Document:

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                                                                   EXHIBIT 10.49

                                                   COLLATERAL THERAPEUTICS, INC.
                                                       1998 STOCK INCENTIVE PLAN

                                                          AUTOMATIC OPTION GRANT
                                                  FOR NON-EMPLOYEE BOARD MEMBERS

                                                        (IMMEDIATELY EXERCISABLE
                                                    SUBJECT TO REPURCHASE RIGHT)

                            STOCK PURCHASE AGREEMENT
                         FOR NON-EMPLOYEE BOARD MEMBERS

              THIS AGREEMENT is made as of this _______ day of ______________,
20____, by and among Collateral Therapeutics, Inc., a Delaware corporation (the
"Corporation"), and ________________, the holder of a stock option (the
"Optionee") granted as an Automatic Option Grant for Non-Employee Board Members
under the Corporation's 1998 Stock Incentive Plan and __________________, the
Optionee's spouse (if any). Grants under the Automatic Option Grant program are
immediately exercisable for all option shares but unvested shares are subject to
Repurchase Rights of the Corporation.

     I.       EXERCISE OF OPTION

              1.1 EXERCISE. Optionee hereby purchases _____________ shares
("Purchased Shares") of the Corporation's common stock ("Common Stock") pursuant
to that certain option ("Option") granted Optionee on _____________, 19___
("Grant Date") to purchase up to ____________ shares of the Common Stock ("Total
Purchasable Shares") under the Corporation's 1998 Stock Incentive Plan (the
"Plan") at an option price of $__________ per share ("Option Price").

              1.2 PAYMENT. Concurrently with the delivery of this Agreement to
the Corporate Secretary of the Corporation, Optionee shall pay the Option Price
for the Purchased Shares in accordance with the provisions of the agreement
between the Corporation and Optionee evidencing the Option (the "Option
Agreement") and shall deliver whatever additional documents may be required by
the Option Agreement as a condition for exercise, together with a duly-executed
blank Assignment Separate from Certificate (in the form attached hereto as
Exhibit A) with respect to the Purchased Shares.

              1.3 UNVESTED SHARES. Unvested Shares (as defined in paragraph 4.1
below) will be held in book form by the Corporation's transfer agent.

              1.4 SHAREHOLDER RIGHTS. Until such time as the Corporation
actually exercises its Repurchase Right under Article IV, Optionee (or any
successor in interest) shall have all the rights of a shareholder (including
voting and dividend rights) with respect to the Purchased Shares, subject,
however, to the transfer restrictions of Article III.

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     II.      SPECIAL TAX ELECTION

              2.1 SECTION 83(b) ELECTION APPLICABLE TO THE EXERCISE OF A
NON-STATUTORY STOCK OPTION. The Purchased Shares are acquired hereunder pursuant
to the exercise of A NON-STATUTORY STOCK OPTION. The Optionee understands that
under Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"),
the excess of the fair market value of the Purchased Shares on the date any
forfeiture restrictions applicable to such shares lapse over the Option Price
paid for such shares will be reportable as ordinary income on such lapse date.
For this purpose, the term "forfeiture restrictions" includes the right of the
Corporation to repurchase the Purchased Shares pursuant to the Repurchase Right
provided under Article IV of this Agreement. Optionee understands that he/she
may elect under Section 83(b) of the Code to be taxed at the time the Purchased
Shares are acquired hereunder, rather than when and as such Purchased Shares
cease to be subject to such forfeiture restrictions. Such election must be filed
with the Internal Revenue Service within thirty (30) days after the date of this
Agreement. Even if the fair market value of the Purchased Shares at the date of
this Agreement equals the Option Price paid (and thus no tax is payable), the
election must be made to avoid adverse tax consequences in the future.

