Document:

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                                                                   Exhibit 10.58
                                                                   -------------

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS.  THEY MAY NOT BE
SOLD OR OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL (WHICH MAY BE
COUNSEL FOR THE COMPANY) REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT.

                                      No.
                           STOCK SUBSCRIPTION WARRANT

                          To Purchase Common Stock of

                         ONTOGENY, INC. (the "Company")

                  DATE OF INITIAL ISSUANCE:  November 21, 1997

     THIS CERTIFIES THAT for value received, TRANSAMERICA BUSINESS CREDIT
CORPORATION or its registered assigns (hereinafter called the "Holder") is
entitled to purchase from the Company, at any time during the Term of this
Warrant, Seven Thousand Six Hundred Fifty (7,650) shares of common stock, $.01
par value, of the Company (the "Common Stock"), at the Warrant Price, payable as
provided herein.  The exercise of this Warrant shall be subject to the
provisions, limitations and restrictions herein contained, and may be exercised
in whole or in part.

SECTION 1.    DEFINITIONS.
              -----------
     For all purposes of this Warrant, the following terms shall have the
meanings indicated:

     COMMON STOCK - shall mean and include the Company's authorized Common
     ------------
Stock, $.01 par value, as constituted at the date hereof.

     EXCHANGE ACT - shall mean the Securities Exchange Act of 1934, as amended
     ------------
from time to time.

     SECURITIES ACT - the Securities Act of 1933, as amended.
     --------------

     TERM OF THIS WARRANT - shall mean the period beginning on the date of
     --------------------
initial issuance hereof and ending on November 21, 2002, subject to the
provisions of Section 2.3 below.

     WARRANT PRICE - $2.50 per share, subject to adjustment in accordance with
     -------------
Section 5 hereof.

     WARRANTS - this Warrant and any other Warrant or Warrants issued in
     --------
connection with a Commitment Letter dated September 16, 1997 executed by the
Company and Transamerica Business Credit Corporation (the "Commitment Letter")
to the original holder of this Warrant, or any transferees from such original
holder or this Holder.
<PAGE>

     WARRANT SHARES - shares of Common Stock purchased or purchasable by the
     --------------
Holder of this Warrant upon the exercise hereof.

SECTION 2.    EXERCISE OF WARRANT.
              -------------------

2.1.  PROCEDURE FOR EXERCISE OF WARRANT.  This Warrant may be exercised in whole
      ---------------------------------
or in part by the Holder at any time, or from time to time, prior to the
expiration of the Term.  To exercise this Warrant in whole or in part (but not
as to any fractional share of Common Stock), the Holder shall deliver to the
Company at its office referred to in Section 13 hereof at any time and from time
to time during the Term of this Warrant:  (i) the Notice of Exercise in the form
attached hereto, (ii) cash, certified or official bank check payable to the
order of the Company or wire transfer of funds to the Company's account (or any
combination of any of the foregoing) in the amount of the Warrant Price for each
share being purchased, and (iii) this Warrant.  Notwithstanding any provisions
herein to the contrary, if the Current Market Price (as defined in Section 5) is
greater than the Warrant Price (at the date of exercise, as set forth below), in
lieu of exercising this Warrant as hereinabove permitted, the Holder may elect
to receive shares of Common Stock equal to the value (as determined below) of
this Warrant (or the portion thereof being canceled) by surrender of this
Warrant at the office of the Company referred to in Section 13 hereof, together
with the Notice of Exercise, in which event the Company shall issue to the
Holder that number of shares of Common Stock computed using the following
formula:

                              CS = WCS x (CMP-WP)
                                   --------------
                                        CMP

Where

CS    equals the number of shares of Common Stock to be issued to the Holder

WCS   equals the number of shares of Common Stock purchasable under the Warrant
      or, if only a portion of the Warrant is being exercised, the portion of
      the Warrant being exercised (at the date of exercise)

CMP   equals the Current Market Price (at the date of exercise)

WP    equals the Warrant Price (as adjusted to the date of exercise)

In the event of any exercise of the rights represented by this Warrant, a
certificate or certificates for the shares of Common Stock so purchased,
registered in the name of the Holder or such other name or names as may be
designated by the Holder, shall be delivered to the Holder hereof within a
reasonable time, not exceeding fifteen (15) days, after the rights represented
by this Warrant shall have been so exercised; and, unless this Warrant has
expired, a new Warrant representing the number of shares (except a remaining
fractional share), if any, with respect to which this Warrant shall not then
have been exercised shall also be issued to the Holder hereof within such time.
The person in whose name any certificate for shares of Common Stock is issued
upon exercise of this Warrant shall for all purposes be deemed to have become
the holder of record of such shares on the date on which the Notice of Exercise
and Warrant is delivered to the Company and payment of the Warrant Price and any
applicable taxes is made, irrespective of

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the date of delivery of such certificate, except that, if the date of such
surrender and payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of such shares at
the close of business on the next succeeding date on which the stock transfer
books are open.

2.2.  TRANSFER RESTRICTION LEGEND.  Each certificate for Warrant Shares shall
      ---------------------------
bear the following legend (and any additional legend required by (i) any
applicable state securities laws and (ii) any securities exchange upon which
such Warrant Shares may, at the time of such exercise, be listed) on the face
thereof unless at the time of exercise such Warrant Shares shall be registered
under the Securities Act:

     "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."

Any certificate issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of a public distribution under a registration statement of the securities
represented thereby) shall also bear such legend unless, in the opinion of
counsel for the holder thereof (which counsel shall be reasonably satisfactory
to counsel for the Company) the securities represented thereby are not, at such
time, required by law to bear such legend.

2.3.  ACCELERATION OF TERM UPON INITIAL PUBLIC OFFERING.  Notwithstanding any
      -------------------------------------------------
provision to the contrary contained in this Warrant, the Holder's right to
exercise this Warrant shall expire, if not previously exercised, immediately
upon the closing of the issuance and sale of shares of Common Stock in the
Company's first public offering of securities for its own account pursuant to an
effective registration statement under the Securities Act (the "Initial Public
Offering"), provided that the underwriters request that the Holder exercise this
Warrant and provide at least fifteen (15) business days' opportunity to
exercise.

The Company shall notify the Holder if the Initial Public Offering is proposed,
within a reasonable period of time prior to the filing of a registration
statement.  Such notice shall contain such details of the proposed Initial
Public Offering as are reasonable in the circumstances and notice that this
Warrant is expected to expire upon closing thereof (provided such notice is
delivered at least fifteen (15) business days prior thereto).  If such closing
does not take place, the Company shall promptly notify the Holder that such
proposed transaction has been terminated. Anything to the contrary in this
Warrant notwithstanding, the Holder may rescind any exercise promptly after such
notice of termination of the proposed transaction if the exercise occurred after
the Company notified the Holder that the Initial Public Offering was proposed or
if the exercise were otherwise precipitated by such proposed Initial Public
Offering.  In the event of such rescission, this Warrant will continue to be
exerciseable on the same terms and conditions.

SECTION 3.    COVENANTS AS TO COMMON STOCK.  The Company covenants and agrees
              ----------------------------
that all shares of Common Stock that may be issued upon the exercise of the
rights represented by this

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Warrant will, upon issuance, be validly issued, fully paid and nonassessable,
and free from all taxes, liens and charges with respect to the issue thereof.
The Company further covenants and agrees that it will pay when due and payable
any and all federal and state taxes (not including taxes on or measured by the
net income or capital gains of the Holder) which may be payable in respect of
the issue of this Warrant or any Common Stock or certificates therefor issuable
upon the exercise of this Warrant. The Company further covenants and agrees that
the Company will at all times have authorized and reserved, free from preemptive
rights, a sufficient number of shares of Common Stock to provide for the
exercise of the rights represented by this Warrant. The Company further
covenants and agrees that if any shares of capital stock to be reserved for the
purpose of the issuance of shares upon the exercise of this Warrant require
registration with or approval of any governmental authority under any federal or
state law before such shares may be validly issued or delivered upon exercise,
then the Company will in good faith and as expeditiously as possible endeavor to
secure such registration or approval, as the case may be. If and so long as the
Common Stock issuable upon the exercise of this Warrant is listed on any
national securities exchange, the Company will, if permitted by the rules of
such exchange, list and keep listed on such exchange, upon official notice of
issuance, all shares of such Common Stock issuable upon exercise of this
Warrant.

