Document:

EXHIBIT 10.18
                          SITE DEVELOPMENT AND HOSTING
                                    AGREEMENT

This AGREEMENT, dated as of July 30, 2000 (the "Effective Date"), is by and
between UNIVERSITY.COM, a Minnesota corporation with its principal place of
business at 800 Washington Avenue, Suite 508, Minneapolis, Minnesota USA 55401
("UNIVERSITY.COM"), and HARCOURTS INTERNATIONAL, INC., a New Zealand corporation
with its principal place of business at Level 2 / 47 Riccarton Road Christchurch
New Zealand ("HARCOURTS").

WHEREAS, UNIVERSITY.COM is in the business of developing and hosting
private-label, on-line training and education websites for use by companies in
training employees, contractors and other service providers;

WHEREAS, HARCOURTS desires to engage UNIVERSITY.COM to develop and implement a
customized, on-line education and training program for use by HARCOURTS brokers
and agents ("HARCOURTS Users"); and

WHEREAS, UNIVERSITY.COM desires to perform such services for HARCOURTS pursuant
to the terms of this Agreement.

         NOW, THEREFORE, in consideration of the mutual premises and covenants
hereinafter set forth, the parties agree as follows:

1. Definitions.
   -----------

         1.1 "CONFIDENTIAL INFORMATION" shall mean all proprietary information
of a party, including, without limitation, specifications, diagrams,
information, data, materials, prototypes or models relating to a party's
products, programs, markets, customers, suppliers, inventions, procedures,
designs, research and development, business plans, financial projections,
organizations, employees or consultants or any other similar aspects of the
present or future business of either party.

         1.2 "COURSES" shall mean the general real estate and professional
business training courses listed on Exhibit A, and any courses developed by
UNIVERSITY.COM using the HARCOURTS Course Content, which shall be offered to
HARCOURTS Users on the Site.

         1.3 "COURSE CONTENT" shall refer collectively to the UNIVERSITY.COM
Course Content, HARCOURTS Course Content and Third Party Course Content, and any
updates or revisions thereto.

         1.4 "PRODUCTION DATE" shall mean the date on which the Site is first
available on the HARCOURTS Intranet for use by all HARCOURTS Users.

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         1.7 "VIRTUAL UNIVERSITY" shall mean UNIVERSITY.COM's proprietary
software for delivering on-line training courses and related course management
services.

         1.8 "HARCOURTS COURSE CONTENT" shall mean all educational materials and
learning components created by HARCOURTS for the Courses and provided to
UNIVERSITY.COM by HARCOURTS for inclusion in the Courses.

         1.9 "HARCOURTS MATERIALS" shall refer collectively to the HARCOURTS
Course Content and the HARCOURTS Site Content.

         1.10 "HARCOURTS INTRANET" shall mean HARCOURTS's secure, internal,
company-wide network.

         1.11 "HARCOURTS SITE CONTENT" shall mean HARCOURTS designs, trademarks,
logos, text, images, graphics, audio clips, and other material provided to
UNIVERSITY.COM by HARCOURTS for inclusion on the Site.

         1.12 "HARCOURTS USER" shall mean an individual who has been issued a
password by UNIVERSITY.COM for access to the Site.

         1.13 "SITE" shall mean the private-label, on-line training and
education website developed and hosted by UNIVERSITY.COM, and accessible via the
HARCOURTS Intranet.

         1.14 "SITE CONTENT" shall mean all text, images, graphics and other
materials on the Site.

         1.15 "SPECIFICATIONS" shall mean the functional and design
specifications for the Site set forth in Exhibit B hereto.

         1.16 "THIRD PARTY COURSE CONTENT" shall mean all educational, technical
and other content for the Courses licensed by UNIVERSITY.COM from a third party,
excluding the HARCOURTS Content, that are included in a Course.

         1.17 "UNIVERSITY.COM COURSES" shall mean the general real estate and
professional training courses listed on Exhibit A.

         1.18 "UNIVERSITY.COM COURSE CONTENT" shall mean all educational
materials and learning components created by UNIVERSITY.COM prior to the
Effective Date, or created by UNIVERSITY.COM and included in the Courses
pursuant to this Agreement, and licensed to HARCOURTS hereunder.

         1.19 "UNIVERSITY.COM MATERIALS" shall mean the UNIVERSITY.COM Courses,
the UNIVERSITY.COM Course Content, and the designs, layout, structure, sequence,
organization, text, images, graphics, audio clips, and other material contained
on or within the Site, excluding the HARCOURTS Materials.

         1.20 "USER AGREEMENT" shall mean the license agreement attached hereto
as Exhibit C (or any replacement therefore provided by UNIVERSITY.COM to
HARCOURTS), pursuant to which HARCOURTS Users will access the Site and use the
Course Content.

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2. UNIVERSITY.COM OBLIGATIONS; RIGHT OF REMOVAL. Pursuant to the terms of this
Agreement, UNIVERSITY.COM shall perform the following services:

         2.1 SITE DESIGN AND CUSTOMIZATION. UNIVERSITY.COM shall design and
customize the Site in accordance with the Specifications.

         2.2 COURSE DEVELOPMENT. UNIVERSITY.COM shall, using the Course Content,
develop the Courses, and make them available to HARCOURTS Users via the Site
pursuant to the User Agreement. Subsequent development of additional Courses
incorporating the HARCOURTS Course Material will be authorized by and pursuant
to their respective HARCOURTS Course Content Addendum.

