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                                                                    Exhibit 10.4

                       Y3K SECURE ENTERPRISE SOFTWARE INC.
                            PLACEMENT AGENT AGREEMENT

                                                    Dated as of: August 15, 2002

Westrock Advisors, Inc.
230 Park Avenue, Floor 9
New York, New York 10169

Ladies and Gentlemen:

         The  undersigned,   Y3K  SECURE  ENTERPRISE  SOFTWARE  INC.,  a  Nevada
corporation (the "Company"),  hereby agrees with Westrock  Advisors,  a New York
Corporation (the "Placement Agent") and Cornell Capital Partners, LP, A Delaware
Limited Partnership (the "Investor") as follows:

         1. Offering.  The Company hereby engages the Placement  Agent to act as
its  exclusive  placement  agent in  connection  with the Equity  Line of Credit
Agreement  dated  the date  hereof,  (the  "Equity  Line of  Credit  Agreement")
pursuant to which the Company shall issue and sell to the Investor, from time to
time, and the Investor  shall  purchase from the Company (the  "Offering") up to
Seven  Million  Dollars   ($7,000,000)  of  the  Company's   common  stock  (the
"Commitment  Amount"),  par value $.001 per share (the "Common Stock"), at price
per share  equal to the  Purchase  Price,  as that term is defined in the Equity
Line of Credit  Agreement.  Pursuant to the terms hereof,  the  Placement  Agent
shall render consulting  services to the Company with respect to the Equity Line
of Credit  Agreement and shall be available for  consultation in connection with
the  advances  to be  requested  by the  Company  pursuant to the Equity Line of
Credit Agreement

         All  capitalized  terms used herein and not  otherwise  defined  herein
shall have the same  meaning  ascribed  to them as in the Equity  Line of Credit
Agreement. The Investor will be granted certain registration rights with respect
to the Common Stock as more fully set forth in the Registration Rights Agreement
between the Company and the  Investor  dated the date hereof (the  "Registration
Rights  Agreement").  The  documents to be executed and  delivered in connection
with the Offering,  including,  but not limited,  to this Agreement,  the Equity
Line of Credit  Agreement,  the Registration  Rights  Agreement,  and the Escrow
Agreement with Wachovia  Bank,  N.A. (the "Escrow  Agreement"),  are referred to
sometimes  hereinafter  collectively as the "Offering  Materials." The Company's
Common Stock is  sometimes  referred to  hereinafter  as the  "Securities."  The
Placement  Agent shall not be obligated to sell any Securities and this Offering
by the Placement Agent shall be solely on a "best efforts basis."

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         2. Compensation.

              A. Upon the execution of this Agreement the Company shall issue to
the Placement Agent or its designee  shares of the Company's  Common Stock in an
amount equal to Ten Thousand Dollars  ($10,000) divided by the closing bid price
of the Company's Common Stock on the date  hereof.(collectively,  the "Placement
Agent's  Shares  "). The  Placement  Agent  shall be  entitled  to  "piggy-back"
registration rights triggered upon registration of any shares of Common Stock by
the  Investor  with  respect to the  Placement  Agent's  Shares  pursuant to the
Registration Rights Agreement dated the date hereof.

         3. Representations, Warranties and Covenants of the Placement Agent.

              A. The  Placement  Agent  represents,  warrants  and  covenants as
follows:

                  (i) The Placement  Agent has the necessary power to enter into
this Agreement and to consummate the transactions contemplated hereby .

                  (ii) The execution and delivery by the Placement Agent of this
Agreement and the consummation of the transactions  contemplated herein will not
result in any  violation  of, or be in conflict  with,  or  constitute a default
under, any agreement or instrument to which the Placement Agent is a party or by
which the Placement Agent or its properties are bound, or any judgment,  decree,
order or, to the Placement Agent's  knowledge,  any statute,  rule or regulation
applicable to the Placement Agent. This Agreement when executed and delivered by
the Placement Agent, will constitute the legal, valid and binding obligations of
the Placement  Agent,  enforceable in accordance  with their  respective  terms,
except  to the  extent  that (a) the  enforceability  hereof or  thereof  may be
limited by bankruptcy,  insolvency,  reorganization,  moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, (b)
the enforceability hereof or thereof is subject to general principles of equity,
or (c) the  indemnification  provisions  hereof or thereof  may be held to be in
violation of public policy.

                  (iii)  Upon  receipt  and  execution  of  this  Agreement  the
Placement Agent will promptly forward copies of this Agreement to the Company or
its counsel and the Investor or its counsel.

                  (iv)  The  Placement  Agent  will not  intentionally  take any
action  that it  reasonably  believes  would  cause the  Offering to violate the
provisions  of the  Securities  Act of 1933,  as amended (the "1933  Act"),  the
Securities  Exchange  Act of 1934 (the "1934  Act"),  the  respective  rules and
regulations  promulgated there under (the "Rules and Regulations") or applicable
"Blue Sky" laws of any state or jurisdiction.

                  (v) The  Placement  Agent will use all  reasonable  efforts to
determine  (a) whether the Investor is an  Accredited  Investor and (b) that any
information furnished by the Investor is true and accurate.  The Placement Agent
shall have no  obligation  to insure  that (x) any check,  note,  draft or other
means of payment  for the  Common  Stock will be  honored,  paid or  enforceable
against  the  Investor  in  accordance  with its  terms,  or (y)  subject to the
performance  of the  Placement  Agent's  obligations  and  the  accuracy  of the
Placement Agent's representations and warranties hereunder,  (1) the Offering is
exempt  from the  registration  requirements  of the 1933 Act or any  applicable
state "Blue Sky" law or (2) the Investor is an Accredited Investor.

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                  (vi)  The  Placement   Agent  is  a  member  of  the  National
Association of Securities  Dealers,  Inc., and is a broker-dealer  registered as
such under the 1934 Act and under the securities laws of the states in which the
Securities  will be offered or sold by the  Placement  Agent unless an exemption
for such state  registration is available to the Placement  Agent. The Placement
Agent is in compliance with all material rules and regulations applicable to the
Placement Agent generally and applicable to the Placement Agent's  participation
in the Offering.

         4.  Representations  and  Warranties  of the  Company.  A. The  Company
represents and warrants as follows:

                  (i) The  execution,  delivery and  performance of each of this
Agreement,  the Equity Line of Credit Agreement,  the Escrow Agreement,  and the
Registration Rights Agreement has been or will be duly and validly authorized by
the Company and is, or with respect to this Agreement, the Equity Line of Credit
Agreement,  the Escrow Agreement, and the Registration Rights Agreement will be,
a valid and binding agreement of the Company, enforceable in accordance with its
respective  terms,  except to the extent that (a) the  enforceability  hereof or
thereof may be limited by bankruptcy, insolvency, reorganization,  moratorium or
similar laws from time to time in effect and  affecting  the rights of creditors
generally,  (b) the  enforceability  hereof or  thereof  is  subject  to general
principles of equity or (c) the indemnification provisions hereof or thereof may
be held to be in  violation  of  public  policy.  The  Securities  to be  issued
pursuant to the transactions  contemplated by this Agreement and the Equity Line
of Credit  Agreement have been duly  authorized and, when issued and paid for in
accordance  with  (x) this  Agreement,  the  Equity  Line of  Agreement  and the
certificates/instruments  representing  such  Securities,  (y) will be valid and
binding  obligations  of the  Company,  enforceable  in  accordance  with  their
respective terms,  except to the extent that (1) the enforceability  thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
from time to time in effect and affecting the rights of creditors generally, and
(2) the  enforceability  thereof is subject to general principles of equity. All
corporate action required to be taken for the  authorization,  issuance and sale
of the Securities has been duly and validly taken by the Company.

                  (ii) The Company has a duly authorized, issued and outstanding
capitalization  as set forth herein and in the Equity Line of Credit  Agreement.
The  Company is not a party to or bound by any  instrument,  agreement  or other
arrangement  providing  for it to issue any  capital  stock,  rights,  warrants,
options or other securities, except for this Agreement, the agreements described
herein and as described in the Equity Line of Credit  Agreement,  dated the date
hereof  and  the  agreements  described  therein.  All  issued  and  outstanding
securities of the Company,  have been duly authorized and validly issued and are
fully paid and non-assessable;  the holders thereof have no rights of rescission
or  preemptive  rights  with  respect  thereto  and are not  subject to personal
liability  solely  by  reason  of  being  security  holders;  and  none  of such
securities  were issued in violation of the preemptive  rights of any holders of
any security of the Company. As of the date hereof, the authorized capital stock
of the Company  consists of 200,000,000  shares of Common Stock, par value $.001
per share of which ___________ shares of Common Stock are issued and outstanding
and no shares of Preferred Stock are outstanding.

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                  (iii) The Common  Stock to be issued in  accordance  with this
Agreement and the Equity Line of Credit  Agreement has been duly  authorized and
when issued and paid for in accordance with this  Agreement,  the Equity Line of
Credit  Agreement  and the  certificates/instruments  representing  such  Common
Stock,  will be validly  issued,  fully-paid  and  non-assessable;  the  holders
thereof will not be subject to personal liability solely by reason of being such
holders;  such  Securities  are not and will not be  subject  to the  preemptive
rights of any holder of any security of the Company.

                  (iv) The  Company has good and  marketable  title to, or valid
and enforceable  leasehold  estates in, all items of real and personal  property
necessary to conduct its business  (including,  without limitation,  any real or
personal property stated in the Offering  Materials to be owned or leased by the
Company), free and clear of all liens, encumbrances,  claims, security interests
and defects of any material nature whatsoever, other than those set forth in the
Offering Materials and liens for taxes not yet due and payable.

                  (v) There is no litigation or governmental  proceeding pending
or, to the best of the Company's knowledge, threatened against, or involving the
properties  or  business  of the  Company,  except as set forth in the  Offering
Materials.

