Document:

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                                                                REDACTED VERSION

                                  EXHIBIT 10.11

                                       TO

                         LIGHT SCIENCES ONCOLOGY, INC.'S

                       REGISTRATION STATEMENT ON FORM S-1

                                 INITIALLY FILED

                                 APRIL 21, 2006

                           REGISTRATION NO. 333-133474

     "[ * ]" = omitted, confidential material, which material has been
separately filed with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

EXCLUSIVE LICENSE AGREEMENT

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                           EXCLUSIVE LICENSE AGREEMENT

                           DATED AS OF OCTOBER 5, 2005

                                     BETWEEN

                           LIGHT SCIENCES CORPORATION

                                       AND

                          LIGHT SCIENCES ONCOLOGY, INC.

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                           EXCLUSIVE LICENSE AGREEMENT

     THIS EXCLUSIVE LICENSE AGREEMENT (this "Agreement") is effective as of
October 5, 2005 (the "Effective Date") by and between Light Sciences
Corporation, a Washington corporation ("LSC"), and Light Sciences Oncology,
Inc., a Washington corporation ("LSO").

     WHEREAS, LSC owns or controls certain technology and intellectual property
rights relating to the treatment, diagnosis and monitoring of cancer and may in
the future own or control additional technology and intellectual property
rights;

     WHEREAS, LSO desires to enter an exclusive license with LSC to
commercialize such technology in the Field of Use (as defined below);

     WHEREAS, concurrent with the execution of this Agreement, LSC and LSO shall
enter into a separate sublicense agreement with respect to the LSC Excluded
Technology (as defined below) and LSO shall not obtain any rights to the LSC
Excluded Technology pursuant to this Agreement;

     WHEREAS, LSC has created certain subsidiaries and may create additional
subsidiaries, in its sole and complete discretion, which have licensed or will
license the LSC Licensed Technology (as defined below) from LSC in order to
pursue research and development efforts in separate fields of use other than the
Field of Use (such subsidiaries being referred to as the "Additional LSC Subs");
and

     WHEREAS, LSO and the Additional LSC Subs desire to provide for the control
and sharing of costs related to the prosecution and maintenance of patents
included in the LSC Licensed Technology and the prosecution of any infringement
actions related thereto;

     NOW, THEREFORE, in consideration of the covenants and obligations
hereinafter set forth, the parties hereto hereby agree as follows:

1.   Definitions.

     1.1. "Abandonment" shall have the meaning set forth in Section 5.3(a).

     1.2. "Additional Licensees" shall mean each Additional LSC Sub and any
other Person who has obtained a license to the LSC Licensed Technology directly
from LSC for use outside the Field of Use and who has a right similar to that of
LSO to participate in the prosecution, maintenance and enforcement of the LSC
Licensed Technology. A Person shall not be deemed to be an Additional Licensee
with respect to particular LSC Licensed Technology if the Person (including an
Additional LSC Sub) does not have an exclusive license to the particular LSC
Licensed Technology or rights with respect to the prosecution, maintenance and
enforcement of the particular LSC Licensed Technology that are similar to LSO's
rights set forth in Section 5. For example, a Person who did not license a
particular patent (or subsequently had the patent removed from the definition of
"LSC Patents" that it was licensing) would not be an

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"Additional Licensee" for purposes of the notices and other rights and
activities described in Section 5 for "Additional Licensees" with respect to the
patent.

     1.3. "Additional LSC Subs" shall have the meaning set forth in the
Recitals.

     1.4. "Additional LSC Sub License Agreement" shall have the meaning set
forth in Section 7.7.

     1.5. "Affiliate" with respect to any Person shall mean entities that are
controlled by or are under common control of such Person; provided, however,
that the Additional LSC Subs, LSC and LSO shall be deemed not to be Affiliates
of each other or be deemed to be controlled by, controlling or under common
control with each other, for the purposes of this Agreement. For purposes of
this definition, "control" shall mean that a Person owns or controls fifty
percent (50%) or more of the voting securities of an entity or of an interest in
the assets, profits or earnings of an entity.

     1.6. "Bankruptcy Code" shall have the meaning set forth in Section 8.2.

     1.7. "Bona Fide Dispute" shall have the meaning set forth in Section 5.2.

     1.8. "Confidential Information" shall have the meaning set forth in Section
6.1.

     1.9. "Damages" shall mean any and all claims, suits, losses, damages,
costs, fees, and expenses, including reasonable attorney fees and litigation
costs.

     1.10. "Dispute" shall have the meaning set forth in Section 11.3.

     1.11. "Field of Use" shall mean the diagnosis, prophylaxis, treatment and
monitoring in humans or animals of tumors, malignant disease, cancers,
neoplasias, metaplasias, hyperplasias and dysplasias, including, but is not
limited to, tumors located anywhere in the body (e.g., brain, eye, ear, head &
neck, intra-oral, esophageal, intra-thoracic, lung, intra-abdominal, stomach,
ileum, pancreas, spleen, colon, kidney, gonads, uterus, rectum, extremities and
skin), carcinomas in situ, dysplastic tissue changes in organs and surfaces,
hyperplastic tissues in organs and surfaces and sarcomas. The Field of Use does
not include [ * ].

     1.12. "Governmental Authority" means any U.S. Federal, state, foreign or
local government or any court, tribunal, administrative agency or commission or
other governmental or regulatory authority, body or agency, including any
self-regulatory organization.

     1.13. "Infringement Parties in Interest" shall have the meaning set forth
in Section 5.4(a).

     1.14. "License" shall have the meaning sent forth in Section 2.

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     1.15. "Licensed Products" shall mean any products which would infringe the
claims of the LSC Patents, LSC Patent Applications or LSC Trademarks if there
were no license between LSC and LSO, or which involve the use of LSC Know-How.

     1.16. "Liens" means any lien, pledge, mortgage, security interest, claim,
lease, charge, option, right of first refusal or first offer, transfer
restriction, voting requirement or any other encumbrance, restriction or
limitation, other than any the rights granted contemporaneously or subsequently
to the Additional LSC Subs or other Additional Licensees.

     1.17. "LSC Event of Default" shall have the meaning set forth in Section
8.3(a).

     1.18. "LSC Excluded Technology" shall mean any and all rights licensed to
LSC under the License and Supply Agreement dated as of April 28, 2000 by and
among Nippon Petrochemicals Co., Ltd., Meiji Seika Kaisha, Ltd, and LSC, as
amended from time to time.

     1.19. "LSC Improvements" shall mean any new or useful invention, process or
improvement, patentable or unpatentable, relating to or arising from the LSC
Patents or LSC Patent Applications, as the case may be, conceived or first
reduced to practice or demonstrated to have utility by LSC during the Term.

     1.20. "LSC Know-How" shall mean any invention, discovery, know-how, data,
formulae, information, composition, process, trade secret, equipment and other
subject matter relating to the LSC Licensed Technology that is (a) owned or
controlled by LSC during the Term and (b) necessary or useful for the research,
development, manufacture or commercialization of any Licensed Product in the
Field of Use. LSC Know-How does not include LSC Excluded Technology.

     1.21. "LSC Licensed Technology" shall mean the LSC Patents, LSC Patent
Applications, LSC Know-How and LSC Trademarks; provided, however, in no case
shall the LSC Licensed Technology include any LSC Excluded Technology, which
shall be subject to a separate agreement.

     1.22. "LSC Patents" shall mean the patents listed in Appendix A, as well as
foreign counterparts thereof, patents issuing from LSC Patent Applications,
patents that are in-licensed or controlled by LSC during the Term, and
reexaminations, reissues, patents of addition and extensions of the foregoing
(including, without limitation, any LSC Improvements relating to the foregoing).
LSC Patents do not include LSC Excluded Technology or patents that have been
removed from the definition pursuant to Section 5.2 or 5.3(c) due to the action
or inaction of LSO.

     1.23. "LSC Patent Applications" shall mean (a) the patent applications
listed in Appendix B and (b) all patent applications that cover inventions or
discoveries that are made, developed, conceived, first reduced to practice,
in-licensed or controlled by LSC during the Term, as well as continuations,
divisionals, continuations-in-part, and foreign counterparts of each of the
foregoing subsections (a) and (b) (including, without limitation, any LSC
Improvements relating to the foregoing). LSC Patent Applications do not include
LSC Excluded

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Technology or patent applications that have been removed from the definition
pursuant to Section 5.2 or 5.3(c) due to the action or inaction of LSO.

     1.24. "LSC Trademarks" shall mean the trademarks and trademark applications
listed in Appendix C.

     1.25. "LSO Patents" shall mean all patents and patent applications covering
inventions that arise from the License to the extent such inventions are made,
developed, conceived or first reduced to practice by LSO alone or jointly with
others during the Term (but only to the extent of LSO's rights in same),
including all divisionals, continuations, and continuations-in-part of such
patent applications as well as reexaminations, reissues, patents of addition,
extensions and any foreign counterparts thereof.

     1.26. "LSO Technology" shall mean the LSO Patents and, to the extent not
covered by the LSO Patents, any inventions, discoveries, know-how, data,
formulae, information, compositions, processes, trade secrets, equipment and
other subject matter relating to or derived from the exercise of the License, to
the extent such inventions are conceived, discovered or made by LSO alone or
jointly with others (but only to the extent of LSO's rights in same) during the
Term.

     1.27. "Net Sales" shall mean the aggregate amounts invoiced each year by
LSO and its Affiliates and sublicensees from sales of Licensed Products to
unrelated third parties (i.e., distributors, agents, wholesalers, customers or
reimbursement organizations, as the case may be), less the following deductions
related to the sales: (a) discounts, credits, rebates, allowances and
adjustments for rejections, recalls or returns; (b) retroactive price reductions
or rebates; (c) sales, excise, value-added and similar taxes or duties; (d)
transportation, insurance and other handling and packing expenses; (e)
management fees that are paid during the relevant time period to group
purchasing organizations; and (f) bad debts. For the sake of clarification,
amounts invoiced for transfers between or among LSO, Additional Licensees, LSC
and any of their Affiliates or sublicensees, and Licensed Products provided free
of charge as samples or provided for clinical trials, regulatory purposes or
compassionate use, shall not be included in the calculation of Net Sales.

     1.28. "Person" shall mean a natural person, partnership (general or
limited), corporation, joint venture, business trust, limited liability company,
cooperative, association or other form of business organization, trust, estate
or any other entity, other than a Governmental Authority.

     1.29. "Pro Rata Percentage" shall mean the percentage obtained by
multiplying [ * ] by the fraction with a numerator equal to [ * ] and a
denominator equal to [ * ]. The Pro Rata Percentage shall be recalculated
whenever an Additional LSC Sub or Additional Licensee is created [ * ] for
purposes of the calculation in the preceding sentence, which recalculated Pro
Rata Percentage shall be applied retroactively as described in Section 5.2. By

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way of example, if on the date hereof LSO, an Additional LSC Sub and two (2)
Additional Licensees exist, the Pro Rata Percentage shall be [ * ], and if an
additional Additional LSC Sub is created hereafter, the Pro Rata Percentage
shall become [ * ], assuming LSO and each Additional LSC Sub and Additional
Licensee counts as [ * ].

     1.30. "Prosecution Costs" shall have the meaning set forth in Section 5.2.

     1.31 "Right of First Refusal and Co-Sale Agreement" shall mean the Right of
First Refusal and Co-Sale Agreement dated October 6, 2005, by and among LSO, LSC
and each of the persons and entities identified as parties therein.

     1.32. "Royalty Period" shall mean for each Licensed Product, on a
country-by-country basis, the later of (a) the last to expire of any patents
included in the LSC Patents (and termination of any LSC Patent Applications with
then-pending claims) in the country that would be infringed, but for this
Agreement, by the sale of the Licensed Product in the country or (b) ten (10)
years after first commercial sale to a third party (not an Affiliate or
sublicensee) of any Licensed Product in the country after approval to sell has
been received from the appropriate Governmental Authorities in the country.

     1.33 "Term" shall have the meaning set forth in Section 8.1.

     1.34 "Threshold Amount" shall mean [ * ].

2.   License.

          (a) LSC Licensed Technology. LSC hereby grants to LSO an exclusive
(even as to LSC), perpetual, worldwide license, with right to assign or
sublicense, to: (a) use the LSC Licensed Technology in the Field of Use; (b)
make and have made Licensed Products within the Field of Use; and (c) sell, have
sold, offer to sell, import, export or otherwise distribute Licensed Products
for use within the Field of Use (the "License"); provided, however, the duration
of the License may only be terminated if the conditions in Section 5.2, 8 or 9.2
occur.

          (b) Reservation of Rights. LSC reserves for itself a nonexclusive,
nontransferable right to use the LSC Licensed Technology in the Field of Use
solely for noncommercial research and development purposes.

3.   Consideration; Taxes.

     3.1. Royalty. As consideration for the License granted by LSC to LSO under
Section 2, LSO shall pay a royalty to LSC in an amount equal to [ * ] of Net
Sales of Licensed Products during the Royalty Period. At the end of the Royalty
Period for each Licensed Product, no further royalties shall accrue and the
License shall become fully paid-up and royalty-free.

     3.2. Reports and Payments. LSO shall provide written reports and payments
to LSC

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within [ * ] days after the close of each calendar quarter during the Term.
These reports shall show for such calendar quarter sales by LSO and any
sublicensees of Licensed Products, details of the quantities of each type of
Licensed Product sold in each country, Net Sales for each Licensed Product, the
form of revenue received and the royalties due LSC thereon. Concurrently with
the making of each such report, LSO shall make payment to LSC in U.S. dollars of
amounts payable for the period covered by such report. Where Net Sales is in a
currency other than U.S. dollars, conversion of Net Sales into U.S. dollars
shall be at the exchange rate prevailing at Citicorp N.A. on the last business
day of the quarter to which the payment pertains.

     3.3. LSO Records. LSO shall keep clear, accurate and complete records, for
a period of at least three (3) years, for each reporting period in which sales
occur showing the sales or other disposition of Licensed Products in sufficient
detail to enable verification of amounts payable pursuant to Section 3.1.
Following reasonable notice, LSC shall have the right, at LSC's sole expense, to
have LSO's books and records examined during regular business hours, but not
more than once a year, by an independent accounting firm reasonably acceptable
to LSO, which firm is bound in confidence to disclose only evidence of
noncompliance by LSO with respect to the calculation of royalties due hereunder.
In the event LSO has underpaid LSC, LSO shall pay the amount of such
underpayment immediately and, to the extent such underpayment is more than [ * ]
for the audited period, shall reimburse LSC for the reasonable expense of the
audit. If LSO has overpaid LSC, such overpayment shall be immediately refunded
by LSC.

     3.4. LSC Records. LSC shall keep clear, accurate and complete records, for
a period of at least three (3) years, for each reporting period which LSC has
submitted statements of account to LSO of costs and expenses which are
reimbursable under this Agreement, in sufficient detail to enable verification
of amounts payable. Following reasonable notice, LSO shall have the right, at
LSO's sole expense, to have LSC books and records examined during regular
business hours, but not more than once a year, by an independent accounting firm
reasonably acceptable to LSC, which firm is bound in confidence to disclose only
evidence of noncompliance of LSC with respect to the calculation of reimbursable
expenses. In the event LSC has overcharged LSO, LSO shall pay immediately the
amount of such overcharge that has been paid by LSO and, to the extent such
overcharge is more than [ * ] for the audited period, reimburse LSO for the
expense of the audit. If LSO has underpaid LSC, the amount of such underpayment
shall be immediately paid to LSC.

     3.5. Confidentiality of Reports and Records. A party's information that is
set forth in (a) the reports required by Section 3.2 and (b) the records subject
to examination under Sections 3.3 and 3.4, shall be subject to Section 6 hereof
and maintained in confidence by the other party and its independent accounting
firm performing the audit and shall not be used for any purpose other than
verification of the performance of obligations hereunder and the enforcement
thereof.

     3.6. Taxes. LSO is solely responsible for the payment of any taxes
(including withholding, sales or use taxes, intangible taxes and property taxes)
resulting from the payment

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of royalties to LSC hereunder, other than any taxes assessed by any jurisdiction
which are based on the income of LSC. LSO agrees to hold harmless LSC from all
claims and liability arising from LSO's failure to report or pay any such taxes.

     3.7 Value of Know-How. LSO acknowledges that the LSC Know-How constitutes
valuable and substantial trade secrets and know-how of LSC. The parties
acknowledge and agree that, for their mutual convenience and after considering
other alternatives, the payments to LSC set forth in this Agreement, including
the structure and timing of royalty payments, are an appropriate and mutually
convenient way of compensating LSC.

4.   Ownership of Intellectual Property; Use of LSC Trademarks/Names/Patent
     Numbers.

     4.1. LSO Technology. Any and all intellectual property created, generated
or developed by or on behalf of LSO during the Term from the exercise of the
License shall vest in and be owned by LSO and shall be considered to be part of
LSO Technology.

     4.2. LSC Licensed Technology. Subject to the License, any and all
intellectual property created, generated or developed by or on behalf of LSC
during the Term shall vest in and be owned by LSC and, if necessary or useful in
the Field of Use, shall be included in the LSC Licensed Technology.

