Document:

<PAGE>

                                  EXHIBIT 10.1

Kevin J. Yourman, Esq.
Matthew J. Zevin, Esq.
WEISS & YOURMAN
10940 Wilshire Blvd., 24th Floor
Los Angeles, CA 90024
Telephone: (310) 285-2800
Facsimile: (310) 209-2348

Lead Counsel for Plaintiffs

                          UNITED STATES DISTRICT COURT

                         CENTRAL DISTRICT OF CALIFORNIA

AMR ELGINDY, JAMES DOLAN, DAN                ) CASE NO.  98-9236 WJR (ANx)
WILSON, EDWARD WARD, JULIE YAMIN             )
and DEBORAH WILLIAMSON, on Behalf of         ) CLASS ACTION
Themselves and All Others Similarly Situated,)
                                             )
                           Plaintiffs,       )
                                             )
         vs.                                 )
                                             )
AVTEL COMMUNICATIONS, INC.,                  )
ANTHONY E. PAPA, DAVID CLARK                 )
and TODD GREENE,                             )
                                             )
                           Defendants.       )
_____________________________________________)

                            STIPULATION OF SETTLEMENT

         This Stipulation of Settlement (the "Stipulation"), dated as of
October 4, 2000, is made and entered into by and among the following Settling
Parties (as defined further in Section V hereof) in the above-entitled action
(the "Litigation"): (i) The Representative Plaintiffs (on behalf of
themselves and each of the Settlement Class Members), by and through their
counsel of record in the Litigation; and (ii) the Defendants, by and through
their counsel of record in the Litigation. This Stipulation is intended by
the Settling Parties to fully, finally and forever compromise, resolve,
discharge and settle the Released Claims (as defined herein), subject to
Court approval as described hereinafter and upon and subject to the terms and
conditions of the Stipulation as follows.

<PAGE>

I.       THE LITIGATION

         Between November 17 and November 24, 1998, five class action
complaints were filed in the United States District Court for the Central
District of California (the "Court") on behalf of all persons who purchased
or otherwise acquired the common stock of AvTel Communications, Inc.
(hereinafter "AvTel" or the "Company") on November 12, 1998, against AvTel
and two of its officers for violations of Sections 10(b) and 20(a) of the
SecuritieS and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
These complaints were captioned, respectively: AMR ELGINDY V. AVTEL
COMMUNICATIONS, INC., ANTHONY E. PAPA AND JAMES P. PISANI, Case No. 98-9236
(filed November 17, 1998); BILL SCHELLONG V. AVTEL COMMUNICATIONS, INC.,
ANTHONY E. PAPA AND JAMES P. PISANI, Case No. 98-9275 (filed November 18,
1998); DEBORAH DAVIDSON V. AVTEL COMMUNICATIONS, INC. AND ANTHONY E. PAPA,
Case No. 98-9315 (filed November 19, 1998); MORTON KAHN V. AVTEL
COMMUNICATIONS, INC. AND ANTHONY E. PAPA, Case No. 98-9452 (filed November
24, 1998); and KATHLEEN NILAN V. AVTEL COMMUNICATIONS, INC., ANTHONY E. PAPA
AND JAMES P. PISANI, Case No. 98-9463 (filed November 24, 1998) (collectively
"Initial Complaints"). Since these complaints were filed, the Company changed
its name from AvTel to "NetLojix Communications, Inc." (hereinafter
"NetLojix").

         On February 16, 1999, the Court entered an order appointing Amr
Elgindy, James Dolan, Dan Wilson, Edward Ward, Julie Yamin and Deborah
Williamson as Lead Plaintiffs and Weiss & Yourman ("Weiss & Yourman") as Lead
Counsel for plaintiffs.

         On March 15, 1999, pursuant to Court order, Lead Plaintiffs, on
behalf of themselves and all individuals who purchased or otherwise acquired
the common stock of AvTel on November 12, 1998, filed a Consolidated and
Amended Complaint that consolidated and superceded the Initial Complaints and
amended them by dropping James P. Pisani and adding David Clark and Todd
Greene as defendants ("Consolidated Complaint").

///
///
///

                                       2
<PAGE>

II.      PRETRIAL PROCEEDINGS AND DISCOVERY IN THE LITIGATION

         A. DISCOVERY, INVESTIGATION AND RESEARCH

         Lead Counsel and other Representative Plaintiffs' Counsel have
conducted extensive formal and informal discovery and have investigated the
plaintiffs' claims during the prosecution of the Litigation. This discovery
and investigation has included, INTER ALIA, (i) review and analysis of press
releases by AvTel and media reports of statements by AvTel and its
representatives; (ii) participation in meeting of counsel and preparation of
Joint Report pursuant to Local Rule 6.5; (iii) preparation and service of
plaintiffs' First Request for Production of Documents to AvTel; (iv)
preparation and service of plaintiffs' First Request for Interrogatories to
Defendants; (v) preparation and service of plaintiffs' first Requests for
Admissions to Defendants; (vi) review of documents produced by AvTel and the
Defendants' responses to interrogatories and requests to admit; (vii)
preparation of responses to Defendants' Requests For Production of Documents;
(viii) consultation with experts; (ix) review of AvTel's public filings and
other documents compiled as part of Lead Plaintiffs' investigation; (x)
research of the applicable law with respect to the claims asserted in the
Initial and Consolidated Complaints and the potential defenses available; and
(xi) several mediations with the Honorable J. Lawrence Irving.

         B. PRETRIAL PROCEEDINGS On

         April 14, 1999, Defendants filed a motion to dismiss all of the
claims alleged in the Consolidated Complaint under Federal Rules of Civil
Procedure 12(b)(6), for failure to state a claim upon which relief can be
granted and 9(b), for failure to plead with requisite particularity, and
failure to comply with the Private Securities Litigation Reform Act of 1995
(the "PSLRA"). Lead Plaintiffs opposed Defendants' motion, and on July 12,
1999 the Court issued an order denying Defendants' Motion. Defendants sought
reconsideration of this denial, and on August 30, 1999 the Court denied
reconsideration.

                                       3
<PAGE>

         C. CLASS ACTION CERTIFICATION

         On October 7, 1999, Lead Plaintiffs filed their Motion for Class
Certification. The Defendants did not oppose this Motion. On November 15,
1999 the Court entered an order tentatively certifying a class and appointing
the Lead Plaintiffs as Representative Plaintiffs for the class.

III.     DEFENDANTS' STATEMENT AND DENIALS OF WRONGDOING AND LIABILITY

         The Defendants have denied and continue to deny each and all of the
claims, causes of action, and contentions alleged by the Representative
Plaintiffs (as well as by named plaintiffs in the Initial Complaints) on
behalf of the Settlement Class in the Litigation. The Defendants expressly
have denied and continue to deny all charges of wrongdoing or liability
against them arising out of any of the conduct, statements, acts or omissions
alleged, or that could have been alleged, in the Litigation. The Defendants
also have denied and continue to deny, INTER ALIA, the allegations that the
Representative Plaintiffs or the Settlement Class have suffered any damages,
that the price of AvTel securities was artificially inflated by reasons of
alleged misrepresentations, non-disclosures or otherwise, or that the
Representative Plaintiffs or any Members of the Settlement Class were harmed
by the conduct alleged in the Litigation.

         Nonetheless, the Defendants have concluded that the further conduct
of the Litigation would be protracted and expensive, and that it is desirable
that the Released Claims be fully and finally compromised, settled and
resolved in the manner and upon the terms and conditions set forth in this
Stipulation in order to avoid further expense, inconvenience and distraction,
to dispose of the Litigation, and to permit the operation of NetLojix's
business without further litigation and the distraction and diversion of
NetLojix's personnel with respect to matters at issue in the Litigation. The
Defendants also have taken into account the uncertainty and risks inherent in
any litigation, especially in complex cases like this Litigation. The
Defendants have, therefore, determined that it is desirable and beneficial to
them that the Released Claims be settled in the manner and upon the terms and
conditions set forth in this Stipulation.

                                       4
<PAGE>

IV.      BENEFITS OF SETTLEMENT

         Counsel for the Representative Plaintiffs have asserted the claims
in the Litigation in good faith and believe that the evidence developed to
date in the Litigation supports such claims. However, Counsel for the
Representative Plaintiffs recognize and acknowledge the expense and length of
continued proceedings necessary to prosecute the Litigation against the
Defendants through trial and through appeals. Counsel for the Representative
Plaintiffs also have taken into account the uncertain outcome and the risk of
any litigation, especially in complex actions such as this Litigation, as
well as the difficulties and delays inherent in such litigation. Counsel for
the Representative Plaintiffs also are mindful of the inherent problems of
proof under and possible defenses to the federal securities law violations
asserted and therefore believe that it is desirable that the Released Claims
be fully and finally compromised, settled and resolved as set forth herein.
Counsel for the Representative Plaintiffs believe that the settlement set
forth in this Stipulation confers substantial benefits upon the Settlement
Class. Based on their evaluation, Counsel for the Representative Plaintiffs
have determined that the settlement set forth in this Stipulation is in the
best interests of the Representative Plaintiffs and the Settlement Class.

V.       TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT

         NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among the
Representative Plaintiffs (for themselves and on behalf of the Settlement
Class Members) and the Defendants by and through their respective attorneys
of record, that, subject to the approval of the Court, the Released Claims
shall be finally and fully compromised, settled, and resolved and the
Litigation shall be dismissed with prejudice, as to all Released Claims, upon
and subject to the terms and conditions of the Stipulation, as follows:

         1.0      DEFINITIONS

         As used in the Stipulation the following terms have the meanings
specified below:

         1.1 "Authorized Claimant" means any Settlement Class Member whose
claim for recovery has been allowed pursuant to the terms of this Stipulation.

                                       5
<PAGE>

         1.2 "Claimant" means any Settlement Class Member who files a Proof
of Claim in such form and manner, and within such time, as the Court shall
prescribe.

         1.3 "Claims Administrator" means David Berdon & Company LLP.

         1.4 "AvTel" means AvTel Communications, Inc. (or NetLojix) and its
past or present, direct and indirect, subsidiaries or affiliates, including,
without limitation, Silicon Beach Communications and WestNet Communications.

         1.5 "Defendants" mean AvTel (or NetLojix), Anthony E. Papa, David
Clark, and Todd Greene.

         1.6 "Effective Date" means the first date by which all of the events
and conditions specified in PARA 8.1 of the Stipulation have been met and
have occurred.

         1.7 "Final" means that a judgment or dismissal has become final and
is no longer subject to appeal or review (or further appeal or review),
whether by exhaustion of any possible appeal, lapse of time, or otherwise. An
appeal or petition for a writ of certiorari pertaining solely to any plan of
allocation and/or application for attorneys' fees, costs or expenses, shall
not in any way delay or preclude the Judgment from becoming Final.

         1.8 "Individual Defendants" means, as the context requires, Anthony E.
Papa, David Clark, Todd Greene and James P. Pisani.

         1.9 "Judgment" means the Final Judgment and Order of Dismissal to be
rendered by the Court, substantially in the form attached hereto as Exhibit
"B".

         1.10 "Person" means an individual, corporation, partnership, limited
partnership, association, joint stock company, estate, legal representative,
trust, unincorporated association, government or any political subdivision or
agency thereof, and any business or legal entity and their spouses, heirs,
predecessors, executors, administrators, successors, personal
representatives, or assignees.

         1.11 "Plaintiffs' Settlement Counsel" and "Lead Counsel" means:
Weiss & Yourman, 10940 Wilshire Boulevard, 24th floor, Los Angeles,
California 90024, Telephone: (310) 208-2800.

                                       6
<PAGE>

         1.12 "Plan of Allocation" means a plan or formula of allocation of
the Settlement Fund which shall be described in the Notice of Pendency and
Proposed Settlement of Class Action and Settlement Hearing ("Notice")
(Exhibit "A-1" hereto), to be sent to Settlement Class Members in connection
with the Settlement whereby the Settlement Fund shall be distributed to
Authorized Claimants after payment of expenses of notice and administration
of the Settlement, any taxes, penalties or interest or tax preparation fees
owed by the Settlement Fund, and such attorneys' fees, costs, expenses and
interest as may be awarded by the Court. Any Plan of Allocation is not part
of the Stipulation or the Settlement.

         1.13 "Related Parties" means each of a Person's past or present
directors, officers, employees, partners, principals, agents (except
securities brokers and dealers), insurers, co-insurers, reinsurers,
controlling shareholders, attorneys, accountants, auditors, parents,
subsidiaries, divisions, joint ventures, related or affiliated entities, any
entity in which a Defendant has a controlling interest, any members of the
immediate families of Individual Defendants, or any trust for which any
Defendant or Individual Defendant is the settlor, and any personal or legal
representatives, predecessors, successors, assigns, spouses, heirs, executors
or administrators of any of the foregoing persons or entities.

         1.14 "Released Claims" means and includes any and all claims,
actions, allegations, causes of action, demands, debts, rights or
liabilities, known or unknown, asserted or unasserted, foreseen or
unforeseen, liquidated or unliquidated, fixed or contingent, accrued or
unaccrued, of any nature whatsoever, under the laws of the United States, any
state or any foreign jurisdiction, whether class, individual or derivative in
nature (collectively, "Claims"), that the Representative Plaintiffs or any
Settlement Class Member has asserted, could assert, or might hereafter be
able to assert, against any Released Person in any court, tribunal or other
forum of competent jurisdiction based upon, arising out of, or related to, in
whole or in part, both the purchase or other acquisition of AvTel securities
by any Settlement Class Member during the Settlement Class Period (as defined
herein) and the facts, transactions, events, occurrences, acts, disclosures,
statements, omissions or failures to act which were or could have been
alleged in the Litigation

                                       7
<PAGE>

or any other forum, based upon, relating to or arising from the facts which
were or could have been alleged.

         1.15 "Released Persons" means each and all of the Defendants, the
Individual Defendants, and their respective Related Parties.

         1.16 "Representative Plaintiffs" means Amr Elgindy, James Dolan, Dan
Wilson, Edward Ward, Julie Yamin and Deborah Williamson.

         1.17 "Representative Plaintiffs' Counsel" or "Counsel for the
Representative Plaintiffs" means: Weiss & Yourman; Stull, Stull & Brody;
Wolf, Haldenstein, Adler, Freeman & Herz; and Weschler, Harwood, Halebian and
Feffer LLP.

         1.18 "Settlement" means the terms and conditions set forth in the
"Stipulation".

         1.19 "Settlement Class" means all Persons (except Defendants,
officers and directors of AvTel or NetLojix and/or any of its subsidiaries,
members of their immediate families and their legal representatives, heirs,
successors or assigns, and any entity in which Defendants have or had
controlling interest) who purchased or otherwise acquired AvTel common stock
during the Settlement Class Period.

         1.20 "Settlement Class Member" or "Member of the Settlement Class"
means a Person who falls within the definition of the Settlement Class as set
forth in PARA 1.19 of the Stipulation.

         1.21 "Settlement Class Period" means November 12, 1998.

         1.22 "Settlement Fund" means all stock and Warrants to be issued for
the benefit of the Settlement Class pursuant to PARA 2.1 of the Stipulation,
and any unused funds remaining in the Class Notice and Administration Fund,
as described in PARA 2.2 of the Stipulation.

         1.23 "Settling Parties" means, collectively, each of the Defendants
and the Representative Plaintiffs on behalf of themselves and the Members of
the Settlement Class.

         1.24 "Unknown Claims" means any Released Claim which any
Representative Plaintiff or Settlement Class Member does not know or suspect
to exist in his, her or its favor at the time of the release of the Released
Persons which, if known by him, her, or it, might have affected his, her, or
its settlement with and release of the Released Persons, or might have
affected his, her, or

                                       8
<PAGE>

its decision not to object to, or opt out of, this settlement. Solely with
respect to any and all Released Claims, the Settling Parties stipulate and
agree that, upon the Effective Date, each of the Representative Plaintiffs
shall expressly and the Settlement Class Members shall be deemed to, and by
operation of the Judgment shall, waive and relinquish, to the fullest extent
permitted by law, any and all provisions, rights, and benefits conferred by
any federal, state or foreign law, rule, regulation or common law doctrine
which is similar, comparable, equivalent or identical to Section 1542 of the
California Civil Code, which provides:

         A general release does not extend to claims which the creditor does
         not know or suspect to exist in his favor at the time of executing
         the release, which if known by him must have materially affected his
         settlement with the debtor.

Each of the Representative Plaintiffs and the Settlement Class Members may
hereafter discover facts in addition to or different from those which he, she
or it now knows or believes to be true with respect to the subject matter of
the Released Claims, but hereby stipulate and agree that each Representative
Plaintiff does and each Settlement Class Member shall be deemed to, upon the
Effective Date, fully, finally, and forever settle and release any and all
Released Claims, whether or not concealed or hidden, and without regard to
the subsequent discovery or existence of such different or additional facts.
Releasers acknowledge that the foregoing waiver was separately bargained for
and a key element of the settlement of which this release is a part.

         1.25 "Warrants" means warrants for the purchase of NetLojix common
stock, as described in PARA 3.

         2. TRANSFERS AND PAYMENTS

         2.1 NetLojix shall, after occurrence of the Effective Date, and
within ten (10) business days of receipt of instructions from Plaintiffs'
Settlement Counsel, pursuant to instructions received from Settlement Counsel
for the benefit of the Settlement Class, transfer Two Hundred and Thirty Two
Thousand (232,000) shares of NetLojix common stock and Two Hundred Thousand
(200,000) Warrants, which stock and Warrants (and the stock issued therefrom)
shall be unrestricted and freely tradeable, in accordance with Section
3(a)(10) of the

                                       9
<PAGE>

Securities Act of 1933 to the extent permitted by law. The number of shares
of stock and Warrants, as described in PARA 2.1 shall be adjusted to reflect
any stock splits, dividends of additional stock or reverse stock splits that
occur prior to the issuance and distribution of the Settlement stock and
Warrants.

         2.2 Within two (2) business days of the entry by the Court of an
order preliminarily approving the settlement, as set forth in PARA 4.1 below,
NetLojix shall pay to Plaintiffs' Settlement Counsel One Hundred and Fifty
Thousand Dollars ($150,000) to establish a "Class Notice and Administration
Fund". The Class Notice and Administration Fund may be used by Plaintiffs'
Settlement Counsel to pay costs and expenses reasonably and actually incurred
in connection with providing notice to the Settlement Class, locating class
members, soliciting class claims, assisting with the filing of claims,
administering and distributing the Settlement Fund to the Members of the
Settlement Class, and processing Proof of Claim and Release forms. Any
portion of the Class Notice and Administration Fund not used for these
purposes shall be used to pay Representative Counsel's out-of-pocket
litigation expenses as may be awarded by the Court. If any funds still remain
in this Fund after such payments, those moneys shall be added to the
Settlement Fund. The Class Notice and Administration Fund may also be
invested in instruments backed by the full faith and credit of the United
States Government and earn interest to be added to that Fund.

         2.3 Each Defendant warrants as to himself or itself, that, as to the
transfers and payments made by or on his or its behalf, at the time of such
transfer or payment that each Defendant made or caused to be made pursuant to
PARAS 2.1 or 2.2 above, he or it was not insolvent nor did or will the
transfer required to be made bY this Stipulation render such Defendant
insolvent within the meaning of and/or for the purposes of United States
Bankruptcy Code Section 101 and/or Section 547. This warranty is made by each
Defendant and not by such Defendant's counsel.

         2.4 If a case is commenced in respect to any Defendant under Title
11 of the United States Code (Bankruptcy), or a trustee, receiver or
conservator is appointed under any similar law, and in the event of the entry
of a final order of a court of competent jurisdiction determining

                                       10
<PAGE>

that transfers made pursuant to PARAS 2.1 And 2.2, or any portion thereof,
constitute, as to any Defendant, a preference, voidable transfer, fraudulent
conveyance or similar transaction, then the releases given and Judgment
entered in favor of such Defendant pursuant to this Stipulation shall be null
and void.

         2.5 The Settlement Fund shall not be distributed except as provided
in this Stipulation or, following court approval, with the written agreement
of counsel for Defendants and Plaintiffs' Settlement Counsel.

         2.6 Subject to further order and direction as may be made by the
Court, Settlement Counsel is authorized to execute such transactions on
behalf of Settlement Class Members as are consistent with the terms of the
Stipulation.

         2.7 All funds held by Plaintiffs' Settlement Counsel shall be deemed
and considered to be in CUSTODIA LEGIS of the Court, and shall remain subject
to the jurisdiction of the Court, until such time as such funds shall be
distributed pursuant to this Stipulation and/or further order(s) of the Court.

         2.8 (a) The Settling Parties agree to treat the Class Notice and
Administration Fund and Settlement Fund as being at all times a "qualified
settlement fund" within the meaning of Treas. Reg. Section 1.468B-1. In
addition, the Plaintiffs' Settlement Counsel and, as required, the Defendants
shall jointly and timely make the "relation-back election" (as defined in
Treas. Reg. Section 1.468B-1) back to the earliest permitted date. Such
election shall be made in compliance with the procedures and requirements
contained in such regulations. It shall be the responsibility of the Claims
Administrator to timely and properly prepare, and deliver the necessary
documentation for signature by all necessary parties, and to cause the
appropriate filing to occur.

             (b) For the purposes of Treas. Reg. Section 1.468B-2, the
"Claims Administrator" shall be David Berdon & Co. LLP. The Claims
Administrator shall timely and properly file all informational and other tax
returns necessary or advisable with respect to the Settlement Fund (including
without limitation the returns described in Treas. Reg. Section

                                       11
<PAGE>

1.468B-2(1)). Such returns (as well as the election described in PARA 2.8(a))
shall be consistent with this PARA 2.8 and in all events shall reflect that
all taxes (including any estimated taxes, interest or penalties) on the
income earned by the Class Notice and Administration Fund shall be paid out
of that Fund as provided in PARA 2.8(c) hereof.

             (c) All (i) taxes (including any estimated taxes, interest or
penalties) arising with respect to the income earned by the Class Notice and
Administration Fund ("Taxes"), and (ii) expenses and costs incurred in
connection with the operation and implementation of this PARA 2.8 (including,
without limitation, expenses of tax attorneys and/or accountants and mailing
and distribution costs and expenses relating to filing (or failing to file)
the returns described in this PARA 2.8) ("Tax Expenses"), shall be paid out
of the Class Notice and Administration Fund. The Plaintiffs' Settlement
Counsel shall indemnify and hold Defendants harmless for Taxes and Tax
Expenses. Further, Taxes and the Tax Expenses shall be treated as, and
considered to be, a cost of administration of the settlement and shall be
timely paid by the Claims Administrator out of the Class Notice and
Administration Fund without prior order from the Court.

         2.9 In the event that the Stipulation is not approved, or is
terminated, canceled, or fails to become effective for any reason, neither
the Representative Plaintiffs nor the Settlement Class Members shall be
entitled to any of the Settlement Fund and the Settlement Fund and the funds
in the Class Notice and Administration Fund (including accrued interest),
less all reasonable expenses actually incurred or due and owing in connection
with the settlement provided for herein, shall be refunded by the Plaintiffs'
Settlement Counsel pursuant to written instructions from counsel for
Defendants as described in PARA 8.5 below.

         2.10 The Settling Parties agree to the certification of the
Settlement Class pursuant to the Federal Rules of Civil Procedure solely for
purposes of effectuating the settlement herein. It is expressly understood
and agreed that Defendants do not waive any of their rights to contest class
certification in the event the settlement is not consummated, all of such
rights being expressly reserved.

                                       12
<PAGE>

         3. WARRANTS

         3.1 The Warrants to be issued by NetLojix as part of this Settlement
shall be warrants for the purchase of the common stock of NetLojix.

         3.2 The Warrants shall be exercisable at Eight Dollars ($8) per
share of common stock, payable to NetLojix.

         3.3 The Warrants shall be exercisable for a period of two years
following the date that the SEC declares effective the registration statement
registering the shares of stock supporting the Warrants.

         3.4 After the occurrence of the Effective Date, the Warrants will be
issued pursuant to and within ten (10) business days of notice (via overnight
delivery) of instructions by plaintiffs' Settlement Counsel upon defendants'
counsel, which shall occur, upon completion of the claims processed by the
Claims Administrator. The Warrants will be issued and delivered at NetLojix's
expense.

         3.5 As soon as practicable after the Effective Date, but in no event
greater than 60 days after issuance of the Warrants, NetLojix will file with
the SEC a registration statement registering the shares of common stock
supporting the Warrants. NetLojix will promptly notify the Warrant holders of
record when the registration statement becomes effective.

