Document:

EXHIBIT 10.3

                  TITLE OF AGREEMENT: PT 523 License Agreement

                                 EFFECTIVE DATE:

                                    PARTIES:

                                    LICENSOR

                       Dana-Farber Cancer Institute, Inc.
                                44 Binney Street
                           Boston, Massachusetts 02115
                                       and
                                Ash Stevens, Inc.
                           5861 John C. Lodge Freeway
                            Detroit, Michigan, 48202

                                    LICENSEE

                          Hudson Health Sciences, Inc.
                               787 Seventh Avenue
                                   48th Floor
                            New York, New York 10019

                               DFCI AGREEMENT NO.:

<PAGE>

                           EXCLUSIVE LICENSE AGREEMENT

This Exclusive License Agreement, including all attachments, (hereinafter called
"Agreement"), effective as of December 19, 2002 ("Effective Date"), is between
the Dana-Farber Cancer Institute, Inc., a Massachusetts non-profit organization
having a principal place of business at 44 Binney Street, Boston, Massachusetts,
02115 ("DFCI") and Ash Steven, Inc., a corporation having a place of business at
5861 John C. Lodge Freeway, Detroit, Michigan, 48202 ("ASH, and together with
DFCI, the "Licensor") and Hudson Health Sciences, Inc., a Delaware corporation
having a principal place of business at 787 Seventh Avenue, New York, NY 10019
("Licensee").

         WHEREAS, DFCI and ASH are either sole or joint owners under certain
Patent Rights as defined below; and

         WHEREAS, pursuant to a Patent Management Agreement effective February
1st 2002, Licensors agreed DFCI shall act as ASH'S sole and exclusive agent for
the licensing of such Patent Rights ; and

         WHEREAS, Licensor desires to have the rights used to promote the public
interest by granting a royalty bearing, worldwide, exclusive license to the
Subject Technology to LICENSEE on the terms set forth herein; and

         WHEREAS, Licensee, having represented to Licensor that it has the
financial capacity, strategic commitment, capabilities and/or experience to
develop, produce, market and sell resultant products, desires to obtain said
exclusive license under the Subject Technology.

         NOW, THEREFORE, for and in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto expressly agree as follows:

                            ARTICLE 1 -- DEFINITIONS

1.1      "Affiliate" means any company, corporation or other business entity
         that is controlled by, controlling, or under common control with
         Licensee. For this purpose "control" means direct or indirect
         beneficial ownership of at least fifty percent (50%) interest in the
         voting stock (or the equivalent) of the company, corporation or other
         business or having the right to direct, appoint or remove a majority of
         members of its board of directors (or their equivalents) or having the
         power to control the general management of the company, corporation or
         other business, by law or contract.

1.2      "Confidential Information" of Licensor shall mean all technical
         reports, data or information disclosed by Licensee which is in writing
         and marked "Confidential", "Proprietary" or the like, or, if disclosed
         orally, is indicated as confidential at the time of disclosure and is
         confirmed as confidential in writing within thirty (30) days after such
         disclosure.

<PAGE>

1.3      "Field of Use" means all commercial and non-commercial uses.

1.4      "First Commercial Sale" means the initial transfer of Licensed Product
         by or on behalf of Licensee, an Affiliate or Sublicensee for cash or
         non-cash consideration to which a fair market value can be assigned for
         purposes of determining Net Sales.

1.5      "New Inventions" means any potential new invention disclosed for
         example through an invention disclosure or a draft manuscript after the
         Effective Date of this Agreement, which Inventors have an obligation to
         assign to Licensor that arises from research by the Inventor(s) which
         is specifically directed to the Subject Technology.

1.6      "Know-how" shall mean all technology, cell lines, biological materials,
         compounds, know-how, methods, documents, materials, formulations,
         materials, data, drawings and sketches, designs, testing and test
         results, regulatory information of a like nature and all Confidential
         Information related to PT523 which was developed as of the Effective
         Date in the laboratories or under the direction of Andre Rosowsky and
         Henry B. Bader, employees of DFCI and Peter Blumbergs and Ming-Teh Lin,
         employees of ASH (hereinafter called "Inventors"), owned by any of the
         Licensor, which the Licensors have the legal right to disclose and
         license to the Licensee.

1.7      "Licensed Process" means any process covered in whole or in part by an
         issued, unexpired claim or a pending claim covered by the Patent Rights
         or which incorporates or uses the Know-how in whole or in part.

1.8      "Licensed Product(s)" shall mean:

                  (A)      any product that is covered in whole or in part by a
                           valid and unexpired claim or pending claim contained
                           in the Patent Rights in the country in which the
                           product is made, used, leased or sold; or

                  (B)      any product that is manufactured or used according to
                           a Licensed Process.

1.9      "Net Sales" means the gross income which is paid by unrelated third
         parties to Licensee or Sublicensees for the sale of Licensed Products
         under this Agreement in bona fide arms-length transactions less the
         following deductions, which may not exceed reasonable and customary
         amounts in the country in which the transaction occurs:

                  (A)      Transportation charges or allowances actually paid or
                           granted;

                  (B)      Trade, quantity, cash or other discounts and brokers'
                           or agents' commissions, if any, actually allowed and
                           taken;

                  (C)      Credits or allowances made or given on account of
                           rejects, returns or retroactive price reductions for
                           any amount not collected that are specifically
                           identifiable to Licensed Products;

                  (D)      Any tax or governmental charge directly on sale or
                           transportation, use or delivery of products paid by a
                           licensed entity and not recovered from the purchaser.

         Net Sales shall include the fair market value of any non-cash
         consideration from sale of Licensed Products received by Licensee, its
         Affiliates or Sublicensees. Licensed Products are considered "sold"
         when billed, invoiced or payment is received, whichever occurs first.

<PAGE>

1.10     "Patent Rights" means (1) United States Patent No. 4,767,761 (DFCI
         #111) entitled "Ornithine Derivatives and their Use as Methotrexate
         Resistant Cell Inhibitors", solely owned by DFCI, which issued on
         August 30, 1988 and any reissues, reexaminations or extensions of the
         patent and (2) United States Provisional Patent Application, Serial No.
         60/376,615, (DFCI #774) entitled "Pharmaceutically Active Ornithine
         Derivatives, Ammonium Salts Thereof and Methods of Making Same" filed
         on April 30, 2002 and applications derived therefrom, including
         continuations, any claim(s) in any continuation-in-part to the extent
         that the claims are directed to subject matter specifically described
         in USSN 60/376,615 and entitled to the priority date of the application
         under 35 U.S.C. ss.120, divisionals, substitutions, and any patents
         issuing thereon; any reissues, reexaminations or extensions of the
         patents; and any foreign counterparts of the patent application. Patent
         application, Serial No. 60/376,615, is jointly owned between DFCI and
         ASH and is the subject of a Patent Management Agreement signed February
         1, 2002. Patent Rights existing on the Effective Date are listed on
         Schedule 1.

1.11     "Parties" shall mean Licensee and Licensor, individually or
         collectively.

1.12     "Sale" or "Sold" means any grant, sale, lease, assignment, transfer,
         conveyance or other disposition of Licensed Products for value by or on
         behalf of Licensee, any Affiliate(s) or Sublicensee(s).

1.13     "Sublicensee" means any natural person or legal entity, which is not an
         Affiliate, to which Licensee grants a sublicense of some or all of the
         rights granted to Licensee under this Agreement.

1.14     "Subject Technology" shall mean Patent Rights and Know-how individually
         or collectively.

1.15     "Territory" means worldwide

         ARTICLE 2 -- GRANT OF LICENSES, RESERVED RIGHTS, SUBLICENSING,
                            GRANT BACKS, AND OPTIONS

2.1      LICENSE GRANTS. Subject to all of the terms and conditions of this
         Agreement and the non-exclusive license granted to the United States
         government, Licensor grants to Licensee an exclusive worldwide license
         in the Field of Use to utilize the Subject Technology, and to make,
         have made, use, lease and/or sell the Licensed Products and to practice
         the Licensed Processes, during the term of this Agreement, unless
         sooner terminated as hereinafter provided.

2.2      To Licensor's knowledge and belief, as of the Effective Date, DFCI has
         exclusive right, title, and interest in and to US Patent No. 4,767,761.
         To Licensor's knowledge and belief, said patent is free and clear of
         all liens, charges, encumbrances and rights of third parties. Licensor
         has received the assignment of each of the Inventors of any of their
         right, title, and interest in and to Patent Application No. 60/376,615
         to Licensors. To the Office of Research and Technology Ventures'
         knowledge and belief and to Ash Stevens, Inc.'s knowledge and belief
         there are no licenses, options, restrictions, liens, disputes, or legal
         proceedings relating to the rights granted to the Licensee under this
         Agreement.

<PAGE>

2.3      Licensor has the authority to issue licenses under Patent Rights.

2.4      To Licensor's knowledge and belief, as of the Effective Date, without
         independent investigation, there is no claim, pending or threatened, of
         infringement, interference or invalidity regarding, any part or all of
         the Patent Rights.

2.5      AFFILIATES. Licensee is entitled to extend its exclusive, worldwide
         licenses under this Article 2 to its Affiliates, subject to Article 2.6
         and consistent with all of the terms and conditions of this Agreement.
         If Licensee does extend its license and an Affiliate assumes
         obligations under the Agreement, Licensee guarantees performance, under
         this Agreement, by the Affiliate. If Licensor has a claim arising under
         this Agreement against an Affiliate, Licensor may seek a remedy
         directly against Licensee and may, but is not is not required to, seek
         a remedy against the Affiliate. Any termination of the Agreement under
         Article 8 as to Licensee also constitutes termination as to any
         Affiliates.

2.6      NO IMPLIED LICENSES. Except for the patents contained in the Patent
         Rights and Improvements, this Agreement confers no license or rights by
         implication, estoppel or otherwise under any other patent applications
         or patents owned in whole or in part by Licensor.

2.7      DFCI'S RESERVED RIGHTS. The licenses granted by Licensor are subject to
         the following reserved rights.

         2.7.1    The rights of the United States of America, as set forth in
                  Public laws 96-517 and 98-620, the regulations promulgated
                  thereunder, and the policy of any funding agencies. Any rights
                  granted hereunder, which are greater than permitted by Public
                  Laws 96-517 and 98-620, are subject to modification as
                  required to conform to the provisions of those statutes;

         2.7.2    DFCI's right to make and use the Subject Technology in the
                  Field of Use solely for its own non-commercial research
                  purposes; and

         2.7.3    DFCI's right to conduct pre-clinical and clinical trials of
                  the Subject Technology, provided that DFCI first obtain the
                  prior written consent of the Licensee.

         2.7.4    DFCI's right to supply Know-how and grant non-exclusive,
                  non-transferable licenses under Subject Technology to other
                  organizations academic, governmental or not-for-profit
                  organizations to make and use Subject Technology for
                  non-commercial research purposes in the Field of Use and not
                  for use in human subjects, clinical trials or for diagnostic
                  purposes involving human subjects. DFCI agrees that during the
                  two year period following the Effective Date, that it will use
                  its reasonable best efforts to provide notice to Licensee of
                  any transfer described in this paragraph 2.7.4 to the extent
                  that DFCI's Office of Research and Technology Ventures has
                  knowledge of such transfer.

<PAGE>

2.8      SUBLICENSES. Licensee has the right to grant sublicenses under this
         Agreement consistent with the terms and conditions of this Agreement.
         Licensee shall be responsible for its Sublicensees and shall not grant
         any rights which are inconsistent with the rights granted to and
         obligations of Licensee hereunder.

         2.8.1    NOTICE. Licensee shall promptly notify Licensor in writing of
                  the identity and address of any Sublicensee with whom it
                  concludes a sublicense agreement, under this Agreement, and
                  shall supply Licensor with a copy of each sublicense agreement
                  at the specified address in Article 11. Such copy shall be
                  postmarked within thirty days of the execution of the
                  sublicense. Licensee shall also forward to Licensor annually a
                  copy of the reports received by Licensee from its Sublicensee
                  during the preceding twelve (12) month period under the
                  sublicenses as shall be pertinent to (1) its operations under
                  the sublicense and (2) a royalty accounting under the
                  sublicense agreement.

         2.8.2    FORM AND CONTENT OF SUBLICENSES. Licensee shall issue any
                  sublicense(s) granted by it under this Agreement in writing
                  and shall attach a copy of this Agreement to all sublicenses.

                  Licensee shall include the equivalent of at least the
                  following provisions in all sublicenses.

                  (A)      Sublicensee shall use its commercially reasonable
                           efforts to bring the subject matter of the sublicense
                           into commercial use as quickly as possible and shall
                           report annually to Licensee on its operations under
                           the sublicense.

                  (B)      Sublicensee shall make payments due to Licensee in
                           relation to Net Sales of Licensed Products in a
                           timely manner, so that Licensee may comply with its
                           obligations to make payments to Licensor as set forth
                           in Articles 3 and 4 of this Agreement.

                  (C)      The terms and conditions of Section 2.7, paragraphs
                           4.2.1 and 4.2.2, Sections 5.2 - 5.5, Sections 6.1 and
                           6.2, Article 7, Sections 8.4.4 and Articles 9, 10 and
                           12 of this Agreement are binding on the Sublicensee.

                  (D)      Sublicensees do not have the right to grant further
                           sublicenses.

                  (E)      No sublicense agreement concluded by Licensee under
                           this Agreement shall contain any provision which
                           would cause it to extend beyond the term of this
                           Agreement.

         2.8.3    LICENSEE'S CONTINUING OBLIGATIONS. Nothing in this Section 2.8
                  may be construed to relieve Licensee of its obligations to
                  Licensor under this Agreement, including but not limited to
                  Licensee's obligations under Article 9.

2.9      LICENSE GRANT BACK. If Licensor receives a bona fide request from a
         third party for a license under the Patent Rights to develop a product
         in a field other than oncology, (the "New Product Opportunity")
         Licensor shall so notify Licensee and request that Licensee enter into
         good faith negotiations with the third party to grant a sublicense to
         the Patent Rights to such third party. If the New Product Opportunity
         is directly competitive with any Licensed Product then sold or under
         development by Licensee or a Sublicensee, or included in Licensee's
         annual strategic Development Plan then in force, Licensee may decline
         the Licensor's request to grant such sublicense. If the New Product
         Opportunity is not competitive with any Licensed Product
         ("Non-competing New Product Opportunity"), Licensee shall either (a)
         provide Licensor, within six months of Licensee receipt of Licensor's
         request, a plan for developing the Non-competing New Product
         Opportunity, such plan to be implemented within six (6) months of its
         submission to Licensor or (b) enter into good faith negotiations with
         the third party to grant a sublicense on commercially reasonable terms
         to allow such third party the ability to commercialize the
         Non-competing New Product Opportunity. If Licensee does not provide
         such plan to develop the Non-competing New Product Opportunity to
         Licensor or a sublicense has not been granted to the third party within
         twelve (12) months of the third party's request, Licensee shall grant
         back rights to Patent Rights to Licensor to sufficiently enable
         Licensor to grant a license to the third party to allow such third
         party to commercialize the Non-competing New Product Opportunity.

