Document:

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                                                                    EXHIBIT 10.6

                          EXCLUSIVE LICENSE AGREEMENT

                                    BETWEEN

                     CHILDREN'S MEDICAL CENTER CORPORATION

                                      AND

                         LAKARO BIOPHARMACEUTICALS, INC.
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                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
Articles                                                                Page
<S>                                                                     <C>
I.        Definitions                                                     2

II.       Grant                                                           4

III.      Due Diligence                                                   6

IV.       Royalties and Other Payments                                    8

V.        Reports and Records                                             10

VI.       Patent Prosecution                                              12

VII.      Infringement                                                    12

VIII.     Indemnification and Insurance Provisions                        14

IX.       Export Controls                                                 15

X.        Non-Use of Names                                                16

XI.       Assignment                                                      16

XII.      Dispute Resolution and Arbitration                              16

XIII.     Term and Termination                                            17

XIV.      Payments, Notices and Other Communications                      18

XV.       General Provisions                                              19

          Appendix 1.  Patent Rights

          Appendix 2.  Sponsored Research Agreement
</TABLE>
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                                                                    EXHIBIT 10.6

                          EXCLUSIVE LICENSE AGREEMENT

     This Agreement is made and entered into as of the date last written below
(the "Effective Date"), by and between CHILDREN'S MEDICAL CENTER CORPORATION, a
charitable corporation duly organized and existing under the laws of the
Commonwealth of Massachusetts and having its principal office at 300 Longwood
Avenue, Boston, Massachusetts, 02115, U.S.A. (hereinafter referred to as
"CMCC"), and Lakaro BIOPHARMACEUTICALS, INC., organized and existing under the
laws of Delaware and having its principal office at 216 Jaffa Road, Jerusalem
94383 Israel (hereinafter referred to as "Licensee").

     WHEREAS, CMCC is the owner of CMCC 547 "Short peptides which selectively
modulate the activity of protein tyrosine kinases"  by Dr. Shmuel Ben-Sasson
(the "547 Invention"), and CMCC  and YISSUM RESEARCH DEVELOPMENT COMPANY OF THE
HEBREW UNIVERSITY OF JERUSALEM ("YISSUM") are the co-owners of CMCC 590 "Short
Peptides which selectively modulate the activity of serine/threonine kinases",
also by Dr. Shmuel Ben-Sasson (the "590 Invention"), and YISSUM has granted to
CMCC the right to grant licenses under YISSUM's interest in the 590 Invention.
The 547 Invention and the 590 Invention will be referred to hereinafter as the
"Background Patent Rights");

     WHEREAS, YISSUM and Licensee have entered into an agreement of even date
herewith through which Licensee will fund YISSUM to conduct further research
related to the subject matter of the Background Patent Rights, to be performed
at Hebrew University under the supervision of Dr. Ben-Sasson, with a subcontract
for research to be performed at Children's Hospital (the "Sponsored Research
Agreement") attached hereto as Appendix 2 and incorporated herein by reference,
and YISSUM has agreed that any new inventions arising out of said research
("Research Patent Rights") shall be subject to the terms of this License
Agreement;

     WHEREAS, CMCC has the right to grant exclusive licenses under certain
Patent Rights (as that term shall be defined hereafter), subject only to a
royalty-free, nonexclusive license heretofore granted to the United States
Government for those patents developed with U.S. Government funding;

     WHEREAS, CMCC and YISSUM desire to have the Patent Rights utilized in the
public interest and CMCC is willing to grant a license to Licensee thereunder on
the terms and conditions described herein;

     WHEREAS, Licensee has represented to CMCC that Licensee is ready, willing
and able to engage in the commercial development, production, manufacture,
marketing and sale of Licensed Products (as that term shall be defined
hereafter) and/or the use of Licensed Processes (as that term shall be defined
hereafter) and that it shall commit itself to a thorough, vigorous and diligent
program of exploiting the Patent Rights in accordance with the terms and
conditions described herein so that public utilization shall result therefrom;
and
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     WHEREAS, Licensee desires to obtain an exclusive license under the Patent
Rights on the terms and conditions of this Agreement.

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

                            ARTICLE I.  DEFINITIONS

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

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

     B.   "Combination Product(s) or Process(es)" shall mean a product or
process that includes a Licensed Product or Licensed Process sold in combination
with another component(s) whose manufacture, use or sale by an unlicensed party
would not constitute an infringement of the Patent Rights.

     C.   "Field of Use" shall mean the diagnosis, prevention or treatment of
any and all diseases or conditions in humans or animals.

     D.   "First Commercial Sale" shall mean with respect to each country:  (i)
the first sales in excess of $100,000 of Licensed Products or Licensed Processes
by Licensee, following approval of such Licensed Product's or Licensed Process'
marketing by the appropriate governmental agency, if any such approval is
necessary, for the country in which the sale is to be made; or (ii) if in a
country where governmental approval is not required, the first sale in that
country of the Licensed Product or Licensed Process.

     E.   "Licensed Product" shall mean any product or part thereof:

          1.   The manufacture, use or sale of which would infringe any one of
               the issued, valid, enforceable, unexpired claim(s) or any one of
               the pending claim(s) contained in the Patent Rights in any
               country.

          2.   The manufacture of which uses a "Licensed Process" as that term
               shall be defined hereafter.
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     F.   "Licensed Process" shall mean any process that would infringe any one
of the issued, valid, enforceable, unexpired claim(s) or any one of the pending
claim(s) contained in the Patent Rights in any country.

     G.   "Licensee" shall mean Lakaro Biopharmaceuticals, Inc. and/or its
successor(s) or assignee(s) and/or its Affiliates.

     H.   "Net Sales" shall mean gross receipts received by Licensee or
Licensee's Affiliates for Licensed Products and Licensed Processes produced
hereunder, including any subsidies, co-payments, incentive compensation, or
other similar payments received by Licensee from any governmental agency (other
than for research and development) directly in consideration of Licensee's sales
to third parties, less the sum of the following:

          1.   Discounts allowed in amounts customary in the trade.

          2.   Sales taxes, tariff duties and/or use taxes directly imposed and
               with reference to particular sales.

          3.   Packaging and freight charges, outbound transportation and
               delivery charges (including insurance premiums related to
               transportation and delivery) prepaid or allowed.

          4.   Amounts allowed or credited on returns.

          5.   Bad debt deductions actually written off during the accounting
               period.

     No deductions shall be made for commissions paid to individuals whether
they are with independent sales agencies or regularly employed by Licensee and
on its payroll or for the cost of collections.  Licensed Products and Licensed
Processes shall be considered "sold" when billed out or invoiced.
Notwithstanding anything herein to the contrary, the following shall not be
considered a sale of a Licensed Product or Licensed Process under this
Agreement:  (i) the transfer of a Licensed Product or Licensed Process to an
Affiliate for sale by the Affiliate in a transaction that will be royalty
bearing; (ii) the transfer of a Licensed Product or Licensed Process to a third
party without consideration to Licensee in connection with the development or
testing of a Licensed Product or Licensed Process; or (iii) the transfer of a
Licensed Product or Licensed Process to a third party without consideration in
connection with the marketing or promotion of the Licensed Product or Licensed
Process.

     I.   "Patent Rights" shall mean all of the following intellectual property
included in the Background Patent Rights and the Research Patent Rights which
CMCC owns or has the right to license during the term of this Agreement:

          1.   All patents and/or patent applications listed in Appendix 1
               attached hereto and incorporated herein by reference, as this
               Appendix 1
<PAGE>

               may be amended from time to time to include Research Patent
               Rights, and divisionals and continuations thereof.

          2.   The United States and foreign patents issued from the
               applications listed in Appendix 1 and from divisionals and
               continuations of those applications.

          3.   Claims of United States and foreign continuation-in-part
               applications, and of the resulting patents, which relate to
               subject matter specifically described in the United States and
               foreign patent applications described in Appendix 1.

          4.   Claims of all later filed foreign patent applications, and of the
               resulting patents, which relate to subject matter specifically
               described in the United States patent and/or patent applications
               described in subparagraphs 1, 2 or 3 of this Article I, Paragraph
               I.

          5.   Any reissues, divisions, amendments or extensions of the United
               States or foreign patents described in subparagraphs 1, 2, 3 or 4
               of this Article I, Paragraph I.

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

                              ARTICLE II.  GRANT

     A.   CMCC hereby grants to Licensee the worldwide right and exclusive
license to make, have made, use, lease and sell the Licensed Products and to
practice the Licensed Processes for the Field of Use to the end of the term for
which the Patent Rights are granted, unless sooner terminated as provided in
this Agreement.

     B.   Notwithstanding anything above to the contrary, CMCC shall retain a
royalty-free, nonexclusive, irrevocable license to practice, and to sublicense
other non-profit research organizations to practice, the Patent Rights for
noncommercial research purposes only.

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

     D. (1)  To the best knowledge and belief of the CMCC Technology Transfer
Office as of the date of this Agreement, CMCC has all right, title, and interest
in and to the 547 Invention, including exclusive, absolute, irrevocable right,
title and interest thereto, free and clear of all liens, charges, encumbrances
or other restrictions or limitations of any kind whatsoever and to the best
knowledge and belief of the CMCC Technology Transfer Office as of the date of
this Agreement, there are no licenses
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options, restrictions, liens, rights of third parties, disputes, royalty
obligations, proceedings or claims relating to, affecting or limiting its rights
or rights of Licensee under this Agreement with respect to any part or all of
the Patent Rights and their use as contemplated in the underlying patent
applications as presently drafted.

      (2) To the best knowledge and belief of the CMCC Technology Transfer
Office as of the date of this Agreement, CMCC has all right, title, and interest
in and the CMCC's ownership interest in the 590 Invention, including exclusive,
absolute, irrevocable right, title and interest thereto, free and clear of all
liens, charges, encumbrances or other restrictions or limitations of any kind
whatsoever and to the best knowledge and belief of the CMCC Technology Transfer
Office as of the date of this Agreement, there are no licenses options,
restrictions, liens, rights of third parties, disputes, royalty obligations,
proceedings or claims relating to, affecting or limiting its rights or rights of
Licensee under this Agreement with respect to any part or all of CMCC's
ownership interest in the 590 Invention and their use as contemplated in the
underlying patent applications as presently drafted.

      (3) YISSUM has represented to CMCC that to the best knowledge and belief
of YISSUM as of the date of this Agreement, YISSUM has all right, title, and
interest in and to YISSUM's ownership interest in the 590 Invention, including
exclusive, absolute, irrevocable right, title and interest thereto, free and
clear of all liens, charges, encumbrances or other restrictions or limitations
of any kind whatsoever and YISSUM has also represented to CMCC that  to the best
knowledge and belief of YISSUM as of the date of this Agreement, there are no
licenses options, restrictions, liens, rights of third parties, disputes,
royalty obligations, proceedings or claims relating to, affecting or limiting
its rights or rights of Licensee under this Agreement with respect to any part
or all of YISSUM's ownership interest in the 590 Invention and their use as
contemplated in the underlying patent applications as presently drafted.

      (4) The CMCC Technology Transfer Office is not aware of, and YISSUM has
represented to CMCC that YISSUM is not aware of, any ownership interest in the
590 Invention other than CMCC's and YISSUM's.

      (5) YISSUM and CMCC have entered into an agreement through which YISSUM
has granted CMCC the exclusive right to grant a license to YISSUM's interest in
the 590 Invention.

      (6). To the best knowledge and belief of the CMCC Technology Transfer
Office as of the date of this Agreement there is no claim, pending or
threatened, of infringement, interference or invalidity regarding, any part or
all of the Patent Rights and their use as presently drafted.

     E.   Licensee agrees that Licensed Products leased or sold *** shall be
 manufactured substantially ***.

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

     G.   Licensee shall have the right to enter into sublicensing agreements
with respect to any of the rights, privileges, and licenses granted hereunder,
subject to the terms and conditions hereof.  Except as provided in Section II K
below, such sublicenses will terminate upon the termination of Licensee's rights
granted herein unless events of default are cured by Licensee or Sublicensee
within thirty (30) days of notification by CMCC of such a default and/or as
provided by the terms of this Agreement.

     H.   Licensee agrees that any sublicense granted by it shall provide that
the obligations to CMCC of Articles II (Grant), V (Reports and Records), VII
(Infringement), VIII (Insurance and Indemnification), IX (Export Controls), X
(Non-Use of Names), XI (Assignment), XII (Dispute Resolution), XIII (Term and
Termination) and XV (Miscellaneous Provisions) of this Agreement shall be
binding upon the sublicensee as if it were a party to this Agreement.  Licensee
further agrees to attach a copy of this Agreement to all sublicense agreements,
deleting economic terms when and as appropriate.

