Document:

<PAGE>

                                                                    Exhibit 10.7

          Confidential Materials omitted and filed separately with the

         Securities and Exchange Commission. Asterisks denote omissions.

                SPONSORED RESEARCH AND LICENSE AGREEMENT BETWEEN

   CRITICAL THERAPEUTICS, INC. AND NORTH SHORE - LONG ISLAND JEWISH RESEARCH
                                   INSTITUTE
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                     <C>
ARTICLE 1.  DEFINITIONS.........................................        1

         1.1.     "Affiliate"...................................        1
         1.2.     "Effective Date"..............................        2
         1.4.     "First Commercial Sale".......................        2
         1.5.     "License Term"................................        2
         1.6.     "Net Sales"...................................        2
         1.7.     "North Shore Patent Rights"...................        2
         1.8.     "North Shore Technology"......................        3
         1.9.     "North Shore Valid Patent Claim"..............        3
         1.10.    "Principal Investigator"......................        4
         1.11.    "Product(s)"..................................        4
         1.12.    "Research Plan"...............................        4
         1.13.    "Research Term"...............................        4
         1.14.    "Research Year"...............................        4
         1.15.    "Sponsored Research"..........................        4
         1.16.    "Territory"...................................        4

ARTICLE 2.  SPONSORED RESEARCH..................................        4

         2.1.     CTI Support...................................        4
         2.2.     Research Cooperation..........................        5
         2.3.     Conduct of the Sponsored Research.............        5
                  2.3.1.   Use of Research Funding..............        5
                  2.3.2.   Other Funding........................        5
                  2.3.3.   Data.................................        5
                  2.3.4.   Quarterly Reports....................        6
         2.4.     Visit of Facilities...........................        6

ARTICLE 3.  LICENSE.............................................        6

         3.1.     License Grant.................................        6
         3.2.     Government Rights.............................        7
         3.3.     Retention of North Shore Rights...............        7
         3.4.     CTI Diligence.................................        7

ARTICLE 4.  LICENSE FEE, ROYALTIES AND MILESTONES...............        8

         4.1.     License Fees..................................        8
         4.2.     Royalties.....................................        8
                  4.2.1.   Minimum Royalties....................        8
                  4.2.2.   Royalty Reports and Payments.........        9
                  4.2.3.   One Royalty..........................       10
                  4.2.4.   Sublicense Income....................       10
                  4.2.5.   Third-Party Licenses.................       10
         4.3.     Milestone Payments............................       11
</TABLE>

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<TABLE>
<S>                                                                     <C>
ARTICLE 5.  PATENTS.............................................       12

         5.1.     CTI Authority.................................       12
         5.2.     Patent Expenses...............................       12
         5.3.     Right of North Shore to be Informed...........       12
         5.4.     North Shore Rights............................       13
         5.5.     Enforcement of North Shore Patent Rights......       13

ARTICLE 6.  CONFIDENTIALITY AND PUBLICATION.....................       13

         6.1.     Non-Disclosure Obligations....................       13
         6.2.     Release of Obligations........................       14
         6.3.     Publications..................................       14

ARTICLE 7.  REPRESENTATIONS AND WARRANTIES......................       14

         7.1.     Authorization.................................       14
         7.2.     License Warranty..............................       15
         7.3.     Remedies......................................       15

ARTICLE 8.  TERM AND TERMINATION................................       15

         8.1.     Expiration....................................       15
         8.2.     Termination for Cause.........................       15
         8.3.     Effect of Termination.........................       15

ARTICLE 9.  INDEMNIFICATION AND INSURANCE.......................       16

         9.1.     Indemnity.....................................       16
         9.2.     Insurance.....................................       16

ARTICLE 10.  MISCELLANEOUS......................................       16

         10.1.    Force Majeure.................................       16
         10.2.    Assignment....................................       17
         10.3.    Severability..................................       17
         10.4.    Notices.......................................       18
         10.5.    Applicable Law................................       18
         10.6.    Dispute Resolution............................       18
         10.7.    Entire Agreement..............................       19
         10.8.    Headings......................................       19
         10.9.    Independent Contractors.......................       19
         10.10.   Waiver........................................       19
         10.11.   Counterparts..................................       19
         10.12.   Use of Names..................................       20

</TABLE>

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                    SPONSORED RESEARCH AND LICENSE AGREEMENT

      This Sponsored Research and License Agreement (the "Agreement") is made
between Critical Therapeutics, Inc., a Delaware corporation ("CTI") and North
Shore - Long Island Jewish Research Institute, a New York not-for-profit
corporation ("North Shore").

                                    RECITALS

      WHEREAS, CTI desires to support North Shore research in the Field (defined
below) and to receive a license from North Shore in the Field; and,

      WHEREAS, North Shore desires to receive research support from CTI relating
to the Field and is willing to grant CTI a license under its rights in the
Field;

      NOW, THEREFORE, in consideration of the premises and of the covenants
herein contained, CTI and North Shore mutually agree as follows:

                             ARTICLE 1. DEFINITIONS

      For purposes of this Agreement, the terms defined in this Article shall
have the meanings specified below:

      1.1. "Affiliate" shall mean any corporation or other entity which
controls, is controlled by, or is under common control with a party to this
Agreement. A corporation or other entity shall be regarded as in control of
another corporation or entity if it owns or directly or indirectly controls more
than fifty percent (50%) of the voting stock or other ownership interest of the
other corporation or entity, or if it possesses, directly or indirectly, the
power to direct or cause the direction of the management and policies of the
corporation or other entity or the power to elect or appoint fifty percent (50%)
or more of the members of the governing body of the corporation or other entity.

      1.2. "Effective Date" of this Agreement shall mean January 1, 2003.
<PAGE>
      1.3. "Field" shall mean the field of cholinergic anti-inflammatory
pathway-based products and methods.

      1.4. "First Commercial Sale" of any Product shall mean the first sale for
use or consumption by the general public of such Product in a country.

      1.5. "License Term" shall mean the later of ten years from the First
Commercial Sale for each Product or the last to expire of the North Shore Patent
Rights covering each Product on a country-by-country basis.

      1.6. "Net Sales" shall mean the gross amount billed or invoiced and
received by CTI or its Affiliates (but not sublicensees) for sale or other
disposition of Product(s) to independent third parties, less the following: (i)
customary trade, quantity, or cash discounts to the extent actually allowed and
taken; (ii) amounts repaid and credited by reason of rejection or return; and
(iii) to the extent separately stated on purchase orders, invoices, or other
documents of sale, any taxes or other governmental charges levied on the
production, sale, transportation, delivery, or use of the Product that is paid
by or on behalf of CTI or its Affiliates. Net Sales will be determined from the
books and records of CTI and its Affiliates maintained in accordance with
generally accepted accounting principles, consistently applied.

      1.7. "North Shore Patent Rights" shall mean (1) the patent applications
and patents listed on Schedule 1.7 together with any continuations,
continuations-in-part, divisionals, non-provisional applications, patents which
are granted based on any of the aforementioned applications and any reissues,
renewals, reexaminations, substitutions or extensions thereof and any foreign
counterparts to any of the foregoing and (2) all patent applications and granted
patents owned and/or controlled by North Shore which are based on inventions
made during the Research Term of this Agreement by the Principal Investigator
and/or his staff relating to the

                                       2
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Field, together with any continuations, continuations-in-part, divisionals,
non-provisional applications, patents which are granted based on any of the
aforementioned applications and any reissues, renewals, reexaminations,
substitutions or extensions thereof and any foreign counterparts to any of the
foregoing.

      1.8. "North Shore Technology" shall mean (1) all existing confidential and
proprietary information, data, know-how, materials (including biological
materials), inventions (whether patentable or not), models, screens, trade
secrets, patents, patent applications, and other intellectual property of any
kind, whether patented or unpatented, relating to the Field and owned and/or
controlled by North Shore and (2) all confidential and proprietary information,
data, know-how, materials (including biological materials), inventions (whether
patentable or nor), models, screens, trade secrets, patents, patent
applications, and other intellectual property of any kind, whether patented or
unpatented, relating to the Field, owned and/or controlled by North Shore and
developed by the Principal Investigator and/or his staff during the Research
Term of this Agreement.

      1.9. "North Shore Valid Patent Claim" shall mean either (a) a claim of an
issued and unexpired patent included within the North Shore Patent Rights, which
has not been held permanently revoked, unenforceable or invalid by a decision of
a court or other governmental agency of competent jurisdiction, unappealable or
unappealed within the time allowed for appeal, and which has not been admitted
to be invalid or unenforceable through reissue, disclaimer or otherwise or (b) a
claim of any pending patent application included within the North Shore Patent
Rights, which claim was filed in good faith and has not been abandoned or
finally disallowed without the possibility of appeal or refiling of said
application.

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      1.10. "Principal Investigator" shall be Kevin J. Tracey, M.D. If Dr.
Tracey is unable to perform as the Principal Investigator for any reason, CTI
and North Shore shall agree upon a new Principal Investigator mutually
acceptable to both.

      1.11. "Product(s)" shall mean any product in the Field: (1) covered by a
North Shore Valid Patent Claim; and/or (2) made by a process covered by a North
Shore Valid Patent Claim; and/or (3) resulting from the use of North Shore
Technology.

      1.12. "Research Plan" shall mean the research program described in
Attachment A hereto, as revised from time to time as provided for in this
Agreement.

      1.13. "Research Term" shall mean the initial three-year period starting on
the Effective Date of this Agreement and any extension of this initial period
mutually agreed upon by CTI and North Shore.

      1.14. "Research Year" shall mean each twelve-month period of the Research
Term with the first Research Year beginning on the Effective Date of this
Agreement.

