Document:

Exhibit 4.3

                            SECOND AMENDMENT TO THE
                               RIGHTS AGREEMENT

         THIS SECOND AMENDMENT TO THE RIGHTS AGREEMENT (this "Amendment"),
dated as of September 16, 2001, is made by and between American Water Works
Company, Inc., a Delaware corporation (the "Company"), and Fleet National Bank
(formerly known as BankBoston N.A.), a national banking association, as Rights
Agent (the "Rights Agent"). The Company and the Rights Agent may be
individually referred to herein as a "Party" and, collectively, as the
"Parties".

                                  Background

          A. The Parties entered into a Rights Agreement, dated as of February
18, 1999, as amended by the First Amendment to the Rights Agreement, dated as
of June 1, 2000 (the "Agreement"). Capitalized terms not otherwise defined
herein shall have the meaning ascribed to such terms in the Agreement.

          B. The Company, RWE Aktiengesellschaft, a company organized under
the laws of the Federal Republic of Germany ("Guarantor"), Thames Water Aqua
Holdings GmbH, a company organized under the laws of the Federal Republic of
Germany and a wholly owned subsidiary of Guarantor ("Parent"), and Apollo
Acquisition Company, a Delaware corporation and a wholly owned subsidiary of
Parent ("Sub"), are entering into an Agreement and Plan of Merger, dated as of
the date hereof (as amended or supplemented from time to time, the "Merger
Agreement"), pursuant to which Sub shall be merged with and into the Company
with the Company surviving the merger.

          C. Parent and certain stockholders of the Company, in connection
with the Merger Agreement are entering into that certain Voting Agreement,
dated as of the date hereof (as amended or supplemented from time to time, the
"Voting Agreement").

          D. The Board of Directors of the Company has determined that an
amendment to the Rights Agreement as set forth herein is advisable and in the
best interests of the Company and its stockholders.

          E. Pursuant to Section 27 of the Agreement, the Company has directed
the Rights Agent to join this Amendment.

                                     Terms

         In consideration of the mutual covenants contained herein and in the
Agreement and intending to be legally bound hereby, the Parties agree as
follow:

          1. Amendment of Section 1(a). The definition of "Acquiring Person"
in Section 1(a) of the Agreement is hereby amended by adding the following at
the end thereof:

<PAGE>

               "(D) none of RWE Aktiengesellschaft, a company organized under
          the laws of the Federal Republic of Germany ("Guarantor"), Thames
          Water Aqua Holdings GmbH, a company organized under the laws of the
          Federal Republic of Germany and a wholly owned subsidiary of
          Guarantor and Apollo Acquisition Company, a Delaware corporation,
          and a wholly owned subsidiary of Parent ("Sub" and collectively with
          Guarantor and Parent, "Acquiror") nor any of their respective
          Affiliates or Associates shall be deemed to be an Acquiring Person
          solely by reason of the approval, execution, delivery and
          performance of the Agreement and Plan of Merger, dated as of
          September 16, 2001, by and among the Company, Guarantor, Parent and
          Sub (as amended or supplemented from time to time, the "Merger
          Agreement"), or the Voting Agreement, dated as of September 16, 2001
          by and among Parent and certain stockholders of the Company party
          thereto as of such date and the Willard M. Ware Q-Tip Trust and the
          Willard M. Ware Residual Trust at such time as they may become
          parties thereto (the "Voting Agreement") or the consummation of any
          other transaction to be effected thereby (including any acquisition
          of Company Common Stock contemplated by Section 4.03(b) of the
          Merger Agreement)."

          2. Amendment to Section 1(p). The definition of "Shares Acquisition
Date" in Section 1(p) of the Agreement is amended by inserting the following
sentence at the end thereof:

          "Notwithstanding anything in this Agreement to the contrary, a
          Shares Acquisition Date shall not be deemed to have occurred solely
          as the result of the public announcement, approval, execution,
          delivery and performance of the Merger Agreement or the Voting
          Agreement or the consummation of any other transaction to be
          effected thereby (including any acquisition of Company Common Stock
          contemplated by Section 4.03(b) of the Merger Agreement)."

          3. Amendment to Section 1(r). The definition of "Triggering Event"
in Section 1(r) of the Agreement is hereby deleted in its entirety and
replaced with the following:

               "(r) "Triggering Event" shall mean any Section 11(a)(ii) Event
          or Section 13 Event, provided that none of the approval, execution,
          delivery and performance of the Merger Agreement or the Voting
          Agreement or the consummation of any other transaction to be
          effected thereby (including any acquisition of Company Common Stock
          contemplated by Section 4.03(b) of the Merger Agreement) shall be
          deemed to be a Triggering Event."

          4. Amendment to Section 3(a). Section 3(a) of the Agreement is
hereby amended by inserting the following sentence immediately after the last
sentence thereof:

                                      2

<PAGE>

          "Notwithstanding anything in this Agreement to the contrary, a
          Distribution Date shall not be deemed to have occurred solely by
          reason of the approval, execution, delivery and performance of the
          Merger Agreement or the Voting Agreement or the consummation of any
          other transaction to be effected thereby (including any acquisition
          of Company Common Stock contemplated by Section 4.03(b) of the
          Merger Agreement)."

          5. Amendment to Section 11(a)(ii). Section 11(a)(ii) of the
Agreement is hereby amended by adding the following sentence at the end
thereof:

          "Notwithstanding anything in this Agreement to the contrary, none of
          the approval, execution, delivery and performance of the Merger
          Agreement or the Voting Agreement or the consummation of any other
          transaction to be effected thereby (including any acquisition of
          Company Common Stock contemplated by Section 4.03(b) of the Merger
          Agreement) shall cause the Rights to be adjusted or become
          exercisable in accordance with this Section 11(a)(ii)."

          6. Amendment to Section 13. The following Section 13(d) is hereby
added after Section (c):

               "(d) Notwithstanding anything contained in this Agreement to
               the contrary, in no event shall the provisions of this Section
               13 apply to the approval, execution, delivery and performance
               of the Merger Agreement or the Voting Agreement or the
               consummation of any other transaction to be effected thereby
               (including any acquisition of Company Common Stock contemplated
               by Section 4.03(b) of the Merger Agreement)."

          7. Additional Amendment. The following Section 35 is hereby added
after Section 34:

               "Section 35. Notwithstanding anything contained in this
               Agreement to the contrary, this Agreement and the Rights shall
               terminate and be of no further force and effect immediately
               prior to the Effective Time (as defined in the Merger
               Agreement)."

          8. Other Provisions Unaffected. This Amendment shall be deemed to be
in full force and effect immediately prior to the execution and delivery
of the Merger Agreement and the Voting Agreement. Except as expressly
modified herein, all arrangements, agreements, terms, conditions and
provisions of the Agreement remain in full force and effect, and this
Amendment and the Agreement, as hereby modified, shall constitute one and
the same instrument.

