Document:

Exhibit 10.1

                                LICENSE AGREEMENT
                                     BETWEEN

                    PRESIDENT AND FELLOWS OF HARVARD COLLEGE

                                       AND

                         BIOMIMETIC PHARMACEUTICALS, INC.

                  Re: Harvard Case Nos. 439-87, 536-88, 537-88,
                       538-88, 614-89, 814-92, and 1013-94

In consideration of the mutual promises and covenants set forth below, the
parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

As used in this Agreement, the following terms shall have the following
meanings:

AFFILIATE: any company, corporation, or business in which LICENSEE owns or
controls at least fifty percent (50%) of the voting stock or other ownership.
Unless otherwise specified, the term LICENSEE includes AFFILIATES.

FIELD: all fields of use.

HARVARD: President and Fellows of Harvard College, a nonprofit Massachusetts
educational corporation having offices at the Office for Technology and
Trademark Licensing, Holyoke Center Suite 727, 1350 Massachusetts Avenue,
Cambridge, Massachusetts 02138.

LICENSED PROCESSES: the processes covered by UNIVERSITY PATENT RIGHTS.

1.5  LICENSED PRODUCTS: products covered by UNIVERSITY PATENT RIGHTS or
     products made or services provided in accordance with or by means of
     LICENSED PROCESSES.

1.6  LICENSEE: BioMimetic Pharmaceuticals, Inc. (BMPI), a corporation organized
     under the laws of Tennessee.

1.7  NET SALES: the amount received for sales, leases, or other transfers of
     LICENSED PRODUCTS, less:

     (a)  customary trade, quantity or cash discounts and non-affiliated
          brokers' or agents' commissions actually allowed and taken;

     (b)  amounts repaid or credited by reason of rejection or return; and

     (c)  to the extent separately stated on purchase orders, invoices, or other
          documents of sale, taxes levied on and/or other governmental charges
          made as to production, sale, transportation, delivery or use and paid
          by or on behalf of LICENSEE or sublicensees.

     (d)  reasonable charges for delivery or transportation provided by third
          parties, if separately stated.

     NET SALES also includes the fair market value of any non-cash consideration
     received by LICENSEE or sublicensees for the sale, lease, or transfer of
     LICENSED PRODUCTS.

1.8  NON-COMMERCIAL RESEARCH PURPOSES: use of UNIVERSITY PATENT RIGHTS for
     academic research or other not-for-profit scholarly purposes which are
     undertaken at a non-profit or governmental institution that does not use
     the UNIVERSITY PATENT RIGHTS in the production or manufacture of products
     for sale or the performance of services for a fee.

1.9  NON-ROYALTY SCBLICENSE OR DISTRIBUTOR INCOME: Sublicense or option issue
     fees, sublicense maintenance fees, sublicense milestone payments, and
     similar non-royalty payments made by sublicensees or distributors to
     LICENSEE on account of sublicenses or distribution agreements pursuant to
     this Agreement, excluding:

     (a)  prepayments or payments of sums designated for research and
          development expenses; and

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     (b)  equity investments in the LICENSEE by a sublicensee, except to the
          extent that such equity investment represents a premium above the
          fair market value of the equity being sold. For the purpose of this
          calculation, fair market value shall mean the closing price of the
          stock of LICENSEE as reported by the NASDAQ stock market or any
          national securities exchange upon which the stock is traded. In the
          event the stock is not publicly traded, the Board of Directors of
          LICENSEE shall, in good faith and in accordance with its fiduciary
          duty, propose a fair market value. If HARVARD does not accept this
          value, HARVARD and LICENSEE shall each appoint a single representative
          to jointly establish a mutually acceptable value.

1.10 UNIVERSITY PATENT RIGHTS: HARVARD's ownership interest in the United States
     patents listed in Appendix A to the License Agreement, including all
     divisional, continuations, continuations-in-part, extensions and renewals,
     and the inventions described and claimed therein.

1.11 HARVARD/IMB Patent Rights means HARVARD's ownership interest in all foreign
     patent applications or patents world-wide corresponding to the United
     States Patents listed in Appendix A, and the inventions described and
     claimed therein. Upon written agreement by HARVARD and IMB of their intent
     to grant LICENSEE these Patent Rights which are jointly owned by HARVARD
     and IMB, the HARVARD/IMB Patent Rights shall become part of the UNIVERSITY
     PATENT RIGHTS.

1.12 TERRITORY: All countries in which HARVARD has granted LICENSEE a license
     under UNIVERSITY PATENT RIGHTS.

1.13 The terms "Public Law 96-517" and "Public Law 98-620" include all
     amendments to those statutes.

1.14 The terms "sold" and "sell" include, without limitation, leases and other
     transfers and similar transactions.

                                   ARTICLE II

                                REPRESENTATIONS

2.1  HARVARD is co-owner by assignment from Drs. Samuel Lynch, Ray Williams and
     William Giannobile of their entire right, title and interest in the
     United States patents listed in License Appendix A (H.U. Case #'s 439-

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     87, 536-88, 537-88, 538-88, 614-89, 814-92, and 1013-94), which are
     co-owned by the Institute of Molecular Biology (IMB) by assignment from Dr.
     Harry Antoniades.

2.2  HARVARD is committed to the policy that ideas or creative works produced at
     HARVARD should be used for the greatest possible public benefit, and
     believes that every reasonable incentive should be provided for the prompt
     introduction of such ideas into public use, all in a manner consistent with
     the public interest.

2.3  LICENSEE is prepared and intends to diligently develop the invention and to
     bring products to market which are subject to this Agreement.

2.4  LICENSEE is desirous of obtaining an exclusive license in the TERRITORY in
     order to practice the above-referenced invention covered by UNIVERSITY
     PATENT RIGHTS in the United States and in certain foreign countries, and to
     manufacture, use and sell in the commercial market the products made in
     accordance therewith, and HARVARD is desirous of granting such a license to
     LICENSEE in accordance with the terms of this Agreement.

                                   ARTICLE III

                                 GRANT OF RIGHTS

3.1  HARVARD hereby grants to LICENSEE and LICENSEE accepts, subject to the
     terms and conditions hereof, in the TERRITORY and in the FIELD an exclusive
     commercial license under UNIVERSITY PATENT RIGHTS, to make and have made,
     to use and have used, to sell and have sold the LICENSED PRODUCTS, and to
     practice the LICENSED PROCESSES, for the life of the UNIVERSITY PATENT
     RIGHTS. Such licenses shall include the right to grant sublicenses, subject
     the terms of paragraph 3.2(e). In order to provide LICENSEE with commercial
     exclusivity for so long as the license under UNIVERSITY PATENT RIGHTS
     remains exclusive, HARVARD agrees that it will not grant licenses under
     UNIVERSITY PATENT RIGHTS to others except as required by HARVARD's
     obligations in paragraph 3.2(a) or as permitted in paragraph 3.2(b).

3.2  The granting and exercise of this license is subject to the following
     conditions:

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     (a)  HARVARD's "Statement of Policy in Regard to Inventions, Patents and
          Copyrights", dated August 10, 1998, Public Law 96-517, Public Law 98-
          620, and HARVARD's obligations under agreements with other sponsors of
          research. Any right granted in this Agreement greater than that
          permitted under Public Law 96-517, or Public Law 98-620, shall be
          subject to modification as may be required to conform to the
          provisions of those statutes.

     (b)  HARVARD reserves the right to make and use, and grant to others
          non-exclusive licenses to make and use for NON-COMMERCIAL RESEARCH
          PURPOSES the subject matter described and claimed in UNIVERSITY PATENT
          RIGHTS.

     (c)  LICENSEE shall use diligent efforts to effect introduction of the
          LICENSED PRODUCTS into the commercial market as soon as practicable,
          consistent with sound and reasonable business practice and judgment;
          thereafter, until the expiration of this Agreement, LICENSEE shall
          endeavor to keep LICENSED PRODUCTS reasonably available to the public.

     (d)  At any time after three years from the effective date of this
          Agreement, HARVARD may terminate or render this license non-exclusive
          if, in HARVARD's reasonable judgment, the Progress Reports furnished
          by LICENSEE do not demonstrate that LICENSEE:

          (i)  has put the licensed subject matter into commercial use in the
               country or countries hereby licensed, directly or through a
               sublicense, and is keeping the licensed subject matter reasonably
               available to the public, or

          (ii) is engaged in research, development, manufacturing, marketing or
               sublicensing activity appropriate to achieving 3.2(d)(i),

     (e)  In all sublicenses granted by LICENSEE hereunder, LICENSEE shall
          include a requirement that the sublicensee use its best efforts to
          bring the subject matter of the sublicense into commercial use as
          quickly as is reasonably possible. LICENSEE shall further provide in
          such sublicenses that such sublicenses are subject and subordinate to
          the terms and conditions of this Agreement, except: (i) the
          sublicensee may not further sublicense without the consent of HARVARD,
          which consent shall not be unreasonably withheld or delayed; and (ii)
          the rate of royalty on NET SALES paid by the sublicensee to the
          LICENSEE.

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          Copies of all sublicense agreements shall be provided promptly to
          HARVARD.

     (f)  If LICENSEE, is not making progress satisfactory to HARVARD under
          Section 3.2 (c) and (d) above, and, after being notified of potential
          sublicensee(s), does not make reasonable efforts to grant sublicenses
          hereunder with respect to all or any portion of the FIELD or
          TERRITORY, then, to that extent, HARVARD may directly license such
          potential sublicensee(s) unless, in Harvard's reasonable judgment,
          such license would be contrary to sound and reasonable business
          practice and the granting of such license would not materially
          increase the availability to the public of LICENSED PRODUCTS; provided
          however, that LICENSEE shall have the right of last refusal, exercised
          within sixty (60) days after notice in writing from Harvard, to
          sublicense such rights to such sublicensee(s) on terms no less
          favorable to such sublicensee(s) than those negotiated by Harvard.

