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                                                                   EXHIBIT 10.22

                               LICENSE AGREEMENT

THIS LICENSE AGREEMENT (together with the attached Exhibits, the ("Agreement")
is made as of July 8 (the "Effective Date") by and between Genetics Institute,
Inc., a Delaware corporation with a business address at 87 Cambridge Park Drive,
Cambridge, Massachusetts 02140 ("GI") and Xcyte Therapies, Inc., a Delaware
corporation with a business address at 2203 Airport Way South, Suite 300,
Seattle, Washington 98134 ("Xcyte").

1.      BACKGROUND.

        1.1     GI. GI has acquired and/or licensed the rights to certain
                patents, as set forth in Exhibit D to this Agreement (the
                "Patents"), pursuant to agreements between GI and third parties
                (defined below as the "Licensors").

        1.2     XCYTE. Xcyte desires to license and/or sublicense the Patents
                from GI, to make, use and sell Products (defined below) in the
                Field (defined below). GI is Willing, for the consideration and
                on the terms set forth herein, to license and/or sublicense the
                Patents to Xcyte for such purposes.

        1.3     AGREEMENT. In consideration of the mutual covenants and promises
                contained in this Agreement and other good and valuable
                consideration, the Parties agree as follows:

2.      DEFINITIONS. As used in this Agreement, the following terms shall have
        the meanings set forth below.

        2.1     "AFFILIATE" means any corporation, company, partnership, joint
                venture and/or firm which controls, is controlled by or is under
                common control with a Party. For purposes of this Section 2.1,
                "control" means (a) in the case of corporate entities, direct or
                indirect ownership of at least fifty percent (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
                noncorporate entities.

        2.2     "COMBINATION PRODUCT" means any Product sold in combination with
                one or more other products which are not Products.

        2.3     "CONFIDENTIAL INFORMATION" shall mean(i) any proprietary or
                confidential information or material in tangible form disclosed
                hereunder that is marked as "Confidential" at the time it is
                delivered to the receiving party, or (ii) proprietary or
                confidential information disclosed orally hereunder which is
                identified as confidential or proprietary when disclosed and
                such disclosure of confidential information is confirmed in
                writing within thirty (30) days by the disclosing party.

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.
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                "Confidential Information" does not include information which
                (a) was known to the receiving Party at the time it was
                disclosed, other than by previous disclosure by the disclosing
                Party, as evidenced by written records at the time of
                disclosure; (b) is at the time of disclosure or later becomes
                publicly known under circumstances involving no breach of this
                Agreement; (c) is lawfully and in good faith made available to
                the receiving Party by a third party who did not derive it from
                the disclosing Party and who imposes no obligation of confidence
                on the receiving Party; or (d) is developed by the receiving
                Party independent of any disclosure by the disclosing Party.

        2.4     "DISTRIBUTOR" means a third party which is not a Xcyte Affiliate
                or Sublicensee and which is a distributor, wholesaler or other
                entity purchasing Products from Xcyte or its Affiliate or
                Sublicensee for resale.

        2.5     "FIELD" means ex vivo activation or expansion of human T-cells
                (including T-cells modified through gene transfer (except as
                indicated below) or otherwise) for treatment and/or prevention
                of infectious diseases (including, without limitation, AIDS),
                cancer and immunodeficiency states. [*]

        2.6     "IMPROVEMENTS" means any invention or discovery whether or not
                patentable which is used commercially by Xcyte during the term
                of this Agreement and which directly relates to the methods of
                preparing T-cells claimed in the Patents, and is within the
                scope thereof. It is understood and agreed that any ligand
                (including, without limitation, any antibody or antibody
                derivative) identified or used by Xcyte or its designees for the
                practice of the methods claimed in the Patents shall not be an
                Improvement.

        2.7     "LICENSE AGREEMENTS" means the 1995 Acquisition Agreement
                between GI and Repligen Corporation, together with the following
                agreements, pursuant to which GI licensed the Patents which are
                sublicensed to Xcyte under this Agreement:

                (a)     "NAVY AGREEMENT" means the December 10, 1996 License
                        Agreement between GI and the Navy, a copy of which is
                        attached as EXHIBIT A to this Agreement.

                (b)     "MICHIGAN AGREEMENT" means the May 28, 1992 License
                        Agreement between GI and Michigan, a copy of which is
                        attached as EXHIBIT B to this Agreement

                (c)     "DFCI AGREEMENT" means the July 20, 1993 License
                        Agreement between DFCI and Repligen, a copy of which is
                        attached as EXHIBIT C to this Agreement.

        2.8     "LICENSORS" means the United States of America, represented by
                the Secretary of the Navy (the "Navy"), the University of
                Michigan ("Michigan") and the Dana Farber Cancer Institute
                ("DFCI").

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

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        2.9     "NET SALES" means the aggregate United States dollar equivalent
                of gross revenues derived by or payable to Xcyte, its Affiliates
                and Sublicensees from or on account of the sale or distribution
                of Products (including Combination Products) and Services to
                third parties, less (a) reasonable credits or allowances, if
                any, actually granted on account of price adjustments, rebates,
                discounts, recalls, rejection or return of items previously
                sold, (b) excises, sales taxes, value added taxes, consumption
                taxes, duties or other taxes imposed upon and paid with respect
                to such sales or Services (excluding income or franchise taxes
                of any kind) and (c) separately itemized insurance, packaging
                and transportation costs incurred in shipping Products
                (including Combination Products) to such third parties. No
                deduction shall be made for any item of cost incurred by Xcyte,
                its Affiliates or Sublicensees in preparing, manufacturing,
                shipping or selling Products (including Combination Products)
                except as permitted pursuant to clauses (a), (b) and (c) of the
                foregoing sentence. Net Sales shall not include any transfer
                between Xcyte and any of its Affiliates or Sublicensees for
                resale.

                If Xcyte or an Affiliate or Sublicensee sells Products
                (including Combination Products) to a Distributor, Net Sales
                shall be calculated from the gross revenues received by Xcyte
                and/or its Affiliate or Sublicensee from the sale of Products to
                the Distributor.

                In the event that Xcyte or any of its Affiliates or Sublicensees
                shall make any transfer of Products (including Combination
                Products) to third parties for other than monetary value, such
                transfer shall be considered a sale hereunder for accounting and
                royalty purposes. Net Sales for any such transfers shall be
                determined on a country-by-country basis and shall be the
                average price of "arms length" sales by Xcyte, its Affiliates or
                Sublicensees in such country during the royalty reporting period
                in which such transfer occurs or, if no such "arms length" sales
                occurred in such country during such period, during the last
                period in which such "arms length" sales occurred. If no "arms
                length" sales have occurred in a particular country, Net Sales
                for any such transfer in such country shall be the average price
                of arms length" sales in all countries in the Territory.

                Notwithstanding the foregoing, no transfer of Products
                (including Combination Products) for testing, pre-clinical,
                clinical or developmental purposes or as samples shall be
                considered a sale hereunder.

                In the event a Product or Combination Product is sold to
                end-users together with a Service, in calculating Net Sales the
                payment received by Xcyte for such Service component shall be
                included in Net Sales, subject to Section 5.2(b); provided, any
                payment received by Xcyte for any service which is not a Service
                shall not be included in Net Sales.

        2.10    "PARTY" means GI or Xcyte; "Parties" means GI and Xcyte.

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        2.11    "PATENTS" means the patents and patent applications listed in
                EXHIBIT D attached to this Agreement and shall include any
                foreign counterparts of the patents and patent applications
                listed in EXHIBIT D (which for all purposes of this Agreement
                shall be deemed to include certificates of invention anti
                applications for certificates of invention and priority rights),
                together with any reissues extensions or other governmental acts
                which effectively extend the period of exclusivity by the patent
                holder, substitutions, confirmations, registrations,
                revalidations, additions, continuations, continuations-in-pan,
                or divisions of or to any of the foregoing, to the extent GI
                owns or controls such rights, or has acquired or licensed such
                rights under the License Agreements.

        2.12    "PRODUCT" means any product developed by or on behalf of Xcyte,
                the manufacture, use or sale of which is covered by a Valid
                Claim of the Patents in the country of manufacture, use or sale.

        2.13    "SERVICE" means any service provided by Xcyte in connection with
                a Product in the Field. By way of illustration and without
                limitation, services would include apheresis conducted in
                connection with the use of a Product or services relating to
                cell testing or cell characterization or quality assurance or
                quality control of Products.

        2.14    "SUBLICENSEE" means a third party, including any Xcyte
                Affiliate, to which Xcyte has granted a further sublicense to
                make, use, import, offer for sale and/or sell the Products.

        2.15    "TECHNOLOGY" means the technology described in the Patents
                related to the manufacture, use or sale of the Products in the
                Field.

        2.16    "TERRITORY" means, with respect to each Patent, the area of the
                world in which GI has the rights to practice under such Patent,
                as set forth in applicable License Agreement under which GI
                obtained rights to such Patent.

        2.17    "VALID CLAIM" means (a) a claim of an unexpired patent which
                shall not have been withdrawn, canceled or disclaimed, nor held
                invalid or unenforceable by a court of competent jurisdiction in
                an. unappealed or unappealable decision or (b) a claim of a
                patent application which is either: (i) the subject of a pending
                patent interference proceeding or (ii) supported by the
                disclosure of such application or any prior filed patent
                application for a cumulative period not exceeding seven (7)
                years from the earliest date of such supporting disclosure for
                such claim in any such patent application.

3.      LICENSE FROM GI TO XCYTE.

        3.1     GRANT. Subject to the fulfillment of the terms and conditions of
                this Agreement, including, without limitation, the conditions of
                sublicense set forth in Section 3.4, below, GI grants to Xcyte
                exclusive, royalty-bearing licenses and/or sublicenses

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                under the Patents, restricted to the Field, to make and have
                made, to use, to offer for sale, to sell and have sold, to
                import and have imported, and to export and have exported, the
                Products in the Territory.

        3.2     TERM. The licenses and/or sublicenses granted in Section 3.1,
                above, shall run to the end of the enforceable term of the
                Patents or License Agreements under which such license and/or
                sublicense is granted.

        3.3     FURTHER SUBLICENSES. Xcyte shall have the right to grant further
                sublicenses under the foregoing license and/or sublicense,
                provided the Sublicensees agree to comply with all terms and
                conditions of this Agreement. Notwithstanding any such further
                sublicenses, Xcyte shall remain primarily liable for all of such
                Affiliates' and Sublicensees' duties and obligations contained
                in this Agreement.