          9. Miscellaneous.
                                      3
<PAGE>

          a. Counterparts. This Amendment may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one
and the same instrument.

          b. Governing Law. This Amendment, the Agreement, each Right and each
Right Certificate issued hereunder or thereunder shall be deemed to be a
contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed and in accordance with the laws of such
State applicable to contracts to be made and performed entirely within such
State.

          c. Further Assurances. Each Party shall cooperate and take such
action as may be reasonably requested by another Party in order to carry out
the provisions and purposes of this Amendment, the Agreement, generally, and
the transactions contemplated hereunder and/or thereunder.

          d. Descriptive Headings. Descriptive headings of the several
Sections of this Amendment and the Agreement are inserted for convenience only
and shall not control or affect the meaning or construction of any of the
provisions hereof or thereof.

          e. Entire Agreement. This Amendment and the Agreement, and all of
the provisions hereof and /or thereof, shall be binding upon and inure to the
benefit of the Parties and their respective successors and permitted assigns
and executors, administrators and heirs. This Amendment, together with the
Agreement, sets forth the entire agreement and understanding among the Parties
as to the subject matter hereof and merges with and supercedes all prior
discussions and understandings of any and every nature among them.

          IN WITNESS WHEREOF, the Parties have executed this Second Amendment
to the Rights Agreement as the date first set forth above.

Attest:                                   AMERICAN WATER WORKS COMPANY, INC.

By:    /s/ W. Timothy Pohl                By:   /s/ J. James Barr
       ------------------------------        --------------------------------
       Name:  W. Timothy Pohl                Name:  J. James Barr
       Title:  General Counsel               Title:  President and Chief
                and Secretary                            Executive Officer

Attest:                                   FLEET NATIONAL BANK

By:    /s/ Erika Illingworth              By:   /s/ Joshua P. McGinn
       -------------------------------       --------------------------------
       Name:  Erika Illingworth              Name:  Joshua P. McGinn
       Title:  Account Manager               Title:  Senior Account Manager

                                      4<PAGE>

                                                                   EXHIBIT 10.89

                      DISTRIBUTION AND LICENSE AGREEMENT

     This DISTRIBUTION AND LICENSE AGREEMENT ("Agreement"), dated as of August
                                               ---------
31, 2001 ("Effective Date") is entered into by and between Baxter Healthcare
           --------------
Corporation, a Delaware corporation having its principal place of business at
One Baxter Parkway, Deerfield, Illinois 60015 ("Baxter"), and Nexell of
                                                ------
California, Inc., a Delaware corporation having its principal place of business
at Nine Parker, Irvine, California 92618 ("Nexell").
                                           ------

                                   RECITALS

A.   Nexell has certain rights in and to Products (as hereafter defined) and the
Licensed Intellectual Property (as hereafter defined) that are used in the ex
vivo cell therapies business.

B.   Baxter desires rights in and to such Products and Licensed Intellectual
Property in order to make, have made, use, import, distribute and sell such
Products in the Territory.

C.   Nexell has agreed to appoint Baxter as its exclusive distributor for the
Products and to license to Baxter certain rights in and to the Products and
Licensed Intellectual Property for the purposes set forth in this Agreement,
under the terms and conditions set forth in this Agreement.

D.   As an integral part of this Agreement, Nexell has granted to Baxter certain
rights of first offer with respect to Future Opportunities (as hereafter
defined), all as more fully described in this Agreement.

                                   AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, Baxter and Nexell hereby agree as follows:

1.   Definitions. As used herein, the following capitalized terms shall have the
following meanings:

     1.1  "Act" shall mean the Federal Food, Drug and Cosmetic Act, as may be
           ---
          amended from time to time.

     1.2  "Affiliate" of a party shall mean any entity (A) which directly or
           ---------
          indirectly through one or more intermediaries Controls, is Controlled
          by, or is under common Control with, the party or (B) fifty percent
          (50%) or more of the voting capital stock (or in the case of an entity
          which is not a corporation, fifty percent (50%) or more of the equity
          interest) of which is beneficially owned or held by a party or any of
          such party's Subsidiaries. The term "Control" means the possession,
          directly or indirectly, of the power to direct or cause the direction
          of the management policies of an entity (other than a natural person),
          whether through the ownership of voting capital stock, by contract or
          otherwise. For the avoidance of doubt, Nexell and its Affiliates shall
          not be considered Affiliates of Baxter.
<PAGE>

     1.3  "Asset Purchase Agreement"  shall mean the Asset Purchase Agreement
           ------------------------
          dated as of August 3, 2001 by and among Baxter, Nexell and Nexell
          Therapeutics Inc.

     1.4  "FDA" shall mean the United States Food and Drug Administration.
           ---

     1.5  "Future Opportunity" shall have the meaning set forth in Section 3.
           ------------------

     1.6  "License" shall have the meaning set forth in Section 2.
           -------

     1.7  "Licensed Intellectual Property" shall mean the Licensed Patents, the
           ------------------------------
          Licensed Cell Lines (as so identified on Schedule 1.7), and any
                                                   ------------
          copyrights or copyrightable works, all as set forth on Schedule 1.7,
                                                                 ------------
          and any non-patented and non-patentable technical information,
          specifications, inventions, processes and formulations, discoveries,
          trade secrets, know-how and technical data, and any other protectable
          property rights that are related thereto, that Nexell owns or
          otherwise has rights in or to, anywhere in the Territory.

     1.8  "Licensed Patents" shall mean the patents and patent applications,
           ----------------
          including any continuations, continuations-in-part, re-examinations,
          patents by addition, Supplemental Protection Certificates, patent term
          extensions, divisions, renewals, reissues and extensions thereof as
          set forth on Schedule 1.8.
                       ------------

     1.9  "Licensed Trademarks" shall mean the trademarks, trade names, service
           -------------------
          marks, domain names, trade dress, logos and other similar designations
          set forth on Schedule 1.9.
                       ------------

     1.10 "Manufacturing Facility" shall mean any production site selected by
           ----------------------
          Baxter for manufacture of the Products.

     1.11 "Net Sales" shall mean the actual invoiced amounts attributable to
           ---------
           Products that are received by Baxter (or an Affiliate of Baxter) from
           the first third party trade purchaser, less, whether or not such
           costs are invoiced separately, (i) amounts refunded or credits for
           Products which were rejected, spoiled, damaged, out-dated or
           returned, (ii) freight, shipment and insurance costs incurred in
           transporting Products, (iii) quantity, trade, cash and other
           discounts, rebates (including pursuant to governmental regulation),
           charge-backs, retroactive price reductions, credits or allowances
           allowed or taken, and (iv) Taxes, tariffs, customs duties and
           surcharges and other governmental charges incurred in connection with
           the sale, exportation or importation of the Products. The transfer of
           a Product by Baxter (or an Affiliate of Baxter) to another Affiliate
           of Baxter (or to Baxter) shall not be considered a sale; in such
           cases, Net Sales shall be determined based on the invoiced sales
           price by such Affiliate (or Baxter) to the first third party trade
           purchaser. In no event shall any amounts paid to Baxter or its
           Affiliates by Nexell or its Affiliates be considered Net Sales. The
           amount of Net Sales for any period shall be determined on the basis
           of sales recorded in the ordinary course on the books and records of
           Baxter (or Baxter's Affiliates) during such period in accordance with
           GAAP and past practices.