     I.   Licensee agrees to provide to CMCC notice of any sublicense granted
hereunder and to forward to CMCC a copy of any and all fully executed sublicense
agreements and other documents such as side letters that are pertinent to an
accounting of Licensee's payment obligations under this Agreement and/or to an
evaluation of Licensee's performance of its due diligence obligations under
Article III.  Licensee further agrees to forward to CMCC annually a copy of such
reports received by Licensee from its sublicensees during the preceding twelve
(12) month period as shall be pertinent to a royalty accounting under the
applicable sublicense.

     J.   Licensee shall advise CMCC in writing of any consideration received
from sublicensees.  Licensee shall not accept from any sublicensee anything of
value in lieu of cash payments to discharge sublicensee's payment obligations
under any sublicense granted under this Agreement, without the express written
permission of CMCC, which permission shall not be unreasonably withheld.

     K.   CMCC agrees that if Licensee has provided to CMCC notice that Licensee
has granted a sublicense to a sublicensee under this Agreement, then in the
event CMCC terminates this Agreement for any reason provided hereafter, CMCC
shall provide to such sublicensee no less than thirty (30) days prior to the
effective date of said termination, written notice of said termination at the
address specified by Licensee to CMCC in Licensee's notice to CMCC under
Paragraph H of this Article II.  CMCC agrees that upon the sublicensee's notice
as described below and provided the sublicensee is not in breach of its
sublicense, CMCC shall grant to such sublicensee license rights and terms
equivalent to the sublicense rights and terms which the Licensee shall have
granted to said sublicensee; provided that the sublicensee shall remain a
sublicensee under this Agreement for a period of at least sixty (60) days
following receipt of notice from CMCC.  Sublicensee shall during said sixty (60)
day

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period provide to CMCC notice wherein the sublicensee: (i) agrees to abide by
all of the terms and conditions of this Agreement applicable to sublicensees and
to discharge directly all pertinent obligations of Licensee which Licensee is
obligated hereunder to discharge; and (ii) acknowledges that CMCC shall have no
obligations to the sublicensee other than its obligations set forth in this
Agreement with regard to Licensee.

     L.   The license granted hereunder shall not be construed to confer any
rights upon Licensee by implication, estoppel or otherwise as to any technology
not described in the Patent Rights.

                          ARTICLE III.  DUE DILIGENCE

     A.   Licensee shall use its good faith and reasonable best efforts to bring
one or more Licensed Products and/or Licensed Processes to market as soon as
reasonably practicable, consistent with sound and reasonable business practices
and judgment, through a thorough, vigorous and diligent program for exploitation
of the Patent Rights.  Thereafter, Licensee agrees that until expiration or
termination of this Agreement, Licensee shall continue active and diligent
efforts to keep Licensed Products and/or Licensed Processes reasonably available
to the public.  In the event Licensee decides not to exploit a licensed Patent
Right, it shall promptly inform CMCC in writing and shall surrender to CMCC its
license to that Patent Right.

     B.   Licensee shall accomplish development of Licensed Products and/or
Licensed Processes according to the following timetable:

          1.   file an Initial New Drug Application ("IND") for a Licensed
               Product with United States Food and Drug Administration ("FDA")
               or its foreign the equivalent in a country with reasonably
               comparable requirements within two (2) years from the
               identification of the first lead compound; and

          2.   file a New Drug Application ("NDA") for a Licensed Product with
               the United States FDA or its foreign equivalent in a country with
               reasonably comparable requirements within six (6) years from
               the first filing of an IND with the United States FDA or its
               foreign equivalent.

The above milestones and completion times shall be referred to hereinafter as
the "Development Plan".

     C.   Licensee shall use good faith and diligent efforts to accomplish the
milestones set forth in the Development Plan and to manufacture and distribute
Licensed Products and Licensed Processes.

     D.   Notwithstanding anything above to the contrary, CMCC shall not
unreasonably withhold its assent to any revision of the objective(s) set forth
in the
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Development Plan when requested in writing by Licensee and supported by evidence
reasonably acceptable to CMCC: (i) of technical difficulties or delays in the
clinical studies or regulatory process that Licensee could not have reasonably
avoided; or (ii) that Licensee, its Affiliates and/or sublicensees have expended
good faith and diligent efforts and adequate resources to meet said objective.

     E.   In the event CMCC reasonably believes that Licensee is not diligently
seeking to achieve the objectives set forth in the Development Plan in a timely
manner, CMCC shall so notify Licensee in writing. Licensee shall have the
option, exercisable by written notice to CMCC provided within ten (10) days
after receipt of any such notice, to either: (i) receive a *** grace period to
establish to CMCC's reasonable satisfaction that Licensee is expending its good
faith and diligent efforts and adequate resources to achieve said objectives; or
(ii) agree to CMCC's termination of this Agreement as provided hereafter. In the
event Licensee agrees to termination of this Agreement, CMCC shall immediately
terminate the license granted to Licensee under this Agreement. In the event
Licensee fails to establish its diligence to CMCC's reasonable satisfaction as
provided above prior to expiration of the *** grace period, CMCC shall have the
right to terminate the license granted to Licensee under this Agreement.

     F.   In the event that Licensee fails to meet the objective(s) set forth in
the Development Plan in a timely manner, CMCC shall notify Licensee thereof in
writing, and Licensee shall have thirty (30) days following such notification to
establish to the reasonable satisfaction of CMCC that (i) it has met such
objective(s); or (ii) a revision to the Development Plan is necessary and
appropriate as contemplated above. In the event that Licensee fails to establish
the same to CMCC's reasonable satisfaction, CMCC shall have the right in its
discretion to terminate the license granted to Licensee under this Agreement or
to convert the license granted to Licensee hereunder to a non-exclusive license
on financial terms and conditions mutually agreed to by CMCC and Licensee.

     G.   Licensee shall use its best efforts to secure an initial round of
financing of at least $3,000,000 for Licensee through a private placement and/or
public offering of debt or equity securities of Licensee (the "Financing"). The
total pre-money valuation of any such Financing shall be not less than
$5,000,000. If Licensee has not raised at least $2,000,000 of gross proceeds on
the basis described in the preceding sentence within three (3) months of the
Effective Date, then this License Agreement shall terminate and all right, title
and interest in the Patent Rights shall revert to CMCC (and/or YISSUM, as
appropriate) and CMCC shall return any and all shares or warrants beneficially
owned by CMCC and YISSUM.

                   ARTICLE IV.  ROYALTIES AND OTHER PAYMENTS

     A.   For the rights, privileges and exclusive licenses granted hereunder,
Licensee shall pay to CMCC the following amounts in the manner hereinafter
provided until the end of the term of the last to expire Patent Right, unless
this Agreement shall be sooner terminated as hereinafter provided:
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          1.   Subject to the terms and conditions of the Sponsored Research
               Agreement, Licensee shall sponsor research at YISSUM in an amount
               an in accordance with the payment schedule set forth therein.

          2.   Upon the execution of this Agreement, Licensee shall issue to
               CMCC 537,025 shares of its common stock, at par value ($0.001 per
               share, which shall constitute 7.842% of the issued and
               outstanding shares of common stock of the Company on the date
               these shares are issued to CMCC. In any future registrations of
               Licensee's common stock, Licensee shall treat the shares of
               common stock being issued to CMCC pursuant to this Agreement and
               the shares underlying the warrants described in Article IV.A.3,
               below, no less favorably than any of its shares of common stock
               issued and outstanding as of the date of this Agreement.

          3.   Licensee shall grant to CMCC ten (10) year net exercise warrants
               to purchase 250,000 shares of common stock (the "Common Stock"),
               at a price of $0.01 per share, vesting as follows:

                         (a) One-half of the warrants shall vest upon the
               approval of the first IND for a Licensed Product or Licensed
               Process by the United States FDA, or its foreign equivalent.

                         (b) One-half of the warrants shall vest upon the
               approval of an NDA for a Licensed Product or Licensed Process by
               the FDA, or foreign equivalent.

          4.   If so instructed by CMCC, Licensee shall issue to YISSUM, instead
               of to CMCC, some or all of the shares due to CMCC as defined in
               Section A.2 and some or all of the warrants due to CMCC as
               defined in Section A.3.

          5.   In any calendar year, royalties in an amount equal to *** of Net
               Sales of Licensed Products or Licensed Processes used, leased or
               sold by and/or for Licensee and/or its Affiliates.

          6.   In the event that Licensee has granted sublicenses under this
               Agreement, *** of any and all royalties received by Licensee on
               sales from said sublicensees, and *** of any and all payments
               received by Licensee from said sublicensees in consideration of
               permitting the sublicensee to practice the Patent Rights,
               including but not limited to sublicense issue fees, any lump sum
               payments, milestone payments, technology transfer payments, or
               other similar fees, but not including payments for research and
               development, including pre-clinical and clinical trials;
               provided, however, that overhead charges for such research and
               development are
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               reasonable and customary, and not including payment on account of
               issuance of debt or equity securities of Licensee at fair value.

     B.   No multiple royalties shall be payable because the use, lease or sale
of any Licensed Product or Licensed Process is, or shall be, covered by more
than one valid and unexpired claim contained in the Patent Rights.  In addition,
royalties shall be paid for a Licensed Product or Licensed Process based upon
only one of the paragraphs A.4 or A.5 above ( that is, royalties on direct sales
of a Licensed Product or Licensed Process by Licensee or its Affiliates shall be
based only on paragraph A.4, while royalties on sales of a Licensed Product or
Licensed Process by any sublicensee shall be based only on paragraph A.5 so as
to avoid double counting).

     C.   To the extent that Licensee obtains subsequent to the date of this
Agreement licenses to third party patents or other intellectual property that
are necessary to produce or sell Licensed Products or Licensed Processes,
Licensee may deduct from the royalty due to CMCC *** of the royalties due on
such third party patents or intellectual property up to an amount equal to ***
of royalties hereunder.

     D.   In the event that a Licensed Product is sold in the form of a
combination product containing one or more products or technologies which are
themselves not a Licensed Product, the Net Sales for such a combination product
shall be calculated by multiplying the sales price of such combination product
by the fraction A/ (A+B) where A is the invoice price of the Licensed Product,
or if sold to an Affiliate the Fair Market Value the Licensed Product would
command if sold to a third party, and B is the total invoice price of the other
products or technologies.  In the case of a combination product which includes
one or more Licensed Products, the Net Sales for such combination product upon
which the royalty due to CMCC is based shall not be less than the sum of Net
Sales for each Licensed Product.

     E.   Royalty payments shall be paid in United States dollars in Boston,
Massachusetts, or at such other place as CMCC may reasonably designate
consistent with the laws and regulations controlling in any foreign country.  If
the currency conversion shall be required in connection with the payments of
royalties or other amounts hereunder, the conversion shall be made by using the
exchange rate prevailing at the Bank of Boston on the last business day of the
calendar quarterly reporting period to which such royalty payments relate.

     F.   The royalty payments set forth in this Agreement shall, if overdue,
bear interest until payment at a per annum rate of *** above the prime rate in
effect at the Bank of Boston on the due date. The payment of such interest shall
not foreclose CMCC from exercising any other rights it may have as a consequence
of the lateness of any payment.
<PAGE>

                        ARTICLE V.  REPORTS AND RECORDS

     A.   Licensee shall keep, and shall require its Affiliates and sublicensees
to keep, full, true and accurate books of account in accordance with generally
accepted accounting principles and containing sufficient detail to enable CMCC
to determine the royalty and other amounts payable to CMCC under this Agreement.
Said books of account shall be kept at Licensee's principal place of business or
the principal place of business of the appropriate division of Licensee to which
this Agreement relates.  Said books and the supporting data shall be retained
for at least three (3) years following the end of the calendar year to which
they pertain.

     B.   CMCC shall have the right to audit the books of account described
above from time to time upon reasonable notice to Licensee and in no event more
than quarterly to the extent necessary to verify the reports provided for herein
or compliance in other respects with this Agreement.  CMCC or its agents shall
perform these audits at CMCC's expense during Licensee's regular business hours.

     C.   Licensee shall deliver to CMCC true and accurate reports by March
31st, for the period July 1st through December 31st of the previous year, and on
September 30th, for the period January 1st through June 30th of the current
year, giving such particulars of the business conducted by Licensee, its
Affiliates and its sublicensees under this Agreement as shall be pertinent to a
royalty accounting hereunder and to verify Licensee's activities with respect to
achieving the objectives of the Development Plan described in Article III above.
These reports shall include at least the following:

          1.   Number of Licensed Products and Licensed Processes manufactured
               and sold.

          2.   Aggregate billings for Licensed Products and Licensed Processes
               sold.

          3.   Applicable deductions.

          4.   Total royalties due to CMCC.

          5.   Names and addresses of all sublicensees of Licensee.

          6.   Payments received by Licensee from Affiliates and sublicensees.

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

          8.   Royalties and Fees received from sublicensees.
<PAGE>

     D.   Until the First Commercial Sale of a Licensed Product or Licensed
Process, Licensee shall provide to CMCC at least annually reasonable detail
regarding the activities of Licensee and/ or Licensee's Affiliates and
sublicensees relative to achieving the objectives set forth in the Development
Plan in a timely manner, including but not limited to, reports of financial
expenditures to achieve said objectives, research and development activities,
regulatory approvals, strategic alliances and manufacturing, sublicensing and
marketing efforts.

