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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<PAGE>
                    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.

                                       3
<PAGE>
      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

                                       4
<PAGE>
         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
<PAGE>
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 - $[**];
Second calendar year after Research Term

                                       8
<PAGE>
$[**]; Third calendar year after Research Term - $[**]; Fourth calendar year
after Research Term - $[**]; Fifth calendar year after Research Term - $[**];
Sixth calendar year after Research Term - $[**]; Seventh calendar year after
Research Term - $[**]; and Eighth calendar year after Research Term and each
calendar year thereafter - $[**]. 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.

                                       14
<PAGE>
                        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 10.8

--------------------------------------------------------------------------------
          Confidential Materials omitted and filed separately with the

         Securities and Exchange Commission. Asterisks denote omissions.
--------------------------------------------------------------------------------

                  EXCLUSIVE LICENSE AND COLLABORATION AGREEMENT

                                     BETWEEN

                                 MEDIMMUNE, INC.

                                       AND

                           CRITICAL THERAPEUTICS, INC.
<PAGE>
                  EXCLUSIVE LICENSE AND COLLABORATION AGREEMENT

         THIS AGREEMENT (the "Agreement") effective as of July 30, 2003 (the
"Effective Date") between MEDIMMUNE, INC., a corporation organized and existing
under the laws of Delaware ("MedImmune") and CRITICAL THERAPEUTICS, INC., a
corporation organized and existing under the laws of Delaware ("CTI").

                                  INTRODUCTION

         1.       CTI has developed CTI Know-How (as defined below) and has
                  rights to CTI Patent Rights (as defined below);

         2.       MedImmune and CTI desire to enter into a research
                  collaboration to develop Products (as defined below) upon the
                  terms and conditions set forth in this Agreement; and

         3.       MedImmune desires to obtain a license under the CTI Patent
                  Rights and CTI Know-How, upon the terms and conditions set
                  forth in this Agreement and CTI desires to grant such a
                  license;

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants herein contained, the Parties hereby agree as follows:

1.       DEFINITIONS

         'Unless specifically set forth to the contrary herein, the following
terms, whether used in the singular or plural, shall have the respective
meanings set forth below:

1.1      "AAA". AAA shall have the meaning set forth in Section 11.6.01.

1.2      "AFFILIATE". Affiliate shall mean with respect to any Party, any person
         or entity controlling, controlled by or under common control with such
         Party. For purposes of this Section 1.2, "control" shall mean (a) in
         the case of a corporate entity, direct or indirect ownership of fifty
         percent (50%) or more of the stock or shares having the right to vote
         for the election of directors of such corporate entity and (b) in the
         case of an entity that is not a corporate entity, the possession,
         directly or indirectly, of the power to direct, or cause the direction
         of, the management or policies of such entity, whether through the
         ownership of voting securities, by contract or otherwise.

1.3      "ANTIBODY". Antibody shall mean a molecule comprising or containing:

                  (i) one or more immunoglobulin variable domains; or

                  (ii) fragments, variants, modifications or derivatives of
molecules described in subsection (i); or

                                       1
<PAGE>
                  (iii) the nucleic acid consisting of a sequence of nucleotides
encoding any one of the molecules described in subsections (i) or (ii) above.

1.4      "BLA". BLA shall mean (a) a Biologics License Application filed with
         the FDA for marketing approval of a Product or any successor
         applications or procedures, and all supplements and amendments that may
         be filed with respect to the foregoing, and (b) similar filings in ROW
         with applicable Regulatory Authorities, including EMEA.

1.5      "CALENDAR QUARTER". Calendar Quarter shall mean the respective periods
         of three (3) consecutive calendar months ending on March 31, June 30,
         September 30 and December 31.

1.6      "CALENDAR YEAR". Calendar Year shall mean each successive period of
         twelve (12) months commencing on January 1 and ending on December 31.

1.7      "CHANGE OF CONTROL". Change of Control shall mean with respect to a
         Party: (1) a sale of all or substantially all of such Party's assets or
         business relating to this Agreement; (2) a merger, reorganization or
         consolidation involving a Party in which the stockholders of such Party
         immediately prior to such transaction cease to own collectively a
         majority of the voting equity securities of a successor entity; or (3)
         a person or group of persons acting in concert (other than, in the case
         of CTI, current stockholders of CTI) acquire fifty percent (50%) or
         more of the voting equity securities of such Party.

1.8      "COLLABORATION". Collaboration shall mean the Development activities
         undertaken by the Parties individually or collectively, including,
         those activities set forth in Article 3.

1.9      "COMBINATION PRODUCT". Combination Product shall mean a product which
         includes one or more clinically active components in addition to the
         Product. All references to Product in this Agreement shall be deemed to
         include Combination Product.

1.10     "COMMERCIALIZATION" or "COMMERCIALIZE". Commercialization or
         Commercialize shall mean activities directed to obtaining pricing and
         reimbursement approvals, manufacturing, Marketing, promoting,
         detailing, distributing, importing or selling a Product for use in the
         Field.

1.11     "COMMERCIALLY REASONABLE EFFORTS". Commercially Reasonable Efforts
         shall mean with respect to the efforts to be expended by a Party with
         respect to any objective, reasonable, good faith efforts to accomplish
         such objective as such Party would normally use to accomplish a similar
         objective under similar circumstances, it being understood and agreed
         that with respect to the Development or Commercialization of a Product,
         such efforts shall be similar to those efforts and resources commonly
         used by a Party for a similar biological or pharmaceutical product
         owned by it or to which it has rights, which product is at a similar
         stage in its development or product life and is of similar market
         potential taking into account efficacy, safety, approved labeling, the
         competitiveness of alternative products in the marketplace, the patent
         and other

                                       2
<PAGE>
         proprietary position of the product, the likelihood of regulatory
         approval given the regulatory structure involved, the profitability of
         the product including the royalties payable to licensors of patent or
         other intellectual property rights, alternative products and other
         relevant factors. Commercially Reasonable Efforts shall be determined
         on a market-by-market and Indication-by-Indication basis for a
         particular Product, and it is anticipated that the level of effort will
         be different for different markets, and will change over time,
         reflecting changes in the status of the Product and the market(s)
         involved.

1.12     "COMMITTEE". Committee shall have the meaning set forth in Section
         2.1.01.

1.13     "CONTROL", "CONTROLS" or "CONTROLLED BY". Control, Controls or
         Controlled by shall mean, with respect to any item of or right under
         Patents or Know-How, the possession of (whether by ownership or
         license, other than pursuant to this Agreement) or the ability of a
         Party to grant access to, or a license or sublicense of, such items or
         right as provided for herein without violating the terms of any
         agreement or other arrangement with any Third Party existing at the
         time such Party would be required hereunder to grant the other Party
         such access or license or sublicense.

1.14     "CO-PROMOTION". Co-Promotion shall mean the Commercialization of the
         Products in the United States pursuant to the terms and conditions of
         the Co-Promotion Agreement.

1.15     "CO-PROMOTION AGREEMENT". Co-Promotion Agreement shall mean an
         agreement relating to the co-promotion of the Lead Product entered into
         by the Parties pursuant to Section 4.4.02(b), including the provisions
         set forth in Exhibit A to this Agreement.

1.16     "CTI COLLABORATION INVENTION(S)". CTI Collaboration Invention(s) shall
         mean all Inventions that are developed or invented by employees of CTI
         and/or other persons not employed by MedImmune acting on behalf of CTI,
         to the extent that such Inventions (A) are directed to Target, (B) are
         directed to the use of Target in the Development or Commercialization
         of Products for use in the Field, (C) are directed to Product, or (D)
         are useful with respect to the Development or Commercialization of
         Product for use in the Field.

1.17     "CTI KNOW-HOW". CTI Know-How shall mean all Know-How (i) owned by
         and/or licensed to CTI as of the Effective Date, (ii) that becomes
         owned in whole or in part by CTI during the Term, or (iii) that is
         licensed to CTI during the Term and as to which CTI has the right to
         grant sublicenses (without violating the terms of any agreement or
         other arrangement with any Third Party), in each of the foregoing
         cases, to the extent that such Know-How (A) is directed to Target, (B)
         is directed to the use of Target in the Development or
         Commercialization of Products for use in the Field, (C) is directed to
         Product, or (D) is useful with respect to the Development or
         Commercialization of Product for use in the Field.

1.18     "CTI PATENT RIGHT(S)". CTI Patent Right(s) shall mean any and all
         Patents (i) that are owned by or licensed to CTI as of the Effective
         Date, or (ii) that become owned in

                                       3
<PAGE>
         whole or in part by CTI at any time during the Term, or (iii) that
         claim a CTI Collaboration Invention and/or Joint Collaboration
         Invention, or (iv) that cover CTI Know-How, or (v) that are licensed to
         CTI after the Effective Date and as to which CTI has the right to grant
         a sublicense (without violating the terms of any agreement or other
         arrangement with any Third Party), in each of the foregoing cases, to
         the extent that such Patents claim (A) Target, (B) the use of Target in
         the Development or Commercialization of Products for use in the Field,
         (C) Product or (D) the Development or Commercialization of Product for
         use in the Field. Patent Rights include, but are not limited to, the
         Patents of Exhibit B.

1.19     "DETAIL" and "DETAILING". Detail and Detailing shall mean (i) for
         Indications appropriate for treatment of patients in a physician office
         practice environment, a one-on-one, face-to-face meeting, in an
         individual or group practice setting, between one or more target
         prescribers and a sales representative of a Party or its designee,
         during which Product information is communicated orally to the
         prescriber that is in addition to any discussion regarding the
         prescriber's sample needs, and (ii) for Indications appropriate for
         treatment of patients in hospitals, a one-on-one, face-to-face meeting,
         in a hospital setting, between one or more target physicians or
         surgeons and a sales representative of a Party or its designee, during
         which Product information is communicated orally to the physician or
         surgeon that is in addition to any discussion regarding sample needs.

1.20     "DEVELOP" or "DEVELOPMENT". Develop or Development shall mean research,
         discovery, modification and preclinical and clinical drug and/or
         biological development activities, including test method development
         and stability testing, toxicology, formulation, quality
         assurance/quality control development, statistical analysis, clinical
         studies and regulatory affairs, approval and registration in each case,
         of the Product for use in the Field.

1.21     "DEVELOPMENT COST". Development Cost means the aggregate amount of
         costs incurred by MedImmune in Developing Product, as determined in a
         reasonable manner consistent with MedImmune's normal internal cost
         accounting practices and in accordance with generally accepted
         accounting principles, consisting of: (i) direct labor (salaries, wages
         and employee benefits), (ii) materials and supplies, (including
         clinical material) used in Development, (iii) overhead charges
         attributable to Development (but excluding any corporate administrative
         expense) including allocated building and equipment operating costs,
         allocated depreciation, and repairs and maintenance, and (iv) payments
         made to a Third Party for services in connection with Development.

1.22     "EMEA". EMEA shall mean the European Medicines Evaluation Agency or any
         successor agency thereto.

1.23     "FDA". FDA shall mean the United States Food and Drug Administration or
         any successor agency thereto.

                                       4
<PAGE>
1.24     "FIELD". Field shall mean the Development and Commercialization of
         Products for the treatment or prevention or amelioration of a disease,
         disorder or medical condition in humans or non-human animals. For
         purposes of clarity, Field shall not include the Development or
         Commercialization of products for the diagnosis of any disease,
         disorder or medical condition in humans or non-human animals.

1.25     "FILING". Filing of a BLA or NDA shall mean the acceptance by a
         Regulatory Authority of such BLA or NDA for filing.

1.26     "FIRST COMMERCIAL SALE". First Commercial Sale shall mean, with respect
         to any Product, the first sale for end use or consumption of such
         Product in a country after all required approvals, including Regulatory
         Approval, have been granted by the Regulatory Authority of such
         country.

1.27     "FTE" or "FULL TIME EQUIVALENT". FTE or Full Time Equivalent shall mean
         1800 hours per year of a full-time scientist's work time period. The
         portion of an FTE year devoted by a scientist to the Collaboration
         shall be determined by dividing the number of hours during any
         twelve-month period devoted by such employee to the Collaboration by
         1800 hours.

1.28     "FTE RATE". FTE Rate shall mean the $[**] per FTE, subject to
         adjustment on an annual basis to reflect any increase or decrease in
         the Consumer Price Index-Urban Wage Earners and Clerical Workers, U.S.
         City Average, published by the U.S. Department of Labor, Bureau of
         Statistics (or its successor equivalent index). The FTE Rate for each
         FTE, includes laboratory supplies and equipment, equipment maintenance
         costs, utilities, waste removal, and a pro rata allocation of general
         and administrative expenses plus facilities expenses.

1.29     "FULLY-BURDENED MANUFACTURING COST". Fully-Burdened Manufacturing Cost
         means the consolidated fully burdened cost incurred by MedImmune in the
         manufacture of Product, consisting of: (i) direct labor costs
         (salaries, wages and employee benefits); (ii) direct materials costs;
         (iii) operating costs of facilities and equipment, excluding any
         surplus or idle capacity costs; (iv) a charge for depreciation, repairs
         and maintenance costs of facilities and equipment; (v) quality and
         in-process control costs; (vi) a charge for overhead costs for raw
         material and manufacturing administration and management, materials
         management, storage and handling, and manufacturing and employee
         training; and (vii) charges for spoilage, scrap or rework costs; and
         (viii) royalties that are paid to a Third Party for manufacture of
         Product; in each of the above cases to the extent reasonably allocable
         to the manufacture of Product as determined in accordance with United
         States generally accepted accounting principles. To the extent that
         manufacturing of Product or any component thereof is performed for
         MedImmune by a Third Party, amounts paid by MedImmune to such Third
         Party in connection with the manufacturing of Product or any component
         thereof will be added to the aggregate amount of the foregoing items
         (i) through (viii).

                                       5
<PAGE>
1.30     "IMPROVEMENT". Improvement shall mean any enhancement, modification,
         purification, optimization, or affinity maturation of a Product, and
         the scale-up, manufacture, formulation, ingredients, preparation,
         presentation, means of delivery, dosage or packaging of a Product,
         whether or not patentable.

1.31     "IND". IND shall mean an Investigational New Drug application, Clinical
         Study Application, Clinical Trial Exemption, or similar application or
         submission for approval to conduct human clinical investigations filed
         with or submitted to a Regulatory Authority in conformance with the
         requirements of such Regulatory Authority.

1.32     "INDICATION". Indication shall mean a separate and distinct disease or
         medical condition in humans for which a Product is intended to treat,
         prevent and/or ameliorate.