SECTION 4.    ADJUSTMENT OF NUMBER OF SHARES.  Upon each adjustment of the
              ------------------------------
Warrant Price as provided in Section 5, the Holder shall thereafter be entitled
to purchase, at the Warrant Price resulting from such adjustment, the number of
shares (calculated to the nearest tenth of a share) obtained by multiplying the
Warrant Price in effect immediately prior to such adjustment by the number of
shares purchasable pursuant hereto immediately prior to such adjustment and
dividing the product thereof by the Warrant Price resulting from such
adjustment.

SECTION 5.    ADJUSTMENT OF WARRANT PRICE.  The Warrant Price shall be subject
              ---------------------------
to adjustment from time to time as follows:

    (i) If, at any time during the Term of this Warrant, the number of shares of
Common Stock outstanding is increased by a stock dividend payable in shares of
Common Stock or by a subdivision or split-up of shares of Common Stock, then,
following the record date fixed for the determination of holders of Common Stock
entitled to receive such stock dividend, subdivision or split-up, the Warrant
Price shall be appropriately decreased so that the number of shares of Common
Stock issuable upon the exercise hereof shall be increased in proportion to such
increase in outstanding shares.

    (ii) If, at any time during the Term of this Warrant, the number of shares
of Common Stock outstanding is decreased by a combination of the outstanding
shares of Common Stock, then, following the record date for such combination,
the Warrant Price shall appropriately increase so that the number of shares of
Common Stock issuable upon the exercise hereof shall be decreased in proportion
to such decrease in outstanding shares.

    (iii) All calculations under this Section 5 shall be made to the nearest
cent or to the nearest one-tenth (1/10) of a share, as the case may be.

    (iv) The Current Market Price at any date of one share of Common Stock shall
be deemed to be the average of the daily closing prices for the 15 consecutive
business days ending

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on the third business day before the day in question (as adjusted for any stock
dividend, split, combination or reclassification that took effect during such 15
business day period). The closing price for each day shall be the last reported
sales price or, in case no such reported sales took place on such day, the
average of the last reported bid and asked prices, in either case on the
principal national securities exchange on which the Common Stock is listed or
admitted to trading or as reported by Nasdaq (or if the Common Stock is not at
the time listed or admitted for trading on any such exchange or if prices of the
Common Stock are not reported by Nasdaq then such price shall be equal to the
average of the last reported bid and asked prices on such day as reported by The
National Quotation Bureau Incorporated or any similar reputable quotation and
reporting service, if such quotation is not reported by The National Quotation
Bureau Incorporated); provided, however, that if the Common Stock is not traded
in such manner that the quotations referred to in this clause (v) are available
for the period required hereunder, the Current Market Price shall be determined
in good faith by the Board of Directors of the Company or, if such determination
cannot be made, by a nationally recognized independent investment banking firm
selected by the Board of Directors of the Company (or if such selection cannot
be made, by a nationally recognized independent investment banking firm selected
by the American Arbitration Association in accordance with its rules).

    (v) Whenever the Warrant Price shall be adjusted as provided in Section 5,
the Company shall prepare a statement showing the facts requiring such
adjustment and the Warrant Price that shall be in effect after such adjustment.
The Company shall cause a copy of such statement to be sent by mail, first class
postage prepaid, to each Holder of this Warrant at its, his or her address
appearing on the Company's records. Where appropriate, such copy may be given in
advance and may be included as part of the notice required to be mailed under
the provisions of subsection (viii) of this Section 5.

    (vi) Adjustments made pursuant to clauses (i) and (ii) above shall be made
on the date such dividend, subdivision, split-up, combination or distribution,
as the case may be, is made, and shall become effective at the opening of
business on the business day next following the record date for the
determination of stockholders entitled to such dividend, subdivision, split-up,
combination or distribution.

    (vii) In the event the Company shall propose to take any action of the types
described in clauses (i) or (ii) of this Section 5, the Company shall forward,
at the same time and in the same manner, to the Holder of this Warrant such
notice, if any, which the Company shall give to the holders of Common Stock of
the Company.

    (viii) In any case in which the provisions of this Section 5 shall require
that an adjustment shall become effective immediately after a record date for an
event, the Company may defer until the occurrence of such event issuing to the
Holder of all or any part of this Warrant which is exercised after such record
date and before the occurrence of such event the additional shares of capital
stock issuable upon such exercise by reason of the adjustment required by such
event over and above the shares of capital stock issuable upon such exercise
before giving effect to such adjustment exercise; provided, however, that the
Company shall deliver to such Holder a due bill or other appropriate instrument
evidencing such Holder's right to receive such additional shares upon the
occurrence of the event requiring such adjustment.

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SECTION 6.    OWNERSHIP.
              ---------

6.1.  OWNERSHIP OF THIS WARRANT.  The Company may deem and treat the person in
      -------------------------
whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary until presentation of this Warrant for registration of transfer
as provided in this Section 6.

6.2.  TRANSFER AND REPLACEMENT.  This Warrant and all rights hereunder are
      ------------------------
transferable in whole or in part upon the books of the Company by the Holder
hereof in person or by duly authorized attorney, and a new Warrant or Warrants,
of the same tenor as this Warrant but registered in the name of the transferee
or transferees (and in the name of the Holder, if a partial transfer is
effected) shall be made and delivered by the Company upon surrender of this
Warrant duly endorsed, at the office of the Company referred to in Section 13
hereof.  In the event of any purported transfer of this Warrant not in
accordance with the terms hereof, the Company shall not be required (i) to
transfer on its books any of the rights to acquire shares of Common Stock or
Common Stock issuable upon the exercise of such rights, or (ii) to treat as
owner of such rights to acquire shares of Common Stock or Common Stock issuable
upon the exercise of such rights.  Upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft or destruction, and, in such
case, of indemnity or security reasonably satisfactory to it, and upon surrender
of this Warrant if mutilated, the Company will make and deliver a new Warrant of
like tenor, in lieu of this Warrant; provided that if the Holder hereof is an
instrumentality of a state or local government or an institutional holder or a
nominee for such an instrumentality or institutional holder an irrevocable
agreement of indemnity by such Holder shall be sufficient for all purposes of
this Section 6, and no evidence of loss or theft or destruction shall be
necessary.  This Warrant shall be promptly cancelled by the Company upon the
surrender hereof in connection with any transfer or replacement.  Except as
otherwise provided above, in the case of the loss, theft or destruction of a
Warrant, the Company shall pay all expenses, taxes (not including taxes on or
measured by the net income or capital gains of the Holder) and other charges
payable in connection with any transfer or replacement of this Warrant, other
than stock transfer taxes (if any) payable in connection with a transfer of this
Warrant, which shall be payable by the Holder.  Notwithstanding anything to the
contrary herein, Holder will not transfer this Warrant and the rights hereunder
except in compliance with federal and state securities laws.

SECTION 7.    MERGERS, CONSOLIDATION, SALES.  In the case of any proposed
              -----------------------------
consolidation or merger of the Company with another entity, or the proposed sale
of all or substantially all of its assets to another person or entity, or any
proposed reorganization or reclassification of the capital stock of the Company,
then, as a condition of such consolidation, merger, sale, reorganization or
reclassification, lawful and adequate provision shall be made whereby the Holder
of this Warrant shall thereafter have the right to receive upon the basis and
upon the terms and conditions specified herein, in lieu of the shares of the
Common Stock of the Company immediately theretofore purchasable hereunder, such
shares of stock, securities or assets as may (by virtue of such consolidation,
merger, sale, reorganization or reclassification) be issued or payable with
respect to or in exchange for the number of shares of such Common Stock
purchasable hereunder immediately before such consolidation, merger, sale,
reorganization or reclassification.  In any such case appropriate provision
shall be made with respect to the rights and interests of the

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Holder of this Warrant to the end that the provisions hereof shall thereafter be
applicable as nearly as may be, in relation to any shares of stock, securities
or assets thereafter deliverable upon the exercise of this Warrant.

SECTION 8.    NOTICE OF DISSOLUTION OR LIQUIDATION.  In case of any distribution
              ------------------------------------
of the assets of the Company in dissolution or liquidation (except under
circumstances when the foregoing Section 7 shall be applicable), the Company
shall give notice thereof to the Holder hereof and shall make no distribution to
shareholders until the expiration of twenty (20) days from the date of mailing
of the aforesaid notice and, in any case, the Holder hereof may exercise this
Warrant within twenty (20) days from the date of the giving of such notice, and
all rights herein granted not so exercised within such thirty-day period shall
thereafter become null and void.