     (g)  During the period of exclusivity of this license in the United States,
          LICENSEE shall cause any LICENSED PRODUCT produced for sale in the
          United States to be manufactured substantially in the United States,
          unless a waiver to this requirement is granted by the United States
          Government.

3.3  All rights reserved to the United States Government and others under Public
     Law 96-517, and Public Law 98-620, shall remain and shall in no way be
     affected by this Agreement.

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                                   ARTICLE IV

                                    ROYALTIES

4.1. (a)  LICENSEE shall pay to HARVARD a non-refundable license fee in the sum
          of $20,000 upon execution of this Agreement. The $5,000 fee contained
          in the Option Agreement dated June 23, 1999, shall be credited against
          the license fee.

     (b)  In further consideration of the rights and license granted hereunder,
          LICENSEE shall also issue to HARVARD, no later than one year from the
          date of the signing of this License Agreement, shares of common stock
          equivalent in value to $200,000.

     (c)  HARVARD represents and warrants to LICENSEE that:

          (i) HARVARD is acquiring the Shares for its own account for investment
          and not with a view to, or for sale in connection with any
          distribution thereof, nor with any present intention of distributing
          or selling the same; and HARVARD has no present or contemplated
          agreement, undertaking, arrangement, obligation, indebtedness or
          commitment providing for the disposition thereof.

          (ii) HARVARD has full power and authority to enter into and to perform
          this Agreement in accordance with its terms.

          (iii) HARVARD has sufficient knowledge and experience in investing in
          companies similar to LICENSEE so as to be able to evaluate the risks
          and merits of its investment in LICENSEE and is able financially to
          bear the risks thereof,

     (d)  Each certificate representing the Shares shall bear a legend
          substantially in the following form:

          "The shares represented by this certificate have not been registered
          under the Securities Act of 1933, as amended, and may not be offered,
          sold or otherwise transferred, pledged or hypothecated unless and
          until such shares are registered under such Act or an opinion of
          counsel satisfactory to the Company is obtained to the effect that
          such registration is not required and are otherwise subject to
          stockholders agreements."

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          The foregoing Legend shall be removed from the certificates
          representing any Shares, at the request of the holder thereof, at such
          time as they become eligible for resale pursuant to the Securities Act
          of 1933, as amended.

          If at any time LICENSEE proposes to register any of its Common Stock,
          under the Securities Act of 1933, except at LICENSEE's initial public
          offering or any offering pursuant to Forms S-4 or S-8, LICENSEE shall
          offer HARVARD the opportunity to have its Shares registered under the
          registration statement to be filed at such time. HARVARD will be
          offered the right to register its Shares under the same terms,
          conditions and restrictions as other shareholders with piggyback
          registration rights.

     (e)  HARVARD's ownership rights to Shares shall not be affected should the
          license pursuant to this Agreement be converted to a non-exclusive
          one.

4.2  (a)  LICENSEE shall pay to HARVARD during the term of this Agreement the
          following royalty rates on cumulative NET SALES of all LICENSED
          PRODUCTS sold by LICENSEE and its AFFILIATES or sublicensees
          (excluding sales to distributors under 4.2 b:

               ** on cumulative NET SALES of all LICENSED PRODUCTS less than or
          equal to ten (10) million dollars,

               ** on cumulative NET SALES of all LICENSED PRODUCTS greater than
          ten (10) million dollars.

          In the case of sublicenses, LICENSEE shall also pay to HARVARD a
          royalty of fifteen percent (15%) of NON-ROYALTY SUBLICENSE INCOME.

     (b)  On sales by LICENSEE to a distributor where the distributor pays a
          volume price for the LICENSED PRODUCTS and subsequently resells in a
          given territory, LICENSEE shall pay to HARVARD the following
          royalty rates on sales of all LICENSED PRODUCTS priced at the point of
          initial sale by LICENSEE to the distributor:

               ** on cumulative sales of all LICENSED PRODUCTS less than or
          equal to ten (10) million dollars,

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**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

               ** on cumulative sales of all LICENSED PRODUCTS greater than ten
          (10) million dollars.

          In the case of distributors, LICENSEE shall also pay to HARVARD a
          royalty of ** of NON-ROYALTY SUBLICENSE INCOME.

     (c)  If the license pursuant to this Agreement is converted to a non-
          exclusive one and if other non-exclusive licenses in the same field
          and territory are granted, the above royalties shall not exceed the
          royalty rate to be paid by other licensees in the same field and
          territory during the term of the non-exclusive license.

     (d)  On sales between LICENSEE and its AFFILIATES or sublicensees for
          resale, the royalty shall be paid on the NET SALES of the AFFILIATE
          or sublicensee.

4.3  Milestone royalty payments:

     -  Manufacturing Agreement for PDGF with third party                $20,000
     -  Licensing Agreement with IMB                                     $20,000
     -  Initiation of Phase II clinical trials in the U.S for the
           first therapeutic product                                     $40,000
     -  Upon FDA approval of an NDA/PMA for the first therapeutic
           product                                                       $50,000
     -  Upon FDA approval of an NDA/PMA for the
           first diagnostic product                                      $50,000

                                    ARTICLE V

                                    REPORTING

5.1  Prior to signing this Agreement, LICENSEE has provided to HARVARD a written
     research and development plan under which LICENSEE intends to bring the
     subject matter of the licenses granted hereunder into commercial use upon
     execution of this Agreement. Such plan includes projections of sales and
     proposed marketing efforts, as contained in the Confidential Business Plan
     provided by BioMimetic Pharmaceuticals Inc. to HARVARD

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**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

     on April 30, 1999, and subsequent updates to this plan mutually acceptable
     to HARVARD and LICENSEE.

5.2  No later than sixty (60) days after June 30 of each calendar year,
     beginning on June 30, 2000, LICENSEE shall provide to HARVARD a written
     annual Progress Report describing progress on research and development,
     regulatory approvals, manufacturing, sublicensing, marketing and sales
     during the most recent twelve (12) month period ending June 30 and plans
     for the forthcoming year. If multiple technologies are covered by the
     license granted hereunder, the Progress Report shall provide the
     information set forth above for each technology. If progress differs from
     that anticipated in the plan required under Paragraph 5.1, LICENSEE shall
     explain the reasons for the difference and if necessary, provide a modified
     research and development plan for HARVARD's review. LICENSEE shall also
     provide any reasonable additional data HARVARD requires to evaluate
     LICENSEE's performance.

5.3  LICENSEE shall report to HARVARD the date of first sale of LICENSED
     PRODUCTS (or results of LICENSED PROCESSES) in each country in the
     TERRITORY within thirty (30) days of occurrence.

5.4  (a) LICENSEE shall submit to HARVARD within sixty (60) days after each
     calendar half year ending June 30 and December 31, a Royalty Report setting
     forth for such half year at least the following information:

          (i) the number of LICENSED PRODUCTS sold by LICENSEE, its AFFILIATES
          and sublicensees in each country;

          (ii) total billings for such LICENSED PRODUCTS;

          (iii) an accounting for all LICENSED PROCESSES used or sold;

          (iv) deductions applicable to determine the NET SALES thereof;

          (v) the amount of NON-ROYALTY SUBLICENSE INCOME received by LICENSEE;
          and

          (vi) the amount of royalty due thereon, or, if no royalties are due to
          HARVARD for any reporting period, the statement that no royalties are
          due.

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     Such report shall be certified as correct by an officer of LICENSEE and
     shall include a detailed listing of all deductions from royalties.

(b)  LICENSEE shall pay to HARVARD with each such Royalty Report the amount of
     royalty due with respect to such half year. If multiple technologies are
     covered by the license granted hereunder, LICENSEE shall specify which
     UNIVERSITY PATENT RIGHTS are utilized for each LICENSED PRODUCT and
     LICENSED PROCESS included in the Royalty Report.

(c)  All payments due hereunder shall be deemed received when funds are credited
     to Harvard's bank account and shall be payable by check or wire transfer in
     United States dollars. Conversion of foreign currency to U.S. dollars shall
     be made at the conversion rate existing in the United States (as reported
     in the New York Times or the Wall Street Journal) on the last working day
     of each royalty period. No transfer, exchange, collection or other charges
     shall be deducted from such payments.

(d)  All such reports shall be maintained in confidence by HARVARD except as
     required by law, including Public Law 96-517, and Public Law 98-620;
     however, HARVARD may include in its usual reports annual amounts of
     royalties paid.

(e)  Late payments shall be subject to a charge of one and one half percent (1
     1/2%) per month, or $250, whichever is greater.

                                   ARTICLE VI

                                 RECORD KEEPING

6.1  LICENSEE shall keep, and shall require its AFFILIATES and sublicensees (but
     not distributors under 4.2(c)) to keep, accurate records (together with
     supporting documentation) of LICENSED PRODUCTS made, used or sold under
     this Agreement, appropriate to determine the amount of royalties due to
     HARVARD hereunder. Such records shall be retained for at least three (3)
     years following the end of the reporting period to which they relate. They
     shall be available during normal business hours for examination by an
     accountant selected by HARVARD, for the sole purpose of verifying reports
     and payments hereunder. In conducting examinations pursuant to this
     paragraph, HARVARD's accountant shall have access to all records which
     HARVARD reasonably believes to be relevant to the calculation of royalties
     under Article IV.

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6.2  HARVARD's accountant shall not disclose to HARVARD any information other
     than information relating to the accuracy of reports and payments made
     hereunder. HARVARD's accountant shall not disclose any information to any
     other party. Prior to allowing HARVARD's accountant or any other third
     party to review information of LICENSEE, LICENSEE may require such third
     party to enter into a confidentiality agreement containing reasonable
     provisions relating to the confidentiality of LICENSEE's proprietary
     information.