        3.4     CONDITIONS OF SUBLICENSE. With respect to the applicable Patents
                or the applicable claim or claims of such Patents, the
                sublicenses granted to Xcyte under this Agreement are subject to
                the following conditions imposed on GI, as licensee, and Xcyte,
                as sublicensee, by the applicable Licensors:

                (a)     APPROVAL OF LICENSORS. Each such sublicense shall be
                        subject to the prior written approval of the applicable
                        Licensor to the extent required by the License
                        Agreements.

                (b)     LICENSORS' RETAINED RIGHTS. Each sublicense is subject
                        to any and all rights retained by the applicable
                        Licensor.

                (c)     CONSISTENT WITH TERMS OF LICENSE AGREEMENTS. Each
                        sublicense is granted pursuant to the terms of the
                        applicable License Agreement. No provision of this
                        Agreement shall be in derogation of or diminish any
                        rights of each Licensor in the applicable License
                        Agreement. Each sublicense under this Agreement may be
                        modified or terminated in whole or in part upon the
                        modification or termination in whole or in part of the
                        applicable License Agreement; provided, GI shall not
                        terminate or enter into any modification of any of the
                        License Agreements if such modification or termination
                        would affect the rights of Xcyte under this Agreement,
                        without the prior written consent of Xcyte, and shall
                        notify Xcyte within ten (10) business days if GI
                        receives any notice from any Licensor that (i) such
                        Licensor believes that GI is in default or breach of the
                        relevant License Agreement, or (ii) such Licensor
                        intends to terminate the relevant License Agreement, or
                        (iii) such Licensor intends to modify GI's rights under
                        the applicable License Agreement (e.g., by converting
                        GI's exclusive rights under such License Agreement to
                        non-exclusive rights). Should any sublicense granted by
                        Xcyte under this Agreement not comply with the
                        requirements of any License Agreement, such sublicense
                        of rights under this Agreement may be void. If either
                        Party becomes aware of any potential inconsistency of a
                        sublicense granted by Xcyte with this

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                        Agreement, it shall promptly notify the other Party,
                        providing a detailed explanation of the potential
                        inconsistency.

                (d)     GI TO FURNISH COPY. Within thirty (30) days of the
                        Effective Date, and within thirty (30) days of any
                        modification of this Agreement, GI may be obligated to
                        furnish to each Licensor a true and complete copy of
                        this Agreement and any modification hereof.

4.      PRODUCT DEVELOPMENT.

        4.1     DILIGENCE OBLIGATIONS. Xcyte shall exercise commercially
                reasonable and diligent efforts, in its scientific and business
                judgement, to develop at least one Product itself or through
                sublicensees. Each year during the term of the Agreement until
                the first commercial sale of a Product, Xcyte, itself or through
                a sublicensee, shall expend no less than five hundred thousand
                dollars ($500,000) annually on research and development
                activities directly relaxing to Product development. During the
                term of this Agreement, within sixty (60) days of each
                anniversary of the Effective Date, Xcyte shall issue to GI a
                progress report detailing Xcyte's progress in developing
                Products.

        4.2     CONVERSION OF LICENSE AND/OR SUBLICENSE. In the event that Xcyte
                fails to satisfy the requirements set forth in Section 4.1,
                above, GI shall have the right, in its sole discretion, upon
                written notice to Xcyte, to convert the licenses and/or
                sublicenses granted to Xcyte under this Agreement from exclusive
                to non-exclusive; provided Xcyte has not cured such failure
                within sixty (60) days following written notice from GI of any
                such failure. In the event that GI converts such licenses and/or
                sublicense to non-exclusive, GI shall be entitled to grant
                additional licenses and/or sublicenses under the Patents to not
                more than two (2) unrelated third parties. If GI exercises its
                conversion right under this Section 4.2, thereafter the royalty
                obligation due to GI pursuant to Section 5.2 below shall be
                reduced by [*] but in no event shall be less than [*] of Net
                Sales of Product or Combination Product.

5.      CONSIDERATION.

        5.1     LICENSE FEE. In partial consideration for the license granted
                herein, on the Effective Date Xcyte shall pay to GI a license
                fee in the form of 145,875 shares of Xcyte preferred stock,
                subject to the terms and conditions of the Stock Purchase
                Agreement attached hereto as Exhibit E, and shall pay a total of
                fifty three thousand four hundred eighty-seven U.S. dollars and
                fifty cents ($53,487.50) to the Licensors as provided in the
                Letter Agreement of even date herewith between GI, Xcyte and the
                Licensors. In addition, upon the first to occur of(i) notice
                from GI to Xcyte of the issuance of the first Valid Claim within
                the Patents, (ii) the first grant of a sublicense by Xcyte to a
                third party pursuant to Section 3.3, or (iii) the third
                anniversary of the Effective Date, GI shall have the right to
                purchase 194,500 additional shares of Xcyte stock, subject to
                the terms and conditions of the Stock Warrant Agreement attached
                hereto as Exhibit F.

        5.2     ROYALTY PAYMENTS.

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

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                (a)     With respect to the sales of each Product, Xcyte shall
                        pay GI a royalty of [*] of Net Sales of Products sold by
                        Xcyte, its Affiliates and Sublicensees without any
                        Services.

                (b)     With respect to the sales of each Product, Xcyte shall
                        pay GI a royalty of [*] of Net Sales of Products by
                        Xcyte, its Affiliates and Sublicensees sold together
                        with one or more Services.

                (c)     With respect to the sales of each Combination Product,
                        Xcyte shall pay GI a royalty of such Combination
                        Product, as follows:

                        (i)     [*] of Net Sales of each Combination Product
                                sold by Xcyte, its Affiliates and Sublicensees,
                                if such Combination Product is sold without any
                                Services, and

                        (ii)    [*] of Net Sales of each Combination Product
                                sold by Xcyte, its Affiliates and Sublicensees,
                                if such Combination Product is sold together
                                with one or more Services;

                        provided, in each case, in determining Net Sales of
                        Combination Products, Net Sales shall first be
                        calculated in accordance with the definition of Net
                        Sales and then multiplied by a fraction, the numerator
                        of which is the current Net Selling Price of Product and
                        the denominator of which is the current Net Selling
                        Price of the Combination Product. If there is no Net
                        Selling Price of Product, then the numerator shall be
                        the fair market value of the Product for the quantity
                        contained in the Combination Product and of the same
                        class, purity and potency, as negotiated in good faith
                        by the parties, or, failing such agreement, as is
                        determined by an appraisal to be conducted by an
                        independent third party mutually agreed to by Xcyte and
                        GI, which determination shall be binding. However, in no
                        event shall the royalty be less than [*] of Net Sales of
                        each Combination Product.

                (d)     In addition to the royalties payable under this Section
                        5.2, Xcyte shall pay to GI a portion of all
                        compensation, including license fees, advances and other
                        payments of compensation (however characterized), which
                        are owed to Xcyte pursuant to further sublicensing of
                        the rights granted to Xcyte hereunder, as follows:

<TABLE>
<CAPTION>
                                 Sublicense Date                     % of Compensation
                                 ---------------                     -----------------
                        <S>                                          <C>
                        Within 24 months of Effective Date                   [*]

                        After 24 months after Effective Date                 [*]
</TABLE>

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

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                        Notwithstanding the above, it is understood and agreed
                        that Xcyte shall not be obligated to pay to GI any
                        portion of any amounts received from any Sublicensee as
                        payments for research and development activities to be
                        conducted by Xcyte on behalf of such Sublicensee, or
                        amounts received from a Sublicensee for equity, or the
                        license or sublicense of any intellectual property other
                        than the Patents, or products other than the Products,
                        or reimbursement for patent or other expenses.

                (e)     Xcyte and its Affiliates and Sublicensees shall be
                        responsible for any payments due to third parties under
                        licenses or similar agreements entered by Xcyte or its
                        Affiliates or Sublicensees necessary for the
                        manufacture, use or sale of Products. Xcyte may offset
                        one-half of any such payments made by Xcyte or its
                        Affiliates or Sublicensees to third parties against
                        royalties due GI pursuant to Section 5.2(a), (b) and (c)
                        above; provided, GI shall have the right to receive the
                        greater of (i) [*] the amounts due pursuant to Sections
                        5.2(a), (b) and (c) above, or (ii) [*] of Net Sales of
                        Product or Combination Product.

                (f)     Payments due under this Section 5.2 shall be payable on
                        a country-by-country and Product-by-Product basis and
                        shall be payable until (i) with respect to Patents owned
                        by GI, the expiration of the last-to-expire Valid Claim,
                        and (ii) with respect to Patents subject to the License
                        Agreements, the expiration of the applicable license
                        term, as set forth in Section 3.2.

                (g)     Regardless of any credits or offsets available to Xcyte
                        under Section 5.2(e) of this Agreement commencing on the
                        first anniversary of the Launch of the first Product in
                        any country, in no year shall Xcyte pay to GI less than
                        the greater of (i) [*] of the royalties due pursuant to
                        Sections 5.2(a), (b) or (c) in any year with regard to
                        any Product or (ii) [*] of Net Sales of Product or
                        Combination Product. Any credits or offsets not
                        creditable against royalties in the year such credit or
                        offset is earned may be carried forward until fully
                        applied.

        5.3     REPORTS AND PAYMENT. Xcyte shall deliver to GI, within sixty
                (60) days after the end of each calendar quarter, a written
                report showing its computation of royalties due under this
                Agreement upon Net Sales by Xcyte, its Affiliates and
                Sublicensees during such calendar quarter. All Net Sales shall
                be segmented in each such report according to sales by Xcyte,
                each Affiliate and each Sublicensee, as well as on a
                country-by-country basis, including the rates of exchange used
                to convert such royalties to United States Dollars from the
                currency in which such sales were made. Subject to the
                provisions of Sections 5.4 and 5.5 of this Agreement,
                simultaneously with the delivery of each such report, Xcyte
                shall tender payment in United States Dollars of all royalties
                shown to be due therein.

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

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                For purposes hereof, the rates of exchange to be used for
                converting royalties hereunder to United States Dollars shall be
                the closing price published for the purchase of United States
                Dollars in the East Coast Edition of the Wall Street Journal for
                the last business day of the calendar quarter for which payment
                is due.

        5.4     FOREIGN ROYALTIES. Where royalties are due hereunder for sales
                of Products in a country where, by reason of currency
                regulations or taxes of any kind, it is impossible or illegal
                for Xcyte, any Affiliate or Sublicensee to transfer royalty
                payments to GI for Net Sales in that country, such royalties
                shall be deposited in whatever currency is allowable by the
                person or entity not able to make the transfer for the benefit
                or credit of GI in an accredited bank in that country that is
                reasonably acceptable to GI.