      1.15. "Sponsored Research" shall be the research described in the Research
Plan.

      1.16. "Territory" shall mean the entire world.

                         ARTICLE 2. SPONSORED RESEARCH

      2.1. CTI Support. CTI agrees to financially support the Sponsored Research
at North Shore for the Research Term. The amount of CTI financial support shall
be:

         First Research Year            Two Hundred Thousand Dollars

                                        ($200,000.00)

         Second Research Year           Two Hundred Thousand Dollars

                                        ($200,000.00)

         Third Research Year            Two Hundred Thousand Dollars

                                        ($200,000.00)

         Fourth Research Year           To be mutually agreed upon

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         Fifth Research Year            To be mutually agreed upon.

CTI shall make payments of Fifty Thousand Dollars ($50,000.00) to North Shore in
advance of the commencement of the Research Term and in advance of each
three-month anniversary thereof.

      2.2. Research Cooperation. During the Research Term, North Shore will
share with CTI data North Shore generates pursuant to the Research Plan on a
timely basis and North Shore and CTI will discuss and mutually agree upon
priorities, future research to be conducted, and any changes to the Research
Plan.

      2.3. Conduct of the Sponsored Research. The conduct of the Sponsored
Research shall be the primary responsibility of North Shore according to the
Research Plan, with participation, as appropriate, by CTI. The Sponsored
Research shall be conducted in good scientific manner, and in compliance with
all applicable good laboratory practices, and applicable legal requirements, to
attempt to achieve efficiently and expeditiously the objectives described in the
Research Plan. North Shore shall proceed diligently with the work set out in the
Research Plan using efforts consistent with North Shore's best research
practices. Without limiting the generality of the foregoing:

            2.3.1. Use of Research Funding. North Shore shall apply the research
funding it receives from CTI under this Agreement to conduct the research set
forth in the Research Plan.

            2.3.2. Other Funding. During the Research Term, North Shore shall
not accept research funding from any third-party for any research in the Field
in the laboratory of the Principal Investigator, except for funding from the
U.S. Government, without prior written approval from CTI, such approval not to
be unreasonably withheld.

            2.3.3. Data. North Shore shall maintain records in sufficient detail
and in good scientific manner as will properly reflect all work done and results
achieved in the performance

                                       5
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of the Research Plan (including all data in the form required to be maintained
under applicable governmental regulations). Such records shall include books,
records, reports, research notes, charts, graphs, comments, computations,
analyses, recordings, photographs, computer programs and documentation thereof,
computer information storage means, samples of materials and other graphic or
written data generated in connection with the Research Plan. North Shore shall
provide CTI with the right to inspect such records, and shall provide copies of
all requested records, to the extent reasonably required by CTI. Further, North
Shore will instruct all of its employees doing Sponsored Research to record
their inventions in bound laboratory notebooks and to sign and date each
notebook page and have it read, witnessed and signed by a scientific colleague
who is not a co-inventor of the work described.

            2.3.4. Quarterly Reports. Within fourteen (14) days following the
end of each calendar quarter, North Shore shall provide to CTI written reports
which summarize in reasonable detail the work it has performed under the
Research Plan during the preceding calendar quarter.

            2.4. Visit of Facilities. Representatives of CTI may, upon
reasonable notice and at times reasonably acceptable to North Shore, (a) visit
the North Shore facilities where the Sponsored Research is being conducted, and
(b) consult informally, during such visits, and by telephone at other times,
with personnel of North Shore performing the Sponsored Research.

                               ARTICLE 3. LICENSE

      3.1. License Grant. North Shore hereby grants to CTI and its Affiliates a
worldwide, royalty-bearing, sole and exclusive license in the Territory, with
the right to sublicense, to make, have made, use, offer for sale, sell and/or
import Product(s) under North Shore Patent Rights and North Shore Technology.
CTI shall provide North Shore with timely notification of each substantive
negotiation to sublicense rights hereunder and will thereafter keep North Shore

                                       6
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reasonably informed as to the substantive progress of such negotiations by
providing North Shore with copies of significant drafts of term sheets, any
final term sheets, and drafts of any contracts or sublicense agreements prior to
execution thereof so that North Shore will have an opportunity to review same.
CTI will also provide North Shore with a full and complete copy of each
sublicense actually granted, if any, pursuant to this Agreement and any
documents evidencing the consideration to be paid to CTI or its Affiliates
relating to the grant of any such sublicense within thirty (30) days of
execution thereof by CTI.

      3.2. Government Rights. CTI and North Shore mutually acknowledge that the
United States Government, as a matter of statutory right under 35 U.S.C.
Sections 200-212, holds or may hold a non-exclusive license and certain other
rights to North Shore Patent Rights as a consequence of research whose funding
includes funds supplied by the U.S. Government. North Shore warrants that to the
extent it is aware of any funding supplied by the U.S. Government, the details
of such funding shall be provided to CTI prior to execution of this Agreement.
The term "sole and exclusive" license shall be understood to be subject to the
rights of the U.S. Government without any effect on the parties' remaining
obligations, as set forth in this Agreement.

      3.3. Retention of North Shore Rights. Notwithstanding the exclusive rights
granted to CTI pursuant to Article 3.1, North Shore shall retain the right to
make and use Products in its own laboratories solely for non-commercial,
scientific purposes and for continued noncommercial research.

      3.4. CTI Diligence. During the term of this Agreement, CTI will use its
reasonable best efforts to develop and commercialize Products.

                                       7
<PAGE>
                ARTICLE 4. LICENSE FEE, ROYALTIES AND MILESTONES

      4.1. License Fees. CTI shall pay to North Shore One Hundred and Seventy
Five Thousand Dollars ($175,000.00) within one month after the Effective Date.
CTI shall pay to North Shore Ten Thousand Dollars ($10,000) within one month of
written notification to CTI of the filing of any new U.S. Patent Application
which is included in the definition of North Shore Patent Rights pursuant to
Paragraph 1.7(2). CTI shall pay to North Shore Fifteen Thousand Dollars
($15,000) within one month of written notification to CTI of the issuance of any
U.S. Patent which is included in the definition of North Shore Patent Rights
pursuant to Paragraph 1.7(2). All payments made pursuant to this paragraph shall
be non-refundable and not creditable against any other payment due hereunder.

      4.2. Royalties. CTI shall additionally pay to North Shore royalties in the
following amounts:

            [**]% on Net Sales of Products covered by a North Shore Valid Patent
Claim up to [**] Dollars ($[**]);

            [**]% on Net Sales of Products covered by a North Shore Valid Patent
Claim between [**] Dollars ($[**]) and [**] Dollars ($[**]);

            [**]% on Net Sales of Products covered by a North Shore Valid Patent
Claim above [**] Dollars ($[**]); and

            One-half of the above-specified amounts for Products not covered by
and not made by a process covered by a North Shore Valid Patent Claim.

      4.2.1. Minimum Royalties. During the Research Term, there shall be no
minimum royalties. Commencing in the first calendar year after the end of the
Research Term, CTI shall pay to North Shore non-refundable minimum annual
royalty payments as follows: First calendar year after Research Term - $100,000;
Second calendar year after Research Term

                                       8
<PAGE>
$150,000; Third calendar year after Research Term - $200,000; Fourth calendar
year after Research Term - $250,000; Fifth calendar year after Research Term -
$300,000; Sixth calendar year after Research Term - $350,000; Seventh calendar
year after Research Term - $400,000; and Eighth calendar year after Research
Term and each calendar year thereafter - $400,000. Each minimum annual royalty
payment will be payable to North Shore on January 15 of the calendar year in
which it is due and shall be creditable against royalties and/or milestone
payments due to North Shore for that calendar year only. Notwithstanding the
foregoing, if a generic version of a Product is marketed in the United States,
then the amount of the next minimum annual royalty payment shall equal [**]% of
the current minimum annual royalty payment or $[**], whichever is greater. Such
reduced minimum annual royalty payment shall continue for so long as the generic
version remains on the U.S. market.

            4.2.2. Royalty Reports and Payments. During the License Term and
following the First Commercial Sale of a Product in each country in the
Territory, CTI and its Affiliates shall furnish to North Shore quarterly reports
within sixty (60) days of the end of each calendar quarter, showing, on a
country-by-country basis, the gross sales of all Products sold by CTI and its
Affiliates during the reporting period, the calculation of Net Sales from such
gross sales, all consideration received by CTI and/or its Affiliates from
sub-licensees in connection with the grant of any sub-licenses pursuant to this
Agreement and the amount of any payments due to North Shore. Such quarterly
reports shall be accompanied by payment of the royalty amount or other payments
due for that calendar quarter. CTI and/or its Affiliates shall maintain complete
and accurate books of account and records showing Net Sales and amounts received
from sublicensees. Such books and records shall be open to inspection, in
confidence, by North Shore during usual business hours, by an independent
certified public accountant to whom CTI has no

                                       9
<PAGE>
reasonable objection, for two (2) years after the calendar year to which they
pertain, for the purpose of verifying the accuracy of the payments made to North
Shore pursuant to this Agreement. CTI and/or its Affiliates shall use
commercially reasonable efforts to require any sub-licensees hereunder to
maintain such books and allow such inspection by North Shore and shall, on
request, disclose such information to North Shore as part of such inspection.
Inspection shall be at North Shore's sole expense, shall be reasonably limited
to those matters related to the payment obligations under this Agreement, and
shall be permitted no more than once per calendar year. Any underpayment to
North Shore revealed by the inspection shall be paid to North Shore by CTI
within thirty (30) days of the inspection. If the inspection reveals an
underpayment to North Shore in excess of 10%, then CTI will also pay the cost of
the inspection.