     E.   With each such report submitted, Licensee shall pay to CMCC the
royalties due and payable under this Agreement.  Prior to first commercial sale,
if no royalties shall be due, Licensee shall not be required to make a report
pursuant to this Article V.

     F.   On or before the ninetieth (90th) day following the close of
Licensee's fiscal year, Licensee shall provide CMCC with Licensee's certified
financial statements for the preceding fiscal year, including at a minimum a
balance sheet and an operating statement or other public report containing
substantially the same information.  CMCC agrees to hold in confidence each
report delivered by Licensee pursuant to this Article V until the termination of
this agreement, except that CMCC may disclose the reports to YISSUM under
agreement of confidentiality.  Notwithstanding the foregoing, the CMCC may
disclose any such information required to be disclosed pursuant to any judicial,
administrative or governmental request, subpoena, requirement or order, provided
that the CMCC take reasonable steps to provide Licensee with the opportunity to
contest such request, subpoena, requirement or order.

                        ARTICLE VI.  PATENT PROSECUTION

     A.   CMCC in cooperation with Licensee shall apply for, seek prompt
issuance of, and maintain during the term of this Agreement the Patent Rights
set forth in Appendix 1 through patent counsel mutually agreeable to both
partners.  The parties agree that Hamilton, Brook, Smith & Reynold is a mutually
acceptable patent counsel as of the date hereof, and that, if Licensee so
requests within three (3) months hereof, Pennie and Edmonds would be mutually
acceptable. The prosecution, filing and maintenance of all Patent Rights
applications and patents shall be the primary responsibility of CMCC.  Licensee
shall have reasonable opportunities to advise CMCC and shall cooperate with CMCC
in the prosecution, filing and maintenance of the Patent Rights.

     B.   Licensee shall reimburse to CMCC the amount of all fees and costs
relating to the filing, prosecution and maintenance of the Patent Rights whether
such fees and/or costs were incurred before or after the date of this Agreement.
CMCC shall provide to Licensee an itemized invoice of all such fees and Licensee
shall pay to CMCC all amounts due under said invoice within thirty (30) days of
the date of said invoice.
<PAGE>

     C.   In the event that CMCC elects not to pursue, maintain or retain a
particular Patent Right licensed to Licensee hereunder, CMCC shall so notify
Licensee within thirty (30) days of such decision so that Licensee may assume
the filing, prosecution and/or maintenance of such application or patent at
Licensee's expense.  In such event, CMCC shall provide to Licensee any
authorization necessary to permit Licensee to pursue and/or maintain such Patent
Right.  Licensee shall have no further royalty obligations under this Agreement
with respect to any such Patent Right.

                          ARTICLE VII.  INFRINGEMENT

     A.   In the event that Licensee shall learn of the infringement of any
patent or right licensed under this Agreement, Licensee shall call CMCC's
attention thereto in writing.  Both parties to this Agreement agree to consult
the other prior to notifying an infringing party, in a jurisdiction where
Licensee then has exclusive rights under this Agreement, of the infringement of
any of CMCC Patent Rights or such other intellectual property rights and shall
not notify such infringing party without first obtaining consent of the other
party, which consent shall not be reasonably withheld.  Both parties shall use
their best efforts in cooperation with each other to terminate such infringement
without litigation.  CMCC shall have the first option to undertake the
enforcement of the CMCC Patent Rights, provided, however, that Licensee may join
with CMCC and its counsel in prosecuting such legal action, provided, however,
that if the use of counsel chosen by CMCC would present such counsel with a
conflict of interest that would disqualify such counsel from joint
representation, then Licensee may obtain counsel of its choice at its sole
expense.

     B.   Licensee may request that CMCC take legal action against the
infringement of the Patent Rights licensed under this Agreement.  Such a request
shall be made in writing and shall include reasonable evidence of such
infringement and damages to Licensee.  If CMCC does not commence a diligent
legal challenge within sixty (60) business days after such request (or
immediately in the event Licensee requests that CMCC seek provisional relief and
reasonably demonstrates that such relief is required), and the infringing
activity has not been abated within such time, or if at any time thereafter CMCC
does not persist in such diligent legal challenge until the infringement has
been abated, Licensee may, if the infringement occurred in a jurisdiction where
Licensee had exclusive rights under this Agreement, may commence or assume
control, as the case may be, over the prosecution of legal actions relating
thereto.  However, in the event Licensee elects to bring suit in accordance with
this paragraph B, CMCC may thereafter join with Licensee and its counsel in
prosecuting such legal action, provided, however that if the use of counsel
chosen by CMCC would present such counsel with a conflict of interest that would
disqualify such counsel from joint representation, then CMCC may obtain counsel
of its choice at its sole expense.

     C.   Recoveries or reimbursements from any such litigation or settlement
within the scope of paragraph B in a jurisdiction in which Licensee had
exclusive rights under this Agreement at the time of the infringement shall be
first applied to reimburse Licensee and/ or CMCC for out-of-pocket litigation
costs (with respect to Licensee, to the extent not theretofore credited against
royalties in accordance with paragraph E)
<PAGE>

and then to CMCC for any royalties past due or withheld pursuant to paragraph E.
Any remaining recoveries or reimbursements shall be divided between Licensee and
CMCC at a rate of 20% to CMCC and 80% to Licensee.

     D.   In the event that a claim or suit is asserted or brought against
Licensee alleging that the manufacture or sale of any Licensed Product by
Licensee or its sublicensees, or the use of such Licensed Product by any
customer of any of the foregoing, infringes proprietary rights of a third party,
Licensee shall give written notice thereof to CMCC.  Licensee may, in its sole
discretion, modify such Licensed Product to avoid such infringement and/or may
settle on terms that it deems advisable in its sole discretion, subject to
paragraph F.  Otherwise, Licensee shall have the right, but not the obligation,
to defend any such claim or suit.  In the event Licensee elects not to defend
such suit, CMCC shall have the right, but not the obligation to do so at its own
sole expense.

     E.   Licensee may credit up to fifty (50) percent of any litigation costs
incurred by Licensee in any country pursuant to paragraph C or D and up to 50%
of all amounts paid in judgment or settlement of litigation within the scope of
paragraph D against royalties thereafter payable to CMCC hereunder for such
country and apply the same toward one-half of its actual, reasonable out-of-
pocket litigation costs.  If one-half of such litigation costs in such country
exceed 50 % of royalties payable to CMCC in any year in which such costs are
incurred than the amount of such costs, expenses and amounts paid in judgment or
settlement, in excess of such 50% of the royalties payable shall be carried over
and credited against royalty payments in future years for such country (subject
to the same annual limits). The credit relating to paragraph D shall apply only
to the extent that litigation costs are incurred in defense or settlement of a
claim that the practice of the Patent Rights involved in the manufacture, use or
sale of Licensed Products infringes the patent rights of a third party.

     F.   Licensee shall not settle or compromise any suit in a manner that
imposes any obligations or restrictions on CMCC or grants any rights to the CMCC
Patent Rights without CMCC's written permission, which permission shall not be
unreasonably withheld.  CMCC shall not settle or compromise any such suit in a
manner that imposes any obligations or restrictions on Licensee without
Licensee's written permission, which permission shall not be reasonably
withheld.

     G.   In any action to enforce any of the CMCC Patent Rights, either party,
at the request and expense of the other party, shall cooperate to the fullest
extent reasonably possible.  This provision shall not be construed to require
either party to undertake any activities, including legal discovery, at the
request of any third party except as may be required by lawful process of a
court of competent jurisdiction.

     H.   Notwithstanding the foregoing, if a third party commences a legal
action in any country in which Licensee has exclusive rights under this
Agreement alleging that the practice of the Patent Rights infringes a third-
party's patent rights, Licensee may withhold, pending final resolution of the
litigation, 50% of the royalties thereafter payable to CMCC from sales made in
that country.  In the event that Licensee recovers
<PAGE>

damages from any such litigation, it shall pay to CMCC the 50% previously
withheld together with interest at an annual rate of 10%.

                         ARTICLE VIII. INDEMNIFICATION
                           AND INSURANCE PROVISIONS

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

     B.   Licensee's indemnification under Article VIII, Paragraph A above shall
not apply to any liability, damage, loss or expense to the extent that it is
directly attributable to the negligent activities, reckless misconduct or
intentional misconduct of the Indemnitees.

     C.   Licensee agrees, at its own expense, to provide attorneys reasonably
acceptable to CMCC to defend against any actions brought or filed against any
party indemnified hereunder with respect to the subject of indemnity contained
herein, whether or not such actions are rightfully brought.

     D.   Beginning at the time as any such product, process or service is being
commercially distributed or sold (other than for the purpose of obtaining
regulatory approvals) by Licensee or by a sublicensee, Affiliate or agent of
Licensee, Licensee shall, at its sole cost and expense, procure and maintain
commercial general liability insurance in amounts not less than $2,000,000 per
incident and $2,000,000 annual aggregate and naming the Indemnitees as
additional insureds.  Such commercial general liability insurance shall provide
(i) product liability coverage and (ii) contractual liability coverage for
Licensee's  indemnification under Article VIII, Paragraphs A through C of this
Agreement.  If Licensee elects to self-insure all or part of the limits
described above (including deductibles or retentions which are in excess of
$250,000 annual aggregate), such self-insurance program must be acceptable to
CMCC and the Risk Management Foundation of the Harvard Medical Institutions,
Inc.  The minimum amount of insurance coverage required under this Article VIII,
Paragraph E. shall not be construed to create a limit of Licensee's liability
with respect to its indemnification under Article VIII, Paragraphs A through C
of this Agreement.

     E.   Licensee shall provide CMCC with written evidence of such insurance
upon request of CMCC.  Licensee shall provide CMCC with written notice at least
fifteen (15) days prior to the cancellation, non-renewal or material change in
such insurance. If Licensee does not obtain replacement insurance providing
comparable coverage within such fifteen (15) day period, CMCC shall have the
right to terminate
<PAGE>

this Agreement effective at the end of such fifteen (15) day period without
notice of any additional waiting periods.

     F.   Licensee shall maintain such commercial general liability insurance
during (i) the period that any such product, process or service is being
commercially distributed or sold (other than for the purpose of obtaining
regulatory approvals) by Licensee or by a sublicensee, Affiliate or agent of
Licensee and (ii) a reasonable period after the period referred to above, which
in no event shall be less than five (5) years.

     G.   Licensee shall continue to indemnify CMCC for any product liability

claims arising out of the use of Licensed Product(s) or Process(es) during the
period in which Licensee is developing, making, commercializing and selling any
Licensed Product(s) or Process(es) and for a period of five (5) years after the
date on which the Company ceases to do so (the "Cessation Date"), solely for
claims arising out of such activities prior to the Cessation Date.

     H.   Article VIII, Paragraphs F. and G. shall survive expiration or
termination of this Agreement.

     I.   OTHER THAN WARRANTIES SET FORTH HEREIN, CMCC MAKES NO WARRANTY,
EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE WITH
RESPECT TO ANY PATENT, TRADEMARK, SOFTWARE, TRADE SECRET, TANGIBLE RESEARCH
PROPERTY, INFORMATION OR DATA LICENSED OR OTHERWISE PROVIDED TO LICENSEE
HEREUNDER AND HEREBY DISCLAIMS THE SAME.

                         ARTICLE IX.  EXPORT CONTROLS

     It is understood that CMCC is subject to United States laws and regulations
controlling the export of technical data, computer software, laboratory
prototypes and other commodities (including the Arms Export Control Act, as
amended and the Export Administration Act of 1979), and that its obligations
hereunder are contingent on compliance with applicable United States export laws
and regulations.  The transfer of certain technical data and commodities may
require a license from the cognizant agency of the United States Government
and/or written assurances by Licensee that Licensee shall not export data or
commodities to certain foreign countries without prior approval of such agency.
CMCC neither represents that a license shall not be required, nor that if
required, it shall be issued.

                         ARTICLE X.  NON-USE OF NAMES

     Licensee shall not use the name of Children's Medical Center Corporation,
nor YISSUM, nor the name of any of their corporate affiliates or employees, nor
any adaptation thereof, in any advertising, promotional or sales literature
without prior
<PAGE>

written consent obtained from CMCC in each case which consent shall not be
reasonably withheld, except that Licensee may state that it is licensed by CMCC
under one or more of the patents and/or applications comprising the Patent
Rights, and Licensee may comply with disclosure requirements of all applicable
laws relating to its business, including United States and state securities
laws.

