Document:

<PAGE>

                                                                    Exhibit 10.1

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                       COLLABORATION AND LICENSE AGREEMENT

                          DATED AS OF DECEMBER 15, 2004

                                 BY AND BETWEEN

                              CANCERVAX CORPORATION

                                       AND

                            SERONO TECHNOLOGIES S.A.

<PAGE>

                                TABLE OF CONTENTS

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ARTICLE 1       DEFINITIONS..........................................................................       2

ARTICLE 2       LICENSES AND RELATED RIGHTS AND OBLIGATIONS..........................................      17

    2.1      License Grants from CancerVax to Serono.................................................      17

    2.2      License Grants from Serono to CancerVax.................................................      18

    2.3      Sublicensing and Subcontracting.........................................................      18

    2.4      Know-How Use and Transfer Restrictions..................................................      19

    2.5      No Implied License; Retained Rights.....................................................      19

    2.6      Exclusivity.............................................................................      20

    2.7      Third Party Licenses....................................................................      21

ARTICLE 3       COLLABORATION management.............................................................      22

    3.1      Alliance Manager........................................................................      22

    3.2      Committees..............................................................................      22

    3.3      Steering Committee......................................................................      23

    3.4      Development Team........................................................................      24

    3.5      Product Team............................................................................      25

ARTICLE 4       DEVELOPMENT OF PRODUCT...............................................................      26

    4.1      Development Transfer Plan...............................................................      26

    4.2      Development Activities..................................................................      27

    4.3      Development Plan........................................................................      27

    4.4      Development Efforts.....................................................................      28

    4.5      Development Funding.....................................................................      29

    4.6      Certain Clinical Trials.................................................................      29

ARTICLE 5       REGULATORY MATTERS...................................................................      30

    5.1      Access to Data; Notice; Comments........................................................      30

    5.2      Clinical Trial Data.....................................................................      31

    5.3      Filings with Governmental Authorities...................................................      31

    5.4      Communication with Governmental Authorities.............................................      31

    5.5      Step-In Rights..........................................................................      33

    5.6      Regulatory Information..................................................................      34

    5.7      Recalls.................................................................................      35
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    5.8      Events Affecting Integrity or Reputation................................................      35

    5.9      Medical Inquiries.......................................................................      35

    5.10     Pricing and Reimbursement...............................................................      36

    5.11     Costs...................................................................................      36

ARTICLE 6       COMMERCIALIZATION....................................................................      36

    6.1      Commercialization Activities............................................................      36

    6.2      U.S. Commercialization..................................................................      37

    6.3      ROW Commercialization...................................................................      41

ARTICLE 7       CO-PROMOTION.........................................................................      43

    7.1      Sales Force.............................................................................      43

    7.2      Sales Force Training....................................................................      44

    7.3      [***]...................................................................................      45

    7.4      Detailing...............................................................................      46

    7.5      Alternative Performance.................................................................      48

    7.6      Costs of Co-Promotion...................................................................      48

ARTICLE 8       SUPPLY...............................................................................      48

    8.1      Supply for Development..................................................................      48

    8.2      Supply for Commercialization............................................................      49

ARTICLE 9       FINANCIAL PROVISIONS.................................................................      49

    9.1      Up-front Payments.......................................................................      49

    9.2      Milestone Payments......................................................................      50

    9.3      Profit Sharing for the Product in the United States.....................................      51

    9.4      Payment of Royalties on Net Sales of the Product in the ROW.............................      51

    9.5      Reports and Reconciliation Payments.....................................................      53

    9.6      Currencies..............................................................................      55

    9.7      Manner of Payments......................................................................      55

    9.8      Interest on Late Payments...............................................................      56

    9.9      Tax Withholding.........................................................................      56

    9.10     Tax Matters.............................................................................      56

    9.11     Financial Records; Audits...............................................................      58
</TABLE>

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ARTICLE 10      CONFIDENTIAL INFORMATION.............................................................      59

    10.1     Confidential Information................................................................      59

    10.2     Other Permitted Disclosure and Use......................................................      60

    10.3     Publications............................................................................      60

    10.4     Public Announcements....................................................................      61

    10.5     Equitable Relief........................................................................      61

ARTICLE 11      REPRESENTATIONS AND WARRANTIES; COVENANTS............................................      62

    11.1     Mutual Representations and Warranties...................................................      62

    11.2     Additional Serono Representations and Warranties........................................      62

    11.3     Additional CancerVax Representations and Warranties.....................................      62

    11.4     Covenants...............................................................................      64

    11.5     Disclaimer of Warranty..................................................................      64

ARTICLE 12      INDEMNIFICATION......................................................................      65

    12.1     Indemnification by Serono...............................................................      65

    12.2     Indemnification by CancerVax............................................................      65

    12.3     Procedure for Indemnification...........................................................      65

    12.4     Right to Counsel........................................................................      66

    12.5     [***]...................................................................................      66

    12.6     Insurance...............................................................................      67

    12.7     Limitation of Liability.................................................................      67

ARTICLE 13      PATENT AND INFRINGEMENT..............................................................      67

    13.1     Inventions..............................................................................      67

    13.2     Patent Filing, Prosecution and Maintenance..............................................      67

    13.3     Infringement............................................................................      68

    13.4     Enforcement Against Third Parties.......................................................      69

    13.5     [***] ..................................................................................      71

    13.6     Patent Marking..........................................................................      71

ARTICLE 14      TRADEMARK AND COPYRIGHT..............................................................      71

    14.1     Product Trademarks......................................................................      71

    14.2     Display; Approval; Quality Control......................................................      72
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    14.3     Enforcement.............................................................................      72

    14.4     Housemarks..............................................................................      72

    14.5     Copyrights..............................................................................      73

ARTICLE 15      TERM AND TERMINATION.................................................................      74

    15.1     Term....................................................................................      74

    15.2     Rights of Termination...................................................................      74

    15.3     Effect of Expiration or Termination.....................................................      74

    15.4     Effect of Termination for Bankruptcy Events.............................................      77

    15.5     Survival................................................................................      77

ARTICLE 16      DISPUTE RESOLUTION...................................................................      77

    [***]

    [***]

ARTICLE 17      LIMITATIONS ON PURCHASES OF EQUITY SECURITIES........................................      78

    17.1     Purchases of Equity Securities..........................................................      78

    17.2     Exceptions for Purchasing Securities of CancerVax.......................................      79

ARTICLE 18      MISCELLANEOUS........................................................................      80

    18.1     Registration and Filing of this Agreement...............................................      80

    18.2     Accounting Procedures...................................................................      80

    18.3     Patient Information.....................................................................      80

    18.4     Non-Solicitation........................................................................      80

    18.5     Force Majeure...........................................................................      81

    18.6     Further Assurances......................................................................      81

    18.7     Relationship of the Parties; Expenses...................................................      81

    18.8     No Third Party Beneficiaries............................................................      82

    18.9     Notices.................................................................................      82

    18.10    Assignment and Delegation...............................................................      83

    18.11    Severability............................................................................      83

    18.12    Headings; Construction; Certain Conventions.............................................      83

    18.13    Entire Agreement; Amendments............................................................      84

    18.14    Waiver..................................................................................      84
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    18.15    Remedies Cumulative.....................................................................      84

    18.16    Governing Law...........................................................................      84

    18.17    Counterparts; Fax Signatures............................................................      84

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                                        v

<PAGE>

SCHEDULES

Schedule 1.13 CancerVax Patents

EXHIBITS

Exhibit A  Terms for Manufacturing and Supply Agreement
Exhibit B  Stock Purchase Agreement
Exhibit C  Registration Rights Agreement
Exhibit D  Form of Press Release

<PAGE>

                       COLLABORATION AND LICENSE AGREEMENT

         This COLLABORATION AND LICENSE AGREEMENT (this "Agreement"), dated as
of December 15, 2004 (the "Effective Date"), is made by and between CancerVax
Corporation, a Delaware corporation having its principal office at 2110
Rutherford Road, Carlsbad, California, 92008, USA ("CancerVax"), and Serono
Technologies S.A., a Swiss corporation having its principal office at Zone
Industrielle de l'Ouriettaz, 1170 Aubonne, SWITZERLAND ("Serono"). CancerVax and
Serono may each be referred to as a "Party" or together, the "Parties".

                                    RECITALS

         WHEREAS, CancerVax is engaged in the discovery, development and
commercialization of biological drug products for the treatment, control and
prevention of cancer, and is currently developing a drug product candidate,
known as Canvaxin(TM) (and more specifically defined below as the Product), for
the treatment of patients with Stage III and Stage IV melanoma;

         WHEREAS, Serono has significant experience in the world-wide
development and commercialization of drug products, and can make significant
contributions to the successful development and commercialization of the
Product;

         WHEREAS, the Parties desire to collaborate in connection with the
Development and Commercialization of the Product on the terms and subject to the
conditions of this Agreement, which collaboration would include, in summary,
joint Development of the Product by the Parties, joint Commercialization and
Co-Promotion of the Product by the Parties in the United States and
Commercialization of the Product exclusively by Serono in the ROW;

         WHEREAS, CancerVax and Serono (or one or more of their respective
Affiliates) are executing the Stock Purchase Agreement and the Registration
Rights Agreement concurrently with the execution of this Agreement, each to be
effective as of the Effective Date; and

         WHEREAS, CancerVax and Serono (or one or more of their respective
Affiliates) will execute at a later date a Pharmacovigilance Agreement, a
Manufacturing and Supply Agreement and, in connection with and pursuant to the
terms of the Manufacturing and Supply Agreement, a Quality Agreement, and may
execute, at a later date, a Technology Transfer Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises and the
representations, covenants and agreements contained herein, CancerVax and
Serono, intending to be legally bound, hereby agree as follows:

                                      -1-
<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

         For purposes of this Agreement, in addition to the other terms defined
elsewhere in this Agreement (as set forth in the chart below), the following
initially capitalized terms, whether used in the singular or plural, shall have
the following meanings:

1.1      "Adverse Drug Experience" means any of the following: an "adverse drug
         experience," a "life-threatening adverse drug experience," a "serious
         adverse drug experience," or an "unexpected adverse drug experience,"
         as those terms are defined at either 21 C.F.R. Section 312.32 or 21
         C.F.R. Section 314.80, or their equivalents under Laws of jurisdictions
         outside the United States.

1.2      "Affiliate" means any Person directly or indirectly controlled by,
         controlling, or under common control with, a Person, but only for so
         long as such control shall continue. For purposes of this definition,
         "control" (including, with correlative meanings, "controlled by",
         "controlling," and "under common control with") means, with respect to
         a Person, possession, direct or indirect, of (a) the power to direct or
         cause direction of the management and policies of such Person (whether
         through ownership of securities or partnership or other ownership
         interests, by contract or otherwise) or (b) at least fifty percent
         (50%) of the voting securities (whether directly or pursuant to any
         option, warrant or other similar arrangement) or other comparable
         equity interests of such Person. For the avoidance of doubt, neither of
         the Parties shall be deemed to be an Affiliate of the other.

1.3      "Allocable Overhead" means [***]

1.4      "Approval" means a Marketing Authorization and its related pricing,
         labeling and reimbursement approvals, and similar final approvals from
         a Governmental Authority necessary to Commercialize a product.

1.5      "BLA" means a biologics license application, a supplemental biologics
         license application, a marketing authorization application or any
         similar application, or any amendment to any of the foregoing, filed
         with the FDA or any other Governmental Authority to obtain Marketing
         Authorization for a biological or pharmaceutical product in the country
         or territory over which such Governmental Authority has jurisdiction.

1.6      "BLA Acceptance" means the receipt of notice from the relevant
         Governmental Authority that a BLA for the Product has met all the
         criteria for filing acceptance.

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

                                      -2-
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1.7      "Business Day" means any day that is not a Saturday, Sunday, or a day
         on which banking institutions in Aubonne, Switzerland or San Diego,
         California, United States are required by Law to be closed for
         business.

1.8      "Calendar Quarter" means for each Calendar Year, each of the three (3)
         month periods ending March 31, June 30, September 30, and December 31;
         provided, that the first calendar quarter for the first Calendar Year
         shall extend from the Effective Date to the end of the first complete
         calendar quarter in which it falls.

1.9      "Calendar Year" means, for the first calendar year, the period
         commencing on the Effective Date and ending on December 31 of the
         calendar year during which the Effective Date occurs, and each
         successive period beginning on January 1 and ending twelve (12)
         consecutive calendar months later on December 31.

1.10     "Call" means a face-to-face meeting in an individual, hospital or group
         setting between a Sales Representative and one or more Target
         Prescribers.

1.11     "CancerVax Housemark" means the name and logo of CancerVax.

1.12     "CancerVax Know-How" means the proprietary Know-How owned or Controlled
         by CancerVax as of the Effective Date or during the Term that is
         necessary or actually used to Develop, Manufacture, Commercialize or
         use the Product in the Field, including the Cell Lines, but excluding
         Serono Know-How licensed to CancerVax by Serono under this Agreement.

1.13     "CancerVax Patents" means those Patent Rights owned or Controlled by
         CancerVax as of the Effective Date or during the Term that cover the
         Development, Manufacture, Commercialization or use of the Product in
         the Field, including the Patent Rights set forth in Schedule 1.13, as
         amended and updated by CancerVax from time to time.

1.14     "CancerVax Technology" means CancerVax Patents, CancerVax Know-How and
         CancerVax's rights to and interests in any Joint Technology.

1.15     "Cell Lines" means [***]

1.16     "Claims" means all charges, complaints, Recall obligations and
         liabilities, actions, suits, proceedings, hearings, investigations,
         claims and demands.

1.17     "Change of Control" means (a) a merger, reorganization or consolidation
         of a Party with a Third Party that results in the shareholders of such
         Party receiving less than fifty percent (50%) of the combined voting
         power of the surviving entity immediately after such merger,
         reorganization or consolidation, (b) a Third Party, together with its
         Affiliates, becoming the direct or beneficial owner of fifty percent
         (50%) or more of the combined voting power of the outstanding
         securities or outstanding share of common stock of such Party, or (c)
         the sale or other transfer of all or substantially all of such Party's
         assets which relate to this Agreement to a Third Party.

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

                                      -3-
<PAGE>

1.18     "Commercial Expenses" means [***]:

         1.18.1   [***]

         1.18.2   [***]

         1.18.3   [***]

         1.18.4   [***]

         1.18.5   [***]

         1.18.6   [***]

         1.18.7   [***]

         1.18.8   [***]

         1.18.9   [***]

         1.18.10  [***]

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omitted portions.

                                      -4-
<PAGE>
         1.18.11  [***]

         1.18.12  [***] and

         1.18.13  [***]

but specifically excluding [***]

1.19     "Commercialization" means any and all activities directed to marketing,
         promoting, distributing, importing for sale, offering for sale, and
         selling a product, including Co-Promoting and regulatory activities
         directed to obtaining pricing and reimbursement approvals, but not
         including Manufacturing. When used as a verb, "Commercialize" means to
         engage in Commercialization.

1.20     "Commercialization Plan" means either the U.S. Commercialization Plan
         or the ROW Commercialization Plan, or both, as the context requires.

1.21     "Commercially Reasonable Efforts" means [***]

1.22     "Competing Product" means [***]

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

                                      -5-
<PAGE>

1.23     "Confidential Information" means all secret, confidential or
         proprietary information or data, whether provided in written, oral,
         graphic, video, computer, or other form, provided or transmitted by or
         on behalf of one Party (the "Disclosing Party") to the other Party (the
         "Receiving Party"), including information relating to the Disclosing
         Party's existing or proposed research, Development efforts, Patent
         Rights, Know-How, business, finances (including all financial
         information subject to review under or prepared by accountants pursuant
         to Section 9.11) or products (including the Product training materials
         contemplated by Section 7.2.1, the Development Plan and the
         Commercialization Plans), the terms of this Agreement and any other
         materials that have not been made available by the Disclosing Party to
         the general public. Notwithstanding the foregoing sentence,
         Confidential Information shall not include any information or materials
         that:

         1.23.1   were already known to the Receiving Party (other than under an
                  obligation of confidentiality) at the time of disclosure by
                  the Disclosing Party, to the extent the Receiving Party has
                  documentary evidence to that effect;

         1.23.2   were generally available to the public or otherwise part of
                  the public domain at the time of disclosure by the Disclosing
                  Party;

         1.23.3   became generally available to the public or otherwise part of
                  the public domain after disclosure or development, as the case
                  may be, other than through any act or omission of the
                  Receiving Party in breach of the Receiving Party's
                  confidentiality obligations to the Disclosing Party;

         1.23.4   were disclosed to the Receiving Party, other than under an
                  obligation of confidentiality, by a Third Party who had no
                  obligation to the Disclosing Party not to disclose such
                  information to others; or

         1.23.5   were independently discovered or developed, as the case may
                  be, by or on behalf of the Receiving Party by Persons without
                  the use of or access to the Disclosing Party's Confidential
                  Information, to the extent the Receiving Party has documentary
                  evidence to that effect.

1.24     "Controlled" means, with respect to any intellectual property right,
         that the relevant Party has a license to such intellectual property
         right and has the ability to grant to the other Party a sublicense to
         such intellectual property right as provided for herein without
         violating the terms of such license.

1.25     "Co-Promotion" means the joint promotion of the Product in the United
         States by both Parties (or their respective Affiliates) under the same
         Product Trademark(s) as set forth in

                                      -6-
<PAGE>
         ARTICLE 7. "Co-Promote" when used  a verb shall mean to engage in such
         Co-Promotion.

1.26     "Cost of Goods" means [***]

1.27     "Detail" or "Detailing" means, with respect to the Product, the
         activity undertaken by a Sales Representative during a Call in which
         one or more Product benefits are verbally presented to one or more
         Target Prescribers, but shall exclude discussions at conventions,
         marketing meetings or seminars, and all forms of communication not
         involving face-to-face contact by a Sales Representative and a Target
         Prescriber.

1.28     "Development" or "Develop" means non-clinical and clinical drug
         development activities reasonably related to the development and
         submission of information to a Governmental Authority for purposes of
         obtaining Marketing Authorization, including clinical and non-clinical
         studies, test method development and stability testing, process
         development, formulation development, delivery system development,
         quality assurance and quality control development and statistical
         analysis, and activities related to Manufacturing scale-up, but not
         including Manufacturing for commercial supply. When used as a verb,
         "Develop" means to engage in Development.

1.29     "Development Expenses"  means [***]

         1.29.1   [***]

         1.29.2   [***]

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omitted portions.

                                      -7-
<PAGE>

         1.29.3   [***]

         1.29.4   [***]

         1.29.5   [***]

         1.29.6   [***]

         1.29.7   [***]

         1.29.8   [***]

         1.29.9   [***] and

         1.29.10  [***]

but specifically excluding [***]

1.30     "Directly Comparable Product" means [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -8-
<PAGE>

1.31     "Distribution Expenses" means [***]

1.32     "Distributable Profit" means [***] less the following amounts (such
         items, "Shared Expenses"):

         1.32.1   [***]

         1.32.2   [***]

         1.32.3   [***]

         1.32.4   [***]

         1.32.5   [***]

         1.32.6   [***]

         1.32.7   [***] and

         1.32.8   [***]

         but specifically excluding [***]

1.33     "European Union" or "EU" means the countries of the European Union, as
         it is constituted as of the Effective Date.

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

                                      -9-
<PAGE>

1.34     "Existing Third Party Agreement" means the Cross-License Agreement
         between CancerVax, Inc. and the John Wayne Cancer Institute, dated July
         24, 1998, and assigned to CancerVax on July 31, 2000.

1.35     "FDA" means the United States Food and Drug Administration and any
         successor agency thereto.

1.36     "Field" means all preventative and therapeutic uses in human diseases.

1.37     "First Commercial Sale" means the first commercial sale of a product to
         an end user in a country after receipt of Approval for such country.

1.38     "FTE Rate" means [***] per full time equivalent personnel. Such rate
         shall be reviewed on an annual basis and adjusted as the Parties may
         agree to reflect, among other things, [***]

1.39     "Governmental Authority" means any applicable government authority,
         court, tribunal, arbitrator, agency, legislative body, commission or
         other instrumentality of (a) any government of any country, (b) any
         state, province, county, city or other political subdivision thereof,
         or (c) any supranational body, including the European Commission.

1.40     "Housemark" means, when used in connection with CancerVax, the
         CancerVax Housemark, and, when used in connection with Serono, the
         Serono Housemark.

1.41     "Invention" means any new or useful process, manufacture, compound,
         composition of matter, improvement, discovery, claim, formula, process,
         trade secret, technology and know-how (including confidential data and
         Confidential Information), [***] including any synthesis, preparation,
         recovery and purification processes and techniques, control methods and
         assays, chemical data, toxicological and pharmacological data and
         techniques, clinical data, medical uses, product forms, product
         formulations and specifications, whether patentable or unpatentable
         (but not patented), [***]

1.42     "Joint Technology" means any Patent Rights or Know-How arising from
         Inventions that is determined to be jointly owned by the Parties
         pursuant to Section 13.1.

1.43     "Know-How" means any technical information, know-how and materials,
         including all biological, chemical, pharmacological, toxicological,
         clinical, assay and other information, data, discoveries, inventions,
         improvements, processes, formulae and trade secrets, whether patentable
         or unpatentable (but not patented).

1.44     "Knowledge" of CancerVax means, [***]

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

                                      -10-
<PAGE>

1.45     "Label-Enabling Clinical Trial" means a clinical trial of the Product
         in human patients the results of which could be used to support the
         Marketing Authorization for the Product in a country or to expand the
         Product's labeling, including for additional indications.

1.46     "Laws" or "Law" means all applicable laws, statutes, rules,
         regulations, ordinances and other pronouncements having the binding
         effect of law of any Governmental Authority.

1.47     "Losses" means any and all damages (including all incidental,
         consequential, statutory, and treble damages), awards, deficiencies,
         settlement amounts, assessments, fines, dues, penalties, costs, fees,
         liabilities, obligations, taxes, liens, losses and expenses (including
         court costs, interest and reasonable fees of attorneys, accountants and
         other experts) actually incurred by a Party or required to be paid by a
         Party to a Third Party with respect to a Claim by reason of any
         judgment, order, decree, stipulation or injunction, or any settlement
         entered into in accordance with the provisions of this Agreement,
         together with all documented out-of-pocket costs and expenses incurred
         in complying with any judgments, orders, decrees, stipulations and
         injunctions that arise from or relate to a Claim of a Third Party.

1.48     "Manufacturing" means any and all activities relating to acquiring
         materials for, producing, manufacturing, processing, filling,
         finishing, packaging, labeling or quality control testing a product, or
         having performed any such activity. When used as a verb, "Manufacture"
         means to engage in Manufacturing.

1.49     "Marketing Authorization" means, with respect to a country, the
         regulatory authorization required to market and sell a product in such
         country as granted by the relevant Governmental Authority.

1.50     "Net Sales" means [***] less the following deductions [***]

         1.50.1   [***]

         1.50.2   [***]

         1.50.3   [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -11-
<PAGE>

         1.50.4   [***]

         1.50.5   [***]

         1.50.6   [***]

         1.50.7   [***] and

         1.50.8   [***]

Net Sales shall be determined from books and records maintained in accordance
with Section 18.2.

If the Product is sold in the form of a combination product containing one or
more products, active ingredients, devices, equipment or components that are
themselves not the Product (a "Combination Product"), then for the purpose of
calculating Royalties owed on sales of the Combination Product, Net Sales shall
be calculated as follows: [***]

Notwithstanding the foregoing, if the Product is sold by a Party, its Affiliates
or sublicensees to a Third Party in a given country in a given Calendar Quarter
under a bundled arrangement with such Party's other products, then the Net Sales
[***]

Transfers or dispositions of the Product to Third Parties for compassionate use,
preclinical, clinical, Manufacturing, regulatory or Governmental Authority
purposes shall not be deemed to be "sales", unless [***]

1.51     "Patent Rights" means all existing patents and patent applications and
         all patent applications hereafter filed, including any continuations,
         continuations-in-part, divisions, provisionals, or any substitute
         applications, any patent issued with respect to any such

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omitted portions.

                                      -12-
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         patent applications, any reissue, reexamination, renewal, or extension
         (including any supplementary protection certificate) of any such
         patent, and any confirmation patent or registration patent or patent of
         addition based on any such patent, and all foreign counterparts of any
         of the foregoing, or as applicable portions thereof or individual
         claims therein.

1.52     "Person" means any natural person, corporation, general partnership,
         limited partnership, joint venture, proprietorship, or other business
         organization.

1.53     "Phase III Clinical Trial" means a clinical trial of the Product in
         human patients with disease being studied that is of appropriate size
         and design to establish the safety and efficacy of the Product and is
         intended to be the final stage of clinical testing prior to and in
         support of obtaining Marketing Authorization for the Product in the
         U.S. or the EU, which trial shall be deemed initiated upon the first
         administration of the Product to a patient in such trial.

1.54     "Phase IV Clinical Trial" means a clinical trial of the Product in
         human patients (including investigator initiated trials and clinical
         experience trials) that is conducted for a purpose other than to obtain
         or support the initial Marketing Authorization for the Product in a
         country, and excluding Label-Enabling Clinical Trials.

1.55     "Primary Detail" means a Detail for the Product in which the Product
         receives the predominant portion of emphasis and time during the Call
         (i.e., no other product receives more emphasis or time during the
         Call).

1.56     "Product" means the injectible biopharmaceutical preparation containing
         the Cell Lines as the drug substances in final form for administration
         to humans that is currently identified as Canvaxin(TM).

1.57     "Product Trademarks" means any and all trademarks, logos, designs,
         slogans and other product markings, as well as trade dress, used during
         the Term to identify or brand the Product or otherwise in connection
         with the Commercialization of the Product, including the trademark
         Canvaxin(TM), but excluding the Housemarks.

1.58     "Promotional Materials" means all written, printed, video or graphic
         advertising, promotional, educational and communication materials
         (other than Product labeling) for marketing, advertising and promotion
         of the Product for use by sales forces (including the Sales Forces),
         advertisements, direct mail pieces or other marketing initiatives, in
         accordance with the terms of the applicable Commercialization Plan.

1.59     "Related Agreements" means the Stock Purchase Agreement, the
         Registration Rights Agreement, the Pharmacovigilance Agreement, the
         Technology Transfer Agreement, the Manufacturing and Supply Agreement
         and the Quality Agreement.

1.60     "ROW" means all countries in the world (including all states,
         provinces, territories, protectorates, possessions and other similar
         subdivisions thereof) other than the United States.

                                      -13-
<PAGE>

1.61     "Sales Representative" means an individual who engages in Detailing and
         other promotional efforts with respect to the Product and who has been
         trained in accordance with Section 7.2.

1.62     "Second Indication" means [***]

1.63     "Secondary Detail" means a Detail for the Product in which the Product
         receives the second most emphasis and time during the Call (i.e., at
         most, only one other product receives greater emphasis and time during
         the Call).

1.64     "Serono Housemark" means the name and logo of Serono or an Affiliate of
         Serono as identified by Serono to CancerVax from time to time.

1.65     "Serono Know-How" means the proprietary Know-How owned or Controlled by
         Serono as of the Effective Date or during the Term that is necessary or
         actually used to Develop, Manufacture, Commercialize or use Product in
         the Field but excluding CancerVax Know-How licensed to Serono under
         this Agreement.

1.66     "Serono Patents" means those Patent Rights owned or Controlled by
         Serono as of the Effective Date or during the Term that cover the
         Development, Manufacture, Commercialization or use of the Product in
         the Field.

1.67     "Serono Technology" means Serono Patents, Serono Know-How and Serono's
         rights to and interests in any Joint Technology.

1.68     "Shared Existing Royalties" means all amounts owed by CancerVax under
         Section 4.4 of the Existing Third Party Agreement, but not amounts owed
         by CancerVax under Section 4.3 or any other Section of the Existing
         Third Party Agreement.

1.69     "Target Prescriber" means a subset of those practitioners with
         authority to prescribe a pharmaceutical product or issue hospital
         orders for a pharmaceutical product in the United States as identified
         in the U.S. Commercialization Plan.

1.70     "Term" means the period commencing with the Effective Date and expiring
         as specified in Section 15.1 or as otherwise terminated pursuant to
         ARTICLE 15.

1.71     "Third Party" means a Person who is not a Party or an Affiliate of a
         Party.

1.72     "Third Party License" means any agreement entered into by a Party with
         a Third Party in accordance with Section 2.7, whereby royalties, fees
         or other payments are to be made to the Third Party, but excluding the
         Existing Third Party Agreement and the Other Third Party Agreements.

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1.73     "United States" or "U.S." means the United States of America and its
         states, territories, protectorates and possessions, including the
         District of Columbia, the Commonwealth of Puerto Rico and Guam.

1.74     Other Terms.

"Agreement" shall have the meaning set forth in the first paragraph of this
Agreement.

"Alleged Infringement" shall have the meaning set forth in Section 13.4.1.