<PAGE>

2.10     OPTION TO NEW INVENTIONS.

         2.10.1   During the 18 months following the Effective Date of this
                  Agreement, Licensor shall promptly report, in writing, any New
                  Invention to Licensee. All information given to Licensee by
                  Licensor in accordance with this Section 2.10 will be deemed
                  Confidential Information.

         2.10.2   Licensee shall have 45 days after receipt of report of New
                  Invention to evaluate New Invention and notify Licensor in
                  writing that it desires to license New Invention.

         2.10.3   Upon notification by Licensee of its desire to acquire rights
                  to the New Invention, the Parties shall negotiate in good
                  faith a reasonable license fee and upon receipt of such
                  license fee by Licensor, Licensor will incorporate such New
                  Invention under the Patent Rights through an amendment to this
                  Agreement.

         2.10.4   If the Licensee fails to notify Licensor pursuant to Section
                  2.10.2 or if the Licensee decides not to acquire rights to the
                  New Invention, Licensor shall have no further obligations to
                  Licensee with respect to the New Invention.

           ARTICLE 3 -- CONSIDERATION - AMOUNTS AND TIME FOR PAYMENT

In partial consideration of the rights granted by Licensor to Licensee under
this Agreement, Licensee shall make the following payments to Licensor according
to this Article 3 and Article 4, on behalf of itself, any Affiliate(s) or
Sublicensee(s).

3.1      REIMBURSEMENTS AND OTHER FINANCIAL CONSIDERATION.

         3.1.1    PATENT EXPENSES. Within thirty (30) days after the Effective
                  Date, Licensee shall reimburse Licensor for all out-of-pocket
                  expenses incurred and paid by Licensor as of the Effective
                  Date for filing, prosecuting, maintaining and enforcing Patent
                  Rights. Licensee acknowledges that, as of the Effective Date,
                  the total amount of these patent expenses is Eleven Thousand
                  Fifty Four dollars ($11,054).

<PAGE>

         3.1.2    INITIAL LICENSE FEE. Licensee shall pay to Licensor a
                  non-creditable, non-refundable license issue fee in the sum of
                  One Hundred Thousand Dollars ($100,000.00), which is due and
                  payable to Licensor within thirty (30) days of the Effective
                  Date of the Agreement.

         3.1.3    MILESTONE PAYMENTS. With respect to each Licensed Product,
                  Licensee shall make the following milestone payments to
                  Licensor within 60 days of the occurrence of the following
                  events, whether Licensee, an Affiliate or Sublicensee achieves
                  the events.

<TABLE>
<CAPTION>
------------------------------ ----------------------------------------------------------
        PAYMENT                                          EVENT
        AMOUNT
------------------------------ ----------------------------------------------------------
<S>                            <C>
     $100,000                  upon  the  dosing  of the  first  patient  in a  Phase  I
                               clinical  trial  of  a  Licensed  Product  pursuant  to a
                               Licensee sponsored Investigational New Drug application
------------------------------ ----------------------------------------------------------
     $100,000                  upon  completion  of 50% of the  enrollment  of a Phase I
                               clinical trial of a Licensed Product
------------------------------ ----------------------------------------------------------
     $800,000                  upon initiation of a Phase III clinical trial  (including
                               a Phase II/III)
------------------------------ ----------------------------------------------------------
     $5,000,000                upon approval by FDA of a New Drug Application
------------------------------ ----------------------------------------------------------
</TABLE>

         3.1.4    RUNNING ROYALTIES. During the term of this Agreement as set
                  forth in Section 8.1, Licensee shall pay Licensor a
                  non-refundable semi-annual royalty in an amount equal to three
                  and one half percent (3.5%) of Net Sales by the Licensee, or
                  any Affiliate of the Licensee, of the Licensed Products.

         3.1.5    SUBLICENSING RUNNING ROYALTIES. Licensee shall pay Licensor an
                  amount equivalent to the sum Licensor would otherwise have
                  received in running royalties if Licensed Products were sold
                  directly by Licensee, under Article 3.1.4. Recording and
                  payment of these royalties by Licensee must be made according
                  to the provisions of Article 4.

         3.1.6    SUBLICENSING OR PARTNERING INCOME. The Licensee shall pay to
                  Licensor an amount equal to twenty percent (20%) of fees or
                  other non-royalty consideration received by Licensee from a
                  Sublicensee as a result of the granting of a sublicense by the
                  Licensee after the Effective Date of this Agreement but before
                  the initiation of a Phase II clinical trial including payments
                  of equity (other than in connection with a merger,
                  acquisition, consolidation, reorganization or other transfer
                  of all or substantially all of the Licensee's assets or
                  business), received by Licensee from a Sublicensee in
                  connection with a sublicense agreement. The Licensee shall pay
                  to Licensor an amount equal to fifteen percent (15%) of such
                  sublicense fees or other non-royalty consideration if the
                  granting of such sublicense to the Subject Technology by the

<PAGE>

                  Licensee occurs after the initiation of a Phase II clinical
                  trial. Such fees shall include, but not be limited to:

                  (A)      up front fees received by licensee for the granting
                           of a sublicense;

                  (B)      milestone payments (to the extent that Licensee
                           receives payments for achieving milestones);
                           provided, however, that the Licensor shall not be
                           entitled to any milestone payments made to the
                           Licensee to the extent that the Licensors would be
                           otherwise entitled to a Milestone Payment pursuant to
                           paragraph 3.1.3 above;

                  (C)      sublicense maintenance fees;

                  (D)      any similar payments made by Sublicensees to either
                           Licensee or its Affiliate on account of sublicenses
                           granted under this Agreement.

                  Excluded from these royalty obligations are

                  (1)      payments received by Licensee from Sublicensees in
                           connection with a research and development program;

                  (2)      the sale by the Licensee of debt or equity securities
                           of the Licensee; and

                  (3)      royalties covered by Section 3.1.4 or 3.1.5 above.

                  Licensee shall pay these royalties to Licensor within 45 days
                  of each calendar quarter in which the royalties are received
                  by Licensee or its Affiliate from Sublicensees.

3.2      WAIVER OR DEFERRAL. Waiver or deferral by Licensor of any payment owed
         under any paragraph under Section 3.1 may not be construed as a waiver
         or deferral of any subsequent payment owed by Licensee to Licensor.

3.3      COMBINATION PACKAGES. If a Licensed Product is sold in a combination
         package or kit containing other active products or processes, then Net
         Sales for purposes of determining royalty payments on the combination
         package will be calculated using one of the following methods, but the
         royalties payable to Licensor may not be reduced to less than fifty
         percent (50%) of that provided for in paragraph 3.1.6 of this
         Agreement:

                  (A)      By multiplying the net selling price of the
                           combination by the fraction A/A+B, where A is the
                           gross selling price, during the royalty-paying period
                           in question, of the Licensed Product sold separately,
                           and B is the gross selling price during the royalty
                           period in question, of the other active products sold
                           separately; or

                  (B)      If no separate sales are made of the Licensed Product
                           or any of the active products in such combination
                           package during the royalty-paying period in question,
                           Net Sales for the purposes of determining royalty
                           payments, must be calculated by dividing the net
                           selling price of the combination by the number of
                           functions performed by the combination sold where
                           such combination contains active agents other than
                           those licensed under this Agreement.

<PAGE>

3.4      REDUCED RATE. To the extent Licensee or any Affiliate of Licensee is
         required, by order or judgment of any court to obtain in any
         jurisdiction any license from a third party in order to practice the
         rights purported to be granted to Licensee by Licensor hereunder under
         issued patents in such jurisdiction, then up to fifty percent (50%) of
         the royalties payable under such license in such jurisdiction may be
         deducted from royalties otherwise payable to Licensor hereunder,
         provided that in no event shall the aggregate royalties payable to
         Licensor in any semiannual period in such jurisdiction be reduced by
         more than fifty percent (50%) as a result of any such deduction,
         provided further that any excess deduction remaining as a result of
         such limitation may be carried forward to subsequent periods.

          ARTICLE 4 -- ROYALTY REPORTS, PAYMENTS AND FINANCIAL RECORDS

4.1      ROYALTY REPORTS. Following the First Commercial Sale of a Licensed
         Product, within 45 days after March 31, June 30, September 30 and
         December 31 of each year in which this Agreement is in effect, Licensee
         shall deliver to Licensor full, true and accurate reports of its
         activities and those of its Affiliates or Sublicensee(s), if any,
         relating to this Agreement during the preceding three month period.
         These reports must include at least the following:

                  (A)      Number of Licensed Products manufactured and sold by
                           Licensee, and any Affiliates or Sublicensees, in each
                           country of the Territory;

                  (B)      Total billings for the Licensed Products sold;

                  (C)      Deductions applicable to determining Net Sales;

                  (D)      The nature and amount of Sublicensing or Partnering
                           Income received under Article 3.1.6 and 3.1.6 by
                           Licensee; and

                  (E)      Total royalties due to Licensor.

         With each report, Licensee shall pay to Licensor the royalties due and
         payable. If no royalties are due, Licensee shall so report. If multiple
         Licensed Products are covered by the license granted under this
         Agreement, Licensee shall separately identify each Licensed Product in
         the royalty report and specify which patents/application within the
         Patent Rights are used for each Licensed Product.

4.2      RECORD KEEPING.

         4.2.1    BOOKS AND RECORDS. Licensee shall keep, and shall require its
                  Affiliates and Sublicensees to keep, true books of account
                  containing an accurate record (together with supporting
                  documentation) of all data necessary for determining the
                  amounts payable to Licensor. Licensee shall keep such records
                  at its principal place of business or the principal place of
                  business of the appropriate division of Licensee to which this
                  Agreement relates and shall require its Affiliates and
                  Sublicenses to keep their books and records in the same
                  manner.

<PAGE>

         4.2.2    INSPECTIONS. In order for Licensor to determine the
                  correctness of any report or payment made under this
                  Agreement, upon reasonable notice to the Licensee, Licensee
                  shall make its records available to Licensor for inspection
                  upon reasonable notice to the Licensee, for a period of three
                  (3) years following the end of the calendar year to which they
                  pertain. Licensee shall also require any Affiliates or
                  Sublicensees to make their records available for inspection by
                  Licensor, in the same manner as provided in this paragraph
                  4.2.2.

                  Licensor may inspect the records during regular business hours
                  by a certified public accountant selected by Licensor and
                  reasonably acceptable to the licensed entity whose records are
                  being inspected. In conducting inspections under this
                  paragraph 4.2.2, Licensee agrees that Licensor's accountant
                  may have access to all records which Licensor reasonably
                  believes to be relevant to calculating royalties owed to
                  Licensor under Article 3.

                  Licensor is responsible for the cost of any inspection, unless
                  the examination shows an underreporting or underpayment by any
                  entity in excess of five percent (5%) for any twelve month
                  period, in which case Licensee shall pay the cost of the
                  inspection as well as any additional sum that would have been
                  payable to Licensor had the Licensee reported correctly, plus
                  interest as set forth in Section 4.5.

4.3      FORM OF PAYMENTS AND TAXES. Licensee must make all payments to be made
         to Licensor in Boston, Massachusetts, or at such other place or in such
         other way as Licensor may reasonably designate. Payments must be paid
         by check or wire transfer.

         Licensee shall pay all amounts payable to Licensor under this Agreement
         in United States funds without deduction for taxes, exchange,
         collection or other charges that may be imposed by any country or
         political subdivision with respect to any amounts payable to Licensor
         under this Agreement. Licensee is responsible for paying, or ensuring
         payment of, such taxes, exchange, collection or other charges.

4.4      CURRENCY CONVERSION. If any currency conversion is required in
         connection with any payment owed to Licensor, the conversion will be
         made at the buying rate for the transfer of such other currency as
         quoted by the Wall Street Journal on the last business day of the
         applicable accounting period in the case of any payment payable with
         respect to a specified accounting period or, in the case of any other
         payment, the last business day before the date the payment is due.

4.5      INTEREST. Any payment owed to Licensor under this Agreement that is not
         made when due will accrue interest beginning on the first day following
         the due date specified in Article 3. The interest will be calculated at
         the annual rate of the sum of (a) three percent (3%) plus (b), the
         prime interest rate quoted by Fleet Bank on the date the payment is
         due, the interest being compounded on the last day of each calendar
         quarter. However, the annual rate may not exceed the maximum legal
         interest rate in Massachusetts. The payment of interest as required by
         this Section does not foreclose Licensor from exercising any other
         rights or remedies it has as a consequence of the lateness of any
         payment.

<PAGE>

             ARTICLE 5 -- ARTICLE 5 - OPERATIONS UNDER THE LICENSE

5.1      DUE DILIGENCE

         5.1.1    GENERAL OBLIGATIONS. Licensee shall use commercially
                  reasonable efforts to bring one or more Licensed Products to
                  the marketplace as soon as reasonably practicable, through a
                  diligent and aggressive program of development, production and
                  distribution. Such efforts must not be less than the efforts
                  expended by Licensee in connection with its other high
                  priority projects. After commercialization, Licensee shall
                  continue active and diligent efforts to keep Licensed Products
                  available to the public.

         5.1.2    DEVELOPMENT PLAN. Within ninety (90) days after the Effective
                  Date, Licensee shall provide Licensor with a written
                  development plan that describes Licensee's plan for bringing
                  the Subject Technology to practical application ("Development
                  Plan"). The Development Plan must set forth the particular
                  Licensed Products and practical applications of Licensed
                  Products that Licensee initially intends to develop, cite
                  Licensee's specific goals and objectives for the ensuing year
                  for developing or commercializing the Licensed Intellectual
                  Property. The outline must include actual or projected
                  financial resources or strategic alliances that will be
                  required to meet such objectives together with a timeline for
                  meeting such specific goals and objectives.

         5.1.3    SPECIFIC DILIGENCE BENCHMARKS. Licensee, its Affiliates or its
                  Sublicensees shall diligently pursue the following specific
                  effort and achievement benchmarks ("Specific Diligence
                  Benchmarks") by the dates specified in the following table:

<TABLE>
<CAPTION>
-------------------------------- --------------------------------------------------------------
      SPECIFIC DILIGENCE
          BENCHMARKS                                         DATE
-------------------------------- --------------------------------------------------------------
<S>                                 <C>
   IND Filing                       Within six (6) Months of License Execution
-------------------------------- --------------------------------------------------------------
   Initiation of Phase I            Within three (3) Months of IND Approval
   Clinical Trial
-------------------------------- --------------------------------------------------------------
   Filing of NDA                    Within six (6) Months of Completion of Data Analysis of
                                    Pivotal Trial
-------------------------------- --------------------------------------------------------------
</TABLE>

                  For purposes of this paragraph 5.1.3, Licensor will consider
                  efforts of an Affiliate or Sublicensee as efforts of Licensee.