            4.2.3. One Royalty. Royalty payments pursuant to Article 4.2 shall
be due only on the first sale or other disposition of Product(s) to an
independent third party.

            4.2.4. Sublicense Income. In the event that CTI or its Affiliates
grants one or more sublicenses, CTI shall pay or cause its Affiliates to pay, as
the case may be, to North Shore an amount equal to [**] percent ([**]%) of all
consideration in any form (net of any payments required to be made by CTI to any
third party pursuant to any technology and/or patent license agreement between
CTI and such third party because of the receipt of such consideration by CTI)
received by CTI and/or its Affiliates for the sublicense(s).

            4.2.5. Third-Party Licenses. In the event that CTI or its Affiliates
are required to make payments to any third party pursuant to any technology
and/or patent license agreement between CTI and such third party because of the
sale of Products by CTI or its Affiliates, the amount of royalties due under
Article 4.2 to North Shore for such Products shall be reduced by an amount equal
to [**] percent ([**]%) of the payments due to third-parties but in no event

                                       10
<PAGE>
shall payments due under Article 4.2 be reduced by more than [**] percent
([**]%) because of the reduction permitted by this paragraph.

      4.3. Milestone Payments. CTI and its Affiliates shall additionally pay to
North Shore the following Milestone Payments:

      (a)   [**]:

            (i)   [**] Dollars ($[**]); and

            (ii)  [**] Dollars ($[**]) in CTI Common Stock at the last valuation
                  prior to this milestone being met.

      (b)   [**]:

            (i)   [**] Dollars ($[**]); and

            (ii)  [**] Dollars ($[**]) in CTI Common Stock at the last valuation
                  prior to this milestone being met.

      (c)   [**]:

            (i)   [**] Dollars ($[**]).

      (d)   [**]:

            (i)   [**] Dollars ($[**]).

                               ARTICLE 5. PATENTS

      5.1. CTI Authority. CTI shall have primary responsibility for filing,
prosecuting, issuing, maintaining and defending North Shore Patent Rights in the
United States and worldwide, employing patent counsel of its choice. Initially,
CTI's choice for patent counsel is the firm of Hamilton, Brook, Smith &
Reynolds, P.C., Concord, Massachusetts, for which North Shore grants its
approval. If CTI decides to retain a different or additional patent counsel in
the future, North Shore shall have the right to approve CTI's selection of a
different or additional patent counsel, such approval not to be unreasonably
withheld. Patent counsel selected by CTI shall treat North Shore as its client
and the owner of North Shore Patent Rights.

                                       11
<PAGE>
      5.2. Patent Expenses. CTI agrees to reimburse North Shore for all past
costs and fees incurred by North Shore for all patent work performed in
connection with North Shore Patent Rights prior to the Effective Date of this
Agreement. CTI also agrees to bear the future costs for all patent work
performed pursuant to Article 5.1. Bills for such work may be rendered to North
Shore, in which case CTI agrees to promptly reimburse North Shore for its
expenses in this regard. Alternatively, for convenience, bills for work
performed pursuant to Article 5.1 may be sent directly to CTI for payment, with
a copy to North Shore.

      5.3. Right of North Shore to be Informed. For work performed by patent
counsel selected by CTI pursuant to Article 5.1, such patent counsel shall keep
North Shore apprised of the status of each of the patent applications and
patents in the North Shore Patent Rights and will consult with North Shore
concerning the prosecution of such patent applications. Such patent counsel will
provide North Shore in a timely manner with copies of all documents related to
the filing, prosecution, issuance, maintenance and/or defense of such
applications or patents in the North Shore Patent Rights.

      5.4. North Shore Rights. If CTI decides to abandon any application or
patent in the North Shore Patent Rights, it agrees to provide North Shore with
sufficient notice to allow North Shore to assume filing, prosecution and/or
maintenance of that application or patent using counsel of its own choice. If
North Shore does assume future filing, prosecution or maintenance of such
application or patent, CTI shall no longer be licensed under that patent
application pursuant to this Agreement.

      5.5. Enforcement of North Shore Patent Rights. If CTI or North Shore
becomes aware of any actual or potential infringement of North Shore Patent
Rights, it will notify the other party and CTI and North Shore will subsequently
confer and agree about appropriate action against

                                       12
<PAGE>
such actual or potential infringement. If it is decided to enforce North Shore
Patent Rights against such infringement, CTI shall have the first right to do so
and North Shore shall provide full cooperation at the expense of CTI. Any
settlement or recovery received from any such proceeding shall be divided [**]
percent ([**]%) to CTI and [**] percent ([**]%) to North Shore after CTI deducts
from any such settlement or recovery its reasonable counsel fees and
out-of-pocket expenses relative to any such legal proceeding. If CTI decides not
to initiate legal proceedings against any such infringer, then North Shore shall
have the right to initiate such legal proceedings. Any settlement or recovery
received from any such proceeding shall be divided [**] percent ([**]%) to North
Shore and [**] percent ([**]%) to CTI after North Shore deducts from any such
settlement or recovery its reasonable counsel fees and out-of-pocket expenses
relative to any such legal proceeding.

                   ARTICLE 6. CONFIDENTIALITY AND PUBLICATION

      6.1. Non-Disclosure Obligations. During the Research Term and for a period
of five (5) years thereafter, both parties shall maintain in confidence, and use
only for purposes of this Agreement, confidential information and data received
from the other party. Upon expiration or termination of this Agreement, all
confidential information and data, and copies thereof, will be returned to the
transmitting party by the receiving party upon request of the transmitting
party.

      6.2. Release of Obligations. The obligations under Article 6.1 shall not
apply or shall cease to apply, as the case may be, to any information or data
that:

            (a) is or becomes publicly available;

            (b) is disclosed to the receiving party by a third party that is not
under an obligation to other party to this Agreement;

            (c) prior to disclosure to the other party, the receiving party was
already in possession of the information or data; or,

                                       13
<PAGE>
            (d) was independently developed by the receiving party without
breach of the obligations of Article 6.1.

      6.3. Publications. North Shore shall be free to publish any information or
data generated as a result of the Sponsored Research except for CTI confidential
information. Any proposed publication containing such information or data shall
be submitted to CTI at least thirty (30) days prior to the intended date of
submission for publication. CTI shall have the right to (i) delete CTI
confidential information from the proposed publication and/or (ii) request delay
of the submission for a maximum period of forty-five (45) days to allow for
patent applications covering such information or data to be filed. Nothing
herein contained shall preclude North Shore from making required reports or
disclosures to the National Institutes of Health or any other granting agency.

                   ARTICLE 7. REPRESENTATIONS AND WARRANTIES

      7.1. Authorization. Each party warrants and represents to the other that
it has the legal right and power to enter into this Agreement, to fully perform
its obligations hereunder, and that it has not made nor will it make any
commitments to others in conflict with or in derogation of such rights or this
Agreement. Except as otherwise disclosed, each party further represents to the
other that it is not aware of any legal obstacles, including patent rights of
others, which could prevent it from carrying out the provisions of this
Agreement.

      7.2. License Warranty. In addition, North Shore warrants and represents
that it has the legal right and power to grant the licenses granted to CTI under
this Agreement.

      7.3. Remedies. The liability of North Shore for CTI's damages for any
breach of the warranties and representations contained in this Article will be
limited to reimbursement to CTI by North Shore of the total of all of the
payments received by North Shore pursuant to this Agreement.

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                        ARTICLE 8. TERM AND TERMINATI0N

      8.1. Expiration. Unless terminated earlier pursuant to Article 8.2 below,
the term of this Agreement shall extend to the full License Term.

      8.2. Termination for Cause. Upon or after a breach of any material
provision of this Agreement by a party (including non-timely payment of any
payment due to North Shore hereunder), the non-breaching party may terminate
this Agreement by giving the breaching party thirty (30) days notice in writing
specifying the breach; providing, however, that such notice of termination shall
not be effective: (1) if the breaching party cures the specified breach within
such thirty (30) day period; or (2) if the specified breach is not reasonably
curable within such thirty (30) day period, and the breaching party has
commenced cure of such breach within the thirty (30) day period and thereafter
has proceeded diligently to cure such breach within a reasonable time.

      8.3. Effect of Termination. Expiration or termination of this Agreement
shall not relieve the parties of any obligation accruing prior to such
expiration or termination. Moreover, the provisions of Article 6 shall survive
the expiration or termination of this Agreement.

                    ARTICLE 9. INDEMNIFICATION AND INSURANCE

      9.1. Indemnity. CTI shall indemnify and hold North Shore harmless from and
against any liability, losses, damages, claims, costs and expenses (including
reasonable fees of attorneys and other professionals and court cost) arising
from CTI's conduct under this Agreement or a product liability claim, action or
cause of action related to the sale of Products or an act of infringement by CTI
of a third party's patent, copyright or trademark in connection with the
manufacture, use, sale, storage or advertising of Products except to the extent
that such claims, demands, suits or causes of action are based upon gross
negligence or willful malfeasance by North Shore (hereafter collectively called
"Claim"). Subject to the terms and conditions of this

                                       15
<PAGE>
Agreement, CTI will have the primary responsibility for defending against any
Claim (whether arising under theories of negligence, strict liability, tort,
product liability or otherwise and whether or not North Shore is named as a
defendant in such claim, action or cause of action).

      9.2. Insurance. In accordance with the provisions of Article 9.1 above,
CTI shall arrange for sufficient insurance and/or self-insurance coverage
commencing no later than the First Commercial Sale and, if possible, will name
North Shore as an additional insured.

