Document:

Exhibit 10.1

    
      
        

      

    

    Exhibit
      10.1

    

    AGREEMENT
      AND 

    MUTUAL
      RELEASE

    

    This
      Agreement and Mutual Release (this “Agreement” or “Mutual Release”) entered into
      on August 22, 2007, (“Effective Date”) is by and between Blast Energy Services,
      Inc., a California corporation, and Eagle Domestic Drilling Operations, LLC,
      a
      Texas limited liability company wholly owned by Blast (collectively referred
      to
      herein as “Blast”) and Thornton Business Security Trust, a Nevada Trust, (the
“Trust”), collectively referred to as the “Parties.”

    

    

    1. Facts.

    

    
      	 	
              1.1

            	
              As
                of the Effective Date, the Trust is the owner and holder of 16,477,500
                shares of Blast Common Stock (the “Trust Common Stock”). The Trust Common
                Stock has not been registered by Blast, as previously agreed at the
                time
                of purchase, and is not freely tradable at this
                time.

            

    

     

    
      	 	
              1.2

            	
              The
                trustee of the Trust has decided to offer to sell to Blast all shares
                of
                the Trust Common Stock.

            

    

     

    
      	 	
              1.3

            	
              Sale
                of the Trust Common Stock to Blast would result in a complete redemption
                of the Trust Common Stock.

            

    

     

    
      	 	
              1.4

            	
              Subject
                to the approval of the United States Bankruptcy Court for the Southern
                District of Texas (the “Bankruptcy Court”) having jurisdiction over
                Blast’s current Chapter 11 reorganization case, Blast has determined it
                is
                in the best interest of Blast, its creditors and its Chapter 11 estate
                to
                complete the repurchase of the Trust Common Stock on the Effective
                Date
                and enter into this Mutual Release on the terms and conditions set
                forth
                herein.

            

    

     

    2. Settlement.

    

    
      	 	
              2.1

            	
              The
                Trust agrees
                that in consideration for Blast agreeing to the terms and conditions
                of
                Section 3.2 below; the Trust agrees to the terms and conditions of
                Section
                3.1 below (the “Blast
                Consideration”).

            

    

    

    
      	 	
              2.2

            	
              Blast
                agrees that in consideration for the Trust agreeing to the terms
                and
                conditions of Section 3.1 below, Blast agrees to the terms and conditions
                of Section 3.2_ below (the “Trust
                Consideration”).

            

    

    

    
      	 	
              2.3

            	
              The
                Trust agrees that it will receive full and valid consideration from
                the
                Blast Consideration.

            

    

    

    
      	 	
              2.4

            	
              Blast
                agrees that it will receive full and valid consideration from the
                Trust
                Consideration.

            

    

     

    3.Mutual
      Release. 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              3.1

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                the
                Trust, for itself, its agents, servants, attorneys, employees, successors
                and assigns, hereby covenant and agree as
                follows:

            

    

    

    
      	 	
              3.1.1

            	
              That
                the Trust hereby releases, acquits and forever discharges Blast,
                its
                current and former agents, officers, directors, servants, attorneys,
                representatives, successors, employees and assigns (the “Blast Parties”)
                from any and all rights, obligations, claims, demands and causes
                of
                action, whether in contract, tort, under state and/or federal law,
                or
                state and/or federal securities regulations, whether asserted or
                unasserted, whether known or unknown, suspected or unsuspected, for
                or by
                reason of any matter, cause or thing whatsoever, including all obligations
                arising therefrom, and omissions and/or conduct of Blast, and/or
                Blast’s
                agents, attorneys, servants, representatives, successors, employees,
                directors, officers and assigns, relating directly or indirectly
                thereto.

            

    

    

    
      	 	
              3.1.3

            	
              At
                the time of payment of the Purchase Price which shall be made on
                or before
                August 22, 2007, the Trust shall deliver the Trust Common Stock
                appropriately endorsed by the
                trustee.