         2.3 SITE HOSTING. UNIVERSITY.COM shall host the Site on the server
located at its data center in Minneapolis, Minnesota USA. Commencing on the
Production Date, UNIVERSITY.COM will use commercially reasonable efforts to make
the Site continuously available to HARCOURTS Users, with the exception of: (a)
scheduled maintenance and required repairs, and (b) any loss or interruption of
hosting services due to causes beyond UNIVERSITY.COM's control, including,
without limitation, interruption or failure related to the HARCOURTS Intranet,
or telecommunication or digital transmission links, and Internet failures or
shut downs. HARCOURTS acknowledges and agrees that UNIVERSITY.COM makes no
representation that access to the Site will be uninterrupted or error free.

         2.4 SITE MAINTENANCE AND TECHNICAL SUPPORT. UNIVERSITY.COM will use
commercially reasonable efforts to provide HARCOURTS with reasonable assistance
to maintain and update the Site during the term of this Agreement, and shall
provide standard technical assistance to HARCOURTS and HARCOURTS Users in the
operation and use of the Site and the Courses, all in accordance with Exhibit D
hereto. Any additional maintenance services will be provided for a fee that
shall be negotiated between the parties.

         2.5 RIGHT OF REMOVAL AND USER TERMINATION. HARCOURTS acknowledges and
agrees that UNIVERSITY.COM shall have the right to remove from, or refuse to
include on, the Site, any HARCOURTS Materials which UNIVERSITY.COM believes are
unlawful, distasteful or violate the rights of a third party (including, without
limitation intellectual property rights). HARCOURTS further acknowledges and
agrees that UNIVERSITY.COM shall have the right to suspend or terminate the
password and account of any HARCOURTS User that is in violation of the terms of
the User Agreement.

3. HARCOURTS Obligations.
   ---------------------

         3.1 DELIVERY OF HARCOURS COURSE CONTENT. HARCOURTS Course Content will
be delivered in accordance with the HARCOURTS Course Content Schedule, as such
is amended from time to time by the HARCOURTS Course Content Addendums.

         3.2 CONTENT CONTROL. HARCOURTS acknowledges and agrees that it will be
solely responsible for creating, reviewing, and authorizing modifications to,
the HARCOURTS Materials. HARCOURTS acknowledges that UNIVERSITY.COM is acting as
a passive conduit for the distribution and publishing of the HARCOURTS
Materials. UNIVERSITY.COM has no obligation to HARCOURTS, and undertakes no
responsibility, to review the HARCOURTS Content to determine whether any such
content may incur liability to third parties.

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4. Password Administration.
   -----------------------

         4.1 EXISTING USERS OF HARCOURTS INTRANET. HARCOURTS will provide
UNIVERSITY.COM with all information requested by it to facilitate the issuance
by UNIVERSITY.COM of passwords for access to the Site to those individuals who
are authorized by HARCOURTS to use the HARCOURTS Intranet as of the Effective
Date.

         4.2 NEW USERS OF HARCOURTS INTRANET. With regard to those individuals
not authorized by HARCOURTS to access the HARCOURTS Intranet as of the Effective
Date, UNIVERSITY.COM shall provide to HARCOURTS the source code necessary for
placement by HARCOURTS of a form on the HARCOURTS Intranet (the "Registration
Form") for the registration of, and issuance of passwords by UNIVERSITY.COM to,
such individuals. HARCOURTS may modify the source code for the Registration Form
solely for the purpose of entering user names in the appropriate field.
HARCOURTS shall immediately submit to UNIVERSITY.COM completed Registration
Forms, and UNIVERSITY.COM shall issue to such individuals a password for access
to the Site.

         4.3 USER LOG-IN. UNIVERSITY.COM shall provide to HARCOURTS the source
code necessary for placement of a log-in form ("Log-in Form") on the HARCOURTS
Intranet by HARCOURTS in a manner sufficient to facilitate the verification of
HARCOURTS User information by UNIVERSITY.COM via its database each time an
HARCOURTS User logs in to the Site. The Log-in Form will be used for access to
the Site by all HARCOURTS Users. All source code and related materials provided
to HARCOURTS by UNIVERSITY.COM relating to the Registration Form or the Log-in
Form shall hereinafter be referred to as the "Registration Materials," and shall
be subject to the terms of Section 5.1.

5. License Grants.
   --------------

         5.1 UNIVERSITY.COM MATERIALS, THIRD PARTY COURSE CONTENT AND
REGISTRATION MATERIALS. Subject to the terms of this Agreement, UNIVERSITY.COM
hereby grants to HARCOURTS a non-exclusive, non-transferable, limited license,
without right of sublicense, to access, display and use the Site, the
UNIVERSITY.COM Materials, Third Party Course Content and the Registration
Materials. HARCOURTS shall not, and shall not allow any third party (including,
without limitation any HARCOURTS User) to, download or otherwise reproduce or
distribute the UNIVERSITY.COM Materials, the Third Party Course Content or the
Registration Materials, or modify, reverse engineer, decompile or disassemble
any UNIVERSITY.COM Materials, the Third Party Course Content or the Registration
Materials except as expressly permitted by this Agreement or the User Agreement.
HARCOURTS shall not allow any third party, with the exception of HARCOURTS
Users, to access the Site or any UNIVERSITY.COM Materials contained therein.
HARCOURTS acknowledges and agrees that use of the Third Party Course Content is
subject to UNIVERSITY.COM's agreements with its licensors, and that such
licensors may have the right to modify or terminate UNIVERSITY.COM's right to
use and sub-license the Third Party Course Content at any time. HARCOURTS shall
abide by the terms of UNIVERSITY.COM's agreements with its licensors for the
Third Party Course Content as long as HARCOURTS is provided copies of such Third
Party Course Content agreement.