     4.3. Joint Inventions. Any intellectual property arising or resulting from
the inventive work by one or more employees of LSC and LSO (and any other
Persons), as to which the employees would be inventors under the patent laws of
the United States, shall be jointly owned by the parties (each party having an
undivided interest therein), and all of LSC's rights and interests therein shall
be subject to the License. The laws of the United States with respect to joint
ownership of inventions shall be applied in all jurisdictions of the world to
the parties' joint ownership interests.

     4.4. Use of LSC Trademarks. The License includes the exclusive right to use
the LSC Trademarks in advertising, labeling, promoting and selling Licensed
Products in the Field of Use. The nature and quality of all Licensed Products
sold by LSO under the LSC Trademarks shall be of a quality and nature comparable
to similar products sold by other reputable medical device, pharmaceutical or
biotechnology companies. To facilitate this quality control provision, LSO
shall, upon reasonable request, permit LSC to inspect at LSO's facility or its
manufacturer's facility any Licensed Products to be sold by LSO under the LSC
Trademarks. In addition, LSO shall, upon reasonable request, provide to LSC
samples of any advertising or promotional materials published by LSO that
display the LSC Trademarks. LSO shall use the LSC Trademarks with such trademark
designations as are reasonably necessary to protect the status of the LSC
Trademarks as trademarks.

     4.5. Use of Name. Except as provided by this Agreement, neither party shall
use the trademark, indicia or name of the other party on any advertising,
promotional or labeling of Licensed Product without the written approval of the
other party, which approval shall not be unreasonably withheld, conditioned or
delayed.

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     4.6. Marking. LSO shall mark all Licensed Products with the applicable
patent and patent application number(s) in accordance with all applicable local,
state and federal rules and regulations.

5.   Patent Maintenance and Enforcement.

     5.1. Prosecution and Maintenance. Except upon Abandonment, LSC shall be
responsible for all filing, prosecution and maintenance of the LSC Patents and
LSC Patent Applications in every jurisdiction worldwide and shall be responsible
for determining strategy with respect thereto. LSC shall act in good faith and
in a commercially reasonable and diligent manner with respect to the filing,
prosecution and maintenance of the LSC Patents and LSC Patent Applications. LSC
shall give due respect to LSO's position with respect to the filing, prosecution
and maintenance of the LSC Patents and LSC Patent Applications and LSC may, in
its sole discretion, also give due respect to the Additional Licensees'
positions with respect thereto. LSC shall keep LSO promptly and fully informed
of the course of patent filings, prosecution and other proceedings, including
providing to LSO copies of substantive communications, search reports and third
party observations submitted to or received from patent offices, all of which
shall be provided to LSO in sufficient time for LSO to review and provide
comments to LSC prior to LSC taking any action or making any filing with any
patent offices. LSO shall have the right to review proposed filings, pending
applications, patents and other proceedings and make recommendations to LSC
concerning them and their conduct, which LSC shall consider in good faith and
take into account in its filing, prosecution and maintenance of the LSC Patents
and LSC Patent Applications. LSO shall be responsible for its own expenses in
providing such patent consultation to LSC. Any input provided by LSO to LSC with
respect to the filing, prosecution and maintenance of the LSC Patents and LSC
Patent Applications shall be deemed to be the Confidential Information of LSC.

     5.2. Allocation of Expenses; Penalty for Nonpayment. LSO shall pay the Pro
Rata Percentage of the out-of-pocket costs and expenses (including attorneys'
fees) reasonably incurred by LSC after the Effective Date in filing, prosecuting
and maintaining the LSC Patents and LSC Patent Applications (the "Prosecution
Fees"); provided, however, that LSO may elect, upon [ * ] days prior written
notice to LSC and the Additional Licensees, not to be responsible for or pay the
Prosecution Fees thereafter accruing for particular patents or patent
applications in particular jurisdictions, in which case such patents or patent
applications shall be removed from the definition of "LSC Patents" or "LSC
Patent Applications" (and therefore not be included in the License,
notwithstanding any language in Section 2 to the contrary); provided further,
however, that any party who becomes an Additional Licensee (or has its Pro Rata
Percentage recalculated because it received at least the Threshold Amount) shall
be required to pay to LSC its Pro Rata Percentage of the Prosecution Fees
accruing after October 5, 2005, which amount shall be shared by LSC among LSC,
LSO and the Additional Licensees on the basis of the reduced amount of
Prosecution Fees for which they should have been responsible as a result of such
Additional Licensee. LSC shall invoice LSO on a monthly basis for its portion of
the Prosecution Fees each month and such invoice shall itemize the Prosecution
Fees by

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patent and patent application number. The Prosecution Fees shall be due and
payable within [ * ] days of the date of invoice. If such invoice is past due,
other than by reason of a bona fide dispute between LSO and LSC with respect to
the amount of invoices (a "Bona Fide Dispute"), for more than [ * ] days after
the date of the invoice or [ * ] days after LSC's notice to LSO of such past due
invoice, whichever is later, [ * ]. In addition, any amounts outstanding more
than [ * ] days after the date of the invoice will be subject to a late fee at
an annual rate equal to the "prime rate" as quoted by The Wall Street Journal
(Western Edition) (or if not published, another appropriate publication) for the
first business day of each month [ * ], whichever is less, from the date due
until the date paid, unless the Bona Fide Dispute shall be determined in favor
of LSO. In addition, in the event LSO is more than [ * ] months past due in any
amount (which is not subject to a Bona Fide Dispute) and LSO has been given at
least [ * ] days prior written notice by LSC, the patents or patent applications
to which the past due amount pertains shall be removed from the definition of
LSC Patents or LSC Patent Applications (and therefore not be included in the
License, notwithstanding any language in Section 2 to the contrary).

     5.3. Abandonment by LSC.

          (a) Notice. In the event LSC decides not to file or continue the
prosecution or maintenance of a particular patent or patent application included
in the definition of the LSC Patents and LSC Patent Applications in a particular
jurisdiction or every jurisdiction (an "Abandonment"), LSC shall promptly
provide notice (which notice shall include the basis for such action in
reasonable detail) to LSO (and to any Additional Licensees) at least [ * ] days
prior to the date which any filing or payment is required to be made in order to
preserve the rights to such patent or patent applications.

          (b) Election by LSO. LSO shall notify LSC and all Additional Licensees
within [ * ] days of receiving LSC's Abandonment notice pursuant to Section
5.3(a) whether LSO desires to pursue the filing, prosecution or maintenance of
the patents or patent applications subject to Abandonment. If LSO gives such
notice that it desires to pursue such filing, prosecution or maintenance, LSO
shall assume and be assigned and allowed to exercise all of LSC's rights and
obligations under Sections 5.1 and 5.2 in pursuing the patents or patent
applications subject to Abandonment, including filing, prosecution and
maintenance in the name of LSC with reimbursement of Prosecution Fees as set
forth in Section 5.2. In the event LSO does not give such notice or notifies LSC
and the Additional Licensees that it is not interested in pursuing such patents
or patent applications, any Additional Licensee who has given notice of its
desire to pursue such patents or patent applications within [ * ] days of LSC's
notice of Abandonment pursuant to Section 5.3(a) shall be entitled to assume and
be assigned and allowed to exercise all of LSC's rights and obligations under
Sections 5.1 and 5.2 with respect to such Abandonment; if more than one
Additional Licensee has given such notice, LSC shall promptly designate one of
the Additional Licensees to have such rights and obligations based on LSC's
judgment of the Additional Licensee to whom such patent or patent application
has the greatest value in its licensed field of use.

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          (c) Assignment to LSO or an Additional Licensee. If LSO has given
notice of its desire to pursue the patents or patent applications pursuant to
Section 5.3(b) and no Additional Licensees have given notice to LSO, LSC and the
other Additional Licensees within [ * ] days of receiving LSC's Abandonment
notice pursuant to Section 5.3(a) of its desire, to pursue the patents or patent
applications, LSO may elect to assume all future responsibility with respect to
the patents or patent applications subject to Abandonment (including
responsibility for all future accruing fees and expenses related thereto) and be
assigned such patents or patent applications, in which event such patents or
patent applications shall be removed from the definition of "LSC Patents" or
"LSC Patent Applications" (and not be royalty bearing) and LSC shall cause such
patents or patent applications to be removed from the licenses granted by LSC to
the Additional Licensees. If LSO has not given notice of its desire to pursue
the patents or patent applications and only one Additional Licensees has so
given notice of its desire to pursue the patents or patent applications, such
Additional Licensee may elect to assume all future responsibility with respect
to the patents or patent applications subject to Abandonment (including
responsibility for all future accruing fees and expenses related thereto) and be
assigned such patents or patent applications, in which event such patents or
patent applications shall be removed from the definition of "LSC Patents" or
"LSC Patent Applications" and LSC shall cause such patents or patent
applications to be removed from the licenses granted by LSC to all other
Additional Licensees.

          (d) Cooperation. In the event LSO undertakes responsibility with
respect to any filing, prosecution or maintenance of abandoned patents or patent
applications, LSC shall cooperate with and assist LSO with the filing,
prosecution or maintenance and provide LSO with all files, correspondence and
other records in its possession related to the filing, prosecution or
maintenance thereof; provided, however, that LSO shall reimburse LSC for all
reasonable expenses incurred by LSC in providing such cooperation and LSC shall
cause all other Additional Licensees to reimburse LSO for their Pro Rata
Percentage of such reimbursement.

          (e) Abandonment by LSO. In the event that LSO decides not to file or
continue the prosecution or maintenance of any such patent or patent application
after initially making such election, LSO shall promptly notify LSC (and any
Additional Licensee) at least [ * ] days prior to the date which any filing or
payment is required to be made in order to preserve the rights to such patent or
patent applications; provided, however, if LSO has received less than [ * ] days
prior notice, LSO shall provide notice to LSC as soon as practicable.

     5.4. Infringement of Patents by a Third Party.

          (a) Notice. In the event that any infringement of a LSC Patent by a
third party shall come to the attention of LSO or LSC, then such party shall
promptly notify the other party and each Additional Licensee of the nature and
evidence of such infringement and whether such infringement appears to have
occurred in any fields to which the LSC Patent has been licensed to LSO or any
Additional Licensee. LSC shall notify LSO and each Additional Licensee within [
* ] days of giving or receiving such infringement notice (including an
infringement notice

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from an Additional Licensee that has been given in accordance with this Section
5.4(a)) whether or not it intends to bring a patent infringement action against
the third party and the licensed field (i.e., LSO's and/or any Additional
Licensees') in which such infringement appears to have occurred (LSO and/or any
Additional Licensees in whose licensed field the infringement has occurred and
who are identified by LSC or who have given notice to the other Additional
Licensees, LSO and LSC of such infringement in their licensed fields not later
than [ * ] days after the date that LSC's notice is due is hereafter referred to
as the "Infringement Parties in Interest").

          (b) LSC Action. If LSC gives such notice of its intention to bring
such an infringement action, LSC shall bring such action within the next [ * ]
shall diligently pursue such action and shall be entitled to employ counsel and
control the course of litigation at its expense; provided, however, that LSO
shall be entitled to participate, at its expense, in the action. Any recovery by
LSC in such infringement action shall be used to [ * ] in connection with such
action (such reimbursement to be pro rata on the basis of such costs and fees).
Any remaining amount from the recovery shall be divided as follows: [ * ] as
reasonably determined and allocated by LSC.

          (c) Licensee Action. If LSC gives notice of its intention not to bring
such an infringement action or fails to give notice as required in Section
5.4(a), the Infringement Parties in Interest may elect to have all future
responsibility with respect to bringing such infringement action, (and be
responsible for all fees and expenses related thereto [ * ]; provided, however,
if LSO and at least one Additional Licensee are electing Infringement Parties in
Interest, LSO shall negotiate in good faith a joint agreement among the electing
Infringement Parties in Interest with respect to such infringement action and
the sharing of expenses and monetary awards relating thereto. Such joint
agreement shall be submitted to review by LSC, which shall have [ * ] from the
receipt thereof to accept or reject such agreement. If LSC rejects such
agreement, LSC shall proceed with such infringement action as provided in
Section 5.4(b). Failure of LSC to reject such agreement within the [ * ] period
shall be deemed an acceptance thereof by LSC.

          (d) Dispute Regarding Action. If the electing Infringement Parties in
Interest are not able to mutually agree on bringing the infringement action
[ * ] (or by such later time that they mutually agree upon), then they shall not
be entitled to bring such infringement action; provided, however, if any
Infringement Party in Interest requests, the decision of which one (and it shall
only be one) of such parties should be entitled to bring and control the
infringement action and the allocation of costs and any recoveries shall be
submitted expeditiously to an arbitrator selected unanimously by such parties
(or failing unanimity, an arbitrator with life sciences patent experience
selected by the Regional Vice President of the American Arbitration Associate in
Seattle (or his or her designee)). The decision of such arbitrator shall be
binding on the parties and such arbitration shall be conducted in Seattle,
Washington. The parties shall abide by and perform in accordance with any
decision made by

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the arbitrator. Any judgment confirming such decision may be entered in any
court of competent jurisdiction. The expenses of any such arbitration shall be
shared equally by the Infringement Parties in Interest electing to participate
in the infringement action.

          (e) Cooperation of LSC. In the event LSO undertakes sole or joint
responsibility with respect to such patent infringement action, LSC shall
cooperate with and assist LSO (and any Additional Licensees, as applicable) and
execute all necessary and proper documents and take such actions as shall be
appropriate in connection with such infringement action, including joining such
action as a party (or allowing the action to be instituted in its name). In the
event that LSO decides not to continue such infringement action after initially
making such election, LSO shall promptly notify LSC and the other Infringement
Parties in Interest who had elected to jointly participate.

          (f) Cooperation of LSO. LSO shall cooperate with and assist LSC or
Infringement Parties in Interest with regard to any such infringement action and
execute all necessary and proper documents and take such actions as shall be
appropriate in connection with such infringement action.

          5.5. LSO Election. Notwithstanding the foregoing, LSO shall be
entitled to assume full responsibility for filing and all prosecution,
maintenance and enforcement (including bringing any infringement action and
retaining any recoveries therefrom) of any particular LSC Patent Application or
LSC Patent in the name of LSC and shall bear all costs related thereto, provided
that LSO (a) notifies LSC and obtain LSC's written consent to such assumption
and (b) notifies each Additional Licensee known to LSO in writing and no
Additional Licensee objects to such assumption within [ * ] days of receipt of
such notice. If any Additional Licensee objects to such assumption, LSO shall
discuss in good faith such objections in an attempt to reach a mutually
acceptable agreement with any objecting Additional Licensees.

          5.6. Misappropriation of Trade Secret; Infringement of Trademark. In
the event there has been a misappropriation of a trade secret or infringement of
a trademark included in the LSC Licensed Technology, an action for
misappropriation of the trade secret or infringement of the trademark shall be
handled in the same way as, and the parties shall proceed and have the same
rights as, set forth in Section 5.4 with respect to infringement of a LSC
Patent, and notices and other rights described in Section 5.4 shall be given to
those Additional Licensees who have exclusive license rights to the trade secret
or trademark and rights with respect to enforcement that are similar to LSO's
rights.

          5.7 LSO Election in the Event of LSC Change of Control. In the event
of a LSC Change of Control with any person or entity other than an Industry
Operating Company occurring prior to an initial public offering of LSC
securities to the general public, LSO shall be entitled upon written notice
given to LSC and the Additional Licensees within [ * ] days after the closing of
such LSC Change of Control (the "Exercise Notice") to assume and exercise

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any or all of LSC's rights and responsibilities under this Agreement with
respect to the filing, prosecution, maintenance or enforcement of any of the LSC
Licensed Technology under this Section 5 (unless the exercise of the right to
give the Exercise Notice is waived in writing by holders of a majority of the
Series A Preferred Stock of LSO). The assumption of rights under this Section
5.7 shall become effective immediately upon receipt of the Exercise Notice by
LSC, and LSC shall promptly cooperate with LSO in all respects necessary to give
effect to the Exercise Notice in accordance with this Agreement. After such a
LSC Change of Control and prior to the delivery of the Exercise Notice, if same
shall occur, LSC shall take all necessary action to maintain the status quo of
the LSC Licensed Technology and shall not, by action or inaction, permit any
patent rights in the LSC Licensed Technology to become abandoned or adversely
affected in any respect. However, any such election shall not modify the
financial arrangements or obligations of the parties under this Agreement or
under any Additional LSC Sub License Agreement (e.g., each party and each
Additional Licensee shall continue to be obligated financially to the same
extent as if LSO had not assumed LSC's rights and responsibilities pursuant to
this Section 5.7). If LSO does not elect to assume any such rights or
responsibilities within such [ * ]-day period, then the Additional Licensees
shall have the right to elect to assume and exercise such rights and
responsibilities of LSC in the order of preference agreed upon by LSC and the
Additional Licensees by giving written notice to LSC and LSO. If the Additional
Licensees elect to assume and exercise such rights and responsibilities, the
financial arrangements or obligations of the parties under this Agreement or any
Additional LSC Sublicense Agreement shall remain unchanged. The failure of LSO
to exercise its right to assume and exercise any or all of LSC's rights and
responsibilities for the filing, prosecution, maintenance or enforcement of any
LSC Licensed Technology under this Section 5.7 shall not affect the License or
any of LSO's other rights under this Agreement. LSO shall not be entitled to
give an Exercise Notice with respect to any LSC Change of Control occurring
after the first such LSC Change of Control following the date of this Agreement.
Capitalized terms used in this Section 5.7 and not defined in this Agreement
shall have the meaning set forth in the Right of First Refusal and Co-Sale
Agreement.