                            ARTICLE XI.  ASSIGNMENT

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

     B.   CMCC may assign this Agreement at any time to any corporate affiliate
of CMCC without the prior consent of Licensee.

     C.   Except as provided in Article XI, Paragraph D below, Licensee may
assign this Agreement to another entity only with the prior written consent of
CMCC, which consent shall not be unreasonably withheld or delayed.

     D.   Notwithstanding anything herein to the contrary, in the event Licensee
merges with another entity, is acquired by another entity, or sells all or
substantially all of its assets to another entity, Licensee may assign its
rights and obligations hereunder to, in the event of a merger or acquisition,
the surviving entity, and in the event of a sale, the acquiring entity, without
CMCC's consent, which shall not be unreasonably withheld or delayed, so long as:
(i) Licensee is not then in breach of this Agreement; (ii) the proposed assignee
has a net worth at least equivalent to the net worth Licensee had as of the date
of this Agreement; (iii) the proposed assignee has available resources and
sufficient scientific, business and other expertise comparable to Licensee in
order to satisfy its obligations hereunder; (iv) Licensee provides written
notice of the assignment to CMCC, together with documentation sufficient to
demonstrate the requirements set forth in subparagraphs (i) through (iii) above,
at least thirty (30) days prior to the effective date of the assignment; and (v)
CMCC receives from the assignee, in writing, at least thirty (30) days prior to
the effective date of the assignment: (a) an agreement to be bound by the terms
of this Agreement; and (b) an agreement to perform the obligations of Licensee
under this Agreement.

               ARTICLE XII.  DISPUTE RESOLUTION AND ARBITRATION

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

shall have selected a representative who shall have the authority to bind such
party and shall have advised the other party in writing of the name and title of
such representative.

     B.   In the event that a dispute arises between the parties hereto, then
the parties agree to use their best efforts to resolve the dispute amicably.  In
the event that the parties have not resolved the dispute within sixty (60) days,
then the parties agree to submit to binding arbitration in accordance with this
Article XII.

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

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

                      ARTICLE XIII.  TERM AND TERMINATION

     A.   The term of this Agreement shall be not less than fifteen (15) years
or the life of the last expiring Patent Right, whichever period is the longer
term.

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

     C.   CMCC may terminate this Agreement upon forty-five(45) days prior
written notice in the event of Licensee's failure to pay to CMCC royalties due
and payable hereunder in a timely manner, unless Licensee shall make all such
payments to CMCC within said forty-five (45) day period.  Upon the expiration of
the thirty (30) day period, if Licensee shall not have made all such payments to
CMCC, the rights, privileges and licenses granted hereunder shall terminate.

     D.   Except as otherwise provided in Paragraph C above, CMCC may terminate
this Agreement upon sixty (60) days prior written notice in the event of
Licensee's breach or default of any material term or condition or warranty
contained in
<PAGE>

this Agreement, unless Licensee shall cure such breach to CMCC's reasonable
satisfaction within said sixty (60) day period. Upon the expiration of the sixty
(60) day period, if Licensee shall not have cured said breach to the reasonable
satisfaction of CMCC, the rights, privileges and license granted hereunder shall
terminate.

     E.   Licensee shall have the right to terminate this Agreement at any time
upon ninety (90) days prior written notice to CMCC, and upon payment by Licensee
of all amounts due CMCC through the effective date of termination.

     F.   Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination.  Licensee and any sublicensee
thereof may, however, after the effective date of such termination, sell all
Licensed Products and complete Licensed Products in the process of manufacture
at the time of such termination and sell the same, provided that Licensee shall
pay to CMCC the royalties thereon as required under this Agreement and shall
submit the reports required under this Agreement on the sales of Licensed
Products.

     G.   Upon termination of this Agreement for any reason, all rights and
licenses shall revert to CMCC and/or YISSUM, as appropriate.  Licensee shall
return, and/or transfer, to CMCC and/or YISSUM, as appropriate, within 14 days
of termination, all the rights and/or material relating to Licensed Products or
Licensed Processes, and any and all data, inventions, know-how, and patent
rights developed under the Sponsored Research Agreement, and Licensee may not
make any further use thereof, nor shall Licensee be entitled to any
reimbursement of any amount paid to CMCC or YISSUM under this Agreement or the
Sponsored Research Agreement.  Licensee shall also provide to CMCC exclusive
rights to any related tangible or intangible property and developed solely by
Licensee in the course of commercializing Licensed Products or Licensed Products
(including, but not limited to manufacturing know-how, test data, product
samples, patent filings, regulatory filings, and clinical data) under an
agreement through which CMCC would, from proceeds (if any) derived from
subsequent commercialization of the Patent Rights and/or Licensed Products
and/or Licensed Products, reimburse Licensee for its reasonable costs in
developing said tangible and intangible assets.

     H.   Upon termination of this Agreement by CMCC, CMCC shall, and shall
cause YISSUM to, refrain from selling any then unsold shares of common stock or
exercising any then unexercised warrants then owned or possessed by either
party, and shall return, and cause YISSUM to return, any such shares and/or
warrants to Licensee within fourteen (14) days of such termination.

           ARTICLE XIV.  PAYMENTS, NOTICES, AND OTHER COMMUNICATIONS

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

<PAGE>

In the case of CMCC:

          Director, Technology Transfer
          Office of Research Administration
          Children's Hospital
          300 Longwood Avenue
          Boston, MA  02115
          Telefax 617 232-7485

     In the case of Licensee:

          General Counsel
          Lakaro Biopharmaceuticals
          216 Jaffa Road
          Jerusalem 94383 Israel
          Telefax: 972-2-537-5098

                        ARTICLE XV.  GENERAL PROVISIONS

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

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

     C.   It is expressly agreed by the parties hereto that CMCC and Licensee
are independent contractors and nothing in this Agreement is intended to create
an employer relationship, joint venture, or partnership between the parties.  No
party has the authority to bind the other.

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

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

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

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

     H.   Licensee agrees to mark any Licensed Products sold in the United
States with all applicable United States patent numbers.  All Licensed Products
shipped to or sold in other countries shall be marked in such a manner as to
conform with the patent laws and practices of the country of manufacture or
sale.

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

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

     K.   Each party hereto shall be excused from any breach of this Agreement
which is proximately caused by governmental regulation, act of war, strike, act
of God or other similar circumstance normally deemed outside the control of the
parties.

     L.   This Agreement will not be binding upon the parties until it has been
signed below on behalf of each party, in which event it shall be effective as of
the date recited on page one.

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

CHILDREN'S MEDICAL CENTER CORPORATION           LRK BIOPHARMACEUTICALS, INC.

By:  /s/  William New                           By:  /s/  Benjamin Corn
   ____________________________                    _____________________________
Name:  William New                              Name:  Benjamin Corn
     __________________________                      ___________________________

            Vice President
Title:  Research Administration                 Title:  President
      _________________________                       __________________________
Date:                                           Date:   11/18/99
     __________________________                      ___________________________

<PAGE>

                                  Appendix 1
                                 Patent Rights

CMCC 547 "Short peptides which selectively modulate the activity of protein
tyrosine kinases"  by Dr. Shmuel Ben-Sasson

CMCC 590 "Short Peptides which selectively modulate the activity of
serine/threonine kinases", by Dr. Shmuel Ben-Sasson<PAGE>

[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR THE PORTIONS OF THIS EXHIBIT
MARKED WITH ASTERIKS (***).]

                                                                   EXHIBIT 10.7

================================================================================

                               LICENSE AGREEMENT

                                    between

                             ALFA WASSERMANN S.p.A

                                      and

                                  PARTEC LTD

================================================================================

<PAGE>

                      Addendum No. 1 to License Agreement
                      -----------------------------------

This addendum (hereinafter referred to as this "Addendum"), effective as of
December 11, 1998, is entered into by and between ALFA WASSERMAN S.p.A., an
Italian company with registered offices in Contrada Sant'Emidio s/n, 65020
Alanno Scalo (PE) (the "Licensor") and PARTEC Ltd., a company duly organized and
existing under the laws of the State of Israel with registered offices in Jaffa
Road, Sha'arei Ha'ir, Jerusalem 94383 Israel (the "Company").

WHEREAS the Licensor and the Company executed a License Agreement (the
"Agreement") on November 12, 1998, pursuant to which the Company was given an
exclusive license as set forth in Article 2 of the Agreement, such exclusivity
being limited to the United States, Canada, Japan, Australia, New Zealand and
South Africa (the "Territory");

WHEREAS the parties desire to expand the definition of the Territory as set
forth in this Addendum; and

WHEREAS the Agreement also incorrectly described several of the patents being
licensed to the Company.

NOW, THEREFORE, it is agreed as follows:

1.    Paragraph 1.8 of the Agreement shall be amended as follows:

      "Territory" shall mean the United States, Canada, Japan, Australia, New
      Zealand, South Africa and Israel.

2.    The following changes shall be made in Schedule A to the Agreement:

          a.    In paragraph 7, change "-L-galacturonic acid" to
                "(alpha)-L-galacturonic acid."

          b.    In paragraph 8, change "Hepatran" to "Heparan" and "(alpha)-
                Liduronic-20-sulface acid" to "(alpha)-Liduronic-2-0-sulfate
                acid."

          c.    In paragraph 10, change "Neuropathy" to "Nephropathy."

3.    All other provisions of the Agreement shall remain as set forth in the
      Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Addendum in triplicate
by proper persons thereunto duly authorized.

COMPANY                                 LICENSOR

By: /s/ Andrea Golinelli                By: /s/ Morris Laster
    -----------------------------           --------------------------
Name: Andrea Golinelli                  Name: Morris Laster
Title: General Manager                  Title: CEO
       International Division
       Alfa Wasserman SpA
<PAGE>

                                     INDEX
                           of the LICENSE AGREEMENT
                                    between
                             ALFA WASSERMANN S.p.a
                                      and
                                  PARTEC LTD

LICENSE AGREEMENT ...........................................................  1
ARTICLE 1 - DEFINITIONS .....................................................  1
ARTICLE 2 - GRANT ...........................................................  3
ARTICLE 3 - DUE DILIGENCE ...................................................  5
ARTICLE 4 - ROYALTIES AND OTHER CONSIDERATION ...............................  5
ARTICLE 5 - REPORTS AND RECORDS .............................................  8
ARTICLE 6 - PATENT PROSECUTION AND MAINTENANCE ..............................  9
ARTICLE 7 - TERMINATION ..................................................... 10
ARTICLE 8 - ARBITRATION ..................................................... 11
ARTICLE 9 - INFRINGEMENT AND OTHER ACTIONS .................................. 12
ARTICLE 10 - LIMITATION OF LIABILITY, INDEMNITY ............................. 13
ARTICLE 11 - ASSIGNMENT ..................................................... 14
ARTICLE 12 - PAYMENT OF FEES AND EXPENSES ................................... 14
ARTICLE 13 - USE OF NAMES AND PUBLICATION ................................... 14
ARTICLE 14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS ..................... 15
ARTICLE 15 - CONFIDENTIALITY ................................................ 16
ARTICLE 16 - MISCELLANEOUS PROVISIONS ....................................... 17
SCHEDULE A ..................................................................  a
SCHEDULE B ..................................................................  i
SCHEDULE C ..................................................................  i
SCHEDULE D ..................................................................  i
<PAGE>

                               LICENSE AGREEMENT
                               -----------------

This License Agreement (hereinafter referred to as this "Agreement"), effective
as of November 12, 1998 (the "Effective Date"), is entered into by and between
ALFA WASSERMANN S.p.A, an Italian company with registered office in Contrada
Sant'Emidio s/n 65020 Alanno Scalo (PE), (the "Licensor") and PARTEC Ltd., a
corporation duly organized and existing under the laws of the State of Israel
with registered office in Jaffa Road, Shar'Arei Ha'ir, Jerusalem, 94383, (the
"Company").

WHEREAS, the Licensor is the owners of the Patents and Patent Applications set
forth in Schedule A attached hereto, which are based on inventions and
confidential information discovered by the Licensor (the "Invention"); and

WHEREAS, the Licensor may discover or develop additional intellectual property,
technical information or proprietary rights that may be subject to the terms of
this Agreement; and

WHEREAS, the Company now desires to obtain a license to the Invention and to any
further developments to the Invention, upon the terms and conditions hereinafter
set forth,

NOW, THEREFORE, it is agreed as follows:

ARTICLE 1 - DEFINITIONS
-----------------------

For the purposes of this License Agreement, the following words and phrases
shall have the following meanings:

1.1   "Affiliate" shall mean, with respect to any Entity (as hereinafter
      defined), any Entity that directly or indirectly controls, is controlled
      by, or is under common control with such Entity.

1.1.1 "Control" shall mean, for this purpose, direct or indirect control of more
      than fifty percent (50%) of the voting securities of an Entity or, if such
      Entity does not have outstanding voting securities, more than 50% of the
      directorships or similar positions with respect to such Entity.