1.33     "INFORMATION". Information shall mean any and all information and data,
         including without limitation all MedImmune Know-How, CTI Know-How, and
         all other scientific, pre-clinical, clinical, regulatory,
         manufacturing, marketing, financial and commercial information or data,
         whether communicated in writing or orally or by any other method, which
         is provided by one Party to the other Party in connection with this
         Agreement.

1.34     "INVENTION". Invention shall mean any process, method, composition of
         matter, article of manufacture, discovery or finding that is conceived
         and/or reduced to practice during the Term.

1.35     "JOINT COLLABORATION INVENTION(S)". Joint Collaboration Invention(s)
         shall mean all Inventions and Know-How developed or invented jointly by
         employees of MedImmune and CTI or others acting on behalf of MedImmune
         and CTI, in each of the foregoing cases, to the extent that such
         Inventions or Know-How (A) are directed to Target, (B) are directed to
         the use of Target in the Development or Commercialization of Products
         for use in the Field, (C) are directed to Product, or (D) are useful
         with respect to the Development or Commercialization of Product for use
         in the Field.

1.36     "JOINT COLLABORATION PATENT(S)". Joint Collaboration Patent(s) shall
         mean all Patents that include a Valid Claim that claims any Joint
         Collaboration Invention.

1.37     "KNOW-HOW". Know-How shall mean (a) any scientific or technical
         information, results and data of any type whatsoever, in any tangible
         or intangible form whatsoever, including databases, practices, methods,
         techniques, specifications, formulations, formulae, knowledge,
         know-how, skill, experience, test data including pharmacological,
         medicinal chemistry, biological, chemical, biochemical, toxicological
         and clinical test data, analytical and quality control data, stability
         data, studies and procedures, and manufacturing process and development
         information, results and data, and (b) any biological, chemical, or
         physical materials.

                                       6
<PAGE>
1.38     "LEAD PRODUCT". Lead Product shall mean a Product for only one Major
         Indication that is the first Product for the first Major Indication as
         to which a Phase III Clinical Trial is initiated.

1.39     "MAJOR EUROPEAN COUNTRY". Major European Country shall mean the United
         Kingdom, Germany, Italy, France and/or, Spain.

1.40     "MAJOR INDICATION". Major Indication shall mean any one of the
         following Indications: pancreatitis, sepsis, shock, ischemic tissue
         injury, rheumatoid arthritis, inflammatory bowel disease, multiple
         sclerosis, psoriasis, and cachexia associated with malignancies and
         other debilitating diseases, and such other Indications as may be
         determined by the Committee.

1.41     "MANUFACTURING PROCESS". Manufacturing Process means the process that
         exists at MedImmune or its subcontractors for manufacturing Product.

1.42     "MARKETING". Marketing shall mean all activities relating to the
         marketing and sales of a Product in a country other than Detailing, and
         shall include but not be limited to pricing and reimbursement
         strategies, determination of the appropriate target audience and
         appropriate number of representatives for Detailing to such target
         audience, managed care and hospital contracting, and promotional
         messages.

1.43     "MEDIMMUNE COLLABORATION INVENTION(S)". MedImmune Collaboration
         Invention(s) shall mean all Inventions that are developed or invented
         pursuant to the Collaboration by employees of MedImmune and/or other
         persons not employed by CTI acting on behalf of MedImmune, to the
         extent that such Inventions (A) are directed to Target, (B) are
         directed to the use of Target in the Development or Commercialization
         of Products for use in the Field, (C) are directed to Product, or (D)
         are useful with respect to the Development or Commercialization of
         Product for use in the Field.

1.44     "MEDIMMUNE COLLABORATION PATENT(S)". MedImmune Collaboration Patent(s)
         shall mean all Patents owned in whole or in part by MedImmune that
         claim a Collaboration Invention or that claim MedImmune Know-How.

1.45     "MEDIMMUNE KNOW-HOW". MedImmune Know-How shall mean all Know-How
         developed pursuant to the Collaboration during the Term by employees of
         MedImmune or other persons not employed by CTI acting on behalf of
         MedImmune and owned by MedImmune, and, in each of the foregoing cases,
         to the extent that such Know-How (i) is directed to Target, (ii) is
         directed to the use of Target in the Development or Commercialization
         of Product for use in the Field, (iii) is directed to Product, or (iv)
         is useful with respect to the Development or Commercialization of
         Product for use in the Field; provided, however, MedImmune Know-How
         does not include Know-How owned by MedImmune that is directed to
         manufacturing of Product.

                                       7
<PAGE>
1.46     "MEDIMMUNE ROYALTY KNOW-HOW". MedImmune Royalty Know-How means
         MedImmune Know-How that was created during the period beginning on the
         Effective Date and [**].

1.47     "MEDIMMUNE ROYALTY PATENT". MedImmune Royalty Patent means a MedImmune
         Collaboration Patent that was filed or claims the priority of a
         MedImmune Collaboration Patent that was filed during the period
         beginning on the Effective Date and [**].

1.48     "NDA". NDA shall mean (a) a New Drug Application filed with the FDA for
         marketing approval of a Product or any successor applications or
         procedures, and all supplements and amendments that may be filed with
         respect to the foregoing, and (b) similar filings in ROW with
         applicable Regulatory Authorities, including EMEA.

1.49     "NET PRE-TAX U.S. PROFITS". Net Pre-Tax U.S. Profits shall have the
         meaning set forth in Exhibit A.

1.50     "NET SALES". Net Sales shall mean the gross invoice price of Product
         sold by MedImmune or its Related Parties to the first Third Party after
         deducting, if not previously deducted, from the amount invoiced or
         received (as determined in accordance with United States generally
         accepted accounting principles consistently applied to all products of
         MedImmune), the following:

         (a)      trade, quantity and cash discounts allowed;

         (b)      discounts, refunds, rebates (including federal, state or local
                  government rebates), chargebacks, retroactive price
                  adjustments, all to the extent allowed;

         (c)      refunds or credits for actual returns of a Product;

         (d)      any tax imposed on the production, sale, delivery or use of a
                  Product, including, without limitation, sales, use, excise or
                  value added taxes, other than income taxes; and

         (e)      freight and insurance included in the gross amount invoiced;
                  and

         (f)      a reasonable allowance for bad debt.

In the event a Product is sold as part of a Combination Product, the Net Sales
from the Combination Product, for the purposes of determining royalty payments,
shall be determined by multiplying the Net Sales of the Combination Product (as
defined in the standard Net Sales definition), during the applicable royalty
reporting period, by the fraction, A/A+B, where A is the average sale price of
the Product containing such Product, when sold separately in finished form and B
is the average sale price of the other products whose clinically active
components are included in the Combination Product when such products are sold
separately in finished form, in each case during the applicable royalty
reporting period or, if sales of both the Product, and the

                                       8
<PAGE>
other product(s) did not occur in such period, then in the most recent royalty
reporting period in which sales of both occurred. In the event that such average
sale price cannot be determined for both the Product and all other product(s)
included in the Combination Product, Net Sales for the purposes of determining
royalty payments shall be calculated by multiplying the Net Sales of the
Combination Product by the fraction of C/C+D where C is the fair market value of
the Product or , as applicable, and D is the fair market value of all other
clinically active ingredient(s) included in the Combination Product. In such
event, MedImmune shall in good faith make a determination of the respective fair
market values of the Product, and all other clinically active components
included in the Combination Product, and shall notify CTI of such determination
and provide CTI with data to support such determination. CTI shall have the
right to review such determination and supporting data, and to notify MedImmune
if it disagrees with such determination. If CTI does not agree with such
determination and if the Parties are unable to agree in good faith as to such
respective fair market values, then such matter shall be settled pursuant to the
provisions of Section 11.6.

1.51     "PARTY". Party shall mean MedImmune or CTI, as appropriate in the
         context, and "PARTIES" shall mean MedImmune and CTI, collectively.

1.52     "PATENT(S)". Patent(s) shall mean (a) all patents and patent
         applications in any country or supranational jurisdiction, and (b) any
         provisionals, substitutions, divisions, continuations, continuations in
         part, reissues, renewals, registrations, confirmations, reexaminations,
         extensions, supplementary protection certificates and the like, of any
         such patents or patent applications.

1.53     "PERMITTED SUBCONTRACTOR". Permitted Subcontractor shall have the
         meaning set forth in Section 3.2(c).

1.54     "PHASE I CLINICAL TRIAL". Phase I Clinical Trial means a human clinical
         trial, in any country that would satisfy the requirements of 21
         C.F.R.312.21(a)].

1.55     "PHASE II CLINICAL TRIAL". Phase II Clinical Trial means a human
         clinical trial, in any country that would satisfy the requirements of
         21 C.F.R. 312.21(b).

1.56     "PHASE III CLINICAL TRIAL". Phase III Clinical Trial shall mean a human
         clinical trial in any country that would satisfy the requirements of 21
         CFR 312.21(c).

1.57     "PRODUCT(S)". Product(s) shall mean (i) an Antibody, (ii) a peptide,
         protein, protein-construct, fusion protein, including without
         limitation purified protein, lipoproteins, glycoproteins,
         polynucleotides, and nucleotide aptamers consisting of either modified
         or unmodified DNA or RNA sequences, including without limitation single
         stranded or double stranded or a combination of both, (iii) a Small
         Molecule Product or (iv) other molecules, in each case that
         specifically binds to, inactivates or inhibits Target, its gene, or its
         receptor or the gene of such receptor, and in each case, that either
         (A) is covered by a Valid Claim of a CTI Patent Right, and/or Joint
         Collaboration Patent or (B) incorporates, is derived from, or is
         discovered or manufactured using CTI Know-How,

                                       9
<PAGE>
         or (C) is covered by a Valid Claim of a MedImmune Royalty Patent or (D)
         incorporates or is manufactured by use of MedImmune Royalty Know-How.

1.58     "PROJECT LEADER". Project Leader shall have the meaning set forth in
         Section 2.2.01.

1.59     "REGULATORY APPROVAL". Regulatory Approval shall mean all approvals
         from the relevant Regulatory Authority to market and sell a Product in
         any country (excluding all applicable pricing and reimbursement
         approvals), including a BLA and NDA.

1.60     "REGULATORY AUTHORITY". Regulatory Authority shall mean any applicable
         government regulatory authority involved in granting approvals for the
         manufacturing, marketing, reimbursement and/or pricing of a Product in
         the Territory, including, in the United States, the FDA and any
         successor governmental authority having substantially the same
         function.

1.61     "RELATED PARTY". Related Party shall mean MedImmune, its Affiliates,
         and permitted sublicensees (which term does not include distributors
         which are not Affiliates of MedImmune).

1.62     "RESEARCH PLAN". Research Plan shall mean the plan set forth in Exhibit
         C, and all revisions, amendments or annual updates thereto approved by
         the Committee.

1.63     "ROW". ROW shall mean all of the countries in the world, and their
         territories and possessions, except for the United States.

1.64     "SECONDARY CO-PROMOTION OPTION". Secondary Co-Promotion Option shall
         have the meaning set forth in Section 4.4.02(b)(i).

1.65     "SMALL MOLECULE PRODUCT". Small Molecule Product shall mean a small
         molecule (defined as a non-peptidic molecule with a molecular weight of
         less than 1,000 daltons) that specifically binds to, inactivates, or
         inhibits the Target, its gene or its receptor.

1.66     "TARGET". Target shall mean human high mobility group box chromosomal
         protein 1 ("HMGB1"), including but not limited to all fragments,
         derivatives, and homologues (with amino acid identity of greater than
         [**]% thereof, either in the full protein or in the A box domain, or in
         the B box domain), the nucleic acid encoding any of the foregoing, or
         those homologues that are bound by a monoclonal antibody that also
         recognizes HMGB1.

1.67     "TECHNOLOGY ACQUISITION AGREEMENT". Technology Acquisition Agreement
         shall mean an agreement entered into before or after the Effective Date
         between CTI and a Third Party under which CTI is granted a license to
         or is assigned (a) any of such Third Party's Patents that claim (i)
         Target, (ii) the use of Target in the Development or Commercialization
         of the Product for use in the Field, (iii) Product, or (iv) composition
         or manufacture of Product, or (b) any of such Third Party's Know-How
         that covers or is useful with respect to (i) Target, (ii) the use of
         Target in the Development or

                                       10
<PAGE>
         Commercialization of the Product for use in the Field, (iii) Product
         and/or (iv) composition or manufacture of Product. The Technology
         Acquisition Agreements of CTI that exist as of the Effective Date are
         listed in Exhibit D.

1.68     "TERM". Term shall have the meaning set forth in Section 10.1.

1.69     "TERRITORY". Territory shall mean all of the countries in the world,
         and their territories and possessions.

1.70     "THIRD PARTY". Third Party shall mean an entity other than (a)
         MedImmune and its Related Parties, and (b) CTI and its Affiliates.

1.71     "THIRD PARTY LICENSES". Third Party Licenses shall have the meaning set
         forth in Section 10.3.02(c).

1.72     "UNITED STATES" or "US". United States or US shall mean the United
         States of America and its territories and possessions, including
         without limitation the Commonwealth of Puerto Rico and the U.S. Virgin
         Islands.

1.73     "VALID CLAIM". Valid Claim shall mean a claim (a) of any issued,
         unexpired United States or foreign patent that shall not have been
         dedicated to the public, disclaimed, abandoned nor held invalid or
         unenforceable by a court or other body of competent jurisdiction in an
         unappealed or unappealable decision, or (b) of any United States or
         foreign patent application that shall not have been cancelled,
         withdrawn, abandoned nor been pending for more than five (5) years from
         the earliest priority date.

2.       JOINT COMMITTEE TO MANAGE DEVELOPMENT

2.1      JOINT DEVELOPMENT COMMITTEE

         The Parties hereby establish a committee to facilitate the Development
         of Products through the Collaboration as set forth in Article 3 as
         follows:

2.1.01   COMPOSITION AND AUTHORITY OF THE JOINT DEVELOPMENT COMMITTEE. The
         Parties' Development efforts shall be conducted under the direction of
         a Joint Development Committee (the "Committee") comprised of three (3)
         representatives of MedImmune (including the MedImmune Program Director)
         and three (3) representatives of CTI (including the CTI Program
         Director). Each Party shall make its designation of its representatives
         prior to the Effective Date. These representatives shall have
         appropriate technical credentials, experience and knowledge, and
         ongoing familiarity with the Parties' respective efforts in the
         Development of Products appropriate to the stage of Development of such
         Products, and each Party may substitute one or more of its
         representatives, in its sole discretion, effective upon notice to the
         other Party of such change. The Committee will (i) provide guidance
         regarding Development of Products, including the review of Product
         Development plans, (ii) make decisions regarding the Research Plan for
         the Development of Products for each Indication, and regarding the

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<PAGE>
         respective roles of each Party in the Development of Products, (iii)
         address such other matters as either Party may bring before the
         Committee, (iv) perform such other tasks and undertake such other
         responsibilities as may be set forth in this Agreement, and (v) attempt
         to resolve any disputes relating to this Agreement that may arise
         between the Parties. MedImmune will provide the Committee with updates
         as to plans for Commercializing Product to enable CTI to make an
         informed decision as to the exercise of the co-promotion option granted
         to CTI pursuant to Section 4.4.02 hereof.