              2.2 A form for making an election under Section 83(b) is attached
as EXHIBIT B hereto. Optionee understands that failure to make this filing
within the thirty (30)-day period may result in the recognition of ordinary
income by the Optionee as the forfeiture restrictions lapse. OPTIONEE
ACKNOWLEDGES THAT IT IS OPTIONEE'S SOLE RESPONSIBILITY, AND NOT THE
CORPORATION'S, TO FILE A TIMELY ELECTION UNDER SECTION 83(B), EVEN IF OPTIONEE
REQUESTS THE CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS/HER
BEHALF. This filing should be made by registered or certified mail, return
receipt requested, and Optionee must retain two (2) copies of the completed form
for filing with his or her State and Federal tax returns for the current tax
year and an additional copy for his or her records.

     III.     TRANSFER RESTRICTIONS

              3.1 RESTRICTION ON TRANSFER. Optionee shall not transfer, assign,
encumber or otherwise dispose of any of the Purchased Shares which are subject
to the Corporation's Repurchase Right under Article IV. Such restriction on
transfer, however, shall not be applicable to (i) a gratuitous transfer of the
Purchased Shares made to the Optionee's spouse or issue, including adopted
children, or to a trust for the exclusive benefit of the Optionee or the
Optionee's spouse or issue, PROVIDED AND ONLY IF the Optionee obtains the
Corporation's prior written consent to such transfer, (ii) a transfer of title
to the Purchased Shares effected pursuant to the Optionee's will or the laws of
intestate succession or (iii) a transfer to the Corporation in pledge as
security for any purchase-money indebtedness incurred by the Optionee in
connection with the acquisition of the Purchased Shares.

              3.2 TRANSFEREE OBLIGATIONS. Each person (other than the
Corporation) to whom the Purchased Shares are transferred by means of one of the
permitted transfers specified in paragraph 3.1 must, as a condition precedent to
the validity of such transfer, acknowledge in writing to the Corporation that
such person is bound by the provisions of this Agreement and that

                                       2.
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the transferred shares are subject to the Corporation's Repurchase Right to the
same extent such shares would be so subject if retained by the Optionee.

              3.3 DEFINITION OF OWNER. For purposes of Articles III and IV of
this Agreement, the term "Owner" shall include the Optionee and all subsequent
holders of the Purchased Shares who derive their chain of ownership through a
permitted transfer from the Optionee in accordance with paragraph 3.1.

     IV.      REPURCHASE RIGHT

              4.1 GRANT. The Corporation is hereby granted the right (the
"Repurchase Right"), exercisable at any time during the sixty (60)-day period
following the date the Optionee ceases for any reason to remain in Service or
(if later) during the sixty (60)-day period following the execution date of this
Agreement, to repurchase at the Option Price all or (at the discretion of the
Corporation and with the consent of the Optionee) any portion of the Purchased
Shares in which the Optionee has not acquired a vested interest in accordance
with the vesting provisions of paragraph 4.3 (such shares to be hereinafter
called the "Unvested Shares"). For purposes of this Agreement, the Optionee
shall be deemed to remain in Service for so long as the Optionee continues to
render periodic services to the Corporation or any parent or subsidiary
corporation, whether as an employee, a non-employee member of the board of
directors, or an independent contractor or consultant.

              4.2 EXERCISE OF THE REPURCHASE RIGHT. The Repurchase Right shall
be exercisable by written notice delivered to the Owner of the Unvested Shares
prior to the expiration of the applicable sixty (60)-day period specified in
paragraph 4.1. The notice shall indicate the number of Unvested Shares to be
repurchased and the date on which the repurchase is to be effected, such date to
be not more than thirty (30) days after the date of notice. The Corporation
shall, concurrently with the transfer of the Unvested Shares to the Corporation
on the Corporation's books, pay to Owner in cash or cash equivalents (including
the cancellation of any purchase-money indebtedness), an amount equal to the
Option Price previously paid for the Unvested Shares which are to be
repurchased.