         5.1.4    ADJUSTMENTS TO SPECIFIC DILIGENCE BENCHMARKS. In the event
                  that, despite the diligent efforts of Licensee, Licensee fails
                  to meet or expects to fail to meet any of the Specific
                  Diligence Benchmarks set forth above in section 5.1.3, and can
                  provide to Licensor reasonable evidence of its diligent
                  efforts as well as a reasonable alternative plan for the
                  meeting of these development benchmarks, upon written request
                  of Licensee, the Parties shall negotiate, in good faith,
                  revised Specific Diligence Benchmarks which shall be
                  incorporated in this Agreement by amendment.

<PAGE>

         5.1.5    DEVELOPMENT AND COMMERCIALIZATION REPORTS. On or before each
                  anniversary of the Effective Date, Licensee shall provide to
                  Licensor a written report describing the efforts by Licensee,
                  or any Affiliates or Sublicensees, to bring one or more
                  Licensed Products to the marketplace. The report must be in
                  sufficient detail to permit Licensor to monitor Licensee's
                  compliance with the due diligence provisions of this
                  Agreement.

                  Licensee shall include at least the following in these
                  reports: (a) a summary of Licensee's progress toward meeting
                  the goals and objectives that had been established for the
                  previous year; (b) a summary of Licensee's goals and
                  objectives for the ensuing year for developing and
                  commercializing a Licensed Product including an identification
                  of any additional Licensed Products that Licensee intends to
                  develop; and (c) if applicable, (i) a summary of those unmet
                  goals and objectives from the previous year, and an
                  explanation for the failure to meet such goals and objectives
                  and (ii) a summary describing the corrective steps the
                  Licensee intends to take with respect to the aforementioned
                  unmet goals and objectives.

         5.1.6    FAILURE TO PERFORM. Licensee's failure to perform with any due
                  diligence requirement provided in Sections 5.1.1, 5.1.2 and
                  5.1.5 or in the event that the parties cannot, in good faith,
                  agree on revised Specific Diligence Benchmarks as provided for
                  in Section 5.1.4, shall be grounds for Licensor to terminate
                  this Agreement according to Section 8.2.3

5.2      U.S. MANUFACTURE. Licensee shall manufacture Licensed Products leased,
         used or sold in the United States substantially in the United States as
         required by 35 U.S.C. 204 and 37 C.F.R. 401 et. seq., as amended.
         Licensee shall also require any Affiliate(s) or Sublicensee(s) to
         comply with this U.S. manufacture requirement.

         If Licensee provides reasonable evidence to Licensor that domestic
         manufacture of a Licensed Product is not commercially feasible, at
         Licensee's request, Licensor will cooperate with Licensee to seek a
         waiver from the United States government with respect to the United
         States manufacture requirement. If a waiver is to be sought, Licensee
         shall provide Licensor with the required information, prepare the
         initial paperwork necessary for applying for or obtaining the waiver
         and bear all costs associated with the waiver process. Licensee
         acknowledges that Licensor can not guarantee that a waiver can or will
         be obtained.

5.3      OTHER GOVERNMENT LAWS. Licensee shall comply with, and ensure that its
         Affiliates and Sublicensees comply with, all government statutes and
         regulations that relate to Licensed Products. These include but are not
         limited to FDA statutes and regulations, the Export Administration Act
         of 1979, as amended, codified in 50 App. U.S.C. 2041 et seq. and the
         regulations promulgated thereunder or other applicable export statutes
         or regulations.

5.4      PATENT MARKING. Licensee shall mark, and shall require its Sublicensees
         and Affiliates to mark, all Licensed Products sold in the United States
         with the word "Patent" and the number or numbers of the issued
         patent(s) applicable to the Licensed Product.

<PAGE>

5.5      PUBLICITY; USE OF NAME. Nothing contained in this Agreement shall be
         construed as granting any right to the Licensee or its Affiliates or
         Sublicensees, if any, to use in advertising, publicity, or other
         promotional activities any name, trade name, trademark, or other
         designation of Licensor or any of its units (including contraction,
         abbreviation or simulation of any of the foregoing) without the prior,
         written consent of Licensor, provided, however, that Licensor
         acknowledge and agree that the Licensee may use the names of Licensor
         and the names of the Inventors in various documents used by the
         Licensee for capital raising and financing without such prior written
         consent or where the use of such names shall be otherwise required by
         law.

      ARTICLE 6 -- PATENT PREPARATION, FILING, PROSECUTION AND MAINTENANCE

6.1      RESPONSIBILITY. The Licensee, is responsible for preparing, filing,
         prosecuting and maintaining the patent applications and patents
         included within the Patent Rights and for paying all associated costs.
         For purposes of this Agreement, patent prosecution includes ex parte
         prosecution, interference proceedings, reissues, reexaminations and
         oppositions. The Licensee shall provide, or cause its agent to provide,
         copies of relevant correspondence between the Licensee and the United
         States Patent Office or the various foreign patent offices and give
         Licensor reasonable opportunity to advise the Licensee or it's counsel
         on such matters. Licensor designates the following individual or
         department for receiving the patent-related correspondence.

         Patent Counsel
         Office of Patent Counsel
         Dana-Farber Cancer Institute
         44 Binney Street
         Boston, MA  02115

         Upon Licensor's request, the Licensee shall be available to consult
         with Licensor on matters relating to preparing, filing, prosecuting or
         maintaining any of the applications or patents within Patent Rights.
         The Licensee, acting reasonably, shall consider the legitimate
         interests of Licensor in performing its responsibility under this
         Section 6.1. Licensee designates the following individual or department
         to receive such requests from Licensor.

         [INSERT INDIVIDUAL OR DEPARTMENT HERE]

6.2      COOPERATION. Licensor shall cooperate with the Licensee in preparing,
         filing, prosecuting and maintaining the patent applications and patents
         within Patent Rights. The Parties shall provide prompt notice to each
         other of any matter that comes to their attention that may affect the
         patentability, validity or enforceability of any patent application or
         patent within Patent Rights.

6.3      RELINQUISHING RIGHTS. . If Licensee elects not to prepare, prosecute,
         and/or maintain any patents or patent applications in any country in
         the world Licensee shall give Licensor ninety (90) days advance written
         notice; relinquish responsibility for prosecution of said application
         or patent; and surrender its license under such patent application or
         patent. However, if Licensee is surrendering any patent or application
         within Patent Rights on which an interference proceeding or opposition
         has been declared or filed, the notice period is one hundred and eighty
         (180) days. Thereafter, Licensee will have no further obligation to pay
         any royalties or other payments under this Agreement with respect to
         any such country including without limitation patent expenses for the
         patents or patent applications that it surrendered, but excluding any
         accrued but unpaid royalties and/or expenses owed to the Licensor as of
         the date of the relinquishment of such rights.

<PAGE>

6.4      PROSECUTION BY LICENSOR. Licensor shall thereafter have the right, but
         not any obligation, to prosecute, obtain issuance of, and/or maintain
         such patent or patent application relinquished by Licensee in such
         country at its own cost, and any such applications and resultant
         patents shall not be subject to this Agreement.

          ARTICLE 7 -- ARTICLE 7 - PATENT INFRINGEMENT AND ENFORCEMENT

7.1      The Licensee and Licensor shall promptly provide written notice, to the
         other party, of any alleged infringement by a third party of the Patent
         Rights and provide such other party with any available evidence of such
         infringement.

7.2      During the term of this Agreement, the Licensee shall have the right,
         but not the obligation, to prosecute and/or defend, at its own expense
         and utilizing counsel of its choice, any infringement of, and/or
         challenge to, the Patent Rights. Before Licensee commences any legal
         proceeding with respect to the infringement, Licensee shall consider in
         good faith the views of Licensor. In furtherance of such right,
         Licensor hereby agrees that the Licensee may join Licensor as a party
         in any such suit if required by law, at Licensee's expense. No
         settlement, consent judgment or other voluntary final disposition of
         any such suit which would adversely affect the rights of Licensor may
         be entered into without the consent of Licensor, which consent shall
         not be unreasonably withheld.

7.3      In the event that a claim or suit is asserted or brought against the
         Licensee alleging that the manufacture or sale of any Licensed Product
         by the Licensee, an Affiliate of the Licensee, or any sublicensee, or
         the use of such Licensed Product by any customer of any of the
         foregoing, infringes proprietary rights of a third party, the Licensee
         shall give written notice thereof to the Licensors. The Licensee may,
         in its sole discretion, modify such Licensed Product to avoid such
         infringement and/or may settle on terms that it deems advisable in its
         sole discretion. Otherwise, the Licensee shall have the right, but not
         the obligation to defend any such claim or suit. Licensee shall NOT
         enter into any settlement, consent judgment or other voluntary final
         disposition of any action under this Section 7.3 that adversely affects
         DFCI without the consent of DFCI, which consent shall not be
         unreasonably withheld, unless, the settlement includes any express or
         implied admission of liability or wrongdoing on DFCI's part, in which
         case DFCI's right to grant or deny consent is absolute and at its sole
         discretion. In the event the Licensee elects not to defend such suit,
         the Licensor shall have the right, but not the obligation to do so at
         its sole expense.

<PAGE>

7.4      Any recovery of damages pursuant to paragraph 7.3 above in any such
         suit, shall be applied first in satisfaction of any unreimbursed
         expenses and legal fees of either party relating to the suit and then
         to Licensor for any royalties credited in accordance with paragraph
         7.5. The balance remaining from any such recovery shall be shared by
         Licensor and the Licensee in accordance with Paragraph 3.1.6 hereof.

7.5      The Licensee may credit up to fifty percent (50%) of any litigation
         costs incurred by the Licensee in any country pursuant to this Article
         7 and up to 50% of all amounts paid in judgment or settlement of
         litigation within this Article 7 scope of against royalties thereafter
         payable to the Licensors hereunder for such country and apply the same
         toward one-half of its actual, reasonable out-of-pocket litigation
         costs. If one-half of such litigation costs in such country exceeds 50%
         of royalties payable to the Licensors in any year in which such costs
         are incurred than the amount of such costs, expenses and amounts paid
         in judgment or settlement, in excess of such 50% of the royalties
         payable shall be carried over and credited against royalty payments in
         future years for such country.

7.6      Action at Request of Licensor. Licensor may request that Licensee to
         take steps to protect the Patent Rights from an apparent infringement.
         Licensee shall notify Licensor, within 90 days of receiving a written
         request from Licensor, of action it intends to take, if any, to compel
         termination of the alleged infringing action or to initiate legal
         proceedings against the alleged infringer.

7.7      Licensor independently has the right to join any legal proceeding
         brought by Licensee under this Section 7and fund up to 50% of the cost
         of the legal proceeding from the date of joining. If Licensor elects to
         join as a party plaintiff pursuant to this paragraph 7.3, Licensor may
         jointly participate in the action with Licensee, but Licensee's counsel
         will be lead counsel.

7.8      If within six (6) months after receiving notice of any alleged
         infringement, the Licensee shall have been unsuccessful in persuading
         the alleged infringer to desist, or shall not have brought and shall
         not be diligently prosecuting an infringement action, or if the
         Licensee shall notify Licensor, at any time prior thereto, of its
         intention not to bring suit against the alleged infringer, then, and in
         those events only, Licensor shall have the right, but not the
         obligation, to prosecute, at its own expense and utilizing counsel of
         its choice, any infringement of the Patent Rights, and Licensor may,
         for such purposes, join the Licensee as a party plaintiff. The total
         cost of any such infringement action commenced solely by Licensor shall
         be borne by Licensor and any amounts paid by third parties shall be
         distributed as described in paragraph 7.4 above.

7.9      SETTLEMENT. Regardless of whether Licensee is joined in any legal
         proceeding initiated by Licensor, no settlement, consent judgment or
         other voluntary final disposition of the legal proceeding may be
         entered into without the consent of Licensor.

7.10     In any suit to enforce and/or defend the Patent Rights pursuant to this
         License Agreement, the party not in control of such suit shall, at the
         request and expense of the controlling party, cooperate in all respects
         and, to the extent possible, have its employees testify when requested
         and make available relevant records, papers, information, samples,
         specimens, and the like.

<PAGE>

                       ARTICLE 8 -- TERM AND TERMINATION

8.1      TERM. Unless terminated earlier under the provisions of this Agreement,
         this Agreement will terminate on the expiration date of the last to
         expire of patents within Patent Rights.

8.2      TERMINATION BY LICENSOR. Licensor has the right to immediately
         terminate this Agreement and all licenses granted hereunder by
         providing Licensee with written notice of termination, upon the
         occurrence of any of the following events:

         8.2.1    Licensee ceases to carry on its business with respect to
                  Licensed Products.

         8.2.2    Licensee fails to pay on schedule any royalty or other payment
                  that has become due and is payable under Articles 3 or 4 of
                  this Agreement and has not cured the default by making the
                  required payment, together with interest due, within 30 days
                  of receiving a written notice of default from Licensor
                  requesting such payment.

         8.2.3    Licensee fails to meet any of the due diligence requirements
                  set forth in Article 5 unless Licensee has cured the default
                  by meeting the obligation within thirty (30) days of receiving
                  written notice of default from Licensor.

         8.2.4    Licensee is convicted of a felony relating to the manufacture,
                  use, sale or importation of Licensed Products.

         8.2.5    Licensee materially breaches any other provision of this
                  Agreement, unless Licensee has cured the breach within 90 days
                  of receiving written notice from Licensor specifying the
                  nature of the breach.

         8.2.6    Licensor shall have the right, at its option, to cancel and
                  terminate this Agreement in the event that Licensee shall (i)
                  become involved in insolvency, dissolution, bankruptcy or
                  receivership proceedings affecting the operation of its
                  business or (ii) make an assignment of all or substantially
                  all of its assets for the benefit of creditors, or in the
                  event that (iii) a receiver or trustee is appointed for
                  Licensee and Licensee shall, after the expiration of thirty
                  (30) days following any of the events enumerated above, have
                  been unable to secure a dismissal, stay or other suspension of
                  such proceedings. In the event of termination of this
                  Agreement, all rights to the Subject Technology shall revert
                  to Licensor.

8.3      TERMINATION BY LICENSEE. Licensee has the right to terminate this
         Agreement without cause by giving Licensor ninety (90) days prior
         written notice.

<PAGE>

8.4      EFFECT OF TERMINATION.

         8.4.1    NO RELEASE. Upon termination of this Agreement for any reason,
                  nothing in this Agreement may be construed to release either
                  Party from any obligation that matured prior to the effective
                  date of the termination.

         8.4.2    SURVIVAL. The provisions of Section 3.1.1 (patent expenses)
                  Article 4 (Royalty Reports, Payments and Financial Records),
                  Section 5.5 (Use of Names; Publicity), paragraph 8.4.3
                  (Inventory), Sections 9 (Indemnification, Defense and
                  Insurance), Article 10 (Warranty Disclaimers) and Article 12
                  (Dispute Resolution) survive termination of this Agreement.