                           ARTICLE 10. MISCELLANEOUS

      10.1. Force Majeure. Neither party shall be held liable or responsible to
the other party or be deemed to have defaulted under or breached this Agreement
for failure or delay in fulfilling or performing any term of this Agreement when
such failure or delay is caused by or results from cases beyond the reasonable
control of the affected party, including, but not limited to, fire, floods,
embargos, war, acts of war (whether war is declared or not), insurrections,
riots, civil commotions, strikes, lockouts or other labor disturbances, acts of
God, or acts, omissions or delays in acting by any Governmental authority for
the other party.

      10.2. Assignment. This Agreement may not be assigned or otherwise
transferred by either party without the written consent of the other party;
provided, however, that CTI and its Affiliates may, without such consent, assign
this Agreement and its rights and obligations hereunder in connection with the
transfer or sale of all or substantially all of its business relating to the
Field, or in the event of its merger or consolidation. Any purported assignment
in violation of the preceding sentence shall be void. Any permitted assignee
shall assume all obligations of its assignor under this Agreement. North Shore
shall have the right to sell, assign or otherwise transfer its entire right,
title and interest to the patent applications and/or patents within North Shore
Patent Rights to an North Shore Affiliate, provided the Affiliate assumes all of
the obligations of North Shore hereunder. Otherwise, North Shore shall not sell,
assign or

                                       16
<PAGE>
otherwise transfer title or any portion thereof to any patent application or
patent within the North Shore Patent Rights as long as exclusive licenses under
that patent application and/or patent are still held by CTI without the prior
written consent of CTI, which consent will not be unreasonably withheld.

      10.3. Severability. Each party hereby agrees that it does not intend to
violate any public policy, statutory or common laws, rules, regulations, treaty
or decision of any government agency or executive body thereof of any country or
community or association of countries. Should one or more provisions of this
Agreement be or become invalid, the parties hereto shall substitute, by mutual
consent, valid provisions for such invalid provisions, which valid provisions in
their economic effect are sufficiently similar to the invalid provisions that it
can be reasonably assumed that the parties would have entered into this
Agreement with such valid provisions. In case such valid provisions cannot be
agreed upon, the invalidity of one or several provisions of this Agreement shall
not affect the validity of this Agreement, as a whole, unless the invalid
provisions are of such essential importance to this Agreement that it is to be
reasonably assumed that the parties would not have entered into this Agreement
without the invalid provisions.

      10.4. Notices. Any consent, notice or report required or permitted to be
given or made under this Agreement by one of the parties hereto to the other
shall be in writing, delivered personally or by facsimile or courier, postage
prepaid (where applicable), addressed to such other party at its address
indicated below, or to such other address as the addressee shall have last
furnished in writing to the addressor, and shall be effective upon receipt by
the addressee.

      If to CTI:             CRITICAL THERAPEUTICS, INC.
                             675 Massachusetts Avenue
                             14th Floor
                             Cambridge, Massachusetts 02139
                             Attention:  President
                             Fax:  (617) 252-4342

                                       17
<PAGE>
      If to North Shore:     NORTH SHORE - LONG ISLAND JEWISH RESEARCH INSTITUTE
                             350 Community Drive
                             Manhasset, New York 11030
                             Attention:  Chief Executive Officer
                             Fax:  (516) 562-1022

      With a copy to:        LEGAL AFFAIRS NS-LIJ HEALTH SYSTEM
                             150 Community Drive
                             Great Neck, New York 11021
                             Attention:  General Counsel
                             Fax:  (516) 465-8105.

      10.5. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without regard to any conflict
of laws provisions thereof.

      10.6. Dispute Resolution. Any disputes arising between the parties
relating to, arising out of or in any way connected with this Agreement or any
term or condition hereof, or the performance by either party of its obligations
hereunder, whether before or after termination of this Agreement, shall be
promptly presented to the President of CTI and the Chief Executive Officer of
North Shore for resolution. If prompt resolution is not reached, the dispute may
be submitted to the American Arbitration Association in New York, New York for
non-binding mediation.

      10.7. Entire Agreement. This Agreement contains the entire understanding
of the parties with respect to the subject matter hereof. All express or implied
agreements and understandings, either oral or written, heretofore made are
expressly merged in and made a part of this Agreement. This Agreement may be
amended, or any term hereof modified, only by a written instrument duly executed
by both parties hereto.

                                       18
<PAGE>
      10.8. Headings. The captions to the several articles hereof are not a part
of this Agreement, but are merely guides or labels to assist in locating and
reading the several articles.

      10.9. Independent Contractors. It is expressly agreed that CTI and North
Shore are independent contractors and that the relationship between the two
parties shall not constitute a partnership, joint venture or agency. Neither CTI
nor North Shore shall have the authority to make any statements, representations
or commitments of any kind, or to take any action, which shall be binding on the
other, without the prior consent of the other party to do so.

      10.10. Waiver. The waiver of either party hereof of any right hereunder or
of any failure to perform by the other party or of a breach by the other party
shall not be deemed a waiver of any other right hereunder or of any other breach
or failure by said other party whether of a similar nature or otherwise.

      10.11. Counterparts. This Agreement may be executed in two counterparts,
each of which shall be deemed an original, both of which together shall
constitute one and the same instrument.

      10.12. Use of Names. North Shore and CTI (and its respective Affiliates)
each shall not use the name of the other without prior written consent of the
other, which shall not be unreasonably withheld, except if the use of such name
is required by law, regulation or judicial order, in which event the party
intending to use or using such name will promptly inform the other party of such
required use.

                                       19
<PAGE>
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates set
forth below.

<TABLE>
<S>                                                          <C>
CRITICAL THERAPEUTICS, INC.                                  NORTH SHORE - LONG ISLAND JEWISH RESEARCH INSTITUTE

By:   /s/ Paul Rubin                                         By:   /s/ illegible
      --------------                                               -------------
Its:  President & CEO                                        Its:  VP & COO

Date:  12-23-02                                              Date:  12/20/02

Agreed to and Accepted

By:  /s/ Kevin J. Tracey
     -------------------
     Kevin J. Tracey, M.D.
     Principal Investigator

Date:  20 December 2002

</TABLE>

                                       20
<PAGE>
                                  ATTACHMENT A

       RESEARCH PLAN: CHOLINERGIC ANTI-INFLAMMATORY PATHWAY (CAP) PROGRAM

                                      [**]
<PAGE>
                                SCHEDULE 1.7

              PATENT APPLICATIONS IN NORTH SHORE PATENT RIGHTS

<TABLE>
<CAPTION>
 REF. NO.  COUNTRY      TITLE   APP NO./ FILE  FILE TYPE  PARENT NO./   INVENTOR(S)   PATENT    STATUS
                                     DATE                  FILE DATE                    NO.
                                                                                      ISSUE
                                                                                       DATE

<S>        <C>          <C>     <C>            <C>        <C>           <C>           <C>       <C>
            [**]        [**]         [**]        [**]        [**]           [**]       [**]     [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]                [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]                [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]                [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]                [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]                [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]                [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]       [**]     [**]
   [**]     [**]        [**]         [**]        [**]        [**]           [**]       [**]     [**]

</TABLE>

                                   Page 1 of 1<PAGE>
                                                                    Exhibit 10.9

          Confidential Materials omitted and filed separately with the

         Securities and Exchange Commission. Asterisks denote omissions.

                           EXCLUSIVE LICENSE AGREEMENT

                                     BETWEEN

                                 MEDICEPT, INC.

                                       AND

                             PHENOME SCIENCES, INC.

<PAGE>

                           EXCLUSIVE LICENSE AGREEMENT

      This Agreement is made and entered into as of the date last written below
(the "Effective Date"), by and between MediCept, Inc., a Delaware corporation
(hereinafter referred to as "MediCept"), and Phenome Sciences, Inc., a
Massachusetts corporation (hereinafter referred to as "Phenome").

      WHEREAS, Phenome is the owner of certain intellectual property rights or
co-owner with the Beth Israel Deaconess Medical Center (hereinafter "BIDMC") or
with other parties, and has the right to grant exclusive licenses under said
intellectual property rights, subject only to a royalty-free, non-exclusive
license heretofore granted to the United States Government for those patents
developed with US. Government funding;

      WHEREAS, Phenome and BIDMC entered into a Cooperative Commercialization
Agreement, dated October 20, 1999 and an Amendment to the Cooperative
Commercialization Agreement dated December 15, 2000 (collectively, the "BIDMC
Agreement"), wherein the parties agreed that Phenome may act as the agent of
BIDMC in granting a license according to the provisions of the BIDMC Agreement
for the intellectual property assets jointly owned by Phenome and BIDMC,

      WHEREAS, Phenome and BIDMC desire to have the intellectual property rights
utilized in the public interest and are willing to grant a license to MediCept
thereunder on the terms and conditions described herein;

      WHEREAS, MediCept desires to obtain an exclusive license under the
intellectual property rights on the terms and conditions of this Agreement.

      NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein, the parties hereto agree as follows:

                                   ARTICLE I.

                                   DEFINITIONS

      For the purpose of this Agreement, the following words and phrases have
the meanings set forth below:

      1.1 "Affiliate" shall mean any company or other legal entity controlling,
controlled or under common control with MediCept. For purposes of the definition
of "Affiliate" the term "control" shall mean: (i) in the case of a corporate
entity, the direct or indirect ownership of at least fifty (50%) percent of the
stock or participating shares entitled to vote for the election of directors of
that entity; (ii) in the case of a partnership, the power customarily held by a
general partner to direct the management and policies of such partnership; or
(iii) in the case of a joint venture, whether in corporate, partnership or other
legal form, a more than nominal economic interest and managerial role.

      1.2 "Field of Use" shall mean therapeutic or nutraceutical products.

