Document:

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                                                                   EXHIBIT 10.22

                          EXCLUSIVE LICENSE AGREEMENT

         THIS AGREEMENT is effective as of the 6th day of May, 1997 (the
"Effective Date"), by and between BAXTER HEALTHCARE CORPORATION, a Delaware
Corporation (hereinafter referred to as "BAXTER"), acting through its Edwards
Critical-Care Division, having an address at 17221 Redhill Avenue, Irvine,
California 92714 and IMPLEMED, INC. a Massachusetts corporation, having offices
at 313 Pleasant Street, Watertown Massachusetts 02172 (hereinafter referred to
as "LICENSOR").

                                   WITNESSETH

         WHEREAS, LICENSOR has developed and owns technical know-how, patent
applications and patents relating to the manufacture of anti-microbial polymers;

         WHEREAS, LICENSOR is capable of manufacturing or having manufactured
anti-microbial polymers and maintains a staff of employees capable of
instructing others in the manufacture of anti-microbial polymers and of
conveying such technical know-how as is required to allow manufacture of
anti-mircobial polymer by third parties; and

         WHEREAS, BAXTER wishes to acquire an exclusive license under such
patent applications, patents and such technical know-how owned by LICENSOR so
that BAXTER can (1) initially purchase anti-mircobial polymers from LICENSOR for
use in BAXTER's development and manufacture of covered catheters and
introducers, as defined below and (2) eventually receive technical know-how from
LICENSOR to allow BAXTER to manufacture or have manufactured anti-microbial
polymers for use in BAXTER's production of covered catheters and introducers, as
defined below.

         NOW, THEREFORE, the parties hereto hereby agree as follows:

                             ARTICLE I. Definitions

         Terms in this Agreement which are set forth in upper case lettering
have and bear the meanings established for such terms in the succeeding sections
of this Article I.

         Section 1.01. "FIELD OF TECHNOLOGY" shall mean the manufacture of
anti-microbial polymers made using LICENSOR's OLIGON TECHNOLOGY as may be used
or useful in the development and/or production of COVERED DEVICES.

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         Section 1.02 "COVERED DEVICES" shall mean pulmonary artery catheters,
vascular access introducers and short-term, non-tunneled, over-the-wire central
venous catheters of any lumen configuration (including hi-flow central venous
catheters which may be used for dialysis, when designed and marketed for primary
use within the hospital and not specifically for renal dialysis). Specifically
excluded are peripherally inserted central catheters (PICC's), mid-line
catheters, dialysis catheters (except as described above) and the COMPOUND
itself.

         Section 1.03. "TECHNICAL KNOW-HOW"  shall mean INVENTIONS, technical
data, designs, plans, specifications, methods, processes, systems, clinical data
and other information or documentation, whether patentable or not, relating to
the FIELD OF TECHNOLOGY which is in the possession of LICENSOR as of the
Effective Date or which is owned by LICENSOR (or which LICENSOR has the right to
license to BAXTER) at any time during the term of this Agreement. TECHNICAL
KNOW-HOW shall not include any information, and/or documentation which was
previously known by BAXTER (except for confidential disclosures previously made
by LICENSOR to Baxter), or which is or later becomes publicly known through no
act or failure to act by BAXTER.

         Section 1.04 "INVENTION(S)" shall mean, without restriction or
limitation, any and all devices, processes (including without limitation
processes of using devices or of manufacturing such devices), compositions of
matter, computer software, chemical formulations, ideas or developments, whether
patentable or unpatentable and any and all written materials or other works
which may be subject to copyright, which are conceived, reduced to practice, or
written prior to or during the terms of this Agreement, and which related to the
FIELD OF TECHNOLOGY.

         Section 1.05 "LICENSOR INVENTIONS" shall mean those INVENTIONS
independently conceived, reduced to practice or written by LICENSOR, without the
technical assistance or technical contribution of BAXTER.

         Section 1.06 "BAXTER INVENTIONS" shall mean those INVENTIONS
independently conceived, reduced to practice or written by BAXTER, without the
technical assistance or technical contribution of LICENSOR.

         Section 1.07. "JOINT INVENTIONS" shall means those INVENTIONS jointly
conceived, reduced to practice, or written by BAXTER and LICENSOR.

         Section 1.08 "LICENSED PATENTS" shall mean any United States or foreign
patents and patent applications (including any continuation,
continuation-in-part, divisional, reissues or reexamination patent applications
thereof and patents issuing therefrom) relating to the FIELD OF TECHNOLOGY or
relating to any INVENTIONS in which LICENSOR has a present interest, or
hereafter acquires an interest, including but not limited to the pending patent
applications and patents listed in Appendix A hereto.

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         Section 1.09 "LICENSED PRODUCTS" shall mean any COVERED DEVICE which is
within the scope of one or more claims of a LICENSED PATENT or incorporate any
part or all of the TECHNICAL KNOW-HOW.

         Section 1.10 "COMPOUND" shall mean compositions of matter which are
within the scope of one or more claims of a LICENSED PATENT or incorporate any
part or all of the TECHNICAL KNOW-HOW.

         Section 1.11 "FIRST COMMERCIAL SALE" shall mean the first sale to a
third party of a LICENSED PRODUCT anywhere in the world under the approval of
appropriate governmental agencies (if any) for distribution and sale of such
LICENSED PRODUCT.

         Section 1.12 "NET SELLING PRICE" shall mean, for any calendar quarter,
the average per unit billing price which BAXTER or an AFFILIATE charges to their
United States customers for a 7F, 3 lumen central venous catheter set (which
includes a dilator and a guide wire and which is further described in Appendix F
hereto), excluding sales, use, occupation and excise taxes, duties, and
transportation costs, returns and allowances in lieu of returns.

         Section 1.13 "AFFILIATES" shall mean any person or entity, excluding
Baxter International, Inc., controlling, controlled by or under common control
with BAXTER.

         Section 1.14 "OLIGON TECHNOLOGY" shall mean LICENSOR's proprietary and
confidential technology for manufacturing anti-microbial polymers by either (i)
the inclusion of two or more dissimilar metals in a conductive polymer matrix or
(ii) the combining of two or more dissimilar metals into an iontophoretic
structure which is in turn included in a polymer matrix.

         Section 1.15 "OLIGON TRADEMARKS" shall mean the trademarks and logos
listed in Appendix C hereto.

         Section 1.16 "CONFIDENTIAL INFORMATION" shall mean information whose
confidentiality is protected in accordance with Section 13.09 below.

         Section 1.17. "COMPOUND PRICE" shall mean a price which is initially
One Hundred Thirty Dollars ($130.00) per pound of COMPOUND, and which may be
adjusted from time to time in accordance with Section 4.01(c) below.

         Section 1.18. "SPECIFICATIONS" shall mean the specification as set
forth in Appendix B.

         Section 1.19. "CONTINGENCIES" shall mean (i) LICENSOR's completion of
the development of the COMPOUND; and (ii) LICENSOR's establishing a Master File
pursuant to Section 6.02 below.

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         Section 1.20. "CONTINGENCY QUARTER" shall mean the fourth calendar
quarter of 1998; provided, however, that if the CONTINGENCIES are not satisfied
on or before March 1, 1998, the CONTINGENCY QUARTER shall be delayed by one (1)
calendar month for each calendar month (or part thereof) by which satisfaction
of the CONTINGENCIES is delayed past March 1, 1998.

                          ARTICLE II. Grant of License

         Section 2.01. License Grant.

         (a) LICENSOR hereby grants to BAXTER a worldwide, exclusive right and
license during the term of this Agreement (i) to use the TECHNICAL KNOW-HOW to
make, have made, use, sell, offer for sale, import, lease and otherwise dispose
of LICENSED PRODUCTS; and (ii) to make, have made, use, sell, offer for sale,
import, lease and otherwise dispose of LICENSED PRODUCTS under the LICENSED
PATENTS.

         (b) If a third party becomes interested in using the LICENSED PATENTS
and TECHNICAL KNOW-HOW to make or have made vascular access introducers,
LICENSOR shall encourage such third party to negotiate with BAXTER on the terms
of a supply agreement. If BAXTER and such third party are unable to agree upon
the terms of such an agreement within ninety (90) days, then, notwithstanding
the exclusive grant of rights to BAXTER as described in Section 2.01(a) above,
LICENSOR reserves the right to grant to such third party the non-exclusive right
and license to use the LICENSED PATENTS and TECHNICAL KNOW-HOW to make, have
made, sue, sell, offer for sale, import, lease and otherwise dispose of vascular
access introducers; provided, however, that such introducers may not be sold on
a stand-alone basis and are sold, imported, leased and disposed of only in
conjunction with other medical devices which are not COVERED DEVICES.

         (c) BAXTER shall have the right to make or have made the COMPOUND for
the purpose of incorporating such COMPOUND into COVERED DEVICES.

         Section 2.02. Right to Use OLIGON TRADEMARKS.

                  (a) During the term of this Agreement, BAXTER shall use the
OLIGON TRADEMARKS on all packaging for the LICENSED PRODUCTS and may use the
OLIGON TRADEMARKS in connection with the sale, distribution, marketing and
promotion of all LICENSED PRODUCTS. At LICENSOR's request and expense, BAXTER
shall execute a registered user agreement and any other documents which LICENSOR
may reasonably request in order to establish or confirm LICENSOR's right, title
and interest with respect to the OLIGON TRADEMARKS.

                  (b) In order to comply with LICENSOR's quality control
standards, BAXTER shall:

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                           (i) maintain the quality of the LICENSED PRODUCTS by
adhering to the quality control standards regarding the OLIGON TECHNOLOGY which
are attached as Appendix C hereto; provided, however, that those standards shall
be no higher than the standards by which LICENSOR uses the OLIGON TECHNOLOGY
itself or through its licensees and assigns;

                           (ii) use the OLIGON TRADEMARKS in compliance with all
relevant laws and regulations;

                           (iii) provide LICENSOR with samples of LICENSED
PRODUCTS at LICENSOR's request and expense, in order to confirm that BAXTER's
use of such OLIGON TRADEMARKS is in compliance with this provision; and

                           (iv) not modify any of the OLIGON TRADEMARKS in any
way and not use any of the OLIGON TRADEMARKS on or in connection with any goods
or services other than the LICENSED PRODUCTS.

         Section 2.03. License Grant for BAXTER INVENTIONS. BAXTER hereby grants
to LICENSOR, a worldwide, royalty-free, non-exclusive right and license (with
the right to sublicense) during the term of this Agreement to use BAXTER
INVENTIONS to make, have made, use and sell products other than COVERED
DEVICES. IF BAXTER and LICENSOR agree to extend this right and license beyond
the term of this Agreement on a royalty-bearing basis, such royalty shall be no
greater than the royalty charged by BAXTER for grants of these same rights to
third parties.

         Section 2.04. No Rights by Implication. No rights or licenses with
respect to LICENSED PRODUCTS, OLIGON TECHNOLOGY, LICENSED PATENTS, TECHNICAL
KNOW-HOW, OLIGON TRADEMARKS or BAXTER INVENTIONS are granted or deemed granted
hereunder or in connection herewith, other than those rights or licenses
expressly granted in this Agreement.

                        ARTICLE III. Payment for License

         Section 3.01. Payment for License. Within thirty (30) days after the
Effective Date, BAXTER shall pay LICENSOR a one time license fee of $265,000.00
as partial consideration for the exclusive license granted herein.

         Section 3.01. Royalty. BAXTER also agrees to pay LICENSOR a royalty on
each LICENSED PRODUCT sold by or on behalf of BAXTER and its AFFILIATES from the
date of FIRST COMMERCIAL SALE. Such royalty shall be an amount equal to: (i) the
NET SELLING PRICE for the calendar quarter during which such LICENSED PRODUCT
was sold; multiplied by (ii) eighty-five percent (85%); multiplied by (iii) a
percentage royalty determined according to the following schedule:

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(a) If the LICENSED PRODUCT is covered by a LICENSED PATENT on a LICENSOR
INVENTION:

    (i) Two and one half percent (2.5%) if such LICENSED PRODUCT is made from
    COMPOUND supplied by LICENSOR to BAXTER; provided, however, that in no event
    will the royalty paid by BAXTER for such LICENSED PRODUCT be less than $1.00
    per unit.

    (ii) Three and one quarter percent (3.25%) if such LICENSED PRODUCT is made
    from COMPOUND manufactured by or for BAXTER other than COMPOUND supplied by
    LICENSOR; provided, however, that in no event will the royalty paid by
    BAXTER for such LICENSED PRODUCT be less than $1.35 per unit.

    (iii) The minimum per unit royalties set forth in Section 3.02(a)(i) will
    apply for the first four years of this Agreement if, during such four year
    period, only LICENSOR supplies COMPOUND to BAXTER. The minimum per unit
    royalties (Sections 3.02(a)(i) and (ii)) will apply for the first five years
    of this Agreement if BAXTER manufactures or has manufactured COMPOUND at any
    time during the first five years of this Agreement.

(b) Whenever a LICENSED PRODUCT is covered only by a LICENSED PATENT on a JOINT
INVENTION, the royalty percentage shall be one-half of the applicable royalty
percentage specified in paragraph (a) above.

(c) If a LICENSED PRODUCT is not covered by a LICENSED PATENT in a country as
the consequence of a patent validity or infringement action, but incorporates
TECHNICAL KNOW-HOW, the royalty shall be one-half of the applicable royalty
percentage specified in paragraph (a) above and shall accrue for a ten (10)
year period, beginning with the FIRST COMMERCIAL SALE of such LICENSED PRODUCT
in such country.

(d) Whenever two or more LICENSED PRODUCTS are included in a product sold as a
package (with or without other components), the royalty for such packaged
product shall be the sum of the per unit royalties for those LICENSED PRODUCTS.

         Section 3.03. Minimum Quarterly Requirements.