         5.2 HARCOURTS SITE CONTENT. Subject to the terms of this Agreement,
HARCOURTS hereby grants to UNIVERSITY.COM for the term of this Agreement, a

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nonexclusive, royalty-free worldwide license to use, reproduce, distribute,
publicly perform, publicly display and modify the HARCOURTS Site Content in
connection with the development, hosting and maintenance of the Site and
services performed by UNIVERSITY.COM hereunder.

         5.3 HARCOURTS COURSE CONTENT. Subject to the terms of this Agreement,
HARCOURTS hereby grants to UNIVERSITY.COM for the term of this Agreement, an
exclusive royalty-free worldwide license to use, reproduce, distribute, publicly
perform, publicly display and modify the HARCOURTS Course Content in connection
with UNIVERSITY.COM's performance of its obligations hereunder.

         5.4 ACCESS TO HARCOURTS INTRANET. Subject to the terms of this
Agreement, HARCOURTS hereby grants to UNIVERSITY.COM a non-exclusive license to
access the HARCOURTS Intranet for the sole purpose of hosting and maintaining
the Site, and performing the services, pursuant to this Agreement.

         5.5 TRADEMARK LICENSES.

                  (a) UNIVERSITY.COM hereby grants to HARCOURTS, subject to the
         terms of this Agreement, a non-exclusive, non-transferable,
         royalty-free right, without right of sublicense, to use the
         UNIVERSITY.COM trademark solely to promote the use of the Site by
         HARCOURTS Users as set forth herein.

                  (b) HARCOURTS hereby grants to UNIVERSITY.COM, subject to the
         terms of this Agreement, a non-exclusive, non-transferable (unless
         otherwise set forth herein), royalty-free right, without right of
         sublicense, to use the Harcourts International trademark solely in
         connection with the performance of its obligations hereunder.

6. Fees and Payment. All fees payable hereunder will be paid in U.S. Dollars.
   ----------------

         6.1 SITE DEVELOPMENT AND LICENSE FEE. UNIVERSITY.COM shall waive any
fees payable by HARCOURTS for the development of the Site and the provision of
the HARCOURTS Courses to the HARCOURTS Users via the Site pursuant to the User
Agreement.

         6.2 MAINTENANCE AND SUPPORT FEE. HARCOURTS shall pay to UNIVERSITY.COM
Four Thousand Dollars ($4,000) for maintenance and support of the Site as set
forth herein, which amount shall be due and payable on the first day of each
ninety (90)-day period following the date of practical completion of the site
and availability of the courses on the site to Harcourts users. For any Renewal
Term of this Agreement, such quarterly fees shall be subject to annual review
and adjustment.

         6.4 SYSTEM MODIFICATION FEES. From time to time, HARCOURTS may request
that UNIVERSITY.COM modify the system to meet specific requirements as
identified by HARCOURTS. In such instance, HARCOURTS shall pay UNIVERSITY.COM a
fee, to be determined as outlined in an accompanying Addendum.

         6.5 PAY-PER-VIEW FEE. UNIVERSITY.COM may, for certain UNIVERSITY.COM
Courses, charge each HARCOURTS User, pursuant to the terms of the User

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Agreement, a fee each time a UNIVERSITY.COM Course is viewed ("Pay-Per-View
Fee"). Such Courses may only be made available on the Harcourts site with the
prior approval of Harcourts.

         6.6 REVENUE SHARING COMPENSATION. Commencing with the first calendar
quarter of following the Production Date, UNIVERSITY.COM shall pay to HARCOURTS
ten percent (10%) of the Pay-Per-View Fee revenues, net of any content license
fees, collected by UNIVERSITY.COM for any UNIVERSITY.COM Courses listed on
Exhibit A. Such payments to HARCOURTS shall be due and payable no later than
thirty (30) days after the end of each calendar quarter. Payments due pursuant
to this Section 6.5 shall be accompanied by a report setting forth the
Pay-Per-View Fee revenues and advertising revenues received by UNIVERSITY.COM in
the preceding quarter.

7. Proprietary Rights.
   ------------------

         7.1 UNIVERSITY.COM RIGHTS. Subject to the limited license granted to
HARCOURTS hereunder, HARCOURTS acknowledges and agrees that UNIVERSITY.COM is
the exclusive owner of all proprietary rights, including but not limited to
copyrights, trademarks, patents and trade secrets, in and to the following

                  (a) Real Estate University;

                  (b) the UNIVERSITY.COM Materials;

                  (c) the Site Content, exclusive of the HARCOURTS Site Content;

                  (d) the Courses, exclusive of the HARCOURTS Course Content;
                      and

                  (e) the Registration Material.

         7.2 HARCOURTS RIGHTS. Subject to the limited license granted to
UNIVERSITY.COM hereunder, UNIVERSITY.COM acknowledges and agrees that HARCOURTS
is the exclusive owner of all proprietary rights, including but not limited to
copyrights, trademarks, patents and trade secrets, in and to the HARCOURTS
Materials.

