Document:

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                                                                   EXHIBIT 10.24

     EXECUTIVE EMPLOYMENT AGREEMENT, dated as of February 18, 2004 (this
     "Agreement"), by and between ImaRx Therapeutics, Inc., a Delaware (the
     "Company") and John A. Moore (the "Executive").

     The Company and the Executive desire to set forth in this Agreement the
terms and conditions upon which the Executive will be employed by the Company as
the Chairman and Executive Vice President of the Company. In consideration of
the foregoing recital and the mutual promises, representations, warranties, and
covenants hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

     1.   CERTAIN DEFINITIONS.

          For the purposes of this Agreement, the following terms shall have the
following meanings:

          "$" means  dollars in the  lawful  currency  of the  United  States of
America.

          "Base Salary" shall have the meaning  assigned to such term in
Section 4.1.

          "Board" means the Board of Directors of the Company.

          "Cause" means Executive shall have (i) been indicted for a felony;
(ii) committed an act of willful misconduct or negligence resulting in a
material loss to the Company; (iii) materially violated any material written
Company policy or rules of the Company, unless cured by Executive within 30 days
following written notice thereof to Executive, (iv) refused to follow the
reasonable written directions given by the Board or its designee or materially
breached any covenant or obligation under this Agreement or other agreement with
the Company, unless cured by Executive within 30 days following written notice
thereof to Executive, or (v) the death or Disability of Executive.

          "Change of Control" means any consolidation or merger of the Company
with or into any other Company or other entity or person, or any other corporate
reorganization, in which the stockholders of the Company immediately prior to
such consolidation, merger or reorganization, own less than fifty percent (50%)
of the Company's voting power immediately after such consolidation, merger or
reorganization, or any transaction or series of related transactions to which
the Company is a party resulting in the sale of substantially all of the
Company's assets or a transfer of the Company's voting power in excess of fifty
percent (50%), excluding any consolidation or merger effected exclusively to
change the domicile of the Company.

          "Common Stock" means the common stock, par value $0.001 per share, of
the Company.

          "Disability" means Executive's adjudication as mentally incompetent,
or the occurrence of a mental or physical disability preventing Executive from
performing his duties for

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ninety (90) or more days within any period of three hundred and sixty five (365)
days or any period of ninety (90) consecutive days. Any question as to the
existence of Disability as to which Executive and the Company cannot agree shall
be determined in writing by a qualified independent physician selected by the
Company. The determination of Disability made in writing by such physician to
Executive and the Company shall be final and conclusive for all purposes.

          "Effective Date" means the first date written above.

          "Good Reason" shall mean (i) a material reduction in Executive's
title, status, authority, or responsibility at the Company; provided however,
that naming Evan C. Unger, M.D. as Chairman of the Board following the hiring of
a new Chief Executive Officer shall not be considered a reduction in Executive's
title, status, or authority or Good Reason under this Agreement or (ii) any
breach by the Company of any material term of this Agreement (including, without
limitation, failure to make any payment or to grant any stock options required
by the terms of this Agreement), which breach is not cured within thirty (30)
days of the Company's receipt from Executive of written notice of such breach.

          "Person" means an individual, partnership, corporation, limited
liability company, limited liability partnership, trust, joint venture, joint
stock company or unincorporated organization.

          "QPO" means the closing of a public offering pursuant to an effective
registration statement under the Securities Act of 1933, as amended, covering
the offer and sale of the Common Stock.

          "Term" means the period commencing on the Effective Date and ending on
the second anniversary thereof, as may be extended by written agreement of the
parties.

          "Termination Date" means the first date on which the Executive is no
longer employed by the Company for any reason.

          "Transferee" means any person or entity to whom or which shares of
Executive Stock have been sold, transferred or assigned, by agreement or
operation of law.

     2.   TERM.

          The Company shall employ Executive for the Term or until the
Termination Date, this being an "at-will" employment agreement, provided that
Section 5 shall govern the amount of compensation to be paid to Executive on and
after the Termination Date. Upon mutual written consent, the parties may extend
the Term at any time, but shall use their best efforts to begin negotiating any
such extension at least ninety (90) days prior to the expiration of the Term.

     3.   POSITION AND DUTIES.

          1.1. General. Executive shall serve as the Chairman of the Board of
Directors and Executive Vice President of the Company and shall be subject to
the supervision of, and

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shall report to, the Board. Executive shall have such duties and authority as
are customarily exercised by a vice president of a business corporation of
similar size and in the same industry as the Company and as may be determined
from time to time by the Board.

          1.2. Election as Board Member. During the Term and until the
Termination Date, the Company agrees to place Executive on the slate of nominees
for election to the Board and take any and all actions within its power and
authority necessary or advisable to appoint Executive to the Board and to
nominate him as Chairman; provided, however, that the Board may replace
Executive with Evan C. Unger, M.D. as Chairman following the hiring of a new
Chief Executive Officer.

     4.   COMPENSATION.

          2.1. Base Salary. (a) Subject to Section 4.1(b) and 4.1(c), commencing
on the Effective Date, the Company shall pay to Executive a base salary at an
annual rate of $125,000 (as may be adjusted from time to time, the "Base
Salary"), payable in accordance with the payroll practices of the Company in
effect from time to time. Base Salary payments shall be subject to withholding
and other applicable taxes.

          (b) Notwithstanding Section 4.1(a) hereof, the Executive's right to
receive the Base Salary shall be subject to the following: (i) the Base Salary
does not start to accrue until the closing of a financing or financings
occurring after the Effective Date in which the Company shall have received
proceeds of at least $3,000,000 in the aggregate, (ii) after receipt by the
Company of financing proceeds after the Effective Date of at least $3,000,000 in
the aggregate, the Base Salary starts to accrue but is not payable to the
Executive until the earlier of an QPO or receipt of additional financing
proceeds which (combined with prior proceeds), equal or exceed $5,000,000, and
(iii) after receipt by the Company of financing proceeds after the Effective
Date of at least $5,000,000, all accrued Base Salary is immediately payable by
the Company to the Executive and all future accruals are payable as provided in
Section 4.1(a) hereof.

          (c) Notwithstanding Section 4.1(a) or 4.1(b) hereof, if at any time
the Company's available cash falls below $750,000, or at such time as any of the
Company's other officers are placed on reduced salary, the Board of Directors
shall have the right to discontinue salary payments to Executive. Any such
discontinued salary payments shall be accrued and shall be paid in a lump sum
payment at such time as the Company's available cash exceeds $1,250,000.

          2.2. Annual Bonus. With respect to each full fiscal year until the
earlier of the end of the Term or the Termination Date, Executive shall be
eligible to receive an annual bonus award, only if, as and when determined by
the Board in its sole discretion. Such bonus, if any, shall be paid no later
than thirty (30) days after the end of the fiscal year.

          2.3. Option Grant. If the Company shall have closed a financing or
financings (including, without limitation, a public offering), in which the
Company shall have received proceeds of at least $3,000,000 in the aggregate,
within 10 business days thereafter the Company shall grant to Executive an
option to purchase 250,000 shares of Common Stock at an exercise price of $2.00
per share (the "Executive Option"). The Executive Option shall be granted

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pursuant to an option agreement, in substantially the form attached hereto as
Exhibit B (the "Stock Option Agreement"). Notwithstanding the foregoing, if such
financing does not occur upon the earlier of the end of the Term or the
Termination Date, the Company shall have no obligation to grant the Executive
Option. If granted, the Executive Option may be exercised, from time to time,
with respect to all or any part of the then vested shares in accordance with the
following vesting schedule: shares shall vest in 24 equal monthly installments
at the end of each month following the Effective Date; provided, however, all
shares subject to the Executive Option shall immediately vest upon the earlier
of (a) the consummation of a QPO, (b) the consummation of a Change of Control or
(c) termination of Executive's employment by the Company without Cause or by
Executive with Good Reason. If Executive's employment is terminated by the
Company with Cause or by Executive without Good Reason, the unexercised portion
of the Executive Option shall automatically lapse on the Termination Date and
not be exercisable whether or not such options were vested.

          4.4. Employee Benefits. Until the Termination Date, or such later time
as provided in Section 5, Executive shall be entitled to receive health and
disability insurance and the opportunity to participate in any 401(k) plan to
the same extent as such benefits are in effect from time to time for other
executive officers of the Company ("Benefits"); provided, however, that
Executive shall not be entitled to such Benefits to the extent that the same or
similar benefits are available to him from another employer, and the Company
shall not be required to make any employer contribution to Executive's 401(k)
account.

          2.5. Expense Reimbursement. Executive shall be entitled to
reimbursement by the Company for all reasonable travel, lodging, entertainment
and other expenses actually incurred by Executive in connection with the
performance of his duties, against receipts or other appropriate written
evidence of such expenditures as required by the appropriate United States
Internal Revenue Service regulations and, for any expenses in excess of $1,000
individually or $10,000 in the aggregate, subject to the Chief Executive
Officer's prior approval.

     5.   TERMINATION AND SEVERANCE.

          3.1. Termination without Cause or for Good Reason. If during the Term
the Company terminates Executive's employment without Cause, or Executive
terminates his employment with Good Reason, Executive shall be entitled to
receive:

          (a) if the Company shall not have closed on a financing or financings
prior to the first anniversary of the Effective Date (including, without
limitation, a public offering), in which the Company shall have received
proceeds of at least $3,000,000 in the aggregate, a pro rata portion of his Base
Salary and Benefits through the Termination Date and no other payment of any
kind; provided, however, that, if the Company's available cash is below $750,000
as of the Termination Date, or the Company's other officers are placed on
reduced salary, the Board of Directors shall have the right not to make the
salary payment to Executive and such salary payment shall be accrued and shall
be paid in a lump sum payment at such time as the Company's available cash
exceeds $1,250,000;

          (b) if the Company shall have closed on a financing or financings
prior to the

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first anniversary of the Effective Date (including, without limitation, a public
offering), in which the Company shall have received proceeds of at least
$3,000,000 in the aggregate but less than $5,000,000 in the aggregate, (i) a pro
rata portion of his Base Salary and Benefits through the Termination Date plus
(ii) an accruing right to receive his Base Salary and Benefits during the
remainder of the Term; provided that the amounts accrued pursuant to this clause
(ii) shall only be payable to Executive if the Company closes on a financing or
financing during the Term in which the Company shall have received proceeds of
at least $5,000,000 in the aggregate, and only paid at the time such payments
would otherwise have been made had Executive's employment not been terminated;

          (c) if the Company shall have closed on a financing or financings
prior to the first anniversary of the Effective Date (including, without
limitation, a public offering), in which the Company shall have received
proceeds of at least $5,000,000 in the aggregate but less than $15,000,000 in
the aggregate, (i) a pro rata portion of his Base Salary and Benefits through
the Termination Date plus (ii) continued payments of his then current Base
Salary and Benefits for the remainder of the Term; and

          (d) if the Company shall have closed on a financing or financings
prior to the first anniversary of the Effective Date (including, without
limitation, a public offering), in which the Company shall have received
proceeds of at least $15,000,000 in the aggregate, (i) a pro rata portion of his
Base Salary and Benefits through the Termination Date plus (ii) continued
payments of his then current Base Salary and Benefits for the period ending on
the third anniversary of the Effective Date.

Any such payments will be made in accordance with the Company's normal payroll
practices in existence immediately prior to the Termination Date.

          3.2. Termination for Cause or without Good Reason. If (a) the Company
terminates Executive's employment at any time for Cause or (b) Executive
terminates his employment at any time other than for Good Reason, Executive
shall be entitled to receive a pro rata portion of his Base Salary through the
Termination Date. Other than the payments described in this subsection,
Executive shall be entitled to no other payments from the Company.

          3.3. No Additional Effect on Executive Option. The right of Executive
to retain the vested portion of his rights under the Executive Option shall be
governed by the Stock Option Agreement entered into by and between the Company
and Executive and shall not be affected by the provisions of this Section 5.

     6.   PROPRIETARY RIGHTS AGREEMENT AND ARBITRATION AGREEMENT. The parties
acknowledge and incorporate that certain Proprietary Rights Agreement
("Proprietary Rights Agreement") and Arbitration Agreement ("Arbitration
Agreement") executed by Executive, copies of which are attached hereto as
Exhibit A.

     7.   ADDITIONAL COVENANTS.

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          4.1. Voting Agreement. From the date of this Agreement until the
second anniversary thereof, on all matters relating to the election of directors
of the Company, Executive agrees to vote all shares of capital stock of the
Company held by Executive (or shall consent pursuant to an action by written
consent of the holders of capital stock of the Company) so as to elect Evan C.
Unger, M.D. as a member of the Company's Board of Directors.

          4.2. Restriction on Transfer. During the twelve (12) month period
immediately subsequent to the closing of the offering of securities of the
Company conducted with the assistance of First Montauk Securities Corp. ("First
Montauk"), for so long as Executive together with its affiliates holds five
percent (5%) or more of the capital stock of the Company, Executive shall not,
and shall cause its affiliates not to, transfer any shares of capital stock of
the Company without complying with the right of first refusal granted by the
Company to First Montauk pursuant to that certain Letter of Intent dated January
8, 2004, by and between the Company and First Montauk.

     8.   MISCELLANEOUS.

          8.1. Survival. The representations, warranties, covenants and
agreements made herein shall survive the execution of this Agreement.

          8.2. Assignment. This Agreement and the rights and obligations
hereunder shall be assignable only with the prior written consent of each of the
parties; provided, however, that the Company may assign its rights under this
Agreement to the surviving entity pursuant to a sale of substantially all of the
Company's assets, by merger or consolidation or by a sale of all of the
Company's capital stock (provided that the surviving entity shall remain liable
as to all obligations of the Company under this Agreement).

          8.3. Benefits of Agreement. This Agreement and all obligations of the
parties shall be binding upon, and inure to the benefit of, their respective
successors and assigns.

          8.4. Severability. In case any provision of the Agreement shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby,
and the court making the determination of invalidity, illegality, or
unenforceability shall have the power to reduce the scope, duration or area of
the term or provision, to delete specific words or phrases, or to replace any
invalid, illegal, or unenforceable term or provision with a term or provision
that is valid, legal and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified.

          8.5. Further Assurances. Each party agrees to execute such other
documents, instruments, agreements and consents, and take such other actions as
may be reasonably requested by the other parties hereto to effectuate the
purposes of this Agreement.