     5.8 Patent Term Extension. The parties shall cooperate in seeking any
available extensions of the terms of the patents included in the LSC Patents,
including (a) advising each other in a timely manner of any action by a
Governmental Authority that is pertinent to any extension, (b) reasonably
supplying each other with all information in its control pertaining to the
extension of the terms of such patents and (c) cooperating with each other to
execute all supporting affidavits or documents required in connection with the
extension of such patents. In connection with LSO receiving governmental
approvals to sell a Licensed Product and at the request of LSO, LSC shall seek,
in accordance with and to the extent permitted by applicable law, extensions of
the terms of such patents designated by LSO that are related to the Licensed
Product.

6.   Confidentiality.

     6.1. Confidential Information. Subject to Section 6.2, "Confidential
Information"

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shall mean (a) any proprietary or confidential information or material in
tangible form disclosed hereunder that is designated as "Confidential" at the
time it is delivered to the receiving party or (b) proprietary or confidential
information disclosed orally hereunder which is identified as confidential or
proprietary when disclosed and such disclosure of confidential information is
confirmed in writing within [ * ] days by the disclosing party. Any LSC Know-How
included in any assets or associated with any assets (including, without
limitation, contracts, INDs, drug master files and clinical and regulatory
records) assigned by LSC to LSO shall be deemed to be the Confidential
Information of LSO, except to the extent it becomes a matter of public knowledge
without fault on the part of LSC. Each party shall exercise due care (i.e., at
least as much care as it affords its own confidential information) to prevent
unauthorized disclosure or use of Confidential Information. The obligations of
confidentiality and nonuse shall exist for the Term and a period of [ * ] years
thereafter.

     6.2. Exclusions. Confidential Information shall not include information
that the receiving party can establish, through documentary evidence, to:

          (a) have been known by the receiving party prior to communication by
the disclosing party;

          (b) have been a matter of public knowledge at the time of such
disclosure by the disclosing party;

          (c) have become a matter of public knowledge, without fault on the
part of the receiving party, subsequent to disclosure by the disclosing party to
the receiving party; or

          (d) have been disclosed to the receiving party from a third party
lawfully having possession of such Confidential Information without an
obligation of confidentiality to the disclosing party.

     6.3. Permitted Uses/Disclosures. Notwithstanding the provisions of Section
6.1 above, the receiving party may use or disclose Confidential Information of
the disclosing party in connection with the exercise of its rights hereunder
(including commercialization and sublicensing) or the fulfillment of its
obligations and duties hereunder and in prosecuting or defending litigation,
complying with applicable U.S. and international governmental regulations
(including, without limitation, regulations of the Securities and Exchange
Commission and the U.S. Food and Drug Administration) and submitting information
to tax or other U.S. and international governmental authorities; provided,
however, if the receiving party is required by law to make any public
disclosures of Confidential Information of the disclosing party, to the extent
it may legally do so, it shall give reasonable advance notice to the disclosing
party of such disclosure to enable the disclosing party to interpose an
objection to such a requirement and shall use its reasonable efforts to secure
confidential treatment of the Confidential Information prior to its disclosure
(whether through protective orders or otherwise).

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     6.4. Confidentiality of this Agreement. The terms of this Agreement shall
be deemed to be Confidential Information of both parties and subject to the
provisions of this Section 6, except that either party may disclose the terms of
this Agreement to actual or prospective corporate partners and actual or
prospective investors and other professional advisors without the prior consent
of the other party under appropriate confidentiality provisions.

7.   Representations and Warranties, Disclaimer of Liability; Indemnification;
     Covenants.

     7.1. Representations and Warranties by LSC. LSC represents and warrants to
LSO that:

          (a) it is a corporation duly organized and validly existing under the
laws of the State of Washington and has the requisite power and authority to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby, including the right to grant the rights and licenses
granted herein;

          (b) no consent, approval or authorization of, or declaration or filing
with, any Governmental Authority or Person is required on the part of LSC in
connection with its execution, delivery and performance of this Agreement or the
consummation of the transactions contemplated hereby;

          (c) the execution and delivery of this Agreement and the performance
and consummation of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of LSC, and this Agreement has
been duly executed and delivered by LSC and, subject to the due authorization,
execution and delivery by LSO, constitutes a valid and binding obligation of
LSC, enforceable against LSC in accordance with its terms, except as may be
limited (i) by applicable bankruptcy, insolvency, reorganization or other laws
of general application relating to or affecting the enforcement of creditors'
rights generally; and (ii) by the effect of rules of law governing the
availability of equitable remedies;

          (d) the execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby will not (i) conflict with,
or result in any violation or breach of any provision of the Articles of
Incorporation, by-laws or organizational documents of LSC, (ii) conflict with or
violate any applicable Federal or state statutes, judgments, decrees, laws,
ordinances, rules, regulations, injunctions and orders applicable to LSC or any
of its assets or operations or (iii) result in any violation or breach of,
constitute a default under or conflict with the provisions of any agreement to
which LSC is a party or by which it or any of its properties or assets is
otherwise bound;

          (e) it has good title to all LSC Licensed Technology, free and clear
of all Liens and is not in default (or, with the giving of notice or lapse of
time or both, would be in default) under any contract or other agreement to use
any of the LSC Licensed Technology;

          (f) it has not previously granted and will not grant any rights or
licenses with respect to the LSC Licensed Technology in the Field of Use or in
conflict with the rights and licenses granted herein;

<PAGE>

          (g) to the knowledge of LSC, none of the LSC Licensed Technology
infringes or conflicts with, and LSC has not received any notice of infringement
of, or conflict with, any license, patent, copyright, trademark, service mark or
other intellectual property right of any other Person and, to the knowledge of
LSC, there is no infringement or unauthorized use by any Person of any of the
LSC Licensed Technology;

          (h) the validity or enforceability of any of the LSC Licensed
Technology or the title of LSC thereto has not been questioned in any
litigation, governmental inquiry or proceeding to which LSC is a party and, to
the knowledge of LSC, no such litigation, governmental inquiry or proceeding is
threatened;

          (i) as of the Effective Date, except for the LSC Patents, the LSC
Patent Applications and the LSC Excluded Technology, LSC does not control any
patent or patent application claiming or disclosing inventions relating to or
useful in the Field of Use;

          (j) as of the Effective Date, the patents and patent applications set
forth in Appendices A and B constitute all of the LSC Patents and LSC Patent
Applications, are owned by LSC and to LSC's knowledge, are not subject to an
ownership interest or a claim of an ownership interest therein by a third party;

          (k) to LSC's knowledge as of the Effective Date, the practice and use
of the LSC Licensed Technology within the Field of Use will not infringe any
intellectual property right of a third party;

          (l) LSC has taken all reasonable actions necessary or appropriate to
preserve the confidentiality of all trade secrets and proprietary or
confidential information or material related to the LSC Licensed Technology; and

          (m) as of the Effective Date, the Additional LSC Subs are [NONE] and
there are no other Additional Licensees.

     7.2. Indemnification of LSC. Other than as provided in Section 7.3, in no
event shall LSC be liable for any use by LSO of the LSC Licensed Technology or
any loss, claim, damage or liability of any kind or nature, which may arise from
or in connection with acts by LSO under this Agreement or the use of the LSC
Licensed Technology by LSO. LSO shall indemnify, defend and hold harmless LSC,
including its directors, officers, employees, and agents, against any and all
Damages resulting from or arising out of (a) the breach of any representation or
warranty made by LSO in this Agreement, (b) any breach or violation of, or
failure to properly perform, any covenant or agreement made by LSO in this
Agreement or (c) the possession, manufacture, use, sale or other disposition of
Licensed Products by LSO or its sublicensees, whether based on breach of
warranty, negligence, product liability or otherwise, except to the extent such
Damages result from a breach by LSC of any representation, warranty, covenant or
agreement of LSC or the gross negligence or willful misconduct of LSC.

     7.3. Indemnification of LSO. LSC agrees to indemnify, defend and hold LSO
and its respective directors, officers, employees and agents harmless from and
against any and all Damages resulting from or arising out of (a) the breach of
any representation or warranty made

<PAGE>

by LSC in this Agreement or (b) any breach or violation of, or failure to
properly perform, any covenant or agreement made by LSC in this Agreement,
except to the extent such Damages result from the gross negligence or willful
misconduct of LSO.

     7.4. DISCLAIMER OF LIABILITY. NOTWITHSTANDING ANYTHING ELSE IN THIS
AGREEMENT OR OTHERWISE, NEITHER LSC, THE ADDITIONAL LSC SUBS NOR LSO WILL BE
LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT,
NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOST PROFITS.

     7.5. DISCLAIMER OF WARRANTIES. EXCEPT AS SPECIFICALLY PROVIDED IN THIS
AGREEMENT, NEITHER LSO NOR LSC MAKES ANY WARRANTIES OF ANY KIND, WHETHER EXPRESS
OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

     7.6. ESSENTIAL TERMS. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PROVISIONS
UNDER THIS AGREEMENT THAT LIMIT LIABILITY, DISCLAIM WARRANTIES, OR EXCLUDE
CONSEQUENTIAL DAMAGES OR OTHER DAMAGES OR REMEDIES ARE ESSENTIAL TERMS OF THIS
AGREEMENT THAT ARE FUNDAMENTAL TO THE PARTIES' UNDERSTANDING REGARDING
ALLOCATION OF RISK. ACCORDINGLY, SUCH PROVISIONS SHALL BE SEVERABLE AND
INDEPENDENT OF ANY OTHER PROVISIONS AND SHALL BE ENFORCED AS SUCH, REGARDLESS OF
ANY BREACH OR OTHER OCCURRENCE HEREUNDER. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, ALL LIMITATIONS OF LIABILITY, DISCLAIMERS OF WARRANTIES, AND
EXCLUSIONS OF CONSEQUENTIAL DAMAGES OR OTHER DAMAGES OR REMEDIES SHALL REMAIN
FULLY VALID, EFFECTIVE AND ENFORCEABLE IN ACCORDANCE WITH THEIR RESPECTIVE
TERMS, EVEN UNDER CIRCUMSTANCES THAT CAUSE ANY EXCLUSIVE REMEDY UNDER THIS
AGREEMENT TO FAIL OF ITS ESSENTIAL PURPOSE.

     7.7. Licenses With Additional LSC Subs. LSC represents and warrants that
(a) the license agreement entered into, and to be entered into, by LSC and each
Additional LSC Sub (the "Additional LSC Sub License Agreements") is and shall be
in a form substantially identical to this Agreement (other than changes to the
name of each Additional LSC Sub and the applicable field of use) and (b) no
Additional Licensee (including all Additional LSC Subs) has been granted or
shall be granted any rights with respect to LSC Licensed Technology that are
more beneficial, taken as a whole (without regard to field of use), to such
licensee in comparison to the rights of LSO hereunder, unless LSO is granted, in
writing, identical beneficial rights (and related obligations) at the same time
of such other grant, which it may accept or reject with respect to its Field of
Use or, in the case of a nonexclusive grant, with respect to the field of use of
the grant and/or its Field of Use; provided, however, that (i) if a subsequent
Additional Licensee has not received (and is not expected to receive shortly
thereafter) at least the Threshold Amount at the time it enters into its license
agreement for the LSC Licensed Technology, then the language of Section 1.29
hereof shall be amended to provide that the

<PAGE>

Additional Licensee counts as [ * ] in the numerator and denominator until it
has received at least the Threshold Amount, at which time there will be a
recalculation of the Pro Rata Percentage and a retroactive adjustment; (ii)
Section 5.3(b) and Section 5.3(c) of any license agreement for the LSC Licensed
Technology between LSC and a subsequent Additional Licensee shall be adjusted to
reflect that Light Sciences Oncology, Inc. has the first right to assume LSC's
rights and obligations, or take an assignment, with respect to an Abandonment
and that the rights of any subsequent Additional Licensee will be subordinate
thereto; and (iii) Section 5.7 of any license agreement for the LSC Licensed
Technology between LSC and a subsequent Additional Licensee shall be adjusted to
reflect that LSO has the first right, but not the obligation, to assume all of
LSC's rights and responsibilities with respect to the filing, prosecution,
maintenance and enforcement of the LSC Licensed Technology under Section 5 of
this Agreement in the event of a change of control of LSC as described in
Section 5.7 of this Agreement.

     7.8. Identification of Additional Licensees. LSC shall promptly notify LSO
of the name and address of each Additional Licensee (including each Additional
LSC Sub) and its field of use and the scope of its rights and obligations in
comparison to this Agreement.

8.   Term and Termination of Agreement; Dissolution of LSO; Event of Default.

     8.1. Term. This Agreement will commence on the Effective Date and, unless
earlier terminated in accordance with this Section 8, will remain in full force
and effect until the last to expire of any Royalty Periods, i.e., when LSO no
longer has an obligation to pay royalties under this Agreement (the "Term").
Notwithstanding the expiration of the Term, the License shall survive, subject
to Section 8.2, as a fully paid-up, royalty-free license.

     8.2. Insolvency. In the event of (a) the voluntary or involuntary
proceedings by or against LSO are instituted in bankruptcy under any insolvency
law, or a receiver or custodian is appointed for LSO, or proceedings are
instituted by or against LSO for corporate reorganization or the dissolution or
liquidation of LSO under Title 11 of the United States Code (the "Bankruptcy
Code"), which proceedings, if involuntary, shall not have been dismissed within
ninety (90) days after the date of filing, or if LSO makes an assignment for the
benefit of creditors, or substantially all of the assets of LSO are seized or
attached and not released within ninety (90) days thereafter, or LSO has
rejected this Agreement (or any license grant contained herein) under Section
365(n) of the Bankruptcy Code, or (b) the voluntary liquidation, dissolution,
winding up or cessation of business by LSO, then in such case and at such time
this Agreement shall terminate and, notwithstanding the language in Section 2
regarding the perpetual nature of the License, the License shall terminate.

     8.3. LSC Default.

          (a) Event of Default. The following events shall be defined as an "LSC
Event of Default": (i) breach of this Agreement by LSC which remains uncured (if
curable) for thirty

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(30) days following notice of such breach by LSO, (ii) voluntary or involuntary
proceedings by or against LSC are instituted in bankruptcy under any insolvency
law, or a receiver or custodian is appointed for LSC, or proceedings are
instituted by or against LSC for corporate reorganization or the dissolution or
liquidation of LSC under the Bankruptcy Code, which proceedings, if involuntary,
shall not have been dismissed within ninety (90) days after the date of filing,
or if LSC makes an assignment for the benefit of creditors, or substantially all
of the assets of LSC are seized or attached and not released within ninety (90)
days thereafter, or LSC has rejected this Agreement (or any license grant
contained herein) under Section 365(n) of the Bankruptcy Code, (iii) the
voluntary liquidation, dissolution, winding up or cessation of business by LSC
or (iv) the occurrence of an event of default under the terms of any Additional
LSC Sub License Agreement or any other license agreement between LSC and any
Additional Licensee giving rise to rights upon such event of default
substantially similar to the rights of LSO under Section 8.3(b) hereof.

          (b) Patent Prosecution and Maintenance. In the event of an LSC Event
of Default and notwithstanding Section 5 hereof (i) LSC shall immediately notify
LSO and each Additional Licensee and (ii) LSO and any Additional Licensees shall
have the right to jointly agree with respect to all future prosecution and
maintenance of the LSC Patents and LSC Patent Applications. In the event LSO and
any Additional Licensees do not jointly agree with respect to all future
prosecution and maintenance of particular LSC Patents and LSC Patent
Applications, any prosecution or enforcement thereof shall be in accordance with
Section 5.

          (c) Assignment of Patent and Patent Applications. In addition, in the
event of an LSC Event of Default, LSO and any Additional Licensees shall have
the right to jointly designate a party to whom LSC shall be obligated to assign
all of its right, title and interest in each LSC Patent and LSC Patent
Application (and all files, correspondence and other records related thereto)
and such party shall take such LSC Patent or LSC Patent Application and related
material subject to whatever agreement LSO and the Additional Licensees thereof
shall agree upon.

          (d) Irrevocable License. In addition, in the event of an LSC Event of
Default, the License granted in Section 2 shall become irrevocable, fully
paid-up and non-royalty bearing.