        5.5     TAXES. Any and all income or similar taxes imposed or levied on
                account of the receipt of royalties payable under this Agreement
                which are required to be withheld by Xcyte shall be paid by
                Xcyte, its Affiliates or Sublicensees on behalf of GI and shall
                be paid to the proper taxing authority. Proof of payment shall
                be secured and sent to GI by Xcyte, its Affiliates or
                Sublicensees as evidence of such payment in such form as
                required by the tax authorities having jurisdiction over Xcyte,
                its Affiliates or Sublicensees. Such taxes shall be deducted
                from the royalty that would otherwise be remittable by Xcyte,
                its Affiliates or Sublicensees.

        5.6     RECORDS. Xcyte shall keep, and shall require all Affiliates and
                Sublicensees to keep, for a period of at least two (2) years,
                full, true and accurate books of accounts and other records
                containing all information and data which may be necessary to
                ascertain and verify the royalties payable hereunder. During the
                term of this Agreement and for a period of two (2) years
                following its termination, GI shall have the right from time to
                time (not to exceed once during each calendar year) to inspect
                in confidence, or have an agent, accountant or other
                representative inspect in confidence, such books, records and
                supporting data.

6.      REPRESENTATION, WARRANTY AND INDEMNITY.

        6.1     REPRESENTATION AND WARRANTY OF GI. GI represents and warrants to
                Xcyte that, subject to the terms and conditions of this
                Agreement and the License Agreements, (i) it has an interest
                licensable or sublicensable to Xcyte in the Patents; (ii) it has
                full right, power and authority to grant the licenses and /
                sublicense granted by it under this Agreement; (iii) GI has not
                previously granted, and will not grant during the term of this
                Agreement, any right, license or interest in and to the Patents,
                or any portion thereof, inconsistent with the license granted to
                Xcyte herein; (iv) as of the Effective Date, there are no
                actions, suits, investigations, claims or proceedings pending or
                threatened in any way relating to the Patents except as set
                forth on Schedule 6.1 to this Agreement; and (v) during

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                the term of this Agreement, GI shall use its reasonable efforts
                not to breach any of the License Agreements.

        6.2     REPRESENTATION AND WARRANTY OF XCYTE. Xcyte represents and
                warrants to GI that, subject to the terms and conditions of this
                Agreement and the License Agreements, during the term of this
                Agreement, Xcyte shall use its reasonable efforts not to breach
                any of the License Agreements.

        6.3     INDEMNITY OF GI BY XCYTE. Xcyte shall defend, indemnify and hold
                GI (and its agents, directors, officers and employees) harmless,
                at Xcyte's cost and expense, from and against any and all
                losses, costs, liabilities, damages, fees and expenses,
                including reasonable attorneys' fees and expenses (collectively,
                "Liabilities") arising out of or in connection with the
                manufacture, promotion, sale or other disposition of the
                Products by Xcyte, its Affiliates and Sublicensees, and any
                actual or alleged injury, damage, death or other consequence
                occurring to any third person as a result, directly or
                indirectly, of the possession, consumption or use of the
                Products sold by Xcyte or its Affiliates or Sublicensees,
                regardless of the form in which any such claim is made.

        6.4     EFFECT OF REPRESENTATIONS AND WARRANTIES. It is understood that
                if the representations and warranties made by a party under this
                Article 6 are not true and accurate, the party making such
                representations and warranties shall indemnify and hold the
                other party harmless from and against any Liabilities incurred
                as a result.

        6.5     EXCLUSION. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
                PARTY, OR ANY OF ITS OFFICERS, DIRECTORS, SHAREHOLDERS,
                EMPLOYEES OR AGENTS, OR ANY OTHER PERSON OR ENTITY, FOR ANY
                INCIDENTAL, CONSEQUENTIAL, OR OTHER SPECIAL DAMAGES, INCLUDING
                WITHOUT LIMITATION, LOST PROFITS OR OPPORTUNITIES INCURRED BY
                SUCH PARTY, OR ANY OTHER PERSON OR ENTITY, ARISING OUT OF OR
                RELATING TO THIS AGREEMENT, THE LICENSES AND RIGHTS GRANTED
                HEREIN, THE PRODUCT, PATENTS OR IMPROVEMENTS, OR ACTUAL OR
                ALLEGED NEGLIGENCE, STRICT LIABILITY, BREACH OF REPRESENTATIONS
                OR WARRANTIES, OR ANY OTHER CAUSE OF ACTION.

        6.6     PROCEDURE. A party entitled to indemnification hereunder agrees
                to give prompt written notice to the indemnifying party after
                the receipt by such party of any written notice of the
                commencement of any action, suit, proceeding or investigation or
                threat thereof made in writing for which such party will claim
                indemnification pursuant to this Agreement. Unless, in the
                reasonable judgment of the indemnified party, a conflict of
                interest may exist between the indemnified party and the
                indemnifying party with respect to a claim, the indemnifying
                party may assume the defense of such claim with counsel
                reasonably satisfactory to the

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                indemnified party. if the indemnifying party is not entitled to,
                or elects not to, assume the defense of a claim, it will not be
                obligated to pay the fees and expenses of more than one counsel
                with respect to such claim. The indemnifying party will not be
                subject to any liability for any settlement made without its
                consent, which consent shall not be unreasonably withheld or
                delayed.

7.      INTELLECTUAL PROPERTY.

        7.1     IMPROVEMENTS. Xcyte shall own the entire right, title and
                interest in and to all Improvements.

        7.2     OPTION; RIGHT OF FIRST REFUSAL. Xcyte grants to GI an option to
                execute an exclusive, worldwide, royalty-bearing
                commercialization license, with the right to grant sublicenses,
                to the Improvements, to commercialize products based on or
                incorporating Improvements outside the Field, on terms to be
                negotiated by the parties in good faith.

                GI may exercise its option by written notice to Xcyte within
                three (3) months of notice by Xcyte to GI of such Improvement
                and receipt by GI of sufficient technical information to
                evaluate such Improvement. If GI exercise its option, the
                parties will negotiate in good faith to reach agreement on a
                commercialization license for up to 120 days. If GI does not
                exercise its option, or the parties do not reach agreement
                within 120 days, Xcyte may commercialize such Improvement
                outside the Field, itself or license such Improvement to a third
                party, without obligation to GI. Before entering into any
                transaction with a third party on terms which, taken as a whole,
                are materially more favorable than those offered to GI in
                writing to license such Improvement, Xcyte will inform GI and
                shall allow GI sixty (60) days in which to elect whether to
                license such Improvement under all the terms of the proposed
                transaction with the third party. Nothing in this Section 7.2
                shall imply the grant of any license under the Patents to Xcyte
                outside the Field.

        7.3     PATENT MAINTENANCE. GI shall have the right to seek or continue
                to seek or maintain patent protection on the Patents in any
                country. GI shall obtain the advice of Xcyte concerning the
                countries in which to seek or maintain patent protection, and
                the nature and text of such patents and prosecutions matters
                related thereto prior to the filing thereof and provide Xcyte a
                reasonable opportunity to review and comment on all proposed
                submissions to any patent office before submittal, and provided
                further that GI shall keep Xcyte reasonably informed as to the
                status of such patent applications by promptly providing Xcyte
                copies of all communications relating to such patent
                applications that are received from any patent office. Xcyte
                shall reimburse GI for any reasonable expenses incurred by GI
                during the term of this Agreement in preparing, filing,
                prosecuting and maintaining any Patents containing claims
                relating to the Field. If GI elects not to seek or continue to
                seek or maintain patent protection on any patent

                                      -11-
<PAGE>   12

                application or patent within the Patents in any country, Xcyte
                shall have the right, at its expense, to file, procure and
                maintain in such countries such Patents. If Xcyte elects not to
                continue to make payments to seek or continue to seek or
                maintain patent protection on any patent application or patent
                within the Patents in any country, it may notify GI, and its
                obligation to make such payments shall cease and its license
                with regard to such patent application or patent shall
                terminate. Xcyte shall have the right, at Xcyte cost and
                expense, to audit all expenses relating to the preparing,
                filing, prosecuting and maintaining of the Patents.

        7.4     PATENT INFRINGEMENT.

                (a)     Each Party shall promptly report in writing to the other
                        Party during the term of this Agreement any known
                        infringement or suspected infringement of any of the
                        Patents, and promptly shall provide the other Party with
                        all available evidence supporting said infringement,
                        suspected infringement, or unauthorized use or
                        misappropriation.

                (b)     Except as provided in Section 7.4(c) below, Xcyte shall
                        have the right to initiate an infringement or other
                        appropriate suit anywhere in the Territory against any
                        third party who at any time has infringed, or is
                        suspected of infringing, any of the Patents in the
                        Field. Xcyte shall give GI sufficient advance notice of
                        its intent to file said suit and the reasons therefor,
                        and shall provide GI with an opportunity to make
                        suggestions and comments regarding such suit. Xcyte
                        shall keep GI promptly informed, and shall from time to
                        time consult with GI regarding the status of any such
                        suit and shall provide GI with copies of all documents
                        filed in, and all written communications relating to,
                        such suit. Xcyte shall have the sole and exclusive right
                        to select counsel for any such suit and shall, except as
                        provided below, pay all expenses of the suit, including
                        without limitation attorneys' fees and court costs. GI,
                        in its sole discretion, may elect, within sixty (60)
                        days after the commencement of such litigation, to
                        contribute to the costs incurred by Xcyte in connection
                        with such litigation and, if it so elects, any damages,
                        royalties, settlement fees or other consideration
                        received by Xcyte or any of its Affiliates for
                        infringement as a result of such litigation shall be
                        shared by Xcyte and GI pro rata based on their
                        respective sharing of the costs of such litigation. In
                        the event that Gl elects not to contribute to the costs
                        of such litigation, Xcyte and/or its Sublicensees shall
                        be entitled to retain any damages, royalties, settlement
                        fees or other consideration for infringement resulting
                        therefrom. If necessary, GI shall join as a party to the
                        suit but shall be under no obligation to participate
                        except to the extent that such participation is required
                        as the result of being a named party to the suit. GI
                        shall offer reasonable assistance to Xcyte in connection
                        therewith at no charge to Xcyte except for reimbursement
                        of reasonable out-of-pocket expenses,

                                      -12-
<PAGE>   13

                        incurred in rendering such assistance. GI shall have the
                        right to participate and be represented in any such suit
                        by its own counsel at its own expense.