              4.3 TERMINATION OF THE REPURCHASE RIGHT.

                  A. The Repurchase Right shall terminate with respect to any
Unvested Shares for which it is not timely exercised under paragraph 4.2.

                  B. The Repurchase Right shall terminate, and cease to be
exercisable, with respect to any and all Purchased Shares in which the Optionee
vests in accordance with the vesting schedule specified in the Grant Notice.

                  C. The Repurchase Right shall terminate upon the consummation
of one of the following transactions unless expressly assigned by the
Corporation to its successor upon the occurrence of any one or more of the
following transactions:

                                  (i) a merger or consolidation in which the
            Corporation is not the surviving entity,

                                       3.
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                                 (ii) a sale, transfer or other disposition of
            all or substantially all of the Corporation's assets, or

                                 (iii) any transaction (including a merger)
            through or by means of which a majority of the Corporation's
            outstanding voting securities are transferred to a person or persons
            other than those who held such securities immediately prior to the
            merger.

For purposes of this Section, the Corporation shall be treated as a new
corporation following a transaction described in subparagraph (iii) above and
the Repurchase Right hereunder shall terminate absent an express assignment of
such right.

              4.4 AGGREGATE VESTING LIMITATION. If the Option is exercised in
more than one increment so that the Optionee is a party to one or more other
Stock Purchase Agreements ("Prior Purchase Agreements") which are executed prior
to the date of this Agreement, then the total number of Purchased Shares as to
which the Optionee shall be deemed to have a fully-vested interest under this
Agreement and all Prior Purchase Agreements shall not exceed in the aggregate
the number of Purchased Shares in which the Optionee would otherwise at the time
be vested, in accordance with the vesting provisions of paragraph 4.3, had all
the Purchased Shares been acquired exclusively under this Agreement.

              4.5 FRACTIONAL SHARES. No fractional shares shall be repurchased
by the Corporation. Accordingly, should the Repurchase Right extend to a
fractional share (in accordance with the vesting provisions of paragraph 4.3) at
the time the Optionee ceases Service, then such fractional share shall be added
to any fractional share in which the Optionee is at such time vested in order to
make one whole vested share no longer subject to the Repurchase Right.

              4.6 ADDITIONAL SHARES OR SUBSTITUTED SECURITIES. In the event of
any stock dividend, stock split, recapitalization or other change affecting the
Corporation's outstanding Common Stock as a class effected without receipt of
consideration, then any new, substituted or additional securities or other
property (including money paid other than as a regular cash dividend) which is
by reason of any such transaction distributed with respect to the Purchased
Shares shall be immediately subject to the Repurchase Right, but only to the
extent the Purchased Shares are at the time covered by such right. Appropriate
adjustments to reflect the distribution of such securities or property shall be
made to the number of Purchased Shares and Total Purchasable Shares hereunder
and to the price per share to be paid upon the exercise of the Repurchase Right
in order to reflect the effect of any such transaction upon the Corporation's
capital structure; PROVIDED, however, that the aggregate purchase price shall
remain the same.

     V.       GENERAL PROVISIONS

              5.1 ASSIGNMENT. The Corporation may assign its Repurchase Right
under Article IV to any person or entity selected by the Corporation's Board of
Directors, including (without limitation) one or more shareholders of the
Corporation.

              If the assignee of the Repurchase Right is other than a one
hundred percent (100%) owned subsidiary corporation of the Corporation or the
parent corporation owning one hundred percent (100%) of the Corporation, then
such assignee must make a cash payment to the

                                       4.
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Corporation, upon the assignment of the Repurchase Right, in an amount equal to
the excess (if any) of (i) the fair market value of the Unvested Shares at the
time subject to the assigned Repurchase Right over (ii) the aggregate repurchase
price payable for the Unvested Shares thereunder.

              5.2 DEFINITIONS.

                        (a) Except as otherwise provided herein, capitalized
         terms shall have the meanings assigned to them in the Plan.