                                       2

<PAGE>

     1.12   "New Offer" shall have the meaning set forth in Section 3.
             ---------

     1.13   "Non-Compete Agreement" shall mean the Non-Competition and
             ---------------------
             Confidentiality Agreement, by and among Baxter, Nexell, and VIMRx
             Pharmaceuticals Inc., dated as of December 17, 1997, as amended.

     1.14   "Product Categories" shall mean the categories of Products set
             ------------------
            forth in Schedule 1.15.
                     -------------

     1.15   "Products" shall mean systems for the ex vivo selection of a desired
             --------
            human, nucleated cell type using a biological component, such as an
            antibody or modified antibody, a lectin, or a ligand to selectively
            and specifically bind to a particular molecule on the surface of the
            cells to be selected so as to confer specificity or selectivity for
            such cells in the cell selection process, or for genetic alteration,
            modification, activation and/or expansion in combination with such
            selection. The current Products are set forth in Schedule 1.15.
                                                             -------------

     1.16   "Regulatory Files" shall mean the regulatory files that relate to
             ----------------
            the Products which were sold to Baxter pursuant to the Asset
            Purchase Agreement, as set forth in Schedule 1.16.
                                                -------------

     1.17   "Sublicenses" shall mean the sublicense agreements set forth on
             -----------
            Schedule 1.17.
            -------------

     1.18   "Taxes" shall mean all taxes, including all federal, state, local,
             -----
            foreign and other income, franchise, sales, use, license, excise,
            employment, property, payroll, stamp, withholding, environmental,
            alternative or add-on minimum, ad valorem, value-added, VAT,
            transfer, stamp and other taxes, assessments, charges, duties, fees,
            levies or other governmental charges of any kind whatsoever, and all
            estimated taxes, deficiency assessments, additions to tax, penalties
            and interest, and any contractual or other obligation to indemnify
            or reimburse any person with respect to any such assessment.

     1.19   "Term" shall mean the Initial Term and any Renewal Term.
             ----

     1.20   "Territory" shall mean worldwide.
             ---------

2.   License. Nexell hereby grants to Baxter: (i) an exclusive (even as to
Nexell), worldwide license under the Licensed Intellectual Property to market
and sell the Products, and any components thereof; (ii) an exclusive (except as
to Nexell), worldwide license under the Licensed Intellectual Property to make,
have made and import the Products, and any components thereof; (iii) an
exclusive (even as to Nexell) worldwide license under the Licensed Intellectual
Property to use the Products and components solely for the distribution purpose
set forth in Section 5; and (iv) an exclusive (except as to Nexell), worldwide
license under the Licensed Intellectual Property for internal research and
development purposes (including clinical trials) to improve Products for Ex Vivo
Cell Processing (as such term is defined in the Non-Compete Agreement) (the
"License"). The foregoing license rights shall not include the right for Baxter
 -------
to use the Licensed Intellectual Property to practice Ex Vivo Cell Processing
commercially. Either party shall have the right to sublicense its rights
described in this Section 2, provided such party

                                       3

<PAGE>

has obtained the other party's prior written consent (such consent not to be
unreasonably withheld or delayed) and any such sublicensee agrees to be bound by
the terms and conditions of this Agreement and the Non-Compete Agreement (the
terms of which shall be binding upon any sublicensee in the same manner and to
the same extent such terms bind the applicable licensor).

3.   Right of First Offer. Baxter shall have a right of first offer with respect
to acquiring marketing, manufacturing, sales and distribution rights, and use
rights in connection therewith, for other systems developed or acquired by
Nexell which compete with the Products or which are useful for the selection or
isolation of cells using ligands which bind to such cells, or which are useful
for the culturing of such isolated or separated cells ("Future Opportunity"), in
                                                        ------------------
the event Nexell decides, in its sole discretion, to make a Future Opportunity
available to a third party. After Nexell notifies Baxter of a Future
Opportunity, Baxter will have sixty (60) days to respond to Nexell and to
negotiate the material terms and conditions of a license, with the right to
grant sublicenses, to make, have made, market, sell, distribute, import and use
such Future Opportunity prior to Nexell discussing the Future Opportunity with
any and all third parties. The terms and conditions of such license with regard
to any such Future Opportunity shall be negotiated by Nexell and Baxter,
bargaining in good faith, and documented in a written agreement, signed by
authorized representatives of both parties. If, after notice to Baxter and
expiration of sixty (60) days without completed negotiation of the material
terms of an agreement for a license, with the right to grant sublicenses, to
make, have made, market, sell, distribute, import and use such Future
Opportunity, Nexell desires to enter into an agreement on a Future Opportunity
with a third party on terms or conditions that are less favorable to Nexell than
the terms and conditions offered by or to Baxter in connection with Baxter's
right of first offer (a "New Offer"), then Nexell must give Baxter notice and an
                         ---------
additional thirty (30) days to respond to the offer on substantially the same
terms and conditions as those of the New Offer.

4.   Baxter Improvements. Any and all line extensions, modifications,
enhancements or replacements to the Products developed, generated or produced by
or on behalf of Baxter shall be Baxter's sole and exclusive property.

5.   Appointment; Distribution. Nexell hereby appoints Baxter as its exclusive
worldwide marketing, sales and distribution entity for the Products (or any
components thereof) anywhere in the Territory. Baxter accepts such an
appointment. In connection therewith, Baxter shall market, distribute and sell
the Products in the Territory; provided, however, that Baxter shall not be held
                               --------  -------
to "best efforts" as construed by judicial precedent under the Uniform
Commercial Code, but rather shall be required to use commercially reasonable
marketing, distribution and sales efforts which are consistent with its efforts
for products of a comparable marketing opportunity. To that effect, Baxter shall
maintain and utilize a competent and adequate staff, organization and facilities
to satisfy its obligations under this Agreement. If Baxter fails to use such
efforts as described herein with regard to any Product Category(ies) in any
country within the Territory, Nexell shall provide notice to Baxter of such
failure and allow Baxter the opportunity to cure such failure within thirty (30)
days after such notice or for such longer period as may be reasonably necessary
to cure such failure provided that Baxter is diligently proceeding in good faith
to cure such failure (the "Cure Period"). If Baxter does not cure such failure
within the Cure Period, Nexell's sole and exclusive remedy for such failure
shall be to terminate Baxter's exclusive distributorship with regard to such
affected Product Category(ies) within such country, at which time Baxter shall
become a non-exclusive worldwide marketing, sales and distribution

                                       4

<PAGE>

entity for such Product Category(ies) in such country. For the avoidance of
doubt, it is understood that Baxter shall not be liable for any monetary damages
or any other liability or obligation with respect to any such failure under this
Section 5.

6.   Term. The term of this Agreement shall commence upon the Effective Date and
continue thereafter for a period of ten (10) years ("Initial Term"). This
                                                     ------------
Agreement shall automatically renew for successive periods of five (5) years
(each a "Renewal Term") under the same terms and conditions set forth herein,
         ------------
unless Baxter, at least sixty (60) days prior to the expiration of the Initial
Term or then-current Renewal Term, elects to:

     6.1  terminate this Agreement; or

     6.2  provide Nexell notice that it desires to be a non-exclusive
          distribution entity rather than an exclusive distribution entity with
          regard to any or all of the Product Categories in any countries in the
          Territory (in which case the Agreement shall renew under the terms of
          such modified distribution license).