"Alliance Manager" shall have the meaning set forth in Section 3.1.

"Auditing Party" shall have the meaning set forth in Section 9.11.2.

"Bankrupt Party" shall have the meaning set forth in Section 15.4.

"Breaching Party" shall have the meaning set forth in Section 15.2.2.

"CancerVax" shall have the meaning set forth in the first paragraph of this
Agreement.

"CancerVax Report" shall have the meaning set forth in Section 9.5.3.

"Code" shall have the meaning set forth in Section 15.4.

"Combination Product" shall have the meaning set forth in Section 1.50.

"Competing Product Notice" shall have the meaning set forth in Section 2.6.5.

"Competing Product Party" shall have the meaning set forth in Section 2.6.5.

"Competing Product Prohibition Period" shall have the meaning set forth in
Section 2.6.1.

"Controlling Party" shall have the meaning set forth in Section 13.3.1.

"Co-Promotion Costs" shall have the meaning set forth in Section 7.6.

"Copyrighted Works" shall have the meaning set forth in Section 14.5.

"Deemed Partnership" shall have the meaning set forth in Section 9.10.3.

"Defaulting Party" shall have the meaning set forth in Section 5.5.

"Detail Requirements" shall have the meaning set forth in Section 7.4.2.

"Determination" shall have the meaning set forth in Section 9.10.1.

"Development Plan" shall have the meaning set forth in Section 4.3.1.

"Development Transfer Plan" shall have the meaning set forth in Section 4.1.

"Differential Expense" shall have the meaning set forth in Section 9.5.4(c).

"Disclosing Party" shall have the meaning set forth in Section 1.23.

"DT" shall have the meaning set forth in Section 3.2.

"Effective Date" shall have the meaning set forth in the first paragraph of this
Agreement.

"Exchange Act" shall have the meaning set forth in Section 17.1.1.

"Force Majeure Event" shall have the meaning set forth in Section 18.5.

"Incurred Shared Expenses" shall have the meaning set forth in Section 9.5.4(a).

"Indemnified Party" shall have the meaning set forth in Section 12.3.1.

"Indemnifying Party" shall have the meaning set forth in Section 12.3.1.

"Internal Detailing Report" shall have the meaning set forth in Section 7.4.3.

                                      -15-
<PAGE>

"Joint Committees" shall have the meaning set forth in Section 3.2.

"Lead Patent Party" shall have the meaning set forth in Section 13.4.2.

"Manufacturing and Supply Agreement" shall have the meaning set forth in Section
8.2.

"Marketing Plan" shall have the meaning set forth in Section 6.2.4.

"Medical Affairs Plan" shall have the meaning set forth in Section 6.2.4.

"Milestone Payment" shall have the meaning set forth in Section 9.2.

"Minimum Sales Representatives" shall have the meaning set forth in Section
7.1.1.

"Negotiating Party" shall have the meaning set forth in Section 2.7.

"New Indication" shall have the meaning set forth in Section 4.6.

"Parties" and "Party" shall have the meanings set forth in the first paragraph
of this Agreement.

"Patent Infringement Claim" shall have the meaning set forth in Section 13.3.1.

"Pharmacovigilance Agreement" shall have the meaning set forth in Section 5.6.3.

"Provisional Development Plan" shall have the meaning set forth in Section
3.3.2.

"Provisional U.S. Commercialization Plan" shall have the meaning set forth in
Section 6.2.2.

"PT" shall have the meaning set forth in Section 3.2.

"Recalls" shall have the meaning set forth in Section 5.7.

"Receiving Party" shall have the meaning set forth in Section 1.23.

"Reconciliation Payment" shall have the meaning set forth in Section 9.5.4(f).

"Reconciliation Report" shall have the meaning set forth in Section 9.5.4.

"Recording Party" shall have the meaning set forth in Section 9.11.1.

"Registration Rights Agreement" shall have the meaning set forth in Section
9.1.2.

"Relinquished Details" shall have the meaning set forth in Section 7.5.1.

"ROW Commercialization Plan" shall have the meaning set forth in Section 6.3.1.

"ROW Report" shall have the meaning set forth in Section 9.5.1.

"Royalties" shall have the meaning set forth in Section 9.4.1.

"Sales Force" shall have the meaning set forth in Section 7.1.1.

"SC" shall have the meaning set forth in Section 3.2.

"SC Establishment Date" shall have the meaning set forth in Section 3.3.1.

"Serono" shall have the meaning set forth in the first paragraph of this
Agreement.

"Serono Report" shall have the meaning set forth in Section 9.5.2.

"Shared Expenses" shall have the meaning set forth in Section 1.32.

"Stock Purchase Agreement" shall have the meaning set forth in Section 9.1.2.

"Tax Matters Partner" shall have the meaning set forth in Section 9.10.4.

"Tax Proceeding" shall have the meaning set forth in Section 9.10.2.

"Technology Transfer Agreement" shall have the meaning set forth in Section
8.2.2.

"Terminating Party" shall have the meaning set forth in Section 15.4.

"Third Party Claim" shall have the meaning set forth in Section 12.3.1.

                                      -16-
<PAGE>

"Total Shared Expenses" shall have the meaning set forth in Section 9.5.4(b).

"U.S. Commercialization Plan" shall have the meaning set forth in Section 6.2.1.

                                    ARTICLE 2
                   LICENSES AND RELATED RIGHTS AND OBLIGATIONS

2.1      License Grants from CancerVax to Serono.

         2.1.1    Technology License. Subject to the terms and conditions of
                  this Agreement, CancerVax hereby grants to Serono a license
                  (with the right to grant sublicenses in accordance with
                  Section 2.3) under the CancerVax Technology to Develop
                  Commercialize, Manufacture or use the Product in the Field
                  anywhere in the world, each of the foregoing solely to the
                  extent necessary to fulfill its obligations, exercise its
                  rights or carry out the activities contemplated under this
                  Agreement.

         2.1.2    Trademark License. Subject to the terms and conditions of this
                  Agreement, CancerVax hereby grants to Serono a license (with
                  the right to grant sublicenses in accordance with Section 2.3)
                  to use the Product Trademarks and the CancerVax Housemark,
                  solely with respect to the Product in the Field, solely to the
                  extent necessary to fulfill its obligations, exercise its
                  rights or carry out the activities contemplated under this
                  Agreement, in accordance with ARTICLE 14.

         2.1.3    Certain Limitations. Serono shall not exercise anywhere in the
                  world its license under Section 2.1.1 to Manufacture the
                  Product except as contemplated under Section 8.2.2 or the
                  Manufacturing and Supply Agreement. Notwithstanding anything
                  to the contrary in this Agreement or the Manufacturing and
                  Supply Agreement, but subject to the last sentence of Section
                  18.10, Serono shall have no right to sublicense or subcontract
                  its right to Manufacture the Product, except in respect of
                  activities undertaken in connection with or following primary
                  packaging of the Product.

         2.1.4    Nature of Rights. The licenses granted to Serono under
                  Sections 2.1.1 and 2.1.2 shall be co-exclusive with CancerVax
                  in the United States and exclusive (even as to CancerVax) in
                  the ROW, each with respect to the Product in the Field;
                  provided, that CancerVax shall retain non-exclusive rights to
                  Develop or Manufacture the Product in the ROW pursuant to
                  Section 2.5.

         2.1.5    Third Party Rights. Subject to the terms and conditions of
                  this Agreement and the Manufacturing and Supply Agreement,
                  CancerVax shall not grant, or allow its Affiliates to grant,
                  to any Third Party any license rights under the CancerVax
                  Technology to Develop, Manufacture, Commercialize or use the
                  Product in the Field except as reasonably necessary and
                  permitted to fulfill its obligations or exercise its rights
                  under this Agreement or the Manufacturing and Supply
                  Agreement, and in no event shall such grant have a material
                  adverse effect on the rights or benefits of Serono hereunder.

                                      -17-
<PAGE>

2.2      License Grants from Serono to CancerVax.

         2.2.1    Technology License. Subject to the terms and conditions of
                  this Agreement, Serono hereby grants to CancerVax a
                  co-exclusive license (with the right to grant sublicenses in
                  accordance with Section 2.3) under the Serono Technology to
                  Develop, Commercialize, Manufacture or use the Product in the
                  Field anywhere in the world, each of the foregoing solely to
                  the extent necessary to fulfill its obligations, exercise its
                  rights or carry out the activities contemplated under this
                  Agreement..

         2.2.2    Freedom to Operate. Subject to the terms and conditions of
                  this Agreement, Serono shall not assert or cooperate with or
                  authorize its Affiliates or any Third Party to assert, any
                  claim for patent infringement based on (a) the
                  Commercialization or Manufacture of the Product or (b) the
                  research, Development or use of the Product anywhere in the
                  world (each of the foregoing except to the extent required to
                  defend an infringement action) in each case to the extent such
                  activities are conducted by CancerVax or its Affiliates,
                  sublicensees, customers, contractors or any others authorized,
                  directly or indirectly, by CancerVax in accordance with the
                  terms and conditions of this Agreement.

         2.2.3    Trademark License. Subject to the terms and conditions of this
                  Agreement, Serono hereby grants to CancerVax a non-exclusive
                  license (with the right to grant sublicenses in accordance
                  with Section 2.3) to use the Serono Housemark, solely with
                  respect to the Product in the Field, solely to the extent
                  necessary to fulfill its obligations, exercise its rights or
                  carry out the activities contemplated under this Agreement, in
                  accordance with ARTICLE 14.

         2.2.4    Third Party Rights. Subject to the terms and conditions of
                  this Agreement and the Manufacturing and Supply Agreement,
                  Serono shall not grant, or allow its Affiliates to grant, to
                  any Third Party any license rights under the Serono Technology
                  to Develop, Manufacture, Commercialize or use the Product in
                  the Field except as reasonably necessary and permitted to
                  fulfill its obligations or exercise its rights under this
                  Agreement or the Manufacturing and Supply Agreement, and in no
                  event shall such grant have a material adverse effect on the
                  rights or benefits of CancerVax hereunder.

2.3      Sublicensing and Subcontracting.

         2.3.1    Certain Sublicense Requirements. Serono may only grant
                  sublicenses with respect to the Commercialization of the
                  Product as provided in this Section 2.3.1. CancerVax may only
                  grant sublicenses as provided in this Section 2.3.1. A
                  sublicensing Party may (a) without the consent of the other
                  Party, grant sublicenses to such Party's Affiliates or
                  commercial distributors, each only to the extent required in
                  the ordinary course of business as conducted with such Party's
                  other products, or (b) with the other Party's consent, such
                  consent not to be unreasonably withheld, conditioned or
                  delayed, as part of a license of rights to the Product in the
                  Field, in each case where the sublicensee has first agreed in
                  writing

                                      -18-
<PAGE>
                  that such sublicensee is subject to the terms and conditions
                  of this Agreement and in the case of clause (b), a copy of the
                  proposed sublicense shall have been provided to the other
                  Party for review (financial terms not relating to this
                  Agreement may be redacted) prior to execution.

         2.3.2    General Application. For all sublicenses under Section 2.3.1,
                  the identity of each sublicensee shall be notified to the
                  other Party and a copy of each sublicense agreement (except
                  those between a Party and its Affiliates) shall be provided to
                  the other Party (financial terms not relating to this
                  Agreement may be redacted) prior to execution. Each Party
                  shall remain strictly liable for any act or omission of any
                  sublicensee or subcontractor (excluding any sublicensee or
                  subcontractor that is the other Party or one of the other
                  Party's Affiliates).

2.4      Know-How Use and Transfer Restrictions.

         2.4.1    Obligations of Serono. Notwithstanding anything to the
                  contrary in this Agreement or any Related Agreement, Serono
                  shall use the CancerVax Know-How solely for purposes of
                  fulfilling its obligations or exercising its rights under this
                  Agreement, and not for any other use or purpose, without the
                  prior express written consent of CancerVax. Furthermore,
                  except as otherwise expressly provided in this Agreement,
                  Serono (a) shall not transfer or provide access to the
                  CancerVax Know-How to any Third Party and (b) shall limit
                  access to the CancerVax Know-How to those of its employees,
                  advisors or agents who have a need to know in connection with
                  the fulfillment of its obligations or the exercise of its
                  rights under this Agreement.

         2.4.2    Obligations of CancerVax. Notwithstanding anything to the
                  contrary in this Agreement or any Related Agreement, CancerVax
                  shall use the Serono Know-How solely for purposes of
                  fulfilling its obligations or exercising its rights under this
                  Agreement, and not for any other use or purpose, without the
                  prior express written consent of Serono. Furthermore, except
                  as otherwise expressly provided in this Agreement, CancerVax
                  (a) shall not transfer or provide access to the Serono
                  Know-How to any Third Party and (b) shall limit access to the
                  Serono Know-How to those of its employees, advisors or agents
                  who have a need to know in connection with the fulfillment of
                  its obligations or the exercise of its rights under this
                  Agreement.

2.5      No Implied License; Retained Rights. Nothing in this Agreement shall be
         deemed to constitute the grant of any license or other right to either
         Party in respect of any intellectual property of the other Party,
         except as expressly set forth herein, and no license rights shall be
         created hereunder by implication, estoppel or otherwise. Neither Party
         shall represent to any Third Party that it enjoys or exercises any
         proprietary or property right or otherwise has any other right, title
         or interest in the intellectual property of the other Party except for
         such rights as are expressly set forth herein. Any rights of a Party
         not expressly granted to the other Party under the provisions of this
         Agreement shall be retained by such Party. In addition, each Party
         shall retain rights in its

                                      -19-
<PAGE>
         intellectual property to the extent necessary for it to carry out the
         activities contemplated under this Agreement.

2.6      Exclusivity.

         2.6.1    Restrictions on Serono's Commercialization. [***] (such
                  period, the "Competing Product Prohibition Period"), neither
                  Serono nor any of its Affiliates shall Commercialize a
                  Competing Product, or assist or cooperate with any Person in
                  any way in connection with such Commercialization. If,
                  following the Competing Product Prohibition Period, Serono or
                  any of its Affiliates Commercializes a Competing Product, or
                  assists or cooperates with any Person in any way in connection
                  with such Commercialization, CancerVax may terminate this
                  Agreement and the Manufacturing and Supply Agreement upon
                  thirty (30) days' prior written notice; provided, that Serono
                  shall, at CancerVax's election, to be made within thirty (30)
                  days following delivery of such notice of termination to
                  Serono, continue to supply the Product to CancerVax, its
                  Affiliate or designee, to the extent that Serono is supplying
                  Product for Commercialization in the ROW, for a period of
                  [***] at [***].

         2.6.2    [***]

         2.6.3    Restrictions on CancerVax's Commercialization. During the
                  Competing Product Prohibition Period, neither CancerVax nor
                  any of its Affiliates shall Commercialize a Competing Product,
                  or assist or cooperate with any Person in any way in
                  connection with such Commercialization. If, following the
                  Competing Product Prohibition Period, CancerVax or any of its
                  Affiliates Commercializes a Competing Product, or assists or
                  cooperates with any Person in any way in connection with such
                  Commercialization, subject to Serono providing thirty (30)
                  days' prior written notice to CancerVax and to Serono's
                  payment to CancerVax [***] (a) CancerVax shall no longer have
                  any rights or responsibilities under Sections 6.1.1, 6.1.2 and
                  6.2 and ARTICLE 7, (b) the PT will be disbanded, (c) the DT
                  will cease to have responsibilities under Section 3.4.3(d) and
                  (d) the dispute resolution provisions under Section 16.1 [***]

         2.6.4    Effect of Invalidity. In the event of the invalidity or
                  unenforceability under Law of Section 2.6.1 or 2.6.3, the
                  Parties agree that such invalidity shall not affect the
                  validity of the remaining provisions of this Agreement.

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         2.6.5    [***]

2.7      Third Party Licenses.

         2.7.1    Determination; Negotiation; Entry. In the event either Party
                  reasonably determines that a Third Party License may be
                  required anywhere in the world because, but for such license,
                  the Development, Manufacture, Commercialization or use of the
                  Product would infringe on a Third Party's Patent Rights, it
                  shall promptly notify the SC. If the SC determines it is a
                  reasonable course of action to seek to enter into such Third
                  Party License (taking into account factors that include the
                  likelihood and presumption of validity of a Third Party's
                  Patent Rights from a practical and legal standpoint in the
                  relevant country, the cost of obtaining a Third Party License
                  and the risks of not obtaining such Third Party License), it
                  shall so notify the Parties in writing, designating a lead
                  Party to negotiate such Third Party License, which party shall
                  be the Controlling Party if a Controlling Party has already
                  been designated pursuant to Section 13.3.1 (the "Negotiating
                  Party"). Upon the decision of the SC, the Negotiating Party
                  shall enter into good faith discussions with such Third Party
                  in order to obtain such Third Party License to such Patent
                  Rights, in close consultation with the SC. The final terms and
                  conditions of any Third Party License [***] Unless otherwise
                  agreed by the Parties, the Negotiating Party shall enter into
                  the Third Party License.

         2.7.2    Unavailability of Third Party License. If such a Third Party
                  License is unavailable or its terms are unacceptable to either
                  Party, then [***]

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                                    ARTICLE 3
                            COLLABORATION MANAGEMENT

3.1      Alliance Manager. Promptly, but in no event later than ten (10)
         Business Days, following the Effective Date, each of CancerVax and
         Serono shall appoint a representative (and may replace or temporarily
         substitute such representative at its sole discretion) who possesses a
         general understanding of the collaboration to act as its contact person
         and alliance manager ("Alliance Manager"). Each Alliance Manager shall
         be charged with serving as a contact point for the other Party and
         coordinating and maintaining a collaborative work environment within
         and among the Parties.

3.2      Committees. The collaboration under this Agreement shall generally be
         conducted under the supervision of a Steering Committee ("SC") as
         described in Section 3.3, a Development Team ("DT") as described in
         Section 3.4, a Product Team ("PT") as described in Section 3.5, and, as
         and when appropriate, such other committees or teams as may be
         reasonably necessary or advisable from time to time, as determined and
         established by the SC (the SC, DT, PT and other committees and teams
         collectively, the "Joint Committees"). The following provisions shall
         apply to all the Joint Committees:

         3.2.1    Structure. Each Party shall appoint its respective
                  representatives to the Joint Committees from time to time, and
                  may replace or temporarily substitute one or more of its
                  representatives at its sole discretion, effective upon notice
                  to the other Party. Each of these representatives shall have
                  appropriate technical credentials, experience, knowledge and
                  decision-making authority, and shall maintain ongoing
                  familiarity with the collaboration hereunder. The Parties
                  shall cause their respective representatives on the Joint
                  Committees to use diligent efforts, acting in good faith, to
                  resolve all matters presented to them as expeditiously as
                  possible. Each Joint Committee shall have two (2)
                  co-chairpersons, one (1) of which shall be designated by
                  CancerVax and one (1) of which shall be designated by Serono.
                  All decisions of a committee shall be by unanimous vote of its
                  co-chairpersons, each co-chairperson having one (1) vote,
                  subject to Section 3.2.4. Each Joint Committee may elect a
                  secretary for the purposes of maintaining minutes in
                  accordance with Section 3.2.3.

         3.2.2    Meetings. Once established, the chairpersons of each Joint
                  Committee shall call meetings once every Calendar Quarter or
                  more frequently as reasonably requested by one of the Parties;
                  provided, that the SC shall meet upon demand of either Party.
                  Meetings may be held in person, by telephone or by video
                  conference call, and the location of each meeting shall be as
                  agreed by the Parties. Each Party shall be entitled to invite
                  additional representatives or consultants to attend meetings
                  where appropriate, subject to advance written notice to the
                  other Party and no reasonable objection by such Party and, to
                  the extent such representative or consultant is not an
                  employee of such Party or such Party's Affiliate, to written

                                      -22-
<PAGE>
                  agreement of such individual to comply with the
                  confidentiality provisions of this Agreement.

         3.2.3    Meeting Minutes. Minutes of each Joint Committee meeting shall
                  be finalized and distributed no later than thirty (30) days
                  after such meeting. The chairpersons of such committee shall
                  each review and approve the final minutes prior to issuance.
                  Any differences of opinion regarding decisions or
                  recommendations on the part of the respective co-chairs shall
                  be duly noted as such. Minutes will be deemed approved unless
                  either of the co-chairs of the relevant Joint Committee
                  objects to the accuracy of such minutes by providing written
                  notice to the other members of such Joint Committee and the
                  Alliance Managers within fourteen (14) days of receipt of such
                  minutes. In the event of any such objection that is not
                  resolved by such Joint Committee (mediated to the extent
                  necessary by the Alliance Managers), such minutes will be
                  amended to reflect such unresolved dispute.

         3.2.4    [***]

3.3      Steering Committee.

         3.3.1    Structure. Unless otherwise agreed by the Parties, the SC
                  shall consist of eight (8) members in total, with an equal
                  number of members from each of Serono and CancerVax. Each of
                  Serono and CancerVax shall notify the other as to its
                  designees, who shall all be senior executives of their
                  respective designating Parties. The Parties shall notify each
                  other as to their respective initial designees within thirty
                  (30) days following the Effective Date, and the SC shall be
                  deemed to be established on the date by which each Party shall
                  have notified the other Party as to their respective initial
                  designees (the "SC Establishment Date"). [***]

         3.3.2    First Meeting. The first meeting of the SC shall occur as soon
                  as reasonably practicable following the SC Establishment Date,
                  but in no event later than thirty (30) days following the SC
                  Establishment Date, unless agreed otherwise by the Parties.
                  The principal purpose of this initial meeting shall be to (a)
                  review the current status of Development of the Product, (b)
                  approve a provisional Development Plan provided to it by
                  CancerVax (the "Provisional Development Plan") and (c)
                  constitute and designate the members of the DT.

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         3.3.3    Responsibilities. The SC shall be responsible for:

                  (a)      setting the overall Product Development strategy, the
                           Product Commercialization strategy for the United
                           States, and monitoring and ensuring the compatibility
                           of the global Product Commercialization strategy;

                  (b)      generally overseeing the Product Development,
                           Manufacture and Commercialization efforts of the
                           Parties, including establishment and oversight of the
                           other Joint Committees;

                  (c)      approving the Provisional Development Plan;

                  (d)      reviewing and approving the Development Plan and U.S.
                           Commercialization Plan (including their respective
                           budgets) and reviewing and commenting on the ROW
                           Commercialization Plan

                  (e)      consulting with CancerVax regarding Recalls in the
                           United States for safety reasons or mandated by
                           Governmental Authorities and approving voluntary
                           Recalls in the United States, in each case pursuant
                           to Section 5.7;

                  (f)      approving deviations from Development Plan pursuant
                           to Section 4.3.3 or Commercialization Plan budget
                           pursuant to Section 6.2.3 during the Calendar Year;

                  (g)      the resolution of issues referred to it by the other
                           Joint Committees and other disputes in accordance
                           with Section 3.2.4; and

                  (h)      performing such other functions as appropriate to
                           further the purposes of this Agreement as determined
                           by the Parties, including periodic review of
                           performance against goals.

         3.3.4    Authority. Nothing herein shall limit the authority of the SC
                  to meet and discuss the progress of the collaboration at their
                  mutual convenience.

3.4      Development Team. The DT shall be responsible for designing and
         implementing all Development and Manufacturing activities for the
         Product leading to Approvals and throughout the Product's lifecycle,
         subject to oversight of the SC.

         3.4.1    Structure. The DT shall consist of a number of members to be
                  agreed upon by the SC from time to time, with an equal number
                  of members to be designated by each Party. The SC shall
                  designate such members, who shall be employees of their
                  respective Parties in the areas of: research and development,
                  manufacturing, commercial and regulatory affairs. The SC shall
                  agree upon the number of members of the DT and designate the
                  initial members at the initial meeting of the SC. [***]

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         3.4.2    First Meeting. The first meeting of the DT shall occur as soon
                  as reasonably practicable following designation of its members
                  in accordance with Section 3.4.1, but in no event later than
                  thirty (30) days following such designation, unless agreed
                  otherwise by the Parties. The purpose of this initial meeting
                  shall be to (a) review the current status of Development of
                  the Product and (b) agree on a timeline for finalizing the
                  Development Plan (and associated budget) in accordance with
                  Section 4.3.2.

         3.4.3    Responsibilities. The DT shall be responsible for:

                  (a)      developing and implementing the Development Transfer
                           Plan in accordance with Section 4.1;

                  (b)      coordinating day-to-day Development activities
                           relating to the Product and allocating Product
                           Development tasks between the Parties;

                  (c)      preparing the Development Plan and monitoring
                           progress against the Development Plan and actual
                           costs against budgeted costs;

                  (d)      making recommendations to include within the
                           Development Plan the development of any New
                           Indication for the Product;

                  (e)      providing forecasts of Product requirements for
                           Development purposes, including second source needs
                           and inventory levels; and

                  (f)      performing such other functions as appropriate to
                           further the purposes of this Agreement as determined
                           by the SC, including periodic review of performance
                           against goals.

3.5      Product Team. The PT shall be responsible for (a) planning and
         implementing all Commercialization activities for the Product in the
         United States and (b) designing and implementing all post-Approval
         clinical and medical development activities for the Product, in each
         case subject to oversight of the SC.

         3.5.1    Structure. The PT shall consist of a number of members to be
                  agreed upon by the SC from time to time, with an equal number
                  of members to be designated by each Party. The SC shall
                  designate such members, who shall be commercial, regulatory,
                  marketing and medical managers of their respective Parties.
                  The SC shall designate the initial members within ninety (90)
                  days following the Effective Date. [***]

         3.5.2    First Meeting. The first meeting of the PT shall occur as soon
                  as reasonably practicable following designation of its members
                  in accordance with Section 3.5.1, but in no event later than
                  thirty (30) days following such designation, unless agreed
                  otherwise by the Parties.

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         3.5.3    Responsibilities. The PT shall be responsible for the
                  following:

                  (a)      serving as a forum for the coordination of the global
                           Product Commercialization, the goal of which is a
                           uniform global marketing message for the Product;

                  (b)      preparing the U.S. Commercialization Plan, including
                           the Marketing Plan and the Medical Affairs Plan (and
                           their respective budgets), and maintaining forecast
                           budgets for the next two (2) succeeding Calendar
                           Years;

                  (c)      making recommendations to include within the U.S.
                           Commercialization Plan the development of any new
                           product presentation, formulation or usage for the
                           Product;

                  (d)      providing forecasts of commercial supply requirements
                           for the Product in the United States, including,
                           subject to the Manufacturing and Supply Agreement,
                           optimal inventory levels and safety stock targets;

                  (e)      monitoring progress of the Parties' activities
                           against the U.S. Commercialization Plan and actual
                           U.S. Commercialization Plan costs against budgeted
                           U.S. Commercialization Plan costs;

                  (f)      reviewing the ROW Commercialization Plan;

                  (g)      coordinating with the DT with respect to regulatory
                           issues and future Product Development activities to
                           be undertaken pursuant to the Development Plan;

                  (h)      developing positioning and market strategies
                           consistent with the U.S. Commercialization Plan, and
                           developing advertising and Promotional Materials,
                           designing packaging (in cooperation with the DT), and
                           planning and overseeing educational and professional
                           symposia and speaker programs for the Product in the
                           United States; and

                  (i)      performing such other functions as appropriate to
                           further the purposes of this Agreement as determined
                           by the SC, including periodic reviews of performance
                           against goals.

                                   ARTICLE 4
                             DEVELOPMENT OF PRODUCT

4.1      Development Transfer Plan.  [***]

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4.2      Development Activities. In preparing the Development Plan, the DT will
         allocate Product Development tasks in a manner designed to expedite the
         Development of the Product and to reflect, on a territorial basis, the
         Parties' respective rights and responsibilities for the
         Commercialization of the Product. Each Party will use Commercially
         Reasonable Efforts to accomplish the tasks that it is assigned under
         the Development Plan. The Parties recognize that Serono and CancerVax
         may mutually benefit from designing clinical trials and conducting
         other Product Development activities in a manner that optimizes their
         usefulness throughout the world, and each Party will use Commercially
         Reasonable Efforts to achieve this result. In no event, without the
         consent of the SC, shall either Party adopt a Product Development
         strategy that would reasonably be expected to cause a material adverse
         effect on the other Party's Development of the Product. If the DT
         determines that such a material adverse effect would reasonably be
         expected to occur, then the DT shall prepare a proposal designed to
         minimize any such material adverse effect across the entire world in a
         manner consistent with the terms of this Agreement, with priority given
         to minimizing the effect on those countries that have the most
         significant commercial value or potential. Such proposal shall be
         subject to review and approval by the SC.