          8.6. Amendment and Waiver. This Agreement may be amended, modified or
waived only with prior written consent of each of the parties.

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          8.7. Delays or Omissions. It is agreed that no delay or omission to
exercise any right, power or remedy accruing to any party, upon any breach,
default or noncompliance by another party under this Agreement shall impair any
such right, power or remedy, nor shall it be construed to be a waiver of any
such breach, default or noncompliance, or any acquiescence therein, or of or in
any similar breach, default or noncompliance thereafter occurring. All remedies
shall be cumulative and not alternative.

          8.8. Decisions of the Company and/or the Board. Any determination,
decision, approval, request, demand, action or lack of action to be exercised by
the Company or the Board with regard to this Agreement shall be the
determination, decision, approval, request, demand, action or lack of action of
the members of the Board other than Executive and all members nominated or
appointed by Executive in his capacity as a stockholder of the Company.

          8.9. Notices. All notices required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to the
party to be notified, (b) when sent by confirmed facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (c) five
(5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid, or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt. Any notice herein required or permitted to be given
shall be given by depositing the same in the United States first class mail,
postage prepaid, or hand delivered or transmitted by facsimile, in any case with
a copy sent by overnight courier service, and addressed to the parties as
follows:

               If to the Company:     ImaRx Therapeutics, Inc.
                                      1635 East 18th Street
                                      Tucson, AZ  85719
                                      Attention:  Chief Financial Officer
                                      Facsimile:  (520) 791-2437

               With a copy to:        Osborn Maledon
                                      2929 N. Central Avenue, Suite 2100
                                      Phoenix, AZ 85012-2794
                                      Attention:  Christopher S. Stachowiak
                                      Facsimile:  (602) 664-2055

               If to Executive:       John A. Moore
                                      c/o Edson Moore Healthcare Ventures, Inc.
                                      101 Brookmeadow Road
                                      Wilmington, DE 19807
                                      Facsimile:  (302) 994-3086

               With a copy to:        Reitler Brown LLC
                                      800 Third Avenue, 21st Floor
                                      New York, New York  10022
                                      Attention:  Scott H. Rosenblatt, Esq.
                                      Facsimile:  (212) 371-5500

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or, to such other address or facsimile number as the party to whom notice is to
be given may have furnished to the other parties in writing in accordance
herewith.

          8.10. Titles and Subtitles. The titles of the sections and subsections
of the Agreement are for convenience of reference only and are not to be
considered in construing this Agreement.

          8.11. Counterparts. This Agreement may be executed in any number of
counterparts (facsimile or otherwise), each of which shall be an original, but
all of which together shall constitute one instrument.

          8.12. Pronouns. All pronouns contained herein, and any variations
thereof, shall be deemed to refer to the masculine, feminine or neutral,
singular or plural, as the identity of the parties hereto may require.

          8.13. Governing Law. This Agreement shall be construed in accordance
with, and governed by, the laws of the State of Arizona (without giving effect
to its conflict of laws principles).

          8.14 Prior Agreements. This Agreement, the Stock Option Agreement, the
Proprietary Rights Agreement and the Arbitration Agreement contain the entire
agreement of the parties relating to the subject matter hereof and supersede all
prior agreements and understandings with respect to such subject matter, and the
parties hereto have made no agreements, representations or warranties relating
to the subject matter of this Agreement, the Stock Option Agreement, the
Proprietary Rights Agreement or the Arbitration Agreement that are not set forth
herein or therein.

                            (SIGNATURE PAGE FOLLOWS)

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     IN WITNESS WHEREOF, the parties have executed this Executive Employment
Agreement as of the Effective Date.

                                         THE COMPANY:

                                         IMARX THERAPEUTICS, INC.

                                         By:  /s/ Evan Unger
                                            ------------------------------------
                                             Name: Evan C. Unger, M.D.
                                             Title:   President

                                         THE EXECUTIVE:

                                          /S/ John A. Moore
                                         ---------------------------------------
                                         JOHN A. MOORE

Exhibit A: Attach copy of signed Proprietary Rights Agreement and Arbitration
Agreement.
Exhibit B:  Attach copy of form of Stock Option Agreement.

                 EXECUTIVE EMPLOYMENT AGREEMENT SIGNATURE PAGE
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                            IMARX THERAPEUTICS, INC.

                  AGREEMENT FOR THE RESOLUTION OF ALL DISPUTES
                    ARISING FROM THE EMPLOYMENT RELATIONSHIP
                        THROUGH MEDIATION AND ARBITRATION

I.         SUBJECT AND SCOPE OF AGREEMENT

In order to expedite the resolution of employment related disputes and to
minimize the expense of such disputes for both ImaRx Therapeutics, Inc. (the
Company) and JOHN A. MOORE (the employee), thereby mitigating the disruption of
work and workplace morale which accompanies such disputes, it is hereby agreed
that ALL DISPUTES, CONTROVERSIES, CLAIMS AND MATTERS IN QUESTION ARISING OUT OF
OR RELATING TO THE EMPLOYMENT RELATIONSHIP BETWEEN THE COMPANY AND THE EMPLOYEE
WHICH ARE NOT RESOLVED THROUGH THE "GRIEVANCE PROCEDURE" STATED IN THE COMPANY'S
EMPLOYEE HANDBOOK, SHALL BE SUBJECT TO THE EXCLUSIVE, FINAL, BINDING, SPEEDY,
INEXPENSIVE AND IMPARTIAL CONDITIONS AND PROCEDURES STATED HEREIN. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THESE PROCEDURES SHALL CONSTITUTE THE SOLE AND
EXCLUSIVE METHOD FOR THE RESOLUTION OF ANY CLAIM BETWEEN THE COMPANY AND ANY
EMPLOYEE, ARISING OUT OF THE EMPLOYMENT RELATIONSHIP AND THERE SHALL BE NO
RECOURSE TO COURT WITH OR WITHOUT A JURY TRIAL. The parties agree to promptly
move to dismiss any such court proceeding if commenced.

Claims covered by this Agreement include claims based on alleged breach of any
employment agreement or promise, breach of implied covenants of

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good faith and fair dealing, alleged discrimination or harassment and/or alleged
breach of any public policy; wrongful discharge under statutory law and common
law; employment discrimination and/or violations based on federal, state and
local statutes, ordinances or governmental regulations including, but not
limited to those based on Title VII of the Civil Rights Act of 1964, the Civil
Rights Act of 1991, the Americans with Disabilities Act (ADA), the Age
Discrimination in Employment Act (ADEA), the Family and Medical Leave Act
(FMLA), the Workers Adjustment and Retraining Notification Act (WARN);
retaliatory discharge or other action, tortious conduct; contractual violations;
other statutory claims and disputes. THIS AGREEMENT ALSO APPLIES TO ANY CLAIMS
OR COUNTERCLAIMS THAT THE COMPANY MAY HAVE AGAINST THE EMPLOYEE.

II. PROCEDURES - MEDIATION

The party initiating these procedures shall be referred to herein as "the
claimant or grievant."

     1.   The claimant shall, within seven (7) days of the specific incident or
          situation giving rise to the dispute, submit to his/her supervisor or
          to the Human Resources Manager if the claimant is an employee, or to
          the employee involved if the claimant is the Company, in writing, the
          subject of the dispute

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          and his/her contentions with respect to it. A written response shall
          be provided within three (3) days (1).

     2.   If the response is unsatisfactory, the claimant shall, within three
          (3) days of receipt of the written response or of the default, demand
          in writing that the dispute be submitted to nonbinding mediation. If
          the dispute involves termination of employment, the claimant shall
          have the option to proceed directly to arbitration. (See III below).

     3.   The mediation conference(s) shall be held before a mediator selected
          from a list of five mediators provided by the Lex Mundi College of
          Mediators, or by any other entity agreed upon by the parties and
          completed within thirty (30) days of the demand. Within two (2) days
          of receipt of a timely written demand for mediation, (or within two
          (2) days of its issuance of such demand when the company is the
          claimant) the Company shall request a list of five mediators who
          reside within 1000 miles of the situs of the dispute from Lex Mundi

____________

(1) Unless otherwise specified, "days" herein means calendar days. A document
is deemed delivered by the sender and received by the addressee at the time it
is postmarked or hand-delivered to the addressee's workstation. The time limits
established in this policy are to be strictly enforced. However, any deadline
may be extended by written agreement of the grievant and the Company.

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          College of Mediators or from any other entity agreed upon by the
          parties. The parties shall select a mediator from the list provided
          by Lex Mnndi, by each alternatively striking 2 names from said list.
          The remaining mediator shall mediate the dispute. The parties shall
          execute the mediation agreement required by the mediator selected.

     4.   At the mediation conference(s) the spokesperson for the Company will
          be an attorney or other person designated by the Company. The
          claimant's spokesperson will be either himself or herself or an
          attorney employed by the claimant for that purpose.

     5.   The claimant and his or her supervisor will normally attend the
          mediation conference(s). Attendance by others at the mediation
          conference(s) shall be limited to those people actually involved in
          the mediation process.

     6.   All written material presented to the mediator or to the other party
          shall be returned to the party presenting the material at the
          termination of the mediation conference(s).

     7.   Proceedings before the mediator shall be informal in nature. The issue
          mediated will be the same as the issue the parties

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          have failed to resolve through this process. The rules of evidence
          will not apply, and no record of the mediation conference(s) shall be
          made, except that the mediator may make notes for the purpose of
          aiding the mediation process.

     8.   The mediator may meet separately with the parties during the mediation
          conference(s) but will not have the authority to compel the resolution
          of the dispute.

     9.   The Company and the employee at the mediation conference(s) may accept
          the resolution proposed by the mediator and if accepted at the
          conference(s) such settlement or any settlement resulting from the
          conference(s) shall be in writing and binding upon the parties and
          dispose of the entire dispute but shall not be precedent setting.

     10.  If no settlement is reached during the mediation conference(s), the
          mediator shall provide the parties with an immediate oral advisory
          opinion, unless both parties agree that no opinion shall be provided.
          The mediator shall state the basis for his or her advisory opinion.

     11.  The Company shall bear up to $400.00 of compensation and expenses of
          the mediator and the general administrative

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          expenses of the mediation conference(s). Expenses in excess of this
          shall be divided equally between the parties.

III.     PROCEDURES - ARBITRATION

1.   SUBMISSION TO ARBITRATION

If the mediation does not resolve the dispute or, in cases of termination of
employment, if the claimant elected to bypass the mediation process, either
party may submit the dispute to arbitration, if further relief is sought. Such
submission shall be in writing, within ten (10) days of the last mediation
conference or of the claimant's election to bypass the mediation, and shall
state with specificity the issues to be submitted to arbitration and the relief
sought. Copies of the submission and demand for arbitration shall be served by
registered mail on the other party to the dispute and simultaneously upon the
local office of the Federal Mediation and Conciliation Service (FMCS), or at the
requesting party's option, upon the local office of the American Arbitration
Association (AAA).

2.   SELECTION OF ARBITRATOR

With the submission, the FMCS or AAA shall be requested by the party seeking
arbitration to provide a list of five arbitrators. Unless the parties can
otherwise agree to appoint an arbitrator, the arbitrator shall be selected no
later than five days after receipt by the parties of the list in the same method
used for the selection of the mediator.

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3.   ARBITRATION PROCESS

The arbitration process shall be under the provisions of the current American
Arbitration Association, National Rules for the Resolution of Employment
Disputes in effect at the time of the submission or under such procedures as are
determined by the arbitrator. Copies of the pertinent procedural rules shall be
obtained by the party submitting the dispute to arbitration and provided to the
other party. Should a discrepancy arise between said procedural rules and the
provisions herein, the latter shall prevail. At the hearing, all witnesses shall
testify under oath and the hearing and record or the proceeding shall be
confidential and not open to the public except to the extent that; (a) the
parties otherwise agree in writing, and (b) may be appropriate in subsequent
proceedings between the parties. A record of the hearing shall be made at the
election of either party and at the Company's expense by verbatim transcription.
The arbitrator shall maintain possession of the record for at least two years
after issuing the award. No person serving as a mediator between the parties may
serve as arbitrator. Neither party may at the arbitration hearing refer to
presentations made by the other at the mediation conference (s), the fact that
such conference(s) were held, or any statements made by the mediator. Any such
references shall be disregarded by the arbitrator. Intentional or repeated
references to matters disclosed only during mediation shall constitute cause for
the arbitrator, in his or her discretion, to summarily find against the party
making such references.

                                     Page 7
<PAGE>

4.   REPRESENTATION AT HEARING AND EVIDENCE

Any such party to the arbitration may be represented by counsel during the
arbitration proceedings. The order of presentation and any disputes that may
arise with respect to the relevance and materiality of the evidence offered
shall be resolved by the arbitrator. Conformity with the rules of evidence shall
not be required.

5.   ARBITRATOR'S DISCRETION

The arbitrator may, in his/her discretion, confer with any party or person and
otherwise conduct his/her own investigation outside the hearing process for the
purpose of obtaining written or oral information. The hearing may be reopened on
the arbitrator's initiative or upon application of a party, at any time before
the award is made. The arbitration shall have thirty (30) days from the closing
of the hearing within which to render the award. The arbitrator shall have no
authority to add to, subtract from, nor modify the policies describing the
employment relationship. The relief awardable by the arbitrator shall, except
where he/she finds a statutory violation, be limited to reinstatement, if the
claimant is an employee who had been terminated and the earnings that said
claimant would otherwise have earned (back-pay), less any unemployment
compensation or other compensation for services that the claimant may have
received from any source during the period. In cases where the Company had
terminated the relationship, if the claimant had failed thereafter to make
diligent efforts to apply or look for a

                                     Page 8
<PAGE>

position which would provide compensation for his services, no back-pay shall be
awarded for that period of time. Where the arbitrator finds a statutory
violation, the remedy shall be limited to those provided for in the pertinent
statute.

6.   TIME LIMITATIONS

The time limitations imposed in this Article shall be strictly complied with,
unless the parties agree, in writing, to extend them. Failure to comply with the
time limitations shall operate as a waiver by the party responsible for such
failure.

7.   ALLOCATION OF EXPENSES, FEES AND COSTS

The expenses of witnesses for either side shall be paid by the party producing
such witnesses. The arbitrator's fees and any other expenses of the arbitrator
including required travel of the arbitrator and the cost of any evidence or
proof produced at the direction of the arbitrator are apportionable and shall be
borne by the party (s) designated by the arbitrator.