            

    

    

    
      	 	
              3.1.4

            	
              In
                consideration of the terms of this Mutual Release, the Trust makes
                the
                following representations and warranties to Blast and the Bankruptcy
                Court
                in conjunction with Blast’s seeking approval to consummate this Agreement,
                which warranties and representations and agreements shall survive
                the
                Bankruptcy Court’s approval of the
                Agreement:

            

    

     

    
      	 	
              a)

            	
              The
                Trust has access to and that it has carefully read the following
                disclosures:

            

    

     

    
      	 	
              (i)

            	
              Blast’s
                Form 10-KSB for the period ended December 31, 2006 (the “Form 10-KSB”);
                and

            

    

     

    
      	 	
              (ii)

            	
              All
                other documents filed by Blast with the SEC subsequent to the Blast’s Form
                10-KSB and prior to the date of this Agreement, including without
                limitation, the “Risk Factors” in the 10-KSB;
                and

            

    

     

    
      	 	
              (iii)

            	
              There
                are certain disclosures made in (i) and (ii) specifically with respect
                to
                the Trust, which the Trust does not agree with and which a Trust
                representative has pointed out to Blast orally and in writing. At
                this
                time such differences have not yet been resolved.
                

            

    

     

    
      	 	
              b)

            	
              With
                respect to trust tax and other economic considerations that may be
                involved in connection with this Agreement, the Trust is not relying
                on
                Blast, other than through the opinion of Blast’s corporate counsel in
                relation to exemption from securities registration, as set forth
                below..

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	 	
              c)

            	
              The
                Trust and/or the Trust’s advisor(s) has/have had a reasonable opportunity
                to ask questions of and receive answers and to request additional
                relevant
                information from a person or persons acting on behalf of Blast concerning
                this Agreement and the consequences of the sale of the Common Stock
                provided for in this Agreement.

            

    

     

    
      	 	
              d)

            	
              The
                Trust, its trustee and the Trust’s advisor(s) have such knowledge and
                experience in financial, tax and business matters so as to enable
                the
                Trust to use the information made available to the Trust in connection
                with this Agreement to evaluate the merits, consequences and risks
                and to
                make an informed decision with respect
                thereto.

            

    

     

    
      	 	
              e)

            	
              The
                trustee of the Trust has the sole and full legal right, title, interest
                and power over the Trust Common Stock, and all authority and approval
                required to sell, execute and deliver, or authorize execution and
                delivery
                of, this Agreement and the sale of the Trust Common Stock and all
                other
                instruments executed and delivered by or on behalf of the Trust in
                connection with the sale of the Trust Common
                Shares.

            

    

     

    
      	 	
              f)

            	
              The
                signature of the trustee signing on behalf of the Trust is the sole
                authority necessary to bind the
                Trust.

            

    

     

    
      	 	
              3.2 

            	
              In
                consideration of the agreements and covenants set forth herein above
                and
                below, the sufficiency of which is hereby acknowledged and confessed,
                Blast, for itself, its officers, its directors and its agents, servants,
                representatives, successors, attorneys, employees and assigns , hereby
                covenants and agrees as follows: 

            

    

     

    
      	 	
              3.2.1

            	
              That
                Blast hereby releases, acquits and forever discharges the Trust,
                the
                trustees of the Trust, the beneficiaries of the Trust, attorneys,
                agents,
                accountants, representatives, and employees from any and all rights,
                obligations, claims, demands and causes of action, whether in contract,
                tort, under state and/or federal law, or state and/or federal securities
                regulations, whether asserted or unasserted, whether known or unknown,
                suspected or unsuspected, and/or Blast in general, for or by reason
                of any
                matter, cause or thing whatsoever, including all obligations arising
                therefrom, and omissions and/or conduct of the Trust and/or its trustees,
                beneficiaries, agents, attorneys, servants, representatives, successors,
                employees, and assigns, relating directly or indirectly
                thereto;

            

    

    

    
      	 	
              3.2.2

            	
              Blast
                shall pay the trustee of the Trust $16.48 in cash (“Purchase Price”) as
                full and valid consideration for the Trust Common
                Stock;

            

    

     

    
      	 	
              3.2.3

            	
              The
                Purchase Price shall be paid on or before August 22, 2007 following
                the
                entry of an order by the Bankruptcy Court approving this Agreement
                and
                authorizing Blast to purchase the Trust Common Stock and without
                any
                change by the Bankruptcy Court in the
                terms

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    of
      this
      Agreement as set forth by this Agreement; or this Agreement shall terminate
      immediately without further obligation hereto; and

    

    
      	 	
              3.2.4

            	
              Blast
                agrees to make an immediate and timely disclosure of the above facts
                in
                its filings with the United States Securities and Exchange Commission.
                