                  (a) BAXTER agrees to pay a minimum royalty of $25,000 per
calendar quarter beginning the CONTINGENCY QUARTER. LICENSOR agrees that as its
sole and exclusive remedy for BAXTER's failure to pay any minimum royalties,
LICENSOR shall have the right to terminate this Agreement in accordance with
Section 12.02 of this Agreement. Minimum quarterly royalty payments will be made
not more than forty-five (45) days following the end of each quarter in which
minimum quarterly payments are due. Any royalty paid pursuant to this provision
for a calendar quarter will be creditable against royalties which become

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due under Section 3.02 for any LICENSED PRODUCT sold during such quarter or any
of the immediately following four (4) calendar quarters. Notwithstanding the
above, if BAXTER has initiated a clinical study intended to support a regulatory
filing or is responding to a request from the FDA for additional data (e.g.,
clinical, animal, safety or in vitro) during a calendar quarter for which a
minimum royalty is due in accordance with this Section 3.03(a), then any royalty
paid pursuant to this provision during such a calendar quarter shall be
creditable as follows: (x) such payment shall be creditable against royalties
which become due under Section 3.02 for any LICENSED PRODUCT sold during such
quarter or any of the immediately following four (4) calendar quarters; and (y)
after the period described in (x) above, 50% of any unused credits shall remain
creditable against royalties which become due under Section 3.02 for any
LICENSED PRODUCT, no matter when sold.

                  (b) In addition, if the CONTINGENCIES are met and BAXTER has
received FDA market clearance for any LICENSED PRODUCT, then BAXTER and its
AFFILIATES shall together sell at least the number of units of LICENSED PRODUCTS
indicated below. LICENSOR agrees that as its sole and exclusive remedy for the
failure of BAXTER and its AFFILIATES to sell such minimum number of units,
LICENSOR shall have the right to convert the rights granted in Section 2.01(a)
above to non-exclusive rights:

                  Time Period               Minimum Quarterly Sales - # of Units
                  -----------               ------------------------------------

                  If BAXTER can make or reference claims of
                  reduced colonization for any
                  LICENSED PRODUCT or vascular access product
                  using the OLIGON TECHNOLOGY, then
                  from the 17th calendar quarter following
                  the CONTINGENCY QUARTER                           25,000

                  OR
                  --

                  If BAXTER can make or reference claims of
                  reduced blood stream infection for any
                  LICENSED PRODUCT or vascular access product
                  using the OLIGON TECHNOLOGY, then
                  from the 17th calendar quarter following
                  the CONTINGENCY QUARTER                           60,000

                  (c) After BAXTER's rights under Section 2.01(a) above become
non-exclusive, if BAXTER and its AFFILIATES do not sell at least the number of
units of LICENSED PRODUCTS indicated in Section 3.03 (b) above during any three
(3) year period, then, as Licensor's sole and exclusive remedy for the failure
of BAXTER and its AFFILIATES to sell such minimum number of units, Licensor
shall have the right to terminate this Agreement in accordance with Section
12.02 below; provided, however, that: (i) if LICENSOR grants the

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same non-exclusive rights to a third party, then for the purposes of this
Section 3.03(c), the minimum number of units indicated in Section 3.03(b) above
shall be reduced by one-half; and (ii) if LICENSOR grants the same non-exclusive
rights to a third party at royalty rates lower than the rates stated in Section
3.02 above, LICENSOR shall reduce such Section 3.02 rates charged BAXTER to
those lower rates charged such third party.

         Section 3.04. Date of Sale. For the purpose of computing the earned
royalties, the LICENSED PRODUCT shall be deemed to be sold as of the date it is
invoiced to an unaffiliated customer.

         Section 3.05. Period of Royalty.

                  (a) If the LICENSED PRODUCT is covered by a LICENSED PATENT,
the applicable earned royalty shall be paid from the date of the FIRST
COMMERCIAL SALE until expiration of the last to expire LICENSED PATENT covering
the LICENSED PRODUCT in its country of manufacture or sale. If the LICENSED
PRODUCT is not covered by a LICENSED PATENT in a country, but incorporates
TECHNICAL KNOW-HOW, the applicable earned royalty shall be paid from the date of
the FIRST COMMERCIAL SALE in such country for a period of ten (10) years.

                  (b) Thereafter, BAXTER shall not pay any further royalties for
such LICENSED PRODUCTS in such country pursuant to Section 3.02 above.

         Section 3.06. Single Royalty. A particular LICENSED PRODUCT may be sold
or disposed of more than one time, however, only one royalty shall be payable on
each LICENSED PRODUCT.

         Section 3.07. Time of Payment. Payments due under Section 3.02 shall be
made on the basis of calendar quarters, and shall be made not more than
forty-five (45) days following the end of each calendar quarter. BAXTER agrees
to make payment to LICENSOR by checks mailed to LICENSOR at the address set
forth herein, or at such other address as LICENSOR may specify for that purpose.
BAXTER agrees to submit to LICENSOR, with each royalty payment, a written report
showing the number of LICENSED PRODUCTS sold in the calendar quarter and the NET
SELLING PRICE for such quarter. All payments due under Sections 3.02 and 3.03(a)
hereof but not paid by BAXTER on the due date thereof shall bear interest at the
rate which is the lesser of: (i) the rate of interest per annum charged by
Citibank N.A. to its prime commercial customers on 90-day loans plus one percent
(1%); and (ii) the maximum lawful interest rate permitted under applicable law.
Such interest shall accrue on the balance of unpaid amounts from time to time
outstanding from the date on which portions of such amounts become due and owing
until payment thereof in full.

         Section 3.08. Currency for Payment. All payments made to LICENSOR
pursuant to this Agreement shall be made in United States Dollars.

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         Section 3.09. BAXTER's Book and Records. BAXTER shall keep full and
accurate records and books of account containing all particulars necessary for
showing the amounts of royalties due LICENSOR hereunder. At all reasonable times
for a period of not more than two (2) years after the end of each reporting
year, not to exceed once each year, the books and records relating to sales of
the LICENSED PRODUCTS shall be open, at LICENSOR's request, to inspection by
LICENSOR's duly appointed Independent Certified Public Accountants, who may make
such confidential inspection of such records and books of account as is
necessary to verify the computation of royalties due to LICENSOR. Any adjustment
in the amount due the LICENSOR on account of overpayment or underpayment of
royalties shall be made at the next date when royalty payment are called for
under this Agreement.

                 ARTICLE IV. Manufacture and Supply of COMPOUND

         Section 4.01. Sale of COMPOUND to BAXTER.

         (a) LICENSOR agrees to supply BAXTER with COMPOUND manufactured to the
SPECIFICATIONS for a period of five (5) years beginning on the date of execution
of this Agreement. The agreement set forth in this Section will automatically
renew for successive one (1) year terms upon expiration on the initial five (5)
year term, unless BAXTER terminates the agreement in this Section with thirty
(30) days' prior written notice.

         (b) For planning purposes, on or before January 1, 1998, BAXTER shall
submit a non-binding forecast of its orders during the next six (6) months, and
shall update that forecast on a quarterly basis thereafter. From time to time,
BAXTER shall submit purchase orders to LICENSOR for COMPOUND. LICENSOR shall
acknowledge promptly each BAXTER purchase order in writing and confirm delivery
dates to destinations specified by BAXTER; provided however, that LICENSOR shall
not be required to accept any purchase order with requested delivery dates less
than three (3) months after LICENSOR's receipt of such order. In the event of
any inconsistency between purchase orders and this Agreement, the terms of this
Agreement shall prevail. All sales of COMPOUNDS shall be subject to the terms
and conditions of this Agreement and, to the extent they specify quantities,
destinations and delivery dates, to BAXTER's purchase orders. LICENSOR shall
ship the COMPOUND C.I.F. destinations specified by BAXTER via mutually agreed
upon carriers. Unless otherwise agreed to in writing, LICENSOR shall pay all
freight charges and be reimbursed by BAXTER in accordance with Section 4.01(c)
below.

         (c) BAXTER agrees to pay LICENSOR for COMPOUND sold to BAXTER pursuant
to this Section the sum of:

         (i)      the COMPOUND PRICE; provided, however, that: (A) LICENSOR may
                  increase the COMPOUND PRICE in the event that the total cost
                  of raw materials used to formulate the COMPOUND has increased
                  by more than Five Dollars ($5.00) per pound of COMPOUND since
                  the Effective Date, such adjustment to be equal to the amount
                  of such increase; and (B) LICENSOR shall further adjust the
                  COMPOUND PRICE in the event that the total cost of raw
                  materials used to formulate the COMPOUND has increased or
                  decreased by more than Five Dollars ($5.00) per pound of
                  COMPOUND since the last such adjustment date, such adjustment
                  to be equal to the amount of such increase or decrease, so
                  long as the COMPOUND PRICE is never less than One Hundred
                  Thirty Dollars ($130.00); and

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         (ii)     LICENSOR's freight and insurance costs in sending COMPOUND to
                  the destinations specified by BAXTER.

         (d) LICENSOR shall keep full and accurate records and books of account
containing all particulars necessary for documenting the adjustments to the
COMPOUND PRICE in accordance with Section 4.01(c)(i) above. At a reasonable time
within (6) months after each such adjustment is made by LICENSOR, the books and
records relating to such adjustment shall be open, at BAXTER's request, to
inspection by BAXTER's duly appointed Independent Certified Public Accountants,
who may make such confidential inspection of such records and books of account
as is necessary to verify the adjustment made by LICENSOR.

         (e) Terms of payment are net 45 days from receipt of COMPOUND. All
payments due under this Section but not paid by BAXTER on the due date thereof
shall bear interest at the rate which is the lesser of: (i) the rate of interest
per annum charged by Citibank N.A. to its prime commercial customers on 90-day
loans plus one percent (1%); and (ii) the maximum lawful interest rate permitted
under applicable law. Such interest shall accrue on the balance of unpaid
amounts from time to time outstanding from the date on which portions of such
amounts become due and owing until payment thereof in full.

         (f) LICENSOR shall notify BAXTER in advance and in writing of any
proposed change in the following aspects of the COMPOUND or their components:
(i) composition or source of any raw material; (ii) method of producing,
processing or testing; (iii) change in subcontractors for producing, processing
or testing; or (iv) site of manufacture. No such change shall be made without
BAXTER's prior written consent.

         (g) All COMPOUNDS shall meet the SPECIFICATIONS and shall be subjected
to quality control inspection by LICENSOR in accordance with quality control
standards and system to be developed in conjunction with BAXTER prior to supply
of any COMPOUND to BAXTER. LICENSOR shall permit BAXTER to review periodically
LICENSOR's or it's subcontractor's production and quality control procedures and
records and to visit LICENSOR's or its subcontractor's facilities at reasonable
times with a representative of LICENSOR or its subcontractor (as the case may
be) present in order to assure satisfaction or the requirements of this
Agreement.

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         (h) BAXTER may inspect or audit the COMPOUND for integrity and
adherence to the SPECIFICATIONS. If any of the COMPOUND of a continuous
production run or shipment (a "Lot") fails to meet LICENSOR's warranties or to
conform to the SPECIFICATIONS, BAXTER may, within forty-five (45) days after its
receipt of a Lot of COMPOUND, return such Lot at LICENSOR's expense for
replacement or credit. If BAXTER does not return such Lot within such time
period, BAXTER shall be deemed to have accepted such Lot, subject to LICENSOR's
warranties in Section 4.01(j) below.

         (i) LICENSOR will notify BAXTER immediately of any inspection of its
facilities or its subcontractor's facilities by a federal or national agency
regulating the manufacture and sale of medical devices, as well as the results
of such inspection.

         (j) LICENSOR WARRANTS THAT IT SHALL POSSESS GOOD AND MARKETABLE TITLE
TO COMPOUNDS TO BE SOLD TO BAXTER UNDER THIS AGREEMENT AT THE TIME OF SALE AND
THAT THE COMPOUNDS SHALL BE IN COMPLIANCE WITH THE SPECIFICATIONS. THESE
WARRANTIES ARE IN LIEU OF ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED,
WRITTEN OR ORAL (INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE). In the event that COMPOUND sold to BAXTER hereunder does
not comply with the SPECIFICATIONS, BAXTER's sole remedy shall be to return such
COMPOUND for replacement or credit.

         Section 4.02 Manufacture of COMPOUND by BAXTER. LICENSOR shall transfer
sufficient TECHNICAL KNOW-HOW to BAXTER to allow BAXTER to manufacture COMPOUND
in-house at BAXTER or at one of its AFFILIATES: (i) at BAXTER's option, at any
time after one (1) year from the FIRST COMMERCIAL SALE of a LICENSED PRODUCT; or
(ii) at BAXTER's option, at any time LICENSOR fails to deliver the COMPOUND
substantially in accordance with BAXTER's firm orders for the COMPOUND
(excluding reasons beyond LICENSOR's control if, for the same reason, the
technology transfer would not enable BAXTER to manufacture the COMPOUND) and
LICENSOR does not remedy such failure within sixty (60) days of written notice
from BAXTER of such failure; or (iii) at LICENSOR's option, at any time. In
connection with such transfer, LICENSOR agrees to promptly deliver and disclose
to BAXTER's duly authorized representatives, TECHNICAL KNOW-HOW in the form of a
complete description of LICENSOR's procedures, processes and third-party vendors
for manufacturing the COMPOUND. This transfer shall be completed in accordance
with the procedures and timetables set out in Appendix D hereto. The parties
agree that this transfer shall not in any way interfere with product
development and/or manufacturing activities required to meet any timetables or
deadlines specified elsewhere in this Agreement. In the event of (iii) above, at
BAXTER's request the parties shall negotiate in good faith on a longer timetable
to complete this transfer. LICENSOR agrees to provide the assistance of its
personnel as necessary to complete this transfer and the qualification of the
BAXTER manufactured COMPOUND in accordance with the SPECIFICATIONS. Each party
shall bear its own costs and expenses in connection with this transfer;
provided, however, that LICENSOR may charge

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BAXTER for its costs and expenses incurred in connection with: (x) LICENSOR's
travel expenses exceeding four (4) trips by LICENSOR personnel to BAXTER's
designated location in the United States; and (y) the qualification of the
BAXTER manufactured COMPOUND in accordance with the SPECIFICATIONS not being
completed within six (6) months after the date that this transfer is commenced
(or in the event of (iii) above, such longer time agreed to by the parties).