8.   FINALITY AND ENFORCEMENT OF AWARD

All decisions of arbitrators pursuant to this Article shall be final, valid,
irrevocable and conclusively binding upon the parties to the dispute. The award
may be entered as a judgment in any court of competent jurisdiction and the
parties agree to stipulate to entry of judgment.

                                     Page 9
<PAGE>

IV.  CONSIDERATION FOR AGREEMENT

An employee's acceptance of an offer of employment or of continued employment by
the Company after notice of this agreement manifest his or her assent to its
terms. Such employment and the Company's commitments contained in this Agreement
constitute part of the consideration he or she receives in exchange for
foregoing any and all right to litigate employment related disputes in a court
of law.

/s/ John A. Moore                        /s/ Jean Carlyle
----------------------                   ------------------------
EMPLOYEE                                 IMARX THERAPEUTICS, INC.

02-23-04                                 02-18-04
----------------------                   ------------------------
DATE:                                    DATE:

                                    Page 10
<PAGE>

                            ImaRx Therapeutics, Inc.

                     INVENTION AND CONFIDENTIAL INFORMATION
                                   AGREEMENT

                                      with

                                 John A. Moore

                                Dated: 02-18-04

<PAGE>

                INVENTION AND CONFIDENTIAL INFORMATION AGREEMENT

          This INVENTION AND CONFIDENTIAL INFORMATION AGREEMENT is made between
John A. Moore, sometimes hereinafter referred to as "Employee," and ImaRx
Therapeutics, Inc., hereinafter referred to as "Company," effective as of the
first day of employment by the Company of the Employee.

          In consideration of: (1) any compensation paid to me by the Company;
(2) my employment as employee, consultant and /or independent contractor, and
continuing employment by the Company; and (3) my access to Confidential
Information (as hereinafter defined) of the Company, I, the undersigned
Employee, hereby agree as follows:

     1.   DEFINITIONS.

          A.   "Agreement Field" refers to the field of imaging Pharmaceuticals
               related to diagnostic imaging techniques of computed tomography,
               magnetic resonance, ultrasound and nuclear medicine as well as
               therapeutic techniques or products related to the disciplines
               (e.g. therapeutic ultrasound and hyperthermia, radiation therapy
               and lasers) and drug and gene delivery.

          B.   "Confidential Information" refers to any information acquired,
               developed, owned or controlled by the Company concerning the
               Company and its products and technology which the Company treats
               as confidential, including without limitation, any and all
               patents and patent rights, copyrights, discoveries, inventions,
               improvements, knowledge, know-how, models, manufacturing or other
               techniques, specifications, ideas, technical data, engineering
               data, formulae, recipes, plans, processes, and any other
               information in the Agreement Field, whether or not patentable,
               copyrightable or otherwise protectable, which are made,
               discovered, conceived, developed or otherwise acquired by the
               Company. Confidential Information also includes names of
               customers and dealers, personal records, financial projections
               and other financial information relating to Company's businesses;
               technological product information, training and operational
               manuals and other things which constitute the property of the
               Company. The term "Confidential Information" shall not include
               information which:

               (i)  is in or becomes available to the public domain, other than
                    through an act or failure to act of one of the parties,
                    contrary to the terms of this Agreement; or

               (ii) can be shown to have already been known to the Employee and
                    which has not been transferred to Company prior to the date
                    of this Agreement; or

                                       1
<PAGE>

               (iii) has been disclosed by a third party, as a matter of right,
                     without restrictions on disclosures and use.

In the event Employee asserts that any information is not Confidential
Information by reason of (i), (ii), or (iii) above, the Employee shall have the
burden of proving the information disclosed is within the terms of such
provisions.

          C.   "Inventions" refers to all discoveries, inventions, improvements,
               processes, plans, designs, specifications, ideas, recipes,
               models, manufacturing or other techniques or know-how, whether or
               not patentable, copyrightable or otherwise protectable, which are
               made, discovered, conceived, or developed, by Employee in the
               Agreement Field either alone or jointly with others.

     2.   ASSIGNMENT OF INVENTIONS. During the term of my employment and for a
period of one year thereafter, I agree to disclose to the Company fully and
promptly, and to assign to the Company, and I do hereby assign to the Company
all right, title and interest to and in, all Inventions made, discovered,
conceived, or developed by me, either alone or jointly with others, during the
period of my employment by the Company, whether or not during normal working
hours, and including during any periods of leaves of absence, which relate in
any way to the Agreement Field or which result in any way from the use of the
Company's premises, time, facilities or Confidential Information.

     3.   PATENTS. I agree that the Company shall have the right to apply for
and use patents, copyrights, trademarks, or other statutory or common law
protections for the Inventions in all countries; and that I will assist the
Company in every lawful way (at the Company's expense) to obtain, and from time
to time enforce patents, copyrights, trademarks, trade secrets, and other
statutory and common law protections for the Inventions, including but not
limited to the execution of documents, and the giving of testimony during and
after my employment by the Company.

     4.   CONFIDENTIAL INFORMATION.

          A.   I agree that during the period of my employment by the Company,
               and during the period extending three years after termination of
               such employment (or for a longer period not to exceed five years
               after such termination in the case of such Confidential
               Information which the Company may specifically designate for this
               purpose), I will not, without written authorization from the
               Company, directly or indirectly use Confidential Information
               belonging to the Company for any purpose other than pursuant to
               my employment by the Company, and that I will not disclose such
               Confidential Information to any person without the express
               written authorization of the Company.

                                       2
<PAGE>

          B.   I agree that I will submit in advance to an officer designated by
               the Company (other than myself) all matters proposed to be
               published or printed for any use other than a confidential
               communication to an authorized recipient.

          C.   I agree that upon termination of my employment by the Company for
               any reason whatsoever, I will promptly deliver to the Company all
               Confidential Information, including any and all notes, memoranda,
               writings, drawings, or other materials embodying or containing
               Confidential Information, however reproduced or recorded (and
               including any and all copies thereof), which are in my
               possession, custody or control.

     5. MODIFICATIONS. This Agreement may be modified only by a duly authorized
and executed writing.

     6. SUCCESSORS AND ASSIGNS. This Agreement shall be binding on, and shall
inure to the benefit of the Company, its affiliates, and their respective
successors and assigns, and the Employee, his heirs, personal representatives
and assigns.

     7. ARBITRATION. Any and all disputes between the parties hereto concerning
the negotiation, interpretation, performance or termination of this Agreement,
shall be resolved through amicable discussion between the parties. Failing
resolution of the issues in dispute in such discussion, any party may, thirty
(30) days after initiation of such discussions, refer the issue for final
resolution by binding arbitration pursuant to the then-existing rules of the
American Arbitration Association. Any party may apply to any court of competent
jurisdiction for injunctive relief or other interim measures. Any application to
a court for such interim measures shall not be deemed incompatible with this
agreement to arbitrate or as a waiver of this agreement. The arbitration shall
be conducted by a single arbitrator, who shall be a lawyer familiar with
technology development and transfer issues, and shall be held, absent agreement
to the contrary, in Tucson, Arizona. In making his award, the arbitrator shall
be guided, in descending priority, by the terms of this Agreement, the terms of
the Research Joint Venture Agreement, the usages of the trade in the place where
the party charged with an act or failure to act is principally located, and by
what he deems just and equitable under the circumstance without reference to the
law of any jurisdiction. The award of the arbitrator shall be final and binding,
and not subject to judicial review. Enforcement of the award may be sought in
any court of competent jurisdiction over the parties or their assets.

     8. WAIVER. Failure by either Party to exert all or any of its rights upon
breach of this Agreement shall not be deemed a waiver of such rights either with
respect to that breach or any subsequent breach.

               9. SEVERABILITY. The invalidity or unenforceability of any
          provisions of this Agreement shall not affect the other provisions
          hereof and this Agreement shall be construed in all respects as if
          said invalid or unenforceable provisions were not

                                       3
<PAGE>

contained herein, The parties agree to cooperate in any revisions or amendments
of this Agreement which may be necessary to effect the intent of the parties in
the event that any provision of this Agreement is deleted as herein provided.

Signed in Tucson, Arizona this 18th day of FEB, 2004.

                                ImaRx Therapeutics, Inc.

                                Jean Carlyle
                                ------------------------------------------------
                                Vice President and Chief Financial Officer

Signed in Tucson, Arizona this 23RD day of FEB, 2004.

                              Employee John A. Moore

<PAGE>

                            IMARX THERAPEUTICS, INC.

                                 2000 STOCK PLAN

                             STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in the ImaRx Therapeutics,
Inc. 2000 Stock Plan shall have the same defined meanings in this Stock Option
Agreement (the "Option Agreement").

I.   NOTICE OF STOCK OPTION GRANT

     Optionee's Name:           John A. Moore            SS#:  ****************
                                                               ----------------
     Optionee's Address:        c/o Edson Moore Healthcare Ventures, Inc.
                                101 Brookmeadow Road
                                Wilmington, DE 19807

     You have been granted an option to purchase Common Stock of ImaRx
Therapeutics, Inc. (the "Company"), subject to the terms and conditions of the
Plan and this Option Agreement, as follows:

     Grant Number                            99
                                         ______________

     Date of Grant                        03/10/04
                                         _________________

     Vesting Commencement Date           February _____, 2004

     Exercise Price per Share            $ 2.00

     Total Number of Shares Granted      250,000

     Total Exercise Price                $300,000

     Type of Option:                     _______Incentive Stock Option

                                         X  Nonstatutory Stock Option

     Term/Expiration Date:               Ten years from the Date of Grant

     Exercise and Vesting Schedule:

     This Option shall be exercisable in whole or in part, and shall vest
according to the vesting schedule set forth in that certain Employment Agreement
dated February ___, 2004 (the "Employment Agreement"). Additionally, to the
extent applicable, this Option shall be subject to the terms and conditions
(including vesting, change-in-control, and termination) of the Employment
Agreement.

<PAGE>

     Termination Period:

     This Option may be exercised, to the extent it is then vested, for three
months after Optionee ceases to be a Service Provider. Upon death or Disability
of the Optionee, this Option may be exercised, to the extent it is then vested,
for one year after Optionee ceases to be a Service Provider. In no event shall
this Option be exercised later than the Term/Expiration Date as provided above.

II.  AGREEMENT

     1. Grant of Option. The Administrator of the Company hereby grants to the
Optionee named in the Notice of Grant (the "Optionee"), an option (the "Option")
to purchase the number of Shares set forth in the Notice of Grant, at the
exercise price per Share set forth in the Notice of Grant (the "Exercise
Price"), and subject to the terms and conditions of the Plan, which is
incorporated herein by reference. Subject to Section 14(c) of the Plan, in the
event of a conflict between the terms and conditions of the Plan and this Option
Agreement, the terms and conditions of the Plan shall govern. In the event of a
conflict between the terms and conditions of the Plan and this Option Agreement,
on the one hand, and the Employment Agreement, on the other hand, the terms and
conditions of the Plan and Option Agreement shall govern.

     2. Exercise of Option. This Option shall be exercisable during its term in
accordance with the provisions of Section 9 of the Plan as follows:

        (a) Right to Exercise. This Option shall be exercisable cumulatively
according to the vesting schedule set forth in the Employment Agreement. This
Option may not be exercised for a fraction of a Share.

        (b) Method of Exercise. This Option shall be exercisable by delivery of
an exercise notice in the form attached as Exhibit A (the "Exercise Notice")
which shall state the election to exercise the Option, the number of Shares with
respect to which the Option is being exercised, and such other representations
and agreements as may be required by the Company. The Exercise Notice shall be
accompanied by payment of the aggregate Exercise Price as to all Exercised
Shares. This Option shall be deemed to be exercised upon receipt by the Company
of such fully executed Exercise Notice accompanied by the aggregate Exercise
Price.

        No Shares shall be issued pursuant to the exercise of an Option unless
such issuance and such exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Shares shall be considered transferred
to the Optionee on the date on which the Option is exercised with respect to
such Shares.

     3. Optionee's Representations. In the event the Shares have not been
registered under the Securities Act of 1933, as amended, at the time this Option
is exercised, the Optionee shall, if required by the Company, concurrently with
the exercise of all or any portion of this Option, deliver to the Company his or
her Investment Representation Statement in the form attached hereto as Exhibit
B.

     4. Lock-Up Period. Optionee hereby agrees that, if so requested by the
Company or any representative of the underwriters (the "Managing Underwriter")
in connection with any registration of the offering of any securities of the
Company under the Securities Act, Optionee shall not sell or

                                       2
<PAGE>

otherwise transfer any Shares or other securities of the Company during the
180-day period (or such other period as may be requested in writing by the
Managing Underwriter and agreed to in writing by the Company) (the "Market
Standoff Period") following the effective date of a registration statement of
the Company filed under the Securities Act. Such restriction shall apply only to
the first registration statement of the Company to become effective under the
Securities Act that includes securities to be sold on behalf of the Company to
the public in an underwritten public offering under the Securities Act. The
Company may impose stop-transfer instructions with respect to securities subject
to the foregoing restrictions until the end of such Market Standoff Period.

     5. Method of Payment. Payment of the aggregate Exercise Price shall be by
any of the following, or a combination thereof, at the election of the Optionee:

          (a) cash;

          (b) check;

          (c) consideration received by the Company under a formal cashless
exercise program adopted by the Company in connection with the Plan; or

          (d) surrender of other Shares which, (i) in the case of Shares
acquired upon exercise of an option, have been owned by the Optionee for more
than six (6) months on the date of surrender, and (ii) have a Fair Market Value
on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares.

     6. Restrictions on Exercise. This Option may not be exercised if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any Applicable
Law.

     7. Non-Transferability of Option. This Option may not be transferred in any
manner otherwise than by will or by the laws of descent or distribution and may
be exercised during the lifetime of Optionee only by Optionee. The terms of the
Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

     8. Term of Option. This Option may be exercised only within the term set
out in the Notice of Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option.

     9. Tax Consequences. Set forth below is a brief summary as of the date of
this Option of some of the federal tax consequences of exercise of this Option
and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE
TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A
TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

          (a) Exercise of NSO. There may be a regular federal income tax
liability upon the exercise of an NSO. The Optionee will be treated as having
received compensation income (taxable at ordinary income tax rates) equal to the
excess, if any, of the Fair Market Value of the Exercised Shares on the date of
exercise over the Exercise Price. If Optionee is an Employee or a former
Employee, the Company will be required to withhold from Optionee's compensation
or

                                       3
<PAGE>

collect from Optionee and pay to the applicable taxing authorities an amount in
cash equal to a percentage of this compensation income at the time of exercise,
and may refuse to honor the exercise and refuse to deliver Shares if such
withholding amounts are not delivered at the time of exercise.