                  (vi)  The  Company  has been  duly  organized  and is  validly
existing  as a  corporation  in good  standing  under  the laws of the  State of
Nevada. Except as set forth in the Offering Materials,  the Company does not own
or control,  directly  or  indirectly,  an  interest  in any other  corporation,
partnership,  trust, joint venture or other business entity. The Company is duly
qualified  or licensed  and in good  standing as a foreign  corporation  in each
jurisdiction   in  which  the   character  of  its   operations   requires  such
qualification or licensing and where failure to so qualify would have a material
adverse effect on the Company. The Company has all requisite corporate power and
authority,  and all material and necessary  authorizations,  approvals,  orders,
licenses,  certificates  and  permits  of and from all  governmental  regulatory
officials  and bodies  (domestic  and  foreign) to conduct its  businesses  (and
proposed  business) as described in the Offering  Materials.  Any disclosures in
the Offering  Materials  concerning the effects of foreign,  federal,  state and
local  regulation  on the  Company's  businesses  as currently  conducted and as
contemplated  are correct in all  material  respects  and do not omit to state a
material fact.  The Company has all corporate  power and authority to enter into
this Agreement,  the Equity Line of Credit  Agreement,  the Registration  Rights
Agreement,  and the Escrow Agreement, to carry out the provisions and conditions
hereof and  thereof,  and all  consents,  authorizations,  approvals  and orders
required in connection  herewith and therewith have been  obtained.  No consent,
authorization or order of, and no filing with, any court,  government  agency or
other body is  required by the Company  for the  issuance of the  Securities  or
execution and delivery of the Offering  Materials except for applicable  federal
and state  securities laws. The Company,  since its inception,  has not incurred
any  liability  arising  under or as a result of the  application  of any of the
provisions of the 1933 Act, the 1934 Act or the Rules and Regulations.

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                  (vii)  There  has  been  no  material  adverse  change  in the
condition or prospects of the Company,  financial or otherwise,  from the latest
dates as of which such  condition or prospects,  respectively,  are set forth in
the Offering Materials,  and the outstanding debt, the property and the business
of the Company  conform in all  material  respects to the  descriptions  thereof
contained in the Offering Materials.

                  (viii)  Except as set  forth in the  Offering  Materials,  the
Company is not in breach of, or in default  under,  any term or provision of any
material indenture, mortgage, deed of trust, lease, note, loan or Equity Line of
Credit  Agreement or any other  material  agreement or instrument  evidencing an
obligation for borrowed money, or any other material  agreement or instrument to
which  it is a party or by  which  it or any of its  properties  may be bound or
affected.  The Company is not in  violation  of any  provision of its charter or
by-laws or in violation of any franchise,  license, permit, judgment,  decree or
order, or in violation of any material statute, rule or regulation.  Neither the
execution  and delivery of the Offering  Materials  nor the issuance and sale or
delivery of the  Securities,  nor the  consummation  of any of the  transactions
contemplated  in the Offering  Materials nor the  compliance by the Company with
the terms and provisions hereof or thereof, has conflicted with or will conflict
with,  or has  resulted  in or will  result in a breach of, any of the terms and
provisions  of, or has  constituted or will  constitute a default under,  or has
resulted in or will result in the creation or imposition of any lien,  charge or
encumbrance  upon any property or assets of the Company or pursuant to the terms
of any indenture,  mortgage, deed of trust, note, loan or any other agreement or
instrument  evidencing an obligation for borrowed  money, or any other agreement
or  instrument to which the Company may be bound or to which any of the property
or assets of the Company is subject except (a) where such default,  lien, charge
or encumbrance  would not have a material  adverse effect on the Company and (b)
as  described  in the  Offering  Materials;  nor will such action  result in any
violation  of the  provisions  of the  charter or the by-laws of the Company or,
assuming  the  due  performance  by  the  Placement  Agent  of  its  obligations
hereunder,  any  material  statute or any  material  order,  rule or  regulation
applicable  to the  Company of any court or of any  foreign,  federal,  state or
other regulatory authority or other government body having jurisdiction over the
Company.

                  (ix) Subsequent to the dates as of which  information is given
in  the  Offering  Materials,  and  except  as may  otherwise  be  indicated  or
contemplated  herein or  therein  and the  securities  offered  pursuant  to the
Securities  Purchase  Agreement  dated the date  hereof,  the  Company  has not,
without  providing  ten days  advance  notice to the  Investor,  (a)  issued any
securities or incurred any liability or obligation,  direct or  contingent,  for
borrowed money,  or (b) entered into any transaction  other than in the ordinary
course of  business,  or (c)  declared  or paid any  dividend  or made any other
distribution  on or in respect of its capital stock.  Except as described in the
Offering Materials, the Company has no outstanding obligations to any officer or
director of the Company.

                  (x)  There  are no  claims  for  services  in the  nature of a
finder's or origination  fee with respect to the sale of the Common Stock or any
other  arrangements,  agreements or understandings that may affect the Placement
Agent's  compensation,  as determined by the National  Association of Securities
Dealers, Inc.

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              (xi) The Company owns or possesses, free and clear of all liens or
encumbrances  and rights  thereto or therein  by third  parties,  the  requisite
licenses  or other  rights to use all  trademarks,  service  marks,  copyrights,
service names, trade names, patents,  patent applications and licenses necessary
to conduct its business  (including,  without  limitation,  any such licenses or
rights  described in the  Offering  Materials as being owned or possessed by the
Company) and, except as set forth in the Offering  Materials,  there is no claim
or action by any person  pertaining  to, or  proceeding,  pending or threatened,
which  challenges  the  exclusive  rights of the  Company  with  respect  to any
trademarks,  service marks,  copyrights,  service names,  trade names,  patents,
patent applications and licenses used in the conduct of the Company's businesses
(including,  without  limitation,  any such licenses or rights  described in the
Offering  Materials as being owned or possessed by the Company) except any claim
or action  that would not have a material  adverse  effect on the  Company;  the
Company's  current  products,  services or processes do not infringe or will not
infringe on the patents currently held by any third party.

              (xii) Except as described in the Offering  Materials,  the Company
is not under any  obligation to pay royalties or fees of any kind  whatsoever to
any third  party with  respect to any  trademarks,  service  marks,  copyrights,
service names, trade names, patents, patent applications, licenses or technology
it has developed, uses, employs or intends to use or employ, other than to their
respective licensors.

              (xiii) Subject to the  performance  by the Placement  Agent of its
obligations  hereunder and the offer and sale of the Securities comply, and will
continue to comply in all material respects with the requirements of Rule 506 of
Regulation  D  promulgated  by the SEC  pursuant  to the 1933 Act and any  other
applicable  federal and state laws,  rules,  regulations  and executive  orders.
Neither the Offering  Materials nor any amendment or supplement  thereto nor any
documents  prepared by the Company in connection  with the Offering will contain
any untrue  statement  of a  material  fact or omit to state any  material  fact
required to be stated  therein or necessary to make the statements  therein,  in
light of the  circumstances  under  which they were made,  not  misleading.  All
statements of material  facts in the Offering  Materials are true and correct as
of the date of the Offering Materials.

              (xiv)  All  material  taxes  which  are due and  payable  from the
Company  have been  paid in full or  adequate  provision  has been made for such
taxes on the books of the Company  except for those taxes disputed in good faith
the Company does not have any tax  deficiency or claim  outstanding  assessed or
proposed against it.

              (xv)  None  of the  Company  nor any of its  officers,  directors,
employees or agents, nor any other person acting on behalf of the Company,  has,
directly  or  indirectly,  given or agreed to give any  money,  gift or  similar
benefit (other than legal price  concessions to customers in the ordinary course
of  business)  to any  customer,  supplier,  employee  or agent of a customer or
supplier,  or official or employee of any governmental agency or instrumentality
of any government  (domestic or foreign) or any political party or candidate for
office  (domestic  or foreign) or other person who is or may be in a position to
help or hinder the business of the Company (or assist it in connection  with any
actual or  proposed  transaction)  which (A) might  subject  the  Company to any
damage  or  penalty  in  any  civil,  criminal  or  governmental  litigation  or
proceeding, or (B) if not given in the past, might have had a materially adverse
effect on the assets,  business or operations of the Company as reflected in any
of the financial statements  contained in the Offering Materials,  or (C) if not
continued in the future, might adversely affect the assets, business, operations
or prospects of the Company in the future.

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                  5. Representations,  Warranties and Covenants of the Investor.

                  A. The Investor represents, warrants and covenants as follows:

              (i) The  Investor  has the  necessary  power  to enter  into  this
Agreement and to consummate the transactions contemplated hereby.

              (ii) The execution and delivery by the Investor of this  Agreement
and the consummation of the transactions  contemplated herein will not result in
any violation of, or be in conflict  with,  or constitute a default  under,  any
agreement  or  instrument  to which  the  Investor  is a party  or by which  the
Investor or its properties are bound, or any judgment,  decree, order or, to the
Investor's  knowledge,  any  statute,  rule  or  regulation  applicable  to  the
Investor.  This  Agreement  when executed and  delivered by the  Investor,  will
constitute the legal, valid and binding obligations of the Investor, enforceable
in accordance  with their  respective  terms,  except to the extent that (a) the
enforceability  hereof or  thereof  may be limited  by  bankruptcy,  insolvency,
reorganization,  moratorium  or  similar  laws from  time to time in effect  and
affecting the rights of creditors  generally,  (b) the enforceability  hereof or
thereof is subject to general  principles of equity, or (c) the  indemnification
provisions hereof or thereof may be held to be in violation of public policy.

              (iii) The Investor will promptly forward copies of any and all due
diligence questionnaires compiled by the Investor to the Placement Agent.

         6. Certain Covenants and Agreements of the Company.

         The Company covenants and agrees at its expense and without any expense
to the Placement Agent as follows:

         A. To advise the Placement Agent of any material  adverse change in the
Company's  financial  condition,  prospects  or business  or of any  development
materially  affecting the Company or rendering untrue or misleading any material
statement in the Offering Materials occurring at any time as soon as the Company
is either informed or becomes aware thereof.

         B. To use its commercially reasonable efforts to cause the Common Stock
issuable  in  connection  with the  Equity  Line of  Credit to be  qualified  or
registered for sale on terms  consistent  with those stated in the  Registration
Rights  Agreement and under the  securities  laws of such  jurisdictions  as the
Placement  Agent  and the  Investor  shall  reasonably  request.  Qualification,
registration  and  exemption  charges  and fees  shall  be at the sole  cost and
expense of the Company.

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         C. Upon  written  request,  to provide  and  continue  to  provide  the
Placement  Agent and the Investor copies of all quarterly  financial  statements
and audited annual financial statements prepared by or on behalf of the Company,
other reports prepared by or on behalf of the Company for public  disclosure and
all documents delivered to the Company's stockholders.

         D. To deliver, during the registration period of the Equity Line Credit
Agreement,  to the Placement Agent upon the Placement  Agent's  request,  within
forty five (45) days, a statement of its income for each such quarterly  period,
and its balance sheet and a statement of changes in  stockholders'  equity as of
the end of such quarterly  period,  all in reasonable  detail,  certified by its
principal  financial or accounting  officer;  (ii) within ninety (90) days after
the close of each fiscal year,  its balance sheet as of the close of such fiscal
year,   together  with  a  statement  of  income,  a  statement  of  changes  in
stockholders'  equity and a statement  of cash flow for such fiscal  year,  such
balance sheet, statement of income, statement of changes in stockholders' equity
and statement of cash flow to be in reasonable  detail and accompanied by a copy
of the  certificate  or  report  thereon  of  independent  auditors  if  audited
financial  statements are prepared;  and (iii) a copy of all documents,  reports
and information  furnished to its  stockholders at the time that such documents,
reports and information are furnished to its stockholders.