SECTION 9.    NOTICE OF EXTRAORDINARY DIVIDENDS.  If the Board of Directors of
              ---------------------------------
the Company shall declare any dividend or other distribution on its Common Stock
except out of earned surplus or by way of a stock dividend payable in shares of
its Common Stock, the Company shall mail notice thereof to the Holder hereof not
less than twenty (20) days prior to the record date fixed for determining
shareholders entitled to participate in such dividend or other distribution, and
the Holder hereof shall not participate in such dividend or other distribution
unless this Warrant is exercised prior to such record date.  The provisions of
this Section 9 shall not apply to distributions made in connection with
transactions covered by Section 7.

SECTION 10.    FRACTIONAL SHARES.  Fractional shares shall not be issued upon
               -----------------
the exercise of this Warrant but in any case where the Holder would, except for
the provisions of this Section 10, be entitled under the terms hereof to receive
a fractional share upon the complete exercise of this Warrant, the Company
shall, upon the exercise of this Warrant for the largest number of whole shares
then called for, pay a sum in cash equal to the excess of the Current Market
Price over the Warrant Price for such fractional share.

SECTION 11.    SPECIAL ARRANGEMENTS OF THE COMPANY.  The Company covenants and
               -----------------------------------
agrees that during the Term of this Warrant, unless otherwise approved by the
Holder of this Warrant:

11.1.  WILL RESERVE SHARES.  The Company will reserve and set apart and have
       -------------------
available for issuance at all times, free from preemptive or other preferential
rights, the number of shares of authorized but unissued Common Stock deliverable
upon the exercise of this Warrant.

11.2.  WILL NOT AMEND CERTIFICATE.  The Company will not amend its Certificate
       --------------------------
of Incorporation to eliminate as an authorized class of capital stock that class
denominated as "Common Stock" on the date hereof.

11.3.  WILL BIND SUCCESSORS.  This Warrant shall be binding upon any corporation
       --------------------
or other person or entity succeeding to the Company by merger, consolidation or
acquisition of all or substantially all of the Company's assets.

SECTION 12.    REPRESENTATIONS AND COVENANTS OF THE HOLDER.  This Warrant has
               -------------------------------------------
been entered into by the Company in reliance upon the following representations
and covenants of the Holder:

    (a) Investment Purpose. The right to acquire Common Stock or the Common
Stock issuable upon exercise of the Holder's rights contained herein will be
acquired for investment

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and not with a view to the sale or distribution of any part thereof, and the
Holder has no present intention of selling or engaging in any public
distribution of the same except pursuant to a registration or exemption.

    (b) Private Issue. The Holder understands (i) that the Common Stock issuable
upon exercise of this Warrant is not registered under the Securities Act or
qualified under applicable state securities laws on the ground that the issuance
contemplated by this Warrant will be exempt from registration and qualifications
requirements, and (ii) that the Company's reliance on such exemption is
predicated on the representations set forth in this Section 12.

    (c) Disposition of Holder's Rights. In no event will the Holder make a
disposition of any of its rights to acquire Common Stock or Common Stock
issuable upon exercise of such rights unless and until (i) it shall have
notified the Company of the proposed disposition, and (ii) if requested by the
Company, it shall have furnished the Company with an opinion of counsel (which
counsel may either be inside or outside counsel to the Warrantholder)
satisfactory to the Company and its counsel to the effect that (a) appropriate
action necessary for compliance with the Securities Act has been taken, or (B)
an exemption from the registration requirements of the Securities Act is
available. Notwithstanding the foregoing, the restrictions imposed upon the
transferability of any of its rights to acquire Common Stock or Common Stock
issuable on the exercise of such rights do not apply to transfers from the
beneficial owner of any of the aforementioned securities to its nominee or from
such nominee to its beneficial owner, and shall terminate as to any particular
share of Common Stock when (1) such security shall have been effectively
registered under the Securities Act and sold by the holder thereof in accordance
with such registration or (2) such security may be sold without registration in
compliance with Rule 144 under the Securities Act, or (3) a letter shall have
been issued to the Holder at the request by the staff of the Securities and
Exchange Commission or a ruling shall have been issued to the Holder at its
request by such Commission stating that no action shall be recommended by such
staff or taken by such commission, as the case may be, if such security is
transferred without registration under the Securities Act in accordance with the
conditions set forth in such letter or ruling and such letter or ruling
specifies that no subsequent restrictions on transfer are required. Whenever the
restrictions imposed hereunder shall terminate as hereinabove provided the
Holder or holder of a share of Common Stock then outstanding as to which such
restrictions have terminated shall be entitled to receive from the Company,
without expense to such holder, one or more new certificates for the Warrant or
for such shares of Common Stock not bearing any restrictive legend.

    (d) Financial Risk. The Holder has such knowledge and experience in
financial and business matters and in investing in companies similar to the
Company as to be capable of evaluating the merits and risk of its investment,
and has the ability to bear the economic risks of its investment.

    (e) Authority. The Holder has full power and authority to enter into and to
perform this Agreement in accordance with its terms. The Holder has not been
organized, reorganized or recapitalized specifically for the purpose of
investing in the Company.

    (f) Risk of No Registration. The Holder understands that if the Company does
not register with the Securities and Exchange Commission pursuant to Section 12
of the Securities

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Act, or file reports pursuant to Section 15(d) of the Securities Exchange Act of
1934, or if a registration statement covering the securities under the
Securities Act is not in effect when it desires to sell (i) the rights to
purchase Common Stock pursuant to this Warrant, or (ii) the Common Stock
issuable upon exercise of the right to purchase, it may be required to hold such
securities for an indefinite period. The Holder also understands that any sale
of its rights to purchase Common Stock or Common Stock which may be made by it
in reliance upon Rule 144 under the Securities Act may be made only in
accordance with the terms and conditions of that Rule.

SECTION 13.    NOTICES.  Any notice or other document required or permitted to
               -------
be given or delivered to the Holder shall be delivered at, or sent by certified
or registered mail to, the Holder at Transamerica Technology Finance Division,
76 Batterson Park Road, Farmington, Connecticut 06032, Attention:  Assistant
Vice President, Lease Administration, with a copy to the Lender at Riverway II,
West Office Tower, 9399 West Higgins Road, Rosemont, Illinois 60018, Attention:
Legal Department or to such other address as shall have been furnished to the
Company in writing by the Holder.  Any notice or other document required or
permitted to be given or delivered to the Company shall be delivered at, or sent
by certified or registered mail to, the Company at 45 Moulton Street, Cambridge,
Massachusetts 02138, Attention:  Vice President, Finance with a copy to Hale and
Dorr LLP, 60 State Street, Boston, Massachusetts 02109, Attention:  Mark G.
Borden, Esq. or to such other address as shall have been furnished in writing to
the Holder by the Company.  Any notice so addressed and mailed by registered or
certified mail shall be deemed to be given when so mailed.  Any notice so
addressed and otherwise delivered shall be deemed to be given when actually
received by the addressee.

SECTION 14.    NO RIGHTS AS STOCKHOLDER; LIMITATION OF LIABILITY.  This Warrant
               -------------------------------------------------
shall not entitle the Holder to any of the rights of a shareholder of the
Company except upon exercise in accordance with the terms hereof.  No provision
hereof, in the absence of affirmative action by the Holder to purchase shares of
Common Stock, and no mere enumeration herein of the rights or privileges of the
Holder, shall give rise to any liability of the Holder for the Warrant Price
hereunder or as a shareholder of the Company, whether such liability is asserted
by the Company or by creditors of the Company.

SECTION 15.    LAW GOVERNING.  THE VALIDITY, INTERPRETATION, AND ENFORCEMENT OF
               -------------
THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF ILLINOIS WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES
THEREOF.

SECTION 16.    MISCELLANEOUS.  This Warrant and any provision hereof may be
               -------------
changed, waived, discharged or terminated only by an instrument in writing
signed by the Company and the Holder (or any respective successor in interest
thereof).  The headings in this Warrant are for purposes of reference only and
shall not affect the meaning or construction of any of the provisions hereof.

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<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer this 21 day of November, 1997.

                                    ONTOGENY, INC.
[CORPORATE SEAL]
                                    By:    /s/ George Eldridge
                                           -------------------

                                    Title: Vice President
                                           -------------------

TRANSAMERICA BUSINESS
CREDIT CORPORATION

By: ____________________
Name:
Title:

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                           FORM OF NOTICE OF EXERCISE

                [TO BE SIGNED ONLY UPON EXERCISE OF THE WARRANT]

                    TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO EXERCISE THE WITHIN WARRANT

     The undersigned hereby exercises the right to purchase _________ shares of
Common Stock which the undersigned is entitled to purchase by the terms of the
within Warrant according to the conditions thereof, and herewith

[check one]

                  [_]  makes payment of $________ therefor; or

                  [_]  directs the Company to issue _____ shares, and to
                       withhold _____ shares in lieu of payment of the Warrant
                       Price, as described in Section 2.1 of the Warrant.