         4. NOTICE ORDER AND SETTLEMENT HEARING

         4.1 Promptly after execution of the Stipulation, Plaintiffs'
Settlement Counsel shall submit the Stipulation together with its Exhibits to
the Court and shall jointly apply for entry of an order (the "Notice Order"),
substantially in the form of Exhibit "A" hereto. The Notice Order shall
specifically include provisions that, among other things, will:

             (a) Preliminarily approve this Stipulation and the settlement
set forth herein as being fair, just, reasonable and adequate to all Settling
Parties and the contributions by the Defendants to the Settlement Fund as
being fair and equitable, reflecting a fair allocation among the Defendants;

             (b) Approve the form of Notice of Pendency and Settlement of
Class Action

                                       13
<PAGE>

(the "Notice") (substantially in the form of Exhibit A-1 hereto) for mailing
to Members of the Settlement Class;

             (c) Approve the form of Proof of Claim and Release ("Proof of
Claim and Release") (substantially in the form of Exhibit A-2 hereto) for
mailing to Members of the Settlement Class;

             (d) Approve a summary notice of the proposed settlement for
publication (the "Summary Notice") (substantially in the form of Exhibit A-3
hereto);

             (e) Direct Lead Counsel to mail or cause to be mailed by first
class mail the Notice and Proof of Claim and Release to those Persons in the
Settlement Class who can be identified through reasonable effort, on or
before the date specified in the Notice Order;

             (f) Direct that nominees who purchased or otherwise acquired
AvTel securities on November 12, 1998 send the Notice and Proof of Claim and
Release form to all beneficial owners of such AvTel securities within ten
(10) days after receipt of the Notice or send a list of the names and
addresses of such beneficial owners to Lead Counsel within ten (10) days of
receipt of the Notice;

             (g) Direct Lead Counsel to cause the Summary Notice to be
published once in the national edition of INVESTORS BUSINESS DAILY on or
before the date specified in the Notice Order;

             (h) Provide that Settlement Class Members who wish to
participate in the settlement provided for in this Stipulation shall complete
and file Proof of Claim and Release forms pursuant to the instructions
contained therein;

             (i) Find that the notice given pursuant to subparagraphs (b)-(g)
above, constitutes the best notice practicable under the circumstances,
including individual notice to all Persons in the Settlement Class who can be
identified upon reasonable effort, and constitutes valid, due and sufficient
notice to all Persons in the Settlement Class, complying fully with the
requirements of Rule 23 of the Federal Rules of Civil Procedure, the
Constitution of the United States, and any other applicable law;

                                       14
<PAGE>

             (j) Schedule a hearing (the "Settlement Hearing") to be held by
the Court to consider and determine whether the settlement proposed by this
Stipulation should be approved as fair, reasonable and adequate and whether
the Judgment approving the settlement should be entered;

             (k) Provide that any Settlement Class Member who so desires may
exercise the right to exclude themselves from the Settlement Class but only
if they comply with the requirements for so doing as set forth in the Notice;

             (l) Provide that at or after the Settlement Hearing, the Court
shall determine whether the proposed Plan of Allocation should be approved;

             (m) Provide that at or after the Settlement Hearing, the Court
shall determine and enter an order regarding whether and in what amount
attorneys' fees and reimbursement of expenses should be awarded to Lead
Counsel;

             (n) Provide that pending final determination of whether the
settlement contained in this Stipulation should be approved, neither the
Representative Plaintiffs, nor any Settlement Class Member, either directly,
representatively, or in any other capacity shall commence or prosecute any
action or proceeding in any court or tribunal asserting any of the Released
Claims against the Released Persons;

             (o) Provide that any objections to: (i) the settlement proposed
by this Stipulation; (ii) entry of the Judgment approving the settlement;
(iii) the proposed Plan of Allocation; or (iv) Lead Counsel's fee and expense
application(s), and any papers submitted in support of said objections shall
be considered by the Court at the Settlement Hearing only if, on or before
the date specified in the Notice Order, Persons making objections shall file
and serve written objections (which shall set forth each objection and the
basis therefor) and copies of any papers in support of their position as set
forth in the Notice Order;

             (p) Provide that the Settlement Hearing may, from time to time
and without further notice to the Settlement Class, be continued or adjourned
by Order of the Court; and

             (q) Provide that, whether or not the Effective Date occurs, any
Settlement

                                       15
<PAGE>

Class Member who does not properly and timely request exclusion from the
Settlement Class shall be bound by any and all judgments or settlements
entered or approved by the Court, whether favorable or unfavorable to the
Settlement Class.

         5. RELEASES

         5.1 Upon the Effective Date, as defined in PARA 1.6, the
Representative Plaintiffs and each of the Settlement Class Members (except
Members of the Settlement Class who validly and timely request exclusion from
the Settlement Class) shall hereby be deemed to have, and by operation of the
Judgment shall have, fully, finally, and forever released, relinquished and
discharged all Released Claims (including "Unknown Claims") against the
Released Persons, whether or not such Settlement Class Member executes and
delivers the Proof of Claim and Release. Provided, however, that nothing
herein shall bar any claims to construe or enforce the terms of this
Stipulation or, if entered, the Judgment.

         5.2 Upon the Effective Date, as defined in PARA 1.6, each of the
Defendants shall hereby be deemed to have, and by operation of the Judgment
shall have, fully, finally, and forever released, relinquished and discharged
each and all of the Representative Plaintiffs, the Settlement Class (except
Members of the Settlement Class who validly and timely request exclusion from
the Settlement Class) and Counsel to the Representative Plaintiffs from all
claims arising out of, relating to, or in connection with the institution,
prosecution, assertion, settlement or resolution of the Litigation. Provided,
however, that nothing herein shall bar any claims to construe or enforce the
terms of this Stipulation or, if entered, the Judgment.

         6. ADMINISTRATION AND CALCULATION OF CLAIMS, FINAL AWARDS AND
            SUPERVISION AND DISTRIBUTION OF SETTLEMENT FUND

         6.1 Plaintiffs' Settlement Counsel, or their authorized agents,
acting on behalf of the Settlement Class, and subject to the supervision,
direction and approval of the Court, shall administer and calculate the
claims submitted by Settlement Class Members and shall oversee distribution
of that portion of the Settlement Fund that is finally awarded by the Court
to the Settlement Class Members.

                                       16
<PAGE>

         6.2 The Settlement Fund shall be applied as follows:

             (a) To pay Taxes or Tax Expenses, if any;

             (b) To pay the Representative Plaintiffs Counsel's attorneys'
fees, expenses and costs (the "Fee and Expense Award"), if and to the extent
allowed by the Court; and

             (c) To distribute the balance of the Settlement Fund (the "Net
Settlement Fund") to Authorized Claimants as allowed by this Stipulation, the
Plan of Allocation or the Court.

         6.3 Upon the Effective Date and thereafter, and in accordance with
the terms of this Stipulation, the Plan of Allocation, or such further
approval and further order(s) of the Court as may be necessary or as
circumstances may require, the Net Settlement Fund shall be distributed to
Authorized Claimants who submit valid Proofs of Claim and Release forms,
subject to and in accordance with the following:

             (a) Within ninety (90) days after the mailing of the Notice of
Pendency and Proposed Settlement of Class Action and Settlement Hearing (the
"Notice") substantially in the form of Exhibit "A-1" hereto, or such other
time as may be set by the Court, each Person claiming to be an Authorized
Claimant shall be required to submit to the Claims Administrator a separate
completed Proof of Claim and Release substantially in the form of Exhibit
"A-2" hereto, signed under penalty of perjury and supported by such documents
as specified in the Proof of Claim and Release and as are reasonably
available to the Authorized Claimant.

             (b) Except as otherwise ordered by the Court, all Settlement
Class Members who fail to timely submit a Proof of Claim and Release within
such period, or such other period as may be ordered by the Court, shall be
forever barred from receiving any payments pursuant to this Stipulation and
the settlement set forth herein, but will in all other respects be subject to
and bound by the provisions of this Stipulation, the settlement and releases
contained herein, and the Judgment.

             (c) The Settlement Fund shall be distributed to Authorized
Claimants in accordance with and subject to the Plan of Allocation to be
described in the Notice mailed to class members or as otherwise ordered by
the Court.

                                       17
<PAGE>

         6.4 The Defendants and their counsel shall have no responsibility
for, interest in, or liability whatsoever with respect to (i) the management,
investment or distribution of the Settlement Fund, (ii) the determination,
administration, calculation or payment of claims, or (iii) the Plan of
Allocation, other than for NetLojix to issue the common stock and Warrants in
the Settlement Fund pursuant to PARA 2.1 above.

         6.5 No Person shall have any claim against Representative Plaintiffs'
Counsel or any claims administrator, or other agent designated by Plaintiffs'
Settlement Counsel, based on the distributions made substantially in accordance
with the Stipulation and the Settlement contained herein, the Plan of Allocation
or further orders of the Court. 6.6 It is understood and agreed by the Settling
Parties that any proposed Plan of Allocation of the Net Settlement Fund is not a
part of this Stipulation and any order or proceedings relating to the Plan of
Allocation shall not operate to terminate or cancel this Stipulation or affect
the finality of the Court's Judgment approving the Stipulation and the
Settlement set forth herein, or any other orders entered pursuant to this
Stipulation.

         7. REPRESENTATIVE PLAINTIFFS' COUNSEL'S ATTORNEY'S FEES AND
            REIMBURSEMENT OF EXPENSES FROM THE SETTLEMENT

         7.1 The Representative Plaintiffs or Lead Counsel may submit an
application or applications (the "Fee and Expense Application") for
distributions to them from the Settlement Fund for: (i) an award of
attorneys' fees of up to 33 1/3 % of the Settlement Fund; and (ii)
reimbursement of out-of-pocket litigation expenses and costs, including the
fees of any experts or consultants incurred in connection with prosecuting
the Litigation, plus interest on such attorneys' fees, costs and expenses at
the same rate and for the same periods as earned by the Class Notice and
Administration Fund, as may be awarded by the Court. Representative
Plaintiffs' Counsel reserve the right to make additional applications for
fees and expenses incurred. Denial by the Court, in whole or in part, of any
such application, or reversal or modification of any award of fees and
expenses (on appeal or otherwise) shall not be grounds to set aside or
terminate this Stipulation.

         7.2 The attorneys' fees, expenses and costs, including the fees of
experts and

                                       18
<PAGE>

consultants, as awarded by the Court (the "Fee and Expense Award"), shall be
paid to Lead Counsel from among those NetLojix shares and Warrants that
constitute the Settlement Fund as well as remaining funds available in the
Class Notice & Administration Fund. Lead Counsel shall thereafter allocate
the Fee and Expense Award amongst Representative Plaintiffs' Counsel in a
manner in which they in good faith believe reflects the contributions of such
counsel to the prosecution and settlement of the Litigation. In the event
that this Stipulation and the Settlement set forth herein does not become
effective for any reason, or the Judgment or the Order making the Fee and
Expense Award is reversed or modified on appeal or otherwise, and in the
event that the Fee and Expense Award has been paid to any extent, then
Representative Plaintiffs' Counsel shall within five (5) business days from
receiving notice from Defendants' counsel, or from a court of appropriate
jurisdiction, refund to NetLojix the stock and Warrants or other funds (if
any of the stock or Warrants are sold, Representative Plaintiffs' Counsel
shall return the proceeds of such sale(s)) previously paid to them from the
Settlement Fund in connection with the Fee and Expense Award, plus interest
thereon at the same rate as earned on the Class Notice and Administration
Fund, in an amount consistent with such reversal or modification. Each such
Representative Plaintiffs' Counsel's law firm, as a condition of receiving
such fees and expenses, on behalf of itself and each partner and/or
shareholder of it, agrees that the law firm and its partners and/or
shareholders are subject to the jurisdiction of the Court for the purpose of
enforcing the provisions of this paragraph.

         7.3 The procedure for and the allowance or disallowance by the Court
of any applications by the Representative Plaintiffs or their counsel for
attorneys' fees, costs and expenses, including the fees of experts and
consultants, to be paid out of this Settlement Fund, are not part of the
Settlement set forth in this Stipulation, and are to be considered by the
Court separately from the Court's consideration of the fairness,
reasonableness and adequacy of the Settlement set forth in this Stipulation,
and any order or proceedings relating to the Fee and Expense Application, or
any appeal from any order relating thereto, shall not operate to terminate or
cancel this Stipulation, or affect or delay the finality of the Judgment
approving this Stipulation and the settlement of the Litigation set forth
herein.

                                       19
<PAGE>

         8. CONDITIONS OF SETTLEMENT, EFFECT OF DISAPPROVAL, CANCELLATION OR
            TERMINATION

         8.1 The Effective Date of this Stipulation shall be conditioned on the
occurrence of all of the following events:

             (a) The Defendants shall have caused to be paid to the
Plaintiffs' Settlement Counsel, on or before the due date, all amounts due
under PARA 2.2 above;

             (b) The Settlement shall have been approved by the Board of
Directors of NetLojix and by the Defendants;

             (c) The Court shall have entered the Notice Order, as required
by Section 4, above;

             (d) The Court shall have entered the Judgment, or a judgment
substantially in the form of Exhibit B, which shall include a provision for
dismissal of Defendants with prejudice from the Litigation;

             (e) The Judgment shall have become Final, as defined in PARA 1.7
above; and

             (f) The number of securities purchased or otherwise acquired during
the Settlement Class Period by Members of the Settlement Class who submit valid
and timely Requests for Exclusion from the Settlement Class shall be less than
the number set forth in the Supplemental Agreement described in PARA 8.3, or in
the alternative, Defendants shall elect not to exercise their option to
terminate the Settlement in accordance with the terms of the Supplemental
Agreement described in PARA 8.3 and instead shall elect to proceed with the
Settlement, notwithstanding the number of securities purchased or otherwise
acquired by Members of the Settlement Class who submit valid and timely Requests
for Exclusion from the Settlement Class.

         8.2 Upon the occurrence of all of the events referenced in PARA 8.1
above, any and all interest or right of the Defendants to the Settlement Fund
shall be absolutely and forever extinguished.

         8.3 If prior to the Settlement Hearing, Members of the Settlement Class
submit timely requests for exclusion ("Requests for Exclusion") from the
Settlement Class in accordance with the provisions of the Notice Order and the
Notice given pursuant thereto, and such members in the aggregate purchased or
otherwise acquired securities during the Settlement Class Period in an amount
equal to or greater than the sum specified in a separate Supplemental Agreement
between

                                       20
<PAGE>

the Settling Parties, Defendants shall have, in their sole and absolute
discretion, the option to terminate this Stipulation in accordance with the
procedures set forth in the Supplemental Agreement. The Supplemental Agreement
will not be filed with the Court unless a dispute among the parties concerning
its interpretation or application arises and in that event it shall be filed and
maintained with the Court under seal. Copies of all Requests for Exclusion
received, together with copies of all written revocations of Requests for
Exclusion, shall be delivered to counsel for Defendants no later than five (5)
court days before the Settlement Hearing.

         8.4 If all of the conditions specified in PARA 8.1 are not met, then
the Stipulation shall be canceled and terminated unless Plaintiffs'
Settlement Counsel and counsel for Defendants mutually agree in writing to
proceed with the Stipulation.

         8.5 Unless otherwise ordered by the court, in the event this
Stipulation shall terminate, or be canceled, or shall not become effective for
any reason, within five (5) business days after written notification of such
event is sent by counsel for Defendants to Plaintiffs' Settlement Counsel, the
Settlement Fund (including accrued interest), plus any amount then remaining in
the Class Notice and Administration Fund (including accrued interest), less any
expenses and costs which have either been disbursed pursuant to PARA 2.2 hereto,
or are determined to be chargeable to the Class Notice and Administration Fund,
shall be refunded by Plaintiffs' Settlement Counsel pursuant to written
instructions from counsel for Defendants.

         8.6 In the event that this Stipulation is not approved by the Court or
the Settlement set forth in this Stipulation is terminated, canceled or fails to
become effective in accordance with its terms, within five (5) business days
after written notification of such event is sent by counsel for Defendants or
Plaintiffs' Settlement Counsel to the other, the Settling parties shall be
restored to their respective positions in the Litigation as of April 19, 2000.
In such event, (a) this Stipulation shall be null and void and without further
force or effect (except as specified below), (b) neither the existence of this
Stipulation nor its terms nor the negotiations preceding this Stipulation nor
any acts performed (or documents executed) pursuant to, or in furtherance of,
this Stipulation shall be admissible for any purpose in the Litigation or any
other action or proceeding (except to enforce the provisions specified below),
and (c) any judgment or order entered by the Court in

                                       21
<PAGE>

accordance with the terms of this Stipulation shall be treated as vacated,
NUNC PRO TUNC. The following provisions shall survive termination or
cancellation of this Stipulation: PARAS 2.5-2.10, 7.2, 8.3-8.7, 9.3, 9.8-9.12.

         8.7 If the Effective Date does not occur, or if this Stipulation is
terminated pursuant to its terms, neither the Representative Plaintiffs nor any
of their counsel shall have any obligation to repay any amounts properly
disbursed from the Class Notice and Administration Fund. In addition, any
reasonable expenses already incurred and properly chargeable to the Class Notice
and Administration Fund pursuant to PARA 2.2 at the time of such termination or
cancellation but which have not been paid, shall be paid by Plaintiffs'
Settlement Counsel in accordance with the terms of this Stipulation prior to the
balance being refunded in accordance with PARA 8.5 above.

         9. MISCELLANEOUS PROVISIONS

         9.1 The Settling Parties (a) acknowledge that it is their intent to
consummate this Stipulation; and (b) agree to cooperate to the extent necessary
to effectuate and implement all terms and conditions of this Stipulation and to
exercise their best efforts to accomplish the foregoing terms and conditions of
this Stipulation.

         9.2 The Settling Parties intend this settlement to be a final and
complete resolution of all disputes between them with respect to the Litigation.
Defendants agree that the amounts paid to the Settlement Fund and the other
terms of the settlement reflect a good faith settlement of the claims asserted
by the Representative Plaintiffs, reached voluntarily after consultation with
experienced legal counsel.

         9.3 Neither this Stipulation nor the Settlement, nor any negotiations
preceding this Stipulation or Settlement, nor any act performed or document
executed pursuant to or in furtherance of this Stipulation or the Settlement:
(i) is or may be deemed to be or may be used as an admission of, or evidence of,
any wrongdoing or liability of the Defendants or Representative Plaintiffs; or
(ii) is or may be deemed to be or may be used as an admission of, or evidence
of, any fault or omission of any of the Defendants or Representative Plaintiffs
in any civil, criminal or administrative proceeding in any court, administrative
agency or other tribunal. However, this Stipulation and Settlement may be used
in such proceedings as may be necessary to consummate

                                       22
<PAGE>

or enforce this Stipulation, the Settlement or the Judgment, and the parties
(and all other Released Persons) may file this Stipulation and/or the Judgment
in any action that may be brought against them in order to support a defense or
counterclaim based on principles of RES JUDICATA, collateral estoppel, release,
good faith settlement, judgment bar or reduction or any other theory of claim
preclusion or issue preclusion or similar defense or counterclaim.

         9.4 All of the Exhibits to this Stipulation and the Supplemental
Agreement are material and integral parts hereof and are fully incorporated
herein by this reference.

         9.5 This Stipulation may be amended or modified only by a written
instrument signed by or on behalf of all parties or their
successors-in-interest.

         9.6 This Stipulation and the Exhibits attached hereto and the
Supplemental Agreement regarding Requests For Exclusion constitute the entire
agreement among the parties hereto and no representations, warranties or
inducements have been made to any party concerning this Stipulation, its
Exhibits or the Supplemental Agreement other than the representations,
warranties and covenants contained and memorialized in such documents.

         9.7 Plaintiffs' Settlement Counsel, on behalf of the Settlement Class,
are expressly authorized by the Representative Plaintiffs to take all
appropriate action required or permitted to be taken by the Settlement Class
pursuant to this Stipulation, to effectuate its terms and also are expressly
authorized to enter into any modifications or amendments to this Stipulation on
behalf of the Settlement Class which they deem appropriate.

         9.8 Each Counsel or other Person executing this Stipulation or any of
its Exhibits on behalf of any party hereto hereby warrants that such Person has
the full authority to do so.

         9.9 This Stipulation may be executed in one or more counterparts,
including by facsimile. All executed counterparts and each of them shall be
deemed to be one and the same instrument. A complete set of original executed
counterparts shall be filed with the Court.

         9.10 This Stipulation shall be binding upon, and inure to the benefit
of, the successors and assigns of the parties hereto.

         9.11 The Court shall retain jurisdiction with respect to implementation
and enforcement of the terms of this Stipulation, and all parties hereto submit
to the jurisdiction of

                                       23
<PAGE>

the Court for purposes of implementing and enforcing the settlement embodied in
this Stipulation.

         9.12 The Stipulation and the Exhibits hereto shall be considered to
have been negotiated, executed and delivered, and to be wholly performed, in the
State of California, and the rights and allegations of the Settling Parties
shall be construed and enforced in accordance with, and governed by, the
internal, substantive laws of the State of California, without giving effect to
that State's choice of law principles.

         IN WITNESS WHEREOF, the parties hereto have caused this Stipulation to
be executed, by their duly authorized attorneys, effective as of October 4,
2000.

                                      WEISS & YOURMAN
                                      Kevin J. Yourman, Esq.
                                      Matthew J. Zevin, Esq.

                             By:      /s/ KEVIN J. YOURMAN
                                      -----------------------------------------
                                      Kevin J. Yourman
                                      10940 Wilshire Blvd., 24th Floor
                                      Los Angeles, CA 90024
                                      Telephone: (310) 285-2800
                                      Facsimile: (310) 209-2348

                                      Lead Counsel for Plaintiffs

                                      STULL, STULL & BRODY
                                      Michael D. Braun, Esq.
                                      Timothy Burke, Esq.
                                      10940 Wilshire Blvd., Suite 2300
                                      Los Angeles, CA 90024
                                      Telephone: (310) 209-2468
                                      Facsimile: (310) 209-2087

                                      WOLF, HALDENSTEIN, ADLER,
                                         FREEMAN & HERZ
                                      Francis M. Gregorek, Esq.
                                      Betsy C. Manifold, Esq.
                                      Francis Bottini, Jr., Esq.
                                      600 West Broadway, Suite 1800
                                      San Diego, CA 92101
                                      Telephone: (619) 338-4599
                                      Facsimile: (619) 231-7423

                                      WESCHLER, HARWOOD, HALEBIAN
                                         & FEFFER LLP
                                      Scott A. Kamber, Esq.
                                      488 Madison Avenue

                                       24
<PAGE>

                                      New York, NY 10022
                                      Telephone: (212) 935-7400
                                      Facsimile: (212) 753-3630

                                      Attorneys for Representative Plaintiffs

                                      MAYER, BROWN & PLATT
                                      Alan N. Salpeter, Esq.
                                      Harley Hutchins, Esq.

                             By:      /s/ HARLEY HUTCHINS
                                      -----------------------------------------
                                      Harley Hutchins
                                      190 South LaSalle Street
                                      Chicago, IL 60603
                                      Telephone: (312) 782-0600
                                      Facsimile: (312) 701-7711

                                      SEED, MACKALL & COLE LLP
                                      K. Andrew Kent, Esq.
                                      1332 Anacapa Street, Suite 200
                                      Santa Barbara, CA 93101
                                      Telephone: (805) 963-0669
                                      Facsimile: (805) 962-1404

                                      Attorneys for Defendants

                                       25Q3 2000 License Agreement

[ * ] This information has been omitted based on a request for confidential treatment.  The
non-public information has been filed separately with the SEC.

                CONFIDENTIAL TREATMENT REQUESTED - EDITED COPY

Co-Development, Supply And License
Agreement

This Co-Development, Supply and License Agreement (the
"Agreement") is made effective as of the August 8, 2000 (the "Effective Date")
by and between Abgenix, Inc., a Delaware corporation having its principal
place of business at 7601 Dumbarton Circle, Fremont, California, 94555
("Abgenix") and SangStat Medical Corporation, a Delaware corporation
having its principal place of business at 6300 Dumbarton Circle, Fremont,
California 94555 ("SangStat"). Abgenix and SangStat are sometimes referred to
herein each individually as a "Party" and collectively as the "Parties". 