          (e) 365(n). All rights and licenses granted under or pursuant to this
Agreement by LSC to LSO are, and shall otherwise be deemed to be, for purposes
of Section 365(n) of the Bankruptcy Code, licenses of rights to "intellectual
property" as defined under Section 101(35A) of the Bankruptcy Code. LSO, as a
licensee of such rights under this Agreement, shall retain and may fully
exercise all of its rights and elections under the Bankruptcy Code. In the event
of the commencement of a bankruptcy proceeding by or against LSC under the
Bankruptcy Code that is not dismissed within ninety (90) days after it is filed,
LSO shall be entitled to a complete duplicate of (or complete access to, as
appropriate) any such intellectual property and all embodiments of such
intellectual property, and the same, if not already in its possession, shall be
promptly delivered to LSO (i) upon any such commencement of a bankruptcy
proceeding upon written request therefor by LSO, unless LSC elects to continue
to perform all of its obligations under this Agreement or (ii) if not delivered
under (i) above, upon the rejection of this Agreement by or on behalf of LSC,
upon written request therefor by LSO.
<PAGE>

     8.4. Voluntary Termination and Revocation. LSO shall have the right to
terminate this Agreement (including the License) or any portion of the License,
notwithstanding any language in Section 2 to the contrary, upon sixty (60) days
prior written notice to LSC. This Agreement shall terminate if LSC revokes the
License pursuant to Section 9.2(ii).

     8.5. Effect of Termination.

          (a) Accrued Rights and Obligations. Termination of this Agreement for
any reason shall not release either party hereto from any liability which, at
the time of such termination, has already accrued to the other party or which is
attributable to a period prior to such termination, nor preclude either party
from pursuing any rights and remedies it may have hereunder or at law or in
equity with respect to any breach of this Agreement. It is understood and agreed
that monetary damages may not be a sufficient remedy for any breach of this
Agreement and that the non-breaching party may be entitled to injunctive relief
as a remedy for any breach. Such remedy shall not be deemed to be the exclusive
remedy for breach of this Agreement, but shall be in addition to all other
remedies available at law or in equity.

          (b) Return of Confidential Information. Upon termination of this
Agreement pursuant to Section 8.2 or 8.4, each party shall promptly return to
the other party all Confidential Information of the other party.

          (c) Sublicenses. In the event this Agreement is terminated pursuant to
Section 8.2, any sublicensee of LSO who is not then in material breach shall
have its sublicense converted to a direct license from LSC under the terms and
conditions of this Agreement, as further limited and restricted by the terms of
the original sublicense as then in effect.

     8.6. Survival. Subject to the provisions of this Section 8, Sections 1, 2,
4, 6, 7 (other than 7.1), 8 and 11 shall survive the expiration or termination
of this Agreement for any reason.

9.   Diligence.

     9.1. Efforts. LSO agrees to use reasonable commercial efforts to develop
and commercialize Licensed Products, to develop relationships with commercial
partners with respect to the Licensed Products, and to obtain such approvals as
may be necessary to make, have made, use, sell, offer to sell or otherwise
distribute the Licensed Products in the Field of Use.

     9.2. Activities. If LSO has not, within five (5) years of the Effective
Date of this Agreement (a) initiated commercialization of a Licensed Product,
(b) entered into a relationship with a commercial partner regarding a Licensed
Product or (c) demonstrated the commercial potential of a Licensed Product
(e.g., through diligent performance of a clinical trial), then at LSC's sole
discretion, LSC may (i) convert the License granted pursuant of Section 2 of
this Agreement upon written notice to LSO to a non-exclusive license in the
Field of Use or (ii) revoke the License provided in such case LSC reimburses LSO
for all amounts paid to LSC for filing, prosecution and maintenance expenses
pursuant to Section 5 prior to the date of such revocation.

<PAGE>

10.  Disclosures by LSC.

     During the Term, LSC shall promptly disclose to LSO all documented new
inventions, discoveries and know-how owned or controlled by LSC that (i) are
related to the LSC Licensed Technology or (ii) are necessary, useful or
requested by LSO for the research, development, manufacture or commercialization
of any Licensed Product, in each case irrespective of any Field of Use
restrictions. Such disclosure to LSO shall be in writing and shall describe such
inventions, discoveries and know-how and any application to the Field of Use
known to LSC.

11.  General Provisions.

     11.1. Assignment. This Agreement shall be assignable by either party hereto
so long as such assignee agrees in writing to be bound by the terms and
conditions of this Agreement; provided that an assignment by LSC shall be
conditioned upon receipt by LSO of satisfactory evidence of the sale, assignment
or transfer to the same assignee of the LSC Licensed Technology.

     11.2. Government Approvals. LSO shall be responsible for obtaining all
necessary governmental approvals for the development, testing, production,
distribution, sale and use of Licensed Products, as applicable, in any country
where Licensed Products shall be manufactured, used, sold, or otherwise
distributed by LSO. LSC agrees to provide LSO, at LSO's expense, with any
assistance reasonably requested by LSO in obtaining such governmental approvals.

     11.3. Governing Law; Arbitration. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Washington,
without reference to conflicts of laws principles. Except as specifically set
forth in Section 5.4(d), prior to engaging in any formal dispute resolution with
respect to any dispute, controversy or claim arising out of or in relation to
this Agreement or the breach, termination or invalidity thereof (each, a
"Dispute"), the respective appropriate officers of the parties shall attempt for
a period not less than [ * ] days to resolve such Dispute. Any Dispute that
cannot be settled amicably by agreement of the parties pursuant to the preceding
sentence shall be finally settled by arbitration in Seattle, Washington in
accordance with the arbitration rules of the American Arbitration Association
then in force by one or more arbitrators appointed in accordance with said
rules, provided that the appointed arbitrator(s) shall have appropriate
experience in the biotechnology industry; provided, however, that arbitration
proceeding may not be instituted until the party alleging breach of this
Agreement by the other party has given the other party not less than [ * ] days
notice to remedy any alleged breach and the other party has failed to do so. The
award rendered shall be final and binding upon both parties. The judgment
rendered by the arbitrator(s) shall include costs of arbitration, reasonable
attorneys' fees and reasonable costs for any expert and other witnesses. Nothing
in this Agreement shall be deemed as preventing either party from seeking
injunctive relief (or any other provisional remedy) from any court having
jurisdiction over the parties and the subject matter of the Dispute as necessary
to protect either party's name, proprietary information, trade secrets, know-how
or any other proprietary rights.

----------
[ * ]  Confidential Treatment Requested

<PAGE>

Judgment upon the award may be entered in any court having jurisdiction or
application may be made to such court for judicial acceptance of the award and
an order of enforcement as the case may be.

     11.4. Severability. This Agreement is intended to be severable. Should any
part or provision of this Agreement be found to be unenforceable or invalid for
any reason, the remaining parts and provisions will remain in effect; provided,
however, that in the event of an LSC bankruptcy proceeding, this Agreement must
either be assumed or rejected in its entirety in accordance with Section 365 of
the Bankruptcy Code.

     11.5. Entire Agreement. This Agreement constitutes the entire understanding
of LSC and LSO with respect to the subject matter hereof and supersedes all
prior agreements and understandings. This Agreement may be modified only with
the written agreement of both parties.

     11.6. Force Majeure. If the performance of any part of this Agreement by
either party, or of any obligation under this Agreement, is prevented,
restricted, interfered with or delayed by reason of any cause beyond the
reasonable control of the party liable to perform, unless conclusive evidence to
the contrary is provided, the party so affected shall, upon giving written
notice to the other party, be excused from such performance to the extent of
such prevention, restriction, interference or delay, provided that the affected
party shall use its reasonable best efforts to avoid or remove such causes of
nonperformance and shall continue performance with the utmost dispatch whenever
such causes are removed. When such circumstances arise, the parties shall
discuss what, if any, modification of the terms of this Agreement may be
required in order to arrive at an equitable solution.

     11.7. Waiver. No waiver of any rights shall be effective unless expressly
consented to in writing by the party to be charged and the waiver of any breach
of default shall not constitute a waiver of any other right hereunder or any
subsequent breach or default.

     11.8. Notices. All notices and other communications hereunder will be in
writing and will be deemed given if delivered personally, by fax (receipt
confirmed), or by registered or certified mail, return receipt requested and
postage prepaid or sent by express courier service (receipt verified), to the
parties at the following addresses (or at such other addresses for a party as
will be specified by the like notice; provided, that notices of a change of
address will be effective only upon receipt thereof):

          If to LSC, addressed to:

               Light Sciences Corporation
               34931 SE Douglas Street, Suite 200
               Snoqualmie, WA 98065
               Attn: President
               Telephone No.: (425) 369-2800
               Telecopy No.: (425) 369-2845

<PAGE>

               Copy to:
               __________________________________
               __________________________________
               __________________________________
               Attn:_____________________________

          If to LSO, addressed to:

               Light Sciences Oncology, Inc.
               34931 SE Douglas Street, Suite 200
               Snoqualmie, WA 98065
               Attn: President
               Telephone No.: (425) 369-2800
               Telecopy No.: (425) 369-2845

               Copy to:
               __________________________________
               __________________________________
               __________________________________
               Attn:_____________________________

All such notices and communications shall be deemed effective when received.

     11.9. Counterparts. This Agreement may be signed in counterparts, each of
which shall be deemed an original and all of which shall constitute one
instrument.

                            [Signature Pages Follow]

<PAGE>

THIS AGREEMENT IS ACCEPTED AND AGREED TO IN ITS ENTIRETY BY AUTHORIZED
REPRESENTATIVES OF:

"LSC"                                   "LSO"

LIGHT SCIENCES CORPORATION              LIGHT SCIENCES ONCOLOGY, INC.

/s/ Albert A. Luderer                   /s/ M.J. Winship
-------------------------------------   ----------------------------------------
Signature                               Signature

Albert A. Luderer                       M.J. Winship
Name                                    Name

CEO                                     COO
Title                                   Title

-------------------------------------   ----------------------------------------
Date                                    Date

<PAGE>

                                   APPENDIX A
                                   LSC PATENTS

<TABLE>
<CAPTION>
                                            PATENT      FILING       ISSUE
 STATUS    LSC DOCKET NO.     APPL. NO.       NO.        DATE         DATE                TITLE
 ------   ----------------   ----------   ---------   ----------   ----------   ------------------------
<S>       <C>                <C>          <C>         <C>          <C>          <C>
Granted      01-1993-US      08/107,276   5,445,608    8/16/1993    8/29/1995   Method and Apparatus
                                                                                for Providing
                                                                                Light-Activated Therapy
Granted      03-1996-US      08/613,390   5,800,478    3/7/1996     9/1/1998    Flexible Microcircuits
                                                                                for Internal Light
                                                                                Therapy
Granted     03-1996-CIP      08/633,171   5,766,234    4/16/1996    6/16/1998   Implanting and Fixing a
                                                                                Flexible Probe for
                                                                                Administering a Medical
                                                                                Therapy at a Treatment
                                                                                Site within a Patient's
                                                                                Body
Granted      11-1997-US      08/788,451   5,997,569    1/29/1997    12/7/1999   Flexible and Adjustable
                                                                                Grid for Medical Therapy
Granted      04-1996-US      08/688,058   5,814,008    7/29/1996    9/29/1998   Method and Device for
                                                                                Applying Hyperthermia
                                                                                to Enhance Drug
                                                                                Perfusion and Efficacy
                                                                                of Subsequent Light
                                                                                Therapy
Granted      06-1996-US       08/705334   5,715,837    8/29/1996    2/10/1998   Transcutaneous
                                                                                Electromagnetic Energy
                                                                                Transfer
Granted      13-1997-US       08/827832   5,827,186    4/11/1997   10/27/1998   Method and PDT Probe
                                                                                for Minimizing CT and
                                                                                MRI Image Artifacts
Granted      07-1996-US       08/725578   5,702,432    10/3/1996   12/30/1997   Intracorporeal Light
                                                                                Treatment of Blood
Granted      09-1996-US       08/760057   6,080,160    12/4/1996    6/27/2000   Use of Shape Memory
                                                                                Alloy for Internally
                                                                                Fixing Light Emitting
                                                                                Device at Treatment Site
Granted      10-1997-US       08/788448   5,782,896    1/29/1997    7/21/1998   Use of a Shape Memory
                                                                                Alloy for Modifying the
                                                                                Disposition of a Device
                                                                                Within an Implantable
                                                                                Medical Probe
Granted      08-1996-US       08/756945   5,741,316    2/2/1996     4/21/1998   Electromagnetic Coil
                                                                                Configurations for
                                                                                Power Transmission
                                                                                through Tissue
</TABLE>

APPENDIX A TO EXCLUSIVE LICENSE AGREEMENT
<PAGE>

<TABLE>
<CAPTION>
                                            PATENT      FILING       ISSUE
 STATUS    LSC DOCKET NO.     APPL. NO.      NO.         DATE         DATE                TITLE
 ------   ----------------   ----------   ---------   ----------   ----------   ------------------------
<S>       <C>                <C>          <C>         <C>          <C>          <C>
Granted      12-1997-US      08/787,775   5,876,427    1/29/1997    3/2/1999    Compact Flexible
                                                                                Circuit Configuration
Granted      14-1997-US       08/850909   5,957,960    5/5/1997     9/28/1999   Internal Two Photon
                                                                                Excitation Device for
                                                                                Delivery of PDT to
                                                                                Diffuse Abnormal Cells
Granted      17-1997-US       08/955939   5,865,840   10/22/1997    2/2/1999    Enhancement of Light
                                                                                Activation Effect by
                                                                                Immune Augmentation
Granted      18-1998-US       09/021693   5,945,762    2/10/1998    8/31/1999   Movable Magnet
                                                                                Transmitter for
                                                                                Inducing Electrical
                                                                                Current in an Implanted
                                                                                Coil
Granted   18-1998-CIP(DIV)   09/547,700   6,331,744    4/11/2000   12/18/2004   Contactless Energy
                                                                                Transfer Apparatus
Granted   18-2001-DIV(CIP)   09/910,364   6,657,351    7/20/2001    12/2/2003   Contactless Energy
                                                                                Transfer Apparatus
Granted      29-1999-US       09/260923   6,273,904    3/2/1999     8/14/2001   Polymer Battery for
                                                                                Internal Light Device
Granted      21-1998-US      09/103,761   6,416,531    6/24/1998    7/9/2002    Application of Light at
                                                                                Plural Treatment Sites
                                                                                within a Tumor to
                                                                                Increase the Efficacy
                                                                                of Light Therapy
Granted      22-1998-US       09/151844   6,096,066    9/11/1998    8/1/2000    Conformal Patch for
                                                                                Administering Light
                                                                                Therapy to Subcutaneous
                                                                                Tumors
Granted      24-1998-US      09/218,336   6,344,050   12/21/1998    2/5/2002    Use of Pegylated
                                                                                Photosenstizer
                                                                                Conjugated with an
                                                                                Antibody for Treating
                                                                                Abnormal Tissue
Granted      24-2001-DIV     09/909,515   6,554,853    7/20/2001    4/29/2003   Use of Pegylated
                                                                                Photosensitizer
                                                                                Conjugated with an
                                                                                Antibody for Treating
                                                                                Abnormal Tissue
Granted      30-1999-US      09/350,258   6,210,425    7/8/1999     4/3/2001    Combined Imaging and
                                                                                PDT Delivery System
Granted      31-1999-US      09/356,938   6,238,426    7/19/1999    5/29/2001   Real-Time Monitoring of
                                                                                Photodynamic Therapy
                                                                                Over an Extended Time
Granted      33-1999-US      09/465,545   6,319,273   12/16/1999   11/20/2001   Illuminating Device for
                                                                                Treating Eye Disease
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                            PATENT      FILING       ISSUE
 STATUS    LSC DOCKET NO.     APPL. NO.      NO.         DATE         DATE                TITLE
 ------   ----------------   ----------   ---------   ----------   ----------   ------------------------
<S>       <C>                <C>          <C>         <C>          <C>          <C>
Granted      25-1999-US      09/232,129   6,454,789    1/15/1999    9/24/2002   Patient Portable Device
                                                                                for Photodynamic Therapy
Granted      27-1999-US      09/271,575   6,602,274    3/18/1999    8/5/2003    Targeted Transcutaneous
                                                                                Cancer Therapy
Granted      27-2001-CIP     09/905,501   6,899,723    7/13/2001    5/31/2005   Transcutaneous
                                                                                Photodynamic Treatment
                                                                                of Targeted Cells
Granted      01-1994-CA        2147142     2147142     6/29/1994   11/28/2000   Method and Apparatus
                                                                                for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-DE      94922480.2    0680363     6/29/1994   10/29/2003   Apparatus for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-EPO     94922480.2    0680363     6/29/1994   10/29/2003   Apparatus for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-ES      94922480.2    0680363     6/29/1994   10/29/2003   Apparatus for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-FR      94922480.2    0680363     6/29/1994   10/29/2003   Apparatus for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-GB      94922480.2    0680363     6/29/1994   10/29/2003   Apparatus for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-IT      94922480.2    0680363     6/29/1994   10/29/2003   Apparatus for Providing
                                                                                Light-Activated Therapy
Granted      01-1994-JP       506942/95    3539962     6/29/1994    4/2/2004    Method and Apparatus
                                                                                for Providing
                                                                                Light-Activated Therapy
Granted      12-1997-CA       2,276,023   2,276,023    12/1/1997    4/16/2002   Compact Flexible
                                                                                Circuit Configuration
Granted      12-1997-JP       531961/98    3338066     12/1/1997    8/9/2002    Compact Flexible
                                                                                Circuit Configuration
Granted      31-2000-AU       52956/00     757479      5/26/2000    6/5/2003    Real-Time Monitoring of
                                                                                Photodynamic Therapy
                                                                                over an Extended Time
</TABLE>
<PAGE>