                        (b) For purposes of this Agreement, the following
         provisions shall be applicable in determining the parent and
         subsidiary corporations of the Corporation:

                                  (i) Any corporation (other than the
              Corporation) in an unbroken chain of corporations ending with the
              Corporation shall be considered to be a parent corporation of the
              Corporation, provided each such corporation in the unbroken chain
              (other than the Corporation) owns, at the time of the
              determination, stock possessing fifty percent (50%) or more of the
              total combined voting power of all classes of stock in one of the
              other corporations in such chain.

                                  (ii) Each corporation (other than the
              Corporation) in an unbroken chain of corporations beginning with
              the Corporation shall be considered to be a subsidiary of the
              Corporation, provided each such corporation (other than the last
              corporation) in the unbroken chain owns, at the time of the
              determination, stock possessing fifty percent (50%) or more of the
              total combined voting power of all classes of stock in one of the
              other corporations in such chain.

              5.3 NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement
or in the Plan shall confer upon the Optionee any right to continue in the
Service of the Corporation (or any parent or subsidiary corporation of the
Corporation employing or retaining Optionee) for any period of specific duration
or interfere with or otherwise restrict in any way the rights of the Corporation
(or any parent or subsidiary corporation of the Corporation employing or
retaining Optionee) or the Optionee, which rights are hereby expressly reserved
by each, to terminate the Optionee's Service at any time for any reason
whatsoever, with or without cause.

              5.4 NOTICES. Any notice required in connection with the Repurchase
Right or the disposition of any Purchased Shares covered thereby shall be given
in writing and shall be deemed effective upon personal delivery or upon deposit
in the United States mail, registered or certified, postage prepaid and
addressed to the party entitled to such notice at the address indicated below
such party's signature line on this Agreement or at such other address as such
party may designate by ten (10) days advance written notice under this paragraph
5.4 to all other parties to this Agreement.

              5.5 NO WAIVER. The failure of the Corporation (or its assignees)
in any instance to exercise the Repurchase Right granted under Article IV shall
not constitute a waiver

                                       5.
<PAGE>

of any other repurchase rights that may subsequently arise under the provisions
of this Agreement or any other agreement between the Corporation and the
Optionee or the Optionee's spouse. No waiver of any breach or condition of this
Agreement shall be deemed to be a waiver of any other or subsequent breach or
condition, whether of like or different nature.

              5.6 CANCELLATION OF SHARES. If the Corporation (or its assignees)
shall make available, at the time and place and in the amount and form provided
in this Agreement, the consideration for the Purchased Shares to be repurchased
in accordance with the provisions of this Agreement, then from and after such
time, the person from whom such shares are to be repurchased shall no longer
have any rights as a holder of such shares (other than the right to receive
payment of such consideration in accordance with this Agreement), and such
shares shall be deemed purchased in accordance with the applicable provisions
hereof and the Corporation (or its assignees) shall be deemed the owner and
holder of such shares.

     VI.      MISCELLANEOUS PROVISIONS

              6.1 OPTIONEE UNDERTAKING. Optionee hereby agrees to take whatever
additional action and execute whatever additional documents the Corporation may
in its judgment deem necessary or advisable in order to carry out or effect one
or more of the obligations or restrictions imposed on either the Optionee or the
Purchased Shares pursuant to the express provisions of this Agreement.

              6.2 AGREEMENT IS ENTIRE CONTRACT. This Agreement constitutes the
entire contract between the parties hereto with regard to the subject matter
hereof. This Agreement is made pursuant to the provisions of the Plan and shall
in all respects be construed in conformity with the express terms and provisions
of the Plan.

              6.3 GOVERNING LAW. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, as such laws
are applied to contracts entered into and performed in such State without resort
to that State's conflict of laws rules.