         E. To comply with the terms of the Offering Materials.

         F. To ensure that any transactions between or among the Company, or any
of its officers, directors and affiliates be on terms and conditions that are no
less  favorable  to the  Company,  than the terms and  conditions  that would be
available in an "arm's length" transaction with an independent third party.

         7.       Indemnification.

                  A. The Company  hereby agrees that it will  indemnify and hold
the  Placement  Agent  and each  officer,  director,  shareholder,  employee  or
representative of the Placement Agent and each person controlling, controlled by
or under common  control with the Placement  Agent within the meaning of Section
15 of the  1933  Act or  Section  20 of the  1934  Act or the  SEC's  Rules  and
Regulations promulgated there under (the "Rules and Regulations"), harmless from
and  against  any  and all  loss,  claim,  damage,  liability,  cost or  expense
whatsoever (including, but not limited to, any and all reasonable legal fees and
other  expenses and  disbursements  incurred in connection  with  investigating,
preparing to defend or defending any action,  suit or proceeding,  including any
inquiry or investigation, commenced or threatened, or any claim whatsoever or in
appearing  or  preparing  for  appearance  as a witness in any  action,  suit or
proceeding,  including any inquiry, investigation or pretrial proceeding such as
a deposition)  to which the Placement  Agent or such  indemnified  person of the
Placement  Agent may become  subject under the 1933 Act, the 1934 Act, the Rules
and Regulations, or any other federal or state law or regulation,  common law or
otherwise,  arising  out of or based  upon (i) any untrue  statement  or alleged
untrue  statement  of a  material  fact  contained  in  (a)  Section  4 of  this
Agreement,  (b) the Offering Materials (except those written statements relating
to the Placement  Agent given by an indemnified  person for inclusion  therein),
(c) any application or other document or written  communication  executed by the
Company or based upon written information  furnished by the

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Company filed in any jurisdiction in order to qualify the Common Stock under the
securities laws thereof, or any state securities  commission or agency; (ii) the
omission or alleged omission from documents described in clauses (a), (b) or (c)
above of a material fact required to be stated  therein or necessary to make the
statements  therein not misleading;  or (iii) the breach of any  representation,
warranty,  covenant  or  agreement  made by the Company in this  Agreement.  The
Company further agrees that upon demand by an indemnified person, at any time or
from time to time, it will promptly  reimburse such  indemnified  person for any
loss, claim, damage,  liability, cost or expense actually and reasonably paid by
the  indemnified  person as to which the  Company  has  indemnified  such person
pursuant  hereto.  Notwithstanding  the foregoing  provisions of this  Paragraph
6(A),  any such  payment or  reimbursement  by the Company of fees,  expenses or
disbursements  incurred by an  indemnified  person in any  proceeding in which a
final  judgment by a court of competent  jurisdiction  (after all appeals or the
expiration  of time to appeal) is entered  against the  Placement  Agent or such
indemnified  person based upon specific finding of fact that the Placement Agent
or such  indemnified  person's gross  negligence or willful  misfeasance will be
promptly repaid to the Company.

         B. The Placement  Agent hereby  agrees that it will  indemnify and hold
the Company and each officer, director, shareholder,  employee or representative
of the  Company,  and each person  controlling,  controlled  by or under  common
control  with the  Company  within the  meaning of Section 15 of the 1933 Act or
Section  20 of the 1934 Act or the  Rules  and  Regulations,  harmless  from and
against any and all loss, claim, damage,  liability,  cost or expense whatsoever
(including,  but not  limited  to, any and all  reasonable  legal fees and other
expenses and disbursements incurred in connection with investigating,  preparing
to defend or defending any action, suit or proceeding,  including any inquiry or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or preparing  for  appearance  as a witness in any action,  suit or  proceeding,
including  any  inquiry,   investigation  or  pretrial   proceeding  such  as  a
deposition) to which the Company or such  indemnified  person of the Company may
become subject under the 1933 Act, the 1934 Act, the Rules and  Regulations,  or
any other federal or state law or regulation,  common law or otherwise,  arising
out of or based upon (i) the  conduct of the  Placement  Agent or its  officers,
employees or  representatives  in its acting as Placement Agent for the Offering
or (ii)  the  material  breach  of any  representation,  warranty,  covenant  or
agreement  made by the  Placement  Agent in this  Agreement  (iii)  any false or
misleading  information  provided to the Company by one of the Placement Agent's
indemnified persons.

         C. The  Investor  hereby  agrees  that it will  indemnify  and hold the
Placement   Agent  and  each  officer,   director,   shareholder,   employee  or
representative of the Placement Agent, and each person  controlling,  controlled
by or under  common  control  with the  Placement  Agent  within the  meaning of
Section  15 of the 1933 Act or  Section  20 of the  1934  Act or the  Rules  and
Regulations,  harmless  from  and  against  any and  all  loss,  claim,  damage,
liability,  cost or expense whatsoever  (including,  but not limited to, any and
all  reasonable  legal fees and other  expenses  and  disbursements  incurred in
connection with investigating, preparing to defend or defending any action, suit
or proceeding, including any inquiry or investigation,  commenced or threatened,
or any claim whatsoever or in appearing or preparing for appearance as a witness
in any action,  suit or  proceeding,  including  any inquiry,  investigation  or
pretrial  proceeding  such as a deposition) to which the Placement Agent or such
indemnified person of the Placement Agent may become subject under the 1933 Act,
the 1934 Act, the Rules and  Regulations,  or any other  federal or state law or
regulation,  common  law or  otherwise,  arising  out of or  based  upon (i) the
conduct of the Investor or its  officers,  employees or  representatives  in its
acting as the  Investor  for the  Offering  or (ii) the  material  breach of any
representation,  warranty,  covenant or  agreement  made by the  Investor in the
Offering  Materials  (iii) any false or misleading  information  provided to the
Placement Agent by one of the Investor's indemnified persons.

                                       9
<PAGE>

         D. The Placement  Agent hereby  agrees that it will  indemnify and hold
the Investor and each officer, director, shareholder, employee or representative
of the  Investor,  and each person  controlling,  controlled  by or under common
control  with the  Investor  within the meaning of Section 15 of the 1933 Act or
Section  20 of the 1934 Act or the  Rules  and  Regulations,  harmless  from and
against any and all loss, claim, damage,  liability,  cost or expense whatsoever
(including,  but not  limited  to, any and all  reasonable  legal fees and other
expenses and disbursements incurred in connection with investigating,  preparing
to defend or defending any action, suit or proceeding,  including any inquiry or
investigation,  commenced or threatened, or any claim whatsoever or in appearing
or preparing  for  appearance  as a witness in any action,  suit or  proceeding,
including  any  inquiry,   investigation  or  pretrial   proceeding  such  as  a
deposition) to which the Investor or such indemnified person of the Investor may
become subject under the 1933 Act, the 1934 Act, the Rules and  Regulations,  or
any other federal or state law or regulation,  common law or otherwise,  arising
out of or based upon (i) the  conduct of the  Placement  Agent or its  officers,
employees  or  representatives  in its  acting  as the  Placement  Agent for the
Offering or (ii) the material breach of any representation,  warranty,  covenant
or agreement made by the Placement  Agent in this  Agreement  (iii) any false or
misleading  information provided to the Investor by one of the Placement Agent's
indemnified persons.

         E.  Promptly  after  receipt  by an  indemnified  party  of  notice  of
commencement  of any action covered by Section 6(A),  (B), (C) or (D), the party
to be indemnified shall,  within five (5) business days, notify the indemnifying
party of the commencement  thereof; the omission by one (1) indemnified party to
so notify the indemnifying party shall not relieve the indemnifying party of its
obligation to indemnify any other  indemnified  party that has given such notice
and shall not relieve the  indemnifying  party of any liability  outside of this
indemnification  if not  materially  prejudiced  thereby.  In the event that any
action is brought against the indemnified  party, the indemnifying party will be
entitled to participate  therein and, to the extent it may desire, to assume and
control  the  defense  thereof  with  counsel  chosen by it which is  reasonably
acceptable to the indemnified party. After notice from the indemnifying party to
such  indemnified  party of its election to so assume the defense  thereof,  the
indemnifying  party  will not be liable to such  indemnified  party  under  such
Section  6(A),  (B),  (C), or (D) for any legal or other  expenses  subsequently
incurred by such indemnified  party in connection with the defense thereof,  but
the  indemnified  party may, at its own expense,  participate in such defense by
counsel  chosen by it,  without,  however,  impairing the  indemnifying  party's
control  of  the  defense.   Subject  to  the  proviso  of  this   sentence  and
notwithstanding  any other  statement  to the  contrary  contained  herein,  the
indemnified  party or  parties  shall  have the right to choose its or their own
counsel  and  control  the  defense  of any  action,  all at the  expense of the
indemnifying  party if,  (i) the  employment  of such  counsel  shall  have been
authorized in writing by the  indemnifying  party in connection with the defense
of  such  action  at  the  expense  of  the  indemnifying  party,  or  (ii)  the

                                       10
<PAGE>

indemnifying  party shall not have employed counsel  reasonably  satisfactory to
such  indemnified  party to have charge of the  defense of such action  within a
reasonable  time  after  notice of  commencement  of the  action,  or (iii) such
indemnified  party or parties shall have reasonably  concluded that there may be
defenses available to it or them which are different from or additional to those
available  to one  or  all  of the  indemnifying  parties  (in  which  case  the
indemnifying  parties  shall not have the right to direct  the  defense  of such
action on behalf of the  indemnified  party or parties),  in any of which events
such  fees  and  expenses  of one  additional  counsel  shall  be  borne  by the
indemnifying party; provided, however, that the indemnifying party shall not, in
connection with any one action or separate but substantially  similar or related
actions in the same jurisdiction  arising out of the same general allegations or
circumstance,  be liable for the  reasonable  fees and expenses of more than one
separate  firm of attorneys  at any time for all such  indemnified  parties.  No
settlement of any action or  proceeding  against an  indemnified  party shall be
made without the consent of the indemnifying party.