                                   APPENDIX B
                             LSC PATENT APPLICATIONS

<TABLE>
<CAPTION>
               LSC DOCKET                                          FILING        ISSUE
STATUS             NO.            APPL. NO.       PATENT NO.        DATE          DATE                    TITLE
-------       ------------    ---------------     ----------     ----------      ------   -----------------------------------------
<S>           <C>             <C>                 <C>            <C>             <C>      <C>
Pending        45-2004-US        10/799,357                      3/12/2004                Light Generating Device To Intravascular
                                                                                          Use

Pending        47-2004-US        10/888,567                       7/8/2004                Light Generating Device That Self
                                                                                          Centers Within A Lumen To Render
                                                                                          Photodynamic Therapy

Pending        48-2004-US        10/888,572                       7/9/2004                Device for Distal Protection And
                                                                                          Treatment of Blood Vessels

Pending        38-2003-US        10/351,730                      1/23/2003                Systems And Methods For Photodynamic
                                                                                          Therapy

Allowed        25-2002-DIV       10/211,784                       8/1/2002                Patient Portable Device for Photodynamic
                                                                                          Therapy

Pending        27-2002-DIV       10/317,269                      12/10/2002               Energy-Activated Targeted Cancer Therapy

Pending        27-2003-DIV       10/410,700                       4/8/2003                Energy-Activated Targeted Cancer Therapy

Pending        27-2004-CON       10/802,284                      3/16/2004                Photodynamic Treatment of Targeted Cells

Pending        27-2004-DIV       11/115,740                      4/26/2005                Energy-Activated Targeted Cancer Therapy

Pending        28-2001-US        09/905,777                      7/13/2001                Noninvasive Vascular Therapy

Pending        28-2001-DIV       10/899,834                      7/26/2004                Noninvasive Vascular Therapy

Pending        32-1999-US        09/386,692                      8/31/1999                Extended Duration Light Activated Cancer
                                                                                          Therapy

Pending        34-2001-US        09/760,362                      1/12/2001                Novel Treatment for Eye Disease

Pending        49-2004-US        10/951,037                      9/23/2004                Singlet Oxygen Photosensitizers
                                                                                          Activated By Target Binding Enhancing The
                                                                                          Selectivity Of Targeted PDT Agents
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
               LSC DOCKET                                          FILING       ISSUE
STATUS             NO.            APPL. NO.       PATENT NO.        DATE         DATE                    TITLE
-------       ------------    ---------------     ----------     ----------     ------   -----------------------------------------
<S>           <C>             <C>                 <C>            <C>            <C>      <C>
Pending        42-2003-US        10/677,645                      10/2/2003               System And Method For Excitation Of
                                                                                         Photoreactive Compounds In Eye Tissue

Pending        39-2003-US        10/687579                       10/16/2003              Photodynamic Therapy For Local Adipocyte
                                                                                         Reduction

Pending        51-2005-US         Not yet                        3/28/2005               Fractionated Light PDT Therapy For
                                 assigned                                                Posterior Eye Disease

Pending       53-2004-PROV       60/614,095                      9/29/2004               Separation And Purification Of Chlorin e(6)

Pending       54-2004-PROV       60/610397                       9/15/2004               Surgical Introducing Sheath With
                                                                                         Instrument Fixation Structures

Pending       55-2004-PROV       60/612929                       9/24/2004               Ablation of Tumors with Light Activated
                                                                                         Drugs

Pending       56-2004-PROV       60/616,239                      10/5/2004               Low Energy of Excitation PDT Compounds
                                                                                         for Treatment of Ocular Disease

Pending       57-2004-PROV       60/623,317                      10/29/2004              Active Contact Lens For Ocular
                                                                                         Photodynamic Therapy

Pending       58-2004-PROV       60/636,852                      12/14/2004              Enhanced Effect Photodynamic Therapy

Pending       60-2004-PROV       60/637,365                      12/17/2004              Addressable Arrays of Light Emitters

Pending       59-2004-PROV       60/640,382                      12/30/2004              Flexible LED Arrays for Phototherapeutic
                                                                                         Procedures

Pending       63-2005-PROV       60/654,576                      2/17/2005               Photoreactive System And Methods For
                                                                                         Prophylactic Treatment Of Atherosclerosis

Pending           [ * ]            [ * ]                           [ * ]                 Method and Apparatus to Diagnose, Detect
                                                                                         and Predict Discontinuities in the Skin

Pending           [ * ]            [ * ]                           [ * ]                 System for Thermoelectric Recovery of
                                                                                         Engine Waste Heat
</TABLE>

-------------
[*] Confidential Treatment Requested

                                      -2-
<PAGE>

<TABLE>
<CAPTION>
               LSC DOCKET                                          FILING        ISSUE
STATUS             NO.            APPL. NO.       PATENT NO.        DATE          DATE                    TITLE
-------       ------------    ---------------     ----------     ----------      ------   -----------------------------------------
<S>           <C>             <C>                 <C>            <C>             <C>      <C>
Pending           [ * ]            [ * ]                           [ * ]                  Method and Apparatus for Magnetic
                                                                                          Braking and Recovery of Vehicle Waste
                                                                                          Energy

Pending        01-2003-EPO       03010382.4                      5/10/2003                Method and Apparatus for Providing
                 (DIV)                                                                    Light-Activated Therapy

Pending        11-1997-JP        531960/98                       12/1/1997                Flexible and Adjustable Grid for Medical
                                                                                          Therapy

Pending        12-1997-EPO       97950720.9                      12/1/1997                Compact Flexible Circuit Configuration

Pending        12-2000-HK        00108414.1                      12/27/2000               Compact Flexible Circuit Configuration

Pending        18-2001-JP       2001-574963                      4/10/2001                Contactless Energy Transfer Apparatus

Pending        21-1999-CA        2,335,575                       4/30/1999                Application of Light at Plural Treatment
                                                                                          Sites Within a Tumor to Increase Efficacy
                                                                                          of Photodynamic Therapy

Pending        21-1999-EPO       99921597.3                      4/30/1999                Application of Light at Plural Treatment
                                                                                          Sites Within a Tumor to Increase Efficacy
                                                                                          of Photodynamic Therapy

Pending        21-1999-JP       2000-555671                      4/30/1999                Application of Light at Plural Treatment
                                                                                          Sites Within a Tumor to Increase Efficacy
                                                                                          of Photodynamic Therapy

Pending        21-1999-HK        99921597.3                      4/30/1999                Application of Light at Plural Treatment
                                                                                          Sites Within a Tumor to Increase Efficacy
                                                                                          of Photodynamic

Pending        22-1999-CA        2,341,235                       8/20/1999                Patch Therapy for Administering Light
                                                                                          Therapy to Subcutaneous Tumors

Pending        22-1999-EPO       99942359.3                      8/20/1999                Patch Therapy for Administering Light
                                                                                          Therapy to Subcutaneous Tumors

Pending        22-1999-JP       2000-569880                      8/20/1999                Patch Therapy for Administering Light
                                                                                          Therapy to Subcutaneous Tumors
</TABLE>

-------------
[*] Confidential Treatment Requested

                                      -3-
<PAGE>

<TABLE>
<CAPTION>
               LSC DOCKET                                          FILING        ISSUE
STATUS             NO.            APPL. NO.       PATENT NO.        DATE          DATE                    TITLE
-------       ------------    ---------------     ----------     ----------      ------   -----------------------------------------
<S>           <C>             <C>                 <C>            <C>             <C>      <C>
Pending        22-1999-HK        01108910.9                      12/19/2001               Patch Therapy for Administering Light
                                                                                          Therapy to Subcutaneous Tumors

Pending        31-2000-CA        2,377,293                       5/26/2000                Real-Time Monitoring of Photodynamic
                                                                                          Therapy over an Extended Time

Pending        31-2000-EP        00937833.2                      5/26/2000                Real-Time Monitoring of Photodynamic
                                                                                          Therapy over an Extended Time

Pending        31-2000-JP       2001-510378                      5/26/2000                Real-Time Monitoring of Photodynamic
                                                                                          Therapy over an Extended Time

Pending        33-2000-CA        2,392,313                       12/5/2000                Illuminating Device For Treating Eye
                                                                                          Disease

Pending        33-2000-EPO       00982460.8                      12/5/2000                Illuminating Device For Treating Eye
                                                                                          Disease

Pending        33-2000-JP       2001-544954                      12/5/2000                Illuminating Device For Treating Eye
                                                                                          Disease

Pending        45-2004-PCT     PCT/US04/07563                    3/12/2004                Light Generating Device To Intravascular
                                                                                          Use

Pending        47-2004-PCT     PCT/US04/23451                    7/8/2004                 Light Generating Device That Self
                                                                                          Centers Within A Lumen To Render
                                                                                          Photodynamic Therapy

Pending        48-2004-US      PCT/US04/22130                     7/9/2004                Device for Distal Protection And
                                                                                          Treatment of Blood Vessels

Pending        38-2004-CA        2,473,924                       1/23/2003                Systems And Methods For Photodynamic
                                                                                          Therapy

Pending        38-2004-EP        03704019.3                      1/23/2003                Systems And Methods For Photodynamic
                                                                                          Therapy

Pending        38-2004-HK        03704019.3                      1/23/2003                Systems And Methods For Photodynamic
                                                                                          Therapy

Pending        38-2004-JP       2003-561639                      1/23/2003                Systems And Methods For Photodynamic
                                                                                          Therapy

Pending        25-2000-CA        2,356,478                       1/14/2000                Patient Portable Device for Photodynamic
                                                                                          Therapy
</TABLE>

                                      -4-
<PAGE>

<TABLE>
<CAPTION>
               LSC DOCKET                                          FILING        ISSUE
STATUS             NO.            APPL. NO.       PATENT NO.        DATE          DATE                    TITLE
-------       ------------    ---------------     ----------     ----------      ------   -----------------------------------------
<S>           <C>             <C>                 <C>            <C>             <C>      <C>
Allowed        25-2000-EPO       00905599.7                      1/14/2000                Patient Portable Device for Photodynamic
                                                                                          Therapy

Pending        25-2000-JP       2000-593376                      1/14/2000                Patient Portable Device for Photodynamic
                                                                                          Therapy

Pending        27-2000-CA        2,356,776                       1/14/2000                Transcutaneous Photodynamic Treatment of
                                                                                          Targeted Cells

Pending        27-2000-EPO       00902416.7                      1/14/2000                Transcutaneous Photodynamic Treatment of
                                                                                          Targeted Cells

Pending        27-2000-JP       2000-593337                      1/14/2000                Transcutaneous Photodynamic Treatment of
                                                                                          Targeted Cells

Pending        28-2000-CA        2,356,532                       1/14/2000                Noninvasive Vascular Therapy

Pending        28-2000-EPO       00902405.0                      1/14/2000                Noninvasive Vascular Therapy

Pending        28-2000-JP       2000-593336                      1/14/2000                Noninvasive Vascular Therapy

Pending        32-2000-CA        2,382,345                       8/31/2000                Extended Duration Light Activated Cancer
                                                                                          Therapy

Pending        32-2000-EP        00957944.2                      8/31/2000                Extended Duration Light Activated Cancer
                                                                                          Therapy

Pending        32-2000-JP       2001-519908                      8/31/2000                Extended Duration Light Activated Cancer
                                                                                          Therapy

Pending        34-2001-CA        2,395,567                       1/12/2001                Novel Treatment for Eye Disease

Pending        34-2001-EP        01901987.6                      1/12/2001                Novel Treatment for Eye Disease

Pending        34-2001-JP       2001-551510                      1/12/2001                Novel Treatment for Eye Disease

Pending        42-2003-IN         Not yet                        10/2/2003                System And Method For Excitation Of
                                 assigned                                                 Photoreactive Compounds In Eye Tissue
</TABLE>

                                      -5-
<PAGE>

<TABLE>
<CAPTION>
               LSC DOCKET                                          FILING        ISSUE
STATUS             NO.            APPL. NO.       PATENT NO.        DATE          DATE                    TITLE
-------       ------------    ---------------     ----------     ----------      ------   -----------------------------------------
<S>           <C>             <C>                 <C>            <C>             <C>      <C>
Pending        42-2003-IN         Not yet                        10/2/2003                System And Method For Excitation Of
                                 assigned                                                 Photoreactive Compounds In Eye Tissue

Pending        42-2003-IN         Not yet                        10/2/2003                System And Method For Excitation Of
                                 assigned                                                 Photoreactive Compounds In Eye Tissue

Pending        42-2003-IN         Not yet                        10/2/2003                System And Method For Excitation Of
                                 assigned                                                 Photoreactive Compounds In Eye Tissue

Pending        42-2003-IN         Not yet                        10/2/2003                System And Method For Excitation Of
                                 assigned                                                 Photoreactive Compounds In Eye Tissue

Pending        49-2004-PCT    PCT/US04/031342                    9/23/2004                Singlet Oxygen Photosensitizers
                                                                                          Activated By Target Binding Enhancing The
                                                                                          Selectivity Of Targeted PDT Agents

Pending        39-2003-PCT    PCT/US04/034042                   10/16/2004                Photodynamic Therapy For Local Adipocyte
                                                                                          Reduction

Pending        55-2005-PCT        Not yet                         1/7/2005                Extended Treatment of Tumors Through
                                 assigned                                                 Vessel Occlusion with Light
                                                                                          Activated Drugs

Pending        55-2005-TW         Not yet                         1/7/2005                Extended Treatment of Tumors Through
                                 assigned                                                 Vessel Occlusion with Light
                                                                                          Activated Drugs

Pending       61-2005-PROV       60/652,399                      2/11/2005                Customized Nutrients For Weight
                                                                                          Reduction, Control And Behavior
                                                                                          Modification

Pending       60-2004-PROV       60/637,365                      12/17/2004               Addressable Arrays of Light Emitters

Pending           [ * ]            [ * ]                           [ * ]                  Fractionated Light PDT Therapy For
                                                                                          Posterior Eye Disease
</TABLE>

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[*] Confidential Treatment Requested

                                      -6-
<PAGE>

                                   APPENDIX C

                              LSC Trademark Status
                                  January 2005

<TABLE>
<CAPTION>
DOCKET NO.           TRADEMARK             STATUS     CLASS   FILING DATE   SERIAL NO.
----------   -------------------------   ----------   -----   -----------   ----------
<S>          <C>                         <C>          <C>     <C>           <C>
TM-003       Light Sciences                Allowed       5     4/24/2000    76/032,640
TM-004       Light Sciences              Registered     10     4/24/2000    76/032,432
TM-010       Light Infusion Technology     Allowed       5     3/19/2002    76/383,957
TM-011       Light Infusion Technology     Allowed      10     3/19/2002    76/383,716
TM-013       LITX                          Allowed      10     5/14/2002    76/407,935
</TABLE><PAGE>

                                                                REDACTED VERSION

                                  EXHIBIT 10.12

                                       TO

                         LIGHT SCIENCES ONCOLOGY, INC.'S

                       REGISTRATION STATEMENT ON FORM S-1

                                 INITIALLY FILED

                                 APRIL 21, 2006

                           REGISTRATION NO. 333-133474

     "[ * ]" = omitted, confidential material, which material has been
separately filed with the Securities and Exchange Commission pursuant to a
request for confidential treatment.

SUBLICENSE AGREEMENT

<PAGE>

                              SUBLICENSE AGREEMENT

                           DATED AS OF OCTOBER 5, 2005

                                     BETWEEN

                           LIGHT SCIENCES CORPORATION

                                       AND

                          LIGHT SCIENCES ONCOLOGY, INC.

<PAGE>

                              SUBLICENSE AGREEMENT

     THIS SUBLICENSE AGREEMENT (this "Agreement") is effective as of October 5,
2005 (the "Effective Date") by and between Light Sciences Corporation, a
Washington corporation ("LSC"), and Light Sciences Oncology, Inc., a Washington
corporation ("LSO").

