Document:

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                                                                   Exhibit 10.24

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
ASTERISKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933.

                 NON-EXCLUSIVE CABILLY PATENT LICENSE AGREEMENT
                         [Cabilly Coexpression Patents]

         This Non-Exclusive Cabilly Patent License Agreement ("Agreement") is
effective as of June 30, 2003 ("Effective Date") by and between Genentech, Inc.,
a Delaware corporation having its principal place of business at 1 DNA Way,
South San Francisco, CA 94080 (hereinafter "Genentech") and Inhibitex, Inc., a
Delaware corporation having its principal place of business at 1165 Sanctuary
Drive, Suite 400, Alpharetta, GA 30004 (hereinafter "Licensee").

WHEREAS:

A.       Genentech owns and controls certain patent rights relating to methods
         and compositions in the field of antibodies (the "Licensed Patents", as
         that term is defined below);

B.       Licensee is developing, and intends to commercialize, antibody products
         that bind to S. aureus Clumping Factor A ("CLFA") and wishes to acquire
         a non-exclusive license for such products under the Licensed Patents;
         and

C.       Genentech is willing to grant such a non-exclusive license to Licensee
         on the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the promises and the mutual covenants
recited herein, the Parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         Unless otherwise specifically set forth herein, the following terms
shall have the following meanings:

         1.01.    "Affiliate" with respect to Licensee shall mean any
corporation or other entity which, directly or indirectly, controls, is
controlled by or is under common control with, a Party. For the purpose of this
Section 1.01 "control" shall mean (i) the ownership, directly or indirectly, of
at least fifty percent (50%) of the outstanding voting securities or other
ownership interest of an entity, or (ii) the possession, directly or indirectly,
of the power to manage, direct or cause the direction of the management and
policies of the corporation or other entity or the power to elect or appoint
fifty percent (50%) or more of the members of the governing body of the
corporation or other entity.

         1.02.    "Bulk Product" shall mean Licensed Product supplied in a form
other than Finished Product, which can be converted into Finished Product.

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         1.03.    "Calendar Quarter" shall mean each three month period
commencing January 1, April 1, July 1 and October 1 of each year during the term
of this Agreement.

         1.04.    "Chimera Patents" shall mean (i) U.S. Patent No. 4,816,567,
issued March 28, 1989 from U.S. patent application serial no. (USSN) 06/483,457,
and (ii) any claims directed to chimeric antibodies or any method of making or
using chimeric antibodies, which claims are found in any patent(s) issuing from
divisionals, continuations, or continuations-in-part of any application from
which U.S. Patent No. 4,816,567 claims priority, (iii) any claims directed to
chimeric antibodies or any method of making or using chimeric antibodies, which
claims are found in any patents that are reissues, reexaminations, or extensions
of any of the foregoing (i) and (ii), and (iv) foreign counterparts of any of
the foregoing (i), (ii), or (iii), but excluding from the foregoing (i), (ii),
(iii) and/or (iv), the Licensed Patents.

         1.05.    "Cost of Product" shall mean the cost of acquisition, if
purchased, or the cost of manufacture, the latter being the sum of direct
production costs and manufacturing overhead costs determined in accordance with
U.S. Generally Accepted Accounting Principles ("GAAP").

         1.06.    "Designee" shall mean a corporation or other entity designated
by and under written contract to Licensee to exercise the rights of Licensee
hereunder in concert with, or in place of and to the exclusion of, Licensee in
all or part of the Territory.

         1.07.    "Field of Use" shall mean the diagnosis, prevention or therapy
of human disease.

         1.08.    "Finished Product" shall mean any and all Licensed Product in
a form for use by an end user and not intended for further chemical or genetic
manipulation or transformation.

         1.09     "First Commercial Sale" shall mean the first sale of any
Licensed Product by Licensee or any of its Affiliates or Designees to a
non-affiliated third party. The sale shall be deemed to occur on the earlier of
(i) the date the Licensed Product is shipped to the third party, or (ii) the
date of the invoice to the third party for the Licensed Product.

         1.10.    "Licensed Patents" shall mean (i) U.S. Patent No. 6,331,415,
issued December 18, 2001, (ii) any patent(s) issuing from divisionals,
continuations, or continuations-in-part of any patent application from which
U.S. Patent No. 6,331,415 claims priority, and (iii) patents that are reissues,
reexaminations, extensions, or foreign counterparts of any of the foregoing (i)
or (ii), provided, however, that Licensed Patents shall not include Chimera
Patents.

         1.11.    "Licensed Product" shall mean any antibody that binds
specifically to CLFA, the making (or having made), using, selling, offering for
sale or importing of which, but for the license granted under this Agreement,
would infringe a Valid Claim of a patent included in Licensed Patents.

         1.12.    "Net Sales" shall mean the gross invoice or contract price to
third party customers for Finished Product. Finished Product used or consumed by
Licensee or its Affiliates or Designees as part of the delivery of services to
customers for which Licensee derives compensation shall be considered Net Sales
at the gross invoice or contract price of like Finished

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<PAGE>

Product which are sold to customers. If Licensed Product is sold in combination
with one or more active ingredients, Net Sales shall be calculated by
multiplying Net Sales of the combination product by the fraction A/(A+B) where A
is the sales price of the Finished Product in the combination when sold
separately and B is the total sales price of all other active ingredients in the
combination when sold separately. If the Finished Product and the other active
ingredients are not sold separately, the percentage of the total cost of the
combination product attributed to Cost of Product shall be multiplied times the
sales price of the combination product to arrive at Net Sales. For all Licensed
Product used or consumed by others than Licensee, Licensee shall be entitled to
deduct 5% from Net Sales in lieu of all other deductions such as taxes, shipping
charges, allowances and the like prior to calculating royalties due.

         Net Sales for Bulk Products shall be calculated by doubling the gross
invoice or contract price of Bulk Products sold to non-affiliated customers.

         The method of calculating Net Sales of materials in a form other than
Finished Product or Bulk Product that can be converted into Finished Product
shall be established by the Parties prior to the first sale or transfer of any
such material by Licensee, its Affiliates or Designees to a non-affiliated third
party.

         1.13.    "Party" shall mean either Genentech or Licensee, and when used
in the plural shall mean both Genentech and Licensee.

         1.14.    "Term" is defined in Section 7.01.

         1.15.    "Territory" shall mean the entire world.

         1.16.    "U.S." and "United States" shall mean the United States of
America, including its territories and possessions.

         1.17.    "Valid Claim" shall mean any claim of an issued and unexpired
patent within the Licensed Patents that has not been disclaimed, abandoned or
dedicated to the public or held unenforceable, unpatentable or invalid by a
decision of a court or governmental agency of competent jurisdiction, which
decision is unappealable or unappealed within the time allowed for appeal.

                                   ARTICLE II

                                      GRANT

         2.01.    License. Genentech hereby grants to Licensee and Licensee
hereby accepts a non-exclusive license under Licensed Patents during the Term to
make (and have made), use, sell, offer for sale, and import Licensed Product in
the Territory in the Field of Use. Licensee shall have a limited right to grant
sublicenses as provided in Section 2.02.

         2.02.    Right to Grant Sublicenses. Licensee shall only have the right
to grant sublicenses to its Affiliates and Designees of the rights granted
hereunder to Licensee to make (and have

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made), use, sell, offer for sale, and import Licensed Product, in all or part of
the Territory; provided that Licensee shall always be responsible for the
payment of royalties on Net Sales of Licensed Product by any such sublicensee
and for all other acts of such sublicensee as if such acts were those of the
Licensee. A sublicense granted under this Section 2.02 shall not be further
sublicensable or sublicensed by the licensee thereof. Licensee shall notify
Genentech in writing promptly after the grant of a sublicense hereunder
including in such notice the name and address of the sublicensee.

         2.03.    No Other License. Licensee understands and agrees that no
license under any patent or patent application other than Licensed Patents, or
under any know-how, is or shall be deemed to have been granted under this
Agreement, either expressly or by implication. By way of example only, and
without limitation, no license under Chimera Patents is granted hereunder.

                                   ARTICLE III

                         FEES, MILESTONES AND ROYALTIES

         3.01.    License Grant Fee. Licensee shall pay to Genentech a
non-creditable, non-refundable license grant fee of [ *** ] in three (3)
separate payments, a first payment of [ *** ] within ten (10) business days
after the Effective Date, a second payment of [ *** ] on November 1, 2003, and a
third payment of [ *** ] on the first anniversary of the Effective Date.