         F.  In  order  to  provide  for  just  and  equitable  contribution  in
circumstances in which the indemnification  provided for in Section 6(A) or 6(B)
is due in accordance  with its terms but is for any reason held by a court to be
unavailable  on grounds of policy or  otherwise,  the Company and the  Placement
Agent shall contribute to the aggregate losses,  claims, damages and liabilities
(including  legal or other expenses  reasonably  incurred in connection with the
investigation  or defense of same) which the other may incur in such  proportion
so that the  Placement  Agent  shall be  responsible  for  such  percent  of the
aggregate of such losses,  claims,  damages and  liabilities  as shall equal the
percentage of the gross  proceeds  paid to the  Placement  Agent and the Company
shall be responsible for the balance;  provided,  however, that no person guilty
of fraudulent  misrepresentation within the meaning of Section 11(f) of the 1933
Act shall be entitled to contribution from any person who was not guilty of such
fraudulent  misrepresentation.  For  purposes of this Section  6(F),  any person
controlling,  controlled by or under common control with the Placement Agent, or
any partner,  director,  officer,  employee,  representative or any agent of any
thereof,  shall have the same rights to  contribution as the Placement Agent and
each person controlling,  controlled by or under common control with the Company
within  the  meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act
and each officer of the Company and each  director of the Company shall have the
same rights to contribution  as the Company.  Any party entitled to contribution
will,  promptly after receipt of notice of commencement  of any action,  suit or
proceeding  against such party in respect of which a claim for  contribution may
be made against the other party under this Section 6(D),  notify such party from
whom contribution may be sought,  but the omission to so notify such party shall
not relieve the party from whom  contribution  may be sought from any obligation
they may have hereunder or otherwise if the party from whom  contribution may be
sought is not  materially  prejudiced  thereby.  The indemnity and  contribution
agreements  contained in this Section 6 shall remain operative and in full force
and  effect  regardless  of  any  investigation  made  by or on  behalf  of  any
indemnified person or any termination of this Agreement.

         8. Payment of Expenses.

         The Company  hereby  agrees to bear all of the  expenses in  connection
with the Offering,  including,  but not limited to the  following:  filing fees,
printing and duplicating  costs,  advertisements,  postage and mailing  expenses
with respect to the transmission of Offering  Materials,  registrar and transfer
agent fees,  escrow agent fees and expenses,  fees of the Company's  counsel and
accountants, issue and transfer taxes, if any.

                                       11
<PAGE>

         9.       Conditions of Closing

         The  Closing  shall  be  held at the  offices  of the  Investor  or its
counsel.  The  obligations of the Placement  Agent hereunder shall be subject to
the  continuing  accuracy of the  representations  and warranties of the Company
herein as of the date hereof and as of the Date of Closing (the "Closing  Date")
with  respect to the  Company  as if it had been made on and as of such  Closing
Date;  the  accuracy  on and as of the  Closing  Date of the  statements  of the
officers  of the  Company  made  pursuant  to the  provisions  hereof;  and  the
performance  by the Company on and as of the Closing Date of its  covenants  and
obligations hereunder and to the following further conditions:

         A. Upon the  effectiveness  of a  registration  statement  covering the
Equity Line of Credit  Agreement,  the Placement Agent shall receive the opinion
of Counsel to the Company,  dated as of the date thereof, which opinion shall be
in form and substance reasonably satisfactory to the Investor, their counsel and
the Placement Agent.

         B. At or prior to the  Closing,  the  Placement  Agent  shall have been
furnished such documents, certificates and opinions as it may reasonably require
for the purpose of enabling them to review or pass upon the matters  referred to
in this  Agreement  and the  Offering  Materials,  or in order to  evidence  the
accuracy, completeness or satisfaction of any of the representations, warranties
or conditions herein contained.

         C. At and prior to the  Closing,  (i) there shall have been no material
adverse change nor development  involving a prospective  change in the condition
or prospects or the business activities,  financial or otherwise, of the Company
from the latest  dates as of which such  condition  is set forth in the Offering
Materials; (ii) there shall have been no transaction, not in the ordinary course
of  business  except  the  transactions  pursuant  to  the  Securities  Purchase
Agreement  entered  into by the  Company  which  has not been  disclosed  in the
Offering  Materials or to the  Placement  Agent in writing;  (iii) except as set
forth in the Offering  Materials,  the Company shall not be in default under any
provision of any instrument relating to any outstanding indebtedness for which a
waiver or extension has not been otherwise received; (iv) except as set forth in
the Offering Materials,  the Company shall not have issued any securities (other
than those to be issued as provided in the  Offering  Materials)  or declared or
paid any dividend or made any distribution of its capital stock of any class and
there shall not have been any change in the indebtedness (long or short term) or
liabilities or  obligations  of the Company  (contingent or otherwise) and trade
payable  debt;  (v) no material  amount of the assets of the Company  shall have
been pledged or mortgaged,  except as indicated in the Offering  Materials;  and
(v) no action, suit or proceeding,  at law or in equity,  against the Company or
affecting any of its  properties  or  businesses  shall be pending or threatened
before  or by  any  court  or  federal  or  state  commission,  board  or  other
administrative  agency,  domestic or foreign,  wherein an unfavorable  decision,
ruling or finding could materially adversely affect the businesses, prospects or
financial  condition  or  income  of the  Company,  except  as set  forth in the
Offering Materials.

                                       12
<PAGE>

         D. At Closing,  the Placement  Agent shall receive a certificate of the
Company signed by an executive officer and chief financial officer,  dated as of
the  applicable  Closing,  to the  effect  that  the  conditions  set  forth  in
subparagraph  (C) above  have been  satisfied  and  that,  as of the  applicable
closing,  the representations and warranties of the Company set forth herein are
true and correct.

         10. Termination.

         This Agreement  shall be co-terminus  with, and terminate upon the same
terms and conditions as those set forth in, the Equity Line of Credit Agreement.
The  rights  of the  Investor  and the  obligations  of the  Company  under  the
Registration  Rights  Agreement,  and the rights of the Placement  Agent and the
obligations  of the Company  shall  survive the  termination  of this  Agreement
unabridged.

         11. Miscellaneous.

         A. This Agreement may be executed in any number of  counterparts,  each
of which shall be deemed to be an original,  but all which shall be deemed to be
one and the same instrument.

         B. Any notice  required or  permitted  to be given  hereunder  shall be
given in writing  and shall be deemed  effective  when  deposited  in the United
States mail, postage prepaid, or when received if personally  delivered or faxed
(upon  confirmation  of receipt  received by the sending  party),  addressed  as
follows:

                                       13
<PAGE>

If to Placement Agent, to:               Westrock Advisors, Inc.
                                         230 Park Avenue, Floor 9
                                         New York, New York 10169

If to the Company, to:                   Y3K SECURE ENTERPRISE SOFTWARE INC.
                                         108 West Stewart Avenue
                                         Puyallup, Washington, 98371
                                         Attention: King Cole
                                         Telephone:  (253) 284-2935
                                         Facsimile:   (253) 284-2944

With a copy to:                          Law Office of Jack G.Orr
                                         Attention: Jack G. Orr, Esq.
                                         3019 Narrows Place
                                         Tacoma, Washington
                                         Telephone: (253) 756-9795

If to the Investor:                      Cornell Capital Partners, LP
                                         101 Hudson Street - Suite 3606
                                         Jersey City, NJ 07302
                                         Attention: Mark A. Angelo
                                         Portfolio Manager
                                         Telephone: (201) 985-8300
                                         Facsimile: (201) 985-8266

With Copies to:                          Butler Gonzalez LLP
                                         1000 Stuyvesat Aveneue _ Suite No.: 6
                                         Union, NJ 07083
                                         Attention: David Gonzalez, Esq.
                                         Telephone: (908) 810-8588
                                         Facsimile: (908) 810-0973

or to such other address of which written notice is given to the others.

<PAGE>

         C. This  Agreement  shall be governed by and  construed in all respects
under the laws of the State of New York,  without  reference  to its conflict of
laws rules or principles. Any suit, action, proceeding or litigation arising out
of or relating to this Agreement shall be brought and prosecuted in such federal
or state  court or courts  located  within the State of New York as  provided by
law.  The  parties  hereby  irrevocably  and  unconditionally   consent  to  the
jurisdiction  of each such court or courts  located within the State of New York
and to service of  process by  registered  or  certified  mail,  return  receipt
requested,  or by any other  manner  provided  by  applicable  law,  and  hereby
irrevocably and unconditionally  waive any right to claim that any suit, action,
proceeding  or litigation  so commenced  has been  commenced in an  inconvenient
forum.

                                       14
<PAGE>

         D. This Agreement and the other  agreements  referenced  herein contain
the entire  understanding  between the parties hereto and may not be modified or
amended except by a writing duly signed by the party against whom enforcement of
the modification or amendment is sought.

         E. If any  provision of this  Agreement  shall be held to be invalid or
unenforceable,  such invalidity or  unenforceability  shall not affect any other
provision  of this  Agreement.  The  terms of this  Agreement  should be read in
conjunction  with the Equity  Line of Credit  Agreement  and  should  there be a
conflict  of  terms,  the  language  and  intent  of the  Equity  Line of Credit
Agreement shall govern.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the date first written above.

                           COMPANY:
                           Y3K SECURE ENTERPRISE SOFTWARE INC.

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

                           PLACEMENT AGENT:
                           WESTROCK ADVISORS, INC.

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

                           INVESTOR:
                           CORNELL CAPITAL PARTNERS, LP

                           By: Yorkville Advisors, LLC
                           Its: General Partner

                           By:_________________________________
                           Name: Mark A. Angelo
                           Title: Portfolio Manager

                                       16<PAGE>
                                                                     Exhibit 4.1

                                SERVICE AGREEMENT

                             DATED 21st MARCH 2003

                             (1) BRITISH BIOTECH PLC

                                (2) DR P FELLNER

                                 ALLEN & OVERY

                                     London

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                            PAGE
------                                                            ----

<S>                                                                <C>
1.       Definitions................................................1
2.       Appointment................................................1
3.       Duties.....................................................2
4.       Other Activities...........................................2
5.       Place of Performance.......................................3
6.       Remuneration...............................................3
7.       Expenses...................................................4
8.       Hours of Work/Holiday......................................4
9.       Sickness/Injury............................................4
10.      Grievances/Disciplinary Decisions..........................5
11.      Confidentiality............................................5
12.      Protection of Interests of the Company.....................5
13.      Inventions.................................................6
14.      Publicity..................................................7
15.      Liquidation/Amalgamation...................................7
16.      Default....................................................7
17.      Termination................................................7
18.      Additional Particulars.....................................8
19.      Term and Termination.......................................8
20.      Continuing Terms...........................................8
21.      Notices....................................................9
</TABLE>

<PAGE>

THIS AGREEMENT is made the 21 day of March 2003

BETWEEN:

(1)      BRITISH BIOTECH PLC (registered number 2304992) whose registered office
         is situated at Watlington Road, Oxford OX4 5LY (THE COMPANY); and

(2)      PETER FELLNER of XXXXXXXXXX (THE DIRECTOR).