7.   Royalties; Reports; Payment of Royalties.

     7.1  Royalties. For all Products sold by Baxter or any Affiliate of Baxter
          ---------
          during the Initial Term, or during any Renewal Term for which Baxter
          is the exclusive distributor, Baxter will pay to Nexell an earned
          royalty of two percent (2%) of the Net Sales of such Products;
          provided, however, that Baxter shall only have an obligation to pay
          --------  -------
          such royalties for those Products set forth on Schedule 1.15 or that
                                                         -------------
          use the Licensed Patents, the Licensed Cell Lines or the Licensed
          Trademarks. For all Products sold by Baxter or any Affiliate of Baxter
          during any Renewal Term for which Baxter is a non-exclusive
          distributor, Baxter will pay to Nexell an earned royalty of one
          percent (1%) of the Net Sales of such Products; provided, however,
                                                          --------  -------
          that Baxter shall only have an obligation to pay such royalties for
          those Products set forth on Schedule 1.15 or that use the Licensed
                                      -------------
          Patents, the Licensed Cell Lines or the Licensed Trademarks.

     7.2  Reports.
          -------

          A.   Quarterly Reports. Baxter agrees to make written reports to
               -----------------
               Nexell quarterly, within sixty (60) days following the end of
               each calendar quarter during the Term, identifying in each such
               report Baxter's worldwide Net Sales of Products during the
               preceding calendar quarter and the amount of royalty due.
               Calendar quarters shall begin on January 1, April 1, July 1, and
               October 1 of each year. The first such report shall include all
               such sales granted between the Effective Date and the end of the
               quarter that follows the Effective Date.

          B.   Final Report. Baxter agrees to make a last written report to
               ------------
               Nexell within sixty (60) days after the Term for worldwide Net
               Sales of Products by Baxter upon which royalties are payable
               hereunder but which were not previously reported. The obligation
               to make reports and pay royalties shall terminate upon
               termination of this Agreement, except that royalties

                                       5

<PAGE>

               accrued but not paid prior to such termination shall be payable
               with the last written report of this Section 7.2B.

          C.   Audit.  During the Term and for one (1) year thereafter, Baxter
               -----
               agrees to keep records of all worldwide Net Sales of Products by
               Baxter in sufficient detail to enable the royalties paid
               hereunder to be determined. Nexell may audit Baxter's books and
               records of the other for the purpose of determining compliance
               with the terms of this Section 7. Nexell may use independent
               outside auditors (who may participate fully in such audit). In
               the event that an audit is proposed with respect to Baxter's
               proprietary information ("Restricted Information"), then on the
                                         ----------------------
               written demand of Baxter the individuals conducting the audit
               with respect to the Restricted Information will be limited to
               Nexell's independent auditors. In such event, Baxter shall pay
               the costs of the independent auditors conducting such audit, but
               only with respect to that portion of the audit relating to the
               Restricted Information. Such independent auditors shall enter
               into an agreement with Baxter, on terms that are agreeable to the
               parties, under which such independent auditors shall agree to
               maintain the confidentiality of the information obtained during
               the course of such audit and establishing what information such
               auditors will be permitted to disclose in reporting the results
               of any audit of Restricted Information. Any such audit shall be
               conducted during regular business hours in a manner that does not
               interfere unreasonably with the operations of Baxter. The
               aggregate number of audits of Baxter's books and records
               conducted under this Section 7 shall not exceed one (1) financial
               audit in any twelve (12) month period unless the next preceding
               audit disclosed a failure to conform to the terms of this Section
               7. Subject to the foregoing limitations, any such audit shall be
               conducted when requested by notice given not less than thirty
               (30) days prior to the commencement of the audit. If by such
               audit Nexell discovers unauthorized activities, or if the amount
               of the royalties due set forth in the auditor's report deviates
               by more than ten percent (10%) from the amount of royalties due
               reported by Baxter for the same period, Baxter shall reimburse
               Nexell for the cost of the audit. Any disputes arising out of an
               audit performed hereunder shall be submitted by the parties to an
               accounting firm acceptable to both Baxter and Nexell (or, if they
               cannot agree on such selection, a national (big five) accounting
               firm will be selected by lot after eliminating Baxter's and
               Nexell's regular outside firm of auditors) and the firm so
               selected (the "Arbitrator") shall be directed by Baxter and
                              ----------
               Nexell to review the items in dispute as promptly as reasonably
               practicable and, upon completion of such review, to deliver
               written notice to each of Baxter and Nexell setting forth the
               Arbitrator's resolution of each disputed item. The Arbitrator's
               review shall be conducted in accordance with the Commercial
               Arbitration Rules of the Center for Public Resources and the
               Arbitrator's determination shall be final and binding on the
               parties hereto. The place for such arbitration shall be Chicago,
               Illinois, or at such other place as may be agreed upon by Baxter
               and Nexell.

                                       6

<PAGE>

     7.3  Payment of Royalties. Together with each report referred to in Section
          --------------------
          7.2 hereof, Baxter shall pay to Nexell the applicable royalties due as
          specified in this Section 7 for the worldwide Net Sales of Products
          covered by the report. Nexell acknowledges that royalties may, under
          certain circumstances, be set-off by Baxter pursuant to the Asset
          Purchase Agreement or Section 19.2 of this Agreement.

8.   Installation, Training and Maintenance.

     8.1  Operator Training. Nexell will develop, publish and revise as needed
          -----------------
          all technical operational materials (for example, operator manuals)
          relating to the Products. Further, Nexell shall train Baxter personnel
          as reasonably requested by Baxter free of charge.

     8.2  Installation and Maintenance. Baxter will be responsible for the
          ----------------------------
          installation and servicing of the Products, as well as customer
          training. Baxter will also be responsible for customer support,
          including customer phone hotline coverage to handle customer inquiries
          and complaints. In addition, Baxter will offer to customers service
          and maintenance contracts for Products for post-warranty servicing of
          the Products.

9.   Regulatory Responsibility.

     9.1  Baxter Responsibilities.  Baxter will maintain, in compliance in all
          -----------------------
          material respects with applicable law, all Regulatory Files related to
          the Products and components thereof. For any products that Baxter may
          distribute and sell to third parties in connection with the Products,
          Baxter shall maintain all regulatory files relating to such products
          and Baxter shall have full responsibility with regard to such
          regulatory files. Baxter agrees to grant Nexell Right of Reference
          and/or any other rights available under FDA regulations or policies to
          allow Nexell to cross-reference the regulatory files. In addition,
          Baxter shall provide Nexell with reasonable access to and a copy of
          such portions of its regulatory files relating to the Products as
          Nexell shall reasonably request.