     WHEREAS, LSC has exclusively licensed certain technology and intellectual
property rights relating to a photosensitizing agent known as NPe6 or ME2906
under a License and Supply Agreement dated as of April 28, 2000 by and among
Nippon Petrochemicals Co., Ltd., Meiji Seika Kaisha, Ltd, and LSC (formerly
Light Sciences Limited Partnership), as amended by Amendment No. 1 dated
__________, 2005 and as hereafter amended from time to time (the "Meiji License
Agreement");

     WHEREAS, LSO desires to enter an exclusive sublicense with LSC to
commercialize such technology and intellectual property in the Field of Use (as
defined below);

     WHEREAS, concurrent with the execution of this Agreement, LSC and LSO are
entering into a separate Exclusive License Agreement under which LSO is
exclusively licensing from LSC for the Field of Use other technology and
intellectual property rights owned or controlled by LSC (the "Lessee/LSO License
Agreement");

     WHEREAS, LSC has created certain subsidiaries and may create additional
subsidiaries, in its sole and complete discretion, which have sublicensed or
will sublicense from LSC rights under the Meiji License Agreement in order to
pursue research and development efforts in separate fields of use other than the
Field of Use (such subsidiaries being referred to as the "Additional LSC Subs");
and

     WHEREAS, LSO and the Additional LSC Subs desire to provide for the control
and sharing of costs related to the prosecution of any infringement actions
related thereto;

     NOW, THEREFORE, in consideration of the covenants and obligations
hereinafter set forth, the parties hereto hereby agree as follows:

1.   Definitions.

     Capitalized terms in this Agreement shall have the same meaning as those
terms are defined in the Meiji License Agreement unless specifically defined
otherwise in this Agreement. As used herein, the following terms shall have the
following meaning:

     1.1 "Additional Licensees" shall mean each Additional LSC Sub and any other
Person who has obtained a sublicense to the Meiji Licensed Technology directly
from LSC for use outside the Field of Use and who has a right similar to that of
LSO to participate in the enforcement of the Meiji Patents. A Person shall not
be deemed to be an Additional Licensee with respect to a particular Meiji Patent
if the Person (including an Additional LSC Sub) does not have an exclusive
sublicense to the particular Meiji Patent or rights with respect to the
enforcement of the particular Meiji Patent that are similar to LSO's rights set
forth in Section 5.

<PAGE>

For example, a Person who did not sublicense a particular patent (or
subsequently had the patent removed from the definition of "Meiji Patents" that
it was sublicensing) would not be an "Additional Licensee" for purposes of the
notices and other rights and activities described in Section 5 for "Additional
Licensees" with respect to the patent.

     1.2 "Additional LSC Subs" shall have the meaning set forth in the Recitals.

     1.3 "Additional LSC Sub License Agreement" shall have the meaning set forth
in Section 7.7.

     1.4 "Affiliate" shall have the meaning set forth in the Meiji License
Agreement; provided, however, that the Additional LSC Subs, LSC and LSO shall
not be deemed to be Affiliates of each other or be deemed to be controlled by,
controlling or under common control with each other, for purposes of this
definition in this Agreement.

     1.5 "Bankruptcy Code" shall have the meaning set forth in Section 8.2.

     1.6 "Confidential Information" shall have the meaning set forth in Section
6.1.

     1.7 "Damages" shall mean any and all claims, suits, losses, damages, costs,
fees, and expenses, including reasonable attorney fees and litigation costs.

     1.8 "Dispute" shall have the meaning set forth in Section 11.3.

     1.9 "Effective Date" shall have the meaning set forth in the first
paragraph of this Agreement.

     1.10 "Field of Use" shall mean the diagnosis, prophylaxis, treatment and
monitoring in humans or animals of tumors, malignant disease, cancers,
neoplasias, metaplasias, hyperplasias and dysplasias, including, but is not
limited to, tumors located anywhere in the body (e.g., brain, eye, ear, head &
neck, intra-oral, esophageal, intra-thoracic, lung, intra-abdominal, stomach,
ileum, pancreas, spleen, colon, kidney, gonads, uterus, rectum, extremities and
skin), carcinomas in situ, dysplastic tissue changes in organs and surfaces,
hyperplastic tissues in organs and surfaces and sarcomas. The Field of Use does
not include [ * ].

     1.11 "Governmental Authority" means any U.S. Federal, state, foreign or
local government or any court, tribunal, administrative agency or commission or
other governmental or regulatory authority, body or agency, including any
self-regulatory organization.

     1.12 "Infringement Parties in Interest" shall have the meaning set forth in
Section 5.3(a).

     1.13 "Licensed Products" shall mean Bulk, Compound, Product and Kit.

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[ * ] Confidential Treatment Requested

<PAGE>

     1.14 "Liens" means any lien, pledge, mortgage, security interest, claim,
lease, charge, option, right of first refusal or first offer, transfer
restriction, voting requirement or any other encumbrance, restriction or
limitation, other than any the rights granted contemporaneously or subsequently
to the Additional LSC Subs or other Additional Licensees.

     1.15 "LSC Event of Default" shall have the meaning set forth in Section
8.3(a).

     1.16 "LSC/LSO License Agreement" shall have the meaning set forth in the
Recitals.

     1.17 "Meiji Know-How" shall mean the Licensed Know-How as defined in the
Meiji License Agreement.

     1.18 "Meiji Licensed Technology" shall mean the Licensed Technology as
defined in the Meiji License Agreement.

     1.19 "Meiji Patents" shall mean the Licensed Patents as defined in the
Meiji License Agreement.

     1.20 "Meiji License Agreement" shall have the meaning set forth in the
Recitals.

     1.21 "Person" shall mean a natural person, partnership (general or
limited), corporation, joint venture, business trust, limited liability company,
cooperative, association or other form of business organization, trust, estate
or any other entity, other than a Governmental Authority.

     1.22 "Right of First Refusal and Co-Sale Agreement" shall mean the Right of
First Refusal and Co-Sale Agreement dated October 6, 2005, by and among LSO, LSC
and each of the persons and entities identified as parties therein.

     1.23 "Sublicense" shall have the meaning sent forth in Section 2.

     1.24 "Term" shall have the meaning set forth in Section 8.1.

2.   Sublicense of Rights Under the Meiji License Agreement.

     2.1 Sublicense. Subject to the terms of the Meiji License Agreement, LSC
hereby grants to LSO an exclusive (even as to LSC), perpetual sublicense in the
Territory, with right to assign or sublicense, to: (a) use the Meiji Licensed
Technology and all other rights of LSC under the Meiji License Agreement in the
Field of Use; (b) make and have made Licensed Products within the Field of Use;
and (c) sell, have sold, offer to sell, import, export or otherwise distribute
Licensed Products for use within the Field of Use (the "Sublicense"); provided,
however, the duration of the Sublicense may only be terminated if a condition in
Section 8 occurs.

     2.2 Reservation of Rights. LSC reserves for itself a nonexclusive,
nontransferable right to use the Meiji Licensed Technology in the Field of Use
solely for noncommercial research and development purposes.

<PAGE>

     2.3 Meiji License Agreement. Except for the payments to be made to Licensor
by LSC pursuant to Article 5 of the Meiji License Agreement, LSO shall comply
with and perform in accordance with the terms of the Meiji License Agreement and
be entitled to LSC's benefits under the Meiji License Agreement in the Field of
Use. Without the consent of LSO, LSC shall not terminate, breach or otherwise
allow the termination of the Meiji License Agreement and shall not modify, amend
or waive any provision of the Meiji License Agreement. LSC shall use its best
efforts to provide LSO the benefits under the Meiji License Agreement in the
Field of Use as if LSO were a party to the Meiji License Agreement, including
enforcing its rights thereunder as directed by LSO.

     2.4 LSO's Device. Subject to and pursuant to the terms of Article 11 of the
Meiji License Agreement, if LSO develops or acquires rights to the Device for
the Oncology Field, LSO shall be responsible for notifying and discussing with
Meiji a possible mutual agreement with respect to LSO's rights to the Device for
use with the Product in Japan.

3.   Consideration.

     3.1 Cash Payments. As consideration for the Sublicense granted by LSC to
LSO under Section 2, LSO shall pay (a) any milestone payments due Licensor
pursuant to Section 5.2(a) of the Meiji License Agreement as a result of
achieving a milestone event with any Product or Kit for an Oncology Indication
in the Territory that is developed by LSO or its Affiliates or sublicensees and
(b) the royalties due Licensor pursuant to Sections 5.3 and 5.6 (as reduced or
adjusted pursuant to [ * ] of the Meiji License Agreement with respect to Net
Sales of Products and Kits by LSO or its Affiliates or sublicensees in the
Territory for the Field of Use. [ * ] in accordance with the terms of Section 5.

     3.2 Provisions Related to Royalties. [ * ] to the payment obligations of
LSO with respect to the Net Sales of Products and Kits by LSO or its Affiliates
or sublicensees in the Territory for the Field of Use.

4.   Ownership of Intellectual Property; Use of Names.

     4.1 LSO Technology. Any and all intellectual property created, generated or
developed by or on behalf of LSO during the Term from the exercise of the
Sublicense shall vest in and be owned by LSO.

     4.2 Meiji Licensed Technology. Subject to the LSC/LSO License Agreement,
any and all intellectual property created, generated or developed by or on
behalf of LSC during the Term from the use of the Meiji Licensed Technology
shall vest in and be owned by LSC.

     4.3 Joint Inventions. Any intellectual property arising or resulting from
the inventive work by one or more employees of LSC and LSO (and any other
Persons) with respect to the Meiji Licensed Technology, as to which the
employees would be inventors under the patent laws of the

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[ * ] Confidential Treatment Requested

<PAGE>

United States, shall be jointly owned by the parties (each party having an
undivided interest therein), and all of LSC's rights and interests therein shall
be subject to the LSC/LSO License Agreement. The laws of the United States with
respect to joint ownership of inventions shall be applied in all jurisdictions
of the world to the parties' joint ownership interests.

     4.4 Use of Name. Except as provided by this Agreement, neither party shall
use the trademark, indicia or name of the other party on any advertising,
promotional or labeling of Licensed Product without the written approval of the
other party, which approval shall not be unreasonably withheld, conditioned or
delayed.

5.   Patent Maintenance, Extension of Patent Term and Enforcement.

     5.1 Prosecution and Maintenance. LSC shall promptly notify LSO of any
communications or information it receives regarding the filing, prosecution,
issuance and maintenance of the Meiji Patents in the Territory. LSC shall
provide LSO copies of all communications, documents and reports it receives from
Licensor relating to the Meiji Patents, including all semi-annual reports from
Licensor regarding the status of Meiji Patents and copies of all actions,
amendments and correspondence with patent offices in countries in the Territory.

     5.2 Extension of Meiji Patent Term. Upon the request of LSO and with LSO's
reasonable cooperation, LSC shall request and cause Licensor to execute and file
any appropriate application and related documents to extend the term of any
Meiji Patent and shall provide reasonable cooperation in connection therewith
pursuant to Section 14.2 of the Meiji License Agreement.

     5.3 Infringement of Patents by a Third Party.

          (a) Notice. In the event that any infringement of a Meiji Patent in
the Territory by a third party shall come to the attention of LSO or LSC, then
such party shall promptly notify the other party and each Additional Licensee of
the nature and evidence of such infringement and whether such infringement
appears to have occurred in any fields to which the Meiji Patent has been
sublicensed to LSO or any Additional Licensee. LSC shall notify LSO and each
Additional Licensee within [ * ] days of giving or receiving such infringement
notice (including an infringement notice from an Additional Licensee that has
been given in accordance with this Section 5.4(a)) whether or not it intends to
bring a patent infringement action against the third party and the licensed
field (i.e., LSO's and/or any Additional Licensees') in which such infringement
appears to have occurred (LSO and/or any Additional Licensees in whose licensed
field the infringement has occurred and who are identified by LSC or who have
given notice to the other Additional Licensees, LSO and LSC of such infringement
in their licensed fields not later than [ * ] days after the date that LSC's
notice is due is hereafter referred to as the "Infringement Parties in
Interest").

          (b) LSC Action. If LSC gives notice of its intention to bring such an

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[ * ] Confidential Treatment Requested

<PAGE>

infringement action, LSC shall bring such action within the next [ * ], shall
diligently pursue such action and shall be entitled to employ counsel and
control the course of litigation at its expense; provided, however, that LSO
shall be entitled to participate, at its expense, in the action. Any recovery by
LSC in such infringement action shall be used to [ * ] in connection with such
action (such reimbursement to be pro rata on the basis of such costs and fees).
Any remaining amount from the recovery [ * ] shall be divided as follows [ * ]
as reasonably determined and allocated by LSC.

          (c) Sublicensee Action. If LSC gives notice of its intention not to
bring such an infringement action or fails to give notice as required in Section
5.3(a), the Infringement Parties in Interest may elect to have all future
responsibility with respect to bringing such infringement action (and be
responsible for all fees and expenses related thereto [ * ] of the Meiji License
Agreement; provided, however, if LSO and at least one Additional Licensee are
electing Infringement Parties in Interest, LSO shall negotiate in good faith a
joint agreement among the electing Infringement Parties in Interest with respect
to such infringement action and the sharing of expenses and monetary awards
relating thereto. Such joint agreement shall be submitted to review by LSC,
which shall have [ * ] from the receipt thereof to accept or reject such
agreement. If LSC rejects such agreement, LSC shall proceed with such
infringement action as provided in Section 5.3(b). Failure of LSC to reject such
agreement within the [ * ] period shall be deemed an acceptance thereof by LSC.

          (d) Dispute Regarding Action. If the electing Infringement Parties in
Interest are not able to mutually agree on bringing the infringement action
within [ * ] then they shall not be entitled to bring such infringement action;
provided, however, if any Infringement Party in Interest requests, the decision
of which one (and it shall only be one) of such parties should be entitled to
bring and control the infringement action and the allocation of costs and any
recoveries shall be submitted expeditiously to an arbitrator selected
unanimously by such parties (or failing unanimity, an arbitrator with life
sciences patent experience selected by the Regional Vice President of the
American Arbitration Associate in Seattle (or his or her designee)). The
decision of such arbitrator shall be binding on the parties and such arbitration
shall be conducted in Seattle, Washington. The parties shall abide by and
perform in accordance with any decision made by the arbitrator. Any judgment
confirming such decision may be entered in any court of competent jurisdiction.
The expenses of any such arbitration shall be shared equally by the Infringement
Parties in Interest electing to participate in the infringement action.

          (e) Cooperation of LSC. In the event LSO undertakes sole or joint
responsibility with respect to such patent infringement action, LSC shall
cooperate with and assist LSO (and any Additional Licensees, as applicable) and
execute all necessary and proper documents and take such actions as shall be
appropriate in connection with such infringement action, including joining such
action as a party (or allowing the action to be instituted in its name). In the
event that LSO decides not to continue such infringement action after initially
making such election, LSO shall promptly notify LSC and the other Infringement
Parties in Interest who had elected to jointly participate.

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[ * ] Confidential Treatment Requested

<PAGE>

          (f) Cooperation of LSO. LSO shall cooperate with and assist LSC or
Infringement Parties in Interest with regard to any such infringement action and
execute all necessary and proper documents and take such actions as shall be
appropriate in connection with such infringement action.

     5.4 LSO Election. Notwithstanding the foregoing, LSO shall be entitled to
assume LSC's right to enforce any particular Meiji Patent (including bringing
any infringement action and retaining any recovery therefrom) and shall bear all
costs related thereto, provided that LSO (a) notifies LSC and obtain LSC's
written consent to such assumption and (b) notifies each Additional Licensee
known to LSO in writing and no Additional Licensee objects to such assumption
within [ * ] of receipt of such notice. If any Additional Licensee objects to
such assumption, LSO shall discuss in good faith such objections in an attempt
to reach a mutually acceptable agreement with any objecting Additional
Licensees.

     5.5 Misappropriation of Trade Secret. In the event there has been a
misappropriation of a trade secret included in the Meiji Know-How and LSC would
have a right to bring an action for misappropriation of the trade secret, such
action shall be handled in the same way as, and the parties shall proceed and
have the same rights as, set forth in Section 5.3 with respect to infringement
of a Meiji Patent, and notices and other rights described in Section 5.3 shall
be given to those Additional Licensees who have exclusive sublicense rights to
the trade secret and rights with respect to enforcement that are similar to
LSO's rights.

     5.6 LSO Election in the Event of LSC Change of Control. In the event of a
LSC Change of Control with any person or entity other than an Industry Operating
Company occurring prior to an initial public offering of LSC securities to the
general public, LSO shall be entitled upon written notice given to LSC and the
Additional Licensees within [ * ] days after the closing of such LSC Change of
Control (the "Exercise Notice") to assume and exercise any or all of LSC's
rights and responsibilities under this Agreement with respect to the enforcement
of any of the Meiji Licensed Technology under this Section 5 (unless the
exercise of the right to give the Exercise Notice is waived in writing by
holders of a majority of the Series A Preferred Stock of LSO). The assumption of
rights under this Section 5.6 shall become effective immediately upon receipt of
the Exercise Notice by LSC, and LSC shall promptly cooperate with LSO in all
respects necessary to give effect to the Exercise Notice in accordance with this
Agreement. However, any such election shall not modify the financial
arrangements or obligations of the parties under this Agreement or under any
Additional LSC Sub License Agreement (e.g., each party and each Additional
Licensee shall continue to be obligated financially to the same extent as if LSO
had not assumed LSC's rights and responsibilities pursuant to this Section 5.6).
If LSO does not elect to assume any such rights or responsibilities within such
[ * ]-day period, then the Additional Licensees shall have the right to elect to
assume and exercise such rights and responsibilities of LSC in the order of
preference agreed upon by LSC and the Additional Licensees by giving written
notice to LSC and LSO. If the Additional Licensees elect to assume and exercise
such rights and responsibilities, the financial arrangements or obligations of
the parties under this Agreement or any Additional LSC Sublicense Agreement
shall remain

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[ * ] Confidential Treatment Requested

<PAGE>

unchanged. The failure of LSO to exercise its right to assume and exercise any
or all of LSC's rights and responsibilities for the enforcement of any Meiji
Licensed Technology under this Section 5.6 shall not affect the License or any
of LSO's other rights under this Agreement. LSO shall not be entitled to give an
Exercise Notice with respect to any LSC Change of Control occurring after the
first such LSC Change of Control following the date of this Agreement.
Capitalized terms used in this Section 5.6 and not defined in this Agreement
shall have the meaning set forth in the Right of First Refusal and Co-Sale
Agreement.