         NOW IT IS HEREBY AGREED as follows:

1.       DEFINITIONS

         In this Agreement the following expressions shall have the following
         meanings:

         ASSOCIATED COMPANY means any company which for the time being is a
         holding company (as such expression is defined by Section 736 of the
         Companies Act 1985 as amended by Section 144 of the Companies Act 1989)
         of the Company or any subsidiary of any such holding company;

         THE BOARD means the Board of Directors of the Company;

         OPTION means the option granted to the Director by the Company by deed
         (the "Option Deed") to be dated on or around 22nd April 2003;

         SUBSIDIARY means any company which for the time being is a subsidiary
         company (as such expression is defined by Section 736 of the Companies
         Act 1985 as amended by Section 144 of the Companies Act 1989) of any
         other company;

         TERMINATION DATE means the date on which the employment of the Director
         under this Agreement shall terminate for whatever reason irrespective
         of whether the Company shall have been in breach of this Agreement.

2.       APPOINTMENT

2.1      The Director shall be appointed Chairman with executive
         responsibilities of the Company (which shall be deemed to be his job
         title for the purposes of this Agreement and of the Employment Rights
         Act 1996) unless amended by a letter in writing from the Company.

2.2      The appointment may be terminated by either party giving to the other
         not less than 12 calendar months prior notice in writing subject to the
         provisions of Clause 6.2.

2.3      The Director has been appointed a Director of the Company and will
         remain so during the period of his employment by the Company.

                                       1
<PAGE>

2.4      This Agreement shall not take effect until Completion as defined in the
         Undertaking relating to the offer by British Biotech PLC for
         RiboTargets Holdings PLC dated 21st March 2003 and the Appointment will
         take effect subject to the Director stepping down from his executive
         responsibilities at Celltech Group PLC.

3.       DUTIES

         During the continuance of his engagement hereunder the Director shall:

         (a) develop shareholder value for all shareholders;

         (b) oversee preparation of the Company's strategic plan;

         (c) ensure an adequate Board and management succession plan is in
             place;

         (d) chair Board meetings, manage the business of the Board and of the
             Non-Executive Directors;

         (e) direct the business development activities of the Company,
             Subsidiaries and Associated Companies in association with the
             Company's Chief Executive;

         (f) perform such duties and exercise such powers, authorities and
             discretions as the Board shall from time to time delegate to him on
             such terms and conditions and subject to such restrictions as the
             Board may from time to time reasonably impose;

         (g) use his best endeavours to promote the interests of the Company and
             those of its Subsidiary and Associated Companies for the time being
             and shall, in accordance with Clause 8.1 of this Agreement, unless
             prevented by illness or other incapacity devote the whole of his
             time, attention and abilities to the business and affairs of the
             Company and its Subsidiary and Associated Companies, if any, for
             the time being;

         (h) in the discharge of such duties and in the exercise of such powers
             observe and comply with all resolutions, regulations and directions
             from time to time made or given by the Board;

         (i) act as an officer of any Subsidiary or Associated Company or hold
             any other appointment or office as nominee or representative of the
             Company or any Subsidiary or Associated Company as directed by the
             Board.

4.       OTHER ACTIVITIES

         Save as already disclosed to the Board before the date of this
         Agreement (including, for the avoidance of doubt, the Director's
         proposed role as non-executive Chairman at Celltech Group PLC) the
         Director shall not during the continuance of this Agreement without the
         consent of the Board (such consent not to be unreasonably withheld or
         delayed) directly or indirectly engage in any other business or be
         concerned or interested (within the meaning contained in Part VI of the
         Companies Act 1985) in the share capital of any other business save
         that he may be interested (defined as aforesaid) as a holder or
         beneficial owner of not more than five per cent. (5%) of any class of
         stock shares or debentures which are listed on any publicly quoted
         market..

                                       2
<PAGE>

5.       PLACE OF PERFORMANCE

         The Director's duties hereunder shall be performed at the Company's
         head office or at such other place as the Board shall from time to time
         reasonably direct and further the Board shall be at liberty to appoint
         the Director to serve any of its Subsidiary or Associated Companies if
         any for the time being (without further remuneration unless otherwise
         agreed).

6.       REMUNERATION

6.1      As remuneration for his services hereunder the Director shall be
         entitled to a basic salary payable at the rate of two hundred thousand
         pounds sterling (Pound Sterling200,000) per annum (exclusive of any
         share option grant which may from time to time be made by the Board)
         payable in equal monthly instalments (and proportionately for any
         lesser period each monthly instalment being deemed to accrue rateably
         from day to day) on the last day of every calendar month in arrears.
         Such remuneration shall be inclusive of any fees payable to him as a
         Director or other officer of the Company or of its Subsidiary or
         Associated Companies if any for the time being. The salary payable
         hereunder shall be variable upwards by decision of the Board and
         subject to review during the month of April 2004 and at least once in
         each financial year thereafter.

  6.2    As further remuneration for his services hereunder the Director will
         also be entitled to the cash bonuses set out below on satisfaction of
         the share price targets referred to below, provided that such
         entitlement shall only arise (i) if an when the Director exercises
         Options under the Option Deed; and (ii) then only to the extent of half
         of the amount paid by the Director in respect of the aggregate option
         price payable by the Director on the exercise of such Options (subject
         always to the limits set out below. Any amount paid under this Clause
         6.2 will be paid subject to deduction of such tax and National
         Insurance contributions as is required by law to be made.

<TABLE>
<CAPTION>
              Amount of bonus              Share price value target
              Pound Sterling                          p

               <S>                                 <C>
               Pound Sterling594,000                 100
               Pound Sterling169,500                 120
               Pound Sterling169,500                 140
               Pound Sterling169,500                 160
               Pound Sterling594,000                 200
               Pound Sterling594,000                 300
</TABLE>

         For this purpose, the share price will only have reached the requisite
         value if the market value of a share (being its middle market quotation
         as derived from the Daily Official List of the London Stock Exchange
         plc) has been at or above the required value over 30 consecutive
         dealing days on which the London Stock Exchange is open for business.

         On the vesting of any part of the Option in accordance with the Option
         Deed, the Director agrees that he will remain in office as Chairman of
         the Company under this Agreement for a further period of at least 12
         months.

                                       3
<PAGE>

7.       EXPENSES

         The Company shall pay to the Director all reasonable travelling
         entertainment and other expenses incurred by him in the performance of
         his duties under this Agreement. The Director shall, on being so
         required, provide the Company with vouchers or other evidence of actual
         payment of such expenses.

8.       HOURS OF WORK/HOLIDAY

8.1      The Director shall perform such hours of work as may from time to time
         be reasonably required of him and shall not be entitled to receive any
         additional remuneration for work outside his normal hours. The Director
         will normally be expected to work for 2-3 days per week.

8.2      The Director shall be entitled during every calendar year to a minimum
         of twelve (12) working days holiday in addition to bank or public
         holidays in the UK, or to such longer holidays as shall from time to
         time be agreed by the Board, during which his remuneration hereunder
         shall continue to be payable. Holidays shall be taken at such times as
         the Director and the Board shall consider most convenient having regard
         to the requirements of the Company's business. Holiday entitlement
         during the calendar year in which the Director's employment commences
         and ceases will be based on his length of service in the calendar year
         in question and will be proportionate to the whole year's entitlement.
         Save as may be permitted in the Company's general personnel policy,
         holidays may not be carried forward from one calendar year to the next
         and no payment will be made by the Company (whether during the
         continuance or on termination of this Agreement) in lieu of holidays
         not taken.

9.       SICKNESS/INJURY

9.1      In the event that the Director shall at any time be prevented by
         illness or other incapacity from properly performing his duties
         hereunder (and shall if required furnish the Board with evidence
         satisfactory to them of such incapacity) he shall be entitled to
         receive his full salary for the first six (6) months and one half of
         his full salary for the next consecutive period of six (6) months
         during which such incapacity shall continue;

9.2      Any salary received by the Director pursuant to the foregoing Clause
         9.1 shall be inclusive of any payment which the Company is required to
         make in respect of Statutory Sick Pay. The Director shall keep the
         Company informed of the amount of any National Health Insurance
         sickness or injury benefits to which he is entitled (whether or not
         these are received) and which are not covered by Statutory Sick Pay and
         a deduction of the amount of such benefit will be made by the Company
         from any salary payable under the Clause 9.1;

9.3      Notwithstanding the provisions of Clause 2.2 of this Agreement, if the
         Director shall continue so incapacitated for a longer period than
         twelve (12) consecutive months or if he shall be so incapacitated at
         different times for more than twelve (12) months in any one period of
         eighteen (18) consecutive months then and in either of such cases the
         Company shall be entitled forthwith to terminate the engagement of the
         Director by notice in writing and thereupon the Director shall have no
         claim against the Company in respect of such termination. The length of
         the said notice to be given to the Director hereunder shall be the
         minimum period permitted by statute and dependent upon his length of
         service.

                                       4
<PAGE>

10.      GRIEVANCES/DISCIPLINARY DECISIONS

         There are no specific disciplinary or grievance procedures applying
         to the Director's position.

11.      CONFIDENTIALITY

11.1     In respect of Confidential Information of the Company or any Subsidiary
         or Associated Company, the Director will not, unless authorised to do
         so by the Board or by a Court of competent jurisdiction, during the
         continuance of his employment or for a period of five (5) years
         thereafter:

         (a) use Confidential Information for his own benefit or the benefit of
             any other person; or

         (b) disclose Confidential Information to any person; or

         (c) through any failure to exercise all reasonable care and diligence
             cause any disclosure of Confidential Information to any person.

11.2     Confidential Information shall include any information relating to
         research and development projects, inventions, processes, practical
         experience and methodology, technical and scientific data,
         specifications and formulae (whether or not patented or patentable)
         developed or acquired and owned or used by the Company any Subsidiary
         or Associated Company for the subject of research, production
         programmes, lists or details of transactions of, or related to, the
         Company any Subsidiary or Associated Company with customers, commercial
         relationships (including collaboration agreements) of, or related to,
         the Company any Subsidiary or Associated Company, finances, business
         developments and future business strategy of, or related to, the
         Company any Subsidiary or Associated Company which the Company has
         designated as confidential from time to time. Confidential Information
         shall not include information which is in the public domain otherwise
         than by virtue of breach of obligations to the Company or any
         Subsidiary or Associated Company.

11.3     The Company may from time to time notify the Director of any additional
         categories of information with regard to the businesses or activities
         of the Company, Subsidiary or Associated Company which it regards as
         confidential and which will be the subject to the restrictions in this
         Clause.