     10. Entire Agreement; Governing Law. The Plan is incorporated herein by
reference. The Employment Agreement, the Plan and this Option Agreement
(including all exhibits attached hereto) constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee. This Option Agreement is governed by the internal substantive laws but
not the choice of law rules of the State of Arizona.

     11. No Guarantee of Continued Service. OPTIONEE ACKNOWLEDGES AND AGREES
THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED
ONLY PURSUANT TO THE EMPLOYMENT AGREEMENT. OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE
VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED
PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD,
FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH OPTIONEE'S
RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S RELATIONSHIP AS A SERVICE
PROVIDER AS SET FORTH IN THE EMPLOYMENT AGREEMENT.

                           [Signature Page to Follow]

                                       4
<PAGE>

     Optionee acknowledges receipt of a copy of the Plan and represents that he
or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof. Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option. Optionee
further agrees to notify the Company upon any change in the residence address
indicated below.

OPTIONEE                                 IMARX THERAPEUTICS, INC.

                                      By:
________________________________         _______________________________________
Signature                                  Evan C. Unger

                                           President & CEO
_______________________________       __________________________________________
Print Name                               Title

_______________________________
Spouse signature

________________________________
Print Name

________________________________

________________________________
Residence Address

                                       5
<PAGE>

                                    EXHIBIT A

                                 2000 STOCK PLAN

                                 EXERCISE NOTICE

                            ImaRx Therapeutics, Inc.
                                 1635 East 18th
                              Tucson, Arizona 85719

Attention:  Stock Plan Administrator

     1. Exercise of Option. Effective as of today, ________________, ____, the
undersigned ("Optionee") hereby elects to exercise Optionee's option (the
"Option") to purchase ________________ shares of the Common Stock (the "Shares")
of ImaRx Therapeutics, Inc. (the "Company") under and pursuant to the 2000 Stock
Plan (the "Plan") and the Stock Option Agreement dated ______________, _____
(the "Option Agreement").

     2. Delivery of Payment. Purchaser herewith delivers to the Company the full
purchase price of the Shares, as set forth in the Option Agreement.

     3. Representations of Optionee. Optionee acknowledges that Optionee has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

     4. Rights as Shareholder. Until the issuance of the Shares (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the optioned stock,
notwithstanding the exercise of the Option. The Shares shall be issued to the
Optionee as soon as practicable after the Option is exercised. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date of issuance except as provided in Section 12 of the Plan.

     5. Company's Right of First Refusal. Before any Shares held by Optionee or
any transferee (either being sometimes referred to herein as the "Holder") may
be sold or otherwise transferred (including transfer by gift or operation of
law), the Company or its assignee(s) shall have a right of first refusal to
purchase the Shares on the terms and conditions set forth in this Section (the
"Right of First Refusal").

          (a) Notice of Proposed Transfer. The Holder of the Shares shall
deliver to the Company a written notice (the "Notice") stating: (i) the Holder's
bona fide intention to sell or otherwise transfer such Shares; (ii) the name of
each proposed purchaser or other transferee ("Proposed Transferee"); (iii) the
number of Shares to be transferred to each Proposed Transferee; and (iv) the
bona fide cash price or other consideration for which the Holder proposes to
transfer the

                                       1

2000 Stock Plan Exercise Notice
<PAGE>

Shares (the "Offered Price"), and the Holder shall offer the Shares at the
Offered Price to the Company or its assignee(s).

          (b) Exercise of Right of First Refusal. At any time within thirty (30)
days after receipt of the Notice, the Company and/or its assignee(s) may, by
giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection (c)
below.

          (c) Purchase Price. The purchase price ("Purchase Price") for the
Shares purchased by the Company or its assignee(s) under this Section shall be
the Offered Price. If the Offered Price includes consideration other than cash,
the cash equivalent value of the non-cash consideration shall be determined by
the Board of Directors of the Company in good faith.

          (d) Payment. Payment of the Purchase Price shall be made, at the
option of the Company or its assignee(s), in cash (by check), by cancellation of
all or a portion of any outstanding indebtedness of the Holder to the Company
(or, in the case of repurchase by an assignee, to the assignee), or by any
combination thereof within 30 days after receipt of the Notice or in the manner
and at the times set forth in the Notice.

          (e) Holder's Right to Transfer. If all of the Shares proposed in the
Notice to be transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s) as provided in this Section, then the Holder may
sell or otherwise transfer such Shares to that Proposed Transferee at the
Offered Price or at a higher price, provided that such sale or other transfer is
consummated within 120 days after the date of the Notice, that any such sale or
other transfer is effected in accordance with any applicable securities laws and
that the Proposed Transferee agrees in writing that the provisions of this
Section shall continue to apply to the Shares in the hands of such Proposed
Transferee. If the Shares described in the Notice are not transferred to the
Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right
of First Refusal before any Shares held by the Holder may be sold or otherwise
transferred.

          (f) Exception for Certain Family Transfers. Anything to the contrary
contained in this Section notwithstanding, the transfer of any or all of the
Shares during the Optionee's lifetime or on the Optionee's death by will or
intestacy to the Optionee's immediate family or a trust for the benefit of the
Optionee's immediate family shall be exempt from the provisions of this Section.
"Immediate Family" as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister. In such case, the transferee or
other recipient shall receive and hold the Shares so transferred subject to the
provisions of this Section, and there shall be no further transfer of such
Shares except in accordance with the terms of this Section.

                                       2

2000 Stock Plan Exercise Notice
<PAGE>

          (g) Termination of Right of First Refusal. The Right of First Refusal
shall terminate as to any Shares upon (i) the first sale of Common Stock of the
Company to the general public pursuant to a registration statement filed with
and declared effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended, or (ii) in the event of any "Change in
Control," as that term may be defined in the Employment Agreement. Additionally,
the Right of First Refusal shall not apply to any proposed transfer to be made
as part of a transaction or series of transactions that give rise to a Change in
Control.

     6. Tax Consultation. Optionee understands that Optionee may suffer adverse
tax consequences as a result of Optionee's purchase or disposition of the
Shares. Optionee represents that Optionee has consulted with any tax consultants
Optionee deems advisable in connection with the purchase or disposition of the
Shares and that Optionee is not relying on the Company for any tax advice.

     7. Restrictive Legends and Stop-Transfer Orders.

          (a) Legends. Optionee understands and agrees that the Company shall
cause the legends set forth below or legends substantially equivalent thereto,
to be placed upon any certificate(s) evidencing ownership of the Shares
together with any other legends that may be required by the Company or by state
or federal securities laws:

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
     SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR
     OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED
     UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL SATISFACTORY TO THE
     ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR
     HYPOTHECATION IS IN COMPLIANCE THEREWITH.

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
     RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY THE
     ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE
     ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE
     OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS
     AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES.

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN AGREEMENT
     PROVIDING FOR A MARKET STANDOFF RESTRICTION FOLLOWING THE INITIAL PUBLIC
     OFFERING OF THE COMPANY'S SECURITIES, A COPY OF WHICH IS ON FILE AT THE
     PRINCIPAL OFFICE OF THE COMPANY.

                                       3

2000 Stock Plan Exercise Notice
<PAGE>

               (b) Stop-Transfer Notices. Optionee agrees that, in order to
ensure compliance with the restrictions referred to herein, the Company may
issue appropriate "stop transfer" instructions to its transfer agent, if any,
and that, if the Company acts as a registrar and transfer agent for its own
securities, it may make appropriate notations to the same effect in its own
records.

               (c) Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Exercise Notice or (ii) to treat as
owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so
transferred.

          8. Successors and Assigns. The Company may assign any of its rights
under this Exercise Notice to single or multiple assignees, and the terms and
conditions of this Exercise Notice shall inure to the benefit of the successors
and assigns of the Company. Subject to the restrictions on transfer herein set
forth, the terms and conditions of this Exercise Notice shall be binding upon
Optionee and his or her heirs, executors, administrators, successors and
assigns.

          9. Interpretation. Any dispute regarding the interpretation of this
Exercise Notice shall be submitted by Optionee or by the Company forthwith to
the Administrator which shall review such dispute at its next regular meeting.
The resolution of such a dispute by the Administrator shall be final and binding
on all parties.

          10. Governing Law. This Exercise Notice is governed by the laws of the
State of Arizona.

Submitted by:                                        Accepted by:

OPTIONEE                                 ImaRx Therapeutics, Inc.

                                         By:
________________________________            ____________________________________
Signature                                Name:
                                              __________________________________

________________________________         _______________________________________
Print Name                               Title

Address:                                 Address:

                                         1635 East 18th Street
________________________________

                                         Tucson, Arizona  85719
________________________________

________________________________
Spouse Signature

________________________________         _______________________________________
Signature                                Date received

                                       4

2000 Stock Plan Exercise Notice
<PAGE>

                                    EXHIBIT B

                       INVESTMENT REPRESENTATION STATEMENT

OPTIONEE       :

COMPANY        :             IMARX THERAPEUTICS, INC.

SECURITY       :             COMMON STOCK

AMOUNT         :

DATE           :

In connection with the purchase of the above-listed Securities, the undersigned
Optionee represents to the Company the following:

          (a) Optionee is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities. Optionee is
acquiring these Securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

          (b) Optionee acknowledges and understands that the Securities
constitute "restricted securities" under the Securities Act and have not been
registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange
Commission, the statutory basis for such exemption may be unavailable if
Optionee's representation was predicated solely upon a present intention to hold
these Securities for the minimum capital gains period specified under tax
statutes, for a deferred sale, for or until an increase or decrease in the
market price of the Securities, or for a period of one year or any other fixed
period in the future. Optionee further understands that the Securities must be
held indefinitely unless they are subsequently registered under the Securities
Act or an exemption from such registration is available. Optionee further
acknowledges and understands that the Company is under no obligation to register
the Securities. Optionee understands that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless they are registered or such registration is not required in
the opinion of counsel satisfactory to the Company and with any other legend
required under applicable state securities laws.

          (c) Optionee is familiar with the provisions of Rule 701 and Rule 144,
each promulgated under the Securities Act, which, in substance, permit limited
public resale of "restricted securities" acquired, directly or indirectly from
the issuer thereof, in a non-public offering subject to the satisfaction of
certain conditions. Rule 701 provides that if the issuer qualifies under Rule
701 at the time of the grant of the Option to the Optionee, the exercise will be
exempt from registration

                                       1

2000 Stock Plan Exercise Notice
<PAGE>

under the Securities Act. In the event the Company becomes subject to the
reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, ninety (90) days thereafter (or such longer period as any market stand-off
agreement may require) the Securities exempt under Rule 701 may be resold,
subject to the satisfaction of certain of the conditions specified by Rule 144,
including: (1) the resale being made through a broker in an unsolicited
"broker's transaction" or in transactions directly with a market maker (as said
term is defined under the Securities Exchange Act of 1934); and, in the case of
an affiliate, (2) the availability of certain public information about the
Company, (3) the amount of Securities being sold during any three month period
not exceeding the limitations specified in Rule 144(e), and (4) the timely
filing of a Form 144, if applicable.

                  In the event that the Company does not qualify under Rule 701
at the time of grant of the Option, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires the
resale to occur not less than one year after the later of the date the
Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of
acquisition of the Securities by an affiliate, or by a non-affiliate who
subsequently holds the Securities less than two years, the satisfaction of the
conditions set forth in sections (1), (2), (3) and (4) of the paragraph
immediately above.

            (d) Optionee further understands that in the event all of the
applicable requirements of Rule 701 or 144 are not satisfied, registration under
the Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules 144
and 701 are not exclusive, the Staff of the Securities and Exchange Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk. Optionee understands that no assurances can be given that any
such other registration exemption will be available in such event.

                                             Signature of Optionee:

                                             ___________________________________

                                             Date:______________________________

                                        2<PAGE>

                                                                   EXHIBIT 10.29

                          COMMERCIAL LEASE - TRIPLE NET

1. PARTIES. This Lease is made effective November 1, 2002, by and between the
following parties:

(1)   IMARx Investments L.L.C., an Arizona Limited Liability Company, (herein
      called "Landlord" or "Lessor"), and

(2)   IMARx Therapeutics, Inc., a Delaware corporation (herein called "Tenant"
      or "Lessee").

2. PREMISES. Landlord hereby leases to Tenant and Tenant leases from Landlord,
upon all of the conditions set forth herein, the premises situate in the County
of Pima, State of Arizona, with address of (and commonly known as) 1635 East
18th Street, Tucson, Arizona 85710 ("the premises"), being a commercial
industrial building of approximately 6,200 square feet in size and surrounding
real property for access, landscaping and parking which is more precisely
described on the "Legal Description" attached hereto as Exhibit A.

3. TERM. The basic term of this Lease shall be for approximately six (6) years
commencing on November 1, 2002, and ending on October 31, 2008, unless sooner
terminated or extended pursuant to any provision hereof. Specific options to
extend are contained in Paragraph 40, hereof.

4. BASIC RENT.

            4.1 Monthly Fixed Rent. Tenant shall pay to Landlord as fixed rent
for the Premises, monthly payments of FOUR THOUSAND EIGHT HUNDRED SEVENTY FOUR
DOLLARS ($4,874.00) each, in advance, without deduction, off-set or demand, on
the first day of each month of the term hereof with the initial month's rent
being prorated. The basic monthly rental shall be adjusted at the end of a three
(3) year period to reflect any increase in the consumer price index (all items)
published by the U.S. Labor Department for the first month of the three year
period compared to the last month of the lease term. Rent shall be payable in
lawful money of the United States to Landlord at the address stated herein or to
such other persons or at such other places as Landlord may designate in writing
from time to time.

            4.2 Rental Taxes. As additional rent, Tenant further agrees to pay
to Landlord, together with each basic, periodic rental payment, the amount of
any excise, sales or transaction privilege tax imposed or levied by any
government or governmental agency upon Landlord on account of this Lease, or of
the rentals paid hereunder by Tenant, or of any other payments made or
obligations discharged or benefits conferred by Tenant hereunder, including
without limitation, payments of Tenant's costs of insurance under Paragraph 10,
real property taxes under Paragraph 6 and other maintenance expenses under
Paragraph 5. Tax calculations and impositions will be subject to applicable
changes in local and state tax ordinances.

