect of which
indemnity is to be sought against an indemnifying person pursuant to this
Section 7.4, such indemnified person shall notify the indemnifying person in
writing of such claim or of the commencement of such action, but the omission to
so notify the indemnifying party will not relieve it from any liability which it
may have to any indemnified party under this Section 7.4 (except to the extent
that such omission materially and adversely affects the indemnifying party's
ability to defend such action) or from any liability otherwise than under this
Section 7.4. Subject to the provisions hereinafter stated, in case any such
action shall be brought against an indemnified person, the indemnifying person
shall be entitled to participate therein, and, to the extent that it shall elect
by written notice delivered to the indemnified party promptly after receiving
the aforesaid notice from such indemnified party, shall be entitled to assume
the defense thereof, with counsel reasonably satisfactory to such indemnified
person. After notice from the indemnifying person to such indemnified person of
its election to assume the defense thereof, such indemnifying person shall not
be liable to such indemnified person for any legal expenses subsequently
incurred by such indemnified person in connection with the defense thereof,
provided, however, that if there exists or shall exist a conflict of interest
that would make it inappropriate, in the opinion of counsel to the indemnified
person, for the same counsel to represent both the indemnified person and such
indemnifying person or any "affiliate" or "associate" (as those terms are
defined in Rule 405 promulgated under the Securities Act) thereof, the
indemnified person shall be entitled to retain its own counsel at the expense of
such indemnifying person; provided, however, that no indemnifying person shall
be responsible for the fees and expenses of more than one separate counsel
(together with appropriate local counsel) for all indemnified parties. In no
event shall any indemnifying person be liable in respect of any amounts paid in
settlement of any action unless the indemnifying person shall have approved the
terms of such settlement; provided that

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<PAGE>

CONFIDENTIAL TREATMENT REQUEST

such consent shall not be unreasonably withheld. No indemnifying person shall,
without the prior written consent of the indemnified person, effect any
settlement of any pending or threatened proceeding in respect of which any
indemnified person is or could have been a party and indemnification could have
been sought hereunder by such indemnified person, unless such settlement
includes an unconditional release of such indemnified person from all liability
on claims that are the subject matter of such proceeding.

                        (iv)    If the indemnification provided for in this
Section 7.4 is unavailable to or insufficient to hold harmless an indemnified
party under subsection (i) or (ii) above in respect of any losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) referred
to therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the Company on the one hand and the Selling
Stockholder on the other in connection with the statements or omissions or other
matters which resulted in such losses, claims, damages or liabilities (or
actions in respect thereof), as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among
other things, in the case of an untrue statement, whether the untrue statement
relates to information supplied by the Company on the one hand or the Selling
Stockholder on the other and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such untrue statement. The
Company and the Selling Stockholder agree that it would not be just and
equitable if contribution pursuant to this subsection (iv) were determined by
pro rata allocation (even if Selling Stockholder were treated as one entity for
such purpose) or by any other method of allocation which does not take into
account the equitable considerations referred to above in this subsection (iv).
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
in this subsection (iv) shall be deemed to include any reasonable legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (iv), Selling Stockholder shall not be required to
contribute any amount in excess of the amount by which the net amount received
by Selling Stockholder from the sale of the Shares to which such loss relates
exceeds the amount of any damages which Selling Stockholder has otherwise been
required to pay by reason of such untrue statement. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. Selling Stockholder's obligations
in this subsection to contribute are several in proportion to their sales of
Shares to which such loss relates and not joint.

                        (v)     The parties to this Agreement hereby acknowledge
that they are sophisticated business persons who were represented by counsel
during the negotiations regarding the provisions hereof including, without
limitation, the provisions of this Section 7.4, and are fully informed regarding
said provisions. They further acknowledge that the provisions of this Section
7.4 fairly allocate the risks in light of the ability of the parties to
investigate the Company and its business in order to assure that adequate
disclosure is made in the Registration Statement as required by the Securities
Act and the Exchange Act. The parties are advised that federal or state public
policy as interpreted by the courts in certain jurisdictions may be contrary to
certain of the provisions of this Section 7.4, and the parties hereto hereby
expressly waive and

                                       23

<PAGE>

CONFIDENTIAL TREATMENT REQUEST

relinquish any right or ability to assert such public policy as a defense to a
claim under this Section 7.4 and further agree not to attempt to assert any such
defense.