1.1.2 "Entity" shall mean any corporation, association, joint venture,
      partnership, trust, university, business, individual, government or
      political subdivision thereof, including an agency, or any other
      organization that can exercise independent legal standing.

1.2   "Patent Rights" shall mean all patents and patent applications set forth
      in Schedule A;

                                       1
<PAGE>

1.2.1 Any other patent applications and/or patents together with any and all
      patents issuing thereon including continuation, divisionals and re-issue
      applications and continuation-in-part applications and any patents granted
      upon such applications, based upon inventions or improvements discovered
      by Licensors any and all of which shall be deemed added to Schedule A;

1.2.2 Any later-filed patent applications based on the patent applications
      and/or patents listed in Schedule A, or corresponding thereto, including
      any continuations, continuations-in-part, divisionals, reissues,
      reexaminations, or extensions thereof;

1.2.3 Any patents issuing from any of the foregoing; and

1.2.4 Any trademark applications filed by or on behalf of the Licensors related
      to the Invention. The Licensor reserves the rights to decide whether to
      allow the Company to use its trademarks/tradenames already filed/used
      outside the Territory within one year from the execution of this
      Agreement. It would be the Company's obligation to file and keep alive, at
      its own costs and responsibility, any trademark of any Licensed Products
      in the Territory.

1.3   "Know-how" shall mean all tangible information (other than that contained
      in the Patent Rights) whether patentable or not (but which has not been
      patented) and physical objects related to the Invention or to a Licensed
      Product (as defined below), including but not limited to formulations,
      materials, data, drawings and sketches, designs, testing and test results,
      and regulatory information of a like nature, owned by the Licensor on or
      after the Effective Date, which the Licensor has the right to disclose and
      license to the Company.

1.4   "Licensed Product(s)" shall mean:

1.4.1 Any product which is covered in whole or in part by a valid and unexpired
      claim contained in the Patent Rights in the country in which the product
      is made, used, leased or sold;

1.4.2 Any product which is manufactured using a process which is covered in
      whole or in part by a valid and unexpired claim contained in the Patent
      Rights in the country in which the process is used;

1.4.3 Any product which is used according to a method which is covered in whole
      or in part by a valid and unexpired claim contained in the Patent Rights
      in the country in which the method is used.

1.5   "Licensed Process(es)" shall mean any process or method, which is covered,
      in whole, or in part, by a valid and unexpired claim contained in the
      Patent Rights in the country in which the process or method is used.

                                       2
<PAGE>

1.6      "Net Sales" shall mean the sum of all sales prices invoiced or
         otherwise charged on final sale of Licensed Products or practice of
         Licensed Processes by or on behalf of the Company or any of its
         Affiliates, less only the sum of the following:

1.6.1    Usual cash and trade discounts to customers;

1.6.2    Sales, tariff duties, use taxes, sales taxes, excise taxes, value-added
         taxes and/or other taxes directly imposed and with reference to
         particular sales;

1.6.3    Delivery charges;

1.6.4    Amounts allowed or credited on returns; and

1.6.5    Social insurance discounts.

1.7      "Field of Use" shall mean the use of the Invention for the treatment of
         diabetic nephropathy, diabetic neuropathy and diabetic retinopathy.

1.7(a)   The "Field of Not Novel Indications" shall mean: aterosclerosis,
         peripheral arterial obstructive disease, venous leg ulcer, cerebral
         vascular disease, myocardial infarction, lymphedema, idiopatic
         urticaria and interstitial cystitis.

1.8      "Territory" shall mean the United States, Canada, Japan, Australia, New
         Zealand and South Africa

ARTICLE 2 - GRANT
-----------------

2.1      The Licensor hereby grants to the Company and the Company accepts,
         subject to the terms and conditions of this Agreement, an exclusive
         license in the Territory to practice under the Patent Rights and to
         utilize the Know-how in the Field of Use, and to register, make, have
         made, lease, use, market and/or sell Licensed Products and to practice
         Licensed Processes, until expiration or termination of the Patent
         Rights as hereinafter provided.

2.2      To the Licensor's knowledge and belief, the Licensor has all right,
         title, and interest in and to the Patent Rights, including exclusive,
         absolute, irrevocable right, title and interest thereto, free and clear
         of all liens, charges, encumbrances or other restrictions or
         limitations of any kind whatsoever and to the Licensor's knowledge and
         belief there are no licenses, options, restrictions, liens, rights of
         third parties, disputes, royalty obligations, proceedings or claims
         relating to, affecting, or limiting its rights or the rights of the
         Company under this Agreement with respect to, or which may lead to a
         claim of infringement or invalidity regarding, any part or all of the
         Patent Rights and their use as contemplated in the underlying patent
         applications as presently drafted.

                                       3
<PAGE>

2.3      To the Licensor's knowledge and belief there is no claim, pending or
         threatened, of infringement, interference or invalidity regarding, any
         part or all of the Patent Rights and their use as contemplated in the
         underlying patent applications as presently drafted.

2.4      The Licensor has disclosed certain information to the Company subject
         to the terms of the Confidentiality Agreement entered into prior to the
         execution of this Agreement, some of which information may have been
         made available to the public without restriction. Accordingly, attached
         hereto as Schedule B is a list of all prior written publications, oral
         presentations and any other public disclosure of the Patent Rights
         and/or information covered by Know-how.

2.5      The Licensor hereby grants to the Company the right to grant
         sublicenses to third-parties under the license granted hereunder.

2.5.1    Within 30 days after execution or receipt thereof, as applicable, the
         Company shall provide the Licensor with a copy of each sublicense
         issued hereunder and shall deliver copies of all royalty reports
         received by the Company from such sublicensees.

2.5.2    Upon termination of this Agreement other than by expiration in
         accordance with paragraph 7.6, any and all sublicenses shall survive
         such termination provided that the Company's commitments to such
         sublicensees shall not exceed the Company's rights from the Licensor
         pursuant to this Agreement.

2.6      The Licensor shall, within 75 days of the development thereof, provide
         the Company with any and all Know-how related to the Invention that the
         Licensor develops at any time subsequent to the Effective Date
         ("Subsequent Indication"). The Licensor hereby grants to the Company
         the right to use any such Subsequent Indication in the Territory
         pursuant to the terms of this Agreement.

2.7      At the request of the Company, the Licensor agrees to use its good
         relationship with Opocrin S.p.A., Via Pacinotti 3, 41040 Corlo di
         Formigine (Modena), Italy, to aid the Company in securing the
         production of sulodexide.

2.8      The Licensor acknowledges and agrees that any use of the Invention
         outside the Field of Use for any indication other than intraperitoneal
         dialysis and the Field of Not Novel Indications that is discovered by
         the Company shall be and remain the property of the Company and the
         Company shall enjoy exclusive, worldwide rights to such indication.

                                       4
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PAGE.]

2.9      The Company hereby grants to the Licensor right of first negotiation
         for a period of 90 days to negotiate in good faith a license agreement
         for use of the Invention for any new indication (other than
         intraperitoneal dialysis) discovered by the Company during the Term of
         this Agreement.

ARTICLE 3 - DUE DILIGENCE
-------------------------

The Company shall use its reasonable best efforts to bring Licensed Products or
Licensed Processes to market through a thorough, vigorous and diligent
development program of commercial exploitation of the Patent Rights and
Know-how, including compliance with the milestones set forth in Schedule C. The
Company shall continue active, diligent marketing efforts for the Licensed
Products or Licensed Processes throughout the life of this Agreement.

ARTICLE 4 - ROYALTIES AND OTHER CONSIDERATION
---------------------------------------------

4.1      In consideration of the rights, privileges and license granted
         hereunder, the Company shall pay to the Licensor as set forth in, and
         in accordance with the provisions of, this Article 4 until termination
         or expiration of this Agreement pursuant to Article 7 hereof.

4.2      The Company shall pay to the Licensor and/or its representatives a
         non-refundable quarterly royalty in an amount equal to *** of Net
         Sales by the Company, or any Affiliate of the Company, of Licensed
         Products or Licensed Processes covered by at least one issued and
         unexpired claim under the Patent Rights.

4.3      The Company shall pay to the Licensor a non-refundable quarterly
         royalty in an amount equal to the lesser of (a) *** of the royalties
         received by Licensee or its Affiliate from sales by any sublicensee of
         Licensed Products or Licensed Processes and (b) *** of Net Sales by any
         such sublicensee.

4.4      In addition, the Company shall pay to the Licensor *** of all lump-sum
         payments received by the Company or an Affiliate from its sublicensees
         for the use, lease or sale of Licensed Products and Licensed Processes,
         excluding (a) payments used or reimbursed for research and development
         and (b) payments received from the issuance of debt or equity
         securities of the Company.

4.5      The Company agrees to pay to the Licensor the Milestone Payments set
         forth on Schedule C attached hereto, which shall be deducted from or
         credited against, as the case may be, payments made in accordance with
         section 4.4 above.

                                       5
<PAGE>
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PAGE.]

4.6      On each anniversary of the Effective Date, the Company shall pay to the
         Licensor an annual fee in the following amounts which shall be fully
         creditable against Milestones 2 through 5 as set forth on Schedule C
         attached hereto: (a) Year 1 - $100,000 (b) Year 2 - ***
         (c) Year 3 - *** (d) Year 4 and thereafter - ***.

4.7      On sales of Licensed Products by the Company to Affiliates or related
         parties that are end users of such Licensed Products, the value of Net
         Sales attributed under this Article 4 shall be that which would have
         been received in an arms-length transaction, based on sales of like
         quantity and quality products at or about the time of such transaction.

4.8      No multiple royalties shall be payable because the use, lease or sale
         of any Licensed Product or Licensed Process is, or shall be, covered by
         more than one valid and unexpired claim contained in the Patent Rights.
         In addition, royalties shall be paid for a Licensed Product or Licensed
         Process based upon only one of paragraphs 4.2 or 4.3 above (that is,
         royalties on direct sales of a Licensed Product or Licensed Process by
         the Company or its Affiliates shall be based only on paragraph 4.2,
         while royalties on sales of a Licensed Product or Licensed Process by
         the Company's sublicensees shall be based only on paragraph 4.3, so as
         to avoid double counting).

4.9      In the event that a Licensed Product is sold in the form of a
         combination product containing one or more products or technologies
         that are themselves not a Licensed Product, the Net Sales for such
         combination product shall be calculated by multiplying ***. In the case
         of a combination product which includes one or more Licensed Products,
         the Net Sales for such combination product upon which the royalty due
         to the Licensor is based shall not be less than the normal aggregate
         Net Sales for such Licensed Product.

4.10     Royalty payments shall be paid in United States dollars in New York,
         New York or at such other place as the Licensor may reasonably
         designate consistent with the laws and regulations controlling in any
         foreign country. Any withholding taxes that the Company, its Affiliate
         or any sublicensee shall be required by law to withhold on remittance
         of the royalty payments shall be deducted from such royalty payment to
         the Licensor. The Company shall furnish the Licensor with the original
         copies of all official receipts for such taxes. If any currency
         conversion shall be required in connection with the payment of
         royalties hereunder, such conversion shall be made by using the
         exchange rate prevailing at Citibank, N.A. in New York, New York on the
         last business day of the calendar quarterly reporting period to which
         such royalty payments relate. The Company will reasonably cooperate
         with the Licensor in the Licensor's effort to avoid a double taxation,
         provided however that the Company shall not be required to pay any sums
         to or on behalf of the Licensor pursuant to this section 4.10. Such
         assistance shall not be interpreted to include the assistance or
         cooperation by the Company in any illegal activity or tax evasion

                                       6
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[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR INFORMATION REDACTED FROM THIS
PAGE.]

         by the Licensor.

4.11     Royalties payable to the Licensor shall be paid quarterly on or before
         forty-five (45) days from the end of each such calendar quarter. Each
         quarterly payment shall be for unpaid royalties that accrued within or
         prior to the Company's two most recently completed fiscal quarters.

4.12     Payment obligations shall be due with respect to any sale or sublicense
         covering any Licensed Product in the Territory

4.13     To the extent that the Company or any Affiliate of the Company is
         required, by order or judgement of any court to obtain in any
         jurisdiction any license from a third party in order to make, use or
         sell any Licensed Product or Licensed Process, then up to *** of the
         royalties payable hereunder with respect to such Licensed Product or
         Licensed Process in such jurisdiction may be deducted from royalties
         otherwise payable to the Licensor hereunder, provided that in no event
         shall the aggregate royalties payable to the Licensor in any quarterly
         period in such jurisdiction be reduced by more than *** as a result of
         such deduction, and provided further that any excess deduction
         remaining as a result of such limitation may be carried forward to
         subsequent periods.