5. ADDITIONAL RENT: AND OTHER MAINTENANCE EXPENSES. In order that the fixed rent
shall be absolutely net to Landlord, Tenant covenants to pay, as additional
rent, all real estate taxes (see Paragraph 6), and all other operating expenses,
respecting the Premises, including the following:

                                       1
<PAGE>

(1)   Various utilities costs, janitorial and other maintenance costs, insurance
      costs, real property tax impositions, and any other operating costs.
      Accordingly, Tenant shall pay to or as directed by Landlord the amount of
      such operating expenses reasonably allocated to or attributable to the
      Premises within ten (10) days after each periodic invoicing or other
      billing received by Tenant therefor from either the party providing such
      services or Landlord, as the case may be;

(2)   Additionally,

(a)   Tenant shall pay to Landlord, within a reasonable time after written
      demand therefor by Landlord but before any fine, penalty, interest or cost
      may be added thereto for nonpayment thereof, all public charges with
      respect to the Premises, including, but not limited to, water and sewer
      use charges and betterment assessments, as well as real estate taxes
      (pursuant to Paragraph 6), business privilege taxes (pursuant to Paragraph
      4.2), and personal property taxes (pursuant to Paragraph 6.3).

(b)   Tenant shall pay directly to the proper authorities charged with
      collection thereof all charges for water, sewer, gas, electricity,
      telephone, and any other power, utilities, or services used for consumed
      on the premises; Tenant shall make its own arrangements for such utilities
      and Landlord shall be under no obligation to furnish any utilities to the
      Premises and shall not be liable for any interruption or failure in the
      supply of any such utilities to the Premises;

Tenant agrees to pay for janitorial service and any other maintenance services
for or repairs of the Premises, all in accordance with the provisions of this
Lease (including Paragraph 9).

(c)   Tenant shall furnish to Landlord, at Landlord's written request, for
      Landlord's inspection, within thirty (30) days after the date any amount
      is payable by Tenant, as provided in Paragraph 5, official receipts or
      other proof satisfactory to Landlord evidencing such payment.

6. REAL PROPERTY TAXES.

            6.1 Payment of Taxes. Within ten (10) days after written demand by
Landlord, Tenant shall pay to Landlord the "Real Property Tax", as defined in
Paragraph 6.2, applicable to the Premises during the term of this Lease. If any
such taxes shall cover any period of time prior to or after the expiration of
the term hereof, Tenant's share of such taxes shall be equitably prorated to
cover only the period of time within the applicable tax fiscal year when this
Lease was in effect.

            6.2 Definition of "Real Property Tax". As used herein, the term
"Real Property Tax" shall include any form of real estate tax or assessment, be
it ad valorem, general, special ordinary or extraordinary, and any license fee,
commercial rental tax, improvement bond or bonds, levy or tax (other than
inheritance, personal income or estate taxes) imposed on or reasonably
attributable to the Premises by any authority having the direct or indirect
power to tax, including any city, state or federal government, or any school,
agricultural, sanitary, fire, street, drainage or other improvement district
thereof. The Term "Real Property Tax" shall also include any tax, fee, levy,
assessment or charge (i) in substitution of, partially or totally, any tax, fee,
levy assessment or charge hereinabove included within the definition of "Real
Property Tax", or (ii) the nature of which was hereinbefore included within the
definition of "Real

                                       2
<PAGE>

Property Tax", or (iii) which is imposed by reason of this transaction, any
modifications or changes hereto or any transfers hereof.

6.3 Personal Property Taxes.

                  (a) Tenant shall pay prior to delinquency all taxes assessed
against and levied upon trade fixtures, furnishings, furniture, equipment and
all other personal property of Tenant contained in the Premises or elsewhere.
Whenever possible, Tenant shall cause said trade fixtures, furnishings,
furniture, equipment and all other personal property to be assessed and billed
separately from the Real Property of Landlord.

                  (b) If any of Tenant's personal property shall be assessed
with Landlord's Real Property, Tenant shall pay Landlord the taxes attributable
to Tenant within ten (10) days after receipt of a written statement from
Landlord setting forth the taxes applicable to Tenant's Property. Landlord's
reasonable determination thereof, in good faith shall be conclusive.

7. SECURITY DEPOSIT. Tenant shall make the following deposit with Landlord upon
execution hereof as security for Tenant's faithful performance of Tenant's
obligations hereunder: Cash in the amount of $3,508.96, to be held by Landlord.

If Tenant fails to pay rent or other charges due and payable hereunder, or
otherwise defaults with respect to any provision of this Lease, then, after
10-days' written notice of the default and failure by Tenant to cure within said
10-day period, Landlord may use, apply or retain all or any portion of said
deposit for the payment of any rent, damages or other charge in default. If
Landlord so uses or applies all or any portion of said deposit, the Tenant
shall, within ten (10) days after written demand therefore deposit cash with
Landlord in an amount sufficient to restore said deposit to the full amount
hereinabove stated ($3,508.96). Tenant's failure to do so shall be a material
breach of this Lease. Landlord shall be required to keep said deposit separate
from its general accounts and in a separate interest-bearing account. At the end
of each calendar year any accrued interest shall be paid to Tenant, if not
needed to bring account up to full balance. If Tenant performs all of Tenant's
obligations hereunder, said deposit, or so much thereof as has not theretofore
been applied by Landlord shall be returned, together with any interest accrued
on it, to Tenant at the expiration of the term hereof (and once Tenant has
vacated the Premises). No trust relationship is created herein between Landlord
and Tenant with respect to said Security Deposit.

8. USE. The Premises shall be used and occupied only commercial offices and
testing and production of pharmaceutical products, including any other uses
which are in compliance with zoning restrictions governing the use of Premises,
and for no other purpose. Landlord expressly disclaims any/all representations
and warranties regarding the lawfulness of Tenant's intended use or occupation
of the Premises. It is Tenant's responsibility to determine and comply with all
applicable covenants, conditions and restrictions and all applicable zoning
ordinances or other ordinances, regulations, requirements, stipulations and
conditions affecting the use of occupancy of the Premises.

      8.2 Compliance with Law.

                  (a) Tenant shall, at Tenant's expense, comply promptly with
all applicable laws, statutes, ordinances, rules, regulations, orders,
covenants, restrictions of record, and requirements in effect during the term or
any part of the term hereof, regulating Tenant's operation on and occupancy and
use of the Premises including but not limited to compliance

                                       3
<PAGE>

with all environmental laws. Environmental laws shall mean any and all federal
and state laws and regulations that concern the regulation and/or protection of
the environment, including the ambient air, ground water, surface water, noise,
vibration, asbestos, hazardous materials, and land use, including substrata
land. Tenant shall not use or permit the use of the Premises, including placing
loads on any floor or wall, in a manner for which the premises were not
designed, engineered or constructed. Tenant shall not place a load upon any
floor or wall exceeding the design engineering criteria, which such floor or
wall was designed to carry and/or which is prescribed by any law or regulation
in existence during the term of this Lease. Tenant may request in writing
Landlord's approval of any or all of Tenant's trade fixtures and equipment for
compliance with the design engineering criteria for the Premises and Landlord
shall reply to Tenant's request within a reasonable period of time. Tenant
hereby indemnifies Landlord against liability for any of the above items. Tenant
shall not use nor permit the use of the Premises in any manner that will create
waste or a nuisance.

            8.3 Condition of Premises. Unless otherwise specifically provided in
this Lease, Tenant hereby accepts the Premises in their "AS IS" condition
including any and all defects, latent or otherwise, existing as of the Lease
commencement date or the date that Tenant takes possession of the Premises,
whichever is earlier, subject to all applicable zoning, municipal, county and
state laws, ordinances and regulations governing and regulating the use of the
Premises, and any covenants or restrictions of record, and accepts this Lease
subject thereto and to all matters disclosed thereby and by any exhibits
attached hereto. Tenant acknowledges that Landlord has made no representation or
warranty as to the present or future suitability of the Premises for Tenant's
use or the conduct of Tenant's business.

9. MAINTENANCE, REPAIRS AND ALTERNATIONS.

            9.1 Tenant's Obligations. Tenant shall maintain, replace and keep in
good order, condition and repair the Premises and every part thereof, which is
nonstructural (whether or not such portion of the Premises requiring repair, or
the means of repairing the same are reasonably or readily accessible to Tenant,
and whether or not the need for such repairs occurs as a result of Tenant's use,
or any prior use, the elements or the age of such portion of the Premises),
including, without limiting the generality of the foregoing, the maintenance and
replacement of all plumbing, heating, air conditioning (Tenant shall procure and
maintain, at Tenant's expense, an air conditioning system maintenance contract),
ventilating, electrical, lighting facilities and equipment within the Premises,
fixtures, walls (interior and exterior), ceilings, roofs (interior and
exterior), windows, doors, plate glass and skylights located within the
Premises, and all landscaping, driveways, parking lots, sidewalks, fences and
signs located on the Real Property which are reserved for Tenants use. Tenant
shall not be responsible for replacement of any structural part of the building.

            9.2 Surrender. On the last day of the term hereof, or on any sooner
termination, Tenant shall surrender the Premises to Landlord in the same
condition as when received, ordinary wear and tear excepted, clean and free of
damage or debris. Tenant shall repair any damage to the Premises and/or the Real
Property occasioned by the installation or removal of Tenant's trade fixtures,
furnishings and equipment. Notwithstanding anything to the contrary otherwise
stated in this Lease, Tenant shall leave the power panels, electrical
distribution systems, lighting fixtures, space heaters, air conditioning,
plumbing, doors and fencing on the Premises which will belong to the Landlord in
good operating condition.

                                       4
<PAGE>

            9.3 Landlord's Rights. If Tenant fails to perform Tenant's
obligation under this Paragraph, or under any other paragraph of this Lease,
Landlord may at its option (but shall not be required to) enter upon the
Premises after ten (10) days prior written notice to Tenant (except in the case
of urgency, in which case no notice shall be required), perform such obligation
on Tenant's behalf and put the same in good order, condition and repair, and the
cost thereof, together with interest thereon (at two (2) points over the prime
rate as set and announced by the Wall Street Journal from time to time), shall
become due and payable on demand as additional rental to Landlord.

            9.4 Landlord's Obligations. Except for the obligations of Landlord
under Paragraph 11 (relating to destruction of the Premises) and under Paragraph
15 (relating to condemnation of the Premises), it is intended by the parties
hereto that Landlord shall have no obligation, in any manner whatsoever, to
repair or maintain the Premises or any part thereof, or the Real Property, or
any equipment on the Premises, which are nonstructural, or which obligations are
intended to be those of the Tenant under Paragraph 9.1 hereof. Tenant expressly
waives the benefit of any statute of law now or hereinafter in effect which
would otherwise afford Tenant the right to make repairs at Landlord's expense or
to terminate this Lease because of Landlord's failure to keep the Premises in
good order, condition and repair. Notwithstanding the foregoing, should Landlord
receive any warranty or guaranty respecting any material, equipment, or
workmanship, and should such warranty or guaranty be applicable to portions of
the Premises which Tenant is liable to repair and maintain (as required
hereunder), Landlord shall, upon Tenant's request, assign and transfer such
warranty or guaranty to Tenant for Tenant's use and benefit.

            9.5 Alterations and Additions.

                  (a) Tenant shall not, without Landlord's prior written
consent, which shall be given if reasonable, make any alterations, improvements,
additions or Utility Installation in, on or about the Premises. Tenant shall
make no change or alteration to the exterior of the Premises, nor to the Real
Property, without Landlord's prior written consent. As used in this Paragraph
9.5 the term "Utility Installation" shall mean carpeting, window covering, air
lines, power panels, electrical distribution systems, lighting fixtures, space
heaters, air conditioning, plumbing or fencing. Landlord may not require that
Tenant remove any or all of said alterations, improvements, additions or Utility
Installations at the expiration of the term. Landlord may require Tenant to
provide Landlord, at Tenant's sole cost and expense, a lien and completion bond
in an amount equal to one and one-half times the estimated cost of such
improvements, to insure Landlord against any liability for mechanic's and
material men's liens and to insure completion of the work. Landlord may impose
reasonable conditions from time to time with respect to the improvements to
which Landlord may consent, including without limitation, compliance with all
laws, including environmental laws, regulations, ordinances and -requirements of
governments or governmental agencies, and the time and manner in which such work
shall be accomplished. Should Tenant make any alterations, improvements,
additions or Utility Installation without the prior approval of Landlord,
Landlord may require that Tenant remove any or all of the same.

                  (b) Any alteration, improvement, addition, or Utility
Installation in or about the Premises that Tenant shall desire to make and which
requires the consent of the Landlord shall be presented to Landlord in written
form, with proposed detailed plans, and Landlord shall respond to Tenant on the
matter within fifteen (15) days after Landlord's receipt of the plans and
specifications and other information requested by Landlord in order to make an
informed decision. If Landlord shall give its consent, the consent shall be
deemed conditioned upon Tenant acquiring applicable permit(s) to do so from
appropriate governmental agencies, the

                                       5
<PAGE>

furnishing of a copy thereof to Landlord prior to the Commencement of the work
and the compliance by Tenant with all conditions of said permit in a prompt and
expeditious manner, and compliance by Tenant with all laws, rules, regulations,
recommendations and/or applicable requirements of any government or governmental
agency.

                  (c) Tenant shall pay, when due, all claims for labor,
professional services and materials furnished, or alleged to have been furnished
to or for Tenant at (or for use in) the Premises, which claims are or may be
secured by any mechanic's or material men's lien against the Premises or any
interest therein. Tenant shall give Landlord not less than ten (10) days' notice
prior to the commencement of any work in the Premises, and Landlord shall have
the right to post notices of non-responsibility in or on the Premises as
provided by law. If Tenant shall, in good faith, contest the validity of any
such lien, claim or demand, then Tenant shall, at its sole expense defend itself
and Landlord against same and shall pay and satisfy any such adverse judgment
that may be rendered thereon before the enforcement thereof against the Landlord
or the Premises, upon the condition that if Landlord shall require, Tenant shall
furnish to Landlord a surety bond satisfactory to Landlord in an amount
sufficient to cover Landlord against liability on account of such contested
lien, claim or demand, and indemnifying Landlord against liability for the same,
and holding the Premises free from the effect of such lien or claim. In
addition, Landlord may require Tenant to pay Landlord's attorney fees and costs
incurred on account of participation in such action, if Landlord determines in
its discretion to do so and does so.