                7.5     Termination of Conditions and Obligations. The
conditions precedent imposed by this Section 7 upon the transferability of the
Shares shall cease and terminate as to any particular number of the Shares (i)
when such Shares shall have been effectively registered under the Securities Act
and sold or otherwise disposed of in accordance with the intended method of
disposition set forth in the Registration Statement covering such Shares, (ii)
when such Shares are sold pursuant to Rule 144 or (iii) at such time as an
opinion of counsel reasonably satisfactory to the Company shall have been
rendered to the effect that such conditions are not necessary in order to comply
with the Securities Act.

                7.6     Information Available. So long as a Registration
Statement is effective covering the resale of Shares owned by Purchaser, the
Company will furnish to Purchaser:

                        (a)     as soon as practicable after it is available,
one copy of (i) its Annual Report to Stockholders (which Annual Report shall
contain financial statements audited in accordance with generally accepted
accounting principles by a national firm of certified public accountants), (ii)
its Annual Report on Form 10-K and amendments, if any, and (iii) its Quarterly
Reports on Form 10-Q and amendments, if any (the foregoing, in each case,
excluding exhibits);

                        (b)     upon the request of Purchaser, all exhibits
excluded by the parenthetical to subparagraph (a) of this Section 7.6 as filed
with the SEC and publicly available and all other information that is made
available to shareholders; and

                        (c)     promptly upon the request of Purchaser, an
adequate number of copies of the Prospectuses to supply to any other party
requiring such Prospectuses; and the Company, upon the request of Purchaser,
will meet with Purchaser or a representative thereof at the Company's
headquarters, or such other mutually agreed upon location, to discuss all
information relevant for disclosure in a Registration Statement covering the
Shares and will otherwise cooperate with any Purchaser conducting an
investigation for the purpose of reducing or eliminating such Purchaser's
exposure to liability under the Securities Act, including the reasonable
production of information at the Company's headquarters.

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CONFIDENTIAL TREATMENT REQUEST

        8.      COMPANY REPORTS FILED UNDER THE EXCHANGE ACT.

                With a view to making available to Purchaser the benefits of
Rule 144 and other rules or regulations of the SEC that may permit the Purchaser
to sell the Shares without registration, for the first two years in which
Purchaser owns Shares issued in each Closing, the Company covenants and agrees
to (a) comply with all of the reporting requirements of the Exchange Act
applicable to it and shall comply with all other public information reporting
requirements of the SEC that are conditions to the availability of Rule 144 for
the sale of the Shares and (b) furnish to Purchaser, upon request, a written
statement by the Company that it has complied with the reporting requirements of
Rule 144, the Securities Act and the Exchange Act, and such other information as
may be reasonably requested in order to avail the Purchaser of any rule or
regulation of the SEC that permits the selling of any such Shares without
registration.

        9.      MISCELLANEOUS.

                9.1     Waivers and Amendments. The terms of this Agreement may
be waived or amended only with the written consent of the Company and Purchaser.

                9.2     Governing Law; Jurisdiction. This Agreement shall be
construed and enforced in accordance with, and the rights of the parties shall
be governed by, the laws of the State of Delaware without regard to conflict of
laws. The Company and Purchaser each hereby irrevocably submit to the
nonexclusive jurisdiction of any court of the State of Delaware, both state and
federal, for the purpose of any suit, action or other proceeding arising out of
this Agreement.

                9.3     Survival. The covenants and agreements made under
Section 7 of this Agreement shall survive any Closing or any termination of the
Collaboration Agreement.