12.      PROTECTION OF INTERESTS OF THE COMPANY

12.1     Until the expiration of 12 months from the termination of the Agreement
         the Director will not directly or indirectly solicit or entice away or
         endeavour to entice away from the Company, any Subsidiary or Associated
         Company any person employed by the Company or that Subsidiary or
         Associated Company in any executive, sales, marketing, research, or
         technical support capacity as at the date of the termination of this
         Agreement in order to procure that such a person be engaged or employed
         by any other company.

12.2     After the termination of this Agreement or, if later, the date of his
         ceasing to be a Director of the Company, the Director will not
         represent himself or permit himself to be held out as being in any way
         connected with or interested in the business of the Company; and after
         the termination of this Agreement he will not represent himself or
         permit himself to be held out as being in any way connected with the
         business of any Subsidiary or Associated Company, except if and for so
         long as he remains a director or an employee of that Subsidiary or
         Associated Company.

                                       5
<PAGE>

13.      INVENTIONS

13.1     If at any time during the continuance of his employment the Director
         whether alone or with any other person, makes, discovers or develops
         any invention, product, process or idea which relates to or affects, or
         is capable of being used or adapted for use in or in connection with,
         the business or any product, process or intellectual property right of
         the Company or any Subsidiary or Associated Company, the invention,
         product, process, or idea will be the absolute property of the Company
         (except to the extent, if any, provided otherwise by Section 39 of the
         Patents Act 1977).

13.2     The Director will promptly and fully disclose to the Company any and
         all inventions, products, processes, and ideas relating in any way to
         the actual or projected products, business or affairs of the Company or
         any Subsidiary or Associated Company and made or discovered wholly or
         partly by the Director during the period of the Director's employment
         by the Company.

13.3     All other intellectual property including original work, industrial and
         artistic designs, copyrights, trade marks and Confidential Information,
         relating to the business of the Company, any Subsidiary or Associated
         Company composed, written, made, designed, or discovered by the
         Director in the course of his employment with the Company shall belong,
         exclusively to the Company.

13.4     The Director will, at the request and expense of the Company, do all
         things and sign all documents deemed by the Company necessary or
         appropriate:

         (a) to confirm or vest in the Company or any nominee of the Company all
             rights, interest and title in and to the Company's inventions and
             the intellectual property referred to in Clause 13.3;

         (b) to procure for the Company or its nominees, patent, design,
             copyright, trade mark or other protection for the Company's
             inventions and the intellectual property referred to in Clause 13.3
             in the United Kingdom of Great Britain and Northern Ireland and in
             such territories as the Company may in its absolute discretion from
             time to time direct; and

         (c) to assign to the Company or its nominees the right to make
             application for patent, design, copyright, trade mark or other
             protection for the Company's inventions and the intellectual
             property referred to in Clause 13.3 under the laws of territories
             outside the United Kingdom of Great Britain and Northern Ireland
             and/or under any treaty or international convention and to claim
             for such applications whatever priority rights may be lawful.

13.5     Except insofar as the provisions of the Patents Act 1977 apply, the
         Director's employment by the Company and the remuneration received as
         one of its employees shall constitute his sole right of compensation
         for the performance of his obligations herein contained.

13.6     If the Director ceases to be employed by the Company and enters the
         employment of any Associated Company or of any company which purchases
         the whole or part of any of the businesses of the Company or any such
         Associated Company, the Company may assign its rights under this Clause
         to such Associated Company or purchaser in which event Clauses 13.1 to
         13.7 of this Agreement shall (save for the enforcement by the previous
         employer of its

                                       6
<PAGE>

         rights hereunder) thenceforth be construed as if the expression the
         Company means such new employer.

13.7     There are no inventions or discoveries now owned wholly or partly by
         the Director which were made at a time when the Director was not
         employed by the Company, other than as disclosed in writing to the
         Company.

14.      PUBLICITY

         The Director shall not at any time make any untrue statement in
         relation to the Company or any Subsidiary or Associated Companies and
         in particular shall not after the termination of this Agreement
         wrongfully represent himself as being employed by or connected with the
         Company or any Subsidiary or Associated Companies.

15.      LIQUIDATION/AMALGAMATION

         If before the expiration of this Agreement the employment of the
         Director hereunder shall be terminated by reason of the liquidation of
         the Company for the purpose of amalgamation or reconstruction or as
         part of any arrangement for the amalgamation of the undertaking of the
         Company not involving liquidation the Director shall be offered
         employment with the amalgamated or reconstructed company for a period
         of not less than the unexpired term of this Agreement and on terms not
         less favourable than the terms of this Agreement.

16.      DEFAULT

         If the Director shall be guilty of any serious misconduct or any
         serious or (after due warning) persistent breach or non-observance of
         any of the conditions of this Agreement or shall neglect fail or refuse
         to carry out the duties properly assigned to him hereunder or shall
         become bankrupt or compound with his creditors, the Company shall be
         entitled summarily to terminate his employment hereunder without notice
         and the Director shall have no claim against the Company in respect of
         such termination notwithstanding anything contained elsewhere in this
         Agreement provided always that if any such act of misconduct or such
         breach or non-observance is capable of being remedied, the Director
         shall first be offered a reasonable opportunity to remedy the same
         prior to termination as aforesaid and, if and when so remedied, the
         employment of the Director hereunder shall continue without
         interruption.

17.      TERMINATION

17.1     This Agreement may be terminated by mutual agreement between the
         parties at any time or by either party giving 12 months notice in
         writing to the other.

17.2     On the termination of his employment for whatever reason the Director
         will promptly:

         (a) resign (if he has not already done so) from all offices held by him
             in the Company and any Subsidiaries or Associated Companies; and

         (b) deliver up to the Company all technical information, lists of
             customers, correspondence, documents and other property (including
             any car) relating to the business of the Company, any Subsidiary or
             Associated Company which may be in his possession or under his
             control; and

                                       7
<PAGE>

         (c) The Director irrevocably authorises the Company in his name and on
             his behalf to execute all documents and to all things necessary to
             effect the resignations referred to in Clause 17.2 in the event of
             his failure to do so.

17.3     Any termination of the employment of the Director will be without
         prejudice to his continuing obligations under this Agreement.

17.4     The Company has the right to suspend any of the Director's duties and
         powers during any period after notice of termination of the Agreement
         has been given by the Company or the Director. In particular, the
         Company may exercise this right where the Director resigns from the
         Company's employment in circumstances where it is reasonable for the
         Company to believe that he is or is about to become concerned in, or
         about to commence, a business which is, or is likely to be, competitive
         with any part of the business of the Company or any Associated or
         Subsidiary Company with which the Director was substantially engaged or
         concerned in the 12 months before the suspension started. Throughout
         any such period of suspension the Director's salary and benefits to
         which he is entitled under this Agreement shall continue to be paid or
         provided by the Company. The Director will remain entitled to be
         considered for a bonus in accordance with the provisions of Clause 6.2
         of the Agreement during any period of garden leave. At any time during
         such period the Director will, at the request of the Board, immediately
         resign, without claim for compensation, his office as a director of the
         Company and any directorship or other office held by him in the Company
         or any Associated or Subsidiary Company. The period for which the
         restriction in Clause 12.1 applies shall be reduced by any other period
         over which the Company exercises its powers to suspend any of the
         Director's duties and powers under Clause 17.4.

18.      ADDITIONAL PARTICULARS

         The following additional particulars are given for the purposes of the
         Employment Rights Act 1996:

         (a) the employment of the Director by the Company will begin on
             Completion;

         (b) except as otherwise provided by this Agreement, there are no terms
             or conditions of employment relating to hours of work or to normal
             working hours or to entitlement to holidays (including public
             holidays) or holiday pay or to incapacity for work due to sickness
             or injury or to pensions or pension schemes.

19.      TERM AND TERMINATION

         This Agreement shall remain in full force and effect until such time as
         the Director's employment by the Company as defined in Clause 2.1 shall
         terminate for any reason, whereupon this Agreement will terminate.

20.      CONTINUING TERMS

         The expiration or determination of this Agreement howsoever arising
         shall not operate to affect such of the provisions hereof as in
         accordance with their terms are expressed to operate or have effect
         thereafter and shall be without prejudice to any right or action
         already accrued to either party in respect of any breach of this
         Agreement by the other party.

                                       8
<PAGE>

21.      NOTICES

         Any notice to be given hereunder shall be in writing and be
         sufficiently served, in the case of the Director, by being delivered
         either personally to him or sent by registered post addressed to him at
         his usual or last known place of abode or, in the case of the Company,
         by being delivered at or sent by registered post or recorded delivery
         addressed to the Company's Chief Executive, or General Counsel at the
         Company's Registered Office and any such notice if so posted shall be
         deemed served three days following that on which it was posted and in
         proving such service it shall be sufficient to prove that the notice
         was properly addressed and dispatched.

IN WITNESS whereof the parties hereto have executed this Agreement as a Deed the
day and year first above written.

BRITISH BIOTECH PLC                               )
executed this Agreement as a                      )
Deed in the presence of:                          )

/s/ Dan Last                              Director    /s/ Timothy Edwards
1 New Change,                                        -------------------------
London                                    Director    /s/ A J Weir
                                                     -------------------------

Executed as a Deed by                             )   /s/ P J Fellner
PETER FELLNER                                     )
in the presence of:                               )  /s/ A C January
                                                     XXXXXXXXXX

                                       9

<PAGE>

                                SERVICE AGREEMENT

                               DATED 21st MARCH, 2003

                             (1) BRITISH BIOTECH PLC

                                  (2) MR STURGE

                                 ALLEN & OVERY

                                     London

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                               PAGE
------                                                               ----
<S>                                                                   <C>
1.       Definitions...................................................2
2.       Appointment...................................................2
3.       Duties........................................................2
4.       Other Activities..............................................3
5.       Place of Performance..........................................3
6.       Remuneration..................................................3
7.       Expenses......................................................4
8.       Car...........................................................4
9.       Hours of Work/Holiday.........................................4
10.      Sickness/Injury...............................................4
11.      Pension/life insurance........................................5
12.      Grievances/Disciplinary Decisions.............................5
13.      Confidentiality...............................................5
14.      Protection of Interests of the Company........................6
15.      Inventions....................................................6
16.      Publicity.....................................................7
17.      Liquidation/Amalgamation......................................7
18.      Default.......................................................7
19.      Termination...................................................8
20.      Additional Particulars........................................8
21.      Term and Termination..........................................9
22.      Continuing Terms..............................................9
23.      Notices.......................................................9
</TABLE>

                                       1
<PAGE>

THIS AGREEMENT is made the day of March 2003

BETWEEN:

(1)      BRITISH BIOTECH PLC (registered number 2304992) whose registered office
         is situated at Watlington Road, Oxford OX4 5LY (THE COMPANY); and

(2)      SIMON STURGE c/o RiboTargets Holdings PLC, Granta Park, Abington,
         Cambridge CB1 6GB (THE DIRECTOR).