Recitals

Whereas, SangStat is a global pharmaceutical company focusing on
research, development, marketing and sales in the area of therapeutics for
immune-related disorders;

Whereas, Abgenix is engaged in the research and development of
pharmaceutical products based upon monoclonal antibodies, and is developing
products targeted against the CD147 molecule for the treatment of graft versus
host disease; 

Whereas, Abgenix desires to collaborate with SangStat in the further
clinical development of such product and to manufacture and supply to SangStat
such product, in return for financial consideration as described in this
Agreement;

Whereas, SangStat desires to collaborate with Abgenix in the further
clinical development of such product, in order to obtain exclusive worldwide
rights to market and sell such product, to be supplied by Abgenix with
quantities of such product for sale and to receive other consideration as
described in this Agreement; and

Now, Therefore, in consideration of the foregoing and the mutual
covenants and promises contained herein, the Parties agree as follows:

	Definitions

The following terms shall have the following meanings as used in this
Agreement: 

	"Abgenix Core Technology" means all technology,
know-how, and any other intellectual property rights (whether or not patentable)
that is within the Control of Abgenix, including, without limitation, all
technology that is embodied within, or now or hereafter is commonly used by
Abgenix in connection with, the XenoMouse Animals, the generation and
characterization of antibodies from the XenoMouse Animals, and research,
development, manufacturing, and commercialization programs (whether conducted
solely by Abgenix or on behalf of third parties), and the materials and
information related to such programs; provided, however, that the Abgenix Core
Technology shall exclude the Abgenix Know How and Antibody Patents.

	"Abgenix Core Technology Patents" means those Patent
Rights within the Control of Abgenix that are directed to the Abgenix Core
Technology. 
	"Abgenix Know-How" means all Information that is
Controlled by Abgenix as of the Effective Date and used in or contributed to the
Project by Abgenix for the Development, manufacture, use or sale of Licensed
Products.
	"Abgenix In-License" means a license grant in an
agreement between Abgenix and a Third Party, pursuant to which Abgenix has
acquired or may acquire any rights included in the Abgenix Rights, which grant
is subject to all terms of such agreement, including, without limitation,
financial terms, and terms related to exclusivity and
sublicensing.
	"Abgenix Rights" means Antibody Patents and Abgenix
Know-How.
	"ABX-CBL" means the murine monoclonal antibody that
specifically binds to CD147 that is known and referred to by Abgenix as "ABX-
CBL."
	"Affiliate" means an entity that, directly or
indirectly, through one or more intermediaries, controls, is controlled by or is
under common control with Abgenix or SangStat. For purposes of this Agreement, a
person or entity shall be in "control" of an entity if it owns or controls at
least fifty percent (50%) of the voting or income interest in such
entity.
	"Allocable Overhead" means department overhead costs
incurred by a Party or for its account which are attributable to the
Collaboration, including [ * ]. Allocable Overhead may
only be charged to the Collaboration by departments that are [ * ] the
Licensed Product, as defined elsewhere in this Agreement.
	"Allowable Expenses" means those costs deducted from
[ * ] (a) [ * ] (b) [  *  ] (c) [ * ] (d) [ *
] and (e) any other costs and expenses that the Steering Committee agrees to
include as "Allowable Expenses." 
	"Antibody Patents" shall mean any and all Patent
Rights that are Controlled by Abgenix as of or after the Effective Date, to the
extent such Patent Rights claim the composition of matter of, or methods of
using ABX-CBL or other Licensed Products. Antibody Patents existing as of the
Effective Date are listed in Exhibit A.
	"CD147" means the human cell surface antigen known
as CD147, as described in Miyauchi et al J. Biochem (Tokyo) 110:770-774
(1991)]. 
	"CD147 Antibody" means an antibody (whether murine,
human, humanized or otherwise) that binds specifically to
CD147.
	"Clinical Development Committee" means the committee
established pursuant to Section 2.2 below to manage Development under this
Agreement.
	"Collaboration" means the consolidated accounting of
operations for the relationship between SangStat and Abgenix as set forth in
this Agreement. 
	"Commercially Reasonable and Diligent Efforts" means
those prompt efforts and resources consistent with the exercise of prudent
scientific and business judgment, as applied to other pharmaceutical products of
similar potential and market size by the Party in question. 
	"Commercialization" or "Commercialize" shall mean
all activities undertaken relating to the promotion, marketing and sale of
Licensed Product, including without limitation, market research, medical
education programs, product related public relations, planning, detailing,
marketing, distribution, creative development of visual sales aids, support of
medical meetings, direct mail, telemarketing, and tele-detailing, media
placement and advertising, field marketing events such as peer influence
programs featuring medical thought leaders, educational grants, sales meetings,
pharmacoviligence (adverse event reporting), and Phase IV Clinical
Trials.
	"Commercialization Budget" shall have the meaning
assigned in Section 9.2.
	"Commercialization Expenses" means Sales Expenses,
Marketing Expenses, Medical Education Expenses, and Post-Approval Regulatory
Expenses. 
	"Commercialization Plan" shall have the meaning
assigned such term in Section 9.2.
	"Controlled" means, with respect to a material,
Information or intellectual property right, that a Party owns or has a license
to such material, Information or intellectual property right and has the ability
to grant to the other Party access and a license or sublicense (as applicable)
thereto as provided for herein without violating the terms of any agreement or
other arrangement with any Third Party.
	"Cost of Goods Sold" or "COGS" means, for a
given period, the actual costs and expenses of the manufacture and supply of the
Licensed Product sold by SangStat to Third Parties during such period,
including, without limitation, (a) Fully Burdened Manufacturing Costs; (b)
Distribution Expenses; (c) All of the Party's allocable intellectual property
acquisition and licensing costs (including royalties) paid to Third Parties as
it relates to the Licensed Product either as set forth on Exhibit B to this
Agreement or as approved by the Steering Committee, (d) and inventory
adjustments incurred in the normal business process, including, but not limited
to, physical adjustments, cost of spoiled or obsolescent goods, and handling
losses. 
	"Development" means all activities relating to
obtaining Regulatory Approval of a Licensed Product, and all activities relating
to developing the ability to manufacture the Licensed Product for clinical and
commercial use. Such activities include without limitation: preclinical testing,
toxicology, formulation, clinical studies, pharmaco-economic studies, quality of
life assessments, regulatory affairs and obtaining outside counsel regulatory
legal services, manufacturing process development for bulk production,
fill/finish, manufacturing and quality assurance technical support activities
prior to First Commercial Sale of a Licensed Product. 
	"Development Expenses" means the actual costs and
expenses incurred by a Party or for its account specifically attributable to the
Development of the Licensed Product, to the extent generally consistent with the
then-current Development Plan and Budget. Development Expenses shall include
amounts paid by a Party to [ * ]. Development Expenses shall
also include [ * ]. Development Expenses may include, but are not limited
to, the following costs to the extent incurred for the Development of the
Licensed Product as approved by the Steering Committee: [ * ]. In addition,
"Development Costs" shall include expenses for [ * ]. In determining
"Development Costs" chargeable under this Agreement, each Party will use its
respective project accounting systems, and will review and approve its
respective project accounting systems and methodologies with the other
Party. 
	"Development Plan and Budget" means a plan laying
out in detail (i) the program for the Development of the Licensed Product during
a given period of time, and (ii) the budget for cost expenditures for such
Development activities, as further set forth in Section 4.3.
	"Direct Labor" means with respect to an employee, an
amount equal to such employee's salary, benefit, bonuses, payroll
taxes.
	"Distributor" means a Third Party engaged by
SangStat to sell and distribute Licensed Products in a country in which SangStat
does not sell or distribute any products.
	"Distribution Expenses" means the actual costs and
expenses incurred by a Party or for its account specifically attributable to the
distribution of a Licensed Product, to the extent generally consistent with the
then-current Commercialization Plan and Commercialization Budget, including but
not limited to [ * ]. For the purpose of this Agreement, Abgenix and SangStat
each will deem Distribution Expenses to be an [ * ]. 

	"Drug Approval Application" means an application for Regulatory
Approval in a particular jurisdiction.
	"FDA" means the United States Food and Drug
Administration or any successor thereto.
	"Equalization Payment" means, with respect to any
particular accounting period hereunder, the amount payable by one Party to the
other Party so that the Parties have equal shares of the Product Profit
resulting from such period, which amount is calculated as provided in Exhibit
B.
	"Field" means the development, use, manufacture,
distribution, marketing and sale of Licensed Products intended for the treatment
of GVHD, and/or of such other diseases or conditions as the Steering Committee
may approve pursuant to Section 4.11, or, if applicable, Article 6.

	"Financial Statement" means a financial statement in
the form shown and described in Exhibit B.
	"First Commercial Sale" means the first sale of a
product for human use or consumption in a country after the relevant Regulatory
Approval for such sale. First Commercial Sale specifically shall not be deemed
to have occurred upon sale of a product for use in a clinical
trial.
	"Fully Burdened Manufacturing Costs" means a Party's
consolidated fully burdened manufacturing cost (as defined in the Party's
generally accepted accounting policies consistently applied) of a Licensed
Product (in bulk, vialed or finished product form, as the case may be), which
consists of the following, unless otherwise agreed upon by the Parties: (a) [
* ] (b) [ * ]. 

	"Gross Profit" means Net Sales less Cost of Goods Sold for sales of a
Licensed Product by a Party to Third Parties in the Territory. 
	"Information" means, to the extent relevant to the
Project, Project Rights, or development and commercialization of Licensed
Product hereunder, any and all (a) techniques, data inventions, practices,
methods, knowledge, know-how, skill, experience, test data including
pharmacological, toxicological and clinical test data, analytical and quality
control data, marketing, pricing, distribution, cost, sales and manufacturing
data or descriptions and (b) compounds, compositions of matter, assays and
biological materials, and (c) information related to (a) above.
	"Initial Development Outline" means the initial plan
for the Development of ABX-CBL to treat GVHD, as agreed to by the Parties
concurrently with the execution of this Agreement and attached hereto as Exhibit
D.
	"IND" means an Investigational New Drug Application
as defined in the United States Food, Drug and Cosmetic Act and applicable
regulations promulgated thereunder ("FD&CA") by the FDA or the equivalent
application to the Regulatory Agency in any other country or group of countries,
the filing (and approval of or right to proceed under, as applicable) of which
is necessary to commence human *clinical testing of Licensed
Product.
	"Licensed Product" means (a) a product incorporating
ABX-CBL or (b) a product incorporating a CD147 Antibody to the extent Abgenix
and SangStat have agreed to jointly develop and commercialize such CD147
Antibody pursuant to Article 6, including any formulation, put-upon dosage form
thereof. 
	"Major Market" means each of United States, Japan,
France, Germany, the United Kingdom, Italy and Spain.
	"Manufacturing Overhead"
means the following indirect costs, (a) all of which shall be determined in
accordance with allocation principles established by mutual agreement of the
Parties (b) shall be in accordance with generally accepted accounting principles
and consistently applied, (c) shall be allocated to products based on
methodologies consistently applied in the cost accounting system mutually agreed
upon by the finance representatives from the Parties: (i) Manufacturing facility
overhead including depreciation of capital, indirect supplies, indirect labor
(such as product quality assurance and maintenance) utilities, insurance,
property taxes and other facility costs, and all other indirect costs of the
manufacturing facility including utilities, manufacturing.
	"Marketing Expenses" means the actual costs and
expenses incurred by a Party or for its account specifically attributable to the
marketing of a Licensed Product, to the extent generally consistent with the
then-current Commercialization Plan and Commercialization Budget, including but
not limited to [ * ] and other similar activities related to the
Licensed Products and approved by the Steering Committee or its designee. Such
costs will include [  *  ]. "Marketing Expenses"
shall also include activities related to [ * ]. "Marketing Expenses" will
specifically exclude the [ * ]. 
	"Medical Education Expenses" means the actual costs
and expenses incurred by a Party or for its account specifically attributable to
[ * ] to the extent generally consistent with the then-current
Commercialization Plan and Commercialization Budget, including but not limited
to [ * ]. 
	"Net Sales" means the amount invoiced by SangStat or
its Affiliates for sales or other commercial disposition of Licensed Product to
a Third Party less deductions for (a) [ * ] and
(b) [ * ]. 
	"Ongoing Phase II/III Clinical Trial" means the
Phase II/III clinical trial for ABX-CBL ABX-CB-9906 entitled "A Phase II/III,
Multicenter, Open Label, Randomized Clinical Trial evaluating ABX-CBL when
compared to AtgamÒ as Second Line Therapy in
Patients with Steroid Resistant Acute Graft versus Host Disease" as amended from
time to time, being conducted by Abgenix in the United States as of the
Effective Date.
	"Other Operating Income/Expense" means other
operating income or expense from or to Third Parties which is not part of the
primary business activity of the Collaboration, but is considered and approved
by the Steering Committee (or its designee) as income or expense for purposes of
the Collaboration and is limited to the following:

[ * ] 

-  any other expense approved by Steering Committee.

 
	"Other Revenues" means Sublicensee Revenues, any
recoveries pursuant to Section 13.2.7, and any other revenue received by
SangStat or its Affiliates based on or relating to sales or other commercial
disposition of Licensed Products (other than revenue included in the Net Sales
calculation).
	"Patent Rights" means (a) issued United States
patents, including all re-examinations, certificates, reissues, renewals,
extensions, and term restorations thereof; (b) pending applications for United
States patents, including without limitation continuations, continuations-in-
part, and divisionals and substitute applications, and inventors' certificates;
and (c) the foreign equivalents of any of the foregoing.
	"Patent Expenses" means [ * ]. 
	"Post-Approval Regulatory Expenses" means the actual
costs and expenses incurred by a Party or for its account specifically
attributable to required regulatory activities, including but not limited to [ *
] to the extent generally consistent with the then-current
Commercialization Plan and Commercialization Budget, including but not limited
to, [ * ]. The Post-Approval Regulatory Expenses should be contained in the
[ * ]. 
	"Phase III Clinical Trial" means a clinical trial on
sufficient numbers of patients that are designed to establish that a drug is
safe and efficacious for its intended use, and to define warnings, precautions
and adverse reactions that are associated with the drug in the dosage range to
be prescribed, and supporting Regulatory Approval of such drug or label
expansion of such drug. 
	"Phase IV Clinical Trial" means a product support
clinical trial of a Licensed Product commenced after receipt of Regulatory
Approval in the country where such trial is being conducted. Phase IV Clinical
Trials shall be considered a part of Commercialization.
	"Project" means all activities conducted by or on
behalf of the Parties pursuant to this Agreement to conduct Development on and
obtain Regulatory Approval of Licensed Product.
	"Project Know-How" means all Information that is
discovered, invented, acquired and/or developed after the Effective Date by
employees, agents or contractors of SangStat and/or Abgenix, separately or
jointly, in the course of and as a result of the Project (including, without
limitation, any Information with respect to Improvements to the Licensed Product
and with respect to any additional indications and combination therapy for the
Licensed Product), but excluding all Project Patents. 
	"Project Patent(s)" means all Patent Rights that
claim Information that is identified, discovered, invented, acquired and/or
developed on or after the Effective Date by employees, agents or contractors of
SangStat and/or Abgenix, separately or jointly, in the course of and as a result
of the Project. 
	"Product Profits or Losses" means, with respect to a
particular accounting period, the profits or losses resulting from the
Commercialization of Licensed Products during such period equal to: (a) Net
Sales plus Other Operating Income less (b) Allowable Expenses and Other
Operating Expense, all to the extent recognized or incurred during such
period.
	"Project Rights" shall mean Project Patents and
Project Know-How.
	"Regulatory Agent" means that Party designated by an
appropriate authorization to the FDA to be the primary contact with, and
recipient of correspondence from, the FDA or equivalent foreign agency in
connection with any matter or filing before the FDA or foreign agency relating
to Licensed Product.
	"Regulatory Approval" means all approvals (including
pricing and reimbursement approvals), product and/or establishment licenses,
registrations or authorizations of any regional, federal, state or local
regulatory agency, department, bureau or other governmental entity, necessary
for the Commercialization of Licensed Product as a drug in a particular
regulatory jurisdiction.
	"Regulatory Agency" means any government agency
having the responsibility for licensing therapeutic products in their
jurisdiction, including but not limited to the FDA and the United Kingdom's
Medicines Control Agency and the Health Protection Bureau of
Canada.
	"Regulatory Liaison Representative" shall have the
meaning assigned such term in Section 2.3.
	"Safety" means material developments relating to the
safety of Licensed Product involving adverse events that are significant,
serious or life threatening.
	"Sales Expenses" means the actual costs and expenses
incurred by a Party or for its account specifically attributable to the sales of
a Licensed Product, to the extent generally consistent with the then-current
Commercialization Plan and Commercialization Budget, including but not limited
to [ * ]. "Sales Expenses" shall also include expenses
directly allocable to [ * ]. "Sales Expenses" shall not include
[ * ]. 
	"Sales Returns and Allowances" means the sum of (a),
(b), and (c), where: (a) is a provision, determined by a Party under U.S. GAAP
for sales of Licensed Products in the Territory for (i) [ * ] (ii) [
* ] (iii) [ * ] (iv) [ * ] (b) is a periodic adjustment of the provision
determined in (a) to reflect amounts actually incurred by a Licensed Party in
the Territory for items (i), (ii), (iii), and (iv) in clause (a); and (c) is an
adjustment for [ * ] under the Agreement. The provision allowed in clause (a)
and adjustments made in clauses (b) and (c) (if any) will be reviewed by the
Steering Committee or its designee.
	"SangStat Know-How" means all Information that is
Controlled by SangStat as of the Effective Date and used in or contributed to
the Project by SangStat for the Development, manufacture, use or sale of
Licensed Products, but excluding SangStat Patents.
	"SangStat Patent" means Patent Rights that are
Controlled by SangStat during the term of this Agreement and claim Licensed
Product or the Development, manufacture or use thereof.
	"SangStat Rights" means SangStat Know-How and
SangStat Patent Rights.
	"Specifications" means those specifications for
Licensed Product established by Abgenix and/or SangStat through the mechanisms
specified herein, including those referenced in Section 11.8.
	"Steering Committee" means the committee established
under in Section 2.1.
	"Sublicensee" means any entity approved by Abgenix
to whom SangStat grants a sublicense of its rights under Section 5.1 of this
Agreement to market Licensed Products.
	"Sublicensee Revenue" means all revenue and
consideration received by SangStat based on or in connection with the sublicense
of rights to a Sublicensee.
	"Supply Deficiency" means a situation where Abgenix
is unable to supply Licensed Product including, but not limited to failure to
obtain regulatory approval of a manufacturing Facility, force majeure or
otherwise.
	"Successful Completion" means that a clinical trial
has been completed and has met the criteria established by the sponsor at the
beginning of the study for what would be deemed a successful result of such
clinical trial.
	"Third Party" means any person or entity other than
Abgenix or SangStat or their Affiliates.
	"U.S. GAAP" means generally accepted accounting
principles in the United States of America.
	"Utilized Capital" means the amount of Party's
capital to the extent it is expended or utilized to the support of Licensed
Product, and shall consist of: (a) for each Party,
[  *  ] plus (b) [  *  ] (i)
[ * ] (ii) [ * ]. 
	Governance

	
Steering Committee

	Formation of Steering
Committee; Decision Making. Abgenix and SangStat shall create, within thirty
(30) days after the Effective Date, a Steering Committee. Each Party shall
appoint three (3) employees as its representative members of the Steering
Committee, at least one having substantial experience in pharmaceutical product
development and/or Commercialization. An alternate member designated by a Party
may serve temporarily in the absence of a permanent member designated by such
Party. A Party may replace either or both of its permanent members of the
Steering Committee by written notice to the other Party, and each Party shall
have right as it deems reasonably necessary to have additional non-voting
employee representatives participate in Steering Committee meetings. Each Party
shall elect one person assigned by it to the Steering Committee to serve as co-
chair of such committee. 

	Meetings of the Steering
Committee. The Steering Committee:

	shall
hold meetings at such times and places as shall be determined by a majority of
the entire membership of the Steering Committee but unless otherwise mutually
agreed, in no event shall such meetings be held less frequently than once every
four (4) months;

	may
conduct meetings in person or by telephone conference; 

	shall
keep minutes reflecting actions taken at meetings; and
	may act without a meeting if
prior to such action all members of the Steering Committee sign a written
consent thereto.

The co-chairs of the Steering Committee shall alternate responsibility
for preparing an agenda for and minutes of each meeting of such committee, which
minutes shall not be finalized until the co-chairperson who did not prepare such
minutes reviews and confirms the accuracy of such minutes, unless such co-
chairperson does not complete such review within a reasonable period of
time.

	
Functions and Powers of the Steering Committee. The
Steering Committee shall:

(a)manage the
long-range strategy and planning for the Development of Licensed Product in the
manner contemplated by this Agreement, coordinate Development of Licensed
Product, and facilitate the flow of Information between the Parties with respect
to Development work being conducted;

(b)coordinate the
activities of the Parties hereunder, including providing oversight of the
Clinical Development Committee as provided herein; 

(c)attempt to resolve
disputes or disagreements that are unresolved by the Clinical Development
Committee; 

(d)review and approve
the Development Plan and Budget, and amendments thereto, submitted to it by the
Clinical Development Committee pursuant to Article 4; 

(e)review and approve
the Commercialization Plans and Commercialization Budgets submitted to it by
SangStat pursuant to Article 9; 

(f)if a notice of
voluntary termination of this Agreement is provided by either party pursuant to
Section 16.4, coordinate thereafter the wind-down and transfer of the
Development activities then in progress in accordance with the provisions of
Section 16.4 and Section 16.5; 

(g)review and comment
upon all contracts with Third Parties for the manufacture of Licensed
Products

(h)review and
approve all contracts with Distributors and Sublicensees; 

(i)direct any recalls
as provided in Section 9.7; 

(j)attempt, as the
first forms of resolution, to resolve disputes between the Parties regarding any
matters not specifically provided for in this Agreement; 

(k)review and approve
a proposal by either Party to stop a clinical trial of Licensed Product for
product Safety issues; and

(l)perform such
other functions as delegated by the Parties in writing as appropriate to further
the purposes of this Agreement. 

	Steering Committee Actions.
Except as expressly provided in this Section 2.1.4, actions to be taken by
the Steering Committee pursuant to the terms of this Agreement shall be taken
only following the unanimous vote of the members of the Steering Committee. The
Steering Committee shall attempt to have all decisions approved by all members
of the Steering Committee. If the members of the Steering Committee cannot reach
a unanimous decision with respect to Development or Commercialization matters
referred to it for approval within sixty (60) days following such referral, the
final decision on such matters shall be made by executive mediation pursuant to
Article 18.

	Limitations of Powers of
the Steering Committee. The Steering Committee shall have only such powers
as are specifically delegated to it hereunder. The Steering Committee is not a
substitute for the rights of the Parties and is intended for coordination of the
Development and Commercialization of Licensed Product during the term of this
Agreement. Except as set forth in Section 2.1.3, the Steering Committee shall
not be involved with the day-to-day management of this
collaboration.
	Clinical Development Committee

	Formation of Clinical
Development Committee; Decision Making. Abgenix and SangStat each shall
select two (2) representatives (or a different number of representatives if
mutually agreed) with appropriate expertise in drug and clinical development to
serve as members of the Clinical Development Committee. Each Party shall select
one person assigned by it to the Clinical Development Committee to serve as co-
chair. Either Party may designate a substitute for a committee member to
participate in the event one of that Party's regular committee members is unable
to be present at a meeting and may replace one or both of its regular committee
members by written notice to the other Party. The Parties shall establish the
Clinical Development Committee within thirty (30) days after the Effective Date.
Decisions shall be made by the Clinical Development Committee by unanimous
decision after an open discussion of the matters as to which decisions are being
made. If the Clinical Development Committee fails to reach a unanimous decision,
it shall refer such matter to the Steering Committee for
resolution.

	Clinical Development
Committee Meetings. Either Party may call meetings of the Clinical
Development Committee on ten (10) days written notice to the other Party unless
the Parties waive such notice in writing. Such committee may be convened, polled
or consulted from time to time by means of telecommunication, video
communication, or correspondence. The Clinical Development Committee will meet
at least once every three (3) month period following its formation, at sites to
be designated by the co-chairpersons of such committee. Each Party will bear its
own costs for participation in the Clinical Development Committee meetings. The
co-chairperson assigned by Abgenix and the co-chairperson assigned by SangStat
will alternate responsibility for preparing minutes of each meeting of the
Clinical Development Committee, which minutes will not be finalized until the
co-chairperson that did not prepare such minutes reviews and confirms the
accuracy of such minutes.