            

    

    
      

      
        	
                4.

              	
                Legal
                  Opinion Regarding the Sale of the Trust Common
                  Stock.

              

      

       

    

    Blast
      agrees that following the receipt by Blast’s corporate counsel of any required
      transfer documentation, this Agreement as Executed by the Trust, that Blast’s
      corporate counsel will issue an opinion to trustee of the Trust for the
      trustee’s reliance thereon, that the transfer of the Trust Common Stock as
      contemplated hereby will be exempt from registration under the Securities Act
      of
      1933, as amended (the “Opinion”). The parties agree that the issuance of the
      Opinion shall be a condition precedent to the consummation of the transactions
      contemplated herein and such Opinion shall be completed in writing and delivered
      to the trustee of the Trust on August 22, 2007 and may be faxed to counsel
      for
      the trustee.

     

    5. Miscellaneous.

     

    
      	 	
              5.1

            	
              Deliberately
                Omitted.

            

    

    

    
      	 	
              5.2

            	
              No
                Other Cause of Action.
                The Parties are not aware of any claims not being released herein
                against
                them. 

            

    

    

    
      	 	
              5.3

            	
              Capacity
                and Authorization.
                The Parties to this Mutual Release further represent that they have
                read
                it in full before its execution and that they fully understand the
                meaning, operation and effect of its terms. Each individual signing
                this
                Mutual Release warrants and represents that he or she has the full
                authority and is duly authorized and empowered to execute this Mutual
                Release on behalf of the Party for which he or she
                signs.

            

    

     

    
      	 	
              5.4

            	
              Assignments.
                The Trust represents that it has not assigned, in whole or in part,
                any
                claims, demands and/or causes of action against Blast to any person
                or
                entity prior to their execution of this Mutual Release. Blast represents
                that it is not aware of any assignment, in whole or in part, any
                claim,
                demand and/or causes of action against the Trust to any person or
                entity
                prior to its execution of this Mutual Release.

            

    

    

    
      	 	
              5.5

            	
              Binding
                Effect.
                This is an arms-length transaction and entry into a Mutual Release
                shall
                be binding on and inure to the benefit of the Parties and their trustees,
                respective heirs, successors, assigns, directors, officers, agents,
                employees and personal representatives.

            

    

    

    
      	 	
              5.6

            	
              Modification.
                No
                modification or amendment of this Mutual Release shall be effective
                unless
                such modification or amendment shall be in writing and signed by
                all
                Parties hereto. 

            

    

     

    
      	
            	
              5.7

            	
              No
                Admission of Liability. Each
                Party acknowledges and agrees that this Mutual Release is a compromise
                of
                disputed claims and neither this Mutual Release, nor any consideration
                provided pursuant to this Mutual
                Release,

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    shall
      be
      taken or construed to be an admission or concession by either the Trust or
      Blast
      of any kind with respect to any fact, liability, or fault.

    

    
      	 	
              5.8

            	
              Entire
                Agreement.
                This Mutual Release constitutes the entire agreement between the
                Parties
                pertaining to the subject matter hereof and supersedes all prior
                and
                contemporaneous agreements, understandings, negotiations and discussions,
                whether oral or written, of the Parties in connection with the subject
                matter hereof. 

            

    

    

    
      	 	
              5.9.

            	
              Interpretation.
                The interpretation, construction and performance of this Mutual Release
                shall be governed by the laws of the State of Nevada, as the Trust
                is
                governed by Nevada Law and only Nevada Law shall be used as to its
                interpretation or construction. Whenever used herein, the singular
                number
                shall include the plural, the plural shall include the singular and
                the
                use of any gender shall be applicable to all genders. This Agreement
                does
                not represent and shall not in any manner be construed as an appearance
                by
                the Trust in the Bankruptcy Court or consent to or submission of
                jurisdiction over the Trust of the Bankruptcy
                Court.

            

    

    

    
      	 	
              5.10.