2.1.02   MEETINGS. The Committee shall meet within forty-five (45) days after
         the Effective Date and, thereafter, at least quarterly during the
         course of the Collaboration. The Committee shall appoint a chairperson
         from among its members, which shall be a representative from MedImmune.
         The chairperson shall be responsible for calling meetings of the
         Committee and for leading the meetings. Each Party shall have at least
         one representative in attendance at Committee meetings. Each Party may
         have in attendance one (1) other non-voting employee, and additional
         representatives or consultants may from time to time, by mutual consent
         of the Parties, be invited to attend Committee meetings, subject to
         such representative's and consultant's written agreement to comply with
         the requirements of Section 5.1. A Committee member of the Party
         hosting a meeting of the Committee shall serve as secretary of that
         meeting. The secretary of the meeting shall prepare and distribute to
         all members of the Committee minutes of the meeting within thirty (30)
         days following the meeting to allow adequate review and comment. Such
         minutes shall provide a description in reasonable detail of the
         discussions held at the meeting and a list of any actions, decisions or
         determinations approved by the Committee. Minutes of each Committee
         meeting shall be approved or disapproved, and revised as necessary, at
         the next meeting. The location of meetings of the Committee shall
         alternate between MedImmune's principal place of business and CTI's
         principal place of business, or as otherwise agreed by the Parties. The
         Committee may also meet by means of a telephone conference call or
         videoconference. Either Party may convene a special meeting of the
         Committee for the purpose of resolving disputes. Each Party shall bear
         its own expenses related to the attendance at Committee meetings.

2.1.03   DECISIONS. The goal of all decision making shall be to achieve
         consensus. Each Party (acting through its designated members) shall
         have one vote on the Committee. Both Parties must vote in the
         affirmative to allow the Committee to take any action that requires the
         approval of the Committee. If the Committee is unable to reach
         agreement on any issue within the scope of its authority within thirty
         (30) days after the issue is first referred to it, such issue will be
         referred to the Chief Executive Officer of MedImmune and the Chief
         Executive Officer of CTI. If such officers are unable to reach
         agreement on any such issue then such issue shall be decided by the
         Chief Executive Officer of MedImmune. Notwithstanding any other
         provision of this Article 2.1, no decision shall be made which is
         inconsistent with the terms of this Agreement or imposes any obligation
         or burden upon either Party that is outside the scope of this
         Agreement, and the Committee will not have any power to amend this
         Agreement. It is understood that if CTI reasonably believes that a
         decision does not comply with the

                                       12
<PAGE>
         preceding sentence, CTI shall have the right to submit such issue to
         dispute resolution under Section 11.6.

2.2      MANAGEMENT OF COLLABORATION

2.2.01   PROJECT LEADERS. MedImmune and CTI each shall appoint a person (a
         "PROJECT LEADER") to coordinate its part of the Collaboration under the
         Research Plan. The Project Leaders shall be the primary contacts
         between the Parties with respect to the Collaboration and shall be
         responsible to report to the Committee regarding the progress of the
         Collaboration under the Research Plan. Each Party shall notify the
         other within thirty (30) days of the date of the Agreement of the
         appointment of its Project Leader and shall notify the other Party as
         soon as practicable upon changing this appointment.

2.2.02   PROJECT TEAMS. The Project Leaders shall appoint one or more
         appropriate teams, in each case consisting of representatives from
         MedImmune and CTI, to facilitate the conduct of elements of the
         Collaboration under the Research Plan in the areas set forth in the
         Research Plan.

3.       COLLABORATION

3.1      GENERAL

         CTI and MedImmune shall engage in the Collaboration upon the terms and
         conditions set forth in this Agreement. The activities to be undertaken
         by each Party in the course of Collaboration are set forth in the
         Research Plan, which may be amended from time to time by the Committee.

3.2      CONDUCT OF COLLABORATION

            (a) The Parties shall prepare and maintain a rolling Research Plan,
each of which plans covers three years of research, which shall describe the
proposed overall Collaboration for the Product, including without limitation
research, pre-clinical studies, toxicology and formulation activities and
clinical studies. Such Research Plans shall also include a summary of the
estimated costs expected to be incurred in connection with the Collaboration
during the covered period and a description of and budget for all activities
proposed for such period for the Product and for each indication being pursued.
In addition, such Research Plans shall identify the number of research personnel
to be used by each Party in performing activities in connection with the
Research Plan during the covered period.

            (b) The initial Research Plan for the period beginning on the
Effective Date and ending on December 31, 2006 agreed upon by the Parties is
attached hereto as Exhibit C. Starting after the first anniversary of the
Effective Date, the Research Plan shall be updated annually by the Parties in
reasonable consultation with each other by no later than October 1st of each
year preceding the year for which the update is being made. The Parties will
prepare the proposed annual updates and, in connection therewith, consult with
each other regarding the

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<PAGE>
identification, timing and execution of and budget for major tasks and
activities required to be performed under the Research Plan. All Research Plans
prepared by the Parties after the initial Research Plan shall be submitted to
the Committee for approval and upon approval in an amended or unamended form
shall become the Research Plan, provided, however, notwithstanding the foregoing
or the provisions of Section 2.1.03, any proposed new or amended Research Plan
that would, if approved by the Committee, impose any additional FTE or financial
obligations on CTI which differs materially from the obligations of CTI set
forth in the initial Research Plan shall require the prior written consent of
CTI.

            (c) The Research Plan shall allocate between the Parties
responsibility for each of the activities described therein. Each Party may
subcontract portions of the activities allocated to it under a Research Plan to
any of its Affiliates or to a Third Party (such Third Party being referred to
herein as a "PERMITTED SUBCONTRACTOR"), provided that (i) the subcontracting
Party shall be responsible for the performance of its Permitted Subcontractor
and (ii) in the case where CTI is subcontracting, all inventions discovered,
made or conceived by each Permitted Subcontractor in the course of the
performance of such activities shall be assigned to CTI and licensed to
MedImmune as provided under this Agreement.

         The Committee shall coordinate and supervise activities under the
Research Plan.

            (d) CTI and MedImmune each shall use Commercially Reasonable Efforts
to conduct the Collaboration in accordance with the Research Plan, in a good
scientific manner, and in compliance in all material respects with all
requirements of applicable laws, rules and regulations and all applicable good
laboratory practices to attempt to achieve their objectives efficiently and
expeditiously. CTI and MedImmune each shall proceed with the work set out in the
Research Plan by using Commercially Reasonable Efforts to accomplish the
Collaboration in accordance with the terms of this Agreement and the Research
Plan.

3.3      EXCHANGE OF INFORMATION

            (a) Upon execution of this Agreement, and on an ongoing basis during
the Term, CTI shall disclose to MedImmune all CTI Know-How, as appropriate,
which has not been previously disclosed. In addition, during meetings of the
Committee, CTI shall disclose to MedImmune the development, making, conception
or reduction to practice of CTI Know-How and CTI Patent Rights.

            (b) MedImmune agrees to provide Information in MedImmune's
possession that MedImmune reasonably believes is necessary for CTI to perform
CTI's obligations under the Research Plan.

3.4      RECORDS AND REPORTS

3.4.01   RECORDS. CTI and MedImmune shall each maintain records, in sufficient
         detail and in good scientific manner appropriate for patent and
         regulatory purposes, which shall fully and properly reflect all work
         done and results achieved in the performance of the Collaboration by
         such Party.

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<PAGE>
3.4.02   COPIES AND INSPECTION OF RECORDS. MedImmune shall have the right,
         during normal business hours and upon reasonable notice, to inspect and
         copy all such records of CTI referred to in Section 3.4.01. Only to the
         extent that CTI has patent and/or regulatory responsibilities, if any,
         relating to a Product, and to the extent required therefor, CTI shall
         have the right, during normal business hours and upon reasonable
         notice, to inspect and copy all such records of MedImmune referred to
         in Section 3.4.01. Neither Party shall have the right to review or copy
         records to the extent that such records contain information that does
         not relate to the Collaboration. Each Party shall maintain such records
         of the other Party and the Information disclosed therein in confidence
         in accordance with Section 5.1. The Parties shall have the right to
         arrange for its employees and/or consultants involved in the activities
         contemplated under this Section 3.4.02 to visit the offices and
         laboratories of the other Party and any of its Third Party contractors
         during normal business hours and upon reasonable notice, and to discuss
         the Collaboration work and its results in detail with the technical
         personnel and consultants of the Parties.

3.4.03   QUARTERLY REPORTS. At each Committee meeting during the Term, each
         Party shall provide to the other Party a report on the progress of the
         Collaboration and evaluate the work performed in relation to the
         Research Plan. Each Party shall provide such other information required
         by the Collaboration or reasonably requested by the other Party
         relating to the progress of the goals or performance of the
         Collaboration under the Research Plan.

3.5      KNOW-HOW AND INVENTIONS

            (a) Inventions and Know-How and the intellectual property rights
therein, invented and/or developed by employees of CTI and/or persons obligated
to assign Inventions and Know-How to CTI shall be owned by CTI.

            (b) Inventions and Know-How and the intellectual property rights
therein, invented and/or developed by employees of MedImmune and/or persons
obligated to assign Inventions and Know-How to MedImmune shall be owned by
MedImmune.

            (c) Joint Collaboration Inventions and the intellectual property
rights therein shall be owned by CTI and MedImmune and except as otherwise set
forth in this Agreement either Party shall have the right to exploit, license
and enforce such Joint Collaboration Inventions and intellectual property rights
therein without the consent of or accounting to other Party.

         The inventorship of any Invention, CTI Collaboration Invention,
MedImmune Collaboration Invention or Improvement made during the course of the
Collaboration shall be determined in accordance with U.S. patent laws.

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<PAGE>
3.6      EXCLUSIVE EFFORTS

            (a) For a period starting as of the Effective Date and ending [**]
thereafter, MedImmune shall work exclusively with CTI, and CTI shall work
exclusively with MedImmune, in efforts to Develop and Commercialize the Products
for use in the Field.

            (b) Following the expiration of the [**] period set forth in
subsection (a) above, and for the balance of the term of this Agreement, CTI
shall work exclusively with MedImmune in efforts to Develop Products for use in
the Field.

            (c) Nothing in this Section 3.6 shall prohibit a Party from having a
Third Party perform work for a Party as permitted by this Agreement and shall
not prohibit either Party from transferring rights to a Third Party in
accordance with this Agreement.

3.7      COLLABORATION FUNDING

            (a) Reimbursement of Past Research Expenses. Within ten (10) days of
the Effective Date, MedImmune shall pay to CTI the non-refundable amount of [**]
dollars ($[**]), reflecting reimbursement for research expenses incurred by CTI
prior to the Effective Date.

            (b) Payment for CTI Expenses During Collaboration. Within ten (10)
days of the Effective Date, MedImmune shall pay to CTI the non-refundable amount
of [**] dollars ($[**]), reflecting research expenses that CTI has
committed to incur during the Collaboration in addition to those expenses
reimbursed by MedImmune pursuant to Section 3.7(c).

            (c) FTE Funding. MedImmune shall pay to CTI during the Collaboration
the FTE Rate for work performed by CTI pursuant to the Research Plan. Such
payments shall be made on a Calendar-Quarter basis in arrears, payable thirty
(30) days after receipt by MedImmune of an invoice from CTI, and supporting
documentation therefor. Without the prior written approval of MedImmune,
MedImmune shall not be obligated to pay CTI for any work performed by or on
behalf of CTI other than as set forth in the Research Plan. Notwithstanding
anything to the contrary under the Research Plan, MedImmune agrees to fund no
less than [**] FTEs for CTI during the first three Calendar Years following the
Effective Date, and CTI shall have the right, at its sole discretion, to
allocate such FTEs among the first, second and third Calendar Years following
the Effective Date provided that no more than [**] FTEs are allocated in any
Calendar Year.

3.8      BOOKS AND RECORDS. CTI shall keep and shall cause each of its
         Affiliates and its and their contractors to keep full and accurate
         records and books of account containing all particulars that may be
         necessary for the purpose of calculating FTE Rate to be charged to
         MedImmune pursuant to this Agreement. Such books of account shall be
         kept by CTI at its places of business and, with all necessary
         supporting data shall, for the three (3) years following the end of the
         Calendar Year to which each shall pertain be open for inspection by an
         independent certified accountant selected by MedImmune and reasonably
         acceptable to CTI upon reasonable notice during normal business hours
         at

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<PAGE>
         MedImmune's expense for the sole purpose of verifying charges in
         compliance with this Agreement, but in no event more than once each
         Calendar Year. All information and data offered shall be used only for
         the purpose of verifying charges to MedImmune. In the event that such
         inspection shall indicate that in any Calendar Year the charges which
         were paid by MedImmune were overstated by at least five percent (5%),
         then CTI shall pay the cost of the inspection. All underpayments and
         overpayments are immediately due and payable.

4.       LICENSE; EXCHANGE OF INFORMATION; DEVELOPMENT AND COMMERCIALIZATION

4.1      LICENSE GRANT

            (a) By CTI. CTI hereby grants to MedImmune an exclusive (even as to
CTI), royalty-bearing license under CTI Patent Rights and CTI Know-How to make,
have made, use, offer to sell, sell and import Product(s) in the Territory for
use in the Field.

            (b) Sublicense Rights. MedImmune shall have the right to grant
sublicenses relating to the licenses granted in Section 4.1(a) to Third Parties
and/or Affiliates. Each such sublicense shall be subject and subordinate to, and
consistent with, the terms and conditions of this Agreement, including but not
limited to provisions related to confidentiality (Article 5), consequential
damages, Development and Commercialization, record-keeping and audit provisions.
MedImmune shall remain responsible for the performance of its sublicensees, and
shall ensure that any such sublicensees comply with the relevant provisions of
this Agreement. MedImmune shall provide CTI with a copy of any sublicense
granted pursuant to this Section 4.1(b) within thirty (30) days after the
execution thereof. Such copy may be redacted to exclude confidential scientific
information, financial information and other information required by a
sublicensee to be kept confidential. In the event of a material default by any
sublicensee under a sublicense agreement, MedImmune will inform CTI and take
such action which in MedImmune's reasonable business judgment will address such
default. MedImmune shall not have the right to grant sublicenses except as
expressly provided in this Section 4.1(b). In any sublicense, the sublicensee
shall agree not to grant any further sublicense in the United States with
respect to a Lead Product for the Indication as to which CTI has exercised the
co-promotion option under Section 4.4.02(b), unless consented to by CTI which
consent shall not be unreasonably withheld.

