Document:

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                                                                   Exhibit 10.62

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

1/13/99

                   RESEARCH COLLABORATION AND OPTION AGREEMENT

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

                                  INTRODUCTION

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

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

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

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

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

                             Article 1. Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                          Article 2. The Collaboration

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

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

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

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

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

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

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

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

                            Article 3. Option Rights

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

                         Article 4. Payment Obligations

      4.1 In consideration of the rights granted to BD under this Agreement, BD
shall lend to Ontogeny the amount of [**], which loan shall be evidenced by a
[**] convertible subordinated Note issued by Ontogeny in favor of BD (the
"Note") pursuant to a note purchase agreement dated as of the Effective Date
(the "Note Purchase Agreement"). The Note shall be convertible into four
hundred thousand (400,000) shares of Series G Convertible Preferred Stock
("Series G Stock") of Ontogeny, in accordance with the Note Purchase Agreement
and the Note.

      4.2 Within thirty (30) days following the earlier of the end of the
Research Term or the successful completion of the Objective 2, BD shall purchase
from Ontogeny two hundred thousand (200,000) shares of convertible preferred
stock of Ontogeny at a price per share equal to Ten U.S. Dollars ($10.00) and
having the same rights as the Series G Stock with respect to voting rights,
liquidation and dividends, pursuant to a stock purchase agreement which
incorporates the substantive terms of the Note Purchase Agreement attached
hereto as Schedule B with the exception that the anti-dilution protection
provided shall be similar to that which Ontogeny is then providing to similar
corporate research partners. If a BD accounting issue arises in relation to this
purchase, the parties shall use reasonable efforts to execute an acceptable note
and note purchase agreement to accomplish such purchase.

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

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                       Article 5. Negation of Warranties

      5.1 NOTHING IN THIS AGREEMENT IS OR SHALL BE CONSTRUED AS

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

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

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

                               Article 6. Patents

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

                           Article 7. Confidentiality

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

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

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

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

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

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

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

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

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

                         Article 8. Term and Termination

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

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

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

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

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

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

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

                            Article 9. Miscellaneous

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

      9.2 Dispute Resolution.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ontogeny, Inc.                            Becton, Dickinson and Company

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

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                                    Exhibit A

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

                          INVENTION, NON-DISCLOSURE AND
                            NON-COMPETITION AGREEMENT

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

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

1.    Proprietary Information

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

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

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

                                     - 11 -
<PAGE>

2.    Developments

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

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

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

3.    Non-competition

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

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

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

                                     - 12 -
<PAGE>

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

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

4.    Non-Solicitation

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

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

5.    Other Agreements

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

6.    United States Government Obligations

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

7.    No Employment Contract

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

                                     - 13 -
<PAGE>

8.    Miscellaneous

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

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

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

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

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

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

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

                                     - 14 -
<PAGE>

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

Ontogeny, Inc.

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

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

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

BD Sponsored FTE                         Becton Dickinson and Company

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

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

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

                                     - 15 -
<PAGE>

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

                                   SCHEDULE A

                               Research Work Plan

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

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

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

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

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

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

Objective 1:

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

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

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

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

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

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

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

Objective 2:

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

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

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

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

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

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

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

                                     - 16 -
<PAGE>

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

Objective 3:

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

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

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

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

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

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

                                     - 17 -
<PAGE>

                                   APPENDIX A

                                OTHER AGREEMENTS:

                                     - 18 -<PAGE>

                                                                   Exhibit 10.65

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

                           EXCLUSIVE LICENSE AGREEMENT

      Effective as of November 2, 1998 ("Effective Date"), THE BOARD OF TRUSTEES
      OF THE LELAND STANFORD JUNIOR UNIVERSITY, a body having corporate powers
      under the laws of the State of California ("STANFORD"), JOHNS HOPKINS
      UNIVERSITY, a Maryland Corporation ("JHU") and Ontogeny, Inc., having a
      principal place of business at 45 Moulton Street, Cambridge, MA 02138
      ("LICENSEE"), agree as follows:

1.    BACKGROUND

1.1   STANFORD has an assignment of [**] from the laboratory of Dr. Roel Nusse,
      a Howard Hughes Medical Institute ("HHMI") investigator at STANFORD, as
      described in Stanford Docket S96-030 and Johns Hopkins University has an
      assignment of [**] from the laboratory of Dr. Jeremy Nathans, an HHMI
      investigator at JHU, as described in DM-3250, collectively referred to as
      "Invention", and any Licensed Patent, as hereinafter defined, which may
      issue to such Invention.