                (c)     In the event that Xcyte elects not to initiate an
                        infringement or other appropriate suit pursuant to
                        Section 7.4(b) above, Xcyte shall promptly advise GI of
                        its intent not to initiate such suit, and GI shall have
                        the right, at the expense of GI, of initiating an
                        infringement or other appropriate suit against any third
                        party who at any time has infringed, or is suspected of
                        infringing, any of the Patents in the Field. GI shall
                        have the sole and exclusive right to select counsel for
                        any such suit and shall, except as provided below, pay
                        all expenses of the suit including without limitation
                        attorneys' fees and court costs. Xcyte, in its sole
                        discretion, may elect, within sixty (60) days after the
                        commencement of such litigation, to contribute to the
                        costs incurred by GI in connection with such litigation
                        and, if it so elects, any damages, royalties, settlement
                        fee or other consideration received by GI or any of its
                        Affiliates for infringement as a result of such
                        litigation shall be shared by GI and Xcyte pro rata
                        based on their respective sharing of the costs of such
                        litigation. In the event that Xcyte elects not to
                        contribute to the costs of such litigation, GI and/or
                        its Affiliates shall be entitled to retain any damages,
                        royalties, settlement fees or other consideration for
                        infringement resulting therefrom. If necessary, Xcyte
                        shall join as a party to the suit but shall be under no
                        obligation to participate except to the extent that such
                        participation is required as a result of being a named
                        party to the suit. At GI's request, Xcyte shall offer
                        reasonable assistance to GI in connection therewith at
                        no charge to GI except for reimbursement of reasonable
                        out-of-pocket expenses incurred in rendering such
                        assistance. Xcyte shall have the right to participate
                        and be represented in any such suit by its own counsel
                        at its own expense.

        7.5     CLAIMED INFRINGEMENT.

                (a)     In the event that a third party at any time provides
                        written notice of a claim to, or brings an action, suit,
                        or proceeding against, either Party or any of their
                        respective Affiliates or Sublicensees, claiming
                        infringement of its patent rights or unauthorized use or
                        misappropriation of its know-how, based upon an
                        assertion or claim arising out of the development, use,
                        manufacture, distribution, or sale of Products, such
                        Party shall promptly notify the other Party of the claim
                        or the commencement of such action, suit, or proceeding,
                        enclosing a copy of the claim and/or all papers served.
                        Each Party agrees to make available to the other Party
                        its advice and counsel regarding the technical merits of
                        any such claim at no cost to the other Party.

                (b)     THE FOREGOING STATES THE ENTIRE RESPONSIBILITY OF THE
                        PARTIES IN THE CASE OF ANY CLAIMED INFRINGEMENT OR

                                      -13-
<PAGE>   14

                        VIOLATION OF ANY THIRD PARTY'S RIGHTS OR UNAUTHORIZED
                        USE OR MISAPPROPRIATION OF ANY THIRD PARTY'S KNOW-HOW.

8.      CONFIDENTIAL INFORMATION.

        8.1     NONDISCLOSURE OF CONFIDENTIAL INFORMATION. Each Party shall not
                directly or indirectly publish, disseminate or otherwise
                disclose, deliver or make available to any person outside its
                organization any of the other Party's Confidential information.
                Each Party may disclose the other Party's Confidential
                Information to persons within its organization and to its
                Affiliates and Sublicensees who/which have a need to receive
                such Confidential Information in order to further the purposes
                of this Agreement and who/which are bound to protect the
                confidentiality of such Confidential Information, as set forth
                in Section 8.4 below. Each Party may disclose the other Party's
                Confidential Information to a governmental authority or by order
                of a court of competent jurisdiction, provided that such
                disclosure is subject to all applicable governmental or judicial
                protection available for like material and reasonable advance
                notice is given to the other Party.

        8.2     USE OF CONFIDENTIAL INFORMATION. Each Party shall use the other
                Party's Confidential Information solely for the purposes
                contemplated in this Agreement or for such other purposes as may
                be agreed upon by the Parties in writing.

        8.3     PHYSICAL PROTECTION OF CONFIDENTIAL INFORMATION. The Parties
                shall exercise commercially reasonable precautions to physically
                protect the integrity and confidentiality of the other Party's
                Confidential Information.

        8.4     AGREEMENTS WITH PERSONNEL AND THIRD PARTIES. The Parties have or
                shall obtain agreements with all personnel and third parties who
                will have access to the other Party's Confidential Information
                which impose comparable confidentiality obligations as are set
                forth in this Agreement on such personnel and third parties.

9.      TERM AND TERMINATION.

        9.1     TERM. Unless sooner terminated in accordance with the provisions
                of this Section 9, this Agreement shall continue in force on a
                country-by-country and Product-by-Product basis for the period
                set forth in Section 3.2.

        9.2     TERMINATION FOR BREACH. Each Party shall be entitled to
                terminate this Agreement by written notice to the other party in
                the event that the other party shall be in default of any of its
                material obligations hereunder, and shall fail to remedy any
                such default within sixty (60) days after notice thereof by the
                non-breaching party. Any such notice shall specifically state
                that the non-breaching party intends to terminate this Agreement
                in the event that the breaching party shall fail to remedy the
                default.

                                      -14-
<PAGE>   15

        9.3     PERMISSIVE TERMINATION. Xcyte may terminate this Agreement with
                thirty (30) days notice to GI.

        9.4     EFFECT OF TERMINATION.

                (a)     ACCRUED OBLIGATIONS. Termination of this Agreement for
                        any reason shall not release any Party hereto from any
                        liability which, at the time of such termination, has
                        already accrued to the other Party or which is
                        attributable to such termination, nor shall it preclude
                        either 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.

                (b)     RETURN OF CONFIDENTIAL INFORMATION. Subject to any
                        license granted pursuant to Section 7.2, upon any
                        termination of this Agreement each Party shall return to
                        the other Party all Confidential Information received
                        from the other Party (except one copy of which may be
                        retained for archival purposes), and neither Party shall
                        use any such Confidential Information of the other Party
                        for any purpose.

                (c)     STOCK ON HAND. In the event this Agreement is terminated
                        for any reason, Xcyte, its Affiliates and its
                        Sublicensees shall have the right for six (6) months
                        following the date of termination to sell or otherwise
                        dispose of the stock of any Licensed Product subject to
                        this Agreement then on hand, subject to the right of GI
                        to receive payment thereon as provided in Section 5.

        9.5     SURVIVAL OF OBLIGATIONS. Notwithstanding any termination of this
                Agreement, the obligations of the Parties under Sections 5.3,
                5.6, 6,7.1, 8,9.4, 9.5 and 10 shall survive and continue to be
                enforceable.

10.     MISCELLANEOUS.

        10.1    PUBLICITY. Neither Party shall originate any publicity, news
                release or other public announcement, written or oral, relating
                to this Agreement or the existence of an arrangement between the
                Parties, without the prior written approval of the other Party,
                which approval shall not be unreasonably withheld, except as
                otherwise required by law. It is expressly understood that
                nothing in this Section 10.1 shall prevent a Party from making a
                disclosure in connection with any required filings with the
                Securities and Exchange Commission or in connection with the
                offering of securities or any financing.

        10.2    EXPORT CONTROL. The Parties acknowledge that the export of
                technical data, materials, or products is subject to the
                exporting Party receiving the necessary export licenses and that
                the Parties cannot be responsible for any delays attributable to
                export controls which are beyond the reasonable control of
                either Party. The Parties agree that regardless of any
                disclosure made by the Party

                                      -15-
<PAGE>   16

                receiving an export of an ultimate destination of any technical
                data, materials, or products, the receiving Party will not
                reexport either directly or indirectly, any technical data,
                material, or products without first obtaining the applicable
                validated or general license from the United States Department
                of Commerce, United States Food and Drug Administration, and/or
                any other agency or department of the United States Government,
                as required. The receiving Party shall provide the exporting
                Party with any information, materials, certifications, or other
                documents which may be reasonably required in connection with
                such exports under the Export Administration Act of 1979, as
                amended, its rules and regulations, the Federal Food, Drug and
                Cosmetic Act, and other applicable export laws.

        10.3    NO IMPLIED LICENSES. Only the licenses granted pursuant to the
                express terms of this Agreement shall be of any legal force and
                effect. No license tights shall be created by implication or
                estoppel.

        10.4    NO AGENCY. Nothing herein shall be deemed to constitute either
                Party as the agent or representative of the other Party, or both
                Parties as joint venturers or partners for any purpose. Each
                Party shall be an independent contractor, not an employee or
                partner of the other Party, and the manner in which each Party
                renders its services under this Agreement shall be within its
                sole discretion. Neither Party shall be responsible for the acts
                or omissions of the other Party, and neither Party will have
                authority to speak for, represent or obligate the other Party in
                any way without prior written authority from the other Party.

        10.5    NOTICE. All notices required under this Agreement to be given by
                one Party to the other shall be in writing and shall be given by
                addressing the same to the other at the address or facsimile
                number set forth below, or at such other address or facsimile
                number as either may specify in writing to the other. All
                notices shall become effective when deposited in the United
                States Mail with proper postage for first class registered or
                certified mail prepaid, return receipt requested, or when
                delivered personally, or, if promptly confirmed by mail as
                provided above, when dispatched by facsimile.

                GI:      Genetics Institute, Inc.
                         87 Cambridge Park Drive
                         Cambridge, Massachusetts 02140
                         Telecopier (617) 876-5851
                         Attn: Legal Department

                Xcyte:   Xcyte Therapies, Inc.
                         2203 Airport Way South
                         Suite 300
                         Seattle, Washington 98134
                         Telecopier (206) 328-7316

                                      -16-
<PAGE>   17

                Attn:    President and CEO

        10.6    ASSIGNMENT. This Agreement, and the rights and obligations
                hereunder, may not be assigned or transferred, in whole or in
                part, by either Party without the prior written consent of the
                other Party, except that neither Party shall require the other
                Party's consent to assign this Agreement to any Affiliate, or to
                any entity acquiring such Party or substantially all of the
                assets of such Party as to which this Agreement relates whether
                by sale, operation of law or otherwise, or to any successor
                entity of such Party as the result of a merger or consolidation.

        10.7    ENTIRE AGREEMENT. This Agreement constitutes the entire
                agreement of the Parties with regard to its subject matter, and
                supersedes all previous written or oral representations,
                agreements and understandings between the Parties.

        10.8    NO MODIFICATION. This Agreement may be changed only by a writing
                signed by the Parties.

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

        10.10   WAIVER. The waiver by either 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 either 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.

        10.11   SEVERABILITY. In the event that any one or more of the
                provisions contained in this Agreement shall, for any reason, be
                held to be invalid, illegal or unenforceable in any respect,
                such invalidity, illegality or unenforceability shall not affect
                any other provisions of this Agreement, and all other provisions
                shall remain in full force and effect. If any of the provisions
                of this Agreement is held to be excessively broad or invalid,
                illegal or unenforceable in any jurisdiction, it shall be
                reformed and construed by limiting and reducing it so as to be
                enforceable to the maximum extent permitted by law in
                conformance with its original intent. In the event that after
                such reformation, a Party's rights or obligations are materially
                changed, then such Party may terminate this Agreement.