         In the event any proceeding, suit or action relating to bankruptcy,
reorganization, arrangement of debt, insolvency, adjustment of debt,
receivership, liquidation or dissolution law or statute shall be filed by or
against LICENSOR, then BAXTER may obtain COMPOUND directly from LICENSOR's
vendor(s) and/or obtain a transfer of TECHNICAL KNOW-HOW to allow BAXTER to
manufacture COMPOUND from LICENSOR's vendor(s).

                     ARTICLE V. BAXTER's Other Obligations

         Section 5.01. Short-Term Central Venous Catheter 510(k) Submission
Timeframe:

         (a) If, within thirty (30) months after the Effective Date, BAXTER
fails to submit a request for 510(k) clearance for a LICENSED PRODUCT which is a
short-term central venous catheter, LICENSOR may convert the exclusive license
for short-term central venous catheters hereunder to a non-exclusive license;
provided, however, that in the event that LICENSOR has not obtained 510(k)
clearance for any product incorporating OLIGON TECHNOLOGY within twenty-four
(24) months after the Effective Date, then BAXTER's deadline to submit a request
for 510(k) clearance hereunder shall be extended to the date which is six (6)
months after the date LICENSOR obtains such clearance.

         (b) If, within forty-two (42) months after the Effective Date, BAXTER
fails to submit a request for 510(k) clearance for a LICENSED PRODUCT which is a
short-term central venous catheter, LICENSOR may terminate this Agreement in its
entirety; provided, however, that in the event that LICENSOR has not obtained
510(k) clearance for any product incorporating OLIGON TECHNOLOGY within
thirty-six (36) months after the Effective Date, then BAXTER's deadline to
submit a request for 510(k) clearance hereunder shall be extended to the date
which is six (6) months after the date LICENSOR obtains such clearance.

         (c) If the FDA does not accept BAXTER's submission for 510(k) clearance
referred to above or request additional information with respect thereto, BAXTER
shall promptly respond to the FDA and shall diligently pursue its submission.

         (d) In the event that the FDA does not require a clinical study in
connection with the 510(k) regulatory submission for a LICENSED PRODUCT which is
short-term central venous catheter, then BAXTER shall commence a clinical study
within a reasonable period of time after the FIRST COMMERCIAL SALE of a LICENSED
PRODUCT which is a short-term central venous catheter. For the purpose of
clarification, it is understood that the objective, nature,

                                       12
<PAGE>

scope, and duration of such clinical study will depend on FDA feedback,
LICENSOR's clinical experience, desired endpoints, and/or product labeling at
the time the study commences.

         Section 5.02. Introducer 510(k) Submission Timeframe: If, within
twenty-four (24) months after obtaining 510(k) clearance to market a LICENSED
PRODUCT which is a central venous catheter, BAXTER fails to submit a request for
510(k) clearance for a LICENSED PRODUCT which is an introducer, LICENSOR may
terminate this Agreement with respect to introducers.

         Section 5.03. Pulmonary Artery Catheter 510(k) Submission Timeframe:

         (a) If, within twenty-four (24) months after obtaining 510(k) clearance
to market a LICENSED PRODUCT which is a central venous catheter, BAXTER fails to
submit a request for 510(k) clearance for a LICENSED PRODUCT which is a
pulmonary artery catheter, LICENSOR may convert the exclusive license for
pulmonary artery catheters hereunder to a non-exclusive license.

         (b) If, within thirty-six (36) months after obtaining 510(k) clearance
to market a LICENSED PRODUCT which is a central venous catheter, BAXTER fails to
submit a request for 510(k) clearance for a LICENSED PRODUCT which is a
pulmonary artery catheter, LICENSOR may terminate this Agreement with respect to
pulmonary artery catheters.

         Section 5.04. Royalty Rate for Non-Exclusive License. If the exclusive
license for a LICENSED PRODUCT is to a non-exclusive license pursuant to
Sections 5.01 and 5.03, then the royalty payments due for such LICENSED PRODUCT
pursuant to Section 3.02 will be halved.

         Section 5.05 Delays. The timeframes set forth in Sections 5.01, 5.02
and 5.03 will be extended if delays in meeting the timeframes are caused by
circumstances beyond the control of BAXTER including, but not limited to, delays
in the development or supply of LICENSOR of COMPOUND meeting SPECIFICATIONS,
delays in establishing safety of COMPOUND or delays in establishing a Master
File in accordance with Section 6.02 below. The timeframes will be extended by
the same amount of time as the delay. For purposes of clarification, the
timeframes in Sections 5.01(a) and (b) above already anticipate that the FDA may
require a clinical study involving 100-200 patients with respect to a short-term
central venous catheter, and that the timeframe for the development and supply
of COMPOUND meeting the SPECIFICATIONS shall be nine (9) months from the
EFFECTIVE DATE. In meeting the timeframes set forth in Sections 5.01, 5.02 and
5.03, BAXTER agrees to direct its efforts towards catheter extrusion,
development and commercialization. LICENSOR agrees to provide such technical
assistance and support to insure that COMPOUNDS are made to the SPECIFICATIONS
and can be successfully processed into LICENSED PRODUCTS.

                                       13
<PAGE>

         Section 5.06. Non-Competing. During the first five (5) years following
FIRST COMMERCIAL SALE, the Edwards Critical-Care division of Baxter Healthcare
Corporation shall not engage in, directly or indirectly, the commercial
production, distribution or sale of any products which directly compete with and
substitute for the LICENSED PRODUCTS unless such other products offer improved
clinical advantages to the LICENSED PRODUCTS. BAXTER's existing products with
biocompatibility coatings, where such coatings have inherent anti-microbial
properties, shall not be deemed competitive with LICENSED PRODUCTS for the
purposes of this Section 5.06.

                    ARTICLE VI. LICENSOR's Other Obligations

         Section 6.01 Inventory. Until such time as the TECHNICAL KNOW-HOW
transfer described in Section 4.02 above is completed, LICENSOR shall always
maintain a ninety (90) day supply of the COMPOUND, based on BAXTER's forecasted
sales. When such transfer is completed in accordance with Section 4.02 above,
BAXTER shall purchase all COMPOUND which meets the SPECIFICATIONS and which is
then in LICENSOR's inventory which has been maintained by LICENSOR pursuant to
this Section.

         Section 6.02 Master File. LICENSOR shall use its best efforts to create
an FDA Master File containing all information (including without limitation
information provided by BAXTER to LICENSOR for this purpose) necessary to
support the claims of in vitro reduced colonization and anti-microbial activity
and which is relevant to, or which is useful in obtaining, regulatory clearance
of LICENSED PRODUCTS, including but not limited to biocompatibility data,
results of clinical studies, composition of the COMPOUND, anti-microbial and
anti-colonization in vitro and in vivo testing. LICENSOR and BAXTER shall work
together to define and establish which information shall be included in this FDA
Master File. Notwithstanding the above, LICENSOR does not guarantee that the FDA
Master File shall be sufficient to obtain FDA allowance of any such claims.
However, LICENSOR is committed to updating and maintaining the FDA Master File
with respect to responses to FDA requests and the availability of additional
data.

                        ARTICLE VII. Mutual Obligations

         Section 7.01. Sharing of Information. Each party shall provide to the
other party all information within its possession concerning biocompatibility
data, results of clinical studies, in vitro testing, in vivo testing, and status
of its pending FDA submissions which are relevant to LICENSED PRODUCTS.

         Section 7.02. Disclosure of LICENSOR INVENTIONS and BAXTER INVENTIONS.
LICENSOR and BAXTER shall each disclose to the other party LICENSOR INVENTIONS
and BAXTER INVENTIONS, respectively, at semi-annual meetings to be held by the
parties.

                                     14
<PAGE>

         Section 7.03. Publicity. Neither party shall issue any press release
nor otherwise publicize the execution of this Agreement or the transactions
contemplated hereunder without the other party's prior written consent, except
to the extent required by federal securities regulations or other applicable
laws.

         Section 7.04 Adjusting Deadlines for FDA Filings.

         (a) If the FDA requires Pre-Market Approval for any COVERED DEVICE,
then the parties shall negotiate in good faith to adjust the schedules for FDA
submissions in Sections 5.01, 5.02 and 5.03 above.

         (b) If, before granting marketing clearance of introducers or pulmonary
artery catheters, the FDA requires clinical studies for demonstrating
anti-microbial effectiveness of the OLIGON TECHNOLOGY on such LICENSED PRODUCTS,
then the parties shall negotiate in good faith to adjust the schedules for FDA
submissions in Section 5.02 and 5.03 above, respectively.

                  ARTICLE VIII. Representations and Warranties

         Section 8.01. LICENSOR's Representations. LICENSOR represents and
warrants that it is the sole and exclusive owner of the entire right, title, and
interest in and to the LICENSED PATENTS on LICENSOR INVENTIONS and is the owner
of the right, title, and interest in and to the TECHNICAL KNOW-HOW and that it
has the right to grant the rights and license hereby granted to BAXTER. To the
best of LICENSOR's information and belief as of the EFFECTIVE DATE, practice of
the LICENSED PATENTS on COVERED DEVICES does not infringe on the intellecutal
property rights of any third parties.

         Section 8.02. Mutual Representations and Warranties. LICENSOR and
BAXTER each represent and warrant to the other that they have full power and
authority to enter into this Agreement and carry out the transactions
contemplated hereby and that all necessary corporate action has been duly taken
in this regard.

                     ARTICLE IX. Patenting and Maintenance

         Section 9.01. Patent Prosecution of LICENSOR INVENTIONS. LICENSOR shall
have the right to, at its own expense, file and prosecute patent applications on
LICENSOR INVENTIONS and maintain LICENSED PATENTS issuing therefrom; provided,
however, for each LICENSOR INVENTION selected by LICENSOR for filing and
prosecution, LICENSOR shall file and prosecute patent applications in at least
each of the countries listed in Appendix E hereto. BAXTER shall have the right
to review and comment on all such patent applications and any documents relating
to the prosecution thereof, and agrees to provide full assistance in their
preparation and prosecution. If LICENSOR chooses not to file, prosecute, or
maintain such patent applications or LICENSED PATENTS in any such country for
which BAXTER desires to

                                       15
<PAGE>

seek or maintain patent protection, BAXTER shall have the right to file such
patent application in LICENSOR's names in any such country at BAXTER's own
expense or maintain such LICENSED PATENTS; provided, however, in the event a
LICENSED PATENT is issued in any such country as the result of such patent
application, then (i) LICENSOR shall own such LICENSED PATENT; and (ii) BAXTER
may deduct its reasonable expenses incurred in obtaining and/or maintaining such
LICENSED PATENT from royalties (including minimum royalties) payable to LICENSOR
in accordance with Sections 3.02 and 3.03 above on LICENSED PRODUCTS
manufactured or sold in such country which is covered by such LICENSED PATENT.
LICENSOR shall have the right to review all such patent applications filed or
prosecuted by BAXTER and any documents relating to prosecution thereof.

         Section 9.02 Patent Prosecution of JOINT INVENTIONS. LICENSOR shall
have the right to file and prosecute patent applications on JOINT INVENTIONS and
maintain LICENSED PATENTS issuing therefrom; provided, however, for each JOINT
INVENTION selected by LICENSOR for filing and prosecution, LICENSOR shall file
and prosecute patent applications in at least each of the countries listed in
Appendix E herein. BAXTER shall have the right to review and comment on all such
patent applications and any documents relating to the prosecution therof, and
agrees to provide full assistance in their preparation and prosecution. If
LICENSOR chooses not to file, prosecute, or maintain such patent applications or
LICENSED PATENTS in any country for which BAXTER desires to seek or maintain
patent protection, BAXTER shall have the right to file such patent application
in BAXTER's and LICENSOR's names in any such country or maintain such LICENSED
PATENTS. LICENSOR shall have the right to review all such patent applications
filed, prosecuted and/or maintained by BAXTER and any documents relating to the
prosecution thereof. Regardless of which party files and prosecutes a patent
application on a JOINT INVENTION, LICENSOR and BAXTER shall share equally any
reasonable expenses incurred in connection with such filings and prosecutions,
and in the event a patent is issued on such JOINT INVENTION, then (i) BAXTER and
LICENSOR shall jointly own such patent; (ii) such patent shall be included in
LICENSED PATENTS (including without limitation all exclusivity of rights
pursuant to Section 2.01(a) above); and (iii) BAXTER shall license such patent
on exclusive, royalty-free basis to LICENSOR to make, have made, use and sell
products other than COVERED DEVICES during the term of this Agreement.

         Section 9.03. Cooperation in Patent Prosection. Each party agrees to
make available to the other party, data, records, samples or the like in its
possession or under its control which are required for the preparation,
prosecution, maintenance or defense of any LICENSED PATENT, patent issued with
respect to a BAXTER INVENTION or application therefor, and that it will sign
oaths, affidavits or other documents as may be required for the preparation,
prosecution, maintenance or defense of such LICENSED PATENTS, patents or
applications.

                         ARTICLE X. Patent Infringement

         Section 10.01. Infringement of Third Party Patents. BAXTER shall give
LICENSOR prompt notice of each claim or allegation that the manufacture, use or
sale of LICENSED

                                       16
<PAGE>

PRODUCTS constitutes an infringement of a patent or patents owned by others.
BAXTER shall defend, at BAXTER's own expense, any suit brought by such other
party against BAXTER and shall have the right to deduct from royalties
(including minimum royalties) payable to LICENSOR in accordance with Sections
3.02 and 3.03 above its reasonable costs of defending each such claim or
allegation; provided, however, that in no event may LICENSOR's royalties be
reduced by more than fifty percent (50%) of the royalties otherwise payable
hereunder on any royalty payment date. BAXTER shall submit written reports
showing royalties accruing to LICENSOR and its deductions therefrom.
Notwithstanding anything contained in this Section 10.01 to the contrary, this
Section shall apply only when the claim or allegation arises from BAXTER'S
practice or use of the LICENSED PATENTS and/or TECHNICAL KNOW-HOW.