1.2   STANFORD and JHU desire to have the Invention perfected and marketed at
      the earliest possible time in order that products resulting therefrom may
      be available for public use and benefit.

1.3   LICENSEE desires a license under Invention and Licensed Patent to develop,
      manufacture, use, and sell Licensed Product in the field of use of human
      and veterinary therapeutics, drug discovery and diagnostics.

1.4   The Invention was made in the course of research supported by the Howard
      Hughes Medical Institute.

2.    DEFINITIONS

2.1   "Exclusive" means that, subject to Article 3, STANFORD or JHU shall not
      grant further licenses in the Licensed Territory in the Licensed Field of
      Use.

2.2   "Licensed Field of Use" means human and veterinary therapeutics, drug
      discovery and diagnostics.

2.3   "Licensed Materials" means proprietary materials of JHU or Stanford which
      are developed by JH or Stanford as a result of research concerning the
      Licensed Invention and identified in Appendix A hereto. Such Appendix to
      be periodically updated by reasonable mutual agreement and supplied to
      Licensee by Stanford and JHU.

2.4   "Licensed Patent" means U.S. Patent Application, Serial Number 832,340,
      filed April 11, 1997, and any divisions, continuations, and continuation
      in part patent applications (CIPs) which CIPs are directed to subject
      matter specifically described in the above patent application, and any
      foreign patent application or equivalent corresponding thereto
<PAGE>

      and any Letters patent or equivalent thereof issuing thereon or reissue,
      reexamination or extension thereof.

2.5   "Licensed Product" means any product or part thereof in the Licensed Field
      of Use, the manufacture, use, or sale of which:

      (a)   Is covered by a valid claim of an issued, unexpired Licensed Patent
            directed to the Invention in the country in which it is made, used
            or sold. A claim of an issued, unexpired Licensed Patent shall be
            presumed to be valid unless and until it has been held to be invalid
            by a final judgment of a court of competent jurisdiction from which
            no appeal can be or is taken; or

      (b)   Is covered by any claim being prosecuted in a pending application of
            Licensed Patent(s) in the country in which it is made, used or sold
            unless such claim has been pending in such application or an earlier
            application of Licensed Patent(s) for greater than 5 years; or

      (c)   Incorporates any of the Licensed Materials.

2.6   "Licensed Territory" means worldwide.

2.7   "Net Sales" means the gross revenue derived by LICENSEE from Licensed
      Product, less the following items but only insofar as they actually
      pertain to the disposition of such Licensed Product by LICENSEE, are
      included in such gross revenue, and are separately billed:

      (a)   Import, export, excise and sales taxes, and custom duties;

      (b)   Costs of installation at the place of use;

      (c)   Credit for returns, allowances, or trades.

      (d)   Costs of insurance, packing and transportation from the place of
            manufacture to the customer's premises or point of installation; and

      (e)   Customary trade, quantity or cash discounts actually allowed or
            taken. Where Licensed Products are not sold separately, but are sold
            in combination with or as parts of other products, hereinafter such
            combinations referred to as "a Combination Product" and the Licensed
            Product and each such other product being referred to as a Component
            Product", the Net Sales price to be used for the purpose of
            calculating royalties payable in respect of Combination Products
            must be determined by multiplying the Net Sales price of the
            Combination Product by the percentage value of the Licensed Product
            comprising a Component Product contained in the Combination Product,
            such percentage value being determined by dividing the current
            market value of the Licensed Product comprising a Component Product
            by a sum of the separate current market values of each of the
            Component Products which are contained in the Combination Product.
            The current market value of each of the Component Products must be
            for a quantity

                                     - 2 -
<PAGE>

            comparable to that contained in the Combination Product and of the
            same class, purity and potency. When no current market value is
            available for a Component Product, a reasonable hypothetical market
            value for such Component Product based upon the allocation of the
            same proportions of costs, reasonable overhead and profits (all of
            which must be determined on the basis of generally accepted
            accounting principles) as are or should be allocated to similar
            Component Products and having an ascertainable market value.

3.    GRANT

3.1   (a)   STANFORD and JHU hereby grants and LICENSEE hereby accepts a license
            in the Licensed Field of Use to make, use, and sell Licensed Product
            in the Licensed Territory and to use Invention and Licensed
            Materials.