         8.4.3    INVENTORY. Licensee, any Affiliate(s) and any Sublicensees
                  whose sublicenses are not converted as provided in paragraph
                  8.4.4, may, after the effective date of termination, sell all
                  Licensed Products that are in inventory as of the date of
                  written notice of termination, and complete and sell Licensed
                  Products which the licensed entity(ies) can clearly
                  demonstrate were in the process of manufacture as of the date
                  of written notice of termination, provided that Licensee shall
                  pay to Licensor the royalties thereon as required by Article 3
                  and shall submit the reports required by Article 4 on the
                  sales of Licensed Products.

         8.4.4    SUBLICENSES. Any sublicenses will terminate contemporaneously
                  with this Agreement. However, any Sublicensee not in default
                  under its sublicense may request conversion of the sublicense
                  to a license directly between DFCI and Sublicensee. DFCI shall
                  not unreasonably withhold its acceptance of such conversion,
                  however, as a condition of DFCI's acceptance, the Sublicensee
                  must first agree to be bound by all of the provisions of this
                  Agreement.

         8.4.5    INFORMATION. Upon termination of the Agreement under the
                  provisions of Section 8.2, Licensee agrees to provide Licensor
                  with a copy of all data, including such data generated during
                  a clinical trial, produced during the term of this Agreement,
                  and to grant to Licensor the exclusive license to use such
                  data in exchange for a continuing royalty equal to one percent
                  (1%) of Net Sales or other royalty and non-royalty
                  compensation received by Licensor of any Licensed Product that
                  is subsequently sold by Licensor if such termination occurs
                  after the completion of a Phase I clinical trial or two
                  percent (2%) of Net Sales or other royalty and non-royalty
                  compensation received by Licensor of any Licensed Product that
                  is subsequently sold by Licensor if such termination occurs
                  after the initiation of a Phase II clinical trial. Uses may
                  include, but are not limited to, regulatory filings, patent
                  filings and publications.

              ARTICLE 9 -- INDEMNIFICATION, DEFENSE AND INSURANCE

INDEMNIFICATION AND DEFENSE.

9.1      Licensee shall indemnify, defend and hold harmless Licensor and its
         trustees officers, medical and professional staff, employees, and
         agents and their respective successors, heirs and assigns (the
         "Indemnitees"), against any liability, damage, loss or expense
         (including reasonable attorneys' fees and expenses of litigation)
         incurred by or imposed upon the Indemnitees, or any one of them, in
         connection with any claims, suits, actions, demands or judgments (a)
         arising out of the design, production, manufacture, sale, use in
         commerce, lease, or promotion by Licensee or by a Sublicensee,
         Affiliate or agent of Licensee, or any product, process or service
         relating to, or developed pursuant to, this Agreement or (b) arising
         out of any other activities to be carried out pursuant to this
         Agreement.

<PAGE>

9.2      Licensee's indemnification under Section 9.1(a) applies to any
         liability, damage, loss or expense whether or not it is attributable to
         the negligent activities of the Indemnitees. Licensee's indemnification
         under 9.1(b) does not apply to any liability, damage, loss or expense
         to the extent that it is attributable to (a) the negligent activities
         of the Indemnitees, or (b) the intentional wrongdoing or intentional
         misconduct of the Indemnitees.

9.3      If any such action is commenced or claim made or threatened against
         Licensor or other Indemnitees as to which Licensee is obligated to
         indemnify it (them) or hold it (them) harmless, Licensor or the other
         Indemnitees shall promptly notify Licensee of such event. Licensee
         shall assume the defense of, and may settle, that part of any such
         claim or action commenced or made against Licensor (or other
         Indemnitees) which relates to Licensee's indemnification and Licensee
         may take such other steps as may be necessary to protect it. Should it
         become necessary as a result of a conflict of interests for the
         Licensor to obtain separate counsel to represent Licensor in any such
         action, then Licensee, at its sole cost, shall provide counsel
         reasonably acceptable to the Licensor. In all cases, choice of counsel
         shall be reasonably acceptable to Licensor. Licensee will not be liable
         to Licensor or other Indemnitees on account of any settlement of any
         such claim or litigation affected without Licensee's consent. The right
         of Licensee to assume the defense of any action is limited to that part
         of the action commenced against Licensor and/or Indemnitees that
         relates to Licensee's obligation of indemnification and holding
         harmless.

9.4      Licensee shall require any Affiliates or Sublicensee(s) to indemnify,
         hold harmless and defend Licensor under the same terms set forth in
         Sections 9.1 - 9.3.

INSURANCE.

9.5      At such time as any product, process or service relating to, or
         developed pursuant to, this Agreement is being commercially distributed
         or sold (other than for the purpose of obtaining regulatory approvals)
         by Licensee or by a Sublicensee, Affiliate or agent of Licensee,
         Licensee shall, at its sole cost and expense, procure and maintain
         policies of commercial general liability insurance in amounts not less
         than $2,000,000 per incident and $2,000,000 annual aggregate and naming
         the Indemnitees as additional insureds. Such commercial general
         liability insurance must provide (a) product liability coverage and (b)
         contractual liability coverage for Licensee's indemnification under
         Sections 9.1 through 9.3 of this Agreement. If Licensee elects to
         self-insure all or part of the limits described above (including
         deductibles or retentions which are in excess of $250,000 annual
         aggregate), such self-insurance program must be acceptable to the
         Licensor and the Licensor's associated Risk Management Foundation. The
         minimum amounts of insurance coverage required under these provisions
         may not be construed to create a limit of Licensee's liability with
         respect to its indemnification obligation under Sections 9.1 through
         9.3 of this Agreement.

<PAGE>

9.6      Licensee shall provide Licensor with written evidence of such insurance
         upon request of Licensor. Licensee shall provide Licensor with written
         notice at least fifteen (15) days prior to the cancellation,
         non-renewal or material change in such insurance; if Licensee does not
         obtain replacement insurance providing comparable coverage within such
         fifteen (15) day period, Licensor has the right to terminate this
         Agreement effective at the end of such fifteen (15) day period without
         any notice or additional waiting periods.

9.7      Licensee shall maintain such comprehensive general liability insurance
         beyond the expiration or termination of this Agreement during (a) the
         period that any product, process, or service, relating to, or developed
         pursuant to, this Agreement is being commercially distributed or sold
         (other than for the purpose of obtaining regulatory approvals) by
         Licensee or by a Sublicensee, Affiliate or agent of Licensee and (b) a
         reasonable period after the period referred to in 9.7(a) above which in
         no event shall be less than fifteen (15) years.

9.8      Licensee shall require any Affiliates or Sublicensee(s) to maintain
         insurance in favor of Licensor and the Indemnitees under the same terms
         set forth in Sections 9.5 - 9.7.

                     ARTICLE 10 -- DISCLAIMER OF WARRANTIES

10.1     LICENSOR MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
         LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR
         A PARTICULAR PURPOSE WITH RESPECT TO ANY PATENT, TRADEMARK, SOFTWARE,
         NON-PUBLIC OR OTHER INFORMATION, OR TANGIBLE RESEARCH PROPERTY,
         LICENSED OR OTHERWISE PROVIDED TO LICENSEE HEREUNDER AND HEREBY
         DISCLAIMS THE SAME.

10.2     LICENSOR DOES NOT WARRANT THE VALIDITY OF THE PATENT RIGHTS LICENSED
         HEREUNDER AND MAKES NO REPRESENTATION WHATSOEVER WITH REGARD TO THE
         SCOPE OF THE LICENSED PATENT RIGHTS OR THAT SUCH PATENT RIGHTS MAY BE
         EXPLOITED BY LICENSEE, AFFILIATE OR SUBLICENSEE WITHOUT INFRINGING
         OTHER PATENTS.

10.3     THE LIABILITY OF LICENSOR THEIR AGENTS, OR THEIR EMPLOYEES, WITH
         RESPECT TO ANY AND ALL SUITS, ACTIONS, LEGAL PROCEEDINGS, CLAIMS,
         DEMANDS, DAMAGES, COSTS AND EXPENSE ARISING OUT OF THE PERFORMANCE OR
         NON PERFORMANCE OF ANY OBLIGATION UNDER THIS AGREEMENT WHETHER BASED ON
         CONTRACT, WARRANTY, TORT (INCLUDING WITHOUT LIMITATION NEGLIGENCE),
         STRICT LIABILITY, STATUTORY OR OTHERWISE SHALL BE LIMITED TO DIRECT,
         ACTUAL DAMAGES INCURRED AS A RESULT OF LICENSOR'S FAILURE TO PERFORM
         ITS OBLIGATIONS AS REQUIRED BY THIS AGREEMENT AND SHALL NOT EXCEED IN
         THE AGGREGATE A SUM EQUAL TO THE TOTAL AMOUNTS PAYABLE TO LICENSOR
         UNDER THIS AGREEMENT.

<PAGE>

                             ARTICLE 11 -- NOTICES

11.1     NOTICES TO LICENSOR. Unless otherwise specified in this Agreement,
         reports, notices and other communications from Licensee to Licensor as
         provided hereunder must be sent to:

         Sr. Vice President for Research
         Dana-Farber Cancer Institute
         44 Binney Street
         Boston, MA 02115

A copy of the notice must also be sent to:

         Vice President,
         Office of Research & Venture Technology
         Dana-Farber Cancer Institute
         44 Binney Street
         Boston, MA 02115

or other individuals or addresses as Licensor subsequently furnish by written
notice to Licensee.

11.2     NOTICES TO LICENSEE. Unless otherwise specified in this Agreement,
         reports, notices and other communications from Licensor to Licensee as
         provided hereunder must be sent to:

or other individuals or addresses as Licensee may subsequently furnish by
written notice to Licensor.

                        ARTICLE 12 -- DISPUTE RESOLUTION

12.1     NEGOTIATION BETWEEN THE PARTIES. The parties shall first attempt to
         resolve any controversy that arises from this Agreement, or claim for
         breach of the Agreement, by good faith negotiations, first between
         their respective business development representatives and then, if
         necessary, between senior representatives for the parties, such as the
         Sr. Vice President for Research or President of Licensor and the
         President of Licensee.

<PAGE>

12.2     Any dispute arising from or relating to this Agreement shall be
         determined before a tribunal of three arbitrators in Boston,
         Massachusetts in accordance with the rules of the American Arbitration
         Association. One arbitrator shall be selected by the Licensors, one
         arbitrator shall be selected by the Licensee and the third arbitrator
         shall be selected by mutual agreement of the first two arbitrators.

12.3     Any claim, dispute, or controversy concerning the validity,
         enforceability, or infringement of any patent contained in the Patent
         Rights licensed hereunder shall be resolved in any court having
         jurisdiction thereof.

12.4     In the event that, in any arbitration proceeding, any issue shall arise
         concerning the validity, enforceability, or infringement of any patent
         contained in the Patent Rights licensed hereunder, the arbitrators
         shall, to the extent possible, resolve all issues other than validity,
         enforceability, and infringement; in any event, the arbitrators shall
         not delay the arbitration proceeding for the purpose of obtaining or
         permitting either party to obtain judicial resolution of such issues,
         unless an order staying the arbitration proceeding shall be entered by
         a court of competent jurisdiction. Neither party shall raise any issue
         concerning the validity, enforceability, or infringement of any patent
         contained in the Patent Rights licensed hereunder, in any proceeding to
         enforce any arbitration award hereunder, or in any proceeding otherwise
         arising out of any such arbitration award.

12.5     The costs of such arbitration shall be borne proportionate to the
         finding of fault as determined by the Arbitrator. Judgment on the
         arbitration award may be entered by any court of competent
         jurisdiction.

                         ARTICLE 13 -- CONFIDENTIALITY

13.1     Except as otherwise provided in Paragraph 13.2 below, during the Term
         of this Agreement and for a period of five (5) years from the Effective
         Date of this Agreement, Licensee agrees to use reasonable efforts not
         to disclose to third parties any Confidential Information of Licensor.
         Licensee shall restrict the dissemination of Licensor's Confidential
         Information to employees, agents, or collaborators involved with the
         research based on the need to know for the performance of research.

13.2     Information received from Licensor hereto shall not be deemed
         Confidential Information, and Licensee will have no obligation with
         respect to such information:

         13.2.1   which, as of the effective date of this Agreement, is part of
                  the public domain;

         13.2.2   which subsequently becomes part of the public domain through
                  no fault of the Licensee;

         13.2.3   which the Licensee can show was in its possession, as
                  evidenced by written records kept in the ordinary course of
                  business or by the proof of actual use at the time of
                  executing this Agreement, and which information had not been
                  wrongfully acquired, directly or indirectly, from the
                  Licensor;

<PAGE>

         13.2.4   which is subsequently disclosed to the Licensee by a third
                  party not in violation of any right of, or obligation to, the
                  Licensor hereto; or

         13.2.5   is required to be disclosed by operation of law, provided that
                  the Licensor has received advanced notice of the proposed
                  disclosure by the Licensee;

         13.2.6   Except by the Licensor's express written approval that
                  Confidential Information can be released from obligations of
                  confidentiality

                      ARTICLE 14 -- INDEPENDENT CONTRACTOR

For the purpose of this Agreement and all services to be provided hereunder,
both parties are and will be deemed to be, independent contractors and not
agents or employees of the other. Neither party has authority to make any
statements, representations or commitments of any kind, or to take any action,
that will be binding on the other party.

                           ARTICLE 15 -- SEVERABILITY

If any one or more of the provisions of this Agreement is held to be invalid,
illegal or unenforceable, the validity, legality or enforceability of the
remaining provisions of this Agreement will not in any way be affected or
impaired thereby.

                            ARTICLE 16 -- ASSIGNMENT

This Agreement and the rights and duties appertaining hereto may not be assigned
by either party without first obtaining the written consent of the other which
consent shall not be unreasonably withheld. Any such purported assignment,
without the written consent of the other party, shall be null and of no effect.
Notwithstanding the foregoing, the Licensee may assign this Agreement (i) to a
purchaser, merging or consolidating corporation, or acquirer of substantially
all of the Licensee's assets or business and/or pursuant to any reorganization
qualifying under section 368 of the Internal Revenue Code of 1986 as amended, as
may be in effect at such time, or (ii) to an Affiliate of the Licensee.

                         ARTICLE 17 -- ENTIRE AGREEMENT

This instrument contains the entire Agreement between the parties. No verbal
agreement, conversation or representation between any officers, agents, or
employees of the parties either before or after the execution of this Agreement
may affect or modify any of the terms or obligations herein contained.

<PAGE>

                     ARTICLE 18 -- MODIFICATIONS IN WRITING

No change, modification, extension, or waiver of this Agreement, or any of the
provisions herein contained is valid unless made in writing and signed by a duly
authorized representative of each party.

                          ARTICLE 19 -- GOVERNING LAW

The validity and interpretation of this Agreement and the legal relations of the
parties to it are governed by the laws of the State of Massachusetts without
regard to any choice of law principal that would dictate the application of the
law of another jurisdiction.