     9.2  Nexell Responsibilities. Nexell shall promptly forward product
          -----------------------
          complaints received on Products to Baxter. In addition, Nexell shall
          cooperate, as mutually agreed by the parties, in Baxter's
          administration of mandatory notifications, repairs, replacements and
          refunds, safety alerts, "cease distribution and notification" and
          mandatory recall actions, voluntary recalls, market withdrawals and
          stock recoveries, and device removals and corrections, as defined or
          understood under law or FDA policy, or related or analogous actions
          involving the Products.

     9.3  Ongoing Compliance. Each party agrees to comply in all material
          ------------------
          respects with the requirements of the FDA, any state, local or other
          regulatory authority, or any analogous authority outside the United
          States, which in each case relates to the Products.

                                       7

<PAGE>

     9.4  Matched Donor Recipient Clinical Trial. With respect to the matched
          --------------------------------------
          donor recipient clinical trial, Baxter shall determine, in its sole
          discretion, whether such clinical trial shall be continued and/or
          completed. In the event Baxter determines to continue such clinical
          trial, Baxter may elect to complete the clinical phase of such trial
          at its own expense (which the parties agree will involve monitoring,
          data collection, data compilation, data analysis, regulatory file
          preparation and regulatory file submissions). In the alternative,
          Baxter may elect to designate all or any portion of the tasks required
          to complete the clinical phase of such trial to Nexell (in which case
          Nexell would be reimbursed for its actual, reasonable costs associated
          with performing the required work in accordance with a separate
          agreement to be negotiated by the parties).

10.  Intentionally Omitted.

11.  Customer Feedback. As either party develops, surveys or otherwise receives
feedback from customers, operators and others relative to the Products, it will
share the results and data obtained with the other. The parties may choose to
jointly seek customer feedback or use similar data to agree upon changes or
improvements to the Products, to the delivery, installation and maintenance of
the Products, to the training of operators or to the technical presentation of
the Products. Notwithstanding anything to the contrary set forth herein, Nexell
shall not have the right to access any Baxter customers independently of Baxter
with regard to any customer complaints or sales and marketing activities as such
relates to the Products.

12.  Non-Compete Agreement. Baxter and its Affiliates shall be permitted to
exercise all rights granted to Baxter hereunder to their fullest extent, subject
to the Non-Compete Agreement. In connection therewith, in order to permit Baxter
to exercise all rights granted to it under this Agreement, the first sentence in
the first paragraph after 2.1(b) shall be replaced in its entirety with the
following: "for therapeutic purposes such as cellular or gene therapy, except as
Baxter is permitted to manufacture, supply, market, import, distribute, use and
sell Products of the Business pursuant to the Distribution License Agreement,
the Sublicense Agreements and the Supply Agreement." The Non-Compete Agreement
shall be deemed to have been amended accordingly.

13.  Trademarks. Nexell hereby grants to Baxter an exclusive (even as to
Nexell), worldwide fully paid-up license to use the Licensed Trademarks in
connection with Baxter's manufacturing, marketing, selling, importing, use and
distribution of the Products; provided that Baxter's use of the Licensed
                              --------
Trademarks shall be in accordance with the quality control standards and other
guidelines issued by Nexell and delivered to Baxter hereunder. From time to
time, Nexell shall have the right to review and evaluate the activities
performed and the Products distributed by Baxter using the Licensed Trademarks
for purposes of ensuring that Nexell's guidelines are being adhered to and that
the good will associated with the Licensed Trademarks is not being adversely
affected by Baxter. Except as set forth herein, neither party shall use the
other party's

                                       8

<PAGE>

trademarks, trade names, service marks, logos or other company identifiers
without such party's prior written approval. Neither party shall at any time
assert any claim to any good will, reputation or ownership of the other party's
trademarks, trade names service marks, logos or other company identifiers.
Neither party shall use any trademarks, trade names, service marks, logos or
other company identifiers that are confusingly similar to the other party's
trademarks, trade names, service marks, logos or other company identifiers.
Nothing in this Agreement or any other agreement referenced herein shall imply
or grant Nexell any rights to any Baxter trademarks, trade names, service marks,
logos or other company identifiers. Any use of a Baxter trademark, trade name,
service mark, logo or other company identifier shall inure to the benefit of
Baxter. Any use of a Licensed Trademark shall inure to the benefit of Nexell.

14.  Label Copy. The parties acknowledge and agree that Nexell has provided all
specifications for labeling, product inserts and packaging for the Products
covered under the Regulatory Files prior to the Effective Date.

15.  Interest on Overdue Payments. Interest shall accrue and be payable on all
overdue payments owing by a party under this Agreement from the date due at the
rate of one and one-half percent (1.5%) per month (or the highest rate allowed
by law, if lower), compounded annually, until fully paid (including full payment
of such interest).

16.  Foreign Currency Conversion. Where calculations of any payments required
hereunder relate to currency other than United States dollars, all such
calculations shall be made pursuant to Baxter's then current, accounting
policies and practices, as consistently applied.

17.  Enforcement of Licensed Intellectual Property Rights. Baxter and Nexell
shall each, promptly, but in no event no later than ten (10) days after receipt
of notice thereof, notify the other of any patent nullity actions, oppositions,
reexaminations, any declaratory judgment actions or any alleged or threatened
infringement of patents or patent applications or misappropriation or violation
of any Licensed Intellectual Property or Licensed Trademark, or if Baxter or
Nexell, or any of their respective Affiliates, shall be named as a defendant in
a legal proceeding by a third party alleging infringement, misappropriation or
violation of a patent or other intellectual property right as a result of the
manufacture, production, use, distribution or sale of any Product or of any
other information or notification regarding the Licensed Intellectual Property
or Licensed Trademarks.

     17.1   Baxter and Nexell shall cooperate in any action taken by a third
            party solely involving a nullity action, opposition, reexamination
            or any other action taken by such third party alleging the
            invalidity or unenforceability of any Licensed Intellectual Property
            or any Licensed Trademark. Both parties agree to share equally in
            the cost of the defense of such Licensed Intellectual Property or
            Licensed Trademarks.

     17.2   Baxter shall have the first right to respond to, defend or prosecute
            any actions taken to defend any alleged or threatened infringements,
            misappropriations or any other violations by a third party of
            Baxter's rights under the License granted in Section 2. It is
            understood that such action may include defending against a nullity
            action or similar action or causes of action taken by such third
            party in such proceedings or actions. Nexell agrees to cooperate
            with Baxter and its legal counsel, join in suits or actions that may
            be brought by Baxter, at Baxter's request, allow itself to be named
            as a party, at Baxter's request, and be available at Baxter's
            reasonable request to be an expert witness or otherwise to assist in
            such proceedings. If Baxter elects to respond to, defend, prosecute
            or settle any

                                       9

<PAGE>

            such actions, challenges, infringements, misappropriations or
            proceedings by a third party alleging infringement, misappropriation
            or violation of Baxter's rights as described above then: (i) Baxter
            shall bear all legal fees and other costs and expenses associated
            with such response or defense, including those incurred by Nexell at
            Baxter's request; and (ii) Baxter shall keep all amounts recovered
            from third parties in connection with such response or defense.
            Furthermore, Baxter shall have the right to license such Licensed
            Intellectual Property or Licensed Trademarks in connection with any
            settlement of any such claim, with the prior written consent of
            Nexell (such consent not to be unreasonably withheld or delayed).
            Baxter shall have six (6) months to elect to respond to, defend or
            prosecute any such allegations of infringement, misappropriation or
            violation of rights. If Baxter declines to respond to, defend or
            prosecute any such action within such six (6) month period, then
            Nexell shall have the right to elect to bring any necessary action
            to defend or prosecute any such allegations of infringement,
            misappropriation or violation of rights. Notwithstanding the
            foregoing, it is understood that nothing contained in this Section
            17.2 shall limit, impose any additional obligation on or otherwise
            alter Nexell's obligation to indemnify Baxter under Section 19.2.