         NOW IT IS HEREBY AGREED as follows:

1.       DEFINITIONS

         In this Agreement the following expressions shall have the
         following meanings:

         SUBSIDIARY means any company which for the time being is a subsidiary
         company (as such expression is defined by Section 736 of the Companies
         Act 1985 as amended by Section 144 of the Companies Act 1989) of any
         other company;

         ASSOCIATED COMPANY means any company which for the time being is a
         holding company (as such expression is defined by Section 736 of the
         Companies Act 1985 as amended by Section 144 of the Companies Act 1989)
         of the Company or any subsidiary of any such holding company;

         THE BOARD means the Board of Directors of the Company;

         TERMINATION DATE means the date on which the employment of the Director
         under this Agreement shall terminate for whatever reason irrespective
         of whether the Company shall have been in breach of this Agreement.

2.       APPOINTMENT

2.1      The Director shall be appointed Chief Executive Officer of the Company
         (which shall be deemed to be his job title for the purposes of this
         Agreement and of the Employment Rights Act 1996) unless amended by a
         letter in writing from the Company.

2.2      The appointment may be terminated by either party giving to the other
         not less than 12 calendar months prior notice in writing.

2.3      The Director has been appointed a Director of the Company and will
         remain so during the period of his employment by the Company.

2.4      This Agreement shall not take effect until Completion as defined in the
         Undertaking relating to the offer by British Biotech PLC for
         RiboTargets Holdings PLC dated 21st March 2003.

3.       DUTIES

         During the continuance of his engagement hereunder the Director shall:

         (a) be responsible for running the Company and setting (by agreement
             with the Chairman) and implementing corporate strategy;

                                       2
<PAGE>

         (b) perform such duties and exercise such powers, authorities and
             discretions consistent with his role of Chief Executive Officer as
             the Company's Chairman or the Board shall from time to time
             delegate to him on such terms and conditions and subject to such
             restrictions as the Chairman or the Board may from time to time
             reasonably impose;

         (c) use his best endeavours to promote the interests of the Company and
             those of its Subsidiary and Associated Companies for the time being
             and shall during normal business hours unless prevented by illness
             or other incapacity devote the whole of his time, attention and
             abilities to the business and affairs of the Company and its
             Subsidiary and Associated Companies, if any, for the time being;

         (d) in the discharge of such duties and in the exercise of such powers
             observe and comply with all relevant resolutions, regulations and
             directions from time to time made or given by the Board.

         (e) act as an officer of any Subsidiary or Associated Company or hold
             any other appointment or office as nominee or representative of the
             Company or any Subsidiary or Associated Company as directed by the
             Board.

4.       OTHER ACTIVITIES

         The Director shall not during the continuance of this Agreement without
         the consent of the Board (such consent not to be unreasonably withheld
         or delayed) directly or indirectly engage in any other business or be
         concerned or interested (within the meaning contained in Part VI of the
         Companies Act 1985) in the share capital of any other business save
         that he may be interested (defined as aforesaid) as a holder or
         beneficial owner of not more than five per cent. (5%) of any class of
         stock shares or debentures which are listed on any publicly quoted
         market.

5.       PLACE OF PERFORMANCE

         The Director's duties hereunder shall be performed at the Company's
         head office or at such other place as the Chairman or Board shall from
         time to time reasonably direct and further the Chairman or Board shall
         be at liberty to appoint the Director to serve any of its Subsidiary or
         Associated Companies if any for the time being (without further
         remuneration unless otherwise agreed).

6.       REMUNERATION

         As remuneration for his services hereunder the Director shall be
         entitled to a basic salary payable at the rate of three hundred
         thousand pounds sterling (Pound Sterling300,000) per annum (exclusive
         of any bonus award, pension contribution or share option grant which
         may from time to time be made by the Board) payable in equal monthly
         instalments (and proportionately for any lesser period each monthly
         instalment being deemed to accrue rateably from day to day) on the last
         day of every calendar month in arrears. Such remuneration shall be
         inclusive of any fees payable to him as a Director or other officer of
         the Company or of its Subsidiary or Associated Companies if any for the
         time being. The salary payable hereunder shall be variable upwards by
         decision of the Board and subject to review during the month of April
         2004 and at least once in each financial year thereafter. The Company
         may in its absolute discretion award to the Director a non-pensionable
         annual cash bonus of up to a maximum of 50 per cent. of base salary
         dependant upon the achievement of performance targets which will be
         notified to you by the Board of Directors of British Biotech PLC.

                                       3
<PAGE>

7.       EXPENSES

         The Company shall pay to the Director all reasonable travelling
         entertainment and other expenses incurred by him in the performance of
         his duties under this Agreement. The Director shall, on being so
         required, provide the Company with vouchers or other evidence of actual
         payment of such expenses.

8.       CAR

         The Director will receive a non pensionable cash car allowance of Pound
         Sterling12,500 per annum.

9.       HOURS OF WORK/HOLIDAY

9.1      The Director shall perform such hours of work as may from time to time
         be reasonably required of him and shall not be entitled to receive any
         additional remuneration for work outside his normal hours which said
         normal hours shall for statutory purposes be deemed to be from 9.00 am
         to 5.30 pm Monday to Thursday inclusive and 9.00 am to 4.15 pm on
         Friday.

9.2      The Director shall be entitled during every calendar year to a minimum
         of thirty (30) working days holiday in addition to bank or public
         holidays in the UK, or to such longer holidays as shall from time to
         time be agreed by the Board, during which his remuneration hereunder
         shall continue to be payable. Holidays shall be taken at such times as
         the Director and the Company's Chairman shall consider most convenient
         having regard to the requirements of the Company's business. Holiday
         entitlement during the calendar year in which the Director's employment
         commences and ceases will be based on his length of service in the
         calendar year in question and will be proportionate to the whole year's
         entitlement. Save as may be permitted in the Company's general
         personnel policy, holidays may not be carried forward from one calendar
         year to the next and no payment will be made by the Company (whether
         during the continuance or on termination of this Agreement) in lieu of
         holidays not taken.

10.      SICKNESS/INJURY

10.1     In the event that the Director shall at any time be prevented by
         illness or other incapacity from properly performing his duties
         hereunder (and shall if required furnish the Board with evidence
         satisfactory to them of such incapacity) he shall be entitled to
         receive his full salary for the first six (6) months and one half of
         his full salary for the next consecutive period of six (6) months
         during which such incapacity shall continue;

10.2     Any salary received by the Director pursuant to the foregoing Clause
         10.1 shall be inclusive of any payment which the Company is required to
         make in respect of Statutory Sick Pay. The Director shall keep the
         Company informed of the amount of any National Health Insurance
         sickness or injury benefits to which he is entitled (whether or not
         these are received) and which are not covered by Statutory Sick Pay and
         a deduction of the amount of such benefit will be made by the Company
         from any salary payable under the Clause 10.1;

10.3     Notwithstanding the provisions of Clause 2.2 of this Agreement, if the
         Director shall continue so incapacitated for a longer period than
         twelve (12) consecutive months or if he shall be so incapacitated at
         different times for more than twelve (12) months in any one period of
         eighteen (18) consecutive months then and in either of such cases the
         Company shall be entitled forthwith to terminate the engagement of the
         Director by notice in writing and thereupon the Director shall have no
         claim against the Company in respect of such termination. The length of
         the said notice to be given to the Director hereunder shall be the
         minimum period permitted by statute and dependent upon his length of
         service.

                                       4
<PAGE>

11.      PENSION/LIFE INSURANCE

11.1     The Director is entitled to be a member of the British Biotech pension
         scheme for the time being in force or any additional or supplementary
         pension scheme established by the Company for his benefit or for the
         benefit of the Company's Directors or managers.

11.2     The Director shall be informed in writing whether a contracting out
         certificate is in force in respect of the employment of the Director.

11.3     The Director shall be entitled to receive a total monthly contribution
         payable by the Company into one or more appropriate pension schemes
         established by the Company, or into a personal pension scheme nominated
         by the Director, at a rate of 19% of a basic salary variable upwards by
         decision of the Board.

11.4     While this Agreement continues a lump sum benefit shall be payable on
         the Director's death to such beneficiaries identified by the Director
         in any expression of his wishes delivered to the Company before his
         death. The benefit is equal to four times the Director's basic annual
         salary at his death.

12.      GRIEVANCES/DISCIPLINARY DECISIONS

         Without prejudice to any rights he may have under this Agreement or
         operation of law should the Director have any question or grievance or
         be dissatisfied with any disciplinary decision concerning his
         employment hereunder, he should refer it to the Board whose decision
         shall be final and binding.

13.      CONFIDENTIALITY

13.1     In respect of Confidential Information of the Company or any Subsidiary
         or Associated Company, the Director will not, unless authorised to do
         so by the Board or by the Company's Chairman or by a Court of competent
         jurisdiction, during the continuance of his employment or for a period
         of five (5) years thereafter:

         (a) use Confidential Information for his own benefit or the benefit of
             any other person; or

         (b) disclose Confidential Information to any person; or

         (c) through any failure to exercise all reasonable care and diligence
             cause any disclosure of Confidential Information to any person.

13.2     Confidential Information shall include any information relating to
         research and development projects, inventions, processes, practical
         experience and methodology, technical and scientific data,
         specifications and formulae (whether or not patented or patentable)
         developed or acquired and owned or used by the Company any Subsidiary
         or Associated Company for the subject of research, production
         programmes, lists or details of transactions of, or related to, the
         Company any Subsidiary or Associated Company with customers, commercial
         relationships (including collaboration agreements) of, or related to,
         the Company any Subsidiary or Associated Company, finances, business
         developments and future business strategy of, or related to, the
         Company any Subsidiary or Associated Company which the Company has
         designated as confidential from time to time. Confidential Information
         shall not include information which is in the public domain otherwise
         than by virtue of breach of obligations to the Company or any
         Subsidiary or Associated Company.

                                       5
<PAGE>

13.3     The Company may from time to time notify the Director of any additional
         categories of information with regard to the businesses or activities
         of the Company, Subsidiary or Associated Company which it regards as
         confidential and which will be the subject to the restrictions in this
         Clause.