                             ARTICLE 20 -- CAPTIONS

The captions are provided for convenience and are not to be used in construing
this Agreement.

                           ARTICLE 21 -- CONSTRUCTION

The parties agree that they have participated equally in the formation of this
Agreement and that the language herein should not be presumptively construed
against either of them.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed in quadruplicate by their duly authorized representatives as of the
date first above written.

DANA-FARBER CANCER INSTITUTE, INC.           HUDSON HEALTH SCIENCES, INC.

By:      /s/ Anthony A. Del Campo            By:      /s/ Michael Weiser
         -----------------------------                --------------------------

Title:   Vice President                      Title:   President
         -----------------------------                --------------------------

Date:    December 19, 2002                   Date:    December 19, 2002
         -----------------------------                --------------------------

ASH STEVENS, INC.

By:       /s/  [signature illegible]
          ----------------------------

Title:   President and CEO
         ----------------------------

Date:    December 16, 2002
         ----------------------------

<PAGE>

                                   SCHEDULE 1

                                  Patent Rights

1.       United States Patent No. 4,767,761 (DFCI #111) entitled "Ornithine
         Derivatives and their Use as Methotrexate Resistant Cell Inhibitors.

2.       United States Provisional Patent Application, Serial No. 60/376,615,
         (DFCI #774) entitled "Pharmaceutically Active Ornithine Derivatives,
         Ammonium Salts Thereof and Methods of Making Same" filed April 30,
         2002.EXHIBIT 10.4

THIS LICENSE AGREEMENT NOT VALID UNTIL EXECUTION COPIES HAVE BEEN SIGNED BY ALL
PARTIES.

                           EXCLUSIVE LICENSE AGREEMENT

      THIS AGREEMENT (the "Agreement") by and between YALE UNIVERSITY, a
corporation organized and existing under and by virtue of a charter granted by
the general assembly of the Colony and State of Connecticut and located in New
Haven, Connecticut ("YALE"), The Research Foundation of State University of New
York, on behalf of University at Buffalo, a nonprofit, educational corporation
organized and existing under the laws of the State of New York ("FOUNDATION")
and Hudson Health Sciences, Inc. a corporation organized and existing under the
laws of the State of DELAWARE, and with principal offices located at 400 Oyster
Point Boulevard, Suite 215, South San Francisco, CA 94080 ("LICENSEE") is
effective as of February, 4, 2004 ("EFFECTIVE DATE").

                              ARTICLE 1 BACKGROUND

      1.1. In the course of research conducted under the auspices of Yale
University, and, previously and separately, under auspices of FOUNDATION (the
"INSTITUTIONS"), Yung-Chi Cheng and Chien-Neng Chang in the Department of
Pharmacology at Yale and Thomas J. Bardos, Yung-Chi Cheng, Alan C. Schroeder,
and Simon M. N. Efange at SUNY Buffalo (the "INVENTORS"), have produced
inventions entitled "Therapeutic Use of IPDR" and "5-Ioso 2-Pyrimidinone
Nucleoside", respectively.

      1.2. YALE has been granted the exclusive right and responsibility for
negotiating, arranging, and managing licenses for the mutual benefit of
FOUNDATION and YALE pursuant to an agreement between FOUNDATION and YALE dated
as of February 4, 2004.

      1.3. INSTITUTIONS wish to have the INVENTIONS and any resulting patents
commercialized to benefit the public good.

      1.4. LICENSEE has represented to INSTITUTIONS to induce INSTITUTIONS to
enter into this Agreement that it shall act diligently to develop and
commercialize the LICENSED PRODUCTS for public use throughout the LICENSED
TERRITORY (as defined below).

      1.5. INSTITUTIONS are willing to grant a license to LICENSEE, subject to
the terms and conditions of this Agreement.

      1.6. In consideration of these statements and mutual promises,
INSTITUTIONS and LICENSEE agree to the terms of this Agreement.

                             ARTICLE 2 DEFINITIONS

The following terms used in this Agreement shall be defined as set forth below:
<PAGE>

      2.1. "AFFILIATE" shall mean any entity or person that directly or
indirectly controls, is controlled by or is under common control with LICENSEE.
For purposes of this definition, "control" means possession of the power to
direct the management of such entity or person, whether through ownership of
more than fifty percent (50%) of voting securities, by contract or otherwise.

      2.2. "ANTIDILUTION PROTECTION" shall mean that in the event that price per
share of LICENCEE's adjusted common stock value fails to exceed FAIR MARKET
VALUE in any subsequent financing, LICENSEE shall issue to INSTITUTIONS
additional shares in such amount so that INSTITUTIONS shall maintain an implied
monetary interest in LICENSEE, based on valuation at the time of such subsequent
financing, of not less than the value of INSTITUTION's shares or options upon
date of grant.

      2.3 "CONFIDENTIAL INFORMATION" shall mean all information disclosed by one
party to the other during the negotiation of or under this Agreement in any
manner, whether orally, visually or in tangible form, that relates to LICENSED
PATENTS or the Agreement itself, unless such information is subject to an
exception described in Article 8.2; provided, however, that CONFIDENTIAL
INFORMATION that is disclosed in tangible form shall be marked "Confidential" at
the time of disclosure and CONFIDENTIAL INFORMATION that is disclosed orally or
visually shall be identified as confidential at the time of disclosure and
subsequently reduced to writing, marked confidential and delivered to the other
party within thirty (30) days of such disclosure. CONFIDENTIAL INFORMATION shall
include, without limitation, materials, know-how and data, technical or
non-technical, trade secrets, inventions, methods and processes, whether or not
patentable. Notwithstanding any other provisions of this Article 2.2,
CONFIDENTIAL INFORMATION of LICENSEE that is subject to Article 8 of this
Agreement is limited to information that LICENSEE supplies pursuant to
LICENSEE's obligations under Articles 7 and 9 of this Agreement, unless
otherwise mutually agreed to in writing by the parties.

      2.4 "EARNED ROYALTY" is defined in Article 6.1.

      2.5 "EFFECTIVE DATE" is defined in the introductory paragraph of this
Agreement.

      2.6 `FAIR MARKET VALUE" shall mean $2.37 per share of common stock at
4,000,000 shares outstanding on the EFFECTIVE DATE of the license; or for
subsequent stock grant shall mean the last sale price of the Common Stock on the
trading day on which the value is being determined or, in case no such reported
sales take place on such day, the average of the last reported bid and asked
prices of the Common Stock on such day, in either case on the principal national
securities exchange on which the Common Stock is admitted to trading or listed,
or if not listed or admitted to trading on any such exchange, the representative
closing sale price of the Common Stock as reported by the National Association
of Securities Dealers, Inc. Automated Quotations System ("NASDAQ"), or other
similar organization if NASDAQ is no longer reporting such information, or, if
the Common Stock is not reported on NASDAQ, the high per share sale price for
the Common Stock in the over-the-counter market as reported by the National
Quotation Bureau or similar organization, or if not so available, the fair
market value of the Common Stock as determined by the price per share in the
most recent private financing round wherein (i) the total shares in the
financing represent no less than five percent (5%) of the equity after the
financing, (ii) greater than fifty percent (50%) of the shares were purchased by
parties

                                      -2-
<PAGE>

unaffiliated with Company management or directors, and (iii) the transaction was
not connected to any business agreement between an investing party or parties
and the Company.

      2.7 "FIELD" shall mean all uses.

      2.8 "FIRST SALE" shall mean the first sale to a third party of any
LICENSED PRODUCT or LICENSED METHOD in any country.

      2.9 "IND" shall mean an investigational new drug application filed with
the United States Food and Drug Administration prior to beginning clinical
trials in humans in the United States or any comparable application filed with
regulatory authorities in or for a country or group of countries other than the
United States

      2.10 "INVENTIONS" are IPdR composition, as covered by United States Patent
4,895,937 entitled "5-Ioso 2-Pyrimidinone Nucleoside", and use for the treatment
of cancers as covered by a United States Patent 5,728,684 and related pending or
issued foreign applications, together with any continuations,
continuations-in-part, and any divisional, or substitute patents, any reissues
or re-examinations of any such applications or patents, and any extension of the
term of any such patent

      2.11 "INVENTORS" are defined in Article 1.1

      2.12 "INSOLVENT" shall have the meaning ascribed to such term in the
United States Federal Bankruptcy Law, as amended from time to time, or has
commenced bankruptcy, reorganization or insolvency proceedings, or any other
proceeding under any federal, state or other law for the relief of debtors.

      2.13 "LICENSE" refers to the license granted under Article 3.1.

      2.14 "LICENSED METHODS" shall mean any method, procedure, service or
process the practice of which, in the absence of a license from INSTITUTIONS,
would infringe a VALID CLAIM of a LICENSED PATENT or which uses a LICENSED
PRODUCT.

      2.15 "LICENSED PATENTS" shall mean the United States or foreign patent
application(s) and patents(s) listed in Appendix A and owned by INSTITUTIONS or
FOUNDATION during the term of this Agreement, together with any continuations,
divisionals, and continuations-in-part, to the extent the claims of any such
patent or patent application are directed to subject matter specifically
described in the patent applications listed on Appendix A; any reissues,
re-examinations, or extensions thereof, or substitutes therefor; and the
relevant international equivalents of any of the foregoing. Appendix A is
incorporated into this Agreement.

      2.16 "LICENSED PRODUCTS" shall mean any product (including any apparatus
or kit) or component part thereof, the manufacture, use or sale of which, in the
absence of a license from INSTITUTIONS, would infringe a VALID CLAIM of a
LICENSED PATENT.

      2.17 "LICENSED TERRITORY" shall mean worldwide.

                                      -3-
<PAGE>

      2.18 "NDA" shall mean a new drug application filed with the United States
Food and Drug Administration to obtain marketing approval for a LICENSED PRODUCT
in the United States or any comparable application filed with a regulatory
authority in or for a country or group of countries other than the United
States.

      2.19 "NET SALES" shall mean:

            (a) gross invoice price from the sale, lease or other transfer or
disposition of the LICENSED PRODUCTS or LICENSED METHODS, or from services
performed using LICENSED PRODUCTS or LICENSED METHODS, by LICENSEE, SUBLICENSEES
or AFFILIATES to third parties, except as set forth in Article 2.16(b), less the
following deductions, provided they actually pertain to the disposition of the
LICENSED PRODUCTS or LICENSED METHODS and are separately invoiced:

            (i) all discounts, credits and allowances on account of returns;

            (ii) transportation and insurance; and

            (iii) duties, taxes and other governmental charges levied on the
      sale, transportation or delivery of LICENSED PRODUCTS or practice of the
      LICENSED METHODS, but not including income taxes.

No deductions shall be made for any other costs or expenses, including but not
limited to commissions to independents, agents or those on LICENSEE's,
SUBLICENSEE's or an AFFILIATE's payroll or for the cost of collection.

            (b) "NET SALES" shall not include the gross invoice price for
LICENSED PRODUCTS or LICENSED METHODS sold to, or services performed using
LICENSED PRODUCTS or LICENSED METHODS for, any AFFILIATE unless such AFFILIATE
is an end-user of any LICENSED PRODUCT or LICENSED METHOD, in which case such
consideration shall be included in NET SALES at the average selling price
charged to a third party during the same quarter.

      2.20 "REASONABLE COMMERCIAL EFFORTS" shall mean documented efforts that
are consistent with those utilized by companies of similar size and type that
have successfully developed products and services similar to LICENSED PRODUCTS
and LICENSED METHODS.

      2.21 "SUBLICENSE INCOME" shall mean consideration in any form received by
LICENSEE or an AFFILIATE in connection with a grant to any third party or
parties of a sublicense or other right, license, privilege or immunity to make,
have made, use, sell, have sold, distribute, import or export LICENSED PRODUCTS
or to practice LICENSED METHODS, but excluding consideration included within NET
SALES. SUBLICENSE INCOME shall include without limitation any license signing
fee, license maintenance fee, unearned portion of any minimum royalty payment
received by LICENSEE, equity, distribution or joint marketing fee, research and
development funding in excess of LICENSEE's cost of performing such research and
development, and any consideration received for an equity interest in, extension
of credit to or other investment in LICENSEE to the extent such consideration
exceeds the fair market value

                                      -4-
<PAGE>

of the equity or other interest received as determined by agreement of the
parties or by an independent appraiser mutually agreeable to the parties.

      2.22 "SUBLICENSEE" shall mean any third party sublicensed by LICENSEE to
make, have made, use, sell, have sold, import or export any LICENSED PRODUCT or
to practice any LICENSED METHOD.

      2.23 "TERM" is defined in Article 3.4.

      2.24 "VALID CLAIM" shall mean a pending, issued or unexpired claim of a
LICENSED PATENT so long as such claim shall not have been irrevocably abandoned
or declared to be invalid in an unappealable decision of a court or other
authority or competent jurisdiction through no fault of cause of LICENSEE.

      2.25 "ACADEMIC RESEARCH PURPOSES" shall mean use of a LICENSED PRODUCT or
a LICENSED METHOD for academic research or other not-for-profit scholarly
purposes which are undertaken at An academic, non-profit, or governmental
institution and that does not use a LICENSED PRODUCT or a LICENSED METHOD in the
production or manufacture of products for sale or the performance of services
for a fee.

                        ARTICLE 3 LICENSE GRANT AND TERM

      3.1. Subject to all the terms and conditions of this Agreement,
INSTITUTIONS hereby grants to LICENSEE an exclusive license, under the LICENSED
PATENTS, with the right to grant sublicenses, to make, have made, use, sell,
have sold, import or export LICENSED PRODUCTS, and to practice any LICENSED
METHOD, within the FIELD in the LICENSED TERRITORY (the "LICENSE").

      3.2. To the extent that any invention included within the LICENSED PATENTS
has been funded in whole or in part by the United States government, the United
States government retains certain rights in such invention as set forth in 35
U.S.C. ss.200-212 and all regulations promulgated thereunder, as amended, and
any successor statutes and regulations (the "Federal Patent Policy"). As a
condition of the license granted hereby, LICENSEE acknowledges and shall comply
with all aspects of the Federal Patent Policy applicable to the LICENSED
PATENTS, including the obligation that LICENSED PRODUCTS used or sold in the
United States be manufactured substantially in the United States. Nothing
contained in this Agreement obligates or shall obligate INSTITUTIONS to take any
action that would conflict in any respect with its past, current or future
obligations to the United States Government under the Federal Patent Policy with
respect to the LICENSED PATENTS.

      3.3. The LICENSE is expressly made subject to INSTITUTIONS's reservation
of the right to make, use and practice the LICENSED PATENTS and LICENSED METHODS
for ACADEMIC RESEARCH PURPOSES. Nothing in this Agreement shall be construed to
grant by implication, estoppel or otherwise any licenses under patents of
INSTITUTIONS other than the LICENSED PATENTS.