4.3      Development Plan.

         4.3.1    Purpose. The DT shall prepare a written plan for such
                  worldwide Product Development efforts (including clinical
                  trials, other than Phase IV Clinical Trials, and target
                  product profiles), which shall set forth the annual work plan
                  and budget (as further described in Section 4.5.1) and shall
                  assign responsibilities to the Parties, subject to the
                  principles set forth in Section 4.2 and any allocation of
                  responsibilities set forth in this Agreement (as agreed,
                  approved and amended from time to time pursuant hereto, the
                  "Development Plan"). For clarity, unless the context clearly
                  indicates to the contrary, references herein to the
                  "Development Plan" shall mean the Provisional Development Plan
                  or the then-current Development Plan, as the case may be.

         4.3.2    Provisional Development Plan. At the first meeting of the DT,
                  CancerVax shall present to the DT the Provisional Development
                  Plan previously approved by the

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                  SC, and the DT shall review the Provisional Development Plan
                  and, within thirty (30) days of such meeting, or such other
                  period of time as may be required and agreed by the co-chairs,
                  shall make any revisions to the Provisional Development Plan
                  as it may deem necessary. Such revised Provisional Development
                  Plan shall be submitted by the DT to the SC. The SC shall,
                  within thirty (30) days of receipt of such revised Provisional
                  Development Plan, meet to review, modify (as it may deem
                  necessary) and approve such revised Provisional Development
                  Plan, which thereafter shall become the Development Plan.
                  [***]

         4.3.3    Changes to Development Plan. The Development Plan shall be
                  subject to ongoing revision through the normal activity of the
                  DT; provided, that any change or addition to the Development
                  Plan that, either alone or together with any other change(s)
                  made to the Development Plan by the DT since the last formal
                  approval of the Development Plan by the SC, would result in a
                  change in the overall Development Plan budget last formally
                  approved by the SC, or in Development Expenses to be incurred
                  in any Calendar Year, [***]

4.4      Development Efforts.

         4.4.1    Efforts. Each of CancerVax and Serono shall use Commercially
                  Reasonable Efforts to execute and perform, or cause to be
                  performed, the activities assigned to it in the Development
                  Plan or under this Agreement, and to cooperate with the other
                  Party in carrying out the Development Plan, in each case in
                  good scientific manner and in compliance with all Laws
                  (including good clinical and laboratory practices).

         4.4.2    Progress Reports. Each Party shall receive regular updates on
                  Product Development activities through the direct
                  participation of its members of the DT and circulation of DT
                  meeting minutes. In addition, each Party shall separately
                  notify the other Party in a timely fashion of any anticipated
                  or actual deviation from timelines set forth in the
                  Development Plan.

         4.4.3    Right to Audit. Each Party shall (a) use Commercially
                  Reasonable Efforts to ensure that the other Party's authorized
                  representatives, to the extent not prohibited by Law, upon
                  reasonable advance notice and no more frequently than twice
                  per Calendar Year, and (b) ensure that Governmental
                  Authorities, to the extent required by Law, may, in each case
                  during regular business hours, (x) examine and inspect the
                  facilities of such Party (or, subject to any Third Party
                  confidentiality restrictions or obligations, of any
                  subcontractor or sublicensee used by it) used in Development
                  of the Product and (y) inspect all its (or, subject to Law and
                  any Third Party confidentiality restrictions or obligations,
                  any

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                                      -28-
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                  subcontractor's or sublicensee's) data, documentation and work
                  product generated in the Development of the Product, including
                  medical records of any patient participating in any clinical
                  study, subject to such Party's record retention policies then
                  in effect. For clarity, financial audits shall be governed by
                  Section 9.11.

4.5      Development Funding.

         4.5.1    Development Budget. The Development budget for the Product
                  shall be set forth in the Development Plan and shall be
                  sufficient to fund Product Development. The Development budget
                  for the current and the next two (2) succeeding Calendar Years
                  shall be specified in detail; provided, that the budgets for
                  the next two (2) succeeding Calendar Years need only be good
                  faith estimates.

         4.5.2    Sharing of Development Expenses. The Parties shall, pursuant
                  to the mechanism provided in Section 9.5.4, share equally all
                  Development Expenses. Each Party shall charge all such
                  expenses incurred to a separate account created by it on its
                  books and records solely for the purpose of tracking
                  Development Expenses for the Product. Financial audits shall
                  be governed by Section 9.11.

4.6      Certain Clinical Trials.

         4.6.1    Development of Additional Indications Outside the Development
                  Plan. Notwithstanding anything to the contrary in this
                  Agreement, the Development Plan will not include Product
                  Development activities for any indication(s) in the Field
                  other than [***] (a "New Indication"), unless and until the
                  Development of a New Indication has been [***]

         4.6.2    Unilateral Clinical Trials By CancerVax. Notwithstanding
                  anything to the contrary in this Agreement, in the event
                  CancerVax wishes to conduct a clinical trial for the Product
                  [***]

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         4.6.3    Unilateral Clinical Trials By Serono. Notwithstanding anything
                  to the contrary in this Agreement, in the event Serono wishes
                  to conduct a clinical trial for the Product [***]

                                    ARTICLE 5
                               REGULATORY MATTERS

5.1      Access to Data; Notice; Comments. Each Party shall have access to all
         data generated pursuant to the Development Plan or contained or
         referenced in regulatory submissions or applications for Approvals
         (e.g., INDs, BLAs and their foreign counterparts), including all
         reports, correspondence and conversation logs, in each case to the
         extent reasonably necessary or useful to either Party in the
         fulfillment of its obligations or exercise of its rights under this
         Agreement to Develop, Manufacture or Commercialize the Product. Each
         Party shall provide appropriate notification of such right of the other
         Party to the Governmental Authorities. Each Party agrees to consider
         all comments provided pursuant to this ARTICLE 5 in good faith, taking
         into account the best interest of the Product on a global basis,
         subject to legal, moral and financial considerations.

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5.2      Clinical Trial Data. All clinical data, database information and
         reports related to clinical trials for the Product for [***] and all of
         Serono's rights to use such data and reports shall terminate upon the
         termination or expiration of this Agreement. All such data and reports
         shall be centralized and held at a location to be chosen by the DT,
         with a duplicate set available to each Party for deposit at a site of
         its own selection. The Parties will have equal access to such data and
         reports, and neither Party shall be entitled to access any data that is
         not available at the same time to the other Party (e.g., access to
         unblinded data from an ongoing, blinded clinical trial).

5.3      Filings with Governmental Authorities. CancerVax will be responsible
         for and will use Commercially Reasonable Efforts in applying for,
         obtaining, supporting and maintaining Approvals for the Product in the
         United States and Serono will be responsible for and will use
         Commercially Reasonable Efforts in applying for, obtaining, supporting
         and maintaining Approvals for the Product in the ROW. Upon reasonable
         request by the responsible Party, the other Party shall use
         Commercially Reasonable Efforts to assist the responsible Party in
         applying for, obtaining, supporting and maintaining the Approvals for
         the Product for which the responsible Party is responsible. The
         responsible Party will be the owner of any Approvals received by it for
         the Product. Upon receipt of an Approval for the Product, the
         responsible Party shall have authority and responsibility to and will
         use Commercially Reasonable Efforts to maintain and seek appropriate
         revisions of the conditions, if applicable, of each such Approval.

5.4      Communication with Governmental Authorities. In connection with the
         Development, Manufacture and Commercialization of the Product, and in
         accordance with the Development Plan and subject to the oversight of
         the SC, except as otherwise provided in the Manufacturing and Supply
         Agreement:

         5.4.1    In the United States. CancerVax shall be responsible for and
                  act as the sole point of contact for communications with
                  Governmental Authorities in the United States. Any
                  correspondence directed to Serono from Governmental
                  Authorities in the United States shall promptly, but in no
                  event more than two (2) Business Days after such receipt or
                  contact, be forwarded to CancerVax for coordination of
                  response. Subject to the provisions of the Pharmacovigilance
                  Agreement, Serono shall not, without the consent of CancerVax
                  (which consent shall not be unreasonably withheld or delayed),
                  correspond or communicate with any Governmental Authority in
                  the United States concerning the Product, or otherwise take
                  any action with any Governmental Authority in the United
                  States concerning any Approval under which the Product is sold
                  or any application for the same, except as may be required by
                  Law (and then only pursuant to the terms of this Section
                  5.4.1, Section 5.5 and the Pharmacovigilance Agreement to the
                  extent reasonably possible). Furthermore, Serono shall,
                  promptly upon receipt of any contact with or communication
                  from any Governmental Authority relating to the Product, but
                  in no event more than two (2) Business Days after such receipt
                  or

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                                      -31-
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                  contact, forward a copy or description of the same to
                  CancerVax and respond to all reasonable inquiries by CancerVax
                  relating thereto. If Serono is advised by its counsel that it
                  must communicate with any Governmental Authority in the United
                  States concerning the Product notwithstanding the first
                  sentence of this Section 5.4.1, then Serono shall promptly,
                  but in no event more than two (2) Business

                  Days later, advise CancerVax of the same and provide CancerVax
                  in advance with a copy of any proposed written communication
                  with such Governmental Authority and comply with any and all
                  reasonable requests of CancerVax concerning any meeting or
                  written or oral communication with such Governmental
                  Authority.

         5.4.2    In the ROW. Serono (or one of its Affiliates) shall be
                  responsible for and act as the sole point of contact for
                  communications with Governmental Authorities in the ROW. Any
                  correspondence directed to CancerVax from Governmental
                  Authorities in the ROW shall promptly, but in no event more
                  than two (2) Business Days after such receipt or contact, be
                  forwarded to Serono for coordination of response. Subject to
                  the provisions of Section 5.5 and the Pharmacovigilance
                  Agreement, CancerVax shall not, without the consent of Serono
                  (which consent shall not be unreasonably withheld or delayed),
                  correspond or communicate with any Governmental Authority in
                  the ROW concerning the Product, or otherwise take any action
                  with any Governmental Authority in the ROW concerning any
                  Approval under which the Product is sold or any application
                  for the same, except as may be required by Law (and then only
                  pursuant to the terms of this Section 5.4.2, Section 5.5 and
                  the Pharmacovigilance Agreement to the extent reasonably
                  possible). Furthermore, CancerVax shall, promptly upon receipt
                  of any contact with or communication from any Governmental
                  Authority relating to the Product, but in no event more than
                  two (2) Business Days after such receipt or contact, forward a
                  copy or description of the same to Serono and respond to all
                  reasonable inquiries by Serono relating thereto. If CancerVax
                  is advised by its counsel that it must communicate with any
                  Governmental Authority in the ROW concerning the Product
                  notwithstanding the first sentence of this Section 5.4.2, then
                  CancerVax shall promptly, but in no event more than two (2)
                  Business Days later, advise Serono of the same and provide
                  Serono in advance with a copy of any proposed written
                  communication with such Governmental Authority and comply with
                  any and all reasonable requests of Serono concerning any
                  meeting or written or oral communication with such
                  Governmental Authority.

         5.4.3    Certain Obligations. The Party responsible for communications
                  with and to any Governmental Authority relating to the Product
                  shall issue a report to the other Party within five (5)
                  Business Days after completion of each Calendar Quarter,
                  apprising the other Party of all material regulatory
                  communications with Governmental Authorities relating to the
                  Product for such Calendar Quarter. In the event that the other
                  Party desires to discuss any such regulatory communication,
                  the other Party may, from time to time, discuss such matters
                  with the responsible Party's regulatory department or through
                  the Joint Committees. In addition and subject to Section
                  5.6.2, the Party responsible for preparing

                                      -32-
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                  communications with and to any Governmental Authority shall
                  (a) provide the DT with a copy of any material documents to be
                  submitted to, and correspondence with, Governmental
                  Authorities, sufficiently in advance of the intended
                  submission dates to enable the DT to review and provide
                  recommendations to the submitting Party concerning the content
                  thereof and (b) within five (5) Business Days after completion
                  of any inspections by any Governmental Authority with respect
                  to the Product, provide to the other Party a summary of such
                  inspection, the outcome and, as soon as available, any
                  corrective actions, all to the extent related directly and
                  solely to the Product.

         5.4.4    Participation in U.S. Meetings. Serono will have the right to
                  identify up to two (2) mutually acceptable representatives to
                  participate as an observer in all material meetings and other
                  contact with the Governmental Authorities pertaining to the
                  Product in the United States. To the extent reasonably
                  possible, CancerVax shall provide Serono with reasonable
                  advance notice of all such meetings and other contact and
                  advance copies of all related documents and other relevant
                  information relating to such meetings or other contact.

         5.4.5    Participation in ROW Meetings. CancerVax will have the right
                  to identify up to two (2) mutually acceptable representatives
                  to participate as an observer in all material meetings and
                  other contact with the Governmental Authorities pertaining to
                  the Product in the ROW. To the extent reasonably possible,
                  Serono shall provide CancerVax with reasonable advance notice
                  of all such meetings and other contact and advance copies of
                  all related documents and other relevant information relating
                  to such meetings or other contact.

5.5      Step-In Rights. In the event that either Party fails to use
         Commercially Reasonable Efforts to seek or maintain any Approval in any
         country as provided in the Development Plan or either Commercialization
         Plan (such Party, the "Defaulting Party"), in addition to any other
         rights or remedies that the other Party may have, such Party shall have
         the right to seek or maintain such Approval, either in such Party's or
         the Defaulting Party's name, upon sixty (60) days prior written notice
         to the Defaulting Party. In such event, the Defaulting Party shall
         cooperate with the other Party's efforts to seek or maintain such
         Approval in such country and, if necessary, shall designate the other
         Party as its agent for such purpose; provided, that if the Defaulting
         Party provides the other Party with assurances reasonably satisfactory
         to the other Party of such Defaulting Party's plan for immediately
         resuming Commercially Reasonable Efforts to seek or maintain such
         Approval within such sixty (60) day period, then the other party shall
         not undertake such efforts to obtain such Approval for so long as the
         Defaulting Party continues to use Commercially Reasonable Efforts to
         seek or maintain such Approval.

5.6      Regulatory Information.

         5.6.1    Assistance. Each Party agrees to provide the other Party (at
                  the first Party's expense) with all reasonable assistance and
                  take all actions reasonably requested by the other Party that
                  are reasonably necessary to enable the other Party to comply
                  with any Laws applicable to the Product, including each Party
                  meeting its

                                      -33-
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                  reporting and other obligations to maintain and update any
                  Approvals for the Product.

         5.6.2    Notice. Each Party shall provide the other Party with notice,
                  within twenty-four (24) hours, of notification or other
                  information which it receives (directly or indirectly) from,
                  any Governmental Authority (and providing, as soon as
                  reasonably possible, copies of any associated written
                  requests) that (a) raises any material concerns regarding the
                  safety or efficacy of the Product, (b) indicates or suggests a
                  Claim of a Third Party arising in connection with the Product
                  or (c) is reasonably likely to lead to a Recall; provided,
                  that neither Party shall be obliged to disclose information in
                  breach of any contractual restriction that it could not
                  reasonably have avoided. Information that shall be disclosed
                  (to the extent it relates to the subject matter of clauses (a)
                  through (c), inclusive) pursuant to this Section 5.6.1 shall
                  include:

                  (a)      inspections by a Governmental Authority of
                           Manufacturing, distribution or other related
                           facilities concerning the Product;

                  (b)      inquiries by a Governmental Authority concerning
                           clinical investigation activities (including
                           inquiries of investigators, clinical monitoring
                           organizations and other related parties) with respect
                           to the Product;

                  (c)      any material communication (in any form, including
                           written, oral or electronic form) from a Governmental
                           Authority involving the Manufacture or
                           Commercialization of the Product, or any other
                           Governmental Authority reviews or inquiries relating
                           to a any event set forth in this Section 5.6.1;

                  (d)      an initiation of any Governmental Authority
                           investigation, detention, seizure, or injunction
                           concerning the Product; and

                  (e)      any other regulatory action (e.g., proposed labeling
                           or other registrational dossier changes and Recalls)
                           which would affect the Product in any country.

         5.6.3    Exchange of Drug Safety Information. As soon as reasonably
                  necessary, the Parties shall enter into a Pharmacovigilance
                  and Global Safety Reporting Agreement reasonably acceptable to
                  both Parties in respect of the Product (the "Pharmacovigilance
                  Agreement"). Each Party shall ensure that, in the Development,
                  Manufacture or Commercialization of the Product, it and each
                  of its respective Affiliates will record, investigate,
                  summarize and review all Adverse Drug Experiences in
                  accordance with Law and the Pharmacovigilance Agreement. Each
                  Party shall require that such Affiliates (a) adhere to all
                  requirements of Laws which relate to the reporting and
                  investigation of Adverse Drug Experiences and (b) keep such
                  Party informed of such events. The Pharmacovigilance Agreement
                  will provide that CancerVax shall be responsible for
                  maintenance of the global safety database and global safety
                  monitoring, except
                                      -34-
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                  to the extent prohibited by Law; provided, that any
                  communication or notification of a Government Authority
                  arising from such monitoring or maintaining the global safety
                  database will be reviewed by the SC prior to such
                  communication or notification and subject to Section 5.4.

5.7      Recalls. CancerVax, in close consultation with the SC and the CEOs of
         both Parties, shall make any decisions with respect to any recall,
         market withdrawals or any other corrective action related to the
         Product (collectively, "Recalls") in the United States for safety
         reasons or as may be mandated by Governmental Authorities in the United
         States, and shall have responsibility for executing such Recalls.
         Serono, in close consultation with the SC and the CEOs of both Parties,
         shall make all decisions with respect to Recalls in the ROW for safety
         reasons or as may be mandated by Governmental Authorities in the ROW,
         and shall have responsibility for executing such Recalls. The SC shall
         make any decisions with respect to any Recalls in the United States or
         the ROW for any other reason (i.e., voluntary Recalls), and, unless
         otherwise agreed by the Parties, CancerVax shall have responsibility
         for executing such Recalls in the United States and Serono shall have
         the responsibility for executing such Recalls in the ROW. Each Party
         shall promptly notify the other Party of any decision by such Party to
         conduct any Recalls for safety reasons or as mandated by Governmental
         Authorities; provided, that, if reasonably practicable, such notice
         shall occur prior to such action so as to permit the notified Party a
         reasonable opportunity to consult with the notifying Party with respect
         thereto. Each Party shall promptly notify the other Party of any
         recommendation by such Party to conduct a Recall for any other reason,
         for consideration by the SC.

5.8      Events Affecting Integrity or Reputation. The Parties shall notify each
         other immediately of any circumstances of which they are aware and
         which could impair the integrity and reputation of the Product or if a
         Party is threatened by the unlawful activity of any Third Party in
         relation to the Product, which circumstances shall include, by way of
         illustration, deliberate tampering with or contamination of the Product
         by any Third Party as a means of extorting payment from the Parties or
         another Third Party. In any such circumstances, the Parties shall use
         Commercially Reasonable Efforts to limit any damage to the Parties or
         to the Product. The Parties shall promptly call a SC meeting to discuss
         and resolve such circumstances.

5.9      Medical Inquiries. Serono shall be responsible for responding to
         medical inquiries and for developing, in consultation with CancerVax
         medical affairs personnel, standardized medical information letters as
         soon as practicable after new scientific or clinical information
         becomes available. Serono will provide electronic copies of all final
         medical information letters to CancerVax simultaneously with providing
         such letters to Serono's own Sales Force. Serono shall identify to
         CancerVax the Person or Persons to whom CancerVax and its Affiliates
         shall refer all medical questions or inquiries from members of the
         medical and paramedical professions and consumers regarding the
         Product. As soon as reasonably necessary, Serono shall, in consultation
         with CancerVax medical affairs personnel, develop a set of standard
         operating procedures for responding promptly to medical questions or
         inquiries from members of the medical and paramedical professions and
         consumers relating to the Product. In addition, Serono will ensure that
         it
                                      -35-
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         has or will develop processes to train personnel to respond
         consistently to such questions or inquiries.

5.10     Pricing and Reimbursement. [***]

5.11     Costs. Except as otherwise expressly provided in this ARTICLE 5, [***]

                                    ARTICLE 6
                                COMMERCIALIZATION

6.1      Commercialization Activities.

         6.1.1    Promotion. The Parties shall Co-Promote the Product in the
                  United States in accordance with ARTICLE 7. Serono shall be
                  responsible for Commercializing the Product in the ROW in its
                  sole discretion, subject to this Agreement, including Section
                  6.3.5 and ARTICLE 14.

         6.1.2    Booking, Processing and Distribution. Serono shall have the
                  sole right and responsibility to (a) receive and accept orders
                  for the Product from customers in the ROW, (b) distribute the
                  Product to customers in the ROW, (c) control invoicing and
                  collection of accounts receivable for Product sales in the
                  ROW, (d) grant any discounts, rebates, chargebacks or
                  allowances in the ROW, (e) contract with managed care
                  organizations, hospital systems, group purchasing
                  organizations, physician networks and any other private or
                  government healthcare provider or reimbursement entity in the
                  ROW and (f) record Product sales in its books of account for
                  sales in the ROW. CancerVax shall have the sole right and
                  responsibility to (x) unless otherwise agreed by the Parties,
                  distribute the Product to customers in the United States and
                  (y) record Product sales in its books of account for sales in
                  the United States. In accordance with the U.S.
                  Commercialization Plan, Serono shall, unless otherwise agreed
                  by the Parties, (i)

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                  receive and accept orders for the Product from customers in
                  the United States, (ii) on behalf of CancerVax, invoice and
                  collect accounts receivable for Product sales in the United
                  States, (iii) subject to Section 5.10, grant any discounts,
                  rebates, chargebacks or allowances in the United States and
                  (iv) contract with managed care organizations, hospital
                  systems, group purchasing organizations, physician networks
                  and any other private or government healthcare provider or
                  reimbursement entity in the United States.

         6.1.3    Returns. If any quantities of the Product sold in the ROW are
                  returned to CancerVax, CancerVax shall immediately notify
                  Serono and ship them to the facility designated by Serono,
                  with any reasonable or authorized shipping or other documented
                  direct cost to be paid by Serono. CancerVax, at its option,
                  may advise the customer who made the return that the Product
                  should have been returned to Serono, but shall take no other
                  steps in respect of any return without the consent of Serono,
                  such consent not to be unreasonably withheld or delayed. At
                  Serono's request, CancerVax shall destroy the Product, the
                  cost of such destruction (by either Party) to be deemed a
                  Commercial Expense. If any quantities of the Product sold in
                  the United States are returned to Serono, Serono shall
                  immediately notify CancerVax and ship them to the facility
                  designated by CancerVax, with any reasonable or authorized
                  shipping or other documented direct cost to be paid by
                  CancerVax. Serono, at its option, may advise the customer who
                  made the return that the Product should have been returned to
                  CancerVax, but shall take no other steps in respect of any
                  return without the consent of CancerVax, such consent not to
                  be unreasonably withheld or delayed. At CancerVax's request,
                  Serono shall destroy the Product, the cost of such destruction
                  (by either Party) to be deemed a Commercial Expense.
                  Notwithstanding anything to the contrary in this Section
                  6.1.3, if Product is returned due to a Manufacturing defect
                  within the scope of the Manufacturing and Supply Agreement,
                  then the Manufacturing and Supply Agreement shall control,
                  including as to the Party responsible for all costs associated
                  with such return.

6.2      U.S. Commercialization.

         6.2.1    U.S. Commercialization Plan. The PT shall prepare a written
                  plan for the Product Commercialization efforts in the United
                  States, which shall set forth the goals and objectives for
                  Commercialization of the Product in the pertinent Calendar
                  Year (including determinations of Product Trademarks, subject
                  to Section 14.1.1 and the proviso to (b)), a budget therefor
                  (as further described below) and applicable items described in
                  Section 6.2.4, and shall assign responsibilities to the
                  Parties, subject to any allocation of responsibilities set
                  forth in this Agreement (as agreed, approved and amended from
                  time to time pursuant hereto, the "U.S. Commercialization
                  Plan"). In connection with the preparation and implementation
                  of the U.S. Commercialization Plan, CancerVax and Serono will
                  make available to the PT global marketing intelligence and
                  market research information then in their possession
                  pertaining to the Product, the usage of the Product and market
                  trends. For clarity, unless the context clearly indicates to
                  the contrary, references herein to the "U.S. Commercialization
                  Plan" shall mean the

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                  Provisional U.S. Commercialization Plan or the then-current
                  U.S. Commercialization Plan, as the case may be.

         6.2.2    Provisional U.S. Commercialization Plan. Within thirty (30)
                  days of the formation of the PT, CancerVax shall submit to the
                  PT a preliminary U.S. Commercialization Plan for 2005,
                  including a budget [***] (the "Provisional U.S.
                  Commercialization Plan"), [***] At the first meeting of the
                  PT, the PT shall review the Provisional U.S. Commercialization
                  Plan and, within thirty (30) days of such meeting, or such
                  other period of time as may be required and agreed by the
                  co-chairs of the PT, shall make any revisions to the
                  Provisional U.S. Commercialization Plan as it may deem
                  necessary. Such revised Provisional U.S. Commercialization
                  Plan shall be submitted by the PT to the SC. The SC shall,
                  within thirty (30) days of receipt of such revised Provisional
                  U.S. Commercialization Plan, meet to review, modify (as it may
                  deem necessary) and approve such revised Provisional U.S.
                  Commercialization Plan, which thereafter shall become the U.S.
                  Commercialization Plan for 2005. In addition, on or before
                  October 1, 2005, the PT shall prepare a U.S. Commercialization
                  Plan for 2006. The SC shall review and approve such U.S.
                  Commercialization Plan within ninety (90) days following its
                  submission by the PT, but in any event before such U.S.
                  Commercialization Plan is implemented.

         6.2.3    Subsequent U.S. Commercialization Plan. The U.S.
                  Commercialization Plan shall be subject to ongoing revision
                  through the normal activity of the PT; provided, that any
                  revisions that in themselves or together with all other
                  revisions result in a change in the budget [***] On or before
                  September 30 of each Calendar Year during the Term, the PT
                  shall formally review and update the U.S. Commercialization
                  Plan and prepare a revised U.S. Commercialization Plan for the
                  following Calendar Year. The SC shall review and approve such
                  annual U.S. Commercialization Plan within ninety (90) days
                  following its submission by the PT, but in any event before
                  such U.S. Commercialization Plan is implemented.

         6.2.4    Contents of U.S. Commercialization Plan. The U.S.
                  Commercialization Plan shall consist of a marketing plan (the
                  "Marketing Plan") and a medical affairs plan (the "Medical
                  Affairs Plan"). Each Marketing Plan shall contain at a
                  minimum:

                  (a)      plans for branding and positioning;

                  (b)      promotional campaigns and messaging by audience;

                  (c)      life cycle plans including future presentations,
                           formulations, usage or dosage forms;

                  (d)      competitive analysis;

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                  (e)      plans and strategies for major meetings and
                           conventions;

                  (f)      headcount plans for marketing and market research;

                  (g)      market research plans;

                  (h)      distribution plans;

                  (i)      strategies with respect to managed care
                           organizations, hospital systems, group purchasing
                           organizations, physician networks and any other
                           private or government healthcare providers or
                           reimbursement entities;

                  (j)      pricing and reimbursement plans;

                  (k)      high-level sales plans and activities, including
                           Sales Force matters and appropriate Co-Promotion
                           activities, the minimum number of Details required
                           from each Party and plans and a budget for an annual
                           joint training session pursuant to Section 7.2.2;

                  (l)      concepts for development of appropriate sales
                           training and Promotional Materials;

                  (m)      sales forecast by year for five (5) years with market
                           sensitivities incorporated; and

                  (n)      a budget for Commercial Expenses pursuant to Section
                           6.2.8.

         Each Medical Affairs Plan shall contain at a minimum:

                  (o)      Phase IV Clinical Trial plans and post-marketing
                           surveillance initiatives for the Product;

                  (p)      market and key opinion leader development plans,
                           including continuing medical education plans;

                  (q)      publication plans;

                  (r)      plans to ensure appropriate medical information
                           responses;

                  (s)      safety monitoring plans; and

                  (t)      plans and expected activities for field based medical
                           affairs personnel.

         6.2.5    Efforts. Each of CancerVax and Serono shall use Commercially
                  Reasonable Efforts to execute and perform, or cause to be
                  performed, the activities assigned to it in the U.S.
                  Commercialization Plan or this Agreement and to cooperate with
                  the other Party in carrying out the U.S. Commercialization
                  Plan and Co-Promoting the Product. The Parties shall use
                  Commercially Reasonable Efforts to ensure compliance with the
                  American Medical Association Guidelines on Gifts

                                      -39-
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                  to Physicians from Industry, the U.S. Office of the Inspector
                  General's Compliance Program Guidelines for Pharmaceutical
                  Manufacturers, the Pharmaceutical Researchers and
                  Manufacturers of America Code on Interactions with Healthcare
                  Professionals, and all Accreditation Council for Continuing
                  Medical Education guidelines, in each case as then in effect,
                  or such other polices or procedures of such nature as may be
                  agreed by the Parties from time to time.