4.14     In the event that the Licensor or any sublicensee registers, makes, has
         made, uses, leases, markets and/or sells any product in Germany,
         Switzerland, Greece, Sweden, Norway, Finland, Denmark, the United
         Kingdom, Ireland, France and/or Benelux, which incorporates information
         or know-how provided to the Licensor by the Company pursuant to
         paragraph 5.1 hereof, then the Licensor shall pay to the Company
         royalties in an amount equal to *** of Net Sales by the Licensor or any
         such sublicensee and *** of any lump-sum payments received by the
         Licensor from such sublicensee. Notwithstanding the foregoing, any
         novel indication (which is defined as any indication different from
         intraperitoneal dialysis and not included in the Field of Use and/or in
         the Field of Not Novel Indications) discovered by the Company shall be
         and remain the property of the Company for which it shall have
         exclusive world-wide rights to such indication.

4.15(a)  In the event that the Company develops proprietary information and data
         including but not limited to pre-clinical studies and clinical studies
         with applications outside the Field of Use and/or in the Field of Not
         Novel Indications ("Company Proprietary Information"), the Licensor
         shall be entitled to use the Company Proprietary Information within the
         Field of Use and/or in the Field of Not Novel Indications and outside
         the Territory but excluding those territories referred to in Section
         4.14 above. In consideration for the use of the Company Proprietary
         Information, the Licensor shall pay the Company a fee in U.S. dollars
         equal to *** of the Company's expenses actually incurred for such
         information and data development, payable upon delivery thereof by the
         Company to the Licensor. The Licensor shall not be entitled to
         sublicense, assign, transfer, market or commercially exploit the
         Company Proprietary Information. The provisions of this section 4.15,
         shall not limit the Company's right to receive royalties pursuant to
         Section 4.14 above.

                                       7
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[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR INFORMATION REDACTED FROM THIS
PAGE.]

     (b) In the event that the Licensor discovers and develops novel indications
         outside the Field of Use and/or in the Field of Not Novel Indications
         but including the field of interperitoneal dialysis, the Licensor may
         have the option to purchase any relevant Company Proprietary
         Information relating thereto. In consideration for the use of the
         Company Proprietary Information, the Licensor shall pay the Company a
         fee in U.S. dollars equal to *** of the Company's expenses actually
         incurred for such information and data development, payable upon
         delivery thereof by the Company to the Licensor.

ARTICLE 5 - REPORTS AND RECORDS
-------------------------------

5.1      The Company agrees to update the Licensor at least quarterly as to the
         Company's activities related to the Invention including, without
         limitation, the following: (a) the results of any research and
         development of the Invention conducted by the Company and (b) the
         Company's efforts to obtain approval from the FDA to market and sell
         Licensed Products.

5.2      The Company shall keep full, true and accurate books of account
         containing all particulars that may be necessary for the purpose of
         showing the amounts payable to the Licensor by way of royalty as
         aforesaid. Said books of account shall be kept at the Company's
         principal place of business and the supporting data shall be available
         to the Licensor up to twice per year upon reasonable notice to the
         Company, for five years following the end of the calendar year to which
         they pertain, for inspection by an auditor selected by the Licensor,
         except one to whom the Company has reasonable objection, for the
         purpose of verifying the Company's royalty statement or compliance in
         other respects with this License Agreement. If an inspection shows an
         under reporting or underpayment in excess of the greater of *** *** of
         royalties payable for any 12 month period, then the Company shall
         reimburse the Licensor for the cost of the inspection at the time the
         Company pays the unreported royalties, including any late charges as
         required by paragraph 5.5 of this Agreement. All payments required
         under this Article 5 shall be due within 60 days of the date the
         Licensor provides the Company notice of the payment due.

5.3      Within 45 days from the end of each quarter of each calendar year, the
         Company shall deliver to the Licensor complete and accurate reports,
         giving such particulars of the business conducted by the Company during
         the preceding quarter under this License Agreement as shall be
         pertinent to a royalty accounting hereunder. These shall include at
         least the following:

5.3.1    All Licensed Products and Licensed Processes used, leased or sold, by
         or for the Company, its Affiliates or any sublicensees.

5.3.2    Total amounts invoiced for Licensed Products and Licensed Processes
         used, leased or sold, by or for the Company, its Affiliates or any
         sublicensees.

5.3.3    Deductions applicable in computing "Net Sales" as defined in Paragraph
         1.6.

                                       8
<PAGE>

5.3.4    Total royalties due based on Net Sales by or for the Company, its
         Affiliates or any sublicensee, any lump sum payment due to the
         Licensor, pursuant to paragraphs 4.2 - 4.3.

5.3.5    Names and addresses of all sublicensees and Affiliates of the Company.

5.3.6    On an annual basis, the Company's year-end audited financial
         statements.

5.4      With each such quarterly report submitted, the Company shall pay to the
         Licensor the royalties due and payable under this Agreement. If no
         royalties shall be due, the Company shall not be required to make a
         report pursuant to this Article 5.

5.5      Amounts that are not paid when due and that are not the subject of a
         bona fide dispute shall accrue interest from the due date until paid,
         at a rate equal to the then prevailing prime rate of Citibank, N.A.,
         plus two percent (2%).

5.6      The Company agrees to forward to the Licensor semi-annually a copy of
         any report, which is in substance similar to the report required by
         this Article 5, received from any sublicensee as well as any other
         documents received from any sublicensee as the Licensor may reasonably
         request, as may be pertinent to an accounting of royalties.

5.7      The Licensor agrees to hold in confidence each report delivered by the
         Company pursuant to this Article 5 until the termination of this
         Agreement. Notwithstanding the foregoing, the Licensor may disclose any
         such information required to be disclosed pursuant to any judicial,
         administrative or governmental request, subpoena, requirement or order,
         provided that the Licensor takes reasonable steps to provide the
         Company with the opportunity to contest such request, subpoena,
         requirement or order.

ARTICLE 6 - PATENT PROSECUTION AND MAINTENANCE
----------------------------------------------

6.1      Within three months from the execution of this Agreement the parties
         shall set forth a procedure by which the Licensor will monitor the
         Patents and Patent Rights as set forth in Schedule A hereto (as the
         same may be amended or supplemented from time to time after the date
         hereof), for which the Company will be responsible to diligently
         prosecute and maintain in the Territory the Patent Rights including,
         but not limited to, the filing of patent applications for inventions
         and improvements to the Invention, discovered by the Licensor or the
         Company, utilizing such patent counsel as may be mutually agreed upon
         by the parties hereto. The Company agrees to keep the Licensor
         reasonably well informed with respect to the status and progress of any
         such applications, prosecutions and maintenance activities and to
         consult in good faith with the Licensor and take into account the
         Licensor's comments and requests with respect thereto. Both parties
         agree to provide reasonable cooperation to each other to facilitate the
         application and prosecution of patents pursuant to this Agreement.

                                       9
<PAGE>

6.2      The Company may, in its discretion, elect to abandon any patent
         application or issued patent comprising the Patents Rights, in which
         case the Company shall make no further use of such Patent Rights and
         shall have no further royalty obligation to the Licensor in respect of
         any Licensed Products and Licensed Processes the manufacture, use or
         sale of which is covered by an issued claim of such abandoned Patent
         Rights. Prior to any such abandonment, the Company shall give the
         Licensor at least 60 days notice and a reasonable opportunity to assume
         prosecution of such Patent Rights. In such event, the Licensor shall
         have the right, but not the obligation, to commence or continue such
         prosecution and to maintain any such Patent Rights under its own
         control and at its expense and the Company shall then make no further
         use of any such Patent Rights and shall have no royalty or other
         obligation to the Licensor in respect of any Licensed Products and
         Licensed Processes, the manufacture, use or sale of which is covered by
         an issued claim of such Patent Rights. The Company agrees to cooperate
         in such activities, including execution of any assignment or other
         documents necessary to enable the Licensor to obtain and retain sole
         ownership and control of such Patent Rights.

ARTICLE 7 - TERMINATION
-----------------------

7.1      If the Company shall become bankrupt, or shall file a petition in
         bankruptcy, or if the business of the Company shall be placed in the
         hands of a receiver, assignee or trustee for the benefit of creditors,
         whether by the act of the Company or otherwise, this License Agreement
         shall automatically terminate.

7.2      In the event that the Company fails to make payment to the Licensor of
         royalties due in accordance with the terms of this Agreement, provided
         such failure to make payment is not as a result of a bona fide dispute
         between the Licensor and the Company, the Licensor shall have the right
         to terminate this License Agreement within 60 days after giving said
         notice of termination unless the Company shall pay to the Licensor,
         within the 60-day period, all such royalties due and payable. Subject
         to Article 8, upon the expiration of the 60-day period, if the Company
         shall not have paid all such royalties due and payable, the rights,
         privileges and license granted hereunder shall, at the option of the
         Licensor, immediately terminate.

7.3      Upon any material breach or default of this License Agreement by the
         Company, other than as set forth in Paragraphs 7.1 and 7.2 hereinabove,
         the Licensor shall have the right to terminate this Agreement and the
         rights, privileges and license granted hereunder upon giving 60 days
         notice to the Company. Such grounds for termination include, but shall
         not be limited to, the Licensor's reasonable determination that the
         Company is not using its reasonable best efforts to develop the
         Invention and keep Licensed Products or Licensed Processes reasonably
         available to the public after commercial use commences. Such
         termination shall become effective immediately unless the Company shall
         have cured any such breach or default prior to the expiration of the
         60-day period referred to above. Notwithstanding the foregoing, in the
         case of any sublicensee, assignee, transferee, or third party ("Third
         Party"), the Company shall be entitled to cure the breach within the
         aforementioned sixty (60) day period or terminate its agreement

                                      10
<PAGE>

         with the Third Party as a result of such a breach. In either of such
         events, the Licensor shall not have the right to terminate this
         Agreement, it being agreed that the Licensor shall only be entitled to
         terminate this Agreement as a result of a breach by a Third Party in
         circumstances where the Company allows the breach to continue without
         curing same or terminating its agreement with the Third Party.

7.4      The Company shall have the right at any time to terminate this
         Agreement in whole or as to any portion of the Patent Rights by giving
         60 days notice thereof in writing to the Licensor. In the event of
         termination pursuant to this Section 7.4, the Company shall transfer
         the INDs/NDAs/registrations/marketing authorizations in its possession
         or in possession of its sublicensees to the Licensor or to a Licensor's
         designee. In consideration of the transfer of such information, the
         Licensor shall pay to the Company a lump sum payment in U.S. dollars
         equal to 25% of the expenses actually incurred by the Company from the
         development of the Invention.

7.5      Upon termination of this Agreement for any reason, nothing herein shall
         be construed to release either party from any obligation that matured
         prior to the effective date of such termination or obligations under
         Articles 5, 8, 9, 10, 15 and 16. The Company and/or any sublicensee
         thereof may, however, at any time after the effective date of such
         termination and continuing for a period not to exceed six months
         thereafter, sell all completed Licensed Products, and any Licensed
         Products in the process of manufacture at the time of such termination,
         and sell the same, provided that the Company shall pay or cause to be
         paid to the Licensor the royalties thereon as required by Article 4 of
         this License Agreement and shall submit the reports required by Article
         5 hereof on the sales of Licensed Products.

7.6      If not terminated sooner, this Agreement shall terminate upon the later
         to occur of (a) the date of the last to expire claim contained in the
         Patent Rights and (b) the date that is 10 years from the first
         commercial sale of a Licensed Product.

7.7      Upon termination of this Agreement, except pursuant to 7.6 hereof, the
         Company shall have no future rights to the Patent Rights and Know-how
         granted hereunder, and shall make no further use thereof, including the
         manufacture, use or sale of Licensed Products or Licensed Processes,
         except as otherwise set forth herein.

7.8      If at any time on or before the fourth anniversary of the Effective
         Date, the Board of Directors of the Company shall determine, in its
         sole discretion not to proceed with the further development of the
         Patent Rights and Know-how then the Company shall no longer have any
         right, title and interest in the Patent Rights and Know-how

ARTICLE 8- ARBITRATION
----------------------

8.1      Any dispute arising from or relating to this Agreement shall be
         determined by valid and binding arbitration in London, United Kingdom
         and shall be conducted in the English language.

                                      11
<PAGE>

8.2      Any claim, dispute, or controversy concerning the validity,
         enforceability, or infringement of any patent contained in the Patent
         Rights licensed hereunder shall be resolved in court having
         jurisdiction thereof.

8.3      In the event that, in any arbitration proceeding, any issue shall arise
         concerning the validity, enforceability, or infringement of any patent
         contained in the Patent Rights licensed hereunder, the arbitrators
         shall, to the extent possible, resolve all issues other than validity,
         enforceability, and infringement. In any event, the arbitrators shall
         not delay the arbitration proceeding for the purpose of obtaining or
         permitting either party to obtain judicial resolution of such issues,
         unless an order staying the arbitration proceeding shall be entered by
         a court of competent jurisdiction. Neither party shall raise any issue
         concerning the validity, enforceability, or infringement of any patent
         contained in the Patent Rights licensed hereunder, in any proceeding to
         enforce any arbitration award hereunder, or in any proceeding otherwise
         arising out of any such arbitration award.