         3.02.    Development Milestone Fee. Within ten (10) business days after
receipt by Licensee, its Affiliates or Designee of the first marketing approval
for a Licensed Product from the United States Food and Drug Administration or
any successor agency or authority thereto ("FDA"), Licensee shall pay to
Genentech a non-creditable, non-refundable development milestone fee of [ *** ].

         3.03.    Earned Royalties. Licensee shall pay to Genentech a royalty
(a) of [ *** ] of the portion of aggregate annual Net Sales of all Licensed
Product that is less than or equal to [ *** ], and (b) of [ *** ] of the portion
of aggregate annual Net Sales of all Licensed Product that is greater than
[ ***].

         3.04.    Sales To or Between Licensee, Affiliates, and Designees. It is
the intent of the Parties that Net Sales shall be based on arm's length sales
transactions to non-affiliated third parties. No royalties shall be paid upon
sales of Licensed Product to or between any of Licensee, its Affiliates and
Designees for further sale; provided, however, that in such cases royalties
shall be paid upon such further sale of Licensed Product by Licensee, its
Affiliates or Designees to non-affiliated third parties. Once a royalty has been
paid to Genentech by Licensee, its Affiliates or Designees pursuant to Section
3.03 for Licensed Product, no further royalty shall be payable thereon.

         3.05.    No Non-Monetary Consideration. Without the prior written
consent of Genentech, Licensee, its Affiliates and Designees shall not solicit
or accept any consideration for the sale of any Licensed Product other than as
will be accurately reflected in Net Sales.

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<PAGE>

         3.06.    Credit Against Royalties. In the event that, for a Calendar
Quarter, the total sum of royalties payable by Licensee (royalties paid to third
parties and to Genentech) with respect of the sale of Licensed Product shall
exceed [ *** ] of Net Sales and aggregate annual Net Sales exceed [ *** ], then
Licensee shall be entitled to reduce the earned royalty percentage paid to
Genentech pursuant to Section 3.03 by [ *** ] of the percentage of such
royalties that exceeds [ *** ] of Net Sales, but in no event shall such earned
royalty paid to Genentech be less than [ *** ] of aggregate annual Net Sales. By
way of example only, and without limitation, if the total sum of royalties
payable by Licensee (to third parties and to Genentech) is [ *** ] of such Net
Sales of all Licensed Product for a Calendar Quarter, then Licensee is entitled
to reduce the royalty paid to Genentech from [ *** ] to [ *** ] of such Net
Sales for such Calendar Quarter.

                                   ARTICLE IV

                          RECORDS, REPORTS AND PAYMENTS

         4.01.    Records Retention. Licensee shall keep and shall cause its
Affiliates and Designees to keep true, complete and accurate records of all
sales of all Licensed Product in accordance with GAAP, or the equivalent, and in
sufficient detail to permit Genentech to confirm the accuracy of Licensee's
royalty calculations. At Genentech's request and expense, Licensee shall permit
not more than once in a twelve (12) month period an independent certified public
accountant appointed by Genentech and acceptable to Licensee to examine at
Licensee's principal place of business, upon reasonable notice and at reasonable
times, such records solely to the extent necessary to verify Licensee's
calculations. Licensee shall be responsible for providing access to such records
that in the ordinary course of business are in the possession or control of its
Affiliates and Designees. Such examination shall be limited to a period of time
no more than three (3) years immediately preceding the request for examination.
The report of any such examination shall be made simultaneously to Genentech and
Licensee and shall simply report the amount, if any, by which Licensee has
overpaid or underpaid its royalties. If Licensee's royalties are found to be in
error such that royalties to Genentech were underpaid, then Licensee shall
promptly pay the deficiency plus interest pursuant to Section 4.05 to Genentech;
and if royalties to Genentech were underpaid by more than five percent (5.0%),
then Licensee shall additionally reimburse Genentech for its reasonable costs
incurred in examining such records.

         4.02.    Reports. Within sixty (60) days after the end of each Calendar
Quarter following the First Commercial Sale of Licensed Product, Licensee shall
furnish to Genentech a written report of all sales of all Licensed Product
subject to royalty under Article III during such Calendar Quarter. Such report
shall include, without limitation, (i) the determination of Net Sales as
specified in Section 1.12, setting forth the amount of gross receipts, Net
Sales, and any deduction taken from gross receipts to arrive at Net Sales, for
each of Finished Product and Bulk

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<PAGE>

Product separately; and (ii) the royalty payment then due. Concurrently with
each report pursuant to this Section 4.02, Licensee shall make the royalty
payment then due.

         4.03.    Payments. Payments shall be in United States dollars and,
unless otherwise agreed in writing, shall be made by wire transfer of
immediately available funds to such account of Genentech in such bank as
Genentech may from time to time designate in writing. All royalty payments shall
be free and clear of any taxes, duties, levies, fees or charges, except for
withholding taxes. Licensee shall pay any withholding tax due on behalf
Genentech and such withholding taxes shall be deducted from all payments due
hereunder. The Parties shall cooperate to take advantage of the benefit of any
double taxation treaty(ies) that may be applicable.

         4.04.    Currency Conversion. Royalties due on Net Sales of Licensed
Product made in currency other than U.S. dollars shall be expressed in the
currency of the invoice issued in connection with the sale of such Licensed
Product together with the U.S. dollar equivalent of the royalty due, calculated
using the average rate of exchange published in Reuters during the applicable
Calendar Quarter.

         4.05.    Interest. All royalty payments not made when due shall bear
interest, calculated from the date such payment was due, at the annual rate of
two percent (2.0%) over the prime rate of interest as reported in the Wall
Street Journal on the day the payment was due.

                                    ARTICLE V

                  REPRESENTATIONS, WARRANTIES, AND DISCLAIMERS

         5.01.    Genentech represents and warrants that it has the right to
grant the license granted under this Agreement.

         5.02.    Nothing in this Agreement is or shall be construed as:

                  (i)      A warranty or representation by Genentech as to the
                  validity or scope of any claim or patent or patent application
                  within the Licensed Patents;

                  (ii)     A warranty or representation by Genentech that
                  anything made, used, sold, or otherwise disposed of under any
                  license granted in this Agreement is or will be free from
                  infringement of any patent rights or other intellectual
                  property right of any third party;

                  (iii)    A grant by Genentech, whether by implication,
                  estoppel, or otherwise, of any licenses or rights other than
                  that expressly granted under Section 2.01; or

                  (iv)     An obligation to bring or prosecute actions or suits
                  against any third party for infringement of any of the
                  Licensed Patents.

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         5.03.    NO WARRANTY IS GIVEN WITH RESPECT TO THE LICENSED PATENTS,
EXPRESS OR IMPLIED, EITHER IN FACT OR BY OPERATION OF LAW, BY STATUTE OR
OTHERWISE, AND THE PARTIES SPECIFICALLY DISCLAIM ANY EXPRESS OR IMPLIED WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF THE LICENSED
PATENTS, OR NON-INFRINGEMENT OF THE PATENT OR OTHER RIGHTS OF ANY THIRD PARTY.

                                   ARTICLE VI

                                    LIABILITY

         6.01.    Indemnification. Licensee shall indemnify, defend and hold
Genentech and its directors, officers, employees and agents harmless from and
against any and all liabilities, claims, demands, expenses (including, without
limitation, attorneys and professional fees and other costs of litigation),
losses or causes of action (each, a "Liability") arising out of or relating in
any way to (i) the possession, manufacture, use, sale or other disposition of
Licensed Product hereunder, whether based on breach of warranty, negligence,
product liability or otherwise, (ii) the exercise of any right granted to
Licensee pursuant to this Agreement, or (iii) any breach of this Agreement by
Licensee, except to the extent, in each case, that such Liability is caused by
the gross negligence or willful misconduct of Genentech as determined by a court
of competent jurisdiction; provided, however, that upon receiving notice of any
such Liability, Genentech shall promptly notify Licensee and permit Licensee to
handle and control the defense (including litigation and settlement) of such
Liability, at Licensee's sole expense, and Genentech shall reasonably cooperate
with the indemnifying Party in the defense of such Liability, at Licensee's sole
expense.

                                   ARTICLE VII

                              TERM AND TERMINATION

         7.01.    Term. The term of this Agreement will commence on the
Effective Date and remain in full force and effect until the expiration of the
last patent within the Licensed Patents (the "Term"), unless earlier terminated
in accordance with this Article VII.