                9.4     Successors and Assigns. The provisions hereof shall
inure to the benefit of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto. In the event of any merger,
consolidation or acquisition involving the Company in which the Company is not
the surviving entity, the Company's obligations hereunder, including the
continued registration of the Shares pursuant to Section 7 hereof shall be
expressly or by operation of law assumed by the surviving entity.

                9.5     Entire Agreement. The Transaction Agreements constitute
the full and entire understanding and agreement between the parties with regard
to the subject hereof; provided, however, that nothing in the Transaction
Agreements shall be deemed to terminate or supersede the provisions of any
confidentiality and disclosure agreements executed by the parties hereto prior
to the date hereof, which agreements shall continue in full force and effect
until terminated in accordance with their respective terms.

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CONFIDENTIAL TREATMENT REQUEST

                9.6     Notices, etc. All notices and other communications
required or permitted hereunder shall be effective upon receipt and shall be in
writing and may be delivered in person, by facsimile, overnight delivery service
or U.S. mail, in which event it may be mailed by first-class, certified or
registered, postage prepaid, addressed:

        if to Purchaser, at

                        Amgen Inc.
                        One Amgen Center Drive
                        Thousand Oaks, California  91320-1799
                        Attention:  Corporate Secretary
                        Fax:  (805) 449-4531

        or

        if to the Company, at

                        Genome Therapeutics Corp.
                        100 Beaver Street
                        Waltham, Massachusetts  02453
                        Attention:  President
                        Fax:  *****

or in any case at such other address as Purchaser or the Company shall have
furnished to the other in writing.

                9.7     Severability of this Agreement. If any provision of this
Agreement shall be judicially determined to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

                9.8     Delays or Omissions. No delay or omission to exercise
any right, power or remedy accruing to Company or to the Purchaser, upon any
breach or default of any party hereto under this Agreement, shall impair any
such right, power or remedy of Company or the Purchaser nor shall it be
construed to be a waiver of any such breach or default, or an acquiescence
therein, or of any similar breach of default thereafter occurring; nor shall any
waiver of any other breach or default theretofore or thereafter occurring. Any
waiver, permit, consent or approval of any kind or character on the part of
Company or the Purchaser of any breach of default under this Agreement or any
waiver on the part of Company or the Purchaser of any provisions or conditions
of this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this
Agreement, or by law or otherwise afforded to Company or the Purchaser shall be
cumulative and not alternative.

                9.9     Titles and Subtitles. The titles of the paragraphs and
subparagraphs of this Agreement are for convenience of reference and shall not,
by themselves, determine the construction of this Agreement.

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<PAGE>

CONFIDENTIAL TREATMENT REQUEST

                9.10    Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which
together shall constitute one instrument.

                9.11    Remedies. In addition to being entitled to exercise all
rights provided herein or granted by law, including recovery of damages, each of
the Purchaser and the Company will be entitled to specific performance under
this Agreement. The parties agree that monetary damages may not be adequate
compensation for any loss incurred by reason of any breach of obligations
described in the foregoing sentence and hereby agrees to waive in any action for
specific performance of any such obligation the defense that a remedy at law
would be adequate.

                9.12    Attorneys' Fees. In any action or proceeding brought to
enforce any provision of this Agreement, or where any provision hereof is
validly asserted as a defense, the successful party shall be entitled to recover
reasonable attorneys' fees in addition to its costs and expenses and any other
available remedy.

                            [signature page follows]

                                       27

<PAGE>

                IN WITNESS WHEREOF, the parties hereto have caused their
respective duly authorized representatives to execute this Agreement as of the
date and year first above written.

GENOME THERAPEUTICS CORP.

By:
        -------------------------------------
        Steven M. Rauscher
        President and Chief Executive Officer

AMGEN INC.

By:
        -------------------------------------
        Kevin W. Sharer
        Chairman of the Board, Chief Executive Officer
        and President

                                       S-1

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