         Section 10.02. Settlement or Satisfying of Claim. If settling or
satisfying of any claim or allegation of patent infringement described in
Section 10.01 above requires the payment by BAXTER to a third party of royalties
and/or other amounts for the manufacture, use or sale of LICENSED PRODUCTS,
BAXTER shall be entitled to deduct those royalties and/or other amounts paid to
such third party from the royalties (including minimum royalties) payable to
LICENSOR in accordance with Sections 3.02 and 3.03 above; provided, however,
that in no event may LICENSOR's royalties be reduced by more than fifty percent
(50%) of the royalties otherwise payable hereunder on any royalty payment date.

         Section 10.03. License of Third Party Patents. If BAXTER and LICENSOR
agree that a license is required from a third party in order for BAXTER to make,
use and sell LICENSED PRODUCTS without infringing a third party patent and such
license is acquired by BAXTER. BAXTER shall be entitled to deduct the royalties
or other amounts payable under said third party license from the royalties
(including minimum royalties) payable to LICENSOR in accordance with Sections
3.02 and 3.03 above; provided, however, that in no event may LICENSOR's
royalties be reduced by more than fifty percent (50%) of the royalties otherwise
payable hereunder on any royalty payment date.

         Section 10.04. Exclusive Remedy for Infringement. Sections 10.01, 10.02
and 10.03 are BAXTER's sole and exclusive remedies in the event that the
manufacture, use or sale of LICENSED PRODUCTS constitutes an infringement of a
patent or patents owned by others, unless LICENSOR breaches its representations
in Section 8.01 above.

         Section 10.05. Infringement of LICENSED PATENTS by Third Parties.

                  (a) LICENSOR may, but is not required to, take any and all
actions, legal or otherwise, which are necessary to: (i) terminate infringements
of any part of the LICENSED PATENTS in the FIELD OF TECHNOLOGY; or (ii)
terminate any attempted passing-off by imitation of any LICENSED PRODUCT,
including without limitation obtaining damages, injunction and all other
appropriate relief. BAXTER shall have the right to be kept informed of the
status and progress of all actions instituted by LICENSOR pursuant to this
Section 10.05(a).

                                       17

<PAGE>

LICENSOR shall bear all the expenses of all actions which it initiates pursuant
to this Section 10.05(a).

                  (b) If LICENSOR does not institute an action within sixty
(60) days after receiving notice from BAXTER of an infringement of any part of
the LICENSED PATENTS in the FIELD OF TECHNOLOGY or of an attempted passing-off
by imitation of any LICENSED PRODUCT, then BAXTER may institute an action with
respect thereto. LICENSOR shall have the right to be kept informed of the status
and progress of all such actions instituted by BAXTER pursuant to this Section
10.05(b). BAXTER shall bear all the expenses of all actions which BAXTER
initiates pursuant to this Section 10.05(b).

                  (c) Any recoveries or settlement fees received from suits or
settlements involving an action initiated pursuant to Section 10.05(a) or (b)
above or agreed to shall be paid: (i) first, to the party which initiated such
action, as reimbursement for the expenses of such action (including without
limitation attorneys' fees) which it incurred; (ii) second, to the
non-initiating party, as reimbursement for their expenses incurred in connection
with such action (including without limitation attorneys' fees); and (iii) the
balance (if any) to the party which initiated such action, for such party's own
use and benefit.

                  (d) Notwithstanding Sections 10.05(a), (b) and (c) above,
LICENSOR and BAXTER may agree to jointly institute an action in order to (i)
terminate infringements of any part of the LICENSED PATENTS in the FIELD OF
TECHNOLOGY; or (ii) terminate any attempted passing-off by imitation of any
LICENSED PRODUCT. LICENSOR and BAXTER shall share the expenses of all actions
which they initiate pursuant to this Section 10.05(d) and the proceeds of any
judgment rendered therein or settlement resulting therefrom, pursuant to their
written agreement.

                  (e) Where, in the judgment of the party initiating an action
under this Section 10.05, it is necessary to use the other party's name to
prosecute such action, such other party agrees to allow the initiating party to
so use the name of such other party; provided, however, that the initiating
party agrees to hold such other party harmless against any award of court costs
or damages resulting solely from the use of such other party's name by the
initiating party in such action.

                 (f) During the term of this Agreement, LICENSOR shall not have
the power to accept or enter into any settlement agreement in any country
settling any claim of infringement of LICENSED PATENTS in the FIELD OF
TECHNOLOGY by any third party without BAXTER's written consent; provided,
however, that if BAXTER does not give its consent, then thereafter BAXTER shall
bear all of the costs incurred in connection with pursuing such claim.

                                       18

<PAGE>

                            ARTICLE XI. Sublicensing

BAXTER may grant sublicenses of the TECHNICAL KNOW-HOW and LICENSED PATENTS to:
(a) AFFILIATES, without LICENSOR's prior consent but with written notice to
LICENSOR: (b) unaffiliated third parties for sale only to BAXTER and its
AFFILIATES, subject to LICENSOR's prior written consent, which consent shall not
be unreasonably withheld; or (c) any other unaffiliated third parties, subject
to LICENSOR's prior written consent, which consent may be withheld in LICENSOR's
sole and absolute discretion. Said sublicenses shall be subject to the terms of
this Agreement, provided, however, that with respect to sublicenses to make, use
and sell LICENSED PRODUCTS granted to third parties which are not AFFILIATES,
BAXTER agrees to share with LICENSOR any royalties and other amounts received
from third parties in the ratio of sixty percent (60%) to BAXTER and forty
percent (40%) to LICENSOR, so long as LICENSOR is paid an amount for each unit
of LICENSED PRODUCT which is no less than the applicable royalty under Section
3.02 above.

                       ARTICLE XII. Term and Termination

         Section 12.01. Term of the Agreement. Unless sooner terminated as
otherwise provided herein, this Agreement shall expire on the first date on
which BAXTER's royalty payment obligations have ended with respect to all
LICENSED PRODUCTS in all countries. After such expiration date, BAXTER shall
have: (a) a fully paid-up license to use the LICENSED PATENTS and the TECHNICAL
KNOW-HOW in the FIELD OF TECHNOLOGY; and (b) a royalty-free license to use the
OLIGON TRADEMARKS in accordance with Section 2.02 above.

         Section 12.02. Termination by LICENSOR -- Default. Should BAXTER fail
to perform any covenant of this Agreement on its part to be performed, then upon
written notice of such failure from LICENSOR, BAXTER shall have thirty (30) days
from the date of such notice to correct a breach which relates to the timely
payment of funds to LICENSOR and shall have ninety (90) days from the date of
such notice to correct any other breach. Upon the failure of BAXTER to correct
such breach, and upon thirty (30) days further written notice, LICENSOR may
cancel and terminate this Agreement.

         Section 12.03. Termination by BAXTER. BAXTER may terminate this
Agreement for any reason upon twelve (12) months prior written notice to
LICENSOR.

         Section 12.04. Rights After Termination.

                  (a) The parties hereto agree that, if this Agreement is
terminated prior to its expiration, BAXTER shall immediately cease: (i) any use
or practice of the LICENSED PATENTS, TECHNICAL KNOW-HOW and OLIGON TRADEMARKS;
and (ii) any making, use or sale of the LICENSED PRODUCTS; provided, however,
that BAXTER shall have the right to complete manufacture of LICENSED PRODUCTS
which constitute work in progress as of the date of termination or expiration
and to sell such LICENSED PRODUCTS, subject to

                                       19

<PAGE>

BAXTER's royalty payment obligations under Section 3.02 above. Each party to
this Agreement shall, at its own expense, return to the other party all
CONFIDENTIAL INFORMATION provided by such other party as soon as practicable
after the date of such termination or expiration and any copies thereof, which
have been received or derived by such party. During the term of this Agreement
and thereafter, all such CONFIDENTIAL INFORMATION shall remain the exclusive
property of the party which provided it.

                  (b) No termination of this Agreement shall affect the rights
of LICENSOR to royalties due and owing and to statements of account to and
including the date of termination.

                           ARTICLE XIII. Miscellaneous

         Section 13.01. Most Favored Licensee. LICENSOR agrees that in the event
this license becomes nonexclusive, and LICENSOR thereafter enters into any
license agreement with a third party in the FIELD OF TECHNOLOGY providing for a
lower or more advantageous royalty rate, transfer price for COMPOUND or for any
other terms or conditions more favorable to the licensee than herein set forth,
then and thereafter, BAXTER shall have the benefit of such lower or more
favorable royalty rate, transfer price for COMPOUND, terms or conditions.

         SectION 13.02. Assignability. This Agreement, or any of the rights or
obligations created herein, may be assigned, in whole or in part, by either
party to (l) any person or entity controlling, controlled by or under common
control with such party, or (2) a purchaser of all or substantially all of the
assets of such party relating to the LICENSED PRODUCTS. Otherwise, this
Agreement, or any of the rights or obligations created herein, may not be
assigned, in whole or in part, by either party without the written consent of
the other party, except that LICENSOR may, without the consent of BAXTER,
assign its right to receive payments under this Agreement to any person or
entity.

         Section 13.03. Force Majeure. If either party fails to fulfill its
obligations hereunder (other than payment obligations) when such failure is due
to a cause beyond its control, including an act of nature, or other action such
as fire, flood, civil commotion, riot, war (declared and undeclared),
revolution, action by government including delays in obtaining government
approvals, embargoes, then said failure shall be excused for the duration of
said event.

         Section 13.04. Notice. Any notice or communication required or
permitted to be given by either party hereunder shall be deemed sufficiently
given, if mailed by registered or certified mail and addressed to the party to
whom notice is given as follows:

IF TO BAXTER TO:

BAXTER HEALTHCARE CORPORATION
Edwards Critical-Care Division
17221 Redhill Avenue

                                       20
<PAGE>

Irvine, California 92714
ATTN: President

IF TO LICENSOR TO:

IMPLEMED, INC.
313 Pleasant street
Watertown, Massachusetts 02172
ATTN: President

with a copy to:

David Redlick, Esq.
Hale and Dorr LLP
60 State Street
Boston, Massachusetts 02109

         Section 13.05. Governing Law. This Agreement shall be interpreted in
accordance with the laws of the State of California, excluding its conflicts of
laws principles and the United Nations Convention on Contracts for the
International Sale of Goods.

         Section 13.06. Complete Agreement. As of its effective date, this
Agreement represents the entire agreement between the parties hereto with
respect to the subject matter hereof. There are no understandings,
representations or warranties of any kind except as expressly set forth herein.
This Agreement supersedes the Confidential Disclosure Agreement between the
parties dated April 1, 1996.

         Section 13.07. Severability. If any of the provisions of this Agreement
are held void or unenforceable, the remaining provisions shall nevertheless be
effective, the intent being to effectuate this Agreement to the fullest extent
possible.

         Section 13.08. Modification. Any modification of this agreement shall
be in writing and shall be signed by both BAXTER and LICENSOR. Any attempt to
modify this Agreement orally or in writing not executed by all parties hereto
shall be void.

         Section 13.09. Confidentiality. BAXTER and LICENSOR realize that some
information received by one party from the other pursuant to this Agreement will
be confidential. It is therefore agreed that any information received by one
party from the other which is in writing, or reduced to writing within thirty
(30) days of the date of disclosure, and clearly designated as "CONFIDENTIAL,"
shall not during or after the term of this Agreement be (i) disclosed by the
receiving party to any third party, except to the extent that (A) such third
party has agreed in writing to abide to these confidentiality obligations and
(B) such third party has a need to know such information in order to manufacture
the COMPOUND on behalf of BAXTER or its

                                       21

<PAGE>

AFFILIATES for use in COVERED DEVICES, or (ii) used by the receiving party for
purposes other than those contemplated by this Agreement.

         However, nothing in this Agreement shall prevent the receiving party
from disclosing any such information --

         (a) which is or becomes publicly known through no fault of the
receiving party;

         (b) which the receiving party rightfully had in its possession prior to
the disclosure to the receiving party, as evidenced by written documentation;

         (c) which the receiving party lawfully obtained without restriction
from a third party with no secrecy or confidentiality obligation to the
disclosing party.

         (d) which is approved in writing by the disclosing party for disclosure
by the receiving party; or

         (e) which is disclosed pursuant to court order or as otherwise
completed by law.

         Section 13.10. Limits of Liability. NEITHER PARTY SHALL BE LIABLE TO
THE OTHER UNDER ANY SECTION OF THIS AGREEMENT OR UNDER ANY CONTRACT. NEGLIGENCE,
STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY AMOUNT IN EXCESS OF
THE AGGREGATE OF THE AGREED UPON AMOUNTS TO BE PAID TO LICENSOR UNDER THIS
AGREEMENT PRIOR TO THE DATE THE CAUSE OF ACTION AROSE, OR FOR ANY SPECIAL,
INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES, LOST PROFITS, LOST DATE OR COST
OF PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES. IN ADDITION, BAXTER
SHALL INDEMNIFY AND HOLD LICENSOR HARMLESS IN THE EVENT ANY CLAIM OR ALLEGATION
IS BROUGHT AGAINST LICENSOR ARISING FROM DEATH OR INJURY CAUSED BY A LICENSED
PRODUCT, EXCEPT WHERE THE CLAIM OR ALLEGATION IS DIRECTLY ATTRIBUTABLE TO
COMPOUND PROVIDED BY LICENSOR AND INCORPORATED INTO SUCH LICENSED PRODUCT, WHICH
COMPOUND FAILS TO SATISFY THE SPECIFICATIONS.