     17.3   For any such actions against a third party alleging any
            infringement, misappropriation or violation of rights that are not
            included under the rights granted to Baxter under the License,
            Nexell shall have six (6) months to elect to respond to, defend or
            prosecute any such allegations of infringement, misappropriation or
            violation of rights. If Nexell declines to make any such election
            within such six (6) month period, then Nexell hereby grants Baxter
            automatically the exclusive right to elect to bring any necessary
            action to defend or prosecute any such allegations of infringement,
            misappropriation or violation of rights. If Baxter elects to do so,
            then Nexell's license grant to Baxter under Section 2 shall be
            deemed to be amended to include an exclusive license to take
            whatever actions are necessary for Baxter (and solely for the
            purpose of the foregoing) to respond to, defend or prosecute any
            such actions to enforce such rights. In connection therewith, Nexell
            agrees to cooperate with Baxter and its legal counsel, join in suits
            or actions that may be brought by Baxter, at Baxter's request, allow
            itself to be named as a party, at Baxter's request, and be available
            at Baxter's reasonable request to be an expert witness or otherwise
            to assist in such proceedings. Baxter shall bear all legal fees and
            other costs and expenses associated with such response or defense,
            including those incurred by Nexell at Baxter's request, and Baxter
            shall keep all amounts recovered from third parties in connection
            with such response or defense. Furthermore, Baxter shall have the
            right to license such Licensed Intellectual Property or Licensed
            Trademarks in connection with any settlement of any such claim, with
            the prior written consent of Nexell (such consent not to be
            unreasonably withheld or delayed). Notwithstanding the foregoing, it
            is understood that nothing contained in this Section 17.3 shall
            limit, impose any additional obligation on or otherwise alter
            Nexell's obligation to indemnify Baxter under Section 19.2.

18.  Warranties.

                                      10

<PAGE>

     18.1   General.  Each party represents and warrants to the other that: (A)
            -------
            all corporate action necessary for the authorization, execution and
            delivery of this Agreement by such party and the performance of its
            obligations hereunder has been taken; (B) the execution, delivery
            and performance of this Agreement do not violate or conflict with
            any law applicable to it, any provision of its charter or bylaws,
            any order or judgment of any court or other agency of government
            applicable to it or any of its assets or any contractual restriction
            binding on or affecting it or any of its assets; and (C) its
            obligations hereunder constitute its legal, valid and binding
            obligations, enforceable in accordance with their respective terms
            (subject to applicable bankruptcy, reorganization, insolvency,
            moratorium or similar laws affecting creditors' rights generally and
            subject, as to enforceability, to equitable principles of general
            application (regardless of whether enforcement is sought in a
            proceeding in equity or at law)).

     18.2   Products and Licensed Intellectual Property Warranty.  Nexell
            ----------------------------------------------------
            warrants to Baxter that (A) the Products set forth on Schedule 1.15
                                                                  -------------
            do not infringe, misappropriate or violate the intellectual property
            of any entity; and (B) the Licensed Intellectual Property and the
            Licensed Trademarks, together with the Sublicenses, constitute all
            of the intellectual property that Nexell owns or otherwise has
            rights in or to that are necessary or desirable to make, have made,
            market, sell, import and use the Products, or any components
            thereof, as permitted to be used by Baxter under this Agreement
            anywhere in the Territory. Nexell agrees that if there are any
            additional rights in any patents, know-how, trademarks, or any other
            intellectual property that Baxter needs to fully exercise its
            license rights granted under Section 2 with regard to the Products
            set forth on Schedule 1.15, such rights shall be deemed to be
                         -------------
            included in the license granted under Section 2.

19.  Indemnification.

     19.1   Baxter's Indemnity.  Baxter shall indemnify Nexell and hold it
            ------------------
            harmless from any liability, loss, expense, cost, claim or judgment
            arising out of any claim for property damage, personal injury or
            death that is caused by (A) Baxter's failure to manufacture the
            Products in accordance with their applicable specifications; (B)
            Baxter's failure to meet its obligations with respect to its
            regulatory responsibilities set forth in Section 9, or which arises
            out of Baxter's performance of service contracts or sales and
            marketing activities performed by Baxter personnel; (C) defects in
            any specifications for labeling for Products covered under the
            Regulatory Files; provided that any such defect was caused by a
            change, by Baxter, of such specifications for labeling after the
            Effective Date; or (D) any negligent acts or omissions of Baxter in
            connection with its performance under this Agreement. At Baxter's
            expense, Nexell shall cooperate fully with Baxter in defending or
            otherwise resolving any such claim. Baxter shall have full control
            of any litigation brought against Nexell with respect to any claim
            that is indemnifiable by Baxter hereunder; but Nexell may, at its
            expense, also be represented by its own counsel in any such
            litigation. If Baxter elects not to assume control of such
            litigation, Nexell may assume and control the defense of such claim.

                                       11
<PAGE>

     19.2   Nexell's Indemnity.  Nexell shall indemnify Baxter and hold it
            ------------------
            harmless from any liability, loss, expense, cost, claim or judgment
            arising out of any claim for property damage, personal injury or
            death that is caused by (A) defects in the design, specifications,
            or product drawings/blueprints provided by Nexell for the Products
            set forth on Schedule 1.15, or resulting from the use of the
                         -------------
            Products set forth on Schedule 1.15 in accordance with the
                                  -------------
            specification for labeling provided by Nexell; (B) defects in
            specifications for any labeling for Products covered under the
            Regulatory Files; provided, however, that, Nexell shall only have an
                              --------  -------
            obligation with respect to the specifications for any labeling for
            such Products as such existed as of the Effective Date; (C) Nexell's
            failure to meet its obligations with respect to its regulatory
            responsibilities set forth in Section 9; (D) any negligent acts or
            omissions of Nexell in connection with its performance under this
            Agreement; or (E) any negligent acts or omissions of Nexell with
            regard to any customers of Baxter. Furthermore, Nexell shall
            indemnify Baxter and hold it harmless from any liability, loss,
            expense, cost, claim or judgment arising out of any breach of
            Section 18.2. Notwithstanding anything contained in this Agreement
            to the contrary, it is understood that Baxter may recover any
            indemnification payment due from Nexell pursuant to the foregoing
            sentence by retaining and setting off any amounts due or to become
            due from Baxter to Nexell pursuant to Section 7. At Nexell's
            expense, Baxter shall cooperate fully with Nexell in defending or
            otherwise resolving any such claim. Baxter shall have full control
            of any litigation brought against Baxter with respect to any claim
            that is indemnifiable by Nexell hereunder. If Baxter elects not to
            assume control of such litigation, Nexell may assume and control the
            defense of such claim.