            (c) Rights Retained by CTI. Any rights of CTI not expressly granted
to MedImmune under the provisions of this Agreement shall be retained by CTI,
including without limitation, the rights to exploit the CTI Patent Rights and
CTI Know-How (i) in the Field in support of the Collaboration; (ii) outside the
Field for any purpose, without any duty to account to MedImmune or obtain
MedImmune's consent for such exploitation; and (iii) for purposes unrelated to
the Product, without any duty to account to MedImmune or obtain MedImmune's
consent for such exploitation.

            (d) Collaboration License. MedImmune hereby grants to CTI a
non-exclusive, royalty-free license, without the right to grant sublicenses
except as expressly contemplated by the Research Plan or otherwise approved in
writing by MedImmune, under

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MedImmune Collaboration Inventions, MedImmune Know-How, and MedImmune
Collaboration Patents to practice (i) MedImmune Know-How provided to CTI, (ii)
MedImmune Collaboration Inventions provided to CTI, and (iii) MedImmune
Collaboration Patents, in each case, in the course of the Collaboration and
solely for the purpose of conducting the activities assigned to CTI under the
Research Plan.

            (e) Technology Acquisition Agreements.

                  (i) With respect to Technology Acquisition Agreements entered
into by CTI after the Effective Date, CTI agrees that CTI will obtain the right
to grant sublicenses thereunder to MedImmune in accordance with Section 4.1.

                  (ii) CTI shall provide MedImmune a complete copy of all
Technology Acquisition Agreements.

4.2      COVENANT NOT TO SUE

            (a) In the event the making, having made, use, offer for sale, sale
or import by MedImmune of Product(s) would infringe during the term of this
Agreement a claim of issued letters patent which CTI Controls and which patent
is not covered by the grant in Section 4.1, CTI hereby covenants not to sue
MedImmune under such issued letters patent solely for MedImmune to Develop,
make, have made, use, sell, offer for sale or import Product(s) in the Territory
and in the Field.

            (b) In the event the performance of CTI's obligations under a
Research Plan under this Agreement by CTI would infringe during the term of this
Agreement a claim of issued letters patent which MedImmune Controls and which
patent is not covered by the grant in Section 4.1(d), MedImmune hereby covenants
not to sue CTI under such issued letters patent as to CTI's performance of its
obligations under a Research Plan under this Agreement.

4.3      SECTION 365(N) OF THE BANKRUPTCY CODE

         All rights and licenses granted under or pursuant to any section of
this Agreement are, and shall otherwise be deemed to be, for purposes of Section
365(n) of the U.S. Bankruptcy Code, licenses of rights to "intellectual
property" as defined under Section 101(35A) of the U.S. Bankruptcy Code. The
Parties shall retain and may fully exercise all of their respective rights and
elections under the U.S. Bankruptcy Code. The Parties agree that MedImmune, as a
licensee of such rights under this Agreement, shall retain and may fully
exercise all of its rights and elections under the U.S. Bankruptcy Code, and
that upon commencement of a bankruptcy proceeding by or against CTI under the
U.S. Bankruptcy Code, MedImmune shall be entitled to a complete duplicate of or
complete access to (as MedImmune deems appropriate), any such intellectual
property and all embodiments of such intellectual property, provided MedImmune
continues to fulfill its payment and/or royalty obligations as specified herein
in full. Such intellectual property and all embodiments thereof shall be
promptly delivered to MedImmune (i) upon any such commencement of a bankruptcy
proceeding upon written request therefor by MedImmune, unless CTI elects to
continue to perform all of its obligations under this Agreement

                                       18
<PAGE>
or (ii) if not delivered under (i) above, upon the rejection of this Agreement
by or on behalf of CTI upon written request therefor by MedImmune. The foregoing
is without prejudice to any rights MedImmune may have arising under the U.S.
Bankruptcy Code or other applicable law.

4.4      DEVELOPMENT

4.4.01   DEVELOPMENT OBLIGATIONS.

            (a) MedImmune agrees to use Commercially Reasonable Efforts to, at
its expense, Develop Product for two Major Indications in the United States, and
thereafter as set forth in section 4.4.01(e) in Europe and Japan. Either Party
may disclose to the Committee all Indications for which it believes
scientifically and commercially valid rationales exist for Developing and
Commercializing a Product. Such disclosure shall be noted in the Committee
meeting minutes. For purposes of this Section 4.4.01(a), "Commercially
Reasonable Efforts" shall mean at minimum the following: (i) MedImmune shall
Develop at least one Product through the completion of a [**] in accordance with
the protocol therefor, and (ii) MedImmune shall Develop a Product for at least
two Major Indications through the completion of [**] for two such Major
Indications in accordance with the protocols therefor. In the event that after
completion of the [**] for two Major Indications in accordance with the
protocols therefor, the Committee reasonably determines that further Development
and Commercialization of the Product for one of such Major Indications is not
warranted based on the results of such [**] and/or market conditions, then
MedImmune shall only be obligated to use Commercially Reasonable Efforts to
Develop Product for one Major Indication.

            (b) If, in any Calendar Year, MedImmune or its Affiliate and/or a
sublicensee and/or a collaborator of MedImmune (including work of CTI under a
Research Plan), alone or together, has performed any one of the following with
respect to Product for two Major Indications as to which MedImmune has
Development obligations under Section 4.4.01(a), then MedImmune shall be deemed
to have complied with MedImmune's obligations under Section 4.4.01(a):

                  (i) has expended (A) [**] dollars ($[**]) for Development of a
Product until the completion of [**] in the applicable Calendar Year and,
thereafter (B) [**] dollars ($[**]) for the Development of a Product for each of
the two [**] for a Major Indication in the applicable Calendar Year that
MedImmune has an obligation to perform under Section 4.4.01(a);

                  (ii) [**];

                  (iii) [**];

                  (iv) [**];

                  (v) [**];

                                       19
<PAGE>
                  (vi) [**];

                  (vii) [**];

                  (viii) [**];

                  (ix) [**];

                  (x) [**].

         If, in a Calendar Year, MedImmune has not met one of Section
4.4.01(b)(i) through (x), the failure to meet such obligation shall not alone
establish that MedImmune has not met MedImmune's obligations under Section
4.4.01(a).

            (c) Subject to Section 4.4.01(d), in the event that MedImmune fails
to comply with the obligations of Section 4.4.01(a) in any Calendar Year, and
MedImmune has not performed at least one of Sections 4.4.01(b)(i) through
4.4.01(b)(x) during such Calendar Year, CTI shall have the right, as its sole
and exclusive remedy for MedImmune's failure to comply therewith, to terminate
this Agreement by written notice to MedImmune within ninety (90) days after the
end of the applicable Calendar Year, unless MedImmune cures such failure prior
to the expiration of thirty (30) days after such notice.

            (d) If MedImmune receives a notice under Section 4.4.01(c),
MedImmune shall have the right to contest such notice by requesting arbitration
under Section 11.6, and if MedImmune requests such arbitration, this Agreement
shall be terminated pursuant to Section 4.4.01(c), only if in such arbitration
there is a final determination that MedImmune has not met MedImmune's obligation
under Section 4.4.01(a) in the applicable Calendar Year and, in addition, in
such Calendar Year none of the events of Section 4.4.01(b)(i) through
4.4.01(b)(xi) has occurred.

            (e) It is expressly understood that MedImmune will not be required
to perform trials for or seek Regulatory Approval for a Product for an
Indication from [**] until MedImmune has obtained Regulatory Approval for such
Product for such Indication in the [**]. It is further expressly understood that
MedImmune will not be required to perform trials for or seek Regulatory Approval
for a Product for an Indication in [**] until MedImmune has obtained Regulatory
Approval for such Product for such Indication in the [**] and from [**]. In the
event that MedImmune fails to exert Commercially Reasonable Efforts to Develop a
Product for an Indication in [**] or [**], then CTI shall have the right to
terminate MedImmune's licenses with respect to such Product in [**] or [**] for
such Indication, as the case may be by written notice to MedImmune and such
licenses shall terminate ninety (90) days thereafter unless such failure is
cured.

4.4.02   COMMERCIALIZATION OBLIGATIONS.

            (a) ROW. MedImmune shall have full responsibility for and control of
Commercialization of Products for all Indications in ROW.

                                       20
<PAGE>
            (b) United States.

                  (1) In the United States, MedImmune shall have full
responsibility for and control of Commercialization of Product(s), for all
Indications subject to CTI's Co-Promotion rights set forth below.

                  (2) With regard to Detailing of the Lead Product in the United
States, CTI shall have the option to enter into a Co-Promotion Agreement with
MedImmune as follows:

                        (i) CTI may exercise the option to enter into a
Co-Promotion Agreement with MedImmune for the Lead Product at any time up to the
date of payment of the milestone applicable to the commencement of [**] for the
first Indication of the Lead Product (the "Primary Option"). In addition, in the
event that (A) CTI exercises the Primary Option with respect to the first
Indication of the Lead Product, and (B) the [**] for [**], CTI [**] with
MedImmune [**]

                        (ii) If CTI elects to exercise either of the options set
forth in subsection (i) above, the Parties shall negotiate in good faith
regarding the terms of a Co-Promotion Agreement to be entered into at least
twelve (12) months prior to the expected Regulatory Approval of the applicable
Indication for the Lead Product in the United States, which Co-Promotion
Agreement shall in both cases include the provisions set forth on Exhibit A to
this Agreement,

                        (iii) In the event that CTI exercises the option granted
to CTI under this Section 4.4.02 with respect to co-promotion, as long as such
co-promotion rights remain in effect, MedImmune agrees that MedImmune will not
grant additional co-promotion rights with respect to Commercialization of such
Lead Product in the United States to such an extent that MedImmune is no longer
promoting such Lead Product in the United States, without the prior approval of
CTI, which approval shall not be unreasonably withheld. The foregoing sentence
shall not limit the right of MedImmune to assign this Agreement as permitted
under Section 11.2(a) or to grant a sublicense as permitted under Section 4.1.

                        (iv) In the event that there is a Change in Control of
CTI before or after CTI exercises the option granted to CTI with respect to
co-promotion, MedImmune shall have the right to terminate CTI's co-promotion
rights unless, prior to such Change of Control, MedImmune approves such Change
of Control, which approval shall not be unreasonably withheld.

                        (v) For the avoidance of doubt, CTI's right to
co-promote is for only one Product for only one Indication.

                        (vi) The provisions of 4.4.02(b)(2)(iii), (iv), (v) and
(vii) and (viii), if applicable, shall be included in the Co-Promotion
Agreement.

                                       21
<PAGE>
                        (vii) Upon the exercise of the Primary Option [**], as
the case may be, with respect to Lead Product for an Indication, CTI shall
reimburse MedImmune for [**] percent ([**]%) of all Development Cost paid by
MedImmune after the exercise of the applicable option for Development of such
Lead Product for such Indication within thirty (30) days of an invoice therefor,
which invoice shall be sent no more often than on a Calendar Quarter basis.

                        (viii) With respect to the [**], CTI shall also
reimburse MedImmune the Development Cost [**], which Development Cost are those
incurred by MedImmune with respect to Development of such Lead Product for the
applicable Indication that was incurred by MedImmune after initiation of a [**]
and prior to exercise of such [**] with respect to Development of such Lead
Product for such Indication within thirty (30) days of invoice therefor.

4.4.03   PROGRESS REPORTS. Within fifteen (15) days after the end of each
         Calendar Quarter, each Party shall provide to the other Party a written
         report summarizing the activities undertaken by such Party during the
         preceding Calendar Quarter in connection with (a) the Collaboration,
         and (b) the Development of each Product. In addition, MedImmune shall
         keep the Development Committee informed of MedImmune's plans for
         Commercialization of Product.

4.4.04   INSPECTIONS. Each Party shall have the right to arrange for its
         employees and outside consultants involved in Development of Products
         to visit the other Party at its offices and laboratories, to discuss
         the Collaboration and its results in detail and to discuss plans for
         Commercialization with the technical and business personnel of the
         other Party, provided that such visits shall be during normal business
         hours and shall not unreasonably interrupt the operations of the other
         Party.

5.       CONFIDENTIALITY AND PUBLICATION

5.1      NONDISCLOSURE OBLIGATION

            (a) All Information disclosed by one Party to the other Party
hereunder shall be maintained in confidence by the receiving Party and shall not
be disclosed to any Third Party or used for any purpose except as set forth
herein without the prior written consent of the disclosing Party, for a period
of ten (10) years from disclosure of such Information, except to the extent that
such Information:

                  (i) is known by receiving Party at the time of its receipt,
and not through a prior disclosure by the disclosing Party, as documented by the
receiving Party's business records;

                  (ii) is or becomes part of the public domain through no fault
of the receiving party;

                                       22
<PAGE>
                  (iii) is subsequently disclosed to the receiving Party by a
Third Party who may lawfully do so and is not under an obligation of
confidentiality to the disclosing Party;

                  (iv) is developed by the receiving Party independently of
Information received from the disclosing Party, as documented by the receiving
Party's business records;

                  (v) is disclosed to governmental or other regulatory agencies
in order to obtain patents or to gain or maintain approval to conduct clinical
trials or to market Product, but such disclosure may be only to the extent
reasonably necessary to obtain patents or authorizations; and/or

                  (vi) is deemed necessary by either Party to be disclosed to
Related Parties, agents, consultants, and/or other Third Parties for the
Development and/or Commercialization of Product(s) and/or in connection with a
licensing transaction and/or loan, financing or investment and/or acquisition,
merger, consolidation or similar transaction (or for such entities to determine
their interest in performing such activities) in each case on the condition that
any Third Parties to whom such disclosures are made agree to be bound by the
confidentiality and non-use obligations contained this Agreement; provided that
the term of confidentiality for such Third Parties shall be no less than ten
(10) years.

            (b) Any combination of features or disclosures shall not be deemed
to fall within the foregoing exclusions merely because individual features are
published or available to the general public or in the rightful possession of
the receiving Party unless the combination itself and principle of operation are
published or available to the general public or in the rightful possession of
the receiving party.

            (c) If a Party is required by judicial or administrative process to
disclose Information that is subject to the non-disclosure provisions of this
Section 5.1, such Party shall promptly inform the other Party of the disclosure
that is being sought in order to provide the other Party an opportunity to
challenge or limit the disclosure obligations. Information that is disclosed by
judicial or administrative process shall remain otherwise subject to the
confidentiality and non-use provisions of this Section 5.1, and the Party
disclosing Information pursuant to law or court order shall take all steps
reasonably necessary, including without limitation obtaining an order of
confidentiality, to ensure the continued confidential treatment of such
Information.