      (b)   LICENSEE acknowledges that STANFORD and JHU have granted to HHMI a
            royalty-free, non-exclusive, non-transferable license with respect
            to the Invention, the Licensed Materials, and the Licensed Patents
            solely for HHMI's research and other noncommercial purposes.

3.2   Said license set forth in Section 3.1(a) above is Exclusive, including the
      right to sublicense pursuant to Article 12, in the Licensed Field of Use
      for a term commencing as of the Effective Date and ending, on a
      country-by-country basis, 12 years from the date of first commercial sale
      of a Licensed Product by LICENSEE or sublicensee(s) in such country.
      LICENSEE agrees to promptly inform STANFORD in writing of the date of
      first commercial sale. If three months prior to the expiration of the
      exclusive term, LICENSEE can demonstrate to STANFORD that it has and will
      continue to effectively exploit the Inventions, Licensed Patents and
      Licensed Materials under this Agreement, then the term of the exclusive
      rights granted may be extended, such extension not to be unreasonably
      withheld by STANFORD. Upon expiration of the exclusive term of the
      license, said license shall be nonexclusive until expiration of the last
      to expire of Licensed Patents.

3.3   STANFORD and JHU shall have the right to practice the Invention and use
      the Licensed Materials for their own research and other noncommercial
      purposes or in non-commercial research collaborations with third party
      academic or not-for-profit research institutions, including STANFORD's and
      JHU's right to make Licensed Materials available to colleagues at academic
      and not-for-profit institutions. Any Licensed Materials that are
      transferred to a third party academic or not-for-profit institution by
      STANFORD or JHU shall be sent by Ontogeny tinder an MTA. STANFORD and JHU
      shall have the right to publish any information included in Licensed
      Patents.

4.    DILIGENCE

4.1   As an inducement to STANFORD and to JHU to enter into this Agreement,
      LICENSEE agrees to use reasonable efforts and diligence to proceed with
      the development, manufacture, and sale or lease of Licensed Product and to
      diligently develop markets for

                                     - 3 -
<PAGE>

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

      the Licensed Product. Unless LICENSEE has a Licensed Product available for
      commercial sale prior to 2020, LICENSEE agrees that STANFORD may terminate
      this Agreement. Anytime after ten (10) years from the date of license,
      STANFORD may terminate this Agreement if ONTOGENY or a sublicensee has not
      sold a Licensed Product for a period of 1 year and is not demonstrably
      engaged in a research, development, manufacturing, marketing or licensing
      program, as appropriate, directed toward the development and
      commercialization of the licensed subject matter.

4.2   Progress Report - On or before September 1 of each year until LICENSEE
      markets a Licensed Product, STANFORD may request in writing that LICENSEE
      shall submit a written annual report to STANFORD covering the preceding
      year ending June 30, regarding the progress of LICENSEE toward commercial
      use of Licensed Product. Such report shall include, as a minimum,
      information sufficient to enable STANFORD and JHU to satisfy reporting
      requirements of HHMI and for STANFORD to ascertain progress by LICENSEE
      toward meeting the diligence requirements of this Article 4.

5.    ROYALTIES

5.1   In connection with a Letter of Intent signed by the parties on August 28,
      1998, LICENSEE has paid to STANFORD a noncreditable, nonrefundable license
      issue royalty of [**], which money was to be held in escrow until the
      execution of this Agreement.

5.2   Beginning October 1, 1999 and each October 1 thereafter, LICENSEE also
      shall pay to STANFORD the following yearly royalty:

            Anniversaries 1-5             [**]

            Anniversary 6 and thereafter  [**].

      If this agreement becomes non-exclusive, the yearly royalty shall be
      reduced to an amount equal to 1/n times the yearly royalty in this Section
      5.2 owed during the exclusive period of the Agreement where n equals that
      number of licensees of the Licensed Patent.

      Said yearly royalty payments are nonrefundable, but they are creditable
      against earned royalties to the extent provided in Paragraph 5.5.