        10.12   FORCE MAJEURE. Any delays in or failures of performance by
                either party under this Agreement shall not be considered a
                breach of this Agreement if and to the extent caused by
                occurrences beyond the reasonable control of the party affected,
                including but not limited to: acts of God, acts, regulations or
                laws of any government; strikes or other concerted acts of
                workers; fires; earthquakes; floods; explosions; riots; wars;
                rebellion; and sabotage. Any time for performance imposed
                hereunder shall be extended by the actual time of delay caused
                by any such occurrence.

                                      -17-
<PAGE>   18

        10.13   LIMITATION OF LIABILITY. NEITHER. PARTY SHALL BE LIABLE TO THE
                OTHER FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT
                DAMAGES ARISING OUT OF THIS AGREEMENT, HOWEVER CAUSED, UNDER ANY
                THEORY OF LIABILITY.

        10.14   SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
                inure to the benefit of the Parties hereto and their successors
                and permitted assigns.

        10.15   COUNTERPARTS. This Agreement may be executed in any number of
                counterparts, each of which shall be deemed an original but all
                of which together shall constitute one and the same instrument.

        10.16   APPLICABLE LAW. This Agreement shall in all events and for all
                purposes be governed by, and construed in accordance with, the
                law of The Commonwealth of Massachusetts without regard to any
                choice of law principle that would dictate the application of
                the law of another jurisdiction.

        10.17   HSR. Xcyte represents and warrants that neither Xcyte nor any
                ultimate parent entity of Xcyte has $10 million in sales or
                total assets and therefore does not meet the size of person test
                under Title II of the Hart-Scott-Rodino Antitrust Improvements
                Act of 1976 and the regulations promulgated thereunder.

                                      -18-
<PAGE>   19

        IN WITNESS WHEREOF, duly-authorized representatives of the Parties have
signed this Agreement as a document under seal as of the Effective Date.

GENETICS INSTITUTE, INC.

By /s/ Egon E. Berg
   -------------------------------
Print Name
           -----------------------
Title
      ----------------------------

XCYTE THERAPIES, INC.

By /s/ Ronald Jay Berenson
   -------------------------------
Print Name Ronald Jay Berenson
           -----------------------
Title President & CEO
      ----------------------------

                                      -19-<PAGE>   1

                                                                   EXHIBIT 10.23

                        NON-EXCLUSIVE LICENSE AGREEMENT
             [As Amended by FHCRC and Licensee on December 1, 2000]

        This Agreement is entered into as of the 20th day of October, 1999
("Effective Date") by and between the Fred Hutchinson Cancer Research Center, a
Washington non-profit corporation ("FHCRC") and Xcyte Therapies, Inc
("LICENSEE"), a Delaware corporation having a place of business at 2203 Airport
Way S., Suite 300, Seattle, Washington 98134. All references to LICENSEE shall
include its AFFILIATES.

                                    RECITALS

        A. FHCRC has developed and owns the valuable [*];

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

        C. LICENSEE desires to obtain a worldwide license in and to the
above-referenced rights; and

        D. FHCRC is willing to grant such a license to LICENSEE subject to the
terms and conditions of this Agreement.

                              TERMS AND CONDITIONS

        The parties agree as follows:

                             ARTICLE 1 - DEFINITIONS

1.1 "AFFILIATE" shall mean any corporation or other entity which is directly or
indirectly controlling, controlled by or under the common control with a party
hereto which has agreed in writing to be bound by the terms of this Agreement.
For the purpose of this Agreement, "control" shall mean the direct or indirect
ownership of at least thirty percent (30%) of the outstanding shares or other
voting rights of the subject entity to elect directors, or if not meeting the
preceding, any entity owned or controlled by or owning or controlling at the
maximum control or ownership right permitted in the country where such entity
exists. "Affiliates" includes only Affiliates of LICENSEE and does not include
Affiliates of LICENSEE's Affiliates.

1.2 "LICENSED CELL LINE" means the [*]. Such derivatives and modifications shall
not include antibodies which are not derived from or developed using the
Licensed Materials and which have been entirely made with the use of information
or materials available in the public domain.

1.3 "LICENSED MONOCLONAL ANTIBODY" means the [*], produced by or derived from
the licensed CELL LINE.

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.
<PAGE>   2

1.4 "LICENSED PRODUCTS" means any product, including reagents, devices, kits and
packages that contain, or are derived from, or result from the use of the
LICENSED MONOCLONAL ANTIBODY including without limitation beads coated with the
LICENSED MONOCLONAL ANTIBODY either by itself or in combination with other
antibodies. LICENSED PRODUCTS does not include the LICENSED CELL LINE.

1.5 "LICENSED SERVICES" means any service performed for a third party using a
LICENSED PRODUCT or the LICENSED MONOCLONAL ANTIBODY. Services performed on
biological materials from a single patient which are clinically defined to
constitute a single course of treatment shall constitute the performance of a
single LICENSED SERVICE procedure for purposes of Section 5.2 of this Agreement.

1.6 "FIELD" means [*].

1.7 "NET SALES" means the amount actually received by LICENSEE and its
AFFILIATES or sublicensees on sales of LICENSED PRODUCTS and LICENSED SERVICES
less:

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

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

        (c) To the extent separately stated on purchase orders, invoices or
        other documents of sales, taxes levied on and/or other governmental
        charges made as to production, sale, transportation, delivery or use and
        paid by or on behalf of LICENSEE; and/or Import and I or export duties
        actually paid.

        (d) NET SALES shall include all consideration received for a sale and
        shall be based on the usual full arms length third party price in the
        event that LICENSED PRODUCT is transferred at a lower sum.

                                ARTICLE 2 - GRANT

2.1 Non-Exclusive License. FHCRC hereby grants to LICENSEE and LICENSEE accepts
subject to the terms and conditions hereof the following licenses:

        (a) a non-exclusive license to use, possess, culture and employ the
        LICENSED CELL LINE at its business premises solely in the United States;

        (b) a worldwide, non-exclusive license to the LICENSED MONOCLONAL
        ANTIBODY to make and have made, to use, to sell, have sold and offer for
        sale the LICENSED PRODUCTS and the LICENSED SERVICES in the FIELD for
        the term of this Agreement (collectively the "Licenses").
        Notwithstanding any other provision of this Agreement, (1) LICENSEE and
        its Affiliates shall not use the LICENSED CELL LINE or LICENSED
        MONOCLONAL ANTIBODY for any purpose other than that expressly described
        in this Agreement (2) shall not transfer the LICENSED CELL LINE to any

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

                                      -2-
<PAGE>   3

        third party or AFFILIATE for any purpose except to a sublicensee as
        provided in Section 2.2(a) of this Agreement and (3) shall in no event
        transfer the LICENSED CELL LINE outside of the United States.

2.2 Sublicensing

        (a) LICENSEE shall have no right or power to grant sublicenses of the
        LICENSED CELL LINE, under section 21. (a), except LICENSEE shall have
        the right to sublicense third parties to make the LICENSED MONOCLONAL
        ANTIBODY on behalf of LICENSEE solely for the use of LICENSEE, its
        AFFILIATES and sublicensees subject to FHCRC's prior written consent,
        which consent shall not be unreasonably withheld. If FHCRC does not
        respond in thirty (30) days to written request for consent from
        LICENSEE, such non-response shall constitute consent by FHCRC hereunder.
        In addition to any other requirements imposed under this Agreement, a
        sublicense of the LICENSED CELL LINE shall require that the LICENSED
        CELL LINE be maintained in and not transferred from the United States
        and will prohibit the sublicensee from sublicensing or otherwise
        transferring the LICENSED CELL LINE to any other person or entity. Upon
        the prior written approval of FHCRC, which shall not be unreasonably
        withheld, LICENSEE may sublicense on third party to make the LICENSED
        MONOCLONAL ANTIBODY in Europe on behalf of LICENSEE solely for the use
        of LICENSEE, its AFFILIATES and sublicensees upon terms and conditions
        agreeable to FHCRC. A determination by FHCRC that a sublicense will
        affect adversely its rights in the LICENSED CELL LINE or the LICENSED
        MONOCLONAL ANTIBODY or its ability to enforce those rights shall be
        deemed a reasonable basis to withhold consent to that sublicense for
        purposes of this Section 2.2(a).

        (b) LICENSEE may grant and authorize sublicenses to permit third parties
        to perform LICENSED SERVICES and to make, have made, use and sell
        LICENSED PRODUCTS (but not the LICENSED CELL LINE) within the scope of
        the License described in Section 2.1(b) of this Agreement with FHCRC's
        prior written consent, which consent will not be unreasonably withheld.
        If FHCRC does not respond in thirty (30) days to written request for
        consent from LICENSEE, such non-response shall constitute consent by
        FHCRC hereunder. All sublicenses granted by LICENSEE under this Section
        2.2(b) shall include a requirement that the sublicensesee use
        reasonable efforts to introduce the LICENSED PRODUCTS into the
        commercial market as soon as reasonably possible, consistent with sound
        and reasonable business practices and judgment, and thereafter endeavor
        to keep LICENSED PRODUCTS reasonably available to the public.

        (c) In addition to any other requirements of this Agreement, any
        sublicense agreement under this Section 2.2 shall bind the sublicensee
        to meet all LICENSEE's obligations to FHCRC under this Agreement.
        Royalties charged for sublicenses by LICENSEE shall be commercially
        reasonable. LICENSEE shall promptly provide FHCRC with a copy of any
        sublicense agreement subject to the confidentiality provisions of
        Article 10 of this Agreement.

                                      -3-
<PAGE>   4

        (d) Notwithstanding 2.2 (a)-(c), LICENSEE may transfer the LICENSED
        MONOCLONAL ANTIBODY to third parties, and if required by such third
        party, sublicense the LICENSED MONOCLONAL ANTIBODY for the purpose of
        testing, analysis, development or manufacturing of LICENSED PRODUCTS or
        LICENSED SERVICES to be sold or offered for sale by LICENSEE or
        authorized sublicensees; provided that the third party to whom the
        transfer is made has agreed (1) in writing to use the LICENSED
        MONOCLONAL ANTIBODY solely for that limited purpose and has agreed (2)
        not to make, use or sell or offer for sale or otherwise distribute or
        exploit the LICENSED MONOCLONAL ANTIBODY or any LICENSED PRODUCT or
        LICENSED SERVICE and (3) to be bound by the Confidentiality provisions
        in Article 10 of this Agreement.

2.3 Restrictions on License. Notwithstanding any other provision of this
Agreement, the License is subject to the following policies, obligations and/or
conditions:

        (a) FHCRC's Patents and Inventions Policy adopted September 30, 1983,
        Public Laws 96-517 and 98-620 and FHCRC's obligations under agreement
        with other sponsors of research. Any right granted in this Agreement
        greater than that permitted under Public Laws 96-5 17 or 98-620 shall be
        subject to modification as may be required to conform to the provisions
        of the statutes.