            (d) Except for CTI Know-How that is in the public domain or becomes
part of the public domain without breach of the Agreement by CTI, all CTI
Know-How licensed to MedImmune under this Agreement shall be maintained in
confidence by CTI and shall not be disclosed to a Third Party or used by CTI,
with respect to Product in the Field, for any purpose other than (i) for
Development of Product under a Research Plan, (ii) in connection with the
prosecution, maintenance, enforcement or defense of any CTI Patent Rights, (iii)
the Commercialization of the Product pursuant to the Co-Promotion Agreement,
(iv) enforcement of the terms of, this Agreement, or (v) as required by law or
any governmental authority. Notwithstanding the foregoing, CTI may disclose CTI
Know-How to a Third Party under customary terms of confidentiality and non-use
for any purpose other than Development or

                                       23
<PAGE>
Commercialization of Product in the Field including, without limitation, for
purposes of any equity or debt financing of CTI.

5.2      PUBLICATION

         MedImmune and CTI each acknowledge the other Party's interest in
publishing the results of its research in order to obtain recognition within the
scientific community and to advance the state of scientific knowledge. Each
Party also recognizes the mutual interest in obtaining valid patent protection
and in protecting business interests and trade secret information. Consequently,
except for disclosures permitted pursuant to Section 5.1, either Party and its
employees wishing to make a publication shall deliver to the other Party a copy
of the proposed written publication or an outline of an oral disclosure at least
thirty (30) days prior to submission for publication or presentation. The
reviewing Party shall have the right (a) to propose modifications to the
publication or presentation for patent reasons, trade secret reasons or business
reasons or (b) to request a reasonable delay in publication or presentation in
order to protect patentable information. If the reviewing Party requests a
delay, the publishing Party shall delay submission or presentation for a period
of thirty (30) days to enable patent applications protecting each Party's rights
in such information to be filed in accordance with Article 9 below. Upon
expiration of such thirty (30) days, the publishing Party shall be free to
proceed with the publication or presentation. Upon request of the Party seeking
publication, the reviewing Party shall consider expediting the time frames set
forth in this Section. If the reviewing Party requests modifications to the
publication or presentation, the publishing Party shall edit such publication to
prevent disclosure of trade secret or proprietary business information prior to
submission of the publication or presentation.

5.3      PUBLICITY/USE OF NAMES

         Neither Party shall use the name, trademark, trade name or logo of the
other Party or its employees in any publicity or news release relating to this
Agreement or its subject matter, without the prior express written permission of
the other Party. Neither Party shall disclose the existence or terms of this
Agreement except as provided in Section 5.3(a) or (b).

            (a) Either Party shall be permitted to disclose the existence and
terms of this Agreement to the extent required, in the reasonable opinion of
such Party's legal counsel, to comply with applicable laws, rules or
regulations, including without limitation the rules and regulations promulgated
by the United States Securities and Exchange Commission or any other
governmental agency. Notwithstanding the foregoing, before disclosing this
Agreement or any of the terms hereof pursuant to this Section 5.3(a), the
Parties will consult with one another on the terms of this Agreement to be
redacted in making any such disclosure. If a Party discloses this Agreement or
any of the terms hereof in accordance with this Section 5.3(a), such Party
agrees, at its own expense, to seek confidential treatment of the portions of
this Agreement or such terms, as may be reasonably requested by the other Party.

            (b) Either Party may also disclose the existence and terms of this
Agreement to potential acquirors, in connection with a potential consolidation,
merger or similar transaction and to existing and potential investors or lenders
of such Party, as a part of their due diligence

                                       24
<PAGE>
investigations, and/or to potential licensees in each case under a written
Agreement to keep the terms of this Agreement confidential and to use such
confidential information solely for the purpose permitted pursuant to this
Section 5.3(b).

6.       PAYMENTS; ROYALTIES AND REPORTS

6.1      LICENSING FEE

         Subject to the terms and conditions of this Agreement, for the licenses
granted herein by CTI to MedImmune under the patents and patent applications
listed on Exhibit B, MedImmune shall pay to CTI the non-refundable amount of
[**] dollars ($[**]) on the Effective Date; provided, however, that MedImmune
shall have the right to withhold payment to CTI of up to [**] dollars ($[**]) of
such $[**] until such time as North Shore Long Island Jewish Research Institute
signs and delivers to MedImmune a letter agreement substantially in the form set
forth in Exhibit F hereto.

6.2      CTI KNOW-HOW ACCESS FEE

         Subject to the terms and conditions of this Agreement, for the licenses
granted herein under the CTI Know-How, MedImmune shall pay to CTI the
non-refundable amount of [**] dollars ($[**]) on the Effective Date.

6.3      ROYALTIES

6.3.01   ROYALTIES AND MILESTONES PAYABLE BY MEDIMMUNE BASED ON NET SALES.

            (a) Royalty for Products. MedImmune shall pay to CTI royalties on
Net Sales of each Product in the amounts set forth below:

         Annual worldwide Net Sales up to $[**]                            [**]%

         Increment of annual worldwide Net Sales between $[**] and $[**]   [**]%

         Increment of annual worldwide Net Sales over $[**]                [**]%

         For example, if Net Sales in a Calendar Year equaled $[**], royalties
would be calculated as follows: (x) [**]% of $[**] ($[**]), (y) [**]% of $[**]
($[**]), and (z) [**]% of $[**] ($[**]), for a total of $[**].

            (b) Royalty for Non-Patented Products. In the event that a Product
is sold in a country and the use or sale of such Product in such country and the
manufacture of such Product in the country where manufactured is not covered by
a Valid Claim of any CTI Patent Right, MedImmune Royalty Patent or Joint
Collaboration Patent, then the royalty rate set forth in Section 6.3.01(a) for
such Product in such country shall be [**] percent ([**]%) and such [**] royalty
rate shall be paid for the time period specified in Section 6.3.01(d).

                                       25
<PAGE>
            (c) Royalty Reduction for Competition. If (i) any Product is sold by
a Third Party(ies) in a country in a Calendar Quarter, (ii) the making, using
and selling of such Product in such country is not covered by a Valid Claim of
any CTI Patent Right, MedImmune Royalty Patent or Joint Collaboration Patent in
such country and (iii) the unit sales of such Product in such country in such
Calendar Quarter are at least [**] percent ([**]%) of the unit sales of Product
by MedImmune, its Affiliates and sublicensees, in the aggregate in such country
in such Calendar Quarter, then [**] shall be payable with respect to sales of
Product by MedImmune, its Affiliates and sublicensees during such Calendar
Quarter in such country.

            (d) Payment of Royalties. Royalties on each Product at the rates set
forth above shall be effective as of the date of First Commercial Sale of
Product in a country and shall continue until the later of: (i) the expiration
of the last Valid Claim of a CTI Patent Right, MedImmune Royalty Patent or a
Joint Collaboration Patent covering such Product in such country or (ii) the
tenth (10th) anniversary of the First Commercial Sale of the first Product in
such country, after which time there is no further royalty obligations with
respect to Product in such country, subject to the following conditions:

                  (i) that only one royalty shall be due with respect to the
same unit of Product;

                  (ii) that no royalties shall be due upon the sale or other
transfer among MedImmune or its Related Parties, but in such cases the royalty
shall be due and calculated upon MedImmune's or its Related Party's Net Sales to
the first independent Third Party; and

                  (iii) no royalties shall accrue on the disposition of Product
in reasonable quantities by MedImmune or its Related Parties as samples
(promotion or otherwise) or as donations (for example, to non-profit
institutions or government agencies for a non-commercial purpose).

         For the avoidance of doubt no royalty is due on any Product in any
country under Section 6.3.01 (b) beyond the tenth (10th) anniversary of the
First Commercial Sale of the first Product that is sold in such country.

            (e) Milestones for Net Sales. MedImmune shall pay the following
amounts to CTI upon achieving the indicated Net Sales for Products in a Calendar
Year:

            1st Calendar Year that Net Sales are greater than $[**]        $[**]

            1st Calendar Year that Net Sales are greater than $[**]        $[**]

            1st Calendar Year that Net Sales are greater than $[**]        $[**]

         More than one of the foregoing milestones would be payable if multiple
triggers are achieved in a given Calendar Year. For example, if in 2009, Net
Sales are $[**] and in 2010 Net Sales are $[**], then $[**] in milestones shall
be payable based on 2010 Net Sales. Each Net Sales milestone shall be payable
only once. [**] percent ([**]%) of each Net Sales milestone

                                       26
<PAGE>
shall be creditable against royalties due for any Calendar Year. For the
purposes of clarity, Net Sales as used in this Section 6.3.01(e) shall include
all sales of all Products in the Territory for all Indications.

6.3.02   THIRD PARTY LICENSES. In the event that MedImmune or its Related
         Parties are obligated to pay royalties to a Third Party in order to
         make, have made, use, offer to sell, sell or import Product(s) in a
         country (hereinafter "Third Party Patent Licenses"), [**] percent
         ([**]%) of the consideration actually paid under such Third Party
         Patent Licenses by MedImmune or its Related Parties for sale of such
         Product in such country for a Calendar Quarter shall be creditable
         against the royalty payments due CTI by MedImmune with respect to the
         sale of such Product in such country.

6.3.03   LIMIT ON ROYALTY [**]. In the event that amounts are creditable against
         royalties to be paid under Section 6.3.01(a) or Section 6.3.01(b) in a
         Calendar Quarter, notwithstanding anything to the contrary in this
         Agreement, in no event shall the royalty payment in any Calendar
         Quarter under Section 6.3.01(a) be [**] to less than [**] percent
         ([**]%) of Net Sales or under Section 6.3.01(b) be [**] to less than
         [**] percent ([**]%) of Net Sales, with any credits that are not used
         due to the foregoing limitations being carried forward to future
         Calendar Quarters; provided, however, that in the event a Technology
         Acquisition Agreement is terminated and MedImmune secures a license to
         the subject matter thereof and MedImmune incurs payments with respect
         to said license and/or MedImmune, makes a payment under a Technology
         Acquisition Agreement on behalf of CTI, then any of such payments shall
         be fully creditable against royalty and/or milestone payments owed by
         MedImmune to CTI under this Agreement until MedImmune is reimbursed
         therefor, and if applied to royalties, such credit shall be applied
         after any other credits against royalties in a Calendar Quarter and
         without the limitation [**] of this Section 6.3.03.

6.3.04   THIRD PARTY ROYALTIES OF CTI. Except as otherwise expressly agreed by
         the Parties in a Research Plan, CTI shall be responsible for making all
         payments and royalties that are owed under any Technology Acquisition
         Agreement.

6.4      REPORTS; PAYMENT OF ROYALTY

         During the term of the Agreement following the First Commercial Sale of
a Product, and on a country-by-country basis, MedImmune shall furnish to CTI a
quarterly written report for the Calendar Quarter showing the Net Sales of all
Products subject to royalty payments sold by MedImmune and its Related Parties
in the Territory during the reporting period and the royalties payable under
this Agreement. Reports shall be due on the forty-fifth (45th) day following the
close of each Calendar Quarter. Royalties shown to have accrued by each royalty
report shall be due and payable on the date such royally report is due.
MedImmune shall keep complete and accurate records in sufficient detail to
enable the royalties payable hereunder to be determined.

6.5      AUDITS

                                       27
<PAGE>
            (a) Upon the written request of CTI and not more than once in each
Calendar Year, MedImmune shall permit an independent certified public accounting
firm of nationally recognized standing selected by CTI and reasonably acceptable
to MedImmune, at CTI's expense, to have access during normal business hours to
such of the records of MedImmune as may be reasonably necessary to verify the
accuracy of the royalty reports hereunder for any Calendar Year ending not more
than thirty-six (36) months prior to the date of such request. The accounting
firm shall disclose to CTI and MedImmune only whether the royalty reports are
correct or incorrect and the specific details concerning any discrepancies. No
other information shall be provided to CTI.

            (b) If such accounting firm identifies a discrepancy made during
such period, the appropriate Party shall pay the other Party the amount of the
discrepancy within thirty (30) days of the date CTI delivers to MedImmune such
accounting firm's written report so concluding, or as otherwise agreed upon by
the Parties. The fees charged by such accounting firm shall be paid by CTI
unless the underpayment exceeded five percent (5%) of the royalty owed by
MedImmune to CTI for such Calendar Year, in which case, MedImmune shall pay to
CTI the fees charged by such accounting firm.

            (c) MedImmune shall include in each sublicense granted by it
pursuant to this Agreement a provision requiring the sublicensee to make reports
to MedImmune, to keep and maintain records of sales made pursuant to such
sublicense and to grant access to such records by CTI's independent accountant
to the same extent required of MedImmune under this Agreement.

            (d) Upon the expiration of thirty-six (36) months following the end
of any year, the calculation of royalties payable with respect to such year
shall be binding and conclusive upon CTI, and MedImmune and its Related Parties
shall be released from any liability or accountability with respect to royalties
for such year.

            (e) CTI shall treat all financial information subject to review
under this Section 6.4 under any sublicense agreement in accordance with the
confidentiality and non-use provisions of this Agreement, and shall cause its
accounting firm to enter into an acceptable confidentiality agreement with
MedImmune and/or its Related Parties obligating it to retain all such
information in confidence pursuant to such confidentiality agreement.

6.6      MILESTONE PAYMENTS

6.6.01   MILESTONES PAYMENTS FOR THE [**] FOR PRODUCTS. Subject to the terms and
         conditions in this Agreement, MedImmune shall pay to CTI the following
         non-refundable milestone payments with regard to the Development of
         Products for the [**]:

         (a)      [**];                                          $[**]

         (b)      [**]                                           $[**]

         (c)      [**]                                           $[**]

                                       28
<PAGE>
         (d)      [**];                                          $[**]

         (e)      [**];                                          $[**]

         (f)      [**];                                          $[**]

         (g)      [**];                                          $[**]

         (h)      [**].                                          $[**]

6.6.02   MILESTONES PAYMENTS FOR UP TO [**] FOR PRODUCTS. Subject to the terms
         and conditions in this Agreement, MedImmune shall pay to CTI the
         following non-refundable milestone payments with regard to the research
         and Development of a Product for up to [**]for such Product:

                                                [**]          [**]         [**]
         (a)      [**]:                         $[**]         $[**]        $[**]

         (b)      [**]:                         $[**]         $[**]        $[**]

         (c)      [**]:                         $[**]         $[**]        $[**]

         (d)      [**]:                         $[**]         $[**]        $[**]

         (e)      [**]:                         $[**]         $[**]        $[**]

6.6.03   CREDITING OF MILESTONES. Each of the milestones set forth in Sections
         6.6.01 and 6.6.02, shall be payable only once, and [**] percent ([**]%)
         of each such milestone shall be creditable against future royalty
         payments for the Product to which such milestone payment pertains.