6.3  Such examination by HARVARD's accountant shall be at HARVARD's expense,
     except that if such examination shows an underreporting or underpayment in
     excess of five percent (5%) for any twelve (12) month period, then LICENSEE
     shall pay the cost of such examination as well as any additional sum that
     would have been payable to HARVARD had the LICENSEE reported correctly,
     plus interest on said sum at the rate of one and one half per cent (1 1/2%)
     per month.

                                   ARTICLE VII

               DOMESTIC AND FOREIGN PATENT FILING AND MAINTENANCE

7.1  At the time of execution of this Agreement, responsibility for maintenance
     of any and all patent applications and patents included in UNIVERSITY
     PATENT RIGHTS, including payment of all expenses associated with such
     maintenance, resides with IMB.

7.2  If LICENSEE or HARVARD assumes responsibility for maintenance of UNIVERSITY
     PATENT RIGHTS and of all patents licensed to LICENSEE hereunder subsequent
     to signing of this Agreement, LICENSEE and HARVARD agree:

     (a)  LICENSEE shall reimburse HARVARD for any future expenses incurred by
          HARVARD for the maintenance of UNIVERSITY PATENT RIGHTS, upon receipt
          of invoices from HARVARD. Late payment of these invoices shall be
          subject to interest charges of one and one-half percent (1 1/2%) per
          month. To the extent that HARVARD is responsible for the maintenance
          of any and all patent applications and patents included in UNIVERSITY
          PATENT RIGHTS, HARVARD will

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          consult with LICENSEE as to maintenance of such patent rights and
          shall furnish to LICENSEE copies of relevant documents.

     (b)  To the extent HARVARD is responsible for the maintenance of
          UNIVERSITY PATENT RIGHTS and of all patents licensed to LICENSEE
          hereunder, HARVARD and LICENSEE shall cooperate fully in executing all
          papers and instruments or requiring members of HARVARD to execute such
          papers and instruments so as to enable HARVARD to maintain patents in
          HARVARD's name in any country. Each party shall provide to the other
          prompt notice as to all matters which come to its attention and which
          may affect the maintenance of any such patents.

7.3  LICENSEE may eject to surrender its UNIVERSITY PATENT RIGHTS in any country
     upon sixty (60) days written notice to HARVARD. Such notice shall not
     relieve LICENSEE from responsibility to reimburse HARVARD for any
     patent-related expenses incurred under 7.2 prior to the expiration of the
     (60)-day notice period (or such longer period specified in LICENSEE's
     notice).

                                  ARTICLE VIII

                                  INFRINGEMENT

8.1  With respect to any UNIVERSITY PATENT RIGHTS that are exclusively licensed
     to LICENSEE pursuant to this Agreement, LICENSEE shall have the right to
     prosecute in its own name and at its own expense any infringement of such
     patent, so long as such license is exclusive at the time of the
     commencement of such action. HARVARD agrees to notify LICENSEE promptly of
     each infringement of such patents HARVARD is or becomes
     aware. Before LICENSEE commences an action with respect to any infringement
     of such patents, LICENSEE shall give careful consideration to the views of
     HARVARD and to potential effects on the public interest in making its
     decision whether or not to sue.

8.2  (a)  If LICENSEE elects to commence an action as described above,
          Harvard may, to the extent permitted by law, elect to join as a party
          in that action. Regardless of whether HARVARD elects to join as a
          party, HARVARD shall cooperate fully with LICENSEE in connection with
          any such action.

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     (b)  If HARVARD elects to join as a party pursuant to subparagraph (a),
          HARVARD shall jointly control the action with LICENSEE.

     (c)  LICENSEE shall reimburse HARVARD for any reasonable costs HARVARD
          incurs, including reasonable attorneys' fees, as part of an action
          brought by LICENSEE, irrespective of whether HARVARD becomes a co-
          plaintiff.

8.3  If LICENSEE elects to commence an action as described above, LICENSEE may
     deduct from its royalty payments to HARVARD an amount not exceeding fifty
     percent (50%) of LICENSEE's expenses and costs of such action, including
     reasonable attorneys' fees; provided, however, that such reduction shall
     not exceed fifty percent (50%) of the total royalty due to HARVARD for each
     calendar year. If such fifty percent (50%) of LICENSEE's expenses and costs
     exceeds the amount of royalties deducted by LICENSEE for any calendar year,
     LICENSEE may to that extent reduce the royalties due to HARVARD from
     LICENSEE in succeeding calendar years, but never by more than fifty percent
     (50%) of the total royalty due in any one year.

8.4  No settlement; consent judgment or other voluntary final disposition of the
     suit may be entered into without the prior written consent of HARVARD,
     which consent shall not be unreasonably withheld.

8.5  Recoveries or reimbursements from actions commenced pursuant to this
     Article shall first be applied to reimburse LICENSEE and HARVARD for
     litigation costs not paid from royalties and then to reimburse HARVARD for
     royalties deducted by LICENSEE pursuant to paragraph 8.3. Any remaining
     recoveries of reimbursements shall be shared equally by LICENSEE and
     HARVARD.

8.6  If LICENSEE elects not to exercise its right to prosecute an infringement
     of the UNIVERSITY PATENT RIGHTS pursuant to this Article, HARVARD may do so
     at its own expense, controlling such action and retaining all recoveries
     therefrom. LICENSEE shall cooperate fully with HARVARD in connection with
     any such action and shall be reimbursed for reasonable costs that LICENSEE
     incurs in this regard.

8.7  Without limiting the generality of paragraph 8.6, HARVARD may, at its
     election and by notice to LICENSEE, establish a time limit of sixty (60)
     days for LICENSEE to decide whether to prosecute any infringement of which

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     HARVARD is or becomes aware. If, by the end of such sixty (60)-day period,
     LICENSEE has not commenced such an action, HARVARD may prosecute such an
     infringement at its own expense, controlling such action and retaining all
     recoveries therefrom. With respect to any such infringement action
     prosecuted by HARVARD in good faith, LICENSEE shall pay over to Harvard any
     payments (whether or not designated as "royalties") made by the alleged
     infringer to LICENSEE under any existing or future sublicense authorizing
     LICENSED PRODUCTS, up to the amount of HARVARD's unreimbursed litigation
     expenses (including, but not limited to, reasonable attorneys' fees).

8.8  If a declaratory judgment action is brought naming LICENSEE as a defendant
     and alleging invalidity of any of the UNIVERSITY PATENT RIGHTS, HARVARD
     may elect to take over the sole defense of the action at its own expense.
     LICENSEE shall cooperate fully with HARVARD in connection with any such
     action, and HARVARD shall give careful consideration to the views of the
     LICENSEE.

                                   ARTICLE IX

                            TERMINATION OF AGREEMENT

9.1  This Agreement, unless terminated as provided herein, shall remain in
     effect until the last patent or patent application in UNIVERSITY PATENT
     RIGHTS has expired or been abandoned in the TERRITORY.

9.2  HARVARD may terminate this Agreement as follows;

     (a)  If LICENSEE does not make a payment due hereunder and fails to cure
          such non-payment (including the payment of interest in accordance with
          paragraph 5.4(e)) within ninety (90) days after the date of notice in
          writing of such non-payment by HARVARD.

     (b)  If LICENSEE defaults in its obligations under paragraph 10.3(c), (d)
          and (e) to procure and maintain insurance.

     (c)  If, at any time after three years from the date of this Agreement,
          HARVARD determines that the Agreement should be terminated pursuant to
          paragraph 3.2(d).

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     (d)  If LICENSEE shall become insolvent, shall make an assignment for the
          benefit of creditors, or shall have a petition in bankruptcy filed for
          or against it, and such action has not been dismissed within ninety
          (90) days. Such termination shall be effective immediately upon
          HARVARD giving written notice to LICENSEE.

     (e)  If an examination by Harvard's accountant pursuant to Article VI shows
          an underreporting or underpayment by LICENSEE in excess of 20% for any
          twelve (12) month period, and LICENSEE fails to cure such non-payment
          (including the payment of interest in accordance with paragraph
          5.4(e)) within ninety (90) days after the date of notice in writing of
          such non-payment by HARVARD.

     (f)  If LICENSEE is convicted of a felony relating to the manufacture, use,
          or sale of LICENSED PRODUCTS.

     (g)  Except as provided in subparagraphs (a), (b), (c), (d), (e) and (f)
          above, if LICENSEE defaults in the performance of any obligations
          under this Agreement and the default has not been remedied within one
          hundred and twenty (120) days after the date of notice in writing of
          such default by HARVARD.

9.3  LICENSEE shall provide, in all sublicenses granted by it under this
     Agreement, that LICENSEE's interest in such sublicenses shall at HARVARD's
     option terminate or be assigned to HARVARD upon termination of this
     Agreement.

9.4  LICENSEE may terminate this Agreement by giving one hundred and twenty
     (120) days advance written notice of termination to HARVARD. Upon
     termination, LICENSEE shall submit a final Royalty Report to HARVARD and
     any royalty payments and unreimbursed patent expenses invoiced by HARVARD
     shall become immediately payable.

9.5  Paragraphs 6.1, 6.2, 6.3, 7.2, 8.5, 9.4, 9.5, 10.2, 10.3, 10.4, 10.7 and
     10.3 of this Agreement shall survive termination.

                                   ARTICLE X

                                    GENERAL

10.1 HARVARD does not warrant the validity of the UNIVERSITY PATENT RIGHTS
     licensed hereunder and makes no representations whatsoever with

16

     regard to the scope of the licensed UNIVERSITY PATENT RIGHTS or that such
     UNIVERSITY PATENT RIGHTS may be exploited by LICENSEE, an AFFILIATE, or
     sublicensee without infringing other patents.