     19.3   Exclusions. Notwithstanding anything to the contrary set forth in
            ----------
            Sections 19.1 and 19.2, neither party shall be required to indemnify
            the other party under Section 19.1 or 19.2, as applicable, to the
            extent any claim is caused by the other party's negligent acts or
            omissions.

20.  Limitation of Liability. IN NO EVENT, WHETHER AS A RESULT OF BREACH OF
CONTRACT, TORT LIABILITY (INCLUDING NEGLIGENCE), OR OTHERWISE, SHALL EITHER
PARTY BE LIABLE TO THE OTHER PARTY FOR ANY SPECIAL, PUNITIVE, EXEMPLARY OR
LIQUIDATED DAMAGES.

21.  General Provisions.

     21.1   Force Majeure. Neither party to this Agreement shall be liable for
            -------------
            delay or failure in the performance of any of its obligations
            hereunder if such delay or failure is due to causes beyond its
            reasonable control, including acts of God, fires, earthquakes,
            strikes and labor disputes, acts of war, civil unrest or
            intervention of any governmental authority, but any such delay or
            failure shall be remedied by such party as soon as is reasonably
            possible. A party's lack of financial resources to effect its
            performance hereunder shall not be considered a force majeure event.

     21.2   Foreign Government Approval or Registration. If this Agreement or
            -------------------------------------------
            any associated transaction is required by the law of any nation to
            be either approved or

                                       12
<PAGE>

            registered with any governmental authority, or any agency or
            political subdivision thereof, Baxter shall assume all legal
            obligations to do so. In connection therewith, Nexell shall
            cooperate and assist with all reasonable requests by Baxter.

     21.3   Notices.  All notices required under this Agreement shall be in
            -------
            writing, and all such notices and other written communications
            (including purchase orders) shall be delivered either by hand, by a
            nationally recognized overnight delivery service (with delivery
            charges prepaid), by first class, registered or certified United
            States mail (postage prepaid), or by facsimile transmission
            (provided that in the case of facsimile transmission, a confirmation
            copy of the notice shall be delivered by hand, by a nationally
            recognized overnight delivery service (with charges prepaid), or by
            first class, registered or certified United States mail (postage
            prepaid) within two (2) days of facsimile transmission), addressed
            to each party as follows:

            If to Baxter, such notices shall be delivered to:

            Baxter Healthcare Corporation
            One Baxter Parkway
            Deerfield, Illinois 60015
            Attention: Cindy Collins - General Manager
            Telecopy:  (847) 948-4684

            With copies to:

            Baxter Healthcare Corporation
            P.O. Box 15210
            Irvine, California  92623-5210
            Attention: Michael Schiffer, Esq. - Chief Patent Counsel
            Telecopy:  474-6330

            Baxter Healthcare Corporation
            One Baxter Parkway
            Deerfield, Illinois 60015
            Attention: Thomas Sabatino, Esq. - General Counsel
            Telecopy:  (847) 948-2450

            If to Nexell, such notices shall be delivered to:

            Nexell of California, Inc.
            Nine Parker
            Irvine, California 92618
            Attention: President and CEO
            Telecopy:  (949) 470-6645

                                       13
<PAGE>

            With a copy to:

            Bryan Cave LLP
            700 Thirteenth Street, N.W.
            Washington, D.C. 20005
            Attention: Eric F. Stoer, Esq.
            Telecopy: (202) 508-6200

            and to:

            Nexell Therapeutics Inc.
            Nine Parker
            Irvine, California 92618
            Attention: Chairman
            Telecopy:  (949) 470-6645

            or such other address as any such party may designate in writing and
            delivered to the other party hereto pursuant to this Section 21.3.
            All such notices or other written communications shall be deemed to
            have been received by the addressee if delivered by: hand or by a
            nationally recognized overnight delivery service (with delivery
            charges prepaid) at the time of delivery; by first class, registered
            or certified United States mail (postage prepaid), three (3)
            business days after delivery thereof to the United States Postal
            Service; or by facsimile transmission, at the time of transmission.

     21.4   Choice of Law and Jurisdiction. This Agreement shall be governed by
            ------------------------------
            and construed in accordance with the internal laws of the State of
            Delaware, without application of conflicts of law principles, and,
            subject to Section 21.11, each party hereby submits to the
            jurisdiction and venue of any state or federal court in the State of
            Delaware. To the extent permissible by law, each of the parties
            hereby waives, releases and agrees not to assert, and agrees to
            cause its Affiliates to waive, release and not assert, any rights
            such party or its Affiliates may have under any foreign law or
            regulation that would be inconsistent with the terms of this
            Agreement as governed by Delaware law.

     21.5   Provisions Contrary to Law/Severability. In performing this
            Agreement, the parties hereto shall comply with all applicable laws.
            Nothing in this Agreement shall be construed so as to require the
            violation of any law, and wherever there is any conflict between any
            provision of this Agreement and any applicable law, the applicable
            law shall prevail. If any provision of this Agreement conflicts with
            any applicable law or is otherwise determined by an arbitrator or
            court having valid jurisdiction thereof to be enforceable, the
            affected provision of this Agreement shall be deemed to have been
            modified to the extent necessary so as not to conflict with the
            applicable law or to be unenforceable or, if such modification is
            not possible, such provision shall be deemed to have been deleted
            herefrom, without affecting, impairing or invalidating the remaining
            provisions of this

                                       14
<PAGE>

            Agreement.

     21.6   Entire Agreement. This Agreement, together with any schedules
            ----------------
            attached hereto, the Asset Purchase Agreement and all agreements
            contemplated thereby (including the agreements noted on Schedule
            5.15 thereof as continuing in effect), and the Non-Compete Agreement
            constitute the entire agreement between the parties as to subject
            matter hereof, and all prior negotiations, representations,
            agreements and understandings are merged into, extinguished by and
            completely expressed by this Agreement and the other agreements
            referred to above.

     21.7   Waivers and Modifications. The failure of any party to insist on the
            -------------------------
            performance of any obligation hereunder shall not be deemed to be a
            waiver of such obligation. Waiver of any breach of any provision
            hereof shall not be deemed to be waiver of any other breach of such
            provision or any other provision. No waiver, modification, release
            or amendment of any obligation under or provision of this Agreement
            shall be valid or effective unless in writing signed by the other
            party to be bound by such waiver, modification, release or
            amendment.