	
Functions and Powers of the Clinical Development
Committee. The Clinical Development Committee shall perform the following
functions:

(a)plan and
implement the clinical Development of Licensed Product; 

(b)review current
protocols for the Ongoing Phase II/III Clinical Trial and assess the optimal
strategy for obtaining Regulatory Approval for the Licensed Product for
therapeutic indications approved by the Steering Committee pursuant to Section
4.11; 

(c)prepare and review
the scientific design of, and protocols for all other needed clinical trials of
Licensed Products; 

(d)prepare, review
and update the Development Plan and Budget no less frequently than every six (6)
months; 

(e)facilitate the
flow of Information with respect to Development being conducted for the Licensed
Product. 

(f)review and
approve the Specifications for Licensed Product; and

(g)prepare forecasts for quantities of
Licensed Product sufficient to support clinical trials and update such forecast
quarterly, as further provided in Section 11.6.1. 

	
Regulatory Liaison Representatives. Unless otherwise
mutually agreed, SangStat shall have primary responsibility for overseeing the
overall strategy for filing Drug Approval Applications and obtaining Regulatory
Approvals subject to the approval of the Clinical Development Committee. Each
Party will assign an appropriately expert and experienced individual as its
regulatory liaison representative to the other Party to facilitate communication
between the Parties of correspondence and communications with Regulatory
Authorities (each a "Regulatory Liaison Representative"). As soon as
possible following a Party receiving or having such correspondence or
communications, such Party shall distribute such correspondence or
communications to the other Party's Regulatory Liaison Representative. Such
Regulatory Liaison Representative shall be responsible for further distributing
such correspondence and communication to its Party's members of the Clinical
Development Committee and regulatory personnel within such Party, as
appropriate.

	Manufacturing Governance.
Unless otherwise mutually agreed, Abgenix shall have primary responsibility
for overseeing the overall strategy for manufacture of clinical trial material
and process development. Abgenix's manufacturing activities shall be subject to
the review and approval of the Steering Committee provided that disputes over
manufacturing shall be decided by the President of Abgenix in his sole
discretion pursuant to Section 18.1. Manufacturing representatives from both
Parties shall meet regulatory on an ad hoc basis. On a quarterly basis for the
first year following the Effective Date and annually thereafter, Abgenix shall
provide to the Steering Committee for its review Abgenix's plan for
manufacturing of the Licensed Products worldwide, and shall include a report of
the current status of such manufacturing activities with each such plan and
report, including the minimum shelf life for such product and the status of the
negotiations of the commercial supply agreement with Lonza Biologicals
(collectively, the "Manufacturing Plan"). Each Party shall have the right
at its election to nominate one representative who is familiar with
manufacturing strategy to serve on or report to the Steering Committee. Prior to
the First Regulatory Approval, the Steering Committee shall agree upon the
amount of safety stock that shall be maintained and the minimum shelf life
(including, without limitation, Licensed Product performance, potency, and
efficacy) remaining at time of shipment to SangStat. The Parties shall use all
reasonable efforts to reduce the COGS to below [ * ] prior to
manufacturing of validation batches. If the Parties are unable to reduce the
COGS to under [ * ], the Steering Committee shall meet to discuss the
implications of such COGS on the Commercialization of the Product.
	Finance Committee

	Formation of Finance
Committee; Decision Making. Each Party will appoint a representative(s) with
expertise in the areas of accounting, cost allocation, budgeting and financial
reporting to develop mutually acceptable financial, accounting and reporting
models and methods, reports, budgets, forecasts, and the like to serve as
members of the Finance Committee. The Parties shall establish the Finance
Committee within thirty (30) days after the Effective Date. Decisions shall be
made by the Finance Committee by unanimous decision after an open discussion of
the matters as to which decisions are being made. If the Finance Committee fails
to reach a unanimous decision, it shall refer such matter to the Steering
Committee for resolution. Each member of the Finance Committee may designate a
substitute to perform such functions, or may be replaced at any time by the
represented Party by providing notice thereof to the other Party.

	Finance Committee
Meetings. Either Party may call meetings of the Finance Committee on ten
(10) days written notice to the other Party unless the Parties waive such notice
in writing. Such committee may be convened, polled or consulted from time to
time by means of telecommunication, video communication, or correspondence. The
Finance Committee will meet at least once every three (3) month period following
its formation, at sites to be designated by the Finance Committee. Each Party
will bear its own costs for participation in the Finance Committee meetings. The
co-chairperson assigned by Abgenix and the co-chairperson assigned by SangStat
will alternate responsibility for preparing minutes of each meeting of the
Clinical Development Committee, which minutes will not be finalized until the
co-chairperson that did not prepare such minutes reviews and confirms the
accuracy of such minutes.

	Functions and Powers of
the Finance Committee. The Finance Committee shall work under the direction
of the Steering Committee to provide services to and consult with the Clinical
Development Committee, and any other project teams created by the Steering
Committee, in order to address the financial, budgetary and accounting issues
which arise in connection with the Development Budget, Development Plan,
Commercialization Plan, and any other budgets, plans or activities arising under
this Agreement. The Finance Committee, (or other Steering Committee designee)
will be responsible for identifying, analyzing and reporting all significant
line item variances to budget or forecast, and all total variances to budget or
forecast. Only the Steering Committee may approve total budget variations,
chargeable to the Collaboration during the course of the year, however the
Steering Committee may delegate all or part of this responsibility to the
Finance Committee if both Parties agree.

	Intent. It is the
intention of the Parties that the interpretation of the financial definitions
will be consistent with generally accepted accounting principles in the United
States of America ("U.S. GAAP"). Further, it is the intention of the Parties
that these terms be interpreted in a manner consistent with the obligation of
the Parties to maximize and optimize Operating Profit. For purposes of costs
chargeable to the Collaboration, it is the intent of the Parties that such costs
equal or approximate actual costs incurred on behalf of the Collaboration, to
the extent such costs meet the terms defined in this Agreement. Costs should be
incurred in accordance with the budget approved by the Steering Committee. Where
such costs will be determined based on either Party's system of cost or project
accounting, each Party agrees to provide reasonable supporting documentation, as
may be requested by the other Party, to ensure that each Party's methodologies
are reasonable and consistently applied. To the extent that such costs are not
readily determinable based on the respective Parties system of cost or project
accounting, the financial representatives from the Parties will develop and
agree upon a reasonable methodology for determining such costs. Reasonable
methodologies may include a standard rate or some other appropriate basis for
allocating costs. 

	Agendas. Each Party
will disclose to the other proposed agenda items along with appropriate
Information at least ten (10) working days in advance of each meeting of the
Steering Committee, the Clinical Development Committee, and the Finance
Committee.

	Licensing Fee; Milestone
Payments 

	Licensing Fee. As
partial payment for the licenses granted by Abgenix pursuant to Article 5 of
this Agreement, SangStat shall pay to Abgenix a license fee equal to one million
dollars ($1,000,000) upon execution of this Agreement. This fee shall be
nonrefundable, and shall be noncreditable against any future obligations of
SangStat under this Agreement.
	Milestone Payments. SangStat shall make the
following milestone payments to Abgenix within the number of days specified
below with respect to the applicable milestone after the first achievement of
each of the following milestones (or, in the event that any such milestone is
achieved by Abgenix, after both parties have acknowledged in writing the
achievement of such milestones) (except as otherwise provided in this Section
3.2):

	
Milestone
	
Payment

	
[  *  ]
	
$1 million

	
[  *  ]
	
$1 million

The milestone payments received by Abgenix under this Section 3.2 shall be
non-refundable and noncreditable. 

	
Development

	Clinical Development
Responsibilities. The Clinical Development Committee shall oversee the
Development of Licensed Products in order to obtain Regulatory Approvals as soon
as practicable, as set forth in this Article 4 and in accordance with Section
2.2.3. The Parties shall allocate responsibilities for conducting specific
Development tasks among themselves according to the then-current Development
Plan. SangStat and Abgenix each agree to use Commercially Reasonable and
Diligent Efforts to develop the Licensed Products promptly and in such a manner
as to maximize and optimize Product Profit.
	Right to Engage Third Parties. Each party may use Third
Parties to perform certain Development activities subject to the terms provided
in this Section 4.2 and approval by the Steering Committee or other relevant
committees, and the costs and expenses relating to such Third Party Development
activities will be included in Development Expenses. Any material agreements
entered into after the Effective Date (including amendments of agreements in
effect as of the Effective Date), between Abgenix or SangStat and Third Party
clinical research organizations or manufacturers relating to the Development or
manufacture of Licensed Product shall be reviewed and approved by the Clinical
Development Committee. Abgenix and SangStat agree to use reasonable efforts to
provide in any such material agreement for allocations of intellectual property
rights and for obligations of confidentiality and record-keeping that are
consistent with the terms of this Agreement. Notwithstanding the foregoing, any
agreements between Abgenix and Lonza Biologicals shall not be subject to
approval by the Steering Committee or other committees provided for in this
Agreement, but Abgenix shall coordinate with SangStat the negotiation of the
commercial supply agreement with Lonza (retaining the right to redact
information regarding its other products from the drafts). To the extent
relevant to the manufacture and supply of Licensed Product hereunder and to the
extent reasonable, Abgenix shall incorporate SangStat's comments into such
agreement as it relates to the supply and manufacture of Licensed
Product. 

	
Development Plans and Development
Budgets

	Initial Development Outline.
The Development of the Licensed Product shall be governed by a Development
plan and an associated budget for such Development activities (the
"Development Plan and Budget"), which, together with all amendment,
modifications and updates thereto, shall be prepared by the Clinical Development
Committee, for plan and budget approval by the Steering Committee. Attached
hereto as Exhibit D is an initial proposed outline for the development plan as
of the Effective Date (the "Initial Development Outline") which shall be
reviewed and revised as soon as practicable by the Steering Committee and
Clinical Development Committee as soon as those entities are constituted. The
Clinical Development Committee shall amend and update the Development Plan and
Budget, in a more detailed Development Plan and Budget on at least a semi-annual
basis as provided in Section 4.3.3.

	Development Plan and
Budget. Promptly after the Effective Date, the Clinical Development
Committee shall update and refine the Initial Development Outline into a
detailed and comprehensive Development Plan and Budget, which shall set forth,
for each applicable country where Development is to be conducted, the detailed
plan for all Development activities, the allocation between the Parties of
responsibility for such activities, and the budget therefore, including
preclinical studies, toxicology, formulation, process development, clinical
studies, pharmaco-economic studies, quality of life assessments, and regulatory
plans and other elements of obtaining Regulatory Approval in each applicable
country. The Development Plan and Budget shall include a summary of estimated
Development Expenses of the program expected during the Development process
through obtaining Regulatory Approval for each proposed indication and route of
delivery, as well as a detailed budget for all Development activities proposed
for the calendar year following the adoption of such Development Plan and
Budget. The Clinical Development Committee shall, as appropriate based on
Development activities and results to date, amend or modify the then-current
Development Plan and Budget and submit same to the Steering Committee for
review, comment and approval; upon such approval, the amended Development Plan
and Budget shall be effective and binding.

	
Annual Revisions to Development Plan and Budget. At
least sixty (60) days prior to the end of a calendar year, the Clinical
Development Committee shall submit to the Steering Committee for its review and
approval a Development Plan and Budget covering Development activities beginning
in the following year. The Steering Committee shall provide comments on each
such Development Plan and Budget within thirty (30) days following its
submission to such committee. Within sixty (60) days following such original
submission the Steering Committee shall either approve the Development Plan and
Budget submitted by the Clinical Development Committee or approve a modified
Development Plan and Budget prepared by the Steering Committee with input as
appropriate from the Clinical Development Committee and consistent with the
Parties' objectives for the Licensed Product. During the course of each calendar
year, the Clinical Development Committee, by consensus, may approve increases of
up to fifteen percent (15%) in the previously approved detailed budget contained
in the Development Plan and Budget for that year. Mid-year increases that exceed
such amount shall require approval of the Steering
Committee.

	Development Efforts;
Compliance with Regulatory Requirements. Each Party shall exert the efforts
reasonably necessary to execute and substantially carry out the program
described in each Development Plan and Budget within the budget approved for
such activities, and to cooperate with the other in carrying out the Development
Plan. Each Party or its permitted Third Party contractors shall perform its
responsibilities under the Development Plan in accordance with all applicable
FDA (or foreign equivalent) requirements, including without limitation then-
current Good Laboratory Practices, Good Clinical Practices, and Good
Manufacturing Practices. 

	Development
Milestones. Both parties agree to use Commercially Reasonable and Diligent
Efforts to achieve the Development milestones set forth in the mutually
acceptable Development Plan and Budget within the specified timetable for
achievement of such milestones.

	Drug Approval
Applications

	Responsibility for Filing
for Licensed Product. Unless otherwise mutually agreed, SangStat shall have
primary responsibility for overseeing the overall strategy for filing Drug
Approval Applications and obtaining Regulatory Approvals subject to the approval
of the Clinical Development Committee. As a general matter, unless otherwise
agreed, the following shall apply:

(a)SangStat shall be primarily responsible for seeking Regulatory
Approvals for Licensed Products. Prior to submitting any Drug Approval
Application, the Parties shall consult and cooperate in preparing such Drug
Approval Application and their content and scope. Both parties shall have the
right to review and comment on Drug Approval Applications in accordance with
specific timelines or other arrangements agreed upon by the Parties, and each
party's comments will be given all due consideration by the other Party. To the
extent permitted by applicable laws and regulations, SangStat and Abgenix shall
jointly own all regulatory submissions, including Drug Approval Applications for
Licensed Products. Where applicable laws and regulations require one party to
own such regulatory submissions and approvals, SangStat shall own such
submissions and approvals. Regulatory documents shall be held at SangStat. The
Parties shall also mutually agree as to which party shall be responsible for
communications with regulatory agencies during the various phases of development
under this Agreement, with the understanding that absent such agreement, the
holder of the IND at that point in time shall be primarily responsible for such
communications. Except to the extent otherwise required by relevant regulatory
agencies or other governmental entities, all clinical data and reports related
to clinical trials for Licensed Products shall be jointly owned by the Parties,
and each Party shall have full use, for any purpose, of all such data and
reports related to clinical trials for Licensed Products. All data, database
information and reports from such clinical trials for Licensed Products shall be
centralized and held at a location mutually acceptable to both parties.

(b)Abgenix shall remain the legal and beneficial owner and holder
of the IND currently on file and all Drug Approval Applications and related
regulatory filings, if any, made prior to the Effective Date and shall remain
the legal and beneficial owner of all associated rights and benefits accruing
thereto by operation of law or regulation. Subject to the foregoing, Abgenix
shall transfer to SangStat the currently filed IND (or foreign counterpart) upon
completion of the current Phase II/III Clinical Trial. 

(c)If mutually agreed upon by the Parties, Abgenix and
SangStat shall jointly file and own the Drug Approval Application for Licensed
Product in the United States (and any other Drug Approval Application
counterparts in other jurisdictions which permit joint ownership of such
filings.) with the understanding that absent such agreement, SangStat shall file
and own the Drug Approval Applications.

(d)Abgenix shall be responsible for obtaining appropriate
regulatory approvals for the manufacture of bulk Licensed Product by it or its
Third Party manufacturers as of the Effective Date and by any other Third Party
with which Abgenix may enter into an agreement with respect to the manufacture
of bulk Licensed Product thereafter and fulfill and finish manufacturing
thereof. After Regulatory Approval, Abgenix shall own all regulatory licenses
and approvals related to Abgenix's performance of its manufacturing obligations
hereunder.

	If SangStat cannot be the
Filing Party. If the laws and regulations of any jurisdiction require
arrangements different than those referenced above in Section 4.6.1, or the
parties agree to employ different arrangements than those referenced above in
Section 4.6.1, the following shall apply:

(a)Filing Party. The Clinical Development Committee shall
designate, for each regulatory jurisdiction, the Party (who may be a Third
Party) who will be Commercializing the Product in such jurisdiction to be
responsible for preparing and filing Drug Approval Applications and seeking
Regulatory Approvals for the Licensed Product, (either directly or through a
distributor) in such jurisdiction, including preparing all reports necessary as
part of a Drug Approval Application (such Party is referred to as the "Filing
Party" for such jurisdiction). Each Drug Approval Application shall be filed
in the name of the Filing Party for the relevant jurisdiction, and a copy of
each such Drug Approval Application shall be simultaneously provided to the
other Party (the "Referencing Party"). For each Drug Approval
Application, the Filing Party for such Drug Approval Application shall be
responsible for prosecuting such Drug Approval Application and the Referencing
Party shall have a right of cross-reference to such Drug Approval Application.
In connection with all Drug Approval Applications being prosecuted by either
Party as the Filing Party under this Section 4.6(a), the Filing Party agrees to
provide the Referencing Party with a copy (which may be wholly or partly in
electronic form) of all filings to regulatory agencies that it makes hereunder
on a quarterly basis. The Parties shall consult and cooperate in the preparation
of each and every Drug Approval Application and in obtaining Regulatory
Approvals. Each Party shall provide the other Party with reasonable advance
notice of any scheduled meeting with any regulatory agency relating to any Drug
Approval Application for which it is the Filing party, and such other Party
shall have the right to participate in any such meeting. Such Filing Party shall
promptly furnish such other Party with copies of all material correspondence
such Filing Party has had with any relevant regulatory agency, and contact
reports concerning material conversations or material meetings with any
regulatory agency, in each case relating to any such Drug Approval Application.
All actual costs and expenses of a Party in conducting the Development
activities hereunder shall, to the extent consistent with the then-current
Development Plan and Budget, be included in Development Expenses. 

(b)Abgenix as Filing Party. Upon receipt of Regulatory Approval of
each Drug Approval Application for a Licensed Product for which Abgenix is the
Filing Party, if any, Abgenix shall submit an appropriate document to the
regulatory agency designating SangStat as the Regulatory Agent, and thereafter
SangStat shall assume primary responsibility for dealings with the Regulatory
Authority with respect thereto, including filing all supplements and other
documents with such agency with respect to such existing Drug Approval
Application and reporting all adverse drug experiences relating to Licensed
Product. However, Abgenix shall continue to have primary responsibility for
dealings with such Regulatory Authority with respect to any commitments Abgenix
has made to such agency prior to Regulatory Approval of such Licensed Product
until such task has been completed (other than post-marketing survey or
surveillance obligations that were approved by SangStat). In the event that any
regulatory agency threatens or initiates any action to remove a Licensed Product
from the market, SangStat shall notify Abgenix of such communication within one
(1) business day of receipt by SangStat. In connection with all Drug Approval
Applications and Regulatory Approvals with respect to which SangStat is
Regulatory Agent, SangStat agrees to provide Abgenix with a copy (which may be
wholly or partly in electronic form) of all filings to regulatory agencies that
it makes hereunder. 

	
Orphan Drug Status. In the event that a Licensed
Product is classified or designated as an orphan drug, the parties shall share
equally all benefits resulting from such classification or designation,
including, without limitation, benefits related to orphan drug tax credits. The
Steering Committee, in consultation with the Finance Committee and/or Clinical
Committee, shall develop mutually acceptable mechanisms to ensure the parties
maximize and share equally such benefits related to orphan drug status. Such
arrangements to maximize such benefits might include joint filing and ownership
of the BLA. The Parties agree that if the Party who owns the Drug Approval
Application receives orphan drug tax credits or other tax benefits related to
orphan drug status of the Licensed Product, such Party shall provide the other
Party a payment equal to 50% of the orphan drug tax credit or benefit received
by the party owning the Drug Approval Application, unless the parties agree on
another mutually acceptable mechanism. Such payment shall be made within sixty
(60) days after the Party receives the benefit of the orphan drug tax credit, or
files documents with the IRS or other governmental agency responsible for
administering the orphan drug tax credit or benefit, whichever is earlier. 

	Access to Adverse Event
Reporting Information. In furtherance of the desire of the Parties that each
have access to all relevant Information relating to Development, and the fact
that, as Regulatory Agent SangStat shall have responsibility hereunder for the
maintenance and monitoring of all safety and similar Information with respect to
the Licensed Product, SangStat shall provide to up to four (4) of Abgenix's
employees reasonable access to SangStat's place of business where access to such
Information is generally made available to the relevant SangStat employees
performing such Development and Information safety Information monitoring
functions. All costs of such employees shall be Abgenix's, provided SangStat
shall train such employees in whatever procedures are required to enable such
employees to have such informational access with respect to Licensed Product,
and provided further that such employees shall be subject to all SangStat
security, safety and other relevant policies applicable to SangStat employees,
and shall allow such employees access to review and copy all such Information
(subject to Article 12). 

	
Costs of Development

	Method. All Development
Expenses for the Licensed Product shall be shared equally by the Parties,
pursuant to the accounting and reconciliation procedure in Section 4.8.2
below. 

 

	
Procedures. Each Party shall calculate and maintain
records of
Development Expenses incurred by it in accordance with accounting procedures
to be agreed upon between the Parties. Each Party shall provide to the other
Party written quarterly reports setting forth such Party's Development Expenses
incurred during such preceding quarter, with such reports to be submitted within
thirty (30) days after the end of each such calendar quarter. The Parties shall
seek to resolve any questions related to such accounting statements within
thirty (30) days following their receipt. The Party that has incurred a lesser
amount of Development Expenses in the quarter covered by such report shall pay
to the other Party one half (1/2) the difference in the Development Expenses of
the Parties in such quarter within forty five (45) days following the end of
such quarter. Unless otherwise agreed by the Finance Committee the procedures of
this Section 4.8.2 shall govern financial and expense reconciliation prior to
Regulatory Approval, and the provisions of Section 10.3 shall govern thereafter.
Abgenix shall, in the first such report, include the total of its actual costs
and expenses incurred in developing the ABX-CBL product for the period beginning
January 1, 2000 and ending on the Effective Date, along with its
Development Expenses incurred for the period of such report, and such costs and
expenses shall be included in the total of Development Expenses of Abgenix for
such quarter, as provided in Section 4.8.3 below.

	It is estimated by Abgenix that as of the Effective Date that Abgenix has
incurred ABX-CBL development costs from January 1, 2000 to the Effective Date
(the "Abgenix Year 2000 Pre-Effective Date Development Costs") in an amount
approximating $4,800,000.00. The Parties acknowledge that Sangstat's obligation
to reimburse Abgenix for 50% of such costs shall be subject to the audit and
accounting reconciliation procedures provided for herein. Sangstat shall provide
Abgenix with minimum reimbursement payments for its share of the Abgenix Year
2000 Pre-Effective Date Development Costs pursuant to the following
schedule:

(a)Sangstat shall pay Abgenix One Million Dollars ($1,000,000.00) on or
prior to December 1, 2000; and 

(b)Any remaining reimbursement payment owed to Abgenix by Sangstat
with respect to the Abgenix Year 2000 Pre-Effective Date Development Costs
following the payment referenced in Section 4.8.3(a) (i.e, 50% of the audited
and reconciled Abgenix Year 2000 Pre-Effective Date Development Costs minus
$1,000,000.00) (the "Remaining Reimbursement Obligation") shall be paid by
Sangstat to Abgenix as follows:
50% of the Remaining Reimbursement Obligation by June 30, 2001

50% of the Remaining Reimbursement Obligation by June 30, 2002

	
Development Costs Incurred Prior to January 1,
2000

	
ABX-CBL. Beginning on the first (1st)
anniversary of the First Commercial Sale of a Licensed Product, which is ABX-CBL
or is developed from ABX-CBL, SangStat shall reimburse Abgenix an amount equal
to one-half (1/2) of the actual costs and expenses that Abgenix incurred in its
development of the ABX-CBL Licensed Product up to and including
December 31, 1999, which total shall not exceed Twelve Million Two Hundred
Thousand Dollars ($12,200,000.00), (and SangStat's reimbursement obligation
shall not exceed Six Million One Hundred Thousand Dollars ($6,100,000.00) until
such time as such total amount has been reimbursed, according to the following
reimbursement schedule:
At the end of each year or twelve month period in which Net Sales were less
than [ * ], the lesser of [ * ] of Net Sales or [ * ]; and 

At the end of each year in which Net Sales were greater than or equal to [ * ]. 

Such amounts (or the pro rata amount thereof as needed to complete
reimbursement hereunder) shall be payable within sixty (60) days of the
relevant anniversary of the First Commercial Sale of a Licensed Product. If
there is no First Commercial Sale of a Licensed Product, SangStat shall have no
obligation to reimburse Abgenix for any such development expenses set forth in
this Section 4.9.2.