        (b) LICENSEE agrees during the term of the License that any LICENSED
        MONOCLONAL ANTIBODY produced for sale in the United States will be
        manufactured substantially in the United States.

                          ARTICLE 3 - TERM OF AGREEMENT

3.1 Term. The term of this Agreement commences on the Effective Date and,
subject to earlier termination as provided in Article 9, shall remain in effect
for fifteen (15) years following the first sale of a LICENSED PRODUCT or
LICENSED SERVICE by LICENSEE to a customer who is not an AFFILIATE or
sublicensee ("First Commercial Sale"). Upon expiration of the term, provided
LICENSEE is not in material breach of this Agreement, the licenses granted
LICENSEE under this Agreement shall be deemed fully paid-up.

                    ARTICLE 4 - DELIVERY OF LICENSED MATERIAL

4.1 Delivery of [*]. Within thirty (30) days of receipt by FHCRC of any Signing
Fee owed under this Agreement, the Effective Date, FHCRC shall provide to
LICENSEE [*] from the Manufacturer's Working Cell Bank ("MWCB").

4.2 Replacement of [*]. If the [*] dies during the Term of this Agreement, FHCRC
will, after it has been reimbursed its reasonable costs and expenses by
LICENSEE, and no more than two occasions during the Term, provide to LICENSEE
sufficient quantities of additional seed stock from the MWCB to replace the cell
line, but in no event more then a total of two additional vials.

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

                                      -4-
<PAGE>   5

4.3 Antibody Production. The parties acknowledge that LICENSEE has contracted
with FHCRC for production and supply of the [*] pursuant to a Laboratory
Services Agreement dated even herewith.

                              ARTICLE 5 - PAYMENTS

5.1 Signing Fee. LICENSEE shall pay to FHCRC a non-refundable signing fee in the
sum of Fifty Thousand Dollars ($50,000). FHCRC acknowledges receipt of Twenty
Five Thousand Dollars ($25,000). The remaining Twenty Five Thousand Dollars
shall be due and payable within five (5) days of the Amendment Effective Date.

5.2 Earned Royalties. LICENSEE shall pay to FHCRC a royalty in the amount of [*]
of the NET SALES of all LICENSED PRODUCTS and [*] of the NET SALES of all
LICENSED SERVICES sold by LICENSEE during the Term. The royalty payable with
respect to the performance of a single LICENSED SERVICE procedure shall not
exceed [*] per single LICENSED SERVICE procedure (the "LICENSED SERVICES Royalty
Cap") for a period of three (3) years following the date of the first commercial
sale of a LICENSED SERVICE hereunder. Thereafter, the LICENSED SERVICES Royalty
Cap shall increase at the rate of [*] per calendar year. LICENSEE shall also pay
FHCRC a) [*] of all non-royalty consideration other than equity and [*] of all
non-royalty consideration which is equity received as a result of a sublicense
of LICENSED SERVICES, b) and [*] of all non-royalty consideration received as a
result of a sublicense of LICENSED PRODUCTS, all within thirty (30) days of
receipt of such consideration; provided, however, that to the extent the
non-royalty consideration received as a result of a sublicense is paid to
LICENSEE as funding for a specific research project, LICENSEE  may at its option
elect to give FHCRC a negotiable promissory note in the principal amount of such
funding payable in twenty-four (24) months from the date the funding is received
by LICENSEE together with interest thereon at a per annum rate equal to the
prime rate of Bank of America, adjusted quarterly. Non-cash consideration
received by LICENSEE on account of a sublicense shall be appraised at LICENSEE's
expense using a third party acceptable to FHCRC. Non-cash consideration
includes, without limitation, debt, equity or other financial instruments, real
property, tangible personal property, rights and patents, patent applications,
trade secrets and licenses to such patents, patent applications and trade
secrets. Non-royalty sublicense income includes, without limitation, signing
fees, upfront fees, license issue fees, license maintenance fees, milestone
payments or other payments paid as consideration for the right to sell or
otherwise distribute LICENSED PRODUCTS or LICENSED SERVICES whether structured
as a sublicense, joint venture, collaboration or other arrangement. On sales
between LICENSEE and its AFFILIATES or authorized sublicensees for resale
royalties shall be paid on the resale.

5.3 Combined Products. In the event that any of the LICENSED PRODUCTS or
LICENSED SERVICES are used or sold by LICENSEE in combination as a single
product or service with one or more other product(s) or service(s) whose sale
and/or use are not within the scope of the this Agreement, and do not entail the
use of the LICENSED MONOCLONAL ANTIBODY, NET SALES from such sales and/or use
for purposes of calculating the amounts due under Section 5.2 above shall be
calculated by multiplying the NET SALES of that combination by the faction
A/(A+B), where A is the gross selling price of the LICENSED PRODUCT or LICENSED
SERVICE sold separately and B is the gross selling price of the other product or
service sold separately. In the event that no such separate sales or use are
made by LICENSEE, NET SALES for purposes of royalty determination shall be as
reasonably allocated by LICENSEE between such LICENSED PRODUCT or LICENSED
SERVICE and such other product or service, based upon their relative importance
and proprietary protection. It is

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

                                      -5-
<PAGE>   6

understood and agreed that LICENSEE intends to use LICENSED PRODUCTS and
LICENSED SERVICES in connection with products and services provided by LICENSEE
which do not entail the use of the LICENSED MONOCLONAL ANTIBODY, and that such
products and services shall be subject to this Section 5.3.

5.4 One Royalty. No more than one royalty payment shall be due with respect to a
sale of a particular LICENSED PRODUCT. No royalty shall be payable under this
Article 5 with respect to LICENSED PRODUCTS, distributed at no charge, for use
in research and/or development, in clinical, in clinical trials or as
promotional samples. When a LICENSED PRODUCT is used, sold or sublicensed as
part of LICENSED SERVICES, the royalty rate and other changes applicable to
LICENSED SERVICES shall apply and no royalty or charge shall be made for the
LICENSED PRODUCT in that case.

5.5 Equity Consideration. Within thirty days of the Amendment Effective Date
Xcyte Therapies, Inc. will issue Equity Consideration and deliver to FHCRC [*]
shares of common stock of Xcyte Therapies, Inc. These shares will be issued by
Xcyte Therapies, Inc. under a stock subscription agreement acceptable to FHCRC.

                 ARTICLE 6 - REPORTING AND ROYALTY PAYMENT TERMS

6.1 First Sales. LICENSEE shall report to FHCRC the date of first sale of
LICENSED PRODUCTS and or LICENSED SERVICES in each country within thirty (30)
days of occurrence.

6.2 Sales Reports and Royalty Payments. Commencing upon the First Commercial
Sale, LICENSEE shall submit to FHCRC within sixty (60) days after June 30 and
December 31 of each year during the Term, and upon the effective termination Of
this Agreement, reports for the preceding six (6) month period identifying the
amount of the LICENSED PRODUCTS or LICENSED SERVICES sold by LICENSEE, its
AFFILIATES and sublicensees in each country, the sales volume and NET SALES, and
the amount of royalty due to FHCRC together with payment of such royalty amount.
Such report shall be certified as correct by an officer of LICENSEE and shall
include a detailed listing of all deductions from NET SALES, sublicensee income
or from royalties as specified herein. If no royalties are due to FHCRC for any
reporting period, the written report shall so state. All payments due hereunder
shall be paid in United States Dollars. If any currency conversion shall be
required in connection with the payment of any royalties hereunder, such
conversion shall be made by using the exchange rate for the purchase of United
States Dollars reported by the Bank of America on the last business day of the
calendar quarter to which such royalty payments relate. If at any time legal
restrictions prevent the prompt remittance of any royalties owed on NET SALES in
any jurisdiction, LICENSEE shall notify FHCRC and make such payments by
depositing the amount thereof in local currency in a bank account or other
depository in such country in the name of FHCRC. All payments shall be without
deduction of exchange, collection or other charges. Without regard to or waiver
of any other remedies that may be available under this Agreement, any royalty
payments not made when due shall bear interest at the rate of [*] per annum,
compounded daily.

6.3 Withholding Taxes on Royalties. To the extent that any earned royalties due
FHCRC under this Agreement are subject to taxation where the taxes are imposed
on FHCRC, FHCRC agrees to bear such taxes. FHCRC hereby authorizes LICENSEE or
sublicensee to withhold such taxes from the payment which are otherwise payable
to FHCRC in accordance with this Agreement if LICENSEE or sublicensee is either
required to do so under the tax laws of the

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

                                      -6-
<PAGE>   7

country of sale or in the United States or directed to do so by an agency of
either such government. LICENSEE shall furnish FHCRC with relevant documentation
showing assessment of the taxes and the best available evidence of payment
whenever LICENSEE or sublicensee deducts such tax from any payments due FHCRC.

6.4 Confidentiality of Reports. All such reports shall be maintained in
confidence by FHCRC, except as required by law, including Public Laws 96-517 and
98-620.

                           ARTICLE 7 - RECORD KEEPING

7.1 Recordkeeping. LICENSEE shall maintain and require each sublicensee to
maintain complete and accurate books of account and records showing all sales of
LICENSED PRODUCTS and all NET SALES (including the amount of gross sales and
allowable deductions attributable to such sales). For purposes of verifying the
accuracy of the royalties paid by LICENSEE pursuant to this Agreement or
verifying performance of LICENSEE of any other obligation to FHCRC hereunder,
such books and records shall be open to inspection and copying, during usual
business hours, by an independent certified public accountant. Such accountant
shall not disclose to FHCRC any information other than information relating to
accuracy of reports and calculations of amounts due to FHCRC made under this
Agreement. In the event that any such inspection shows any underreporting and
underpayment by LICENSEE in excess of five percent (5%) for any twelve (12)
month period, then LICENSEE shall pay the cost of such examination. Such books
and records shall be maintained for at least three (3) years following the
reporting period to which the books and records relate.

                    ARTICLE 8 - INDEMNIFICATION AND INSURANCE

8.1 Indemnification. LICENSEE, including any successor to LICENSEE, shall, and
shall obligate its AFFILIATES or its sublicensees, if any, to indemnify, defend
and hold harmless FHCRC, its AFFILIATES and their respective directors,
officers, employees, agents and contractors (each an "Indemnitee") from and
against any and all liabilities, damages, losses, costs or expenses (including
reasonable attorneys' and professionals' fees and other expenses of litigation
and/or arbitration (a "Liability")) resulting from a claim, suit or proceeding
brought against an Indemnitee, arising out of or in connection with or resulting
from (i) any misrepresentation with regard to, or breach of, any of the
representations and warranties of LICENSEE set forth in Section 12 of this
Agreement, (ii) the use, development, manufacture, distribution, sublicensing or
sale of the LICENSED PRODUCTS or LICENSED SERVICES by LICENSEE or its AFFILIATES
or sublicensees except to the extent caused by the negligence or willful
misconduct of FHCRC, including without limitation any Liabilities resulting from
infringement of third party intellectual property rights, and (iii) any other
activities performed by LICENSEE or its AFFILIATES or sublicensees pursuant to
this Agreement.