              6.4 COUNTERPARTS. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument.

              6.5 SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall
inure to the benefit of, and be binding upon, the Corporation and its successors
and assigns and the Optionee and the Optionee's legal representatives, heirs,
legatees, distributees, assigns and transferees by operation of law, whether or
not any such person shall have become a party to this Agreement and have agreed
in writing to join herein and be bound by the terms and conditions hereof.

              6.6 POWER OF ATTORNEY. Optionee's spouse hereby appoints Optionee
his or her true and lawful attorney in fact, for him or her and in his or her
name, place and stead, and for his or her use and benefit, to agree to any
amendment or modification of this Agreement and to execute such further
instruments and take such further actions as may reasonably be necessary to
carry out the intent of this Agreement. Optionee's spouse further gives and
grants unto Optionee as his or her attorney in fact full power and authority to
do and perform every act

                                       6.
<PAGE>

necessary and proper to be done in the exercise of any of the foregoing powers
as fully as he or she might or could do if personally present, with full power
of substitution and revocation, hereby ratifying and confirming all that
Optionee shall lawfully do and cause to be done by virtue of this power of
attorney.

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

                                              COLLATERAL THERAPEUTICS, INC.

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

                                              OPTIONEE(1)
                                                         ----------------------
                                              Address:
                                                      -------------------------

              The undersigned spouse of Optionee has read and hereby approves
the foregoing Stock Purchase Agreement. In consideration of the Corporation's
granting the Optionee the right to acquire the Purchased Shares in accordance
with the terms of such Agreement, the undersigned hereby agrees to be
irrevocably bound by all the terms and provisions of such Agreement, including
(specifically) the right of the Corporation (or its assignees) to purchase any
and all interest or right the undersigned may otherwise have in such shares
pursuant to community property laws or other marital property rights.

                                              ---------------------------------
                                              OPTIONEE'S SPOUSE

                                              Address:
                                                      -------------------------

                                              ---------------------------------

--------
         1 I understand that the Section 83(b) election that is attached hereto
may be filed in connection with this Stock Purchase Agreement. As set forth in
Article II, I understand that I, and NOT the Corporation, will be responsible
for completing the form and filing the election with the appropriate office of
the Federal and State tax authorities and that if such filing is not completed
within thirty (30) days after the date of this Agreement, I will not be entitled
to the tax benefits provided by Section 83(b).

                                       7.
<PAGE>

                                    EXHIBIT A

                      ASSIGNMENT SEPARATE FROM CERTIFICATE

                              AND POWER OF ATTORNEY

              FOR VALUE RECEIVED, THE UNDERSIGNED HEREBY SELLS, ASSIGNS AND
TRANSFERS UNTO COLLATERAL THERAPEUTICS, INC. (THE "CORPORATION"), ______________
SHARES OF THE COMMON STOCK OF THE CORPORATION ACQUIRED THROUGH EXERCISE OF AN
OPTION GRANTED UNDER THE NON-EMPLOYEE DIRECTOR AUTOMATIC OPTION GRANT PROGRAM,
WHICH SHARES ARE STANDING IN HIS/HER NAME ON THE BOOKS OF THE CORPORATION
REPRESENTED BY CERTIFICATE NO. ____________ AND DOES HEREBY IRREVOCABLY
CONSTITUTE AND APPOINT ______________ AS ATTORNEY TO TRANSFER THE SAID STOCK ON
THE BOOKS OF THE CORPORATION WITH FULL POWER OF SUBSTITUTION IN THE PREMISES.

DATED:
      ---------------------

                                      NAME:
                                                 ------------------------------

                                      SIGNATURE:
                                                 ------------------------------

INSTRUCTION: PLEASE DO NOT FILL IN ANY BLANKS OTHER THAN THE DATE, NAME AND
SIGNATURE LINE. THE PURPOSE OF THIS ASSIGNMENT IS TO ENABLE THE CORPORATION TO
EXERCISE ITS REPURCHASE RIGHT SET FORTH IN THE AGREEMENT WITHOUT REQUIRING
ADDITIONAL SIGNATURES ON THE PART OF THE OPTIONEE.