	Licensed Products other than ABX-CBL. With respect
to Licensed Products other than ABX-CBL which the parties agree to develop
and/or commercialize pursuant to Article 6, SangStat shall reimburse Abgenix an
amount equal to one-half (1/2) of the actual costs and expenses that Abgenix
incurred in its development of the Licensed Product up to the point in time when
Abgenix and SangStat enter into definitive agreements for the development and/or
commercialization of the CD147 Antibody in question, until such time as such
total amount has been reimbursed, according to the following reimbursement
schedule: [  *  ] at the end of each year in
which Net Sales were less than [ * ] at the end of each year in which Net Sales
were greater than or equal to [ * ]. Such amounts (or the pro rata amount
thereof as needed to complete reimbursement hereunder) shall be payable within
sixty (60) days of the relevant anniversary of the First Commercial Sale of the
Licensed Product in question.

	Suspension and
Termination of Clinical Trial for Safety Reasons

	
Notification. Either Party may notify the Clinical
Development Committee that it wishes to suspend any clinical trial for reasons
relating to the Safety of the Licensed Product that is the subject of such
trial. The Parties shall confer as soon as possible thereafter with the Clinical
Development Committee to determine the nature and severity of the Safety issues
arising in such trial. 
	Assessment. If at any
time the Clinical Development Committee reviews the data and other information
relating to the Licensed Product being assessed in a clinical trial of the
Licensed Product and recommends termination of such trial, the Steering
Committee shall proceed with regard to such clinical trial as set forth in
Section 4.10.3. If the Clinical Development Committee reviews such data and
information and does not recommend termination of such trial, then the Steering
Committee shall cause the clinical trial in issue to continue. 
	Termination. If at any time during the conduct of a
clinical trial of a Licensed Product the Clinical Development Committee
recommends termination of such trial for reasons relating to the Safety or
efficacy of such Licensed Product, then the Steering Committee shall promptly
meet to discuss such recommendation and the manner and timing for public
disclosure of such termination. The Steering Committee shall then terminate such
trial promptly unless it determines that the Clinical Development Committee made
such recommendation without considering material information relating to the
Safety or efficacy of such product, in which case such clinical trial shall be
suspended until the Clinical Development Committee reviews such information and
comments thereon. If the Clinical Development Committee reviews such additional
information and then again determines that the trial should be terminated, the
Steering Committee shall immediately terminate such trial and confer regarding
the manner and timing of the public disclosure of such termination. If the
Clinical Development Committee does not so recommend termination of such trial,
the Steering Committee shall continue such trial.
	Alternative Approaches.
Notwithstanding the foregoing, if both Abgenix and SangStat agree in writing
upon an approach or procedure for reviewing and addressing any Safety issues
arising in any clinical trial of Licensed Product other than that set forth in
Sections 4.10.1 through 4.10.3, then the Parties shall be free to pursue such
alternative approach.

	
Development of Licensed Product for Additional
Indications. Abgenix shall have the sole right to conduct research
activities related to CD147 Antibodies. In the event that either Party wishes to
have clinical development activities carried out in respect of the Licensed
Product for any potential new indication, with a view to developing data to
support Regulatory Approval for such Licensed Product for use in treating such
new indication, it shall make a written proposal to the Clinical Development
Committee setting forth in reasonable detail the scope of the research and
development activities proposed, together with all data available to the Party
making such proposal relating thereto. Such presentation shall be accompanied by
a draft development plan and development budget for activities to support such
Regulatory Approval for such additional indication. Neither party shall conduct
research and development of the Licensed Product for any potential new
indication without Steering Committee approval.

	
Licenses

	
Grant to SangStat. During the
term of this Agreement, and subject to the terms and conditions of this
Agreement, Abgenix hereby grants to SangStat and its Affiliates under the
Antibody Patents, Abgenix Know-How and Abgenix's interest in the Project Rights
(a) a co-exclusive license, without right to sublicense, to develop Licensed
Products under the terms of this Agreement; and (b) an exclusive, worldwide
license, with the right to sublicense to Sublicensees, to use, sell, offer to
sell, and import Licensed Product for use in the Field, subject to Abgenix's
rights and obligations under this Agreement. 
	Grant to
Abgenix

	Agreement Term. During
the term of this Agreement, and subject to the terms and conditions of this
Agreement, SangStat hereby grants to Abgenix and its Affiliates a nonexclusive,
worldwide, royalty-free license in the Field, without right to sublicense, under
the SangStat Rights and SangStat's interest in the Project Rights to the extent
such SangStat Rights and Project Rights relate to the Licensed Products for
Abgenix to make and have made Licensed Product on SangStat's behalf under this
Agreement; provided, however, that Abgenix shall have the right to grant limited
rights under the foregoing license to any subcontractor that Abgenix is
permitted to engage pursuant to this Agreement to the extent any such
subcontractor requires such rights to perform Abgenix's responsibilities under
this Agreement on behalf of Abgenix. 
	Post-Termination. In the event SangStat (a)
terminates the Agreement pursuant to Section 16.4, or (b) elects to abandon
Commercialization in any country or countries pursuant to Section 9.4, the
provisions of Section 16.5 and Section 9.4 regarding the SangStat Voluntary
Termination License shall apply. 

	Assistance. Abgenix
shall promptly provide SangStat with all Information and materials related to
the Antibody Patents and Abgenix Know-How reasonably useful or necessary for
SangStat to exploit the license granted in this Article 5, subject to the terms
and conditions of this Agreement. Moreover, Abgenix shall provide SangStat with
prompt and reasonable technical assistance in connection with the disclosure of
such Information.
	Access to Third Party Intellectual Property. If,
after the Effective Date, either Party determines that access to Third Party
intellectual property rights is necessary or reasonably useful to develop, make,
use, or sell the Licensed Products, such Party shall have the right to acquire
or obtain a license under such rights upon notice to and approval of the
Steering Committee. The costs of making such acquisition or obtaining and
maintaining such license (i.e., all consideration paid in connection with such
acquisition or license including, without limitation, up-front payments,
milestones payments and royalties) shall be considered to be Development
Expenses and/or Allowable Expenses (as applicable, depending on the time of
incurring the cost); provided, however, that if a Party acquires or obtains a
license under Third Party intellectual property rights that cover or claim a
given aspect of Licensed Product (including formulation or delivery system), and
if such technology and rights are at the time of acquisition or grant of a
license to such Party intended for use with both Licensed Products and such
Party's other products, or later is used in fact with such Party's products
other than Licensed Products (other than pursuant to a separate agreement
whereby such Party pays to such Third Person separate consideration with respect
to such other product), then such Party may include as a Development Expense or
Allowable Expense (as applicable) pursuant to this Section 5.4 only that portion
of the consideration paid or payable to such Third Party for such technology and
rights that reflects a pro rata share of such consideration, calculated based
upon the number of products for which such Party then intends to use or uses
such technology and rights, as determined in good faith by the Steering
Committee. 
	Bankruptcy. The
Parties agree that the licenses granted under or pursuant to Article 5 of this
Agreement are, and shall be, for purposes of Section 365(n) of the United States
Bankruptcy Code, as such section may be amended, licenses to rights to
"intellectual property" as defined in the Bankruptcy Code. The Parties agree
that the licensee of such rights shall retain and may exercise all of its rights
and elections under the Bankruptcy Code, including, without limitation, Section
365(n). 
	Third Party Rights.
It is understood and agreed that (a) the grant of rights under this Article 5
shall be subject to and limited in all respects by the terms of all applicable
Abgenix In-License(s) pursuant to which Abgenix has acquired or may acquire any
rights included in the Abgenix Rights, and (b) all rights or sublicenses granted
under this Agreement shall be exclusive only to the extent that Abgenix shall
have the right to grant such rights and sublicenses under the relevant Abgenix
In-License(s). 
	License Limitations.
SangStat hereby covenants that neither it nor its Affiliates and
Sublicensees shall use or practice the Abgenix Rights and Abgenix' interest in
the Project Rights for any use or purpose except for the specific purposes
expressly licensed under Section 5.1. 

	
No Implied Licenses. Only licenses and rights
granted expressly herein shall be of legal force and effect. No license or other
rights shall be created hereunder by implication, estoppel or
otherwise.

	
No Transfer of Title. The transfer of physical
possession of any Abgenix Know How or other materials to SangStat by Abgenix,
and the physical possession and use of such Abgenix Know How or materials by
SangStat, shall not be (nor shall be construed as) a sale, lease, offer to sell
or lease, or other transfer of title of such Abgenix Know How or materials to
SangStat. 

	Other
CD147 Antibodies

Abgenix shall have the sole right, but not the obligation, to conduct
research and development activities with respect to CD147 Antibodies other than
ABX-CBL. Abgenix shall make all decisions regarding such activities and shall
conduct such activities at its own election and cost. Neither Party may
commercialize any CD147 Antibody without the written consent of the other Party.
Subject to the foregoing, SangStat shall have the right to commercialize any
CD147 Antibody, subject to and under the terms and conditions contained in this
Article 6. In the event that that Abgenix identifies a CD147 Antibody that shows
statistical superiority to ABX-CBL in achieving an FDA validated end point in a
dog or primate model, Abgenix shall notify the Steering Committee. The Steering
Committee shall then determine whether the CD147 Antibody in question would be
suitable for a joint development and commercialization program for GVHD or other
indication, which program would be governed by the terms and conditions set
forth herein unless otherwise mutually agreed. If, and only if, the Steering
Committee agrees to proceed with a joint development and commercialization
program for such CD147 Antibody on the terms and conditions provided herein,
such CD147 Antibody shall be deemed a Licensed Product and shall be governed by
the terms herein accordingly. In the event that the Steering Committee does not
agree to proceed with a joint development and commercialization program for such
CD147 Antibody, either Party (the "Developing Party") may provide the
other Party (the "Non-Developing Party") with a written proposal wherein
the Developing Party would (i) request the right to develop the CD147 Antibody
on its own and/or with a Third Party, and (ii) propose the terms and conditions
upon which the Developing Party would conduct sole development and
commercialization. Thereafter, Abgenix and SangStat shall enter into good faith
negotiations regarding the terms and conditions upon which the Developing Party
would proceed with the sole development of the CD147 Antibody. If Abgenix
voluntarily terminates this Agreement under Section 16.4, SangStat shall
continue to have an option with respect to such CD 147 Antibody on the terms and
conditions provided herein.

	Intellectual Property;
Patent Prosecution

	Disclosure of New
Intellectual Property. Each Party shall disclose Project Rights made by such
Party to the other Party promptly after the disclosing Party learns of such
Project Right having been made, identified or discovered.

 

	Ownership. Inventorship of Project Know-How, or any
Project Patents shall be determined in accordance with United States patent law
(as so determined, "Inventorship", and "Invent" shall be
interpreted accordingly.) The Party Inventing any Project Know-How, or any
invention claimed by a Project Patent or for which a Project Patent may be filed
in accordance with this Article 7, shall own such Project Know-How and Project
Patents. If the Parties jointly Invent any Project Know-How, or any invention
that is or shall be the subject of a Project Patent, then the Parties shall
jointly own such Project Know-How and Project Patent. In the case of Project
Know-How, the Party creating or developing any Project Know-How shall own such
Project Know-How, or if the Parties jointly create, develop any Project Know-
How, the Parties shall jointly own such Project Know-How.
	Abgenix Patent
Prosecution Responsibilities. Except to the extent SangStat is responsible
for prosecution pursuant to Section 7.4, Abgenix shall use reasonable efforts to
prepare, file, prosecute and maintain, (including, without limitation,
conducting all related interference proceedings) (collectively,
"Prosecute") patent applications and patents for all Antibody Patents and
all Project Patents that are owned by Abgenix, and subject to Abgenix' internal
Prosecution strategy. Abgenix will endeavor to ensure that such patent
applications are filed before any public disclosure of the subject matter they
claim by either Party in order to maintain the ability to obtain patent
protection outside of the United States. At least thirty (30) days prior to the
contemplated filing date, Abgenix shall submit to SangStat for review and
comment a substantially completed draft of any patent application within such
Abgenix Project Patents that relate to the Field before the first filing of such
patent application in any jurisdiction; provided, however, SangStat agrees to
review and provide such comments, if any, to Abgenix on an expedited basis if
necessary to avoid loss of Patent Rights. 
	SangStat Patent Prosecution
Responsibility

	SangStat Option to Prosecute. Subject to Section 7.4.3,
and except to the extent assigned to Abgenix pursuant to a SangStat Patent
Discontinuation Election (as defined below), upon thirty (30) days written
notice to Abgenix, SangStat will have the right in SangStat's reasonable
discretion, to Prosecute patent applications and patents within the Antibody
Patents and/or Project Patents, to the extent that such Project Patents cover
methods of use of Licensed Products within the Field. Upon Abgenix's receipt of
such thirty (30) days written notice, the Parties shall confer to discuss the
logistics of SangStat's Prosecution of such Project Patents. SangStat will
ensure that such patent applications are filed before any public disclosure by
either Party in order to maintain the ability to obtain patent protection
outside of the United States. At least thirty (30) days prior to the
contemplated filing date, SangStat shall submit to Abgenix for review and
comment a substantially completed draft of any such patent application which
first discloses any Information discovered or developed in the course of the
Project before the first filing of such patent application in any jurisdiction;
provided, however, Abgenix agrees to review and provide such comments, if any,
to SangStat on an expedited basis if necessary to avoid loss of Patent Rights.
SangStat will make a reasonable effort to adopt Abgenix's suggestions and
include Abgenix's comments and recommendations regarding such draft.
Furthermore, SangStat will confer with Abgenix and make a reasonable effort to
adopt Abgenix's suggestions regarding the prosecution of such patent
applications and will provide to Abgenix a copy of any official actions and
submissions in such patent applications. The costs of such Prosecution by
SangStat shall be borne solely by SangStat and shall not be included as a
Marketing Expense.
	SangStat Patent
Discontinuance Election. Should SangStat (at its discretion) not wish to
Prosecute any Project Patents it has the right to Prosecute pursuant to Section
7.4.1 in any particular country, SangStat will provide Abgenix with thirty (30)
days advance written notice of its intentions ("SangStat Patent
Discontinuance Election"). Upon Abgenix's receipt of a SangStat Patent
Discontinuance Election, Abgenix may elect continue to Prosecute or issue any
such Project Patent at its own expense by providing SangStat with written notice
of the same within thirty (30) days of its receipt of such SangStat
Discontinuance Election. Upon such election by SangStat: (i) SangStat shall
grant Abgenix any necessary authority to file, prosecute, issue and maintain
such Project Patent at issue; (ii) SangStat shall assign such Project Patent to
Abgenix; and (iii) thereafter any such Project Patent shall no longer be Project
Patents or Antibody Patents (as applicable) covered by the license granted to
SangStat under Section 5.1, and exclusive rights thereto shall remain with
Abgenix. Until such assignment of the Patent Rights at issue is complete,
SangStat shall take reasonable efforts to maintain or otherwise ensure that
patent protection will not be lost with respect to such Project Patent provided
Abgenix does not unreasonably delay the assignment thereof.
	Abgenix Responsibility. To the extent that it is not
feasible to prosecute the Project Patents described in Section 7.4.1 separately
from the Patent Rights Abgenix has the responsibility to Prosecute pursuant to
Section 7.3, then Abgenix shall continue to Prosecute such Patent Rights
described in Section 7.4.1. 

	Costs. Except as
otherwise provided in Section 7.4, as of the Effective Date, all Patent Expenses
incurred subsequent to the Effective Date to Prosecute all Antibody Patents and
Project Patents shall be included in Development Expenses or Allowable Expenses
(as applicable) as they are incurred.
	Public Disclosure.
Each Party agrees to delay any public disclosure of the subject matter of
any Project Patent that relates to the Field until at least eighteen (18) months
after first filing date of such Project Patent, and after such time to publish
such subject matter only in accordance with the publication guidelines set forth
in Article 12.
	Notice of
Certification. Abgenix and SangStat each shall immediately give notice to
the other of any certification filed under the U.S. "Drug Price Competition and
Patent Term Restoration Act of 1984" claiming that an Antibody Patent or a
Project Patent is invalid or that any infringement will not arise from the
manufacture, use, import, offer for sale or sale of a product containing ABX-CBL
by a Third Person. SangStat shall have the first right to initiate any
infringement proceeding against the entity making such a certification. If
SangStat decides not to bring infringement proceedings, it shall give notice to
Abgenix of its decision not to bring suit within twenty-one (21) days after
receipt of notice of such certification. Abgenix may then, but is not required
to, bring suit against the Third Person that filed the certification. Any suit
by SangStat or Abgenix shall either be in the name of SangStat or in the name of
Abgenix, or jointly by SangStat and Abgenix, as may be required by law. For this
purpose, the Party not bringing suit shall execute such legal papers necessary
for the prosecution of such suit as may be reasonably requested by the Party
bringing suit.
	Patent Term
Extensions. The Parties shall cooperate with each other in gaining patent
term extension wherever applicable to Antibody Patents or Project Patents
related to the Field. The Steering Committee shall determine which such patents
shall be extended. All filings related to Antibody Patents and Project Patents
for such extensions and certificates shall be made by the Party responsible for
Prosecution of such Patent Rights in accordance with this Article
7.
	Trademarks

	Selection; License;
Expenses. Abgenix and SangStat shall select one or more new trademarks as
they deem appropriate for marketing the Licensed Product. Such trademarks shall
be owned jointly by Abgenix and SangStat (collectively, the "New
Trademarks"); provided, however, that if required by law in any country,
Abgenix shall own the New Trademarks in that country and shall grant an
exclusive license under Abgenix's entire right, title and interest in and to
such New Trademarks to SangStat. Notwithstanding the foregoing, Abgenix shall
own all trademarks filed by Abgenix prior to the Effective Date that relate to
ABX-CBL or Licensed Product (the "Abgenix Marks"), and Abgenix hereby
grants SangStat an exclusive license under the Abgenix Marks solely for use with
Licensed Products (such Abgenix Marks together with the New Trademarks are
referred to as the "Trademarks"). Packaging for Licensed Products would
bear the names of both Parties to the extent permitted and/or required by law.
Expenses for registration of the New Trademarks shall be included as Allowable
Expenses. 
	Infringement of
Trademarks. The parties shall develop mutually acceptable mechanisms to
protect, defend and maintain each Trademark, and all registrations therefore,
and each Party shall notify the other Party promptly upon learning of any
actual, alleged or threatened challenges to or infringement of a trademark or of
any unfair trade practices, trade dress imitation, passing off of counterfeit
goods, or like offenses. Upon learning of such offenses SangStat shall have the
obligation to, in consultation with Abgenix, institute and control an
appropriate action or proceeding to halt the offense, unless the Parties
otherwise mutually agree. Abgenix shall have the right to participate fully in
all such actions or proceedings.
	Costs of Defense. All
of the unrecovered costs, expenses and legal fees (including internal costs and
expenses) in bringing, maintaining and prosecuting any action to maintain,
protect or defend a Trademark (or registration therefor) covering a Licensed
Product shall be a Marketing Expense, and any recovery resulting from such
actions shall be included in Other Revenue.

	Third Party Patent
Rights

	Notice. If the
development, manufacture, use, importation, offer for sale or sale of the
Licensed Product results in a claim for patent infringement or other violation
of intellectual property rights of any Third Person, the Party to this Agreement
first having notice of such claim shall promptly notify the other Party in
writing. The notice shall set forth the facts of the claim in reasonable
detail.
	Litigation. In the event that a Third Person brings
against either Abgenix or SangStat (but not both) a claim that the development,
manufacture, use, importation, offer for sale or sale of the Licensed Product
infringes such Third Person's Patent Rights or misappropriates such Third
Person's trade secret rights, the party against whom such claim is directed
shall have the right to defend such claim, and prosecute any counterclaims, or
any other claims that may arise in connection with such claim. If such claim
names both Abgenix and SangStat, unless otherwise mutually agreed, Abgenix shall
have the first right to defend against any claim. In such event, Abgenix's out-
of-pocket costs and expenses, including without limitation reasonable attorney's
fees, related to such actions shall be included as Development Expenses or
Allowable Expenses (as applicable) and included in Abgenix' regular reports of
Development Expenses or Allowable Expenses (as applicable) for reimbursement.
SangStat shall cooperate with Abgenix at Abgenix's request in such defense and
prosecution and shall have the right to be represented by counsel of its own
choice at its own expense. If Abgenix declines to defend a claim directed
against both SangStat and Abgenix, SangStat shall have the right to defend such
claim. If either party is required by a final court order or a settlement
entered into in good faith to make any payments (including royalty payments on
future sales of Licensed Product by SangStat) to a Third Person in connection
with the disposition of such claim, such payments shall be included in
Development Expenses or Allowable Expenses (as applicable) of such party. Any
settlement, consent judgment or other voluntary final disposition of a suit
under this Section 8.2 requires the written consent of the other party (which
consent shall not be unreasonably withheld). Notwithstanding the foregoing, if
the claim involves an allegation of a violation of the trade secret rights of a
Third Person, the Party accused of such violation shall have the obligation to
defend against such claim and shall indemnify the other Party against all costs
associated with such claim.
	Opposition to Third Party
Patent Rights. Abgenix shall have the right to oppose any Patent Rights
owned by a Third Party that may affect either Party's rights to make, use, sell,
offer to sell or import Licensed Product anywhere in the world. SangStat shall
cooperate with Abgenix at Abgenix's request in all such oppositions. All costs
and expenses associated with any such opposition shall be included as
Development Expenses or Allowable Expenses (as applicable). 

	Commercialization

	Commercialization.
SangStat and Abgenix each agree to use Commercially Reasonable and Diligent
Efforts to market, sell and otherwise commercialize the Licensed Products
promptly and in such a manner as to maximize and optimize Product Profit.
Subject to the terms of this Agreement, SangStat and its Affiliates shall
have the sole right and be solely responsible for Commercialization of all
Licensed Products worldwide. SangStat may engage Distributors or Sublicensees to
promote, market and sell the Licensed Products, provided that such engagements,
and all agreements implementing them, are approved by the Steering
Committee. 
	Commercialization Plan; Commercialization Budget. On
an annual basis commencing on the filing of an Drug Approval Application with
respect to any Licensed Product, SangStat shall provide to the Steering
Committee for review and approval SangStat's plan for Commercialization of the
Licensed Products worldwide, and shall include a report of the current status of
such Commercialization activities with each annual such plan and report
(collectively, the "Commercialization Plan"). To accompany each
Commercialization Plan, SangStat shall submit a projected budget for
commercialization activities covered by such Commercialization Plan (a
"Commercialization Budget") for approval by the Steering Committee.
SangStat shall cooperate with the Steering Committee to revise the
Commercialization Budgets as the Steering Committee may deem appropriate or
desirable. 
	Commercialization
Efforts. SangStat agrees to exert good faith diligent efforts to execute and
carry out the Commercialization Plan and to do so within the Commercialization
Budgets. In addition, SangStat shall use such efforts in Commercialization of
Licensed Products similar to and no less rigorous than the approach it uses in
commercializing its own pharmaceutical products of similar nature and market
potential.
	Countries of Commercialization. SangStat agrees that
it shall upon achieving applicable Regulatory Approval, Commercialize the
Licensed Products in each Major Market. In countries other than the Major
Markets, SangStat shall use Commercially Reasonable and Diligent Efforts to
Commercialize the Licensed Products. In each Major Market, if SangStat fails to
seek Regulatory Approval for a Licensed Product within a reasonable period of
time after Regulatory Approval has been obtained in the United States, or fails
to launch such product within 12 months after Regulatory Approval has been
obtained in such Major Market country, then SangStat shall be deemed to have
abandoned the country in question, in either case other than at the discretion
of the Steering Committee. In such event, with respect to such country, the
provisions of Section 16.5 regarding SangStat's grant of the SangStat Voluntary
Termination License shall apply. 
	Pricing, Pricing
Approvals and Product Distribution. SangStat shall notify Abgenix of the
overall pricing strategy that SangStat proposes to recommend for the
Licensed Product at least ninety (90) days prior to commercial launch of such
product. If Abgenix does not agree with the recommended prices proposed to be
charged by SangStat with respect to a Licensed Product, it may prepare its own
analysis of the market potential and recommended price for such Licensed Product
and present such analysis and recommendation to SangStat and to the Steering
Committee for its consideration. If the Steering Committee is unable to agree on
a price after reviewing the submissions from Abgenix and SangStat, SangStat
shall have the right to make the final pricing decision. SangStat warrants,
covenants and represents that it (i) shall use Commercially Reasonable and
Diligent Efforts to develop a pricing strategy which maximizes Product Profit
and (ii) shall not price Licensed Product so as to maximize sales of other
products at the expense of the Licensed Product (e.g., SangStat shall not sell
Licensed Product as a "loss leader"). 
	Adverse Event Reporting.
Prior to Regulatory Approval, each Party shall report all adverse events in
accordance with applicable laws and regulations and such procedures as the
Parties shall agree upon from time to time. At all times after the approval of
any Drug Approval Application or equivalent thereof, SangStat shall be
responsible for collecting, collating and reporting to the appropriate
regulatory authority all adverse drug experiences. 
	Product Recalls. As an exception to the general
authority of SangStat under this Article 9, if SangStat commences an
internal product quality investigation of Licensed Product, it shall promptly
notify and consult with Abgenix regarding such investigation. Further, if either
Party believes that a recall of a Licensed Product is necessary, such Party
shall notify and consult with the other Party within two (2) working days of its
determination, and both Parties shall cooperate in notifying the appropriate
Regulatory Agency to regarding such potential recall. Such interaction with the
appropriate Regulatory Agency shall occur under the direction of the Steering
Committee but the holder of the Regulatory Approval shall be sole source of
communication with the Regulatory Agency. In the event of a dispute about
whether to contact the appropriate Regulatory Agency, such contact shall occur.
The expenses of a Licensed Product recall shall be included in Allowable
Expenses of the incurring Party.