All shares to be issued pursuant hereto shall be issued in the name of and the
initial address of such person to be entered on the books of the Company shall
be:

     The shares are to be issued in certificates of the following denominations:

     The Holder confirms and acknowledges the investment representations made in
Section 12 of the Warrant.

                                    ___________________________________
                                    [Type Name of Holder]

                                    By: _______________________________

                                    Title: ____________________________

Dated: _________________________

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                               FORM OF ASSIGNMENT
                                    (ENTIRE)

              [TO BE SIGNED ONLY UPON TRANSFER OF ENTIRE WARRANT]

                    TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO TRANSFER THE WITHIN WARRANT

     FOR VALUE RECEIVED _________________________ hereby sells, assigns and
transfers unto _______________________ all rights of the undersigned under and
pursuant to the within Warrant, and the undersigned does hereby irrevocably
constitute and appoint _____________________ Attorney to transfer the said
Warrant on the books of the Company, with full power of substitution.

                                    _________________________________
                                    [Type Name of Holder]

                                    By: _____________________________

                                    Title: __________________________

Dated: ________________________

NOTICE

     The signature to the foregoing Assignment must correspond to the name as
written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

Acknowledged and accepted:

______________________________
[Type name of assignee]

                                     - 12 -
<PAGE>

                               FORM OF ASSIGNMENT
                                   (PARTIAL)

              [TO BE SIGNED ONLY UPON PARTIAL TRANSFER OF WARRANT]

                    TO BE EXECUTED BY THE REGISTERED HOLDER
                         TO TRANSFER THE WITHIN WARRANT

     FOR VALUE RECEIVED ________________________ hereby sells, assigns and
transfers unto ____________________ (i) the rights of the undersigned to
purchase _____ shares of Common Stock under and pursuant to the within Warrant,
and (ii) on a non-exclusive basis, all other rights of the undersigned under and
pursuant to the within Warrant, it being understood that the undersigned shall
retain, severally (and not jointly) with the transferee(s) named herein, all
rights assigned on such non-exclusive basis.  The undersigned does hereby
irrevocably constitute and appoint __________________ Attorney to transfer the
said Warrant on the books of the Company, with full power of substitution.

                                    _____________________________________
                                    [Type Name of Holder]

                                    By: _________________________________

                                    Title: ______________________________

Dated: _________________________

NOTICE

     The signature to the foregoing Assignment must correspond to the name as
written upon the face of the within Warrant in every particular, without
alteration or enlargement or any change whatsoever.

Acknowledged and accepted:

___________________________________
[Type name of assignee]

                                     - 13 -<PAGE>

                                                                   Exhibit 10.62

     Confidential Materials omitted and filed separately with Securities and
                Exchange Commission. Asterisks denote omissions.

1/13/99

                   RESEARCH COLLABORATION AND OPTION AGREEMENT

      THIS AGREEMENT, effective as of the 13th day of January, 1999 (the
"Effective Date") between Ontogeny, Inc., a Delaware corporation having a place
of business at 45 Moulton Street, Cambridge, MA 02138 ("Ontogeny") and Becton,
Dickinson and Company, a New Jersey corporation having a place of business at
One Becton Drive, Franklin Lakes, NJ 07417 ("BD").

                                  INTRODUCTION

      WHEREAS, Ontogeny is in the business of conducting research in the field
of developmental biology;

      WHEREAS, BD has expertise in the discovery, development, manufacture and
commercialization of products, services, and devices in the medical technology
industry for application in research, diagnostic and patient management;

      WHEREAS, Ontogeny will undertake a research program, the goal of which is
to regenerate islet cells for purposes of delivery to an individual for the
treatment of diabetes. BD desires to obtain from Ontogeny an option to develop
and commercialize products that incorporate the ex vivo delivery of islet cells
that are the subject of such research program as well as a right of first offer
to develop and commercialize certain diagnostic and research products ;

      WHEREAS, the parties have therefore agreed on a research program and
commercialization options under certain terms and conditions;

      NOW, THEREFORE, in consideration of the mutual covenants and promises
contained in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Ontogeny and BD agree
as follows:

                             Article 1. Definitions

      As used in this Agreement, the following terms, whether used in the
singular or plural, shall have the following meanings:

      1.1 "Affiliate" shall mean any corporation, company, partnership, joint
venture, firm and/or entity, which controls, is controlled by or is under common
control with a Party. For purposes of this Section 1.1, `control' shall mean (a)
in the case of corporate entities, direct or indirect ownership of at least
fifty (50%) of the stock or shares entitled to vote for the election of
directors, and (b) in the case of non-corporate entities, direct or indirect
ownership of at least fifty percent (50%) of the equity interest with the power
to direct the management and policies of such non-corporate entities.

                                     - 1 -
<PAGE>

      1.2 "BD Collaboration Technology" shall mean any data, substances,
processes, materials, formulas or information which are developed or created
solely by BD or its Affiliates or jointly by BD or its Affiliates and Ontogeny
or its Affiliates and (i) which incorporate or are based on or derived by use of
Ontogeny Technology, or (ii) which are conceived or reduced to practice during
the course of and in accordance with the Research Program provided that BD or an
Affiliate of BD has been requested to do so by the JRC or Ontogeny as part of
the Research Plan in writing to Noel Warner, Vice President Scientific Affairs,
BDIS, 2350 Qume Drive, San Jose, CA 95131 with a copy to Susan Capello,
Intellectual Property Counsel 1 Becton Drive, Franklin Lakes, NJ 07417 and BD
confirms this request in writing. BD shall respond to such request in writing
within 30 days.

      1.3 "BD SPONSORED FTE" means a full time equivalent scientific person year
carried out by a BD employee or contractor, having a Ph.D. degree or equivalent
doctoral level research laboratory experience.

      1.4 "Field" shall mean ex vivo delivery of ex vivo regenerated human beta
islet cells to an individual for the treatment of diabetes.

      1.5 "Ontogeny Intellectual Property Rights" means (a) the Ontogeny Patent
Rights; and (b) any other intellectual property rights in and to the Ontogeny
Technology, which Ontogeny or an Affiliate of Ontogeny owns or otherwise has the
right to grant licenses under.

      1.6 "Ontogeny Patent Rights" means any patent or patent application or
equivalent thereof, anywhere in the world, having one or more claims covering
Ontogeny Technology, which Ontogeny or an Affiliate of Ontogeny owns or
otherwise has the right to grant licenses under.

      1.7 "Ontogeny Technology" means any data, substances, processes,
materials, formulas or information (unrelated to the hedgehog proteins), which
are useful in the Field and reasonably necessary for the development of Product
which Ontogeny or an Affiliate of Ontogeny owns or otherwise has the right to
grant licenses under as of the Effective Date or during the Research Term if
arising from research conducted under the Research Program.

      1.8 "Party" means Ontogeny or BD; "Parties" means Ontogeny and BD.

      1.9 "Product" means a product that comprises human beta islet cells for
use in the Field.

      1.10 "Research Program" means research performed by or on behalf of
Ontogeny during the Research Term in accordance with the Research Workplan.

      1.11 "Joint Research Committee" or "JRC" shall mean the research committee
composed of representatives of Ontogeny and BD described in Article 2 hereof.

      1.12 "Research Term" shall mean, unless earlier terminated, the two-year
period beginning on the Effective Date and any extension thereof agreed to by
the parties.

                                     - 2 -
<PAGE>

      1.13 "Research Workplan" means the Workplan, attached as Schedule A, which
describes the research activities to be conducted in the Field in the course of
the Research Program during the Research Term.

      1.14 "Working Committee" shall mean a committee of an equal number of
persons from Ontogeny and BD (maximum number of three (3) from each Party) who
are responsible for monitoring the day to day progress of the Research Program.

                          Article 2. The Collaboration

      2.1 The Research Program shall be conducted by Ontogeny in accordance with
the provisions of the Research Workplan. Ontogeny shall work exclusively with BD
in the Field during the term of the Agreement with the exception of third party
contractors. In conducting the Research Program, Ontogeny shall have and
maintain sufficient flexibility to shift effort and emphasis within the overall
scope of the Research Workplan in a manner that will best result in the
development of Product, providing that any substantial shift in effort or
emphasis is agreed to by the Working Committee or the JRC.