10.2 HARVARD EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND
     MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
     ANY PARTICULAR PURPOSE OF THE UNIVERSITY PATENT RIGHTS OR INFORMATION
     SUPPLIED BY HARVARD, LICENSED PROCESSES OR LICENSED PRODUCTS CONTEMPLATED
     BY THIS AGREEMENT.

10.3 (a) LICENSEE shall indemnify, defend and hold harmless HARVARD and its
     current or former directors, governing board members, trustees, officers,
     faculty, medical and professional staff, employees, students, and agents
     and their respective successors, heirs and assigns (collectively, the
     "Indemnitees"), against any liability, damage, loss or expenses (including
     reasonable attorneys' fees and expenses of litigation) incurred by or
     imposed upon the Indemnities or any of them in connection with any claims,
     suits, actions, demands or judgments arising out of any theory of product
     liability (including, but not limited to, actions in the form of tort,
     warranty, or strict liability) concerning any product, process or service
     made, used or sold pursuant to any right or license granted under this
     Agreement.

     (b) LICENSEE shall, at its own expense, provide attorneys reasonably
     acceptable to HARVARD to defend against any actions brought or filed
     against any Indemnitee hereunder with respect to the subject of indemnity
     contained herein, whether or not such actions are rightfully brought.

     (c) Beginning at the time any such product, process or service is being
     commercially distributed or sold (other than for the purpose of obtaining
     regulatory approvals) by LICENSEE or by a sublicensee, AFFILIATE or agent
     of LICENSEE, LICENSEE shall, at its sole cost and expense, procure and
     maintain commercial general liability insurance in amounts not less than
     $2,000,000 per incident and $2,000,000 annual aggregate and naming the
     Indemnities as additional insureds. During clinical trials of any such
     product, process or service, LICENSEE shall, at its sole cost and expense,
     procure and maintain commercial general liability insurance in such equal
     or lesser amount as HARVARD shall require, naming the Indemnitees as
     additional insureds. Such commercial general liability insurance shall
     provide (i) product liability coverage and (ii) broad form contractual
     liability coverage for LICENSEE's indemnification under this Agreement. If

17

     LICENSEE elects to self-insure all or part of the limits described above
     (including deductibles or retentions which are in excess of $250,000
     annual aggregate) such self-insurance program must be acceptable to
     HARVARD and the Risk Management Foundation of the Harvard Medical
     Institutions, Inc. in their sole discretion. The minimum amounts of
     insurance coverage required shall not be construed to create a limit of
     LICENSEE's liability with respect to its indemnification under this
     Agreement.

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

     (e) LICENSEE shall maintain such commercial general liability insurance
     beyond the expiration or termination of this Agreement during (i) the
     period that any product, process, or service, relating to, or developed
     pursuant to, this Agreement is being commercially distributed or sold by
     LICENSEE or by a sublicensee, AFFILIATE or agent of LICENSEE and (ii) a
     reasonable period after the period referred to in (e)(i) above which in no
     event shall be less than five (5) years.

10.4 LICENSEE shall not use HARVARD's name or insignia, or any adaptation of
     them, or the name of any of HARVARD's inventors in any advertising,
     promotional or sales literature without the prior written approval of
     HARVARD.

10.5 Without the prior written approval of HARVARD in each instance, neither
     this Agreement nor the rights granted hereunder shall be transferred or
     assigned in whole or in part by LICENSEE to any person whether voluntarily
     or involuntarily, by operation of law or otherwise, except that LICENSEE
     may transfer or assign this Agreement and the rights granted hereunder, in
     whole or in part, to a successor of substantially all of the business for
     which this Agreement was entered into, and such succession shall include,
     but not be limited to one by acquisition, merger, change of corporate name
     or change in make-up, organization, or identity, and that LICENSEE may
     enter into sublicensing or distribution Agreements as contemplated by this
     Agreement. This Agreement shall be binding upon the

18

     respective successors, legal representatives and assignees of HARVARD and
     LICENSEE.

10.6 The interpretation and application of the provisions of this Agreement
     shall be governed by the laws of the Commonwealth of Massachusetts.

10.7 LICENSEE shall comply with all applicable laws and regulations. In
     particular, it is understood and acknowledged that the transfer of certain
     commodities and technical data is subject to United States laws and
     regulations controlling the export of such commodities and technical data,
     including all Export Administration Regulations of the United States
     Department of Commerce. These laws and regulations among other things,
     prohibit or require a license for the export of certain types of technical
     data to certain specified countries, LICENSEE hereby agrees and gives
     written assurance that it will comply with all United States laws and
     regulations controlling the export of commodities and technical data, that
     it will be solely responsible for any violation of such by LICENSEE or its
     AFFILIATES or sublicensees, and that it will defend and hold HARVARD
     harmless in the event of any legal action of any nature occasioned by such
     violation.

10.8 LICENSEE agrees (i) to obtain or require its sublicensees to obtain all
     regulatory approvals required for the manufacture and sale of LICENSED
     PRODUCTS and LICENSED PROCESSES in the TERRITORY and (ii) to utilize or
     require its sublicensees to utilize appropriate patent marking on such
     LICENSED PRODUCTS. LICENSEE also agrees to register or record this
     Agreement as is required by law or regulation in any country where the
     license is in effect.

l0.9 Any notices to be given hereunder shall be sufficient if signed by the
     party (or party's attorney) giving same and either (a) delivered in person,
     or (b) mailed certified mail return receipt requested, or (c) faxed to
     other party if the sender has evidence of successful transmission and if
     the sender promptly sends the original by ordinary mail, in any event to
     the following addresses:

     If to LICENSEE:
          Dr. Samuel Lynch
          President and CEO
          BioMimetic Pharmaceuticals, Inc.
          10 Market Path
          Setauket, NY 11733

19

          Fax No.: 516-941-3596

     and to
          Mark Manner
          Harwell, Howard, Hyne, Gabbert and Manner
          1800 First American Center
          315 Deaderick St.,
          Nashville, TN 37238-1800
          Fax Number: 615-251-1057

     If to HARVARD to:
          Harvard Medical School
          Office of Technology Licensing and Industry-Sponsored Research
          Gordon Hall, Ste. 414
          25 Shattuck St.
          Boston, MA 02115
          Fax No: 617-432-2788

     and to:
          Office for Technology and Trademark Licensing
          Harvard University
          1350 Massachusetts Avenue, Suite 727
          Cambridge, MA 02138
          Fax No.: 617-495-9568

     By such notice either party may change their address for future notices.

     Notices delivered in person shall be deemed given on the date delivered.
     Notices sent by fax shall fee deemed given on the date faxed. Notices
     mailed shall be deemed given on the date postmarked on the envelope.

10.10 Should a court of competent jurisdiction later hold any provision of this
     Agreement to be invalid, illegal, or unenforceable, and such holding is not
     reversed on appeal, it shall be considered severed from this Agreement. All
     other provisions, rights and obligations shall continue without regard to
     the severed provision, provided that the remaining provisions of this
     Agreement are in accordance with the intention of the parties.

10.11 In the event of any controversy or claim arising out of or relating to any
     provision of this Agreement or the breach thereof, the parties shall try
     to settle such conflict amicably between themselves. Subject to the
     limitation

20

     stated in the final sentence of this section, any such conflict which the
     parties are unable to resolve promptly shall be settled through arbitration
     conducted in accordance with the rules of the American Arbitration
     Association. The demand for arbitration shall be filed within a reasonable
     time after the controversy or claim has arisen, and in no event after the
     date upon which institution of legal proceedings based on such controversy
     or claim would be barred by the applicable statute of limitation. Such
     arbitration shall be held in Boston, Massachusetts. The award through
     arbitration shall be final and binding. Either party may enter any such
     award in a court having jurisdiction or may make application to such court
     for judicial acceptance of the award and an order of enforcement, as the
     case may be. Notwithstanding the foregoing, either party may, without
     recourse to arbitration, assert against the other party a third-party claim
     or cross-claim in any action brought by a third party, to which the subject
     matter of this Agreement may be relevant.

10.12 This Agreement constitutes the entire understanding between the parties
     and neither party shall be obligated by any condition or representation
     other than those expressly stated herein or as may be subsequently agreed
     to by the parties hereto in writing.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
     executed by their duly authorized representatives.

     This agreement shall become effective upon full execution by the parties.

PRESIDENT AND FELLOWS                        BIOMIMETIC PHARMACEUTICALS, INC.
OF HARVARD COLLEGE

/s/ Jeffrey I  Labovitz                            /s/ Samuel E. Lynch
-------------------------------------        -----------------------------------
Jeffrey I  Labovitz,  Director                         Signature
 Office of Technology Licensing and
     Industry Sponsored Research
                                                       Samuel E. Lynch
                                                             Name

                                                        Chairman & CEO
                                                            Title

March   March 30, 2001
      -----------------                                    4/10/01
           Date                                              Date

21

                        Appendix A - to License Agreement

The following comprise UNIVERSITY PATENT RIGHTS:

HARVARD's rights in the United States Patents listed below, and the inventions
described and claimed therein:

U.S.P.N. 5,019,559
U.S.P.N. 4,861,757
U.S.P.N. 5,124,316
U.S.P.N. 4,874,746
U.S.P.N. 4,983,581
U.S.P.N. 5,256,644
U.S.P.N. 5,034,375
U.S.P.N. 5,035,887
U.S.P.N. 5,516,699

And, as defined in Paragraph 1.11, upon written agreement by HARVARD and 1MB of
their intent to grant LICENSEE those Patent Rights which are jointly owned by
HARVARD and 1MB, HARVARD rights in the foreign applications or patents
corresponding thereto, and the inventions described and claimed therein
(HARVARD/IMB PATENT RIGHTS)

22Exhibit 10.2

                       EXCLUSIVE PATENT LICENSE AGREEMENT
                                     BETWEEN
                        BIOMIMETIC PHARMACEUTICALS, INC.
                                       AND
                               ZYMOGENETICS, INC.

