Document:

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                                                                 EXHIBIT 10.14

                                LICENSE AGREEMENT

                                 by and between

                         THE SCRIPPS RESEARCH INSTITUTE,
                             a California nonprofit
                           public benefit corporation

                                       and

                              DRUG ABUSE SCIENCES,
                            a California corporation

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                                TABLE OF CONTENTS

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                                                                                                               PAGE
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1.     Definitions................................................................................................1
       1.1      Affiliate.........................................................................................1
       1.2      Confidential Information..........................................................................2
       1.3      Field.............................................................................................2
       1.4      Licensed Product..................................................................................2
       1.5      Net Sales.........................................................................................2
       1.6      Scripps Patent Rights.............................................................................2
       1.7      Scripps Technology................................................................................3

2.     License Terms and Conditions...............................................................................3
       2.1      Grant of License..................................................................................3
       2.2      Initial License Fee...............................................................................3
       2.3      Milestone Issuances of Stock......................................................................3
       2.4      Royalties.........................................................................................3
                2.4.1    Percentage Royalty.......................................................................3
       2.5      Combination Products..............................................................................4
                2.5.1    Definition of Combination Product........................................................4
                2.5.2    Royalty Payable on Combination Products..................................................4
                2.5.3    Third Party Royalty......................................................................4
       2.6      Quarterly Payments................................................................................4
       2.7      Term of License...................................................................................5
       2.8      Sublicense........................................................................................5
       2.9      Duration of Royalty Obligations...................................................................5
       2.10     Reports...........................................................................................6
       2.11     Records...........................................................................................6
       2.12     Foreign Sales.....................................................................................6
       2.13     Foreign Taxes.....................................................................................6

3.     Patent Matters.............................................................................................6
       3.1      Patent Prosecution and Maintenance................................................................6
       3.2      Information to Licensee...........................................................................7
       3.3      Patent Costs......................................................................................7
       3.4      Ownership.........................................................................................7
       3.5      Scripps Right to Pursue Patent....................................................................7
       3.6      Infringement Actions..............................................................................8
                3.6.1    Prosecution and Defense of Infringements.................................................8
                3.6.2    Allocation of Recovery...................................................................8

4.     Obligations Related to Commercialization...................................................................8
       4.1      Commercial Development Obligation.................................................................8
       4.2      Governmental Approvals and Marketing of Licensed Products.........................................9

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       4.3      Indemnity.........................................................................................9
       4.4      Patent Marking....................................................................................9
       4.5      No Use of Name....................................................................................9
       4.6      U.S. Manufacture..................................................................................9
       4.7      Foreign Registration.............................................................................10

5.     Limited Warranty..........................................................................................10

6.     Interests in Intellectual Property Rights.................................................................10
       6.1      Preservation of Title............................................................................10
       6.2      Royalty-free License to Improvements.............................................................10
       6.3      Governmental Interest............................................................................10
       6.4      Reservation of Rights............................................................................10

7.     Confidentiality and Publication...........................................................................11
       7.1      Treatment of Confidential Information............................................................11
       7.2      Publications.....................................................................................11
       7.3      Publicity........................................................................................11

8.     Term and Termination......................................................................................11
       8.1      Term.............................................................................................11
       8.2      Termination Upon Default.........................................................................11
       8.3      Termination Upon Bankruptcy or Insolvency........................................................12
       8.4      Rights Upon Expiration...........................................................................12
       8.5      Rights Upon Termination..........................................................................12
       8.6      Work-in-Progress.................................................................................12

9.     Assignment; Successors....................................................................................12
       9.1      Assignment.......................................................................................12
       9.2      Binding Upon Successors and Assigns..............................................................13

10.    General Provisions........................................................................................13
       10.1     Independent Contractors..........................................................................13
       10.2     Arbitration......................................................................................13
                10.2.1   Location................................................................................13
                10.2.2   Selection of Arbitrators................................................................13
                10.2.3   Discovery...............................................................................13
                10.2.4   Case Management.........................................................................13
                10.2.5.  Remedies................................................................................14
                10.2.6   Expenses................................................................................14
                10.2.7   Confidentiality.........................................................................14
       10.3     Entire Agreement; Modification...................................................................14
       10.4     California Law...................................................................................14
       10.5     Headings.........................................................................................14
       10.6     Severability.....................................................................................14
       10.7     No Waiver........................................................................................15
       10.8     Name.............................................................................................15

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       10.9     Attorneys'Fees...................................................................................15
       10.10    Notices..........................................................................................15
       10.11    Compliance with U.S. Laws........................................................................15
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          CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED
          AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
          HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                LICENSE AGREEMENT

                  This License Agreement is entered into and made effective
as of this 18th day of June, 1996, by and between THE SCRIPPS RESEARCH
INSTITUTE, nonprofit public benefit corporation ("Scripps") located at 10550
North Torrey Pines Road, La Jolla, California 92037, and Drug Abuse Sciences,
a California corporation ("Licensee") located at 3 O'Dell Place, Atherton,
California 94027, with respect to the facts set forth below.

                                    RECITALS

                  A.       Scripps is engaged in fundamental scientific
biomedical and biochemical research including research relating to
Cocaine-Specific Monoclonal Antibodies: Hapten Design, Synthesis and
Immunization.

                  B.       Licensee is engaged in research and development of
therapeutics and diagnostics for cocaine addiction.

                  C.       Scripps has disclosed to Licensee certain technology
described in TSRI Technology Disclosure #92-05 entitled "Cocaine-Specific
Monoclonal Antibodies: Hapten Design, Synthesis and Immunization," as shell as
the Scripps patent application entitled "Anti-Cocaine Vaccine" (Scripps #507.0),
copies of which are attached hereto as Exhibit A and incorporated herein by
reference (collectively, the "Technology Disclosure").

                  D.       Scripps has the exclusive right to grant a license to
the technology described in the Technology Disclosure, subject to certain rights
of the U.S. Government to use such technology for its own purposes, resulting
from the receipt by Scripps of certain funding from the U.S. Government.

                  E.       Scripps desires to grant to Licensee, and Licensee
wishes to acquire, an exclusive worldwide right and license to the technology
described in the Technology Disclosure and to certain patent rights and know-how
of Scripps with respect thereto, subject to the terms and conditions set forth
herein, with a view to developing and marketing diagnostic and/or therapeutic
products within the Field (as defined below).

                                    AGREEMENT

                  NOW, THEREFORE, in consideration of the mutual covenants and
conditions set forth herein, Scripps and Licensee hereby agree as follows:

                  1.       DEFINITIONS.  Capitalized terms shall have the
meaning set forth below.

                           1.1      AFFILIATE.  The term "Affiliate" shall mean
any entity which directly or indirectly controls, is controlled by or is under
common control with Licensee. The term "control" as used herein means the
possession of the power to direct or cause the direction of the management and
the policies of an entity, whether through the ownership of a majority of the
outstanding voting securities or by contract or otherwise.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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                           1.2      CONFIDENTIAL INFORMATION.  The term
"Confidential Information" shall mean any and all proprietary or confidential
information of Scripps or Licensee which may be exchanged between the parties at
any time and from time to time during the term of this Agreement. Information
shall not be considered confidential to the extent that it:

                                    a.      Is publicly disclosed through no
fault of any party hereto, either before or after it becomes known to the
receiving party; or

                                    b.      Was known to the receiving party
prior to the date of this Agreement, which knowledge was acquired independently
and not from another party hereto (or such party's employees); or

                                    c.      Is subsequently disclosed to the
receiving party in good faith by a third party who has a right to make such
disclosure; or

                                    d. Has been published by a third party as a
matter of right.

                           1.3      FIELD.  The term "Field" shall mean the
field of the diagnosis and treatment of cocaine addiction and shall specifically
exclude any agricultural applications or products.

                           1.4      LICENSED PRODUCT.  The term
"Licensed Product" shall mean any product which cannot be developed,
manufactured, used or sold without (i) infringing one or more claims under
Scripps Patent Rights or (ii) utilizing any part of Scripps Technology not
otherwise includable within Scripps Patent Rights.

                           1.5      NET SALES.  The term "Net Sales" shall mean
the gross amount invoiced by Licensee, or its Affiliates and sublicensees, or
any of them, on all sales of Licensed Products, less (i) discounts actually
allowed, (ii) credits for claims, allowances, retroactive price reductions or
returned goods, (iii) prepaid freight and (iv) sales taxes or other governmental
charges actually paid in connection with sales of Licensed Products (but
excluding what is commonly known as income taxes). For purposes of determining
Net Sales, a sale shall be deemed to have occurred when an invoice therefor
shall be generated or the Licensed Product shipped for delivery. Sales of
Licensed Products by Licensee, or an Affiliate or sublicensee of Licensee to any
Affiliate or sublicensee which is a reseller thereof shall be excluded, and only
the subsequent sale of such Licensed Products by Affiliates or sublicensees of
Licensee to unrelated parties shall be deemed Net Sales hereunder.

                           1.6      SCRIPPS PATENT RIGHTS.  The "Scripps Patent
Rights" shall mean rights arising out of or resulting from (i) any and all U.S.
and foreign patent applications and patents covering Scripps Technology, (ii)
the patents proceeding from such applications, (iii) all claims of
continuations-in-part directed solely to subject matter specifically described
in the Technology Disclosure, and (iv) divisionals, continuations, reissues,
reexaminations, and extensions of any patent or application set forth in
(i)-(iii) above, so long as said patents have not been held invalid and/or
unenforceable by a court of competent jurisdiction from which there is no appeal
or, if appealable, from which no appeal has been taken.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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                           1.7      SCRIPPS TECHNOLOGY.  The term "Scripps
Technology" shall mean so much of the technology as is proprietary to Scripps
disclosed in the Technology Disclosure, together with materials, information and
know-how related thereto whether or not the same is eligible for protection
under the patent laws of the United States or elsewhere, and whether or not any
such processes and technology, or information related thereto, would be
enforceable as a trade secret or the copying of which would be enjoined or
restrained by a court as constituting unfair competition.

                  2.       LICENSE TERMS AND CONDITIONS.

                           2.1      GRANT OF LICENSE. Scripps hereby grants
to Licensee an exclusive, worldwide license, including the right to
sublicense, to Scripps Technology and under Scripps Patent Rights, to make,
to have made, to use, and to sell Licensed Products in the Field, subject to
the terms of this Agreement.

                           2.2      INITIAL LICENSE FEE.  In partial
consideration for the exclusive license granted pursuant to Section 2.1 hereof,
Licensee shall pay to Scripps a nonrefundable license fee upon execution of this
Agreement in the amount of [***]. In addition, pursuant to a Common Stock
Purchase Agreement in substantially the form attached hereto as Exhibit B and
incorporated herein by this reference (a "Common Stock Purchase Agreement"),
promptly after the effective date hereof, Licensee shall issue to Scripps
(subject to the terms and conditions of the Common Stock Purchase Agreement and
conditioned upon such issuance being exempt from any federal or state securities
registration requirements) 110,765 shares of Licensee's Nonvoting Common Stock
(the "Shares"). The license fee described in this Section is consideration for
the grant and continuation of the license hereunder, and Scripps shall have no
obligation to return any portion of such license fee, notwithstanding any
failure by Licensee to develop any Licensed Product or market any Licensed
Product commercially, and notwithstanding the volume of sales of any such
Licensed Product.

                           2.3      MILESTONE ISSUANCES OF STOCK.  Pursuant to a
Common Stock Purchase Agreement in substantially the form attached hereto as
Exhibit B, and in addition to the other consideration set forth in this Article
2 for the exclusive license granted pursuant to Section 2.1 hereof, Licensee
shall issue to Scripps (subject to the terms and conditions of the Common Stock
Purchase Agreement and conditioned such issuance being exempt from any federal
or state securities registration requirements) shares of Licensee's Nonvoting
Common Stock (or, if any such issuance shall occur after the closing of an
initial public offering of Licensee's Common Stock pursuant to a Registration
Statement filed under the Securities Act of 1933, shares of such Common Stock)
as follows: (i) 166,148 shares upon the filing of an investigational new drug
application ("IND") for an efficacy clinical trial sponsored by Licensee or its
Sublicensee with the U.S. Food and Drug Administration in respect of a Licensed
Product and (ii) 166,148 shares upon demonstration of human clinical efficacy
for a primary end point in a Phase clinical trial sponsored by Licensee or its
Sublicensee in respect of a Licensed Product.

                           2.4      ROYALTIES.

                                    2.4.1   PERCENTAGE ROYALTY.  As additional
consideration for the exclusive license granted pursuant to Section 2.1 hereof,
Licensee shall pay to Scripps a [***] on

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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a country-by-country basis in the amount of (i) [***] which cannot be made,
used or sold in such country without utilizing one or more valid claims under
Scripps Patent Rights and (ii) [***].

                           2.5      COMBINATION PRODUCTS.

                                    2.5.1   DEFINITION OF COMBINATION PRODUCT.
As used herein, the term "Combination Product" shall mean a Licensed Product
which cannot be manufactured, used or sold without infringing Scripps Patent
Rights, utilizing Scripps Technology licensed hereunder, infringing or utilizing
one or more patents or proprietary technology or know-how of (i) Licensee, (ii)
a third party licensed pursuant to an agreement between Licensee and such third
party, or (iii) Scripps under a license agreement other than this Agreement
(referred to herein as "other licensed rights").

                                    2.5.2   ROYALTY PAYABLE ON COMBINATION
PRODUCTS. The royalty payable on Combination Products shall be the royalty rate
set forth in Section 2.2.1 above based on a pro rata portion of Net Sales of
Combination Products in accordance with the following formula:

                                          A
                                    X =   -
                                          B, where

                                    X = the pro rata portion of Net Sales
                           attributable to Scripps Patent Rights or other
                           Scripps Technology licensed herein (expressed as a
                           percentage), and

                                    A = the fair market value of the component
                           in the Combination Product utilizing Scripps
                           Technology licensed hereunder, and

                                    B = A plus the fair market value of all
                           other components in the Combination Product using
                           other licensed rights.

                                    2.5.3   THIRD PARTY ROYALTY.  In the event
that Licensee is required to pay a third party a royalty in order to enjoy the
benefits of its license under this Agreement, the parties shall negotiate a
reasonable deduction in the royalties owed under Section 2.4 to offset the third
party royalty, but in no event shall the deduction be greater than [***] of the
applicable royalty set forth in Section 2.4.

The fair market values described above shall be determined by the parties hereto
in good faith. In the absence of agreement as to the fair market value of all of
the components contained in a Combination Product, the fair market value of each
component shall be determined by arbitration in accordance with the provisions
of Section 10.2 hereof.

                           2.6      QUARTERLY PAYMENTS.

                                    2.6.1   SALES BY LICENSEE.  With regard to
Net Sales made by Licensee or its Affiliates, royalties shall be payable by
Licensee [***], based upon the Net Sales

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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of Licensed Products during such preceding calendar quarter, commencing with
the calendar quarter in which the first commercial sale of any Licensed
Product is made.

                                    2.6.2   SALES BY SUBLICENSEES.  With regard
to Net Sales made by sublicensees of Licensee or its Affiliates, royalties shall
be payable by Licensee quarterly, within ninety (90) days after the end of each
calendar quarter, based upon the Net Sales of Licensed Products by such
sublicensee during such preceding calendar quarter, commencing with the calendar
quarter in which the first commercial sale of any Licensed Product is made by
such sublicensee.

                           2.7      TERM OF LICENSE.  Unless terminated sooner
in accordance with the provisions of this Agreement, the term of this license
shall expire when the last of the royalty obligations set forth has expired.
Notwithstanding the foregoing, if applicable government regulations require a
shorter term and/or a shorter term of exclusivity than provided for herein, then
the term of this License Agreement shall be so shortened or this License
Agreement shall be amended to provide for a non-exclusive license, and, in such
event, the parties shall negotiate in good faith to reduce appropriately the
royalties payable as set forth under the section heading "Royalties" hereof.

                           2.8      SUBLICENSE.  Licensee shall have the sole
and exclusive right to grant sublicenses to any party with respect to the rights
conferred upon Licensee under this Agreement, provided, however, that (i) any
such sublicense shall be subject in all respects to the restrictions,
exceptions, royalty obligations, reports, termination provisions, and other
provisions contained in this Agreement (but not including the payment of a
license fee pursuant to Section 2.2 hereof) and (ii) each such sublicensee, and
the form and substance of each such sublicense, shall be subject to the prior
written approval of Scripps, which approval shall not be unreasonably withheld,
provided, however, that any sublicense granted to an Affiliate of Licensee shall
not be subject to Scripps's prior written approval. No approval shall be
required as to any sublicense which utilizes the form of sublicense attached
hereto as Exhibit C. Licensee shall pay Scripps, or cause its Affiliate or
sublicensee to pay Scripps, the same royalties on all Net Sales of such
Affiliate or sublicensee the same as if said Net Sales had been made by
Licensee. Each Affiliate and sublicensee shall report its Net Sales to Scripps
through Licensee, which Net Sales shall be aggregated with any Net Sales of
Licensee for purposes of determining the Net Sales upon which royalties are to
be paid to Scripps.

                  Except as set forth below, any revenues, other than royalties,
due Licensee pursuant to the grant of a sublicense to a party not an Affiliate
shall be reported to Scripps by Licensee. Licensee shall pay to Scripps [***] of
any such revenue, where such license is a bare patent license. As to all fees
other than for a bare patent license, the amount paid Scripps shall be
negotiated, based on the respective contributions of the parties. In no event
shall reasonable fees for performing research by Licensee be included in any
determination of the revenues to be due Scripps.

                           2.9      DURATION OF ROYALTY OBLIGATIONS.  The
royalty obligations of Licensee as to each Licensed Product shall terminate on a
[***] utilized by or in such Licensed Product in each such country or, with
respect to Licensed Products not utilizing any Scripps Patent Rights, the [***].

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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                           2.10     REPORTS.  Licensee shall furnish to Scripps
at the same time as each royalty payment is made by Licensee, a detailed written
report of Net Sales of the Licensed Products and the royalty due and payable
thereon, including a description of any offsets or credits deducted therefrom,
on a product-by-product and country-by-country basis, for the calendar quarter
upon which the royalty payment is based.

                           2.11     RECORDS.  Licensee shall keep, and cause its
Affiliates and sublicensees to keep, full, complete and proper records and
accounts of all sales of Licensed Products in sufficient detail to enable the
royalties payable on Net Sales of each Licensed Product to be determined.
Scripps shall have the right to appoint an independent certified public
accounting firm approved by Licensee, which approval shall not be unreasonably
withheld, to audit the records of Licensee, its Affiliates and sublicensees as
necessary to verify the royalties payable pursuant to this Agreement. Licensee,
its Affiliates and sublicensees shall pay to Scripps an amount equal to any
additional royalties to which Scripps is entitled as disclosed by the audit,
[***]. Such audit shall be at Scripps's expense; provided however, that if the
audit discloses that Scripps was underpaid royalties with respect to any
Licensed Product by [***] for any calendar quarter, then Licensee, its
Affiliates or sublicensee, as the case may be shall reimburse Scripps for any
such audit costs. Scripps may exercise its right of audit as to each of
Licensee, its Affiliates or sublicensees no more frequently than once in any
calendar year. The accounting firm shall disclose to Scripps only information
relating to the accuracy of the royalty payments. Licensee, its Affiliates and
sublicensees shall preserve and maintain all such records required for audit for
a period of three (3) years after the calendar quarter to which the record
applies.