6.6.04   PAYMENT OF MILESTONES. MedImmune shall notify CTI in writing within
         forty-five (45) days upon the achievement of each milestone, and shall
         make the appropriate milestone payment within forty-five (45) days of
         the achievement of such milestone. The milestone payment shall be
         payable only upon the initial achievement of such milestone, and no
         amounts shall be due hereunder for subsequent or repeated achievement
         of such milestone.

6.6.05   [**] Beginning on August 1, 2006 and each August 1st thereafter, in the
         event that MedImmune does not make the following payments to CTI, upon
         written notice to MedImmune, CTI shall have the right to terminate the
         licenses granted to MedImmune under Section 4.1 [**], which termination
         shall take effect thirty (30) days after receipt of such written
         notice, unless MedImmune makes the applicable payment prior to
         expiration of such thirty (30) day period.

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<PAGE>
         August 1, 2006                          $[**]

         August 1, 2007                          $[**]

         August 1, 2008                          $[**]

         August 1, 2009 and each                 $[**]

         August 1 thereafter

6.7      PAYMENT EXCHANGE RATE

         All payments to be made by MedImmune to CTI under this Agreement shall
be made in United States dollars and may be paid by check made to the order of
CTI or bank wire transfer in immediately available funds to such bank account in
the United States designated in writing by CTI from time to time. In the case of
sales outside the United States, the rate of exchange to be used in computing
the amount of currency equivalent in United States dollars due CTI shall be made
at the rate of exchange published in The Wall Street Journal for the business
day closest to the end of the applicable Calendar Quarter.

6.8      INCOME TAX WITHHOLDING

         If laws, rules or regulations require withholding of income taxes or
other taxes imposed upon payments set forth in this Article 6, MedImmune shall
make such withholding payments as required and subtract such withholding
payments from the payments set forth in this Article 6. MedImmune shall submit
original receipts or other appropriate proof of payment of the withholding taxes
to CTI within a reasonable period of time and which are sufficient to allow CTI
to document such tax withholdings adequately for purposes of claiming foreign
tax credits and similar benefits.

7.       REPRESENTATIONS AND WARRANTIES

7.1      REPRESENTATIONS AND WARRANTIES OF CTI

         CTI represents and warrants to MedImmune that as of the Effective Date:

            (a) to the best of CTI's knowledge, the CTI Patent Rights exist and
are not invalid or unenforceable, in whole or in part;

            (b) it has the full right, power and authority to enter into this
Agreement, to perform the Collaboration and to grant the licenses granted under
Article 4 hereof;

            (c) it has not previously assigned, transferred, conveyed or
otherwise encumbered its right, title and interest in CTI Patent Rights or CTI
Know-How inside or outside the Field;

            (d) to the best of CTI's knowledge, the CTI Patent Rights and CTI
Know-How are Controlled by CTI, and free and clear of any liens, charges and
encumbrances;

                                       30
<PAGE>
            (e) to the best of CTI's knowledge, the exercise of the license
granted to MedImmune under the CTI Patent Rights and CTI Know-How, including
without limitation the Development and Commercialization of Products, do not
interfere with or infringe any intellectual property rights owned or possessed
by any Third Party;

            (f) there are no claims, judgments or settlements against or owed by
CTI or pending or threatened claims or litigation relating to the CTI Patent
Rights and CTI Know-How;

            (g) CTI has disclosed to MedImmune all reasonably relevant
information regarding the CTI Patent Rights and CTI Know-How licensed under this
Agreement, including without limitation all patent opinions obtained by CTI
related thereto;

            (h) all necessary consents, approvals and authorizations of all
government authorities and other persons required to be obtained by CTI in
connection with the execution, delivery and performance of this Agreement have
been or shall be obtained;

            (i) CTI owns all right, title and interest in and to the Patents of
Exhibit B;

            (j) The Patents of Exhibit E are licensed to CTI under the
Technology Acquisition Agreements of Exhibit D and the Patents of Exhibit E have
been validly sublicensed to MedImmune in the Territory under this Agreement;

            (k) prior to the Effective Date, it has provided to MedImmune access
to all material information and data in CTI's possession and control regarding
the safety and efficacy of Product and has disclosed to MedImmune all such
information that, to CTI's knowledge, is material to the activities contemplated
hereunder and that, to CTI's knowledge, such information and data is correct in
all material respects;

            (l) as of the Effective Date, it has not received any written claim
from a Third Party (nor has a Third Party to the knowledge of CTI expressly
threatened such a claim) asserting the invalidity, unenforceability or misuse of
any Patent Rights; and

            (m) as of the Effective Date, (i) all the agreements as to which CTI
is a party with respect to CTI Know-How and CTI Patents Rights are listed in
Exhibit D, (ii) such agreements are in full force and effect and that valid and
effective sublicenses thereunder have been granted to MedImmune pursuant to this
Agreement, (iii) to the knowledge of CTI, no Party to any such agreement is in
breach thereof, and (iv) to the knowledge of CTI, no Party to any such agreement
has notified any other party thereto of any breach thereof.

7.2      REPRESENTATIONS AND WARRANTIES OF MEDIMMUNE

         MedImmune represents and warrants to CTI that as of the Effective Date:

            (a) it has the full right, power and authority to enter into this
Agreement and to fulfill its obligations hereunder; and

                                       31
<PAGE>
            (b) all necessary consents, approvals and authorizations of all
government authorities and other persons required to be obtained by MedImmune in
connection with the execution, delivery and performance of this Agreement have
been or shall be obtained.

7.3      NO WARRANTIES

         EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, THE PARTIES MAKE NO
REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED,
AND PARTICULARLY THAT THE PRODUCT(S) WILL BE SUCCESSFULLY DEVELOPED HEREUNDER,
AND IF PRODUCT(S) ARE DEVELOPED, WITH RESPECT TO SUCH PRODUCT(S), THE PARTIES
DISCLAIM ALL IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE.

7.4      MEDIMMUNE INDEMNIFICATION

         MedImmune agrees to defend CTI and its Affiliates at its cost and
expense, and will indemnify and hold CTI and its Affiliates and their respective
directors, officers, employees and agents (the "CTI INDEMNIFIED PARTIES")
harmless from and against any losses, costs, damages, fees or expenses arising
out of any Third Party claim relating to personal injury or death from the
Development, manufacture, use, sale or other disposition of the Product(s) by
MedImmune and/or its Affiliates, sublicensees or collaborators (other than CTI).
In the event of any such claim against the CTI Indemnified Parties by any Third
Party, CTI shall promptly notify MedImmune in writing of the claim and MedImmune
shall manage and control, at its sole expense, the defense of the claim and its
settlement. The CTI Indemnified Parties shall cooperate with MedImmune and may,
at their option and expense, be represented in any such action or proceeding,
however, MedImmune shall have sole control of such action or proceeding.
MedImmune shall not be liable for any litigation costs or expenses incurred by
the CTI Indemnified Parties without MedImmune's prior written authorization. In
addition, MedImmune shall not be responsible for the indemnification of any CTI
Indemnified Party arising from any negligent or intentional acts by such CTI
Indemnified Party, or as the result of any settlement or compromise by the CTI
Indemnified Parties without MedImmune's prior written consent.

7.5      NO CONSEQUENTIAL DAMAGES

         NEITHER PARTY HERETO WILL BE LIABLE FOR SPECIAL, INCIDENTAL,
CONSEQUENTIAL, EXEMPLARY, PUNITIVE, MULTIPLE OR OTHER INDIRECT DAMAGES ARISING
OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, OR FOR LOSS OF
PROFITS, LOSS OF DATA OR LOSS OF USE DAMAGES ARISING FROM OR RELATING TO ANY
BREACH OF THIS AGREEMENT WHETHER BASED UPON WARRANTY, CONTRACT, TORT, STRICT
LIABILITY OR OTHERWISE, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES. NOTHING IN
THIS SECTION 7.5 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR
OBLIGATIONS OF EITHER PARTY UNDER THIS AGREEMENT.

                                       32
<PAGE>
7.6      ADDITIONAL COVENANTS. CTI hereby covenants and agrees that: (i) it will
         not consent to any amendment or modification or termination of any
         agreement of Exhibit D that would adversely affect the licenses granted
         to MedImmune hereunder without the written permission of MedImmune;
         (ii) it will perform its contractual obligations as necessary to keep
         any such agreement in full force and effect during the respective terms
         thereof; (iii) it will not assign any such agreement without the
         written consent of MedImmune (which consent will not be unreasonably
         withheld), except that such consent will not be required for assignment
         in connection with the transfer or sale of all or substantially all of
         its business, or in the event of its merger, consolidation, change in
         control or similar transaction, (x) provided that such assignment is
         subject to this Agreement and (y) such assignment does not adversely
         affect any such agreement or MedImmune rights thereunder; and (iv) it
         will promptly advise MedImmune of any notice of a breach or intent to
         terminate any such agreement that is received, and to the extent
         permitted under the such agreement, MedImmune will have the right but
         not the obligation to cure any such breach.

8.       REGULATORY AFFAIRS

8.1      NDA

8.1.01   MedImmune will be responsible for regulatory filings and regulatory
         compliance activities, and shall own the IND, BLA, and/or NDA for
         Products in the Territory.

8.2      REGULATORY COMPLIANCE

         MedImmune shall, within the time permitted under applicable
regulations, file or cause to be filed with the FDA, all notices, assignments,
documents and/or other materials required by the laws of the United States to be
filed in connection with such Product. MedImmune shall be responsible for
developing United States Product labeling (including without limitation NDC
numbers), package inserts, imprinting and packaging data as appropriate, for the
Product. MedImmune shall be responsible for all United States regulatory
compliance activities with respect to such Product. CTI shall provide any
information and assistance requested by MedImmune for any regulatory filing,
Product labeling development, and all regulatory compliance activities with
respect to such Product. CTI agrees that because of the time constraints
associated with such filings, Product label development and regulatory
compliance activities that time is of the essence with regard to these matters
and will take all steps necessary to respond to MedImmune in a timely manner.

8.3      MEDICAL INQUIRIES

8.3.01   MedImmune shall respond to questions and inquiries relating to the
         Product raised by health care professionals and customers in the United
         States, and will establish and implement effective procedures and
         mechanisms for responding to such questions and inquiries.

                                       33
<PAGE>
8.3.02   MedImmune shall assume all responsibility for all correspondence and
         communication with physicians and other health care professionals in
         the United States relating to the Product. MedImmune shall keep such
         records and make such reports as shall be reasonably necessary to
         document such communications in compliance with all applicable
         regulatory requirements. CTI shall refer all questions regarding the
         Products to MedImmune in a timely manner.

8.4      REGULATORY REPORTING

         MedImmune shall have full responsibility for completing and filing the
annual report and all other required reports in the United States for the
Product, and if CTI has any sales or marketing responsibility in the United
States for such Product, MedImmune shall promptly send to CTI a copy of each
annual report for the BLA, NDA and the IND, and any other filing in connection
with the BLA, NDA or the IND, and any changes made to the product circular or
product label for the Product.

8.5      ADVERSE EXPERIENCE AND REACTION REPORTING

         Effective upon the obtaining of Regulatory Approval for a Product, and
as long as an NDA or BLA for the Product is active with any Regulatory Authority
in the Territory, CTI and MedImmune shall be responsible for reporting adverse
experiences and reactions with respect to the Product in conformance with all
applicable laws, rules and regulations. Each of CTI and MedImmune shall send to
the other, throughout such period, copies of all such adverse experience or
reaction reports, with all Serious and Unexpected adverse experiences (and
relevant government reporting forms) sent to the other party within five (5)
calendar days of such Party's receipt, and all adverse experiences or reactions
other than Serious or Unexpected adverse experiences (and relevant government
reporting forms) sent to the other party within 30 calendar days after such
Party's receipt. Not later than the achievement of the milestone set forth in
Section 6.6.01(d) or (e) (whichever is earlier), MedImmune and CTI will meet and
develop mutually acceptable pharmacovigilance procedures to allow both parties
to comply with applicable regulations and orders of regulatory authorities.

9.       PATENT PROVISIONS

9.1      FILING, PROSECUTION AND MAINTENANCE OF PATENTS

            (a) CTI Patent Rights. CTI shall have the exclusive right and option
(subject to the provisions of Section 9.1(d)) to file and prosecute any patent
applications and maintain any patents included in the CTI Patent Rights licensed
to MedImmune under this Agreement, upon appropriate consultation with MedImmune,
including an opportunity to review and comment on any papers to be filed in any
patent office prior to their submission. CTI will consider and take into account
all such comments. With respect to CTI Patent Rights, CTI will provide to
MedImmune all documents that relate to patent filing, prosecution and
maintenance, including, but not limited to, each patent application, office
action, response to office action, request for terminal disclaimer, and request
for reissue or reexamination or extension of any patent issuing from such
application sufficiently prior to the filing of such application, response or
request to

                                       34
<PAGE>
allow for review and comment by MedImmune. CTI shall promptly give notice to
MedImmune of the allowance, grant, lapse, revocation, surrender, invalidation or
abandonment of any CTI Patent Rights licensed to MedImmune for which CTI is
responsible for the filing, prosecution and maintenance. If CTI declines to file
and prosecute any such patent application or maintain any such patents covering
any CTI Patent Rights licensed to MedImmune under their Agreement, it shall give
MedImmune reasonable notice to this effect and thereafter MedImmune may, upon
written notice to CTI, file and prosecute such patent applications and maintain
such patents in CTI's name. For patents and patent applications within the CTI
Patent Rights licensed to MedImmune but not owned by CTI, CTI will use
reasonable efforts to arrange the same rights for MedImmune with the owners of
such patents and patent applications.

            (b) Joint Information and Inventions. The respective patent counsels
for the Parties shall jointly agree upon a mutually acceptable outside law firm
to file and prosecute any Joint Collaboration Patents. All costs associated with
filing, prosecuting and maintaining such patent applications and patents shall
be shared equally by the Parties. CTI and MedImmune shall each have an
opportunity to review and comment on any papers to be filed in any patent office
prior to their submission.

            (c) MedImmune Information and Inventions. MedImmune shall have the
exclusive right and option to file and prosecute any patent applications and to
maintain any patents covering MedImmune Collaboration Inventions, at MedImmune's
expense.

            (d) Expenses. Fifty percent (50%) of all out-of-pocket costs, after
the Effective Date associated with filing, prosecuting and maintaining the CTI
Patent Rights shall by borne by MedImmune, with the other fifty percent (50%)
being paid by CTI. MedImmune's share of such payments shall be reimbursed to CTI
within thirty (30) days after invoice therefore.