     This Exclusive Patent License Agreement (the "Agreement") is made on March
28, 2001 ("Effective Date") between BioMimetic Pharmaceuticals, Inc.
("Licensee") a Tennessee corporation having a principal place of business at
6015 Saddleview Dr., Franklin, Tennessee 37067, and ZymoGenetics, Inc.
("Licensor") a Washington corporation having a principal place of business at
1201 Eastlake Avenue East, Seattle, Washington 98102.

                                   WITNESSETH

     WHEREAS, Licensor owns the "Licensed Patent Rights", as hereinafter
defined;

     WHEREAS, Licensee desires to obtain an exclusive worldwide license for the
Licensed Patent Rights in the Field of Use in accordance with the terms of this
Agreement;

     WHEREAS, Licensor is willing to grant an exclusive worldwide license for
the Licensed Patent Rights in the Field of Use to Licensee on the terms and
conditions set forth herein;

     NOW THEREFORE, in consideration of the mutual covenants contained herein,
it is agreed by the parties as follows;

                                 1. DEFINITIONS

l.1 Affiliate, means any company, corporation, business or entity controlled by,
controlling, or under common control with either Licensee or Licensor, "Control"
means direct or indirect beneficial ownership of at least fifty percent (50%)
interest in the voting stock (or the equivalent) of such corporation or other
business or having the right to direct, appoint or remove a majority or more of
the members of its board of directors (or their equivalent).

1.2 Biologically Active Substance means any product other than Licensed Product
which has intrinsic biological or cell stimulatory activity related to the
presence of growth factors, such as insulin-like growth factors (e.g., IGF-I,
IGF-I etc), transforming growth factor family (e.g. TGF-beta, etc), epidermal
growth factor (EGF), fibroblast growth factors (aFGF, bFGF, etc), keratinocyte
growth factor (KGF), growth factor like proteins or morphogens. Such product
will not include substances or compounds whose primary function is to act as a
vehicle for the delivery of PDGF (eg. synthetic bone powder such as
hydroxyapatitcs, natural bone powder at bone matrix fibrin glue, collagen,
gelatin, or synthetic polymers such as polylatides or polyglycolides).

1.3 Bundled Product means a Licensed Product sold or bundled together with other
products.

1.4 Combination Product means a Licensed Product which includes one or more
Biologically Active Substance(s) to achieve the desired therapeutic response.

1.5 Field of Use means the treatment of peridontal disease and/or the repair,
restoration and reconstruction of cranio-maxillofacial osseous defects.

l.6 First Commercial Sale means the first sale of any Licensed Product by
Licensee following approval by the appropriate governmental agency.

1.7 Improvement means any modification, alteration, enhancement or improvement
to Licensed Patents that licensee shall own or control solely or as joint owner
with Licensor, with such ownership or control determined by the U.S. laws of
inventorship.

1.8 Licensed Patents means: (a) the patents and the patent applications, short
particulars of which are set out in Exhibit A (attached hereto and made part of
this Agreement); and (b) any patents and patent applications of Licensor arising
from the patent families listed in Exhibit A to the extent any Valid Claim of
these patents or patent applications would, in the absence of the licenses
contemplated hereunder, bar the use or exploitation within the Field of Use of a
product developed by or for Licensee pursuant to this Agreement (treating for
this purpose any Valid Claim in pending applications as if they had been
issued), and (c) all patents issued or hereafter issuing therefrom throughout
the world, whether national or regional, and including any divisions, renewals,
reexaminations, continuation, continuations-in-part, extensions or reissues
thereof, and any supplementary protection certificates. Exhibit A will be
updated on at least an annual basis.

1.9 Licensed Patent Rights means all rights within the Field of Use under the
Licensed Patents.

1.10 Licensed Product(s) means: (a) any product or part thereof which is covered
by any Licensed Patents; or (b) any product developed through the use of a
process which is covered by the Licensed Patents.

1.ll Net Sales in major market countries, defined as North America (U.S.,
Canada, Mexico), the EU, Scandinavia, Oceania (Australia and New Zealand), China
and Japan, means the amounts invoiced by Licensee or its Affiliates or its
Sublicensees during the Term of this Agreement for the sale of Licensed Products
to bona fide independent third parties in such major market countries, less to
the extent included in such amount: (i) normal and customary rebates, and cash
and trade discounts, actually taken; (ii) sales, use and/or other excise taxes,
custom duties or other governmental charges (other than taxes imposed on or
measured by net income) actually paid in connection with sales of Licensed
products; (iii) the cost of any bulk packages and packing, prepaid freight
charges and insurance; (iv) amounts actually allowed or credited due to return
paid; **. In the case of (i) and (iv), such amounts shall be deductible only to
the extent the same are separately identified on the invoiced to the customer or
other documentation maintained in the ordinary course of business.

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

Net sales in minor market countries, defined as countries other than the major
market countries, means ** less to the extent included in such amount: (i)
normal and customary rebates, and cash and trade discounts, actually taken; (ii)
sales, use and/or other excise taxes, custom duties or other governmental
charges (other than taxes imposed on or measured by net income) actually paid in
connection with sales of Licensed Products; (iii) the cost of any bulk packages
and packing, prepaid freight charges and insurance; (iv) amounts actually
allowed, or credited due to returns paid; **. In the case of (i) and (iv), such
amounts shall be deductible only to the extent the same are separately
identified on the invoice to the customer or other documentation maintained in
the ordinary course of business.

1.12 Single Agent Product means a Licensed Product which contains no additional
Biologically Active Substance(s) to achieve the desired therapeutic response.

1.13 Sublicensee means any non-Affiliate to whom Licensee grants a sublicense of
some or all of the rights granted to licensee under this Agreement. As used in
this Agreement, "Sublicensee" shall also include a third party to whom Licensee
has granted the right to distribute a Licensed Product.

1.14 Territory means worldwide.

1.15 Valid Claim means with respect to the Licensed Patents (i) a claim of a
pending patent application; or (ii) a claim of an issued patent which has not
lapsed or become abandoned or been declared invalid or unenforceable by a court
of competent jurisdiction, or an administrative agency from which no appeal has
been taken after ninety (90) days.

1.16 PDGF means Platelet Derived Growth Factor.

                                    2. GRANT

2.1 Exclusive License. Licensor hereby grants to Licensee and Licensee hereby
accepts from Licensor, upon the terms and conditions herein specified, a sole
and exclusive license under the Licensed Patent Rights in the Territory, and in
the Field of Use to develop, make, have made, import, have imported, use, offer
to sell, sell, and otherwise commercialize Licensed Product(s).

2.2 Sublicenses. Licensor hereby grants to Licensee and Licensee hereby accepts
from Licensor, upon the terms and conditions herein specified the right to
grant sublicenses under the Licensed Patent Rights to the extent necessary to
develop, make, have made, import, have imported, use, offer for sale, sell and
otherwise commercialize Licensed Products; provided, within ten (10) days of the
date such sublicense is executed, Licensee shall provide Licensor with at least
the following information with respect to each such Sublicensee: (i) the
identity of the Sublicensee; (ii) a description of the Licensed Product, and the
rights being granted to the Sublicensee; and (iii) the territory in which the
Licensed Product will be sold by Sublicensee. Each Sublicense granted by
Licensee shall be consistent with all the terms and conditions of this
Agreement, and Licensee shall remain responsible to Licensor for the compliance
of each such Sublicensee with the financial and other obligations under this
Agreement.

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                        3

2.3 Due Diligence Milestones. Licensee shall proceed diligently with the
development of Licensed Products. Licensee shall be deemed to satisfy the
foregoing obligation if Licensee achieves the following milestones within the
time frame indicated:

     (a) Within eighteen (18) months from Effective Date, Licensee shall file an
Investigational New Drug Application ("IND") or its equivalent for a Licensed
Product; and

     (b) Within fifty four (54) months from the Effective Date, Licensee shall
file a Biologics License Application ("BLA") or its equivalent for a Licensed
Product.

     (c) Licensee agrees: (i) to exert all continuing reasonably diligent
efforts to register one or more Licensed Products for commercial sale for
administration in humans in the Field of Use throughout the Territory and; (ii)
to promote and market the Licensed Product(s) in such areas with all continuing
reasonable commercial efforts so that the sales thereof may be maximized.

     A milestone shall be deemed to be achieved by Licensee if achieved by any
Sublicensee or Affiliate of Licensee.

2.4 Extensions. If Licensee anticipates it will fail to achieve the milestone
provided in 2.3(a) above, Licensee will provide written notice of such failure
to Licensor at least thirty (30) days prior to the end of the diligence period.
Upon receipt of such notice by Licensor, Licensee will be entitled to a maximum
of ** extensions in exchange for payment to Licensor of ** per extension, with
such payment being made by Licensee to Licensor within thirty (30) days of
failing to achieve any such milestone. If Licensee anticipates it will fail to
achieve the milestone provided in 2.3(b) above, Licensee will provide written
notice of such failure to Licensor at least thirty (30) days prior to the end of
the diligence period. Upon receipt of such notice by Licensor, Licensor, in its
sole discretion, may provide Licensee a ** extension for a fee to be agreed upon
in good faith between Licensor and Licensee. If the milestones are not met
within the periods provided and an extension has not been obtained pursuant to
this Section 2.4, Licensor may, at its sole discretion, terminate this Agreement
or render the License granted in Section 2.1 nonexclusive.