      2.2 Ontogeny and BD will form a Joint Research Committee (the "JRC") to be
in existence during the Research Term and to be responsible for overseeing the
progress of the Research Program. The JRC will have an equal number of members
(maximum eight (8) members in total) from Ontogeny and BD. Ontogeny and BD will
also form a Working Committee, which shall meet at mutually agreeable times or
via conference call every three weeks and then meet with the JRC during its
regular meetings to report the progress of the Research Program to the JRC. Each
Party shall make its initial designation of its representatives on the JRC and
the Working Committee not later than thirty (30) days after the Effective Date.
The Chairperson of the Joint Research Committee shall be chosen from the
Ontogeny representatives on the JRC and shall be reasonably acceptable to BD.

      The objective of the JRC shall be to reach agreement on all matters by
consensus within the scope of the Research Workplan, including any substantial
changes thereto. However, decisions of the JRC shall be decided by majority vote
of the JRC provided that such majority is comprised of at least one vote cast by
a representative from Ontogeny and one cast by a representative from BD. The JRC
shall also be responsible, if necessary, for modifying the short-term goals of
the Research Program, provided, however, that no such modification shall (i)
alter the terms of this Agreement or (ii) materially increase the
responsibilities of, or the level of expense to be incurred by either Party
without the prior approval of such Party. If the JRC cannot reach agreement on
any matter within its purview, such matter shall be referred to the CEO of
Ontogeny or his designee and the CTO of BD or his designee for resolution. If
the CEO of Ontogeny or his designee and the CTO of BD or his designee are unable
to reach agreement on any issue regarding the Research Program; then the CEO of
Ontogeny shall have the final authority to decide upon such matter unless it
entails a substantial change to the Research Workplan. If the issue does entail
a substantial change to the Research Workplan and such issue has not been
resolved by the Working Committee, the JRC or the CTO of BD and the CEO of
Ontogeny, as described above, then either party shall have the right to
terminate this Agreement under Section 8.3 hereof.

                                     - 3 -
<PAGE>

      The JRC shall meet at a mutually agreeable place no less frequently than
once each calendar quarter and shall meet at such other times as deemed
appropriate by the JRC. Each Party may change any one or more of its
representatives on the JRC and/or the Working Committee at any time upon notice
to the other Party. Each Party shall use reasonable efforts to cause its
representatives to attend the meetings of the JRC and the Working Committee.
Ontogeny shall provide to the JRC quarterly written summaries of the research
activities conducted under the Research Program and the results thereof.

      2.3 Ontogeny shall use diligent efforts to perform the activities set
forth in the Research Workplan.

      2.4 BD shall provide one (1) BD SPONSORED FTE, acceptable to Ontogeny to
work on-site at Ontogeny during the Research Term. Such BD SPONSORED FTE shall
work under the direction of Ontogeny managers and shall sign an invention and
nondisclosure agreement set forth in Exhibit A whereby he/she shall agree to not
disclose to a third party or BD or use except for purposes of the Research
Program, confidential or proprietary information of Ontogeny and whereby he/she
assigns to Ontogeny all his/her rights to any data, substances, processes,
materials, formulas, information or ideas which are developed or created by such
BD SPONSORED FTE during or as a result of the BD SPONSORED FTE's tenure at
Ontogeny. Such BD SPONSORED FTE will have the right to practice the Ontogeny
Technology and the BD Collaboration Technology in the Field for the purpose of
conducting research under the Research Program during the Research Term. All of
BD's interest in BD Collaboration Technology shall be assigned to Ontogeny. BD
shall take all steps necessary to have all of its right, title and interest in
the BD Collaboration Technology assigned to Ontogeny and to have any patent
applications filed or patents issued thereon by BD assigned to Ontogeny.

      2.5 BD shall have a right of first offer effective as of the Effective
Date, to enter into a license agreement with Ontogeny to obtain the right to
commercialize any jointly invented BD Collaboration Technology for research
reagents and diagnostic uses in the field of diabetes and BD solely invented BD
Collaboration Technology for research reagents and diagnostic uses in all fields
as follows: Ontogeny shall promptly notify BD in writing with respect to any
inventions or invention disclosures of which it becomes aware with respect to BD
Collaboration Technology. BD shall have 30 days from the receipt of such notice
to provide written confirmation to Ontogeny of BD's interest in entering into a
license agreement with respect to such inventions. If BD indicates in writing
that it does wish to enter into such an agreement during said 30 day period and
if the JRC agrees that the specific invention should be commercialized at the
current time, then the Parties will negotiate in good faith the terms of such a
license agreement for three months from the date that BD so indicated in writing
its desire to enter into such an agreement (the "First Offer Negotiation
Period"). If the Parties fail to enter into such an agreement during the First
Offer Negotiation Period, then Ontogeny shall be free to commercialize itself or
license BD Collaboration Technology to a third party for research reagents and
diagnostic uses and to pursue the development of such research reagents and
diagnostic uses by itself or with one or more third parties.

                                     - 4 -
<PAGE>

    Confidential Materials omitted and filed with the Securities and Exchange
                     Commission. Asterisks denote omissions.

                            Article 3. Option Rights

      3.1 Subject to the fulfillment by BD of its obligations under this
Agreement, Ontogeny, hereby grants to BD an option to initiate a development
program with Ontogeny to develop and commercialize Product, including the right
to elect an exclusive, worldwide license to Ontogeny's and Ontogeny's
Affiliates's rights in Ontogeny Intellectual Property Rights for use in the
Field, (the "Option" in accordance with the following terms. Such Option is
exercisable by BD in writing on or before the earlier of the end of the Research
Term or within thirty (30) days after the successful completion of the Objective
2 ("Objective 2") set forth in the Research Workplan. If BD exercises such
option, the Parties will exclusively negotiate in good faith the terms of a
development/commercialization/license agreement for three months from the
exercise date of the Option (the "Negotiation Period"), unless extended by
mutual written agreement of the Parties. If the Parties fail to enter into such
an agreement during the Negotiation Period, then Ontogeny shall be free to
license Ontogeny Intellectual Property and BD Collaboration Technology and to
pursue the development of Product by itself or with one or more third parties;
provided, however, that for a period of [**] after the Negotiation Period,
Ontogeny shall not offer such development/commercialization/license agreements
to third parties with terms and conditions which are more favorable to the third
party, taken as a whole, than those terms and conditions last offered by BD or
by Ontogeny, without first offering, such terms and conditions to BD in writing.

                         Article 4. Payment Obligations

      4.1 In consideration of the rights granted to BD under this Agreement, BD
shall lend to Ontogeny the amount of [**], which loan shall be evidenced by a
[**] convertible subordinated Note issued by Ontogeny in favor of BD (the
"Note") pursuant to a note purchase agreement dated as of the Effective Date
(the "Note Purchase Agreement"). The Note shall be convertible into [**] shares
of Series G Convertible Preferred Stock ("Series G Stock") of Ontogeny, in
accordance with the Note Purchase Agreement and the Note.

      4.2 Within thirty (30) days following the earlier of the end of the
Research Term or the successful completion of the Objective 2, BD shall purchase
from Ontogeny [**] shares of convertible preferred stock of Ontogeny at a price
per share equal to [**] and having the same rights as the Series G Stock with
respect to voting rights, liquidation and dividends, pursuant to a stock
purchase agreement which incorporates the substantive terms of the Note Purchase
Agreement attached hereto as Schedule B with the exception that the
anti-dilution protection provided shall be similar to that which Ontogeny is
then providing to similar corporate research partners. If a BD accounting issue
arises in relation to this purchase, the parties shall use reasonable efforts to
execute an acceptable note and note purchase agreement to accomplish such
purchase.

      4.3 Within thirty (30) days after the Effective Date, Ontogeny shall
purchase from BD a complete, new FACS system to facilitate the research in the
Research Program at a cost of at least [**] and shall not be higher than the
market price of such a system and subject to the following: Such FACS system
shall meet specifications, as will be specified in Schedule C to this Agreement
which shall be attached hereto and agreed to by the Parties in writing and there
will be a two year warranty provided by BD covering 100% of service and parts.