         Section 13.11. Survival. Notwithstanding anything else in this
Agreement to the contrary, the parties agree that Sections 2.03, 3.07, 3.08,
3.09, 9.01, 9.02, 9.03, 10.01, 10.02, 10.03, 10.04, 10.05(c) and (d), 12.04,
13.04 through 13.07 and 13.09 through 13.14 shall survive the termination or
expiration of this agreement, as the case may be. In addition, Section 12.01
shall survive the expiration of this Agreement.

         Section 13.12. Headings. Any headings contained herein are for
directory purposes only, do not constitute a part of this Agreement, and shall
not be employed in interpreting this Agreement.

                                       22

<PAGE>

         Section 13.13. Waiver. A waiver of any breach of any provision of this
Agreement shall not be construed as a continuing waiver of other breaches of the
same or other provisions of this Agreement.

         Section 13.14 Relationship of the Parties. The parties hereto are
independent contractors. Nothing herein contained shall be deemed to create a
joint venture, agency or partnership relationship between the parties hereto.
Neither party shall have any power to enter into any contracts or commitments in
the name of, or on behalf of, the other party, or to bind the other party in any
respect whatsoever.

         IN WITNESS THEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives as of the day and year first
above written.

IMPLEMED, INC.                          BAXTER HEALTHCARE CORPORATION
                                        Edwards Critical-Care Division

By:  7 May 97                          By:  /s/
    -------------------------               -----------------------------

Date:                                   Date:  6 MAY 97
     ------------------------                ----------------------------

     Appendix A          Licensed Patents

     Appendix B          Compound Specifications

     Appendix C          Oligon Trademarks and Quality Control Standards

     Appendix D          Technology Transfer Procedures

     Appendix E          Countries for Seeking Patent Protection

     Appendix F          Description of 7F, 3 Lumen Catheter Set

                                       23<PAGE>
                                                                   EXHIBIT 10.23

                                LICENSE AGREEMENT

         This Agreement is made and entered into as of the 1st day of January,
1998, by and between the OKLAHOMA MEDICAL RESEARCH FOUNDATION, an Oklahoma
nonprofit corporation ("OMRF"), 825 N.E. 13th Street, Oklahoma City, Oklahoma
73104, and BRIDGE THERAPEUTIC PRODUCTS, INC., a corporation duly incorporated
under the laws of New York ("Licensee"), and maintaining offices at 42 Main
Street, Suite 178, Monsey, New York 10952.

Recitals

         A. OMRF owns rights in and to technology relating to thiazine dyes,
especially including methylene blue, for in vitro inactivation of viruses in
biological fluids, developed by Robert A. Floyd, et al., including the Licensed
Technology further described and defined below.

         B. Licensee desires to obtain the right to utilize Licensed Technology
in order to make, use and sell Licensed Products or Licensed Services (as
defined below).

         NOW, THEREFORE, for and in consideration of the foregoing and the
mutual covenants and agreements contained herein, the parties hereto agree as
follows:

1. Definitions

         As used herein:

         1.1 "Licensed Patents" means United States Patent No. 5,571,666 issued
November 5, 1996, for "Thiazine Dyes Used to Inactivate HIV in Biological
Fluids," Robert A. Floyd and Raymond F. Schinazi, inventors, all divisionals,
continuations, reissues, extensions and foreign counterparts of this patent and
all patents which issue thereon.

         1.2 "Licensed Technology" means the Licensed Patents and all designs,
technical information, know-how, knowledge, data, specifications, test results
and other information (including designs, technical information, know-how,
knowledge, data, specifications, test results and other information previously
disclosed to Licensee) relating to the Licensed patents and known to OMRF on the
date of this Agreement.

<PAGE>

         1.3 "Licensed Process" means any process which is covered in whole or
in part by an issued, unexpired claim or a pending claim contained in the
Licensed Patents in the country in which the process is practiced.

         1.4 "Licensed Product(s)" means any product or part of a product which:

         (a) is covered in whole or in part by an issued, unexpired claim or a
         pending claim contained in the Licensed Patents in the country in which
         the product or part of a product is made, used or sold,

         (b) is manufactured using a Licensed Process, or

         (c) is used in a Licensed Process and has no substantial use except in
         a Licensed Process.

         1.5 "Licensed Territory" means the entire world.

         1.6 "Licensed Services" means services provided by utilizing a Licensed
Process.

         1.7 "Sale"/"Sold" means the sale, transfer, exchange or other
disposition of Licensed Products or Licensed Services whether by gift or
otherwise, including but not by way of limitation, the use of Licensed Products
and Licensed Services by Licensee or any other person. Sales of Licensed
Products and of Licensed Services shall be deemed consummated upon the first to
occur of:

         (a) receipt of payment from the purchaser;

         (b) delivery of Licensed Products to the purchaser or a common carrier
         at the risk of the purchaser;

         (c) provision of Licensed Services to the Purchaser;

         (d) release of Licensed Products from consignment;

         (e) if deemed sold by use, when first put to such use; or

         (f) if otherwise transferred, exchanged or disposed of whether by gift
         or otherwise when such transfer, exchange, gift or other disposition
         occurs.

         1.8 "Net Selling Price" of Licensed Products and of Licensed Services
means the gross selling price to the purchaser and, if applicable, the value of
all properties and services received in consideration of a Sale of Licensed
Products or Licensed Services less only:

                                       2
<PAGE>

         (a) customary trade, quantity, or cash discounts actually allowed and
         taken;

         (b) any freight or other transportation costs, insurance charges,
         duties and tariffs separately invoiced to and paid or reimbursed by the
         purchaser;

         (c) returns which are accepted by Licensee from unrelated purchasers in
         accordance with its normal practice and for which Licensee gives credit
         to such purchasers; and

         (d) sales or use taxes which Licensee is under a legal obligation to
         pay;

provided, however, that no deduction shall be made for any customs or similar
duties imposed by any governmental agency in connection with the export or
import of Licensed Products; and further provided, that where a Sale is deemed
consummated by the gift, use or other disposition of Licensed Products or
Licensed Services for other than a selling price stated in cash, the term "Net
Selling Price" shall mean the average gross selling price billed by Licensee in
consideration of the Sale of comparable Licensed Products or Licensed Services
during the three (3) month period immediately preceding such Sale, without
reduction of any kind.

         1.9 "Sublicensee Fee(s)" mean all fees, reimbursements, payments and
transfers of value of any kind (without regard to how such are dominated)
received by Licensee at any time from or on behalf of a sublicensee of, or
transferee of rights in, the Licensed Technology (or any portion of the Licensed
Technology) in respect of or in connection with such sublicense or transfer of
rights and in addition to running royalties in the amounts specified under
subparagraph 4.1(A)(b) of this Agreement. By way of elaboration but not
limitation of the preceding sentence, the amounts specified in subparagraph
4.1(A)(b) of this Agreement are payable to OMRF by Licensee in respect of
activities of sublicensees, and such amounts received by Licensee from a
sublicensee shall not be considered Sublicensee Fees; however, all payments and
transfers of value to Licensee by or on behalf of any sublicensee in excess of
such running royalties shall be considered to be Sublicensee Fees.

         1.10 "Licensee's Auditors" means the independent certified or chartered
accountants regularly employed by Licensee to audit its accounts and certify its
financial statements.

         1.11 "Proprietary Information" is defined in paragraph 9.1 of this
Agreement.

         1.12 "Required Consents" is defined in paragraph 13.3 of this
Agreement.

                                       3
<PAGE>

         1.13 "Agreement" means this Agreement including all Exhibits (if any)
attached to this Agreement together with any written amendments of any of the
foregoing.

         1.14 "Field of Use" mean in vitro inactivation of viruses in biological
fluids and does not include any in vivo activities of any kind.

         1.15 "Annual Minimum" is defined in paragraph 4.1(A)(c) of this
Agreement.

         1.16 "FDA" means the United States Food and Drug Administration.

         1.17 "NDA" means an FDA new drug application.

         1.18 "PLA" means an FDA product license application (for a biological
product).

         1.19 "PMA" means an FDA pre-market approval application (for a medical
device).

         1.20 "Commercial Use" means the Sale by Licensee or one of its
sublicensees of a Licensed Product or Licensed Service in an arms length
transaction.

         1.21 "Qualified Financing" means the sale by Licensee of common or
preferred stock of Licensee on terms and conditions satisfactory to the
President of Licensee and the receipt by Licensee of net cash proceeds in
consideration thereof equal to at least Five Million Dollars ($5,000,000).

         1.22 "Licensee's Preferred Stock" means 3% cumulative preferred stock
of Licensee; all of which cumulative preferred stock shall be entitled to share
equally in dividends, which shall accrue thereon at the rate of three percent
(3%) per annum (without compounding), before any dividends or other
distributions are made with respect to the common stock or any other equity of
the Licensee, and such preferred stock dividends shall be payable upon
redemption or shall be added to the preferred stock's value upon conversion to
common stock. Upon liquidation or dissolution of Licensee, whether voluntary or
involuntary, the holders of shares of such preferred stock shall be entitled to
share equally among themselves in the assets of Licensee available for
distribution to shareholders, and before any distribution is made with respect
to any other stock, with each share of Licensee's Preferred Stock being entitled
to receive up to the value per share at which it was issued to OMRF plus the
amount of any accrued and unpaid dividends on that share through the date of
distribution. Each holder of Licensee's Preferred Stock shall be entitled to one
vote for each such share on all matters submitted to the shareholders.

                                       4
<PAGE>

         1.23 "Redeemable or Convertible" shall mean, with respect to Licensee's
Preferred Stock, that, at the holder's election, such stock shall be either: (a)
redeemable by Licensee for the value assigned to such stock when issued to OMRF
plus all accrued dividends or (b) convertible into common stock of the Licensee
at: (i) the price per share of common stock most recently used to issue such
shares, if such conversion is before Licensee's common stock is publicly traded,
or (ii) its fair market value, if such common stock is publicly traded.

2. Grant of License

         2.1 License. Subject to the license retained by OMRF in Paragraph 2.2
below and the other terms of this Agreement, OMRF hereby grants to Licensee the
exclusive right and license to use the Licensed Technology within the Field of
Use to make, have made, use, lease and sell Licensed Products and to practice
the Licensed Processes and sell Licensed Services in the Licensed Territory
during the term of this Agreement unless sooner terminated as provided in this
Agreement.

         2.2 Retained License and Rights. OMRF retains on behalf of itself the
perpetual, royalty-free right and license to practice the Licensed Technology
within the Field of Use for research and educational purposes. OMRF retains all
rights in and to the Licensed Technology outside the Field of Use.

         2.3 Sublicenses. Provided that written approval of OMRF (expressed by
its President) is obtained in advance, which approval shall not reasonably be
withheld, Licensee shall have the right to grant sublicenses under this
Agreement.

         2.4 Sublicensee Obligations. All sublicenses granted by Licensee shall
provide that the obligations to OMRF of Licensee under Sections 4, 5, 9, 11 and
12 of this Agreement shall be binding upon sublicensee as if it were a party to
this Agreement, and a copy of those sections of this Agreement shall be attached
to all sublicense agreements.

         2.5 Sublicense Copies and Reports. Licensee shall provide to OMRF (1) a
copy of all sublicense agreements promptly after execution, and (2) annually,
together with the report required in Paragraph 6.3 of this Agreement, copies of
all reports received by Licensee from its sublicensees during the preceding
twelve (12) month period.

         2.6 No Implied License. The license and right granted in this Agreement
shall not be construed to confer any rights upon Licensee by implication,
estoppel or otherwise as to any technology not specifically identified in this
Agreement as "Licensed Technology," nor shall it be construed to confer any
rights outside the Field of Use or outside the Licensed Territory.

                                       5
<PAGE>

         2.7 Government Assistance. Licensee acknowledges that if the Licensed
Technology or a portion thereof was developed with financial or other assistance
from the United States of America, applicable statutes, regulations and
Executive Orders of the United States of America, as they exist now or may in
the future be amended or enacted, action by the United States Government or its
agencies and institutional patent agreements may control, apply to or affect the
license granted hereunder and any sublicenses granted hereunder. In the event
any such future action by the United States Government or any of its agencies
makes it illegal, impossible or impractical for OMRF to grant the right and
license granted herein or to discharge its obligations under this Agreement,
either OMRF or Licensee may terminate this Agreement immediately by notice to
the other, but Licensee shall not have any right to return of any payments of
any kind theretofore made by it to OMRF pursuant to this Agreement. Licensee
acknowledges that it has received or has been afforded the opportunity to
receive a copy of any applicable confirmatory license from OMRF to the
government.

         2.8 Right of Negotiation. In the event OMRF determines that it desires
to grant a license to practice the Licensed Technology for in vivo inactivation
of viruses, OMRF shall so notify Licensee. If Licensee desires to obtain such a
license and so notifies OMRF within thirty (30) days after receipt of such
notice, OMRF shall negotiate with Licensee in good faith in an effort to enter
into such a license. In the event Licensee does not notify OMRF of its interest
in a license during such thirty-day period or no such license has been entered
into with ninety (90) days after the date of Licensee's notice to OMRF of its
interest in such a license, OMRF may negotiate with and grant one or more
licenses to other parties on any terms to which it may agree.

3. Due Diligence

         3.1 Diligence.

         (a) Licensee shall exert all efforts necessary to achieve significant
progress, by January 1, 1999, toward introduction and sale of Licensed Products
and Licensed Services in commercially significant quantities in commercially
significant countries. Such efforts shall include, for instance (and without
limitation), (i) filing applications with cognizant governmental regulatory
agencies or determining that such filings are not necessary, (ii) establishing
production capabilities for, or establishing contractual relationships to
procure, Licensed Products and Licensed Services, and (iii) establishing
arrangements and relationships for distribution of Licensed Products and
Licensed Services.