            	
              Faxed
                Signatures.
                For purposes of this Mutual Release a faxed signature shall constitute
                an
                original signature. 

            

    

    

    
      	 	
              5.11.

            	
              Execution.
                This Mutual Release may be executed in several counterparts, each
                of which
                shall be deemed an original, and such counterparts taken together
                shall
                constitute but one and the same Mutual Release. A photocopy of this
                Mutual
                Release shall be effective as an original for all purposes.
                

            

      

      6. Court
        Approval. 

       

      Blast
        seeks the approval of the Bankruptcy Court to enter into the terms and
        conditions of this Agreement and Mutual Release. Before the Effective Date,
        Blast will file an appropriate motion requesting such authorization by the
        Bankruptcy Court to complete the purchase of the Trust Common Stock. The
        Trust
        is not seeking the approval of the Bankruptcy Court, as the Trust has not
        entered an appearance nor does the Trust submit or agree to the jurisdiction
        of
        the Bankruptcy Court over the Trust.

       

    

    

    

     

    

    

    

    

    

    [Remainder
      of page left intentionally blank. Signature page follows.]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    IN
      WITNESS WHEREOF,
      intending to be legally bound, the Parties hereto have executed this Mutual
      Release as of the date first written above. 

    

    Blast
      Energy Services,
      Inc.

    

    

         By:___/s/
      John O’Keefe____________

    John
      O’
Keefe

    Chief
      Executive Officer

    

    

    

    Thornton
      Business Security Trust

    

    

    By:__
      /s/Jeffery Brown___________

    Jeffery
      Brown, TrusteeExhibit 10.1

                               [Nektar Letterhead]

August 9, 2007

Mr. Tim Harkness
[Personal Address]
[Personal Address]

Dear Tim:

I am pleased and excited to offer you the position of Senior Vice President and
Chief Financial Officer of Nektar Therapeutics ("Nektar" or the "Company")
reporting directly to me. Accordingly, I present you with this offer letter
agreement setting forth certain terms and conditions of your employment.
Capitalized terms used herein and not defined shall have the meanings ascribed
to them in the Company's Change of Control Severance Benefit Plan, as it may be
amended from time to time (the "COC Plan").

Your annual cash compensation will consist of two components: base salary and an
annual performance bonus. Your base salary will be $440,000 on an annual basis
and paid in accordance with Nektar's regular payroll schedule. Your annual
performance bonus target each year will be at least 50% of your annual base
salary for each annual period and $220,000 pro-rated for your partial period of
service in 2007 ("Target Annual Bonus"). Your base salary and Target Annual
Bonus shall be subject to annual performance review by the Compensation
Committee of the Board of Directors ("Compensation Committee") in consultation
with me for appropriate upward adjustment. The actual amount of your annual
performance bonus will range from 0% to 150% of the Target Annual Bonus based on
the Compensation Committee's assessment in consultation with me of the
achievement of a combination of annual corporate objectives and your achievement
of personal objectives agreed upon by you and me at the beginning of each annual
performance period; provided that your objectives for your partial period of
service in 2007 will be agreed upon by you and I as soon as practicable
following your start date. Your annual performance bonus for the prior year will
be paid in the first calendar quarter of each year within the period of time
required to avoid taxes and penalties under Section 409A of the Internal Revenue
Code.

Subject to approval by the Compensation Committee prior to and effective as of
your first day of full-time employment with Nektar ("Start Date"), you will be
granted (i) a stock option to purchase 200,000 shares of Nektar common stock
(the "Initial Option", which together with any subsequent stock options you may
receive, are the "Stock Options") under Nektar's 2000 Equity Incentive Plan
("2000 Plan") and (ii) a restricted stock unit for 10,000 shares ("RSU") of
Nektar common stock under the 2000 Plan. The maximum number of shares subject to
the Stock Options will be granted as incentive stock options within the meaning
of Section 422 of the Internal Revenue Code to the extent permissible under
Section 10(d) of the 2000 Plan. The remainder of shares subject to the Stock
Options will be granted as non-statutory stock options. The exercise price will
be set at the closing price of Nektar's common stock on Nasdaq on your Start
Date in the case of the Initial Option or at the date determined by the
Compensation Committee in the case of any subsequent Stock Options. The shares
subject to the Initial Option will vest according to a 4-year vesting schedule
for so long as you provide Continuous Service (as defined in the 2000 Plan) to
the Company with 25% of the shares subject to the Initial Option vesting on the
one year anniversary of your Start Date and the remainder vesting monthly on a
pro-rata basis over the following 3 years. The shares subject to the RSU will
vest according to a 4-year vesting schedule for so long as you provide
Continuous Service to the Company with 25% of the shares subject to the RSU
vesting on the one year anniversary of your Start Date and the remainder vesting
on an annual pro-rata basis over the following 3 years.