8.4      The costs of such arbitration shall be borne proportionate to the
         finding of fault as determined by the Arbitrator. Judgment on the
         arbitration award may be entered by any court of competent
         jurisdiction.

ARTICLE 9 - INFRINGEMENT AND OTHER ACTIONS
------------------------------------------

9.1      The Company and the Licensor shall promptly provide written notice, to
         the other party, of any alleged infringement by a third party of the
         Patent Rights and provide such other party with any available evidence
         of such infringement.

9.2      During the term of this Agreement, the Company shall have the right,
         but not the obligation, to prosecute and/or defend, at its own expense
         and utilizing counsel of its choice, any infringement of, and/or
         challenge to, the Patent Rights. In furtherance of such right, the
         Licensor hereby agrees that the Company may join the Licensor as a
         party in any such suit, without expense to the Licensor. No settlement,
         consent judgment or other voluntary final disposition of any such suit
         that would adversely affect the rights of the Licensor may be entered
         into without the consent of the Licensor, which consent shall not be
         unreasonably withheld. The Company shall indemnify and hold the
         Licensor harmless against any costs, expenses or liability that may be
         found or assessed against the Licensor in any such suit other than
         resulting from the Licensor's gross negligence, recklessness or willful
         misconduct.

9.3      In the event that a claim or suit is asserted or brought against the
         Company alleging that the manufacture or sale of any Licensed Product
         by the Company, an Affiliate of the Company, or any sublicensee, or the
         use of such Licensed Product by any customer of any of the foregoing,
         infringes proprietary rights of a third party, the Company shall give
         written notice thereof to the Licensor. The Company may, in its sole
         discretion, modify such Licensed Product to avoid such infringement
         and/or may settle on terms that it deems advisable in its sole
         discretion, subject to paragraph 9.2. Otherwise, the Company shall have
         the right, but not the obligation, to defend any such claim or suit. In
         the event the Company elects not to defend such suit, the Licensor
         shall have the right, but not the obligation to do so at its

                                      12
<PAGE>

         sole expense.

9.4      Any recovery of damages by the Company, in any such suit, shall be
         applied first in satisfaction of any unreimbursed expenses and legal
         fees of the Company relating to the suit and then to the Licensor for
         any royalties credited in accordance with paragraph 9.5. The balance
         remaining from any such recovery shall be shared by the Licensor and
         the Company seventy percent (70%) to the Company and thirty percent
         (30%) to the Licensor.

9.5      The Company may credit up to fifty percent (50%) of any reasonable
         litigation costs incurred by the Company in any country pursuant to
         this Article 9 and up to 50% of all amounts paid in judgement or
         settlement of litigation within the scope of this Article 9 against
         royalties payable to the Licensor hereunder for such country and apply
         the same toward one-half of its actual, reasonable out-of-pocket
         litigation costs. If one-half of such litigation costs in such country
         exceeds 50% of royalties payable to the Licensor in any year in which
         such costs are incurred than the amount of such costs, expenses and
         amounts paid in judgement or settlement, in excess of 50% of the
         royalties payable to the Licensor shall be carried over and credited
         against royalty payments in future years for such country.

9.6      If within 90 days from receipt of notice by the Company of any alleged
         infringement, the Company shall have been unsuccessful in persuading
         the alleged infringer to desist, or shall not have brought and shall
         not be diligently prosecuting an infringement action, or if the Company
         shall notify the Licensor, at any time prior thereto, of its intention
         not to bring suit against the alleged infringer, then, and in those
         events only, the Licensor shall have the right, but not the obligation,
         to prosecute, at its own expense and utilizing counsel of its choice,
         any infringement of the Patent Rights, and the Licensor may, for such
         purposes, join the Company as a party plaintiff. The total cost of any
         such infringement action commenced solely by the Licensor shall be
         borne by the Licensor and the Licensor shall keep any recovery or
         damages for infringement or otherwise derived therefrom and such shall
         not be applicable to any royalty obligation of the Company.

9.7      In any suit to enforce and/or defend the Patent Rights pursuant to this
         License Agreement, the party not in control of such suit shall, at the
         request and expense of the controlling party, cooperate in all respects
         and, to the extent possible, have its employees testify when requested
         and make available relevant records, papers, information, samples,
         specimens, and the like.

ARTICLE 10 - LIMITATION OF LIABILITY, INDEMNITY
-----------------------------------------------

10.1     Other than as set forth in Article 2 hereof, the Licensor, by this
         License Agreement, makes no representations or warranties as to the
         validity and/or breadth of the inventions contained in the Patent
         Rights and the Company so acknowledges. Other than as set forth in
         Article 2, the Licensor, by this License Agreement makes no
         representations or warranties as to patents now held or which will be
         held by others in the field of the Licensed Products and/or Licensed
         Processes for a particular purpose.

                                      13
<PAGE>

10.2     Except as may be expressly provided herein, the licensor does not make,
         and expressly disclaims any warranties, either express or implied, oral
         or written, as to merchantability or fitness for a particular purpose.

10.3     The Company agrees to defend, indemnify and hold the Licensor harmless
         from and against all liability, demands, damages, including without
         limitation, expenses or losses including death, personal injury,
         illness or property damage (each a "Claim") arising directly or
         indirectly: (a) out of use by the Company or its transferees of
         inventions licensed or information furnished under this License
         Agreement or (b) out of any use, sale or other disposition by the
         Company or its transferees of Patent Rights, Licensed Products or
         Licensed Processes, except to the extent, in each such case, that such
         Claim results from or arises out of the Licensor's gross negligence,
         recklessness or willful misconduct. The Company agrees that any
         sublicense agreement it enters relative to the Licensed Products and/or
         Licensed Processes shall contain a covenant by such sublicensee
         providing for the indemnification of the Licensor as provided in this
         Article.

ARTICLE 11 - ASSIGNMENT
-----------------------

This Agreement and the rights and duties appertaining hereto may not be assigned
by either party without first obtaining the written consent of the other, which
consent shall not be unreasonably withheld. Any such purported assignment,
without the written consent of the other party, shall be null and of no effect.
Notwithstanding the foregoing, either party may assign this Agreement (a) to a
purchaser, merging or consolidating corporation, or acquiror of substantially
all of the party's assets or business and/or pursuant to any reorganization
qualifying under section 368 of the Internal Revenue Code of 1986 as amended, as
may be in effect at such time, or (b) to an Affiliate of the party subject to
the consent of the other party which consent shall not be unreasonably withheld.

ARTICLE 12 - PAYMENT OF FEES AND EXPENSES
-----------------------------------------

Each of the Company and the Licensor shall be responsible for their own expenses
relating to the preparation and consummation of this Agreement and the
agreements and transactions contemplated hereby.

ARTICLE 13 - USE OF NAMES AND PUBLICATION
-----------------------------------------

13.1     Nothing contained in this Agreement shall be construed as granting any
         right to the Company or its Affiliates to use in advertising,
         publicity, or other promotional activities any name, trade name,
         trademark, or other designation of the Licensor or any of its units
         (including contraction, abbreviation or simulation of any of the
         foregoing) without the prior, written consent of the Licensor;
         provided, however, that the Licensor acknowledges and agrees that the
         Company may use the name of the Licensor in various documents used by
         the Company for capital raising and financing without such prior
         written consent where the use of such names may be required by law. The
         Company agrees to promptly provide the Licensor with a

                                      14
<PAGE>

         copy of any documents used by the Company, which contain the name of
         the Licensor.

13.2     Nothing herein shall be deemed to establish a relationship of principal
         and agent between the Licensor and the Company, nor any of their agents
         or employees for any purpose whatsoever. This Agreement shall not be
         construed as creating a partnership between the Licensor and the
         Company, or as creating any other form of legal association or
         arrangement which would impose liability upon one party for the act or
         failure to act of the other party.

13.3     In the event that the Licensor desires to publish or disclose, by
         written, oral or other presentation, Know-how, Patent Rights, or any
         material information related thereto then the Licensor shall use its
         best efforts to notify the Company in writing by facsimile where
         confirmed by the receiving party, and/or by certified or registered
         mail (return receipt requested) of its intention at least 60 days prior
         to any speech, lecture or other oral presentation and at least 60 days
         before any written or other publication or disclosure. The Licensor
         shall include with such notice a description of any proposed oral
         presentation or, in any proposed written or other disclosure, a current
         draft of such proposed disclosure or abstract. The Company may request
         that the Licensor, no later than 30 days following the receipt of such
         notice, delay such presentation, publication or disclosure in order to
         enable the Company to file, or have filed on their behalf, a patent
         application, copyright or other appropriate form of intellectual
         property protection related to the information to be disclosed or
         request that the Licensor does so. Upon receipt of such request to
         delay such presentation, publication or disclosure, the Licensor shall
         arrange for a delay of presentation, publication or disclosure until
         the earlier to occur of (a) to 90 days and (b) such time as the Company
         or the Licensor has filed, or has had filed on its behalf, such patent
         application, copyright or other appropriate form of intellectual
         property protection in form and in substance reasonably satisfactory to
         the Company and the Licensor. If the Licensor does not receive any such
         request from the Company to delay such presentation, publication or
         disclosure, the Licensor may submit such material for presentation,
         publication or other form of disclosure.

ARTICLE 14 - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS
-------------------------------------------------------

Any notice or other communication required or permitted to be given pursuant to
this Agreement shall be in writing and sent by certified first class mail,
postage prepaid, by hand delivery or by facsimile if confirmed in writing, in
each case effective upon receipt, at the addresses below or as otherwise
designated by written notice given to the other party:

         In the case of the Licensor:
                  Alfa Wassermann S.p.A.
                  Via Ragazzi del '99 no. 5
                  40133 Bologna - Italy
                  Tel: 051/6489511
                  Fax: 051/387914
                  Attn.: General Management

                                      15
<PAGE>

         In the case of the Company:
                   Partec Ltd.
                   216 Jaffa Rd.
                   Sha'arei Ha'ir
                   Jerusalem, Israel 94383
                   Tel: 011-972-2-537-4997
                   Fax: 011-972-2-537-5098
                   Attn: _________________

Any payment shall be made by SWIFT.

ARTICLE 15 - CONFIDENTIALITY
----------------------------

15.1     Any proprietary or confidential information relating to the Invention
         (including but not limited to Know-how and patent prosecution documents
         relating to Patent Rights) collectively constitute the "Confidential
         Information." The Company and the Licensor agree that they will not use
         the Confidential Information for any purpose unrelated to this
         Agreement, and will hold it in confidence during the term of this
         Agreement and for a period of five years after the termination or
         expiration date of this Agreement. The Company and the Licensor shall
         exercise with respect to such Confidential Information the same degree
         of care as the Company and the Licensor exercise with respect to their
         own confidential or proprietary information of a similar nature, and
         shall not disclose it or permit its disclosure to any third party
         (except to those of its employees, consultants, or agents who are bound
         by the same obligation of confidentiality as the Company and Licensor
         are bound by pursuant to this Agreement). However, such undertaking of
         confidentiality by the Company or the Licensor shall not apply to any
         information or data which:

15.1.1   The receiving party receives at any time from a third party lawfully in
         possession of same and having the right to disclose same.

15.1.2   Is, as of the date of this Agreement, in the public domain, or
         subsequently enters the public domain through no fault of the receiving
         party.

15.1.3   Is independently developed by the receiving party as demonstrated by
         written evidence without reference to information disclosed to the
         receiving party.

15.1.4   Is disclosed pursuant to the prior written approval of the disclosing
         party.

15.1.5   Is required to be disclosed pursuant to law or legal process
         (including, without limitation, to a governmental authority) provided,
         in the case of disclosure pursuant to legal process, reasonable notice
         of the impending disclosure is provided to the disclosing party and
         disclosing party has agreed to such disclosure in writing or has
         exhausted its right to contest such disclosure.

                                      16
<PAGE>

ARTICLE 16 - MISCELLANEOUS PROVISIONS
-------------------------------------

16.1     This License Agreement shall be construed, governed, interpreted and
         applied in accordance with the laws of the Courts of London, England,
         without regard to principles of conflicts of laws.

16.2     Any and all proceedings, documents and other communications or
         correspondences shall be in the English language.

16.3     If this Agreement or any associated transaction is required by the law
         of any nation to be either approved or registered with any governmental
         agency, the Company shall assume all legal obligations to do so and the
         costs in connection therewith.

16.4     The Company shall observe all applicable United States and foreign laws
         with respect to the use, sale, manufacture and transfer of Licensed
         Products and related technical data to foreign countries, including,
         without limitation, the regulations of the Food and Drug Administration
         and its foreign equivalents, the International Traffic in Arms
         Regulations (ITAR), the Export Administration Regulations.