         7.02     Termination without Breach. Licensee shall have the right to
terminate this Agreement upon ninety (90) days prior written notice to
Genentech.

         7.03.    Termination for Breach. Genentech shall have the right to
terminate this Agreement and the licenses granted hereunder upon written notice
to Licensee for a material breach of this Agreement if Licensee has failed to
cure such breach within thirty (30) days following notice thereof. Licensee's
failure to pay royalties and provide reports to Genentech under this Agreement
when due shall constitute a material breach.

         7.04.    Insolvency. Genentech may terminate this Agreement if, at any
time, Licensee shall file in any court pursuant to any statute of any individual
state or country, a petition in bankruptcy, insolvency or for reorganization or
for an agreement among creditors or for the

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appointment of a receiver or trustee of Licensee or of its assets, or if
Licensee proposes a written agreement of composition or extension of its debts,
or if Licensee shall be served with an involuntary petition against it filed in
any insolvency proceeding, and such petition shall not be dismissed within sixty
(60) days after the filing thereof, or if Licensee shall propose or be a party
to any dissolution or liquidation, or if Licensee shall make an assignment for
the benefit of creditors. Any termination pursuant to this Section 7.04 shall be
effective immediately upon notice of such termination.

         7.05.    Effect of Termination. Termination of this Agreement in whole
or in part for any reason shall not relieve Licensee of its obligations to pay
all fees and royalties that shall have accrued hereunder prior to the effective
date of termination. Termination of this Agreement by or as to Licensee shall
result in the termination of the licenses granted to Licensee and to all
sublicensees of Licensee pursuant to this Agreement. The provisions of Article
IV, Article V, Article VI, Article VIII and this Section 7.05 shall survive
termination of the Agreement for any reason.

                                  ARTICLE VIII

                            MISCELLANEOUS PROVISIONS

         8.01.    Relationship of the Parties. Nothing in this Agreement is
intended or shall be deemed to constitute or give rise to a partnership, agency,
distributorship, employer-employee, joint venture, or fiduciary relationship
between the Parties. No Party shall incur any debts or make any commitments for
the other.

         8.02.    Patent Prosecution, Maintenance and Enforcement. Genentech
shall be solely responsible, at its sole discretion and expense, for the
prosecution, defense, and maintenance of Licensed Patents, and for enforcing
Licensed Patents against actual or suspected third party infringers.

         8.03.    Assignment. Neither Party shall assign any of its rights or
obligations hereunder except: (i) as incident to the merger, consolidation,
reorganization or acquisition of stock or assets affecting substantially all of
the assets or voting control of the assigning Party; (ii) to any corporation or
other entity to which it may transfer substantially all of its assets related to
the Licensed Product; (iii) to any wholly owned subsidiary if the assigning
Party remains liable and responsible for the performance and observance of all
of the subsidiary's duties and obligations hereunder; or (iv) with the prior
written consent of the other Party (which consent shall not be unreasonably
withheld); provided however, that assignment in the context of insolvency or
bankruptcy of Licensee shall require prior written consent of Genentech. This
Agreement shall be binding upon the successors and permitted assigns of the
Parties, and the name of a Party appearing herein shall be deemed to include the
names of such Party's successor's and permitted assigns to the extent necessary
to carry out the intent of this Agreement. Any assignment not in accordance with
this Section 8.03 shall be void.

         8.04.    Further Acts and Instruments. Upon request by either Party,
the other Party agrees to execute, acknowledge and deliver such further
instruments, and to do all such other acts, as

                                       8
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may be reasonably necessary or appropriate in order to carry out the purposes
and intent of this Agreement.

         8.05.    Trade Names and Trademarks. Except as otherwise provided
herein, no right, expressed or implied, is granted by this Agreement to use in
any manner the name "Genentech" or any other trade name or trademark of
Genentech in connection with the performance of this Agreement. Except as
otherwise provided herein, no right, expressed or implied, is granted by this
Agreement to use in any manner the name "Inhibitex" or any other trade name or
trademark of Licensee in connection with the performance of this Agreement.

         8.06.    Entire Agreement. This Agreement constitutes and contains the
entire understanding and agreement of the Parties with respect to the subject
matter hereof, and cancels and supersedes any and all prior negotiations,
correspondence, understandings and agreements, whether verbal or written,
between the Parties respecting the subject matter hereof. No waiver,
modification, or amendment of any provision of this Agreement shall be valid or
effective unless made in writing and signed by a duly authorized representative
of each of the Parties.

         8.07.    Severability. In the event any one or more of the provisions
of this Agreement should for any reason be held by any court or authority having
jurisdiction over this Agreement or either of the Parties to be invalid, illegal
or unenforceable, such provision or provisions shall be validly reformed to as
nearly as possible approximate the intent of the Parties and, if unreformable,
shall be divisible and deleted in such jurisdiction; elsewhere, this Agreement
shall not be affected so long as the Parties are still able to realize the
principal benefits bargained for in this Agreement.

         8.08.    Waiver. The waiver by a Party of any breach of or default
under any of the provisions of this Agreement or the failure of a Party to
enforce any of the provisions of this Agreement or to exercise any right
hereunder shall not constitute or be construed as a waiver of any other breach
or default or as a waiver of any such rights or provisions hereunder.

         8.09.    Choice of Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of California without
regard to conflict of laws provisions. This Agreement shall be construed as if
drafted equally by the Parties, and in construing this Agreement no presumption
shall operate in either Party's favor as a result of the role of it or its
counsel in drafting or negotiating the terms or provisions hereof.

         8.10.    Notices. Any notice, request, consent, or other document
required or permitted to be given under this Agreement or otherwise relating to
this Agreement shall be in writing and shall be deemed to have been sufficiently
given if delivered in person, transmitted by facsimile (with a confirming copy
sent by overnight courier), or sent by overnight courier or registered mail to
the Party to whom it is directed at its address shown below or such other
address as such Party shall have last given by notice to the other Party. Any
such notice, requests, delivery, approval or consent shall be deemed received on
the date of hand delivery or transmission by facsimile (provided that such date
is a business day, otherwise it shall be deemed received on the next business
day), one (1) business day after dispatch by overnight courier, or five (5)
business days after dispatch of the registered mail.

                                       9
<PAGE>

                  If to Licensee, addressed to:
                  Inhibitex, Inc.
                  1165 Sanctuary Drive, Suite 400
                  Alpharetta, GA 30004
                  Attn: President

                  Facsimile: (678) 746-1100

                  If to Genentech, addressed to:
                  Genentech, Inc.
                  1 DNA Way
                  South San Francisco, CA 94080
                  Attn: Corporate Secretary

                  Facsimile: (650) 952-9881

         8.11.    Confidentiality. Each Party shall be free to disclose the
existence of this Agreement (but not its terms) to any third party. Neither
Party shall disclose any of the terms (including, but not limited to, the
financial terms) of this Agreement to any third party without the prior written
consent of the other Party; provided, however, that each Party shall be free to
disclose any of the terms of this Agreement (i) to the extent that a Party
reasonably believes it is required to do so by securities or other applicable
laws, regulations, or rules (including the regulations or rules of any relevant
stock exchange), (ii) pursuant to a legal proceeding or order of a court or
governmental agency, (iii) to actual or prospective sublicensees, (iv) to City
of Hope National Medical Center (in the case of Genentech), (v) to its
accountants, attorneys and other professional advisors, or (vi) in connection
with a financing, merger, consolidation, acquisition or a permitted assignment
of this Agreement, provided that in the case of any disclosure under (iii),
(iv), (v), or (vi) above, the recipient(s) are obligated and do so undertake to
keep such terms of this Agreement confidential to the same extent as said Party,
and provided that in the case of disclosure under (ii), the disclosing Party
will use reasonable efforts to secure confidential treatment of such terms of
this Agreement required to be disclosed.

         8.12.    Counterparts. This Agreement may be executed simultaneously in
one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                            [signature page follows]

                                       10
<PAGE>

         IN WITNESS WHEREOF, Genentech and Licensee have caused this Agreement
to be executed by their duly authorized representatives.

         GENENTECH, INC.

         By:   [ILLEGIBLE]
            ---------------------------

         Title: VP
         Date: June 30, 2003

         INHIBITEX, INC.