                  (d) Unless Landlord requires their removal, as set forth in
Paragraph 9.5(a), all alterations, improvements, additions, and Utility
Installations (unless such Utility Installations constitute trade fixtures of
Tenant), which may be made on the Premises, shall become the property of
Landlord and remain upon and be surrendered with the Premises at the expiration
of the term. Notwithstanding the foregoing provision, Tenant's furniture,
machinery and equipment shall remain the property of Tenant and may be removed
by Tenant subject to the provisions of Paragraph 9.2.

10. INSURANCE INDEMNITY. It is understood and agreed that Tenant shall be
obliged to pay for insurance coverage, including property casualty and public
liability insurance, with respect to the Premises, as specified in Paragraph
5(1) above. In case such insurance coverage is deemed inadequate by Landlord at
any time in its reasonable discretion, Tenant shall be obliged to provide
insurance coverage pursuant to the following Paragraphs 10.1 through 10.4.

            10.1 Liability Insurance. Tenant shall, at Tenant's expense, obtain
and keep in force during the term of this Lease and during Tenant's occupancy of
the Premises a policy of comprehensive general liability insurance with at least
$1,000,000 combined single limit for bodily injury (including death and property
damage), covering the Premises, and Tenant's use and occupancy thereof against
all claims on account of bodily injury or death and property damage occurring
upon, in or about such areas or in connection with the ownership, maintenance,
use and/or occupancy of such areas. Landlord, and, at Landlord's option, any
mortgagee of Landlord, shall be named as insured or as an additional insured
under the policy. The limits of said insurance shall not, however, limit the
liability of Tenant hereunder.

            10.2 Property Casualty Insurance. Tenant shall obtain and keep in
force during the term of this Lease a policy or policies of insurance covering
loss or damage to the Premises in the amount of the full replacement value
thereof, as the same may exist from time to time, but in no event less than the
total amount required by lenders having liens on the Premises, against all
perils included within the classification of fire, extended coverage, vandalism,
malicious

                                       6
<PAGE>

mischief and flood (in the event same is required by a lender having a lien on
the Premises). Landlord shall be named as insured (or an additional insured) on
the policy. Said insurance shall provide for payment of loss thereunder to
Landlord or to the holders of mortgages or deeds of trust on the Premises.

            10.3 Insurance Policies. Insurance required hereunder shall be in
companies holding a "General Policyholders Rating" of at least B-plus, or such
other rating as may be required by a lender having a lien on the Premises, as
set forth in the most current issue of "Best's Insurance Guide". Tenant shall
provide to Landlord copies of insurance certificates naming the insured parties
and evidencing the existence and the amounts of the insurance required in this
Paragraph 10, promptly upon execution of this Lease. No such policy shall be
cancelable or subject to reduction of coverage or other modification except
after thirty (30) days prior written notice to Landlord. Tenant shall, at lease
thirty (30) days prior to the expiration of such policies, furnish Landlord and
any mortgagee of Landlord named as an insured with renewals certificates, or
landlord may, but shall not be obligated to, order such insurance and charge the
cost thereof to Tenant, which amount shall be payable by Tenant upon demand.
Tenant shall not do or permit to be done anything which shall invalidate the
insurance policies referred to in this section 10. If Tenant does or permits to
be done anything which shall increase the costs of the insurance policies
referred to in Paragraph 10.2, then Tenant shall forthwith upon Landlord's
demand pay such additional cost, or reimburse Landlord for any additional
premium payable by it which is attributable to any act or omission or operation
or Tenant causing such increase in the cost of insurance.

            10.4 Waiver of Subrogation. Tenant and Landlord each hereby release
and relieve the other, and waive their entire right of recovery against the
other for loss or damage arising out of or incident to the perils insured
against under Paragraph 10.2, which perils occur in, on or about the Premises,
whether due to the negligence of Landlord or Tenant or their agents, employees
contractors and/or invitees but only to the extent that insurance policies then
in effect permit such waiver and only to the extent of the coverage provided by
such insurance policies. Tenant and Landlord shall, upon obtaining the policies
of insurance required hereunder, give notice to the insurance carrier or
carriers that the foregoing mutual waiver of subrogation is contained in this
Lease.

            10.5 Indemnity. Tenant shall indemnify and hold harmless Landlord
from and against any and all claims arising from Tenant's (or Tenant's agents',
servants', employees' or contractors') use or occupancy of the Premises, or from
the conduct of Tenant's business or from any activity, work or things done,
permitted or suffered by Tenant (or Tenant's agent, servants, employees or
contractors) in or about the Premises and shall further indemnify and hold
harmless Landlord from and against any and all claims arising from any breach or
default in the performance of any obligation on Tenant's part to be performed
under the terms of this Lease, or arising from any negligence of the Tenant, or
any of Tenant's agents, contractors or employees, and from and against all
costs, attorneys' fees, expenses and liabilities incurred in the defense of any
such claim or any action or proceeding brought thereon; and in case any action
or proceeding brought against Landlord by reason of such claim, Tenant (upon
notice from Landlord) shall defend the same at Tenant's expense, by counsel
satisfactory to Landlord. For valuable, sufficient consideration, Tenant, hereby
assumes all risk of damage to property or injury to persons in, upon or about
the Premises arising from any cause (except Landlord's negligence), and Tenant
hereby waives all claims with respect thereto against Landlord.

                                       7
<PAGE>

            Tenant shall indemnify and hold harmless Landlord from and against
any and all liability, claims or actions for injury, liability, or damage to
persons or property, and any and all claims or actions brought by any person,
firm, governmental body, or other entity, including reasonable legal fees and
expenses, alleging or resulting from or arising from or in connection with
contamination of or adverse affects on the Premises, the environment, or any
violation of any Environmental Law or other statute, ordinance, rule,
regulation, judgment or order of any governmental or judicial entity, and from
and against any damages, liabilities, costs, and penalties assessed as a result
of any activity or operation on the Premises during the term of this Lease.
Tenant's obligations or liabilities under this Paragraph shall survive the
term(s) of this Lease, termination of this Lease or termination of Tenant's
occupancy of the Real Property.

            10.6 Exemption of Landlord Liability. Tenant hereby agrees that
Landlord shall not be liable for injury to Tenant's business or any loss of
income therefrom or for damage to the goods, wares, merchandise or other
property of Tenant, Tenant's employees, invitees, customers or any other person
in or about the Premises, nor shall Landlord be liable for injury to the person
of Tenant, Tenant's employees, agents or contractors, whether such damage or
injury is caused by or results from fire, steam, electricity, gas, water or
rain, or from the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures,
or from any other cause, whether the said damage or injury results from
conditions arising upon the Premises or from other sources or places and
regardless of whether the cause of such damage or injury or the means of
repairing the same is inaccessible to Tenant unless caused by Landlord's
negligence.

11. DAMAGE OR DESTRUCTION.

            11.1 Definitions.

                  (a) "Premises Partial Damage" shall herein mean damage or
destruction to the Premises to the extent that the cost of repair is less than
twenty percent (20%) of the then replacement cost of the Premises.

                  (b) "Premises Total Destruction" shall herein mean damage or
destruction to the Premises to the extent that the cost of repair is twenty
percent (20%) or more of the then replacement cost of the Premises.

                  (c) "Insured Loss" shall herein mean damage or destruction
which was caused by an event required to be covered by the insurance described
in Paragraph 10, and sufficient insurance proceeds are available for repairs
free of any claim of the holder of a mortgage or deed of trust on the Premises.

            11.2 Partial Damage - Insured Loss. Subject to the provisions of
Paragraphs 11.4, 11.5 and 11.6, if at any time during the term of this Lease,
there is damage which is an Insured Loss and which falls into the classification
of Premises Partial Damage, then Landlord shall, unless Landlord's mortgagee
requires otherwise, at Landlord's expense, repair such damage (but not Tenant's
fixtures, equipment or tenant improvements unless the same have become a part of
the Premises pursuant to Paragraph 9 hereof) as soon as reasonably possible, and
this Lease shall continue in full force and effect. If the insurance proceeds
received by Landlord are not sufficient to effect such repair, Landlord shall
give notice to Tenant of the amount required in addition to the insurance
proceeds to effect such repair. Tenant shall contribute the required amount to
Landlord within ten (10) days after Tenant has received notice from Landlord of
the shortage in

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<PAGE>

the insurance. When Tenant shall contribute such amount to Landlord, Landlord
shall make such repairs as soon as reasonably possible and this Lease shall
continue in full force and effect. Tenant shall in no event have any right to
reimbursement for any such amount so contributed.

            11.3 Partial Damage - Uninsured Loss. Subject to the provisions of
Paragraphs 11.4, 11.5, and 11.6, if at any time during the term of this Lease
there is damage which is not an Insured Loss and which falls within the
classification of Premises Partial Damage, unless caused by a negligent or
willful act of Tenant (in which event Tenant shall make the repairs at Tenant's
expense), Landlord may at Landlord's option either (i) repair such damage as
soon as reasonably possible at Landlord's expense, in which event this Lease
shall continue in full force and effect, or (ii) give written notice to Tenant
within thirty (30) days after the date of the occurrence of such damage of
Landlord's intention to cancel and terminate this Lease, as of the date of the
occurrence of such damage. In the event Landlord elects to give such notice of
Landlord's intention to cancel and terminate this Lease, Tenant shall have the
right within ten (10) days after the receipt of such notice to give written
notice to Landlord of Tenant's intention to repair such damage at Tenant's
expense without reimbursement from Landlord, in which event this Lease shall
continue in full force and effect, and Tenant shall proceed to make such repairs
as soon as reasonably possible. If Tenant does not give such notice within such
ten (10) day period this Lease shall be cancelled and terminated as of the date
of the occurrence of such damage.

            11.4 Total Destruction. If at any time during the term of this Lease
there is damage, whether or not an Insured Loss, including destruction required
by any authorized public authority, which falls into the classification of
Premises Total Destruction, this Lease shall automatically terminate as of the
date of such total destruction.

            11.5 Damage Near End of Term.

                  (a) If at any time during the last year of the term of this
Lease, there is damage (whether or not an Insured Loss) which falls within the
classification of Premises Partial Damage, Landlord may at Landlord's option
cancel and terminate this Lease as of the date of occurrence of such damage by
giving written notice to Tenant of landlord's election to do so within thirty
(30) days after the date of occurrence of such damage.

                  (b) Notwithstanding Paragraph 11.5(a), in the event that
Tenant has an option to extent or renew this Lease, and the time within which
said option may be exercised has not yet expired, Tenant shall exercise such
option, if it is to be exercised at all, no later than twenty (20) days after
the occurrence of any Insured Loss falling within the classification of Premises
Partial Damage during the last year of the term of this Lease. If Tenant duly
exercises such option during said twenty (20) day period, Landlord shall, at
Landlord's expense repair such damage as soon as reasonably possible and this
Lease shall continue in full force and effect. If Tenant fails to exercise such
option during said twenty (20) day period then Landlord may, at Landlord's
option, terminate and cancel this Lease as of the expiration of said twenty (20)
day period by giving written notice to Tenant of Landlord's election to do so
within ten (10) days after the expiration of said twenty (20) day period,
notwithstanding any term or provision in the grant of option to the contrary.

            11.6 Abatement of Rent; Tenant's Remedies.

                  (a) In the event of damage described in Paragraphs 11.2 or
11.3, and Landlord or Tenant repairs or restores the Premises pursuant to the
provisions of this Paragraph 11, the rent payable hereunder, for the period
during which such damage, repair or restoration

                                       9
<PAGE>

continues, shall be abated in proportion to the degree to which Tenant's use of
the Premises is prevented. Except for abatement of rent, if any, Tenant shall
have no claim against Landlord for any loss or damage including, without
limitation, loss of business suffered by reason of any such damage, destruction,
repair or restoration.

                  (b) If Landlord shall be obligated to repair or restore the
Premises under the provisions of this Paragraph 11 and shall not commence such
repair or restoration within ninety (90) days after such obligations shall
occur, Tenant may at Tenant's option, cancel and terminate this Lease by giving
Landlord written notice of Tenant's election to do so at any time prior to the
commencement of such repair or restoration. In such event, this Lease shall
terminate as of the date of such notice.

            11.7 Termination - Advance Payments. Upon termination of this Lease
pursuant to this Paragraph 11, an equitable adjustment shall be made in advance
rental payments, if any, made by Tenant to Landlord. Landlord shall, in
addition, return to Tenant so much of Tenant's security deposit as has not been
applied by Landlord.

            11.8 Waiver. Tenant waives the provisions of any statutes which
relate to termination of leases when leased property is damaged, injured or
destroyed and agrees that such event shall be governed by the terms of this
Lease.

12. UTILITIES. Tenant shall pay for all water, gas, heat, light, power,
electricity, telephone and other utilities and services supplied to the
Premises, together with any taxes thereon. If any such services are not
separately metered to Tenant, Tenant shall pay a reasonable proportion to be
determined by Landlord in its sole discretion of all charges jointly metered
with other premises. Notwithstanding the generality of the foregoing, it is
understood and agreed also that Tenant will be obliged to pay for utilities as
part of its duties.

      In the event that Tenant requests Landlord to construct or cause to be
constructed any extension, expansion or modification of any utility facilities
presently in place or within the Premises, Tenant shall pay all rates and
charges of the utility company for provision of such facilities or services,
including rates, charges and un-refunded security deposits or development fees
which are incurred by reason of the failure to adequately utilize such
facilities or service. In the event that the utility company will enter into a
direct agreement with the Tenant for the nonstandard facilities or service,
Tenant shall do so and shall hold Landlord harmless from any and all costs,
expenses and claims arising out of such agreement. No such agreement which
results in any obligation of the Landlord or to the Premises shall be executed
by Tenant for a term exceeding the term of this Lease without the prior written
consent of Landlord, which shall not be unreasonably withheld.