8.2 FHCRC. FHCRC shall indemnify, defend and hold harmless LICENSEE and its
directors, officers and employees (each an "Indemnitee") from and against any
and all liabilities, damages, losses, costs or expenses (including reasonable
attorneys' and professionals' fees and other expenses of litigation and/or
arbitration) resulting from a claim, suit or proceeding brought against an
Indemnitee, arising out of or in connection with any misrepresentation with
regard to,

                                      -7-
<PAGE>   8

or breach of, any of the representations and warranties of FHCRC set forth in
Section 12, except to the extent caused by the negligence or willful misconduct
of LICENSEE.

8.3 Insurance. In the event of any testing or use in human subjects of LICENSED
PRODUCTS, LICENSEE will have FHCRC named as an additional insured on LICENSEE'S
product liability insurance policies, with limits of at least [*]. Upon the
First Commercial Sale, LICENSEE will have FHCRC named as an additional insured
on LICENSEE's product liability insurance policies, with limits of [*]. Such
policies shall not be terminated without thirty (30) days prior written notice
to FHCRC. LICENSEE shall provide FHCRC with written evidence of the insurance
and a copy of the policy upon request.

8.4 Legal Action. In the event any legal action is commenced against LICENSEE
involving the LICENSED MONOCLONAL ANTIBODY, LICENSED CELL LINE, LICENSED
PRODUCTS and/or LICENSED SERVICES, whether or not FHCRC is named as a party to
the legal action, LICENSEE shall keep FHCRC or its attorney nominee fully
advised of the progress of the legal action and shall reimburse FHCRC for its
reasonable legal costs (including attorney's fees) incurred as a result of
FHCRC's employees or agents being called as witnesses therein or asked to
testify for or consult with LICENSEE in connection therewith. FHCRC agrees to
cooperate with LICENSEE, to the extent reasonably possible, in any legal action
brought pursuant to this Article 8.

                         ARTICLE 9 - DISPUTE RESOLUTION

9.1 The parties do not favor litigation. Therefore, unless a party is entitled
to injunctive relief, as ultimately determined by a court of competent
jurisdiction, because (i) the party is exposed to irreversible losses unless the
conduct is enjoined, (ii) there is no adequate remedy in the form of
compensatory damages, and (iii) there is a substantial likelihood that the party
will prevail on the merits, the parties agree to submit all disputes relating to
the interpretation, enforcement, or breach of this Agreement to non-binding
mediation before a mediator acceptable to both parties in accordance with its
Commercial Mediation Rules or such alternative mediator as the parties may
approve in writing.

9.2 If the parties are unable to resolve their differences through mediation as
provided in this Article 14 or if the matter is not subject to mediation under
this Article 14, either party may initiate a lawsuit to resolve the dispute.

                          ARTICLE 10 - CONFIDENTIALITY

10.1 Definition of Confidential Information. It is contemplated that in the
course of the performance of this Agreement each party may, from time to time,
disclose proprietary and confidential information to the other ("Confidential
Information"). Confidential Information shall include all disclosures made
hereunder or under previous confidentiality agreements between the Parties in
writing and identified as being "Confidential," or if disclosed orally, which
are reduced to writing within thirty (30) days of oral disclosure and clearly
identified as being "Confidential." FHCRC and LICENSEE agree that this Agreement
shall supersede all

*Certain information on this page has been omitted and filed
 separately with the Commission. Confidential treatment has
 been requested with respect to the omitted portions.

                                      -8-
<PAGE>   9

previous confidentiality agreements between the parties and all disclosures made
under any previous confidentiality agreements shall be subject to the terms of
this Section 10.

10.2 Nondisclosure of Confidential Information. Except to the extent expressly
authorized by this Agreement or otherwise agreed to in writing, during the term
of this Agreement and for a period of five (5) years following the termination
of this Agreement, each party shall take such reasonable measures to protect the
secrecy of and avoid disclosure or use of such Confidential Information of the
other party in order to prevent it from falling into the public domain or the
possession of any person other than those persons authorized under this
Agreement to have any such information. Such measures shall include, but not be
limited to, the highest degree of care the receiving party takes to protect its
own proprietary and confidential information of a similar nature, which shall be
no less than reasonable care. Neither party shall disclose or permit disclosure
of any Confidential Information of the other party to third parties or to
employees of the party receiving Confidential Information, other than directors,
officers, employees, consultants and agents who are required to have the
information in order to carry out the terms of this Agreement. Each party shall
notify the other in writing of any actual or suspected misuse, misappropriation
or unauthorized disclosure of the other party's Confidential Information that
may come to such party's attention. Not withstanding the foregoing, Confidential
Information from FHCRC shall include but not be limited to devices, cell lines,
monoclonal antibodies, methods, processes, data regarding testing and
experiments, drawings, documentation, patent applications and product
development plans, is FHCRC's confidential, proprietary, trade secret
information.

10.3 Exceptions. The following information shall not be considered Confidential
Information:

        (a)     information which was already known to the receiving party,
                other than under an obligation of confidentiality to the
                disclosing party, at the time of disclosure by the other party
                as shown by the receiving parties written records;

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

        (c)     information which becomes 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)     information which 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; or

        (e)     information which was developed independently without reference
                to Confidential Information received from the other party
                hereunder as evidenced by the receiving party's own written
                records.

10.4 Permitted Usage. Notwithstanding the provisions of Section 10.1 above, the
receiving party may use or disclose Confidential Information of the disclosing
party in connection with the

                                      -9-
<PAGE>   10

exercise of its rights hereunder (including commercialization and/or
sublicensing) or the fulfillment of its obligations and/or duties hereunder and
in filing for, prosecuting or maintaining any proprietary rights, prosecuting or
defending litigation, complying with applicable governmental regulations and/or
submitting information to tax or other governmental authorities; provided that
if the receiving party is required by law to make any public disclosures of
Confidential Information of the disclosing party, to the extent it may legally
do so, it shall give reasonable advance notice to the disclosing party of such
disclosure and shall use its reasonable efforts to secure confidential treatment
of Confidential Information prior to its disclosure (whether through protective
orders or otherwise); and, provided, further, that to the extent that the
receiving party is disclosing information to a third party for commercialization
or sublicensing that the third party has agreed to terms at least as restrictive
as the terms of this Article 10 and may not further disclose the information to
any third party and FHCRC has been provided with a copy of the agreement.

                      ARTICLE 11 - TERMINATION OF AGREEMENT

11.1 Termination on Payment Default. At FHCRC's option, FHCRC may terminate this
Agreement effective thirty (30) days after giving written notice in the event
LICENSEE fails to pay any royalties or other amounts owed under this Agreement
when due. During the thirty (30) day period after written notice of payment
default, LICENSEE has the right to cure any payment default and prevent
termination under this Section 11.1.

11.2 Termination on Other Defaults. This Agreement may be terminated by either
party upon a material breach by the other party other than a payment default
which is governed by Section 11.1, effective ninety (90) days after giving
written notice to the breaching party of such termination under this Section and
specifying such breach, unless the breach is cured or shown to be non-existent
within the ninety (90) day period, in which case the Agreement will remain in
effect.

11.3 Termination on Bankruptcy or Insolvency. Subject to any provisions of the
federal bankruptcy laws limiting rights of termination, FHCRC may terminate this
Agreement if LICENSEE files for protection under federal bankruptcy laws,
becomes insolvent, makes an assignment for the benefit of creditors, appoints or
suffers appointment of a receiver or trustee over its property, files a petition
under any bankruptcy or insolvency act or has any such petition filed against it
or files for dissolution.

11.4 Termination by LICENSEE. LICENSEE may terminate this Agreement in its
entirety for any reason or no reason with thirty (30) days written notice to
FHCRC.

11.5 Effect of Termination. Upon termination of this Agreement, each party will
turn over to the other party all Confidential Information of such other party
and all documents or data storage media containing any such Confidential
Information and any and all copies thereof and will delete all such Confidential
Information from its documents or data storage media. In addition, upon
termination of this Agreement, LICENSEE shall return to FHCRC or destroy, at
FHCRC's option and expense all of the LICENSED CELL LINE and all LICENSED
MONOCLONAL ANTIBODY in possession of LICENSEE or any AFFILIATE sublicensee or
other third party

                                      -10-
<PAGE>   11

who has received the LICENSED CELL LINE or LICENSED MONOCLONAL ANTIBODY from
LICENSEE provided that LICENSEE shall be entitled to sell LICENSED PRODUCT as
provided in Section 11.7 of this Agreement. Upon termination of this Agreement
the Licenses shall terminate. Neither party shall be able to claim from the
other party any damages or compensation for loses or expenses resulting solely
from termination of this Agreement as permitted under this Section 11.

11.6 Effect of Termination on Sublicensees. Any sublicenses granted by LICENSEE
under this Agreement shall provide for termination or assignment to FHCRC at
FHCRC's sole discretion, of LICENSEE's interests therein upon termination of
this Agreement for any reason.

11.7 Sale of Products on Termination. In the event of any early termination of
this Agreement in accordance with this Article 11, for a period of six (6)
months after termination LICENSEE shall have the right to sell all LICENSED
PRODUCTS on hand at the time of such termination, provided that LICENSEE shall
make all payments with respect thereto to FHCRC in accordance with this
Agreement.

11.8 Final Report. Upon termination, a final report shall promptly be submitted
in accordance with the provisions of Section 5.4, together with any royalty
payments and unreimbursed patent expenses due to FHCRC.

11.9 Survival of Rights and Duties. Rights and duties hereunder which by their
terms or nature survive the termination or expiration of this Agreement shall so
survive such termination or expiration, including without limitation LICENSEE's
duties under Articles 5 through 11 and 15.