         By:  /s/ Robert Schweiger
            ---------------------------
              Robert Schweiger
         Title: VP Business Dev.
         Date: June 30, 2003

                                       11<PAGE>

                                                                   Exhibit 10.25

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
ASTERISKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933.

                              PUBLIC HEALTH SERVICE

                     PATENT LICENSE AGREEMENT--NONEXCLUSIVE

                                   COVER PAGE

For PHS internal use only:

         License Number:

         Application Number:

         A-294-2003

         Serial Number(s) of Licensed Patent(s) and/or Patent Application(s):

         United States Patent Serial Number 07/702,217 (PHS reference number
         E-163-1991/0-US-01) filed May 17, 1991;

         United States Patent Serial Number 08/109,187 (PHS reference number
         E-163-1991/1-US-01) filed August 19, 1993;

         United States Patent Serial Number 08/609,218 (PHS reference number
         E-163-1991/1-US-03) filed March 1, 1996;

         United States Patent Serial Number 08/905,280 (PHS reference number
         E-163-1991/2-US-01) filed August 1, 1997; and

         United States Patent Serial Number 09/810,502 (PHS reference number
         E-163-1991/2-US-02) filed March 16, 2001, all entitled, "A Method for
         reducing the immunogenicity of antibody variable domains," and all
         continuations, reissues, divisionals and corresponding foreign
         patent(s) or patent application(s)

         Licensee:

         Inhibitex
         1165 Sanctuary Parkway, Suite 400
         Alpharetta, GA 30004

         Cooperative Research and Development Agreement (CRADA) Number (if
         applicable):

         N/A

         Public Benefit(s):

         Development of antibodies for the prevention and treatment of bacterial
         and fungal infections. Availability of these therapeutic agents to
         qualified indigent patients.

This Patent License Agreement, hereinafter referred to as the "AGREEMENT",
consists of this Cover Page, an attached AGREEMENT, a Signature Page, Appendix A
(List of Patent(s) and/or Patent Application(s)), Appendix B (Fields of Use and
Territory), Appendix C (Royalties), Appendix D (Modifications), Appendix E
(Benchmarks), and Appendix F (Commercial Development Plan). The Parties to this
AGREEMENT are:

<PAGE>
         1)       The National Institutes of Health ("NIH"), the Centers for
                  Disease Control and Prevention ("CDC"), or the Food and Drug
                  Administration ("FDA"), hereinafter singly or
                  collectively referred to as "PHS", agencies of the United
                  States Public Health Service within the Department of Health
                  and Human Services ("DHHS"); and

         2)       The person, corporation, or institution identified above
                  and/or on the Signature Page, having offices at the address
                  indicated on the Signature Page, hereinafter referred to as
                  "LICENSEE".

                                  Page 2 of 24
<PAGE>

                   PHS PATENT LICENSE AGREEMENT--NONEXCLUSIVE

PHS and LICENSEE agree as follows:

1.       BACKGROUND

         1.01     In the course of conducting biomedical and behavioral
                  research, PHS investigators made inventions that may have
                  commercial applicability.

         1.02     By assignment of rights from PHS employees and other
                  inventors, DHHS, on behalf of the United States Government,
                  owns intellectual property rights claimed in any United States
                  and/or foreign patent applications or patents corresponding to
                  the assigned inventions. DHHS also owns any tangible
                  embodiments of these inventions actually reduced to practice
                  by PHS.

         1.03     The Secretary of DHHS has delegated to PHS the authority to
                  enter into this AGREEMENT for the licensing of rights to these
                  inventions.

         1.04     PHS desires to transfer these inventions to the private sector
                  through commercialization licenses to facilitate the
                  commercial development of products and processes for public
                  use and benefit.

         1.05     LICENSEE desires to acquire commercialization rights to
                  certain of these inventions in order to develop processes,
                  methods, and/or marketable products for public use and
                  benefit.

2.       DEFINITIONS

2.01     "BENCHMARKS" mean the performance milestones that are set forth in
         Appendix E.

         2.02     "COMMERCIAL DEVELOPMENT PLAN" means the written
                  commercialization plan attached as Appendix F.

         2.03     "FIRST COMMERCIAL SALE" means the initial transfer by or on
                  behalf of LICENSEE or its sublicensees of LICENSED PRODUCTS or
                  the initial practice of a LICENSED PROCESS by or on behalf of
                  LICENSEE or its sublicensees in exchange for cash or some
                  equivalent to which value can be assigned for the purpose of
                  determining NET SALES.

         2.04     "GOVERNMENT" means the Government of the United States of
                  America.

         2.05     "LICENSED FIELDS OF USE" means the fields of use identified in
                  Appendix B.

         2.06     "LICENSED PATENT RIGHTS" shall mean:

                  a)       Patent applications (including provisional patent
                           applications and PCT patent applications) and/or
                           patents listed in Appendix A, all divisions and
                           continuations of these applications, all patents
                           issuing from such applications, divisions, and
                           continuations, and any reissues, reexaminations, and
                           extensions of all such patents;

                  b)       to the extent that the following contain one or more
                           claims directed to the invention or inventions
                           disclosed in a) above: i) continuations-in-part of a)
                           above; ii) all divisions and continuations of these
                           continuations-in-part; iii) all patents issuing from
                           such continuations-in-part, divisions, and
                           continuations; iv) priority patent application(s) of
                           a) above; and v) any reissues, reexaminations, AND
                           EXTENSIONS OF ALL SUCH PATENTS;

                                  Page 3 of 24
<PAGE>

                  c)       to the extent that the following contain one or more
                           claims directed to the invention or inventions
                           disclosed in a) above: all counterpart foreign and
                           U.S. patent applications and patents to a) and b)
                           above, including those listed in Appendix A.

                  LICENSED PATENT RIGHTS shall not include b) or c) above to the
                  extent that they contain one or more claims directed to new
                  matter which is not the subject matter disclosed in a) above.

         2.07     "LICENSED PROCESS(ES)" means processes which, in the course of
                  being practiced would be within the scope of one or more
                  claims of the LICENSED PATENT RIGHTS that have not been held
                  unpatentable, invalid or unenforceable by an unappealed or
                  unappealable judgment of a court of competent jurisdiction.

         2.08     "LICENSED PRODUCT(S)" means tangible materials which, in the
                  course of manufacture, use, sale, or importation would be
                  within the scope of one or more claims of the LICENSED PATENT
                  RIGHTS that have not been held unpatentable, invalid or
                  unenforceable by an unappealed or unappealable judgment of a
                  court of competent jurisdiction.

         2.09     "LICENSED TERRITORY" means the geographical area identified in
                  Appendix B.

         2.10     "NET SALES" means the total gross receipts for sales of
                  LICENSED PRODUCTS or practice of LICENSED PROCESSES by or on
                  behalf of LICENSEE or its sublicensees, and from leasing,
                  renting, or otherwise making LICENSED PRODUCTS available to
                  others without sale or other dispositions, whether invoiced or
                  not, less returns and allowances, packing costs, insurance
                  costs, freight out, taxes or excise duties imposed on the
                  transaction (if separately invoiced), and wholesaler and cash
                  discounts in amounts customary in the trade to the extent
                  actually granted. No deductions shall be made for commissions
                  paid to individuals, whether they be with independent sales
                  agencies or regularly employed by LICENSEE, or sublicensees,
                  and on its payroll, or for the cost of collections. LICENSED
                  PRODUCTS given customers free of charge, and not for re-sale,
                  as promotional samples are specifically excluded from NET
                  SALES. Donations of LICENSED PRODUCT(S) under the indigent
                  patient access program specified in Paragraph 10.03 are
                  excluded from NET SALES.

         2.11     "PRACTICAL APPLICATION" means to manufacture in the case of a
                  composition or product, to practice in the case of a process
                  or method, or to operate in the case of a machine or system;
                  and in each case, under such conditions as to establish that
                  the invention is being utilized and that its benefits are to
                  the extent permitted by law or GOVERNMENT regulations
                  available to the public on reasonable terms.

3.       GRANT OF RIGHTS

         3.01     PHS hereby grants and LICENSEE accepts, subject to the terms
                  and conditions of this AGREEMENT, a nonexclusive license under
                  the LICENSED PATENT RIGHTS in the LICENSED TERRITORY to make
                  and have made, to use and have used, to sell and have sold, to
                  offer to sell, and to import any LICENSED PRODUCTS in the
                  LICENSED FIELDS OF USE and to practice and have practiced any
                  LICENSED PROCESSES in the LICENSED FIELDS OF USE.