8. Term and Termination.
   --------------------

         8.1 TERM. This Agreement shall commence on the Effective Date and shall
remain in full force and effect for a period of three (3) years (the "Initial
Term"). Thereafter, UNIVERSITY.COM may, at its' option and with Harcourts
agreement, renew this agreement for subsequent terms of three (3) years each.
Such renewal shall be notified by UNIVERSITY.COM to HARCOURTS with written
notice sixty (60) days prior to the expiration of the Term.

         8.2 TERMINATION. This Agreement may be terminated prior to the
expiration hereof as follows:

                  (a) Either party may terminate this Agreement at any time by
         giving notice in writing to the other party if the other party files a
         petition of any type as to its bankruptcy, is declared bankrupt,
         becomes insolvent, makes an assignment for the benefit of creditors,
         goes into liquidation or receivership, or otherwise loses legal control
         of its business;

<PAGE>

                  (b) Either party may terminate this Agreement at any time by
         giving notice in writing to the other party if the other party is in
         material breach of this Agreement (including, without limitation, any
         failure to manufacture or supply the Products as provided herein), and
         has failed to cure such breach within thirty (30) days of the receipt
         of written notice of breach from the non-breaching party;

         8.3 RIGHTS AND OBLIGATIONS ON TERMINATION. If this Agreement is
terminated for any reason, the parties shall have the following rights and
obligations:

                  (a) Termination of this Agreement shall not release either
         party from the obligation to make payment of all amounts then or
         thereafter due and payable;

                  (b) All licenses granted pursuant to Article 5, and the
         respective licensee's rights and obligations thereunder, shall
         automatically terminate; and

                  (c) The parties' respective rights and obligation under
         Articles 7, and 9 through 12, and Sections 8.3 and 8.4 shall survive
         termination of this Agreement.

         8.4 NO COMPENSATION. The parties agree that, without prejudice to any
other remedies at law or in equity that either party may have in respect of any
breach of this Agreement, neither party shall be entitled to or claim that it is
entitled to any compensation or like payment as a result of or arising out of
any termination in accordance with this Article 8, whether claimed as loss of
good will, lost profits, lost investments, or otherwise.

9. Confidential Information and Use of Data.
   ----------------------------------------

         9.1 OBLIGATION. All Confidential Information shall be deemed
confidential and proprietary to the party disclosing such information hereunder.
Each party may use the Confidential Information of the other party during the
term of this Agreement only as permitted or required for the receiving party's
performance hereunder. The receiving party shall not disclose or provide any
Confidential Information to any third party and shall take reasonable measures
to prevent any unauthorized disclosure by its employees, agents, contractors or
consultants during the term hereof including appropriate individual
nondisclosure agreements. The foregoing duty shall survive any termination or
expiration of this Agreement.

         9.2 EXCLUSIONS. The following shall not be considered Confidential
Information for purposes of this Article 9: (i) information which is or becomes
in the public domain through no fault or act of the receiving party; (ii)
information which was independently developed by the receiving party without the
use of or reliance on the disclosing party's Confidential Information; (iii)
information which was provided to the receiving party by a third party under no
duty of confidentiality to the disclosing party; or (iv) information which is
required to be disclosed by law, provided, however, prompt prior notice thereof
shall be given to the party whose Confidential Information is involved.

         9.3 TERMS OF AGREEMENT. The parties acknowledge and agree that the
terms of this Agreement are deemed confidential pursuant to this Article 9, and
therefore may not be disclosed without the prior written consent of the other
party.

<PAGE>

         9.4 DURATION; SURVIVING OBLIGATION. Each party's obligations of non-use
and non-disclosure of the other party's confidential information shall apply
during the term of this Agreement, and shall also survive for a period of five
(5) years after its termination for any reason.

         9.5 USE OF DATA. UNIVERSITY.COM shall not, during the term of this
Agreement sell or rent to any third party, any customer list compiled as a
result of identification of the HARCOURTS Users, and shall not solicit HARCOURTS
Users for the sale of any products or services not expressly provided for under
this Agreement without the prior written consent of HARCOURTS.

10. Warranties.
    ----------

         10.1 MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS. UNIVERSITY.COM
and HARCOURTS each represent, warrant and covenant to the other that:

                  (a) it is a corporation duly organized, validly existing and
         in good standing under the laws of the state of its incorporation and
         has the corporate power to own its assets and properties and to carry
         on its business as now being and heretofore conducted;

                  (b) the execution, delivery and performance of this Agreement
         have been duly authorized, do not violate its certificate of
         incorporation, by-laws or similar governing instruments or applicable
         law and do not, and with the passage of time will not, materially
         conflict with or constitute a breach under any other agreement,
         judgment or instrument to which it is a party or by which it is bound;

                  (c) this Agreement is the legal, valid and binding obligation
         of such party, enforceable in accordance with its terms; and

                  (d) it will not knowingly distribute on the Site any content
         that (i) infringes any copyright, patent right, trademark right,
         publicity right or other right of any third party, (ii) violates any
         law or regulation, including without limitation the laws and
         regulations governing export control, (iii) is libelous or defamatory,
         (iv) is pornographic or obscene, or (v) contains viruses, trojan
         horses, worms, time bombs or cancelbots.