                                       6
<PAGE>

         (b) Licensee shall use its best efforts throughout the term of this
Agreement to bring one or more Licensed Products or Licensed Services to market
through a thorough, vigorous and diligent program for exploitation of the right
and license granted in this Agreement and to create, supply and service in the
Licensed Territory as extensive a market for Licensed Products or Licensed
Services as is possible in order to maximize its sale of Licensed Products or
Licensed Services.

         3.2 Business Plan and Annual Reports. In addition, Licensee shall
deliver to OMRF no later than sixty (60) days after the date of this Agreement a
business plan showing the amount of money, number and kind of personnel and time
budgeted and planned for each phase of development of the Licensed Products or
Licensed Processes and shall provide similar reports to OMRF annually with the
report required under paragraph 6.3 of this Agreement.

4. Royalties, Payments and Reimbursement; Board Membership

         4.1 Amounts. In partial consideration of the right and license granted
in the Agreement:

(A) Licensee shall pay to OMRF:

         (a) a license initiation fee in the amount of

                  (i) Fifty Thousand Dollars ($50,000), in cash, immediately
                  upon execution of this Agreement; plus

                  (ii) Three Hundred Thousand Dollars ($300,000) plus interest
                  compounded monthly at the rate of one and one-half percent
                  (1.5%) per month, beginning January 1, 1998, which interest
                  and principal amount of $300,000 shall be paid by Licensee to
                  OMRF no later than ten days after receipt by Licensee of the
                  proceeds of Licensee's next Qualified Financing; plus

         (b) a royalty equal to six percent (6%) of the Net Selling Price of the
         Licensed Products and Licensed Services Sold in the Licensed Territory
         by or for the Licensee and its sublicensees, which royalty shall be, or
         shall be reduced to, three percent (3%) of the Net Selling Price of the
         Licensed Products and Licensed Services Sold: (i) in a particular
         country, territory or possession, following expiration of all of the
         Licensed Patents in that country, territory or possession, and (ii)
         where there are no Licensed Patents; plus

                                        7
<PAGE>

         (c) in the event that Licensee's total annual royalty payment to OMRF
         pursuant to the preceding subparagraph during the third calendar year
         following the year during which this Agreement becomes effective and
         each calendar year thereafter is less than the annual minimum royalty
         set forth opposite such year below (the "Annual Minimum"), a payment to
         OMRF together with the annual report required in Paragraph 6.3 of this
         Agreement equal to the difference between such Annual Minimum and the
         total royalties paid to OMRF for the preceding year pursuant to
         paragraph 4.1(b) above:

         Calendar Year                                          Annual Minimum
         -------------                                          --------------
         third                                                  $120,000
         fourth                                                 $150,000
         fifth and each and each subsequent year                $250,000; and

(B) Upon execution of this Agreement, Licensee shall transfer to OMRF a number
of shares of convertible redeemable preferred stock of Licensee having value
equal to Three Million Dollars ($3,000,000), which stock shall be redeemable and
convertible into common stock of Licensee as fellows:

         (a) preferred stock having value equal to Five Hundred Thousand Dollars
         ($500,000) shall be Redeemable or Convertible on or after December 1,
         1998; provided, however that if OMRF requests redemption, and such
         redemption will be materially detrimental to Licensee, upon request by
         Licensee, OMRF will defer its request for redemption for a period
         specified by Licensee, which period shall not exceed twelve (12 )
         months after OMRF's original request; and

         (b) all remaining preferred stock owned by OMRF shall be Redeemable or
         Convertible on or after the earlier of December 1, 2001 or the date of
         Licensee's Initial Public Offering; plus

(C) Licensee shall pay to OMRF milestone payments in the amount set forth below
opposite the date of each milestone:

                  Milestone                                  Payment
                  ---------                                  -------
    (a) filing of the first NDA, PLA or                     $250,000,
    PMA

    (b) approval by the FDA of the                       $500,000; plus
    first NDA, PLA or PMA

(D) Within ten (10) days after Licensee's receipt of each Sublicensee Fee,
Licensee shall deliver to OMRF, in cash, a payment in respect of such
Sublicensee Fee equal to twenty percent (20%) of: (a) all Sublicensee Fees
received in cash or cash equivalents and (b) the fair market value of all
Sublicensee Fees other than ones received by Licensee in cash or cash
equivalents.

                                       8
<PAGE>

         4.2 Non-cumulative Royalties. Royalties shall be payable by Licensee
with respect to all of its or sublicensees' Sales except for resale of such
products purchased from Licensor. Royalties shall not become payable at the time
of sale, transfer or disposal among Licensee and its sublicensees, but shall
become payable only when Licensee or its sublicensees sell such products to a
third party, except where such sales to a third party are not contemplated, in
which event royalties shall be payable by Licensee when such sale, transfer or
disposal among Licensee and its sublicensees occurs.

         4.3 No Multiple Royalties. No multiple royalties shall be payable
because any Licensed Product or Licensed Service is covered by more than one
patent within the Licensed Patents.

         4.4 Deduction of Taxes. Any income or other tax which Licensee is
required to withhold and pay on behalf of OMRF with respect to the royalties
payable to OMRF under this Agreement shall be deducted from such royalties prior
to remittance to OMRF; provided however, that in regard to any tax so deducted,
Licensee shall give OMRF such assistance as may reasonably be necessary to
enable OMRF to claim exemption therefrom and to obtain for Licensor the most
favorable tax treatment legally possible. In each case Licensee shall furnish
OMRF with proper evidence of the taxes so paid on its behalf.

         4.5 Board Membership. Licensee shall cause Dr. William G. Thurman to be
nominated and elected to the Board of Directors of Licensee promptly following
the date of this Agreement, and shall cause Dr. Thurman (or another person
designated by OMRF to serve in his stead) to be re-elected during the term of
this Agreement.

         4.6 Interest. Royalty and other payments required in this Agreement
shall, if overdue, bear interest until payment at a par annum rate four percent
(4%) above the prime rate in effect at the Chase Manhattan Bank, N.A., New York,
New York, U.S.A., on the due date. The payment of such interest shall not
foreclose OMRF from exercising any other rights it may have because any payment
is late.

         4.7 Currency Conversion and Delivery. All payments required in this
Agreement shall be paid in United States dollars, delivered in accordance with
Paragraphs 6.2 and 13.1 of this Agreement or to such other place as OMRF may
reasonably designate consistent with the applicable laws and regulations in any
foreign country. If any currency conversion shall be required in connection with
the payment of royalties hereunder, such conversion shall be made at no expense
to OMRF at the exchange rate prevailing at the Chase Manhattan Bank, N.A., New
York, New York, U.S.A., on the last business day of the calendar quarterly
reporting period to which such payment(s) relate.

                                       9
<PAGE>

         4.8 No Royalties for Government Use. No royalty obligation shall arise
under this Agreement due to use by, for or on behalf of the United States
Govemment for government purposes if and to the extent a royalty-free license
has been granted to the United States Government, provided the amount charged to
the United States Government shall be reduced by the amount of the royalty
otherwise due to OMRF due hereunder.

5. Records

         5.1 Records of Sales. Licensee shall at all times during the term of
this Agreement and for a period of five (5) years after termination of this
Agreement keep at its principal place of business true and accurate records of
all Sales subject to Section 4 of this Agreement in such form and manner that
all royalties owed hereunder to OMRF may be readily and accurately determined.
Such records shall include, but not by way of limitation, all information
necessary for Licensee's Auditors'to prepare the reports required by Section 6
of this Agreement.

           5.2 Inspection. OMRF shall have the right, from time to time, at
reasonable times during normal business hours, during the period of this
Agreement and for five years thereafter, to examine the records of Licensee for
the purpose of verifying the amounts owed to OMRF hereunder and the accuracy of
the reports furnished by Licensee and Licensee's Auditors under Section 6 of
this Agreement. OMRF shall maintain the confidentiality of all confidential
information obtained by it from examination of Licensee's records and shall use
such information only for the purposes of this Agreement.

6. Reports

         6.1 Quarterly Reports. Licensee shall prepare and deliver to OMRF
within thirty (30) days after March 31, June 30, September 30 and December 31 of
each year during the term of this Agreement a true and accurate report, giving
such particulars of the business conducted by Licensee and its sublicensees
during the preceding three (3) month period as is required to calculate the
royalties due OMRF hereunder. Such report shall include at least the following:

         (a) the total Net Selling Price of all Licensed Products and Licensed
         Services Sold by Licensee and its sublicensees during the preceding
         three (3) month period and for the calendar year to date;

         (b) the royalties owed to OMRF pursuant to Paragraph 4.1(A)(b) with
         respect to the preceding three month period and for the calendar year
         to date;

         (c) the names and address of all new sublicensees of Licensee since the
         previous report; and

                                       10
<PAGE>

         (d) the total Net Selling Price of all Licensed Products and Licensed
         Services sold to the United States Government for which royalties are
         not due, if any.

         6.2 Payments. With each such report delivered, Licensee shall pay to
OMRF all amounts due under this Agreement. If no payments are due, Licensee
shall so report.

         6.3 Audit Report. Within ninety (90) days after the end of each whole
or partial fiscal year of Licensee during the term of this Agreement, Licensee
shall have its books and records relating to the Sale of Licensed Products and
Licensed Services and royalties due under this Agreement audited by Licensee's
Auditors and shall direct them to prepare and submit to OMRF certified financial
statements for the preceding fiscal year including, at a minimum, a balance
sheet together with an operating statement together with an audit report
stating:

         (a) the total Net Selling Price of all Licensed Products and Licensed
         Services Sold by Licensee and its sublicensees during such year; and

         (b) the amounts owed to OMRF pursuant to Paragraph 4.1 with respect to
         such year.

Such audit report shall be accompanied by a certification of Licensee's Auditors
that they have conducted an examination, in accordance with generally accepted
audit standards followed in the United States, of the books and records of
Licensee relating to such audit report and, based upon such examination, they
shall confirm the accuracy of such report.

7. Patent Prosecution

         7.1 OMRF shall apply for, seek prompt issuance of, and maintain during
the term of this Agreement the patents and patent applications, as the case may
be, included within the Licensed Patents that are (a) specifically identified by
patent number or application serial number in Paragraph 1.1 of this Agreement,
or (b) timely identified or specified by Licensee by notice to OMRF. The
prosecution and maintenance of all patent applications and patents within the
Licensed Patents shall be the primary responsibility of OMRF; provided, however,
that Licensee shall be afforded reasonable opportunities to advise OMRF and
shall cooperate with OMRF in such prosecution and maintenance. Licensee shall
reimburse OMRF for all out-of-pocket fees, costs and expenses paid or incurred
by OMRF in filing, prosecuting and maintaining the Licensed Patents during the
term of this Agreement, including all such fees, costs and expenses incurred in
prosecuting and defending all actions (other than patent infringement actions)
relating to the Licensed Patents (and the patent applications within the
Licensed Patents) in patent offices and other fora anywhere in the Licensed
Territory, including without limitation, opposition proceedings, interferences,
public use proceedings, declaratory judgment actions, revocation proceedings,
compulsory license proceedings and any other proceedings concerning validity,
enforceability or practice of the Licensed Patents. Licensee shall deliver such
reimbursement to OMRF (or, if OMRF requests, directly to OMRF's patent counsel)
within thirty (30) days after OMRF (or OMRF's counsel) notifies Licensee from
time to time of the amount of such fees, costs and expenses which have been paid
or incurred by OMRF. In addition, OMRF shall promptly advise Licensee of the
grant, lapse, revocation, surrender, of any threatened invalidation or of its
intention to abandon any such patent, application or foreign counterpart.

                                       11
<PAGE>

8. Patent Infringement

         8.1 Notice of Infringement. Licensee shall promptly notify OMRF of any
alleged infringement of the Licensed Patents and of any available evidence of
such infringement.

         8.2 Suit By OMRF. OMRF shall have the right, but shall not be
obligated, to commence suit for any infringement of the Licensed Patents, and
Licensee agrees that OMRF may cause Licensee to join it as a party to any such
suit at no expense to Licensee. The total cost of any such infringement action
commenced or defended solely by OMRF shall be borne by OMRF, and OMRF shall
retain any recovery or damages awarded in such action.

         8.3 Suit By Licensee. If within six (6) months after notice by Licensee
to OMRF of any alleged infringement, OMRF has been unsuccessful in persuading
the alleged infringer to desist and has not brought an infringement action, or
if OMRF notifies Licensee at any time of its intention not to bring suit against
an alleged infringer, then and only then, Licensee shall have the right, but
shall not be obligated, to commence suit for such infringement, and Licensee
may, in such suit, use the name of OMRF as a party plaintiff. No settlement,
consent judgment or other voluntary final disposition of the suit may be entered
into without the written consent of OMRF, which consent shall not be
unreasonably withheld. Licensee shall indemnify OMRF against any order for costs
or award of sanctions that may be made or entered against OMRF in such
proceedings.

         8.4 Defense. In the event that a declaratory judgment action alleging
invalidity, unenforceability or noninfringement of any of the Licensed Patents
shall be brought against OMRF, OMRF shall not have any obligation to defend such
action; provided, however, that if OMRF determines at any time that it does not
desire to defend such action, OMRF shall promptly so advise Licensee, and
Licensee shall then have the right to defend such action on OMRF's behalf at
Licensee's expense, in which event Licensee shall indemnify OMRF against any
order for costs or award of sanctions that may be made or entered against OMRF
in such proceedings. In the event that a declaratory judgment action alleging
invalidity, unenforceability or noninfringement of any of the Licensed Patents
shall be brought against Licensee, OMRF, at its option, shall have the right,
but shall not be obligated, within ninety (90) days after commencement of such
action, to intervene and take over the sole responsibility for the defense of
the action at its own expense.

                                       12
<PAGE>

         8.5 Cooperation. In any suit either party may commence or defend
pursuant to its rights under this Agreement in order to enforce or defend the
validity or enforceability of the Licensed Patents, the other party shall, at
the request and expense of the party initiating or defending such suit,
cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information,
samples, specimens and the like.