         3.02     This AGREEMENT confers no license or rights by implication,
                  estoppel, or otherwise under any patent applications or
                  patents of PHS other than LICENSED PATENT RIGHTS regardless of
                  whether such patents are dominant or subordinate to LICENSED
                  PATENT RIGHTS.

4.       SUBLICENSING

         4.01     LICENSEE has no right to sublicense.

                                  Page 4 of 24

<PAGE>

5.       STATUTORY AND PHS REQUIREMENTS AND RESERVED GOVERNMENT RIGHTS

         5.01     Upon written request, and prior to the FIRST COMMERCIAL SALE,
                  LICENSEE agrees to provide PHS reasonable quantities of
                  LICENSED PRODUCTS or materials made through the LICENSED
                  PROCESSES for PHS research use.

         5.02     LICENSEE agrees that products used or sold in the United
                  States embodying LICENSED PRODUCTS or produced through use of
                  LICENSED PROCESSES shall be manufactured substantially in the
                  United States, unless a written waiver is obtained in advance
                  from PHS.

6.       ROYALTIES AND REIMBURSEMENT

         6.01     LICENSEE agrees to pay to PHS a, noncreditable, nonrefundable
                  license issue royalty as set forth in Appendix C.

         6.02     LICENSEE agrees to pay to PHS a nonrefundable minimum annual
                  royalty as set forth in Appendix C. The minimum annual royalty
                  is due and payable on January 1 of each calendar year and may
                  be credited against any earned royalties due for sales made in
                  that year. The minimum annual royalty due for the first
                  calendar year of this AGREEMENT may be prorated according to
                  the fraction of the calendar year remaining between the
                  effective date of this AGREEMENT and the next subsequent
                  January 1.

         6.03     LICENSEE agrees to pay PHS earned royalties as set forth in
                  Appendix C.

         6.04     LICENSEE agrees to pay PHS benchmark royalties as set forth in
                  Appendix C. Benchmark royalties are payable within thirty (30)
                  days from the date of completion of a Benchmark set forth in
                  Appendix C.

         6.05     A patent or patent application licensed under this AGREEMENT
                  shall cease to fall within the LICENSED PATENT RIGHTS for the
                  purpose of computing earned royalty payments in any given
                  country on the earliest of the dates that a) the application
                  has been abandoned and not continued, b) the patent expires or
                  irrevocably lapses, or c) the claim has been held to be
                  invalid or unenforceable by an unappealed or unappealable
                  decision of a court of competent jurisdiction or
                  administrative agency.

         6.06     No multiple royalties shall be payable because any LICENSED
                  PRODUCTS or LICENSED PROCESSES are covered by more than one of
                  the LICENSED PATENT RIGHTS.

         6.07     On sales of LICENSED PRODUCTS by LICENSEE to sublicensees or
                  on sales made in other than an arm's-length transaction, the
                  value of the NET SALES attributed under this Article 6 to such
                  a transaction shall be that which would have been received in
                  an arm's-length transaction, based on sales of like quantity
                  and quality products on or about the time of such transaction.

         6.08     With regard to expenses associated with the preparation,
                  filing, prosecution, and maintenance of all patent
                  applications and patents included within the LICENSED PATENT
                  RIGHTS incurred by PHS prior to the effective date of this
                  AGREEMENT, LICENSEE shall pay to PHS, as an additional
                  royalty, within sixty (60) days of PHS's submission of a
                  statement and request for payment to LICENSEE, an amount
                  equivalent to such patent expenses previously incurred by PHS.
                  LICENSEE's obligation is only related to unreimbursed payments
                  actually made by PHS and is a pro rata share of such expenses.
                  The pro rata share shall be based on the number of commercial
                  licensees granted rights under any of the LICENSED PATENT
                  RIGHTS and shall exclude any license(s) which are for internal
                  research use and/or for research reagents sales.

                                  Page 5 of 24

<PAGE>

         6.09     With regard to expenses associated with the preparation,
                  filing, prosecution, and maintenance of all patent
                  applications and patents included within the LICENSED PATENT
                  RIGHTS incurred by PHS on or after the effective date of this
                  AGREEMENT, PHS, at its sole option, may require LICENSEE:

                  (a) to pay PHS on an annual basis, within sixty (60) days of
                  PHS's submission of a statement and request for payment, a
                  royalty amount equivalent to a pro rata share of all such
                  patent expenses incurred during the previous calendar year(s);
                  or

                  (b) to pay such expenses directly to the law firm employed by
                  PHS to handle such functions. However, in such event, PHS and
                  not LICENSEE shall be the client of such law firm.

                  The pro rata share shall be based on the number of commercial
                  licensees granted rights under any of the LICENSED PATENT
                  RIGHTS and shall exclude any license(s) which are for internal
                  research use and/or for research reagents sales.

                  Under exceptional circumstances, LICENSEE may be given the
                  right but not the obligation to assume responsibility for the
                  preparation, filing, prosecution, or maintenance of any patent
                  application or patent included with the LICENSED PATENT
                  RIGHTS. In that event, LICENSEE shall directly pay the
                  attorneys or agents engaged to prepare, file, prosecute, or
                  maintain such patent applications or patents and shall provide
                  to PHS copies of each invoice associated with such services as
                  well as documentation that such invoices have been paid.

         6.10     LICENSEE may elect to surrender its rights in any country of
                  the LICENSED TERRITORY under any LICENSED PATENT RIGHTS upon
                  sixty (60) days written notice to PHS and owe no payment
                  obligation under Article 6.09 for patent-related expenses
                  incurred in that country after the effective date of such
                  written notice.

7.       PATENT FILING, PROSECUTION, AND MAINTENANCE

         7.01     PHS agrees to take responsibility for the preparation, filing,
                  prosecution, and maintenance of any and all patent
                  applications or patents included in the LICENSED PATENT
                  RIGHTS.

8.       RECORD KEEPING

         8.01     LICENSEE agrees to keep accurate and correct records of
                  LICENSED PRODUCTS made, used, sold, or imported and LICENSED
                  PROCESSES practiced under this AGREEMENT appropriate to
                  determine the amount of royalties due PHS. Such records shall
                  be retained for at least five (5) years following a given
                  reporting period and shall be available during normal business
                  hours for inspection at the expense of PHS by an accountant or
                  other designated auditor selected by PHS for the sole purpose
                  of verifying reports and payments hereunder. The accountant or
                  auditor shall only disclose to PHS information relating to the
                  accuracy of reports and payments made under this AGREEMENT. If
                  an inspection shows an underreporting or underpayment in
                  excess of five percent (5%) for any twelve (12) month period,
                  then LICENSEE shall reimburse PHS for the cost of the
                  inspection at the time LICENSEE pays the unreported royalties,
                  including any late charges as required by Paragraph 9.07 of
                  this AGREEMENT. All payments required under this Paragraph
                  shall be due within thirty (30) days of the date PHS provides
                  LICENSEE notice of the payment due.

         8.02     LICENSEE agrees to have an audit of sales and royalties
                  conducted by an independent auditor at least every two (2)
                  years if annual sales of the LICENSED PRODUCT or LICENSED
                  PROCESSES are over thirty (30) million dollars. The audit
                  shall address, at a minimum, the amount of gross sales by or
                  on behalf of LICENSEE during the audit period, terms of the
                  license as to percentage or fixed royalty to be remitted to
                  the GOVERNMENT, the amount of royalty funds owed to the
                  GOVERNMENT under this AGREEMENT, and whether the royalty
                  amount owed has been paid to the GOVERNMENT and is

                                  Page 6 of 24
<PAGE>

                  reflected in the records of the LICENSEE. The audit shall also
                  indicate the PHS license number, product, and the time period
                  being audited. A report certified by the auditor shall be
                  submitted promptly by the auditor directly to PHS on
                  completion. LICENSEE shall pay for the entire cost of the
                  audit provided that it be in line with normal and customary
                  fees for such work throughout the industry.

9.       REPORTS ON PROGRESS, BENCHMARKS, SALES, AND PAYMENTS

         9.01     Prior to signing this AGREEMENT, LICENSEE has provided to PHS
                  the COMMERCIAL DEVELOPMENT PLAN at Appendix F, under which
                  LICENSEE intends to bring the subject matter of the LICENSED
                  PATENT RIGHTS to the point of PRACTICAL APPLICATION. This
                  COMMERCIAL DEVELOPMENT PLAN is hereby incorporated by
                  reference into this AGREEMENT Based on this plan, performance
                  BENCHMARKS are determined as specified in Appendix E.