         10.2 REPRESENTATIONS, WARRANTIES AND COVENANTS OF HARCOURTS. HARCOURTS
represents, warrants and covenants that:

                  (a) no authorization, consent or approval of, waiver or
         exemption by, or filing or registration with any public body, court,
         third party or authority is necessary on the part of HARCOURTS for the
         consummation by HARCOURTS of the transactions contemplated by this
         Agreement;

                  (b) All claims or representations made by or for HARCOURTS
         about HARCOURTS or any products or services included in the Site will
         be true and correct (and shall remain true and correct) and in
         compliance with all applicable laws and regulations throughout the term
         of this Agreement;

<PAGE>

                  (c) the HARCOURTS Materials do not infringe or violate any
         copyright, patent, trademark, trade secret or other rights of any third
         party; and

                  (d) there is no pending or threatened claim or action against
         it contesting its right to use, or grant to third parties a license to
         use, the HARCOURTS Materials licensed hereunder, and to the best of its
         knowledge no product, license, patent, trademark, service mark or trade
         name now being sold or used by any person or entity infringes any of
         its intellectual property rights licensed hereunder.

         10.3 REPRESENTATIONS, WARRANTIES AND COVENANTS OF UNIVERSITY.COM.
UNIVERSITY.COM represents, warrants and covenants that:

                  (a) the Site will conform in all material respects to the
         Specifications and that UNIVERSITY.COM shall fix any material errors in
         the Site that cause a nonconformance with the Specifications;

                  (b) no authorization, consent or approval of, waiver or
         exemption by, or filing or registration with any public body, court,
         third party or authority is necessary on the part of UNIVERSITY.COM for
         the consummation by UNIVERSITY.COM of the transactions contemplated by
         this Agreement;

                  (c) the UNIVERSITY.COM Materials do not infringe or violate
         any copyright, patent, trademark, trade secret or other rights of any
         third party; and

                  (d) there is no pending or threatened claim or action against
         it contesting its right to use, or grant to third parties a license to
         use, the UNIVERSITY.COM Materials licensed hereunder, and to the best
         of its knowledge no product, license, patent, trademark, service mark
         or trade name now being sold or used by any person or entity infringes
         any of its intellectual property rights licensed hereunder.

         10.4 DISCLAIMER. UNIVERSITY.COM makes no warranty or representation,
either express or implied, that access to or operation of the Site will be
uninterrupted or error free. EXCEPT AS SPECIFICALLY SET FORTH HEREIN,
UNIVERSITY.COM MAKES NO EXPRESS OR IMPLIED WARRANTIES RELATING TO THE SITE OR
ITS USE OR FUNCTIONALITY, AND SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

11. Indemnification and Limitation of Liability.
    -------------------------------------------

         11.1 INDEMNIFICATION BY HARCOURTS. HARCOURTS shall defend, indemnify
and hold harmless UNIVERSITY.COM, its officers, agents, directors, and employees
against any and all claims, actions, proceedings, expenses, damages and
liabilities (including, without limitation, reasonable attorneys' fees), arising
out of or in connection with (a) any breach of this Agreement by HARCOURTS,
including the representations, warranties and covenants herein, (b) the
HARCOURTS Materials or the HARCOURTS Intranet, and any use thereof, including
without limitation, any infringement or violation of any trademark, copyright,
trade secret, patent or other proprietary right with respect thereto, and (c)
any use of HARCOURTS's intellectual property rights permitted herein.

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         11.2 INDEMNIFICATION BY UNIVERSITY.COM. UNIVERSITY.COM shall defend,
indemnify and hold harmless HARCOURTS, its officers, agents, directors, and
employees against any and all claims, actions, proceedings, expenses, damages
and liabilities (including, without limitation, reasonable attorneys' fees),
arising out of or in connection with (a) any breach of this Agreement by
UNIVERSITY.COM, including the representations, warranties and covenants herein,
(b) the UNIVERSITY.COM Materials, and any use thereof, including, without
limitation, any infringement or violation of any trademark, copyright, trade
secret, patent or other proprietary right with respect thereto, and (c) any use
of UNIVERSITY.COM's intellectual property rights permitted herein.

         11.3 PROCEDURE FOR INDEMNIFICATION. Whenever an indemnified party
hereunder becomes aware of a claim, suit or proceeding as to which it believes
it is entitled to indemnification under this Article 11, it shall give notice in
writing to the indemnifying party, shall permit the indemnifying party to assume
exclusive control of the defense or settlement of the matter, and shall provide,
at the indemnifying party's expense, all authority, information and assistance
which such party may reasonably request for purposes of such defense. The
indemnified party may engage its own counsel, at its own expense, to monitor the
defense of any such matter.

         11.4 LIMITATION OF LIABILITY. IN NO EVENT SHALL UNIVERSITY.COM BE
LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES (INCLUDING
DAMAGES FOR LOST PROFITS, LOST DATA, INTERRUPTED COMMUNICATIONS, LOST BUSINESS
OPPORTUNITY, FAILURE OF TRANSMISSION SERVICE, PERSONAL INJURY OR THE LIKE)
RESULTING FROM ANY BREACH OF WARRANTY, REPRESENTATION OR COVENANT OR ANY OTHER
TYPE OF CLAIM ARISING FROM OR OUT OF THIS AGREEMENT, INCLUDING WITHOUT
LIMITATION, LIABILITY ARISING OUT OF CONTRACT, NEGLIGENCE, AND STRICT LIABILITY
IN TORT OR WARRANTY, EVEN IF UNIVERSITY.COM HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. IN NO EVENT SHALL UNIVERSITY.COM'S LIABILITY HEREUNDER EXCEED
THE FEES PAID BY HARCOURTS HEREUNDER.