<PAGE>

      1.3 "First Commercial Sale" shall mean with respect to each country: (i)
the first sale of any Licensed Product by MediCept, following approval of such
Licensed Product's marketing by the appropriate government agency, if any such
approval is necessary, for the country in which the sale is to be made; or (ii)
when governmental approval is not required, the first sale in that country of
the Licensed Product.

      1.4 "Licensed Product" shall mean any product or part thereof, or process,
the manufacture, use or sale of which would infringe an issued, valid,
enforceable, unexpired claim, or a pending uncanceled claim, contained in a
patent within the Patent Rights.

      1.5 "MediCept" shall mean MediCept, Inc., and/or its successor(s) or
assignee(s) and/or its Affiliates.

      1.6 "Phenome" shall mean Phenome Sciences, Inc., and/or its successor(s)
or assignee(s) and/or its Affiliates.

      1.7 "BIDMC" shall mean the Beth Israel Deaconess Medical Center and/or its
successor(s) or assignee(s) and/or its Affiliates.

      1.8 "BIDMC Agreement" shall mean the Cooperative Commercialization
Agreement between Phenome and BIDMC, dated October 20,1999, as amended.

      1.9 "Net Sales" shall mean gross amount billed or invoiced by MediCept or
a Sublicensee for any Licensed Product in a bona fide arm's length business
transaction, less the sum of the following:

            (i)   Trade, cash, or quantity discounts that are customary in the
                  industry to the extent actually allowed and taken;

            (ii)  To the extent separately stated on purchase orders, invoices,
                  or other documents of sale, any taxes or other governmental
                  charges levied on the production, sale, transportation,
                  delivery or use of the Licensed Product, that is paid for or
                  on behalf of MediCept or its affiliates; and

            (iii) Amounts repaid or credited by reason of rejection or return.

      In the event that a Licensed Product is marketed as part of a bundle,
system, or kit that incorporates or includes other products, Net Sales shall be
computed using the average net selling price of the components when sold
separately. If any Licensed Product is sold only as part of a bundle, system, or
kit and is not sold separately, then Net Sales shall include only that part of
such sale reasonably allocable to the Licensed Product. In making such
allocations, primary consideration shall be given to the added value provided by
the Product as compared to the value of the bundle, system, or kit if sold
without it. Net Sales shall be determined from the books and records of MediCept
or a Sublicensee, maintained in accordance with generally accepted accounting
principles, consistently applied.

      1.10 "Patent Rights" shall mean all of the following which Phenome owns or
has rights to that relate to the Field of Use during the term of this Agreement:

                                       2
<PAGE>

            (i)   The United States and foreign patent applications listed
                  herein or incorporated herein by reference, including U.S.
                  Provisional Patent Application Serial Number [**], filed [**],
                  entitled: [**], and the corresponding PCT Application filed on
                  [**], together with any continuations, continuations-in-part,
                  divisionals, substitutions, or extensions thereof;

            (ii)  The United States and foreign patents that issue from the
                  applications listed in (i) above, including any
                  re-examinations, re-issues, renewals, or extensions thereof;

            (iii) All later filed patent applications (i.e, filed by Phenome
                  after the Effective Date hereof) and the resulting patents,
                  which relate to (a) subject matter specifically described in
                  the patent and/or patent applications described herein or
                  incorporated herein by reference, (b) REPS Technology or (c)
                  REPS Technology Extensions.

      1.11 "Sublicensee" shall mean a person or entity unaffiliated with
MediCept to whom MediCept has granted an arm's length sublicense under this
Agreement.

      1.12 "NDA" shall mean new drug application as submitted to the United
States Food and Drug Administration, or a similar application submitted to any
foreign governmental agency whose business is to evaluate such applications.

      1.13 "Diligence Obligations" shall mean MediCept's diligent efforts to
develop the REPS Technology or REPS Technology Extensions.

      1.14 "REPS Technology" shall mean all information, data, know-how,
materials, inventions, trade secrets, registered and unregistered copyrights,
patents, patent applications (along with any continuation, continuation-in-part,
divisional, or substitute applications, and any re-issue or re-examinations of
such patents or patent applications), trade names, registered or unregistered
trademarks, and applications therefor and other intellectual property of any
kind, whether patented or unpatented, and rights under any research grants
related to the inventions claimed in the Patent Rights, including any
enhancements, updates, extensions, and improvements thereof, and all competitive
assessments of related technology, market analyses, and other intellectual
property related to any therapeutic or nutraceutical products developed from
therapeutic compositions comprising esters of pyruvate, e.g., alkyl, aralkyl,
alkoxyalkyl and carboxyalkyl esters, or analogs of pyruvate (e.g.
alpha-ketoacids) and their esters, and addressing any indication that are owned
jointly by Phenome and BIDMC and subject to the BIDMC Agreement as of the
effective date of that agreement, or thereafter developed in the performance of
Phenome's SBIR and DARPA grants.

      1.15 "REPS Technology Extensions" shall mean all information, data,
know-how, materials, inventions, trade secrets, registered and unregistered
copyrights, patents, patent applications, (along with any continuation,
continuation in-part, divisional, or substitute applications, and any re-issue
or re-examinations of such patents or patent applications), trade names,
registered or unregistered trademarks, and applications therefor and other
intellectual

                                       3
<PAGE>

property of any kind, whether patented or unpatented, and rights under any
research grants related to the inventions claimed in the Patent Rights,
including any enhancements, updates, extensions, and improvements thereof, and
all competitive assessments of related technology, market analyses, and other
intellectual property related to any therapeutic or nutraceutical products
derived from therapeutic compositions that are owned or controlled by Phenome as
of the effective date of the Cooperative Commercialization Agreement or
thereafter developed in the performance of Phenome's SBIR and DARPA grants,
comprising:

            (i)   Any ester or amide of an alpha-ketoacid (including, for
                  example, pyruvate, alpha-ketobutyrate or
                  alpha-ketoglutatrate), e.g., alkyl, aralkyl, alkoxyalkyl and
                  carboxyalkyl esters, analogs of any of the foregoing, and
                  compositions containing the foregoing;

            (ii)  Pyruvate prodrugs, e.g., masked pyruvates other than ester
                  functionalities;

            (iii) Prodrugs of alpha-ketoacids (including pyruvate) e.g., masked
                  alpha-ketoacids in which the acid group is masked with a
                  moiety other than an ester (which is covered in i); and

            (iv)  Any combinations of compositions described in clauses (i),
                  (ii), or (iii) with agonists or synergists, including, for
                  example, dichloroacetate, and or other inhibitors of pyruvate
                  degradation and/or with non-covalent derivatives and
                  complexing or solubilizing agents, including, for example,
                  organic bases or amino acids such as ornithine and arginine.

                                  ARTICLE II.

                                      GRANT

      2.1 Phenome, itself and in its capacity as agent for BIDMC, hereby grants
to MediCept, free and clear of all encumbrances except as indicated above, the
worldwide right and exclusive license under the Patent Rights, the REPS
Technology, and the REPS Technology Extensions, to make, have made, use, and
sell the Licensed Products in the Field of Use until the expiration of the last
to expire of the Patent Rights, unless sooner terminated as provided in this
Agreement. Upon expiration of the last to expire Patent Right in a country,
Phenome grants to MediCept a fully-paid-up, royalty-free license to make, have
made, use, lease and sell the Licensed Products in the Field of Use in that
country.

      2.2 Notwithstanding anything to the contrary, Phenome and BIDMC each shall
retain a royalty-free, non-exclusive, irrevocable license to practice the Patent
Rights they own individually or jointly, for non-commercial research purposes
only with the understanding that any data or intellectual property resulting
from such activity that is with the scope of the Field of Use, shall be
automatically included in the REPS Technology or REPS Technology Extensions
licensed to MediCept, and shall be provided to MediCept for no additional
consideration.

      2.3 Notwithstanding anything to the contrary, the license granted
hereunder shall be subject to the rights of the United States government, if
any, under Public Laws 96-517, 97-226, and 98-620, codified at 35 U.S.C. sec.
200-212 and any regulations promulgated thereunder.

                                       4
<PAGE>

      2.4 MediCept shall have access to, including the right to receive copies
of, all internal documents (including SBIR grant proposals, patent applications,
laboratory notebooks, drafts, etc.) relating to the REPS Technology.

      2.5 Phenome shall diligently complete all work under its existing Phase I
SBIR grant and DARPA grant, and shall provide to MediCept all data and
information developed thereunder.

      2.6 In order to establish exclusivity for MediCept, Phenome hereby agrees
that it shall not, without MediCept's prior written consent, apply for funds
from any other commercial party, or enter into a research and development
agreement, or grant a license to make, have made, use, lease and/or sell
Licensed Products in the Field of Use during the period of time in which this
Agreement is in effect, except as otherwise specified in this Agreement or as
required by law to grant rights to the United States Government.

      2.7 MediCept shall have the right to enter into sublicensing agreements
with respect to any of the rights, privileges and licenses granted hereunder,
subject to the terms and conditions hereof. Such sublicenses will terminate upon
the termination of MediCept's rights granted herein unless events of default are
cured by MediCept or Sublicensee within thirty (30) days of notification by
Phenome of default and/or as provided by the terms of this Agreement. In
accordance with its obligations under the Cooperative Commercialization
Agreement with BIDMC, Phenome shall have the right to review and approve all
such sublicenses, which approval shall not be unreasonably withheld. Such
approval shall be deemed to be given thirty (30) days from the date that
MediCept submits the sublicense to Phenome for review if Phenome fails to either
approve or provide comments to MediCept on the sublicense within the 30 day
period.