5.3   In addition, LICENSEE shall pay STANFORD earned royalties on Net Sales as
      follows:

            Royalties on Net Sales by Ontogeny:

      (a)   If gene product claimed in Licensed Patent is the drug and Licensed
            Patent is the sole patent/patent application covering sale of such
            Licensed Product: [**]

      (b)   If Licensed Patent is the key, but not sole, patent/patent
            application having claim(s) covering sale of Licensed Product: [**]

      (c)   If patent claim of Licensed Patent covers sale of Licensed Product,
            but is not key patent/patent application covering sale of Licensed
            Product: [**]

                                     - 4 -
<PAGE>

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

      (d)   If product commercialized by LICENSEE is not covered by a claim of
            Licensed Patents, but such product is identified or discovered in
            material part through the use of a Licensed Product:

            on Net Sales in the United States up to [**]               [**]
            on Net Sales in the United States over [**]                [**]

      If this agreement becomes non-exclusive, the royalty shall be reduced to
      an amount equal to 1/n times the earned royalty in this Section 5.3 owed
      during the exclusive period of the Agreement where n equals the number of
      licensees of the Licensed Patent.

5.4   LICENSEE also agrees to make the following milestone payments for the
      first Licensed Product to attain such a milestone:

            Upon IND filing                                 [**]
            Initiation of Phase III clinical trials         [**]
            Upon NDA filing                                 [**]

      Said milestone payments are nonrefundable, but they are creditable against
      earned royalties in the manner set forth in Section 5.5.

5.5   Creditable payments under Sections 5.2 and 5.4 of this Agreement shall be
      an offset to LICENSEE against up to fifty percent (50%) of each earned
      royalty payment which LICENSEE would be required to pay pursuant to
      Paragraph 5.3 until the entire credit is exhausted.

5.6   If this Agreement is not terminated in accordance with other provisions
      hereof, LICENSEE's obligation to pay royalties hereunder shall continue
      for so long as LICENSEE, by its activities would, but for the license
      granted herein, infringe a valid claim of an unexpired Licensed Patent of
      STANFORD covering said activity or, with regard to a product set forth in
      Paragraph 5.3(d) which is not covered by a claim of Licensed Patent, until
      6 years after first commercial sale of a product set forth in Paragraph
      5.3 (d).

5.7   The royalty on sales in currencies other than U.S. Dollars shall be
      calculated using the appropriate foreign exchange rate for such currency
      quoted by the Bank of America (San Francisco) foreign exchange desk, on
      the close of business on the last banking day of each calendar quarter.
      Royalty payments to STANFORD shall be in U.S. Dollars. All non-U.S. taxes
      related to royalty payments shall be paid by LICENSEE and are not
      deductible from the payments due STANFORD. In the event that LICENSEE is
      required to withhold taxes imposed upon STANFORD for any payment under
      this Agreement by virtue of the statutes, laws, codes or governmental
      regulations of a foreign country in which Licensed Products are sold, then
      such payments will be made by LICENSEE without deduction from the payment
      due STANFORD. STANFORD shall assist LICENSEE as reasonably requested by
      LICENSEE and at LICENSEE's expense, in recovering such taxes to the extent
      possible tinder applicable tax laws and treaties.

                                     - 5 -
<PAGE>

5.8   Within forty-five (45) days after receipt of a statement from STANFORD,
      LICENSEE shall reimburse STANFORD for all costs incurred by STANFORD,
      prior to the Effective Date which shall not exceed $12,000, in connection
      with the preparation, filing, and prosecution of all patent applications
      and maintenance of patents corresponding to the Invention. After the
      Effective Date, and during the exclusive term of the license, LICENSEE
      will be responsible for the filing, prosecution and maintenance of the
      Licensed Patent (s) and the costs incurred by LICENSEE related to such
      filing, prosecution and maintenance. Licensee may use patent counsel of
      its own choosing, reasonably acceptable to STANFORD and JHU, provided that
      STANFORD and JHU shall be kept informed of and shall receive copies of all
      documentation and substantive actions pertaining to the filing,
      prosecution and maintenance of Licensed Patent(s). STANFORD and JHU shall
      have reasonable opportunities to participate in decision making and
      LICENSEE will use diligent efforts to incorporate STANFORD's and JHU's
      reasonable suggestions. If LICENSEE elects not to continue to seek or
      maintain patent protection on any Licensed Patent in any country during
      the exclusive term of the license, STANFORD and JHU shall have the right,
      at its expense, to procure, maintain and enforce in any country such
      Licensed Patent(s) and LICENSEE shall have no further rights under the
      Licensed Patent(s) in such country.