                           2.12     FOREIGN SALES.  The remittance of royalties
payable on sales outside the United States shall be payable to Scripps in United
States Dollar equivalents at the official rate of exchange of the currency of
the country from which the royalties are payable, as quoted in the Wall Street
Journal for the last business day of the calendar quarter in which the royalties
are payable. If the transfer of or the conversion into the United States Dollar
equivalents of any such remittance in any such instance is not lawful or
possible, the payment of such part of the royalties as is necessary shall be
made by the deposit thereof, in the currency of the county where the sale was
made on which the royalty was based to the credit and account of Scripps or its
nominee in any commercial bank or trust company of Scripps's choice located in
that country, prompt written notice of which shall be given by Licensee to
Scripps.

                           2.13     FOREIGN TAXES.  Any tax required to be
withheld by Licensee under the laws of any foreign country for the accounts of
Scripps shall be promptly paid by Licensee for and on behalf of Scripps to the
appropriate governmental authority, and Licensee shall use its best efforts to
furnish Scripps with proof of payment of such tax together with official or
other appropriate evidence issued by the applicable government authority. Any
such tax actually paid on Scripps's behalf shall be deducted from royalty
payments due Scripps.

                     3.    PATENT MATTERS.

                           3.1      PATENT PROSECUTION AND MAINTENANCE.  From
and after the date of this Agreement, the provisions of this Section 3 shall
control the prosecution and maintenance of any patent included within Scripps
Patent Rights. Subject to the requirements, limitations and

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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conditions set forth in this Agreement, Scripps shall direct and control (i)
the preparation, filing and prosecution of the United States and foreign
patent applications within Scripps Patent Rights (including any interferences
and foreign oppositions), except that Licensee shall not be liable for
expenses related to foreign patent applications, which foreign patent
applications have not received Licensee's approval for filing and continued
prosecution, and (ii) maintain the patents issuing therefrom. Scripps shall
select the patent attorney, subject to Licensee's written approval, which
approval shall not be unreasonably withheld. Both parties hereto agree that
Scripps may, at its sole discretion, utilize Scripps Office of Patent Counsel
in lieu of outside counsel for patent prosecution and maintenance described
herein, and the fees and expenses incurred by Scripps with respect to work
done by such Office of Patent Counsel shall be paid as set forth below.
Licensee shall have full rights of consultation with the patent attorney so
selected on all matters relating to Scripps Patent Rights. Scripps shall use
its best efforts to implement all reasonable requests made by Licensee with
regard to the preparation, filing, prosecution and/or maintenance of the
patent applications and/or patents within Scripps Patent Rights.

                           3.2      INFORMATION TO LICENSEE.  Scripps shall
keep Licensee informed with regard to the patent application and maintenance
processes. Scripps shall deliver to Licensee copies of all patent
applications, amendments, related correspondence, and other related matters.

                           3.3      PATENT COSTS.  Licensee acknowledges and
agrees that Scripps does not have independent funding to cover patent costs,
and that the license granted hereunder is in part in consideration for
Licensee's assumption of patent costs and expenses as described herein.
Licensee shall pay for all expenses incurred by Scripps pursuant to Section
3.1 hereof. In addition, Licensee agrees to reimburse Scripps for all patent
costs and expenses paid or incurred by Scripps to date in connection with
Scripps Patent Rights licensed hereunder. Licensee agrees to pay all such
past and future patent expenses directly or to reimburse Scripps for the
payment of such expenses within sixty (60) days after Licensee receives an
itemized invoice therefor. In the event Licensee elects to discontinue
payment for the filing, prosecution and/or maintenance of any patent
application and/or patent within Scripps Patent Rights, any such patent
application or patent shall be excluded from the definition of Scripps Patent
Rights and from the scope of the license granted under this Agreement, and
all rights relating thereto shall revert to Scripps and may be freely
licensed by Scripps. Licensee shall give Scripps at least sixty (60) days'
prior written notice of such election. No such notice shall have any effect
on Licensee's obligations to pay expenses incurred up to the effective date
of such election.

                           3.4      OWNERSHIP.  The patent applications filed
and the patents obtained by Scripps pursuant to Section 3.1 hereof shall be
owned solely by Scripps, assigned to Scripps and deemed a part of Scripps
Patent Rights.

                           3.5      SCRIPPS RIGHT TO PURSUE PATENT.  If at
any time during the term of this Agreement, Licensee's rights with respect to
Scripps Patent Rights are terminated, Scripps shall have the right to take
whatever action Scripps deems appropriate to obtain or maintain the
corresponding patent protection at its own expense. If Scripps pursues
patents under this Section 3.5, Licensee agrees to entertain any request by
Scripps to cooperate in the prosecution

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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of such patents, including by providing, at no charge to Scripps, all
appropriate technical data and executing all necessary legal documents.

                             3.6    INFRINGEMENT ACTIONS.

                                    3.6.1 PROSECUTION AND DEFENSE OF
INFRINGEMENTS. Except as provided herein, in order to maintain the license
granted hereunder in force, Licensee shall prosecute any and all
infringements of any Scripps Patent Rights and shall defend all charges of
infringement arising as a result of the exercise of Scripps Patent Rights by
Licensee, its Affiliates or sublicensees, unless otherwise agreed to between
Scripps and Licensee and Licensee shall hold Scripps harmless from any costs
or expenses of liability respecting all such infringements. Licensee may
enter into settlements, stipulated judgments or other arrangements respecting
such infringement, at its own expense, but only with the prior written
consent of Scripps, which consent shall not be unreasonably withheld. Scripps
shall permit any action to be brought in its name if required by law. Scripps
agrees to provide reasonable assistance of a technical nature which Licensee
may require in any litigation arising in accordance with the provisions of
this Section 3.6.1, for which Licensee shall pay to Scripps a reasonable
hourly rate of compensation. In the event Licensee fails to prosecute any
such infringement, Licensee shall notify Scripps in writing promptly and
Scripps shall have the right to prosecute such infringement on its own
behalf. Failure on the part of Licensee to prosecute any such infringement
shall be grounds for termination of the license granted to Licensee hereunder
(but solely with respect to the patent at issue, which, with respect to the
country in which such infringement occurs, shall thereafter be excluded from
the definition of Scripps Patent Rights) at the option of Scripps, unless
Licensee shall have established to Scripps reasonable satisfaction that such
prosecution would be unwarranted or unreasonable in view of the likelihood of
success, the costs of prosecution, the amount of any anticipated recovery, or
the economic impact of the infringement.

                                    3.6.2   ALLOCATION OF RECOVERY.  Any
damages or other recovery from an infringement action undertaken by Licensee
pursuant to Section 3.6.1 shall first be used to reimburse the parties for
the costs and expenses incurred in such action, and shall thereafter be
allocated between the parties as follows: [***]. If Licensee fails to
prosecute any such action to completion, then any damages or other recovery
net of the parties' costs and expenses incurred in such infringement action
shall be the sole property of Scripps.

                     4.    OBLIGATIONS RELATED TO COMMERCIALIZATION.

                           4.1      COMMERCIAL DEVELOPMENT OBLIGATION.  In
order to maintain the license granted hereunder in force, Licensee shall use
reasonable efforts and due diligence to develop Scripps Technology and
Scripps Patent Rights which are licensed hereunder into commercially viable
Licensed Products, as promptly as is reasonably and commercially feasible,
and thereafter to produce and sell reasonable quantities of Licensed
Products. Licensee shall keep Scripps generally informed as to Licensee's
progress in such development, production and sale, including its efforts, if
any, to sublicense Scripps Technology and Scripps Patent Rights, and Licensee
shall deliver to Scripps an annual written report and such other reports as
Scripps may reasonably request. The parties hereto acknowledge and agree to
negotiate milestones on an annual basis, beginning with the effective date of
this Agreement, for the proceeding year, and said milestones shall be
incorporated into this Agreement as Exhibit D; however, in this regard,

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       8

<PAGE>

Scripps hereby acknowledges that Licensee is an early-stage technology
company and Scripps Technology is in an early stage of development and that
milestones will be established accordingly. The achievement of the milestones
described in Exhibit D attached hereto on or before the dates set forth
therein shall be evidence of compliance by Licensee with its commercial
development obligations hereunder for the time periods specified in Exhibit
D. In the event Scripps has a reasonable basis to believe that Licensee is
not using reasonable efforts and due diligence as required hereunder, upon
notice by Scripps to Licensee which specifies the basis for such belief,
Scripps and Licensee shall negotiate in good faith to attempt to mutually
resolve the issue. In the event Scripps and Licensee cannot agree upon any
matter related to Licensee's commercial development obligations, the parties
agree to utilize arbitration pursuant to Section 10.2 hereof in order to
resolve the matter. If the arbitrator determines that Licensee has not
complied with its obligations hereunder, and such default is not fully cured
within sixty (60) days after the arbitrator's decision, Scripps may terminate
Licensee's rights under this Agreement.

                           4.2      GOVERNMENTAL APPROVALS AND MARKETING OF
LICENSED PRODUCTS. Licensee shall be responsible for obtaining all necessary
governmental approvals for the development, production, distribution, sale
and use of any Licensed Product, at Licensee's expense, including, without
limitation, any safety studies. Licensee shall have sole responsibility for
any warning labels, packaging and instructions as to the use of Licensed
Products and for the quality control for any Licensed Product.

                           4.3      INDEMNITY.  Licensee hereby agrees to
indemnify, defend and hold harmless Scripps and any parent, subsidiary or
other affiliated entity and their trustees, officers, employees, scientists
and agents from and against any liability or expense arising from any product
liability claim asserted by any party as to any Licensed Product or any
claims arising from the use of any Scripps Patent Rights or Scripps
Technology pursuant to this Agreement. Such indemnity and defense obligation
shall apply to any product liability or other claims, including without
limitation, personal injury, death or property damage, made by employees,
subcontractors, sublicensees, or agents of Licensee, as well as any member of
the general public. Licensee shall use its best efforts to have Scripps and
any parent, subsidiary or other affiliated entity and their trustees,
officers, employees, scientists and agents named as additional insured
parties on any product liability insurance policies maintained by Licensee,
its Affiliates and sublicensees applicable to Licensed Products.

                           4.4      PATENT MARKING.  To the extent required
by applicable law, Licensee shall mark all Licensed Products or their
containers in accordance with the applicable patent marking laws.

                           4.5      NO USE OF NAME.  The use of the name "The
Scripps Research Institute", "Scripps", or any variation thereof in
connection with the advertising or sale of Licensed Products is expressly
prohibited.

                           4.6      U.S. MANUFACTURE.  To the extent required
by applicable United States laws, if at all, Licensee agrees that Licensed
Products will be manufactured in the United States, or its territories,
subject to such waivers as may be required, or obtained, if at all, from the
United States Department of Health and Human Services, or its designee.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                        9

<PAGE>

                           4.7      FOREIGN REGISTRATION.  Licensee agrees to
register this Agreement with any foreign governmental agency which requires
such registration, and Licensee shall pay all costs and legal fees in
connection therewith. In addition, Licensee shall assure that all foreign
laws affecting this Agreement or the sale of Licensed Products are fully
satisfied.

                   5.      LIMITED WARRANTY. Scripps hereby represents and
warrants that it has full right and power to enter into this Agreement.
SCRIPPS MAKES NO OTHER WARRANTIES CONCERNING SCRIPPS PATENT RIGHTS OR SCRIPPS
TECHNOLOGY COVERED BY THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, ANY
EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE AS TO SCRIPPS PATENT RIGHTS, SCRIPPS TECHNOLOGY OR ANY LICENSED
PRODUCT. SCRIPPS MAKES NO WARRANTY OR REPRESENTATION AS TO THE VALIDITY OR
SCOPE OF SCRIPPS PATENT RIGHTS, OR THAT ANY LICENSED PRODUCT WILL BE FREE
FROM AN INFRINGEMENT ON PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS OF
THIRD PARTIES, OR THAT NO THIRD PARTIES ARE IN ANY WAY INFRINGING SCRIPPS
PATENT RIGHTS OR SCRIPPS TECHNOLOGY COVERED BY THIS AGREEMENT.

                   6.      INTERESTS IN INTELLECTUAL PROPERTY RIGHTS.

                           6.1      PRESERVATION OF TITLE.  Scripps shall
retain full ownership and title to Scripps Technology, and Scripps Patent
Rights licensed hereunder and shall use its reasonable best efforts to
preserve and maintain such full ownership and title, subject to Licensee
fully performing all of its obligations under this Agreement.

                           6.2      ROYALTY-FREE LICENSE TO IMPROVEMENTS.
Licensee hereby grants to Scripps a non-exclusive, royalty-free license to
any improvement to Scripps Technology developed by Licensee, to use for its
own non-commercial research purposes or grant to other nonprofit institutions
for their non-commercial research purposes, it being understood that Licensee
has no duty to disclose to Scripps any such improvements and in the event of
an inadvertent disclosure, such disclosure shall be governed by the
restrictions as set forth in Section 7.1 Treatment of Confidential
Information.

                           6.3      GOVERNMENTAL INTEREST.  Licensee and
Scripps acknowledge that Scripps has received, and expects to continue to
receive, funding from the United States Government in support of Scripps's
research activities. Licensee and Scripps acknowledge and agree that their
respective rights and obligations pursuant to this Agreement shall be subject
to Scripps's obligations and the rights of the United States Government, if
any, which arise or result from Scripps's receipt of research support from
the United States Government, including without limitation, the grant by
Scripps to the United States a non-exclusive, irrevocable, royalty-free
license to Scripps Technology and Scripps Patent Rights licensed hereunder
for governmental purposes.

                           6.4      RESERVATION OF RIGHTS.  Scripps reserves
the right to use for any non-commercial research purposes and the right to
allow other nonprofit institutions to use for any non-commercial research
purposes any Scripps Technology and Scripps Patent Rights

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       10

<PAGE>

licensed hereunder, without Scripps or such other institutions being
obligated to pay Licensee any royalties or other compensation.

                    7.     CONFIDENTIALITY AND PUBLICATION.

                           7.1      TREATMENT OF CONFIDENTIAL INFORMATION.
The parties agree that during the term of this Agreement, and for a period of
three (3) years after this Agreement terminates, a party receiving
Confidential Information of the other party will (i) maintain in confidence
such Confidential Information to the same extent such party maintains its own
proprietary industrial information, (ii) not disclose such Confidential
Information to any third party without prior written consent of the other
party and (iii) not use such Confidential Information for any purpose except
those permitted by this Agreement.

                           7.2      PUBLICATIONS.  Licensee agrees that
Scripps shall have a right to publish in accordance with its general
policies, subject to the confidential commitments of Section 7.1 Treatment of
Confidential Information, which shall not be overridden by this Section.

                           7.3      PUBLICITY.  Except as otherwise provided
herein or required by law, no party shall originate any publication, news
release or other public announcement, written or oral, whether in the public
press, stockholders' reports, or otherwise, relating to this Agreement or to
any sublicense hereunder, or to the performance hereunder or any such
agreements, without the prior written approval of the other party, which
approval shall not be unreasonably withheld. Scientific publications
published in accordance with Section 7.2 of this Agreement shall not be
construed as publicity governed by this Section 7.3.

                    8.     TERM AND TERMINATION.

                           8.1 TERM. Unless terminated sooner in accordance
with the terms set forth herein, this Agreement, and the license granted
hereunder, shall terminate as provided in Section 2.6 hereof.

                           8.2      TERMINATION UPON DEFAULT.  Any one or
more of the following events shall constitute an event of default hereunder:
(i) the failure of a party to pay any amounts when due hereunder and the
expiration of [***] after receipt of a written notice requesting the payment
of such amount; (ii) the failure of a party to perform any obligation
required of its to be performed hereunder, and the failure to cure within
[***] after receipt of notice from the other party specifying in reasonable
detail the nature of such default; Upon the occurrence of any event of
default, the non-defaulting party may deliver to the defaulting party written
notice of intent to terminate, such termination to be effective upon the date
set forth in such notice.

                  Such termination rights shall be in addition to and not in
substitution for any other remedies that may be available to the
non-defaulting party. Termination pursuant to this Section 8.2 shall not
relieve the defaulting party from liability and damages to the other party
for breach of this Agreement. Waiver by either party of a single default or a
succession of defaults shall not deprive such party of any right to terminate
this Agreement arising by reason of any subsequent default.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       11

<PAGE>

                           8.3      TERMINATION UPON BANKRUPTCY OR
INSOLVENCY. This Agreement may be terminated by Scripps giving written notice
of termination to Licensee upon the filing of bankruptcy or bankruptcy of
Licensee or the appointment of a receiver of any of Licensee's assets, or the
making by Licensee of any assignment for the benefit of creditors, or the
institution of any proceedings against Licensee under any bankruptcy law.
Termination shall be effective upon the date specified in such notice.

                           8.4      RIGHTS UPON EXPIRATION.  Neither party
shall have any further rights or obligations upon the expiration of this
Agreement upon its regularly scheduled expiration date with respect to this
Agreement, other than the obligation of Licensee to make any and all reports
and payments for the final quarter period. Provided, however, that upon such
expiration, each party shall be required to continue to abide by its
nondisclosure obligations as described in Section 7.1, and Licensee shall
continue to abide by its obligation to indemnify Scripps as described in
Section 4.3 and by its obligations under Section 6.2 hereof.

                           8.5      RIGHTS UPON TERMINATION.  Notwithstanding
any other provision of this Agreement, upon any termination of this Agreement
prior to the regularly scheduled expiration date of this Agreement, the
license granted hereunder shall terminate. Except as otherwise provided in
Section 8.6 of this Agreement with respect to work-in-progress, upon such
termination, Licensee shall have no further right to develop, manufacture or
market any Licensed Product, or to otherwise use any Scripps Patent Rights or
any Scripps Technology not otherwise includable therein. Upon any such
termination, Licensee shall promptly return all materials, samples,
documents, information, and other materials which embody or disclose Scripps
Patent Rights or any Scripps Technology not otherwise includable therein;
provided, however, that Licensee shall not be obligated to provide Scripps
with proprietary information which Licensee can show that it independently
developed. Licensee shall be free to keep one copy of all such materials,
samples, documents, information, and other materials for the sole purpose of
monitoring its obligations under this Section 8.5. Any such termination shall
not relieve either party from any obligations accrued to the date of such
termination. Upon such termination, each party shall be required to abide by
its nondisclosure obligations as described in Section 7.1, and Licensee shall
continue to abide by its obligations to indemnify Scripps as described in
Section 4.3.

                           8.6      WORK-IN-PROGRESS.  Upon any such early
termination of the license granted hereunder in accordance with this
Agreement, Licensee shall be entitled to finish any work-in-progress and to
sell any completed inventory of a Licensed Product covered by such license
which remain on hand as of the date of the termination, so long as Licensee
pays to Scripps the royalties applicable to said subsequent sales in
accordance with the terms and conditions as set forth in this Agreement,
provided that no such sales shall be permitted after the expiration of six
(6) months after the date of termination.

                    9.     ASSIGNMENT; SUCCESSORS.

                           9.1      ASSIGNMENT.  Neither this Agreement nor
any rights granted hereunder may be assigned or transferred by Licensee
except (i) to an Affiliate of Licensee or (ii) as expressly permitted
hereunder, without the prior written consent of Scripps, which shall not be
unreasonably withheld.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                      12

<PAGE>

                           9.2      BINDING UPON SUCCESSORS AND ASSIGNS.
Subject to the limitations on assignment herein, this Agreement shall be
binding upon and inure to the benefit of any successors in interest and
assigns of Scripps and Licensee. Any such successor or assignee of Licensee's
interest shall expressly assume in writing the performance of all the terms
and conditions of this Agreement to be performed by Licensee.

                   10.     GENERAL PROVISIONS.

                           10.1     INDEPENDENT CONTRACTORS.  The
relationship between Scripps and Licensee is that of independent contractors.
Scripps and Licensee are not joint venturers, partners, principal and agent,
master and servant, employer or employee, and have no other relationship
other than independent contracting parties. Scripps and Licensee shall have
no power to bind or obligate each other in any manner, other than as is
expressly set forth in this Agreement.