                                      -5-
<PAGE>

      3.4. Unless terminated earlier as provided in Article 13, the term of this
Agreement (the "TERM") shall commence on the EFFECTIVE DATE and shall
automatically expire, on a country-by-country basis, on the date on which the
last of the claims of the patents described in the LICENSED PATENTS in such
country expires, lapses or is declared to be invalid by a non-appealable
decision of a court or other authority of competent jurisdiction through no
fault or cause of LICENSEE.

      3.5. Except as expressly provided in this Agreement, under no
circumstances will LICENSEE, as a result of this Agreement, obtain any interest
in or any other right to any technology, know-how, patents, patent applications,
materials or other intellectual or proprietary property of INSTITUTIONS.

      3.6 To the YALE--Office of Cooperative Researchs' knowledge and belief,
the INSTITUTIONS have all right, title, and interest in and to the LICENSED
PATENTS, including exclusive, absolute, irrevocable right, title and interest
thereto, free and clear of all liens, charges, encumbrances or other
restrictions or limitations of any kind whatsoever and to the YALE Office of
Cooperative Researchs' knowledge and belief there are no licenses, options,
restrictions, liens, rights of third parties, disputes, royalty obligations,
proceedings or claims relating to, affecting, or limiting its rights or the
rights of the LICENSEE under this Agreement with respect to, or which may lead
to a claim of infringement or invalidity regarding, any part or all of the
LICENSED PATENTS and their use as contemplated in the underlying patent
applications as presently drafted.

      3.7 To the YALE Office of Cooperative Research's knowledge and belief
there is no claim, pending or threatened, of infringement, interference or
invalidity regarding, any part or all of the LICENSED PATENTS and their use as
contemplated in the underlying patent applications as presently drafted. In the
event that the INSTITUTIONS become knowledgeable of material information,
INSTITUTIONS shall inform LICENSEE promptly.

                             ARTICLE 4 SUBLICENSES

      4.1. INSTITUTIONS hereby grants to LICENSEE the right to sublicense its
right to make, have made, use, sell, have sold, import or export LICENSED
PRODUCTS and to practice any LICENSED METHOD, within the FIELD in the LICENSED
TERRITORY provided this Agreement is in effect and LICENSEE is not in breach of
its obligations hereunder.

      4.2. Any sublicense granted by LICENSEE shall include substantially the
same Definitions and provisions on Due Diligence, Confidentiality and Publicity,
Reporting Requirements, Indemnification, Insurance and Warranties, Patent
Notices and Use of INSTITUTIONS' Name, as are agreed to in this Agreement, and
such other provisions as are needed to enable LICENSEE to comply with this
Agreement. LICENSEE will provide INSTITUTIONS with a copy of each Sublicense
Agreement promptly after execution. A breach of this provision shall constitute
a material breach that is subject to Article 13.5(b).

      4.3. LICENSEE may determine royalty rates payable by SUBLICENSEES in its
discretion; however, LICENSEE shall pay royalties to INSTITUTIONS on NET SALES
of SUBLICENSEES based on the same royalty rate as apply to NET SALES by LICENSEE
and its

                                      -6-
<PAGE>

AFFILIATES. In addition, LICENSEE shall pay to INSTITUTIONS a percentage of any
SUBLICENSE INCOME per the following schedule, wherein "ex US" shall mean any
country outside of the United States:

Calendar Year of        Percentage Payable      Percentage Payable
Sublicensing Income     to INSTITUTIONS         to INSTITUTIONS ex US
-------------------     ---------------         ---------------------
     2004               Forty percent (40%)     Twenty percent (20%)
     2005               Thirty percent (30%)    Fifteen percent (15%)
     2006               Twenty percent (20%)    Ten percent (10%)
     2007               Fifteen percent (15%)   Seven and a half percent (7.5%)
     2008               Ten percent (10%)       Five percent (5%)
2009 and beyond         Five percent (5%)       Two and a half percent (2.5%)

      4.4. LICENSEE agrees that it has sole responsibility to promptly :

            (a) provide INSTITUTIONS with a copy of each sublicense granted by
LICENSEE under this Agreement and any amendments to such sublicense and to
notify INSTITUTIONS of termination of any sublicense; and

            (b) summarize and deliver to INSTITUTIONS copies of all reports
provided to LICENSEE by SUBLICENSEES.

     ARTICLE 5 MILESTONE PAYMENTS, MAINTENANCE FEES AND OTHER CONSIDERATION

      5.1. In consideration for initiation of the license granted hereunder, on
the Effective Date, the LICENSEE agrees to: (i) pay to INSTITUTIONS One Hundred
Thousand Dollars ($100,000); (ii) issue to INSTITUTIONS ten (10) year
fully-vested options (the "OPTIONS") to one hundred thousand (100,000) shares of
common stock of the Company (the "COMMON STOCK") at an exercise price equal to
one dollar and forty three cents ($1.43) per share (a form of such agreement
(the "OPTION AGREEMENT") is attached as Appendix B hereto); INSTITUTIONS and
LICENSEE agree to execute such other documents and to provide such additional
information as may be required by law to issue the OPTIONS in accordance with
the terms of this Agreement. The OPTIONS shall be entitled to receive
ANTIDILUTION PROTECTION and shall have rights and preferences that are no less
than any other stock or options issued by the Company either prior to the
EFFECTIVE DATE or within twelve (12) months of the EFFECTIVE DATE

            (a) INSTITUTIONS shall have the right to participate, on a pro rata
basis, in any sales of shares by existing shareholders in subsequent financings.

            (b) The Company agrees that if, at any time, and from time to time,
after the earlier to occur of (i) the date of the initial public offering of the
Common Stock (the "IPO") or (ii) the first date (the "Trading Date") on which
the Common Stock (or securities received in exchange for Common Stock) trades on
a national securities exchange or on the NASDAQ (a "Trading

                                      -7-
<PAGE>

Event"), the Board of Directors of the Company (the "Board") shall authorize the
filing of a registration statement under the Securities Act (other than the
initial public offering of the Company's Common Stock or a registration
statement on Form S-8, Form S-4 or any other form that does not include
substantially the same information as would be required in a form for the
general registration of securities) in connection with the proposed offer of any
of its securities by it or any of its stockholders, the Company shall: (A)
promptly notify the INSTITUTIONS and INVENTORS that such registration statement
will be filed (i) so that INSTITUTIONS may exercise their OPTIONS should they
choose to do so at that time, and (ii) that the shares held by the INSTITUTIONS
(including those received pursuant to the exercise of OPTIONS at that time) will
be included in such registration statement at INSTITUTIONS' request; (B) cause
such registration statement to cover all of such shares owned by the
INSTITUTIONS for which the INSTITUTIONS requests inclusion; (C) use best efforts
to cause such registration statement to become effective as soon as practicable;
and (D) take all other reasonable action necessary under any Federal or state
law or regulation of any governmental authority to permit all such shares that
have been issued to the INSTITUTIONS to be sold or otherwise disposed of, and
will maintain such compliance with each such Federal and state law and
regulation of any governmental authority for the period necessary for such
INSTITUTION to promptly effect the proposed sale or other disposition.

            (c) Any COMMON STOCK or OPTIONS to be issued pursuant to the terms
of this Agreement shall also be issued in accordance with the directions of
INSTITUTIONS so that INSTITUTIONS may comply with INSTITUTIONS' royalty sharing
policies, including direct issuance of certain of the COMMON STOCK and OPTIONS
to the INVENTORS. Rights provided to INSTITUTIONS hereunder due to their
ownership of COMMON STOCK and OPTIONS shall also apply to COMMON STOCK and
OPTIONS received by INVENTORS hereunder (including without limitation the right
to receive notice pursuant to Section 5.1(b) of this Agreement.

            (d) COMPANY is duly authorized to enter into this Agreement and to
issue the COMMON STOCK and OPTIONS as outlined herein, and has procured any and
all necessary approvals in connection therewith. Upon COMPANY'S execution of the
Agreement and any OPTION AGREEMENTS issued pursuant to the Agreement, such
agreements shall constitute legal, valid, binding and enforceable obligations of
the COMPANY.

      5.2. LICENSEE shall pay to YALE an estimated $15,000 for YALE's
unreimbursed past patent expenses within 90 days of the Effective Date.

      5.3. During the TERM of this Agreement, LICENSEE agrees to pay to
INSTITUTIONS an annual license maintenance fee of Twenty Five Thousand Dollars
($25,000.00) commencing on the first anniversary of the EFFECTIVE DATE and every
anniversary thereafter until LICENSEE starts to pay Minimum Royalty Payments
under Article 6 hereunder.

      5.4. LICENSEE shall pay the following non-refundable milestone payments to
INSTITUTIONS for each LICENSED PRODUCT developed by LICENSEE:

                                      -8-
<PAGE>

            (a) Two Hundred Fifty Thousand Dollars ($250,000.00) upon the
demonstration of efficacy in a Phase IIb clinical trial for a LICENSED PRODUCT;
and

            (b) Two Hundred Fifty Thousand Dollars ($250,000.00) following
receipt by the LICENSEE of an approvable letter from the United States Food and
Drug Administration ("FDA") for the first NDA filed by the Company for a
LICENSED PRODUCT.

            Solely with respect to the milestone payment described in 5.3(a),
the LICENSEE shall pay INSTITUTIONS a minimum of One Hundred Thousand ($100,000)
in cash. The LICENSEE may, in its sole discretion, determine to satisfy the
balance of such milestone payment through the issuance to INSTITUTIONS of shares
of COMMON STOCK at the then current FAIR MARKET VALUE of the COMMON STOCK. Any
shares issued pursuant to this Section 5.3 shall be entitled to ANTIDILUTION
PROTECTION.

      5.5. Neither the license issue maintenance fee set forth in Article 5.2
nor the milestone payments set forth in Article 5.3 shall be credited against
EARNED ROYALTIES payable under Article 6.

      5.6. As partial consideration for the license granted herein, LICENSEE
-agrees to enter into a research agreement within 60 days of the EFFECTIVE DATE
under which LICENSEE will fund research by - Yung-Chi Cheng at YALE related to
the INVENTIONS, which funding shall be in the minimum amount of eighty one
thousand dollars ($81,000) for a period of two years from the effective date of
such research agreement, subject to approval of a research plan by Dr. Cheng and
YALE.

              ARTICLE 6 EARNED ROYALTIES; MINIMUM ROYALTY PAYMENTS

      6.1. During the TERM of this Agreement, as partial consideration for the
LICENSE, LICENSEE shall pay to INSTITUTIONS an earned royalty on worldwide
cumulative NET SALES of LICENSED PRODUCTS or LICENSED METHODS by LICENSEE or its
SUBLICENSEES or AFFILIATES of three percent (3%) in each calendar year ("EARNED
ROYALTIES").

      6.2. Minimum Royalty Payments. LICNESEE shall pay make minimum royalty
payments creditable to royalties from sales in the following amounts:

                      Calendar Year         Minimum Royalty Payment
                      -------------         -----------------------
                         2012                     $  200,000
                         2013                     $  500,000
                         2014                     $1,000,000
                         2015                     $  500,000

      6.3. LICENSEE shall pay all EARNED ROYALTIES accruing to INSTITUTIONS
within forty five (45) days from the end of each calendar quarter (March 31,
June 30, September 30 and December 31), beginning in the first calendar quarter
in which NET SALES occur.

      6.4. All EARNED ROYALTIES and other payments due under this Agreement
shall be paid to INSTITUTIONS in United States Dollars. In the event that
conversion from foreign

                                      -9-
<PAGE>

currency is required in calculating a payment under this Agreement, the exchange
rate used shall be the Interbank rate quoted by Citibank at the end of the last
business day of the quarter in which the royalty was earned. If overdue, the
royalties and any other payments due under this Agreement shall bear interest
until payment at a per annum rate two percent (2%) above the prime rate in
effect at Citibank on the due date and INSTITUTIONS shall be entitled to recover
reasonable attorneys' fees and costs related to the administration or
enforcement of this Agreement, including collection of royalties or other
payments, following such failure to pay. The payment of such interest shall not
foreclose INSTITUTIONS from exercising any other right it may have as a
consequence of the failure of LICENSEE to make any payment when due.

                            ARTICLE 7 DUE DILIGENCE

      7.1. LICENSEE has designed a plan for developing and commercializing the
LICENSED PATENTS that includes a description of research and development,
testing, government approval, manufacturing, marketing and sale or lease of
LICENSED PRODUCTS and/or LICENSED METHODS ("PLAN"). A copy of the PLAN is
attached to this Agreement as Appendix C and incorporated herein by reference.

      7.2 LICENSEE shall use all REASONABLE COMMERCIAL EFFORTS, after the
EFFECTIVE DATE of this Agreement, to begin to implement the PLAN at its sole
expense and thereafter to diligently commercialize and develop markets for the
LICENSED PRODUCTS and LICENSED METHODS. In addition, the LICENSEE agrees as
follows:

            (a) Within 90 days of the EFFECTIVE DATE, LICENSEE shall have a cash
      balance in its account of no less than $1,000,000.00;

            (b) LICENSEE shall initiate a Phase I clinical trial within 24
      months of the EFFECTIVE DATE;

            (c) LICENSEE shall initiate a Phase II clinical trial within 18
      months of completion of a successful Phase I clinical trial; and

            (d) LICENSEE shall file an NDA for regulatory approval in the United
      States within seven (7) years of the execution date of this Agreement.

      7.3 Within thirty (30) days of each anniversary of the EFFECTIVE DATE of
this Agreement, LICENSEE shall provide a written report to INSTITUTIONS,
indicating LICENSEE's progress and problems to date in performance under the
PLAN, commercialization of LICENSED PRODUCTS and LICENSED METHODS, and an
updated copy of the PLAN that includes a forecast and schedule of major events
required to market the LICENSED PRODUCTS. The updated PLAN shall be consistent
with those utilized by companies of similar size and type that have successfully
developed products and services similar to LICENSED PRODUCTS and LICENSED
METHODS.

      7.4 If at any time LICENSEE abandons or suspends its research, development
or marketing of the LICENSED PRODUCTS and or LICENSED METHODS, or its intent to
research, develop and market such products or methods, or otherwise fails to
comply with its due

                                      -10-
<PAGE>

diligence obligations under this Article for a period exceeding ninety (90)
days, LICENSEE shall immediately notify INSTITUTIONS giving reasons and a
statement of its intended actions.