5.9   Only one royalty is due on each Licensed Product sold by LICENSEE
      regardless of whether its manufacture, use or sale are or shall be covered
      by more than one patent or patent application included in Licensed Patent
      (s) licensed under this Agreement, and no further royalties will be due
      for use of such Licensed Product by LICENSEES customers.

5.10  STANFORD and JHU shall work out a mutually agreeable arrangement for the
      sharing of revenue underneath this Exclusive License Agreement.

6.    ROYALTY REPORTS, PAYMENTS, AND ACCOUNTING

6.1   Quarterly Earned Royalty Payment and Report - Beginning with the first
      sale of a Licensed Product, LICENSEE shall make written reports (even if
      there are no sales) and earned royalty payments to STANFORD within
      forty-five (45) days after the end of each calendar quarter. This report
      shall state the number, description, and aggregate Net Sales of Licensed
      Product during such completed calendar quarter, and resulting calculation
      pursuant to Paragraph 5.3 of earned royalty payment due STANFORD for such
      completed calendar quarter. Concurrent with the making of each such
      report, LICENSEE shall include payment due STANFORD of royalties for the
      calendar quarter covered by such report.

6.2   Accounting - LICENSEE agrees to keep and maintain records for a period of
      three (3) years showing the manufacture, sale, use, and other disposition
      of products sold or otherwise disposed of under the license herein
      granted. Such records will include general ledger records showing cash
      receipts and expenses, and records which include production records,
      customers, serial numbers, and related information in sufficient detail to
      enable the royalties payable hereunder by LICENSEE to be determined.
      LICENSEE further agrees to permit its books and records to be examined by
      an independent certified public accountant selected by STANFORD and
      acceptable to LICENSEE from time to time to

                                     - 6 -
<PAGE>

      the extent necessary to verify reports provided for in Paragraph 6.1. Such
      examination is to be made at the expense of STANFORD, except in the event
      that the results of the audit reveal an underreporting of royalties due
      STANFORD of five percent (5%) or more, then the audit costs shall be paid
      by LICENSEE.

7.    WARRANTIES

7.1   To the best of STANFORD's OTL and JHU's OTL knowledge, STANFORD and JHU
      are sole owners of U.S. Patent Application, Serial No. 832,340, filed
      April 11, 1997.

7.2   Nothing in this Agreement is or shall be construed as:

      (a)   A warranty or representation by STANFORD or JHU as to the validity
            or scope of any Licensed Patent;

      (b)   A warranty or representation that anything made, used, sold, or
            otherwise disposed of under any license granted in this Agreement is
            or will be free from infringement of patents, copyrights, and other
            rights of third parties; however, STANFORD does represent that
            neither it nor JHU has received notice of any assertion that any of
            the patents or subject inventions infringe upon any third party's
            know-how, patent or other intellectual property rights as of the
            Effective Date.

      (c)   An obligation to bring or prosecute actions or suits against third
            parties for infringement, except to the extent and in the
            circumstances described in Article 11;

      (d)   Granting by implication, estoppel, or otherwise any licenses or
            rights under patents or other rights of STANFORD or JHU or other
            persons other than Licensed Patent, regardless of whether such
            patents or other rights are dominant or subordinate to any Licensed
            Patent; or

      (e)   A warranty or representation by STANFORD or JHU that any Letters
            Patent will issue with respect to Licensed Patent.

7.3   Except as expressly set forth in this Agreement, STANFORD or JHU MAKE NO
      REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
      IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR
      FITNESS FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE INVENTION, THE
      LICENSED PATENT, OR THE LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT,
      COPYRIGHT, TRADEMARK, OR OTHER RIGHTS OR ANY OTHER EXPRESS OR IMPLIED
      WARRANTIES.

7.4   LICENSEE agrees that nothing in this Agreement grants LICENSEE any express
      or implied license or right under or to U.S. Patent 4,656,134
      'Amplification of Eucaryotic Genes' or any patent application
      corresponding thereto.