                           10.2     ARBITRATION.  Any controversy or claim
arising out of or relating to this Agreement, or the breach thereof, shall be
settled by binding arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association ("AAA"), and the procedures set
forth below. In the event of any inconsistency between the Rules of AAA and
the procedures set forth below, the procedures set forth below shall control.
Judgment upon the award rendered by the arbitrators may be enforced in any
court having jurisdiction thereof.

                                    10.2.1  LOCATION.  The location of the
arbitration shall be in the County of San Diego.

                                    10.2.2  SELECTION OF ARBITRATORS.  The
arbitration shall be conducted by a panel of three neutral arbitrators who
are independent and disinterested with respect to the parties, this
Agreement, and the outcome of the arbitration. Each party shall appoint one
neutral arbitrator, and these two arbitrators so selected by the parties
shall then select the third arbitrator. If one party has given written notice
to the other party as to the identity of the arbitrator appointed by the
party, and the party thereafter makes a written demand on the other party to
appoint its designated arbitrator within the next ten days, and the other
patty fails to appoint its designated arbitrator within ten days after
receiving said written demand, then the arbitrator who has already been
designated shall appoint the other two arbitrators.

                                    10.2.3  DISCOVERY.  Unless the parties
mutually agree in writing to some additional and specific pre-hearing
discovery, the only pre-hearing discovery shall be (a) reasonably limited
production of relevant and non-privileged documents, and (b) the
identification of witnesses to be called at the hearing, which identification
shall give the witness's name, general qualifications and position, and a
brief statement as to the general scope of the testimony to be given by the
witness. The arbitrators shall decide any disputes and shall control the
process concerning these pre-hearing discovery matters. Pursuant to the Rules
of AAA, the parties may subpoena witnesses and documents for presentation at
the hearing.

                                    10.2.4  CASE MANAGEMENT.  Prompt
resolution of any dispute is important to both parties; and the parties agree
that the arbitration of any dispute shall be conducted expeditiously. The
arbitrators are instructed and directed to assume case management

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       13

<PAGE>

initiative and control over the arbitration process (including scheduling of
events, pre-hearing discovery and activities, and the conduct of the
hearing), in order to complete the arbitration as expeditiously as is
reasonably practical for obtaining a just resolution of the dispute.

                                    10.2.5  REMEDIES.  The arbitrators may
grant any legal or equitable remedy or relief that the arbitrators deem just
and equitable, to the same extent that remedies or relief could be granted by
a state or federal court, provided however, that no punitive damages may be
awarded. No court action may be maintained seeking punitive damages. The
decision of any two of the three arbitrators appointed shall be binding upon
the parties.

                                    10.2.6  EXPENSES.  The expenses of the
arbitration, including the arbitrators' fees, expert witness fees, and
attorney's fees, may be awarded to the prevailing party, in the discretion of
the arbitrators, or may be apportioned between the parties in any manner
deemed appropriate by the arbitrators. Unless and until the arbitrators
decide that one party is to pay for all (or a share) of such expenses, both
parties shall share equally in the payment of the arbitrators' fees as and
when billed by the arbitrators.

                                    10.2.7  CONFIDENTIALITY.  Except as set
forth below, the parties shall keep confidential the fact of the arbitration,
the dispute being arbitrated, and the decision of the arbitrators.
Notwithstanding the foregoing, the parties may disclose information about the
arbitration to persons who have a need to know, such as directors, trustees,
management employees, witnesses, experts, investors, attorneys, lenders,
insurers, and others who may be directly affected. Additionally, if a party
has stock which is publicly traded, the party may make such disclosures as
are required by applicable securities laws. Further, if a party is expressly
asked by a third party about the dispute or the arbitration, the party may
disclose and acknowledge in general and limited terms that there is a dispute
with the other party which is being (or has been) arbitrated. Once the
arbitration award has become final, if the arbitration award is not promptly
satisfied, then these confidentiality provisions shall no longer be
applicable.

                           10.3     ENTIRE AGREEMENT; MODIFICATION.  This
Agreement sets forth the entire agreement and understanding between the
parties as to the subject matter hereof. There shall be no amendments or
modifications to this Agreement, except by a written document which is signed
by both parties.

                           10.4     CALIFORNIA LAW.  This Agreement shall be
construed and enforced in accordance with the laws of the State of California.

                           10.5     HEADINGS.  The headings for each article
and section in this Agreement have been inserted for convenience of reference
only and are not intended to limit or expand on the meaning of the language
contained in the particular article or section.

                           10.6     SEVERABILITY.  Should any one or more of
the provisions of this Agreement be held invalid or unenforceable by a court
of competent jurisdiction, it shall be considered severed from this Agreement
and shall not serve to invalidate the remaining provisions thereof. The
parties shall make a good faith effort to replace any invalid or

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       14

<PAGE>

unenforceable provision with a valid and enforceable one such that the
objectives contemplated by them when entering this Agreement may be realized.

                           10.7     NO WAIVER.  Any delay in enforcing a
party's rights under this Agreement or any waiver as to a particular default
or other matter shall not constitute a waiver of such party's rights to the
future enforcement of its rights under this Agreement, excepting only as to
an express written and signed waiver as to a particular matter for a
particular period of time.

                           10.8     NAME.  Whenever there has been an
assignment or a sublicense by Licensee as permitted by this Agreement, the
term "Licensee" as used in this Agreement shall also include and refer to, if
appropriate, such assignee or sublicensee.

                           10.9     ATTORNEYS' FEES.  In the event of a
dispute between the parties hereto or in the event of any default hereunder,
the party prevailing in the resolution of any such dispute or default shall
be entitled to recover its reasonable attorneys' fees and other costs
incurred in connection with resolving such dispute or default.

                           10.10    NOTICES.  Any notices required by this
Agreement shall be in writing, shall specifically refer to this Agreement and
shall be sent by registered or certified airmail, postage prepaid, or by
telefax, telex or cable, charges prepaid, or by overnight courier, postage
prepaid and shall be forwarded to the respective addresses set forth below
unless subsequently changed by written notice to the other party:

         For Scripps:         The Scripps Research Institute
                              10550 North Torrey Pines Road
                              La Jolla, California 92037
                              Attention: V.P., Technology Development
                              Fax No.: (619) 554-9910

         For Licensee:        Drug Abuse Sciences
                              3 O'Dell Place
                              Atherton, California 94207
                              Attention: President
                              Fax No.: 415-328-8892

Notice shall be deemed delivered upon the earlier of (i) when received, (ii)
three (3) days after deposit into the mail, or (iii) the date notice is sent
via telefax, telex or cable, (iv) the day immediately following delivery to
overnight courier (except Sunday and holidays).

                           10.11    COMPLIANCE WITH U.S. LAWS.  Nothing
contained in this Agreement shall require or permit Scripps or Licensee to do
any act inconsistent with the requirements of any United States law,
regulation or executive order as the same may be in effect from time to time.

                  IN WITNESS WHEREOF, the parties have executed this
Agreement by their duly authorized representatives as of the date set forth
above.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                        15

<PAGE>

SCRIPPS:                                      LICENSEE:

THE SCRIPPS RESEARCH INSTITUTE                DRUG ABUSE SCIENCES

By:  /s/ Arnold LaGuardia                     By:  /s/ Philippe Pouletty
    ---------------------------------            ------------------------------
Title:  Sr. Vice President                    Title:  Chairman

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       16

<PAGE>

                                    EXHIBIT B

                            DRUGABUSE SCIENCES, INC.

                         COMMON STOCK PURCHASE AGREEMENT

                  THIS AGREEMENT is made as of June 18, 1996, between DRUGABUSE
SCIENCES, INC., a California corporation (the "Company"), and The Scripps
Research Institute ("Scripps").

                                    RECITALS

                  A. The Company has entered into and made effective as of the
execution hereof a License Agreement with Scripps (the "License Agreement").

                  B. In connection with the License Agreement, the Company
wishes to issue to Scripps: (i) an aggregate of 110,765 shares of Common Stock
of the Company, which shares, when issued, represent .75% of the outstanding
shares of the Company immediately prior to the execution of this Agreement; (ii)
a warrant to purchase an aggregate of 166,148 shares of Common Stock of the
Company, which shares represent approximately 1.125% of the outstanding shares
of the Company immediately prior to the execution of this Agreement ("Warrant
W-1") and attached hereto as Exhibit 1; and (iii) an additional warrant to
purchase an aggregate of 166,148 shares Common Stock of the Company which shares
represent approximately 1.125% of the outstanding shares of the Company
immediately prior to the execution of this Agreement ("Warrant W-2") and
attached hereto as Exhibit 2.

                  C. The Company wishes to condition the exercise of Warrant W-1
and Warrant W-2 (collectively, the "Warrants") upon the completion of certain
events related to the research and development of new products by the Company
and attached hereto as Exhibit 3 (the "Milestones").

                  D. The authorized capital stock of the Company consists of
120,000,000 shares of Common Stock, 12,515,352 of which are issued and
outstanding and 187,778 shares of Series A Preferred Stock, 187,778 of which are
issued and outstanding and convertible into 2,253,336 shares of Common Stock.
The total number of common stock equivalents as of the date of this Agreement is
14,768,688.

                  E. Scripps wishes to acquire the Common Stock and the Warrants
on the terms and subject to the conditions set forth in this Agreement.

                                    AGREEMENT

                  NOW THEREFORE, in consideration for the willingness to enter
into the License Agreement and for the mutual covenants and representations
herein set forth, the Company and Scripps agree as follows:

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                  F. ISSUANCE OF STOCK. As part of the consideration for the
grant of the licenses set forth in the License Agreement, the Company hereby
issues to Scripps, and Scripps hereby acquires from the Company, 110,765 shares
of the Company's Common Stock (the "Shares") valued at a price of $0.0225 per
share.

                  G. WARRANTS. As further consideration, the Company hereby
issues to Scripps the Warrants, valued at a price of $0.0225 per share subject
to the terms and conditions contained in the Warrants, for the grant of certain
licenses as provided in the License Agreement.

                  H. LEGENDS. The share certificate evidencing the Shares issued
hereunder shall be endorsed with the following legends (in addition to any
legends required under applicable state securities laws):

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

                  2. Any legend required to be placed thereon by the California
         Commissioner of Corporations or any other applicable state securities
         laws.

                  I.       INVESTMENT REPRESENTATIONS; RESTRICTION ON TRANSFER.
In connection with the purchase of the Shares, Scripps represents to the Company
the following:

                           (a)      INFORMATION CONCERNING THE COMPANY.  Scripps
is aware of the Company's business affairs and financial condition and has
acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Shares.

                                    1.      INVESTMENT INTENT.  Scripps is
purchasing these Shares for investment for Scripps' own account only and not
with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

                                    2.      RESIDENCE.  Scripps' principal
residence is within the State of California and is located at the address
indicated beneath Scripps' signature below.

                                    3.      RISK.   Scripps understands that the
Company is a start-up venture with limited financial and other resources and
that purchase of the Shares will be a highly speculative investment and involves
a high degree of risk, and Scripps is able, without impairing financial
condition, to hold the Shares for an indefinite period of time and to suffer a
complete loss of Scripps' investment.

                                    4.      RESTRICTED SECURITIES.  Scripps
acknowledges and understands that the Shares constitute "restricted securities"
under the Securities Act and must be

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       2

<PAGE>

held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is available. Scripps
further acknowledges and understands that the Company is under no obligation
to register the Shares. Scripps understands that the certificate evidencing
the Shares will be imprinted with a legend which prohibits the transfer of
the Shares unless they are registered or such registration is not required in
the opinion of counsel satisfactory to the Company.

                                    5.      RULE 144.  Scripps is familiar
with the provisions of Rule 144, promulgated under the Securities Act, which,
in substance, permits limited public resale of "restricted securities"
acquired, directly or indirectly, from the issuer thereof, in a non-public
offering subject to the satisfaction of certain conditions. Rule 144 requires
among other things: (1) the availability of certain public information about
the Company; (2) the resale occurring not less than two years after the party
has purchased, and made full payment for, within the meaning of Rule 144, the
securities to be sold; and (3) in the case of an affiliate, or of a
non-affiliate who has held the securities less than three years, the sale
being made through a broker in an unsolicited "broker's transaction" or in
transactions directly with a market maker (as said term is defined under the
Securities Exchange Act of 1934) and the amount of securities being sold
during any three-month period not exceeding the specified limitations stated
therein, if applicable. Although the exemption from registration available
under Rule 144 is not necessarily exclusive, Scripps acknowledges that it may
bear a substantial burden of proof in establishing the existence of an
exemption under the Securities Act if the requirements under Rule 144 are not
satisfied.

                                    6.      TAXES.  Scripps understands that
Scripps' investment in the Company may result in personal tax consequences.
Scripps shall rely solely on the determinations of its tax advisors or its
own determinations, and not on any statements or representations by the
Company or any of its agents, with regard to all such tax matters.

                                    7.      NO PUBLIC MARKET.  Scripps
understands that no public market now exists for any securities issued by the
Company and that there is no assurance that a public market will ever exist
for the Shares.

                  J. MARKET STAND-OFF. Scripps agrees, in connection with the
initial public offering of the Company's securities, (i) not to sell, make
short sales of, loan, grant any options for the purchase of, or otherwise
dispose of any securities of the Company held by Scripps (other than those
securities included in the registration) without the prior written consent of
the Company or the underwriters managing such initial underwritten public
offering of the Company's securities for one hundred eighty (180) days from
the effective date of such registration and (ii) further agrees to execute
any agreement reflecting (i) above as may be requested by the underwriters at
the time of the public offering.

                  K. STATE SECURITIES LAW. The sale of the securities which
are the subject of this Agreement has not been qualified with the
Commissioner of Corporations of the State of California and the issuance of
such securities or the payment or receipt of any part of the consideration
therefor prior to such qualification is unlawful, unless the sale of
securities is exempt from the qualification by Section 25100, 25102, or 25105
of the California Corporations

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       3

<PAGE>

Code. The rights of all parties to this Agreement are expressly conditioned
upon such qualification being obtained, unless the sale is so exempt.

                  L. TRANSFER TO INVENTORS. Subject to applicable state and
federal securities laws, the Company shall permit the transfer of shares of
Common Stock and Warrants issued pursuant to this Agreement to those
inventors whose technology is covered by the License Agreement as directed by
Scripps, provided such inventors acquire such securities on the same terms
and conditions as such securities are acquired by Scripps.

                  M. GENERAL PROVISIONS.

                                    1.      GOVERNING LAW.  This Agreement
shall be governed by the internal laws of the State of California as applied
to agreements made and performed in California by residents of California.

                                    2.      ENTIRE AGREEMENT.  This Agreement
represents the entire agreement between the parties with respect to the
purchase of Common Stock by Scripps and may only be modified or amended in
writing signed by both parties.

                  IN WITNESS WHEREOF, the parties have duly executed this
Common Stock Purchase Agreement as of the day and year first set forth above.

DRUGABUSE SCIENCES, INC,                   THE SCRIPPS RESEARCH INSTITUTE
a California corporation                   a California nonprofit public benefit
                                           corporation

By:  /s/ Philippe Pouletty                 Name:  /s/ Arnold LaGuardia
    ----------------------------------           -----------------------------
Title:  Chairman                           By:   Arnold LaGuardia, Sr. V.P.
    ----------------------------------           -----------------------------
                                           10550 N. Toreey Pines Rd.
                                           -----------------------------------
                                           Address

                                           La Jolla, CA  92037
                                           -----------------------------------

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                        4

<PAGE>

                                    EXHIBIT 1

                                   Warrant W-1

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR
SALE, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

NO.:  W-1                                                            Void after
                                                                   June 18, 2016

                            DRUGABUSE SCIENCES, INC.

                          COMMON STOCK PURCHASE WARRANT

                              Issued June 18, 1996

                  This Warrant is issued, for good and valuable consideration,
receipt of which is hereby acknowledged, to The Scripps Research Institute, a
California nonprofit public benefit corporation, (the "Holder") by DrueAbuse
Sciences, Inc., a California corporation (the "Company").

                  1. PURCHASE OF SHARES. Subject to the terms and conditions
hereinafter set forth, the Holder is entitled, upon surrender of this Warrant to
the Company, to purchase from the Company fully paid and non-assessable shares
of the Company's Common Stock (as adjusted pursuant to Section 10 hereof, the
"Shares").

                  2. PURCHASE PRICE. The purchase price per share for the Shares
shall be $.0225, (the "Warrant Price"). The number of shares of Common Stock
purchasable upon exercise of this Warrant shall be 166,148 shares.

                  3. EXERCISE PERIOD. This Warrant is exercisable upon the
completion of certain events related to the research and development of new
products by the Company and attached hereto as Schedule 1 (the "Milestones"), at
any time before the close of business on June 18, 2016.

                  4. METHOD OF EXERCISE. While this Warrant remains outstanding,
the Holder may exercise, in whole or in part, the purchase rights evidenced
hereby in accordance with Section 3 above. Such exercise shall be effected by
the surrender of this Warrant to the Chief Financial Officer of the Company at
its principal offices, together with the payment to the Company (i) in cash, by
check or by wire transfer to an account designated by the Company, (ii) by
cancellation by the Holder of any then-outstanding indebtedness of the Company
to the Holder, or (iii) by a combination of (i) and (ii) of an amount equal to
the aggregate purchase price for the number of Shares being purchased.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                  5. NET ISSUE EXERCISE. In lieu of the payment methods set
forth in Section 4 above, immediately prior to, or at any time after, the
closing of an Initial Public Offering, the Holder may elect to exchange all
or a portion of this Warrant for Shares equal to the value of the amount of
the Warrant being exchanged on the date of exchange. If the Holder elects to
exchange this Warrant as provided in this Section 5, the Holder shall tender
to the Company the Warrant for the amount being exchanged, with written
notice of the Holder's election to exchange some or all of the Warrant, and
the Company shall issue to the Holder the number of Shares computed using the
following formula:

              X = Y (A-B)

                    A

         Where      X     =     the number of Shares to be issued to
                                the Holder.

                    Y     =     the number of Shares purchasable
                                under the amount of the Warrant
                                being exchanged (as adjusted to the
                                date of such calculation).

                    A     =     the Fair Market Value of one Share.

                    B     =     the Purchase Price (as adjusted to
                                the date of such calculation).

                  All references herein to an "exercise" of the Warrant shall
include an exchange pursuant to this Section 5. Upon receipt of a written
notice of the Company's intention to raise capital by selling shares of
Common Stock in an Initial Public Offering (the "IPO NOTICE"), which notice
shall be delivered to the Holder promptly after the date of filing with the
Securities and Exchange Commission of the registration statement associated
with such Initial Public Offering, the Holder shall use its reasonable
efforts to determine whether or not the Holder will exercise this Warrant
pursuant to this Section 5 prior to the completion of the Initial Public
Offering. Notwithstanding whether or not an IPO Notice has been delivered to
the Holder or any other provision of this Warrant to the contrary, if the
Holder decides to exercise this Warrant while a registration statement is on
file with the Securities and Exchange Commission in connection with the
Initial Public Offering, this Warrant shall be deemed exercised on the
closing of the Initial Public Offering and the Fair Market Value of a Share
shall be the price at which one share of Common Stock was sold to the public
in the Initial Public Offering. If the Holder has elected to exercise this
Warrant pursuant to this Section 5 while a registration statement is on file
with the Securities and Exchange Commission in connection with an Initial
Public Offering and the Initial Public Offering is not completed, then the
Holder's exercise of this Warrant shall not be effective.

                  6. EXERCISE NOTICE AND INVESTMENT REPRESENTATIONS. On or
prior to the date of each exercise under this Warrant, Holder shall deliver
an executed copy of (a) the form of Notice of Exercise attached hereto as
EXHIBIT 1 duly executed by the Holder and (b) the form of Investment
Representation Statement attached hereto as EXHIBIT 2.