      2.8 MediCept agrees that any sublicense granted by it shall provide that
the obligations to Phenome of Articles II (Grant), V (Reports and Records), VII
(Infringement), VIII (Indemnification), IX (Representations and Warranties), X
(Governmental Regulations), XI (Patent Marking), XII (Dispute Resolution), XIII
(Term and Termination) XIV (Commercial Development and Non-Competition) and XV
(General Provisions) of this Agreement shall be binding upon the Sublicensee as
if it were a party to this Agreement.

      2.9 MediCept agrees to provide to Phenome a copy of each fully executed
sublicense agreement deleting economic terms when and as appropriate. MediCept
further agrees to forward to Phenome copies of any quarterly reports received by
MediCept from its Sublicensees which are pertinent to royalty accounting under
the applicable sublicense. Such reports shall be provided consistent with the
provisions of Section 4.1 and 5.3.

      2.10 MediCept shall advise Phenome in writing of any consideration other
than cash payments received from any Sublicensee. MediCept shall not accept from
any Sublicensee anything of value in lieu of cash payments to discharge
Sublicensee's payment obligations under any sublicense granted under this
Agreement, without the express written permission of Phenome, which permission
shall not be unreasonably withheld.

                                       5
<PAGE>

      2.11 The license granted hereunder shall not be construed to confer any
rights upon MediCept by implication, estoppel or otherwise as to any technology
other than the Patent Rights, the REPS Technology and the REPS Technology
Extensions, except to the extent MediCept requires a License from Phenome or
BIDMC under any patents already issued, or patents issuing later with a right to
priority from an existing patent application, owned or controlled by Phenome or
BIDMC (and covered by the BIDMC Agreement), to practice the rights granted under
Section 2.1 of this Agreement.

      2.12 As a result of the BIDMC Agreement, Phenome has the right to act as
BIDMC's agent in granting the license to MediCept of their jointly owned
intellectual property assets. Any termination of the BIDMC Agreement will have
no effect on the rights and the obligations of Phenome and MediCept under this
Agreement, and are intended to survive the termination of the BIDMC Agreement
and, to the extent necessary, MediCept will be deemed to have a license directly
from BIDMC for its interest in the REPS Technology, but shall not be obligated
to make any payments directly to the BIDMC without MediCept's prior consent.

                                  ARTICLE III.

                                  DUE DILIGENCE

      3.1 MediCept shall use good faith and diligent efforts to accomplish the
milestones set forth in Article IV hereof and to substantially manufacture or
have manufactured, market, and distribute the Licensed Products in the United
States.

      3.2 Notwithstanding anything above to the contrary, MediCept's obligations
of due diligence under this Article III shall be met by MediCept's achievement
of the objectives and milestones set forth herein, as evidenced by the
following:

            (i)   The completion of a round of equity financing (which shall
                  include convertible debt) by MediCept on or prior to August 1,
                  2001, which provides immediate gross proceeds of not less than
                  $[**] ([**] dollars), and milestone-based commitments for
                  aggregate additional gross proceeds of not less than $[**]
                  ([**] dollars), payable on or before August 1, 2002;

            (ii)  Commencing on the first anniversary of the date of this
                  Agreement until the due date of the first milestone payment
                  set forth in Section 4.1 (ii) (a) below (but not later than
                  the seventh anniversary of the date of the Agreement) MediCept
                  shall invest not less than $[**] ([**] dollars) per annum in
                  research and development activities related to the REPS
                  Technology or the REPS Technology Extensions (which funds can
                  be derived from any source including government funding,
                  sponsored research, or otherwise); and

            (iii) MediCept shall diligently proceed to file new patent
                  applications for inventions within the REPS Technology
                  Extensions.

      3.3 MediCept shall use its best efforts to make an arm's length commercial
sale of the Product within [**] of the date on which first notice of FDA market
approval is received.

                                       6
<PAGE>

      3.4 In the event that MediCept fails in any year to satisfy the diligence
obligations above, then either (1) MediCept's license to the REPS Technology and
REPS Technology Extensions shall terminate, or (2) by a date not later than the
anniversary date of this Agreement month (beginning with the second anniversary)
MediCept shall make a payment of $[**] ([**] dollars) to Phenome.

                                   ARTICLE IV.

                          ROYAL TIES AND OTHER PAYMENTS

      4.1 For exclusive licenses granted hereunder, MediCept shall pay to
Phenome the following amounts:

            (i)   An up front payment of one hundred three thousand dollars
                  ($103,000), upon receipt of equity financing, as set forth in
                  Section 3.2 (i), or by February 1, 2001, whichever is earlier.
                  If MediCept fails to make this up front payment by February 1,
                  2001, then this Agreement shall terminate without further
                  obligation of either party.

            (ii)  MediCept shall make the following one-time milestone payments
                  to Phenome within 30 days of the occurrence of the following
                  events ("Milestones"):

                  (a)   a $[**] payment upon the [**];

                  (b)   a $[**] payment upon the [**];

                  (c)   a $[**] payment upon the [**];

                  (d)   a $[**] payment upon the [**]; and

            (iii) MediCept shall pay [**]% royalty on Net Sales of Licensed
                  Products, provided that in the event MediCept licenses
                  technologies from third parties in order to make, use, or sell
                  a Licensed Product, then the royalty payments to Phenome shall
                  be reduced by an amount equal to [**]% of the payments due to
                  third parties; provided further that in no event shall the
                  royalty paid by MediCept to Phenome be reduced below [**]% of
                  the Net Sales. Royalties shall be payable at the end of each
                  calendar quarter, i.e., each March 31st, June 30th, September
                  30th and December 31st with respect to the Net Sales incurred
                  during the preceding calendar quarter.

            (iv)  MediCept shall pay a minimum royalty of $10,000.00 per year
                  beginning in year 2006, payable by December 31st of each year
                  beginning in 2006. The minimum royalty shall be creditable
                  against royalties paid pursuant to Section 4.1(iii) and
                  payments made pursuant to Section 3.4 in subsequent years,
                  provided that these credits shall not reduce the royalties
                  under Section 4.1(iii) or payments made pursuant to Section
                  3.4 in any given year below the minimum royalty amount due
                  under this Section 4.1(iv).

                                       7
<PAGE>

      4.2 No multiple royalties shall be payable because any Licensed Product,
its manufacture, use, lease or sale are or shall be covered by more than one
patent or patent application described in the Patent Rights licensed under this
Agreement.

      4.3 To the extent that any data or intellectual property results from the
activities of Phenome, BIDMC, or their affiliates, and is within the scope of
the Field of Use, such data or intellectual property shall be automatically
included in the REPS Technology or REPS Technology Extensions, and shall be
licensed to MediCept in agreement with the terms of this Agreement, for no
additional consideration.

                                   ARTICLE V.

                               REPORTS AND RECORDS

      5.1 Beginning with the First Commercial Sale of a Licensed Product,
MediCept shall keep, and shall require its Affiliates and Sublicensees to keep,
full, true and accurate books of account in accordance with generally accepted
accounting principles and containing sufficient detail to enable Phenome to
determine the royalty and other amounts payable to Phenome under this Agreement.
Said books of account shall be kept at MediCept's principal place of business or
the principal place of business of the appropriate Affiliate and/or Sublicensee
of MediCept to which this Agreement relates. Said books and the supporting data
shall be retained for at least five (5) years following the end of the calendar
year to which they pertain.

      5.2 Phenome shall have the right to audit the books of account described
above from time to time, but not more frequently than once per year, to the
extent necessary to verify the reports provided for herein or compliance in
other respects with this Agreement. Phenome or its agents shall perform these
audits at Phenome's expense during MediCept's regular business hours.

      5.3 Beginning with the First Commercial Sale of a Licensed Product,
MediCept shall deliver to Phenome true and accurate reports within thirty (30)
days after each March 31st, June 30, September 30 and December 31 for the
previous calendar quarter, giving such particulars of the business conducted by
MediCept, its Affiliates and its sublicensees under this Agreement as shall be
pertinent to a royalty accounting hereunder and to verify MediCept's activities
with respect to achieving the objectives of the Agreement. These reports shall
include at least the following:

            (i)   Number of Licensed Products manufactured and sold by MediCept
                  and its sublicensee.

            (ii)  Aggregate billings for Licensed Products sold by MediCept and
                  its sublicensee.

            (iii) Accounting for all Licensed Products sold.

            (iv)  Deductions and offsets as herein indicated.

            (v)   Total royalties due.

                                       8
<PAGE>

            (vi)  Names and addresses of all sublicensees of MediCept.

            (vii) Licensed Products manufactured and sold to the U.S.
                  Government. No royalty obligations shall arise from sales or
                  use by, for or on behalf of the U.S. Government in view of a
                  royalty-free, non-exclusive license that may heretofore have
                  been granted to the U.S. Government.

      5.4 Until the First Commercial Sale of a Licensed Product, MediCept shall
provide to Phenome at least annually reasonable detail regarding the activities
of MediCept and MediCept's Affiliates and Sublicensees relative to achieving the
objectives set forth in the Agreement in a timely manner, including but not
limited to, reports of research and development activities, regulatory
approvals, strategic alliances and manufacturing, sublicensing and marketing
efforts.

      5.5 With each report submitted under Section 5.3, MediCept shall pay to
Phenome the royalties due and payable under this Agreement. If no royalties
shall be due, MediCept shall so report.

                                   ARTICLE VI.

                               PATENT PROSECUTION

      6.1 MediCept shall have the full authority to file, prosecute, maintain,
and enforce all patents and applications for patents, within the scope of the
Patent Rights set forth above. MediCept shall undertake all such activities at
its own expense, and with full authority, except that prior to the submission to
the United States Patent and Trademark Office of any paper authorizing a change
in the scope of patent protection for any invention within the Patent Rights,
MediCept shall obtain the approval of Phenome, which approval shall not
unreasonably be denied.