      7.5 LICENSEE agrees that INSTITUTIONS shall be entitled to terminate this
Agreement pursuant to Article 13.1(b) if: (a) LICENSEE shall fail to receive
written approval of the PLAN as defined in Article 7.1 or Article 7.2; or (b)
LICENSEE shall fail to implement the PLAN in accordance with this Article, and
(c) LICENSEE shall fail to incur direct expenditures toward the development and
commercialization of a LICENSED PRODUCT or LICENSED METHOD per the following
schedule:

                   Calendar Year                      Amount
                   -------------                      ------

                        2005                       $500,000.00
                        2006                       $500,000.00
                        2007                      $1,000,000.00
                        2008                      $1,500,000.00
                        2009                      $2,000,000.00
                        2010                      $2,000,000.00
                        2011                       $500,000.00
                        2012                       $500,000.00

                    ARTICLE 8 CONFIDENTIALITY AND PUBLICITY

      8.1. Subject to the parties' rights and obligations pursuant to this
Agreement, INSTITUTIONS and LICENSEE agree that during the term of this
Agreement and for five (5) years thereafter, each of them:

            (a) will keep confidential and will cause their AFFILIATES and, in
the case of LICENSEE, its SUBLICENSEES, to keep confidential, CONFIDENTIAL
INFORMATION disclosed to it by the other party, by taking whatever action the
party receiving the CONFIDENTIAL INFORMATION would take to preserve the
confidentiality of its own CONFIDENTIAL INFORMATION, which in no event shall be
less than reasonable care; and

            (b) will only disclose that part of the other's CONFIDENTIAL
INFORMATION to its officers, employees or agents that is necessary for those
officers, employees or agents who need to know to carry out its responsibilities
under this Agreement; and

            (c) will not use the other party's CONFIDENTIAL INFORMATION other
than as expressly set forth in this Agreement or disclose the other's
CONFIDENTIAL INFORMATION to any third parties under any circumstance without
advance written permission from the other party; and

            (d) will, within sixty (60) days of termination of this Agreement,
return all the CONFIDENTIAL INFORMATION disclosed to it by the other party
pursuant to this Agreement except for one copy which may be retained by the
recipient for monitoring compliance with this Article 8.

                                      -11-
<PAGE>

      8.2. The obligations of confidentiality described above shall not pertain
to that part of the CONFIDENTIAL INFORMATION that:

            (a) was known to the recipient prior to the disclosure by the
disclosing party; or

            (b) is at the time of disclosure or has become thereafter publicly
known through no fault or omission attributable to the recipient; or

            (c) is rightfully given to the recipient from sources independent of
the disclosing party; or

            (d) is independently developed by the receiving party without use of
or reference to the CONFIDENTIAL INFORMATION of the other party; or

            (e) is required to be disclosed by law in the opinion of recipient's
attorney, but only after the disclosing party is given prompt written notice and
an opportunity to seek a protective order.

      8.3. Except as required by law, neither party may disclose the financial
terms of this Agreement without the prior written consent of the other party.

                   ARTICLE 9 REPORTS, RECORDS AND INSPECTIONS

      9.1. LICENSEE shall, within thirty (30) days after the calendar year in
which NET SALES first occur, and within thirty (30) days after each calendar
quarter (March 31, June 30, September 30 and December 31) thereafter, provide
INSTITUTIONS with a written report detailing the NET SALES and uses, if any,
made by LICENSEE, its SUBLICENSEES and AFFILIATES of LICENSED PRODUCTS and
LICENSED METHODS during the preceding calendar quarter and calculating the
payments due pursuant to Article 6. NET SALES of LICENSED PRODUCTS or LICENSED
METHODS shall be deemed to have occurred on the date of invoice for such
LICENSED PRODUCTS or LICENSED METHODS. Each such report shall be signed by an
officer of LICENSEE (or the officer's designee), and must include:

            (a) the number of LICENSED PRODUCTS manufactured, sold, leased or
otherwise transferred or disposed of, and the amount of LICENSED METHODS sold,
by LICENSEE, SUBLICENSEES and AFFILIATES;

            (b) a calculation of NET SALES for the applicable reporting period
in each country, including the gross invoice prices charged for the LICENSED
PRODUCTS and LICENSED METHODS and any permitted deductions made pursuant to
Article 2.20;

            (c) a calculation of total royalties or other payment due, including
any exchange rates used for conversion; and

            (d) names and addresses of all SUBLICENSEES and the type and amount
of any SUBLICENSE INCOME received from each SUBLICENSEE.

                                      -12-
<PAGE>

      9.2. LICENSEE and its SUBLICENSEES shall keep and maintain complete and
accurate records and books containing an accurate accounting of all data in
sufficient detail to enable verification of EARNED ROYALTIES and other payments
under this Agreement. LICENSEE shall preserve such books and records for three
(3) years after the calendar year to which they pertain. Such books and records
shall be open to inspection by INSTITUTIONS or an independent certified public
accountant selected by INSTITUTIONS, at INSTITUTIONS' expense, during normal
business hours upon ten (10) days' prior written notice, for the purpose of
verifying the accuracy of the reports and computations rendered by LICENSEE but
in no event more than two (2) times during any 12 month period. In the event
LICENSEE underpaid the amounts due to INSTITUTIONS with respect to the audited
period by more than five percent (5%), LICENSEE shall pay the reasonable cost of
such examination, together with the deficiency not previously paid, and accrued
interest on the underpayment at the lesser of the maximum rate allowed by law or
1 1/2 % per month, all within thirty (30) days of receiving notice thereof from
INSTITUTIONS.

      9.3. On or before the ninetieth (90th) day following the close of
LICENSEE's fiscal year, LICENSEE shall provide INSTITUTIONS with a summary
report of LICENSEE's certified financial statements for the preceding fiscal
year including, at a minimum, a balance sheet and an income statement.

      9.4 Within thirty (30) days of LICENSEE's FIRST SALE, LICENSEE shall
notify INSTITUTIONS of such FIRST SALE.

                          ARTICLE 10 PATENT PROTECTION

      10.1. LICENSEE shall be responsible for all future costs of filing,
prosecution and maintenance of all United States patent applications contained
in the LICENSED PATENTS. Any and all such United States patent applications, and
resulting issued patents, shall remain the property of INSTITUTIONS.

      10.2. LICENSEE shall be responsible for all present and future costs of
filing, prosecution and maintenance of all foreign patent applications, and
patents contained in the LICENSED PATENTS in the countries outside the United
States in the LICENSED TERRITORY selected by INSTITUTIONS and agreed to by
LICENSEE. All such applications or patents shall remain the property of
INSTITUTIONS.

      10.3. If LICENSEE does not agree to pay the expenses of filing,
prosecuting or maintaining a patent application or patent in any country outside
the United States, or fails to pay the expenses of filing, prosecuting or
maintaining a patent application or patent in the United States, then LICENSEE's
rights under this Agreement shall terminate automatically with respect to that
country.

      10.4. The costs mentioned in Articles 10.2 and 10.3 shall include, but are
not limited to, any past, present and future taxes, annuities, working fees,
maintenance fees, renewal and extension charges. Such past costs shall be
payable pursuant to Section 5.1 herein. Payment of future costs shall be made,
at YALE's option, either directly to patent counsel or by reimbursement to YALE.
LICENSEE shall make payment directly to the appropriate party within thirty (30)
days of receiving its invoice. If LICENSEE fails to make payment to YALE or
patent

                                      -13-
<PAGE>

counsel, as appropriate, within the thirty day period, LICENSEE shall be charged
a five percent (5%) surcharge on the invoiced amount per month or fraction
thereof or such higher amount as may be charged by patent counsel. Failure of
LICENSEE to pay the surcharge shall be grounds for termination by YALE under
Article 13.5(b).

      10.5. All patent applications under the LICENSED PATENTS shall be
prepared, prosecuted, filed and maintained by independent patent counsel
selected by LICENSEE and agreed to by YALE. LICENSEE shall be responsible for
directing prosecution. With respect to any LICENSED PATENTS, LICENSEE and patent
counsel shall (a) consult with YALE and keep YALE fully informed about the
progress of all patent applications and patents, including all issues relating
to the preparation, filing, prosecution and maintenance of LICENSED PATENTS, (b)
consult with YALE and keep YALE fully informed about LICENSEE's patent strategy
with respect to the LICENSED PATENTS, (c) provide to YALE advance copies of
documents relevant to preparation, filing, prosecution and maintenance of the
LICENSED PATENTS sufficiently in advance of filing to allow YALE a reasonable
opportunity to review and comment on such documents, (d) seriously consider all
YALE comments on such patent filings and (e) provide YALE with final copies of
such documents. LICENSEE agrees to use commercially reasonable efforts to obtain
broad and strong patent protection in the best interest of YALE and LICENSEE.
LICENSEE will not abandon any patent application, or make decisions that would
have a material impact on the nature or scope of any claims, without YALE's
prior written consent.

      10.6. LICENSEE shall apply, and shall require SUBLICENSEES to apply, the
patent marking notices required by the law of any country where LICENSED
PRODUCTS are made, sold or used, and in accordance with the applicable patent
laws of that country.

                     ARTICLE 11 INFRINGEMENT AND LITIGATION

      11.1. Each party shall promptly notify the other in writing in the event
that it obtains knowledge of infringing activity by third parties, or is sued or
threatened with an infringement suit, in any country in the LICENSED TERRITORY
as a result of activities that concern the LICENSED PATENTS and shall supply the
other party with documentation of the infringing activities that it possesses.

      11.2. During the TERM of this Agreement:

            (a) LICENSEE shall have the first right and obligation to defend the
LICENSED PATENTS against infringement or interference in the FIELD and in the
LICENSED TERRITORY by third parties except with respect to use of LICENSED
PRODUCTS by INSTITUTIONS or non-profit institutions collaborating with
INSTITUTIONS for ACADEMIC RESEARCH PURPOSES. This right and obligation includes
bringing any legal action for infringement and defending any counter claim of
invalidity or action of a third party for declaratory judgment for
non-infringement or non-interference. If, in the reasonable opinion of
LICENSEE's and INSTITUTIONS' respective counsel, INSTITUTIONS are required to be
a named party to any such suit for standing purposes, LICENSEE may join
INSTITUTIONS as a party; provided, however, that (i) INSTITUTIONS shall not be
the first named parties in any such action, (ii) the pleadings and any public
statements about the action shall state that the action is being pursued by
LICENSEE and that LICENSEE has joined

                                      -14-
<PAGE>

INSTITUTIONS as a party; and (iii) LICENSEE shall keep INSTITUTIONS reasonably
apprised of all developments in any such action. LICENSEE may settle such suits
solely in its own name and solely at its own expense and through counsel of its
own selection; provided, however, that no settlement shall be entered without
INSTITUTIONS' prior written consent. LICENSEE shall bear the expense of such
legal actions. Except for providing reasonable assistance, at the request and
expense of LICENSEE, INSTITUTIONS shall have no obligation regarding the legal
actions described in Article 11.2 unless required to participate by law.
However, INSTITUTIONS shall have the right to participate in any such action
through its own counsel and at its own expense. Any recovery shall first be
applied to LICENSEE's out of pocket expenses and legal fees, and second shall be
applied to INSTITUTIONS' out of pocket expenses, including legal fees. Any
excess recovery over those expenses representing loss of sales due to the
infringement shall be treated as NET SALES for which INSTITUTIONS shall be paid
EARNED ROYALTIES. INSTITUTIONS shall recover 25% of excess recovery over
expenses and loss of sales.

            (b) In the event LICENSEE fails to initiate and pursue or
participate in the actions described in Article 11.2(a) within sixty (60) days
of (a) notification of infringement from INSTITUTIONS or (b) the date LICENSEE
otherwise first becomes aware of an infringement, whichever is earlier,
INSTITUTIONS shall have the right to initiate such legal action at its own
expense and INSTITUTIONS may use the name of LICENSEE as party plaintiff to
uphold the LICENSED PATENTS. In such case, LICENSEE shall provide reasonable
assistance to INSTITUTIONS if requested to do so. INSTITUTIONS may settle such
actions solely through its own counsel. Any recovery shall be split between
INSTITUTIONS and LICENSEE on a pro rata basis as determined by the relative
total out of pocket and legal expenses incurred by each party in pursuing the
legal action solely through INSTITUTIONS counsel and settled in favor of
INSTITUTIONS.

      11.3. In the event LICENSEE is permanently enjoined from exercising its
LICENSE under this Agreement pursuant to an infringement action brought by a
third party, or if both LICENSEE and INSTITUTIONS elect not to undertake the
defense or settlement of a suit alleging infringement for a period of six (6)
months from notice of such suit, then either party shall have the right to
terminate this Agreement in the country where the suit was filed with respect to
the licensed patent following thirty (30) days' written notice to the other
party in accordance with the terms of Article 15.

                         ARTICLE 12 USE OF YALE'S NAME

      LICENSEE shall not use the name "Yale" or "Yale University," nor any
variation or adaptation thereof, nor any trademark, tradename or other
designation owned by YALE, nor the names of any of its trustees, officers,
faculty, students, employees or agents, for any purpose without the prior
written consent of YALE in each instance; provided, however, that YALE
acknowledges and agrees that the LICENSEE may use the names of YALE where the
use of such names may be required by law, including in various documents used by
the LICENSEE for capital raising and financing without such prior written
consent.

      LICENSEE shall not use the name "The Research Foundation of State
University of New York", "University at Buffalo" or "State University of New
York", nor any variation or

                                      -15-
<PAGE>

adaptation thereof (including logos or symbols association with the foregoing),
nor any trademark, tradename or other designation owned by FOUNDATION or related
entity, nor the names of any of its trustees, officers, faculty, students,
employees or agents, for any purpose without the prior written consent of
FOUNDATION in each instance; provided, however, that FOUNDATION acknowledges and
agrees that the LICENSEE may use the names of FOUNDATION where the use of such
names may be required by law, including in various documents used by the
LICENSEE for capital raising and financing without such prior written consent.

                             ARTICLE 13 TERMINATION

      13.1. INSTITUTIONS shall have the right to terminate this Agreement upon
written notice to LICENSEE in the event LICENSEE:

            (a) fails to make any payment whatsoever due and payable pursuant to
this Agreement with the exception of license initiation payment under Article
5.1 (i) unless LICENSEE shall make all such payments within the thirty (30) day
period after receipt of written notice from INSTITUTIONS (provided that the
payment of interest under Article 6.4 shall not foreclose INSTITUTIONS from
exercising any rights it may have under this Article 13.1(a)); or

            (b) commits a material breach of any other provision of this
Agreement which is not cured (if capable of being cured) within the sixty (60)
day period after receipt of written notice thereof from INSTITUTIONS, or upon
receipt of such notice if such breach is not capable of being cured; or

            (c) fails to obtain or maintain adequate insurance as described in
Article 14, whereupon INSTITUTIONS may terminate this Agreement immediately upon
written notice to LICENSEE.

            (d) fails to make the license initiation payment under Article 5.1
(i) within 3 business days of the EFFECTIVE DATE

      13.2. This Agreement may be terminated by INSTITUTIONS in the event
LICENSEE (i) shall cease to carry on its business or becomes INSOLVENT and has
not cured within 60 days, (ii) files for bankruptcy, (iii) a petition in
bankruptcy is filed against LICENSEE and is consented to, acquiesced in or
remains undismissed for sixty (60) days, (iv) LICENSEE makes a general
assignment for the benefit of creditors, or (v) a receiver is appointed for
LICENSEE. LICENSEE shall disclose documents in such instances within 30 days.