	Profit Sharing and
Royalties

	Product Profits and Loss
Sharing. Abgenix and SangStat shall share the Product Profit or Loss in the
Territory resulting from the Agreement in the following manner: (a) Abgenix
shall be allocated fifty percent (50%); of the Product Profits or Losses from
the sale of Licensed Products and (b) SangStat shall be allocated fifty percent
(50%) of the Product Profits or Losses from the sale of Licensed
Products.
	Development Cost
Sharing. Abgenix and SangStat agree to share the Development Costs in the
Territory resulting from the Agreement as provided in Section 4.8 and 4.9 of the
Agreement.
	Accounting and Payment. Following Regulatory
Approval, within fifteen (15) days of the end of each calendar quarter, each
Party shall provide the other Party and the Steering Committee an estimate of
its revenues and Allowable Expense items involved in the computation of Product
Profit and incurred or recognized during such quarter with respect to License
Product. Within forty (45) days of the end of each calendar quarter, each Party
shall provide a written report to the other Party and the Steering Committee all
of its revenues and all Allowable Expense items (with appropriate supporting
information) involved in the computation of Product Profit and incurred or
recognized during such quarter with respect to License Product. Each Party's
financial representative will disclose the project cost system methodologies
used, and any material changes thereto, to the other Party's financial
representative. Within thirty (30) days after receipt of such written reports,
the Steering Committee shall promptly direct the remittance between the Parties
of an Equalization Payment. Any payment required by this Section 10.3 shall
be made in any event within thirty (30) days of the due date of the receipt of
reports described in the first sentence of this paragraph. SangStat shall
perform the consolidated reporting of the Collaboration to the Steering
Committee or its designee in close cooperation with Abgenix. This will be the
basis for the Collaboration accounting and determining of payments to the
Parties. SangStat shall provide Abgenix with a copy of the Collaboration
consolidated reporting and the calculation serving as the basis of determining
payments to the Parties. Abgenix will provide SangStat with financial statements
for both their activities in the Territory, prepared in accordance with the
terms contained in the Financial Planning, Accounting and Reporting Procedures
in order for SangStat to prepare the consolidated reports.

	Start of Operations and Effective Accounting Date
Termination. Operation of the Collaboration will be deemed to have commenced
as of the Effective Date of the Agreement. Costs and expenses incurred prior to
such date are not chargeable to the Collaboration except as set forth in Section
4.9. The Parties shall share Product Profit as provided in this Article 10 with
respect to Licensed Product until all Licensed Products are permanently
withdrawn from the market and is no longer being sold anywhere in the world.
Following such termination, the Parties shall conduct a final reconciliation in
accordance with this Article 10.
	Sales by
Sublicensees. Notwithstanding anything to the contrary in this Agreement, in
the event SangStat grants sublicenses to others for the sale of Licensed Product
to the extent permitted hereunder, such sublicenses shall include an obligation
for the Sublicensee to account for and report to the Steering Committee its Net
Sales of Licensed Product on the same basis as if such sales were made by
SangStat.
	Payment Currency. Payments by SangStat under this
Agreement shall be paid to Abgenix in U.S. dollars by wire transfer of
immediately available funds to an account at a commercial bank designated by
Abgenix. Payment by Abgenix to SangStat will be made in U.S. dollars by wire
transfer of immediately available funds to an account designated by SangStat.
Each Party shall designate a commercial bank to receive funds pursuant to this
Article 10 at least five (5) business days before payment is due. Where
payments are based on Net Sales or Other Revenues in countries other than the
United States, the amount of such Net Sales or Other Revenues (as applicable)
expressed in the currency of each country shall be converted into U.S. dollars
at the average daily exchange rate for the applicable quarter as quoted by
Reuters throughout such quarter.
	Accounting

	For the purposes of
determining all costs and expenses hereunder, any cost or expense allocated by
either Party to a particular category for a Licensed Product shall not also be
allocated to another category for such Licensed Product.
	Each Party agrees to
determine Net Sales or Other Revenues, Allowable Expenses, Development Expenses
and all other costs and expenses hereunder with respect to Licensed Products
using its standard accounting procedures, consistent with United States
Generally Accepted Accounting Principles, to the extent practical as if such
Licensed Products were solely owned products of each Party, except as
specifically provided in this Agreement. The Parties also recognize that such
procedures may change from time to time and that any such changes may affect the
definition of Net Sales or Other Revenues, Allowable Expenses, Development
Expenses and such other costs and expenses. The Parties agree that, where such
changes are economically material to either Party, adjustments shall be made to
compensate the affected Party in order to preserve the same economics as
reflected under this Agreement under such Party's accounting procedures in
effect as of the date on which the activity in question (for example,
Development, Commercialization or manufacturing) first commences under this
Agreement. Where the change is or would be material to one Party, the other
Party shall provide an explanation of the proposed change and an accounting of
the effect of the change on the relevant revenue, cost or expense
category.

	Manufacture and Supply 

	Manufacture and Supply.
Subject to Sections 11.2 and 11.3, Abgenix will manufacture, fill, finish,
package and label, or arrange for the manufacture, fill, finish, packaging and
labeling by a Third Party of, the Licensed Products and supply same hereunder
for Development activities under Article 4 and for Commercialization activities
under Article 9 hereof, pursuant to the terms of this Article 11.
Payments to Third-Party manufacturers for such activities and directly related
costs incurred prior to the commencement of manufacture of material useful for
commercial sale will be Development Expenses, if incurred pursuant to the
Development of Licensed Products. 
	Third Party Manufacturing Subcontractors. SangStat
recognizes and agrees that Abgenix may perform its manufacturing
responsibilities hereunder by the use of Third Party subcontractors, including
without limitation, Lonza in accordance with the provisions of Section
4.2. 
	Process Development; Manufacturing Approvals.
Abgenix will use Commercially Reasonable and Diligent Efforts to develop or have
developed on its behalf a process for the manufacture of bulk Licensed Product
and to scale up that process to a scale sufficient to manufacture and supply the
demand for Licensed Products anticipated in the Initial Development Outline.
Abgenix will use Commercially Reasonable and Diligent Efforts to make necessary
filings to obtain, or to cause a Third-Party manufacturer of Licensed Products
to make necessary filings to obtain, Regulatory Approval for the manufacture of
Licensed Products as part of the approval of a Drug Approval Application for the
Licensed Product and to permit SangStat to reference such manufacturing
Regulatory Approvals in its Drug Approval Application for the Licensed Products.
Such filings shall include the filing of a Drug Master File in the United States
and the equivalent thereof in the other countries of the world in which the
Parties seek Regulatory Approval of Licensed Products. Once such filings are
made, no changes to the process for the manufacture of Licensed Product shall be
made that would require approval of the relevant Regulatory Authority without
the prior written approval of both Parties. 
	Auditing Rights. No
more than once per twelve-month period, SangStat shall have the right upon
thirty (30) days prior written notice to audit and inspect the manufacturing
facility and the production and quality control areas, related departmental and
Licensed Product documentation to ensure compliance with cGMP and to confirm
that the Licensed Product is being manufactured and tested in accordance with
the terms of this Agreement. If an audit reveals significant concerns, then
SangStat shall have the right to conduct a follow-up audit within the same
twelve-month period.
	Regulatory Authority
Inspections. In addition, SangStat will be informed immediately by telephone
of any process exceptions (whether or not authorized in advance by SangStat),
which exception would be reportable under the reporting requirements to a
Regulatory Authority and all Regulatory Authority inspections or notices
concerning any Licensed Product or the facility. Abgenix shall notify SangStat
promptly of any and all changes of its regulatory status, resulting from a site
inspection or any other action from any Regulatory Agency. Abgenix shall provide
SangStat with copies of any reports, citations or other materials relating to
such inspections and which relate, directly or indirectly, to the Licensed
Product that are provided by such Regulatory Agency to Abgenix. In addition,
Abgenix shall provide SangStat with copies of all reports prepared by Abgenix in
connection with such inspection. SangStat shall have an opportunity to review
such reports and conclusions and provide direction with respect to such reports
and conclusions.
	Forecasting

	Clinical Supply. The Clinical Development Committee
shall be responsible for preparing eighteen (18) month rolling forecasts for
quantities of Licensed Product sufficient to support clinical trials and update
such forecast quarterly. 
	Commercial Supply. SangStat shall provide to Abgenix
with eighteen (18) month rolling forecasts of quantities of Licensed Product to
be ordered by SangStat during the applicable months (a
"Forecast"). 

(a)Pre-Approval Forecasts. SangStat shall provide the first such
Forecast within thirty (30) days after the Parties decide to file the Drug
Approval Application for a Licensed Product (the "First Pre-Approval
Forecast"). SangStat shall continue to provide rolling forecasts quarterly
until the Parties receive the first Regulatory Approval of the Licensed Product
in a Major Market country, and the last such forecast provided by SangStat prior
to such Regulatory Approval shall be deemed the "Last Pre-Approval
Forecast." The quantity forecasted by SangStat in the Last Pre-Approval
Forecast shall not be greater than two hundred percent (200%), nor less than
fifty percent (50%), of the quantity of Licensed Product forecast in the First
Pre-Approval Forecast. 

(b)Post Approval Forecasts. For Forecasts made by SangStat after
the first Regulatory Approval (the "Post Approval Forecasts") the
following shall apply. Within thirty (30) days following Regulatory Approval,
SangStat shall submit its first binding Post Approval Forecast, which shall
forecast the same quantities of Licensed Product forecast in the Last Pre-
Approval Forecast. At the beginning of each quarter, SangStat shall submit to
Abgenix a Post-Approval Forecast. All Post Approval Forecasts shall become
binding with respect to quantities to be ordered for five months following the
submission of such Post-Approval Forecast. SangStat may vary the quantity of
Licensed Product forecast for such quarter up or down by twenty percent (20%)
from the amount forecasted for such quarter in the most recent Post Approval
Forecast. SangStat shall submit purchase orders on the first day of each quarter
for delivery in the quarter following the quarter for which the purchase order
was submitted. Notwithstanding anything to the contrary herein, Abgenix shall
have no obligation to fill any order in any Post Approval Forecast to the extent
the quantity in any Post Approval Forecast exceeds the 20% quarterly cap on
Licensed Product forecast variances referenced in this Section. While Abgenix
shall have no obligation to fill such orders that exceed such cap, Abgenix shall
use commercially reasonable efforts to attempt to fill such orders. 

	Sales Forecasts and
Facilities Planning. One year prior to the estimated launch of the Licensed
Product and on October 1 of every year thereafter, SangStat shall provide
Abgenix with a forecast of its estimated purchases and sales of Licensed Product
for the twenty four month period commencing on the first day of the following
January (the "Sales Forecast"). The Sales Forecast shall be non-binding
upon SangStat, but shall be used by Abgenix to evaluate and make decisions
regarding long-term manufacturing facility capacity requirements for its timely
manufacture of Licensed Product. While SangStat shall have the ability to
reasonably increase the Sales Forecasts from year to year, if Abgenix determines
that unforeseeable increases in the Sales Forecasts will result in Abgenix
having less than twenty four months of lead time to secure sufficient
manufacturing capacity to meet such Sales Forecast, Abgenix shall promptly
notify SangStat in writing. In the event of such notification, the Parties shall
discuss and agree upon a plan for satisfying the differential needs.
Notwithstanding Section 11.14 herein, Abgenix' inability to supply the
differential needs for Licensed Product due to inadequate lead time for capacity
planning (i.e. notice to Abgenix of less than twenty four months shall not be a
breach by Abgenix of its supply obligations). Notwithstanding the foregoing,
Abgenix shall undertake to use Commercially Reasonable and Diligent Efforts to
supply Licensed Product to meet the entirety of all Sales
Forecasts.
	Quality Testing.
Abgenix shall perform or have performed quality control tests and assays on all
Licensed Product in accordance with the Specifications. Furthermore, Abgenix
shall provide SangStat with a Certificate of Analysis and a Certificate of
Compliance for each batch of Licensed Product delivered to SangStat. The
Certificate of Compliance shall certify that each such batch was reviewed and
meets all regulatory requirements. The Certificate of Analysis shall certify
that each such batch was tested and meets all relevant Specifications and shall
include the assay results for the specific lot, along with the Specifications.
Abgenix or its Third Party manufacturer shall permit SangStat's designated
representatives to inspect and visit from time to time the facilities at which
such Licensed Products are manufactured, stored or tested for the purpose of
determining compliance with this Agreement, as well as all pertinent regulatory
requirements. Such inspections shall occur during regular business hours upon
reasonable notice and no more frequently than quarterly and shall be subject to
appropriate confidentiality and security restrictions. 
	Specifications. The Parties agree that the
manufacture of Licensed Products must be in full compliance with all aspects of
then current GMPs. The Parties, in consultation with the Clinical Development
Committee, shall develop the Specifications, including any necessary
documentation, certificates of analysis and test results, for the bulk, filled,
finished, packaged and labeled Licensed Products to be manufactured under this
Article 11. The Clinical Development Committee shall review and approve the
final Specifications for Licensed Product that are to be submitted to the
applicable Regulatory Agency for approval. 
	Shipment of Licensed
Products. All shipments of Licensed Product from Abgenix will be shipped in
compliance with all applicable transportation and shipping laws and regulations
to a carrier designated by SangStat. All shipping costs and costs associated
with risk of title and loss of Licensed Product shall be shared equally by the
Parties and shall be an Allowable Cost.
	Warranties. Abgenix
hereby warrants and covenants that (a) Licensed Product it manufactures and
supplies hereunder will, on the date of shipment, comply with the Specifications
as then in effect; (b) it shall manufacture, store and ship Licensed Product in
compliance with all applicable Regulatory Agencies' laws and regulations,
including, without limitation, the current good manufacturing practices
regulations of the FDA; and (c) when shipped, Materials will not be adulterated
or misbranded within the meaning of the Food, Drug &Cosmetic Act and
corresponding regulations issued by applicable Regulatory Agencies. SangStat's
sole and exclusive remedy for breach of the foregoing warranty shall be
replacement, at no cost, of the non-conforming License Product. 
	Acceptance. Upon
receipt of a shipment of Licensed Product from Abgenix, SangStat may determine,
using mutually acceptable criteria and assay methods, whether such shipment
meets the Specifications and applicable regulatory requirements. SangStat shall
notify Abgenix in writing promptly if any such Licensed Product fails to meet
said Specifications and requirements. If Abgenix has not received such written
notice within forty five (45) days after any Licensed Product has been received
by SangStat, then such Licensed Product shall be deemed to have met the
Specifications. Upon receipt of any such written notice of non-conformance
within the forty five (45) day inspection period, Abgenix shall either
acknowledge that the subject Licensed Product does not meet the Specifications
or resample the lot or batch in question and have said samples tested by an
independent laboratory reasonably acceptable to SangStat. If such samples are
determined by such independent laboratory to fail to meet the Specifications,
then Abgenix shall replace the non-conforming Licensed Product as soon as
reasonably possible. The Clinical Development Committee shall agree upon an
independent laboratory within ninety (90) days following the Effective
Date.
	Transfer Price for Clinical and Commercial Supply.
SangStat shall pay to Abgenix a transfer price for each shipment of Licensed
Products which shall be determined by a mutually acceptable mechanism developed
by the Finance Committee referenced in Section 2.5, but which shall at least be
equal to 100% of Abgenix's Fully Burdened Manufacturing Cost for the manufacture
of the Licensed Product supplied by Abgenix hereunder. Such amount for each
shipment shall be payable within forty-five (45) days of SangStat's receipt of
such shipment. 
	Shortage of Clinical
Supply. In the event that Abgenix is, at any time during which clinical
trials are ongoing anywhere in the world, unable to manufacture sufficient
quantities of Licensed Product to satisfy worldwide demand for use in clinical
trials of the Licensed Product, then the Clinical Development Committee will
determine what quantity of Licensed Product will be allocated to the clinical
trials then on-going to obtain Regulatory Approval and shall otherwise determine
how to proceed in light of the shortage of Licensed Product.
	Alternative Manufacturing Site

	Identification. SangStat
and Abgenix agree that a contingency plan shall be designed and agreed upon in
good faith, within six (6) months of the Effective Date, to preclude Supply
Deficiencies. To minimize the likelihood of a Supply Deficiency, promptly after
the first Drug Approval Application for a Licensed Product is filed, the
Clinical Development Committee shall identify a mutually agreeable alternate
manufacturing site or third party manufacturer of such Licensed Product (a
"Alternative Manufacturing Site") should a Supply Deficiency arise. The
Alternative Manufacturing Site shall be Abgenix's manufacturing facility in
Fremont California, unless such site is unavailable or unless otherwise mutually
agreed. Upon approval of the Licensed Products, Abgenix shall provide the
technical assistance and training, including the manufacturing specifications,
formulations, processes and Technical Information necessary to manufacturing the
Licensed Product, at no cost to such Alternative Manufacturing Site as may be
necessary to enable the Alternative Manufacturing Site to manufacture Product
or, if the Alternative Manufacturing Site is the Abgenix site in Fremont,
California, seek the approval of the Regulatory Authority. Any costs associated
with the identification approval of such Alternative Manufacturing Site shall be
Allowable Expenses. 
	Use of Alternative
Manufacturing Site. If Abgenix is unable or unwilling to supply at least 85%
of the amount of any Licensed Product, on a per order basis or in the aggregate
for three consecutive orders (or three consecutive calendar quarters), properly
ordered by SangStat pursuant to Section 11.6.2 hereof, then a Supply Deficiency
shall be deemed to have occurred. Abgenix shall and hereby grants to the
Alternative Manufacturing Site a non-exclusive license under the applicable
Antibody Patents, Abgenix Know-How, and Abgenix's interest in the Project
Patents to the extent related to Abgenix' then-current manufacturing procedures
for Licensed Products, proprietary rights and technical information solely to
manufacture Licensed Product for the above purpose. Such license to the
Alternative Manufacturing Site shall terminate upon Abgenix being able to resume
supplying Licensed Product.

	Confidentiality

	Confidentiality;
Exceptions. Except to the extent expressly authorized by this Agreement or
otherwise agreed in writing, the Parties agree that, for the term of this
Agreement and for five (5) years thereafter, the receiving Party shall keep
confidential and shall not publish or otherwise disclose or use for any purpose
other than as provided for in this Agreement any Information and other
confidential information and materials furnished to it by the other Party
pursuant to this Agreement (collectively, "Confidential Information"),
except to the extent that it can be established by the receiving Party that such
Confidential Information:

(a)was already
known to the receiving Party, other than under an obligation of confidentiality,
at the time of disclosure by the other Party; 

(b)was generally
available to the public or otherwise part of the public domain at the time of
its disclosure to the receiving Party; 

(c)became generally
available to the public or otherwise part of the public domain after its
disclosure and other than through any act or omission of the receiving Party in
breach of this Agreement; 

(d)was disclosed
to the receiving Party, other than under an obligation of confidentiality, by a
Third Party who had no obligation to the disclosing Party not to disclose such
information to others; or

(e)was
independently developed by employees or independent contractors of the receiving
Party not having had access to the Confidential Information of the disclosing
Party. 

In order to qualify as Confidential Information, such information or
materials must be marked as confidential at the time of disclosure, or, in the
case of information orally disclosed, confirmed in writing to be confidential
within thirty (30) days of initial disclosure.

	Authorized
Disclosure. Each Party may disclose Confidential Information hereunder to
the extent such disclosure is reasonably necessary in filing or prosecuting
patent applications, prosecuting or defending litigation, complying with
applicable governmental regulations or conducting preclinical or clinical
trials, provided that if a Party intends to make any such disclosure of the
other Party's Confidential Information it will, except where impracticable for
necessary disclosures (for example, in the event of medical emergency), give
reasonable advance notice to the other Party of such disclosure requirement and,
except to the extent inappropriate in the case of patent applications, will use
its reasonable efforts to secure confidential treatment of such Confidential
Information required to be disclosed. In addition, each Party shall be entitled
to disclose, under a binder of confidentiality containing provisions as
protective as those of this Article 12, Confidential Information to any
Third Party for the purpose of carrying out activities authorized under this
Agreement, including disclosures to authorized sublicensees and disclosures by
Abgenix for purposes of the development and commercialization of products
outside the scope of this Agreement. Nothing in this Article 12 shall
restrict any Party from using for any purpose any information developed by it
during the course of the collaboration hereunder. 
	Survival. This
Article 12 shall survive the termination or expiration of this Agreement
for a period of five (5) years.
	Publications. Except as required by law, each Party
agrees that it shall not publish or present any Confidential Information
relating to the Licensed Product or the Field without the opportunity for prior
review by the other Party. Each Party shall provide to the other the opportunity
to review any proposed publications or presentations (including information to
be presented verbally) which relate to the Field as early as reasonably
practical, but at least two (2) weeks prior to their intended submission for
publication (except with the consent of the Development Liaison Officer of the
other Party) and such submitting Party agrees, upon written request from the
other Party, not to submit such abstract or manuscript for publication or to
make such presentation until the other Party agrees, which agreement shall not
be unreasonably withheld. The Clinical Development Committee shall coordinate
the approvals required under this Section 12.4.
	Infringement By Third
Persons

	Notice. To the extent
either Party becomes aware that any of the Antibody Patents, Abgenix Know-How,
SangStat Rights or Project Rights related to or affecting the manufacture, use,
sale, offer for sale or import of the Licensed Product are being infringed
and/or misappropriated by a Third Party, the Party first having knowledge of
such infringement/misappropriation shall promptly notify the other in writing.
The notice shall set forth the facts of such infringement and/or
misappropriation in reasonable detail.
	Prosecution of Actions
Involving Licensed Product

.