                   ARTICLE 12 - REPRESENTATIONS AND COVENANTS

12.1 LICENSEE Representations and Warranties. LICENSEE represents and warrants
to FHCRC that it has obtained and will at all times during the Term hold and
comply with all licenses, permits and authorizations necessary to LICENSEE's
complete and timely performance of its obligations under this Agreement which
are required under any applicable statutes, laws, ordinances, rules and
regulations of the United States as well as those of all applicable foreign
governmental bodies, agencies and subdivisions, having, asserting or claiming
jurisdiction over LICENSEE or LICENSEE's performance of the terms of this
Agreement. In particular, LICENSEE:

        (a) will be responsible for obtaining all necessary United States Food
        and Drug Administration approvals and all approvals required by similar
        governmental bodies or agencies of all applicable foreign countries; and

        (b) understands and acknowledges that the transfer of certain
        commodities and technical data is subject to United States laws and
        regulations controlling the export of such commodities and technical
        data, including all Export Administration Regulations of the United
        States Department of Commerce. These laws and regulations, among other
        things, prohibit or require a license for the export of certain types of
        technical data to certain specified countries. LICENSEE hereby agrees
        and gives written assurance that it

                                      -11-
<PAGE>   12

        will comply with all United States laws and regulations controlling the
        export of commodities and technical data, that it will be solely
        responsible for any violation of such by LICENSEE or its AFFILIATES or
        sublicensees, and that it will defend and hold FHCRC harmless in the
        event of any legal action of any nature occasioned by such violation.

12.2 FHCRC Representations and Covenants. FHCRC warrants and represents to
LICENSEE that: (i) it has and will maintain the full right and authority to
enter into this Agreement and grant the rights and licenses granted herein; (ii)
it has not previously granted and will not grant any rights or licenses in
conflict with the rights and licenses granted herein; (iii) to its knowledge no
action, suit or claim has been initiated or threatened with respect to the
LICENSED MATERIALS that would call into question FHCRC's right to enter into and
perform its obligations under this Agreement;

12.3 Disclaimer of Warranty. To Licensee, its AFFILIATES, its sublicensees and
customers or otherwise, express or implied, oral or written, arising by law,
course of dealing, course of performance usage of trade or otherwise, with
respect to the LICENSED CELL LINE, LICENSED MONOCLONAL ANTIBODY, LICENSED
PRODUCT, LICENSED TECHNICAL INFORMATION, including without limitation all
warranties as to the condition, manufacture, sale, use, operation, design,
quality, capacity, latent defects, compliance with any law, ordinance,
regulation, rule, contract or specification, "merchantability," fitness for any
particular purpose, and all other qualities and characteristics whatsoever.
FHCRC neither assumes nor authorizes LICENSEE or any person to assume for FHCRC
any liability in connection with the manufacture, sale or use of any LICENSED
PRODUCT. In no event shall FHCRC be liable for any consequential, incidental or
special damages or expenses (including without limitation labor, transportation,
loss of use, loss of profits and damage to persons or property) even if FHCRC
has been advised of the possibility thereof.

                  ARTICLE 13 - COMMERCIALLY REASONABLE EFFORTS

13.1 Reasonable Efforts. LICENSEE shall use reasonable effort to introduce the
LICENSED PRODUCTS into the commercial market within five (5) years of the
Effective Date, consistent with sound and reasonable business practices and
judgment, and thereafter endeavor to keep LICENSED PRODUCTS reasonably available
to the public.

                              ARTICLE 14 - NOTICES

14.1 Notices. All communications, including payments, notices, demands or
requests required or permitted to be given hereunder, shall be given in writing
and shall be:

        (a)     personally delivered;

        (b)     sent by facsimile or other electronic means of transmitting
                written documents; or

        (c)     sent to the parties at their respective addresses indicated
                herein by registered or certified U.S. mail, return receipt
                requested and postage prepaid, or by private overnight

                                      -12-
<PAGE>   13

        mail courier service. The respective addresses to be used for all such
        payments, notices, demands or requests are as follows:

If to FHCRC:      Fred Hutchinson Cancer Research Center
                  1100 Fairview Ave. N., C2M-027
                  Seattle, Washington 98109
                  Attention:   Rosalie Beer,
                  Senior Licensing Associate
                  Facsimile:   (206) 667-4732

With copies to:   Douglas J. Shaeffer, Esq.
                  Fred Hutchinson Cancer Research Center
                  1100 Fairview Ave. N., C2M-027
                  Seattle, Washington 98109
                  Facsimile:   (206) 667-6590

If to LICENSEE:   Xcyte Therapies, Inc.
                  2203 Airport Way South, Suite 300
                  Seattle, WA 98134
                  Attention: Business Development
                  Facsimile:   (206) 328-7316

With copies to:   Venture Law Group
                  4750 Carillon Point
                  Kirkland, Washington 98033-7355
                  Attn:    William W. Ericson
                  Facsimile:   (425) 739-8750

If personally delivered, such communication shall be deemed delivered upon
actual receipt. If electronically transmitted pursuant to this section, such
communication shall be deemed delivered when transmitted. If sent by overnight
courier pursuant to this section, such communication shall be deemed delivered
within twenty-four hours of deposit with such courier. If sent by U.S. mail
pursuant to this section, such communications shall be deemed delivered as of
the date of delivery indicated on the receipt issued by the relevant postal
service, or, if the addressee fails or refuses to accept delivery, as of the
date of such failure or refusal. Any party to this Agreement may change their
address for the purposes of this Agreement by giving notice in accordance with
this Section.

                           ARTICLE 15 - MISCELLANEOUS

15.1 Governing Law. The rights and obligations of the parties under this
Agreement shall be governed by and construed in accordance with the laws of the
State of Washington.

15.2 Amendments. This Agreement may not be amended except by an instrument in
writing signed by both parties.

                                      -13-
<PAGE>   14

15.3 Assignability. The Agreement shall be binding on the parties hereto and
upon their respective heirs, administrators, successors and assigns. This
Agreement may not be assigned by LICENSEE or by operation of law without the
prior written consent of FHCRC, which consent shall not be unreasonably
withheld; except either party may assign this Agreement, without such consent,
to (i) an AFFILIATE of such party; or (ii) an entity that acquires all or
substantially all of the business or assets of such party to which this
Agreement pertains, whether by merger, reorganization, acquisition, sale or
otherwise, and that agrees in writing to be strictly bound by the terms and
conditions of this Agreement.

15.4 Non-Profit Status. LICENSEE acknowledges that FHCRC is a non-profit
organization qualifying for and holding the status of an exempt organization
under Section 50l(c)(3) of the United States Internal Revenue Code. If the
Internal Revenue Service determines, or a determination by FHCRC based on advice
of legal or tax counsel is reasonably made, that any part or all of this
Agreement will jeopardize FHCRC's Section 501(c)(3) status, the parties agree to
meet and confer in good faith to amend this Agreement to the extent necessary to
satisfy Internal Revenue Service requirements for retention of FHCRC's Section
50l(c)(3) status. If FHCRC and LICENSEE cannot agree within 30 days after
commencing negotiations regarding the amendments to be made to this Agreement in
order for FHCRC to retain its Section 501(c)(3) status, FHCRC may terminate this
Agreement effective upon giving written notice to LICENSEE of termination under
this Section 10.

15.5 Conflicts with Grants. LICENSEE understands and acknowledges that
agreements between FHCRC and agencies of the United States Government funding
FHCRC's programs may contain clauses granting patent and/or other rights to the
agencies or the U.S. Government; LICENSEE agrees that the rights granted to it
under this Agreement shall be subject to any rights of the agencies and the U.S.
Government. If a conflict arises, the provisions of any U.S. Government agency
funding agreement and/or regulation shall prevail over any conflicting
provisions of this Agreement and FHCRC will have no liability to LICENSEE as a
result of such conflict. If such a conflict arises or is reasonably anticipated,
FHCRC will promptly give notice to LICENSEE of the nature of the conflict and
copies of any correspondence relating thereto in accordance with Section 14.1.

15.6 Use of Name. Neither party shall use the name of the other party or reveal
the terms of this Agreement in any publicity or advertising without the prior
written approval of the other party, except that (i) either party may use the
text of a written statement approved in advance by both parties without further
approval; (ii) either party shall have the right to identify the other party and
to disclose the terms of this Agreement as required by applicable securities
laws or other applicable law or regulation; and (iii) either party may disclose
that a licensing relationship exists between the parties and may disclose the
name of the other party in that context.

15.7 Written Notices. All letters, documents, or other materials of a written or
physical nature, required by or relating to this Agreement shall be in English
and sent to the party at the address given in Article 14.

                                      -14-
<PAGE>   15

15.8 Independent Parties. The parties to this Agreement are independent
contractors and not agent of the other. This Agreement shall not constitute a
partnership or joint venture, and neither party may be bound by the other to any
contract, arrangement or understanding except as specifically stated herein.

15.9 Enforceability. Should a court of competent jurisdiction later consider any
provision of this Agreement to be invalid, illegal, or unenforceable, it shall
be considered severed from this Agreement. All other provisions, rights and
obligations shall continue without regard to the severed provision, provided
that the remaining provisions of this Agreement are in accord with the intention
of the parties.

15.10 Actions. In the event any party to this Agreement commences any action or
proceeding, including an appeal of an action or proceeding, against the other,
or otherwise retains an attorney, by reason of any breach or claimed breach of
any provision of this Agreement, or to seek a judicial declaration of rights
hereunder or judicial or equitable relief, the prevailing party in such action
or proceeding shall be entitled to recover its reasonable attorneys' fees and
costs. At the option of FHCRC, venue of any such legal or equitable action shall
lie in Seattle, Washington. LICENSEE hereby submits to the jurisdiction of the
Federal District Court of Western Washington located in Seattle, Washington, and
hereby agrees to accept service of process by certified mail, return receipt
requested, effective upon delivery to LICENSEE.

15.11 Force Majeure. LICENSEE and FHCRC shall not be liable for loss, damage,
detention or delay resulting from any cause whatsoever beyond its reasonable
control or resulting from a force majure, including, without limitation, fire,
flood, strike, lockout, civil or military authority, insurrection, war, embargo,
container or transportation shortage or delay of suppliers due to such causes,
and delivery dates shall be extended to the extent of any delays resulting from
the foregoing or similar causes. The party so affected shall give prompt notice
to the other party of such cause, and shall take whatever reasonable steps are
necessary to relieve the effect of such cause as rapidly as reasonably possible.
The party giving such notice shall thereupon be excused from such of its
obligations hereunder as it is thereby disabled from performing for so long as
it is so disabled and for thirty (30) days thereafter, whichever is longer;
provided, however, that such affected party commences and continues to take
reasonable and diligent actions to cure such cause.

                                      -15-
<PAGE>   16

        IN WITNESS WHEREOF, the parties have executed this Agreement through
duly authorized representatives as of the date first above written.

FRED HUTCHINSON CANCER RESEARCH CENTER

By /s/ Douglas J. Shaeffer
   -------------------------------

Printed
Name Douglas J Shaeffer
Title, V.P. and General Counsel

XCYTE THERAPIES INC.

By /s/ Ronald Jay Berenson
   -------------------------------

Printed
Name Ronald Jay Berenson
     -----------------------------
Title President & CEO
      ----------------------------

                                      -16-

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