                                     - 5 -
<PAGE>

                       Article 5. Negation of Warranties

      5.1 NOTHING IN THIS AGREEMENT IS OR SHALL BE CONSTRUED AS

            A) A WARRANTY OR REPRESENTATION BY ONTOGENY AS TO THE VALIDITY OR
SCOPE OF ANY ONTOGENY INTELLECTUAL PROPERTY RIGHTS;

            B) A WARRANTY BY ONTOGENY AS TO THE OUTCOME OF RESULTS CONDUCTED
UNDER THIS AGREEMENT;

            C) A WARRANTY, EXPRESS OR IMPLIED, AS TO ANY INVENTION OR PRODUCT
CONCEIVED, DISCOVERED OR DEVELOPED UNDER THIS AGREEMENT; OR THE MERCHANTABILITY
OR FITNESS FOR A PARTICULAR PURPOSE OF THE RESEARCH OR ANY SUCH INVENTION OR
PRODUCT.

                               Article 6. Patents

      6.1 Ontogeny shall have the right to file, prosecute and maintain patent
applications worldwide for Ontogeny Intellectual Property and BD Collaboration
Technology at Ontogeny's expense in Ontogeny's sole name. During the Research
term, Ontogeny shall provide to BD copies of all substantive documents
associated with the prosecution of such patent applications. BD shall have the
right but not the obligation to review and provide comments and suggested
amendments to the claims to Ontogeny. Each Party shall sign or use its best
efforts to have signed all legal documents necessary to file and prosecute
patent application or to obtain or maintain patents.

                           Article 7. Confidentiality

      7.1 (a) Disclosure or delivery of confidential and proprietary information
or material by any Party to the other Party may be made in writing, or orally.
Such confidential information or material provided by one Party to the other
Party will be safeguarded by the recipient and will not be disclosed to third
parties and will be made available only to the receiving Party's or its
Affiliate's employees or agents (including attorneys) who need to know such
information or have such material for purposes permitted under this Agreement
and who have obligations of confidentiality and non-use similar to those of this
Agreement. Each Party shall hold as confidential such confidential information
and material in the same manner and with the same protection as such party
maintains for its own confidential information and materials and agrees to use
such confidential information and materials only for the purpose of this
Agreement and as permitted by this Agreement.

            (b) The mutual obligations of confidentiality under this Section
will not apply to any information to the extent that such information:

                  (i) is or hereafter becomes part of the public domain through
no action of recipient of the information which constitutes a default under this
Agreement;

                  (ii) was already known to the recipient as evidenced by prior
written documents in its possession which were not furnished by the other party;

                  (iii) is disclosed to the recipient by a third party who is
not in default of any confidentiality obligation to the disclosing Party
hereunder;

                                     - 6 -
<PAGE>

                  (iv) is required by law or bona fide legal process to be
disclosed, provided that the disclosing Party takes all reasonable steps to
restrict and maintain confidentiality of such disclosure and provides reasonable
notice to the non-disclosing Party; or

                  (v) is developed by the recipient independent of the
confidential information received from the disclosing party, as evidenced by
written documentation.

            (c) BD Collaboration Technology shall be considered to be
confidential information of Ontogeny under this Article 7 and shall not be
disclosed by BD to a third party, or used by BD except for the purposes of this
Agreement and as permitted by this Agreement.

      7.2 BD and Ontogeny each agrees not to disclose any terms or conditions of
this Agreement to any third party without the prior consent of the other Party,
which shall not be unreasonably withheld, except as required by written
applicable law, rule or regulation; or in connection with a financing or
offering statement or memorandum, with the understanding that unless required by
law, the financial terms will be disclosed in confidence; or to a potential
assignee or transferee of the business of a party to which this Agreement
relates; or to a licensor of a Party for the purpose of granting a sublicense to
the other Party. In the event of a disclosure required under this Article, the
disclosing Party shall nonetheless provide the non-disclosing Party with notice
of such disclosure prior to disclosure, and will, to the extent reasonably
possible, provide the non-disclosing Party with an opportunity to correct same.
A Party shall not be required to provide the other Party with a disclosure,
which has been previously provided to a Party provided that it is disclosed in a
similar fashion and context as it was previously disclosed. Neither BD or
Ontogeny shall issue a press release without prior written approval of the other
party which shall not be unreasonably withheld and which shall be provided in a
timely fashion.

                         Article 8. Term and Termination

      8.1 Except as otherwise specifically provided herein and unless sooner
terminated pursuant to Article 8 of this Agreement, this Agreement shall remain
in full force and effect until the end of the Negotiation Period or at such time
that the Option is not exercised and has expired.

      8.2 This Agreement may be terminated due to insufficient progress and
unsatisfactory results in the Research Program upon majority vote of the JRC by
providing each Party three (3) months written notice.

      8.3 Either Party may terminate this Agreement upon failure to reach
agreement in good faith under Section 2.2 with regard to a proposed substantial
change to the Research Workplan upon three (3) months written notice.

      8.4 This Agreement shall terminate if all or substantially all of the
business of one Party to which this Agreement relates is acquired by another
entity through merger, sale of assets or otherwise and the other Party withholds
consent to an assignment of the Agreement under Section 9.9 below.

      8.5 If either Party materially breaches this Agreement, the other Party
may terminate this Agreement by written notice to the breaching party specifying
the breach and this

                                     - 7 -
<PAGE>

Agreement shall be terminated thirty (30) business days after such written
notice, unless prior to the expiration of such period such breach is cured.

      8.6 Notwithstanding any termination of this Agreement, (a) neither Party
shall be released of any obligations incurred prior to such termination and (b)
the provisions of Sections 2.4, 4.3, 5.1, 6.1, 7.1 and 7.2 and any other
provision which by its nature is intended to survive, shall survive any
termination of this Agreement. Upon the termination of this Agreement unless BD
exercises its Option and executes an agreement with Ontogeny pursuant to the
provisions of Section 3.1, each Party shall promptly return to the other Party
all written Confidential Information and all copies thereof to such Party.

                            Article 9. Miscellaneous

      9.1 This Agreement shall be governed by and interpreted in accordance with
the laws of the Commonwealth of Massachusetts.

      9.2 Dispute Resolution.

            (a) In the event there is a disagreement between the Parties
relating to this Agreement, the Parties shall attempt in good faith to resolve
any dispute arising out of or relating to this Agreement promptly by
negotiations between executives of both Parties who have authority to settle the
controversy. Either Party may give the other Party written notice of any dispute
hereunder not resolved in the normal course of business. Within twenty (20) days
after delivery of said notice, executives of each of the Parties shall discuss
by telephone or meet at a mutually acceptable time and place, and thereafter as
often as they reasonably deem necessary, to exchange relevant information and to
attempt to resolve the dispute. If the matter has not been resolved within sixty
(60) days of the disputing Party's notice, or if the Parties fail to discuss or
meet within twenty (20) days, either Party may initiate mediation of the
controversy or claim under the then current Center for Public Resources
Procedure for Mediation of Business Disputes, with the understanding that the
mediator shall have no authority to amend this Agreement or the Research
Workplan.

            (b) If a negotiator intends to be accompanied at a telephone
conference or a meeting by an attorney, the other negotiators shall be given at
least three (3) working days' notice of such intention and may also be
accompanied by an attorney. All negotiations pursuant to this clause are
confidential and shall be treated as compromise and settlement negotiations for
purposes of the Federal Rules of Evidence and any state rules of evidence.

            (c) If the dispute is not resolved within sixty (60) days of its
submission to a mediator in accordance with Section 9.2 (a), either Party may
submit the dispute to binding arbitration. The arbitration shall be conducted by
three (3) arbitrators, one to be appointed by Ontogeny, one to be appointed by
BD and a third being nominated by the two arbitrators so selected or, if they
cannot agree on a third arbitrator, by the President of the American Arbitration
Association. The arbitration shall be conducted in accordance with the
commercial rules of the American Arbitration Association, which shall administer
the arbitration. The arbitration, including the rendering of the award, shall
take place in Boston, Massachusetts, and shall be final and binding upon the
Parties hereto, with the understanding that the arbitrators shall

                                     - 8 -
<PAGE>

have no authority to amend this Agreement or the Research Workplan and the
expenses of the arbitration shall be paid as the arbitrators determine.

      9.3 The waiver by a Party of a breach or a default of any provision of
this Agreement by the other Party shall not be construed as a waiver of any
succeeding breach of the same or any other provision, nor shall any delay or
omission on the part of a Party to exercise or avail itself of any right, power
or privilege that it has or may have hereunder operate as a waiver of any right,
power or privilege by such Party.

      9.4 All notices, instructions and other communications hereunder or in
connection herewith shall be in writing and shall be (a) delivered personally,
(b) sent by registered or certified mail, return receipt requested, postage
prepaid, (c) sent via a reputable nationwide overnight courier service, or (d)
sent by facsimile transmission, in each case to an address set forth below. Any
such notice, instruction or communication shall be deemed to have been delivered
upon receipt if delivered by hand, three business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, one
business day after it is sent via a reputable nationwide overnight courier
service, or when transmitted with electronic confirmation of receipt, if
transmitted by facsimile (if such transmission is on a business day; otherwise,
on the next business day following such transmission).