     21.8   Assignment. Nexell may assign its rights or obligations under this
            ----------
            Agreement to any Affiliate of Nexell without the prior written
            consent of Baxter; provided that such assignee remains an Affiliate
                               --------
            of Nexell; and, provided, further, that no such assignment shall
                            --------  -------
            relieve Nexell of the obligation to satisfy and discharge the
            obligation(s) so assigned. Baxter may assign its rights and
            obligations hereunder to any Affiliate of Baxter without prior
            notice to or consent of Nexell. No assignment by Baxter or Nexell,
            or by any permitted assignee, (by operation of law or otherwise)
            shall be effective unless and until the assignee shall have agreed
            to become bound by the provisions of the Non-Compete Agreement, to
            the same extent and in the same manner as Baxter (in the case of a
            Baxter assignee) or Nexell (in the case of a Nexell assignee) is
            bound. No party hereto may assign (by operation of law or otherwise)
            any of its rights or obligations under this Agreement, unless and to
            the extent expressly permitted by this Section 21.8. Subject to the
            foregoing, this Agreement shall inure to the benefit of and be
            binding on the parties' permitted successors and assigns.

     21.9   Independent Parties. By virtue of this Agreement, neither party
            -------------------
            constitutes the other as its agent (except as may otherwise be
            expressly provided herein), partner, joint venturer, or legal
            representative and neither party has express or implied authority to
            bind the other in any manner whatsoever.

     21.10  Counterparts. This Agreement may be executed in any number of
            ------------
            counterparts with the same effect as if all parties had signed the
            same document. All such counterparts shall be deemed an original,
            shall be construed together, and shall constitute one and the same
            instrument.

     21.11  Dispute Resolution.
            ------------------

            A. Provisional Remedies. The procedures specified in this Section
               --------------------
               21.11

                                       15
<PAGE>

               shall be the sole and exclusive procedures for the resolution of
               disputes (other than disputes regarding any royalty payments,
               which shall be resolved in accordance with Section 7.2C) between
               the parties arising out of or relating to this Agreement;
               provided, however, that a party, without prejudice to these
               procedures, may seek a preliminary injunction or other
               provisional relief if, in its sole judgment, such action is
               deemed necessary to avoid irreparable damage or to preserve the
               status quo. During such action, the parties will continue to
               participate in good faith in the procedures specified in this
               Section 21.11.

            B. Negotiations Between Executives.  The parties will attempt in
               -------------------------------
               good faith to resolve any claim or controversy arising out of or
               relating to the execution, interpretation or performance of this
               Agreement (including the validity, scope and enforceability of
               the provisions contained in this Section 21.11) promptly by
               negotiations between executives who have authority to settle the
               controversy and who are at a higher level of management than the
               persons with direct responsibility for the administration of this
               Agreement.

            C. Arbitration.  In the event that any dispute arising out of or
               -----------
               relating to this Agreement or its breach, termination or validity
               has not been resolved after good faith negotiation pursuant to
               the procedures of Section 21.11B, such dispute shall upon written
               notice by either party to the other, be finally settled by
               arbitration administered by the Center for Public Resources in
               accordance with the provisions of its Commercial Arbitration
               Rules and the United Stated Federal Arbitration Act, as modified
               below:

               (i)   The arbitration shall be heard by a panel of three (3)
                     independent and impartial arbitrators, all of whom shall be
                     selected from a list of neutral arbitrators supplied by the
                     Center for Public Resources. From such list, each of Baxter
                     and Nexell shall select one (1) arbitrator, and the
                     arbitrators so selected shall select a third. The panel
                     shall designate one (1) among them to serve as chair.

               (ii)  The arbitration proceedings shall be conducted in Los
                     Angeles County or Orange County in the State of California.

               (iii) Any party may seek interim or provisional remedies under
                     the Federal Rules of Civil Procedure and the United States
                     Federal Arbitration Act as necessary to protect the rights
                     or property of the party pending the decision of the
                     arbitrators.

               (iv)  The parties shall allow and participate in limited
                     discovery for the production of documents and taking of
                     depositions, which shall be conducted in accordance with
                     the Commercial Arbitration Rules of the Center for Public
                     Resources. All discovery shall be completed within sixty
                     (60) days following the filing of the answer or other

                                       16
<PAGE>

                     responsive pleading. Unresolved discovery disputes shall be
                     brought to the attention of the chair of the arbitration
                     panel and may be disposed of by the chair.

               (v)   Each party shall have up to fifty (50) hours to present
                     evidence and argument in a hearing before the panel of
                     arbitrators, provided that the chair of the panel of
                     arbitrators may establish such longer times for
                     presentations as the chair deems appropriate.

               (vi)  The arbitration award shall be rendered by the arbitrators
                     within fifteen (15) business days after conclusion of the
                     hearing of the matter, shall be in writing and shall
                     specify the factual and legal basis for the award. Judgment
                     thereon may be entered in any court having jurisdiction
                     thereof.

               (vii) The arbitrators are empowered to order money damages in
                     compensation for a party's actual damages, specific
                     performance or other appropriate relief to cure a breach;
                     provided, however, that the arbitrators will have no
                     authority to award special, punitive or exemplary damages,
                     or other money damages that are not measured by the
                     prevailing party's actual damages.

            D. Performance During Dispute.  Each party is required to continue
               --------------------------
               to perform its obligations under this Agreement pending final
               resolution of any dispute arising out of or relating to this
               Agreement, unless to do so would be commercially impossible or
               impractical under the circumstances.

     21.12  Rules of Construction. In this Agreement, unless a clear contrary
            intention appears:

            A. The singular number includes the plural number and vice versa;

            B. Reference to any party includes such party's permitted successors
               and assigns;

            C. Reference to any gender includes the other gender;

            D. Reference to any Section, Exhibit or Schedule means such section
               of this Agreement, exhibit to this Agreement or schedule to this
               Agreement, as the case may be, and references in any section or
               definition to any clause means such clause of such section or
               definition;

            E. "Herein," "hereunder," "hereof," "hereto," and words of similar
               import shall be deemed references to this Agreement as a whole
               and not to any particular section or other provision of this
               Agreement;

            F. "Including" (and with the correlative meaning "include") means
               including

                                       17
<PAGE>

               without limiting the generality of any description preceding such
               term;

            G. Relative to the determination of any period of time, "from" means
               "from and including," "to" means "to but excluding" and "through"
               means "through and including";

            H. Reference to any law (including statutes and ordinances) means
               such law as amended, modified, codified or reenacted, in whole or
               in part, and in effect from time to time, including rules and
               regulations promulgated thereunder;

            I. Accounting terms used herein shall have the meanings historically
               attributed to them by Baxter International Inc., a Delaware
               corporation, and its subsidiaries prior to the date hereof;

            J. In the event of any conflict between any of the provisions of the
               body of this Agreement and any exhibit or schedule hereto, the
               provisions of the body of this Agreement shall control;

            K. The headings contained in this Agreement have been inserted for
               convenience of reference only, and are not to be used in
               construing this Agreement; and

            L. Any rule of construction or interpretation which might otherwise
               require this Agreement to be construed or interpreted against
               either party shall not apply to any construction or
               interpretation hereof.

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                                       18
<PAGE>

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
date first set forth above.

                              BAXTER HEALTHCARE CORPORATION

                                   By: /s/
                                       ---------------------------
                                       Timothy B. Anderson
                                       Senior Vice President, Corporate
                                       Strategy and Development

                              NEXELL OF CALIFORNIA, INC.

                                   By: /s/
                                       ---------------------------
                                       William A. Albright, Jr.
                                       President

                                       19

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]