                             3. TERM AND TERMINATION

3.1 Term. The term of this Agreement shall be for a period beginning with the
Effective Date and extending, on a country by country basis, until the
expiration of the last to expire Valid Claim that covers a Licensed Product in
that country. Licensee's obligation to pay royalties shall expire on a country
by country basis.

                                        4

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

3.2  Termination.

     (1) Except as described in Section 2.4, in the event that Licensee commits
any material breach of this Agreement, unless this Agreement provides a
different remedy, the Licensor at its option, may terminate this Agreement by
giving the breaching party written notice of its election to terminate as of a
stated date, not less than ** from such stated termination date. Such notice
shall state the nature of the defaults claimed by the non-breaching party. The
breaching party during said ** period may cure any default stated in said
notice, and if such default is cured, or, if such default will take longer than
** to cure and the breaching party is diligently pursuing such cure, Licensor
may at its sole discretion on a case-by-case basis allow or not allow a
reasonable extension of the cure period and this Agreement shall continue in
full force and effect as if such notice had not been given.

     (2) In the event either party shall become insolvent or shall cease
business, or shall file a voluntary petition or an answer admitting the
jurisdiction of the court and the material allegations of, or shall consent to,
involuntary petition pursuant to or purporting to be pursuant to any
reorganization or insolvency law of any jurisdiction, or shall make an
assignment for the benefit of creditors, or shall apply for or consent to the
appointment of a receiver or trustee of a substantial part of its property, at
the option of the other party, this Agreement shall immediately terminate
effective as of a date ten(10) days following written notice by the party
intending to terminate.

3.3 Effect of Termination. If this Agreement is terminated prior to its
expiration, upon such termination Licensee shall cease all production and sale
of Licensed Products except for the production and sale of Licenced Products on
which production is completed prior to the notice of such termination. Licensee
may continue to sell such Licensed Products for up to ** after such notice and
shall pay to Licensor any royalties, milestones or sublicense fees that may
accrue on such sales.

3.4 Survivability. Articles 1, 6, 7, 9, 10 and 11, and Sections 3.3, 3.4, and,
with respect to amounts accruing prior to expiration or termination, Sections
4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8 and 4.9 hereof shall survive termination or
expiration of this Agreement.

                              4. FEES AND ROYALTIES

4.1 License Issue Fees. Upon execution of this Agreement, Licensee will pay
Licensor the sum of **, in exchange for the rights granted to Licensee under
this Agreement.

4.2 Royalties. Licensee, in exchange for the rights granted to Licensee under
this Agreement, shall also pay or cause to be paid to Licensor royalties at the
rates and in accordance with the terms below:

     (a) Licensee shall pay royalties to Licensor equal to ** of Net Sales in
major market countries and Net Sales in minor market countries of all Single
Agent Products.

                                        5

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

     (b) Licensee shall pay royalties to Licensor equal to ** of Net Sales in
major market countries and Net Sales in minor market countries of all
Combination Products.

4.3 Minimum Royalties. Licensee will provide written notice to Licensor within
thirty (30) days of making the First Commercial Sale of each Licensed Product.
In the first full calendar year of sales following the First Commercial Sale of
a Licensed Product, the royalties payable by Licensee to Licensor pursuant to
Section 4.2 shall not be less than **. In the second full calendar year
following the First Commercial Sale of a Licensed Product, the royalties payable
by Licensee to Licensor pursuant to Section 4.2 shall not be less than **. In
the third full calendar year following the First Commercial Sale of a Licensed
Product, the royalties payable by Licensee to Licensor pursuant to Section 4.2
shall not be less than **.

4.4 Bundled Products. In the event that a Licensed Product is sold as part of a
Bundled Product the Net Sales of the Licensed Product, for the purposes of
determining royalty payments, shall be determined by multiplying the Net Sales
of the Bundled Product by the fraction, A/(A+B) where A is the average sale
price of the Licensed Product when sold separately in finished form, provided A
is sold thusly, and B is the average sale price of the other product(s) in the
Bundled Product sold separately in finished form.

In the event the Licensed Product is sold separately in finished form, Licensor
and Licensee will mutually agree on a value for the average sale price of the
Licensed Product if it were to be sold separately in finished form and that
average sale price will be incorporated into the calculation above.

4.5 Minimum Milestone Payments. Licensee shall provide Licensor written notice
within thirty (30) days of the achievement of each of the milestone events set
forth below, whether achieved by the Licensee, Affiliate or Sublicensee. All
such milestone events will be subject to the corresponding Due Diligence
Milestone clause(s) in Section 2.3. With each such notice, Licensee shall pay to
Licensor the corresponding amount set forth below:

                                 MILESTONE                              AMOUNT
                                 ---------                              ------
1. IND approval or equivalent foreign filing for a Licensed
      Product and;                                                            **
2. The later of 18 months from IND or equivalent                              **
      foreign approval for a Licensed Product, or date
      of Initiation of Phase III or pivotal clinical trials, as
      "Phase III" is defined by Title 21: Chapter 1-Food and Drug
      Administration, Department of Health and Human Services for
      a Licensed Product and;
3. The later of 24 months from IND or equivalent foreign                      **
      approval or date of filing of a BLA for a Licensed
      Product and;
4. First marketing approval for a Licensed Product.                   $1,000,000

                                        6

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

4.6 Sales Bonus Payment. No later than April 1 of the year following the first
(but only the first) calendar year in which worldwide annual Net Sales of
Licensed Products by Licensee, Affiliate or Sublicensee exceeds **, Licensee
will pay a Sales Bonus to Licensor of **.

4.7 Sublicense Fees. Licensee agrees to pay to Licensor sublicense fees as
follows:

     (1) ** of any license fees and milestone payments (but excluding royalty
payments) paid to Licensee by any Sublicensee minus the corresponding minimum
license fee or milestone payment previously paid to Licensor by Licensee, if
any, for Licensed Products if the sublicense is for a Single Agent Products and
such sublicense is entered prior to the initiation of a Phase II Clinical Trial.

     (2) ** of any license fees and milestone payments (but excluding royalty
payments) paid to Licensee by any Sublicensee minus the corresponding minimum
license fee or milestone payment previously paid to Licensor by Licensee, if
any, if the sublicense involves only a Combination Product(s) and such
sublicense is entered prior to the initiation of a Phase II Clinical Trial.

     (3) ** of any license fees and milestone payments (but excluding royalty
payments) paid to Licensee by any Sublicensee minus the corresponding minimum
license fee or milestone payment previously paid to Licensor by Licensee, if
any, if the sublicense involves only a Single Agent Product(s) and such
sublicense is entered after the initiation of a Phase II Clinical Trial.

     (4) ** of any license fees and milestone payments (but excluding royalties)
paid to Licensee by any Sublicensee minus the corresponding minimum license fee
or milestone payment previously paid to Licensor by Licensee, if any, if the
sublicense involves only a Combination Product(s) and such sublicense is entered
after the initiation of a Phase II Clinical Trial.

4.8 Schedule and Form of Payment/Taxes. Licensee shall pay royalties and
sublicense fees, if any, on a quarterly basis commencing on the date of First
Sale of a Licensed Product and payments shall be due and payable with the
reports required by this Section 4.6 forty five (45) days following the close of
the relevant calendar quarterly period. Each such payment shall be accompanied
by a report for the period covered showing total number or volume of Licensed
Products sold and identified as Net Sales on a country by country basis, the
exchange rate used to convert any payments into U.S. dollars, and total
royalties due. All amounts payable to Licensor hereunder shall be payable in
United States funds. Licensee shall be responsible for the payment of all
withholding taxes imposed by any country on any royalty payable to Licensor
hereunder and shall withhold such taxes from the amounts payable to Licensor
hereunder. Notwithstanding the foregoing, if the law of any foreign country
prevents any payment payable to Licensor hereunder to be made in the United
States of America or prevents any such payment to be made in United States
dollars, Licensor agrees to accept such royalty in form and place as permitted,
including deposits by Licensee in the applicable

                                        7

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

foreign currency in a local bank or banks in such country designated by
Licensee. If any currency conversion is required in connection with any payment
to Licensor hereunder such conversion shall be made at the buying rate for the
transfer of such other currency as quoted by Citicorp Bank (New York), or its
successor, on the last business day of the applicable accounting period, in the
case of any payment payable with respect to a specified quarterly period.

4.9 Records. Licensee shall maintain complete and accurate records sufficient to
enable accurate calculation of royalties due Licensor under this Agreement. Once
a calendar year, Licensor shall have the right to select a certified public
accountant acceptable to Licensee to inspect, on not less than fifteen (15) days
prior written notice and during regular business hours, the records of Licensee
necessary to verify Licensee's statement and royalty payments due pursuant to
this Agreement. Licensee agrees to cooperate and provide reasonable access to
the books, records and premises of Licensee; provided, however, that such access
shall be limited to those books and records necessary to verify the accuracy of
the payment made by Licensee to Licensor pursuant to this Agreement. The entire
cost for such inspection shall be borne by Licensor unless there is a
discrepancy of greater than, or equal to, ten percent (10%) in Licensee's favor
in which case Licensee shall bear the entire cost of the inspection and audit.
Records shall be preserved by Licensee for three (3) years for inspection by
Licensor.