                                       5
<PAGE>

You will be eligible for annual equity awards, in the sole discretion of the
Compensation Committee, based on the Compensation Committee's review, in
consultation with me, of your individual performance and annual equity
compensation levels of chief financial officers of comparator companies as
analyzed by a reputable, nationally-recognized, independent compensation
consultancy firm.

You will also be eligible to participate in Nektar's executive benefits program
including medical, dental and vision insurance, term life insurance, 401(k), the
flexible health spending plan, short & long-term disability upon the terms
specified in those plans, and the COC Plan.

Your employment is by continued mutual agreement and may be terminated at will
with or without cause by either you or Nektar at any time with or without
advanced notice. You will also be required to enter into Nektar's standard
Employment Agreement, a copy of which is attached as Exhibit A hereto. As we
have discussed, we currently expect your Start Date to be on August 24, 2007.

In the event of your death or Disability (as defined in the 2000 Plan), (a) 50%
of the unvested shares under your Stock Options will automatically vest in the
event of your Disability and 100% shall automatically vest in the event of your
death, (b) Nektar will pay to you or your estate, as applicable, all
unreimbursed expenses, all of your then accrued but unpaid base salary, and your
target bonus prorated for the portion of the last year in which you were
employed by Nektar prior to death or Disability, and (c) you and your dependents
shall be entitled to continued medical, dental, and vision insurance for
yourself and your dependents, at your or their expense, at the same level of
coverage as was provided to you and your dependents under Nektar's insurance and
benefits plans immediately prior to the termination by electing COBRA
continuation coverage in accordance with applicable law.

In the event your employment is terminated for reasons not related to a Change
of Control (a) by the Company without Cause; or (b) by you for a Good Reason
Resignation, then you and the Company will meet in good faith to discuss the
terms of an appropriate separation. In any event, at a minimum, the Company will
enter into a severance arrangement with you which will include the following:
(i) a fully effective mutual waiver and release in such form as the Company may
reasonably require, (ii) a cash severance payment equal to your total annual
cash compensation target (defined as your current monthly base salary annualized
for 12 months, plus your bonus target multiplied by the expected pay-out
percentage used by the Company for its GAAP financial statements in the previous
calendar quarter, but not to exceed 100%), payable in accordance with the
severance payment schedule described in the COC Plan and subject to such delay
in payment required for compliance with Section 409A, (iii) pro-rata vesting
credit (based on conversion of the vesting schedule to a monthly vesting
schedule) on your Initial Option through the date of termination if your
termination occurs prior to the first anniversary of the Start Date, based on
months completed since your Start Date, (iv) the exercise period for the vested
and unexercised portion of your Initial Option shall be 12 months following the
termination date and (v) the Company shall pay all applicable COBRA payments for
you and your family for one year after the termination date (such payments shall
cease in the event that you become eligible for comparable benefits with another
employer).

                                       6
<PAGE>

In compliance with the terms of the Federal Immigration Reform and Control Act,
you will be required to provide us with proof of authorization to work and proof
of identity.

The terms, compensation and benefits set forth in this letter, which shall be
governed by California law, without reference to principles of conflicts of
laws, may not be reduced without your prior written consent and shall be binding
upon and inure to the benefit of (a) your heirs, executors, and legal
representatives upon your death and (b) any person or entity which at any time,
whether by purchase, merger, or otherwise, directly or indirectly acquires all
or a majority of the assets, business, capital stock, or voting stock of the
Nektar. Any such person or entity shall be deemed substituted for the Nektar
under this letter for all purposes.