                  7. CERTIFICATE OF ADJUSTMENT. Whenever the Warrant Price or
number or type of securities issuable upon exercise of this Warrant is adjusted,
as herein provided, the Company

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       2

<PAGE>

shall promptly deliver to the record holder of this Warrant a certificate of
an officer of the Company setting forth the nature of such adjustment and a
brief statement of the facts requiring such adjustment.

                  8. CERTIFICATES FOR SHARES. Upon the exercise of the
purchase rights evidenced by this Warrant, one or more certificates for the
number of Shares so purchased shall be issued as soon as practicable
thereafter, and in any event within thirty (30) days of the delivery of the
subscription notice.

                  9. RESERVATION OF SHARES. The Company covenants that it
will at all times keep available such number of authorized shares of its
Common Stock, free from all preemptive rights with respect thereto, which
will be sufficient to permit the exercise of this Warrant for the full number
of Shares specified herein. The Company further covenants that such Shares,
when issued pursuant to the exercise of this Warrant, will be duly and
validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof

                  10. ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES.

                           (a)      SPLITS  AND  COMBINATIONS.  If the
Company at any time subdivides any of its outstanding shares of Common Stock
into a greater number of shares, the Warrant Price in effect immediately
prior to such subdivision shall be proportionately reduced, and, conversely,
if the outstanding shares of Common Stock are combined into a smaller number
of shares, the Warrant Price in effect immediately prior to such combination
shall be proportionately increased. Upon any adjustment of the Warrant Price
under this Section 10(a), the number of shares of Common Stock issuable upon
exercise of this Warrant shall equal the number of shares determined by
dividing (i) the aggregate Warrant Price payable for the purchase of all
shares issuable upon exercise of this Warrant immediately prior to such
adjustment by (ii) the Warrant Price per share in effect immediately after
such adjustment.

                           (b)      RECLASSIFICATIONS  AND EXCHANGES.  If the
Company changes any of the securities as to which purchase rights under this
Warrant exist into the same or a different number of securities of any other
class or classes, this Warrant shall thereafter represent the right to
acquire such number and kind of securities as would have been issuable as the
result of such change with respect to the securities that were subject to the
purchase rights under this Warrant immediately prior to such reclassification
or other change and the Warrant Price therefor shall be appropriately
adjusted. If thirty percent (30%) or more of the Company's outstanding Common
Stock is voluntarily exchanged for a different security issued by the
Company, then the Investor shall have the right to elect to receive such
security rather than the Common Stock on exercise or conversion of this
Warrant.

                           (c)      DIVIDENDS  AND  DISTRIBUTION.  If the
Company declares a non-cash dividend or other distribution on the Common
Stock or if a dividend or other distribution on the Common Stock occurs
pursuant to the Articles of Incorporation (other than a cash dividend or
distribution), then, as part of such dividend or distribution, lawful
provision shall be made so that there shall thereafter be deliverable upon
the exercise of this Warrant or any portion thereof, in addition to the
number of shares of Common Stock receivable thereupon and without payment of
any additional consideration, the amount of the dividend or other
distribution to which the holder

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       3

<PAGE>

of the number of shares of Common Stock obtained upon exercise hereof would
have been entitled to receive had the exercise occurred as of the record date
for such dividend or distribution.

                  11. NO SHAREHOLDER RIGHTS. Prior to exercise of this
Warrant, the Holder shall not be entitled to any rights of a shareholder
including (without limitation) the right to vote, receive preemptive rights
or be notified of shareholder meetings, and such Holder shall not be entitled
to any notice or other communication concerning the business or affairs or
the Company.

                  12. RESTRICTED SECURITIES. The Holder understands that this
Warrant and the Shares purchasable hereunder constitute "restricted
securities" under the federal securities laws inasmuch as they are being, or
will be, acquired from the Company in transactions not involving a public
offering and accordingly may not, under such laws and applicable regulations,
be resold or transferred without registration under the Securities Act of
1933 or an applicable exemption from registration. In this connection, the
Holder acknowledges that Rule 144 of the Securities and Exchange Commission
is not now, and may not in the future be, available for resales of the Shares
purchased hereunder. The Holder further acknowledges that the Shares and any
other securities issued upon exercise of this Warrant shall bear a legend
substantially in the form of the legend appearing on the face hereof.

                  THE SALE OF THESE SECURITIES HAS NOT BEEN QUALIFIED WITH
THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE
OF SUCH SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION
THEREFOR PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS SUCH SALE OR TRANSFER
IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE
CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THESE SECURITIES
ARE EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED UNLESS THE
SALE IS SO EXEMPT.

                  13. CERTIFICATION OF INVESTMENT PURPOSE. Unless a current
registration statement under the Securities Act of 1933 shall be in effect
with respect to the securities to be issued upon exercise of this Warrant,
the Holder, by accepting this Warrant, covenants and agrees that, at the time
of exercise hereof, such Holder will deliver to the Company a written
certification satisfactory to the Company that the securities acquired by the
Holder and acquired for investment purposes only and that such securities are
not acquired with a view to, or for sale in connection with, any distribution
thereof.

                  14. SUCCESSORS AND ASSIGNS. The terms and provisions of
this Warrant shall inure to the benefit of, and be binding upon, the Company
and the Holder hereof and their respective successors and assigns.

                  15. AMENDMENT. This Warrant is one of several warrants (the
"Bridge Warrants") issued by the Company in further consideration of certain
loans made to support the Company's continuing operations prior to the
arrangement of and commitment to close the Next Financing. Any term of this
Warrant may be amended if agreed to by the Company and holders of Bridge
Warrants representing a majority of the shares issuable upon exercise of all
Bridge Warrants then outstanding. Notwithstanding the foregoing, no such
amendment of this Warrant

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       4

<PAGE>

shall be effective if it would (i) alter the number of shares issuable
hereunder, or (ii) affect this Warrant in a manner different than the other
Bridge Warrants, unless the Holder hereof consents thereto.

                  16. NON-TRANSFERABILITY. The Holder of this note shall not
sell, transfer, pledge, hypothecate or otherwise dispose of any interest in
this note without the prior written consent of the Company, with one
exception: Scripps may transfer any portion of Scripps' interest in this note
to the inventors whose technology is covered by the License Agreement.

                  17. LOCKUP AGREEMENT. In consideration of the Company's
issuance of this Warrant, the Holder agrees in connection with an Initial
Public Offering not to sell, make any short sale of, loan, grant any option
for the purchase of, or otherwise dispose of any Shares issuable hereunder
without the prior written consent of an underwriter or underwriters in such
Initial Public Offering, for such period of time (not to exceed 180 days)
from the effective date of such registration as such underwriter or
underwriters may specify.

                  18. COUNTERPARTS. For the convenience of the parties, any
number of counterparts of this Warrant may be executed by the parties hereto
and each such executed counterpart shall be, and shall be deemed to be, an
original instrument.

                  19. GOVERNING LAW. This Warrant shall be governed by the
laws of the State of California as applied to agreements among California
residents entered into and to be performed entirely within California.

                                      DRUGABUSE SCIENCES, INC.

                                      By:  Chairman
                                          -----------------------------
                                      Title:
                                            ---------------------------

Accepted and Agreed:

By:
   ------------------------------
             Signature

Arnold LaGuardia, Sr. V.P.
-----------------------------------------
    (Print name and, if applicable, title)

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       5
<PAGE>

                                    EXHIBIT 1

                               NOTICE OF EXERCISE

                    (To be executed upon exercise of Warrant)

DRUGABUSE SCIENCES, INC.

                  The undersigned hereby irrevocably elects to exercise the
Warrant for shares of capital stock, as provided for therein, and (check the
applicable box):

                  / /      Tenders payment of the purchase price in the form of
                           cash, by check or wire transfer, in the amount of
                           $____________________ for __________ shares of Common
                           Stock.

                  / /      Elects the Net Issue Exercise option pursuant to
                           Section 5 of the Warrant, and requests delivery of a
                           net of __________ shares of Common Stock.

                  The undersigned hereby affirms the statements and covenants in
Section 12 of the Warrant. Please issue a certificate or certificates for such
shares in the name of, and pay any cash for any fractional share to (please
print name, address and social security number)

Name:_______________________________________

Address:____________________________________

Signature:__________________________________

Note:    The above signature should correspond exactly with the name on the
         first page of this Warrant or with the name of the assignee appearing
         in the assignment form below.

                  If said number of shares shall not be all the shares
purchasable under the within Warrant, a new Warrant is to be issued in the name
of the Registered Holder for the balance remaining of the shares purchasable
thereunder together with cash in lieu of any fraction of a share in the amount
of the current Fair Market Value of one whole share as of the date of exercise
multiplied by such fraction.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                    EXHIBIT 2

                       INVESTMENT REPRESENTATION STATEMENT

                                           __________ Shares of Common Stock of
                                                        DrugAbuse Sciences, Inc.

                  In connection with the purchase of the above-listed securities
the undersigned hereby represents to DrugAbuse Sciences, Inc. (the "Company") as
follows:

                  RECEIPT OF INFORMATION. The undersigned has received all the
information it considers necessary or appropriate for deciding whether to
purchase the Common Stock issuable upon exercise of the Warrant dated June __,
1996 (the "Warrant") issued by the Company to the undersigned, and it has
examined any information furnished to it by the Company in connection therewith.

                  INVESTMENT REPRESENTATION.

                  (a) The shares of Stock to be received by the undersigned upon
the exercise of the Warrant (the "Securities") will be acquired for investment
for its own account, not as a nominee or agent, and not with a view to the sale
or distribution of any part thereof, except that it is understood that Scripps
may transfer any portion of Scripps' interest in the Warrant and shares of the
Company to the inventors of the technology which is the subject of the License
Agreement and the undersigned has no present intention of selling, granting
participation in or otherwise distributing the same, but subject, nevertheless,
to any requirement of law that the disposition of its property shall at all
times be within its control. By executing this Statement, the undersigned
further represents that it does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer, or grant participation to such
person or to any third person, with respect to any Securities issuable upon
exercise of the Warrant, except as provided herein.

                  (b) The undersigned understands that the Securities issuable
upon exercise of the Warrant at the time of issuance may not be registered under
the Securities Act of 1933, as amended (the "Act"), and applicable state
securities laws, on the ground that the issuance of such securities is exempt
pursuant to Section 4(2) of the Act and state law exemptions relating to offers
and sales not by means of a public offering, and that the Company's reliance on
such exemptions is predicated on the undersigned's representations set forth
herein.

                  (c) The undersigned agrees that in no event will it make a
disposition of any Securities acquired upon the exercise of the Warrant unless
and until (i) it shall have notified the Company of the proposed disposition and
shall have furnished the Company with a statement of the circumstances
surrounding the proposed disposition, and (ii) it shall have furnished the
Company with an opinion of counsel satisfactory to the Company and the Company's
counsel to the effect that (A) appropriate action necessary for compliance with
the Act and any applicable state securities laws has been taken or an exemption
from the registration requirements of the Act and such laws is available, and
(B) that the proposed transfer will not violate any of said laws.
Notwithstanding the provisions of this paragraph, Scripps may transfer any
portion of the

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

Warrant and shares of the Company to Kim Janda and/or Peter Wirshing, the
inventors of the technology which is the subject of the License Agreement
without providing additional notice or advice of counsel.

                  (d) The undersigned represents that it is able to fend for
itself in the transactions contemplated by this Statement, has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of its investments, and has the ability to bear the
economic risks (including the risk of a total loss) of its investment. The
undersigned represents that it has had the opportunity to ask questions of the
Company concerning the Company's business and assets and to obtain any
additional information which it considered necessary to verify the accuracy of
or to amplify the Company's disclosures, and has had all questions which have
been asked by it satisfactorily answered by the Company.

                  (e) The undersigned acknowledges that the Securities issuable
upon exercise of the Warrant must be held indefinitely unless subsequently
registered under the Act or an exemption from such registration is available,
except as provided otherwise herein. The undersigned is aware of the provisions
of Rule 144 promulgated under the Act which permit limited resale of shares
purchased in a private placement subject to the satisfaction of certain
conditions, including, among other things, the existence of a public market for
the shares, the availability of certain current public information about the
Company, the resale occurring not less than two years after a party has
purchased and paid for the security to be sold, the sale being through a
"broker's transaction" or in transactions directly with a "market maker" (as
provided by Rule 144(f)) and the number of shares being sold during any
three-month period not exceeding specified limitations. The undersigned is aware
that the conditions for resale set forth in Rule 144 have not been satisfied.

Dated:  __________

                                   _______________________________________
                                   (Signature)

                                   _______________________________________
                                   (Typed or Printed Name)

                                   _______________________________________
                                   (Title)

                                       2

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                   SCHEDULE 1

                                   MILESTONES

                  1. Warrant W-l is exercisable upon the filing of an
investigational new drug application ("IND") for an efficacy clinical trial
sponsored by Licensee or its Sublicensee with the U.S. Food and Drug
Administration in respect of a Licensed Product.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                    EXHIBIT 2

                                   Warrant W-2

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. THEY MAY NOT BE SOLD, OFFERED FOR
SALE, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, OR AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH
ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

NO.:  W-1                                                            Void after
                                                                   June 18, 2016

                            DRUGABUSE SCIENCES, INC.

                          COMMON STOCK PURCHASE WARRANT
                              Issued June 18, 1996

                  This Warrant is issued, for good and valuable consideration,
receipt of which is hereby acknowledged, to The Scripps Research Institute, a
California nonprofit public benefit corporation, (the "Holder") by DrueAbuse
Sciences, Inc., a California corporation (the "Company").

                  20. PURCHASE OF SHARES. Subject to the terms and conditions
hereinafter set forth, the Holder is entitled, upon surrender of this Warrant to
the Company, to purchase from the Company fully paid and non-assessable shares
of the Company's Common Stock (as adjusted pursuant to Section 10 hereof, the
"Shares").

                  21. PURCHASE PRICE. The purchase price per share for the
Shares shall be $.0225, (the "Warrant Price"). The number of shares of Common
Stock purchasable upon exercise of this Warrant shall be 166,148 shares.

                  22. EXERCISE PERIOD. This Warrant is exercisable upon the
completion of certain events related to the research and development of new
products by the Company and attached hereto as Schedule 1 (the "Milestones"), at
any time before the close of business on June 18, 2016.

                  23. METHOD OF EXERCISE. While this Warrant remains
outstanding, the Holder may exercise, in whole or in part, the purchase rights
evidenced hereby in accordance with Section 3 above. Such exercise shall be
effected by the surrender of this Warrant to the Chief Financial Officer of the
Company at its principal offices, together with the payment to the Company (i)
in cash, by check or by wire transfer to an account designated by the Company,
(ii) by cancellation by the Holder of any then-outstanding indebtedness of the
Company to the Holder, or (iii) by a combination of (i) and (ii) of an amount
equal to the aggregate purchase price for the number of Shares being purchased.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                  24. NET ISSUE EXERCISE. In lieu of the payment methods set
forth in Section 4 above, immediately prior to, or at any time after, the
closing of an Initial Public Offering, the Holder may elect to exchange all or a
portion of this Warrant for Shares equal to the value of the amount of the
Warrant being exchanged on the date of exchange. If the Holder elects to
exchange this Warrant as provided in this Section 5, the Holder shall tender to
the Company the Warrant for the amount being exchanged, with written notice of
the Holder's election to exchange some or all of the Warrant, and the Company
shall issue to the Holder the number of Shares computed using the following
formula:

                  X = Y (A-B)
                      -------
                         A

         Where             X        =       the number of Shares to be issued to
                                            the Holder.

                           Y        =       the number of Shares purchasable
                                            under the amount of the Warrant
                                            being exchanged (as adjusted to the
                                            date of such calculation).

                           A        =       the Fair Market Value of one Share.

                           B        =       the Purchase Price (as adjusted to
                                            the date of such calculation).

                  All references herein to an "exercise" of the Warrant shall
include an exchange pursuant to this Section 5. Upon receipt of a written notice
of the Company's intention to raise capital by selling shares of Common Stock in
an Initial Public Offering (the "IPO NOTICE"), which notice shall be delivered
to the Holder promptly after the date of filing with the Securities and Exchange
Commission of the registration statement associated with such Initial Public
Offering, the Holder shall use its reasonable efforts to determine whether or
not the Holder will exercise this Warrant pursuant to this Section 5 prior to
the completion of the Initial Public Offering. Notwithstanding whether or not an
IPO Notice has been delivered to the Holder or any other provision of this
Warrant to the contrary, if the Holder decides to exercise this Warrant while a
registration statement is on file with the Securities and Exchange Commission in
connection with the Initial Public Offering, this Warrant shall be deemed
exercised on the closing of the Initial Public Offering and the Fair Market
Value of a Share shall be the price at which one share of Common Stock was sold
to the public in the Initial Public Offering. If the Holder has elected to
exercise this Warrant pursuant to this Section 5 while a registration statement
is on file with the Securities and Exchange Commission in connection with an
Initial Public Offering and the Initial Public Offering is not completed, then
the Holder's exercise of this Warrant shall not be effective.

                  25. EXERCISE NOTICE AND INVESTMENT REPRESENTATIONS. On or
prior to the date of each exercise under this Warrant, Holder shall deliver an
executed copy of (a) the form of Notice of Exercise attached hereto as EXHIBIT 1
duly executed by the Holder and (b) the form of Investment Representation
Statement attached hereto as EXHIBIT 2.

                  26. CERTIFICATE OF ADJUSTMENT. Whenever the Warrant Price or
number or type of securities issuable upon exercise of this Warrant is adjusted,
as herein provided, the Company

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       2

<PAGE>

shall promptly deliver to the record holder of this Warrant a certificate of
an officer of the Company setting forth the nature of such adjustment and a
brief statement of the facts requiring such adjustment.

                  27. CERTIFICATES FOR SHARES. Upon the exercise of the purchase
rights evidenced by this Warrant, one or more certificates for the number of
Shares so purchased shall be issued as soon as practicable thereafter, and in
any event within thirty (30) days of the delivery of the subscription notice.

                  28. RESERVATION OF SHARES. The Company covenants that it will
at all times keep available such number of authorized shares of its Common
Stock, free from all preemptive rights with respect thereto, which will be
sufficient to permit the exercise of this Warrant for the full number of Shares
specified herein. The Company further covenants that such Shares, when issued
pursuant to the exercise of this Warrant, will be duly and validly issued, fully
paid and nonassessable and free from all taxes, liens and charges with respect
to the issuance thereof

                  29.      ADJUSTMENT OF WARRANT PRICE AND NUMBER OF SHARES.

                           (a)      SPLITS  AND  COMBINATIONS.  If the  Company
at any time subdivides any of its outstanding shares of Common Stock into a
greater number of shares, the Warrant Price in effect immediately prior to such
subdivision shall be proportionately reduced, and, conversely, if the
outstanding shares of Common Stock are combined into a smaller number of shares,
the Warrant Price in effect immediately prior to such combination shall be
proportionately increased. Upon any adjustment of the Warrant Price under this
Section 10(a), the number of shares of Common Stock issuable upon exercise of
this Warrant shall equal the number of shares determined by dividing (i) the
aggregate Warrant Price payable for the purchase of all shares issuable upon
exercise of this Warrant immediately prior to such adjustment by (ii) the
Warrant Price per share in effect immediately after such adjustment.

                           (b)      RECLASSIFICATIONS  AND EXCHANGES.  If the
Company changes any of the securities as to which purchase rights under this
Warrant exist into the same or a different number of securities of any other
class or classes, this Warrant shall thereafter represent the right to acquire
such number and kind of securities as would have been issuable as the result of
such change with respect to the securities that were subject to the purchase
rights under this Warrant immediately prior to such reclassification or other
change and the Warrant Price therefor shall be appropriately adjusted. If thirty
percent (30%) or more of the Company's outstanding Common Stock is voluntarily
exchanged for a different security issued by the Company, then the Investor
shall have the right to elect to receive such security rather than the Common
Stock on exercise or conversion of this Warrant.