      13.3. LICENSEE shall have the right to terminate this Agreement upon
written notice to INSTITUTIONS:

            (a) at any time on 90 day's notice to INSTITUTIONS; or

                                      -16-
<PAGE>

            (b) in the event INSTITUTIONS commits a material breach of any of
the provisions of this Agreement and such breach is not cured (if capable of
being cured) within the sixty (60) day period after receipt of written notice
thereof from LICENSEE, or upon receipt of such notice if such breach is not
capable of being cured.

      13.4. Upon termination of this Agreement, for any reason, all rights and
licenses granted to LICENSEE under the terms of this Agreement are terminated
and INSTITUTIONS has the option, in its discretion, to terminate any sublicense
granted by LICENSEE. Upon such termination, LICENSEE shall cease to manufacture
or sell LICENSED PRODUCTS and cease to practice LICENSED METHODS. Within sixty
(60) days of the effective date of termination LICENSEE shall return to
INSTITUTIONS:

            (a) All materials relating to or containing the LICENSED PATENTS,
LICENSED METHODS or CONFIDENTIAL INFORMATION disclosed by INSTITUTIONS the last
report required under Article 7 or 9; and

            (b) All payments incurred up to the effective date of termination.

      13.5. Termination of this Agreement shall not affect any rights or
obligations accrued prior to the effective date of such termination and
specifically LICENSEE's obligation to pay all royalties and other payments
specified by Article 5 and 6. The following provisions shall survive any
termination: Articles 2 and 8, the preservation and inspection obligations of
Article 9, Article 12, Article 13, Article 14, Article 15, Article 16.1, and
Article 17. The parties agree that claims giving rise to indemnification may
arise after the TERM or termination of the LICENSE granted herein.

      13.6. The rights provided in this Article 13 shall be in addition and
without prejudice to any other rights which the parties may have with respect to
any default or breach of the provisions of this Agreement.

      13.7. Waiver by either party of one or more defaults or breaches shall not
deprive such party of the right to terminate because of any subsequent default
or breach. Upon termination of this Agreement for any reason other than breach
by INSTITUTIONS, LICENSEE shall permit INSTITUTIONS and its future licensees to
utilize, reference and otherwise have the benefit of all regulatory approvals
of, or clinical trials or other studies conducted on, and all filings made with
regulatory agencies with respect to, the LICENSED PRODUCTS or LICENSED METHODS.
In addition, at INSTITUTIONS' request, LICENSEE shall deliver to INSTITUTIONS
all records required by regulatory authorities to be maintained with respect to
the sale, storage, handling, shipping and use of the LICENSED PRODUCTS or
LICENSED METHODS, all reimbursement approval files, all documents, data and
information related to clinical trials and other studies of LICENSED PRODUCTS or
LICENSED METHODS, any other data, techniques, know-how and other information
developed or generated that relate to the LICENSED PATENTS, LICENSED PRODUCTS or
LICENSED METHODS, and all copies and facsimiles of such materials, documents,
information and files. INSTITUTIONS agrees that, subject to the provisions of
Article 8, LICENSEE may retain one copy thereof to the extent LICENSEE is
required by law to maintain such copy.

                                      -17-
<PAGE>

              ARTICLE 14 INDEMNIFICATION; INSURANCE; NO WARRANTIES

      14.1. LICENSEE shall defend, indemnify and hold harmless INSTITUTIONS,
their trustees, directors, officers, employees, and agents and their respective
successors, heirs and assigns against any and all liabilities, claims, demands,
damages, judgments, losses and expenses of any nature, including without
limitation legal expenses and attorneys' fees (a "CLAIM"), arising out of any
theory of liability (including without limitation tort, warranty, or strict
liability) and the death, personal injury, or illness of any person or out of
damage to any property related in any way to the rights granted under this
Agreement; or resulting from the production, manufacture, sale, use, lease, or
other disposition or consumption or advertisement of the LICENSED PRODUCTS or
LICENSED METHODS by LICENSEE, its AFFILIATES, SUBLICENSEES or any other
transferees; or in connection with any statement, representation or warranty of
LICENSEE, its AFFILIATES, SUBLICENSEES or any other transferees with respect to
the LICENSED PRODUCTS or LICENSED METHODS; provided, however, that the LICENSEE
shall not be responsible to indemnify INSTITUTIONS pursuant to this section 14.1
to the extent any CLAIM arises out of INSTITUTIONS' gross negligence or willful
misconduct.

      14.2. LICENSEE shall purchase and maintain in effect and shall require its
SUBLICENSEES to purchase and maintain in effect a policy of commercial, general
liability insurance to protect INSTITUTIONS with respect to events described in
Article 14.1. Such insurance shall:

                (a) list "YALE, its trustees, directors, officers, employees and
agents" and "FOUNDATION, its trustees, directors, officers, employees and
agents" as additional insureds under the policy;

            (b) provide that such policy is primary and not excess or
contributory with regard to other insurance INSTITUTIONS may have;

            (c) be endorsed to include product liability coverage in amounts no
less than One Million Dollars ($1,000,000.00) per incident and Three Million
Dollars ($3,000,000.00) annual aggregate; and

            (d) be endorsed to include contractual liability coverage for
LICENSEE's indemnification under Article 14.1; and

            (e) by virtue of the minimum amount of insurance coverage required
under Article 14.2(c), not be construed to create a limit of LICENSEE's
liability with respect to its indemnification under Article 14.1.

      14.3. By signing this Agreement, LICENSEE certifies that the requirements
of Article 14.2 will be met on or before the earlier of (a) the date of FIRST
SALE of any LICENSED PRODUCT or LICENSED METHOD or (b) the date any LICENSED
PRODUCT, or LICENSED METHOD is tested or used on humans, and will continue to be
met thereafter. Upon INSTITUTIONS' request, LICENSEE shall furnish a Certificate
of Insurance and a copy of the current Insurance Policy to INSTITUTIONS.
LICENSEE shall give thirty (30) days' written notice to INSTITUTIONS prior to
any cancellation of or material change to the policy.

                                      -18-
<PAGE>

      14.4. (a) INSTITUTIONS MAKE NO, AND EXPRESSLY DISCLAIMS ALL,
REPRESENTATIONS OR WARRANTIES THAT ANY CLAIMS OF THE LICENSED PATENTS, ISSUED OR
PENDING, ARE VALID, OR THAT THE MANUFACTURE, USE, SALE OR OTHER DISPOSAL OF THE
LICENSED PRODUCTS, OR PRACTICE OF THE LICENSED METHODS DOES NOT OR WILL NOT
INFRINGE UPON ANY PATENT OR OTHER RIGHTS NOT VESTED IN INSTITUTIONS.

            (b) INSTITUTIONS MAKE NO, AND EXPRESSLY DISCLAIMS ALL,
REPRESENTATIONS AND WARRANTIES WHATSOEVER WITH RESPECT TO THE LICENSED PATENTS,
LICENSED PRODUCTS AND LICENSED METHODS, EITHER EXPRESS OR IMPLIED, INCLUDING,
BUT NOT LIMITED TO, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. LICENSEE SHALL MAKE NO STATEMENTS, REPRESENTATION OR WARRANTIES
WHATSOEVER TO ANY THIRD PARTIES WHICH ARE INCONSISTENT WITH SUCH DISCLAIMER BY
INSTITUTIONS. IN NO EVENT SHALL INSTITUTIONS, OR THEIR TRUSTEES, DIRECTORS,
OFFICERS, EMPLOYEES AND AFFILIATES, BE LIABLE FOR SPECIAL, INCIDENTAL,
CONSEQUENTIAL OR INDIRECT DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR
INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER UNLESS INSTITUTIONS
SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE
POSSIBILITY OF THE FOREGOING. IN NO EVENT SHALL EITHER INSTITUTION, OR ITS
TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES, BE LIABLE FOR DAMAGES
IN EXCESS OF AMOUNTS SUCH INSTITUTION HAS RECEIVED FROM LICENSEE UNDER THIS
LICENSE.

                          ARTICLE 15 NOTICES, PAYMENTS

      15.1. Any notice or other communication required by this Agreement (a)
shall be in writing, (b) may be delivered personally or sent by reputable
overnight courier with written verification of receipt or by registered or
certified first class United States Mail, postage prepaid, return receipt
requested, (c) shall be sent to the following addresses or to such other address
as such party shall designate by written notice to the other parties, and (d)
shall be effective upon receipt:

FOR INSTITUTIONS:                           FOR LICENSEE:
Director                                    President & CEO
YALE UNIVERSITY                             HUDSON HEALTH SCIENCES, Inc.
Office of Cooperative Research              400 Oyster Point Blvd., Suite 215
P.O. Box 208366                             South San Francisco, CA 94080
433 Temple Street
New Haven, CT 06520-8336

Director
Intellectual Property Division/STOR
UB Technology Incubator, Suite 111
Baird Research Park
1576 Sweet Home Road
Amherst, NY 14228

                                      -19-
<PAGE>

All notices and other communications required by this Agreement shall be sent to
all parties hereto for the period commencing on the Effective Date and ending on
January 23, 2008, and all notices and other communications required by this
Agreement shall only be sent by and to LICENSEE and YALE after January 23, 2008.

All payment payable by LICENSEE to INSTITUTIONS shall be either sent to YALE on
behalf of the INSTITUIONS, or wired to INSTITUTIONS per instructions from YALE .
YALE shall be responsible for disbursing FOUNDATION's share of such amounts to
FOUNDATION, except that FOUNDATION's share of any Common Stock or options to be
issued pursuant to this Agreement shall be directly issued to FOUNDATION.

                     ARTICLE 16 LAWS, FORUM AND REGULATIONS

      16.1. Any matter arising out of or related to this Agreement shall be
governed by and in accordance with the substantive laws of the State of
Connecticut, without regard to its conflicts of law principles, except where the
federal laws of the United States are applicable and have precedence. Any
dispute arising out of or related to this Agreement shall be brought in a court
of competent jurisdiction in the State of Connecticut.

      16.2. LICENSEE shall comply, and shall cause its AFFILIATES and
SUBLICENSEES to comply, with all foreign and United States federal, state, and
local laws, regulations, rules and orders applicable to the testing, production,
transportation, packaging, labeling, export, sale and use of the LICENSED
PRODUCTS and practice of the LICENSED METHODS. In particular, LICENSEE shall be
responsible for assuring compliance with all United States export laws and
regulations applicable to this LICENSE and LICENSEE's activities under this
Agreement.

                            ARTICLE 17 MISCELLANEOUS

      17.1. This Agreement shall be binding upon and inure to the benefit of the
parties and their respective legal representatives, successors and permitted
assigns.

      17.2. This Agreement constitutes the entire agreement of the parties
relating to the LICENSED PATENTS, LICENSED PRODUCTS and LICENSED METHODS, and
all prior representations, agreements and understandings, written or oral, are
merged into it and are superseded by this Agreement.

      17.3. The provisions of this Agreement shall be deemed separable. If any
part of this Agreement is rendered void, invalid, or unenforceable, such
determination shall not affect the validity or enforceability of the remainder
of this Agreement unless the part or parts which are void, invalid or
unenforceable shall substantially impair the value of the entire Agreement as to
either party.

      17.4. Paragraph headings are inserted for convenience of reference only
and do not form a part of this Agreement.

                                      -20-
<PAGE>

      17.5. No person not a party to this Agreement, including any employee of
any party to this Agreement, shall have or acquire any rights by reason of this
Agreement. Nothing contained in this Agreement shall be deemed to constitute the
parties partners with each other or any third party.

      17.6. This Agreement may not be amended or modified except by written
agreement executed by each of the parties. This Agreement is personal to
LICENSEE and shall not be assigned by LICENSEE without the prior written consent
of INSTITUTIONS, except that LICENSEE may assign this Agreement to an entity
that acquires all or substantially all of LICENSEE'S assets or that part of
LICENSEE's business to which the Agreement relates, provided that any such
assignee has agreed in writing to be bound by the terms and conditions of this
Agreement. Any attempted assignment in contravention of this Article 17.6 shall
be null and void and shall constitute a material breach of this Agreement.

      17.7. LICENSEE, or any SUBLICENSEE or assignee, will not create, assume or
permit to exist any lien, pledge, security interest or other encumbrance on this
Agreement or any sublicense.

      17.8. The failure of any party hereto to enforce at any time, or for any
period of time, any provision of this Agreement shall not be construed as a
waiver of either such provision or of the right of such party thereafter to
enforce each and every provision of this Agreement.

      17.9. This Agreement may be executed in any number of counterparts and any
party may execute any such counterpart, each of which when executed and
delivered shall be deemed to be an original and all of which counterparts taken
together shall constitute but one and the same instrument.

IN WITNESS to their Agreement, the parties have caused this Agreement to be
executed in duplicate originals by their duly authorized representatives.

<TABLE>
<CAPTION>
<S>                       <C>                                  <C>
YALE UNIVERSITY           The Research Foundation of           Hudson Health Sciences, Inc.
                          State University of New York, on
                          behalf of University at Buffalo

By:___________________    By:___________________               By:_____________________

Print Name:___________    Print Name: __________               Print Name: ____________

Title_________________    Title_________________               Title___________________
</TABLE>

                                      -21-
<PAGE>

                                   APPENDIX A

                                LICENSED PATENTS

<TABLE>
<CAPTION>
CNTRY          TITLE (ASSIGNEE)                                            APPLNNO         FILEDATE   PATENTNO   ISSUEDATE  STATUS
<S>            <C>                                                         <C>             <C>        <C>        <C>        <C>
United States  5-Ioso 2-Pyrimidinone Nucleoside (FOUNDATION)                                          4,895,937  1/23/90    Issued

Canada         Determination of prodrugs metabolizable by the liver and    2,103,050       5/15/1992                        Pending
               therapeutic use thereof (YALE)

European       Determination of prodrugs metabolizable by the liver and    92912221.6-1216 5/15/1992                        Pending
               therapeutic use thereof (YALE)

Ireland        Determination of prodrugs metabolizable by the liver and    IR 92/1581      5/15/1992                        Pending
               therapeutic use thereof (YALE)

Israel         Determination of prodrugs metabolizable by the liver and    101,879         5/15/1992  101,879    5/15/1992  Issued
               therapeutic use thereof (YALE)

Japan          Determination of prodrugs metabolizable by the liver and    92/500240       5/15/1992                        Pending
               therapeutic use thereof (YALE)

South Korea    Determination of prodrugs metabolizable by the liver and    245252          5/15/1992  245252     11/27/1999 Issued
(Republic of   therapeutic use thereof (YALE)
               Korea)
United States  Determination of prodrugs metabolizable by the liver and    08/146,164      4/19/1994  5,728,684  3/17/1998  Issued
               therapeutic use thereof (YALE)

Israel         Determination of prodrugs metabolizable by the liver and    121,375         7/23/1997  121,375    8/13/1999  Issued
               therapeutic use thereof (YALE)
</TABLE>

                                      -22-

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