                                       7
<PAGE>

Tim, I am delighted at the prospect of your leadership at Nektar as Senior Vice
President and Chief Financial Officer. Please feel free to call me if you have
any questions and I look forward to working with you.

Sincerely,

/s/ Howard W. Robin

Howard W. Robin
President and Chief Executive Officer

OFFER ACCEPTED:

/s/ Tim Harkness                        August 10, 2007
----------------                        ---------------
Tim Harkness                            Date

                                       8
<PAGE>

                                    EXHIBIT A

EMPLOYEE AGREEMENT

      In consideration of my employment or continued employment by Nektar
Therapeutics, its subsidiaries or affiliates (collectively, the "Company"), I,
_________________________ (name) residing at __________________________
(address), agree as of the date I was first employed by Company as follows:

      1. Entire Agreement: This Agreement sets forth the complete and entire
agreement between Company and me and supersedes any and all previous oral or
written communications, discussions and agreements between Company and me with
respect to the subject of this Agreement.

      2. Employment:

      a. Duty of Loyalty. During the period of my employment by the Company, I
shall devote my full time and best efforts to the business of the Company, and I
shall neither pursue any business opportunity outside the Company nor take any
position with any organization other than as authorized in writing by the Chief
Executive Officer of the Company. While employed by the Company, I will avoid
all conflicts of interest and will not compete with the Company or undertake
other acts of disloyalty.

      b. Change in Jobs. I agree that all of my obligations under this Agreement
will remain in full force and effect should I receive a promotion, demotion or
experience a change in job title or duties while employed by the Company.

      c. Employment at Will. I agree that this Agreement does not guarantee my
continued employment with the Company. I acknowledge that, unless I enter into a
written employment agreement with the Company that provides for a specified
period of employment, I am employed "at-will," meaning that either the Company
or I may terminate the employment relationship at any time, for any or no
reason, with or without cause or prior notice.

      3. Assignment of Developments:

      a. Assignment to Company. If at any time or times during my employment or
other association with the Company, I shall (either alone or with others) make,
conceive, create, discover, invent or reduce to practice any development that
(i) relates to the business of the Company or any of the products or services
being explored, developed, manufactured or sold by the Company or which may be
used in relation therewith; or (ii) results from tasks assigned to me by the
Company; or (iii) results from the use of premises or personal property (whether
tangible or intangible) owned, leased or contracted for by the Company
(hereinafter collectively referred to as "Developments"), then all such
Developments and the benefits thereof are and shall immediately become the sole
and absolute property of the Company and its assigns, as works made for hire or
otherwise. I shall promptly disclose to the Company (or any persons designated
by it) each such Development. I hereby assign all rights (including, but not
limited to, rights to inventions, patentable subject matter, copyrights and
trademarks) I may have or may acquire in the Developments, as well as all
benefits and/or rights resulting therefrom, to the Company and its assigns
without further compensation and shall communicate, without cost or delay, and
without disclosing to others the same, all available information relating
thereto (with all necessary plans and models) to the Company.

<PAGE>

      b. Requirement to Provide Assistance. I agree to assist the Company, or
its designee, at the Company's expense, in every proper way to secure the
Company 's rights in the Developments and any copyrights, patents, trademarks,
and trade secret rights or other intellectual property rights in connection with
any such Developments in any and all countries, including the disclosure to the
Company of all pertinent information and data with respect thereto, the
execution of all applications, specifications, oaths, assignments and all other
instruments which the Company shall deem necessary in order to apply for and
obtain such rights and in order to assign and convey to the Company, its
successors, assigns, and nominees the sole and exclusive rights, title and
interest in and to such Developments, and any copyrights, patents, trademark and
other intellectual property rights relating thereto. I further agree that my
obligation to execute or cause to be executed, when it is in my power to do so,
any such instrument or papers shall continue after the termination of this
Agreement. If the Company is unable, because of my mental or physical incapacity
or for any other reason, to secure my signature to apply for or to pursue any
application for any United States or foreign patents or copyright registrations
covering Developments or original works of authorship assigned to the Company as
above, then I hereby irrevocably designate and appoint the Company and its duly
authorized officers and agents as my agent and attorney in fact, to act for and
in my behalf and stead to execute and file any such applications and to do all
other lawfully permitted acts to further the prosecution and issuance of letters
patent or copyright registrations thereon with the same legal force and effect
as if executed by me.