         6.2.6    Progress Reports. Each Party shall receive regular updates on
                  Product Commercialization activities through the direct
                  participation of its members of the PT, and circulation of the
                  related meeting minutes. In addition, the PT shall provide the
                  SC with reports of the Parties' respective Product
                  Commercialization activities in the United States within
                  thirty (30) days after the end of each Calendar Quarter.

         6.2.7    Promotional Materials.

                  (a)      Creation of Promotional Materials. The Parties will
                           jointly, through the PT, create and develop
                           Promotional Materials for use in the United States,
                           subject to Section 14.2. The Parties will also
                           jointly, through the PT, select an advertising and/or
                           public relations agency or agencies to support
                           Commercialization of the Product, and each Party will
                           have equal access to the services provided by such
                           agency or agencies.

                  (b)      Promotional Materials Inventory. The PT shall
                           determine which Party shall be responsible for
                           producing and, in the United States, distributing all
                           Promotional Materials, and the Sales Forces of both
                           Parties shall be provided with equal access to all
                           Promotional Materials. Subject to Serono's ownership
                           rights in the Serono Housemark and Copyrighted Works
                           as set forth in ARTICLE 14, and subject to
                           CancerVax's ownership rights in the CancerVax
                           Housemark and the Copyrighted Works as set forth in
                           ARTICLE 14, the Parties shall jointly own all right,
                           title and interest in and to such inventory of
                           Promotional Materials.

         6.2.8    U.S. Commercialization Budget. The Commercialization budget
                  for the Product in the United States shall be (a) set forth in
                  and comprise part of the U.S. Commercialization Plan and (b)
                  divided as between the Marketing Plan and the Medical Affairs
                  Plan. Unless otherwise agreed by the Parties without resort to
                  the dispute resolution procedures of Section 16.2 [***]

         6.2.9    Sharing of U.S. Commercial Expenses. The Parties shall,
                  pursuant to the mechanism provided in Section 9.5.4, share
                  equally all Commercial Expenses for the United States. Each
                  Party shall charge all such expenses incurred to a separate
                  account created by it on its books and records solely for the
                  purpose of

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                  tracking Commercial Expenses for the Product. Financial
                  audits shall be governed by Section 9.11.

6.3      ROW Commercialization.

         6.3.1    ROW Commercialization Plan. Serono shall prepare a written
                  plan for the Product Commercialization in the ROW, which shall
                  set forth the goals and objectives for Commercialization of
                  the Product in the pertinent Calendar Year (including
                  determinations of Product Trademarks, subject to Section
                  14.1.1 and the proviso to (b)) and a budget therefor (as
                  amended from time to time pursuant hereto, the "ROW
                  Commercialization Plan"). In connection with the review of the
                  ROW Commercialization Plan, Serono will make available to the
                  PT global marketing intelligence and market research
                  information then in its possession pertaining to the Product,
                  the usage of the Product and market trends. The ROW
                  Commercialization Plan (including its budget) shall not
                  require CancerVax to conduct any activities, allocate any
                  resources, pay any costs or expenses or otherwise have any
                  obligations thereunder, other than (a) to supply the Product
                  in accordance with Section 8.2, (b) as specifically
                  contemplated under ARTICLE 5 or (c) as may otherwise be agreed
                  by the Parties.

         6.3.2    Initial ROW Commercialization Plan. On or before October 1,
                  2006, Serono shall prepare the initial ROW Commercialization
                  Plan. The SC shall review and comment upon such ROW
                  Commercialization Plan within ninety (90) days following its
                  submission by Serono, and Serono shall consider any reasonable
                  recommendations of the SC in modifying such ROW
                  Commercialization Plan.

         6.3.3    Subsequent ROW Commercialization Plan. Serono may, in its sole
                  discretion, make revisions to the ROW Commercialization Plan,
                  and shall, in the event that it makes any material changes to
                  the ROW Commercialization Plan, provide the SC with a copy of
                  any such revised ROW Commercialization Plan, and shall take
                  into consideration any reasonable recommendations of the SC.
                  On or before October 1 of each Calendar Year during the Term,
                  Serono shall formally review and update the ROW
                  Commercialization Plan and prepare a revised ROW
                  Commercialization Plan for the following Calendar Year. The SC
                  shall review and comment upon such revised ROW
                  Commercialization Plan within ninety (90) days following its
                  submission by Serono, and Serono shall consider any reasonable
                  recommendations of the SC in modifying such ROW
                  Commercialization Plan.

         6.3.4    Contents of ROW Commercialization Plan. The ROW
                  Commercialization Plan shall contain, at a minimum, plans for
                  branding and positioning, promotional campaigns, competitive
                  analysis, plans and strategies for major meetings and
                  conventions, pricing and reimbursement plans, high-level sales
                  plans and marketing initiatives, sales forecast by year for
                  five (5) years with market sensitivities incorporated, Phase
                  IV Clinical Trial plans and post-marketing surveillance
                  initiatives for the Product, publication plans, and market and
                  key opinion leader development plans, including continuing
                  medical education plans.

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         6.3.5    Efforts. Serono shall use Commercially Reasonable Efforts to
                  execute and perform, or cause to be performed, the ROW
                  Commercialization Plan. In addition, Serono shall use
                  Commercially Reasonable Efforts to promote sales of the
                  Product in the ROW in accordance with applicable Laws, and in
                  particular shall use Commercially Reasonable Efforts to launch
                  the Product and achieve First Commercial Sales [***] as soon
                  as practicable following receipt of Approval for the Product.
                  The Parties shall cooperate to ensure the global compatibility
                  of Commercialization of the Product. The Parties recognize
                  that Serono and CancerVax may mutually benefit from conducting
                  Product Commercialization activities in a manner that
                  optimizes their usefulness throughout the world, and each
                  Party will use Commercially Reasonable Efforts to achieve this
                  result. In no event, without the consent of the SC, shall
                  either Party adopt a Product Commercialization strategy that
                  would reasonably be expected to cause a material adverse
                  effect on the other Party's Commercialization of the Product.
                  If the SC determines that such a material adverse effect would
                  reasonably be expected to occur, then it shall seek to
                  minimize any such material adverse effect across the entire
                  world in a manner consistent with the terms of this Agreement,
                  with priority given to minimizing the effect on those
                  countries that have the most significant commercial value or
                  potential.

         6.3.6    Progress Reports. During the period commencing with First
                  Commercial Sale in the ROW and ending on the tenth (10th)
                  anniversary thereof, Serono shall provide the SC with a
                  reasonably detailed report, including a summary of progress in
                  obtaining Marketing Authorizations and Approvals, progress
                  with respect to major marketing initiatives and the status of
                  clinical trials, for its Product Commercialization activities
                  in the ROW, within sixty (60) days after the end of each
                  Calendar Quarter. Following the end of such period and
                  continuing for the balance of the Term, Serono shall provide
                  such a report within sixty (60) days after the end of each
                  Calendar Year.

6.3.7             Promotional Materials. Serono shall create, develop, produce
                  and own (subject to CancerVax's ownership rights in the
                  CancerVax Housemark and Copyrighted Works as set forth in
                  ARTICLE 14) all Promotional Materials for use in the ROW,
                  subject to Section 14.2.

6.3.8             Commercial Expenses. Serono shall bear all costs and expenses,
                  including Commercial Expenses, incurred in connection with the
                  Commercialization of the Product in the ROW.

                                    ARTICLE 7
                                  CO-PROMOTION

7.1      Sales Force.

         7.1.1    Minimum Support. Each Party shall use Commercially Reasonable
                  Efforts to provide sufficient United States marketing and
                  sales support for the Product,

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                  which shall include from each Party, unless otherwise agreed
                  by the Parties, (a) [***] Sales Representatives (the "Minimum
                  Sales Representatives"), (b) appropriate national account
                  managers (including public and private payers and management
                  of distribution partners), (c) appropriate sales force
                  management and training personnel, (d) appropriate field-based
                  personnel to support reimbursement and (e) appropriate field
                  medical affairs personnel (collectively, a Party's "Sales
                  Force"). All Sales Representatives shall have appropriate
                  levels of experience promoting and Detailing pharmaceutical
                  products, and each Party shall use Commercially Reasonable
                  Efforts to ensure [***] Each of such Sales Representatives
                  shall also have previously received training on proper
                  marketing and sales techniques to be used in promoting
                  pharmaceutical products in accordance with all Laws, and shall
                  meet any other minimum criteria set forth in the U.S.
                  Commercialization Plan.

         7.1.2    Responsibility; Indemnification. Subject to Section 7.1.4,
                  each Party shall have sole responsibility for its respective
                  Sales Force and performing its obligations hereunder,
                  including recruiting, hiring, training (consistent with
                  Section 7.2), managing, compensating (consistent with Section
                  7.1.3), conducting performance reviews for, disciplining,
                  firing and otherwise controlling the individuals comprising
                  its Sales Force. Except as otherwise provided herein, each
                  Party shall provide the day-to-day management of its Sales
                  Force (including furnishing administrative support, financial
                  resources, equipment and supplies and monitoring Detail
                  reporting by its Sales Representatives in accordance with the
                  U.S. Commercialization Plan) and assure its Sales Force's
                  understanding and compliance with this Agreement and Laws.
                  Each Party shall indemnify the other Party pursuant to ARTICLE
                  12 in connection with any Losses resulting from a Claim by an
                  employee of the indemnifying Party participating in the Sales
                  Force arising out of the actions of the indemnifying Party
                  with respect to disciplining, terminating or reclassifying
                  such employee or other actions with respect to such employee
                  in the execution or performance of Co-Promotion activities
                  hereunder.

         7.1.3    Compensation. Each Party shall pay compensation, determined
                  solely by such Party, to its Sales Representatives with
                  respect to the Product for each Calendar Year during the Term
                  in which the Parties have or are required to have Sales
                  Representatives; provided, [***]

         7.1.4    Sales Force Issues. If either Party notifies the other that it
                  believes certain Sales Representatives or other Sales Force
                  personnel of the other Party may (a) have violated any Laws,
                  (b) be damaging relationships with health care professionals
                  or

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                  damaging the Product brand or (c) have failed to comply with
                  this Agreement, the notifying Party shall have the right to
                  request that the responsible Party immediately address the
                  performance of such individual, in addition to any other
                  rights or remedies available to such Party under this
                  Agreement, at Law or in equity. The responsible Party shall
                  promptly evaluate such issue in accordance with applicable
                  policies or as it may otherwise deem appropriate. The
                  responsible Party shall keep the other Party reasonably
                  informed of the progress of, and information learned during,
                  its evaluation. If determined by Serono, in the case of Serono
                  Sales Force personnel, or CancerVax, in the case of CancerVax
                  Sales Force personnel, any particular Sales Representative or
                  other Sales Force personnel of a Party shall be replaced and
                  removed from performance of Co-Promotion activities for the
                  Product pursuant to this Agreement.

         7.1.5    [***]

7.2      Sales Force Training.

         7.2.1    Training Materials.

                  (a)      Development. Promptly after the Effective Date and in
                           no event later than one hundred twenty (120) days
                           prior to the anticipated date of receipt of Marketing
                           Authorization for the Product in the United States,
                           the PT shall develop (and periodically update) a
                           high-quality training program for the Product. The
                           training program will include live and
                           computer-implemented components and shall be
                           conducted in a manner to facilitate presentation of a
                           consistent message with respect to promotion of the
                           Product.

                  (b)      Supply. All Product-specific training materials
                           developed pursuant to clause (a) above will be
                           prepared in compliance with all Laws, and a master
                           copy of all such training materials shall be made
                           available to each Party.

                  (c)      Return; Confidentiality. Each Party shall require any
                           Sales Representative who ceases to be employed or to
                           participate in the promotion of the Product to return
                           to his or her respective employer all Product
                           training materials and all other Confidential
                           Information.

         7.2.2    Training Sessions. The Parties shall provide equivalent sales
                  training on the Product to the Serono Sales Representatives
                  and the CancerVax Sales

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                  Representatives who will be performing Calls in the United
                  States; provided, that each Party may provide such general
                  sales method training to its own Sales Representatives as it
                  deems appropriate. The Parties shall conduct a joint training
                  session for Serono Sales Representatives and CancerVax Sales
                  Representatives at least once per Calendar Year at mutually
                  acceptable dates and times throughout the Term, which shall be
                  set forth in and budgeted for through the U.S.
                  Commercialization Plan. Each Party shall be responsible for
                  the travel and housing costs of its own Sales Representatives
                  for such training.

         7.2.3    Training Requirements. Each Party shall use Commercially
                  Reasonable Efforts to ensure that its Sales Force personnel
                  complete the applicable training program by not later than
                  thirty days prior to the anticipated date of receipt of
                  Marketing Authorization for the Product in the United States
                  and complete periodic updates. Each Party shall allocate time,
                  as may be reasonably necessary, at any regional and national
                  sales or medical affairs personnel meeting held by it for
                  applicable update training with respect to the Product.

         7.2.4    Management; Coordination Efforts. The PT shall implement
                  appropriate measures to ensure that the sales efforts of the
                  CancerVax Sales Force and Serono Sales Force for the Product
                  are coordinated.

         7.2.5    Territory and Target Prescribers. The Parties, through the PT,
                  shall cooperate to prepare an initial proposal for territory
                  alignment and identification and allocation of Target
                  Prescribers for purposes of the U.S. Commercialization Plan.
                  Territory alignments, including sales districts and regions
                  throughout the United States, shall be initially determined
                  and maintained in a coordinated and unified manner to optimize
                  the Detailing coverage of the Target Prescribers.

         7.2.6    Unified Presentation. The Parties intend that the Parties'
                  respective Sales Representatives present as a seamless
                  organization with respect to the Target Prescribers and that
                  the Target Prescribers will receive a comparable level of
                  information and customer service from each Party's Sales
                  Representatives.

7.3      [***]

7.4      Detailing.

         7.4.1    Detailing Efforts. Each Party shall use Commercially
                  Reasonable Efforts to fulfill its Detailing and other
                  Co-Promotion obligations under this Agreement. All Detailing
                  and promotional activity shall be in accordance with the terms
                  of this Agreement and the then-current U.S. Commercialization
                  Plan. No Party shall be

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                  required to undertake any activity under this Agreement that
                  it believes, in good faith, would violate any Laws.

         7.4.2    Detail Requirements. Subject to Section 7.1.5, the U.S.
                  Commercialization Plan shall set forth the number of Primary
                  Details and Secondary Details in respect of the Product to be
                  performed by the Parties' Sales Representatives in the United
                  States during each Calendar Year and the Target Prescribers
                  for such Details (the "Detail Requirements"). Unless otherwise
                  specified in the U.S. Commercialization Plan, each Party shall
                  use Commercially Reasonable Efforts to perform [***] of its
                  annual Detail Requirements in any one Calendar Quarter.

         7.4.3    Detailing Reports. Within thirty (30) days following the end
                  of each Calendar Quarter, each Party shall provide the PT with
                  a report, in such detail and form as the PT shall require (the
                  "Internal Detailing Report"), based upon such Party's internal
                  Call reporting and Detailing auditing system, setting forth
                  the total number of Details actually performed by such Party
                  in the United States, including information as to whether each
                  Call presented the Product as a Primary Detail or a Secondary
                  Detail, segmented by specialty of the Target Prescribers
                  during the immediately preceding Calendar Quarter.

         7.4.4    Detail Audit. At any time during the Term, but not more than
                  once every Calendar Year, each Party agrees to make available
                  to the other Party, upon reasonable advance notice, such books
                  and records necessary to verify the accuracy of such Internal
                  Detailing Report with respect to any Calendar Quarter ending
                  not more than four (4) Calendar Quarters prior to the date of
                  such request. Unless the auditing Party has notified the other
                  Party of an issue relating to verifying an Internal Detailing
                  Report for a particular Calendar Quarter, such other Party
                  shall be released from any liability or accountability to the
                  auditing Party for Detailing in any Calendar Quarter ending
                  more than four (4) Calendar Quarters prior to the initiation
                  of such verification process by the auditing Party. In the
                  event of an unresolved dispute regarding the number of Details
                  actually performed by a Party based on such Party's internal
                  Call reporting and Detail auditing system, the Parties hereby
                  agree that such Party's internal Call reporting and Detail
                  auditing system may be correlated (on a trend basis only) with
                  the Detailing audit data. Such correlation may be used by the
                  auditing Party in any court or arbitration proceeding with
                  respect to any dispute regarding Detailing under this
                  Agreement. If the results of an audit identify an
                  overstatement of Details by a Party in excess of ten percent
                  (10%) for any Calendar Year, then the overstating Party shall
                  bear the expense of such audit and shall promptly implement
                  corrective actions reasonably acceptable to the auditing party
                  to ensure accurate reporting thereafter. Repeated excessive
                  reporting shall be deemed a material breach of this Agreement.

         7.4.5    Detail Shortfalls. In the event that a Party does not meet
                  [***] of the Detail Requirements assigned to it pursuant to
                  the U.S. Commercialization Plan (as such Detail Requirements
                  may be adjusted pursuant

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

                                      -46-

<PAGE>
                  to Section 7.5.1) during any Calendar Year, such Party shall
                  be deemed to have caused a "Detail Shortfall" for such
                  Calendar Year. Promptly following the end of the first
                  Calendar Year with respect to which a Party has caused a
                  Detail Shortfall, such Party shall pay to the other Party an
                  amount equal to the "Detail Shortfall Cost" (as defined below)
                  for such Calendar Year (which amount shall not be subject to
                  offset or credit against amounts due pursuant to Section 9.5.4
                  but rather shall be paid directly to the other Party).
                  Promptly following the end of any second Calendar Year with
                  respect to which a Party has caused a Detail Shortfall, [***]

         7.4.6    Detail Content. Neither Party shall make, nor permit its Sales
                  Representatives to make, any statement, representation or
                  warranty, oral or written, concerning the Product inconsistent
                  with, or contrary to, the approved Product labeling,
                  Promotional Materials, this Agreement and the U.S.
                  Commercialization Plan. In addition, each Party shall insure
                  that its Sales Representatives Detail the Product in a fair
                  and balanced manner consistent with the requirements of the
                  United States Food, Drug and Cosmetic Act, as amended, and the
                  regulations promulgated thereunder. CancerVax and Serono
                  representatives shall not engage in any pre-marketing
                  activities for the Product to the extent prohibited by Law.

         7.4.7    Promotional Materials. Each Party shall, and shall cause its
                  Sales Force to, (a) use the Promotional Materials and Product
                  samples solely for the purposes of this Agreement and (b)
                  immediately cease the use of any Promotional Materials when
                  instructed to do so by the PT.

7.5      Alternative Performance.

         7.5.1    Relinquishment of Detail Requirements. If, during the course
                  of performing its Detail Requirements, a Party determines in
                  good faith that it cannot perform the full amount of Detail
                  Requirements established for such Party in the U.S.
                  Commercialization Plan, then such Party shall notify the PT,
                  identifying the Detail Requirements it has the capacity and is
                  willing to perform. The PT may, with the other Party's
                  approval and acceptance, allocate any or all of the Detail

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

                                      -47-
<PAGE>
                  Requirements that such Party does not have the capacity to
                  perform, to such other Party (the "Relinquished Details"). The
                  U.S. Commercialization Plan for such Calendar Year shall
                  identify any such adjustments to the Detail Requirements. If a
                  Party performs the Relinquished Details on behalf of the other
                  Party, then [***]

         7.5.2    Subcontracting of Obligations. Serono shall be entitled to
                  subcontract its obligations to Co-Promote hereunder solely to
                  any Affiliate, which Serono shall cause, in the event of such
                  an arrangement, to execute and deliver to CancerVax the
                  acknowledgement on the signature page of this Agreement.
                  Serono shall be responsible for the performance of such
                  Affiliate in accordance with Section 2.3.2, and CancerVax
                  shall have the right to enforce the provisions of this ARTICLE
                  7 directly against such Affiliate.

7.6      Costs of Co-Promotion. Except for costs (a) agreed to be shared by the
         Parties pursuant to Sections 1.18.5 and 1.18.7 or (b) incurred in
         connection with the activities of the PT related to setting forth in
         the U.S. Commercialization Plan and coordinating the execution of
         Co-Promotion activities, each Party shall bear all its own costs and
         expenses in connection with fulfilling its obligations and exercising
         its rights to Co-Promote hereunder, including recruitment,
         compensation, benefits, overhead expenses and deployment costs for
         Sales Force personnel engaged in Co-Promotion pursuant to ARTICLE 7
         (the "Co-Promotion Costs").

                                    ARTICLE 8
                                     SUPPLY

8.1      Supply for Development. CancerVax shall use Commercially Reasonable
         Efforts to supply the Parties with Product for use in the Development
         of the Product, as specified in the Development Plan, and for use in
         Phase IV Clinical Trials, and shall deliver Product requested by Serono
         as directed from time to time. The costs of such Product shall be
         calculated as the Cost of Goods. Serono shall pay CancerVax for all
         amounts of Product required by Serono pursuant to this Section 8.1, and
         CancerVax shall accrue the Cost of Goods of all amounts of Product
         required by CancerVax pursuant to this Section 8.1, and such payments
         and accruals shall be deemed a Development Expense or a Commercial
         Expense, as applicable.

8.2      Supply for Commercialization.

         8.2.1    Initial Supply. CancerVax shall supply Product for sale in the
                  United States and the ROW in accordance with and subject to
                  the terms of a Manufacturing and

                                      -48-
<PAGE>
                  Supply Agreement to be negotiated, agreed, executed and
                  delivered by the Parties within ninety (90) days following the
                  Effective Date (the "Manufacturing and Supply Agreement"),
                  which Manufacturing and Supply Agreement shall reflect the
                  terms and conditions attached hereto as Exhibit A.

         8.2.2    Additional Supply. As soon as reasonably practicable following
                  [***] the Parties shall discuss in good faith, through the DT,
                  a plan to expand Manufacturing capacity for the Product to
                  meet expected market demand. To the extent that such plan
                  requires the construction of a new Manufacturing facility,
                  then, unless otherwise agreed in writing by the Parties,
                  Serono shall construct such facility at its sole cost and
                  expense and shall own and operate such facility, and shall
                  have the right to Manufacture Product for the ROW; provided,
                  that the Parties will enter into a technology transfer
                  agreement (the "Technology Transfer Agreement") at least
                  twelve (12) months prior to the anticipated undertaking of
                  such Manufacturing responsibility by Serono, or earlier if
                  reasonably required, governing, among other things, the
                  exchange of technical information and Know-How, access to
                  regulatory filings (each solely to the extent it relates to
                  Manufacture) and back-up supply arrangements. It is
                  anticipated that once such a facility is established, each
                  Party will act as the primary back-up supplier to the other.
                  The Technology Transfer Agreement shall not contemplate the
                  transfer of such CancerVax Know-How, except pursuant to the
                  Development Transfer Plan, unless and until Serono has
                  notified CancerVax that it intends to build a Manufacturing
                  facility for Product in accordance with this ARTICLE 8. The
                  Technology Transfer Agreement shall contemplate an appropriate
                  plan for return of CancerVax Know-How in connection with a
                  termination or expiration of this Agreement.

                                    ARTICLE 9
                              FINANCIAL PROVISIONS

9.1      Up-front Payments. In partial consideration for the rights and licenses
         granted to Serono under this Agreement:

         9.1.1    Lump Sum. Within thirty (30) days following the Effective
                  Date, Serono shall pay or cause to be paid to CancerVax a
                  non-creditable amount of twenty-five million U.S. dollars
                  (U.S. $25,000,000) as partial reimbursement of CancerVax's
                  past research and Development expenditures in respect of the
                  Product.

         9.1.2    Stock Purchase. Subject to the terms and conditions of this
                  Agreement and the Stock Purchase Agreement attached hereto as
                  Exhibit B (the "Stock Purchase Agreement"), including the
                  execution and delivery of the Registration Rights Agreement
                  attached hereto as Exhibit C (the "Registration Rights
                  Agreement"), both of which shall be executed by CancerVax and
                  an Affiliate of Serono simultaneously with this Agreement, on
                  the Closing Date (as defined in the Stock Purchase Agreement),
                  CancerVax agrees to issue and sell to such Affiliate of
                  Serono, and such Affiliate of Serono agrees to purchase from
                  CancerVax, one

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -49-
<PAGE>
                  million (1,000,000) shares of CancerVax's
                  common stock at a purchase price per share of twelve U.S.
                  dollars (U.S. $12.00), for an aggregate purchase price of
                  twelve million U.S. dollars (U.S. $12,000,000).

9.2      Milestone Payments. In consideration for the successful achievement of
         the Product Development and Commercialization events set forth below,
         Serono shall pay CancerVax the amount set forth below (each, a
         "Milestone Payment") within thirty (30) days after the first
         achievement date for such Milestone Payment:

<TABLE>
<CAPTION>
                                                      MILESTONE PAYMENT
          MILESTONE PAYMENT TRIGGER                  (IN U.S. $ MILLIONS)
------------------------------------------           --------------------
<S>                                          <C>     <C>
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                                     --------------------
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                                     --------------------
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                                     --------------------
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                             [***]                  [***]
                                             =====   ====================
[***]                                                        [***]
                                                     --------------------
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                                     --------------------
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                             -----   --------------------
                                             [***]                  [***]
                                             =====   ====================
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
[***]                                                        [***]
                                             [***]                  [***]
                                             =====   ====================
                  Total Milestone Payments                            253
                                                     --------------------
</TABLE>

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    with the Commission. Confidential treatment has been requested with
    respect to the omitted portions.

                                      -50-
<PAGE>
Each Party shall promptly inform the other Party of the achievement of any
Milestone Payment triggering event. For clarity, each Milestone Payment will be
made only once, regardless of the number of times the corresponding triggering
event may be achieved.

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

9.3      Profit Sharing for the Product in the United States. CancerVax shall
         receive fifty percent (50%) and Serono shall receive fifty percent
         (50%) of the Distributable Profit for the Product with respect to sales
         in the United States, to be calculated and paid in accordance with the
         reconciliation and payment provisions of Sections 9.5.4 and 9.6 through
         9.9, inclusive.

9.4      Payment of Royalties on Net Sales of the Product in the ROW.

         9.4.1    Thresholds and Amounts. Subject to reduction and deductions
                  pursuant to Sections 0 and 9.4.5, Serono shall pay CancerVax
                  at the time of delivery of each ROW Report, on a
                  country-by-country basis, royalty payments on aggregate annual
                  Net Sales of the Product in the ROW ("Royalties"), as follows:

<TABLE>
<CAPTION>
AGGREGATE ANNUAL NET SALES OF THE
       PRODUCT IN THE ROW                       ROYALTY PAYMENT
      (IN U.S. $ MILLIONS)                   PERCENTAGE OF NET SALES
---------------------------------            -----------------------
<S>                                          <C>
              [***]                                  [***]
              [***]                                  [***]
              [***]                                  [***]
              [***]                                  [***]
</TABLE>

         9.4.2    Certain Conditions. All Royalty payments shall be subject to
                  the following conditions:

                  (a)      only one Royalty shall be due with respect to the
                           same unit of the Product; and

                  (b)      no Royalties shall be due upon the sale or other
                           transfer among Serono, its Affiliates or its
                           sublicensees, but in such cases Royalties shall be
                           due and calculated upon Serono's, its Affiliate's or
                           sublicensees' Net Sales to the first independent
                           Third Party.

         9.4.3    Directly Comparable Products. [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -51-
<PAGE>

         9.4.4    Payment of Royalties Under the Existing Third Party Agreement.
                  Serono shall pay directly to the John Wayne Cancer Institute
                  one half (1/2) of the Shared Existing Royalties due under the
                  terms of the Existing Third Party Agreement according to the
                  terms of such agreement as of the Effective Date.

         9.4.5    Royalty Deductions.[***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -52-
<PAGE>

         9.4.6    Limitation. Notwithstanding anything to the contrary set forth
                  in this Agreement, no Royalty payment shall be reduced in the
                  aggregate by more than [***] by reason of any reductions or
                  deductions pursuant to Sections 9.4.3 or 9.4.5. [***]

9.5      Reports and Reconciliation Payments.

         9.5.1    ROW Report. Within forty-five (45) days after the end of each
                  Calendar Quarter, Serono shall submit to CancerVax a written
                  report (each a "ROW Report") setting forth in reasonable
                  detail, the actual amounts of the following items:

                  (a)      a statement of Net Sales in the ROW on a
                           country-by-country basis during such Calendar
                           Quarter;

                  (b)      [***]

                  (c)      a preliminary statement of Royalties due to
                           CancerVax, on a country by country as well as an
                           aggregate basis, based on such Net Sales and the
                           rates set forth in Section 9.4.1, then showing any
                           reduction of such Royalties by reason of a reduction
                           of rates pursuant to Section 0;

                  (d)      [***]

                  (e)      [***]

                  (f)      [***]

                  (g)      a calculation of an amount equal to the aggregate
                           amount described in (c) less the aggregate amounts
                           described in (d), (e) and (f);

                  (h)      a statement of total Royalty payments due to
                           CancerVax; and

                  (i)      [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -53-
<PAGE>

         9.5.2    Serono Report. Within forty-five (45) days after the end of
                  each Calendar Quarter, Serono shall submit to CancerVax a
                  written report (each, a "Serono Report") setting forth in
                  reasonable detail the actual amounts of all Shared Expenses
                  incurred by Serono, including a calculation showing as
                  separate line items each component of Shared Expenses
                  described in Section 1.32.