6.   Confidentiality.

     6.1 Confidential Information. Subject to Section 6.2, "Confidential
Information" shall mean (a) any proprietary or confidential information or
material in tangible form disclosed hereunder that is designated as
"Confidential" at the time it is delivered to the receiving party or (b)
proprietary or confidential information disclosed orally hereunder which is
identified as confidential or proprietary when disclosed and such disclosure of
confidential information is confirmed in writing within [ * ] days by the
disclosing party. The Meiji License Agreement shall be deemed to be Confidential
Information of both parties to this Agreement, except to the extent it has
become a matter of public knowledge without fault on the part of the party. Each
party shall exercise due care (i.e., at least as much care as it affords its own
confidential information) to prevent unauthorized disclosure or use of
Confidential Information. The obligations of confidentiality and nonuse shall
exist for the Term and a period of [ * ] years thereafter.

     6.2 Exclusions. Confidential Information shall not include information that
the receiving party can establish, through documentary evidence, to:

          (a) have been known by the receiving party prior to communication by
the disclosing party;

          (b) have been a matter of public knowledge at the time of such
disclosure by the disclosing party;

          (c) have become a matter of public knowledge, without fault on the
part of the receiving party, subsequent to disclosure by the disclosing party to
the receiving party; or

          (d) have been disclosed to the receiving party from a third party
lawfully having possession of such Confidential Information without an
obligation of confidentiality to the disclosing party.

     6.3 Permitted Uses/Disclosures. Notwithstanding the provisions of Section
6.1 above, the receiving party may use or disclose Confidential Information of
the disclosing party in connection with the exercise of its rights hereunder
(including commercialization and sublicensing) or the fulfillment of its
obligations and duties hereunder and in prosecuting or

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<PAGE>

defending litigation, complying with applicable U.S. and international
governmental regulations (including, without limitation, regulations of the
Securities and Exchange Commission and the U.S. Food and Drug Administration)
and submitting information to tax or other U.S. and international governmental
authorities; provided, however, if the receiving party is required by law to
make any public disclosures of Confidential Information of the disclosing party,
to the extent it may legally do so, it shall give reasonable advance notice to
the disclosing party of such disclosure to enable the disclosing party to
interpose an objection to such a requirement and shall use its reasonable
efforts to secure confidential treatment of the Confidential Information prior
to its disclosure (whether through protective orders or otherwise).

     6.4 Confidentiality of this Agreement. The terms of this Agreement shall be
deemed to be Confidential Information of both parties and subject to the
provisions of this Section 6, except that either party may disclose the terms of
this Agreement to actual or prospective corporate partners and actual or
prospective investors and other professional advisors without the prior consent
of the other party under appropriate confidentiality provisions.

     6.5 Obligations Under Meiji License Agreement. Notwithstanding the
foregoing, the parties' confidentiality and non-use obligations with respect to
"Confidential Information" (as defined in the Meiji License Agreement) received
from Licensor shall be subject to and governed solely by the terms of Article 18
of the Meiji License Agreement.

7.   Representations and Warranties, Disclaimer of Liability; Indemnification;
     Covenants.

     7.1 Representations and Warranties by LSC. LSC represents and warrants to
LSO that:

          (a) it is a corporation duly organized and validly existing under the
laws of the State of Washington and has the requisite power and authority to
execute and deliver this Agreement and to consummate the transactions
contemplated hereby, including the right to grant the rights and sublicenses
granted herein;

          (b) no consent, approval or authorization of, or declaration or filing
with, any Governmental Authority or Person is required on the part of LSC in
connection with its execution, delivery and performance of this Agreement or the
consummation of the transactions contemplated hereby;

          (c) the execution and delivery of this Agreement and the performance
and consummation of the transactions contemplated hereby have been duly
authorized by all necessary action on the part of LSC, and this Agreement has
been duly executed and delivered by LSC and, subject to the due authorization,
execution and delivery by LSO, constitutes a valid and binding obligation of
LSC, enforceable against LSC in accordance with its terms, except as may be
limited (i) by applicable bankruptcy, insolvency, reorganization or other laws
of general application relating to or affecting the enforcement of creditors'
rights generally; and (ii) by the effect of rules of law governing the
availability of equitable remedies;

          (d) the execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby will not (i) conflict with,
or result in any

<PAGE>

violation or breach of any provision of the Articles of Incorporation, by-laws
or organizational documents of LSC, (ii) conflict with or violate any applicable
Federal or state statutes, judgments, decrees, laws, ordinances, rules,
regulations, injunctions and orders applicable to LSC or any of its assets or
operations or (iii) result in any violation or breach of, constitute a default
under or conflict with the provisions of any agreement to which LSC is a party
or by which it or any of its properties or assets is otherwise bound;

          (e) its rights under the Meiji License Agreement, including its rights
to the Meiji Licensed Technology, are free and clear of all Liens;

          (f) it has not previously granted and will not grant any rights or
sublicenses with respect to the Meiji Licensed Technology in the Field of Use or
in conflict with the rights and sublicenses granted herein;

          (g) to the knowledge of LSC, none of the Meiji Licensed Technology
infringes or conflicts with, and LSC has not received any notice of infringement
of, or conflict with, any sublicense, patent, copyright or other intellectual
property right of any other Person and, to the knowledge of LSC, there is no
infringement or unauthorized use by any Person of any of the Meiji Licensed
Technology;

          (h) to the knowledge of LSC, the validity or enforceability of any of
the Meiji Licensed Technology and the title of Licensor thereto has not been
questioned in any litigation, governmental inquiry or proceeding to which LSC is
a party and, to the knowledge of LSC, no such litigation, governmental inquiry
or proceeding is threatened;

          (i) as of the Effective Date, except for the Meiji Patents and the
patents and patent applications licensed to LSO pursuant to the LSC/LSO License
Agreement, LSC does not control any patent or patent application claiming or
disclosing inventions relating to or useful in the Field of Use;

          (j) to the knowledge of LSC, the patents and patent applications set
forth in Appendice A constitute all of the Meiji Patents, are owned by Licensor
and are not subject to an ownership interest or a claim of an ownership interest
therein by a third party;

          (k) to the knowledge of LSC, the practice and use of the Meiji
Licensed Technology within the Field of Use will not infringe any intellectual
property right of a third party;

          (l) LSC has taken all reasonable actions necessary or appropriate to
preserve the confidentiality of all trade secrets and proprietary or
confidential information or material related to the Meiji Licensed Technology;

          (m) as of the Effective Date, the Additional LSC Subs are [NONE] and
there are no other Additional Licensees;

          (n) No event or omission has occurred with respect to the Meiji
License Agreement which (by the giving of notice of the passing of time or both)
would (i) constitute a

<PAGE>

material breach or default by LSC or, to the knowledge of LSC, Licensor, (ii)
permit termination by LSC or, to the knowledge of LSC, Licensor or (iii) result
in LSC's loss of exclusivity under the Meiji License Agreement;

          (o) LSC has delivered a true and complete copy of the Meiji License
Agreement to LSO; and

          (p) The Meiji License Agreement is in full force and effect and none
of its terms have been amended, modified or waived.

     7.2 Indemnification of LSC. Other than as provided in Section 7.3, in no
event shall LSC be liable for any use by LSO of the Meiji Licensed Technology or
any loss, claim, damage or liability of any kind or nature, which may arise from
or in connection with acts by LSO under this Agreement or the use of the Meiji
Licensed Technology by LSO. LSO shall indemnify, defend and hold harmless LSC,
including its directors, officers, employees, and agents, against any and all
Damages resulting from or arising out of (a) the breach of any representation or
warranty made by LSO in this Agreement, (b) any breach or violation of, or
failure to properly perform, any covenant or agreement made by LSO in this
Agreement or (c) the possession, manufacture, use, sale or other disposition of
Licensed Products by LSO or its sublicensees, whether based on breach of
warranty, negligence, product liability or otherwise, except to the extent such
Damages result from a breach by LSC of any representation, warranty, covenant or
agreement of LSC or the gross negligence or willful misconduct of LSC.

     7.3 Indemnification of LSO. LSC shall indemnify, defend and hold LSO and
its respective directors, officers, employees and agents harmless from and
against any and all Damages resulting from or arising out of (a) the breach of
any representation or warranty made by LSC in this Agreement or (b) any breach
or violation of, or failure to properly perform, any covenant or agreement made
by LSC in this Agreement, except to the extent such Damages result from the
gross negligence or willful misconduct of LSO.

     7.4 DISCLAIMER OF LIABILITY. NOTWITHSTANDING ANYTHING ELSE IN THIS
AGREEMENT OR OTHERWISE, NEITHER LSC, THE ADDITIONAL LSC SUBS NOR LSO WILL BE
LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT,
NEGLIGENCE, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR ANY
INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOST PROFITS.

     7.5 DISCLAIMER OF WARRANTIES. EXCEPT AS SPECIFICALLY PROVIDED IN THIS
AGREEMENT, NEITHER LSO NOR LSC MAKES ANY WARRANTIES OF ANY KIND, WHETHER EXPRESS
OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

     7.6 ESSENTIAL TERMS. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PROVISIONS
UNDER THIS AGREEMENT THAT LIMIT LIABILITY, DISCLAIM WARRANTIES, OR EXCLUDE
CONSEQUENTIAL DAMAGES OR OTHER DAMAGES OR REMEDIES ARE ESSENTIAL TERMS OF THIS
AGREEMENT THAT ARE

<PAGE>

FUNDAMENTAL TO THE PARTIES' UNDERSTANDING REGARDING ALLOCATION OF RISK.
ACCORDINGLY, SUCH PROVISIONS SHALL BE SEVERABLE AND INDEPENDENT OF ANY OTHER
PROVISIONS AND SHALL BE ENFORCED AS SUCH, REGARDLESS OF ANY BREACH OR OTHER
OCCURRENCE HEREUNDER. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, ALL
LIMITATIONS OF LIABILITY, DISCLAIMERS OF WARRANTIES, AND EXCLUSIONS OF
CONSEQUENTIAL DAMAGES OR OTHER DAMAGES OR REMEDIES SHALL REMAIN FULLY VALID,
EFFECTIVE AND ENFORCEABLE IN ACCORDANCE WITH THEIR RESPECTIVE TERMS, EVEN UNDER
CIRCUMSTANCES THAT CAUSE ANY EXCLUSIVE REMEDY UNDER THIS AGREEMENT TO FAIL OF
ITS ESSENTIAL PURPOSE.

     7.7 Sublicenses With Additional LSC Subs. LSC represents and warrants that
(i) the sublicense agreement entered into, and to be entered into, by LSC and
each Additional LSC Sub (the "Additional LSC Sub License Agreements") is and
shall be in a form substantially identical to this Agreement (other than changes
to the name of each Additional LSC Sub and the applicable field of use); (ii) no
Additional Licensee (including all Additional LSC Subs) has been granted or
shall be granted any rights with respect to Meiji Licensed Technology that are
more beneficial, taken as a whole (without regard to field of use), to such
licensee in comparison to the rights of LSO hereunder, unless LSO is granted, in
writing, identical beneficial rights (and related obligations) at the same time
of such other grant, which it may accept or reject with respect to its Field of
Use or, in the case of a nonexclusive grant, with respect to the field of use of
the grant and/or its Field of Use; and (iii) Section 5.6 of any sublicense
agreement for the Meiji Licensed Technology between LSC and a subsequent
Additional Licensee shall be adjusted to reflect that LSO has the first right,
but not the obligation, to assume all of LSC's rights and responsibilities with
respect to the enforcement of the Meiji Licensed Technology under Section 5 of
this Agreement in the event of a change of control of LSC as described in
Section 5.6 of this Agreement.

     7.8 Identification of Additional Licensees. LSC shall promptly notify LSO
of the name and address of each Additional Licensee (including each Additional
LSC Sub) and its field of use and the scope of its rights and obligations in
comparison to this Agreement.

8.   Term and Termination of Agreement; Dissolution of LSO; Event of Default.

     8.1 Term. This Agreement will commence on the Effective Date and, unless
earlier terminated in accordance with this Section 8, will remain in full force
and effect in accordance with and during the term of the Meiji License Agreement
(the "Term"). Upon expiration of this Agreement (on a country-by-country basis
as provided in the Meiji License Agreement), LSO shall have a fully paid-up,
irrevocable exclusive license with the right to sublicense, to make, have made,
developed, used, distributed, offer for sale, sell, import and export Licensed
Products in a given country for a given indication for which royalty obligations
under Section 5.3 of the Meiji License Agreement have expired.

     8.2 Insolvency. In the event of (a) the voluntary or involuntary
proceedings by or against LSO are instituted in bankruptcy under any insolvency
law, or a receiver or custodian is appointed for LSO, or proceedings are
instituted by or against LSO for corporate reorganization

<PAGE>

or the dissolution or liquidation of LSO under Title 11 of the United States
Code (the "Bankruptcy Code"), which proceedings, if involuntary, shall not have
been dismissed within ninety (90) days after the date of filing, or if LSO makes
an assignment for the benefit of creditors, or substantially all of the assets
of LSO are seized or attached and not released within ninety (90) days
thereafter, or LSO has rejected this Agreement (or any sublicense grant
contained herein) under Section 365(n) of the Bankruptcy Code, or (b) the
voluntary liquidation, dissolution, winding up or cessation of business by LSO,
then in such case and at such time this Agreement shall terminate and,
notwithstanding the language in Section 2 regarding the perpetual nature of the
Sublicense, the Sublicense shall terminate.

     8.3 LSC Default.

          (a) Event of Default. The following events shall be defined as an "LSC
Event of Default": (i) breach of this Agreement by LSC which remains uncured (if
curable) for thirty (30) days following notice of such breach by LSO, (ii)
voluntary or involuntary proceedings by or against LSC are instituted in
bankruptcy under any insolvency law, or a receiver or custodian is appointed for
LSC, or proceedings are instituted by or against LSC for corporate
reorganization or the dissolution or liquidation of LSC under the Bankruptcy
Code, which proceedings, if involuntary, shall not have been dismissed within
ninety (90) days after the date of filing, or if LSC makes an assignment for the
benefit of creditors, or substantially all of the assets of LSC are seized or
attached and not released within ninety (90) days thereafter, or LSC has
rejected this Agreement (or any sublicense grant contained herein) under Section
365(n) of the Bankruptcy Code, (iii) the voluntary liquidation, dissolution,
winding up or cessation of business by LSC or (iv) the occurrence of an event of
default under the terms of any Additional LSC Sub License Agreement or any other
sublicense agreement between LSC and any Additional Licensee giving rise to
rights upon such event of default substantially similar to the rights of LSO
under Section 8.3(b) hereof.

          (b) Meiji Patents. In the event of an LSC Event of Default and
notwithstanding Section 5 hereof (i) LSC shall immediately notify LSO and each
Additional Licensee and (ii) LSO and any Additional Licensees shall have the
right to jointly agree with respect to all future enforcement of the Meiji
Patents (with the agreement of LSO and any Additional Licensee having an
enforcement right to any particular Meiji Patent being required for any such
joint agreement with respect to the particular Meiji Patent). In the event LSO
and the Additional Licensees thereof do not jointly agree with respect to all
future enforcement of particular Meiji Patents, any enforcement thereof shall be
in accordance with Section 5.

          (c) Irrevocable License. In addition, in the event of an LSC Event of
Default, the Sublicense granted in Section 2 shall become irrevocable, fully
paid-up and non-royalty bearing.

          (d) 365(n). All rights and sublicenses granted under or pursuant to
this Agreement by LSC to LSO are, and shall otherwise be deemed to be, for
purposes of Section 365(n) of the Bankruptcy Code, sublicenses of rights to
"intellectual property" as defined under Section 101(35A) of the Bankruptcy
Code. LSO, as a sublicensee of such rights under this Agreement, shall retain
and may fully exercise all of its rights and elections under the Bankruptcy
Code. In the event of the commencement of a bankruptcy proceeding by or against

<PAGE>

LSC under the Bankruptcy Code that is not dismissed within ninety (90) days
after it is filed, LSO shall be entitled to a complete duplicate of (or complete
access to, as appropriate) any such intellectual property and all embodiments of
such intellectual property, and the same, if not already in its possession,
shall be promptly delivered to LSO (i) upon any such commencement of a
bankruptcy proceeding upon written request therefor by LSO, unless LSC elects to
continue to perform all of its obligations under this Agreement or (ii) if not
delivered under (i) above, upon the rejection of this Agreement by or on behalf
of LSC, upon written request therefor by LSO.