      c. Works Made For Hire. I will promptly disclose to the Company all
material which I produce, compose or write, individually or in collaboration
with others, which arises out of work delegated to me by the Company. I agree
that all such material constitutes a work for hire, and at the expense of the
Company, I will assign to the Company all my interest in such copyrightable
material and will sign all papers and do all other acts necessary to assist the
Company to obtain copyrights on such material in any and all countries.

      d. Ongoing Notice Obligation. I agree that for a period of one (1) year
following the termination of my employment for any reason, I will notify the
Company immediately of any and all creations, discoveries, inventions or other
developments made by me (either alone or with others) that relate to the
business of the Company or relate to research and development in which I was
involved during the course of my employment by the Company. Any such creation,
discovery, invention or other development relating to the Company's business
made by me (either alone or with others) within one (1) year following the
termination of my employment shall be presumed to be owned by the Company.

      e. Inventions Not Assigned to Company. I understand and acknowledge that
the assignment of Developments under this Agreement does not apply to an
invention which qualifies fully for protection under section 2870 California
Labor Code section, a copy of which is attached as Appendix A, which pertains to
any rights I may have acquired in connection with an invention, discovery or
improvement that was developed entirely on my own time for which no equipment,
supplies, facilities or trade secret information of the Company was used and (a)
that does not relate directly or indirectly to the business of the Company or to
the Company's actual or demonstrably anticipated research or development, or (b)
that does not result from any work performed by me for the Company.

<PAGE>

      f. Disclosure of Prior Inventions. I represent that the creations,
discoveries, inventions or other developments identified in Appendix B attached
hereto ("Prior Developments"), if any, comprise all the Prior Developments that
I made or conceived prior to my employment by the Company, which Prior
Developments are excluded from this Agreement. I understand that it is only
necessary to list the title of such Prior Developments and the purpose thereof,
but not details of the Prior Development itself. IF THERE ARE ANY SUCH
DEVELOPMENTS TO BE EXCLUDED, THE UNDERSIGNED SHOULD INITIAL HERE; OTHERWISE IT
WILL BE DEEMED THAT THERE ARE NO SUCH EXCLUSIONS.

      4. Nondisclosure of Confidential Information: I shall not at any time,
whether during or after the termination of my employment, reveal to any person
or entity any Confidential Information except to employees of the Company who
need to know such Confidential Information for the purposes of their employment,
or as otherwise authorized by the Company in writing. The term "Confidential
Information" shall include any information concerning the organization, business
or finances of the Company or of any third party which the Company is under an
obligation to keep confidential that is maintained by the Company as
confidential. Such Confidential Information shall include, but is not limited
to, trade secrets or confidential information respecting methods, know-how,
techniques, systems, processes, specifications, blueprints, formulae, devices,
models, software programs, works of authorship, customer lists, partner lists,
customer information, financial information, pricing or commission information,
business plans, projects, plans and proposals. I shall keep confidential all
matters entrusted to me and shall not use or attempt to use any Confidential
Information except as may be required in the ordinary course of performing my
duties as an employee of the Company, nor shall I use any Confidential
Information in any manner which may injure or cause loss or may be calculated to
injure or cause loss to the Company, whether directly or indirectly.

      5. Nonsolicitation of Customers, Partners and Employees: I agree that the
Company has invested substantial time, effort and expense in compiling its
confidential and trade secret information and in assembling its present
personnel. In order to protect the confidentiality of the Company's sensitive
information, I agree that, during my employment and for one (1) year thereafter,
I shall not do the following:

      a. approach, contact or otherwise communicate in any way with any customer
or partner of the Company with the use or assistance of Confidential Information
of the Company that I obtained during my employment for the purpose of engaging
in or assisting in soliciting business from that customer or partner;

      b. solicit, approach, counsel or attempt to induce any person who is then
in the employ of the Company to leave the employ of the Company; or

      c. aid, assist or counsel any other person, firm or corporation to do any
of the above.