                           (c)      DIVIDENDS  AND  DISTRIBUTION.  If the
Company declares a non-cash dividend or other distribution on the Common Stock
or if a dividend or other distribution on the Common Stock occurs pursuant to
the Articles of Incorporation (other than a cash dividend or distribution),
then, as part of such dividend or distribution, lawful provision shall be made
so that there shall thereafter be deliverable upon the exercise of this Warrant
or any portion thereof, in addition to the number of shares of Common Stock
receivable thereupon and without payment of any additional consideration, the
amount of the dividend or other distribution to which the holder

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       3

<PAGE>

of the number of shares of Common Stock obtained upon exercise hereof would
have been entitled to receive had the exercise occurred as of the record date
for such dividend or distribution.

                  30. NO SHAREHOLDER RIGHTS. Prior to exercise of this Warrant,
the Holder shall not be entitled to any rights of a shareholder including
(without limitation) the right to vote, receive preemptive rights or be notified
of shareholder meetings, and such Holder shall not be entitled to any notice or
other communication concerning the business or affairs or the Company.

                  31. RESTRICTED SECURITIES. The Holder understands that this
Warrant and the Shares purchasable hereunder constitute "restricted securities"
under the federal securities laws inasmuch as they are being, or will be,
acquired from the Company in transactions not involving a public offering and
accordingly may not, under such laws and applicable regulations, be resold or
transferred without registration under the Securities Act of 1933 or an
applicable exemption from registration. In this connection, the Holder
acknowledges that Rule 144 of the Securities and Exchange Commission is not now,
and may not in the future be, available for resales of the Shares purchased
hereunder. The Holder further acknowledges that the Shares and any other
securities issued upon exercise of this Warrant shall bear a legend
substantially in the form of the legend appearing on the face hereof.

                  THE SALE OF THESE SECURITIES HAS NOT BEEN QUALIFIED WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF SUCH
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE CONSIDERATION THEREFOR
PRIOR TO SUCH QUALIFICATION IS UNLAWFUL UNLESS SUCH SALE OR TRANSFER IS EXEMPT
FROM QUALIFICATION BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA
CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THESE SECURITIES ARE EXPRESSLY
CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

                  32. CERTIFICATION OF INVESTMENT PURPOSE. Unless a current
registration statement under the Securities Act of 1933 shall be in effect with
respect to the securities to be issued upon exercise of this Warrant, the
Holder, by accepting this Warrant, covenants and agrees that, at the time of
exercise hereof, such Holder will deliver to the Company a written certification
satisfactory to the Company that the securities acquired by the Holder and
acquired for investment purposes only and that such securities are not acquired
with a view to, or for sale in connection with, any distribution thereof.

                  33. SUCCESSORS AND ASSIGNS. The terms and provisions of this
Warrant shall inure to the benefit of, and be binding upon, the Company and the
Holder hereof and their respective successors and assigns.

                  34. AMENDMENT. This Warrant is one of several warrants (the
"Bridge Warrants") issued by the Company in further consideration of certain
loans made to support the Company's continuing operations prior to the
arrangement of and commitment to close the Next Financing. Any term of this
Warrant may be amended if agreed to by the Company and holders of Bridge
Warrants representing a majority of the shares issuable upon exercise of all
Bridge Warrants then outstanding. Notwithstanding the foregoing, no such
amendment of this Warrant

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       4

<PAGE>

shall be effective if it would (i) alter the number of shares issuable
hereunder, or (ii) affect this Warrant in a manner different than the other
Bridge Warrants, unless the Holder hereof consents thereto.

                  35. NON-TRANSFERABILITY. The Holder of this note shall not
sell, transfer, pledge, hypothecate or otherwise dispose of any interest in this
note without the prior written consent of the Company, with one exception:
Scripps may transfer any portion of Scripps' interest in this note to the
inventors whose technology is covered by the License Agreement.

                  36. LOCKUP AGREEMENT. In consideration of the Company's
issuance of this Warrant, the Holder agrees in connection with an Initial Public
Offering not to sell, make any short sale of, loan, grant any option for the
purchase of, or otherwise dispose of any Shares issuable hereunder without the
prior written consent of an underwriter or underwriters in such Initial Public
Offering, for such period of time (not to exceed 180 days) from the effective
date of such registration as such underwriter or underwriters may specify.

                  37. COUNTERPARTS. For the convenience of the parties, any
number of counterparts of this Warrant may be executed by the parties hereto and
each such executed counterpart shall be, and shall be deemed to be, an original
instrument.

                  38. GOVERNING LAW. This Warrant shall be governed by the laws
of the State of California as applied to agreements among California residents
entered into and to be performed entirely within California.

                                          DRUGABUSE SCIENCES, INC.

                                          By:  /s/ Philippe Pouletty
                                             --------------------------------
                                          Title:  Chairman
                                                -----------------------------

Accepted and Agreed:

By:  /s/ Arnold LaGuardia
   -----------------------------------
             Signature

Arnold LaGuardia, Sr. V.P.
--------------------------------------
(Print name and, if applicable, title)

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       5
<PAGE>

                                    EXHIBIT 1

                               NOTICE OF EXERCISE

                    (To be executed upon exercise of Warrant)

DRUGABUSE SCIENCES, INC.

                  The undersigned hereby irrevocably elects to exercise the
Warrant for shares of capital stock, as provided for therein, and (check the
applicable box):

                  / /      Tenders payment of the purchase price in the form of
                           cash, by check or wire transfer, in the amount of
                           $____________________ for __________ shares of Common
                           Stock.

                  / /      Elects the Net Issue Exercise option pursuant to
                           Section 5 of the Warrant, and requests delivery of a
                           net of __________ shares of Common Stock.

                  The undersigned hereby affirms the statements and covenants
in Section 12 of the Warrant. Please issue a certificate or certificates for
such shares in the name of, and pay any cash for any fractional share to
(please print name, address and social security number)

Name:______________________________

Address:___________________________

Signature:_________________________

Note:    The above signature should correspond exactly with the name on the
         first page of this Warrant or with the name of the assignee appearing
         in the assignment form below.

                  If said number of shares shall not be all the shares
purchasable under the within Warrant, a new Warrant is to be issued in the name
of the Registered Holder for the balance remaining of the shares purchasable
thereunder together with cash in lieu of any fraction of a share in the amount
of the current Fair Market Value of one whole share as of the date of exercise
multiplied by such fraction.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                    EXHIBIT 2

                       INVESTMENT REPRESENTATION STATEMENT

                                            __________ Shares of Common Stock of
                                                        DrugAbuse Sciences, Inc.

                  In connection with the purchase of the above-listed securities
the undersigned hereby represents to DrugAbuse Sciences, Inc. (the "Company") as
follows:

                  RECEIPT OF INFORMATION. The undersigned has received all the
information it considers necessary or appropriate for deciding whether to
purchase the Common Stock issuable upon exercise of the Warrant dated June __,
1996 (the "Warrant") issued by the Company to the undersigned, and it has
examined any information furnished to it by the Company in connection therewith.

                  INVESTMENT REPRESENTATION.

                  (a) The shares of Stock to be received by the undersigned
upon the exercise of the Warrant (the "Securities") will be acquired for
investment for its own account, not as a nominee or agent, and not with a view
to the sale or distribution of any part thereof, except that it is understood
that Scripps may transfer any portion of Scripps' interest in the Warrant and
shares of the Company to the inventors of the technology which is the subject
of the License Agreement and the undersigned has no present intention of
selling, granting participation in or otherwise distributing the same, but
subject, nevertheless, to any requirement of law that the disposition of its
property shall at all times be within its control. By executing this Statement,
the undersigned further represents that it does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer, or
grant participation to such person or to any third person, with respect to any
Securities issuable upon exercise of the Warrant, except as provided herein.

                  (b) The undersigned understands that the Securities issuable
upon exercise of the Warrant at the time of issuance may not be registered
under the Securities Act of 1933, as amended (the "Act"), and applicable state
securities laws, on the ground that the issuance of such securities is exempt
pursuant to Section 4(2) of the Act and state law exemptions relating to offers
and sales not by means of a public offering, and that the Company's reliance on
such exemptions is predicated on the undersigned's representations set forth
herein.

                  (c) The undersigned agrees that in no event will it make a
disposition of any Securities acquired upon the exercise of the Warrant unless
and until (i) it shall have notified the Company of the proposed disposition
and shall have furnished the Company with a statement of the circumstances
surrounding the proposed disposition, and (ii) it shall have furnished the
Company with an opinion of counsel satisfactory to the Company and the
Company's counsel to the effect that (A) appropriate action necessary for
compliance with the Act and any applicable state securities laws has been taken
or an exemption from the registration requirements of the Act and such laws is
available, and (B) that the proposed transfer will not violate any of said
laws. Notwithstanding the provisions of this paragraph, Scripps may transfer
any portion of the

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

Warrant and shares of the Company to Kim Janda and/or Peter Wirshing, the
inventors of the technology which is the subject of the License Agreement
without providing additional notice or advice of counsel.

                  (d) The undersigned represents that it is able to fend for
itself in the transactions contemplated by this Statement, has such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of its investments, and has the ability to bear the
economic risks (including the risk of a total loss) of its investment. The
undersigned represents that it has had the opportunity to ask questions of the
Company concerning the Company's business and assets and to obtain any
additional information which it considered necessary to verify the accuracy of
or to amplify the Company's disclosures, and has had all questions which have
been asked by it satisfactorily answered by the Company.

                  (e) The undersigned acknowledges that the Securities issuable
upon exercise of the Warrant must be held indefinitely unless subsequently
registered under the Act or an exemption from such registration is available,
except as provided otherwise herein. The undersigned is aware of the provisions
of Rule 144 promulgated under the Act which permit limited resale of shares
purchased in a private placement subject to the satisfaction of certain
conditions, including, among other things, the existence of a public market for
the shares, the availability of certain current public information about the
Company, the resale occurring not less than two years after a party has
purchased and paid for the security to be sold, the sale being through a
"broker's transaction" or in transactions directly with a "market maker" (as
provided by Rule 144(f)) and the number of shares being sold during any
three-month period not exceeding specified limitations. The undersigned is
aware that the conditions for resale set forth in Rule 144 have not been
satisfied.

Dated:  __________

                                   ________________________________
                                   (Signature)

                                   ________________________________
                                   (Typed or Printed Name)

                                   ________________________________
                                   (Title)

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                      2

<PAGE>

                                   SCHEDULE 1

                                   MILESTONES

                  1. Warrant W-2 is exercisable upon demonstration of human
clinical efficacy for a primary end point in a Phase II clinical trial
sponsored by Licensee or its Sublicensee in respect of a Licensed Product.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                    EXHIBIT 3

                                   Milestones

                  1. Warrant W-1 is exercisable upon the filing of an
investigational new drug application ("IND") for an efficacy clinical trial
sponsored by Licensee or its Sublicensees with the U.S. Food and Drug
Administration in respect of a Licensed Product.

                  2. Warrant W-2 is exercisable upon demonstration of human
clinical efficacy for a primary end point in a Phase II clinical trial
sponsored by Licensee or its Sublicensee in respect of a Licensed Product.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                    EXHIBIT C

                               FORM OF SUBLICENSE

                  This Sublicense Term Sheet is entered into and made effective
as of ____________________, 19__ by and between ______________________________,
a __________ located at _______________________________________________________
("Licensee") and ______________________________, a ____________________ located
at ________________________________________ ("Sublicensee").

                  GRANT OF SUBLICENSE. Licensee hereby grants to Sublicensee a
sublicense under and on all the same terms and conditions of that certain
License Agreement between Licensee and The Scripps Research Institute, a
California nonprofit public benefit corporation ("Scripps") attached hereto as
Exhibit I (the "Master License Agreement"), except as set forth below:

                  a.       Technology subject to Sublicense: _______________
____________________________________________________________________________
____________________________________________________________________________.

                  b.       Term: ___________________________________________
____________________________________________________________________________
____________________________________________________________________________.

                  c.       Royalty Payments: _______________________________
____________________________________________________________________________
____________________________________________________________________________.

                  d.       Commercial Development Obligations: _____________
____________________________________________________________________________
____________________________________________________________________________.

                  By its signature below, Sublicensee agrees to be bound by all
of the terms and conditions of the Master License Agreement, as modified
hereby, for the benefit of Licensee and Scripps.

LICENSEE:                                      SUBLICENSEE:

____________________________                   ________________________________

By:_________________________                   By:_____________________________

Title:______________________                   Title:__________________________

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

<PAGE>

                                    EXHIBIT D

                                   MILESTONES

                  1. The filing of an investigational new drug application
("IND") for an efficacy clinical trial sponsored by Licensee or its Sublicensee
with the U.S. Food and Drug Administration in respect of a Licensed Product.

                  2. Upon demonstration of human clinical efficacy for a
primary end point in a Phase II clinical trial sponsored by Licensee or its
Sublicensee in respect of a Licensed Product.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.<PAGE>

                                                                 EXHIBIT 10.15

                        -------------------------------
                              PATENT AND KNOW-HOW

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

This Agreement is entered this 08-day of June 1999 ("Effective Date") into BY
AND BETWEEN:

-      PASTEUR MERIEUX SERUMS & VACCINS, - PASTEUR MERIEUX CONNAUGHT COMPANY -,
       a company organized and existing under the laws of France having its
       registered head office at 58 avenue Leclerc, 69007 Lyon, France,

       Represented by Mr. Michel GRECO, its DIRECTEUR GENERAL,

       (hereinafter referred to as "LICENSOR")

AND

-      DRUG ABUSE SCIENCES INC a corporation existing and organized under the
       laws of the United States its registered head office at 1430 O'Brien
       Drive, suite E, Menlo Park, CA 94025

       Represented by Mr Stanley KAPLAN, its Chief Executive Officer,

       (hereinafter referred to as "LICENSEE")

<PAGE>

          CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED
          AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT
          HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

                                   WITNESSETH

WHEREAS, LICENSOR has developed intellectual property, including inventions
which are the subject matter of patents and patent applications and a secret and
substantial know-how, relating to the [********] technology.

WHEREAS, LICENSEE wishes to obtain from LICENSOR a license in order to have the
right to use LICENSOR' inventions relating to the pasteurization for use with
products that are directed toward alleviation of drug addictions, and LICENSOR
is willing to grant such licenses to LICENSEE, subject to the terms of and
conditioned upon this Agreement;

NOW, THEREFORE, in consideration of the respective representations
and covenants of each of the Parties as set forth below, LICENSOR and LICENSEE,
intending to be legally bound, agree as follows

ARTICLE 1 - DEFINITIONS AND INTERPRETATION.

1.1    DEFINITIONS: For the purposes of this Agreement the following words and
       phrases shall have the following meanings:

       (a)    "AFFILIATE" means, with respect to any Person, (i) any other
              Person of which the securities or other ownership interests
              representing fifty per cent (50%) or more of the equity or fifty
              per cent (50%) or more of the ordinary voting power or fifty per
              cent (50%) or more of the general partnership interest are, at the
              time such determination is being made, owned, Controlled or held,
              directly or indirectly, by such Person (a "Subsidiary"), or (ii)
              any other Person which, at the time such determination is being
              made, is Controlling or under common Control with, such Person. As
              used herein, the term "Control", whether used as a noun or verb,
              refers to the possession, directly or indirectly, of the power to
              direct, or cause the direction of, the management or policies of a
              Person, whether through the ownership of voting securities, by
              contract or otherwise.

       (b)    "AGREEMENT" means this agreement, all amendments and supplements
              to this Agreement and all schedules to this Agreement, including
              the following:

       SCHEDULE A - LICENSED PATENTS,

       SCHEDULE B - LICENSED KNOW-HOW

       (c)    "BIOLOGICAL MATERIALS" shall mean any biological materials
              including but not limited to structural genes, genetic sequences,
              promoters, enhancers, probes, linkage probes, vectors, hosts,
              plasmids, peptides, polypeptides, transformed cell lines,
              transgenic animals, proteins, biological modifiers, antigens,
              reagents, hybridomas, antibodies, toxins, lectins, enzymes,
              lipids, hormones, viruses, cells or parts of cells, cell lines,
              fragments of any of the foregoing and any other biologically
              active material or compound, whether or not occurring naturally or
              howsoever derived, modified, conjugated, cross-linked,
              immobilized, reduced, purified or produces, whether by recombinant
              DNA techniques and/or otherwise.

       (d)    "CALENDAR QUARTER" means any of the three-month periods beginning
              January 1, April 1, July 1 and October 1 in any year.

       (e)    "CONFIDENTIAL INFORMATION" has the meaning ascribed to it in
              Section 9.1. of this Agreement.

       (f)    "EVENT OF FORCE MAJEURE" has the meaning ascribed to it in Article
              12 of this Agreement.

       (g)    "FIELD OF USE" means the treatment of drug addiction.

       (h)    "FIRST COMMERCIAL SALE" means, in each country of the Territory,
              the first sale of a PRODUCT, after obtaining the regulatory
              approvals necessary to commercially market such PRODUCT in such
              country in the Territory, by LICENSEE, its

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       1

<PAGE>

              Affiliates or Sublicensees, to Third-Parties, in each case for use
              or consumption of such PRODUCT in such country by the general
              public.

       (i)    "IMPROVEMENTS" means all patentable or non-patentable inventions,
              discoveries, technology and information of any type whatsoever,
              including without limitation Biological Materials, methods,
              processes, technical information, knowledge, experience and
              know-how which utilize, incorporate, derive from, are based on or
              could not be conceived, developed or reduced to practice but for
              the use of the LICENSOR Technology.

       (j)    "LICENSE" has the meaning ascribed to it in Section 2.1.1. of this
              Agreement.

       (k)    "LICENSED KNOW-HOW" means any and all technical information,
              discoveries, Improvements, processes, formulae, data, engineering,
              technical and shop drawings, inventions, Biological Materials,
              shop-rights, know-how and trade secrets which is useful or
              necessary to make, have made, use or sell the PRODUCTS or to
              practice under the LICENSED PATENTS in the Field of Use, which
              have been, or hereafter are, either developed by LICENSOR or its
              Affiliates, or acquired by LICENSOR or its Affiliates and to which
              LICENSOR or its Affiliates, to the extent to which it has the
              right to do so in the Field of Use.

       (l)    "LICENSED PATENTS" means:

              (i)    any existing patents and patent applications listed in
                     Schedule A to this Agreement;

              (ii)   any future patents issued from any patent applications
                     referred to in Paragraph 1.1(1)(i) above and any future
                     patents issued from a patent application filed in any
                     country in the Territory which corresponds to a patent or
                     patent application identified in Paragraph 1.1(1)(i) above;

              (iii)  any reissues, confirmations, renewals, extensions,
                     counterparts, divisions, continuations,
                     continuations-in-part, supplemental protection certificates
                     or utility models issued, assigned or licensed to LICENSOR
                     or its Affiliates of or relating to the patents or patent
                     applications identified in Paragraph 1.1(1)(i) and (ii)
                     above

              (iv)   any future patents and patent applications covering
                     LICENSOR Improvements, solely or jointly owned by LICENSOR
                     or its Affiliates, or licensed by LICENSOR or its
                     Affiliates with the right to sublicense.