                                      A-1
<PAGE>

                                                               REPURCHASE RIGHTS
                                    EXHIBIT B

                           SECTION 83(b) TAX ELECTION

THIS STATEMENT IS BEING MADE UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE,
PURSUANT TO TREAS. REG. SECTION 1.83-2.

(1)      THE TAXPAYER WHO PERFORMED THE SERVICES IS:

         NAME:
         ADDRESS:
         TAXPAYER IDENT. NO.:

(2)      THE PROPERTY WITH RESPECT TO WHICH THE ELECTION IS BEING MADE IS
         _________ SHARES OF THE COMMON STOCK OF COLLATERAL THERAPEUTICS, INC.

(3)      THE PROPERTY WAS ISSUED ON _______________ , 20__.

(4)      THE TAXABLE YEAR IN WHICH THE ELECTION IS BEING MADE IS THE CALENDAR
         YEAR 20__ .

(5)      THE PROPERTY IS SUBJECT TO A REPURCHASE RIGHT PURSUANT TO WHICH THE
         ISSUER HAS THE RIGHT TO ACQUIRE THE PROPERTY AT THE ORIGINAL PURCHASE
         PRICE IF FOR ANY REASON TAXPAYER'S SERVICE TO THE ISSUER IS TERMINATED.
         THE ISSUER'S REPURCHASE RIGHT WITH RESPECT TO THE PROPERTY LAPSES IN A
         SERIES OF ANNUAL INSTALLMENTS OVER A "_____" YEAR PERIOD BEGINNING ON
         ________,19__ AND ENDING ON ________, 20__.

(6)      THE FAIR MARKET VALUE AT THE TIME OF TRANSFER (DETERMINED WITHOUT
         REGARD TO ANY RESTRICTION OTHER THAN A RESTRICTION WHICH BY ITS TERMS
         WILL NEVER LAPSE) IS $______ PER SHARE.

(7)      THE AMOUNT PAID FOR SUCH PROPERTY IS $__________ PER SHARE.

(8)      A COPY OF THIS STATEMENT WAS FURNISHED TO COLLATERAL THERAPEUTICS, INC.
         FOR WHOM TAXPAYER RENDERED THE SERVICES UNDERLYING THE TRANSFER OF
         PROPERTY.

(9)      THIS STATEMENT IS EXECUTED AS OF: ____________.

_______________________________                _________________________________
SPOUSE (IF ANY)                                TAXPAYER

THIS FORM MUST BE FILED WITH THE INTERNAL REVENUE SERVICE CENTER WITH WHICH
TAXPAYER FILES HIS/HER FEDERAL INCOME TAX RETURNS. THE FILING MUST BE MADE
WITHIN 30 DAYS AFTER THE EXECUTION DATE OF THE STOCK PURCHASE AGREEMENT.

                                      B-1<PAGE>

                                                                   EXHIBIT 10.50
                                  CONFIDENTIAL

March 31, 1999

Ms. Sandra Woodruff
Executive Director
Veterans Medical Research Foundation
VA Medical Center (151A)
3350 La Jolla Village Drive
San Diego,  CA  92161

Dear Sandra:

Collateral Therapeutics, Inc. (hereinafter "CTI") proposes that this letter be
the written agreement which sets forth the understanding and obligations of the
parties regarding the research conducted by Dr. Kirk Hammond in the field of
cardiovascular disease (hereinafter, the "Studies").

1.       Kirk Hammond, M.D. (hereinafter "Investigator") and the Veterans
         Medical Research Foundation (hereinafter "VMRF" or the "Foundation")
         agree to utilize their best efforts to conduct the Studies. Further
         details concerning the Studies will be discussed in confidence by the
         Investigator with CTI representatives. If during the term of this
         agreement, the Investigator shall cease to conduct the studies,
         and/or no longer be employed by the Veterns' Affairs Healthcare
         System, then VMRF shall promptly so notify CTI and CTI shall have
         the option to terminate the funding of the studies.  CTI will
         promptly advise VMRF in writing if CTI so elects.