12. Miscellaneous.
    -------------

         12.1 DISPUTE RESOLUTION. Except for a breach of the confidentiality
obligations contained in Article 9, any dispute, claim or controversy arising
out of or in connection with this Agreement shall be settled by final and
binding arbitration in Minneapolis, Minnesota, under the then applicable
Commercial Arbitration Rules of the American Arbitration Association (AAA). Any
such arbitration shall be conducted by one (1) arbitrator appointed by mutual
agreement of the parties or, failing such agreement, in accordance with said
Rules.

         12.2 RELATIONSHIP. This Agreement does not make either party the
employee, agent or legal representative of the other for any purpose whatsoever.
Neither party is granted any right or authority to assume or to create any
obligation or responsibility, express or implied, on behalf of or in the name of
the other party. Each party is acting as an independent contractor.

         12.3 ASSIGNMENT. Neither party shall have the right to assign or
otherwise transfer its rights and obligations under this Agreement without the
prior written consent of the other party; provided, however, UNIVERSITY.COM may

<PAGE>

assign this Agreement in connection with a sale of all or substantially all of
its assets. This Agreement shall be binding upon, and inure to the benefit of,
UNIVERSITY.COM and HARCOURTS and their successors and permitted assigns. Any
prohibited assignment or transfer shall be null and void.

         12.4 NOTICES. Notices permitted or required to be given hereunder shall
be deemed sufficient if given by registered or certified mail, postage prepaid,
return receipt requested, by private courier service, or by facsimile addressed
to the respective addresses of the parties first set forth above, or at such
other addresses as the respective parties may designate by like notice from time
to time. Notices so given shall be effective upon (a) receipt by the party to
which notice is given, or (b) on the fifth (5th) day following domestic mailing
or the tenth (l0th) day following international mailing, as may be the case,
whichever occurs first.

         12.5 ENTIRE AGREEMENT. This Agreement, including all Exhibits hereto
which are incorporated herein, constitutes the entire agreement of the parties
with respect to the subject matter hereof and supersedes all proposals, oral or
written, and all negotiations, conversations, and discussions.

         12.6 AMENDMENT. This Agreement may not be modified, amended, rescinded,
canceled or waived in whole or in part, except by written amendment signed by
both parties hereto.

         12.7 GOVERNING LAW. This Agreement shall be governed by and interpreted
under the laws of the State of Minnesota, without regard to its conflicts of
laws rules.

         12.8 SEVERABILITY. If any provision of this Agreement is found
unenforceable under any laws or regulations applicable thereto, such provision
terms shall be deemed stricken from this Agreement, but such invalidity or
unenforceability shall not invalidate any of the other provisions of this
Agreement.

         12.9 COUNTERPARTS. This Agreement may be executed in two or more
counterparts and each such counterpart shall be deemed an original hereof.

         12.10 WAIVER. No failure by either party to take any action or assert
any right hereunder shall be deemed to be a waiver of such right in the event of
the continuation or repetition of the circumstances giving rise to such right.

         12.11 REMEDIES. All remedies available to either party hereunder shall
be cumulative in nature, and not exclusive.

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the Effective Date.

UNIVERSITY.COM

By /s/ Bruce Peterson
   ------------------
         President

HARCOURTS INTERNATIONAL, INC.

By /s/ [illegible]
   ------------------CORVAS INTERNATIONAL, INC.
                             STOCK OPTION AGREEMENT
                           2000 EQUITY INCENTIVE PLAN

CORVAS INTERNATIONAL, INC. (the "Company"), pursuant to its 2000 Equity
Incentive Plan (the "2000 Plan"), hereby grants to Optionholder an option to
purchase the number of shares of the Company's Common Stock set forth below.
This option is subject to all of the information set forth herein and in the
Terms and Conditions, the 2000 Plan and the Notice of Exercise, all of which are
attached hereto and incorporated herein in their entirety.

Optionholder:                                ___________________________________
Date of Grant:                               ___________________________________
Number of Shares Subject to Option:          ___________________________________
Exercise Price Per Share:                    ___________________________________
Total Exercise Price:                        ___________________________________
Expiration Date:                             ___________________________________

TYPE OF GRANT:   |_|  Incentive Stock Option(1)   |_|  Nonstatutory Stock Option

VESTING  AND  EXERCISE  SCHEDULE:   25% of the shares vest and shall be
                                    exercisable one year after the Date of
                                    Grant. 6.25% of the shares vest and shall be
                                    exercisable quarterly thereafter over the
                                    next three years.

ADDITIONAL TERMS/ACKNOWLEDGEMENTS: The undersigned Optionholder acknowledges
receipt of, and understands and agrees to, this Stock Option Agreement, the
Terms and Conditions and the 2000 Plan. Optionholder further acknowledges that
as of the Date of Grant, this Stock Option Agreement, the Terms and Conditions
and the 2000 Plan set forth the entire understanding between Optionholder and
the Company regarding the acquisition of stock in the Company and supersede all
prior oral and written agreements on that subject with the exception of options
previously granted and delivered to Optionholder under all plans and otherwise.