                                     - 7 -
<PAGE>

8.    INDEMNITY

8.1   LICENSEE agrees on behalf of itself and each Affiliate to indemnify, hold
      harmless, and defend STANFORD, JHU, and Stanford Health Services, JHU,
      HHMI and UCSF Stanford Health Care and their respective trustees,
      officers, employees, students, and agents against any and all claims,
      actions, demands, suits or causes of action for damages, whether arising
      from death, illness, personal injury, property damage, and improper
      business practices, or otherwise, arising out of (a) any breach or alleged
      breach of this Agreement by LICENSEE and to the extent that the LICENSEE
      may be responsible for payment to a third party under this indemnity, or
      any of its Affiliates or any company that has a controlling interest in
      LICENSEE, or (b) any manufacture, use, sale, or other disposition of
      Invention, Licensed Patent, Licensed Material, or Licensed Product, by
      LICENSEE or its affiliates except if such claims are due to the gross
      negligence or willful acts of STANFORD and JHU. STANFORD agrees to
      promptly notify LICENSEE in writing of any such claim, other than any
      claim for breach of this Agreement by LICENSEE, LICENSEE shall manage and
      control, at its own expense, the defense of such claim and its settlement,
      utilizing attorney's reasonably acceptable to STANFORD, JHU and HHMI.
      LICENSEE agrees not to settle any such claim against any Indemnitee
      without STANFORD's, JHU's and HHMI's written consent where such settlement
      would include any admission of liability on the part of any Indemnitee,
      where the settlement would impose any restriction on the conduct by the
      Indemnitee of any of its activities, or where the settlement would not
      include an unconditional release of such Indemnitee from all liability for
      claims that are the subject matter of such claim. STANFORD, HHMI and JHU
      shall not settle any claim covered by the indemnity without the prior
      written consent of LICENSEE which consent shall not be unreasonably
      withheld or delayed. This section 8.1 will survive termination of this
      Agreement.

8.2   Without limiting Section 8.1, STANFORD shall not be liable for any
      indirect, special, or consequential damages whatsoever unless due to the
      gross negligence or willful misconduct of STANFORD or JHU. STANFORD and
      JHU shall have no responsibilities or liabilities whatsoever with respect
      to Licensed Products.

8.3   LICENSEE shall at all times comply, through insurance or self-insurance,
      with all statutory workers' compensation and employers' liability
      requirements covering any and all employees with respect to activities
      performed under this Agreement.

8.4   In addition to the foregoing, LICENSEE shall maintain, during the term of
      this Agreement, Comprehensive General Liability Insurance, including
      Products Liability Insurance, with reputable and financially secure
      insurance carrier(s) to cover the activities of LICENSEE and its
      sublicensee(s). Upon initiation of clinical trials of the Licensed
      Product, such insurance shall provide minimum limits of liability of
      $5,000,000 and shall expressly include STANFORD, Stanford Health Services,
      HHMI, JHU, their respective trustees, directors, officers, employees,
      students, and agents as additional insureds. Such insurance shall be
      written to cover claims incurred, discovered, manifested, or made during
      or after the expiration of this Agreement up to a limit of 7 years after
      the product

                                     - 8 -
<PAGE>

      is no longer sold and should be placed with carriers with ratings of at
      least A- as rated by A.M. Best. At STANFORD's request, LICENSEE shall
      furnish a Certificate of Insurance evidencing primary coverage and
      requiring thirty (30) days prior written notice of cancellation or
      material change to STANFORD. LICENSEE shall advise STANFORD, in writing,
      that it maintains excess liability coverage (following form) over primary
      insurance for at least the minimum limits set forth above. All such
      insurance of LICENSEE shall be primary coverage; insurance of STANFORD,
      HHMI, JHU or Stanford Health Services shall be excess and noncontributory.

9.    MARKING

      Prior to the issuance of patents on the Invention, LICENSEE agrees to mark
      Licensed Products (or their containers or labels) made, sold, or otherwise
      disposed of by it under the license granted in this Agreement with the
      words "Patent Pending," and following the issuance of one or more patents,
      with the numbers of the Licensed Patent.

10.   STANFORD NAMES AND MARKS

      LICENSEE agrees not to identify STANFORD, JHU or HHMI in any promotional
      advertising or other promotional materials to be disseminated to the
      public or any portion thereof or to use the name of any STANFORD, JHU or
      HHMI faculty member, employee, or student or any trademark, service mark,
      trade name, or symbol of STANFORD, JHU or HHMI or the Stanford Health
      Services, or that is associated with any or either of them, without
      STANFORD's, JHU's or HHMI's prior written consent.