9. Confidentiality

         9.1 Maintenance of Confidentiality. Licensee will not, without the
express written consent of OMRF in advance, for any reason or at any time either
during or for a period of three years subsequent to the term of this Agreement
except as otherwise provided in this paragraph, use (except in the course of
practicing the licenses granted in this Agreement) or disclose (except as is
necessary in the course of marketing and selling Licensed Products or Licensed
Services, or obtaining governmental approval to do so, as contemplated in this
Agreement) to any person (including without limitation any director, officer or
employee of Licensee who is not under an obligation of confidentiality
substantially similar to the obligation contained herein) the Licensed
Technology or any other information relating to the Licensed Products or the
Licensed Services (hereinafter referred to as the "Proprietary Information").
This obligation of non-use and non-disclosure shall not extend to Proprietary
Information:

         (a) which can be demonstrated by Licensee to have been within its
         legitimate possession prior to the time of disclosure by OMRF;

         (b) which was in the public domain prior to disclosure by OMRF, as
         evidenced by documents which were generally published prior tc such
         disclosure;

         (c) which, after disclosure by OMRF, comes into the public domain
         through no fault of Licensee; or

         (d) which is disclosed to Licensee by a third party having legitimate
         possession thereof and the unrestricted right to make such disclosure.

                                       13
<PAGE>

         9.2 Prior Agreements. The provisions of this Agreement supersede and
shall be substituted for any terms of any prior confidentiality agreement
between Licensee and OMRF which are not consistent with this Agreement.

10. Term and Termination

         10.1 Duration. Unless sooner terminated as otherwise provided in this
Agreement, the term of this Agreement shall commence upon the date hereof and
shall continue until the later of: (a) fifteen (15) years after the date of the
first Commercial Use or (b) the date of expiration of the last to expire of the
Licensed Patents.

         10.2 Termination. OMRF shall have the right to terminate this Agreement
on the occurrence of any one or more of the following events:

         (a) failure of Licensee to make any payment required pursuant to this
         Agreement when due;

         (b) failure of Licensee to render reports to OMRF as required by this
         Agreement;

         (c) any assignment by Licensee of substantially all of its assets for
         the benefit of creditors;

         (d) placement of Licensee's assets in the hands of a receiver unless
         the receivership is dissolved within thirty (30) days thereafter; or

         (e) the breach by Licensee of any other term of this Agreement.

         10.3 Exercise. OMRF may exercise its right of termination by giving
Licensee, its trustees or receivers or assigns, thirty (30) days prior written
notice of OMRF's election to terminate. Upon the expiration of such period, this
Agreement shall automatically terminate unless the other party has previously
cured the breach or condition permitting termination under the preceding
paragraph, in which case this Agreement shall not terminate. Such notice and
termination shall not prejudice OMRF's rights to any royalties and other sums
due hereunder and shall not prejudice any cause of action or claim of OMRF
accrued or to accrue on account of any breach or default by Licensee.

         10.4 Failure to Enforce. The failure of OMRF at any time, or for any
period of time, to enforce any of the provisions of this Agreement shall not be
construed as a waiver of such provisions or the right of OMRF thereafter to
enforce each and every such provision.

                                       14
<PAGE>

         10.5 Termination by Licensee. Licensee may terminate this Agreement at
any time by giving OMRF six months prior written notice of Licensee's election
to terminate.

         10.6 Effect. In the event this Agreement is terminated for any reason
whatsoever, Licensee shall not have any right to return of any payments of any
kind theretofore made by it to OMRF pursuant to this Agreement, Licensee shall
return, or at OMRF's direction destroy, all plans, drawings, papers, notes,
writings and other documents, samples, organisms, biological materials and
models pertaining to the Licensed Technology, retaining no copies, and Licensee
shall refrain from using or publishing any portion of the Licensed Technology as
provided in Section 9 of this Agreement. Upon termination of this Agreement,
Licensee shall cease manufacturing, processing, producing, using, selling or
distributing Licensed Products and Licensed Services; provided, however, that
Licensee may continue to sell in the ordinary course of business for a period of
ninety (90) days reasonable quantities of Licensed Products which are fully
manufactured and in Licensee's normal inventory at the date of termination if:

         (a) all monetary obligations of Licensee to OMRF have been satisfied
         and

         (b) royalties on such sales are paid to OMRF in the amounts and in the
         manner provided in this Agreement.

The provisions of Sections 9, 11 and 12 of this Agreement shall remain in full
force and effect notwithstanding any termination of this Agreement.

11. Indemnification and Insurance

         11.1 Indemnification. Licensee shall defend, indemnify, and hold
harmless OMRF and the University of Oklahoma and their officers, directors,
trustees and employees and all of their heirs, executors, administrators and
legal representatives ("Indemnitees") from and against any and all claims,
demands, loss, liability, expense or damage (including investigative costs,
court costs and attorneys' fees) Indemnitees may suffer, pay or incur as a
result of claims, demands or actions against any of the Indemnitees arising or
alleged to arise by reason of or in connection with any and all personal
injury, economic loss and property damage caused or alleged to be caused or
contributed to in whole or in part by the manufacture, use, lease, sale or
sublicense of Licensed Products or Licensed Services by Licensee. Licensee's
obligations under this paragraph shall survive the expiration or termination of
this agreement for any reason.

         11.2 Insurance. Without limiting Licensee's indemnity obligations under
the preceding paragraph, Licensee represents that there is presently in force
and agrees that it shall maintain throughout the term of this Agreement and for
at least ten (10) years after its termination for any reason a liability
insurance policy which:

                                       15
<PAGE>

         (a) Insures lndemnitees for all claims, demands and actions mentioned
         in the preceding paragraph of this agreement;

         (b) Includes a contractual endorsement providing coverage for all
         liability which may be incurred by lndemnitees in connection with this
         Agreement;

         (c) Requires the insurance carrier to provide OMRF with no less than
         thirty (30) days written notice of any change in the terms or coverage
         of the policy or its cancellation; and

         (d) Provides lndemnitees product liability coverage in an amount not
         less than $10,000,000 combined single limit for bodily injury and
         property damage liability, subject to a deductible of not more than
         $10,000 per occurrence.

         11.3 Notice of Claims. Licensee will promptly notify OMRF of all claims
involving Products and will advise OMRF of the policy amounts that might be
needed to defend and pay any such claims. In the event OMRF believes the sum of
such policy amounts may exceed Licensee's total insurance coverage, OMRF may
request and Licensee shall acquire additional coverage, not to exceed the
amounts set forth in the preceding subparagraph of this Agreement, in order
fully to protect OMRF as set forth above.

         11.4 Insurance After Termination. Licensee hereafter shall, during the
term of this Agreement and for a period of ten (10) years after its termination
for any reason, provide OMRF copies of liability policies which comply fully
with this agreement. If Licensee fails at any time to maintain insurance as
required in this Agreement, OMRF may (but shall be under no obligation to)
purchase its own policy providing all or any of the coverage and recover from
Licensee the cost thereof, which shall be payable on demand.

         11.5 Compliance with Securities Laws. Licensee represents that any
sales of its securities that shall be affected subsequent to the date hereof
shall only be made, and that any activities to raise funds with which Licensee
will satisfy any of its obligations to OMRF hereunder will only be conducted, in
compliance with all applicable laws, including without limitation all applicable
federal, state or foreign securities laws. Licensee shall retain independent
legal counsel to advise Licensee with respect to the liabilities and obligations
arising out of, among other things, the raising of funds by Licensee to fund its
payment obligations to OMRF hereunder and the offers or sales of securities by
licensee. Such counsel shall be experienced and competent in corporate and
securities matters such as the foregoing and shall be reasonably acceptable to
OMRF. It is understood and agreed that current counsel to Licensee, Reid &
Priest, LLP, are acceptable to OMRF.

                                       16
<PAGE>

         11.6 Indemnification by Licensee. Licensee shall indemnify and hold
harmless Indemnitees against and with respect to all losses, damages, claims,
liabilities or expenses (including reasonable attorneys' fees and expenses)
incurred or sustained by any of them as a result of, or arising out of, any
violation, breach or nonfulfillment on the part of Licensee of any
representation, warranty, covenant or agreement made by Licensee pursuant to
this Agreement. OMRF or other indemnified party hereunder shall notify in
writing Licensee promptly after it or they acquire actual knowledge of any
action or claim against it or them hereunder which may give rise to liability of
Licensee pursuant to this paragraph. Licensee may, at its own expense, through
legal counsel approved by OMRF, defend or settle any such claim or action,
provided that Licensee posts security that is adequate in the reasonable
discretion of OMRF to protect OMRF or the other indemnified party or parties and
provided OMRF is notified in writing of Licensee's intent to do so defend within
ten days after Licensee has been notified by OMRF or such other indemnified
party of such claim or action.

         11.7 Contribution by Licensee. If the indemnification provided for in
the immediately preceding paragraph is unavailable or insufficient to hold
harmless an indemnified party in respect of any of the losses, claims, damages
or liabilities (or actions in respect thereof) referred to above, then Licensee
shall contribute to the amount paid or payable by each 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 benefits
received by Licensee on the one hand and OMRF and any other indemnified parties
on the other from the activities from which such losses, claims, damages or
liabilities arose, as well as the relative fault of Licensee on the one hand and
OMRF on the other in connection with the actions or inactions which resulted in
such losses, claims, damages or liabilities (or actions in respect thereof), as
well as any other relevant equitable considerations.

12. Merchantability, Exclusion of Warranties, Limitation of Liability and
    Licensee's Warranties

         12.1 Warranty. Licensee possesses the expertise and skill in the
technical areas in which the Licensed Products and Licensed Processes are
involved necessary to make, and has made, its own evaluation of the
capabilities, safety, utility and commercial application of the Licensed
Technology, Licensed Products and Licensed Processes.

         ACCORDINGLY, OMRF MAKES NO REPRESENTATION OR WARRANTY OF ANY KIND WITH
         RESPECT TO THE LICENSED TECHNOLOGY, LICENSED PRODUCTS, LICENSED
         PROCESSES OR LICENSED SERVICES AND EXPRESSLY DISCLAIMS ANY WARRANTIES
         OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY OTHER
         IMPLIED WARRANTIES WITH RESPECT TO THE CAPABILITIES, SAFETY, UTILITY OR
         COMMERCIAL APPLICATION OF THE LICENSED TECHNOLOGY, LICENSED PRODUCTS,
         LICENSED PROCESSES AND LICENSED SERVICES.

                                       17
<PAGE>

         12.2 Limitation of Liability.

         OMRF SHALL NOT BE LIABLE FOR ANY DIRECT, CONSEQUENTIAL OR OTHER DAMAGES
         SUFFERED BY LICENSEE OR ANY OTHERS RESULTING FROM THE USE OF THE
         LICENSED TECHNOLOGY, LICENSED PRODUCTS, LICENSED PROCESSES OR LICENSED
         SERVICES.

         12.3 Representations and Warranties of Licensee. Licensee hereby makes
the following representations and warranties to Licensee, which representations
and warranties, together with all other representations and warranties of
Licensee in this Agreement, are true and correct on the date hereof:

         (a) Licensee is a corporation duly organized, validly existing and in
good standing under the laws of the State of New York and has all requisite
corporate power and authority to enter into this Agreement and perform its
obligations hereunder.

         (b) Neither the execution or delivery of this Agreement, nor the
consummation of the transactions contemplated herein, will (a) violate or
conflict with any provision of the Incorporation or By-laws of Licensee, as each
may have been amended, (b) with or without the giving of notice or the lapse of
time or both (i) result in a breach of, or violate, or be in conflict with or
constitute a default under, or result in the termination or cancellation of, or
accelerate the performance required under, any security instrument, mortgage,
note, debenture, indenture, loan, lease, contract, agreement or other
instrument, to which Licensee is a party or by which it or any of its properties
or assets may be bound or affected, or (ii) result in the loss or adverse
modification of any lease, franchise, license or other contractual right or
other authorization granted to or otherwise held by Licensee, (c) require the
consent of any party to any such agreement or commitment to which Licensee is a
party or by which any of its properties or assets are bound, (d) result in the
creation or imposition of any lien, claim or encumbrance upon any property or
assets of Licensee, (e) require any consent, approval, authorization, order,
filing, registration or qualification of or with any court or governmental
authority or arbitrator to which Licensee is subject or by which any of its
properties or assets may be bound or affected.

         (c) All action to authorize the execution and delivery of this
Agreement and the consummation of the transactions contemplated herein have been
duly taken, and this Agreement constitutes the valid and binding obligation of
Licensee enforceable in accordance with its terms.

                                       18
<PAGE>

         (d) There are no claims (relating to patent infringement or any other
matters), actions, suits, proceedings, arbitrations or investigations pending
or, to the best of Licensee's knowledge, threatened, against Licensee which if
adversely determined would adversely affect the Licensed Technology (or the
patentability thereof) or other technology practiced by Licensee, or Licensee's
ability to enter into or carry out this Agreement or use or license Licensed
Technology.

13. Miscellaneous and General

         13.1 Export Controls. Licensee acknowledges that OMRF is subject to
United States laws and regulations controlling the export of technical data,
computer software, laboratory prototypes and other commodities and that its
obligations hereunder are contingent on compliance with all applicable United
States export and other laws and regulations. The transfer of certain technical
data and commodities may require a license from the cognizant agency of the
United States Government and/or written assurances by Licensee that Licensee
shall not export data or commodities to certain foreign countries without prior
approval of such agency. OMRF neither represents that a license shall not be
required nor that, if required, it shall be issued.

         13.2 Legal Compliance. Licensee agrees that it will comply with all
applicable laws and regulations relating to its manufacture, processing,
production, use, advertisement, marketing, sale and distribution of Licensed
Products and Licensed Services and that it will not at any time take any action
which would cause OMRF or Licensee to be in violation of any of such applicable
laws and regulations.