         9.5.3    CancerVax Report. Within forty-five (45) days after the end of
                  each Calendar Quarter, CancerVax shall submit to Serono a
                  written report (each, an "CancerVax Report") setting forth in
                  reasonable detail the actual amounts of the following items:

                  (a)      Net Sales in the United States during such Calendar
                           Quarter, including a calculation showing as separate
                           line items each component of Net Sales described in
                           Section 1.50; and

                  (b)      all Shared Expenses incurred by CancerVax, including
                           a calculation showing as separate line items each
                           component of Shared Expenses described in Section
                           1.32.

         9.5.4    Financial Reconciliation. Within sixty (60) days after the end
                  of each Calendar Quarter, commencing with the first Calendar
                  Quarter following the Effective Date, Serono shall, using the
                  ROW Report, the Serono Report and the CancerVax Report,
                  prepare a reconciliation report for the Product (the
                  "Reconciliation Report"). The Reconciliation Report shall set
                  forth, in reasonable detail, the following:

                  (a)      a statement of each Party's incurred portion of
                           Shared Expenses (such portion, a Party's "Incurred
                           Shared Expenses");

                  (b)      a statement of total Shared Expenses, calculated by
                           adding each Party's Incurred Shared Expenses (the
                           "Total Shared Expenses");

                  (c)      a calculation for each Party of an amount equal to
                           fifty percent (50%) of the Total Shared Expenses less
                           such Party's Incurred Shared Expenses (such Party's
                           "Differential Expense"), subject to adjustment to
                           account for any sharing of payments and fees under
                           any Third Party License applicable to the United
                           States other than on an equal basis, as determined by
                           the Parties pursuant to Section 2.7.1;

                  (d)      a calculation of Distributable Profit (i.e., Net
                           Sales in the United States less total Shared
                           Expenses);

                  (e)      subject to clause (f) below, a statement of any
                           amount owed by one Party to the other Party in
                           accordance with the following:

                           (i)      If CancerVax's Differential Expense is
                                    greater than zero (0) and greater than fifty
                                    percent (50%) of Distributable Profit, then
                                    CancerVax shall pay to Serono an amount
                                    equal to the absolute

                                      -54-
<PAGE>
                                    difference between the Differential Expense
                                    and fifty percent (50%) of the Distributable
                                    Profit:

                           (ii)     If CancerVax's Differential Expense is
                                    greater than zero (0) but less than fifty
                                    percent (50%) of Distributable Profit, then
                                    Serono shall pay to CancerVax an amount
                                    equal to the absolute difference between the
                                    Differential Expense and fifty percent (50%)
                                    of the Distributable Profit;

                           (iii)    If CancerVax's Differential Expense is less
                                    than zero (0) but greater than fifty percent
                                    (50%) of Distributable Profit, then
                                    CancerVax shall pay to Serono an amount
                                    equal to the absolute difference between the
                                    Differential Expense and fifty percent (50%)
                                    of the Distributable Profit; and

                           (iv)     If CancerVax's Differential Expense is less
                                    than zero (0) but less than fifty percent
                                    (50%) of Distributable Profit, then Serono
                                    shall pay to CancerVax an amount equal to
                                    the absolute difference between the
                                    Differential Expense and fifty percent (50%)
                                    of the Distributable Profit.

                  (f)      any amount owed by one Party to the other Party
                           pursuant to (f) shall be added to or netted against
                           amounts due to CancerVax from Serono pursuant to
                           Section 9.5.1(h), such that only one payment (the
                           "Reconciliation Payment") will be made per Calendar
                           Quarter in respect of Royalties and Distributable
                           Profit for such Calendar Quarter.

         9.5.5    Reconciliation Payment. Within ten (10) Business Days after
                  delivery by Serono of a Reconciliation Report to CancerVax,
                  Serono or CancerVax, as the case may be, shall pay the
                  Reconciliation Payment to the other Party.

9.6      Currencies. Payments under this Agreement shall be made in United
         States dollars. Sales and expense data for each country shall be
         converted into United States dollars using the applicable monthly
         exchange rate for converting such local currency to United States
         dollars in accordance with Serono's worldwide accounting systems. Such
         rate of exchange as of the Effective Date of this Agreement is that
         rate quoted by Reuters Ltd. prevailing on the last Business Day of the
         month at 3:00 p.m. C.E.T. prior to the month in which Serono records
         such sales and expenses in local currencies.

9.7      Manner of Payments. All sums due to CancerVax or Serono under this
         ARTICLE 9 shall be payable by bank wire transfer in immediately
         available funds to such bank account(s) as CancerVax and Serono,
         respectively, shall designate from time to time. Each Party shall
         endeavor to notify the other Party as to the date and amount of any
         such wire transfer to the other Party at least two (2) Business Days
         prior to such transfer, but in no event later than the Business Day of
         such transfer.

9.8      Interest on Late Payments. If a Party shall fail to make a payment
         pursuant to this ARTICLE 9 when due, any such late payment shall bear
         interest, to the extent not

                                      -55-
<PAGE>

         prohibited by Law, at the average one (1)-month London Inter-Bank
         Offering Rate (LIBOR) for the United States dollar as reported from
         time to time in The Wall Street Journal, effective for the first date
         on which payment was delinquent and calculated on the number of days
         such payment is overdue or, if such rate is not regularly published, as
         published in such source as the Parties agree.

9.9      Tax Withholding. Any taxes, levies or other duties paid or required to
         be withheld or deducted under the appropriate Laws by one of the
         Parties on account of monies payable to the other Party under this
         Agreement shall be deducted from the amount of monies otherwise payable
         to the other Party under this Agreement. The withholding Party shall
         secure and send to the other Party within a reasonable period of time
         proof of any such taxes, levies or other duties paid or required to be
         withheld by the withholding Party for the benefit of the other Party.
         The Parties shall cooperate reasonably with each other to ensure that
         any amounts required to be withheld by either Party are reduced in an
         amount to the fullest extent permitted by Law. Any interest, penalties
         or other charges imposed by a Governmental Authority as a result of a
         failure by the withholding party to pay such taxes, levies or other
         duties shall be the responsibility of the withholding party. No
         deduction shall be made, or a reduced amount shall be deducted, if the
         other Party furnishes a document from the appropriate tax Governmental
         Authorities to the withholding Party certifying that the payments are
         exempt from such taxes, levies or other duties or subject to reduced
         tax rates, according to the applicable convention for the avoidance of
         double taxation.

9.10     Tax Matters. [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -56-
<PAGE>

         [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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<PAGE>

9.11     Financial Records; Audits.

         9.11.1   Financial Records. Each Party shall keep, and shall cause its
                  Affiliates and require its sublicensees to keep, such accurate
                  and complete records of Net Sales and its Commercial Expenses
                  and Development Expenses as are necessary to determine the
                  amounts due to Serono and CancerVax under this Agreement. Such
                  records shall be retained by each Party or any of its
                  Affiliates or sublicensees (in such capacity, the "Recording
                  Party") during the Term and, at a minimum, for [***]
                  thereafter.

         9.11.2   Audits. During normal business hours and with reasonable
                  advance notice to the Recording Party, such records shall be
                  made available for inspection, review and audit, at the
                  request and expense of the other Party (the "Auditing Party"),
                  by an independent certified public accountant or non-U.S.
                  equivalent appointed by such Auditing Party and reasonably
                  acceptable to the Recording Party, for the sole purpose of
                  verifying the accuracy of the Recording Party's accounting
                  reports and payments made or to be made pursuant to this
                  Agreement, including any amounts charged by one Party to the
                  other Party, such as Cost of Goods; provided, that such audits
                  may not be performed by the Auditing Party [***] Such
                  accountants, prior to any review hereunder, shall have entered
                  into an appropriate confidentiality agreement with the
                  Recording Party on mutually acceptable terms and shall have
                  been instructed not to reveal to the Auditing Party the
                  details of its review, except for (a) such

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

                                      -58-
<PAGE>
                  information as is required to be disclosed under this
                  Agreement and (b) such information presented in a summary
                  fashion as is necessary to report the accountants' conclusions
                  to the Auditing Party. All costs and expenses incurred in
                  connection with performing any such audit shall be paid by the
                  Auditing Party unless the audit uncovers a net underpayment or
                  overreporting of expenses by a Recording Party [***] of total
                  amounts owed or expenses reported by such Recording Party for
                  the period covered by the audit, in which case the Recording
                  Party will bear the full cost of the audit for such Calendar
                  Year. The Auditing Party will be entitled to [***]

         9.11.3   Binding Effect. If a Party fails to invoke its audit rights
                  pursuant to this Section 9.11 with respect to a Calendar Year
                  within [***] following the end of [***] the calculation of
                  royalties, Distributable Profits and Development Expenses with
                  respect to [***] shall be binding and conclusive upon the
                  other Party, and each Party and its Affiliates and
                  sublicensees shall be released from any liability or
                  accountability with respect to royalties, Distributable
                  Profits or Development Expenses, as the case may be.

                                   ARTICLE 10
                            CONFIDENTIAL INFORMATION

10.1     Confidential Information. Each of Serono and CancerVax shall keep all
         Confidential Information received from the other Party with the same
         degree of care it maintains the confidentiality of its own Confidential
         Information. Neither Party shall use such Confidential Information for
         any purpose other than in performance of this Agreement or disclose the
         same to any other Person other than to such of its agents, its
         sublicensees, or the Inventors or Inventor's representative as
         permitted in accordance with this Agreement and who have a need to know
         such Confidential Information to implement the terms of this Agreement.
         A Receiving Party shall advise any agent, permitted sublicense,
         Inventor or Inventor's representative who receives such Confidential
         Information of the confidential nature thereof and of the obligations
         contained in this Agreement relating thereto, and the Receiving Party
         shall ensure that all such agents comply with such obligations as if
         they had been a Party hereto or confidentiality obligations that are
         not less stringent that the confidentiality obligation contained
         herein. Upon termination of this Agreement, at the request of the
         Disclosing Party, the Receiving Party shall use Commercially Reasonable
         Efforts to return or destroy all Confidential Information of the
         Disclosing Party that remain in the Receiving Party's or its agents'
         possession, except that the Receiving Party may keep one copy of the
         Confidential Information in a secure location of the Receiving Party,
         solely for purposes of establishing the extent of disclosure of
         Confidential Information by the other Party hereunder and not for any
         other use, reference or disclosure whatsoever. Notwithstanding anything
         to the contrary in this Agreement but subject to Section 10.4 if
         applicable, the Receiving Party shall have the

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

                                      -59-
<PAGE>
         right to disclose any Confidential Information provided hereunder if,
         in the reasonable opinion of the Receiving Party's legal counsel, such
         disclosure is necessary to comply with the terms of this Agreement, or
         the requirements of any Laws; provided, that where possible, the
         Receiving Party shall notify the Disclosing Party of the Receiving
         Party's intent to make such disclosure of Confidential Information
         pursuant to the provision of the preceding sentence sufficiently prior
         to making such disclosure so as to allow the Disclosing Party adequate
         time to take whatever action the Disclosing Party may deem to be
         appropriate to protect the confidentiality of the information.

10.2     Other Permitted Disclosure and Use.

         10.2.1   Business Disclosure. Notwithstanding Section 10.1, a Party may
                  disclose Confidential Information belonging to the other Party
                  only to the extent such disclosure is reasonably necessary to
                  obtain Marketing Authorization of the Product, to gain or
                  maintain authorizations to conduct clinical trials or enforce
                  the provisions of this Agreement. If a Party deems it
                  necessary to disclose Confidential Information of the other
                  Party pursuant to this Section 10.2, such Party shall give
                  reasonable advance notice of such disclosure to the other
                  Party to permit such other Party sufficient opportunity to
                  object to such disclosure or to take measures to ensure
                  confidential treatment of such information.

         10.2.2   Patent Disclosure. Notwithstanding Section 10.1, a Party may
                  disclose Confidential Information of the other Party to
                  Governmental Authorities in order to obtain Patent Rights, but
                  such disclosure may be only to the extent reasonably necessary
                  to obtain such Patent Rights or authorizations and shall be
                  pursuant only to an exercise of rights expressly granted under
                  this Agreement and in accordance herewith.

10.3     Publications. Subject to any Third Party rights existing as of the
         Effective Date, including under the Existing Third Party Agreement,
         each Party shall submit to the other Party for review and approval all
         proposed academic, scientific and medical publications and public
         presentations relating to the Product or any Development activities
         under this Agreement for review in connection with preservation of
         Patent Rights and trade secrets or to determine whether Confidential
         Information should be modified or deleted from the proposed publication
         or public presentation. Written copies of such proposed publications
         and presentations shall be submitted to the non-publishing Party no
         later than sixty (60) days before submission for publication or
         presentation and the non-publishing Party shall provide its comments
         with respect to such publications and presentations within thirty (30)
         days of its receipt of such written copy. The review period may be
         extended for an additional thirty (30) days if the non-publishing Party
         can demonstrate a reasonable need for such extension including the
         preparation and filing of patent applications. By written agreement,
         this period may be further extended. No publication shall be made
         unless and until the other Party's reasonable comments on the proposed
         publication or presentation have been addressed and changes have been
         agreed upon and any information has been removed that is determined by
         the other Party to be its Confidential Information or that the other
         Party desires to maintain in secrecy to preserve the value of its
         rights under this Agreement. The Parties will each comply with

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         standard academic practice regarding authorship of scientific
         publications and recognition of contribution of other Persons in any
         publications relating to the Product or any research or Development
         activities under this Agreement.

10.4     Public Announcements. The Parties agree to issue the press release
         attached hereto as Exhibit D within two (2) Business Days following the
         Effective Date. Except as expressly permitted under this Section 10.4
         or required by Law, neither Party will make any public announcement of
         any information regarding this Agreement (or the existence of this
         Agreement), the Product or any research, Development, Manufacturing or
         Commercialization activities under this Agreement without the prior
         written approval of the other Party. Either Party may issue press
         releases or otherwise make public statements or disclosures (such as in
         annual reports to stockholders or filings with the Securities and
         Exchange Commission) as it determines, based on advice of counsel, are
         reasonably necessary or advisable to comply with Laws or other rules or
         regulations applicable to the listing or quoting of the securities of
         either Party or its Affiliates on any stock or securities exchange;
         provided, that a Party shall use Commercially Reasonable Efforts to
         provide the other Party with an opportunity to review and comment on
         such press release, statement or disclosure prior to its release and,
         in such circumstance, shall consider in good faith the comments of such
         other Party, including such Party's request for confidential treatment
         of the information disclosed, it being expressly understood that in
         certain circumstances, no such advance review will be possible (but in
         such circumstances, the disclosing Party shall nonetheless use
         Commercially Reasonable Efforts to provide advance notice to the other
         Party). In addition, following the initial press release announcing
         this Agreement as contemplated in the first sentence of this Section
         10.4 or other public disclosure permitted by this Section 10.4, either
         Party shall be free to disclose, without the other Party's prior
         written consent, the existence of this Agreement, the identity of the
         other Party and those terms of the Agreement that have already been so
         publicly disclosed.

10.5     Equitable Relief. The Parties acknowledge and agree that the
         restrictions set forth in this ARTICLE 10 are reasonable and necessary
         to protect the legitimate interests of the Parties, that neither would
         have entered into this Agreement in the absence of such restrictions
         and that any breach or threatened breach by a Party of any provision of
         this ARTICLE 10 will result in irreparable injury to the other Party
         for which there will be no adequate remedy at Law. In such event, the
         other Party shall be authorized and entitled to seek and obtain from
         any court of competent jurisdiction injunctive relief, whether
         preliminary or permanent, specific performance or any other type of
         equitable relief available in connection with such breach, in addition
         to any other rights or remedies available at Law or in equity. The
         breaching Party agrees to waive any requirement that the non-breaching
         Party (a) post bond or other security as a condition for obtaining any
         such relief and (b) show irreparable harm, balancing of harms,
         consideration of the public interest or inadequacy of monetary damages
         as a remedy.

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                                   ARTICLE 11
                    REPRESENTATIONS AND WARRANTIES; COVENANTS

11.1     Mutual Representations and Warranties. CancerVax and Serono each
         represents and warrants to the other as of the Effective Date that:

         11.1.1   Authorization; No Conflict. The execution, delivery and
                  performance of this Agreement by such Party and all
                  instruments and documents to be delivered by such Party
                  hereunder (a) are within the corporate power of such Party,
                  (b) have been duly authorized by all requisite corporate
                  action, (c) do not conflict with any provision of the
                  organizational documents of such Party, (d) will not violate
                  any Laws or any order or decree of any court, in each case to
                  which such Party or its property is subject, and (e) will not
                  violate or conflict with any terms of any indenture, mortgage,
                  deed of trust, lease, agreement, or other instrument to which
                  such Party is a party (including, in the case of CancerVax,
                  the Existing Third Party Agreement), or by which such Party or
                  any of its property is bound, which violation would have a
                  material adverse effect on its financial condition as a whole
                  or on its ability to perform its obligations hereunder; and

         11.1.2   Due Execution. This Agreement has been duly executed and
                  delivered by such Party and constitutes a legal, valid and
                  binding obligation of such Party, enforceable against such
                  Party in accordance with its terms, except as such
                  enforceability may be limited by applicable insolvency and
                  other Laws affecting creditors' rights generally, or by the
                  availability of equitable remedies.

11.2     Additional Serono Representations and Warranties. Serono further
         represents and warrants to CancerVax that, as of the Effective Date:

         11.2.1   [***]

         11.2.2   [***]

         11.2.3   neither it nor any of its Affiliates is a party to or
                  otherwise bound by any oral or written contract or agreement
                  that will result in any Person obtaining any interest in, or
                  that would give to any Person any right to assert any Claim in
                  or with respect to, any of Serono's rights under this
                  Agreement.

11.3     Additional CancerVax Representations and Warranties. CancerVax further
         represents and warrants to Serono that, as of the Effective Date:

         11.3.1   [***]

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

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                                     [***]

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

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11.4     Covenants.

         11.4.1   Compliance During Performance. Each Party agrees to carry out
                  the Development and Commercialization of the Product and its
                  other obligations or activities hereunder in accordance with
                  the terms of this Agreement and all Laws.

         11.4.2   No Impairment of Performance or Rights. Neither Party shall
                  enter into any contracts, agreements, commitments or other
                  arrangements or take any other action or fail to take any
                  other action, in each case as would reasonably be expected to
                  (a) prevent it from performing its obligations hereunder in
                  accordance with the terms hereof or (b) conflict with or have
                  a material adverse effect on any rights granted to the other
                  Party hereunder.

         11.4.3   Employees and Consultants. Each Party agrees that, prior to
                  permitting any of its employees or consultants to perform work
                  in connection with this Agreement, it shall require such
                  employees and consultants to execute agreements (a) assigning
                  (or requiring assignment) to such Party of all Inventions made
                  by such individuals during the course of and as the result of
                  their association with such Party and (b) obligating such
                  individuals to maintain as confidential all Confidential
                  Information of the other Party.

11.5     Disclaimer of Warranty. Except as otherwise expressly set forth in this
         Agreement, nothing in this Agreement shall be construed as a warranty
         or representation by either Party (a) that any Product made, used, sold
         or otherwise disposed of under this Agreement is or will be free from
         infringement of patents, copyrights, trademarks, industrial design or
         other intellectual property rights of any Third Party, (b) regarding
         the effectiveness, value, safety, non toxicity, patentability, or
         non-infringement of any patent technology, the Product or any
         information or results provided by either Party pursuant to this
         Agreement, including CancerVax Know-How transferred pursuant to Section
         4.1, or (c) that the Product will obtain Marketing Authorization or
         Approval. Each Party explicitly accepts all of the same as experimental
         and for development purposes, and without any express or implied
         warranty from the other Party. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH
         IN THIS AGREEMENT, EACH PARTY EXPRESSLY DISCLAIMS, WAIVES, RELEASES,
         AND RENOUNCES ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY
         OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

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                                   ARTICLE 12
                                 INDEMNIFICATION

12.1     Indemnification by Serono. Subject to Sections 12.2, 12.7 and 13.3,
         Serono shall defend, indemnify and hold harmless CancerVax and its
         Affiliates and each of their officers, directors, shareholders,
         employees, successors and permitted assigns from and against all Claims
         of Third Parties, and all associated Losses, to the extent arising out
         of [***]

12.2     Indemnification by CancerVax. Subject to Sections 12.1, 12.7 and 13.3,
         CancerVax shall defend, indemnify and hold harmless Serono and its
         Affiliates and each of their officers, directors, shareholders,
         employees, successors and permitted assigns from and against all Claims
         of Third Parties, and all associated Losses, to the extent arising out
         of [***]

12.3     Procedure for Indemnification.

         12.3.1   Notice. Each Party (the "Indemnified Party") will promptly
                  notify the other Party (the "Indemnifying Party") if it
                  becomes aware of a Claim of a Third Party (a "Third Party
                  Claim") for which indemnification may be available to it under
                  Section 12.1 or Section 12.2, and will give such information
                  with respect thereto as the Indemnifying Party shall
                  reasonably request and, if covered by such indemnification
                  obligation, the Indemnifying Party shall assume the defense of
                  such Claim in accordance with Section 12.3.2. If any
                  proceeding (including any investigation by any Governmental
                  Authority) is instituted involving any Party regarding which
                  indemnity may be sought pursuant to this ARTICLE 12, such
                  Party shall not make any admission concerning such Claim, but
                  shall promptly notify the other Party in writing and the
                  Indemnifying Party and Indemnified Party shall meet to discuss
                  how to respond to any Claims that are the subject

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omitted portions.

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                  matter of such proceeding. The Indemnifying Party shall not be
                  obligated to indemnify the Indemnified Party to the extent any
                  admission made by the Indemnified Party or any failure by such
                  Party to notify the Indemnifying Party of the Claim materially
                  prejudices the defense of such Claim.

         12.3.2   Defense of Claim. If the Indemnifying Party elects to defend a
                  Third Party Claim pursuant to Section 12.3.1, it shall give
                  notice to the Indemnified Party within forty-five (45) days
                  after the receipt of the notice from the Indemnified Party of
                  the potential indemnifiable Claim which involves (and
                  continues to involve) solely monetary damages The Indemnifying
                  Party shall retain counsel reasonably satisfactory to the
                  Indemnified Party to represent the Indemnified Party and shall
                  pay the fees and expenses of such counsel related to such
                  proceeding. In any such proceeding, the Indemnified Party
                  shall have the right to retain its own counsel, but the fees
                  and expenses of such counsel shall be at the expense of the
                  Indemnified Party unless the Indemnifying Party and the
                  Indemnified Party shall have agreed to the retention of such
                  counsel. The Indemnified Party shall not settle any Claim for
                  which it is seeking indemnification without the prior consent
                  of the Indemnifying Party which consent shall not be
                  unreasonably withheld, delayed or conditioned. The Indemnified
                  Party shall, if requested by the Indemnifying Party, cooperate
                  in all reasonable respects in the defense of such Claim that
                  is being managed and controlled by the Indemnifying Party. The
                  Indemnifying Party shall not, without the written consent of
                  the Indemnified Party (which consent shall not be unreasonably
                  withheld), effect any settlement of any pending or threatened
                  proceeding in respect of which the Indemnified Party is, or
                  arising out of the same set of facts could have been, a Party
                  and indemnity could have been sought hereunder by the
                  Indemnified Party, unless such settlement includes an
                  unconditional release of the Indemnified Party from all
                  liability on Claims that are the subject matter of such
                  proceeding.

12.4     Right to Counsel. Notwithstanding anything to the contrary contained
         herein, an Indemnified Party shall be entitled to assume the defense of
         any Third Party Claim with respect to the Indemnified Party, upon
         written notice to the Indemnifying Party pursuant to this Section 12.4,
         in which case the Indemnifying Party shall be relieved of liability
         under Section 12.1 or 12.2, as applicable, solely for such Third Party
         Claim.

12.5     [***]

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12.6     Insurance. During the Term and for five (5) years thereafter, each
         Party shall obtain and maintain, at its sole cost and expense, product
         liability and clinical trials insurance (including any self-insured
         arrangements) in amounts, that are reasonable and customary in the U.S.
         pharmaceutical and biotechnology industry for companies engaged in
         comparable activities.

12.7     Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO
         THE OTHER OR ANY OF ITS AFFILIATES FOR ANY CONSEQUENTIAL, INCIDENTAL,
         INDIRECT, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING LOST
         PROFITS, BUSINESS OR GOODWILL) SUFFERED OR INCURRED BY SUCH OTHER PARTY
         OR ITS AFFILIATES IN CONNECTION WITH A BREACH OR ALLEGED BREACH OF THIS
         AGREEMENT. THE FOREGOING SENTENCE SHALL NOT LIMIT THE OBLIGATIONS OF
         EITHER PARTY TO INDEMNIFY THE OTHER PARTY FROM AND AGAINST THIRD PARTY
         CLAIMS UNDER THIS ARTICLE 12, INFRINGEMENT CLAIMS UNDER SECTION 13.3,
         OR CLAIMS UNDER ARTICLE 10 (CONFIDENTIALITY).

                                   ARTICLE 13
                             PATENT AND INFRINGEMENT

13.1     Inventions. Except as otherwise set forth in this Agreement, [***] All
         such determinations shall be documented to ensure that any patent
         applications reflect appropriate inventorship.

13.2     Patent Filing, Prosecution and Maintenance.

         13.2.1   Record Keeping. Each Party shall maintain records in
                  sufficient detail and in good scientific manner appropriate
                  for patent purposes to properly reflect all work done and
                  results (including Inventions) achieved in conducting the
                  activities assigned to it pursuant to this Agreement and shall
                  respond to reasonable requests of the other Party for
                  information relating to the Product.

         13.2.2   CancerVax and Joint Inventions. CancerVax shall be responsible
                  for (a) filing, prosecuting and maintaining CancerVax Patent
                  Rights and any Inventions owned or Controlled by CancerVax or
                  jointly owned or Controlled by the Parties, and (b) with
                  respect to CancerVax Patent Rights and Inventions owned or
                  Controlled by CancerVax or jointly owned or Controlled by the
                  Parties that are related to the Product or the Manufacture of
                  the Product, proceeding to initiate any interferences,
                  re-examinations, reissues and oppositions with respect
                  thereto. [***]

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         13.2.3   Serono Inventions. Serono shall be responsible, [***] for (a)
                  filing, prosecuting and maintaining Serono Patent Rights and
                  any Inventions owned or Controlled by Serono and (b) with
                  respect to Inventions owned or Controlled by Serono,
                  proceeding to initiate any interferences, re-examinations,
                  reissues and oppositions with respect thereto.

         13.2.4   Right to Consult. During the Term, each Party shall copy the
                  other Party, or have the other Party copied, on all
                  substantive documents to the extent directly relating to the
                  Product or the Manufacture of the Product received from or to
                  be filed in any patent office, promptly following receipt from
                  the patent office and within a reasonable time prior to filing
                  with the patent office, respectively, including copies of each
                  patent application, official action, response to official
                  action, declaration, information disclosure statement, request
                  for terminal disclaimer, request for patent term extension and
                  request for reexamination. Consistent with the foregoing, each
                  Party shall have the right to comment on the prosecution of
                  such Patent Rights to the extent such Patent Rights are
                  directly related to the Product or the Manufacture of Product
                  and provide such comments to such other Party's patent
                  counsel, and such other Party shall require its patent counsel
                  to consider all such comments in good faith. If a Party fails
                  to provide its comments with respect to the prosecution by the
                  other Party of such Patent Rights within at least two (2)
                  Business Days prior to the deadline for filing or otherwise
                  responding to the relevant correspondence in the relevant
                  patent office, having been given a reasonable amount of time
                  to do so, such other Party shall be free to act without
                  consideration of such Party's comments.

         13.2.5   Abandonment of Prosecution. Each party will notify the other
                  Party in the event it desires to abandon its efforts to
                  prosecute, maintain or conduct any interferences,
                  re-examinations, reissues and oppositions directly relating to
                  the Product or the Manufacture of the Product under this
                  Section 13.2.5. Notification will be given within a reasonable
                  period (i.e., with sufficient time for such other Party to
                  take whatever action may be necessary) prior to the date on
                  which such Patent Rights will lapse or go abandoned (other
                  than for the purpose of filing a continuation or continuation
                  in part application). Such other Party will then have the
                  option, exercisable upon written notification to such Party,
                  to assume full responsibility, at its discretion and its sole
                  cost and expense to prosecute, maintain or conduct any
                  interferences, re-examinations, reissues and oppositions in
                  such country or countries.