13. ASSIGNMENT AND SUBLETTING.

            13.1 Landlord's Consent Required. Tenant shall not voluntarily or by
operation of law assign, transfer, mortgage, sublet or otherwise transfer or
encumber all or any part of Tenant's interest in this Lease or in the Premises,
without Landlord's prior written consent, which may not be unreasonably
withheld. Landlord shall issue a response to Tenant's request for consent
hereunder in a timely manner and any attempted assignment, transfer, mortgage,
encumbrance or subletting without such consent shall be void, and shall
constitute a breach of this Lease. Any assignee or sublessee must assume, in
full, the obligations of Tenant under this

                                       10
<PAGE>

Lease and under any other written agreement now or hereafter existing between
Landlord and Tenant.

            13.2 No Release of Tenant. Regardless of Landlord's consent, no
subletting or assignment shall release Tenant of Tenant's obligation or alter
the primary liability of Tenant to pay the rent and to perform all other
obligations to be performed by Tenant hereunder. The acceptance of rent by
Landlord from any other person shall not be deemed to be a waiver by Landlord or
any provision hereof. Consent to one assignment or subletting shall not be
deemed consent to any subsequent assignment or subletting. In the event of
default by any assignee of Tenant or any successor of Tenant, in the performance
of any of the terms hereof, Landlord may proceed directly against Tenant without
the necessity of exhausting remedies against said assignee. Landlord may consent
to subsequent assignments or subletting of this Lease or amendments or
modifications to this Lease with assignees of Tenant, without notifying Tenant,
or any successor of Tenant, and without obtaining its or their consent thereto,
and such action shall not relieve Tenant of liability under this Lease.

            13.3 Attorney's Fees. In the event Tenant shall assign or sublet the
Premise then Tenant shall pay Landlord's reasonable attorneys' fees incurred in
connection therewith.

14. DEFAULTS: REMEDIES.

            14.1 Defaults. The occurrence of any one or more of the following
events shall constitute a material default and breach of this Lease by Tenant:

(a)   the vacating or abandonment of the Premises by Tenant;

(b)   the failure by Tenant to make any payment of rent or any other payment
      required to be made by Tenant hereunder, as and when due, where such
      failure shall continue for period of twenty (20) days following notice;

(c)   the failure by Tenant to observe or perform any of the covenants,
      conditions or provisions of this Lease to be observed or performed by
      Tenant, other than described in paragraph (b) above, where such failure
      shall continue for a period of thirty (30) days after written notice
      thereof from Landlord to Tenant; provided, however, that if the nature of
      Tenant's default is such that more than thirty (30) days are reasonably
      required for its cure, then Tenant shall not be deemed to in default if
      Tenant commences such cure within said thirty (30) day period and
      thereafter diligently prosecutes such cure to completion;

(d)   (i) the making by Tenant of any general arrangement or assignment for the
      benefit of creditors; (ii) Tenant's becoming a "debtor" as defined in 11
      U.S.C. paragraph 101 or any successor statute thereto (unless, in the case
      of a petition filed against Tenant, the same is dismissed within sixty
      (60) days); (iii) the appointment of a trustee or receiver to take
      possession of substantially all of Tenant's assets located at the Premises
      or Tenant's interest in this Lease, where possession is not restored to
      Tenant within thirty (30) days; or (iv) the attachment, execution or other
      judicial seizure of substantially all of Tenant's assets located at the
      Premises, or of Tenant's interest in this Lease, where such seizure is not
      discharged within thirty (30) days; provided, however, in the event that
      any provision of this Paragraph 14.1(d) is contrary to any applicable law,
      such provision shall be enforceable only to the fullest extent permitted
      by law;

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<PAGE>

(e)   Tenant shall do, or permit anything to be done, which creates a lien upon
      the Premises or the Real Property which is not paid, discharged or bonded
      around within ten (10) days after such lien is recorded;

            14.2 Remedies. In the event of any such material default or breach
by Tenant, Landlord may, at any time thereafter, with or without notice or
demand and without waiving or limiting Landlord in the exercise of any right or
remedy which Landlord may have under this Lease, or otherwise at law or in
equity, by reason of such default or breach, exercise any one or more of the
following remedies:

(a)   re-enter the Premises and eject all persons therefrom, using all
      reasonable force necessary to do so, without liability to any person for
      damages sustained by reason of such re-entry. Retain or take possession
      of, and distrain, any property belonging to Tenant upon the premises
      pursuant to Landlord's applicable lien rights. Such Property may be
      removed and stored in a public warehouse or elsewhere at the cost of and
      for the account of Tenant, and Landlord shall in no event be liable for
      any damage or loss thereto; or

(b)   lock the doors to the Premises and exclude Tenant and all other persons
      therefrom (except those authorized by Landlord in its sole and absolute
      discretion); or

(c)   to institute suit against Tenant to collect each installment of rent or
      other sum owned hereunder as it becomes due or to enforce any other
      obligation under this Lease; or

(d)   with or without terminating the Lease, terminate Tenant's right to
      possession of the Premises by any lawful means, in which case Tenant shall
      immediately surrender possession of the Premises to Landlord and Landlord
      shall have the right to re-enter the Premises and remove all persons and
      property therefrom, using all force reasonably necessary for this purpose,
      without being guilty in any manner of trespass or conversion (any claim by
      reason of such re-entry being expressly waived); in such event Landlord
      shall be entitled to recover from Tenant all damages incurred by Landlord
      by reason of Tenant's default including, but not limited to, the cost of
      recovering possession of the Premises, the cost of special tenant
      improvements (beyond standard tenant finish) made for Tenant, expenses of
      reletting, including necessary renovation and alternation of the Premises
      and removal of special tenant improvements made for Tenant, reasonable
      attorney's fees, advertising expense, the costs of protecting and caring
      for the Premises while vacant, the cost of removing and storing Tenant's
      property, any real estate commission actually paid, the worth at the time
      of award by the court having jurisdiction thereof of the amount by which
      the unpaid rent for the balance of the term after the time of such award
      exceeds the amount of such rental loss for the same period that Tenant
      proves could be reasonably avoided; and that portion of any leasing
      commission paid by Landlord pursuant to Paragraph 16 applicable to the
      unexpired term of this Lease. All of the foregoing amounts shall become
      immediately due and payable from Tenant to Landlord upon a default, at
      Landlord's election, which may be exercised with or without the giving of
      notice;

(e)   maintain Tenant's right to possession, in which case this Lease shall
      continue in effect, whether or not Tenant shall have abandoned the
      Premises; in such event, Landlord shall be entitled to enforce all of
      Landlord's rights and remedies under this Lease, including, without
      limitation, the right to recover the rent as it becomes due hereunder and
      any other damages incurred by Landlord from time to time; notwithstanding
      that Landlord shall

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<PAGE>

      have maintained Tenant's right to possession or shall not have terminated
      the Lease for a default, Landlord may at anytime thereafter, upon notice
      to Tenant, terminate the Lease and/or Tenant's right to possession for
      such prior default;

(f)   pursue any other remedy now or hereafter available to landlord under the
      laws or judicial decisions of the State of Arizona.

      No such re-entry or taking of possession by Landlord shall be construed as
      an election on landlord's part to terminate or surrender this Lease,
      unless a written notice of such intention is then or thereafter served on
      Tenant.

      No failure by Landlord to insist upon the strict performance of any
      covenant, agreement, term or condition of this Lease, or to exercise any
      right or remedy consequent upon a breach thereof, and no acceptance of
      full or partial rent during the continuance of any such breach, shall
      constitute a waiver of any such breach or of such covenant, agreement,
      term or condition. No covenant, agreement, term or condition of this Lease
      to be performed or complied with by Tenant, and no breach thereof, shall
      be waived, altered, modified or terminated except by written instrument
      executed by Landlord. No waiver of any breach shall affect or alter this
      Lease, but each and every covenant, agreement, term and condition of this
      Lease shall continue in full force and effect with respect to any other
      then existing or subsequent breach thereof.

      If Tenant causes or threatens to cause a breach of any of the covenants,
      agreements, terms or conditions contained in this Lease, Landlord shall be
      entitled to obtain and retain all sums held by Tenant, by any trustee or
      in any account provided for herein, to enjoin such breach or threatened
      breach, and to invoke any right and remedy allowed at law or in equity or
      by statute or otherwise as though re-entry, summary proceedings and other
      remedies were not provided for in this Lease.

            14.3 Default by Landlord. Landlord shall not be in default unless
Landlord fails to perform obligations required of Landlord within a reasonable
time, but in no event later than sixty (60) days after written notice by Tenant
to Landlord and to the holder of any first mortgage or deed of trust covering
the Premises whose name and address shall have theretofore been furnished to
Tenant in writing, specifying wherein Landlord has failed to perform such
obligation; provided, however, that if the nature of Landlord's obligation is
such that more than sixty (60) days are required for performance, then Landlord
shall not be in default, if Landlord commences performance within such sixty
(60) day period and thereafter diligently prosecutes the same to completion. In
no event may Tenant terminate this Lease except as and when expressly provided
herein, and Tenant waives any statutes now or hereafter enacted which provide
otherwise.

            14.4 Late Charges. Tenant hereby acknowledges that late payment by
Tenant to Landlord of rent and other sums due hereunder will cause Landlord to
incur costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges and other administrative costs, and late
charges which may be imposed on Landlord by the terms of any mortgage or trust
deed covering the Premises. Accordingly, if any installment of rent or any other
sum due from Tenant shall not be received by Landlord or Landlord's designee
within twenty (20) days after such amount shall be due, then, without any
requirement for notice to Tenant (and notwithstanding any other remedy Landlord
may have hereunder), Tenant shall be obliged to pay

                                       13
<PAGE>

to Landlord, along with the delinquent amount, a late charge equal to six
percent (6%) of such overdue amount. The parties hereby agree that such late
charge represents a fair and reasonable estimate of the cost Landlord will incur
by reason of late payment by Tenant. Acceptance of such late charge by Landlord
shall in no event constitute a waiver of Tenant's default with respect to such
overdue amount, nor prevent Landlord from exercising any of the other rights and
remedies granted hereunder. In the event that a late charge is payable
hereunder, whether or not collected, for three (3) consecutive installments of
rent, then rent shall automatically become due and payable quarterly in advance,
rather than monthly, notwithstanding Paragraph 4 or any other provisions of this
Lease to the contrary. See also Paragraph 19 regarding interest on past-due
obligations.

15. CONDEMNATION. If the premises or any portion thereof are taken under the
power of eminent domain, or sold under the threat of the exercise of said power
(all of which are herein called "condemnation"), this Lease shall terminate as
to the part so taken as of the date the condemning authority takes title or
possession, whichever first occurs (the "Possession Date"). If more than 20% of
the floor area of the Premises is taken by condemnation, Landlord shall have the
right to terminate this Lease as of the Possession Date, by providing tenant
written notice of termination on or before the Possession Date. If more than 20%
of the floor area of the Premises is taken by condemnation, Tenant shall have
the right to terminate this Lease as of the Possession Date by giving Landlord
written notice of such election within ten (10) days after Landlord shall have
given Tenant written notice of such taking (or in the absence of such notice,
within ten (10) days after the condemning authority shall have taken title or
possession, which ever first occurs). In the event of such termination, both
Landlord and Tenant shall be released from further liability under the Lease. If
Landlord or Tenant does not terminate this Lease in accordance with the
foregoing, this Lease shall remain in full force and effect as to the portion of
the Premises remaining, except that the rent shall be reduced in the proportion
that the floor area of the Premises taken bears to the total floor area of the
Premises. If more than twenty-five (25%) of the Floor Area of the building in
which the Premises is located shall be taken by condemnation, or if the nature,
location or extent of any proposed taking or appropriation affecting the Real
Property is such that Landlord elects in good faith to demolish all or
substantially all of the building in which the Premises is located, then
Landlord shall have the right to terminate this Lease upon giving notice of
termination to Tenant at any time after such condemnation. In the event of such
termination, both Landlord and Tenant shall be released from any further
liability under this Lease. Any award for the condemnation of all or any part of
the Premises or the Real Property shall be the property of Landlord, whether
such award shall be made as compensation for diminution in value of the
leasehold or for the taking of the fee, or as severance damages; provided,
however, that Tenant shall be entitled to pursue against the condemning
authority but not against Landlord any award to which Tenant may be entitled
from such condemning authority for loss of or damage to Tenant's trade fixtures
and removable personal property. If this Lease is terminated, an equitable
adjustment shall be made concerning advance rent and any advance payments made
by Tenant to Landlord and Landlord shall, in addition, return to Tenant so much
of Tenant's security deposit as has not been applied by Landlord. In the event
that this Lease is not terminated by reason of such condemnation, Landlord shall
to the extent of severance damages received by Landlord, free of any claim of
the holder of a mortgage or deed of trust on the Premises, in connection with
such condemnation, repair any damage to the Premises caused by such condemnation
except to the extent that Tenant has teen reimbursed therefor by the condemning
authority. Tenant shall pay any amount in excess of such severance damages
required to complete such repair. Tenant hereby waives any statutory rights of
termination which may arise by reason of any partial taking of the Premises by
condemnation.

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<PAGE>

16. ESTOPPEL CERTIFICATE.

            (a) Tenant shall at any time upon not less than ten (10) days' prior
written notice from Landlord execute, acknowledge and deliver to Landlord a
statement in writing (i) certifying that this Lease is unmodified and in full
force and effect (or, if modified, stating the nature of such modifications and
certifying that this Lease, as so modified, is in full force and effect) and the
date to which the rent and other charges are paid in advance, if any; (ii)
acknowledging that there are not, to Tenant's knowledge, any uncured defaults on
the part of Landlord hereunder, or specifying such defaults if any are claimed;
(iii) acknowledging that the Premises are in the condition called for in the
Lease and all improvements have been satisfactorily completed; (iv)
acknowledging that Tenant has unconditionally accepted the Premises, is in
possession thereof, and no defense to the Lease enforcement exists; (v) agreeing
to provide any Landlord mortgagee with opportunity to cure defaults by the
Landlord; and (vi) agreeing not to amend, cancel or assign the Lease in
accordance with Paragraph 13 hereof without the prior written content of any
Landlord mortgagee.

            (b) If Landlord desires to finance, refinance or sell the Premises,
or any part thereof, Tenant hereby agrees to deliver to any lender or purchaser
designated by Landlord such financial statements of Tenant as may be reasonably
required by such lender or purchaser. Such statements shall include the past
three years' financial statements of Tenant. All such financial statements shall
be received by Landlord and such lender or purchaser in confidence and shall be
used only for the purposes herein set forth.