2.       The Investigator agrees to comply with the federal regulations relating
         to the Animal Welfare Act (7. U.S.C. 2131, et seq) and the United
         States Department of Agriculture regulations as set forth in 9 C.F.R.
         parts 1, 2, and 3.

3.       The Investigator will render periodic confidential reports as may be
         requested to CTI.

4.       In preparation for and during the course of these Studies, it may be
         necessary for CTI to disclose to the Investigator or to VMRF certain
         technical and business information; all such information, as well as
         the results of the research, subject to the restriction in paragraph #5
         of this agreement, is considered to be highly confidential by CTI. It
         is understood that VMRF may disclose the amount of this research
         funding in any routine disclosure as required by VMRF policy, but shall
         not use or disclose the subject matter of the research. The
         Investigator and the Foundation agree to take all reasonable
         precautions to prevent disclosure of this and other

<PAGE>

Veterans Medical Research Foundation
March 19, 1999
Page 2

         confidential information to others and to not use confidential
         information without the prior express written consent of CTI. These
         restrictions upon disclosure of said information shall extend beyond
         the term of this contract for a period of ten (10) years, but shall
         cease to apply as to any specific portion of the information which is
         or becomes available to the public other than by the Investigator or
         the Foundation's fault.

5.       The text of any oral or written disclosure of the results of the
         Studies shall be submitted to CTI at least sixty (60) days prior to any
         and all such disclosures. The Investigator and the Foundation shall
         consider any suggestions from CTI concerning said disclosure, but are
         not bound to incorporate such suggestions in any oral or written
         publications. CTI may request addition of a sponsor's representative to
         authorship on documents submitted for publication. The Investigator and
         the Foundation agree to delay any such disclosure for up to six (6)
         months following notification of CTI, at CTI's request, to allow for
         completion of development and filing of patent applications.

6.       The Investigator and VMRF agree to disclose promptly and fully to an
         authorized representative of CTI all ideas, developments and
         inventions, whether or not patentable, conceived or reduced to practice
         by the Investigator and/or VMRF as a result of the Studies provided for
         herein. All of such ideas, developments and inventions shall be the
         property of CTI. Accordingly, the Investigator and VMRF agree to assign
         outright to CTI the entire right, title and interest, both in the
         United States and abroad, to such ideas, developments and inventions
         and any resulting patent applications and patents, without payment
         other than the fees provided for herein. The Investigator and VMRF
         further agree to execute any and all documents and take such other
         steps which CTI determines are necessary or convenient to fully
         implement its proprietary rights in such ideas, developments and
         inventions, such as, including but not limited to executing assignment
         documents, filing and obtaining patents, and fully cooperating in the
         prosecution of such property rights, but at no expense to them. CTI
         will have the above-mentioned patent documents drafted, prosecuted and
         maintained at its own expense. The Investigator and VMRF warrant that
         it has appropriate ownership rights in such ideas, developments and
         inventions to carry out its obligations under this paragraph. Both
         parties acknowledge that in so far as U.S. government facilities or
         resources are utilized in this work, the U.S. Government may have
         rights in any invention and may choose to exercise these rights.

7.       Both parties also acknowledge that the Department of Veterans Affairs
         has informed the VMRF that VMRF has waived all patent rights that may
         develop in connection with this agreement.

<PAGE>

Veterans Medical Research Foundation
March 19, 1999
Page 3

8.       CTI shall have the right to use the results and data of the Studies in
         any manner deemed appropriate to CTI's business interests. Such uses
         may include but are not limited to, disclosure as may be useful to meet
         legal and business obligations, such as to support patent applications,
         both foreign and domestic, or satisfy the requirements of any
         government agency. In the event that work resulting from the Studies is
         published in the scientific literature by CTI, acknowledgement will be
         made to the Investigator and the Department of Veterans Affairs in the
         accepted style, as appropriate. CTI will not use the name of the
         Investigator or VMRF for advertising, other commercial purposes, in
         publications or otherwise without appropriate written permission,
         unless required by law or government regulations. CTI agrees that the
         investigator shall have priority publication rights over data generated
         from these studies subject to paragraph #5.