      Notices to Ontogeny           Ontogeny, Inc.
      shall be addressed to:        45 Moulton Street
                                    Cambridge, MA 02138
                                    Attention: President and
                                    Chief Executive Officer

      Notices to Becton Dickinson   Becton, Dickinson and Company
      shall be addressed to:        One Becton Drive
                                    Franklin Lakes, NJ 07417
                                    Attention: Chief Technology Officer

      with a copy to:               Attention: Chief Intellectual Property and
                                    Licensing Counsel

Either Party may change its address by giving notice to the other Party in the
manner herein provided.

      9.5 Nothing herein shall be deemed to constitute Ontogeny, on the one
hand, or BD, on the other hand, as the agent or representative of the other, or
as joint venturers or partners for any purpose.

      9.6 This Agreement, the Note Purchase Agreement and the Schedules hereto
(which Schedules are deemed to be a part of this Agreement for all purposes)
contain the full understanding of the Parties with respect to the subject matter
hereof and supersede all prior

                                     - 9 -
<PAGE>

understandings and writings relating thereto. No waiver, alteration or
modification of any of the provisions hereof shall be binding unless made in
writing and signed by the Parties.

      9.7 The headings contained in this Agreement are for convenience of
reference only and shall not be considered in construing this Agreement.

      9.8 In the event that any provision of this Agreement is held by a court
of competent jurisdiction to be unenforceable because it is invalid or in
conflict with any law of any relevant jurisdiction, the validity of the
remaining provisions shall not be affected, and the Parties shall negotiate a
substitute provision that, to the extent possible, accomplishes the original
business purpose.

      9.9 Neither this Agreement nor any of the rights or obligations hereunder
may be assigned by either Party with the prior written consent of the other
Party, which consent shall not be unreasonably withheld.

      9.10 This Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their successors and permitted assigns.

      9.11 This Agreement may be executed in two (2) counterparts, each of which
shall be deemed an original but all of such together shall constitute one and
the same instrument.

      9.12 Neither Party to this Agreement shall be responsible to the other
Party for nonperformance or delay in performance of the terms or conditions of
this Agreement due to acts of God, earthquakes, acts of governments, war, riots,
strikes, accidents in transportation, or other similar causes beyond the
reasonable control of such Party.

      9.13 BD understands that it receives no right to a license, implied or
otherwise, under any patent or other right now or hereafter owned or controlled
by Ontogeny.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in their names by their properly and duly authorized officers or
representatives as of the date first above written.

Ontogeny, Inc.                            Becton, Dickinson and Company

/s/ Doros Platika                         /s/ Deborah J. Neff
---------------------------------         --------------------------------------
By:    Doros Platika                      By:  Deborah J. Neff
                                             -----------------------------------
Title: President and CEO                  Title: President-BOIS
                                                --------------------------------
Date:  1/13/99                            Date: 1/13/99
     -------------------------------           ---------------------------------

                                     - 10 -
<PAGE>

                                    Exhibit A

Ontogeny, Inc.
--------------------------------------------------------------------------------

                          INVENTION, NON-DISCLOSURE AND
                            NON-COMPETITION AGREEMENT

      This Agreement is made this _____ day of ___________, 19___ between
Ontogeny, Inc., a Delaware corporation (hereinafter referred to as the
"Company"), and _________________(the "BD Sponsored FTE").

      In consideration of the employment to work on-site at company in
connection with the Research Collaboration and Option Agreement between BD and
Company ("BD Agreement") or the continued employment of the BD Sponsored FTE by
the Becton Dickinson and Company ("BD"), the Company and the BD Sponsored FTE
agree as follows:

1.    Proprietary Information

      (a) The BD Sponsored FTE agrees that all information, whether or not in
      writing, of a private, secret or confidential nature concerning the
      Company's business, business relationships or financial affairs
      (collectively, "Proprietary Information") is and shall be the exclusive
      property of the Company. By way of illustration, but not limitation,
      Proprietary Information may include inventions, products, processes,
      methods, techniques, formulas, compositions, compounds, projects,
      developments, plan, research data, clinical data, financial data,
      personnel data, computer programs, customer and supplier lists, and
      contacts at or knowledge of customers or prospective customers of the
      Company. The BD Sponsored FTE will not disclose any Proprietary
      Information to any person or entity other than employees of the Company or
      use the same for any purposes (other than in the performance of his/her
      duties under the BD Agreement) without written approval by an officer of
      the Company, either during or after his/her employment with the Company,
      unless and until such Proprietary Information has become public knowledge
      without fault by the BD Sponsored FTE.

      (b) The BD Sponsored FIFE agrees that all files, letters, memoranda,
      reports, records, data, sketches, drawings, laboratory notebooks, program
      listings, or other written, photographic, or other tangible material
      containing Proprietary Information, whether created by the BD Sponsored
      FTE or others, which shall come into his/her custody or possession, shall
      be and are the exclusive property of the Company to be used by the BD
      Sponsored FTE only in the performance of his/her duties for the Company
      under the BD Agreement. All such materials or copies thereof and all
      tangible property of the Company in the custody or possession of the BD
      Sponsored FTE shall be delivered to the Company, upon the earlier of (i) a
      request by the Company or (ii) termination of his/her employment as a BD
      sponsored FTE under the BD Agreement. After such delivery, the BD
      Sponsored FTE shall not retain any such materials or copies thereof or any
      such tangible property.

      (c) The BD Sponsored FTE agrees that his/her obligation not to disclose or
      to use information and materials of the types set forth in paragraphs (a)
      and (b) above, and his/her obligation to return materials and tangible
      property, set forth in paragraph (b) above, also extends to such types of
      information, materials and tangible property of customers of the Company
      or suppliers to the Company or other third parties who may have disclosed
      or entrusted the same to the Company or the BD Sponsored FTE.

                                     - 11 -
<PAGE>

2.    Developments

      (a) The BD Sponsored FTE will make full and prompt disclosure to the
      Company of all inventions, improvements, discoveries, methods,
      developments, software, and works of authorship, whether patentable or
      not, which are created, made, conceived, or reduced to practice by him/her
      or under his/her direction or jointly with others during his/her tenure at
      the Company whether or not during normal working hours or on the premises
      of the Company (all of which are collectively referred to in this
      Agreement as "Developments").

      (b) The BD Sponsored FTE agrees to assign and does hereby assign to the
      Company (or any person or entity designated by the Company) all his/her
      right, title and interest in and to all Developments and all related
      patents, patent applications, copyrights and copyright applications.
      However, this paragraph 2(b) shall not apply to Developments which do not
      relate to the present or planned business or research and development of
      the Company and which are made and conceived by the BD Sponsored FTE not
      during normal working hours, not on the Company's premises and not using
      the Company's tools, devices, equipment or Proprietary Information.

      (c) The BD Sponsored FTE agrees to cooperate fully with the Company, both
      during, and after his/her tenure with the Company, with respect to the
      procurement, maintenance and enforcement of copyrights, patents and other
      intellectual property rights (both in the United States and foreign
      countries) relating to Developments. The BD Sponsored FTE shall sign all
      papers, including, without limitation, copyright applications, patent
      applications, declarations, oaths, formal assignments, assignments of
      priority rights, and powers of attorney, which the Company may deem
      necessary or desirable in order to protect its rights and interest in any
      Development. The BD Sponsored FTE further agrees that if the Company is
      unable, after reasonable effort, to secure the signature of the BD
      Sponsored FTE on any such papers, any executive officer of the Company
      shall be entitled to execute any such papers as the agent and the
      attorney-in-fact of the BD Sponsored FTE, and the BD Sponsored FTE hereby
      irrevocably designates and appoints each executive officer of the Company
      as his/her agent and attorney-in-fact to execute any such papers on
      his/her behalf, and to take any and all actions as the Company may deem
      necessary or desirable in order to protect its rights and interests in any
      Development, under the conditions described in this sentence.