17. LANDLORD'S LIABILITY. The term "Landlord" as used herein shall mean only the
owner or owners at the time in question of the fee title in the Real Property,
and except as expressly provided in Paragraph 16, in the event of any transfer
of such title or interest, Landlord herein named (and in case of any subsequent
transfers then the grantor) shall be relieved from and after the date of such
transfer of all liability as respects Landlord's obligations thereafter to be
performed, provided that any funds in the hands of Landlord or the then grantor
at the time of such transfer, in which Tenant has an interest, shall be
delivered to the grantee. The obligations contained in this Lease to be
performed by Landlord shall, subject as aforesaid, be binding on Landlord's
successors and assigns only during their respective periods of ownership. Tenant
shall attorn to as Landlord succeeding to title in the Real Property, including
any successor to the interest of Landlord named herein.

18. SEVERABILITY. The invalidity of any provision of this Lease as determined by
a court of competent jurisdiction, shall in no way affect the validity of any
other provision hereof.

19. INTEREST ON PAST-DUE OBLIGATIONS. Except as expressly herein provided, any
amount due and payable hereunder to Landlord that is not paid when due shall
bear interest from the date due until paid at the rate of one (1) point over the
prime rate as set by the Wall Street Journal from time to tome. Payment of such
interest shall not excuse or cure any default by Tenant under this Lease.
Interest shall not be payable on late charges incurred by Tenant, nor on any
amounts upon which late charges are paid by Tenant.

20. TIME OF ESSENCE. Time is of the essence of each and every obligation and
duty under this Lease.

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<PAGE>

21. ADDITIONAL RENT. Any monetary obligations of Tenant to Landlord under the
terms of this Lease shall be deemed to be rent and shall be collectible as such.

22. INCORPORATION OF PRIOR AGREEMENTS: AMENDMENTS. This Lease contains all
agreements of the parties with respect to any matter mentioned herein. No prior
agreement, representation or understanding, whether oral or written, pertaining
to any such matter shall be effective. This lease may be modified in writing
only, signed by the parties in interest at the time of modification. Except as
otherwise stated in this Lease, Tenant hereby acknowledges that neither any real
restate broker involved in any manner with this transaction, nor the Landlord,
nor any employees or agents of any of said persons has made any oral or written
warranties or representations to Tenant relative to the condition or use by
Tenant of said Premises, and Tenant acknowledges that neither any real estate
broker involved in any manner with this transaction, nor the Landlord, nor any
employees or agents of any of said persons has made any oral or written
warranties or representations to Tenant relative to the condition or use by
Tenant of said Premises, and Tenant acknowledges that Tenant assumes all
responsibility regarding the Occupational Safety Health Act, the legal use and
adaptability of the Premises and the compliance thereof with all applicable laws
and regulations in effect during the term of this Lease, except as otherwise
specifically stated in this Lease.

23. NOTICES. Any notice required or permitted to be given hereunder shall be in
writing and may be given by personal delivery or by certified mail; and if given
personally or by mail, shall be deemed sufficiently given if addressed to Tenant
or to Landlord at the address noted below the signature of the respective
parties, as the case may be. Either party may, by notice to the other, specify a
different address for notice purposes, except that upon Tenant's taking
possession of the Premises, the Premises shall constitute Tenant's address for
notice purposes. A copy of all notices required or permitted to be given to
Landlord hereunder shall be concurrently transmitted to such other party or
parties at such addresses as Landlord may from time to time hereafter designate
by notice to Tenant. Any notice shall be deemed received upon hand delivery or
deposit into U.S. Mail. Tenant shall immediately notify Landlord of any of the
following:

(a)   any correspondence or communication from any governmental entity regarding
      the application of Environmental Laws to the Real Property or Tenant's
      operation on the Real Property;

(b))  any change in Tenant's operation on the Real Property that will change or
      has the potential to change Tenant's or Landlord's obligations or
      liabilities under Environmental Laws.

24. WAIVERS. No waiver by Landlord of any provision hereof shall be deemed a
waiver of any other provision hereof or of any subsequent breach by Tenant of
the same of any other provision. Landlord's consent to, or approval of, any act
shall not be deemed to render unnecessary to obtaining of Landlord's consent to
or approval of any subsequent act by Tenant. The acceptance of rent hereunder by
Landlord shall not be a waiver of any preceding breach by Tenant to pay the
particular rent so accepted, regardless of Landlord's knowledge of such
preceding breach at the time of acceptance of such rent.

25. RECORDING. In its discretion, Landlord shall have the right to record this
Lease; otherwise, neither this Lease nor any memorandum of this Lease shall be
publicly recorded or filed.

                                       16
<PAGE>

26. HOLDING OVER. If Tenant, with Landlord's consent, remains in possession of
the Premises or any part thereof after the expiration of the term hereof and
without executing a new lease therefor, such occupancy shall be a tenancy from
month to month at a rental in the amount of one hundred fifty percent (150%) of
the rent paid or payable during the last month of the term of this Lease, plus
all other charges payable hereunder and upon all the other provisions of this
Lease pertaining to the obligations of Tenant, but all options and rights of
first refusal, if any, granted under the terms of this Lease shall be deemed
terminated and be of no further effect during said month-to-month tenancy. If
Tenant, without Landlord's express written consent, remains in possession of the
Premises or any part thereof after expiration of the term hereof, Landlord may
re-enter and take possession of the Premises and have all other remedies set
forth in Paragraph 14.2, provided that in addition to such remedies (and not in
lieu thereof), (1) Tenant shall pay for each day of occupancy after expiration
of the term hereof a sum equal to two hundred percent (200%) of the monthly rent
for the last month of the term prorated on a daily basis based upon a thirty day
month; plus (2; any and all consequential and special damages incurred Landlord
as a result of Tenant's holdover without consent including, without limitation,
any consequential and special damages assessed against or paid by Landlord to a
subsequent tenant or prospective tenant.

27. CUMULATIVE REMEDIES. No remedy or election hereunder shall be deemed
exclusive but shall, wherever possible, be cumulative with all other remedies
hereunder or at law or in equity.

28. COVENANTS AND CONDITIONS. Each provision of this Lease performable by Tenant
shall be deemed both a covenant and a condition.

29. BINDING EFFECT: CHOICE OF LAW. Subject to any provisions hereof restricting
assignment or subletting by Tenant and subject to the provisions of Paragraph
18, this Lease shall bind the parties, their personal representatives,
successors and assigns. This Lease shall be governed by the laws of the State of
Arizona.

30. SUBORDINATION.

            (a) This Lease shall not be subordinate to any ground lease,
mortgage, deed of trust, or any other hypothecation of security now or hereafter
placed upon the Real Property of which the Premises are a part, and to any and
all advances made on the security thereof and to all renewals, modifications,
consolidations, replacements and extensions thereof.

            (b) Tenant agrees to execute any documents required to effectuate an
attornment or to make this Lease prior to the lien of any mortgage, deed of
trust or ground lease, as the case may be. Tenant '[s failure to execute such
documents within ten (10) days after written demand shall constitute a material
default by Tenant hereunder, or, at Landlord's option, Landlord shall execute
such documents on behalf of Tenant as Tenant's attorney-in-fact. Tenant does
hereby make, constitute and irrevocably appoint Landlord as Tenant's
attorney-in-fact and in Tenant's name, place and stead, to execute such
documents in accordance with this Paragraph 30(b). See also Paragraph 17
regarding attornment to successors in interest of the Landlord herein named.

31. ATTORNEYS' FEES. If either party brings an action to enforce or construe the
terms hereof or declare rights hereunder, the prevailing party in such action,
on trial or appeal, shall be entitled to have its reasonable attorneys' fees (as
fixed by the court) paid by the other party.

                                       17
<PAGE>

32. LANDLORD'S ACCESS. Landlord and Landlord's agents shall have the right to
enter the Premises at all reasonable times and from time to time for the purpose
of inspecting the same, showing the same to prospective purchasers, lenders, or
lessees, and making such alterations, repairs, improvements or additions to the
Premises or to the building of which they are part as Landlord may deem
necessary or desirable. Landlord may at any time place on or about the Premises
any ordinary "For Sale" signs, and Landlord may at any time during the last one
hundred twenty (120) days of the term hereof place on or about the Premises any
ordinary "For Lease" signs, all without rebate of rent or liability to Tenant.

33. AUCTIONS. Tenant shall not conduct, nor permit to be conducted, either
voluntarily or involuntarily, any auction upon the Premises without first having
obtained Landlord's prior written consent. Notwithstanding anything to the
contrary in this Lease, Landlord shall not be obliged to exercise any standard
of reasonableness in determining whether to grant such consent.

34. SIGNS. Tenant shall not place any signs upon the Premises without Landlord's
prior written consent (which shall not be unreasonably withheld), except that
Tenant shall have the right to place ordinary and usual for sublet signs
thereon. Tenant shall, after receiving Landlord's written consent, erect
appropriate signage in the Tenant's name and conformance with the applicable
sign ordinances and regulations.

35. MERGER. The voluntary or other surrender of this Lease by Tenant, or a
mutual cancellation thereof, or a termination by Landlord, shall not work a
merger and shall, at the option of Landlord, terminate all or any existing
subtenancies or may, at the option of Landlord, operate as an assignment to
Landlord of any or all of such subtenancies.

36. QUIET POSSESSION. Upon Tenant paying the rent for the Premises and observing
and performing all of the covenants, conditions and provisions on Tenant's part
to be observed and performed hereunder, Tenant shall have quiet possession of
the Premises for the entire term hereof, subject to all of the provisions of
this Lease. The individuals executing this Lease as, or on behalf of, Landlord
represent and warrant to Tenant that they are fully authorized and legally
capable of executing this Lease and that such execution is binding upon all
parties holding an ownership interest in the Premises.

37. SECURITY MEASURES. Tenant hereby acknowledges that the rental payable to
Landlord hereunder does not include the cost of guard service or other security
measures, and that Landlord shall have no obligation whatsoever to provide same.
Tenant assumes all responsibility for the protection of Tenant, its agents, its
employees and servants, its invitees and its property from acts of third
parties.

38. EASEMENTS. Landlord reserves to itself the right, from time to time, to
grant such easements, rights and dedications that Landlord deems necessary or
desirable, and to cause the recordation of appropriate plats or restrictions, so
long as such easements, rights, dedications, plats and restrictions do not
unreasonably interfere with the use of the Premises by Tenant. Tenant shall sign
any of the aforementioned documents upon request of Landlord, and failure to do
so shall constitute a material breach of this Lease.

                                       18
<PAGE>

39. AUTHORITY. Each individual executing this Lease on behalf of Tenant
represents and warrants that he or she is duly authorized to execute and deliver
this Lease on behalf of said Tenant.

40. EXTENSION OF TERM. Subject to the terms of this Paragraph 40, Tenant shall
have the option/right to extend the term of this Lease for four (4) additional
six (6) year terms under the same terms and conditions as set forth in this
Lease, except for those relative to basic rentals payable. During each six (6)
year option period, the monthly fixed rental payable for the option period shall
be an amount equal to he basic monthly rent for the initial three (3) year
period of the lease term adjusted to reflect any increase in the Consumer Price
Index (all items) published by the United States Labor Department for the last
month of the expiring term compared to the first month of the initial six (6)
year term.

In order to exercise the option to extend this Lease:

(1)   Tenant shall give to Landlord notice, in writing, of his intention to do
      so at least one hundred twenty (120) days prior to expiration of the
      original and any option period term of the Lease (and if Tenant shall fail
      to give such notice within the time limit, all rights granted to Tenant to
      renew or extend this Lease shall thereupon be null and void), and

(2)   Tenant shall be in good standing (there shall be no default) under this
      Lease, either at the time such notice is given or at any time thereafter
      until expiration of the original term.

      If Tenant shall exercise the option to extend the term as set forth
herein, then the minimum monthly fixed rental shall be determined as provided
herein.

      In any event, the basic monthly rental payable during each option period
shall be no less than the basic monthly rental payable during the first year of
the original term, increased to reflect the change in the Consumer Price Index
as described in the first Paragraph of this Article 40.

      LANDLORD AND TENANT HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH
TERM AND PROVISION CONTAINED HEREIN AND, BY EXECUTION OF THIS LEASE, SHOW THEIR
INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE
TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
AND EFFECTUATE THE INTENT AND PURPOSE OF LANDLORD AND TENANT WITH RESPECT TO THE
PREMISES.

      The parties hereto have executed this Lease on the dates specified
immediately adjacent to their respective signatures. LANDLORD:

IMARX INVESTMENTS L.L.C., an Arizona limited liability company

By: /s/ Evan Unger
    ------------------------
Its Principle

Executed on: 11/15/02

Address: 1635 E. 18th Street
         Tucson, AZ 85719

                                       19
<PAGE>

TENANT:

IMARX THERAPEUTICS, INC., a Delaware corporation

By: /s/ Evan Unger
    ------------------------
Its President and CEO

Executed on: 11-15-02

Address: 1635 E. 18th Street
         Tucson, AZ 85719

                                       20
<PAGE>

                                   EXHIBIT "A"

LEGAL DESCRIPTION

Res 161723 TO

PARCEL I.

Parcels 13 and 14 of CHERRY-CAMPBELL REDEVELOPMENT SUBDIVISION, per MAP recorded
in Book 11, Page 27 of Maps end Plats, in the office of the Pima County
Recorder. Pima County, Arizona.

- PARCEL 2:

Lots 10 and 11 in Block 6 of EASTLAND HEIGHTS, a subdivision of Pima County,
Arizona,. according to the map or plat thereof of record in the office of the
County Recorder of Pima County, Arizona, in nook 5 of Maps and Plats at Page 17
thereof.

EXCEPT from said Lot 10 that portion described as follows:.

BEGINNING at the Northwest Corner of said Lot 10;

THENCE North 89.08'58" East along the North line of said Lot 10 a distance of
37.10 [Bet:

THENCE South 26.I6'23"" West 81.84 feet. to the West line of said Lot 10:

THENCE North 00.45'23" West along the said West line a distance of 72.66 feet to
the

- POINT OF BEGINNING...

PARCEL 3:

Lot 15 of CHERRY-CAMPBELL REDEVELOPMENT, a subdivision of Pima County, Arizona,
according to the map or plat thereof of record in the office of the County
Recorder of Pima County, Arizona,. in Book 11 of Maps and Plats at Page 27
thereof.

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