         9.02     LICENSEE shall provide written annual reports on its product
                  development progress or efforts to commercialize under the
                  COMMERCIAL DEVELOPMENT PLAN for each of the LICENSED FIELDS OF
                  USE within sixty (60) days after December 31 of each calendar
                  year. These progress reports shall include, but not be limited
                  to: progress on research and development, status of
                  applications for regulatory approvals, manufacturing,
                  marketing, importing, and sales during the preceding calendar
                  year, as well as plans for the present calendar year. PHS also
                  encourages these reports to include information on any of
                  LICENSEE's public service activities that relate to the
                  LICENSED PATENT RIGHTS. If reported progress differs from that
                  projected in the COMMERCIAL DEVELOPMENT PLAN and BENCHMARKS,
                  LICENSEE shall explain the reasons for such differences. In
                  any such annual report, LICENSEE may propose amendments to the
                  COMMERCIAL DEVELOPMENT PLAN, acceptance of which by PHS may
                  not be denied unreasonably. LICENSEE agrees to provide any
                  additional information reasonably required by PHS to evaluate
                  LICENSEE's performance under this AGREEMENT. LICENSEE may
                  amend the BENCHMARKS at any time upon written consent by PHS.
                  PHS shall not unreasonably withhold approval of any request of
                  LICENSEE to extend the time periods of this schedule if such
                  request is supported by a reasonable showing by LICENSEE of
                  diligence in its performance under the COMMERCIAL DEVELOPMENT
                  PLAN and toward bringing the LICENSED PRODUCTS to the point of
                  PRACTICAL APPLICATION.

         9.03     LICENSEE shall report to PHS the dates for achieving
                  BENCHMARKS specified in Appendix E and the FIRST COMMERCIAL
                  SALE in each country in the LICENSED TERRITORY within thirty
                  (30) days of such occurrences.

         9.04     Beginning after the first commercial sale, LICENSEE shall
                  submit to PHS within sixty (60) days after each calendar
                  half-year ending June 30 and December 31 a royalty report
                  setting forth for the preceding half-year period the amount of
                  the LICENSED PRODUCTS sold or LICENSED PROCESSES practiced by
                  or on behalf of LICENSEE in each country within the LICENSED
                  TERRITORY, the NET SALES, and the amount of royalty
                  accordingly due. With each such royalty report, LICENSEE shall
                  submit payment of the earned royalties due. If no earned
                  royalties are due to PHS for any reporting period, the written
                  report shall so state. The royalty report shall be certified
                  as correct by an authorized officer of LICENSEE and shall
                  include a detailed listing of all deductions made under
                  Paragraph 2.10 to determine NET SALES made under Article 6 to
                  determine royalties due.

         9.05     Royalties due under Article 6 shall be paid in U.S. dollars.
                  For conversion of foreign currency to U.S. dollars, the
                  conversion rate shall be the New York foreign exchange rate
                  quoted in The Wall Street Journal on the day that the payment
                  is due. All checks and bank drafts shall be drawn on United
                  States banks and shall be payable, as appropriate, to
                  "NIH/Patent Licensing." All such payments shall be sent to the
                  following address: NIH, P.O. Box 360120, Pittsburgh, PA
                  15251-6120. Any loss of exchange, value, taxes, or other
                  expenses incurred in the transfer or conversion to U.S.
                  dollars shall be paid entirely by LICENSEE. The royalty report
                  required by Paragraph 9.04 of this AGREEMENT shall accompany
                  each such payment, and a copy of such report shall also be
                  mailed to PHS at its address for notices indicated on the
                  Signature Page of this AGREEMENT.

                                  Page 7 of 24

<PAGE>

         9.06     LICENSEE shall be solely responsible for determining if any
                  tax on royalty income is owed by LICENSEE outside the United
                  States and shall pay any such tax and be responsible for all
                  filings with appropriate agencies of foreign governments. Any
                  foreign tax credits received relative to such payments are for
                  the account of LICENSEE.

         9.07     Interest and penalties may be assessed by PHS on any overdue
                  payments in accordance with the Federal Debt Collection Act.
                  The payment of such late charges shall not prevent PHS from
                  exercising any other rights it may have as a consequence of
                  the lateness of any payment.

         9.08     All plans and reports required by this Article 9 and marked
                  "confidential" by LICENSEE shall, to the extent permitted by
                  law, be treated by PHS as commercial and financial information
                  obtained from a person and as privileged and confidential, and
                  any proposed disclosure of such records by the PHS under the
                  Freedom of Information Act (FOIA), 5 U.S.C. Section 552 shall
                  be subject to the predisclosure notification requirements of
                  45 CFR Section 5.65(d).

10.      PERFORMANCE

         10.01    LICENSEE shall use its reasonable best efforts to bring the
                  LICENSED PRODUCTS and LICENSED PROCESSES to PRACTICAL
                  APPLICATION. "Reasonable best efforts" for the purposes of
                  this provision shall include adherence to the COMMERCIAL
                  DEVELOPMENT PLAN at Appendix F and performance of the
                  BENCHMARKS at Appendix E.

         10.02    Upon the FIRST COMMERCIAL SALE, until the expiration of this
                  AGREEMENT, LICENSEE shall use its reasonable best efforts to
                  make LICENSED PRODUCTS and LICENSED PROCESSES reasonably
                  accessible to the United States public.

         10.03    Within one year following regulatory approval for marketing
                  LICENSED PRODUCTS in the United States, and subject to the
                  availability of sufficient supplies of Licensed Product to
                  meet the current demands of the market place, LICENSEE agrees
                  to establish an indigent patient access program for LICENSED
                  PRODUCTS, or to include LICENSED PRODUCTS in an existing
                  indigent patient access program, such that LICENSED PRODUCTS
                  may be provided to qualified indigent citizens of the United
                  States who are not covered under any public or private health
                  plan. "Sufficient supplies" means that there is enough product
                  in the trade or in inventory to fill orders as they are
                  received and that no back-order situation exists. LICENSEE
                  further agrees, one year following regulatory approval for
                  marketing LICENSED PRODUCTS in the United States, and as part
                  of its marketing and product promotion, to develop written
                  educational materials (including, for example, brochures and
                  advertisements) directed to patients and physicians detailing
                  the LICENSED PRODUCTS and therapeutic uses thereof. At no time
                  will the value of LICENSED PRODUCT donated to indigent patient
                  access programs surpass 5% of the total of LICENSED PRODUCT
                  sold or donated by LICENSEE.

11.      INFRINGEMENT AND PATENT ENFORCEMENT

         11.01    PHS and LICENSEE agree to notify each other promptly of each
                  infringement or possible infringement of the LICENSED PATENT
                  RIGHTS, as well as any facts which may affect the validity,
                  scope, or enforceability of the LICENSED PATENT RIGHTS of
                  which either Party becomes aware.

         11.02    In the event that a declaratory judgment action alleging
                  invalidity of any of the LICENSED PATENT RIGHTS shall be
                  brought against PHS, PHS agrees to notify LICENSEE that an
                  action alleging invalidity has been brought. PHS does not
                  represent that it will commence legal action to defend against
                  a declaratory action alleging invalidity. LICENSEE shall take
                  no action to compel the GOVERNMENT either to initiate or to
                  join in any such declaratory judgment action. Should the
                  GOVERNMENT be made a party to any such suit by motion or any
                  other action of LICENSEE,

                                  Page 8 of 24
<PAGE>

                  LICENSEE shall reimburse the GOVERNMENT for any costs,
                  expenses, or fees which the GOVERNMENT incurs as a result of
                  such motion or other action. Upon LICENSEE's payment of all
                  costs incurred by the GOVERNMENT as a result of LICENSEE's
                  joinder motion or other action, these actions by LICENSEE will
                  not be considered a default in the performance of any material
                  obligation under this AGREEMENT.

12.      NEGATION OF WARRANTIES AND INDEMNIFICATION

         12.01    PHS offers no warranties other than those specified in
                  Article 1.

         12.02    PHS does not warrant the validity of the LICENSED PATENT
                  RIGHTS and makes no representations whatsoever with regard to
                  the scope of the LICENSED PATENT RIGHTS, or that the LICENSED
                  PATENT RIGHTS may be exploited without infringing other
                  patents or other intellectual property rights of third
                  parties.