11.   INFRINGEMENT BY OTHERS: PROTECTION OF PATENTS

11.1  LICENSEE, STANFORD and JHU shall promptly inform the other party of any
      suspected infringement of any Licensed Patent by a third party. During the
      exclusive period of this Agreement, STANFORD and LICENSEE each shall have
      the right to institute an action for infringement of the Licensed
      Patent(s) against such third party in accordance with the following:

      (a)   Within 30 days of notification, if STANFORD and LICENSEE agree to
            institute suit jointly, the suit shall be brought in both their
            names, the out-of-pocket costs thereof shall be borne equally, and
            any recovery or settlement shall be shared equally. LICENSEE and
            STANFORD shall agree to the manner in which they shall exercise
            control over such action. Each party may, if it so desires, also be
            represented by separate counsel of its own selection, the fees for
            which counsel shall be paid by such party.

      (b)   If STANFORD and LICENSEE do not institute suit jointly within 30
            days of notification as set forth in 11.1(a), LICENSEE shall be
            empowered to bring suit in its own name to enjoin such infringement.
            Licensee shall bear the entire cost of such litigation and shall be
            entitled to retain the entire amount of any recovery or

                                     - 9 -
<PAGE>

            settlement. However, any recovery in excess of litigation costs will
            be considered Net Sales, and LICENSEE will pay STANFORD royalties as
            indicated in Section 5.3. STANFORD shall provide reasonable
            assistance to LICENSEE in the prosecution of any such suit brought
            by LICENSEE.

      (c)   In the event that LICENSEE does not terminate such infringement or
            initiate steps to do so within six months of learning of such
            infringement, STANFORD may bring suit against infringer at its sole
            expense and shall be entitled to retain the entire amount of any
            recovery or settlement. LICENSEE will give reasonable assistance to
            STANFORD in the prosecution of any such suit brought by STANFORD.
            This Paragraph 11.1 shall survive termination of this Agreement.

11.2  Should either STANFORD or LICENSEE commence a suit under the provisions of
      Paragraph 11.1 and thereafter elect to abandon the same, it shall give
      timely notice to the other party who may, if it so desires, continue
      prosecution of such suit, provided, however, that the sharing of expenses
      and any recovery in such suit shall be as agreed upon between STANFORD and
      LICENSEE.

12.   SUBLICENSE(S)

12.1  LICENSEE may grant sublicense(s) to Licensed Patents and Licensed
      Materials during the term of this Agreement.

12.2  If LICENSEE is unable or unwilling to serve or develop a potential market
      or market territory for which there is a willing sublicensee(s), LICENSEE
      will, at STANFORD's request, negotiate in good faith a sublicense(s)
      hereunder. Bona fide business concerns of LICENSEE will be considered in
      any good faith negotiations for a sublicense under this Agreement.

12.3  Any sublicense(s) granted by LICENSEE under this Agreement shall be
      subject and subordinate to terms and conditions of this Agreement, except
      that the earned royalty rate specified in the sublicense(s) may be at
      higher rates than the rates in this Agreement and the sublicensee may
      further sublicense any rights under Licensed Patents or Licensed Materials
      only as: (a) needed or implied in the course of distribution, installation
      or performance of service as required for the sale to an end user of
      Licensed Products or Licensed Materials, or (b) not specifically rejected
      in writing by STANFORD within thirty (30) days of written notification of
      sub-sublicensee by LICENSEE, any such rejection not being unreasonably
      made by STANFORD. Without limiting the foregoing, any such sublicense(s)
      also shall expressly include the provisions of Articles 6, 7, 8, 10 and 15
      for the benefit of STANFORD, JHU and/or HHMI, as the case may be, and
      provide, at LICENSEE'S option, for the transfer of all obligations,
      including the payment of royalties specified in such sublicense(s), to
      STANFORD or its designee, in the event that this Agreement is terminated.

12.4  LICENSEE agrees to promptly provide STANFORD in confidence with a copy of
      the relevant portions of any sublicense granted pursuant to this Article
      12.

                                     - 10 -
<PAGE>

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

12.5  LICENSEE will pay to STANFORD [**] of all payments received from a
      sublicensee in consideration for the sublicensing of Licensed Patents as
      well as [**] of any royalties, fees or other amounts received by LICENSEE
      as a result of the sublicensee's sale of Licensed Products, excluding
      equity payments, milestone payments, amounts paid to fund research and
      development activities conducted by LICENSEE, and

12.6  reimbursement of patent costs. If LICENSEE is required to pay royalties to
      an additional party, STANFORD agrees in good faith to consider negotiating
      a reduction in royalties under this section.