16.5     The parties hereto acknowledge that this Agreement, including the
         Appendices and documents incorporated by reference, sets forth the
         entire agreement and understanding of the parties hereto as to the
         subject matter hereof, and shall not be subject to any change of
         modification except by the execution of a written instrument subscribed
         to by the parties hereto.

16.6     The provisions of this License Agreement are severable, and in the
         event that any provision of this License Agreement shall be determined
         to be invalid or unenforceable under any controlling body of law, such
         invalidity or unenforceability shall not in any way affect the validity
         or enforceability of the remaining provisions hereof.

16.7     The failure of either party to assert a right hereunder or to insist
         upon compliance with any term or condition of this License Agreement
         shall not constitute a waiver of that right or excuse a similar
         subsequent failure to perform any such term or condition by the other
         party.

16.8     The headings of the several articles are inserted for convenience of
         reference only and are not intended to be a part of or to affect the
         meaning or interpretation of this Agreement.

16.9     This Agreement will not be binding upon the parties until it has been
         signed below on behalf of each party, in which event, it shall be
         effective as of the date recited on page one.

16.10    This Agreement embodies the entire understanding of the parties and
         shall supersede all previous communications, representations or
         understandings, either oral or written, between the parties relating to
         the subject matter hereof.

                                      17
<PAGE>

16.11    Each party hereto shall be excused from any breach of this Agreement
         which is proximately caused by governmental regulation, act of war,
         strike, act of God or other similar circumstance normally deemed
         outside the control of the parties.

IN WITNESS WHEREOF, the parties hereto have executed this License Agreement, in
triplicate by proper persons thereunto duly authorized.

COMPANY                                 LICENSOR

By: /s/ Morris Laster                   By: /s/ Andrea Golinelli
   --------------------------------        -------------------------------------
Name: Morris Laster MD                  Name: Andrea Golinelli

Title: CEO                              Title: General Manager

Date: November 15, 1998                 Date: November 12th, 1998

                                       18
<PAGE>

                                  SCHEDULE A
                           to the LICENSE AGREEMENT
                                    between
                             ALFA WASSERMANN S.p.a
                                      and
                                  PARTEC LTD

PATENTS
-------

with reference to paragraphs 1.2; 1.2.1; 1.2.2

1.    Licensor Reference    #S 59 -
      Title: "Heparin Derivatives and Process for Their Preparation"
      Inventors: S. Piani, G.F. Tamagnone, R.R. Alpino, M.R. Milani, M. Fantuz
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE    GRANT NO.    EXP. DATE

U.S.A.         05/26/89     357.548       04/23/91      5010063     05/25/09
Canada         06/09/89     602.338       10/27/92      1309402     10/27/09
Australia      05/24/89     35128/89      09/29/91      611.028     05/24/09
Japan          06/09/89     148211/89     01/11/96      2008236     06/09/09
New Zealand    05/22/89     229212        06/21/91      229.212     05/22/05
South Africa   05/23/89     89/3882       02/28/90      89/3882     05/23/09

2.    Licensor Reference #S 61 -
      Title: "Heparinic Derivatives and Process for Their Preparation"
      Inventors: S. Piani, G.F. Tamamgnone, R.R. Alpino, M.R. Milani, M. Fantuz
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.   GRANT DATE   GRANT NO.    EXP. DATE

U.S.A.         09/01/90     462462       04/14/92     5104860     01/09/10
Canada         01/11/90     2007616      05/14/96     2007616     01/11/10
Australia      01/29/90     4858/90      09/02/91     610034      01/29/10
Japan          01/29/90     20343/90     07/28/95     1956469     01/29/10
New Zealand    01/15/90     232115       09/26/91     232115      01/15/06
South Africa   01/15/90     90/0263      10/31/90     90/0263     01/15/10

                                       a
<PAGE>

3.    Licensor Reference #S 63 -
      Title: "Salts of GAGs With Esters of Aminoacids, Preparations thereof and
      Pharmaceuticals Formulations Containing Them"
      Inventors: M. Cristofori, E. Marchi, L.G. Rotini
      Owner: Alfa Wassermann S.p.A.

STATE   FILING DATE     FILING NO.    GRANT DATE     GRANT NO.     EXP DATE

Japan     11/12/91       295/839       08/22/96       2550452      11/12/11

4.    Licensor Reference #S 64 -
      Title: "Pharmaceutical Compositions Containing Orally Absorbable
      Glycosaminoglycans"
      Inventors: M. Cristofori E. Marchi, L.G. Rotin,
      Owner: Alfa Wassermann S.p.A.

STATE   FILING DATE     FILING NO.    GRANT DATE     GRANT NO.     EXP DATE

U.S.A.     01/15/92     821455          10/12/93      5252339      01/15/12
Canada     01/22/92     2059865                                    01/22/12
Japan      01/29/92     13943/1992      02/26/96      2025632      01/29/12

5.    Licensor Reference #S 68 -
      Title: "Use of Glycosaminoglycans in the Treatment of Diabetic Nephropathy
      and Diabetic Neuropathy"
      Inventors: E. Marchi and G.F. Tamagnone
      Owner: Alfa Wassermann S.p.A.

STATE   FILING DATE     FILING NO.    GRANT DATE     GRANT NO.     EXP DATE

U S.A      04/20/92       871.048       08/17/93      5236910      04/20/12
Canada     04/20/92       2066785                                  04/22/12

                                       b
<PAGE>

6.    Licensor Reference #S 70 -
      Title: "Semi-synthetic Glycosaminoglycans with Heparin or Heparan
      Structure of (alpha)-L-iduronic-2-O-sulfate acid Modified in Position 2"
      Inventors: S. Piani, E. Marchi and G.F. Tamagnone, F. Ungarelli
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE     GRANT NO.     EXP. DATE

U.S.A.          04/13/93     046.248       04/07/95     51430133      04/13/13
Canada          04/01/93     2093147                                  04/10/13
Australia       04/13/93     36895/93      08/01/95      658.498      04/13/13
Japan           04/16/93     89976/1993                               04/16/13
New Zealand     03/18/93     247.196       06/20/95      247.196      03/18/13
South Africa    03/12/93     93-1798       01/26/94      93-1798      03/12/13

7.    Licensor Reference #S 71 -
      Title "Semi-synthetic Glycosaminoglycans containing -L-galacturonic acid
      Substituted with Nucleophilic Groups in Position 3"
      Inventors: S. Piani, E. Marchi and G.F. Tamagnone, F. Ungarelli
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE     GRANT NO.     EXP. DATE

U.S.A.          04/13/93     046.247       04/07/95     5430132       04/13/13
Canada          04/01/93     2093148                                  04/10/13
Australia       04/13/93     36896/93      08/01/95     658.499       04/13/13
Japan           04/16/93     89977/1993                               04/16/13
New Zealand     03/18/93     247.197       06/20/95     247.197       03/18/13
South Africa    03/12/93     93-1799       02/23/94     93-1799       03/12/13

8.    Licensor Reference #S 74 -
      Title: "Process for Synthesis of Glycosaminoglycans with Heparin or
      Hepatran Structure Modified in Position 2 of the
      (alpha)-L-iduronic-20-sulfate acid"
      Inventors: F. Ungarelli and S. Piani
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE     GRANT NO.     EXP. DATE

U.S.A.          03/07/94     206.980       04/11/95     5405949       03/07/14
Canada          02/03/94     2114862                                  02/03/14
Australia       02/10/94     55085/94      03/23/96     664.939       02/10/14
Japan           03/29/94     59447/1994                               03/29/14
New Zealand     02/03/94     250.815       06/04/96     250.815       02/03/14
South Africa    02/11/94     94/0970       10/26/94     94/0970       02/11/14

                                       c
<PAGE>

9.    Licensor Reference #S 75 -
      Title: "Process for Synthesis of Glycosaminoglycans Containing
      (alpha)-L-galacturonic acid Substituted with Nucleophilic Groups in
      Position 3"
      Inventors: F. Ungarelli and S. Piani
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE     GRANT NO.     EXP. DATE

U.S.A.          03/07/94     207.140       04/25/95     5410039       03/07/14
Canada          02/03/94     2114863                                  02/03/14
Australia       02/10/94     55084/94      03/26/96     664.938       02/10/14
Japan           03/29/94     59448/1994                               03/29/14
New Zealand     02/03/94     250.816       06/04/96     250.816       02/03/14
South Africa    02/09/94     94/0892       01/26/94     94/0892       02/09/14

10.   Licensor Reference #S 78 -
      Title: "Method of Treatment Diabetic Neuropathy By Means of Sulodexide and
      of Medicines Containing it"
      Inventors: E. Marchi and G.F. Tamagnone
      Owner: Alfa Wassermann S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE     GRANT NO.     EXP. DATE

U.S.A.          4/14/94      227502        03/05/96     5496807       04/14/14
Canada          03/23/94     2120062                                  03/28/14
Japan           04/28/94     1713/1994                                04/28/14

11.   Licensor Reference #8 90 -
      Title: "Use of Sulodexide and of Medicines Containing it for the Treatment
      of Diabetic Retinopathy"
      Inventors: E. Palazzini and F. Rubbi
      Owner: Alfa Wasserman S.p.A.

STATE        FILING DATE   FILING NO.    GRANT DATE     GRANT NO.     EXP. DATE

Italy*          04/15/984    B098A         000239                     04/15/18

* In case of abroad territorial extension of this patent application and to
claim the priority rights, it will be necessary to carry out the extension
procedure prior to April 15, 1999.

COMPANY                                 LICENSOR

By: /s/ Morris Laster                   By: /s/ Andrea Golinelli
   --------------------------------        ------------------------------
Name: Morris Laster, MD                 Name: Andrea Golinelli

Title: CEO                              Title: General Manager

Date: November 15, 1998                 Date: November 12th, 1998

                                       d
<PAGE>

                                  SCHEDULE B
                           to the LICENSE AGREEMENT
                                    between
                             ALFA WASSERMANN S.p.a
                                      and
                                  PARTEC LTD

WITH REFERENCE TO ART. 2.4 HEREWITH ATTACHED THE LIST OF DOCUMENTATION.

COMPANY                                 LICENSOR

By: /s/ Morris Laster                   By: /s/ Andrea Golinelli
   --------------------------------        -------------------------------------
Name: Morris Laster MD                  Name: Andrea Golinelli

Title: CEO                              Title: General Manager

Date: November 15, 1998                 Date: November 12th, 1998

                                       i
<PAGE>

[CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR INFORMATION REDACTED FROM THIS
PAGE.]

                                  SCHEDULE C
                           to the LICENSE AGREEMENT
                                    between
                             ALFA WASSERMANN S.p.a
                                      and
                                  PARTEC LTD

PERFORMANCE MILESTONE PAYMENTS
------------------------------

The Company shall make the following payments (the "Milestone Payments") which
shall be creditable against or deductible from all payments due from the Company
to the Licensor earned pursuant to articles 4.2 and/or 4.3:

MILESTONE                                                         AMOUNT
---------                                                         ------

1.   Effective Date                                               $100,000

2.   Approval of the first Company sponsored
     Investigational New Drug Application ("IND")
     for a Licensed Product by the FDA                            $ ***

3.   Initiation of the first Company sponsored
     Phase III clinical trial for a Licensed Product              $ ***

4.   The first filing of a New Drug Application
     ("NDA") by the Company or a Sublicensee of
     the Company with the FDA (Schedule D)                        $ ***

5.   The first final approval by the FDA of an
     NDA for a Licensed Product (Schedule D)                        ***

COMPANY                                 LICENSOR

By: /s/ Morris Laster                   By: /s/ Andrea Golinelli
   --------------------------------        -------------------------------------
Name: Morris Laster MD                  Name: Andrea Golinelli

Title: CEO                              Title: General Manager

Date: November 15, 1998                 Date: November 12th, 1998

                                       i
<PAGE>

                                  SCHEDULE D
                           to the LICENSE AGREEMENT
                                    between
                             ALFA WASSERMANN S.p.a
                                      and
                                  PARTEC LTD

Payable in cash or equity at the discretion of the Company. The Company shall
only be entitled to make payments in equity if the Company is a publicly traded
company. Any equity payments payable hereunder shall be priced at the average
closing price of the common stock of the Company for the ten (10) consecutive
trading days immediately preceding the date of achievement of any such milestone
or the date upon which any such payment becomes due, whichever is earlier

COMPANY                                 LICENSOR

By: /s/ Morris Laster                   By: /s/ Andrea Golinelli
   --------------------------------        -------------------------------------
Name: Morris Laster, MD                 Name: Andrea Golinelli

Title: CEO                              Title: General Manager

Date: November 15, 1998                 Date: November 12th, 1998

                                       I

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