3.    Non-competition

      (a) During the BD Sponsored FTE's tenure at the Company and for a period
      of one year after the termination or cessation of such tenure for any
      reason, the BD Sponsored FTE will not directly or indirectly:

            (i) as an individual proprietor, partner, stockholder, officer,
            employee, director, joint venturer, investor, lender, consultant, or
            in any other capacity whatsoever (other than as the holder of not
            more than one percent of the combined voting power of the
            outstanding stock of a publicly held company), engage in the
            business of developing, designing, producing, marketing, selling or
            rendering (or assisting any other person in developing, designing,
            producing, marketing, selling or rendering) products or services
            competitive with those being developed, designed, produced,
            marketed, sold or rendered by the Company while the BD Sponsored FTE
            was working at the Company with the exception of working for BD as
            part of any Ontogeny/BD Collaboration; or

            (ii) solicit, divert or take away, or attempt to divert or to take
            away, the business or patronage of any of the clients, customers

                                     - 12 -
<PAGE>

            or accounts, or prospective clients, customers or accounts, of the
            Company which were contacted, solicited or served by the BD
            Sponsored FTE while at the Company.

      (b) If the BD Sponsored FTE violates the provisions of Section 3(a), the
      BD Sponsored FTE shall continue to be bound by the restrictions set forth
      in Section 3(a) until a period of one year has expired without any
      violation of such provisions.

4.    Non-Solicitation

      (a) During the BD Sponsored FTE's tenure at the Company and for a period
      of two years after the termination or cessation of such tenure for any
      reason, the BD Sponsored FTE will not directly or indirectly recruit,
      solicit or hire any employee of the Company, or induce or attempt to
      induce any employee of the Company to terminate his/her employment with,
      or otherwise cease his/her relationship with, the Company.

      (b) If the BD Sponsored FTE violates the provisions of Section 4(a), the
      BD Sponsored FTE shall continue to be bound by the restrictions set forth
      in Section 4(a) until a period of two years has expired without any
      violation of such provisions.

5.    Other Agreements

The BD Sponsored FTE hereby represents that, except as the BD Sponsored FTE has
disclosed in writing to the Company on Appendix A to this Agreement, the BD
Sponsored FTE is not bound by the terms of any agreement with any previous
employer, current employer or other party to refrain from using or disclosing
any trade secret or confidential or proprietary information in the course of
his/her tenure at Company or to refrain from competing, directly or indirectly,
with the business of such previous employer or any other party. The BD Sponsored
FTE further represents that his/her performance of all the terms of this
Agreement and as an BD Sponsored FTE under the BD Agreement does not and will
not breach any agreement to keep in confidence proprietary information,
knowledge or data acquired by the BD Sponsored FTE in confidence or in trust
prior to his/her employment with the Company, and the BD Sponsored FTE will not
disclose to the Company or induce the Company to use any confidential or
proprietary information or material belonging to any previous employer or
others.

6.    United States Government Obligations

The BD Sponsored FTE acknowledges that the Company from time to time may have
agreements with the other persons or with the United States Government, or
agencies thereof, which impose obligations or restrictions on the Company
regarding inventions made during the course of work under such agreements or
regarding the confidential nature of such work. The BD Sponsored FTE agrees to
be bound by all such obligations and restrictions which are made known to the BD
Sponsored FTE and to take all action necessary to discharge the obligations of
the Company under such agreements.

7.    No Employment Contract

The BD Sponsored FTE understands that this Agreement does not constitute a
contract of employment and does not imply that his/her status as a BD Sponsored
under the BD Agreement will continue for any period of time.

                                     - 13 -
<PAGE>

8.    Miscellaneous

      (a) The invalidity or unenforceability of any provision of this Agreement
      shall not affect the validity or enforceability of any other provision of
      this Agreement.

      (b) This Agreement supersedes all prior agreements, written or oral,
      between the BD Sponsored FTE and the Company relating to the subject
      matter of this Agreement. This Agreement may not be modified, changed or
      discharged in whole or in part, except by an agreement in writing signed
      by the BD Sponsored FTE and the Company.

      (c) No delay or omission by the Company in exercising any right under this
      Agreement will operate as a waiver of that or any other right. A waiver or
      consent given by the Company on any one occasion is effective only in that
      instance and will not be construed as a bar to or waiver of any right on
      any other occasion.

      (d) The BD Sponsored FTE expressly consents to be bound by the provisions
      of this Agreement for the benefit of the Company or any subsidiary or
      affiliate thereof to whose employ the BD Sponsored FTE may be transferred
      without the necessity that this Agreement be resigned at the time of such
      transfer.

      (e) The restrictions contained in this Agreement are necessary for the
      protection of the business and goodwill of the Company and are considered
      by the BD Sponsored FTE to be reasonable for such purpose. The BD
      Sponsored FTE agrees that any breach of this Agreement is likely to cause
      the Company substantial and irrevocable damage and therefore, in the event
      of any such breach, the BD Sponsored FTE agrees that the Company, in
      addition to such other remedies which may be available, shall be entitled
      to specific performance and other injunctive relief.

      (f) If any restriction set forth in Sections 3 or 4 is found by any court
      of competent jurisdiction to be unenforceable because it extends for too
      long a period of time or over too great a range of activities or in too
      broad a geographic area, it shall be interpreted to extend only over the
      maximum period of time, range of activities or geographic area as to which
      it may be enforceable.

      (g) This Agreement is governed by and will be construed as a sealed
      instrument under and in accordance with the laws of the Commonwealth of
      Massachusetts. Any action, suit, or other legal proceeding which is
      commenced to resolve any matter arising under or relating to any provision
      of this Agreement shall be commenced only in a court of the Commonwealth
      of Massachusetts (or, if appropriate, a federal court located within
      Massachusetts), and the Company and the BD Sponsored FTE each consents to
      the jurisdiction of such a court.

                                     - 14 -
<PAGE>

THE BD SPONSORED FTE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT
AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

Ontogeny, Inc.

Name:
      ------------------------------
      please print

Name:
      ------------------------------
      signature

Title:
      ------------------------------
Date:
      ------------------------------

BD Sponsored FTE                         Becton Dickinson and Company

Name:                                    Name:
      -------------------------------          -------------------------------
      please print                             please print

Name:                                    Name:
      -------------------------------          -------------------------------
      signature                                signature

Date:                                    Title:
      -------------------------------          -------------------------------
                                         Date:
                                               -------------------------------

                                     - 15 -
<PAGE>

     Confidential Materials omitted and filed separately with the Securities
              and Exchange Commission. Asterisks denote omissions.

                                   SCHEDULE A

                               Research Work Plan

Objective 1:      [**] the [**] can be [**] to [**].

Objective 2:      [**] the ability of [**] a [**] in the [**].

Objective 3:      [**] of the [**] to [**]:

                  *   [**] the [**] of [**] in [**];

                  *  [**] and [**] of [**] and [**] into [**];

                  *  [**] in [**] of these [**]in a [**].

Objective 1:

      (i)   Assess the [**] containing [**] of [**] with the [**];

      (ii)  Determine whether such [**] are [**];

      (iii) If not, using the [**], establish [**] from the [**];

      (iv)  [**] vs. [**]. This should be [**] and to what extent [**], and
            whether [**].

      (v)   [**] which define such [**] and [**]. Assess ability to [**].

      (vi)  [**] from all [**] of [**]of a [**] may be required [**] in a [**].
            Then, by [**] of a [**] which are [**] in a [**] determine the [**]
            for the [**].

The conclusions from this [**] should permit [**] of [**] which can be served by
a [**].

Objective 2:

      (i)   Establish [**], and [**], for [**] using [**]. Demonstrate initially
            in [**] with [**] being [**], or in [**] or [**];

      (ii)  Repeat in [**] treated [**] stability and [**] of [**];

      (iii) Using [**] and [**] from these [**], then repeat in both [**]
            treated [**], using the [**] derived [**].

      (iv)  Assess the [**] of [**].

      (v)   Monitor the [**] from such [**].

      (vi)  [**] to assess the [**] to function in [**] such as the [**]. As
            restoration of [**] and [**].

[**] from this [**] and [**] efficacy of the [**] estimated from [**].

                                     - 16 -
<PAGE>

     Confidential Materials omitted and filed separately with the Securities
              and Exchange Commission. Asterisks denote omissions.

Objective 3:

      (i)   Determine ability to [**] from [**] using [**] and [**] with [**].

      (ii)  Apply knowledge from [**] to [**].

      (iii) As of [**] the [**] for the [**], and the [**] of [**].

      (iv)  [**] to the [**], using various approaches to [**].

      (v)   [**] of such [**] for [**] and [**] using [**] such as [**].

[**] from the section should establish the [**] of a [**] derived and [**] of
[**].

                                     - 17 -
<PAGE>

                                   APPENDIX A

                                OTHER AGREEMENTS:

                                     - 18 -

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