     8.4 Voluntary Termination. LSO shall have the right to terminate this
Agreement (including the Sublicense) or any portion of the Sublicense,
notwithstanding any language in Section 2 to the contrary, upon sixty (60) days
prior written notice to LSC. In the event the LSC/LSO License Agreement is
terminated, either party shall have the right, exercisable during the next
twelve (12) months, to terminate this Agreement (including the Sublicense),
notwithstanding any language in Section 2 to the contrary, upon thirty (30) days
prior written notice to the other party.

     8.5 Effect of Termination.

          (a) Accrued Rights and Obligations. Termination of this Agreement for
any reason shall not release either party hereto from any liability which, at
the time of such termination, has already accrued to the other party or which is
attributable to a period prior to such termination, nor preclude either party
from pursuing any rights and remedies it may have hereunder or at law or in
equity with respect to any breach of this Agreement. It is understood and agreed
that monetary damages may not be a sufficient remedy for any breach of this
Agreement and that the non-breaching party may be entitled to injunctive relief
as a remedy for any breach. Such remedy shall not be deemed to be the exclusive
remedy for breach of this Agreement, but shall be in addition to all other
remedies available at law or in equity.

          (b) Return of Confidential Information. Upon termination of this
Agreement pursuant to Section 8.2 or 8.4, each party shall promptly return to
the other party all Confidential Information of the other party.

          (c) Sublicenses. In the event this Agreement is terminated pursuant to
Section 8.2, any sublicensee of LSO who is not then in material breach shall
have its sublicense converted to a direct sublicense from LSC under the terms
and conditions of this Agreement, as further limited and restricted by the terms
of the original sublicense as then in effect.

     8.6 Survival. Subject to the provisions of this Section 8, Sections 1, 2,
4, 6, 7 (other than 7.1), 8 and 11 shall survive the expiration or termination
of this Agreement for any reason.

9.   Diligence.

     LSO shall use commercially reasonable diligence to develop, obtain
Regulatory Approval of, and commercialize a Product (and/or, in LSO's
discretion, a Product as part of a Kit) for the Field of Use pursuant to Article
6 of the Meiji License Agreement.

<PAGE>

10.  Disclosures of Meiji Licensed Technology.

     During the Term, LSC shall promptly disclose to LSO all new Meiji Licensed
Technology (including improvements and inventions by Licensor to the Compound or
Product developed by Licensor) that has been disclosed to LSC and, upon
reasonable request, shall cause Licensor to disclose to LSC and LSO new Meiji
Licensed Technology. Such disclosure to LSO shall be in writing and shall
describe such inventions, discoveries and know-how and any application to the
Field of Use known to LSC.

11.  General Provisions.

     11.1 Assignment. This Agreement shall be assignable by either party hereto
so long as such assignee agrees in writing to be bound by the terms and
conditions of this Agreement; provided that an assignment by LSC shall be
conditioned upon receipt by LSO of satisfactory evidence of the sale, assignment
or transfer to the same assignee of the LSC Licensed Technology (as defined in
the LSC/LSO License Agreement) and LSC's rights and obligations under the Meiji
License Agreement.

     11.2 Government Approvals. LSO shall be responsible for obtaining all
necessary governmental approvals for the development, testing, production,
distribution, sale and use of Licensed Products, as applicable, in any country
where Licensed Products shall be manufactured, used, sold, or otherwise
distributed by LSO. LSC shall provide LSO, at LSO's expense, with any assistance
reasonably requested by LSO in obtaining such governmental approvals.

     11.3 Governing Law; Arbitration. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Washington,
without reference to conflicts of laws principles. Except as specifically set
forth in Section 5.3(d), prior to engaging in any formal dispute resolution with
respect to any dispute, controversy or claim arising out of or in relation to
this Agreement or the breach, termination or invalidity thereof (each, a
"Dispute"), the respective appropriate officers of the parties shall attempt for
a period not less than [ * ] days to resolve such Dispute. Any Dispute that
cannot be settled amicably by agreement of the parties pursuant to the preceding
sentence shall be finally settled by arbitration in Seattle, Washington in
accordance with the arbitration rules of the American Arbitration Association
then in force by one or more arbitrators appointed in accordance with said
rules, provided that the appointed arbitrator(s) shall have appropriate
experience in the biotechnology industry; provided, however, that arbitration
proceeding may not be instituted until the party alleging breach of this
Agreement by the other party has given the other party not less than [ * ] days
notice to remedy any alleged breach and the other party has failed to do so. The
award rendered shall be final and binding upon both parties. The judgment
rendered by the arbitrator(s) shall include costs of arbitration, reasonable
attorneys' fees and reasonable costs for any expert and other witnesses. Nothing
in this Agreement shall be deemed as preventing either party from seeking
injunctive relief (or any other provisional remedy) from any court having
jurisdiction over the parties and the subject matter of the Dispute as necessary
to protect either party's name,

----------
[ * ] Confidential Treatment Requested

<PAGE>

proprietary information, trade secrets, know-how or any other proprietary
rights. Judgment upon the award may be entered in any court having jurisdiction
or application may be made to such court for judicial acceptance of the award
and an order of enforcement as the case may be.

     11.4 Severability. This Agreement is intended to be severable. Should any
part or provision of this Agreement be found to be unenforceable or invalid for
any reason, the remaining parts and provisions will remain in effect; provided,
however, that in the event of an LSC bankruptcy proceeding, this Agreement must
either be assumed or rejected in its entirety in accordance with Section 365 of
the Bankruptcy Code.

     11.5 Entire Agreement. This Agreement constitutes the entire understanding
of LSC and LSO with respect to the subject matter hereof and supersedes all
prior agreements and understandings. This Agreement may be modified only with
the written agreement of both parties.

     11.6 Force Majeure. If the performance of any part of this Agreement by
either party, or of any obligation under this Agreement, is prevented,
restricted, interfered with or delayed by reason of any cause beyond the
reasonable control of the party liable to perform, unless conclusive evidence to
the contrary is provided, the party so affected shall, upon giving written
notice to the other party, be excused from such performance to the extent of
such prevention, restriction, interference or delay, provided that the affected
party shall use its reasonable best efforts to avoid or remove such causes of
nonperformance and shall continue performance with the utmost dispatch whenever
such causes are removed. When such circumstances arise, the parties shall
discuss what, if any, modification of the terms of this Agreement may be
required in order to arrive at an equitable solution.

     11.7 Waiver. No waiver of any rights shall be effective unless expressly
consented to in writing by the party to be charged and the waiver of any breach
of default shall not constitute a waiver of any other right hereunder or any
subsequent breach or default.

     11.8 Notices. All notices and other communications hereunder will be in
writing and will be deemed given if delivered personally, by fax (receipt
confirmed), or by registered or certified mail, return receipt requested and
postage prepaid or sent by express courier service (receipt verified), to the
parties at the following addresses (or at such other addresses for a party as
will be specified by the like notice; provided, that notices of a change of
address will be effective only upon receipt thereof):

          If to LSC, addressed to:

               Light Sciences Corporation
               34931 SE Douglas Street, Suite 200
               Snoqualmie, WA 98065
               Attn: President
               Telephone No.: (425) 369-2800
               Telecopy No.: (425) 369-2845

<PAGE>

               Copy to: ______________________________________
               _______________________________________________
               _______________________________________________
               Attn: _________________________________________

          If to LSO, addressed to:

               Light Sciences Oncology, Inc.
               34931 SE Douglas Street, Suite 200
               Snoqualmie, WA 98065
               Attn:  President
               Telephone No.: (425) 369-2800
               Telecopy No.: (425) 369-2845

               Copy to:_______________________________________
               _______________________________________________
               _______________________________________________
               Attn: _________________________________________

All such notices and communications shall be deemed effective when received.

     11.9 Counterparts. This Agreement may be signed in counterparts, each of
which shall be deemed an original and all of which shall constitute one
instrument.

                            [Signature Pages Follow]

<PAGE>

THIS AGREEMENT IS ACCEPTED AND AGREED TO IN ITS ENTIRETY BY AUTHORIZED
REPRESENTATIVES OF:

"LSC"                                   "LSO"

LIGHT SCIENCES CORPORATION              LIGHT SCIENCES ONCOLOGY, INC.

/s/ Albert A. Luderer                   /s/ M.J. Winship
-------------------------------------   ----------------------------------------
Signature                               Signature

Albert A. Luderer                       M.J. Winship
Name                                    Name

CEO                                     COO
Title                                   Title

------------------------------------   -----------------------------------------
Date                                    Date
<PAGE>

                                   APPENDIX A
<TABLE>
<CAPTION>
  LSC DOCKET                             PATENT      FILING      ISSUE
     NO.         STATUS     APPL. NO.      NO.        DATE        DATE                                TITLE
---------------  -------  ------------  ---------  ----------  ----------  --------------------------------------------------------
<S>              <C>      <C>           <C>        <C>         <C>         <C>
  MEIJI0001-CA   Granted     487040      1262862   7/18/1985   11/14/1989  Tetrapyrrole Therapeutic Agents
MEIJI0001CIP-CA  Granted     487041      1264740   7/18/1985    1/23/1990  Tetrapyrrole Therapeutic Agents
  MEIJI0002-AU   Granted    56889-86     583373    4/30/1986    8/18/1989  Tetrapyrrole Polyaminomonocarboxylic Acid Therapeutic
                                                                           Agents
  MEIJI0002-CA   Granted     507943      1314042   4/30/1986    3/2/1993   Tetrapyrrole Polyaminomonocarboxylic Acid Therapeutic
                                                                           Agents
  MEIJI0002-DK   Granted    1973-86      168512    4/30/1986    1/26/1987  Tetrapyrrole Polyaminomonocarboxylic Acid Therapeutic
                                                                           Agents
  MEIJI0002-EP   Granted    86105955     213272    4/30/1986   12/11/1990  Tetrapyrrole Polyaminomonocarboxylic Acid Therapeutic
                                                                           Agents
  MEIJI0002-NO   Granted     861722      169292    4/30/1986    6/3/1992   Tetrapyrrole Polyaminomonocarboxylic Acid Therapeutic
                                                                           Agents
   MEIJI0003     Granted   07/351770    5,066,274  5/12/1989   11/19/1991  Tetrapyrrole Therapeutic Agents
  MEIJI0003-AU   Granted    56891-86     589957    4/30/1986    2/22/1990  Tetrapyrrole Therapeutic Agents
  MEIJI0003-CA   Granted     507944      1291710   4/30/1986    11/5/1991  Tetrapyrrole Therapeutic Agents
  MEIJI0003-DK   Granted    1972-86      168690    4/30/1986    1/23/1987  Tetrapyrrole Therapeutic Agents
  MEIJI0003-EP   Granted    86105954     210351    4/30/1986    2/4/1987   Tetrapyrrole Therapeutic Agents
  MEIJI0003-NO   Granted     861724      173319    4/30/1986    12/1/1993  Tetrapyrrole Therapeutic Agents
  MEIJI0004-AU   Granted    56890-86     589,176   4/30/1986    1/29/1990  Tetrapyrrole Therapeutic Agents
  MEIJI0004-CA   Granted     507945      1290753   4/30/1986   10/15/1991  Tetrapyrrole Therapeutic Agents
  MEIJI0004-DK   Granted    1971-86      168296    4/30/1986    1/26/1987  Tetrapyrrole Therapeutic Agents
  MEIJI0004-EP   Granted    86105953     200218    4/30/1986    5/11/1986  Tetrapyrrole Therapeutic Agents
  MEIJI0004-NO   Granted     861723      169293    4/30/1986    4/7/1987   Tetrapyrrole Therapeutic Agents
   MEIJI0005     Granted   07/137750    5,004,811  12/24/1987   4/2/1991   Novel Tetrapyrrole Aminocarboxylic Acids
  MEIJI0005-AU   Granted    27687/89     618054     1/3/1989    4/13/1992  Novel Tetrepyrrole Aminocarboxlic Acids
  MEIJI0005-CA   Granted     586634      1340023   12/21/1988   9/1/1998   Novel Tetrepyrrole Aminocarboxlic Acids
  MEIJI0005-EP   Granted    88121593     322795    12/23/1988   7/5/1989   Novel Tetrepyrrole Aminocarboxlic Acids
   MEIJI0006     Granted   07/441303    4,997,639  11/27/1989   5/5/1991   Method for Detecting Cholesterol Deposited in Bodies of
                                                                           Mammals
   MEIJI0007     Granted   07/875367    5,308,861  4/29/1992    5/3/1994   Therapeutic Agent for Treating Atherosclerosis of
                                                                           Mammals
   MEIJI0008     Granted   08/229940    5,430,051  4/19/1994    7/4/1995   Treatment of Arthritis Using Derivatives of Porphorins
 MEIJI0008-DIV   Granted     353882     5,567,409  12/12/1994  10/22/1996  Method and Medical Agent for Diagnosis of Arthritis
  MEIJI0008-CA   Granted    2121716      1401280   4/20/1994    9/30/1994  Method and Medical Agent for Diagnosis and/or Therapy of
                                                                           Arthritis
  MEIJI0008-CN   Granted   94104956.5     76506    4/21/1996   11/14/2001  Method and Medical Agent for Diagnosis and/or Therapy of
                                                                           Arthritis
  MEIJI0008-EP   Granted    94106083     629409    4/19/1994   12/21/1994  Tetrapyrrole Carboxylic Acid Derivatives for Diagnosis
                                                                           and/or Therapy of Arthritis
  MEIJI0008-KR   Granted    94-8364      94-8364   4/20/1994   10/28/1999  Method and Medical Agent for Diagnosis and/or Therapy of
                                                                           Arthritis
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
  LSC DOCKET                             PATENT      FILING      ISSUE
     NO.         STATUS     APPL. NO.      NO.        DATE        DATE                                TITLE
---------------  -------  ------------  ---------  ----------  ----------  --------------------------------------------------------
<S>              <C>      <C>           <C>        <C>         <C>         <C>
  MEIJI0008-PH   Granted    1-1994-      1-1994-   10/18/1994   2/22/2002  Method and Medical Agent for Diagnosis and/or Therapy of
                             49204        49204                            Arthritis
  MEIJI0008-TW   Granted   83-106082     259706     7/4/1994   10/11/1995  Method and Medical Agent for Diagnosis and/or Therapy of
                                                                           Arthritis
  MEIJI0009-RE   Granted   09/301320    RE37,180   4/29/1999    5/15/2001  Photochemotherapeutical Obstruction of newly-formed
                                                                           Blood Vessels
  MEIJI0010-US   Granted   09/297,810   6,350,772  10/17/1997   2/25/2002  Treatment of Autoimmune Diseases by Photochemotherapy
 MEIJI0010-CON   Granted   10/056,410   6,653,337  1/23/2002   11/25/2003  Therapy of Auto-Immune Disease by a
                                                                           Photochemotherapeutical Method
  MEIJI0010-CA   Pending   2,270,558               10/17/1997              Treatment of Autoimmune Diseases by Photochemotherapy
  MEIJI0012-US   Granted   09/743,448   6,413,495  7/12/1999    7/2/2002   X-Ray-Intercepting Metal Complexes Of Chlorin
                                                                           Derivatives original title: Novel X-Ray Intercepting
                                                                           Metal Complexes of
  MEIJI0012-AU   Granted    46510/99     748,625   7/12/1999    9/26/2002  Novel X-Ray Intercepting Metal Complexes of Chlorin
                                                                           Derivatives
  MEIJI0012-CA   Pending   2,336,582               7/12/1999               Novel X-Ray Intercepting Metal Complexes of Chlorin
                                                                           Derivatives
  MEIJI0012-EP   Granted   99929792.2    1097935   7/12/1999    12/3/2003  X-Ray-Intercepting Metal Complexes Of Chlorin
                                                                           Derivatives original title: Novel X-Ray Intercepting
                                                                           Metal Complexes of
  MEIJI0013-US   Pending   10/203,402              2/17/2000               Photodynamic Therapy for Selective Occlusion of
                                                                           Neovascular Vessel in Ocular Fundus Tissue
  MEIJI0013-EP   Pending   00904008.0              2/17/2000               Photodynamic Therapy for Selective Occlusion of
                                                                           Neovascular Vessel in Ocular Fundus Tissue
  MEIJI0014-US   Pending   09/913,402               4/3/2000               Inhibitors for Vascular Reconstriction After Angioplasty
  MEIJI0014-EP   Pending   00913083.2               4/3/2000               Inhibitors for Vascular Reconstriction After Angioplasty
  MEIJI0016-RE   Pending   10/262880               10/3/2002               Medicine For Clogging Blood Vessels of Eye Fundus
                           (reissue
                          application
                              of
                           6,128,524)
  MEIJI0016-EP   Pending   97250041.7              2/21/1997               Medicine For Clogging Blood Vessels of Eye Fundus
</TABLE>

                                      -2-

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