         12.03    PHS MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, OF
                  MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY
                  SUBJECT MATTER DEFINED BY THE CLAIMS OF THE LICENSED PATENT
                  RIGHTS OR TANGIBLE MATERIALS RELATED THERETO.

         12.04    PHS does not represent that it will commence legal actions
                  against third parties infringing the LICENSED PATENT RIGHTS.

         12.05    LICENSEE shall indemnify and hold PHS, its employees,
                  students, fellows, agents, and consultants harmless from and
                  against all liability, demands, damages, expenses, and losses,
                  including but not limited to death, personal injury, illness,
                  or property damage in connection with or arising out of: a)
                  the use by or on behalf of LICENSEE, its directors, employees,
                  or third parties of any LICENSED PATENT RIGHTS; or b) the
                  design, manufacture, distribution, or use of any LICENSED
                  PRODUCTS, LICENSED PROCESSES or materials by LICENSEE, or
                  other products or processes developed in connection with or
                  arising out of the LICENSED PATENT RIGHTS. LICENSEE agrees to
                  maintain a liability insurance program consistent with sound
                  business practice.

13.      TERM, TERMINATION, AND MODIFICATION OF RIGHTS

         13.01    This AGREEMENT is effective when signed by all parties and
                  shall extend to the expiration of the last to expire of the
                  LICENSED PATENT RIGHTS unless sooner terminated as provided in
                  this Article 13.

         13.02    The terms and conditions of this AGREEMENT shall be considered
                  by PHS to be withdrawn from LICENSEE's consideration and the
                  terms and conditions of this AGREEMENT and the AGREEMENT
                  itself to be null and void, unless this AGREEMENT is executed
                  within sixty (60) days from the date of printing indicated at
                  the bottom of each page.

         13.03    In the event that LICENSEE is in default in the performance of
                  any material obligations under this AGREEMENT, including but
                  not limited to the obligations listed in Paragraph 13.06, and
                  if the default has not been remedied within ninety (90) days
                  after the date of notice in writing of such default, PHS may
                  terminate this AGREEMENT by written notice and pursue
                  outstanding amounts owed through procedures provided by the
                  Federal Debt Collection Act.

         13.04    In the event that LICENSEE becomes insolvent, files a petition
                  in bankruptcy, has such a petition filed against it,
                  determines to file a petition in bankruptcy, or receives
                  notice of a third party's intention to file an involuntary
                  petition in bankruptcy, LICENSEE shall immediately notify PHS
                  in writing. Furthermore, PHS shall have the right to terminate
                  this AGREEMENT immediately upon LICENSEE's receipt of written
                  notice.

                                  Page 9 of 24
<PAGE>

         13.05    LICENSEE shall have a unilateral right to terminate this
                  AGREEMENT in any country or territory by giving PHS sixty (60)
                  days written notice to that effect.

         13.06    PHS shall specifically have the right to terminate or modify,
                  at its option, this AGREEMENT, if PHS determines that the
                  LICENSEE: 1) is not executing the COMMERCIAL DEVELOPMENT PLAN
                  attached in Appendix E and the LICENSEE cannot otherwise
                  demonstrate to PHS's satisfaction that the LICENSEE has taken,
                  or can be expected to take within a reasonable time, effective
                  steps to achieve PRACTICAL APPLICATION of the LICENSED
                  PRODUCTS or LICENSED PROCESSES; 2) has not achieved the
                  BENCHMARKS as may be modified under Paragraph 9.02; 3) has
                  willfully made a false statement of, or willfully omitted, a
                  material fact in the license application or in any report
                  required by the license AGREEMENT; 4) has committed a material
                  breach of a covenant or agreement contained in the license; 5)
                  is not keeping LICENSED PRODUCTS or LICENSED PROCESSES
                  reasonably available to the public after commercial use
                  commences; 6) cannot reasonably satisfy unmet health and
                  safety needs; or 7) cannot reasonably justify a failure to
                  comply with the domestic production requirement of Paragraph
                  5.02 unless waived. In making this determination, PHS will
                  take into account the normal course of such commercial
                  development programs conducted with sound and reasonable
                  business practices and judgment and the annual reports
                  submitted by LICENSEE under Paragraph 9.02. Prior to invoking
                  this right, PHS shall give written notice to LICENSEE
                  providing LICENSEE specific notice of, and a ninety (90) day
                  opportunity to respond to, PHS's concerns as to the previous
                  items 1) to 7). If LICENSEE fails to alleviate PHS's concerns
                  as to the previous items 1) to 7) or fails to initiate
                  corrective action to PHS's satisfaction, PHS may terminate
                  this AGREEMENT.

         13.07    PHS reserves the right according to 35 U.S.C. Section
                  209(f)(4) to terminate or modify this AGREEMENT if it is
                  determined that such action is necessary to meet requirements
                  for public use specified by federal regulations issued after
                  the date of the license and such requirements are not
                  reasonably satisfied by LICENSEE.

         13.08    Within thirty (30) days of receipt of written notice of PHS's
                  unilateral decision to modify or terminate this AGREEMENT,
                  LICENSEE may, consistent with the provisions of 37 CFR 404.11,
                  appeal the decision by written submission to the designated
                  PHS official. The decision of the designated PHS official
                  shall be the final agency decision. LICENSEE may thereafter
                  exercise any and all administrative or judicial remedies that
                  may be available.

         13.09    Within ninety (90) days of expiration or termination of this
                  AGREEMENT under this Article 13, a final report shall be
                  submitted by LICENSEE. Any royalty payments, including those
                  incurred but not yet paid (such as the full minimum annual
                  royalty), and those related to patent expense, due to PHS
                  shall become immediately due and payable upon termination or
                  expiration. Unless otherwise specifically provided for under
                  this AGREEMENT, upon termination or expiration of this
                  AGREEMENT, LICENSEE shall return all LICENSED PRODUCTS or
                  other materials included within the LICENSED PATENT RIGHTS to
                  PHS or provide PHS with certification of the destruction
                  thereof.

14.      GENERAL PROVISIONS

         14.01    Neither Party may waive or release any of its rights or
                  interests in this AGREEMENT except in writing. The failure of
                  the GOVERNMENT to assert a right hereunder or to insist upon
                  compliance with any term or condition of this AGREEMENT shall
                  not constitute a waiver of that right by the GOVERNMENT or
                  excuse a similar subsequent failure to perform any such term
                  or condition by LICENSEE.

         14.02    This AGREEMENT constitutes the entire agreement between the
                  Parties relating to the subject matter of the LICENSED PATENT
                  RIGHTS, and all prior negotiations, representations,
                  agreements, and understandings are merged into, extinguished
                  by, and completely expressed by this AGREEMENT.

                                 Page 10 of 24
<PAGE>

         14.03    The provisions of this AGREEMENT are severable, and in the
                  event that any provision of this AGREEMENT shall be determined
                  to be invalid or unenforceable under any controlling body of
                  law, such determination shall not in any way affect the
                  validity or enforceability of the remaining provisions of this
                  AGREEMENT.

         14.04    If either Party desires a modification to this AGREEMENT, the
                  Parties shall, upon reasonable notice of the proposed
                  modification by the Party desiring the change, confer in good
                  faith to determine the desirability of such modification. No
                  modification shall be effective until a written amendment is
                  signed by the signatories to this AGREEMENT or their
                  designees.

         14.05    The construction, validity, performance, and effect of this
                  AGREEMENT shall be governed by Federal law as applied by the
                  Federal courts in the District of Columbia.

         14.06    All notices required or permitted by this AGREEMENT shall be
                  given by prepaid, first class, registered or certified mail or
                  by an express/overnight delivery service provided by a
                  commercial carrier, properly addressed to the other Party at
                  the address designated on the following Signature Page, or to
                  such other address as may be designated in writing by such
                  other Party. Notices shall be considered timely if such
                  notices are received on or before the established deadline
                  date or sent on or before the deadline date as verifiable by
                  U.S. Postal Service postmark or dated receipt from a
                  commercial carrier. Parties should request a legibly dated
                  U.S. Postal Service postmark or obtain a dated receipt from a
                  commercial carrier or the U.S. Postal Service. Private metered
                  postmarks shall not be acceptable as proof of timely mailing.