9.2      INTERFERENCE, OPPOSITION, REEXAMINATION AND REISSUE

            (a) CTI shall, within ten (10) days of learning of such event,
inform MedImmune of any request for, or filing or declaration of, any
interference, opposition, or reexamination relating to CTI Patent Rights.
MedImmune and CTI shall thereafter consult and cooperate fully to determine a
course of action with respect to any such proceeding. MedImmune shall have the
right to review and approve any submission to be made in connection with such
proceeding, which approval shall not be unreasonably withheld or delayed;
provided, however, that in case of a disagreement between CTI and MedImmune, CTI
shall have the right to control the course of action with respect to such
proceeding.

            (b) Neither Party shall initiate any reexamination, interference or
reissue proceeding relating to CTI Patent Rights without the prior written
consent of the other Party, which consent shall not be unreasonably withheld or
delayed.

            (c) In connection with any interference, opposition, reissue, or
reexamination proceeding relating to CTI Patent Rights, MedImmune and CTI will
cooperate fully and will provide each other with any information or assistance
that either may reasonably request. CTI shall keep MedImmune informed of
developments in any such action or proceeding, including,

                                       35
<PAGE>
to the extent permissible by law, consultation and approval of any settlement
(which approval shall not be unreasonably withheld or delayed), the status of
any settlement negotiations and the terms of any offer related thereto.

            (d) CTI and MedImmune shall equally share the expense of any
interference, opposition, reexamination, or reissue proceeding relating to CTI
Patent Rights, and MedImmune shall reimburse CTI for its share of any such
expenses within thirty (30) days following receipt of an invoice for such
expenses.

9.3      ENFORCEMENT AND DEFENSE

            (a) CTI shall give MedImmune notice of either (i) any infringement
of CTI Patent Rights, or (ii) any misappropriation or misuse of CTI Know-How,
that comes to CTI's attention.

            (b) With respect to the alleged infringement by a Third Party of CTI
Patent Rights or misappropriation or misuse of CTI Know-How (individually and
collectively "Licensed Technology") by making, using, selling, importing or
offering for sale a Product, subject to the rights of any licensor of Licensed
Technology under agreements with CTI, MedImmune will have the first right (but
not the obligation) to bring any infringement action or proceeding within the
Territory, at the cost and expense of MedImmune, by counsel of its own choice.
CTI will have the right, at its own cost and expense, to be represented in any
such action by counsel of its own choice, but MedImmune shall control such
action. If MedImmune fails to bring such an action in the Territory within
one-hundred and eighty (180) days of written notice thereof from CTI to
MedImmune, then CTI will have the right to bring such action at the cost and
expense of CTI with counsel selected by CTI. MedImmune, at its cost and expense,
will have the right to be represented by counsel in any such action brought by
CTI.

            (c) For any action to terminate any infringement of CTI Patent
Rights or any misappropriation or misuse of CTI Know-How, in the event that
MedImmune is unable to initiate or prosecute such action solely in its own name,
CTI will join such action voluntarily and will execute and cause its Affiliates
(and to the extent that CTI has the right to require a licensor to do so, its
licensors under applicable Technology Acquisition Agreements) to execute all
documents necessary for MedImmune to initiate litigation to prosecute and
maintain such action. In connection with any action, MedImmune and CTI will
cooperate fully and will provide each other with any information or assistance
that either may reasonably request. The Party initially bringing the action will
have the right to control such action, including the settlement thereof,
provided, however, that neither Party shall settle or compromise any claim or
proceeding that adversely affects the validity or enforceability of CTI Patent
Rights unless agreed to in writing by both Parties, which consent shall not be
unreasonably withheld. Any damages or other monetary awards recovered pursuant
to any suit, proceeding or other legal action taken under this Section 9.3 will
be allocated first to the costs and expenses of the Party initially bringing
suit, and second to the costs and expenses (if any) of the other Party that were
authorized by the Party bringing the suit, with any remaining amounts (if any)
to be allocated to the Party bringing suit and if the amount is allocated to
MedImmune, such amount will be Net Sales subject to royalty under this
Agreement.

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<PAGE>
            (d) CTI shall inform MedImmune of any certification regarding any
CTI Patent Rights it has received pursuant to either 21 U.S.C.
Sections 355(b)(2)(A)(iv) or (j)(2)(A)(vii)(IV) or its successor provisions
or any similar provisions in a country in the Territory other than the United
States and shall provide MedImmune with a copy of such certification within ten
(10) business days of receipt. CTI's and MedImmune's rights with respect to the
initiation and prosecution of any legal action as a result of such certification
or any recovery obtained as a result of such legal action shall be as defined in
Sections 9.3(a)-(d) hereof; provided, however, that CTI shall exercise its first
right to initiate and prosecute any action and shall inform MedImmune of such
decision within ten (10) business days of receipt of the certification, after
which time MedImmune shall have the right to initiate and prosecute such action.

9.4      PATENT TERM RESTORATION

         The Parties hereto shall cooperate with each other in obtaining patent
term restoration or supplemental protection certificates or their equivalents in
any country in the Territory where applicable to CTI Patent Rights. In the event
that elections with respect to obtaining such patent term restoration are to be
made, MedImmune shall have the right to make a good faith election and CTI
agrees to abide by such election. In the event that MedImmune does not promptly
make an election of a patent for patent term restoration, CTI shall have the
right to make a good faith election of the patent and MedImmune agrees to abide
by such election.

10.      TERM AND TERMINATION

10.1     TERM AND EXPIRATION

         This term of this Agreement shall be effective as of the Effective Date
and unless terminated earlier pursuant to Sections 10.2 or 10.3 below, this
Agreement shall continue in effect until the earlier of fifty (50) years or
expiration of all royalty obligations hereunder (the "Term"). Upon expiration of
this Agreement, MedImmune's licenses pursuant to Section 4.1 and 4.2 shall
become fully paid-up, perpetual licenses.

10.2     TERMINATION BY MEDIMMUNE

         Notwithstanding anything contained herein to the contrary, MedImmune
shall have the right to terminate this Agreement at any time in its sole
discretion by giving six (6) months' advance written notice to CTI. Not later
than thirty (30) days after the date of such termination, each Party shall
return or cause to be returned to the other Party all Information in tangible
form received from the other Party and all copies thereof, except that each
party may retain one copy in its confidential files for records purposes. In the
event of termination under this Section 10.2: (i) each Party shall pay all
amounts then due and owing up to and including the termination date; and (ii)
except for the surviving provisions set forth in Section 10.4 hereof, the rights
and obligations of the Parties hereunder shall terminate as of the date of such
termination.

10.3     TERMINATION FOR CAUSE

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<PAGE>
         In addition to the termination provisions of Sections 4.4.01 and 10.2,
this Agreement may be terminated at any time during the term of this Agreement
upon written notice by either Party if the other Party is in breach of its
payment obligations or in material breach of its obligations under Section 7.4
and has not cured such breach within ninety (90) days after notice requesting
cure of the breach (other than for non-payment which must be cured within
forty-five (45) days); provided, however, in the event of a good faith dispute
with respect to the existence of a breach, the ninety (90) day or forty-five
(45) day cure period shall be tolled until such time as the dispute is resolved
pursuant to Section 11.6 hereof.

10.4     EFFECT OF TERMINATION

            (a) If MedImmune terminates this Agreement under Section 10.3, at
MedImmune's option, MedImmune's licenses pursuant to Sections 4.1 and 4.2 shall
become perpetual licenses; provided, however, MedImmune shall continue to
fulfill MedImmune's payment and/or royalty obligations as specified herein, and
provided, further, MedImmune may reduce such payment and/or royalty obligations
by the amount of monetary damage suffered by MedImmune as a direct result of
CTI's breach of this Agreement; and CTI shall, within thirty (30) days after
such termination, return or cause to be returned to MedImmune all Information in
tangible form, and all substances or compositions delivered or provided by
MedImmune, as well as any other material provided by MedImmune in any medium.

            (b) In the event that this Agreement is terminated by MedImmune
under Section 10.2 or by CTI under Section 4.4.01(c) or Section 10.3, then: (i)
in the event that MedImmune is manufacturing Product for the purposes of
clinical trials and/or for Commercializing Product, then for a period of [**]
from the date of termination, MedImmune will supply such Product to CTI under a
supply agreement to be negotiated in good faith between the Parties at a price
of [**]; (ii) MedImmune shall transfer possession of MedImmune Know-How
including, without limitation, all governmental or regulatory correspondence,
conversation logs, filings and approvals (including Regulatory Approvals)
relating to the Product, and all data, reports, records and materials in
MedImmune's possession or control relating to the Product, to CTI for use by CTI
only with respect to Product for use in the Field; (iii) MedImmune grants to CTI
a non-exclusive royalty bearing license under MedImmune Collaboration Inventions
and MedImmune Know-How as well as the process technology provided under Part
(iv) of this Section 10.3.02(b) to make, have made, use, sell, offer to sell and
import Product for use in the Field; (iv) MedImmune will provide CTI with the
information and data Controlled by MedImmune that exists at such time that are
relevant to and would be required to manufacture Product by the Manufacturing
Process, as well as the cell line used for producing Product by such
Manufacturing Process. At the option of MedImmune in lieu of providing CTI with
existing recipes for the cell culture media and nutrient feeds used in the
Manufacturing Process, MedImmune itself or though a Third Party may provide CTI
at cost with such cell culture media or nutrient feeds. CTI will not, directly
or indirectly, take any steps to ascertain the recipe of any such cell culture
media and nutrient feeds provided by MedImmune. MedImmune will provide to CTI,
or at the discretion of MedImmune to the applicable regulatory agencies, all
necessary CMC documentation relating to such cell culture media and nutrient
feeds required for regulatory filings for the Product. CTI shall have the right
to use such process technology only

                                       38
<PAGE>
with respect to Product for use in the Field and shall not disclose or transfer
such process technology to a Third Party other than a Third Party that is
manufacturing Product for CTI, provided that prior to such disclosure or
transfer, such Third Party enters into a confidentiality and non-use agreement
with MedImmune.

            (c) Following termination of this Agreement as set forth in the
first sentence of Section 10.4(b), and subject to MedImmune's compliance with
the terms of such section, CTI agrees to pay to MedImmune a royalty of
[**]percent ([**]%) of net sales (calculated in the same manner as Net Sales) of
Product sold by CTI, its Affiliates and their sublicensees on a
Product-by-Product and country-by-country basis beginning on First Commercial
Sale of Product by CTI, its Affiliates or sublicensees in a country and ending
ten (10) years thereafter. Notwithstanding the foregoing, in the event that CTI
or its Affiliates or sublicensees is obligated to pay royalties to a Third Party
in order to practice the MedImmune Know-How or MedImmune Collaboration Patents
in a country (hereinafter "Third Party Licenses"), [**] percent ([**]%) of the
consideration actually paid under such Third Party Licenses by CTI or its
Affiliates or sublicensees for the practice of such MedImmune Know-How or
MedImmune Collaboration Patents in such country for a Calendar Quarter shall be
creditable against the royalty payments due MedImmune by CTI hereunder in such
country; provided, however, that in no event shall the royalties owed by CTI to
MedImmune for such Calendar Quarter in such country be reduced to less than an
amount equal to a [**]% royalty on net sales (calculated in the same manner as
Net Sales) for such Calendar Quarter; and, provided, further, that any credit
not used in a Calendar Quarter due to such limitation may be carried forward to
future Calendar Quarters. Notwithstanding anything to the contrary in the
foregoing, if (i) any Product is sold by a Third Party(ies) in a country in a
Calendar Quarter, (ii) the making, using and selling of such Product in such
country is not covered by a Valid Claim of any CTI Patent Right, MedImmune
Collaboration Patent or Joint Collaboration Patent in such country, and (iii)
the unit sales of such Products in such country in such Calendar Quarter are at
least [**] percent ([**]%) of the unit sales of Product by CTI, its Affiliates
and sublicensees, in the aggregate in such country in such Calendar Quarter,
then no royalties shall be payable with respect to sales of Product by CTI, its
Affiliates and sublicensees during such Calendar Quarter.

            (d) With respect to transfer of MedImmune Know-How and the process
technology, CTI shall reimburse MedImmune for such transfer at the FTE Rate. In
addition, with respect to such royalties, CTI shall have the same obligations to
MedImmune as MedImmune has to CTI under sections 6.4, 6.5, 6.7 and 6.8.

            (e) Upon termination of this Agreement by MedImmune pursuant to
Section 10.2, or by CTI pursuant to Section 10.3, MedImmune and its Affiliates,
sublicensees and distributors at their option shall be entitled, during the
twelve (12) month period immediately following the effective date of
termination, to finish any work-in-progress and to sell any Products remaining
in inventory, in accordance with the terms of this Agreement. Such sales shall
be subject to the royalty provisions of this Agreement.

10.5     EFFECT OF EXPIRATION OR TERMINATION; SURVIVAL

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<PAGE>
            (a) Expiration or termination of the Agreement shall not relieve the
Parties of any obligation accruing prior to such expiration or termination. Any
expiration or termination of this Agreement shall be without prejudice to the
rights of either Party against the other accrued or accruing under this
Agreement prior to expiration or termination, including without limitation the
obligation to pay royalties for Product(s) sold prior to such expiration
termination. The provisions of Article 5 shall survive the expiration or
termination of the Agreement and shall continue in effect for ten (10) years;
provided, however, that the provisions of Section 5.1(d) shall terminate upon
any expiration or termination of this Agreement. In addition, the provisions of
Articles 1, 4.3, 5, 7, 10 and 11 shall survive any expiration or termination of
this Agreement and Article 9 shall also survive if MedImmune retains a license
under Section 10.4(a).

            (b) In the event that MedImmune's licenses under this Agreement are
terminated with respect to one or more countries, and a sublicense has been
granted under this Agreement under any such licenses with respect to Product in
any such country, then this Agreement will become an agreement between CTI and
any such sublicensee with respect to Products in any such country, subject to
such sublicensee agreeing to be bound to the terms and conditions of this
Agreement.

            (c) The termination of this Agreement under Section 10.3 is in
addition to any rights or remedies that a Party may have at law or in equity for
breach of this Agreement except that this Agreement may be terminated only as
provided in Sections 4.4.01(c), 10.2 and 10.3.