      6.2 MediCept shall reimburse to Phenome the amount of all reasonable fees
and costs relating to the filing, prosecution and maintenance of the Patent
Rights incurred after the date of this Agreement unless those Patent Rights are
also licensed to a third party in a field of use other than the Field of Use, in
which case, MediCept shall not reimburse Phenome for the costs relating to the
filing, prosecution, enforcement, and maintenance of those intellectual property
rights outside the scope of this Agreement.

      6.3 In the event MediCept elects not to pursue, maintain or retain a
particular Patent Right licensed hereunder, MediCept shall so notify Phenome in
sufficient time for Phenome to assume the filing, prosecution and/or maintenance
of such application or patent at Phenome's expense. In such event, MediCept
shall provide to Phenome any authorization necessary to permit Phenome to pursue
and/or maintain such Patent Right. MediCept shall have no further royalty
obligations under this Agreement with respect to any such Patent Right.

                                  ARTICLE VII.

                                  INFRINGEMENT

                                       9
<PAGE>

      7.1 MediCept and Phenome shall each inform the other promptly in writing
of any alleged infringement by a third party of the Patent Rights in the Field
of Use and of any available evidence thereof.

      7.2 During the term of this Agreement, MediCept shall have the right, but
shall not be obligated, to prosecute at its own expense any infringement of the
Patent Rights by a third party. Phenome hereby agrees that MediCept may include
Phenome as a party plaintiff in any such suit, without expense to Phenome.
MediCept shall have the obligation at its expense to defend any claim of a third
party that any Licensed Product, or MediCept's activities pursuant to this
Agreement, infringe the third party's intellectual property rights. The total
cost of any infringement action commenced or defended solely by MediCept shall
be borne by MediCept, subject to MediCept's right to withhold a portion of the
royalties during such action as set forth in Section 7.4. MediCept shall keep
any recovery or damages for past infringement derived therefrom, subject to its
obligation to reimburse Phenome for any payments withheld and applied pursuant
to Section 7.4. Phenome agrees to reasonably cooperate in any such suit.

      7.3 If within ninety (90) days after having been notified of any alleged
infringement, MediCept shall have been unsuccessful in persuading the alleged
infringer to desist and shall not have brought and shall not be diligently
prosecuting an infringement action, or if MediCept shall notify Phenome at any
time prior thereto of its intention not to bring suit against any alleged
infringer then, in those events, (i) MediCept shall have the right to pay
Phenome royalties at [**] percent ([**]%) of the royalty rate otherwise due in
any country where significant infringing sales are made (i.e., [**] percent
([**]%) or more of total sales of Licensed Products in the Field of Use by
parties other than MediCept or Phenome); and (ii) Phenome may elect to prosecute
at its own expense the alleged infringement of the Patent Rights. If it elects
to prosecute such infringement, Phenome may use the name of MediCept as party
plaintiff. No settlement, consent judgment or other voluntary final disposition
of the suit may be entered into without the consent of MediCept, which consent
shall not be unreasonably withheld. Phenome shall indemnify MediCept against any
order for costs that may be made against MediCept in such proceedings.

      7.4 In the event MediCept shall undertake solely the enforcement and/or
defense of the Patent Rights by litigation, MediCept may withhold up to [**]
percent ([**]%) of the payments otherwise thereafter due to Phenome under
Article IV above, and apply the same toward defraying up to [**] percent ([**]%)
of MediCept's expenses, including reasonable attorney's fees, in connection with
such litigation. Any recovery of damages by MediCept for each such suit shall be
applied first in satisfaction of any unreimbursed expenses and legal fees of
MediCept relating to such suit and next toward reimbursement of Phenome for any
payments under Article IV past due or withheld and applied pursuant to this
Section 7.4. The balance remaining from any such recovery shall be retained by
MediCept.

      7.5 In the event that a declaratory judgment action alleging invalidity or
noninfringement of any of the Patent Rights shall be brought against MediCept,
Phenome, at its option, shall have the right, within thirty (30) days after
commencement of such action, to intervene and participate in the defense of the
action at its own expense.

      7.6 In any infringement suit which either party may institute to enforce
the Patent Rights pursuant to this Agreement, the other party hereto shall, at
the request and the expense of

                                       10
<PAGE>

the party initiating such suit, cooperate in all reasonable respects and, to the
extent reasonably possible, have its employees testify when requested and make
available relevant records, papers, information, samples, specimens, and the
like.

      7.7 MediCept shall, during the exclusive period of this Agreement, have
the sole right subject to the terms and conditions hereof to sublicense any
alleged infringer for future use of the Patent Rights. Any royalties from such
sublicensee shall be treated as set forth in Article IV.

                                 ARTICLE VIII.

                  UNIFORM INDEMNIFICATION PROVISIONS; INSURANCE

      8.1 MediCept shall indemnify, defend and hold harmless Phenome and BIDMC,
and their corporate affiliates, current or future directors, trustees, officers,
faculty, medical and professional staff, employees, students and agents and
their respective successors, heirs and assigns (the "Indemnitees"), against any
liability, damage, loss or expense (including reasonable attorney's fees and
expenses of litigation) incurred by or imposed upon the Indemnitees or any one
of them in connection with any claims, suits, actions, demands or judgments
arising out of any theory of product liability (including, but not limited to,
actions in the form of tort, warranty or strict liability) concerning any
product, process or service made, used or sold pursuant to any right or license
granted under this Agreement.

      8.2 MediCept's indemnification under Section 8.1 above shall not apply to
any liability, damage, loss or expense to the extent that it is directly
attributable to the negligent activities, reckless misconduct or intentional
misconduct of the Indemnitees.

      8.3 MediCept agrees, at its own expense, to provide attorneys of its own
choosing to defend against any actions brought or filed against any party
indemnified hereunder with respect to the subject of indemnity contained herein,
whether or not such actions are rightfully brought

      8.4 Beginning at the time any Licensed Product is commercially distributed
or sold by MediCept or by a licensee, affiliate, distributor or agent of
MediCept, MediCept shall, at its sole cost and expense, procure and maintain
comprehensive general liability insurance in amounts not less than $2,000,000
per incident and $2,000,000 annual aggregate and naming the Indemnitees as
additional insureds. Such comprehensive general liability insurance shall
provide (i) product liability coverage and (ii) broad form contractual liability
coverage for MediCept's indemnification under Section 8.1 of the Agreement. If
MediCept elects to self-insure all or part of the limits described above
(including deductibles or retentions which are in excess of $250,000 annual
aggregate), such self-insurance program must be acceptable to Phenome and
Phenome's insurance carrier. The minimum amounts of insurance coverage required
under this Section 8.4 shall not be construed to create a limit of MediCept's
liability with respect to its indemnification under Section 8.1 of this
Agreement.

      MediCept shall provide Phenome with written evidence of such insurance
upon request of Phenome. MediCept shall provide Phenome with written notice at
least fifteen (15) days prior to the cancellation, non-renewal or material
change in such insurance; if MediCept does not obtain replacement insurance
providing comparable coverage within such fifteen (15) day

                                       11
<PAGE>

period, Phenome shall have the right to terminate this Agreement effective at
the end of such fifteen (15) day period without notice or any additional waiting
periods.

      MediCept shall maintain such comprehensive general liability insurance
beyond the expiration or termination of this Agreement during (i) the period
that any Licensed Product is being commercially distributed or sold (other than
for the purpose of obtaining regulatory approvals) by MediCept or by a licensee,
affiliate, distributor or agent of MediCept and (ii) a reasonable period after
the period referred to in (c )(i) above which in no event shall be less than
five (5) years.

                                  ARTICLE IX.

                         REPRESENTATIONS AND WARRANTIES

      9.1 Phenome represents that to the best of its knowledge, the patents or
patent applications described herein and the REPS Technology and REPS Technology
Extensions described herein are not the subject of any liens, encumbrances,
interference proceedings, opposition proceedings, pending litigation, or other
disputes.

      9.2 Each party represents and warrants to the other that it has the legal
right and power to enter into this Agreement, and the authority to extend the
rights and licenses granted or to be granted to the other in this Agreement, and
to fully perform its obligations hereunder, and that it has not made nor will it
make any commitments to others in conflict with or in derogation of such rights
or this Agreement. Except as otherwise disclosed, each party fully represents to
the other that it is not aware of any legal obstacles which could prevent it
from carrying out the provisions of this Agreement.

      9.3 Other than warranties set forth herein, Phenome makes no warranty,
express or implied, including, without limitation, any implied warranty of
merchantability or any implied warranty of fitness for a particular purpose with
respect to any patent, trademark, software, trade secret, tangible research
property, information or data licensed or otherwise provided to MediCept
hereunder and hereby disclaims the same.

      9.4 Neither party will be liable to the other for any indirect,
incidental, special or consequential damages, including lost profits, regardless
of whether the claim is based on contract, tort, warranty, or otherwise, even if
the other party has been advised of the possibility of such damages.

                                   ARTICLE X.

                            GOVERNMENTAL REGULATIONS

      10.1 MediCept shall comply with, and insure its Affiliates and Licensees
comply with all governmental statutes and regulations that relate to the
Licensed Products. This may include applications for foreign patents which
require a foreign filing license from the United States Government, restriction
on the export or sale of certain technology or commodities, FDA statutes and
regulations, or other such restrictions on the transfer, sale, or disclosure of
technology. This includes, for example, the Export Administration Act of 1979 as
amended, codified in 50 App.

                                       12
<PAGE>

U.S.C. Section 2041 et seq. Phenome neither represents that a foreign export or
filing license shall not be required, nor that if required, such licenses shall
issue.