         13.3 Required Consents. Licensee shall obtain any and all licenses,
permits, approvals or authorizations ("Required Consents") required by any
governmental entity or agency having jurisdiction over the transactions
contemplated by this Agreement. OMRF shall cooperate with, and provide
reasonable assistance to, Licensee in obtaining the Required Consents; provided,
however, that Licensee shall reimburse OMRF for all of OMRF's out-of-pocket
expenses incurred in providing such assistance.

         13.4 Independent Contractor. Licensee's relationship to OMRF hereunder
shall be that of a licensee only. Licensee shall not be the agent of OMRF and
shall have no authority to act for or on behalf of OMRF in any matter. Persons
retained by Licensee as employees or agents shall not by reason thereof be
deemed to be employees or agents of OMRF.

         13.5 Patent Marking. Licensee agrees to mark the Licensed Products sold
in the United States and, to the extent practical, identify all Licensed
Services with all applicable United States patent numbers. All Licensed Products
shipped to or sold in other countries shall be to the extent practical marked in
such a manner as to conform with the patent laws and practice of the country of
manufacture or sale.

                                       19
<PAGE>

         13.6 Use of Names. None of the names of OMRF or any officers, trustees,
directors or employees of either may be used by Licensee in any manner for
announcing, advertising, promoting or marketing Licensed Products, Licensed
Services, Licensed Processes or securities unless the written permission of
OMRF, or the individual, as the case may be, is obtained in advance.

         13.7 Interpretation. The parties are equally responsible for the
preparation of this Agreement, and in any judicial proceeding the terms hereof
shall not be more strictly construed against one party than the other.

         13.8 Place of Execution. This Agreement and any subsequent
modifications or amendments hereto shall be deemed to have bean executed in the
State of Oklahoma, U.S.A. This Agreement shall not become effective or binding
upon OMRF until signed on its behalf by its President.

         13.9 Governing Law. This Agreement and all amendments, modifications,
alterations, or supplements hereto, and the rights of the parties hereunder,
shall be construed under and governed by the laws of the State of Oklahoma and
the United States of America. Only courts in the State of Oklahoma, U.S.A.,
shall have jurisdiction to hear and decide any controversy or claim between the
parties arises under or relating to this Agreement. Licensee hereby irrevocably
(a) consents to the jurisdiction and venue of the courts of the State of
Oklahoma, U.S.A., including federal courts located therein, in any action
arising under or relating to this Agreement and (b) waives any and all
jurisdictional defenses Licensee may have to the institution of any such action
in any such court. Licensee hereby agrees conclusively that by entering into
this Agreement it is transacting business within the State of Oklahoma, U.S.A.,
for the purpose of subjecting itself to the jurisdiction of such courts and
irrevocably constitutes and appoints the Secretary of State of Oklahoma, U.S.A.,
its agent for service of process in any action commenced against Licensee under
this Agreement, and Licensee agrees that service on such agent shall constitute
service on Licensee for all purposes. OMRF agrees to mail or otherwise deliver
to Licensee on a contemporaneous basis a copy of any complaint filed by OMRF
against Licensee which is served upon the Secretary of the State of Oklahoma.
Notwithstanding the foregoing, the scope and validity of any patents hereunder
shall be governed by the applicable laws of the country granting the patent
insofar as scope and validity are in issue.

                                       20
<PAGE>

         13.10 Notices. All notices, statements and reports required or
contemplated herein by one party to the other shall be in writing and shall be
deemed to have been given upon delivery in person or upon the expiration of five
(5) days after deposit in a lawful mail depository in the country of residence
of the party giving the notice, registered or certified airmail postage prepaid,
and addressed as follows:

                  If to OMRF:       Attention: President
                                    Oklahoma Medical Research Foundation
                                    825 N. E. 13th Street
                                    Oklahoma City, Oklahoma 73104
                                    Facsimile: (405) 271-3980

                  With a copy to:   John S. Pratt
                                    Kilpatrick Stockton LLP
                                    1100 Peachtree Street
                                    Suite 2800
                                    Atlanta, Georgia 30309-4530
                                    Facsimile: (404) 815-6555

                  If to Licensee:   Attention: President
                                    Bridge Therapeutic Products Inc.
                                    42 Main Street
                                    Suite 178
                                    Monsey, New York 10952
                                    Facsimile: (212) 787-5551

         Either party hereto may change the address to which notices to such
party are to be sent by giving notice to the other party at the address and in
the manner provided above. Any notice herein required or permitted to be given
may be given, in addition to the manner set forth above, by telex, facsimile or
cable, provided that the party giving such notice obtains acknowledgment by
telex, facsimile or cable that such notice has been received by the party to be
notified. Notice made in this manner shall be deemed to have been given when
such acknowledgment has been transmitted.

         13.11 Assignments and Inurement. Licensee shall not grant, transfer,
convey, sublicense or otherwise assign any of its rights or delegate any of its
obligations under this Agreement without the prior written consent of OMRF
except as explicitly permitted in this Agreement, and any attempt to do so
shall be of no effect; however, this Agreement shall be assignable by OMRF. This
Agreement shall be binding upon and inure to the benefit of the successors and
permitted assigns of the parties hereto.

         13.12 Entire Agreement. This Agreement constitutes the entire agreement
between OMRF and Licensee with respect to the subject matter hereof and shall
not be modified, amended or terminated except as herein provided or except by
another agreement in writing executed by the parties hereto.

                                       21
<PAGE>

         13.13 Headings. The section and paragraph headings are for convenience
only and are not a part of this Agreement.

         13.14 Severebiliry. All rights and restrictions contained herein may be
exercised and shall be applicable and binding only to the extent that they do
not violate any applicable laws and are intended to be limited to the extent
necessary so that they will not render this Agreement illegal, invalid or
unenforceable. If any provision or portion of any provision of this Agreement
not essential to the commercial purpose of this Agreement shall be held to be
illegal, invalid or unenforceable by a court of competent jurisdiction, it is
the intention of the parties that the remaining provisions or portions thereof
shall constitute their agreement with respect to the subject matter hereof, and
all such remaining provisions or portions thereof shall remain in full force and
effect. To the extent legally permissible, any illegal, invalid or unenforceable
provision of this Agreement shall be replaced by a valid provision which will
implement the commercial purpose of the illegal, invalid or unenforceable
provision. In the event that any provision essential to the commercial purpose
of this Agreement is held to be illegal, invalid or unenforceable and cannot be
replaced by a valid provision which will implement the commercial purpose of
this Agreement, this Agreement and the rights granted herein shall terminate.

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives as of the day and year first
above written.

                                  OMRF:
                                  OKLAHOMA MEDICAL RESEARCH FOUNDATION

                                  By:      /s/ William G. Thurman, M.D.
                                           ------------------------------------
                                           Dr. William G. Thurman
                                           President Emeritus

                                  Licensee:

                                  BRIDGE THERAPEUTIC PRODUCTS INC.

                                  By:      /s/ Steven H. Rouhandeh
                                           ------------------------------------
                                           Steven H. Rouhandeh
                                           President and CEO

                                       22
<PAGE>

                                ----------------
                                BIOENVISION INC.
                                ----------------

                           License Agreement Amendment
                                   Term Sheet
                               February 21, 2002

Type of Transaction           Amendment to license agreement dated January l,
                              1998 between Oklahoma Medical Research Foundation
                              ("OMRF") and Bridge Blood Technologies, LLC
                              ("Bridge Blood") and consent to transfer of
                              agreement to Bioenvision, Inc. ("Bioenvision").

Debt                          In exchange for canceling the note and its accrued
                              interest owed to OMRF by Bridge Blood, OMRF will
                              receive $75,000.

Preferred Stock               In exchange for canceling the convertible
                              preferred stock of Bridge Blood held by OMRF, OMRF
                              will receive 200,000 shares of Bioenvision common
                              stock and warrants to purchase 200,000 shares of
                              Bioenvision common stock at the closing price on
                              the date this amendment is executed.

Scope of License              OMRF agrees to include the therapeutic rights to
                              methylene blue in addition to the rights granted
                              under the current agreement.

Registration Rights           Bioenvision will register all shares associated
                              with this licensing agreement (piggy-back
                              registration rights) in conjunction with its next
                              registration statement.

Oklahoma Medical Research Foundation       Bioenvision, Inc.

By:                                        By:
   --------------------------                 --------------------------
Name:  Larry Kennedy                          Name:  Christopher Wood
Title: Director of Licensing                  Title: President & CEO

                        1 ROCKEFELLER PLAZA, SUITE 1600
                               NEW YORK, NY 10020

<PAGE>

                      Amendment No. 1 to License Agreement

         Reference is made to the License Agreement (the "License Agreement")
made and entered into on the 1st day of January, 1998, by and between the
OKLAHOMA MEDICAL RESEARCH FOUNDATION, an Oklahoma non profit corporation
("OMRF"), 1825 N.E. 13th Street, Oklahoma City, Oklahoma 73104, and BRIDGE
THERAPEUTIC PRODUCTS, INC., a corporation duly incorporated under the laws of
New York ("BRIDGE"), and maintaining offices at 42 Main Street, Suite 178,
Monsey, New York 10952.

         1. Definitions   All defined terms not otherwise defined herein are
defined as set forth in, or by reference in, the License Agreement.

         2. Scope of License   OMRF hereby agrees that Section 1.14 of the
License Agreement is hereby amended to read as follows: "Field of Use" means in
vitro or in vivo inactivation of viruses in biological fluids." By way of
clarification only, this shall mean that in vivo activities are no longer
excluded from the Field of Use. Accordingly, Section 2.8 of the License
Agreement is hereby deleted.

         3. Due Diligence   In view of the fact that the business plan is now
being implemented, the January 1, 1999 target date in Section 3.1(a) of the
License Agreement is hereby amended to [January 1, 2003], and the various
business plan and reporting obligations pursuant to the License Agreement are
hereby amended to commence from the date of this Amendment No. 1 provided, that
Licensee shall be required promptly to furnish reports contemplated by the
License Agreement with respect to any sales through the date of this Amendment
No. 1 which have not previously been furnished to OMRF.

         4. Debt   OMRF agrees that the obligation to pay principal and interest
pursuant to Section 4.1(A)(a)(ii) of the License Agreement, and any note
evidencing that obligation, shall be cancelled upon the payment to OMRF of
$75,000 in cash.

         5. Annual Royalty Payment   In view of the fact that the business plan
is now being implemented, Section 4.1(A)(c) is amended to provide that the
Annual Minimum royalty will be effective commencing in the third calendar year
following the year during which this Amendment No. 1 becomes effective.

         6. Preferred Stock

                  a. Cancellation of Preferred Stock; Issuance of Common Stock
         and Warrants   OMRF agrees that its rights with respect to convertible
         redeemable preferred stock pursuant to Section 4.1(B) of the License
         Agreement shall be cancelled upon receipt by OMRF of certificates
         evidencing 200,000 shares of common stock, par value $0.001 per share
         (the "Common Stock"), of Bioenvision, Inc. ("BIOENVISION"), and a
            -year warrant (the "Warrant") to purchase 200,000 shares of Common
         Stock at the closing price of the Common Stock on the date on which
         this Amendment No. 1 becomes effective. OMRF acknowledges and agrees
         that such certificates shall be issued in reliance upon an exemption
         from registration under the Securities Act of 1933, as amended (the
         "Securities Act") and will bear an appropriate restrictive legend. OMRF
         agrees to furnish customary representations and warranties regarding
         its status as an investor entitled to receive securities without
         compliance with registration.
<PAGE>

                  b. Registration Rights   The parties agree that OMRF will have
         the rights to piggy-back registration of the 200,000 shares of Common
         Stock [and the shares of Common Stock underlying the Warrant] on the
         next registration statement filed by Bioenvision, Inc. with the
         Securities and Exchange Commission, subject to OMRF furnishing
         representations, warranties and agreements customarily required of a
         selling stockholder in such a registration, and other customary terms
         and conditions.

         7. Consent to Transfer of License   In order to facilitate the
implementation of the business plan, BRIDGE, has indirectly assigned all of its
rights under the License Agreement to Pathagon, Inc., a wholly-owned subsidiary
of BIOENVISION. OMRF hereby consents to the assignment to Pathagon, Inc.
("PATHAGON") and agrees that PATHAGON shall be deemed to be the LICENSEE for all
purposes of the License Agreement. OMRF acknowledges and agrees that BIOENVISION
may desire to have the License Agreement assigned by PATHAGON to BIOENVISION
directly in order facilitate implementation of the business plan and, in that
case, OMRF consents to such an assignment to BIOENVISION should BIOENVISION
require it, and Section 13.11 of the License Agreement is amended accordingly.

         8. Notices   All notices to Licensee shall be delivered to the
following address:

[INSERT ADDRESS]

         with a copy to:

         Andrew J. Cosentino, Esq.
         Piper Marbury Rudnick & Wolfe, LLP
         1251 Avenue of the Americas
         New York, New York 10020-1104
         Facsimile No. (212) 884-8588

         9. Closing; Effectiveness   As promptly as practicable after the
parties have signed and delivered this Amendment No. 1 to each other, the
applicable parties shall deliver the certificates and make the payments required
by Paragraph 4 and 6(a) of this Amendment No. 1. This Amendment No. 1 shall be
deemed to be effective upon the completion of those deliveries and payments.

         10. Headings   The headings in this Amendment No. 1 are for convenience
only and are not a part of this Agreement.

                                       2
<PAGE>

           11. License Agreement in Effect   The parties acknowledge and agree
that the License Agreement is in full force and effect as amended hereby. The
provisions of Article 13 of the License Agreement are specifically incorporated
herein by reference.

         IN WITNESS WHEREOF, the parties have caused this Amendment No. 1 to be
executed by their duly authorized representatives as of the ____ day of April,
2002.

                                           OMRF:

                                           OKLAHOMA MEDICAL RESEARCH FOUNDATION

                                  By:
                                           ------------------------------------
                                           Name:
                                           Title:

                                           LICENSEE:

                                           BIOENVISION, INC.

                                  By:
                                           ------------------------------------
                                           Name:
                                           Title:

                                       3

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