11.      MISCELLANEOUS

11.1     FORCE MAJEURE

         Neither Party shall be held liable to the other Party nor be deemed to
have defaulted under or breached the Agreement for failure or delay in
performing any obligation under the Agreement when such failure or delay is
caused by or results from causes beyond the reasonable control of the affected
Party including, but not limited to, embargoes, war, acts of war (whether war be
declared or not), insurrections, riots, civil commotions, strikes, lockouts or
other labor disturbances, fire, floods, or other acts of God, or acts, omissions
or delays in acting by any governmental authority (including the supervision of
clinical work by a Regulatory Authority, for any reason other than negligence or
misconduct of MedImmune) or the other Party. The affected Party shall notify the
other Party of such force majeure circumstances as soon as reasonably practical,
and shall promptly undertake all reasonable efforts necessary to cure such force
majeure circumstances.

11.2     ASSIGNMENT/CHANGE OF CONTROL

            (a) Except as provided in this Section 11.2, this Agreement may not
be assigned or otherwise transferred, nor may any right or obligation hereunder
be assigned or transferred, by either Party without the consent of the other
Party. Each Party may, without consent of the other Party, assign this Agreement
and its rights and obligations hereunder in whole or in part to an Affiliate or
in connection with a Change of Control. Any attempted

                                       40
<PAGE>
assignment not in accordance with this Section 11.2 shall be void. Any permitted
assignee shall assume all assigned obligations of its assignor under this
Agreement.

            (b) CTI will not assign ownership (in whole or in part), in and to
CTI Patent Rights and/or CTI Know-How without the prior written consent of
MedImmune, which consent shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, CTI may assign any such interest in whole or in
part without such consent (i) to an Affiliate of CTI, or (ii) in connection with
a Change of Control; provided, however, that in each case, such assignment is in
connection with a permitted assignment of this Agreement and to the same
assignee as to which this Agreement is assigned, that such assignment is subject
to this Agreement, and that the assignee assumes in writing the assigning
Party's obligations under this Agreement.

11.3     SEVERABILITY

         If any one or more of the provisions contained in this Agreement is
held invalid, illegal or unenforceable in any respect, the validity, legality
and enforceability of the remaining provisions contained herein shall not in any
way be affected or impaired thereby, unless the absence of the invalidated
provision(s) adversely affects the substantive rights of the Parties. The
Parties shall in such an instance use their best efforts to replace the invalid,
illegal or unenforceable provision(s) with valid, legal and enforceable
provision(s) which, insofar as practical, implement the purposes of this
Agreement.

11.4     NOTICES

         All notices which are required or permitted hereunder shall be in
writing and sufficient if delivered personally, sent by facsimile (and promptly
confirmed by personal delivery, registered or certified mail or overnight
courier), sent by nationally-recognized overnight courier or sent by registered
or certified mail, postage prepaid, return receipt requested, addressed as
follows:

         if to CTI, to:              CRITICAL THERAPEUTICS, INC.
                                     675 Massachusetts Ave., 14th Floor
                                     Cambridge, MA 02139
                                     Attention: Chief Executive Officer
                                     Facsimile No.:  (617) 354-9318

                and:                 Hale and Dorr LLP
                                     60 State Street
                                     Boston, MA  02109
                                     Attention:  Steven D. Singer
                                     Facsimile No.:  (617) 526-5000

         if to MedImmune, to:        Before January 1, 2004

                                     MedImmune, Inc.
                                     35 W. Watkins Mill Road

                                       41
<PAGE>
                                     Gaithersburg, MD 20878, USA
                                     Attention:  Legal Department
                                     Facsimile:  (301) 527-4214

                                     After January 1, 2004

                                     MedImmune, Inc.
                                     One MedImmune Way
                                     Gaithersburg, MD  20878, USA
                                     Attention:  Legal Department
                                     Facsimile:  (301) 527-4214

or to such other address as the Party to whom notice is to be given may have
furnished to the other Party in writing in accordance herewith. Any such notice
shall be deemed to have been given: (a) when delivered if personally delivered
or sent by facsimile on a business day; (b) on the business day after dispatch
if sent by nationally-recognized overnight courier; and/or (c) on the fifth
business day following the date of mailing if sent by mail.

11.5     APPLICABLE LAW

         The Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware and the patent laws of the United States without
reference to any rules of conflict of laws or renvoi.

11.6     DISPUTE RESOLUTION

11.6.01  The Parties shall negotiate in good faith and use reasonable efforts to
         settle any dispute, controversy or claim arising from or related to
         this Agreement or the breach thereof. If the Parties do not fully
         settle, and a Party wishes to pursue the matter, each such dispute,
         controversy or claim shall be finally resolved by binding arbitration
         in accordance with the Commercial Arbitration Rules and Supplementary
         Procedures for Large Complex Disputes of the American Arbitration
         Association ("AAA"), and judgment on the arbitration award may be
         entered in any court having jurisdiction thereof.

11.6.02  The arbitration shall be conducted by a panel of three persons
         experienced in the pharmaceutical business: within 30 days after
         initiation of arbitration, each Party shall select one person to act as
         arbitrator and the two Party-selected arbitrators shall select a third
         arbitrator within 30 days of their appointment. If the arbitrators
         selected by the Parties are unable or fail to agree upon the third
         arbitrator, the third arbitrator shall be appointed by the AAA. The
         place of arbitration shall be New York, New York, and all proceedings
         and communications shall be in English.

                                       42
<PAGE>
11.6.03  Either Party may apply to the arbitrators for interim injunctive relief
         until the arbitration award is rendered or the controversy is otherwise
         resolved. Either Party also may, without waiving any remedy under this
         Agreement, seek from any court having jurisdiction any injunctive or
         provisional relief necessary to protect the rights or property of that
         Party pending the arbitration award. The arbitrators shall have no
         authority to award punitive or any other type of damages not measured
         by a Party's compensatory damages and shall not have the right to
         modify the terms or conditions of this Agreement. As a result the
         rights and obligations of the Parties will be determined in accordance
         with the terms and conditions of this Agreement and the decision or
         award will only be in accordance with the terms and conditions of this
         Agreement. Each Party shall bear its own costs and expenses and
         attorneys' fees and an equal share of the arbitrators' and any
         administrative fees of arbitration.

11.6.04  Except to the extent necessary to confirm an award or as may be
         required by law, rule or regulation, neither a Party nor an arbitrator
         may disclose the existence, content, or results of an arbitration
         without the prior written consent of both Parties. In no event shall an
         arbitration be initiated after the date when commencement of a legal or
         equitable proceeding based on the dispute, controversy or claim would
         be barred by the applicable New York statute of limitations.

11.6.05  The Parties agree that, in the event of a dispute over the nature or
         quality of performance under this Agreement, or with respect to a
         breach of this Agreement neither party may terminate the Agreement
         (except for termination under Section 10.2) until final resolution of
         the dispute through arbitration or other judicial determination. The
         Parties further agree that any payments made pursuant to this Agreement
         pending resolution of the dispute shall be refunded if an arbitrator or
         court determines that such payments are not due.

11.7     ENTIRE AGREEMENT; AMENDMENTS

         The Agreement contains the entire understanding of the Parties with
respect to the Collaboration and licenses granted hereunder. All express or
implied agreements and understandings, either oral or written, with regard to
the Collaboration and the licenses granted hereunder are superseded by the terms
of this Agreement. The Agreement may be amended, or any term hereof modified,
only by a written instrument duly executed by authorized representatives of both
Parties hereto.

11.8     HEADINGS

         The captions to the several Articles and Sections hereof are not a part
of the Agreement, but are merely for convenience to assist in locating and
reading the several Articles and Sections hereof.

11.9     INDEPENDENT CONTRACTORS

                                       43
<PAGE>
         It is expressly agreed that CTI and MedImmune shall be independent
contractors and that the relationship between the two Parties shall not
constitute a partnership, joint venture or agency. Neither CTI nor MedImmune
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 Party,
without the prior written consent of the other Party.

11.10    WAIVER

         The waiver by either Party hereto of any right hereunder, or the
failure of the other Party to perform, or 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 such other Party whether of a similar nature or otherwise.

11.11    CUMULATIVE REMEDIES

         No remedy referred to in this Agreement is intended to be exclusive,
but each shall be cumulative and in addition to any other remedy referred to in
this Agreement or otherwise available under law.

11.12    WAIVER OF RULE OF CONSTRUCTION

         Each Party has had the opportunity to consult with counsel in
connection with the review, drafting and negotiation of this Agreement.
Accordingly, the rule of construction that any ambiguity in this Agreement shall
be construed against the drafting Party shall not apply.

11.13    COUNTERPARTS

         The Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

11.14    FURTHER ASSURANCE

         Each Party will duly execute and deliver, or cause to be duly executed
and delivered, such further instruments and do and cause to be done such further
acts and things, including the filing of such assignments, agreements, documents
and instruments, as may be necessary or as the other Party may reasonably
request in connection with this Agreement or to carry out more effectively the
provisions and purposes, or to better assure and confirm unto such other Party
its rights and remedies under this Agreement.

                                       44
<PAGE>
         IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
date first set forth above.

MEDIMMUNE, INC.                       CRITICAL THERAPEUTICS, INC.

BY:      /s/ Edward T. Mathers        BY:      /s/ Paul D. Rubin
   --------------------------------       --------------------------------------
             Edward T. Mathers                 Dr. Paul D. Rubin

TITLE: Vice President, Corporate      TITLE: Chief Executive Officer & President
Development

DATE:        July 30, 2003            DATE:       August 4, 2003
   --------------------------------       --------------------------------------

                                       45
<PAGE>
EXHIBITS

EXHIBIT A        CO-PROMOTION TERMS

EXHIBIT B        CTI PATENT RIGHTS

EXHIBIT C        RESEARCH PLAN

EXHIBIT D        TECHNOLOGY ACQUISITION AGREEMENT

EXHIBIT E        CTI PATENT RIGHTS UNDER TECHNOLOGY ACQUISITION AGREEMENTS

EXHIBIT F        NORTH SHORE LETTER AGREEMENT
<PAGE>
                                    EXHIBIT A

                             CO-PROMOTION AGREEMENT

         The Co-Promotion Agreement to be entered into by the Parties pursuant
to Section 4.4.02(b)(2)(ii) of the Agreement shall include the following
provisions:

         (1)      All Lead Product sales in the United States shall be booked by
                  MedImmune;

         (2)      Net Pre-Tax U.S. Profits for the Lead Product for only one
                  Indication shall be divided as follows:

                  MedImmune                 [**]%

                  CTI                       [**]%

         As used herein, "Net Pre-Tax U.S. Profits" means Net Sales less: (a)
Cost of Goods Sold, (b) Distribution Costs, (c) Marketing Costs, (d) Sales
Costs, (e) General and Administrative Costs, and (f) Running Technology
Acquisition Payments, (g) Recall Expense all as defined in the Co-promotion
Agreement, and (h) insurance premiums payable for Product, including product
liability insurance; (i) a charge for financing inventory and trade receivables
at MedImmune's cost of capital; (j) all product liability expenses including the
cost of defense, settlements and damage awards in excess of product liability
insurance or reserves for the Product, if any; and (k) all costs and expenses of
bringing and/or defending patent or trademark infringement claims with respect
to Product and settlements and damage awards resulting therefrom.

         (3)      CTI shall be responsible for reimbursing MedImmune for [**]%
                  of the Development Cost remaining to be incurred for the Lead
                  Product in the United States after the exercise by CTI of the
                  co-promotion option.

         (4)      CTI shall perform [**]% of all Detailing activities for the
                  Lead Product in the United States.

         (5)      MedImmune will pay [**]% of all subsequent milestones relating
                  to U.S. Development of the Lead Product under Section 6.6.01
                  and 6.6.02 and, such milestones including the [**] milestone
                  for Lead Product will be creditable against CTI's share of Net
                  Pre-Tax U.S. Profit.

         (6)      CTI will not receive any royalties based upon Net Sales of the
                  Lead Product in the United States.

         (7)      The Net Sales milestones set forth in Section 6.3.01(b) shall
                  not include Net Sales in the United States.

         (8)      The Parties will establish a Joint Commercialization Committee
                  for the coordination of the co-promotion of the Lead Product
                  in the United States.
<PAGE>
                                    EXHIBIT B

                                CTI PATENT RIGHTS

<TABLE>
<CAPTION>
     SERIAL NUMBER                TITLE             FILING DATE           STATUS

           OR                                           OR

     PATENT NUMBER                                  ISSUE DATE
<S>                               <C>               <C>                   <C>
          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                                    [**]

          [**]                     [**]                                    [**]

          [**]                     [**]                                    [**]

          [**]                     [**]                                    [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]

          [**]                     [**]                [**]                [**]
</TABLE>
<PAGE>
                                    EXHIBIT C

                                  RESEARCH PLAN

                                      [**]
<PAGE>
                                    EXHIBIT D

                        TECHNOLOGY ACQUISITION AGREEMENTS

1.       License Agreement by and between North Shore and Critical Therapeutics,
Inc. with the Effective Date of July 1, 2001.

2.       Sponsored Research and License Agreement by and between North Shore and
Critical Therapeutics, Inc. with the Effective Date of July 1, 2001, as amended
on July 1, 2003.
<PAGE>
                                    EXHIBIT E

            CTI PATENT RIGHTS UNDER TECHNOLOGY ACQUISITION AGREEMENTS

<TABLE>
<CAPTION>
     SERIAL NUMBER           TITLE               FILING DATE             STATUS

           OR                                        OR

     PATENT NUMBER                               ISSUE DATE
<S>                          <C>                 <C>                    <C>
          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                                        [**]

          [**]                [**]                                        [**]

          [**]                [**]                                        [**]

          [**]                [**]                                        [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]

          [**]                [**]                  [**]                  [**]
</TABLE>
<PAGE>
                                    EXHIBIT F

                      ACKNOWLEDGEMENT AND CONSENT AGREEMENT

         North Shore - Long Island Jewish Research Institute ("North Shore"), a
New York non-profit corporation, acknowledges to MedImmune, Inc. ("MedImmune")
that the:

         (i)      License Agreement by and between North Shore and Critical
                  Therapeutics, Inc. ("CTI") with the Effective Date of July 1,
                  2001, and

         (ii)     Sponsored Research and License Agreement by and between North
                  Shore and Critical Therapeutics, Inc. ("CTI") with the
                  Effective Date of July 1, 2001, as amended on July 1, 2003,

(individually and collectively, the "License Agreements") are in full force and
effect and consents to MedImmune receiving a sublicense thereunder.

         In consideration of MedImmune entering into a Collaboration and License
Agreement with CTI, North Shore agrees that in the event that CTI's rights under
the License Agreements is terminated, the licenses granted to CTI under License
Agreements shall remain in full force and effect as a direct license from North
Shore to MedImmune under the licensing terms of the License Agreements and CTI
acknowledges that MedImmune will in all other respects succeed to all the rights
and obligations of CTI under the License Agreements.

                                         North Shore - Long Island Jewish
                                         Research Institute

                                         By:
                                              ----------------------------------

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

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