13.   TERMINATION

13.1  LICENSEE may terminate this Agreement by giving STANFORD notice in writing
      at least thirty (30) days in advance of the effective date of termination
      selected by LICENSEE.

13.2  STANFORD and JHU may terminate this Agreement if LICENSEE:

      (a)   Is in default in payment of royalty or providing of reports;

      (b)   Is in breach of any provision hereof; or

      (c)   Provides any false report; and LICENSEE fails to remedy any such
            default, breach, or false report within thirty (30) days after
            written notice thereof by STANFORD.

13.3  Surviving any termination are:

      (a)   LICENSEE's obligation to pay royalties accrued or accruable;

      (b)   Any cause of action or claim of LICENSEE or STANFORD, accrued or to
            accrue, because of any breach or default by the other party; and

      (c)   The provisions of Articles 6, 7, and 8;

      (d)   The obligation to pay earned royalties under Paragraph 53(d) shall
            survive any termination until 6 years after first commercial sale of
            such product..

14.   ASSIGNMENT

      This Agreement may not be assigned except that LICENSEE may assign this
      Agreement to a party which acquires all or substantially all of that
      portion of LICENSEE's business to which this Agreement pertains, ,whether
      by merger, sale of assets or otherwise

15.   ARBITRATION

15.1  Apart from any controversy or claim pertaining to HHMI's rights under
      Article 8 or otherwise under this Agreement, any controversy arising under
      or related to this

                                     - 11 -
<PAGE>

      Agreement, and any disputed claim by either 0 party against the other
      under this Agreement excluding any dispute relating to patent validity or
      infringement arising under this Agreement, shall be settled by arbitration
      in accordance with the Licensing Agreement Arbitration Rules of the
      American Arbitration Association.

15.2  Upon request by either party, arbitration will be by a third party
      arbitrator mutually agreed upon in writing by LICENSEE and STANFORD within
      thirty (30) days of such arbitration request. Judgment upon the award
      rendered by the arbitrator shall be final and nonappealable and may be
      entered in any court having jurisdiction thereof.

15.3  The parties shall be entitled to discovery in like manner as if the
      arbitration were a civil suit in the California Superior Court. The
      Arbitrator may limit the scope, time and/or issues involved in discovery.

16.   NOTICES

      All notices under this Agreement shall be deemed to have been fully given
      when done in writing and deposited in the United States mail, registered
      or certified, and addressed as follows:

To STANFORD:              Office of Technology Licensing
                          Stanford University
                          900 Welch Road, Suite 350
                          Palo Alto, CA 94304-1850
                          Attention: Director

To LICENSEE:              Ontogeny, Inc.
                          45 Moulton Street
                          Cambridge, MA 02138-1118
                          Attention: President and CEO

      Either party may change its address upon written notice to the other
      party.

17.   WAIVER

      None of the terms of this Agreement can be waived except by the written
      consent of the party waiving compliance.

18.   APPLICABLELAW

      This Agreement shall be governed by the laws of the State of California
      applicable to agreements negotiated, executed and performed wholly within
      California.

19.   CONFIDENTIALITY

      STANFORD and JHU agree that reasonable effort shall be used to maintain
      the confidentiality of reports or documents received from LICENSEE by
      STANFORD

                                     - 12 -
<PAGE>

      pursuant to this Agreement, provided that such reports or documents are
      marked as confidential.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement in
      duplicate originals by their duly authorized officers or representatives.

THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIQR
UNIVERSITY

Signature:   /s/ Katharine Ku
          ----------------------------------------------
                 Name:  Katharine Ku
                 Title:  Director Oncology Licensing
                 Date:  November 5, 1998

JOHN HOPKINS UNIVERSITY

Signature:  /s/ Bart Chernow
          ----------------------------------------------
                 Name:  Bart Chernow, M.D.
                 Title:  Vice Dean for Research and Technology
                 Date:  November 16, 1998

ONTOGENY, ICN.

Signature:  /s/ Raul Rodriguez
          ----------------------------------------------
                 Name:  Raul Rodriguez
                 Title:  Vice President, Business Development
                 Date:  December 1, 1998

                                     - 13 -
<PAGE>

                       APPENDIX A - LICENSED MATERIALS

                                    (NONE)

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