                 5. PROSECUTION AND MAINTENANCE OF PATENT RIGHTS

5.1 Right to Prosecute and Maintain Licensed Patents. During the term hereof,
Licensor shall, at its own cost and expense, file, prosecute and maintain all
patents and patent applications as set forth in Exhibit A, and shall maintain
the Licensed Patents to keep the same in full force and effect, except as
otherwise provided herein. Licensee shall render Licensor such assistance as the
latter may reasonably require to comply with said obligations. Licensor shall
retain the right to abandon patent applications in order to advance prosecution
of Licensed Patents. In any other event, however, if Licensor should wish to
finally abandon any one or more of the Licensed Patents or cease the maintenance
thereof, Licensor shall notify Licensee not less than sixty (60) days prior to
any action required to preserve such Licensed Patents, and shall offer Licensee
a right to prosecute and maintain such Licensed Patents. Licensee shall notify
Licensor within sixty (60) days of receipt of Licensor's notification of
Licensee's intent to assume such prosecution and maintenance rights that
Licensor wishes to abandon or cease maintaining. Licensee shall thereafter have
the right, but not the obligation, to pursue the prosecution and maintenance of
such Licensed Patents at Licensees sole expense, and Licensor shall provide such
assistance and execute such documents as are necessary to assist Licensee in
such prosecution and maintenance. Licensee shall thereafter assume all costs and
expenses related to such assigned Licensed Patents, and such costs and expenses
may be deducted from royalty or milestone payments due payable by Licensee to
Licensor pursuant to this Agreement.

5.2 Assistance and Communication. Licensor shall have exclusive control over the
prosecution of the Licensed Patents before all national and international patent
offices. Licensee shall cooperate with Licensor and shall render all reasonable
assistance to Licensor in preparing, filing and prosecuting Licensed Patents
relating to the Field of

                                       8

Use. Licensor agrees to provide Licensee with copies of all correspondence to
and from the U.S. Patent and Trademark Office and other national and
international patent offices.

                         6. PATENT MARKINGS AND EXPORT

6.3 Marking. Licensee shall comply with all applicable United States and foreign
statutes related to the marking of Licensed Products and their packaging with
patent pending, patent number(s), or other intellectual property notices and
legends required to maintain the Licensed Patent Rights.

6.4 Export. Licensee shall be solely responsible for obtaining all licenses,
permits or authorizations required from the U.S. and any other government for
export or reexport of Licensed Products. Licensor agrees to provide Licensee
with such assistance as it may reasonably request in obtaining such licenses,
permits or authorization at Licensee's expense.

                               7. CONFIDENTIALITY

7.1 Confidential Information. It may be necessary for one party to disclose to
the other party certain confidential or proprietary information. "Confidential
Information" means information related to the business of Licensee or to the
business of Licensor and includes, without limitation, information exchanged by
the parties in anticipation of this Agreement, all tangible and intangible
information relating to scientific data, analyses and projections; intellectual
property, trade secrets, know how, products and product candidates, business,
strategies, operations, systems, software, ideas, financial information,
contracts, business documents, and business records together with analysis,
compilations, studies and other documents, in whatever form furnished, prepared
or stored, whether prepared by a party, its representatives or others, which are
based upon, incorporate or otherwise reflect such information. During the term
of this Agreement and for ** thereafter, the party receiving Confidential
Information of the other party agrees not to disclose such Confidential
Information and not to use it for any purposes except those specifically allowed
in this Agreement. Confidential Information shall not include information which:

     (1) is now in the public domain or which becomes generally available to
the public through no fault of the receiving party;

     (2) is already known to, or in the possession of, the receiving party
prior to disclosure by the disclosing party as can be demonstrated by written
evidence;

     (3) is disclosed on a non-confidential basis to the receiving party by a
third party having the right to make such a disclosure;

     (4) is independently developed by the receiving party (by activity not
associated with the Licensed Patent Rights) as can be demonstrated by written
evidence; or

     (5) is required to be disclosed by order of any court or governmental or
regulatory authority, but only after notification to the providing party by the
receiving party of such requirement

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                       9

in order to allow the providing party to seek protection for the providing
party's Confidential information from such court or governmental or regulatory
authority.

8. INTERFERENCE, OPPOSITION AND ENFORCEMENT

8.1 Interference. In the event an interference is declared by the U.S. Patent
and Trademark Office involving one or more of the Licensed Patents, then
Licensor shall promptly notify Licensee in writing. Licensor shall have
exclusive control over the conduct of interference. At Licensor's sole
discretion and expense, Licensee shall assist Licensor and cooperate in any such
interference upon Licensor's request. In the event that there is an interference
declared involving one or more of the Licensed Patents, the obligation of
Licensee to pay royalties under the Licensed Patent Rights shall continue
unabated.

8.2 Opposition. In the event that one or more Licensed Patents are subject to an
opposition proceeding, then Licensor shall promptly notify Licensee in writing.
Licensor shall have exclusive control over the conduct of the opposition. At
Licensor's sole discretion and expense, Licensee shall assist Licensor and
cooperate in any such opposition upon Licensor's request. In the event that
there is an opposition involving one or more of the Licensed Patents, the
obligation of licensee to pay royalties under the Licensed Patent Rights shall
continue unabated.

8.3 Enforcement. In the event that Licensee becomes aware of any infringement by
a third party of any of the Licensed Patent Rights, Licensee shall promptly
notify Licensor in writing (including evidence establishing a prima facie case
of infringement by such third party). If Licensor or its partner take action
against an infringer then the obligation of Licensee to pay royalties under the
licensed Patent Rights shall continue unabated. Licensee acknowledges that a
discontinuation of such third party infringement or initiation of suit against
such third party infringer may be accomplished by Licensor or its partner. If
Licensor and its partner decline to take action against an infringer in the
Field of Use then the royalties payable to Licensor by Licensee pursuant to this
Agreement shall be reduced by ** in the territory where such infringement is
taking place and such reduction in royalties shall remain in effect so long as
the infringement continues to take place in that territory without action being
taken by Licensor or its partner. Licensor (or its partner conducting such suit
under Section 8.3, above), shall have exclusive control over the conduct of any
enforcement action. Licensee shall assist Licensor (or its partner) and
cooperate upon request in any such litigation. All expenses incurred by
Licensee, including legal fees, resulting from requested assistance to Licensor
shall be paid by the Licensor within 30 days of receipt of a written invoice
from Licensee. Any recovery as a result of any litigation or settlement thereof
shall be the property of Licensor or its partner.

8.4 Declaratory Judgment Action. In the event a third party brings an action to
obtain a declaration of patent invalidity against Licensor and one or more
Licensed Patents, Licensor shall have the sole right to defend such action at
its own cost and expense, and to control any ensuing litigation.

**   REPRESENTS MATERIAL WHICH HAS BEEN REDACTED AND SEPARATELY FILED WITH THE
     SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
     TREATMENT PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS
     AMENDED.

                                       10

9. REPRESENTATIONS AND WARRANTIES

9.1. Representations, Warranties and Covenants of Licensee. Licensee represents
and warrants to and covenants with Licensor that:

     (a) Licensee is a corporation duly organized, validly existing and in
     corporate good standing under the laws of Tennessee; and

     (b) Licensee has the corporate and legal right, title, authority and power
     to enter into this Agreement; and

     (c) Licensee has taken all necessary action to authorize the execution,
     delivery and performance of this Agreement; and

     (d) upon the execution and delivery of this Agreement, this Agreement shall
     constitute a valid and binding obligation of Licensee, enforceable in
     accordance with its terms, except as enforceability may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or similar
     laws affecting creditors' and contracting parties' rights generally and
     except as enforceability may be subject to general principles of equity
     (regardless of whether such enforceability is considered in a proceeding in
     equity or at law); and

     (e) the performance of its obligations under this Agreement will not
     conflict with or result in a breach of any agreements, contracts or other
     arrangements to which it is a party; and

     (f) Licensee will not during the term of this Agreement enter into any
     agreements, contracts or other arrangements that would prevent Licensee
     from meeting its obligations or adversely impact Licensor's rights under
     this Agreement; and

     (g) Licensee will comply with all applicable laws, regulations and
     guidelines in connection with the performance of Licensee's obligations
     pursuant to this Agreement, including but not limited to all applicable
     product safety, product testing, product labeling, package marking and
     product advertising laws and regulations and the regulations of the United
     States and any other relevant nation concerning any export or other
     transfer of technology, services or products.

9.2. Representations, Warranties and Covenants of Licensor. Licensor represents
and warrants to and covenants with Licensee that:

     (a) Licensor is a corporation duly organized, validly existing and in
     corporate good standing under the laws of the state of Washington; and

     (b) Licensor has the corporate and legal right, title, authority and power
     to enter into this Agreement; and

                                       11

     (c) Licensor has taken all necessary action to authorize the execution,
     delivery and performance of this Agreement; and

     (d) upon the execution and delivery of this Agreement, this Agreement shall
     constitute a valid and binding obligation of Licensor enforceable in
     accordance with its terms, except as enforceability may be limited by
     applicable bankruptcy, insolvency, reorganization, moratorium or similar
     laws affecting creditors' and contracting parties' rights generally and
     except as enforceability may be subject to general principles of equity
     (regardless of whether such enforceability is considered in a proceeding in
     equity or, at law); and

     (e) the performance of its obligations under this Agreement will not
     conflict with or result in a breach of any agreements, contracts or other
     arrangements to which it is a party; and

     (f) Licensor will not after the Effective Date enter into any agreements,
     contracts or other arrangements that would prevent Licensor from meeting
     its obligations or adversely impact LICENSEE'S rights under this Agreement;
     and

     (g) Licensor will comply with all applicable laws, regulations and
     guidelines in connection with the performance of Licensor's obligations
     pursuant to this Agreement, including but not limited to all applicable
     product safety, product testing, product labeling, package marking and
     product advertising laws and regulations and the regulations of the United
     States and any other relevant nation concerning any export or other
     transfer of technology, services or products.

9.3 Warranty Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY WARRANTY WITH RESPECT TO THE LICENSED PATENT
RIGHTS, GOODS, SERVICES OR OTHER SUBJECT MATTER OF THIS AGREEMENT AND HEREBY
DISCLAIMS WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NON-INFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING.