                                  ARTICLE XI.

                                 PATENT MARKING

      11.1 MediCept shall agree to mark permanently and legibly all Licensed
Products manufactured or sold by MediCept, under this Agreement with the number
of each issued patent applicable thereto. MediCept may state that such Licensed
Product is licensed from Phenome under one or more of the patents and/or
applications comprising the Patent Rights. MediCept shall comply with disclosure
requirements of all applicable laws relating to its business, including United
States and state security laws.

                                  ARTICLE XII.

                       DISPUTE RESOLUTION AND ARBITRATION

      12.1 Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, or in
connection with the Agreement, including any dispute relating to patent validity
or infringement, which the parties shall be unable to resolve within sixty (60)
days shall be mediated in good faith. The party raising such dispute shall
promptly advise the other of such claim, dispute or controversy in writing,
describing the dispute in reasonable detail. By no later than five (5) business
says after the recipient has received such notice of dispute, each party shall
have selected a representative who shall have the authority to bind such party
and shall have advised the other party in writing of the name and title of such
representative.

      12.2 Within fifteen (15) days of receipt of a request for mediation as
described above, the parties agree to commence mediation in the City of Boston,
Commonwealth of Massachusetts in accordance with the policies and procedures of
Endispute, Inc. ("Endispute"), or in the event that Endispute is no longer in
operation, in accordance with the policies and procedures of the American
Arbitration Association. The parties shall select a mediator acceptable to both
of them from a list provided by Endispute. The parties agree to cooperate in
good faith in said mediator's efforts to assist the parties to resolve the
dispute. Each party agrees to pay fifty percent (50%) of the costs of said
mediation. If the matter has not been resolved within thirty (30) days of the
commencement of mediation, either party may request in writing that the matter
be submitted to arbitration in accordance with the following subparagraph.

      12.3 Any and all claims, disputes or controversies arising under, out of,
or in connection with this Agreement, which have not been resolved by good faith
negotiations between the parties or by mediation shall be resolved by final and
binding arbitration in Boston, Massachusetts, in accordance with the rules of
the American Arbitration Association ("AAA") then obtaining and all expenses, in
connection therewith, will be shared equally, except for the expense of the
parties' respective legal counsels. A single arbitrator shall be mutually agreed
upon and if the parties are unable to agree on a mutually acceptable arbitrator,
an arbitrator shall

                                       13
<PAGE>

be chosen in accordance with AAA rules. Any award rendered in such arbitration
shall be final and may be enforced by either party.

      12.4 Notwithstanding the foregoing, nothing in this Article XII shall be
construed to waive any rights or timely performance of any obligations existing
under this Agreement.

                                 ARTICLE XIII.

                              TERM AND TERMINATION

      13.1 Unless earlier terminated as provided herein, this Agreement shall
terminate upon the last to expire of the Patent Rights, on a country-by-country
basis.

      13.2 Phenome may terminate this Agreement immediately upon the bankruptcy,
insolvency, liquidation, dissolution or cessation of operations of MediCept; or
the filing of any voluntary petition for bankruptcy, dissolution, liquidation or
winding-up of the affairs of MediCept; or any assignment by MediCept for the
benefit of creditors; or the filing of any involuntary petition for bankruptcy,
dissolution, liquidation or winding-up of the affairs of MediCept which is not
dismissed within ninety (90) days of the date on which it is filed or commenced.

      13.3 Phenome may terminate this Agreement upon sixty (60) days prior
written notice in the event of MediCept's failure to pay to Phenome royalties
due and payable hereunder in a timely manner, unless MediCept shall make all
such payments to Phenome within said sixty (60) day period. Upon the expiration
of the sixty (60) day period, if MediCept shall not have made all such payments
to Phenome, the rights, privileges and licenses granted hereunder shall
terminate.

      13.4 Except as otherwise provided in Section 13.3 either party may
terminate this Agreement upon ninety (90) days prior written notice in the event
of the breach or default of any material term or condition or warranty contained
in this Agreement by the other, unless the breaching party shall cure such
breach within said ninety (90) day period. Upon the expiration of the ninety
(90) day period, if breaching party shall not have cured said breach, the
rights, privileges and license granted hereunder shall terminate.

      13.5 Prior to the first offering for sale of a Licensed Product in any
country, MediCept may terminate this Agreement upon three (3) months prior
written notice to Phenome without cause or penalty and upon payment by MediCept
of all amounts due Phenome through the effective date of termination.

      13.6 After the first offering for sale of a Licensed Product in a country,
MediCept may terminate this Agreement in whole or as it pertains to that country
upon twelve (12) months prior written notice to Phenome without cause or penalty
and upon payment by MediCept of all amounts due Phenome through the effective
date of termination.

      13.7 Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination. MediCept and any sublicensee
thereof may, however, after the effective date of such termination, sell all
Licensed Products and complete Licensed Products in the process of

                                       14
<PAGE>

manufacture at the time of such termination and sell the same, provided that
MediCept shall pay to Phenome the royalties thereon as required under this
Agreement and shall submit the reports required under this Agreement on the
sales of Licensed Products.

      13.8 In the event of termination of this Agreement for any reason, all
payments due or made to Phenome by MediCept shall be nonrefundable.

                                  ARTICLE XIV.

                   COMMERCIAL DEVELOPMENT AND NON-COMPETITION

      14.1 During the term of this Agreement, Phenome shall not conduct research
in the Field of Use for, or on behalf of, nor consult with any other person or
entity, except that Phenome shall be free (i) pursuant to a research services
contract with a third party, to develop and utilize its tools for understanding
the mechanism of action of drugs other than the REPS Technology and (ii) to
apply for (with MediCept's' assistance) and perform a Phase II SBIR grant in
which Phenome utilizes its tools for determining the mechanism of action of the
REPS Technology.

      14.2 Each party hereto shall agree to maintain the confidentiality of all
confidential or proprietary information provided to it by any other party and to
return all such confidential or proprietary information, and any copies thereof,
to the providing party upon termination of the transactions contemplated hereby.

      14.3 Phenome shall not apply for funds from any third party for the
research and development of the REPS Technology or the REPS Technology
Extensions without the prior written consent of MediCept.

      14.4 MediCept shall be responsible for all research and development
activities required for commercial development of Licensed Products in the Field
of Use at MediCept's sole expense.

      14.5 All applications required for regulatory approval of Licensed
Products (e.g., INDs, NDAs, PLAs, etc.) shall be filed by MediCept, shall be at
its sole cost, in its name, and be owned by it.

      14.6 MediCept shall be responsible for all sales, marketing, and
distribution of all Licensed Products at its sole cost.

      14.7 MediCept may select and register trademarks for brand names for all
Licensed Products and such trademarks shall be the sole property of MediCept.

                                  ARTICLE XV.

                               GENERAL PROVISIONS

      15.1 Except as otherwise provided herein, this Agreement is not assignable
in whole or in part, and any attempt to do so shall be void and of no effect.
Phenome may assign this

                                       15
<PAGE>

Agreement to any Affiliate of Phenome, or with the prior written consent of
MediCept to a third party, which consent shall not be unreasonably withheld or
delayed. MediCept may assign this Agreement to any Affiliate, to another entity
in connection with a merger, consolidation or sale of substantially all of the
assets of MediCept relating to the Licensed Products or with the prior written
consent of Phenome, to a third party which consent shall not be unreasonably
withheld or delayed.

      15.2 All rights and remedies hereunder will be cumulative and not
alternative and this Agreement shall be construed and governed by the laws of
the Commonwealth of Massachusetts.

      15.3 This Agreement may be amended only by written agreement signed by the
parties

      15.4 It is expressly agreed by the parties hereto that Phenome and
MediCept are independent contractors and nothing in this Agreement is intended
to create an employer relationship, joint venture, or partnership between the
parties. No party has the authority to bind the other except as provided herein.

      15.5 This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and supersedes all proposals,
negotiations and other communications between the parties, whether written or
oral, with respect to the subject matter hereof.

      15.6 If any provisions of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be impaired hereby.

      15.7 This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original as against the party whose signature appears
thereon, but all of which taken together shall constitute but one and the same
instrument.

      15.8 The failure of either party to assert a right to which it is entitled
or to insist upon compliance with any term or condition of this Agreement shall
not constitute a waiver of that right or excuse a similar subsequent failure to
perform any such term or condition of the other party.

      15.9 Each party hereto agrees to execute, acknowledge and deliver such
further instruments and do all such further acts as may be necessary or
appropriate to carry out the purposes and intent of this Agreement.

      15.10 The paragraph headings contained in this Agreement are for reference
purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

      15.11 All payments, notices, reports and/or other communications made in
accordance with this Agreement, shall be sufficiently made or given on the date
of the mailing if delivered by hand, by facsimile or sent by first class mail
postage prepaid and addressed as follows, or such other address as either party
shall notify the other in writing.

                                       16
<PAGE>

In the case of Phenome:

                  Phenome Sciences, Inc.
                  3-G Gill Street
                  Woburn, MA 01801

                  Attention:  Peter B. Leone

In the case of MediCept:

                  MediCept, Inc.
                  40 Royal Avenue
                  Cambridge, MA 02138

                  Attention:  H. Shaw Warren, M.D.

                 [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       17
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date written below.

MEDICEPT, INC.                                       PHENOME SCIENCES, INC.

By:     /s/ Howland S. Warren, Jr., M.D.            By:      /s/ Peter B. Leone
        -------------------------------                     --------------------
Name:   Howland S. Warren, Jr., M.D.                Name:    Peter B. Leone
Title:  Chairman of the Board                       Title:   President and CEO
Date:   December 15, 2000                           Date:    December 15, 2000

                                       18

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