       (m)    "NET SALES" shall mean the amount actually received on sales of
              PRODUCTS by LICENSEE, and its Affiliates and Sublicensees if the
              Sublicensees are Affiliates to the first Third-Party (including
              unaffiliated Third-Party distributors, except in the circumstances
              referred to in Section 6.3 hereof less), to the extent actually
              incurred or allowed and if not already deducted in the amount
              invoiced:

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       2

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              (i)    normal or customary trade and/or quantity discounts,
                     credits, allowances, rebates, returns (including, but not
                     limited to, wholesaler and retailer returns);

              (ii)   retroactive price reductions;

              (iii)  excise taxes, other consumption taxes, customs duties and
                     compulsory payments made to governmental authorities;

              (iv)   sales commissions that are actually paid to Third-Party
                     distributors and selling agents; and

              (v)    transportation, transit and insurance for transportation
                     each to the extent separately invoiced and paid by
                     LICENSEE.

       (n)    "Notice of Dispute" has the meaning ascribed to it in Section
              16.4.(a) of this Agreement.

       (o)    "PARTIES" means LICENSEE and LICENSOR, and "Party" means any one
              of them.

       (p)    "PERSON" means an individual, corporation, partnership, trust,
              business trust, association, joint stock company, pool, syndicate,
              sole proprietorship, unincorporated organization, governmental
              authority or any other form of entity not specifically listed
              herein.

       (q)    "PHASE III" means the first pivotal safety and efficacy clinical
              trial relating to a PRODUCT.

       (r)    "PRODUCTS" means the COC are produced by or under license from
              DAS, the manufacture, sale or use of such PRODUCTS which would
              have constituted a misappropriation of substantial LICENSED
              KNOW-HOW, or LICENSOR Improvements, and/or an infringement of the
              LICENSED PATENTS, but for the LICENSE granted in this Agreement.

       (s)    "ROYALTY TERM" means, with respect to the PRODUCT in each country
              in the Territory, the period [***] of such PRODUCT in such country
              and [***] in such country.

       (t)    "SUBLICENSEE" means any Person acting pursuant to a sublicense
              granted to it by LICENSEE under the terms of this Agreement.

       (u)    "TERRITORY" means all countries in the world.

       (v)    "THIRD-PARTY" means any Person other than LICENSEE, LICENSOR and
              their respective Affiliates..

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       3

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       (w)    "VALID PATENT CLAIM" means a claim of an issued and unexpired
              patent or patent application included in LICENSED PATENTS which
              has not been held permanently revoked, unenforceable or invalid by
              a decision of a court or other governmental agency of competent
              jurisdiction, unappealable or unappealed within the time allowed
              for appeal, and which has not been admitted to be invalid or
              unenforceable through reissue or disclaimer or otherwise. If there
              should be two or more decisions within the same country which are
              conflicting with respect to the invalidity of the same claim, the
              decision of the highest tribunal shall thereafter control.
              However, should the tribunals be of equal authority, then the
              decision or decisions holding the claim valid shall prevail where
              the conflicting decisions are equal in number and the majority of
              decisions shall prevail where the conflicting decisions are not
              equal in number.

       (x)    "LICENSOR IMPROVEMENT" means Improvements which are conceived,
              developed or reduced to practice during the term of this Agreement
              solely or jointly by employees or contractors acting on behalf of
              LICENSOR or its Affiliates.

       (y)    "LICENSOR TECHNOLOGY" means the LICENSED PATENTS, the LICENSED
              KNOWHOW and the LICENSOR Improvements.

1.2 CERTAIN RULES OF INTERPRETATION IN THIS AGREEMENT AND THE SCHEDULES:

       (a)    An accounting term not otherwise defined has the meaning assigned
              to it by, and every accounting matter will be determined in
              accordance with, generally accepted accounting principles in the
              United States of America;

       (b)    Unless otherwise specified, all references to monetary amounts are
              to United States dollars currency (US$);

       (c)    The descriptive headings of Articles and Sections are inserted
              solely for convenience of reference and are not intended as
              complete or accurate descriptions of the content of such Articles
              or Sections;

       (d)    The use of words in the singular or plural, or with a particular
              gender, shall not limit the scope or exclude the application of
              any provision of this Agreement to such Person or Persons or
              circumstances as the context otherwise permits;

       (e)    Whenever a provision of this Agreement requires an approval or
              consent by a Party to this Agreement and notification of such
              approval or consent is not delivered within the applicable time
              limit, then, unless otherwise specified, the Party whose approval
              or consent is required shall be conclusively deemed to have
              granted its approval or consent;

       (f)    Unless otherwise specified, time periods within or following which
              any payment is to be made or act is to be done shall be calculated
              by excluding the day on which the period commences and including
              the day on which the period ends and by extending the period to
              the next business day following if the last day of the

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                        4

<PAGE>

              period is not a business day in the jurisdiction of the Party to
              make such payment or do such act; and

       (g)    Whenever any payment is to be made or action to be taken under
              this Agreement is required to be made or taken on a day other than
              a business day, such payment shall be made or action taken on the
              next business day following such day in the jurisdiction of the
              Party to make such payment or do such act.

ARTICLE 2 - LICENSE.

2.1    GRANT.

       Subject to and conditioned upon the provisions of this Agreement,
       LICENSOR hereby grants to LICENSEE, and LICENSEE hereby accepts, a
       license ( the "LICENSE") in the Territory to make, have made, use and
       sell PRODUCTS under the LICENSED PATENTS and by using LICENSED KNOW-HOW
       and LICENSOR Improvements in the Field of Use.

              (i)    Subject to and conditioned upon the provisions of this
                     Agreement, the LICENSE granted pursuant to this Article 3
                     shall be exclusive (exclusive even as to LICENSOR) to
                     LICENSEE in the Field of Use. Without limiting the
                     generality of the foregoing, LICENSOR covenants that during
                     the term of this Agreement, neither LICENSOR nor its
                     Affiliates shall grant to any other Person any right,
                     license or privilege to make, have made, use or sell
                     PRODUCTS or to otherwise exploit LICENSOR Technology, or
                     any other Biological Matter or chemical substance (or any
                     derivative or formulation thereof), in the Field of Use.

              (ii)   For greater certainty, LICENSOR has and retains all rights
                     in and to the LICENSOR Technology outside the Field of Use
                     and LICENSEE has no rights in the LICENSOR Technology
                     outside the Field of Use.

2.2    LICENSEE'S RIGHTS TO SUBLICENSE.

              (i)    LICENSEE shall have the right, without obtaining the
                     further consent of LICENSOR, to sublicense in the Field of
                     Use all or any portion of the rights to the LICENSED
                     PATENTS, the LICENSED KNOW-HOW and LICENSOR Improvements
                     granted to it pursuant to this Agreement under the LICENSE
                     (i) to any of its Affiliates, and (ii) to any Person in any
                     country of the Territory without PMC's prior approval to
                     any third party unless such Person is well known as being
                     actively engaged in the business of researching,
                     developing, manufacturing and marketing immunoproteins at
                     the time the sublicense is contemplated, in which case the
                     grant of the sublicense to such a third party shall be
                     subject to PMC's prior approval in writing. Such approval
                     shall only be dependent upon PMC being reasonably satisfied
                     by the provision that DAS will propose to include in the
                     sublicense to, and only to, the effect that the Licensed
                     Technology may not be used and/or exploited by the
                     prospective

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       5

<PAGE>

                     sublicensee in the immunoproteine field. For that purpose,
                     DAS shall provide to PMC a draft along with its request.
                     PMC shall have fifteen (15) days to confirm in writing its
                     consent or state in writing the material reasons, made in
                     good faith, why such provision will not protect the
                     Licensed Technology from use as restricted in the previous
                     two sentences, in which case the parties will use their
                     best efforts to expedite negotiations of an appropriate
                     provision. PMC shall be deemed to have approved a request
                     by DAS pursuant to this Section 2.2, if PMC fails to
                     respond as provided hereunder within the fifteen (15)
                     period set forth above.

              No permitted Sublicensee pursuant hereto shall have the right to
              grant further sublicenses to any Third-Party.

              (ii)   LICENSEE agrees that all sublicenses granted by LICENSEE
                     hereunder shall expressly bind Sublicensees to the terms of
                     Article 9, "Confidentiality" and to all other relevant
                     provisions of this Agreement.

              In the event LICENSEE grants sublicenses to its Affiliates,
              LICENSEE shall pay royalties to LICENSOR as if Net Sales of the
              Sublicensees if such Sublicensees are Affiliates were Net Sales of
              LICENSEE and LICENSOR shall be expressly made a Third-Party
              beneficiary thereof.

              For all other Sublicenses to Third-Parties except for the
              standalone Sublicenses as specified herebelow, the amount of
              royalties paid by Sublicensee(s) to LICENSEE shall be included
              into the amount of Net Sales. It is understood between the
              parties, that LICENSOR will be paid by LICENSEE [***] that would
              be equivalent to what LICENSOR would have received if LICENSEE has
              been selling directly the PRODUCTS. Such percentage shall not
              exceed [***] of the amount of revenue actually received by
              LICENSEE.

              If LICENSEE grants a Sublicense to the LICENSED PATENTS to a
              third-party on a standalone basis, LICENSEE shall pay to PMC [***]
              of any incremental consideration that LICENSEE may receive from
              any Third-Party Sublicensee such as but not limited to license
              issue fees, milestone payments and royalties.

              (iii)  Any sublicenses granted by LICENSEE shall include a
                     requirement that the Sublicensee maintains records and
                     permit inspection on terms essentially identical to Section
                     6.2 hereof. At LlCENSOR's request, LICENSEE shall arrange
                     for an independent certified public accountant selected by
                     LICENSOR, and at LlCENSOR's cost, to inspect the records of
                     Sublicensees for the purpose of verifying royalties due to
                     LICENSOR and shall cause such accountant to report the
                     results thereof to LICENSOR.

              (iv)   Any sublicenses granted by LICENSEE shall provide for the
                     termination of the sublicense, or, if the Sublicensee is a
                     Third-Party, at the option of such Sublicensee, the
                     conversion to a license directly between such

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       6

<PAGE>

                     Sublicensee and LICENSOR, upon termination of this
                     Agreement under Article 10 (other than expiration under
                     Section 10.1 or a termination by LICENSEE further to a
                     breach by LICENSOR pursuant to Section 10.4). Such
                     conversion shall be subject to LlCENSOR's approval and
                     contingent upon acceptance by the Sublicensee of the
                     remaining provisions of this Agreement.

              (vi)   LICENSEE shall notify LICENSOR of each sublicense granted
                     to Third-Parties and shall provide LICENSOR with the name
                     and address of each Sublicensee and a description of the
                     PRODUCTS and territory covered by each sublicenses.

2.3    SUBLICENSES TO LICENSEE.

       To the extent LICENSED PATENTS have been, or shall be, licensed by
       LICENSOR from a Third-Party under an agreement with such Third-Party (a
       "Third-Party Licensee), LICENSEE understands and agrees as follows:

              (i)    The rights sub-licensed to LICENSEE by LICENSOR are subject
                     to the terms and conditions, restrictions, limitations and
                     obligations of the relevant Third-Party License that are
                     imposed upon LICENSOR;

              (ii)   LICENSEE shall comply with the terms and conditions,
                     restrictions, limitations and obligations of such
                     Third-Party License(s) to the extent LICENSEE has been
                     permitted to review such terms, conditions, restrictions,
                     limitations and obligations. LICENSOR shall give LICENSEE,
                     upon request, a reasonable opportunity to review the same
                     except to the extent that confidentiality obligations
                     towards Third-Parties may prevent LICENSOR from doing so.
                     In any event, LICENSOR shall act reasonably in advising
                     LICENSEE of the scope of LICENSEE's obligations pursuant to
                     any relevant Third Party License. LICENSOR represents and
                     warrants that, on the Effective Date, there are no Third
                     Party Licenses that apply to exploitation of the LICENSOR
                     Technology.

2.4    SUBCONTRACTING.

       Notwithstanding anything herein provided for to the contrary, LICENSEE
       shall be allowed to (i) sub-contract in whole or in part PRODUCTS
       development to Third-Parties such as, without limitation, clinical
       research organizations, (ii) appoint sales agents and distributors to
       market and distribute PRODUCTS and (iii) sub-contract manufacturing of
       PRODUCTS, or any part thereof, with Third-Parties or with LICENSEE's
       Affiliates including LICENSOR acting as toll manufacturer.

2.5  DISCLOSURE OF TECHNOLOGY.

       From time to time during the term of this Agreement, LICENSOR shall
       disclose or cause its Affiliates to disclose to LICENSEE such LICENSOR
       Technology as may be reasonably necessary to enable LICENSEE to develop,
       manufacture, commercialize and

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       7

<PAGE>

       otherwise exploit the PRODUCTS in the Field of Use on the terms and
       subject to the conditions of this Agreement. In addition, during the term
       of this Agreement, LICENSOR shall, upon LICENSEE's reasonable request and
       with adequate notice to LICENSOR, make available to LICENSEE at
       LICENSEE's or its Affiliates' manufacturing facilities or the facility of
       a Third Party manufacturer who shall have contracted with LICENSEE to
       manufacture PRODUCTS, LICENSOR's or LICENSOR Affiliate's Personnel to
       provide technical assistance to LICENSEE's Personnel, or LICENSEE
       Affiliates' Personnel or Third-Party manufacturer's Personnel. LICENSEE
       shall pay or have paid by its concerned Affiliates all reasonable travel
       costs incurred by LICENSOR or its Affiliates in connection with rendering
       such technical assistance. Such Personnel shall render such assistance at
       the facilities designated by LICENSEE for periods of not less than three
       continuous business days per visit. In addition, LICENSOR shall make it
       or its Affiliates Personnel reasonable available for telephone
       consultation, as requested by LICENSEE.

2.6  PROVISION OF RELATED ASSISTANCE.

       (i)    In support of LICENSEE'S development and commercialization of
              PRODUCTS, LICENSOR shall promptly and timely provide and prepare,
              upon reasonable request of DAS and free of charge, relevant
              sections pertaining to (i) IND, BLA, PLA and ELA supplements and
              other regulatory approvals required by the FDA and other
              Regulatory Authorities to commercially market and sell PRODUCTS to
              the public in the Territory, and, (ii) such information as
              LICENSEE or Regulatory Authorities may request in connection with
              (a) LICENSEE's preclinical studies, Phase I, II III and IV studies
              for PRODUCTS. LICENSOR shall promptly conduct such manufacturing
              process development studies (including but not limited to
              stability studies) as are reasonably requested by LICENSEE or
              required by Regulatory Authorities in order to fulfill its
              obligations under this Agreement, and to permit LICENSEE to
              expeditiously submit complete applications to obtain marketing
              (and earlier) approvals to commercially develop, market and sell
              PRODUCTS in the Territory.

       (ii)   LICENSOR represents and warrants, to the best of its knowledge,
              that the information, data and technical assistance provided to
              LICENSEE hereunder shall not contain any material fact or
              omission, and shall indemnify and hold LICENSEE harmless from any
              liability or damage (including reasonable attorneys' fees arising
              from a breach of the foregoing.)

2.7  COMMUNICATION AMONG PARTIES.

       Each of LICENSEE and LICENSOR shall appoint (a) specific individual(s)
       who shall be available and shall act as (a) liaison Person(s) to
       facilitate the day-to-day communications among the Parties. The names and
       addresses of the liaison Persons who shall act on behalf of each of the
       Parties shall be provided by each of the Parties to the other

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       8

<PAGE>

       immediately following the execution of this Agreement. Each of LICENSEE
       and LICENSOR agrees to notify the other in accordance with the terms of
       Section 16.1 of this Agreement in the event of a change in liaison
       Person.

2.8  IDENTIFICATION OF KNOW-HOW.

       The Parties agree that all information and Biological Materials comprised
       in the LICENSED KNOW-HOW to be transferred to LICENSEE pursuant to this
       Agreement shall be so transferred in the case of written information, by
       memoranda bearing the mention "Confidential", and, in the case of
       Biological Materials, by clearly marked and numbered containers. LICENSEE
       shall designate an individual who shall be responsible for receiving
       information and Biological Materials from LICENSOR and/or its Affiliates
       and the Parties agree that such information and Biological Materials
       shall in all cases (except where the Parties agree otherwise) be sent
       solely to the attention of such individual. Upon receipt of information
       and/or Biological Materials, the designated individual shall, on behalf
       of LICENSEE, send an acknowledgement to LICENSOR and/or its Affiliates
       confirming receipt of information and/or Biological Materials. The
       Parties agree that they shall in good faith work together to establish
       and maintain a system to record the transmission of information and/or
       materials under this Agreement and make all commercially reasonable
       efforts to ensure such system is followed.

2.9  CONFIDENTIALITY.

       All information transferred pursuant to this Agreement shall be deemed to
       be "Confidential Information" in accordance with Section 9.1 hereof.

ARTICLE 3 - DEVELOPMENT AND COMMERCIALIZATION.

3.1  DEVELOPMENT AND COMMERCIALIZATION EFFORTS.

       LICENSEE shall comply with all applicable good laboratory, clinical and
       manufacturing practices in the development and commercialization of
       PRODUCTS, and shall cause its Affiliates and subcontractors to do the
       same. LICENSEE shall be solely responsible for funding all costs incurred
       by LICENSEE for the development and commercialization of each PRODUCT.

3.2  DEVELOPMENT AND COMMERCIALIZATION REPORTS.

       During the term of this Agreement, LICENSEE shall keep LICENSOR
       reasonably informed as to the progress of the development of PRODUCTS by
       notifying LICENSOR of completion of PHASE III studies for each such
       PRODUCT (to the extent such studies are commenced and completed). All
       information disclosed by LICENSEE pursuant to this Section 4.2 shall be
       treated as LICENSEE Confidential Information subject to Article 8 hereof.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       9

<PAGE>

ARTICLE 4 - ROYALTIES AND MILESTONES.

4.1    EARNED ROYALTIES.

       During the Royalty Term, LICENSEE shall pay to LICENSOR a royalty as
       follows:

          (i)   during the [***]

                [***] percent of Net Sales of PRODUCTS.

          (ii)  As of the [***] and until the [***]:

                [***] of Net Sales of PRODUCTS on annual NET SALES below [***];

                [***] of Net Sales of PRODUCTS on annual NET SALES above [***]

          (iii) As of the [***] following the date of First Commercial Sale:
                [***]:

                [***] of Net Sales of PRODUCTS

                As of the [***] year, LICENSEE shall pay royalties in countries
                where there is no [***]; in all other cases, the LICENSE in any
                such country shall be royalty free).

4.2    SINGLE ROYALTY: NON-ROYALTY SALES.

       In no event shall more than one royalty be payable under Section 4.1.
       with respect to a particular unit of PRODUCTS. No royalty shall be
       payable under this Section 4 with respect to sales of PRODUCTS among
       LICENSEE and its Subsidiaries or Affiliates, or among Sublicensees and
       their respective Affiliates, or among LICENSEE and its Sublicensees,
       [***]. No royalty shall be payable for (i) PRODUCTS used in clinical
       trials, or (ii) PRODUCTS used by LICENSEE, its Affiliates or
       Sublicensees, for research, (iii) customary quantities of PRODUCTS
       distributed as free samples or (iv) reasonable quantities of PRODUCTS
       disposed by LICENSEE as donations to Third-Parties.

4.3    [***].

       In those cases where LICENSEE or its Affiliates sell PRODUCTS in bulk to
       a Third-Party, [***].

4.4    ROYALTY ADJUSTMENTS.

       The royalty due hereunder shall be reduced in the following circumstances
       and in the following manner:

          (i)   Where LICENSEE is required to obtain additional rights to make,
                use or sell PRODUCTS and to pay a third party a royalty in order
                to obtain such

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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<PAGE>

                rights, the royalty hereunder shall be reduced by an amount
                [***] to the third party until such time as (a) [***], or (b)
                [***].