         13.2.6   Assistance. Each Party shall provide assistance to the other
                  Party as reasonably requested for purposes of this Section
                  13.2, including in the event that such Patent Rights are being
                  prosecuted by other Party.

13.3     Infringement.

         13.3.1   [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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13.4     Enforcement Against Third Parties.

         13.4.1   [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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         [***]

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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13.5     [***]

13.6     Patent Marking. The Parties shall mark, and require their sublicensees
         and subcontractors to mark Product sold or distributed pursuant to this
         Agreement in accordance with the applicable patent Laws in the country
         or countries of Manufacture or sale thereof, to the extent required by
         Law.

                                   ARTICLE 14
                             TRADEMARK AND COPYRIGHT

14.1     Product Trademarks.

         14.1.1   Product Branding. Subject to the applicable Commercialization
                  Plan, the Parties shall use Commercially Reasonable Efforts to
                  use the Product Trademarks as the common brand name under
                  which Product will be marketed worldwide in order to maximize
                  brand equity and the corresponding return on Product
                  Development and Commercialization expenditures, unless on a
                  country-by-country basis, the SC otherwise reasonably
                  determines that use of such common Product Trademarks in a
                  particular country in the ROW would not be permitted by Law or
                  would not be beneficial from a commercial perspective. Serono
                  shall have the final decision-making authority on such
                  alternative trademarks in respect of the ROW, and CancerVax
                  shall have the final decision-making authority on such
                  alternative trademarks in respect of the United States.

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the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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         14.1.2   Ownership. All right, title and interest in Product Trademarks
                  shall be solely owned by CancerVax, except as expressly
                  provided herein. Serono agrees that it will not use marks that
                  are confusingly similar to the Product Trademarks for its
                  other products.

         14.1.3   Registration. CancerVax shall file, prosecute, register and
                  maintain the Product Trademarks [***] CancerVax will allow
                  Serono to record itself as the exclusive licensee of the
                  Product Trademarks in ROW, and shall furnish reasonable
                  assistance to Serono in effectuating such recordation. The DT
                  shall coordinate and assign right and responsibility for
                  registration of domain names that include or are similar to
                  the Product Trademarks.

14.2     Display; Approval; Quality Control. All Product labeling, packaging and
         Promotional Materials relating to Product shall display the appropriate
         Product Trademarks in a form and style and with a placement determined
         by the DT, subject to complying with all Laws and regulations and
         obtaining all necessary Approvals. All uses of the Product Trademarks
         shall be consistent with the quality control standards and reasonable
         trademark usage guidelines as CancerVax may establish, in coordination
         with the DT and Serono. Subject to Laws, unless otherwise agreed by the
         Parties, (a) with respect to Product labeling, packaging and
         Promotional Materials within the United States, the Serono Housemark
         will be printed in the lower left-hand corner and the CancerVax
         Housemark will be printed in the lower right-hand corner, and each of
         the Serono Housemark and the CancerVax Housemark will be printed in
         approximately the same font size in all such Product labeling,
         packaging and Promotional Materials, and (b) Product labeling,
         packaging and Promotional Materials in the ROW shall bear only the
         Serono Housemark.

14.3     Enforcement. CancerVax and Serono shall reasonably cooperate with each
         other to protect Product Trademarks. Each Party shall promptly notify
         the other party of any known, threatened or suspected infringement,
         imitation or unauthorized use of or unfair competition relating to
         Product Trademarks. The SC shall determine whether and to what extent
         to institute and prosecute or defend any actions or proceedings
         involving or affecting Product Trademarks, and all settlements relating
         thereto are subject to the SC's approval. The Parties shall reasonably
         cooperate in any action taken to enforce or defend their rights in
         Product Trademarks, including taking appropriate appeals.

14.4     Housemarks.

         14.4.1   Scope of Use. The CancerVax Housemark and Serono Housemark
                  shall be displayed on Product labeling and other Promotional
                  Materials relating to the Product as set forth in Section
                  14.2. All right, title and interest to the Serono Housemark
                  shall be owned by Serono. All right, title, and interest to
                  the CancerVax Housemark shall be owned by CancerVax. All use
                  of the CancerVax Housemark and Serono Housemark shall be
                  consistent with the quality control standards and reasonable
                  trademark usage practices as Serono and CancerVax each apply
                  to their Housemarks, respectively.

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         14.4.2   Ownership. Each Party shall retain all world-wide rights,
                  title and interest in and to its Housemark, except to the
                  extent expressly granted to the other Party herein. The other
                  Party shall include an appropriate trademark notice (e.g.,
                  (TM) or (R), as the case may be) with each use of any of the
                  other Party's Housemark.

         14.4.3   Unauthorized Use. Each Party shall not permit any Person other
                  than its sublicensees of the Product to use the other Party's
                  Housemark without the other Party's prior written consent.
                  Each Party acknowledges that the other Party's Housemark
                  involves valuable proprietary rights of the other Party. Each
                  Party shall promptly notify the other Party of any
                  unauthorized use of the other Party's Housemark that comes to
                  such Party's attention, and use best efforts to terminate such
                  unauthorized use. Each Party maintains the exclusive right to
                  take action against any Person that infringes its Housemark.

         14.4.4   Limitations. All uses by each Party of the other Party's
                  Housemark shall be subject to the other Party's review and
                  prior written approval. All goodwill arising out of the use of
                  a Party's Housemark by the other Party will inure to the sole
                  benefit of the Party that owns such marks. Each Party hereby
                  acknowledges the other Party's exclusive right, title and
                  interest in such other Party's Housemark and shall not contest
                  any part of that right, title and interest. In no event shall
                  a Party (a) represent in any way that it has or otherwise owns
                  any rights, title or interest in the other Party's Housemark
                  beyond the limited rights specifically granted herein, (b)
                  modify or impair any of the other Party's Housemarks or (c)
                  use the other Party's Housemark in a manner that is
                  derogatory, negative or otherwise injurious to the other Party
                  or would otherwise adversely affect the reputation or goodwill
                  of the other Party.

14.5     Copyrights. The Parties shall hold jointly an equal and undivided
         interest in and to the copyrights in all Product labeling or
         Promotional Materials relating to the Product (collectively, the
         "Copyrighted Works"), and agree to execute documentation necessary to
         effect this provision. Neither Party shall have any obligation to
         account to the other for profits or to obtain any approval of the other
         party to exploit, license or assign the jointly owned Copyrighted Works
         by reason of such joint ownership. To the extent such materials include
         or incorporate original work of authorship created by on Party prior to
         the Effective Date, the other Party shall not use, or make any
         proprietary claim with regard to, such pre-existing materials separate
         and apart from their use and inclusion in Copyrighted Works relating to
         Product. Each Party grants to the other a license to use such
         pre-existing works only in connection with Product and in accordance
         with the terms of this Agreement. The Parties shall cooperate with each
         other to enforce and defend, including registering with the United
         States Copyright Office or other Governmental Authorities, the Parties'
         interest in the Copyrighted Works. Each Party will, if requested by the
         PT, supply such documentation or other information required to support
         any application or registration of the Copyrighted Works with any
         applicable Governmental Authority, or to evidence or perfect their
         rights in and to the Copyrighted Works under this Section 14.5.

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                                   ARTICLE 15
                              TERM AND TERMINATION

15.1     Term. Unless terminated earlier pursuant to Section 15.2 or terminated
         or extended by the written agreement of the Parties, this Agreement
         shall commence on the Effective Date and shall continue in effect until
         [***]

15.2     Rights of Termination.

         15.2.1   Termination by Serono for Convenience. Serono shall have the
                  right to terminate this Agreement in its entirety at any time
                  in its sole discretion by providing CancerVax with written
                  notice [***] days in advance.

         15.2.2   Termination by Either Party for Breach. Either Party may,
                  without prejudice to any other remedies available to it at law
                  or in equity, terminate this Agreement in the event that the
                  other Party (as used in this subsection, the "Breaching
                  Party") shall have materially breached its obligations under
                  this Agreement and the Breaching Party has not cured such
                  default within [***]

         15.2.3   Termination by Either Party for Bankruptcy Events. Either
                  Party may terminate this Agreement upon the filing or
                  institution of bankruptcy, reorganization, liquidation or
                  receivership proceedings by or against the other Party, or
                  upon an assignment by the other Party of a substantial portion
                  of its assets for the benefit of creditors; provided, that in
                  the case of any involuntary bankruptcy proceeding, such right
                  to terminate shall only become effective if the bankrupt Party
                  consents to the involuntary bankruptcy or such proceeding is
                  not dismissed within ninety (90) days after the filing
                  thereof.

         15.2.4   Termination in the Event of a Competing Product. CancerVax may
                  terminate this Agreement in accordance with Section 2.6.1, if
                  applicable.

15.3     Effect of Expiration or Termination.

         15.3.1   All Instances. Upon expiration of the Term or its earlier
                  termination pursuant to Section 15.2, the Parties will
                  cooperate to wind down the collaboration and shall divide the
                  remaining assets as follows:

                  (a)      Serono's licenses hereunder, including under Sections
                           2.1.1, 2.1.2 and 14.5 shall terminate as of such
                           termination date;

                  (b)      CancerVax's licenses under Sections 2.2.3 and 14.5
                           shall terminate as of such termination date, but any
                           license pursuant to Section 2.2.1 shall continue in
                           accordance with its terms, except in the case of a
                           termination

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                                      -74-
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                           by Serono pursuant to Section 15.2.2 or 15.2.3, in
                           which case such license shall terminate;

                  (c)      each Party shall, within thirty (30) days after such
                           termination, return or cause to be returned to the
                           other Party, at such other Party's cost, all
                           Confidential Information of the other Party in
                           tangible form and substances or compositions
                           delivered or provided by such other Party, as well as
                           any other material provided by the other Party in any
                           medium, except that CancerVax may, except in the case
                           of a termination by Serono pursuant to Section 15.2.2
                           or 15.2.3, retain any Confidential Information of
                           Serono applicable to any license pursuant to Section
                           2.2.1 in accordance with the terms of such license;

                  (d)      each Party shall pay all amounts then due and owing
                           as of the termination date to the other Party;

                  (e)      to the extent not prohibited by Law, the Parties
                           shall wind down any clinical trials that are underway
                           in respect of the Product, taking into account the
                           health and safety of the subjects enrolled therein,
                           or, if agreed by the Parties, transfer such trials to
                           CancerVax;

                  (f)      Serono shall, as promptly as commercially
                           practicable, to the extent not prohibited by Law,
                           transfer to CancerVax, at CancerVax's cost,
                           possession and ownership of all correspondence with
                           Governmental Authorities, filings and approvals
                           (including all Approvals) to the extent relating to
                           the Development, Manufacture or Commercialization of
                           the Product;

                  (g)      Serono shall, as promptly as commercially
                           practicable, to the extent not prohibited by Law, at
                           CancerVax's cost, (i) provide to CancerVax copies of
                           all data, reports, records and materials in Serono's
                           possession or control reasonably necessary for the
                           Development, Manufacture or Commercialization of the
                           Product, (ii) cooperate with CancerVax to effect the
                           return of CancerVax Know-How and (iii) to the extent
                           reasonably necessary for the Manufacture of the
                           Product, provide to CancerVax a technology transfer
                           package and assistance relating to Know-How that
                           cannot be reasonably conveyed pursuant to clause (i)
                           above;

                  (h)      Serono shall reasonably cooperate with CancerVax to
                           permit CancerVax to, at CancerVax's option in its
                           sole discretion and at its cost, assume all rights
                           and obligations of Serono under any Third Party
                           contracts solely to the extent that they relate to
                           the Development, Manufacture or Commercialization of
                           the Product, and shall, as promptly as commercially
                           practicable, at Serono's cost, cancel and cease
                           operations under any such Third Party contracts not
                           so assumed by CancerVax;

                                      -75-
<PAGE>

                  (i)      Serono shall promptly take all steps necessary to
                           assign to CancerVax, at CancerVax's cost, (i) any
                           Product Trademarks in the ROW held in Serono's name
                           as permitted under this Agreement, other than the
                           Serono Housemark, (ii) ownership of copyrights in
                           Promotional Materials and other Copyrighted Works and
                           (iii) ownership of copyrights or other intellectual
                           property rights in any other reasonably usable
                           marketing materials; and each of the foregoing shall
                           also, if available, be provided in camera ready or
                           digital form;

                  (j)      CancerVax may, in its sole discretion, purchase from
                           Serono at Serono's cost (i.e., in respect of
                           Promotional Materials for the United States, the
                           amount allocated to and incurred by Serono therefor
                           pursuant to Section 1.18.7, and in respect of
                           Promotional Materials for the ROW, the cost incurred
                           by Serono to produce such Promotional Materials), all
                           or any part of Serono's inventory of Promotional
                           Materials and any other reasonably usable marketing
                           materials, and Serono shall promptly deliver to
                           CancerVax, at CancerVax's cost and direction, any
                           such materials purchased by CancerVax and destroy any
                           such materials not purchased by CancerVax;

                  (k)      Serono shall, as promptly as commercially
                           practicable, deliver to CancerVax or its designee or
                           dispose of, at CancerVax's direction, any
                           then-existing Product inventory (including any
                           labeling or packaging materials), which Product
                           inventory, if directed by CancerVax to be transferred
                           to it, shall be transferred on an "as-is" basis and
                           paid for by CancerVax, if in saleable condition, at
                           CancerVax's Cost of Goods;

                  (l)      [***] and

                  (m)      except as specified in this Section 15.3 and the
                           surviving obligations specified in Section 15.5, all
                           rights and obligations of the Parties under this
                           Agreement shall terminate as of the date of such
                           termination.

         15.3.2   Additional Effect of Termination by Serono for Convenience or
                  by CancerVax for Competing Product. In addition to the effects
                  set forth in Section 15.3.1, upon any termination of this
                  Agreement by Serono pursuant to Section 15.2.1 or CancerVax
                  pursuant to Section 15.2.4, [***]

                                      -76-
<PAGE>

15.4     Effect of Termination for Bankruptcy Events. In the event this
         Agreement is terminated by a Party (as used in this subsection, the
         "Terminating Party") pursuant to Section 15.2.3 due to the rejection of
         this Agreement by or on behalf of the other Party (as used in this
         subsection, the "Bankrupt Party") under Section 365 of the United
         States Bankruptcy Code (the "Code"), all licenses and rights to
         licenses granted under or pursuant to this Agreement by the Bankrupt
         Party to the Terminating Party are, and shall otherwise be deemed to
         be, for purposes of Section 365(n) of the Code, licenses of rights to
         "intellectual property" as defined under Section 101(35A) of the Code.
         The Parties agree that the Terminating Party, as a licensee of such
         rights under this Agreement, shall retain and may fully exercise all of
         its rights and elections under the Code, and that upon commencement of
         a bankruptcy proceeding by or against the Bankrupt Party under the
         Code, the Terminating Party shall be entitled to a complete duplicate
         of or complete access to (as the Terminating Party deems appropriate),
         any such intellectual property and all embodiments of such intellectual
         property. Such intellectual property and all embodiments thereof shall
         be promptly delivered to the Terminating Party (a) upon any such
         commencement of a bankruptcy proceeding upon written request therefore
         by the Terminating Party, unless the Bankrupt Party elects to continue
         to perform all of its obligations under this Agreement or (b) if not
         delivered under (a) above, upon the rejection of this Agreement by or
         on behalf of the Bankrupt Party upon written request therefore by the
         Terminating Party. The foregoing provisions of this Section 15.4 are
         without prejudice to any rights the Terminating Party may have under
         the Code or other Laws. Notwithstanding anything to the contrary in
         this Agreement, (x) in the event that CancerVax is the Bankrupt Party,
         the Co-Promotion rights hereunder shall convert automatically to a
         license from CancerVax to Serono and (y) in the event Serono is the
         Bankrupt Party and this Agreement is rejected by or on behalf of the
         Bankrupt Party, the provisions of Section 15.3 shall apply.

15.5     Survival. Expiration or termination of this Agreement shall not relieve
         the Parties of any obligation accruing, and shall be without prejudice
         to the rights of either Party against the other Party accrued or
         accruing, under this Agreement prior to such expiration or termination,
         including the obligation to pay royalties or Distributable Profits, as
         the case may be, with respect to Product sold prior to such expiration
         or termination. The following provisions shall survive the expiration
         or termination of this Agreement and shall continue in effect for the
         period noted: [***]

                                   ARTICLE 16
                               DISPUTE RESOLUTION

16.1     [***]

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

                                      -77-
<PAGE>

                                   ARTICLE 17
                  LIMITATIONS ON PURCHASES OF EQUITY SECURITIES

17.1     Purchases of Equity Securities. During the Term and for a period of
         [***] thereafter, except pursuant to the Stock Purchase Agreement,
         Serono and its Affiliates and any representatives of Serono or its
         Affiliates will not (and will not assist or encourage other to)
         directly or indirectly in any manner:

         17.1.1   acquire, or agree to acquire, directly or indirectly, alone or
                  in concert with others, by purchase, gift or otherwise, any
                  direct or indirect beneficial ownership (within the meaning of
                  Rule l3d-3 under the Securities Exchange Act of 1934, as
                  amended (the "Exchange Act")) or interest in any securities or
                  direct or indirect rights, warrants or options to acquire, or
                  securities convertible into or exchangeable for, any
                  securities of CancerVax;

         17.1.2   make, or in any way participate in, directly or indirectly,
                  alone or in concert with others, any "solicitation" of
                  "proxies" to vote (as such terms are used in the proxy rules
                  of the Securities and Exchange Commission promulgated pursuant
                  to Section 14 of the Exchange Act); provided, that the
                  prohibition in this Section 17.1.2 shall not apply to
                  solicitations exempted from the proxy solicitation rules by
                  Rule 14a-2 under the Exchange Act as such Rule 14a-2 is in
                  effect as of the date hereof;

         17.1.3   form, join or in any way participate in a "group" within the
                  meaning of Section 13(d)(3) of the Exchange Act with respect
                  to any voting securities of CancerVax;

                                      -78-
<PAGE>

         17.1.4   acquire or agree to acquire, directly or indirectly, alone or
                  in concert with others, by purchase, exchange or otherwise,
                  (a) any of the assets, tangible or intangible, of CancerVax or
                  (b) direct or indirect rights, warrants or options to acquire
                  any assets of CancerVax, except for such assets as are then
                  being offered for sale by CancerVax;

         17.1.5   enter into any arrangement or understanding with others to do
                  any of the actions restricted or prohibited under this ARTICLE
                  17; or

         17.1.6   otherwise act in concert with others, to seek to offer to
                  CancerVax or any of its stockholders any business combination,
                  restructuring, recapitalization or similar transaction to or
                  with CancerVax or otherwise seek in concert with others, to
                  control, change or influence the management, board of
                  directors or policies of CancerVax or nominate any person as a
                  director of CancerVax who is not nominated by the then
                  incumbent directors, or propose any matter to be voted upon by
                  the stockholders of CancerVax.

17.2     Exceptions for Purchasing Securities of CancerVax.

         17.2.1   Permitted Acquisitions. Nothing herein shall prevent:

                  (a)      Serono from purchasing additional equity securities
                           of CancerVax if, after such purchase, Serono and its
                           Affiliates would own no greater percent of the total
                           voting power of all voting securities of CancerVax
                           then outstanding than Serono owned immediately
                           following the Effective Date;

                  (b)      Serono or Serono's employees from purchasing
                           securities of CancerVax pursuant to (a) a pension
                           plan established for the benefit of Serono's
                           employees, (b) any employee benefit plan of Serono or
                           (c) any stock portfolios not controlled by Serono or
                           any of its Affiliates that invest in CancerVax among
                           other companies; or

                  (c)      Serono from acquiring securities of another
                           biotechnology or pharmaceutical company that
                           beneficially owns any of CancerVax's securities.

         17.2.2   Suspension of Standstill. The restrictions contained in
                  Section 17.1 shall be suspended during the period in which any
                  of the following has occurred: [***] provided, that the
                  restrictions shall be reinstated if [***]

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

                                      -79-
<PAGE>

                                   ARTICLE 18
                                  MISCELLANEOUS

18.1     Registration and Filing of this Agreement. Subject to and in
         furtherance of Section 10.4, to the extent, if any, that either Party
         concludes in good faith that it or the other Party is required to file
         or register this Agreement or a notification thereof with any
         Governmental Authority, including the Securities and Exchange
         Commission, the Competition Directorate of the Commission of the
         European Union or the U.S. Federal Trade Commission, in accordance with
         Law, such Party shall inform the other Party thereof. Should both
         Parties jointly agree that either of them is required to submit or
         obtain any such filing, registration or notification, they shall
         cooperate, each at its own expense, in such filing, registration or
         notification and shall execute all documents reasonably required in
         connection therewith. In such filing, registration or notification, the
         Parties shall request confidential treatment of sensitive provisions of
         this Agreement, to the extent not prohibited by Law. The Parties shall
         promptly inform each other as to the activities or inquiries of any
         such Governmental Authority relating to this Agreement, and shall
         reasonably cooperate to respond to any request for further information
         therefrom on a timely basis.

18.2     Accounting Procedures. Each Party shall calculate all amounts hereunder
         and perform other accounting procedures required hereunder and
         applicable to it in accordance with either (a) United States generally
         accepted accounting principles (US GAAP) or (b) the conventions, rules
         and procedures promulgated by the International Accounting Standards
         Committee (International Accounting Standards), whichever is normally
         used by such Party to calculate its financial position, and in each
         case consistently applied, including consistently applied throughout
         the organization and across all products of such Party. In the event
         that any discrepancy arises as to the outcome of such calculations or
         as to financial terms and standards used in this Agreement by reason of
         such use of different accounting principles, the Parties shall
         cooperate in good faith to resolve such differences.

18.3     Patient Information. CancerVax and Serono agree to abide by all Laws
         and Governmental Orders of all applicable Governmental Authorities
         concerning the confidentiality or protection of patient identifiable
         information and patients' protected health information, as defined by
         U.S. C.F.R. Part 160 or personal data as defined by EU Directive
         95/46/EC or any other applicable legislation.

18.4     Non-Solicitation. During the Term neither Party shall directly solicit,
         recruit, induce, encourage or attempt to induce or encourage any
         employee of the other Party who was involved in the Development,
         Manufacture or Commercialization of the Product under this Agreement to
         terminate his or her employment with such other Party and become
         employed by or consult for such other Party whether or not such
         employee is a full-time employee of such other Party, and whether or
         not such employment is pursuant to a written agreement or is at-will;
         provided, that in no event shall the foregoing apply to (a)

                                      -80-
<PAGE>
         unsolicited inquires made by an employee of a Party to the other Party,
         (b) unsolicited inquiries received from an employee of a Party as the
         result of a general notice or advertisement placed by the other Party,
         (c) unsolicited inquiries received from a Third Party representing an
         employee of a Party who is generally seeking alternate employment and
         (d) candidates who are employees of the other Party put forward by a
         Third Party conducting a search on behalf of a Party to fill a position
         in the normal course of business; provided, that such candidate shall
         have become a client of such Third Party during the course of such
         search via unsolicited inquiry by such candidate to such Third Party.

18.5     Force Majeure. The occurrence of an event which materially interferes
         with the ability of a Party to perform its obligations or duties
         hereunder which is not within the reasonable control of the Party
         affected or any of its Affiliates, not due to malfeasance by such Party
         or its Affiliates, and which could not with the exercise of due
         diligence have been avoided (each, a "Force Majeure Event"), including
         an injunction, order or action by a Governmental Authority, fire,
         accident, labor difficulty, strike, riot, civil commotion, act of God,
         inability to obtain raw materials, delay or errors by shipping
         companies or change in Laws, shall not excuse such Party from the
         performance of its obligations or duties under this Agreement, but
         shall merely suspend such performance during the continuation of the
         Force Majeure Event. The Party prevented from performing its
         obligations or duties because of a Force Majeure Event shall promptly
         notify the other Party in writing of the occurrence and particulars of
         such Force Majeure Event and shall provide the other Party, from time
         to time, with its best estimate of the duration of such Force Majeure
         Event and with notice of the termination thereof. The Party so affected
         shall use Commercially Reasonable Efforts to avoid or remove such
         causes of nonperformance as soon as is reasonably practicable. The
         suspension of performance shall be of no greater scope and no longer
         duration than is necessary based on such Party's Commercially
         Reasonable Efforts. Upon termination of the Force Majeure Event, the
         performance of any suspended obligation or duty shall promptly
         recommence. The Party subject to the Force Majeure Event shall not be
         liable to the other Party for any direct, indirect, consequential,
         incidental, special, punitive, exemplary or other damages arising out
         of or relating to the suspension or termination of any of its
         obligations or duties under this Agreement by reason of the occurrence
         of a Force Majeure Event, so long as such Party complies in all
         material respects with its obligations under this Section 18.5.

18.6     Further Assurances. At the reasonable request of Party, the other Party
         shall do, execute, acknowledge, deliver and file (or cause the same)
         all such further acts, deeds, transfers, conveyances, assignments or
         assurances as may be reasonably required to effect any provision of
         this Agreement, including in particular those of Sections 15.3 and
         15.4.

18.7     Relationship of the Parties; Expenses. Each Party shall bear its own
         costs incurred in the performance of its obligations hereunder without
         charge or expense to the other except as expressly provided in this
         Agreement. Neither Party shall have any responsibility for the hiring,
         termination or compensation of the other Party's employees or for any
         employee benefits of such employee. No employee or representative of a
         Party shall have any authority to bind or obligate the other Party to
         this Agreement for any sum or in any

                                      -81-
<PAGE>

         manner whatsoever, or to create or impose any contractual or other
         liability on the other Party without said Party's approval. For all
         purposes, and notwithstanding any other provision of this Agreement to
         the contrary, Serono's legal relationship under this Agreement to
         CancerVax shall be that of independent contractor. This Agreement is
         not a partnership agreement and nothing in this Agreement shall be
         construed to establish a relationship of co-partners or joint venturers
         between the Parties.

18.8     No Third Party Beneficiaries. None of the provisions of this Agreement
         shall be for the benefit of or enforceable by any Third Party,
         including any creditor of either Party hereto. No such Third Party
         shall obtain any right under any provision of this Agreement or shall
         by reasons of any such provision make any Claim in respect of any debt,
         liability or obligation (or otherwise) against either Party.

18.9     Notices. All demands, notices, consents, approvals, reports, requests
         and other communications hereunder must be in writing and will be
         deemed to have been duly given only if delivered personally, or by mail
         (first class, postage prepaid), or by overnight delivery using a
         globally-recognized carrier, to the Parties at the following addresses:

                  (a)      if to CancerVax, to:

                           CancerVax Corporation
                           2110 Rutherford Road
                           Carlsbad, CA 92008 USA
                           Attn: General Counsel
                           Facsimile No.: (760) 494-4282

                  (b)      with a copy to:

                           Morgan, Lewis & Bockius LLP
                           502 Carnegie Center
                           Princeton, New Jersey 08540  USA
                           Attn: Manya S. Deehr, Esq.
                           Facsimile No.: (877) 432-9652

                  (c)      if to Serono, to:

                           Serono Technologies S.A.
                           Zone Industrielle de l'Ouriettaz
                           1170 Aubonne, Switzerland
                           Attn: General Manager
                           Facsimile No.: 41-22-345-5081

                                      -82-
<PAGE>

                  (d)      with a copy to:

                           Serono International S.A.
                           15bis, Chemin des Mines
                           Case Postale 54
                           CH-1211 Geneve 20
                           Switzerland
                           Attn: General Counsel
                           Facsimile No.: 41-22-739-3070

         or to such other address as the addressee shall have last furnished in
         writing in accord with this provision to the addressor. All notices
         shall be deemed effective upon receipt by the addressee.

18.10    Assignment and Delegation.  [***]

18.11    Severability. In the event of the invalidity of any provisions of this
         Agreement, the Parties agree that such invalidity shall not affect the
         validity of the remaining provisions of this Agreement. With the
         exception of Section 2.6, the Parties will replace an invalid provision
         with valid provisions which most closely approximate the purpose and
         economic effect of the invalid provision. With the exception of Section
         2.6, in the event that the terms and conditions of this Agreement are
         materially altered as a result of the preceding sentences, the Parties
         shall renegotiate the terms and conditions of this Agreement in order
         to resolve any inequities. Nothing in this Agreement shall be
         interpreted so as to require either Party to violate any Laws.

18.12    Headings; Construction; Certain Conventions. The headings used in this
         Agreement have been inserted for convenience of reference only and do
         not define or limit the provisions

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

                                      -83-
<PAGE>
         hereof. The Schedules and Exhibits to this Agreement are incorporated
         herein by reference and shall be deemed a part of this Agreement.
         Unless otherwise expressly provided herein or the context of this
         Agreement otherwise requires, (a) words of any gender include each
         other gender, (b) words such as "herein", "hereof", and "hereunder"
         refer to this Agreement as a whole and not merely to the particular
         provision in which such words appear, (c) words using the singular
         shall include the plural, and vice versa, (d) the words "include,"
         "includes" and "including" shall be deemed to be followed by the phrase
         "but not limited to", "without limitation", "inter alia" or words of
         similar import, (e) the word "or" shall be deemed to include the word
         "and" (e.g., "and/or") and (f) references to "ARTICLE," "Section,"
         "subsection", "clause" or other subdivision, or to a Schedule or
         Exhibit, without reference to a document are to the specified
         provision, Schedule or Exhibit of this Agreement. This Agreement shall
         be construed as if it were drafted jointly by the Parties.