9.4 Limited Liability. EXCEPT IN THE CASE OF GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT, NEITHER LICENSEE NOR LICENSOR WILL BE LIABLE WITH RESPECT TO ANY
MATTER ARISING UNDER THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT
LIABILITY OR OTHER LEGAL OR EQUITABLE THEORY FOR (A) ANY PUNITIVE, EXEMPLARY,
INCIDENTAL OR CONSEQUENTIAL DAMAGES OR LOST PROFITS OR (B) COST OF PROCUREMENT
OF SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES.

                                       12

                               10. INDEMNIFICATION

10.1. Personal Injury or Property Damage. Licensee and Sublicensee(s) shall
indemnify and hold Licensor harmless from and against any and all claims,
judgments, costs, awards, expenses (including, but not limited to, any
attorney's fees) or liability of any kind arising out of personal injury or
property damage caused or alleged to be caused by a Licensed Product. In
addition, Licensee and Sublicensee(s) shall assume all obligations for
warranties and product liability claims that accompany or result from the sale
or use of a Licensed Product; and shall indemnify and hold Licensor harmless
from and against any and all claims, judgments, costs, awards, expenses
(including, but not limited to, any attorney's fees) or liability of any kind
arising from customers and relating to such warranty obligations or product
liability claims, Licensee's or Sublicensee's obligation to indemnify Licensor
under this Section 10.1 shall not apply in case of gross negligence or willful
misconduct by Licensor.

10.2. Patent Infringement. Licensee shall indemnify and hold Licensor harmless
from and against any and all claims, judgments, costs, awards, expenses
(including, but not limited to, any attorney's fees) or liability of any kind
arising out of or connected with the actual or alleged infringement of any
patent or other proprietary right of third parties by reason of Licensee's, or
Sublicensee's having made, importation, use, sale or having sold of any Licensed
Product, provided, however, that in the event a suit, claim or action is brought
against Licensee or Sublicensee(s) by a third party, Licensor shall render all
reasonable assistance to Licensee upon request of Licensee, at Licensee's cost
and expense in connection therewith. Licensee's obligation to indemnify Licensor
under this Section 10.2 shall not apply in case of gross negligence or willful
misconduct by Licensor.

10.3. Insurance. Licensee shall maintain and cause its Sublicensee's to maintain
appropriate product liability insurance with respect to development, manufacture
and sale of Licensed Products by Licensee and its Sublicensees in such amount as
Licensee customarily maintains with respect to sales of its other products.
Licensee shall maintain and cause its Sublicensees to maintain such insurance
for so long as it continues to manufacture or sell Licensed Products, and
thereafter for so long as Licensee customarily maintains insurance with respect
to sales of its other products.

10.4. Survival. The obligations of this Section 10 shall survive the expiry or
termination, for whatever reason, of this Agreement.

                                11. IMPROVEMENTS

11.1 Ownership of Improvements. Any Improvement made or otherwise developed by
Licensee solely shall be solely owned by Licensee. Any Improvement made or
otherwise developed jointly by Licensee and Licensor shall be owned by Licensor
and Licenses according to the patent laws of the United States. If patentable,
Improvements, whether made by Licensee solely or Licensee and Licensor jointly,
shall be protected by filing patent applications, prepared by the party or
parties in its or their own name, as the case may be, that made or developed
such Improvement. Any jointly owned Improvement shall be included within the
Licensed Patent Rights.

                                       13

11.2 Improvements Excluded. Any improvement to the Licensed Patent Rights or to
the Licensed Product that Licensor owns totally or partially, in combination
with any third party, but not with Licensee, or in which Licensor obtains a
total or partial interest, in combination with any third party, but not with
Licensee, whether or not patentable, shall not be an improvement or included
within the Licensed Patents Rights for purposes of this Agreement.

11.2 Notice. Either party may generate Improvements without approval from or
prior notice to the other party, but shall promptly thereafter notify the other
party of such Improvements.

                             12. GENERAL PROVISIONS

12.1 Severability. If any provision of this Agreement shall be found by a court
of competent jurisdiction to be void, invalid or unenforceable, the same shall
either be conformed to the extent necessary to comply with applicable law or
stricken if not so conformable, so as not to affect the validity of this
Agreement.

12.2 Notices. All notices, requests, demands, waivers, consents, approvals or
other communications hereunder shall be in writing and shall be deemed to have
been duly given if delivered personally, faxed with receipt acknowledged (and
with a confirmation copy also sent by first class mail, return receipt
requested), delivered by a recognized commercial courier service with receipt
acknowledged, or mailed by registered or certified mail return receipt
requested, postage prepaid, as follows:

If to Licensor:   BioMimetic Pharmaceuticals, Inc.
                  6015 Saddleview Dr.,
                  Franklin, TN 37067
                  Attention: President and CEO

With a copy to:   BioMimetic Pharmaceuticals, Inc.
                  6015 Saddleview Dr.,
                  Franklin, TN 37067
                  Attention: Legal Department

If to ZGI:        ZymoGenetics, Inc.
                  1201 Eastlake Avenue East
                  Seattle, WA 98102
                  Attention: Business Development

With a copy to:   ZymoGenetics, Inc.
                  1201 Eastlake Avenue East
                  Seattle, WA 98102
                  Attention: Legal affairs Department

                                       14

or to such other addresses as the addressee may have specified in a notice duly
given to the sender as provided herein. Such notice, request, demand, waiver,
consent, approval or other communication will be deemed effective (i) as of the
date so delivered (either personally or by courier service) or faxed; or (ii) on
the third (3rd) business day after the same has been mailed.

12.3 Force Majeure. Neither party to this Agreement shall be liable for delay or
failure in the performance of any of its obligations hereunder if such delay or
failure is due to causes beyond its reasonable control, including, without
limitation, acts of God, fires, earthquakes, strikes and labor disputes, acts of
war, civil unrest, or intervention of any governmental authority, but any such
delay or failure shall be remedied by such party as soon as is reasonably
possible. If the Force Majeure event persists for longer than twelve (12)
months, the other party shall have the right to terminate this Agreement.

12.4 Assignments. This Agreement may not be assigned by Licensee without the
written prior consent of Licensor; provided that Licensee may assign this
agreement to an acquirer of all or substantially all of its assets. This
Agreement shall inure to the benefit of and be binding on the parties' permitted
assigns, and successors in interest. The parties hereto agree that each is
acting as an independent contractor and not as an agent or partner of the other
by virtue of this Agreement.

12.5 Waivers and Modifications. The failure of any party to insist on the
performance of any obligation hereunder shall not act as a waiver of such
obligation. No waiver, modification, release, or amendment or any obligation
under this Agreement shall be valid or effective unless in writing and signed by
both parties hereto.

12.6 Choice of Law and Jurisdiction. This Agreement is subject to and shall be
construed and enforced in accordance with the laws of the State of Washington
without reference to its choice of law provisions.

12.7 Entire Agreement. This Agreement constitutes the entire agreement between
the parties as to the subject matter hereof, and all prior negotiations,
representations, agreements and understandings are merged into, extinguished by
and completely expressed by this Agreement.

                                       15

12.8 Recording and Further Assurances. Licensee may record this Agreement in
each place necessary or convenient to perfect, protect or otherwise evidence
Licensee's rights hereunder. Each party agrees, promptly upon request, to
execute such further documents as the other party may reasonably request for the
purpose of making effective the rights of such party under this Agreement, at
the sole expense of the party so requesting.

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

BIOMIMETIC PHARMACEUTICALS, INC.           ZYMOGENETICS, INC.

By: /s/ Samuel E. Lynch                    By: /s/ Bruce L. A. Carter
    ------------------------------------       ---------------------------------
Name: Samuel E. Lynch                      Name: Bruce L. A. Carter Ph.D.
Its: President & chief Executive Officer   Its: President and CEO

                                       16

                                    EXHIBIT A

                              PDGF Licensed Patents

Granted Patents

Country   Patent No.        Issue Date    Comments
-------   ----------        ----------    --------
US        4,769,328         09/06/88
US        4,801,542         01/31/89
US        5,045,633         09/03/91
US        4,766,073         08/23/88
US        4,889,919         12/26/89
US        5,428,010         06/27/95
US        5,533,836         07/09/96
US        6,004,929         12/21/99
US        4,845,075         07/04/89
US        5,516,896         05/14/96
US        4,849,407         07/18/89
US        5,498,600         03/12/96
US        5,187,263         02/16/93
US        5,128,321         07/07/92
US        5,474,982         12/12/95
US        5,895,755         04/20/99
US        5,905,142         05/18/99
US        5,770,228         06/23/98
US        5,889,149         03/30/99
AU        638010            06/17/93
AU        641816            02/08/94
CA        1,340,846         12/07/99      Reissued Patent

EP        177957            01/07/93      Registered in AT, BE, CH, LI, DE,
                                          FR, GB, IT, NL, LU, SE

EP        487166            12/29/99      Registered in AT, BE, CH, LI, DE,
                                          FR, GB, IT, LI, LU, NL, SE

EP        259632            12/13/95      Registered in AT, BE, CH, LI, DE,

Country   Patent No.        Issue Date    Comments
-------   ----------        ----------    --------
                                          FR, GB, IT, LU, NL, SE

EP        547064            06/22/94      Registered in AT, BE, CH, DE,
                                          DK, ES, FR, GB, GR, IT, LI, LU,
                                          NL, SE
JP        2837407           10/09/98
JP        2127599           02/24/97
JP        2823690           09/04/98

Pending Applications

Country   Application No.   Filing Date   Comments
-------   ---------------   -----------   --------
JP        259632            12/13/95
CA        544,480           08/11/87
DK        87/4217           08/11/87
CA        2,087,969         07/22/91

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