          (ii)  At any time (and only for such time) that the sum of (a) the
                royalty due hereunder for PRODUCTS, and (b) the transfer price
                for PMC Product due LICENSOR pursuant to that certain
                Manufacturing and Supply Agreement between the Parties, dated of
                even date herewith (the "Combined Price"), [***] (referred to as
                the "Margin"), the royalty on such PRODUCT shall be suspended.
                Thereafter, LICENSEE shall not owe any royalty on PRODUCTS until
                the Combined Price is less than the Margin, and then only to the
                extent of the difference between the Combined Price and the
                Margin.

          (iii) With respect to any PRODUCTS that are not manufactured by
                LICENSOR (whether through termination of the Manufacturing and
                Supply Agreement, force majeure or otherwise), the royalty due
                for such PRODUCTS shall be [***] of the Net Sales received on
                the sales of the PRODUCTS manufactured by the Third-Party. For
                the avoidance of doubt, LICENSEE shall pay LICENSOR the
                royalties mentioned in Section 4.1 of the Net Sales received on
                the PRODUCTS manufactured by LICENSOR.

ARTICLE 5 - ROYALTY REPORTS AND ACCOUNTING.

5.1    REPORTS, EXCHANGE RATES.

       During the term of this Agreement following the First Commercial Sale,
       LICENSEE shall furnish to LICENSOR, with respect to each Calendar
       Quarter, a written report showing in reasonably specific detail, for the
       European Union, North America, and the rest of the Territory,
       respectively: (a) the gross sales of PRODUCTS sold by LICENSEE, its
       Affiliates and its Sub-licensees in the Territory during the
       corresponding Calendar Quarter and the calculation of Net Sales from such
       gross sales; (b) the royalties payable in United States dollars, if any,
       which shall have accrued hereunder based upon Net Sales of PRODUCTS; (c)
       the withholding taxes, if any, required by law to be deducted in respect
       of such royalties; (d) the date of the First Commercial Sale of PRODUCTS
       having occurred in each country in the Territory during the corresponding
       Calendar Quarter; and (e) the exchange rates used in determining the
       royalty amount expressed in United States dollars.

       With respect to sales (if any) of PRODUCTS invoiced in United States
       dollars, the gross sales, Net Sales, and royalties payable shall be
       expressed in United Sates dollars. With respect to sales of PRODUCTS
       invoiced in a currency other than United Sates dollars, the gross sales,
       Net Sales and royalties payable shall be expressed in the currency of the
       invoice issued by the Party making the sale together with the United
       States dollars equivalent of the royalty payable, calculated using the
       rate of exchange published in the Wall Street Journal for such currency
       on the last business day of the concerned Calendar Quarter. Reports and
       payments shall be due [***]. LICENSEE shall keep complete and

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       11

<PAGE>

       accurate records in sufficient detail to properly reflect all gross sales
       and Net Sales and to enable the royalties payable hereunder to be
       determined.

5.2    AUDITS.

5.2.1. Upon the written request of LICENSOR and not more than once in each
       calendar year, LICENSEE shall permit an independent certified public
       accounting firm of internationally recognized standing, selected by
       LICENSOR and reasonably acceptable to LICENSEE, at LlCENSOR's expense, to
       have access during normal business hours to such of the records of
       LICENSEE as may be reasonably necessary to [***]. The accounting firm
       shall disclose to LICENSOR only whether the records are correct or not
       and the specific details concerning any discrepancies. No other
       information shall be shared.

5.2.2. If such accounting firm concludes that additional royalties were owed
       during such period, LICENSEE shall pay the [***] LICENSOR delivers to
       LICENSEE such accounting firm's written report so concluding. The fees
       charged by such accounting firm shall be paid by LICENSOR; provided,
       however, if the audit discloses that the royalties payable by LICENSEE
       for the audited period are more than [***] actually paid for such period,
       then LICENSEE shall pay the reasonable fees and expenses charged by such
       accounting firm.

5.2.3. LICENSEE shall include in each permitted sublicense granted by it
       pursuant to the Agreement a provision requiring the SUBLICENSEE to make
       reports to LICENSEE, to keep and maintain records of sales made pursuant
       to such sublicense and to grant access to such records by LlCENSOR's
       independent accountant to the same extent required with respect to
       LICENSEE's records under this Agreement.

5.2.4. Except in the case of circumstances which would have prevented an error
       or anomaly from being disclosed during the audit hereabove mentioned,
       such as fraud or other failure to provide accurate information, upon the
       expiration of [***] following the end of any calendar year, the
       calculation of royalties payable with respect to such year shall be
       binding and conclusive upon LICENSOR, and LICENSEE, its Affiliates and
       Sublicensees shall be released from any liability or accountability with
       respect to royalties for such year.

5.3    CONFIDENTIAL FINANCIAL INFORMATION.

       LICENSOR shall treat all financial information subject to review under
       this Article 5 or under any sublicense agreement as confidential, and
       shall cause its accounting firm to retain all such financial information
       in confidence.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       12

<PAGE>

ARTICLE 6 - PAYMENTS.

6.1    PAYMENT TERM.

       Royalties shown to have accrued by each royalty report provided for under
       Article 4 of this Agreement shall be due [********]. Payment of royalties
       in whole or in part may be made in advance of such due date.

6.2    PAYMENT METHOD.

       All payments by LICENSEE to LICENSOR under this Agreement shall be paid
       in United States dollars, and all such payments shall be made without
       deduction of bank transfer fees by bank wire transfer in immediately
       available funds to the following bank account:

       [********]

6.3    WITHHOLDING TAXES.

       Royalties shall be paid by LICENSEE to LICENSOR, after deduction of any
       applicable withholding taxes. Prior to any payment by LICENSEE to
       LICENSOR, LICENSEE shall provide to LICENSOR any forms required to attest
       LlCENSOR's fiscal domiciliation in order to allow LICENSEE to claim
       application of the reduced rate of withholding tax provided for in any
       applicable bilateral fiscal convention. LICENSOR shall promptly return
       such forms to LICENSEE. In the event LICENSOR fails to promptly return
       such forms duly filled and signed, LICENSEE shall declare and pay
       withholding tax at the common law rate of the applicable corporate income
       tax, and such tax shall then be deducted from the corresponding payment
       by LICENSEE to LICENSOR. LICENSEE shall pay withholding tax to the proper
       taxing authority and proof of payment of such tax shall be secured and
       sent to LICENSOR as evidence of such payment. If, in the opinion of
       either Party, the provisions of this Section become extremely burdensome,
       the Parties agree to meet and discuss such other options as may be
       available to them.

ARTICLE 7 - INVENTIONS AND PATENTS.

7.1    OWNERSHIP OF INVENTIONS.

       The entire right and title to technology, whether or not patentable, and
       any patent applications or patents based thereon, made or conceived
       during the term of this Agreement which directly relates to and are not
       severable from LICENSOR Technology and which are Improvements thereto
       and/or more generally relate to PRODUCT (a) by employees or others acting
       solely on behalf of LICENSOR or its Affiliates shall be

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       owned solely by LICENSOR (the LICENSOR Improvements" as more fully
       defined in Article 1 hereof), (b) by employees or others acting solely on
       behalf of LICENSEE or its Affiliates shall be owned solely by LICENSEE
       and (c) by both employees or others acting on behalf of LICENSEE or its
       Affiliates, and employees or others acting on behalf of LICENSOR and its
       Affiliates shall be jointly owned by LICENSEE and LICENSOR.

       LICENSOR and LICENSEE each hereby represents that all employees and other
       Persons acting on its behalf in performing its obligations under this
       Agreement shall be obligated under a binding written agreement to assign
       to it, or as it shall direct, all Improvements conceived or reduced to
       practice by such employees or other Persons.

7.2    PATENT PROSECUTION AND MAINTENANCE.

       LICENSED PATENTS. LICENSOR shall be responsible for and shall control the
       preparation, filing, prosecution, grant and maintenance of all LICENSED
       PATENTS. LICENSOR shall prepare, file, prosecute and maintain such
       LICENSED PATENTS in good faith consistent with its customary patent
       policy and its reasonable business judgement, and shall consider in good
       faith the interests of LICENSEE in so doing.

       JOINT INVENTIONS. As to any joint inventions made by the Parties during
       the term of this Agreement, LICENSEE shall have the first right to file
       patent applications with respect to such inventions in the name of both
       Parties. LICENSEE may elect not to file and if it does so, LICENSOR shall
       have the right to file the patent application in the name of both
       Parties. In each case regarding joint inventions, the filing Party shall
       give the non-filing Party an opportunity to review the text of the
       application before filing, shall consult with the non-filing Party with
       respect thereto and shall supply the non-filing Party with a copy of the
       applications as filed, together with notice of its filing date and serial
       number and [***] the out-of-pocket costs and expenses of the filing Party
       shall be reimbursed by the other Party. Both Parties shall keep the other
       advised of the status of actual and prospective patent application
       filings and upon request, provide advanced copies of any documents
       related to such filings and thereafter to the prosecution and maintenance
       of all patent applications and patents.

       COSTS. With respect to all filings hereunder, the filing Party shall be
       responsible for payment of all costs and expenses related to such
       filings, prosecution and maintenance, unless relieved of same pursuant to
       Section 7.3 hereinafter, and except for jointly owned patents, for which
       [***] of all such costs and expenses shall be reimbursed to the filing
       Party by the other Party.

7.3    OPTION TO PROSECUTE AND MAINTAIN PATENTS.

       LICENSOR shall give notice to LICENSEE of any intention to cease
       prosecution and/or maintenance, or not to proceed with an extension, of
       LICENSED PATENTS and, in such case, shall permit LICENSEE, at LICENSEE's
       sole discretion, to continue prosecution or maintenance or proceed with
       the extension at its own expenses. If LICENSEE elects to continue
       prosecution or maintenance or to proceed with the extension, LICENSOR
       shall execute such documents and perform such acts at LICENSEE's expense
       as may be

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       reasonably necessary to effect an assignment of such LICENSED PATENTS to
       LICENSEE in a timely manner, and more generally to permit LICENSEE to
       continue such prosecution and maintenance or to proceed with the
       extension. Any patents and patent applications so assigned shall not be
       considered as LICENSED PATENTS as of the date of such assignment. No
       royalties shall be payable by LICENSEE on sales of PRODUCTS covered only
       by a Valid Patent Claim of a LICENSED PATENT which has been assigned to
       LICENSEE pursuant to this Section 7.3.

7.4    INTERFERENCE, OPPOSITION, REEXAMINATION AND REISSUE.

              (i)    The Parties shall use their respective best efforts to
                     within [***] of learning of any interference, opposition,
                     reexamination or reissue event, inform the other Party of
                     any request for, or filing or declaration thereof relating
                     to LICENSED PATENTS. The Parties shall thereafter consult
                     and cooperate fully to determine the course of action with
                     respect to any such proceeding. Both Parties shall have the
                     right to review and comment on any submission to be made in
                     connection with any such proceeding.

              (ii)   LICENSOR shall not institute any reexamination or reissue
                     proceeding relating to LICENSED PATENTS without having
                     first consulted LICENSEE.

              (iii)  In connection with any interference, opposition, reissue or
                     reexamination proceeding relating to LICENSED PATENTS, the
                     Parties shall cooperate fully and shall provide each other
                     with any information or assistance that either Party may
                     reasonably request. LICENSOR shall keep LICENSEE informed
                     of developments in any such action or proceeding,
                     including, to the extent permissible, the status of any
                     settlement negotiations and the terms of any offer related
                     thereto.

              (iv)   LICENSOR shall bear the expense of any interference,
                     opposition, reexamination or reissue proceeding relating to
                     LICENSED PATENTS.

7.5    ENFORCEMENT AND DEFENSE.

              (i)    Each Party shall give the other notice of either (a) any
                     infringement of LICENSED PATENTS, or (b) any
                     misappropriation or misuse of LICENSED KNOW-HOW that has
                     come to its attention. The Parties shall thereafter consult
                     and cooperate fully to determine a course of action,
                     including but not limited to the commencement of legal
                     action by either or both Parties to terminate any
                     infringement of LICENSED PATENTS or any misappropriation or
                     misuse of LICENSED KNOW-HOW.

              (ii)   In the event that LICENSED PATENTS are infringed by any
                     Third-Party with respect to a PRODUCT in the Field of Use,
                     LICENSEE, upon notice to LICENSOR, shall for a period of
                     [***] have the first right, but not the obligation, to
                     institute and prosecute any action or proceeding under
                     LICENSED PATENTS with respect to such infringement, by
                     counsel of

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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                     its choice, or to control the defense of any declaratory
                     judgment action arising from such infringement or from the
                     misappropriation or misuse of LICENSED KNOW-HOW, at its own
                     expense and in the name of both Parties. LICENSEE shall not
                     otherwise settle, compromise or take any action in such
                     litigation which diminish, limit or inhibit the scope,
                     validity or enforceability of LICENSED PATENTS without the
                     express permission of LICENSOR. LICENSEE shall keep
                     LICENSOR advised of the progress of such proceedings.

              (iii)  In the event that a Third-Party is infringing any LICENSED
                     PATENTS with respect to a PRODUCT in the Field of Use and
                     LICENSEE does not elect to institute an action, LICENSOR,
                     upon notice to LICENSEE, shall have the right, but not the
                     obligation, to institute and prosecute any action or
                     proceeding under LICENSED PATENTS with respect to such
                     infringement, by counsel of its choice, or to control the
                     defense of any declaratory judgment action arising from
                     such infringement or from the misappropriation or misuse of
                     LICENSED KNOW-HOW, at its own expense and in the name of
                     both Parties. LICENSOR shall not settle, compromise or take
                     any action in such litigation which diminish, limit or
                     inhibit the scope, validity or enforceability of LICENSED
                     PATENTS without the prior approval of LICENSEE, which shall
                     not be unreasonably withheld.

              (iv)   With respect to any action to terminate any infringement of
                     LICENSED PATENTS or any misappropriation or misuse of
                     LICENSED KNOW-HOW, the Parties shall cooperate fully and
                     shall provide each other with any information and
                     assistance that either Party may reasonably request. In
                     particular, either Party shall execute such documents
                     necessary for the other Party to initiate and prosecute the
                     action or proceeding and cause its Affiliates, Sublicensees
                     and LICENSEE to execute all such documents, if required. In
                     the event that either Party is unable to initiate or
                     prosecute an action solely in its own name, the other Party
                     shall then join such action voluntarily. Each Party shall
                     keep the other informed of the development of any action or
                     proceeding including, to the extent permissible by law, the
                     status of any settlement negotiations and the terms of any
                     offer related thereto.

              (v)    Any recovery obtained by either or both Parties in
                     connection with or as a result of any action or proceeding
                     contemplated by this Section 8.3, whether by settlement or
                     otherwise, shall be allocated in order as follows:

                     (a)    The Party which initiated and prosecuted the action
                            shall recoup all of its costs and expenses incurred
                            in connection with the action (provided that if
                            LICENSEE was the initiating Party and that the
                            action proceeds were not sufficient for LICENSEE to
                            recoup all its costs and expenses, then LICENSEE
                            shall be allowed to deduct the

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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                            balance of its unrecovered costs and expenses from
                            royalties payable to LICENSOR under Article 4
                            hereof);

                     (b)    The other Party shall then, to the extent possible,
                            recover its costs and expenses incurred in
                            connection with the action; and

                     (c)    The amounts of any recovery remaining shall then be
                            allocated between the Parties with LICENSEE
                            receiving all amounts in respect of damages in the
                            Field of Use and LICENSOR receiving all amounts in
                            respect of damages out of the Field of Use, except
                            that any amounts recovered in connection with
                            infringement actions relating to jointly-owned
                            patents shall be equally shared between the Parties.

              (vi)   LICENSOR shall inform LICENSEE of any certification
                     regarding any LICENSED PATENTS it has received pursuant to
                     21 United States Code Sections355(b)(2)(A)(iv) or
                     (j)(2)(A)(vii)(lV), or any similar provision in other
                     countries, and shall provide LICENSEE with a copy of such
                     certification within [***] of receipt. Both Parties rights
                     with respect to the initiation and prosecution of any legal
                     action as a result of such certification or any recovery
                     obtained as a result of such legal action shall be as
                     defined in paragraphs (a) to (c) of this Section 7.6.

7.6    NOTICE OF PATENT EVENTS.

       LICENSOR shall promptly give notice to LICENSEE of the grant, lapse,
       revocation, surrender or invalidation of any LICENSED PATENTS.

7.7    PATENT TERM RESTORATION.

       LICENSOR shall notify LICENSEE of (a) the issuance of each U.S. patent
       included within the LICENSED PATENTS, giving the date of issue and patent
       number for each such patent, and (b) each notice pertaining to any patent
       included within the LICENSED PATENTS which it receives as patent owner
       pursuant to the United Sates Drug Price Competition and Patent Term
       Restoration Act of 1984 (hereinafter called the "Act"), including notices
       pursuant to Sections 101 and 103 of the Act from Persons who have filed a
       biological license application ("BLA") or an abbreviated new drug
       application ("ANDA"), whichever is applicable. Such notices shall be
       given promptly, but in any event within five (5) calendar days of each
       such patent's date of issue or receipt of each such notice pursuant to
       the Act, whichever is applicable. LICENSOR shall notify LICENSEE of each
       filing for patent term restoration under the Act, any allegations of
       failure to show due diligence and all awards of patent term restoration
       (extensions) with respect to the LICENSED PATENTS.

       Likewise, LICENSOR or LICENSEE, as the case may be, shall inform the
       other Party of patent extensions and periods of data exclusivity in the
       rest of the world regarding any PRODUCTS and more generally the Parties
       shall diligently cooperate with respect to any procedures for patent and
       period of data exclusivity extensions, such as but not limited to

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       Supplementary Protection Certificates, the above-mentioned Patent Term
       Restoration and corresponding GATT regulations.

ARTICLE 8 - GENERAL PROVISIONS.

8.1    CONFIDENTIALITY.

       (a)    -GENERAL

       Except as expressly set forth in this Section 8, each party shall cause
       its respective Affiliates, officers, directors, employees, agents and
       subcontractors (collectively, "Representatives") to keep confidential any
       and all technical, commercial, scientific and other data, processes,
       documents or other information (whether in oral form and identified as
       confidential within 30 days after the date of disclosure, or if written
       form, if marked as "confidential" at the time of disclosure) or physical
       object (including, without limitation, intellectual property, marketing
       data, agreements between any party and a third-party, license
       applications, and business plans and projections of any party ) that have
       been marked as "confidential" at the time of disclosure) acquired from
       the other party (the "Other Party"), its Affiliates or its
       Representatives after the Effective Date ("Confidential Information"),
       and each party shall not disclose directly or indirectly, and shall cause
       its Representatives not to disclose directly or indirectly, any
       Confidential Information to anyone outside such Person, in the case of
       LICENSEE, its Sublicensees, and each of their Affiliates and their
       respective Representatives, except that the foregoing restriction shall
       not apply to any information disclosed hereunder to any party, if such
       Person (the "Receiving Person") can demonstrate that such Confidential
       Information:

              (i)    is or hereafter becomes generally available other than by
                     reason of any breach or default by the Receiving Person,
                     any of its Affiliates or any Representative of the
                     foregoing with respect to a confidentiality obligation
                     under this Agreement;

              (ii)   was already known to the Receiving Person or such affiliate
                     or Representative;

              (iii)  is disclosed to the Receiving Person or such affiliate or
                     Representative by a third party who has the right to
                     disclose such information;

              (iv)   is independently developed by the Receiving Person;

              (v)    based on such Person's good faith judgement with the advice
                     of counsel, is otherwise required to be disclosed in
                     compliance with applicable legal requirements to a public
                     authority.

       Whenever the Receiving Person becomes aware of any state of facts which
       would or might result in disclosure of Confidential Information pursuant
       to subparagraph (v) above, it shall, if possible, promptly notify the
       Person making disclosure "Disclosing Person") prior to any such
       disclosure so that the Disclosing Person may seek a protective

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       order or other appropriate remedy and/or waive compliance with the
       provisions of this Agreement.