         14.07    This AGREEMENT shall not be assigned by LICENSEE except: a)
                  with the prior written consent of PHS, such consent not to be
                  withheld unreasonably; or b) as part of a sale or transfer of
                  substantially the entire business of LICENSEE relating to
                  operations which concern this AGREEMENT. LICENSEE shall notify
                  PHS within ten (10) days of any assignment of this AGREEMENT
                  by LICENSEE, and LICENSEE shall pay PHS, as an additional
                  royalty, one percent (1%) of the fair market value of any
                  consideration received for any assignment of this AGREEMENT
                  within thirty (30) days of such assignment.

         14.08    LICENSEE agrees in its use of any PHS-supplied materials to
                  comply with all applicable statutes, regulations, and
                  guidelines, including PHS and DHHS regulations and guidelines.
                  LICENSEE agrees not to use the materials for research
                  involving human subjects or clinical trials in the United
                  States without complying with 21 CFR Part 50 and 45 CFR Part
                  46. LICENSEE agrees not to use the materials for research
                  involving human subjects or clinical trials outside of the
                  United States without notifying PHS, in writing, of such
                  research or trials and complying with the applicable
                  regulations of the appropriate national control authorities.
                  Written notification to PHS of research involving human
                  subjects or clinical trials outside of the United States shall
                  be given no later than sixty (60) days prior to commencement
                  of such research or trials.

         14.09    LICENSEE acknowledges that it is subject to and agrees to
                  abide by the United States laws and regulations (including the
                  Export Administration Act of 1979 and Arms Export Control Act)
                  controlling the export of technical data, computer software,
                  laboratory prototypes, biological material, and other
                  commodities. The transfer of such items may require a license
                  from the cognizant Agency of the U.S. GOVERNMENT or written
                  assurances by LICENSEE that it shall not export such items to
                  certain foreign countries without prior approval of such
                  agency. PHS neither represents that a license is or is not
                  required or that, if required, it shall be issued.

         14.10    LICENSEE agrees to mark the LICENSED PRODUCTS or their
                  packaging sold in the United States with all applicable U.S.
                  patent numbers and similarly to indicate "Patent Pending"
                  status. All LICENSED PRODUCTS manufactured in, shipped to, or
                  sold in other countries shall be marked in such a manner as to
                  preserve PHS patent rights in such countries.

                                 Page 11 of 24
<PAGE>

         14.11    By entering into this AGREEMENT, PHS does not directly or
                  indirectly endorse any product or service provided, or to be
                  provided, by LICENSEE whether directly or indirectly related
                  to this AGREEMENT. LICENSEE shall not state or imply that this
                  AGREEMENT is an endorsement by the GOVERNMENT, PHS, any other
                  GOVERNMENT organizational unit, or any GOVERNMENT employee.
                  Additionally, LICENSEE shall not use the names of NIH, CDC,
                  PHS, or DHHS or the GOVERNMENT or their employees in any
                  advertising, promotional, or sales literature without the
                  prior written consent of PHS.

         14.12    The Parties agree to attempt to settle amicably any
                  controversy or claim arising under this AGREEMENT or a breach
                  of this AGREEMENT, except for appeals of modifications or
                  termination decisions provided for in Article 13. LICENSEE
                  agrees first to appeal any such unsettled claims or
                  controversies to the designated PHS official, or designee,
                  whose decision shall be considered the final agency decision.
                  Thereafter, LICENSEE may exercise any administrative or
                  judicial remedies that may be available.

         14.13    Nothing relating to the grant of a license, nor the grant
                  itself, shall be construed to confer upon any person any
                  immunity from or defenses under the antitrust laws or from a
                  charge of patent misuse, and the acquisition and use of rights
                  pursuant to 37 CFR Part 404 shall not be immunized from the
                  operation of state or Federal law by reason of the source of
                  the grant.

         14.14    Paragraphs 8.01, 9.06-9.08, 12.01-12.05, 13.07, 13.08, 13.09,
                  and 14.12 of this AGREEMENT shall survive termination of this
                  AGREEMENT.

                          SIGNATURES BEGIN ON NEXT PAGE

                                 Page 12 of 24
<PAGE>

                   PHS PATENT LICENSE AGREEMENT--NONEXCLUSIVE

                                 SIGNATURE PAGE

For PHS:

/s/ Steven M. Ferguson                                                 3/2/04
-------------------------                                              ---------
Steven M. Ferguson                                                     Date
Director, Division of Technology Development and Transfer
Office of Technology Transfer
National Institutes of Health

Mailing Address for Notices:

Office of Technology Transfer
National Institutes of Health
6011 Executive Boulevard, Suite 325
Rockville, Maryland  20852-3804  U.S.A.

For LICENSEE (Upon, information and belief, the undersigned expressly certifies
or affirms that the contents of any statements of LICENSEE made or referred to
in this document are truthful and accurate.):

by:

/s/ William D. Johnston                                     3/2/04
________________________________________                    _______________
Signature of Authorized Official                            Date

William D. Johnston
________________________________________
Printed Name

President and CEO
________________________________________
Title

Official and Mailing Address for Notices:

1165 Sanctuary Parkway, Suite 400

Alpharetta, GA 30004

Any false or misleading statements made, presented, or submitted to the
GOVERNMENT, including any relevant omissions, under this AGREEMENT and during
the course of negotiation of this AGREEMENT are subject to all applicable civil
and criminal statutes including Federal statutes 31 U.S.C. Sections 3801-3812
(civil liability) and 18 U.S.C. Section 1001 (criminal liability including
fine(s) and/or imprisonment).

                                 Page 13 of 24

<PAGE>

                 APPENDIX A--PATENT(S) OR PATENT APPLICATION(S)

PATENT(S) OR PATENT APPLICATION(S):

United States Patent Serial Number 07/702,217 (PHS reference number
E-163-1991/0-US-01) filed May 17, 1991;

United States Patent Serial Number 08/109,187 (PHS reference number
E-163-1991/1-US-01) filed August 19, 1993;

United States Patent Serial Number 08/609,218 (PHS reference number
E-163-1991/1-US-03) filed March 1, 1996;

United States Patent Serial Number 08/905,280 (PHS reference number
E-163-1991/2-US-01) filed August 1, 1997; and

United States Patent Serial Number 09/810,502 (PHS reference number
E-163-1991/2-US-02) filed March 16, 2001, all entitled, "A Method for reducing
the immunogenicity of antibody variable domains," and all continuations,
reissues, divisionals and corresponding foreign patent(s) or patent
application(s).

                                 Page 14 of 24

<PAGE>

                APPENDIX B--LICENSED FIELDS OF USE AND TERRITORY

LICENSED FIELDS OF USE:

         For use in monoclonal antibodies for the prophylactic and therapeutic
treatment of bacterial and fungal infections.

LICENSED TERRITORY:

         Worldwide

                                 Page 15 of 24

<PAGE>

                              APPENDIX C--ROYALTIES

[  ***  ]

                                 Page 16 of 24
<PAGE>

                           APPENDIX D--MODIFICATIONS

PHS and LICENSEE agree to the following modifications to the Articles and
Paragraphs of this AGREEMENT:

All modifications are incorporated into the body and other appendices of this
AGREEMENT.

                                 Page 17 of 24

<PAGE>

                     APPENDIX E--BENCHMARKS AND PERFORMANCE

LICENSEE agrees to the following Commercial Development BENCHMARKS for its
performance under this AGREEMENT and, within thirty (30) days of achieving a
BENCHMARK, shall notify PHS that the BENCHMARK has been achieved.

First patient enrolled in Aurexis Phase II Clinical Trial      [  ***  ]

First patient enrolled in Aurexis Phase III Clinical Trial     [  ***  ]

BLA submission for Aurexis                                     [  ***  ]

First Commercial Sale                                          [  ***  ]

                                 Page 18 of 24

<PAGE>

                     APPENDIX F--COMMERCIAL DEVELOPMENT PLAN

                           COMMERCIAL PLAN FOR AUREXIS

         [  ***  ]

                                 Page 19 of 24
<PAGE>

          [  ***  ]

                                 Page 20 of 24
<PAGE>

         [  ***  ]

                                 Page 21 of 24

<PAGE>

     [  ***  ]

                                 Page 22 of 24

<PAGE>

         [  ***  ]

                                 Page 23 of 24

<PAGE>

         [  ***  ]

                                 Page 24 of 24

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