9.       In consideration for the Studies, during the term of this agreement CTI
         agrees to pay VMRF direct reimbursement for all expenditures made by
         VMRF in connection with the Studies as directed by the Investigator,
         and pay reimbursement for certain direct costs based on the formula as
         set forth below. In this regard, CTI agrees to pay VMRF the following:
         (i) a $5,000 primary monthly payment (hereafter the "Primary Monthly
         Payment"); (ii) a supplemental monthly payment (hereafter the
         "Supplemental Monthly Payment") equal to all other expenditures made by
         VMRF in connection with the Studies during each month of the term of
         this agreement in excess of the Primary Monthly Payment; and (iii) a
         monthly payment covering the allocable indirect costs associated with
         all amounts expended by VMRF for the Studies which shall be computed by
         multiplying the sum of the Primary Monthly Payment and the Supplemental
         Payment by a 40% indirect overhead factor.

         The amount of the Supplemental Monthly Payment will be computed based
         on the overall level of expenditures by VMRF for the Studies each
         month, less the Primary Monthly Payment. VMRF shall agree to provide
         CTI with sufficient information for it to compute the Supplemental
         Monthly Payment. Following the term of the agreement, VMRF shall agree
         to promptly return any amounts advanced to VMRF by CTI for which there
         is not any corresponding expenditure in connection with the Studies.

         CTI shall have the right to review any and all financial records of
         VMRF relating solely to these Studies on a quarterly basis, to
         determine the sufficiency of the Supplemental Payment. Annually VMRF
         shall provide CTI with a financial statement and account reconciliation
         covering all amounts expended by VMRF for the Studies during the term
         of this agreement.

<PAGE>

Veterans Medical Research Foundation
March 19, 1999
Page 4

10.      This contract will become effective on March 31, 1999, and will
         terminate three years from that date unless otherwise extended by
         mutual consent of CTI and the Foundation and Investigator, evidenced
         by written agreement.

11.      The parties agree to take all other action necessary to effect the
         rights of the parties herein.

12.      Only VMRF or CTI, or an assignee or affiliate of VMRF or CTI, shall
         have rights to enforce any obligation under this Agreement. No other
         persons or entities shall be deemed an intended beneficiary under this
         Agreement.

13.      The parties acknowledge that Dr. Robert L. Engler may have a conflict
         of interest regarding this agreement and Dr. J. Parthemore shall serve
         in his place for VMRF on all matters relating to this agreement.

14.      If any provision of this Agreement is held to be unenforceable for any
         reason, it shall be adjusted if possible rather than voided in order to
         achieve the intent of the parties to the greatest extent possible. In
         any event, other provisions of the Agreement shall be deemed valid and
         enforceable to the greatest extent possible.

If the terms of this agreement meet with the approval of the Veterans Medical
Research Foundation, please sign and date two copies and return one to CTI at
your earliest convenience.

Most Sincerely,
COLLATERAL THERAPEUTICS, INC.

/s/ Christopher J. Reinhard
-------------------------------
Christopher J. Reinhard
Chief Financial and Operating Officer

ACCEPTED AND AGREED TO:
VETERANS MEDICAL RESEARCH FOUNDATION

/s/ Sandra Woodruff                          4/12/99
--------------------------------             ---------------------------------
Sandra Woodruff                              Date

PRINCIPLE INVESTIGATOR

/s/ Dr. H. Kirk Hammond                       4/15/99
--------------------------------             ---------------------------------
Dr. H. Kirk Hammond                          Date

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