      6. Return of Property: I shall keep on Company's premises (except when
required elsewhere in connection with the conduct of Company's business) and
shall deliver to Company upon termination of my employment all writings related
to the business of Company, and all documents, equipment, materials and other
personal property belonging to Company. I further agree not to make or retain
any copy, duplication, facsimile, reproduction or replication of any of the
foregoing except as necessary to perform my duties as an employee of the
Company.

<PAGE>

      7. No Violation Of Prior Trade Secret Or Non-Competition Agreements: I
represent that the performance of all the terms of this Agreement as an employee
of this Company will not conflict with, and will not breach, any other
development assignment agreement, confidentiality agreement, employment
agreement or non-competition agreement to which I am or have been a party. To
the extent that I have confidential information or materials of any former
employer of mine, I acknowledge that the Company has directed me to not disclose
such confidential information or materials to the Company or any of its
employees, and that the Company prohibits me from using said confidential
information or materials in any work that I may perform for the Company, and I
will not bring with me to the Company, and will not use or disclose any
confidential, proprietary information, or trade secrets acquired by me prior to
my employment with the Company. I will not disclose to the Company or any of its
employees, or induce the Company or any of its employees to use, any
confidential or proprietary information or material belonging to any previous
employers or others, nor will I bring to the Company or use in connection with
my work for the Company copies of any software, computer files, or any other
copyrighted or trademarked materials except those owned by or licensed to the
Company. I am not a party to any other agreement that will interfere with my
full compliance with this Agreement. I further agree not to enter into any
agreement, whether written or oral, in conflict with the provisions of this
Agreement.

      8. Choice of Law: This Agreement shall be construed and governed by the
laws of the state in which I am primarily assigned to perform my job for, or
engagement with, the Company and shall in all respects be interpreted, enforced
and governed under the internal and domestic laws of such state.

      9. No Waiver: The waiver of any breach of this Agreement shall not
constitute a waiver of subsequent similar of dissimilar breaches of this
Agreement, or a waiver of any of the obligations contained herein.

      10. Assignment: The Company shall have the right to assign this Agreement
to its successors and assigns, and all covenants and agreements hereunder shall
inure to the benefit of and be enforceable by said successors and assigns.

      11. Right to Notify: I recognize the right of Company to notify any third
party of the existence of this Agreement and/or its provisions and/or my
agreeing to it.

      12. Severability: Should a provision or part of a provision of this
Agreement be found as a matter or law to be invalid, such finding shall not have
the effect of invalidating the remainder of this Agreement and the provision or
part thereof as to which such finding of invalidity is made shall be interpreted
so as to be ineffective only to the extent of such invalidity without
invalidating the remainder of such provision or part thereof or any of the other
provisions of this Agreement.

<PAGE>

      13. Breach: I agree that any breach of this Agreement by me will cause
irreparable damage to the Company and that in the event of such breach the
Company shall have, in addition to any and all remedies of law, the right to an
injunction, specific performance or other equitable relief to prevent the
violation of my obligations hereunder. The Company may apply for such injunctive
relief in any court of competent jurisdiction without the necessity of posting
any bond or other security.

EMPLOYEE:                               NEKTAR THERAPEUTICS:

Signed:                                 By:
       ---------------------------         -----------------------------------

Name:                                   Title: Vice President, Human Resources
     -----------------------------            --------------------------------

Dated:                                  Dated:
      ----------------------------            --------------------------------

<PAGE>

                                   APPENDIX A

Section 2870 of California Labor Code: Application of provision providing that
employee shall assign or offer to assign rights in invention to employer.

      a. Any provision and employment agreement which provides that an employee
shall assign, or offer to assign, any of his or her rights in an invention to
his or her employer shall not apply to an invention that the employee developed
entirely on his or her own time without using the employer's equipment,
supplies, facilities or trade secret information except for those inventions
that either:

            1     Relate at the time of conception or reduction to practice of
                  the invention to the employer's business, or actual or
                  demonstrably anticipated research or development of the
                  employer; or

            2     Result from any work performed by the employee for the
                  employer.

      b. To the extent a provision in an employment agreement purports to
require an employee to assign an invention otherwise excluded from being
required to be +assigned under subdivision (a), the provision is against the
public policy of this state and is unenforceable.

<PAGE>

                                   APPENDIX B

                                PRIOR INVENTIONS

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