CORVAS INTERNATIONAL, INC.                  OPTIONHOLDER:

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

Title:                                      Social Security No.:
      -------------------------------                           ----------------

Date:                                       Date:
     --------------------------------            -------------------------------

                                            Address:
                                                    ----------------------------

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

ATTACHMENTS:
     ATTACHMENT A  -   Terms and Conditions
     ATTACHMENT B  -   2000 Equity Incentive Plan
     ATTACHMENT C  -   Notice of Exercise

--------
(1) If this is an incentive stock option, it (plus your other outstanding
incentive stock options) cannot be first EXERCISABLE for more than $100,000 in
any calendar year. Any excess over $100,000 will be a nonstatutory stock option.

<PAGE>

                                  ATTACHMENT A

                           CORVAS INTERNATIONAL, INC.
                           2000 EQUITY INCENTIVE PLAN

                              TERMS AND CONDITIONS

              (INCENTIVE STOCK OPTION OR NONSTATUTORY STOCK OPTION)

         Pursuant to your Stock Option Agreement ("Option Agreement") and these
Terms and Conditions, Corvas International, Inc. (the "Company") has granted you
an option under its 2000 Equity Incentive Plan (the "2000 Plan") to purchase the
number of shares of the Company's Common Stock indicated in your Option
Agreement at the exercise price indicated in your Option Agreement. Defined
terms not explicitly defined in these Terms and Conditions but defined in the
2000 Plan shall have the same definitions as in the 2000 Plan.

         The details of your option are as follows:

         1. VESTING. Subject to the limitations contained herein, your option
will vest as provided in your Option Agreement, provided that vesting will cease
upon the termination of your Continuous Service.

         2. NUMBER OF SHARES AND EXERCISE PRICE. The number of shares of Common
Stock subject to your option and your exercise price per share referenced in
your Option Agreement may be adjusted from time to time for Capitalization
Adjustments, as provided in the 2000 Plan.

         3. METHOD OF PAYMENT. Payment of the exercise price is due in full upon
exercise of all or any part of your option. You may elect to make payment of the
exercise price (i) in cash, (ii) by check or (iii) in the Company's sole
discretion at the time your option is exercised and provided that at the time of
exercise the Common Stock is publicly traded and quoted regularly in THE WALL
STREET JOURNAL, pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board that, prior to the issuance of Common
Stock, results in either the receipt of cash (or check) by the Company or the
receipt of irrevocable instructions to pay the aggregate exercise price to the
Company from the sales proceeds.

         4. WHOLE SHARES. You may exercise your option only for whole shares of
Common Stock.

         5. SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common
Stock issuable upon such exercise are then registered under the Securities Act
or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the registration
requirements of the Securities Act. The exercise of your option must also comply
with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

<PAGE>

         6. TERM. You may not exercise your option before the commencement of
its term or after its term expires. The term of your option commences on the
Date of Grant and expires upon the EARLIEST of the following:

                  (a) three (3) months after the termination of your Continuous
Service for any reason other than your Disability or death, provided that if
during any part of such three- (3-) month period your option is not exercisable
solely because of the condition set forth in the preceding paragraph relating to
"Securities Law Compliance," your option shall not expire until the earlier of
the Expiration Date or until it shall have been exercisable for an aggregate
period of three (3) months after the termination of your Continuous Service;

                  (b) twelve (12) months after the termination of your
Continuous Service due to your Disability;

                  (c) eighteen (18) months after your death if you die either
during your Continuous Service or within three (3) months after your Continuous
Service terminates;

                  (d) the Expiration Date indicated in your Option Agreement; or

                  (e) the day before the tenth (10th) anniversary of the Date of
Grant.

         If your option is an incentive stock option, note that, to obtain the
federal income tax advantages associated with an "incentive stock option," the
Code requires that at all times beginning on the date of grant of your option
and ending on the day three (3) months before the date of your option's
exercise, you must be an employee of the Company or an Affiliate, except in the
event of your death or Disability. The Company has provided for extended
exercisability of your option under certain circumstances for your benefit but
cannot guarantee that your option will necessarily be treated as an "incentive
stock option" if you continue to provide services to the Company or an Affiliate
as a Consultant or Director after your employment terminates or if you otherwise
exercise your option more than three (3) months after the date your employment
terminates.

         7. EXERCISE.

                  (a) You may exercise the vested portion of your option during
its term by delivering a Notice of Exercise (in a form designated by the
Company) together with the exercise price to the Corporate Secretary of the
Company, or to such other person as the Company may designate, during regular
business hours, together with such additional documents as the Company may then
require.

                  (b) By exercising your option you agree that, as a condition
to any exercise of your option, the Company may require you to enter into an
arrangement providing for the payment by you to the Company of any tax
withholding obligation of the Company arising by reason of (1) the exercise of
your option, (2) the lapse of any substantial risk of forfeiture to which the
shares of Common Stock are subject at the time of exercise, or (3) the
disposition of shares of Common Stock acquired upon such exercise.

                  (c) If your option is an incentive stock option, by exercising
your option you agree that you will notify the Company in writing within fifteen
(15) days after the date of any disposition of any of the shares of the Common
Stock issued upon exercise of your option that occurs within two (2) years after
the Date of Grant or within one (1) year after such shares of Common Stock are
transferred to you upon exercise of your option.