18.13    Entire Agreement; Amendments. This Agreement, together with the Related
         Agreements, constitutes the entire agreement between the Parties with
         respect to the within subject matter and supersedes all previous
         agreements and understandings between the Parties with respect thereto,
         whether written or oral. This Agreement may be altered, amended or
         changed only by a writing making specific reference to this Agreement
         and signed by duly authorized representatives of CancerVax and Serono.

18.14    Waiver. Any term or condition of this Agreement may be waived at any
         time by the Party that is entitled to the benefit thereof, but no such
         waiver shall be effective unless set forth in a written instrument duly
         executed by or on behalf of the Party waiving such term or condition.
         No waiver by any Party of any term or condition of this Agreement, in
         any one or more instances, shall be deemed to be or construed as a
         waiver of the same or any other term or condition of this Agreement on
         any future occasion.

18.15    Remedies Cumulative. Except as expressly set forth in this Agreement,
         all rights and remedies available to a Party, whether under this
         Agreement or afforded by Law, equity or otherwise, will be cumulative
         and not in the alternative to any other rights or remedies that may be
         available to such Party.

18.16    Governing Law. This Agreement shall be construed, and the respective
         rights of the Parties determined, according to the substantive Laws of
         the State of New York notwithstanding the provisions governing conflict
         of Laws thereunder to the contrary, except matters of intellectual
         property which shall be determined in accordance with U.S. federal
         patent Laws or the intellectual property Laws relevant to the
         intellectual property in question. The UNCITRAL Convention for the
         International Sale of Goods, as well as any other unified Laws relating
         to the conclusion and implementation of contracts for the international
         sale of goods, shall not apply.

18.17    Counterparts; Fax Signatures. This Agreement may be executed in any two
         (2) counterparts, including by facsimile, each of which, when executed,
         shall be deemed to be an original and both of which together shall
         constitute one and the same document.

                            [SIGNATURE PAGE FOLLOWS]

                                      -84-
<PAGE>

         IN WITNESS WHEREOF, CancerVax and Serono, by their duly authorized
officers, have executed this Agreement as of the Effective Date.

CANCERVAX CORPORATION                    SERONO TECHNOLOGIES S.A.

By: /s/ David F. Hale                    By: /s/ Leon Bushara
   ---------------------------------        ------------------------------------
      Name:  David F. Hale                     Name:  Leon Bushara
      Title: President & CEO                   Title: Authorized Representative

Acknowledged solely in connection with
ARTICLE 7 (Co-Promotion) and ARTICLE 10 (Confidentiality)
as of                      , 20  :
      ---------------------    --

------------------------------------

By:
   ---------------------------------
       Name:
       Title:

              SIGNATURE PAGE TO COLLABORATION AND LICENSE AGREEMENT

<PAGE>

                                  SCHEDULE 1.13
                                CANCERVAX PATENTS

                                     [***]

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

                                  CONFIDENTIAL

<PAGE>

                                    EXHIBIT A

                  TERMS FOR MANUFACTURING AND SUPPLY AGREEMENT

-                                    [***]

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

                                                                    Exhibit 10.2

                            STOCK PURCHASE AGREEMENT

                          DATED AS OF DECEMBER 15, 2004

                                 BY AND BETWEEN

                              CANCERVAX CORPORATION

                                       AND

                                   SERONO B.V.

<PAGE>

                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT (this "Agreement"), dated as of December
15, 2004, is made by and between CancerVax Corporation, a Delaware corporation
("CancerVax"), and Serono B.V., a Netherlands corporation ("Serono"). CancerVax
and Serono may each be referred to as a "Party" or together, the "Parties".

                                    RECITALS

         WHEREAS, concurrently with the execution of this Agreement, CancerVax,
Serono and certain other parties are entering into a Third Amended and Restated
Investors' Rights Agreement (the "Registration Rights Agreement"), and CancerVax
and an Affiliate of Serono are entering into a Collaboration and License
Agreement (the "Collaboration Agreement" and together with this Agreement, the
"Transaction Agreements"); and

         WHEREAS, it is contemplated by the Collaboration Agreement that
CancerVax issue and sell to Serono, and Serono purchase, shares of Common Stock
(as defined below) of CancerVax pursuant to the terms and conditions of this
Agreement.

         NOW, THEREFORE, in consideration of the foregoing premises and the
representations, covenants and agreements contained herein, CancerVax and
Serono, intending to be legally bound, hereby agree as follows:

                                    ARTICLE 1
                                   DEFINITIONS

         For purposes of this Agreement, in addition to the other terms defined
elsewhere in this Agreement (as set forth in the chart below), the following
initially capitalized terms, whether used in the singular or plural, shall have
the following meanings:

         1.1      "Affiliate" means any Person directly or indirectly controlled
by, controlling, or under common control with, a Person, but only for so long as
such control shall continue. For purposes of this definition, "control"
(including, with correlative meanings, "controlled by", "controlling," and
"under common control with") means, with respect to a Person, possession,
directly or indirectly, of (a) the power to direct or cause direction of the
management and policies of such Person (whether through ownership of securities
or partnership or other ownership interests, by contract or otherwise) or (b) at
least fifty percent (50%) of the voting securities (whether directly or pursuant
to any option, warrant or other similar arrangement) or other comparable equity
interests of such Person. For the avoidance of doubt, neither of the Parties
shall be deemed to be an Affiliate of the other.

         1.2      "Business Day" means any day that is not a Saturday, Sunday,
or a day on which banking institutions in Carlsbad, California or The
Netherlands are authorized or required by Law to be closed for business.

         1.3      "Change in Control" shall be mean the occurrence of any of the
following events: (a) if a Party sells, conveys or otherwise disposes of all or
substantially all of its assets, (b) if a Party merges or consolidates with, or
is acquired by, any other corporation or business entity or

                                       1
<PAGE>

effects any other transaction or series of transactions the result of which is
that shareholders of such Party immediately prior to such transaction or the
first of such series of transactions do not own at least fifty percent (50%) of
the outstanding voting power of the surviving corporation immediately after the
completion of such transaction or the last of such series of transactions, (c) a
Person, together with its Affiliates, becoming the direct or beneficial owner of
fifty percent (50%) or more of the combined voting power of the outstanding
securities or outstanding shares of common stock of such Party, or (d) if a
Party effects any other transaction or series of transactions in which the
members of the Board of Directors of such Party prior to the transaction or the
first of such series of transactions constituting the putative Change in Control
event (the "Continuing Directors"), together with any members of the Board of
Directors appointed by the Continuing Directors, do not constitute a majority of
the members of the Board of Directors of the enterprise following completion of
the transaction or the last of such series of transactions constituting the
putative Change in Control event.

         1.4      "Environmental Permits" shall mean all permits, licenses,
approvals, authorizations, consents or registrations required under applicable
environmental Laws.

         1.5      "Governmental Authority" means any applicable United States
government authority, court, tribunal, arbitrator, agency, legislative body,
commission, or any state, province, county, city or other political subdivision
thereof.

         1.6      "Knowledge" means, with respect to a matter that is the
subject of a given representation or warranty, the knowledge, information or
belief that the executive officers of CancerVax, have (or should reasonably
have) after making reasonable inquiry into the relevant subject matter.

         1.7      "Laws" or "Law" means all applicable laws, statutes, rules,
regulations, ordinances and other pronouncements having the binding effect of
law of any Governmental Authority.

         1.8      "Material Adverse Effect" means any state of facts, event,
change, development, effect, condition, occurrence, non-occurrence, or
circumstance that, individually or in the aggregate (taking into account all
other such states of fact, events, conditions, non-occurrences or circumstances)
(a) give rise to or could reasonably be expected to give rise to a material
adverse effect on the business, condition (financial or otherwise), results of
operations, properties or assets of CancerVax or its subsidiaries, or (b)
prevents or materially impedes the consummation of the transactions contemplated
by the Transaction Agreements.

         1.9      "Person" means any natural person, corporation, general
partnership, limited partnership, joint venture, proprietorship, or other
business organization.

         1.10     "SEC" means the U.S. Securities and Exchange Commission.

         1.11     Other Terms.

"Act" shall have the meaning set forth in Section 3.19.1.

"Agreement" shall have the meaning set forth in the first paragraph of this
Agreement.

                                       2
<PAGE>

"Action" shall have the meaning set forth in Section 3.7.

"CancerVax" shall have the meaning set forth in the first paragraph of this
Agreement.

"CancerVax Financial Statements" shall have the meaning set forth in Section
3.19.2.

"CancerVax SEC Documents" shall have the meaning set forth in Section 3.19.1.

"CancerVax Indemnified Parties" shall have the meaning set forth in Section
6.1.2.

"Closing" shall have the meaning set forth in Section 2.3.

"Closing Date" shall have the meaning set forth in Section 2.3.

"Collaboration Agreement" shall have the meaning set forth in the Recitals.

"Common Stock" shall have the meaning set forth in Section 3.2.

"Exchange Act" shall have the meaning set forth in Section 3.19.

"Lock-up Period" shall have the meaning set forth in Section 5.2.

"Parties" and "Party" shall have the meaning set forth in the first paragraph of
this Agreement.

"Purchase Price" shall have the meaning set forth in Section 2.1.

"Registration Rights Agreement" shall have the meaning set forth in the
Recitals.

"Rights" shall have the meaning set forth in Section 3.8.

"Rule 144" shall have the meaning set forth in Section 5.1.

"Purchased Stock" shall have the meaning set forth in Section 2.1.

"Serono" shall have the meaning set forth in the first paragraph of this
Agreement.

"Serono Indemnified Parties" shall have the meaning set forth in Section 6.1.1.

"Third Quarter 10-Q" shall have the meaning set forth in Section 3.8.

"Transaction Agreements" shall have the meaning set forth in the Recitals.

"2003 Annual Report" shall have the meaning set forth in Section 3.8.

                                    ARTICLE 2
                        PURCHASE AND SALE OF COMMON STOCK

         2.1      Issuance of Common Stock. Subject to the terms and conditions
of this Agreement, on the Closing Date, CancerVax shall issue and sell to
Serono, and Serono shall purchase, 1,000,000 shares of Common Stock (the
"Purchased Stock") at a purchase price per share of Twelve United States dollars
(U.S. $12.00), for an aggregate purchase price of Seventeen Million and Four
United States dollars (U.S. $12,000,000) (the "Purchase Price").

         2.2      Conditions to Closing. The obligations of each Party to
consummate and effect this Agreement and the transactions contemplated hereby
shall be subject to the satisfaction at or prior to the Closing Date of the
following conditions, unless otherwise waived in writing: (a) contemporaneously
with the Closing hereof the other Party (or in the case of Serono, Serono and
Serono's Affiliate) shall deliver each of the other Transaction Agreements, duly
executed by it, (b) CancerVax, Serono and holders of 60% in interest of
Registrable Securities (as such term is defined in the Registration Rights
Agreement) shall have executed the Registration Rights Agreement, and (c) Serono
shall have received an opinion of Latham & Watkins LLP, counsel to CancerVax,
dated the Closing Date, in the form attached hereto as Exhibit A.

                                       3
<PAGE>

         2.3      Closing. The purchase and sale of the Purchased Stock (the
"Closing") shall occur at CancerVax's offices at 2110 Rutherford Road, Carlsbad,
California, 92008, USA, on the date hereof unless the conditions to closing set
forth in Section 2.2 shall not have been satisfied or waived, and in such event
the Closing shall occur two (2) Business Days after the date on which such
conditions are satisfied or waived (unless otherwise agreed to by the Parties).
The date on which the Closing occurs is referred to herein as the "Closing
Date".

         2.4      Delivery.

                  2.4.1    Purchase Price. At the Closing, Serono shall deliver
to CancerVax the Purchase Price by wire transfer of same day funds to the bank
account designated by CancerVax to Serono.

                  2.4.2    Stock Certificate. At promptly as practicable
following the Closing, CancerVax shall deliver to Serono a stock certificate,
registered in Serono's name, representing the Purchased Stock and bearing the
legends required by Section 5.3.

                                    ARTICLE 3
                   REPRESENTATIONS AND WARRANTIES OF CANCERVAX

         As a material inducement to Serono to enter into this Agreement,
CancerVax hereby represents and warrants to Serono as of the date hereof and
makes such representation and warranty as of the Closing Date as follows:

         3.1      Organization. CancerVax is a corporation duly organized,
validly existing and in good standing under the Laws of the State of Delaware.
Except as set forth on Exhibit 21 to the 2003 Annual Report and except for the
CancerVax Research Foundation, CancerVax has no subsidiaries and does not own or
control, directly of indirectly, any shares of capital stock of any other
corporation or any interest in any partnership, limited liability company,
association, joint venture or other non-corporate business enterprise. CancerVax
owns (directly or indirectly) all of the capital stock of each of its
subsidiaries free and clear of any lien, charge, security interest, encumbrance,
right of first refusal or other restriction and all the issued and outstanding
shares of capital stock of each subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights. CancerVax has
all requisite corporate power and authority to own and operate its properties
and assets, to carry on its business as now conducted and as proposed to be
conducted in the CancerVax SEC Documents, to enter into this Agreement, to issue
and sell the Purchased Stock and to carry out the other transactions
contemplated by this Agreement. CancerVax is qualified to transact business and
is in good standing in each jurisdiction in which the character of the
properties and assets owned, leased or operated by CancerVax or the nature of
the business conducted by CancerVax makes such qualification necessary, except
as would not reasonably be expected to have a Material Adverse Effect. CancerVax
has furnished to Serono complete and accurate copies of its certificate of
incorporation and bylaws, each as amended to date and presently in effect.

         3.2      Capitalization. The authorized capital of CancerVax as of
December 13, 2004 consists of 75,000,000 shares of common stock, par value
$0.00004 per share (the "Common Stock"), of which 26,797,112 shares are issued
and outstanding, and 10,000,000 shares of preferred stock (of which 75,000
shares are designated as Series A Junior Participating Preferred

                                       4
<PAGE>

Stock), none of which are issued and outstanding. Except as disclosed in filings
CancerVax has made under the Exchange Act or the Act or as provided in the
Transaction Agreements, there are not, nor upon the consummation of the
transactions contemplated hereby shall there be (a) any outstanding options,
calls, warrants, rights (including conversion or preemptive rights and rights of
first refusal) or agreements pursuant to which CancerVax is or may become
obligated to issue, sell or repurchase, or offer to issue, sell or repurchase,
any shares of its capital stock or any other securities of CancerVax or (b) any
restrictions on the transfer of capital stock of CancerVax other than pursuant
to state and federal securities Laws. Except as set forth in the CancerVax SEC
Documents, CancerVax is not a party to any agreement or understanding relating
to the voting of shares of capital stock of CancerVax or, to the Knowledge of
CancerVax, is there any agreement or understanding relating to the giving of
written consents by a stockholder or director of CancerVax. To the Knowledge of
CancerVax, Schedule A to the Registration Rights Agreement sets forth the number
of "Registrable Securities" (as such term is defined in the Registration Rights
Agreement) as of the date hereof.

         3.3      Authorization. Except for the approval of the holders of
Registrable Securities required by Section 4.7 of CancerVax's Second Amended and
Restated Investors' Rights Agreement (which CancerVax represents and warrants,
as of the Closing Date, have been obtained), all corporate action on the part of
CancerVax, its directors and stockholders necessary for the authorization,
execution and delivery of this Agreement and the Registration Rights Agreement
and the performance of all obligations of CancerVax hereunder and thereunder,
including the authorization, issuance and delivery of the Purchased Stock, has
been taken. Each of this Agreement and the Registration Rights Agreement have
been duly executed and delivered by CancerVax and constitutes a legal, valid and
binding obligation of CancerVax, enforceable against CancerVax in accordance
with its terms, except as such enforceability may be limited (a) by applicable
insolvency and other Laws affecting creditors' rights generally, (b) by general
principles of equity that restrict the availability of equitable remedies, or
(c) to the extent that the unenforceability of indemnification provisions may be
limited by applicable Laws or public policy.

         3.4      No Conflicts. The execution, delivery and performance of this
Agreement and compliance with the provisions thereof by CancerVax do not and
shall not (a) violate any provision of Law, or any ruling, writ, injunction,
order, permit, judgment or decree of any Governmental Authority binding upon
CancerVax, except where such violation would not reasonably be expected to have
a Material Adverse Effect, (b) constitute a breach of or default under (or an
event that, with notice or lapse of time or both, would become a default) or
conflict with, or give rise to any right of termination, cancellation or
acceleration of, any agreement, arrangement or instrument, by which CancerVax or
any of its subsidiaries or any of their respective properties and assets are
bound, except where such breach, default or conflict would not reasonably be
expected to have a Material Adverse Effect, (c) result in the creation or
imposition of any lien, security interest, charge or encumbrance of any kind
upon any of the material properties or assets of CancerVax or (d) violate or
conflict with any of the provisions of CancerVax's or its subsidiaries'
certificate of incorporation, bylaws or other organizational documents as in
effect on the date hereof.

         3.5      No Governmental Authority or Third Party Consents. Except for
the approval of the holders of Registrable Securities required by Section 4.7 of
CancerVax's Second Amended

                                       5
<PAGE>

and Restated Investors' Rights Agreement, no consent, approval, authorization or
other order of any Governmental Authority or other third party is required to be
obtained by CancerVax or its subsidiaries in connection with the authorization,
execution, delivery and performance of this Agreement or the Registration Rights
Agreement or with the authorization, issue and sale of the Purchased Stock, and
consummation by CancerVax of any of the transactions contemplated hereby other
than such filings as may be required to be made with the SEC and with any state
blue sky or securities regulatory authority.

         3.6      Valid Issuance of Purchased Stock. When issued, sold and
delivered in accordance with the terms hereof for the consideration expressed
herein, and assuming the accuracy of Serono's representations set forth in
Section 4, the Purchased Stock shall be duly authorized, validly issued, fully
paid and nonassessable and free and clear of all liens, encumbrances, charges,
claims, security interests of any nature whatsoever, or restrictions on
transfer, including preemptive rights, rights of first refusal or other similar
rights, other than restrictions on transfer under the Transaction Agreements and
under federal, state and foreign securities Laws.

         3.7      Litigation. There is no action, suit, proceeding or
investigation pending or, to the Knowledge of CancerVax, threatened against
CancerVax, its subsidiaries or their respective properties or that CancerVax or
its subsidiaries intend to initiate before any Governmental Authority
(collectively, an "Action") that (a) questions the legality, validity or
enforceability of this Agreement, the legality or validity of the Purchased
Stock or the right of CancerVax to enter into this Agreement, or to consummate
the transactions contemplated hereby, and (b) except for such Actions that are
not set forth in the CancerVax SEC Documents, if determined adversely will, or
would reasonably be expected to have, a Material Adverse Effect. CancerVax and
its subsidiaries are not and have not been the subject of any Action involving a
claim of violation of, or liability under, federal or state securities Laws nor
has there been and there is not pending, or to the Knowledge of CancerVax,
threatened, any investigation by the SEC involving CancerVax or its
subsidiaries. To the Knowledge of CancerVax, and except as would not reasonably
be expected to have a Material Adverse Effect, no current or former director or
officer of CancerVax is or has been the subject of any Action involving a claim
of violation of, or liability under, federal or state securities Laws or a claim
of a breach of fiduciary duty, nor has there been and there is not pending or
threatened, any investigation by the SEC involving any current or former
director or officer of CancerVax. The SEC has not issued any stop order or other
order suspending the effectiveness of any registration statement filed by
CancerVax or its subsidiaries under the Exchange Act or the Act.

         3.8      Intellectual Property. To its Knowledge, CancerVax has all
licenses, patents, copyrights, trademarks, trade names, trade secrets and other
proprietary rights (collectively "Rights") necessary to permit it to own and
operate its properties and assets and to conduct its business as described in
CancerVax's annual report on Form 10-K for the twelve (12) month period ended
December 31, 2003 (the "2003 Annual Report") and CancerVax's quarterly report on
Form 10-Q for the quarterly period ended September 30, 2004 (the "Third Quarter
10-Q") or as presently conducted, except where such failure to have such Rights
would not reasonably be expected to have a Material Adverse Effect. Except as
disclosed in the 2003 Annual Report and the Third Quarter 10-Q, or as would not
reasonably be expected to have a Material Adverse Effect, (a) all of the Rights
held by CancerVax are in full force and effect, and CancerVax has

                                       6
<PAGE>

taken all reasonable action to maintain and protect such Rights, (b) there are
no outstanding violations, notices of noncompliance, judgments, consent decrees,
orders or judicial or administrative actions, or, to CancerVax's Knowledge,
investigations or proceedings, adversely affecting any of such Rights, (c) the
Rights are not subject to any pending, or to CancerVax's Knowledge, threatened,
adverse claims against or disputes with respect to any of such Rights, (d) to
CancerVax's Knowledge, the conduct of CancerVax's business as described in the
2003 Annual Report and the Third Quarter 10-Q, or as presently conducted, does
not involve infringement, violation or misappropriation of any patent,
trademark, trade name, copyright, trade secret, license, ownership or similar
right of any third party, and (e) to CancerVax's Knowledge, no condition exists
and no event has occurred which (whether with or without notice, lapse of time
or the occurrence of any other event) would permit the suspension or revocation
of any such Rights other than by expiration of the term set forth therein.

         3.9      Permits. CancerVax has all franchises, permits, licenses, and
any similar authority necessary for the conduct of its business as now being
conducted by it, except where the failure to have such franchises, permits,
licenses, or similar authority would not reasonably be expected to have a
Material Adverse Effect.

         3.10     Compliance with other instruments. CancerVax is not in
violation of or default under (a) any bond, debenture, note or other evidence of
indebtedness, or any lease, indenture, mortgage, deed of trust, loan agreement,
joint venture or other agreement or instruments to which CancerVax is a party or
by which it or its properties are bound, nor is any such agreement or instrument
subject to termination, cancellation, modification or acceleration of any
obligation thereunder (with or without notice or the passage of time or
otherwise), except where such violation, default, termination, cancellation,
modification or acceleration would not reasonably be expected to have a Material
Adverse Effect, and (b) its certificate of incorporation or bylaws. All such
bonds, debentures, notes or other evidence of indebtedness, or any lease,
indenture, mortgage, deed of trust, loan agreement, joint venture or other
agreement or instruments are in full force and effect and are valid, binding and
enforceable in accordance with their terms, except where such failure to be in
full force and effect or failure to be valid, binding and enforceable agreements
or instruments would not reasonably be expected to have a Material Adverse
Effect.

         3.11     Title to Property and Assets. CancerVax and its subsidiaries
have good and sufficient title to all real properties and assets reflected in
the CancerVax Financial Statements or acquired by CancerVax after the date of
such CancerVax Financial Statements (except as sold or otherwise disposed of in
the ordinary course of business), in each case free and clear of all mortgages,
liens, loans and encumbrances, except such encumbrances and liens that arise in
the ordinary course of business and do not impair CancerVax and it subsidiaries'
respective ownership or use of such property or assets, except where the failure
to have such good and sufficient title would not reasonably be expected to have
a Material Adverse Effect, or except as set forth in the CancerVax SEC filings.
With respect to the property and assets it leases, CancerVax is in compliance
with such leases and holds a valid leasehold interest free of any liens, claims
or encumbrances, except where the failure to be in compliance or hold a valid
leasehold interest would not reasonably be expected to have a Material Adverse
Effect.

         3.12     Laws and Environmental Laws. CancerVax is and has been in
compliance with all Laws applicable to its business, properties and assets,
except where the failure to be in compliance would not reasonably be expected to
have a Material Adverse Effect. CancerVax is

                                       7
<PAGE>

and has been in compliance with all Environmental Laws and has obtained all
necessary Environmental Permits, all of which are in full force and effect, and
no event or condition has occurred that may interfere in any respect with the
compliance by CancerVax with any Environmental Law or that may give rise to any
liability under any Environmental Law, except as would not reasonably be
expected to have a Material Adverse Effect. CancerVax has not received any oral
or written notice, claim, demand, suit or request for information from any
Governmental Authority with respect to any liability or alleged liability under
any Environmental Law, except as would not reasonably be expected to have a
Material Adverse Effect.

         3.13     Tax Returns, Payments and Elections. CancerVax and its
subsidiaries have filed all material tax returns and reports (including
information returns and reports) as required by law, and such returns and
reports are true and correct in all material respects. CancerVax has paid all
taxes due and any assessments received by it, except any such tax, the validity
or amount of which is being contested in good faith by appropriate proceedings
and as to which CancerVax has set aside on its books adequate reserves with
respect thereto in accordance with generally accepted accounting principles.
CancerVax has not executed any waiver of any statute of limitations on the
assessment or collection of any tax or governmental charge that is currently in
effect. CancerVax has made adequate provisions on its books of account for all
taxes, assessments and governmental charges with respect to its business,
properties and operations. CancerVax has not received any notice of audit,
proposed adjustment or deficiency from any taxing authority, except as would not
reasonably be expected to have a Material Adverse Effect.

         3.14     Employment and Labor Matters. CancerVax is in compliance with
applicable Laws regarding employment, wages, hours, equal opportunity,
collective bargaining and payment of social security and other taxes, except
where the failure to be in compliance would not reasonably be expected to have a
Material Adverse Effect. CancerVax is in compliance with all applicable Laws and
regulations regarding occupational safety and health standards, and has received
no complaints from any Governmental Authority alleging violations of any such
Laws and regulations, except in such cases that would not reasonably be expected
to have a Material Adverse Effect.

         3.15     Payments; Political Contributions. Neither CancerVax nor, to
the Knowledge of CancerVax, any of the officers, directors, employees, agents or
other representatives of CancerVax or any other business entity or enterprise
with which CancerVax is or has been affiliated or associated has, directly or
indirectly on behalf of CancerVax, made or authorized any payment, contribution
or gift of money, property, or services (a) as a kickback or bribe to any person
or (b) except as permitted by Law, to any political organization, or the holder
of or any aspirant to any elective or appointive public office.

         3.16     Insurance. CancerVax, its subsidiaries and its properties are
insured in such amounts, against such losses and with such insurers as CancerVax
and its Board of Directors reasonably believe are appropriate in light of the
nature of the properties and businesses of CancerVax. No notice of any
termination or threatened termination of any of insurance policies of CancerVax
in effect on the date hereof has been received and such policies are in full
force and effect.

                                       8
<PAGE>

         3.17     Full Disclosure. The representations and warranties of
CancerVax in this Agreement and the schedules, certificates and exhibits
furnished to Serono by or on behalf of CancerVax in connection herewith did not
and do not contain any untrue statement of a material fact and did not and do
not omit to state any material fact necessary to make the statements herein or
therein not misleading. CancerVax hereby acknowledges that Serono is relying on
CancerVax's representations, warranties and covenants contained herein in making
an investment decision with respect to the Purchased Stock and will be relying
thereon in connection with any transfer of the Purchased Stock to its
Affiliates.

         3.18     Independent Accountants. To the Knowledge of CancerVax, Ernst
& Young LLP, who has certified certain financial statements of CancerVax, is an
independent public accountant as required by the Act.

         3.19     CancerVax SEC Documents; Financial Statements; Listing.

                  3.19.1   SEC Filings. CancerVax has filed with the SEC all
required reports, schedules, forms, statements and other documents (including
exhibits and all other information incorporated therein) required by the
Exchange Act ("CancerVax SEC Documents"). As of their respective filing dates,
each of the CancerVax SEC Documents complied in all material respects with the
requirements of the Securities Act of 1933, as amended (the "Act"), the
Securities Exchange Act of 1934, as amended (the "Exchange Act") and the rules
and regulations of the SEC promulgated thereunder, in each case to the extent
applicable to such CancerVax SEC Documents.

                  3.19.2   CancerVax Financial Statements. The financial
statements of CancerVax for the year ended December 31, 2003, including the
footnotes thereto, included in the 2003 Annual Report, and the financial
statements, including the footnotes thereto, included in the Third Quarter 10-K
(collectively, the "CancerVax Financial Statements") have been prepared in
accordance with United States generally accepted accounting principles applied
on a consistent basis during the period(s) involved (except as may be indicated
in the notes thereto; and subject, in the case of financial statements included
in the Third Quarter 10-Q, to the absence of footnote disclosure and normal
year-end adjustments) and fairly and accurately present the financial position
of CancerVax as of the dates thereof and the results of its operations and cash
flows for the periods specified therein. Except as set forth in the CancerVax
SEC Documents, CancerVax has no liabilities, whether absolute or accrued,
contingent or otherwise, other than liabilities incurred in the ordinary course
of business subsequent to the date of the most recent balance sheet contained in
the CancerVax SEC Documents.