	Abgenix Right.
Abgenix shall have the first right, but not the obligation, to institute,
prosecute and control any action or proceeding with respect to any infringement
or misappropriation of any Antibody Patents, Abgenix Know-How or Abgenix Project
Rights, by counsel of its own choice. SangStat shall cooperate with Abgenix at
Abgenix's request in the prosecution of such action or proceeding. If Abgenix
reasonably determines that SangStat is an indispensable party to the action,
SangStat hereby consents to be joined. In such event, SangStat shall have the
right to be represented in that action by counsel of its own choice and at
SangStat's expense. 
	SangStat Right.
SangStat shall have the first right, but not the obligation, to institute,
prosecute and control any action or proceeding with respect to any infringement
or misappropriation of any SangStat Rights, by counsel of its own choice.
Abgenix shall cooperate with SangStat at SangStat's request in the prosecution
of such action or proceeding. If SangStat reasonably determines that Abgenix is
an indispensable party to the action, Abgenix hereby consents to be joined. In
such event, Abgenix shall have the right to be represented in that action by
counsel of its own choice and at Abgenix's expense.
	Costs. All actual
costs and expenses (including legal costs and internal costs) related to
prosecuting any actions under Section 13.2.1 or Section 13.2.2 to seek remedy
for an infringement or misappropriation of any Antibody Patents or Abgenix Know-
How or Abgenix Project Rights or SangStat Rights which relates to the
Development or Commercialization of Licensed Product (a "Field
Infringement") shall be included as Development Expenses or Allowable
Expenses (as applicable). Notwithstanding the foregoing or anything to the
contrary in this Agreement, Abgenix shall have the sole right (but not the
obligation) at its sole discretion, to determine whether and how to proceed with
respect to any infringement or misappropriation of any Abgenix Core Technology
or Abgenix Core Technology Patents. In no event shall an infringement or
misappropriation of any Abgenix Core Technology or Abgenix Core Technology
Patents (i) be deemed to be a Field Infringement, or (ii) otherwise give
SangStat any enforcement rights whatsoever.
	SangStat Election. If
Abgenix fails to bring an action or proceeding within a period of one hundred
twenty (120) days after receiving written notice from SangStat of a Field
Infringement, SangStat shall then have the right to bring and control any such
action by counsel of its own choice and at its own expense. If SangStat
reasonably determines that Abgenix is an indispensable party to the action,
Abgenix shall consent to be joined. In such event, Abgenix shall have the right
to be represented in that action by counsel of its own choice and at Abgenix's
expense. 
	Abgenix Election. If
SangStat fails to bring an action or proceeding within a period of one hundred
twenty (120) days after receiving written notice from Abgenix of a Field
Infringement regarding SangStat Rights, Abgenix shall then have the right to
bring and control any such action by counsel of its own choice and at its own
expense. If Abgenix reasonably determines that SangStat is an indispensable
party to the action, SangStat shall consent to be joined. In such event,
SangStat shall have the right to be represented in that action by counsel of its
own choice and at SangStat's expense.
	Disposition. No
settlement, consent judgment or other voluntary final disposition of a suit
under this Section 13.2 may be entered into without the joint written consent of
SangStat and Abgenix (which consent shall not be unreasonably withheld).

	Allocation of Recoveries. If Abgenix brings action
seeking remedies for a Field Infringement, any damages or other monetary awards
recovered by Abgenix based on such Field Infringement shall be included as Other
Revenues in the calculation of Product Profit for the quarter in which Abgenix
received such awards. If Abgenix fails to bring action for a Field Infringement,
and SangStat brings action at its own expense, any damages or other monetary
awards recovered by SangStat shall be applied first to defray the Parties' costs
and expenses incurred in the action. If any balance remains, SangStat shall
retain such balance. 

	Representations and Warranties

	Mutual. Each of the
Parties hereby represents and warrants to the other Party as
follows:

	Agreement. It has the
power to enter into this Agreement; this Agreement is a legal and valid
obligation binding upon such Party and enforceable in accordance with its terms;
and this Agreement has corporate authorization. 
	No Conflict. The
execution, delivery and performance of the Agreement by such Party does not
conflict with any agreement, instrument or understanding, oral or written, to
which it is a Party or by which it is bound, nor violate any law or regulation
of any court, governmental body or administrative or other agency having
jurisdiction over it. In addition, each Party has not, and during the term of
the Agreement will not, grant any right to any Third Party relating to its
respective patents and know-how which would conflict with the rights granted to
the other Party hereunder. 
	Debarrment. In the
course of conducting Development of Licensed Products, such Party has not used
and shall not use any employee or consultant that is debarred by the FDA or, to
the best of such Party's knowledge, is the subject of debarment proceedings by
the FDA. 

	Abgenix. Abgenix
hereby represents and warrants to SangStat that as of the Effective Date, it has
not received any notices of infringement or any written communications relating
in any way to an actual or alleged infringement with respect to ABX-CBL, and
that it is not aware that the manufacture, use or sale of any Licensed Product
infringes any Third Party Patent Rights.
	Performance by
Affiliates. The Parties recognize that each may perform some or all of its
obligations under this Agreement through Affiliates, provided, however, that
each Party shall remain responsible and be guarantor of the performance by its
Affiliates and shall cause its Affiliates to comply with the provisions of this
Agreement in connection with such performance.
	Information and
Reports

	Information and Reports
During Development and Commercialization. SangStat and Abgenix will disclose
and make available to each other without charge all preclinical, clinical,
regulatory, commercial, marketing, promotion, pricing, sales and other
Information (including copies of all preclinical and clinical reports), known by
SangStat or Abgenix directly concerning Licensed Products at any time during the
term of this Agreement. Each Party shall disclose to the other Party all
material information relating to Licensed Products to the other Party promptly
after it is learned or its significance is appreciated. Each Party shall own and
maintain its own database of clinical trial data accumulated from all clinical
trials of Licensed Products for which it was responsible and of adverse drug
event information for all Licensed Products. At the option of the requesting
Party, such data shall be provided in a computer readable format by the
providing Party, to the extent available, which shall also assist in the
transfer and validation of such data to the receiving Party. Without limitation
of the foregoing, each Party shall supply to the other Party all information
reasonably required by the other Party and requested by it (either as a routine
practice or as a specific request) for purposes of compliance with regulatory
requirements. 
	Complaints. Each
Party shall maintain a record of all complaints it receives with respect to any
Licensed Product. As a general matter, the Party holding the Regulatory Approval
for the Licensed Product shall maintain such records. Each Party shall notify
the other of any complaint received by it in sufficient detail and within five
(5) business days after the event, and in any event in sufficient time to allow
the responsible Party to comply with any and all regulatory requirements imposed
upon it in any country; provided, however, that notice of any complaint
involving a field alert report shall be transmitted within one (1) business
day.
	Records of Revenues and Expenses.

	Maintenance and Audit. Each Party will maintain
complete and accurate records which are relevant to revenues, costs, expenses
and payments under this Agreement and such records shall be open during
reasonable business hours for a period of five (5) years from creation of
individual records for examination at the other Party's expense and not more
often than once each year by a certified public accountant selected by the other
Party for the sole purpose of verifying for the inspecting Party the correctness
of calculations and classifications of such revenues, costs, expenses or
payments made under this Agreement. In the absence of material discrepancies (in
excess of [ * ] of the line item being audited) in any request for
reimbursement resulting from such audit, the accounting expense shall be paid by
the Party requesting the audit. If material discrepancies do result, the audited
Party shall bear the accounting expense. Any records or accounting information
received from the other Party shall be Confidential Information for purposes of
Article 12. Results of any such audit shall be provided to both Parties,
subject to Article 12.
	Audit Disagreement.
If there is a dispute between the Parties following any audit performed
pursuant to Section 15.3.1, either Party may refer the issue (an "Audit
Disagreement") to an independent certified public accountant for resolution. In
the event an Audit Disagreement is submitted for resolution by either Party, the
Parties shall comply with the following procedures:

(a)The Party submitting the Audit Disagreement for resolution
shall provide written notice to the other Party that it is invoking the
procedures of this Section 15.4.2.

(b)Within thirty (30) business days of the giving of such notice,
the Parties shall jointly select a recognized international accounting firm to
act as an independent expert to resolve such Audit Disagreement. 

(c)The Audit Disagreement submitted for resolution shall be
described by the Parties to the independent expert, which description may be in
written form, within ten (10) business days of the selection of such independent
expert. 

(d)The independent expert shall render a decision on the matter as
soon as practicable. 

(e)All fees and expenses of the independent expert, including any
Third Party support staff or other costs incurred with respect to carrying out
the procedures specified at the direction of the independent expert in
connection with such Audit Disagreement, shall be borne by the losing Party,
unless the decision of the independent expert allocates such fees and expenses
differently. 

	Publicity Review. Subject to the further provisions
of this Section, no Party shall originate any written publicity, news release,
or other public announcement relating to this Agreement or to performance
hereunder or the existence of an arrangement between the Parties (collectively,
"Written Disclosure"), without the prior review and written approval of the
other, which approval shall be conducted promptly and not be unreasonably
withheld. Notwithstanding the foregoing provisions of this Section 15.4, any
Party may make any public Written Disclosure it believes in good faith based
upon the advice of counsel is required by applicable law or any listing or
trading agreement concerning its publicly traded securities, provided that prior
to making such Written Disclosure, the disclosing Party shall provide the other
Party with a copy of the materials proposed to be disclosed and provide the
receiving Party with an opportunity to promptly review the proposed Written
Disclosure. To the extent that the receiving Party reasonably requests that any
information in the materials proposed to be disclosed be deleted, the disclosing
Party shall use reasonable efforts to request confidential treatment of any such
information that, pursuant to Rule 406 of the Securities Act of 1933 or Rule
24b-2 of the Securities Exchange Act of 1934, as applicable (or any other
applicable regulation relating to the confidential treatment of information),
may be redacted from the publicly-filed version of such disclosed materials. The
terms of this Agreement may also be disclosed to (i) government agencies where
required by law, provided that the Party making such disclosure seeks a
protective order or confidential treatment of this Agreement to the extent
allowed under law, or (ii) Third Parties with the prior written consent of the
other Party, which consent shall not be unreasonably withheld or delayed, so
long as such disclosure is made under a binder of confidentiality and so long as
highly sensitive terms and conditions such as financial terms are extracted from
the Agreement or not disclosed upon the request of the other Party, or (iii)
existing or potential investors, acquirers, or merger partners.

	Use of Names. Neither
Party shall use the name of the other Party in relation to this transaction in
any public announcement, press release or other public document without the
written consent of such other Party, which consent shall not be unreasonably
withheld or delayed; provided, however, that either Party may use the name of
the other Party in any document filed with any regulatory agency or authority,
including the FDA and the Securities and Exchange Commission.
	Term and
Termination

	Term. This Agreement
shall commence as of the Effective Date and, unless sooner terminated as
provided herein, shall continue in effect until the later of ten (10) years or
the date on which the Parties are no longer developing, marketing or selling in
any country a Licensed Product. 
	Termination for Material Breach

	Notice. Subject to the
provisions of this Section 16.2, if either Party (the "Breaching Party") shall
have committed a material breach and such material breach shall remain uncured
and shall be continuing for a period of ninety (90) days following receipt of
notice thereof by the other Party (the "Non-Breaching Party"), then, in addition
to any and all other rights and remedies that may be available, the Non-
Breaching Party shall have the right to terminate this Agreement effective upon
the expiration of such ninety (90) day period. Any such notice of alleged
material breach by the Non-Breaching Party shall include a reasonably detailed
description of all relevant facts and circumstances demonstrating, supporting
and/or relating to each such alleged material breach by the Breaching Party. The
Parties agree that any Supply Problem or other failures to supply Licensed
Product shall be governed by Section 11.14 and shall not be a breach governed by
this Section 16.2. 
	Defense to Breach. If
the Breaching Party, upon written notice delivered to the Non-Breaching Party
prior to the expiration of such ninety (90) day period, shall assert in good
faith that any such alleged material breach described in the Non-Breaching
Party's notice, whether in payment of moneys or otherwise, was not a material
breach, or was excused by reason of material failure of performance by the other
Party or Third Parties or by reason of Force Majeure (as defined in Section
19.3), or shall otherwise in good faith dispute such alleged material breach,
then the Parties shall continue to perform under this Agreement, subject to all
of its terms and conditions, and the matter shall be resolved pursuant to the
provisions of Article 18. In such event, the Non-Breaching Party shall not be
entitled to terminate this Agreement pursuant to this Section 16.2 unless and
until (i) it shall be determined pursuant to Section 18.2 that the Breaching
Party has committed a material breach and (ii) such material breach has not been
cured prior to such determination pursuant to Section 18.2. To the extent that
it is determined pursuant to a final and non-appealable decision under Section
18.2 that the Breaching Party did commit a material breach and failed to cure
the same within the period provided for in clause (ii) above, then the Non-
Breaching Party may immediately terminate this Agreement and, in addition to all
damages determined pursuant to the provisions of Section 18.2 to be due and
owing from the Breaching Party to the Non-Breaching Party under this Agreement,
the Breaching Party shall be liable for the Non-Breaching Party's reasonable
attorney's fees incurred in connection with resolving such matter pursuant to
Section 18.2. 

	Effect of Termination. Except where expressly
provided for otherwise in this Agreement, termination of this Agreement shall
not relieve the Parties hereto of any liability, including any obligation to
make payments hereunder, which accrued hereunder prior to the effective date of
such termination, nor preclude any Party from pursuing all rights and remedies
it may have hereunder or at law or in equity with respect to any breach of this
Agreement nor prejudice any Party's right to obtain performance of any
obligation.
	Voluntary Termination.
Abgenix or SangStat may terminate this Agreement on a product by product basis,
with or without cause, at any time effective upon six (6) months notice to the
Steering Committee, and following the first Regulatory Approval, upon twelve
(12) months notice to the Steering Committee. In the event of such voluntary
termination, the provisions of Section 16.5 shall
apply.
	Effect of Voluntary
Termination

	Continuing Obligations.
In the event that either party terminates this Agreement pursuant to
Section 16.4, each party shall continue to be obligated to perform all of
its obligations under this Agreement, including its obligation to pay
Development Expenses, for at least six (6) months after the Steering Committee
receives such notice. Consistent with the foregoing, the terminating Party shall
be obligated to share in the Development Expenses incurred or anticipated in the
Development Plan and Budget in effect on the effective date of such termination,
(including without limitation the obligation to pay its share of the costs of
completing clinical trials for which one or more clinical trial agreements have
been executed by a Party or Parties and a Third Party), for a period of six (6)
months after providing the notice of termination pursuant to Section 16.4.)
Without limiting the foregoing, if SangStat terminates this Agreement after
first Regulatory Approval of Licensed Products, SangStat shall continue to
Commercialize Licensed Products (and to transfer all such sales responsibility,
and all documentation and Information relating thereto to Abgenix in an orderly
manner so that Abgenix may (if it so elects) undertake the promotion of such
Licensed Product in such country) until the earlier of (i) the expiration of
such twelve month period or (ii) the date upon which Abgenix or Abgenix's
designated distributor commences promotion and sales of Licensed Products. If
Abgenix terminates this Agreement after first Regulatory Approval of Licensed
Products, Abgenix shall continue to supply SangStat with Licensed Product in
accordance with Article 11, and shall cooperate with SangStat to transfer the
manufacturing and supply of Licensed Product to SangStat or a Third Party
manufacturer until the date upon which SangStat or SangStat's designated
manufacturer has been approved by the applicable Regulatory Authorities to
manufacture Licensed Products. 
	Abgenix Voluntary
Termination License. If Abgenix voluntarily terminates this Agreement
pursuant to Section 16.4, Abgenix shall grant SangStat an exclusive worldwide
license under the Abgenix' interest in the Antibody Patents and Project Rights,
solely to the extent necessary to enable SangStat to continue the development,
use, manufacture, sale and import of Licensed Products (the "Abgenix
Voluntary Termination License") Such Abgenix Voluntary Termination License
shall contain the royalty provisions described in Exhibit C, and such other
terms and conditions as are customary for similar types of transactions. Abgenix
shall assign its entire right, title and interest in and to the Trademarks to
SangStat. Abgenix shall ensure that all Drug Approval Applications and
Regulatory Approvals related to Licensed Products are transferred to SangStat,
and shall make all reasonable efforts to transfer to SangStat all rights and
Information needed for Development and Commercialization of the Licensed Product
by SangStat. Incident to the foregoing, Abgenix shall take such other actions
and execute such other instruments, assignments and documents as may be
necessary to effect such transfer of rights hereunder to SangStat. Further, all
licenses and rights to SangStat Rights and SangStat's interest in the Project
Rights granted to Abgenix by SangStat hereunder shall terminate. In no event
shall Abgenix have any further development or other obligations with respect to
a Licensed Product which is the subject to the Abgenix Voluntary Termination
License following termination of this Agreement.
	SangStat Voluntary Termination License. If SangStat
voluntarily terminates this Agreement pursuant to Section 16.4, SangStat shall
grant Abgenix an exclusive worldwide license under the SangStat Rights and
SangStat's interest in the Project Rights, solely to the extent necessary to
enable Abgenix to continue with the development, use, manufacture, sale, import
and export of Licensed Products (the "SangStat Voluntary Termination
License"). Such SangStat Voluntary Termination License shall contain the
royalty provisions described in Exhibit C, and such other terms and conditions
that are customary for similar types of transactions. SangStat shall assign its
entire right, title and interest in and to the Trademarks to Abgenix. SangStat
shall ensure that all INDs and Drug Approval Applications and Regulatory
Approvals related to Licensed Products are transferred to Abgenix, and shall
make all reasonable efforts to transfer to Abgenix all rights and Information
needed for Development and Commercialization of the Licensed Product by Abgenix.
Incident to the foregoing, SangStat shall take such other actions and execute
such other instruments, assignments and documents as may be necessary to effect
such transfer of rights hereunder to Abgenix. Further, all licenses and rights
to Antibody Rights and Abgenix Know-How granted to SangStat by Abgenix hereunder
shall terminate. In no event shall SangStat have any further development
or other obligations with respect to a Licensed Product which is the subject to
the SangStat Voluntary Termination License following termination of this
Agreement.
	Voluntary Termination Licenses. Prior to (or as soon
as possible after) the effective date of voluntary termination by either Party,
the Parties shall enter into definitive agreements for the ABX Voluntary
Termination License or the SangStat Voluntary Termination License, as the case
may be. Such definitive agreement shall contain the standard agreement
provisions set forth in Exhibit C, and shall be subject to the provisions below
regarding the royalty and payment obligations of the non-terminating
Party. 

(a)Voluntary Termination Before Regulatory Approval. If
SangStat terminates this Agreement before Regulatory Approval of the Licensed
Product, in consideration of the SangStat Voluntary Termination License, Abgenix
will pay to SangStat a royalty of [ * ] of Royalty-Bearing
Sales by Abgenix, its Affiliates and sublicensees, but only until such time as
SangStat has been reimbursed for its share of Development Costs incurred
hereunder, at which time the SangStat Voluntary Termination License granted to
Abgenix by SangStat shall thereafter be payment and royalty free. If Abgenix
terminates this Agreement before Regulatory Approval of the Licensed Product, in
consideration of the Abgenix Voluntary Termination License, SangStat will pay to
Abgenix a royalty of [ * ] of worldwide Royalty-Bearing Sales by
SangStat, its Affiliates and sublicensees.

(b) Voluntary Termination After Regulatory Approval.
If SangStat terminates this Agreement after Regulatory Approval of the
Licensed Product, in consideration of the SangStat Voluntary Termination
License, Abgenix shall pay to SangStat a royalty equal to
[  *  ] of the Product Profits generated
by Abgenix from the sale of Licensed Product by Abgenix, its Affiliates and
sublicensees. If Abgenix terminates this Agreement after Regulatory Approval of
the Licensed Product, in consideration of the Abgenix Voluntary Termination
License, SangStat shall (a) pay to Abgenix a royalty equal to [ * ] of the
Product Profits generated by SangStat, its Affiliates and sublicensees, and (b)
continue to perform all of its obligations under Section 4.9.1 herein with
respect to the reimbursement of development costs incurred by Abgenix.

	Surviving Rights. The rights and obligations set
forth in this Agreement shall extend beyond the term or termination of the
Agreement only to the extent expressly provided for herein. The following
Articles and Sections shall survive expiration or termination of this Agreement:
Sections 5.2.2, 5.8, 5.9, 7.2, 0, 10.6, 10.7, 15.3, 16.3, 16.5, 16.6, 16.7,
19.9, 19.10, 19.11, and 19.13, and Articles 6, 12, 14, 17, and 18.
Further, SangStat's obligations under Section 4.9.1 shall survive any
voluntary termination by SangStat following the first Regulatory Approval in
accordance with Section 16.5.4(b).
	Accrued Rights, Surviving Obligations. Termination,
relinquishment or expiration of the Agreement for any reason shall be without
prejudice to any rights that shall have accrued to the benefit of either Party
prior to such termination, relinquishment or expiration, including damages
arising from any breach hereunder. Such termination, relinquishment or
expiration shall not relieve either Party from obligations that are expressly
indicated to survive termination or expiration of the
Agreement.
	Product Liability

	Actions Based on Product
Liability. Except as provided in Section 17.2 below, if a Third Party brings
a claim, suit or action against either Party alleging personal or property
damage or injury (a "Product Liability Suit") based on use or exposure to
a Licensed Product, then SangStat shall defend against such Product Liability
Suit and shall indemnify Abgenix against all liability resulting therefrom, and
the actual costs and expenses of all such defense and of any amounts payable in
any judgment based thereon or settlement thereof shall be Allowable
Expenses. 
	Indemnification for
Licensed Products

	Each Party hereby agrees
to save, defend and hold the other Party and its agents and employees harmless
from and against any and all suits, claims, actions, demands, liabilities,
expenses and/or loss, including reasonable legal expense and attorneys' fees
(collectively, "Losses"), resulting directly or indirectly from the
manufacture, use, handling, storage, sale or other disposition of Licensed
Products by the indemnifying Party, its agents or sublicensees, but only to the
extent such Losses result from the gross negligence or willful misconduct of the
indemnifying Party or its employees and agents, and excluding any such Losses to
the extent caused or resulting from the negligence or willful misconduct of the
Party seeking indemnification.
	In the event that a Party is
seeking indemnification under Section 17.2.1, it shall inform the other Party of
a claim as soon as reasonably practicable after it receives notice of the claim,
shall permit the indemnifying Party to assume direction and control of the
defense of the claim (including the right to settle the claim solely for
monetary consideration), and shall cooperate as requested in the defense of the
claim.

	Dispute
Resolution

	Disputes. The Parties recognize that disputes as to
certain matters may from time to time arise during the term of this Agreement,
which relate to either Party's rights and/or obligations hereunder or
thereunder. It is the objective of the Parties to establish procedures to
facilitate the resolution of disputes arising under this Agreement in an
expedient manner by mutual cooperation. To accomplish this objective, the
Parties agree to follow the procedures set forth in this Article 18 if and when
a dispute arises under this Agreement.

Unless otherwise specifically recited in this Agreement, disputes among
members of the Clinical Development Committee will be resolved by referral first
to the Steering Committee. If the Steering Committee is unable to resolve such a
dispute within thirty (30) days of being requested by a Party to resolve a
Clinical Development Committee or a Steering Committee dispute, any Party may,
by written notice to the other, have such dispute referred to their respective
executive officers designated below or their successors, for attempted
resolution by good faith negotiations within thirty (30) days after such notice
is received. Said designated officers are as follows:

For SangStat:President

For Abgenix:President

In the event the designated executive officers are not able to resolve such
dispute within thirty (30) days, either Party may, by written notice to the
other, at any time after such thirty (30) day period seek to resolve the dispute
through the means provided in Section 18.2; provided, however, that if the
issue relates to manufacturing, Abgenix's President shall decide in his or her
sole discretion and if the issue relates to Commercialization, SangStat's
President shall decide in his or her sole discretion and in both cases the
mediation provisions of Section 18.2 shall not apply.

	Mediation and Arbitration.
The Parties agree that any dispute, controversy or claim (except as to
issues relating to intellectual property owned in whole or in part by SangStat
or Abgenix or any equitable claim) arising out of or relating to this Agreement,
or the breach, termination, or invalidity thereof, may be resolved through
mediation and, if both Parties mutually agree, binding arbitration. If a dispute
arises between the Parties, and if such dispute cannot be resolved pursuant to
Section 18.1 above, and the dispute relates to Development issues, the Parties
may choose to select a third party individual who consults in the area of
clinical development to mediate the dispute. If a dispute arises between the
Parties, and if such dispute cannot be resolved pursuant to Section 18.1 above
or if the parties elect not to use a mediator with respect to Development issues
or if such mediation did not succeed, the Parties agree to try in good faith to
resolve such dispute by non-binding mediation administered by the American
Arbitration Association in accordance with its Commercial Mediation Rules. If
such dispute is not resolved by non-binding mediation, the parties may submit
the dispute to a court of competent jurisdiction, or, may submit the matter to
binding arbitration, but only if both parties mutually agree to proceed with
arbitration. Such mediation or arbitration shall be held in Santa Clara County,
California. Notwithstanding the foregoing, disputes regarding the validity,
scope or enforceability of patents shall be submitted to a court of competent
jurisdiction in the country where such patent has
issued.
	Miscellaneous

	Assignment

	Abgenix or SangStat may
assign any of its rights or obligations under this Agreement in any country to
any of its Affiliates; provided, however, that such assignment shall not relieve
Abgenix or SangStat of its responsibilities for performance of its obligations
under this Agreement, and further provided that if a proposed assignment would
have an adverse financial impact upon the other party (e.g., by reason of
changed tax treatment of payments due under this Agreement), such assignment
shall be subject to the other party's prior written consent.
	Either Party may assign its
rights or obligations under this Agreement (1) to a non-Affiliate in connection
with a merger or similar reorganization or the sale of all or substantially all
of its assets or the sale of all or substantially all of its pharmaceutical
and/or healthcare assets to such non-Affiliate or (2) otherwise with the prior
written consent of the other Party. This Agreement shall survive any such merger
or reorganization of either Party with or into, or such sale of assets to,
another party and no consent for such merger, reorganization or sale shall be
required hereunder; provided, that in the event of such merger, reorganization
or sale, no intellectual property rights of the acquiring corporation shall be
included in the technology licensed hereunder.
	This Agreement shall be
binding upon and inure to the benefit of the successors and permitted assigns of
the Parties. Any assignment not in accordance with this Agreement shall be
void.