<PAGE>

         8. TRANSFERABILITY.

                  (a) If your option is an incentive stock option, your option
is not transferable, except by will or by the laws of descent and distribution,
and is exercisable during your life only by you. Notwithstanding the foregoing,
by delivering written notice to the Company, in a form satisfactory to the
Company, you may designate a third party who, in the event of your death, shall
thereafter be entitled to exercise your option.

                  (b) If your option is a nonstatutory stock option, your option
is not transferable, except (i) by will or by the laws of descent and
distribution, (ii) with the prior written approval of the Company, by instrument
to an inter vivos or testamentary trust, in a form accepted by the Company, in
which the option is to be passed to beneficiaries upon the death of the trustor
(settlor) and (iii) with the prior written approval of the Company, by gift, in
a form accepted by the Company, to your "immediate family" as that term is
defined in 17 C.F.R. 240.16a-1(e). The term "immediate family" is defined in 17
C.F.R. 240.16a-1(e) to mean any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and includes
adoptive relationships. Your option is exercisable during your life only by you
or a transferee satisfying the above-stated conditions. The right of a
transferee to exercise the transferred portion of your option after termination
of your Continuous Service shall terminate in accordance with your right to
exercise your option as specified in your option. In the event that your
Continuous Service terminates due to your death, your transferee will be treated
as a person who acquired the right to exercise your option by bequest or
inheritance. In addition to the foregoing, the Company may require, as a
condition of the transfer of your option to a trust or by gift, that your
transferee enter into an option transfer agreement provided by, or acceptable
to, the Company. The terms of your option shall be binding upon your
transferees, executors, administrators, heirs, successors, and assigns.
Notwithstanding the foregoing, by delivering written notice to the Company, in a
form satisfactory to the Company, you may designate a third party who, in the
event of your death, shall thereafter be entitled to exercise your option.

         9. RIGHT OF FIRST REFUSAL. Shares of Common Stock that you acquire upon
exercise of your option are subject to any right of first refusal that may be
described in the Company's bylaws in effect at such time the Company elects to
exercise its right. The Company's right of first refusal shall expire on the
Listing Date.

         10. RIGHT OF REPURCHASE. To the extent provided in the Company's bylaws
as amended from time to time, the Company shall have the right to repurchase all
or any part of the shares of Common Stock you acquire pursuant to the exercise
of your option.

         11. OPTION NOT A SERVICE CONTRACT. Your option is not an employment or
service contract, and nothing in your option shall be deemed to create in any
way whatsoever any obligation on your part to continue in the employ of the
Company or an Affiliate, or of the Company or an Affiliate to continue your
employment. In addition, nothing in your option shall obligate the Company or an
Affiliate, their respective stockholders, Boards of Directors, Officers or
Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate.

<PAGE>

         12. WITHHOLDING OBLIGATIONS.

                  (a) At the time you exercise your option, in whole or in part,
or at any time thereafter as requested by the Company, you hereby authorize
withholding from payroll and any other amounts payable to you, and otherwise
agree to make adequate provision for (including by means of a "cashless
exercise" pursuant to a program developed under Regulation T as promulgated by
the Federal Reserve Board to the extent permitted by the Company), any sums
required to satisfy the federal, state, local and foreign tax withholding
obligations of the Company or an Affiliate, if any, which arise in connection
with your option.

                  (b) Upon your request and subject to approval by the Company,
in its sole discretion, and compliance with any applicable conditions or
restrictions of law, the Company may withhold from fully vested shares of Common
Stock otherwise issuable to you upon the exercise of your option a number of
whole shares of Common Stock having a Fair Market Value, determined by the
Company as of the date of exercise, not in excess of the minimum amount of tax
required to be withheld by law. If the date of determination of any tax
withholding obligation is deferred to a date later than the date of exercise of
your option, share withholding pursuant to the preceding sentence shall not be
permitted unless you make a proper and timely election under Section 83(b) of
the Code, covering the aggregate number of shares of Common Stock acquired upon
such exercise with respect to which such determination is otherwise deferred, to
accelerate the determination of such tax withholding obligation to the date of
exercise of your option. Notwithstanding the filing of such election, shares of
Common Stock shall be withheld solely from fully vested shares of Common Stock
determined as of the date of exercise of your option that are otherwise issuable
to you upon such exercise. Any adverse consequences to you arising in connection
with such share withholding procedure shall be your sole responsibility.

                  (c) You may not exercise your option unless the tax
withholding obligations of the Company and/or any Affiliate are satisfied.
Accordingly, you may not be able to exercise your option when desired even
though your option is vested, and the Company shall have no obligation to issue
a certificate for such shares of Common Stock or release such shares of Common
Stock from any escrow provided for herein.

         13. NOTICES. Any notices provided for in your option or the 2000 Plan
shall be given in writing and shall be deemed effectively given upon receipt or,
in the case of notices delivered by mail by the Company to you, five (5) days
after deposit in the United States mail, postage prepaid, addressed to you at
the last address you provided to the Company.

         14. GOVERNING PLAN DOCUMENT. Your option is subject to all the
provisions of the 2000 Plan, the provisions of which are hereby made a part of
your option, and is further subject to all interpretations, amendments, rules
and regulations which may from time to time be promulgated and adopted pursuant
to the 2000 Plan. In the event of any conflict between the provisions of your
option and those of the 2000 Plan, the provisions of the 2000 Plan shall
control.

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