                  3.19.3   Listing. CancerVax's Common Stock is listed on the
Nasdaq National Market and CancerVax has taken no action designed to, or that is
likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act or delisting the Common Stock from the Nasdaq National
Market. CancerVax has not received any notification that, and has no Knowledge
that, the National Association of Securities Dealers Inc. is contemplating
terminating such listing. The issuance and sale of the Purchased Stock pursuant
to this Agreement does not require stockholder approval under, or otherwise
contravene, the rules and regulations of the Nasdaq National Market.

                                       9
<PAGE>

         3.20     Absence of Changes. Since December 31, 2003, and except as set
forth in the CancerVax SEC documents, (a) there has been no event, occurrence or
development that, individually or in the aggregate, has had or would reasonably
be expected to have a Material Adverse Effect, (b) CancerVax has not incurred
any liabilities (contingent or otherwise) other than (i) trade payables and
accrued expenses incurred in the ordinary course of business consistent with
past practice and (ii) liabilities not required to be reflected in the
CancerVax's financial statements pursuant to United States generally accepted
accounting principles or required to be disclosed in filings made with the SEC,
(c) CancerVax has not altered its method of accounting or the identity of its
auditors, (d) CancerVax has not declared or made any dividend or distribution of
cash or other property to its stockholders or purchased, redeemed or made any
agreements to purchase or redeem any shares of its capital stock, and (e)
CancerVax has not issued any equity securities to any officer, director or
Affiliate, except pursuant to CancerVax's existing employee benefits plans.

         3.21     Offering. Subject to the accuracy of Serono's representations
set forth in Section 4, the offer, sale and issuance of the Purchased Stock will
be exempt from the registration requirements of the Act and will have been
registered or qualified from all applicable state registration or qualification
requirements.

         3.22     Brokers' or Finders' Fees. No broker, finder, investment
banker or other Person retained or engaged by CancerVax is entitled to any
brokerage, finder's or other fee or commission in connection with the
transactions contemplated by this Agreement.

                                    ARTICLE 4
                    REPRESENTATIONS AND WARRANTIES OF SERONO

         Serono hereby represents and warrants as of the date hereof as follows:

         4.1      Organization. Serono is a corporation duly organized, validly
existing and in good standing under the Laws of The Netherlands. Serono has all
requisite corporate power and corporate authority to enter into this Agreement,
to purchase the Purchased Stock and to carry out the other transactions
contemplated under this Agreement.

         4.2      Authorization. All corporate action on the part of Serono, its
directors and stockholders necessary for the authorization, execution and
delivery of this Agreement, the performance of all obligations of Serono
hereunder, including the subscription and purchase of the Purchased Stock, has
been taken. This Agreement has been duly executed and delivered by Serono and
constitutes a legal, valid and binding obligation of Serono, enforceable against
Serono in accordance with its terms, except as such enforceability may be
limited (a) by applicable insolvency and other laws affecting creditors' rights
generally, (b) by general principles of equity that restrict the availability of
equitable remedies, or (c) to the extent the unenforceability of indemnification
provisions may be limited by applicable laws or public policy.

         4.3      Purchase Entirely for Own Account. The Purchased Stock is
being acquired for investment for Serono's own account, not as a nominee or
agent, and not with a view to the resale or distribution of any part thereof,
and Serono has no present intention of selling, granting any participation in or
otherwise distributing the Purchased Stock. Serono does not have any

                                       10
<PAGE>

contract, undertaking, agreement or arrangement with any Person to sell,
transfer or grant participation in any of the Purchased Stock. Serono was not
organized for the purpose of acquiring or holding the Purchased Stock.

         4.4      Investment Experience and Accredited Investor Status. Serono
is an "accredited investor" (as defined in Regulation D under the Act). Serono
has received or has had full access to all the information, and has had the
opportunity to ask the questions and has received the answers, as Serono
considers necessary or appropriate to make an informed investment decision with
respect to the Purchased Stock. Serono understands that the purchase of the
Purchased Stock involves substantial risk. Serono has sufficient knowledge and
experience in financial or business matters such that it is capable of
evaluating the merits and risks of its investment in the Purchased Stock, and is
capable of bearing the economic risks of such investment.

         4.5      Brokers' or Finders' Fees. No broker, finder, investment
banker or other Person retained or engaged by Serono is entitled to any
brokerage, finder's or other fee or commission in connection with the
transactions contemplated by this Agreement.

                                    ARTICLE 5
            SECURITIES LAW MATTERS AND OTHER AGREEMENT OF THE PARTIES

         5.1      Restricted Securities. Serono understands that the Purchased
Stock, when issued, shall be "restricted securities" under the federal
securities Laws inasmuch they are being acquired from CancerVax in a transaction
not involving a public offering and that under such Laws and applicable
regulations such securities may be resold without registration under the Act
only in certain limited circumstances. In this connection, Serono represents
that it is familiar with Rule 144 of the Act, as presently in effect ("Rule
144"), and understands the resale limitations imposed thereby and by the Act.

         5.2      Limitations on Dispositions. For a period of eighteen (18)
months from the Closing Date (the "Lock-up Period"), Serono shall not make any
disposition of all or any portion of the Purchased Stock (including, for
purposes of this Section 5.2, any shares of Common Stock issued or issuable in
respect of the Purchased Stock), except upon CancerVax's prior written consent,
such consent to be given or withheld in CancerVax's sole discretion; provided,
however, that this Section 5.2 shall not apply to transfers or dispositions by
Serono to any Affiliate; provided, that any such Affiliate agrees in writing to
be bound by the same restrictions on disposition as set forth in this Section
5.2. Following the expiration of the Lock-up Period, Serono may divest itself of
all or a portion of the Purchased Stock; provided, that Serono, for so long as
it beneficially owns more than two percent (2%) of the outstanding Common Stock
of CancerVax, will not sell a number of shares of Purchased Stock in any one
week period that is greater than fifty percent (50%) of the average weekly
trading volume of the Common Stock (during the immediately preceding four (4)
week period) on the public securities market on which such shares are then
traded. This Section 5.2 will terminate and be of no force and effect: (a) upon
the termination of any of the Transaction Agreements (except if terminated by
CancerVax in accordance with any such Transaction Agreement) or (b) immediately
prior to a Change in Control of CancerVax (including pursuant to a tender or
exchange offer). After the termination of the Lock-up Period, Serono agrees to
make any disposition of the Purchased Stock in accordance with applicable Law.

                                       11
<PAGE>

         5.3      Legends. The certificates representing the Purchased Stock
shall bear the following legend and any legend required by applicable state
securities Laws or equivalent foreign laws until such time as such legends shall
no longer apply:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "ACT"), AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
                  VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION
                  THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT
                  AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
                  OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO
                  CANCERVAX THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
                  ACT."

The foregoing legend shall be removed from the certificates representing the
Purchased Stock at the request of the holder thereof, at such time as they
become eligible for resale under the Act.

         5.4      Form D. CancerVax agrees to timely file a Form D with respect
to the Purchased Stock as required under Regulation D after the Closing.

         5.5      Information. Serono shall promptly provide to CancerVax any
information in respect of Serono or the Purchased Stock as CancerVax may
reasonably request in order to comply with CancerVax's obligations under
applicable federal and state securities Laws.

         5.6      Securities Laws Disclosure; Publicity. Except as otherwise
required by Law or provided in the Collaboration Agreement, neither CancerVax
nor Serono shall issue any press releases with respect to the transactions
contemplated hereby without the prior written consent of the other party, which
consent shall not be unreasonably withheld or delayed. CancerVax shall not
publicly disclose the name of Serono or its Affiliates, or include the name of
Serono or its Affiliates in any filing with the SEC or any regulatory agency or
trading market, without the prior written consent of Serono, except to the
extent such disclosure is required by Law or trading market regulations, in
which case CancerVax shall provide Serono with prior notice of such disclosure.

         5.7      Continued Listing. CancerVax agrees to use commercially
reasonable efforts, during the seven (7) year period following the date of this
Agreement (and thereafter, unless the Board of Directors of CancerVax determines
in good faith that it is not in the best interests of CancerVax to maintain such
listing), to maintain the listing of its Common Stock on the Nasdaq National
Market, the Nasdaq SmallCap Market, the New York Stock Exchange or the American
Stock Exchange, as CancerVax determines in its sole discretion; provided,
however, that CancerVax need not comply with this provision in the event that
CancerVax consummates a "going-private" transaction or a Change in Control after
which CancerVax is not required to comply with the reporting requirements set
forth in Section 13(a) or Section 15(d) of the Exchange Act.

                                       12
<PAGE>

                                    ARTICLE 6
                                 INDEMNIFICATION

         6.1      Indemnification.

                  6.1.1    CancerVax shall defend, indemnify and hold harmless
Serono and its Affiliates and their respective officers, directors, employees,
agents, successors and assigns (the "Serono Indemnified Parties") from and
against any judgments, costs, awards, expenses (including reasonable attorneys'
fees) or other liabilities ("Liabilities"), which may be sustained, suffered or
incurred by the Serono Indemnified Parties arising out of, relating to or
resulting from: (a) any breach or inaccuracy in any representation or warranty
by CancerVax contained in this Agreement; or (b) any failure by CancerVax to
perform or observe any term, provision, covenant, or agreement on the part of
CancerVax to be performed or observed under this Agreement.

                  6.1.2    Serono shall defend, indemnify and hold harmless
CancerVax and its Affiliates and their respective officers, directors,
employees, agents, successors and assigns (the "CancerVax Indemnified Parties")
from and against any Liabilities which may be sustained, suffered or incurred by
the CancerVax Indemnified Parties arising out of, relating to or resulting from:
(a) any breach or inaccuracy in any representation or warranty by Serono
contained in this Agreement; or (b) any failure by Serono or any of its
Affiliates to perform or observe any term, provision, covenant, or agreement on
the part of Serono or any of its Affiliates to be performed or observed under
this Agreement.

                  6.1.3    Promptly after receipt by the Serono Indemnified
Parties or the CancerVax Indemnified Parties, as applicable (either, an
"Indemnified Party"), of any notice of any third-party claim or action, such
Indemnified Party will, if a claim in respect thereof is to be made against
CancerVax or Serono, as applicable (either, an "Indemnifying Party"), under this
Section 6.1, deliver to the Indemnifying Party a written notice of the
commencement thereof.

                  6.1.4    The Indemnifying Party shall have the right to
participate in, and to the extent it so desires, assume the defense of the
relevant third-party claim or action, including any decisions regarding the
settlement or disposition thereof; provided, however, that: (a) the Indemnifying
Party shall not settle any third-party claim or action in a way that prejudices
or adversely impacts an Indemnified Party without the prior approval of the
Indemnified Party, which approval shall not be unreasonably withheld or delayed;
(b) if the defendants in any third-party claim or action include both the
Indemnifying Party and the Indemnified Party, and either of them concludes that
there may be legal defenses available to it that are different from, additional
to or inconsistent with those available to the other party, the party so
concluding shall: (i) have the right to select separate counsel to participate
in the defense of the claim or action on its behalf; and (ii) bear the cost and
expense of such separate defense, unless, and to the extent, the parties
otherwise agree or it is determined by a court of competent jurisdiction that
such cost and expense are or were required to be indemnified by the Indemnifying
Party hereunder and are or were required to be incurred separately due to such
different, additional or inconsistent defenses.

                  6.1.5    If the Indemnifying Party determines not to defend
the third-party claim or action, or otherwise fails to do so with reasonable
diligence, the Indemnified Party shall have the

                                       13
<PAGE>

right to maintain the defense of such claim or action and the Indemnifying Party
shall provide reasonable assistance to it in the defense of such claim or action
and shall bear the reasonable costs and expenses of such defense (including
reasonable attorneys' fees of one counsel to the Indemnified Party), provided,
however, in no event shall the Indemnified Party settle or compromise any claim
hereunder without the prior approval of the Indemnifying Party, which approval
shall not be unreasonably withheld or delayed.

                  6.1.6    Either Serono or CancerVax, as applicable, shall
provide, and shall cause the Indemnified Party to provide, reasonable assistance
to the Indemnifying Party in the defense, settlement or other disposition of a
third-party claim or action, including by making available all pertinent
information and personnel under its control to the Indemnifying Party.

                                    ARTICLE 7
                                  MISCELLANEOUS

         7.1      Further Assurances. At the reasonable request of a Party, the
other Party shall do, execute, acknowledge, deliver and file (or cause the same)
all such further acts, deeds, transfers, conveyances, assignments or assurances
as may be reasonably required to effect any provision of this Agreement.

         7.2      Registration and Filing of this Agreement. To the extent, if
any, that either Party concludes in good faith that it or the other Party is
required to file or register this Agreement or a notification thereof with any
Governmental Authority, including the SEC, the Competition Directorate of the
Commission of the European Union or the U.S. Federal Trade Commission, in
accordance with Law, such Party shall inform the other Party thereof and in such
event the Parties shall cooperate, each at its own expense, in such filing,
registration or notification and shall execute all documents reasonably required
in connection therewith. The Parties shall promptly inform each other as to the
activities or inquiries of any such Governmental Authority relating to this
Agreement, and shall reasonably cooperate to respond to any request for further
information therefrom on a timely basis.

         7.3      Relationship of the Parties. Neither Party shall have any
responsibility for the hiring, termination or compensation of the other Party's
employees or for any employee benefits of such employee. No employee or
representative of a Party shall have any authority to bind or obligate the other
Party to this Agreement for any sum or in any manner whatsoever, or to create or
impose any contractual or other liability on the other Party without said
Party's approval. For all purposes, and notwithstanding any other provision of
this Agreement to the contrary, Serono's legal relationship under this Agreement
to CancerVax shall be that of independent contractor. This Agreement is not a
partnership agreement and nothing in this Agreement shall be construed to
establish a relationship of co-partners or joint venturers between the Parties.

         7.4      Expenses. Each Party shall bear its own costs incurred in the
performance of its obligations hereunder without charge or expense to the other
except as expressly provided in this Agreement.

         7.5      No Third Party Beneficiaries. None of the provisions of this
Agreement shall be for the benefit of or enforceable by any Third Party,
including any creditor of either Party hereto. No such Third Party shall obtain
any right under any provision of this Agreement or shall by

                                       14
<PAGE>

reasons of any such provision make any Claim in respect of any debt, liability
or obligation (or otherwise) against either Party.

         7.6      Notices. All demands, notices, consents, approvals, reports,
requests and other communications hereunder must be in writing and will be
deemed to have been duly given only if delivered personally, or by mail (first
class, postage prepaid), or by overnight delivery using a globally-recognized
carrier, to the Parties at the following addresses:

                  (a)      if to CancerVax, to:

                           CancerVax Corporation
                           2110 Rutherford Road
                           Carlsbad, CA 92008 USA
                           Attn: President & CEO
                           With a copy to: General Counsel
                           Facsimile No.: (760) 494-4282

                  (b)      with a copy to:

                           Latham & Watkins LLP
                           12636 High Bluff Drive, Suite 300
                           San Diego, CA  92130  USA
                           Attn:  Scott N. Wolfe, Esq.
                           Facsimile No.: (858) 523-5450

                  (c)      if to Serono, to:

                           Serono B.V.
                           c/o Serono International SA
                           15 bis, Chemin des Mines
                           Case Postale 54
                           CH-1211, Geneve 20
                           Switzerland
                           Attn: General Counsel
                           Facsimile No.: 41-22-739-3070

or to such other address as the addressee shall have last furnished in writing
in accord with this provision to the addressor. All notices shall be deemed
effective upon receipt by the addressee.

         7.7      Assignment. 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 prior written consent of the other
Party; provided, that Serono may assign or transfer this Agreement (a) to an
Affiliate or (b) in the event of a Change of Control (not including an
assignment or transfer by Serono to an Affiliate), to its successor-in-interest
resulting from such Change of Control. Any attempted assignment not in
accordance with this Section 7.7 shall be void. Any permitted assignee shall
assume all assigned obligations of its assignor under this Agreement. This
Agreement shall be binding upon and inure to the benefit of the
successors-in-interest and permitted assigns of the respective Parties.

                                       15
<PAGE>

         7.8      Severability. In the event of the invalidity of any provisions
of this Agreement, the Parties agree that such invalidity shall not affect the
validity of the remaining provisions of this Agreement. The Parties will replace
an invalid provision with valid provisions which most closely approximate the
purpose and economic effect of the invalid provision. In the event that the
terms and conditions of this Agreement are materially altered as a result of the
preceding sentences, the Parties shall renegotiate the terms and conditions of
this Agreement in order to resolve any inequities. Nothing in this Agreement
shall be interpreted so as to require either Party to violate any Laws.

         7.9      Headings; Construction; Certain Conventions. The headings used
in this Agreement have been inserted for convenience of reference only and do
not define or limit the provisions hereof. Unless otherwise expressly provided
herein or the context of this Agreement otherwise requires, (a) words of any
gender include each other gender, (b) words such as "herein", "hereof", and
"hereunder" refer to this Agreement as a whole and not merely to the particular
provision in which such words appear, (c) words using the singular shall include
the plural, and vice versa, (d) the words "include," "includes" and "including"
shall be deemed to be followed by the phrase "but not limited to", "without
limitation", "inter alia" or words of similar import and (e) the word "or" shall
be deemed to include the word "and" (e.g., "and/or").

         7.10     Entire Agreement. This Agreement constitutes the entire
agreement between the Parties with respect to the subject matter hereof and
supersedes all previous agreements and understandings between the Parties,
whether written or oral, with respect to the subject matter hereof. This
Agreement may be altered, amended or changed only by a writing making specific
reference to this Agreement and signed by duly authorized representatives of
CancerVax and Serono.

         7.11     Waiver. Any term or condition of this Agreement may be waived
at any time by the Party that is entitled to the benefit thereof, but no such
waiver shall be effective unless set forth in a written instrument duly executed
by or on behalf of the Party waiving such term or condition. No waiver by any
Party of any term or condition of this Agreement, in any one or more instances,
shall be deemed to be or construed as a waiver of the same or any other term or
condition of this Agreement on any future occasion.

         7.12     Remedies Cumulative. Except as expressly set forth in this
Agreement, all rights and remedies available to a Party, whether under this
Agreement or afforded by Law, equity or otherwise, will be cumulative and not in
the alternative to any other rights or remedies that may be available to such
Party.

         7.13     Governing Law. This Agreement shall be construed, and the
respective rights of the Parties determined, according to the substantive Laws
of the State of California notwithstanding the provisions governing conflict of
Laws thereunder to the contrary.

         7.14     Counterparts; Fax Signatures. This Agreement may be executed
in any two (2) counterparts, including by facsimile, each of which, when
executed, shall be deemed to be an original and both of which together shall
constitute one and the same document.

                            [SIGNATURE PAGE FOLLOWS]

                                       16
<PAGE>

         IN WITNESS WHEREOF, CancerVax and Serono, by their duly authorized
officers, have executed this Agreement as of the date hereof.

CANCERVAX CORPORATION                   SERONO B.V.

By: /s/ David F. Hale                   By: /s/ Leon Bushara
    ------------------------------          -----------------------------------
    Name:  David F. Hale                    Name:  Leon Bushara
    Title: President and Chief              Title: Authorized Representative
           Executive Officer

                   SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT

<PAGE>

                                    Exhibit A

                  Form of Legal Opinion of Latham & Watkins LLP

<PAGE>

                                       12636 High Bluff Drive, Suite 300
                                       San Diego, California  92130-2071
                                       Tel: (858) 523-5400  Fax: (858) 523-5450
                                       www.lw.com

[LATHAM & WATKINS LLP LOGO]

                                       FIRM / AFFILIATE OFFICES
                                       Boston        New Jersey
                                       Brussels      New York
                                       Chicago       Northern Virginia
                                       Frankfurt     Orange County
December 21, 2004                      Hamburg       Paris
                                       Hong Kong     San Diego
                                       London        San Francisco
                                       Los Angeles   Silicon Valley
                                       Milan         Singapore
                                       Moscow        Tokyo
                                                     Washington, D.C.
To Serono B.V.
c/o Serono International SA            File No.: 031862-0015
15 bis, Chemin des Mines
Case Postale 54
CH-1211, Geneve 20
Switzerland

         Re: CancerVax Corporation
             Stock Purchase Agreement and Third Amended and Restated Investors'
             Rights Agreement

Ladies and Gentlemen:

                  We have acted as special counsel to CancerVax Corporation, a
Delaware corporation ("CANCERVAX"), in connection with the issuance of 1,000,000
shares (the "PURCHASED STOCK") of CancerVax's common stock, par value $0.00004
per share (the "COMMON STOCK"), pursuant to that certain Stock Purchase
Agreement, dated as of December 15, 2004 (the "AGREEMENT"), by and between
CancerVax and Serono B.V., a Netherlands corporation ("SERONO"). This letter is
furnished pursuant to Section 2.2 of the Agreement.

                  As such counsel, we have examined such matters of fact and
questions of law as we have considered appropriate for purposes of this letter,
except where a specified fact confirmation procedure is stated to have been
performed (in which case we have with your consent performed the stated
procedure). We have examined, among other things, the following:

                  (a)      the Agreement;

                  (b)      the Third Amended and Restated Investors' Rights
         Agreement, dated as of the date hereof, by and among CancerVax, Serono
         and certain of the entities and persons listed on Schedule A thereto
         (the "REGISTRATION RIGHTS AGREEMENT"); and

                  (c)      the Amended and Restated Certificate of Incorporation
         of CancerVax and the Certificate of Designations of Series A Junior
         Participating Preferred Stock of CancerVax (collectively, the
         "CERTIFICATE") and the Amended and Restated Bylaws of CancerVax (and
         with the Certificate, the "GOVERNING DOCUMENTS").

                  The documents described in subsections (a) and (b) above are
referred to herein collectively as the "TRANSACTION AGREEMENTS."

<PAGE>

TO SERONO B.V.
DECEMBER 21, 2004
PAGE 2

[LATHAM & WATKINS LLP LOGO]

                  In our examination, we assumed the genuineness of all
signatures, the legal capacity of all natural persons executing documents, the
authenticity of all documents submitted to us as originals, and the conformity
to authentic original documents of all documents submitted to us as copies. In
addition, we have assumed that the requisite holders of Registrable Securities
(as such term is defined in the Registration Rights Agreement) required to
execute and deliver the Registration Rights Agreement, in order to amend and
modify the Prior Agreement (as such term is defined in the Registration Rights
Agreement) and to make Serono a party to the Registration Rights Agreement have
executed and delivered the Registration Rights Agreement, and that the
Registration Rights Agreement is a legally valid and binding obligation of such
parties.

                  With your consent we have relied upon the foregoing, including
the representations and warranties of CancerVax in the Agreement, and upon
certificates of officers of CancerVax and others, with respect to certain
factual matters. We have not independently verified such factual matters.

                  We are opining herein as to the effect on the subject
transaction only of the federal laws of the United States, the internal laws of
the State of California, and in paragraphs 1, 2, 4 and 5 of this letter, the
General Corporation Law of Delaware, and we express no opinion with respect to
the applicability thereto, or the effect thereon, of the laws of any other
jurisdiction, or, in the case of Delaware, any other laws, or as to any matters
of municipal law or the laws of any local agencies within any state. Our
opinions herein are based upon our consideration of only those statutes, rules
and regulations which, in our experience, are normally applicable to private
equity financing transactions; provided, that no opinion is expressed as to
securities laws except to the extent stated in paragraph 6 of this letter. We
express no opinion as to any state or federal laws or regulations applicable to
the subject transactions because of the legal or regulatory status or nature or
extent of the business of any parties to the Transaction Agreements.

                  Subject to the foregoing and the other matters set forth
herein, and except as set forth in the Agreement, it is our opinion that, as of
the date hereof:

                  1.       CancerVax is a corporation under the general
corporation law of the State of Delaware with corporate power and authority to
enter into the Transaction Agreements and perform its obligations thereunder.
Based solely on certificates from public officials, we confirm that CancerVax is
validly existing and in good standing under the laws of the State of Delaware.

                  2.       The execution, delivery and performance of the
Transaction Agreements have been duly authorized by all necessary corporate
action of CancerVax, and the Transaction Agreements have been duly executed and
delivered by CancerVax.

                  3.       Each of the Transaction Agreements constitutes a
legally valid and binding obligation of CancerVax, enforceable against CancerVax
in accordance with its terms.

                  4.       The execution and delivery of the Transaction
Agreements by CancerVax do not:

                           (a)      violate the provisions of the Governing
Documents; or

<PAGE>

TO SERONO B.V.
DECEMBER 21, 2004
PAGE 3

[LATHAM & WATKINS LLP LOGO]

                           (b)      violate the General Corporation Law of
Delaware or any federal or California statute, rule or regulation applicable to
CancerVax.

No opinion is expressed in this paragraph 4 as to federal or state securities
laws, tax laws, antitrust or trade regulation laws, insolvency or fraudulent
transfer laws, antifraud laws, compliance with fiduciary duty requirements or
other laws excluded by customary practice.

                  5.       The Purchased Stock has been duly and validly
authorized by all necessary corporate action of CancerVax, and, when issued and
paid for by you in accordance with the terms of the Agreement, will be validly
issued, fully paid and nonassessable.

                  6.       Assuming the truthfulness of the representations of
Serono set forth in the Agreement and of CancerVax's officers set forth in
certificate(s) of officers, the Purchased Stock, upon issuance, delivery and
payment therefor in the manner described in the Agreement, will be issued in a
transaction exempt from the registration requirements of the Securities Act of
1933, as amended.

                  The opinions expressed above are further subject to the
following limitations, qualifications and exceptions:

                           (a)      the effect of bankruptcy, insolvency,
reorganization, fraudulent transfer, moratorium or other similar laws relating
to or affecting the rights or remedies of creditors;

                           (b)      the effects of general principles of equity,
whether considered in a proceeding in equity or at law (including the possible
unavailability of specific performance or injunctive relief), concepts of
materiality, reasonableness, good faith and fair dealing, and the discretion of
the court before which a proceeding is brought;

                           (c)      the unenforceability under certain
circumstances under law or court decisions of provisions for the indemnification
of or contribution to a party with respect to a liability where such
indemnification or contribution is contrary to public policy;

                           (d)      certain rights, remedies and waivers
contained in the Transaction Agreements may be limited or rendered ineffective
by applicable California laws or judicial decisions governing such provisions,
but such laws or judicial decisions do not render the Transaction Agreements
invalid or unenforceable as a whole;

                           (e)      we express no opinion as to the validity or
enforceability of any provisions for liquidated damages, default interest, late
charges, monetary penalties, prepayment or make-whole premiums or other economic
remedies and call to your attention the provisions of Sections 1717 and 1717.5
of the California Civil Code, which limit and create obligations for the payment
of attorney's fees;

                           (f)      our opinions as to the Transaction
Agreements do not extend to any agreement, document, exhibit, attachment or form
referred to in, or incorporated by reference in, the Transaction Agreements; and

                           (g)      we express no opinion in paragraph 3 as to
the enforceability of Section 6 of the Agreement or Section 1.10 of the
Registration Rights Agreement.

<PAGE>

TO SERONO B.V.
DECEMBER 21, 2004
PAGE 4

[LATHAM & WATKINS LLP LOGO]

                  With your consent, we have assumed that all parties to the
Transaction Agreements other than CancerVax are duly organized, validly existing
and in good standing under the laws of their respective jurisdictions of
organization; all parties to the Transaction Agreements other than CancerVax
have the requisite power and authority to execute and deliver the Transaction
Agreements and to perform their respective obligations under the Transaction
Agreements to which they are a party; all wire transfers by parties to the
Agreement will be honored; and the Transaction Agreements to which such parties
other than CancerVax are a party have been duly authorized, executed and
delivered by such parties and constitute their legally valid and binding
obligations, enforceable against them in accordance with their terms, and that
the status of the Transaction Agreements as legally valid and binding
obligations of the parties is not affected by any (i) breaches of, or defaults
under, agreements or instruments, (ii) violations of statutes, rules,
regulations or court or governmental orders, or (iii) failures to obtain
required consents, approvals or authorizations from, or make required
registrations, declarations or filings with, governmental authorities, provided
that we make no such assumption to the extent we have specifically opined as to
such matters with respect to CancerVax herein.

                  We bring your attention to the fact that certain of the
attorneys in this firm who have rendered, and will continue to render, legal
services to CancerVax hold securities of CancerVax.

                  This letter is furnished only to you and is solely for your
benefit in connection with the transactions covered hereby. This letter may not
be relied upon by you for any other purpose, or furnished to, assigned to,
quoted to or relied upon by any other person, firm or other entity for any
purpose, without our prior written consent, which may be granted or withheld in
our discretion.

                                                Very truly yours,

                                                /s/ Latham & Watkins LLP

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