	Consents Not Unreasonably
Withheld. Whenever provision is made in this Agreement for either Party to
secure the consent or approval of the other, that consent or approval shall not
unreasonably be withheld, and whenever in this Agreement provision is made for
one Party to object to or disapprove a matter, such objection or disapproval
shall not unreasonably be exercised.
	Force Majeure. Neither Party shall lose any rights
hereunder or be liable to the other Party for damages or losses on account of
failure of performance by the defaulting Party if the failure is occasioned by
government action, war, fire, earthquake, explosion, flood, strike, lockout,
embargo, act of God, or any other similar cause beyond the control of the
defaulting Party, provided that the Party claiming force majeure has exerted all
reasonable efforts to avoid or remedy such force majeure.
	Further Actions. Each
Party agrees to execute, acknowledge and deliver such further instruments, and
to do all such other acts, as may be necessary or appropriate in order to carry
out the purposes and intent of this Agreement.
	No Trademark Rights.
Except as otherwise provided herein, no right, express or implied, is granted by
the Agreement to use in any manner the name SangStat, Abgenix or any other trade
name or trademark of the other Party or its Affiliates in connection with the
performance of the Agreement.
	Notices. All notices
hereunder shall be in writing and shall be deemed given if delivered personally
or by facsimile transmission (receipt verified), telexed, mailed by registered
or certified mail (return receipt requested), postage prepaid, or sent by
express courier service, to the Parties at the following addresses (or at such
other address for a Party as shall be specified by like notice; provided, that
notices of a change of address shall be effective only upon receipt
thereof).

If to Abgenix, addressed to:

Abgenix, Inc.

7601 Dumbarton Circle

Fremont, CA 94555

Attention: President

Telephone: (510) 608-6500

Facsimile: (510) 608-6511

With a copy to:

Abgenix, Inc.
Attn: General Counsel

7601 Dumbarton Circle 

Fremont, California 94555

If to SangStat, addressed to:

SangStat Medical Corporation

President

6300 Dumbarton Circle

Fremont, California 94555 

Telephone:510-789-4324

Facsimile:510-789-4424

With a copy to:

SangStat Medical Corporation

Attn: General Counsel

6300 Dumbarton Circle 

Fremont, California 94555

Telephone:510-789-4393

Facsimile:510-789-4493

	Waiver. Except as
specifically provided for herein, the waiver from time to time by either of the
Parties of any of their rights or their failure to exercise any remedy shall not
operate or be construed as a continuing waiver of same or of any other of such
Party's rights or remedies provided in this Agreement.
	Severability. If any
term, covenant or condition of this Agreement or the application thereof to any
Party or circumstance shall, to any extent, be held to be invalid or
unenforceable, then (i) the remainder of this Agreement, or the application of
such term, covenant or condition to Parties or circumstances other than those as
to which it is held invalid or unenforceable, shall not be affected thereby and
each term, covenant or condition of this Agreement shall be valid and be
enforced to the fullest extent permitted by law; and (ii) the Parties hereto
covenant and agree to renegotiate any such term, covenant or application thereof
in good faith in order to provide a reasonably acceptable alternative to the
term, covenant or condition of this Agreement or the application thereof that is
invalid or unenforceable, it being the intent of the Parties that the basic
purposes of this Agreement are to be effectuated.
	Ambiguities. Ambiguities, if any, in this Agreement
shall not be construed against any Party, irrespective of which Party may be
deemed to have authored the ambiguous provision.
	Governing Law. This Agreement shall be governed by
and interpreted under the laws of the State of California as applied to
contracts entered into and performed entirely in California by California
residents.
	Headings. The section and paragraph headings
contained herein are for the purposes of convenience only and are not intended
to define or limit the contents of said sections or paragraphs.
	Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.
	Entire Agreement. This Agreement including all
Exhibits attached hereto, and all documents delivered concurrently herewith, set
forth all the covenants, promises, agreements, warranties, representations,
conditions and understandings between the Parties hereto and supersede and
terminate all prior agreements and understanding between the Parties. There are
no covenants, promises, agreements, warranties, representations, conditions or
understandings, either oral or written, between the Parties other than as set
forth herein. No subsequent alteration, amendment, change or addition to this
Agreement shall be binding upon the Parties hereto unless reduced to writing and
signed by the respective authorized officers of the Parties.
	Tangible Property.
Any tangible personal property deliverable under this Agreement by Abgenix to
SangStat shall be delivered to a SangStat Facility outside California (as from
time to time designated by SangStat). Any sales or use taxes imposed on such
transfers shall be a Development Expense. Each Party shall use reasonable good
faith efforts to reduce or eliminate any sales or use taxes that might arise
under this Agreement, including the delivery of any required resale
certificates.

In Witness Whereof, the Parties have executed this Agreement in
duplicate originals by their proper officers as of the Effective Date.

	
Abgenix, Inc.
	
SangStat Medical Corporation

	
By:
	
By:

	
Title:
	
Title:

___________________

* This information has been omitted based on a request for confidential treatment.  The
non-public information has been filed separately with the SEC.

Co-Development,
Supply and License Agreement

 

Abgenix, Inc.

and

SangStat Medical Corporation

 

August 8, 2000

Exhibit A

ANTIBODY PATENTS 

EXHIBIT B

Financial Planning,
Accounting Policies and Procedures

Principles of Reporting; Allowable Expenses

The presentation of results of operations of the Parties in the
Territory will be based on each Party's respective financial information
presented separately and on a consolidated basis in the reporting format
depicted as follows:

SangStatAbgenixTotal

[ * ]

It is the intention of the Parties that the interpretation of these
definitions will be consistent with generally accepted accounting principles in
the U.S. GAAP. Further, it is the intention of the Parties that these terms be
interpreted in a manner consistent with the obligation of the Parties to
maximize and optimize Product Profit.

If necessary, a Party will make the appropriate adjustments to the financial
information it supplies under the Agreement to conform to the above format of
reporting results of operation.

 

Frequency of Reporting

The fiscal year of the Collaboration will be a calendar year.

Unless the schedule of such reporting is altered pursuant to an agreement
between the financial representatives from the Parties, reporting by each Party
for the Collaboration revenues and expenses will be performed as follows:

Reporting Event               Frequency       Timing of Submission
-------------------------    ------------    ---------------------------------
Actuals - Net Sales             Monthly         5 days

Actuals - Product profit        Quarterly       30 days

Forecasts                       Quarterly       15 days prior to Quarter End
(rest of year - by month)

Preliminary Budgets          Annually        October 22
(one year - by month)

Final Budgets                Annually        November 15
(one year - by month)

Long Range Plan              Annually        October 22
(current year plus 3 years)

Reports of actual results compared to budget will be made to the Finance
Committee described in Section 2.5 (the "Finance Committee") unless otherwise
determined by the Steering Committee. After approval by the Finance Committee as
to amounts, the Finance Committee will forward the report to the Steering
Committee for its approval. Spending variances from the total overall budgets,
and significant expense variances in budget line items, will only be included in
calculation of Product Profits and Losses when approved by the Finance Committee
and the Steering Committee.

SangStat will be responsible for the preparation of consolidated reporting of
the Collaboration (including Product Profit or Loss), calculation of the
profit/loss sharing and determination of the cash settlement. SangStat will
provide the financial representatives from each Party within fifteen (15)
working days of the submission date shown above, a statement showing the
consolidated results and calculations of the Product Profit or Loss sharing and
cash settlement required in a format agreed to by the Parties.

On a monthly basis, each Party selling Licensed Product will supply the other
with each month's Gross Sales and Net Sales of Licensed Products in units, local
currency and U.S. dollars ( (using the average foreign exchange rate used by
each Party for that month's transactions in accordance with US GAAP)) by
country in the Territory according to such Party's sales reporting system, which
shall be consistent with the Financial Planning, Accounting and Reporting
Procedures. Each such report shall be provided as early as possible, but no
later than five (5) working days after the last day of the month in question,
and shall separately provide monthly, quarterly and year-to-date cumulative
figures.

The financial representatives from the Parties will meet as appropriate but
at least quarterly to review the following:

-actual results

-forecasts

-budgets

-inventory levels

-Sales Returns and Allowances

-other financial matters, including each Party's methodologies for
charging and allocating costs. 

___________________

* This information has been omitted based on a request for confidential treatment.  The
non-public information has been filed separately with the SEC.

EXHIBIT C

VOLUNTARY TERMINATION LICENSE TERMS

The definitive agreements conveying the ABX Voluntary Termination License
or SangStat Voluntary Termination License shall contain the following terms and
conditions with respect to royalty payments to be made by one Party to the other
Party:

(a)Date of Sale. The sales of Licensed Products shall be deemed to occur
on the earlier of: (i) the date the Licensed Product is shipped; or (ii) the
date of the invoice to the purchaser of the Licensed Product.

(b)Royalties. Royalties shall be paid on Royalty-Bearing Sales (or
in the case of voluntary termination after Regulatory Approval, on
[  *  ] of Product Profit) of
Licensed Product sold by the licensee Party, its Affiliates and sublicensees in
each calendar quarter, on a country-by-country basis, in the countries in which
the manufacture, use, offer for sale, sale or importation of such Licensed
Product by a Third Party would infringe a valid claim of an issued patent within
Patent Rights covering Licensed Product. 

(c)One Royalty. The obligation to pay royalties under the License
Agreement shall be imposed only once with respect to the same unit of Licensed
Product, at the highest royalty rate applicable, regardless of the number of
patents and patent applications pertaining thereto.

(d)Royalty Payments. Royalty payments shall be made to the
licensor Party or its designee quarterly within sixty (60) days following the
end of each calendar quarter for which royalties are due. Each royalty payment
shall be accompanied by a report, described in subsection (j) below, summarizing
the Royalty-Bearing Sales during the relevant calendar quarter. All royalty
payments not made when due shall bear interest, calculated from the date such
payment was due, at the rate of two percent (2%) over the prime rate of interest
as published in the weekly Federal Reserve H.15 Bulletin, or any successor
bulletin thereto.

(e)Term of Royalty Obligations. The licensee Party shall pay
royalties to the licensor Party hereunder as to each Licensed Product in each
country worldwide for the later of: (i) the expiration of the last to expire of
any issued patent within Patent Rights that covers such Licensed Product in such
country; or (ii) ten (10) years from the date of First Commercial Sale of such
Licensed Product in such country following Regulatory Approval. Upon expiration
of the royalty term for a Licensed Product in a country as described above, the
licensee Party shall thereafter have an exclusive, paid-up irrevocable license
to make, use, sell, offer for sale, have sold and import such Licensed Product
in that country.

(f)Mode of Payment. All payments due shall be made in U.S.
dollars via wire transfer of immediately available funds, or by such other
commercially reasonable means as may be designated by the licensor Party, and
shall be made where directed by the licensor Party from time to time. Royalty
payments due on Royalty-Bearing Sales in countries or jurisdictions outside the
U.S. shall be made in U.S. dollars, after being converted by the licensee Party
into U.S. dollars at the rate of exchange for such country's or jurisdiction's
currency in U.S. dollars as listed in The Wall Street Journal for the
last business day of the calendar quarter in which such sales were made.

(g)Taxes. Royalty payments shall be free and clear of any
taxes, duties, levies, fees or charges, except for withholding taxes (to the
extent applicable). The licensee Party shall make any withholding payments due
on behalf of the licensor Party and shall promptly provide the licensor Party
with copies of any tax certificate or other documentation evidencing such
withholding as sufficient to satisfy the requirements of the U.S. Internal
Revenue Service related to any application by the licensor Party for a foreign
tax credit for such payment.

(h)Blocked Currency. In each country where the local currency
is blocked and cannot be removed from the country, royalties shall continue to
be accrued in such country and Royalty-Bearing Sales in such country shall
continue to be reported, but such royalties will not be paid until they may be
removed from the country. At such time as the licensee Party is able to remove
currency from such country it shall also remove and pay the royalties accrued on
the licensor Party's behalf.

(i)Records. Any Party making royalty payments under the License
Agreement, and its Affiliates and sublicensees, shall keep full, true and
accurate books of account containing all particulars which may be necessary for
the purpose of showing Royalty-Bearing Sales. Such books of account shall be
kept at the principal place of business of such Party, its Affiliates or
sublicensees, as the case may be. Such books and the supporting data shall be
open at all reasonable times, for two (2) calendar years following the end of
the calendar year to which they pertain (and access shall not be denied
thereafter, if reasonably available), to the inspection of an independent public
accountant selected by the reviewing Party and reasonably acceptable to the
other Party for the purpose of verifying Royalty-Bearing Sales under the License
Agreement; subject to the provisions of subsection (k) below.

(j)Reports. Along with the royalty payments due under the License
Agreement, a Party making royalty payments hereunder shall deliver to the
receiving Party a true and accurate report, which sets forth such particulars of
the business conducted by the paying Party, its Affiliates and sublicensees
during such preceding calendar quarters as are pertinent to an accounting for
Royalty-Bearing Sales and deductible expenses. Such reports shall include at
least the following: (i) the total gross sales of Licensed Products ducts
occurring during that calendar quarter(s), (ii) the allowable deductions
therefrom, (iii) the total Royalty-Bearing Sales of Licensed Products occurring
during that calendar quarter(s) and (iv) the calculation of royalties, if any,
due thereon pursuant to the License Agreement.

(k)Auditing. At the request and expense of a Party
receiving payments under the License Agreement, the other Party (and its
Affiliates and sublicensees) shall permit an independent certified public
accountant selected by the reviewing Party and reasonably acceptable to the
other Party, to examine, not more than once in any four (4) consecutive calendar
quarters during the term of the License Agreement, but including one post-
termination audit, such books of account and records under subsection (i) above
as may be necessary to: (i) determine the correctness of any report or payment
made under the License Agreement; or (ii) obtain information as to any payment
or reimbursement due for any relevant period in the case of the paying Party's
failure to report, pay or reimburse pursuant to the License Agreement. Any such
accountant shall enter into a confidentiality agreement with both Parties
substantially similar to the confidentiality provisions of this Agreement
limiting the disclosure and use of such information to the purposes germane to
this subsection (k). Such examination shall be made at reasonable times during
regular business hours and upon at least twenty (20) business days' prior
notice. If such accountant reasonably determines that the royalties payable
under the License Agreement have been, for any calendar year in total,
understated by the paying Party, such paying Party shall immediately pay all
understated royalties, together with interest on such royalties from the date
accrued at a rate of two percent (2%) over the prime rate of interest as
published in the weekly Federal Reserve H.15 Bulletin, or any successor bulletin
thereto, and shall pay the reasonable costs of the examination if such paying
Party has understated such royalties by more than the greater of [ *  ]. 

(l)Payments to or Reports by Affiliates and Sublicensees. Any
payment required under any provision of the License Agreement to be made to
either Party or any report required to be made by any Party shall be made to or
by an Affiliate or sublicensee of that Party if designated by that Party as the
appropriate recipient or reporting entity.

"Royalty-Bearing Sales" shall mean the gross amount invoiced by a
licensee Party or its Affiliates or its permitted sublicensees for sales to an
unrelated Third Party of a Licensed Product in the Territory, less
(a) trade, cash and quantity discounts or rebates, (b) credits or
allowances given or made for rejection or return of, and for uncollectible
amounts on, previously sold products or for retroactive price reductions
(including rebates similar to Medicare), (c) taxes, duties or other
governmental charges levied on or measured by the billing amount, as adjusted
for rebates and refunds, (d) charges for freight and insurance directly
related to the distribution of a Licensed Product (to the extent not paid by the
Third Party customer), and (e) credits or allowances given or made for
wastage replacement, indigent patient and similar programs, to the extent
actually deducted from the gross amount invoiced. 

___________________

* This information has been omitted based on a request for confidential treatment.  The
non-public information has been filed separately with the SEC.

Exhibit D

Initial Development Outline for ABX-CBL

	Clinical. Abgenix will principally manage the Phase II/III
study (ABX-CB-9906). To ensure a smooth hand-over, Abgenix and SangStat will
share responsibility initially for the safety-oriented study which is currently
under development (ABX-0107); the responsibility for managing ABX-0107 will be
transitioned to SangStat when the Clinical Development Committee determines it
is appropriate to do so. Any additional studies would be managed by SangStat.

	Preclinical/Toxicology. Preclinical, pharmacology, and toxicology
activities will be a shared responsibility. Specific assignments will be
determined by the Clinical Development Committee.

	Process Development, Manufacturing and other CMC Activities. Abgenix
will continue to manage these activities, which include scale-up and validation
of the process selected by Clinical Development Committee.

	Regulatory. The IND holder will manage the regulatory activities, such
as preparation of updates and amendments to the IND and preparation of the Drug
Approval Application. To ensure a smooth hand-over, Abgenix and SangStat will
share responsibility initially for the regulatory work. Specific assignments
will be determined by the Clinical Development Committee.

Table of Contents

1.Definitions
* 

2.Governance
*
2.1Steering Committee
*
2.1.1Formation of Steering Committee; Decision
Making*

2.1.2Meetings of the Steering
Committee*

2.1.3Functions and Powers of the Steering
Committee*

2.1.4Steering Committee Actions
*

2.1.5Limitations of Powers of the Steering
Committee*

2.2Clinical Development Committee
*
2.2.1Formation of Clinical Development
Committee; Decision Making*

2.2.2Clinical Development Committee
Meetings*

2.2.3Functions and Powers of the Clinical
Development Committee*

2.3Regulatory Liaison Representatives
*

2.4Manufacturing Governance
*

2.5Finance Committee
*
2.5.1Formation of Finance Committee; Decision
Making*

2.5.2Finance Committee Meetings
*

2.5.3Functions and Powers of the Finance
Committee*

2.5.4Intent
*

2.6Agendas
*

3.Licensing Fee; Milestone Payments
*
3.1Licensing Fee
*

3.2Milestone Payments
*

4.Development
*
4.1Clinical Development
Responsibilities*

4.2Right to Engage Third Parties
*

4.3Development Plans and Development
Budgets*
4.3.1Initial Development Outline
*

4.3.2Development Plan and Budget
*

4.3.3Annual Revisions to Development Plan and
Budget*

4.4Development Efforts; Compliance with
Regulatory Requirements*

4.5Development Milestones
*

4.6Drug Approval Applications
*
4.6.1Responsibility for Filing for Licensed
Product*

4.6.2If SangStat cannot be the Filing
Party*

4.7Access to Adverse Event Reporting
Information*

4.8Costs of Development
*
4.8.1Method
*

4.8.2Procedures
*

4.9Development Costs Incurred Prior to
January 1, 2000*
4.9.1ABX-CBL
*

4.9.2Licensed Products other than ABX-CBL
*

4.10Suspension and Termination of Clinical Trial
for Safety Reasons*
4.10.1Notification
*

4.10.2Assessment.
*

4.10.3Termination
*

4.10.4Alternative Approaches
*

4.11Development of Licensed Product for
Additional Indications*

5.Licenses
*
5.1Grant to SangStat
*

5.2Grant to Abgenix
*
5.2.1Agreement Term
*

5.2.2Post-Termination
*

5.3Assistance
*

5.4Access to Third Party Intellectual
Property*

5.5Bankruptcy
*

5.6Third Party Rights
*

5.7License Limitations
*

5.8No Implied Licenses.
*

5.9No Transfer of Title
*

6.Other CD147 Antibodies
*

7.Intellectual Property; Patent
Prosecution*
7.1Disclosure of New Intellectual
Property*

7.2Ownership
*

7.3Abgenix Patent Prosecution
Responsibilities*

7.4SangStat Patent Prosecution
Responsibility*
7.4.1SangStat Option to Prosecute
*

7.4.2SangStat Patent Discontinuance
Election*

7.4.3Abgenix Responsibility
*

7.5Costs
*

7.6Public Disclosure
*

7.7Notice of Certification
*

7.8Patent Term Extensions
*

7.9Trademarks
*
7.9.1Selection; License; Expenses
*

7.9.2Infringement of Trademarks
*

7.9.3Costs of Defense*

8.Third Party Patent Rights
*
8.1Notice
*

8.2Litigation
*

8.3Opposition to Third Party Patent
Rights*

9.Commercialization
*
9.1Commercialization
*

9.2Commercialization Plan; Commercialization
Budget*

9.3Commercialization Efforts
*

9.4Countries of Commercialization
*

9.5Pricing, Pricing Approvals and Product
Distribution*

9.6Adverse Event Reporting
*

9.7Product Recalls
*

10.Profit Sharing and Royalties
*
10.1Product Profits and Loss Sharing
*

10.2Development Cost Sharing
*

10.3Accounting and Payment
*

10.4Cost of Capital Allowance

10.5Start of Operations and Effective Accounting
Date Termination*

10.6Sales by Sublicensees
*

10.7Payment Currency
*

10.8Accounting
*
10.8.1
*

10.8.2
*

11.Manufacture and Supply
*
11.1Manufacture and Supply
*

11.2Third Party Manufacturing
Subcontractors*

11.3Process Development; Manufacturing
Approvals*

11.4Auditing Rights
*

11.5Regulatory Authority Inspections
*

11.6Forecasting
*
11.6.1Clinical Supply
*

11.6.2Commercial Supply
*

11.6.3Sales Forecasts and Facilities
Planning*

11.7Quality Testing
*

11.8Specifications
*

11.9Shipment of Licensed Products
*

11.10Warranties
*

11.11Acceptance
*

11.12Transfer Price for Clinical and Commercial
Supply*

11.13Shortage of Clinical Supply
*

11.14Alternative Manufacturing Site
*
11.14.1Identification
*

11.14.2Use of Alternative Manufacturing
Site*

12.Confidentiality
*
12.1Confidentiality; Exceptions
*

12.2Authorized Disclosure
*

12.3Survival
*

12.4Publications
*

13.Infringement By Third Persons
*
13.1Notice
*

13.2Prosecution of Actions Involving Licensed
Product*
13.2.1Abgenix Right
*

13.2.2SangStat Right
*

13.2.3Costs*

13.2.4SangStat Election
*

13.2.5Abgenix Election
*

13.2.6Disposition
*

13.2.7Allocation of Recoveries
*

14.Representations and Warranties
*
14.1Mutual
*
14.1.1Agreement
*

14.1.2No Conflict
*

14.1.3Debarrment
*

14.2Abgenix
*

14.3Performance by Affiliates
*

15.Information and Reports
*
15.1Information and Reports During Development
and Commercialization*

15.2Complaints*

15.3Records of Revenues and Expenses.
*
15.3.1Maintenance and Audit
*

15.3.2Audit Disagreement
*

15.4Publicity Review
*

15.5Use of Names
*

16.Term and Termination
*
16.1Term
*

16.2Termination for Material Breach
*
16.2.1Notice
*

16.2.2Defense to Breach
*

16.3Effect of Termination
*

16.4Voluntary Termination
*

16.5Effect of Voluntary Termination
*
16.5.1Continuing Obligations
*

16.5.2Abgenix Voluntary Termination
License*

16.5.3SangStat Voluntary Termination
License*

16.5.4Voluntary Termination Licenses
*

16.6Surviving Rights
*

16.7Accrued Rights, Surviving
Obligations*

17.Product Liability
*
17.1Actions Based on Product Liability
*

17.2Indemnification for Licensed
Products*
17.2.1
*

17.2.2
*

18.Dispute Resolution
*
18.1Disputes
*

18.2Mediation and Arbitration
*

19.Miscellaneous
*
19.1Assignment
*
19.1.1
*

19.1.2
*

19.1.3
*

19.2Consents Not Unreasonably Withheld
*

19.3Force Majeure
*

19.4Further Actions
*

19.5No Trademark Rights
*

19.6Notices
*

19.7Waiver
*

19.8Severability
*

19.9Ambiguities
*

19.10Governing Law
*

19.11Headings
*

19.12Counterparts
*

19.13Entire Agreement
*

19.14Tangible Property
*

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]