       In any event, if the Receiving Person is unable to promptly notify the
       Disclosing Person or if such protective order or other remedy is not
       obtained, or if the Disclosing Person waives compliance with the
       provisions of this Agreement, the Receiving Person will furnish only that
       portion of the information which it is advised by counsel is legally
       required and will exercise reasonable efforts to obtain assurance that
       confidential treatment will be accorded the Confidential Information.

       Each party shall be entitled, in addition to any other right or remedy it
       may have, at law or in equity, to an injunction, without the posting of
       any bond or other security except as required by the relevant laws,
       enjoining or restraining any other party from any violation or threatened
       violation of this Section 8.1.

       (b)    -USE OF CONFIDENTIAL INFORMATION

              Each party agrees that no Confidential Information shall:

              (i)    be used in its own business except as necessary to exercise
                     the rights and obligations of such Party under this
                     Agreement;

              (ii)   be assigned, licensed, sublicensed, marketed, transferred
                     or loaned, directly or indirectly to any third party other
                     than a Representative or an Affiliate Representative of
                     such party, except as necessary or contemplated for the
                     exercise of the rights and obligations of the Parties under
                     this Agreement;

              The obligations set forth in this Section 8.1 shall extend to
              copies, if any, of Confidential Information made by any
              Representatives referred to in paragraph (a) and to documents
              prepared by such Persons which embody or contain Confidential
              Information.

       (c)    -PROTECTION OF CONFIDENTIAL INFORMATION

              Each party shall deal with Confidential Information so as to
              protect it from disclosure with a degree of care not less than
              that used by it in dealing with its own information intended to
              remain exclusively within its knowledge and shall take reasonable
              steps to minimize the risk of disclosure of Confidential
              Information which shall include, without limitation, ensuring that
              only those Persons who have a bona fide need to know such
              Confidential Information for purposes permitted or contemplated by
              this Agreement shall have access thereto. Each party, shall notify
              all of its Representatives who have access to Confidential
              Information of its confidentiality and the care therefor required,
              and shall obtain from any Affiliate or any agent or subcontractor
              who is a Representative that is permitted access to such
              Confidential Information in accordance with this Section 8.1, an
              agreement of confidentiality incorporating the restrictions set
              forth herein.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       (d)    -SURVIVAL OF OBLIGATIONS

              The obligations set forth in this Section 8.1 shall survive the
              termination of this Agreement for a period of [***].

       (e)    -RETURN OF CONFIDENTIAL INFORMATION

              Within thirty (30) days after the termination of this Agreement,
              the Receiving Person shall (and shall cause its Affiliates'
              Representatives and its Affiliates to) return to the Disclosing
              Person or destroy all related documents and tangible items then in
              its possession which it has received from the Disclosing Person or
              any affiliate or Representative thereof pertaining, referring or
              relating to the Disclosing Person's Confidential Information, as
              well as all copies, summaries, records, descriptions,
              modifications, and duplications that it, or any of its Affiliates
              or Representatives, has made from the documents or tangible items
              received from the Disclosing Person or any affiliate or
              Representative thereof; provided, however, that the Receiving
              Person may retain one copy of each document in its legal files
              solely to permit the Receiving Person to continue to comply with
              its obligations hereunder and, in addition, may upon notice to the
              Disclosing Person, retain in its legal files or in the office of
              outside legal counsel one copy of any document solely for use in
              any pending legal proceeding to which such document relates.
              Notwithstanding the foregoing, this provision shall not apply with
              respect to Confidential Information obtained from LICENSOR that is
              comprised of LICENSOR KNOW-HOW, in the event of expiration of the
              Agreement in accordance with its terms or termination of this
              Agreement for breach by LICENSOR.

8.2    TERM AND TERMINATION.

8.2.1. EXPIRATION.

       Unless terminated earlier pursuant to this Article 8, the Agreement shall
       expire on the [***] under the Agreement in accordance with the Section 4
       of this Agreement.

8.2.2. TERMINATION BY LICENSEE.

       LICENSEE shall have the right at any time, in its sole discretion, to
       terminate this Agreement, by giving not less than [***] prior written
       notice to LICENSOR of such termination.

8.2.3. TERMINATION FOR CAUSE.

              (i)    Either Party may terminate this Agreement, at its option,
                     upon or after the breach of any material provision of the
                     Agreement by the other Party, if such breaching Party has
                     not cured such breach within [***] after written notice
                     thereof from the other Party.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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             (ii)    LICENSEE or LICENSOR may terminate this Agreement upon
                     written notice to the other party if the other party makes
                     a general assignment for the benefit of creditors, is the
                     subject of proceedings in voluntary or involuntary
                     bankruptcy or has a receiver or trustee appointed for
                     substantially all of its property; PROVIDED that in the
                     case of an involuntary bankruptcy proceeding such right to
                     terminate shall only become effective if the other party
                     consents thereto or such proceeding is not dismissed within
                     [***] after the filing thereof.

            (iii)    Each of the parties hereto acknowledges and agrees that
                     this Agreement (i) constitutes a license of Intellectual
                     Property (as such term is defined in the United States
                     Bankruptcy Code, as amended (the "Code"), and (ii) is an
                     executory contract, with significant obligations to be
                     performed by each party hereto. The parties agree that
                     LICENSEE as LICENSEE may fully exercise all of its rights
                     and elections under the Code, including, without
                     limitation, those set forth in Section 365 (n) of the Code.
                     The parties further agree that, in the event that LICENSEE
                     elects to retain its rights as a licensee under the Code,
                     LICENSEE shall be entitled to complete access to the
                     LICENSOR Technology licensed to it hereunder and all
                     embodiments of such technology. Such embodiments of the
                     LICENSOR Technology shall be delivered to LICENSEE not
                     later than (a) the commencement of bankruptcy proceedings
                     against LICENSOR, unless LICENSOR elects to perform its
                     obligations under the Agreement, or (b) if not delivered
                     under (a) above, upon the rejection of the Agreement by or
                     on behalf of LICENSOR.

8.2.4. EFFECT OF EXPIRATION AND TERMINATION.

       Expiration or termination of the Agreement shall not relieve the Parties
       of any obligation accruing prior to such expiration or termination.

8.3    FORCE MAJEURE.

       No Party (or any of its Affiliates) shall be held liable or responsible
       to the other Party (or any of its Affiliates) nor be deemed to have
       defaulted under or breached the Agreement for failure or delay in
       fulfilling or performing any term of the Agreement when such failure or
       delay is caused by or results from causes beyond the reasonable control
       of the affected Party (or any of its Affiliates) including but not
       limited to fire, floods, embargoes, war, acts of war (whether war be
       declared or not), insurrections, riots, civil commotions, strikes,
       lockouts or other labor disturbances, acts of God or acts, omissions or
       delays in acting by any governmental authority or the other Party
       (collectively, "Events of Force Majeure"); provided, however, that the
       affected Party (i) shall immediately notify the other Party of the
       occurrence of any such Event of Force Majeure and (ii) shall exert all
       reasonable efforts to eliminate, cure or overcome any such Event of Force
       Majeure and to resume performance of its covenants with all possible
       speed; and provided, further, that nothing contained herein shall require
       any Party to settle on terms unsatisfactory to such Party any strike,
       lockout or other labor difficulty, any investigation

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       or proceeding by any governmental authority or any litigation by any
       Third-Party. Notwithstanding the foregoing, to the extent that an
       Event of Force Majeure continues for a period in excess of [***] the
       affected Party shall promptly notify in writing the other Party of
       such Event of Force Majeure and [***] of the other Party's receipt of
       such notice, the Parties agree to negotiate in good faith either (i)
       to resolve the Event of Force Majeure, if possible, (ii) to extend by
       mutual agreement the time period to resolve, eliminate, cure or
       overcome such Event of Force Majeure, (iii) to amend this Agreement to
       the extent reasonably 'possible, or (iv) to terminate this Agreement.

8.4    ASSIGNMENT.

       This Agreement may not be assigned or otherwise transferred, nor, except
       as expressly provided hereunder, may any right or obligations hereunder
       be assigned or transferred to any Third-Party by either Party without the
       consent of the other Party; PROVIDED, HOWEVER, that either Party may,
       without such consent, assign this Agreement and its rights and
       obligations hereunder to any of its Affiliates or in connection with the
       transfer or sale of all or substantially all of its business, or in the
       event of its merger or consolidation or change in control or similar
       transaction. Any permitted assignee shall assume all obligations of its
       assignor under this Agreement. Without limiting the generality of the
       foregoing, without the prior written consent of LICENSEE, LICENSOR shall
       not under any circumstances assign or transfer any LICENSOR Technology
       unless (i) all of the rights and obligations of LICENSOR under this
       Agreement are assigned to the same transferee(s) concurrently therewith,
       and (ii) such transferee(s) expressly assume(s) in writing the
       performance of all terms and conditions of this Agreement to be performed
       by LICENSOR and such assignment shall not relieved the assignor of any of
       its obligations under this Agreement. Each Party acknowledges that the
       other Party would suffer irreparable injury in the event of any breach of
       this Article 8 and that therefore the remedy at law for any breach or
       threatened breach hereof by any Party shall be inadequate. Accordingly,
       upon a breach or threatened breach hereof by any Party, the other Party
       shall, in addition and without prejudice to any other rights and remedies
       it may have, be entitled as a matter of right, without proof of actual
       damages, to seek specific performance hereof and to such other injunctive
       or equitable relief to enforce, or prevent any violations (whether
       anticipatory, continuing or future) hereof.

8.5    ADVERSE EXPERIENCE REPORTING.

       During the term of the Agreement, each Party shall notify the other
       immediately of any information (howsoever obtained and from whatever
       source) concerning any unexpected side effect, injury, toxicity or
       sensitivity reaction, or any unexpected incidence, and the severity
       thereof, associated with the clinical uses, studies, investigations,
       tests and marketing of a PRODUCTS. For purposes of this Section 8.5,
       "unexpected" shall mean (x) for a nonmarketed PRODUCTS, an experience
       that is not identified in nature, severity or frequency in the current
       clinical investigator's confidential information brochure, and (y) for a
       marketed PRODUCTS, an experience which is not listed in the current
       labeling for such PRODUCTS, and includes an event that may be
       symptomatically and patho-physiologically related to an event listed in
       the labeling but differs from the event because of increased frequency or
       greater severity or specificity. Each Party further shall

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

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       immediately notify the other of any information received regarding any
       threatened or pending action by an agency which may affect the safety
       and efficacy claims of a Product. Upon receipt of any such
       information, the Parties shall consult with each other in an effort to
       arrive at a mutually acceptable procedure for taking appropriate
       action; provided, however, that nothing contained herein shall be
       construed as restricting either Party's right to make a timely report
       of such matter to any government agency or take other action that it
       deems to be appropriate or required by applicable law or regulation.

8.6    SEVERABILITY.

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

8.7    MISCELLANEOUS.

8.7.1. NOTICES.

       Any consent, notice or report required or permitted to be given or made
       under this Agreement by one of the Parties hereto to the other shall be
       in writing, delivered Personally or by facsimile (and promptly confirmed
       by Personal delivery, first class air mail or courier), first class air
       mail or courier, postage prepaid (where applicable), addressed to such
       other Party at its address indicated below, or to such other address as
       the addressee shall have last furnished in writing to the addressor and
       (except as otherwise provided in this Agreement) shall be effective upon
       receipt by the addressee.

       IF TO LICENSOR:

       LICENSOR

       Pasteur Merieux Serums & Vaccins
       58 avenue Leclerc
       69007 Lyon, France
       Attention: General Counsel
       Telefax: 33.4.37.37.70.61
       Telephone: 33.4.37.37.01.00

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       23

<PAGE>

       IF TO LICENSEE:

       LICENSEE

       1430 O'Brien Drive, suite E,
       Menlo Park, CA 94025
       USA
       Attention: CEO
       Telefax: 650.462.1000
       Telephone: 650.462.1003

8.7.2. APPLICABLE LAW.

       The Agreement shall be governed by and construed in accordance with the
       laws of State of California without regard to the conflict of law
       principles thereof.

8.7.3. REPRESENTATIONS, WARRANTIES AND COVENANTS.

8.7.3.1 REPRESENTATIONS AND WARRANTIES OF LICENSEE.

       (a)    LICENSEE is a corporation duly organized and existing under the
              laws of the State of California, with the corporate power to own,
              lease and operate its properties and to carry on its business as
              now conducted.

       (b)    LICENSEE has all necessary corporate power and authority to enter
              into this Agreement and to consummate the transactions
              contemplated hereby.

       (c)    The execution, delivery or performance of this Agreement will not
              conflict with or result in a breach of, or entitle any party
              thereto to terminate, any material agreement or instrument to
              which LICENSEE is a party, or by which any of its assets or
              properties is bound.

       (d)    This Agreement has been duly authorized, executed and delivered by
              LICENSEE and constitutes a legal, valid and binding agreement of
              LICENSEE, enforceable against LICENSEE in accordance with its
              terms, except as enforceability may be limited by bankruptcy,
              insolvency, moratorium, reorganization or other similar laws
              affecting creditors' rights generally.

8.7.3.2 REPRESENTATIONS, WARRANTIES AND COVENANTS OF LICENSOR.

       (a)    LICENSOR is a corporation duly incorporated and validly existing
              as a corporation in good standing under the laws of France with
              the corporate power to own, lease and operate its properties and
              to carry on its business as now conducted.

       (b)    LICENSOR has all necessary corporate power and authority to enter
              into this Agreement and to consummate the transactions
              contemplated hereby.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       24

<PAGE>

       (c)    The execution, delivery and performance of this Agreement by
              LICENSOR does not conflict with or contravene its certificate of
              incorporation or by-laws, nor will the execution, delivery or
              performance of this Agreement conflict with or result in a breach
              of, or entitle any party thereto to terminate, any agreement or
              instrument to which LICENSOR is a party, or by which any of its
              assets or properties is bound.

       (d)    This Agreement has been duly authorized, executed and delivered by
              LICENSOR and constitutes a legal, valid and binding agreement of
              LICENSOR, enforceable against LICENSOR in accordance with its
              terms, except as enforceability may be limited by bankruptcy,
              insolvency, moratorium, reorganization or other similar laws
              affecting creditors' rights generally.

       (e)    All LICENSED PATENTS listed on Schedule A as amended from time to
              time have been registered in, filed in or issued by the
              appropriate patent offices of each jurisdiction as indicated on
              such Schedule A, and in each case is currently in effect and all
              maintenance fees and renewals thereof have been duly made with
              respect thereto. LICENSOR owns or has full and exclusive rights to
              use and exploit under licenses (and to license or sublicense) all
              its rights under such LICENSED PATENTS and the LICENSED KNOW-HOW.
              There have been no material claims made against LICENSOR asserting
              the invalidity or non-enforceability of, or with respect to such
              LICENSED PATENTS, the misuse of such LICENSED PATENTS or the
              LICENSED KNOW-HOW, nor is LICENSOR aware that any such claims
              exist. LICENSOR has not received a notice of conflict of such
              LICENSED PATENTS or the LICENSED KNOW-HOW with the asserted rights
              of others, or otherwise challenging its rights to use any of such
              LICENSED PATENTS, or the LICENSED KNOW-HOW. None of the rights of
              LICENSOR under the LICENSED PATENTS or LICENSED KNOW-HOW shall be
              adversely affected by the execution, delivery or performance of
              this Agreement, or the consummation of the transaction
              contemplated herein. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN
              THIS SECTION, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS
              ANY WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED, INCLUDING
              BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
              PARTICULAR PURPOSE, OR VALIDITY OF ANY PATENT RIGHTS PENDING.

8.7.4. DISPUTE RESOLUTION.

       Any and all disputes arising in connection with this Agreement that will
       not be solved on an amicable basis between the parties shall be finally
       settled by arbitration under the Rules of Conciliation and Arbitration of
       the International Chamber of Commerce, rules that the Parties recognize
       that they know. The arbitration shall be conducted in Paris, France, in
       English by one arbitrator if the dispute involves a claim of damage of
       and [***] appointed in accordance with the said rules. The arbitrator(s)
       shall apply French law to the merits of the case. The arbitration shall
       be final and binding upon the parties.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       25

<PAGE>

       in the event of a dispute regarding any payments owing under this
       Agreement, all undisputed Agreements shall be paid when due and the
       balance, if any, promptly after resolution of the dispute.

8.7.5. ENTIRE AGREEMENT.

       This Agreement contains the entire understanding of the Parties with
       respect to the subject matter hereof. All express or implied agreements
       and understandings, either oral or written, heretofore made, including
       but not limited to Option Agreements to the extent, but only to the
       extent, they are inconsistent with any provisions of this Agreement (in
       which case the relevant provision of this Agreement shall prevail) are
       expressly superseded by this Agreement. This Agreement may be amended, or
       any term hereof modified, only by a written instrument duly executed by
       both Parties hereto.

8.7.6. INDEPENDENT CONTRACTORS.

       LICENSOR and LICENSEE each acknowledge that they shall be independent
       contractors and that the relationship between the two Parties shall not
       constitute a partnership, joint venture or agency. Neither LICENSOR nor
       LICENSEE shall have the authority to make any statements, representations
       or commitments of any kind, or to take any action, which shall be binding
       on the other Party, the prior consent of the other Party to do so.

8.7.7. AFFILIATES.

       Each Party shall cause its respective Affiliates to comply fully with the
       provisions of this Agreement to the extent such provisions specifically
       relate to, or are intended to specifically relate to, such Affiliates, as
       though such Affiliates were expressly named as joint obligors hereunder.

8.7.8. WAIVER.

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

8.7.9. NO IMPLIED LICENSE.

       Nothing in this Agreement shall be deemed to constitute, by implication
       or otherwise, the grant by LICENSEE to LICENSOR, or by LICENSOR to
       LICENSEE, of any license to, or interest in, or other rights under any
       patent, patent application, proprietary know-how, trade secrets or other
       intellectual property rights owned or possessed by LICENSEE or LICENSOR,
       whichever is applicable, except as expressly provided for herein. For the
       avoidance of doubt, LICENSEE shall at all times own all right, title and
       interest in and to COC ab and all intellectual and industrial property
       rights relating thereto, in whatever form and however derived or
       modified, and LICENSOR shall make any assignments necessary from time to
       time to effect such ownership.

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       26

<PAGE>

8.7.10. LIABILITY LIMITATION.

       In no event shall either party be liable with respect to any subject
       matter of this agreement under any contract, negligence, strict liability
       or other legal or equitable theory for any incidental or consequential
       damages, lost profits or lost data.

8.7.11. COUNTERPARTS.

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

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       27

<PAGE>

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

For LICENSOR.

By: /s/ Michel Greco
   -------------------------------
Name:  Michel GRECO
Title: DIRECTEUR GENERAL

For LICENSEE.

By: /s/ Stanley Kaplan
   -------------------------------
Name:  Stanley KAPLAN
Title:  CEO & President

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       28

<PAGE>

--------------------------------------------------------------------------------
                                   SCHEDULE A
--------------------------------------------------------------------------------

                                LICENSED PATENTS

US Patent nDEG. 5.234.991 of August 10, 1993 "POROUS MINERAL SUPPORT COATED
WITH AN ANIMATED POLYSACCHARIDE POLYMER

US Patent nDEG. 4.849.508 of July 18, 1989 "PASTEURIZATION OF IMMUNOGLOBULIN
SOLUTIONS"

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       29

<PAGE>

--------------------------------------------------------------------------------
                                   SCHEDULE B
--------------------------------------------------------------------------------

                               LICENSED KNOW-HOW

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

[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT
TO THE OMITTED PORTIONS.

                                       30

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