14.      PROTECTION OF INTERESTS OF THE COMPANY

14.1     Until the expiration of 12 months from the termination of the Agreement
         the Director will not directly or indirectly solicit or entice away or
         endeavour to entice away from the Company, any Subsidiary or Associated
         Company any person employed by the Company or that Subsidiary or
         Associated Company in any executive, sales, marketing, research, or
         technical support capacity as at the date of the termination of this
         Agreement in order to procure that such a person be engaged or employed
         by any other company.

14.2     After the termination of this Agreement or, if later, the date of his
         ceasing to be a Director of the Company, the Director will not
         represent himself or permit himself to be held out as being in any way
         connected with or interested in the business of the Company; and after
         the termination of this Agreement he will not represent himself or
         permit himself to be held out as being in any way connected with the
         business of any Subsidiary or Associated Company, except if and for so
         long as he remains a director or an employee of that Subsidiary or
         Associated Company.

15.      INVENTIONS

15.1     If at any time during the continuance of his employment the Director
         whether alone or with any other person, makes, discovers or develops
         any invention, product, process or idea which relates to or affects, or
         is capable of being used or adapted for use in or in connection with,
         the business or any product, process or intellectual property right of
         the Company or any Subsidiary or Associated Company, the invention,
         product, process, or idea will be the absolute property of the Company
         (except to the extent, if any, provided otherwise by Section 39 of the
         Patents Act 1977).

15.2     The Director will promptly and fully disclose to the Company any and
         all inventions, products, processes, and ideas relating in any way to
         the actual or projected products, business or affairs of the Company or
         any Subsidiary or Associated Company and made or discovered wholly or
         partly by the Director during the period of the Director's employment
         by the Company.

15.3     All other intellectual property including original work, industrial and
         artistic designs, copyrights, trade marks and Confidential Information,
         relating to the business of the Company, any Subsidiary or Associated
         Company composed, written, made, designed, or discovered by the
         Director in the course of his employment with the Company shall belong,
         exclusively to the Company.

15.4     The Director will, at the request and expense of the Company, do all
         things and sign all documents deemed by the Company necessary or
         appropriate:

         (a) to confirm or vest in the Company or any nominee of the Company all
             rights, interest and title in and to the Company's inventions and
             the intellectual property referred to in Clause 15.3;

         (b) to procure for the Company or its nominees, patent, design,
             copyright, trade mark or other protection for the Company's
             inventions and the intellectual property referred to in Clause 15.3
             in the United Kingdom of Great Britain and Northern Ireland and in

                                       6
<PAGE>

             such territories as the Company may in its absolute discretion from
             time to time direct; and

         (c) to assign to the Company or its nominees the right to make
             application for patent, design, copyright, trade mark or other
             protection for the Company's inventions and the intellectual
             property referred to in Clause 15.3 under the laws of territories
             outside the United Kingdom of Great Britain and Northern Ireland
             and/or under any treaty or international convention and to claim
             for such applications whatever priority rights may be lawful.

15.5     Except insofar as the provisions of the Patents Act 1977 apply, the
         Director's employment by the Company and the remuneration received as
         one of its employees shall constitute his sole right of compensation
         for the performance of his obligations herein contained.

15.6     If the Director ceases to be employed by the Company and enters the
         employment of any Associated Company or of any company which purchases
         the whole or part of any of the businesses of the Company or any such
         Associated Company, the Company may assign its rights under this Clause
         to such Associated Company or purchaser in which event Clauses 15.1 to
         15.7 of this Agreement shall (save for the enforcement by the previous
         employer of its rights hereunder) thenceforth be construed as if the
         expression the Company means such new employer.

15.7     There are no inventions or discoveries now owned wholly or partly by
         the Director which were made at a time when the Director was not
         employed by the Company, other than as disclosed in writing to the
         Company.

16.      PUBLICITY

         The Director shall not at any time make any untrue statement in
         relation to the Company or any Subsidiary or Associated Companies and
         in particular shall not after the termination of this Agreement
         wrongfully represent himself as being employed by or connected with the
         Company or any Subsidiary or Associated Companies.

17.      LIQUIDATION/AMALGAMATION

         If before the expiration of this Agreement the employment of the
         Director hereunder shall be terminated by reason of the liquidation of
         the Company for the purpose of amalgamation or reconstruction or as
         part of any arrangement for the amalgamation of the undertaking of the
         Company not involving liquidation the Director shall be offered
         employment with the amalgamated or reconstructed company for a period
         of not less than the unexpired term of this Agreement and on terms not
         less favourable than the terms of this Agreement.

18.      DEFAULT

         If the Director shall be guilty of any serious misconduct or any
         serious or (after due warning) persistent breach or non-observance of
         any of the conditions of this Agreement or shall neglect fail or refuse
         to carry out the duties properly assigned to him hereunder or shall
         become bankrupt or compound with his creditors, the Company shall be
         entitled summarily to terminate his employment hereunder without notice
         and the Director shall have no claim against the Company in respect of
         such termination notwithstanding anything contained elsewhere in this
         Agreement provided always that if any such act of misconduct or such
         breach or non-observance is capable of being remedied, the Director
         shall first be offered a reasonable opportunity to remedy the same
         prior to termination as aforesaid and, if and when so remedied, the
         employment of the Director hereunder shall continue without
         interruption.

                                       7
<PAGE>

19.      TERMINATION

19.1     This Agreement may be terminated by mutual agreement between the
         parties at any time or by either party giving 12 months notice in
         writing to the other.

19.2     On the termination of his employment for whatever reason the Director
         will promptly:

         (a) resign (if he has not already done so) from all offices held by him
             in the Company and any Subsidiaries or Associated Companies; and

         (b) deliver up to the Company all technical information, lists of
             customers, correspondence, documents and other property (including
             any car) relating to the business of the Company, any Subsidiary or
             Associated Company which may be in his possession or under his
             control; and

         (c) The Director irrevocably authorises the Company in his name and on
             his behalf to execute all documents and to all things necessary to
             effect the resignations referred to in Clause 19.2 in the event of
             his failure to do so.

19.3     Any termination of the employment of the Director will be without
         prejudice to his continuing obligations under this Agreement.

19.4     The Company has the right to suspend any of the Director's duties and
         powers during any period after notice of termination of the Agreement
         has been given by the Company or the Director. In particular, the
         Company may exercise this right where the Director resigns from the
         Company's employment in circumstances where it is reasonable for the
         Company to believe that he is or is about to become concerned in, or
         about to commence, a business which is, or is likely to be, competitive
         with any part of the business of the Company or any Associated or
         Subsidiary Company with which the Director was substantially engaged or
         concerned in the 12 months before the suspension started. Throughout
         any such period of suspension the Director's salary, pro rata bonus at
         a rate equivalent to the average bonus paid to him over the past three
         years and benefits to which he is entitled under this Agreement shall
         continue to be paid or provided by the Company. At any time during such
         period the Director will, at the request of the Board, immediately
         resign, without claim for compensation, his office as a director of the
         Company and any directorship or other office held by him in the Company
         or any Associated or Subsidiary Company. The period for which the
         restriction in Clause 14.1 applies shall be reduced by any other period
         over which the Company exercises its powers to suspend any of the
         Director's duties and powers under Clause 19.4.

20.      ADDITIONAL PARTICULARS

         The following additional particulars are given for the purposes of the
         Employment Rights Act 1996:

         (a) the employment of the Director by the Company will begin on
             Completion but the Director's previous employment with RiboTargets
             Holdings PLC shall be treated as part of his continuous employment.
             Accordingly, the date of the Director's continuous employment is
             July 1997.

         (b) except as otherwise provided by this Agreement, there are no terms
             or conditions of employment relating to hours of work or to normal
             working hours or to entitlement to

                                       8
<PAGE>

             holidays (including public holidays) or holiday pay or to
             incapacity for work due to sickness or injury or to pensions or
             pension schemes.

21.      TERM AND TERMINATION

         This Agreement shall remain in full force and effect until such time as
         the Director's employment by the Company as defined in Clause 2.1 shall
         terminate for any reason, whereupon this Agreement will terminate.

22.      CONTINUING TERMS

         The expiration or determination of this Agreement howsoever arising
         shall not operate to affect such of the provisions hereof as in
         accordance with their terms are expressed to operate or have effect
         thereafter and shall be without prejudice to any right or action
         already accrued to either party in respect of any breach of this
         Agreement by the other party.

23.      NOTICES

         Any notice to be given hereunder shall be in writing and be
         sufficiently served, in the case of the Director, by being delivered
         either personally to him or sent by registered post addressed to him at
         his usual or last known place of abode or, in the case of the Company,
         by being delivered at or sent by registered post or recorded delivery
         addressed to the Company's Chairman, or General Counsel at the
         Company's Registered Office and any such notice if so posted shall be
         deemed served three days following that on which it was posted and in
         proving such service it shall be sufficient to prove that the notice
         was properly addressed and dispatched.

IN WITNESS whereof the parties hereto have executed this Agreement as a Deed
the day and year first above written.

BRITISH BIOTECH PLC                )
executed this Agreement as a       )
Deed in the presence of:           ) /s/  Dan Last, 1 New Change, London

                                     Director /s/ A J Weir
                                              ---------------------------
                                     Director /s/  Timothy Edwards
                                              ---------------------------

Executed as a Deed by              ) /s/  Simon Sturge
SIMON STURGE                       )
in the presence of:                ) /s/  M G Draper, 160 Aldersgate Street, EC1

                                       9

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

Simon Sturge
c/o Thames Court
Watlington Road
Oxford
OX4 6LY

                                                                17th July, 2003

Dear Simon,

This letter varies the terms of your service agreement with British Biotech plc
dated 21st March, 2003 (effective from 23rd April, 2003). All of the provisions
in your service agreement will remain the same with the exception of the
following change which will be effective from the Merger (as defined in the
draft Listing Particulars relating to the issue of new British Biotech plc
shares dated 14th July, 2003) becoming or being declared unconditional in all
respects.

The following paragraph shall be added as a new clause 24 to your service
agreement:

"CHANGE OF CONTROL

24.1     The Director shall be entitled at any time within six months after a
         Change in Control of the Company to terminate his employment by giving
         to the Company not less than 30 days prior notice in writing. Upon such
         termination or upon termination without notice by the Company during
         such six month period the Director shall be entitled to receive a
         payment forthwith by way of liquidated damages equal to 12 (twelve)
         times the Director's then monthly basic salary. The parties hereto
         agree that the sum set out in this sub-clause is a genuine pre-estimate
         of the Director's loss.

24.2     For the purposes of Clause 24.1 "Change of Control" of the Company
         shall take place on the date on which one person or a group of persons
         acting in concert holds, directly or indirectly, any shares in the
         Company which carry fifty per cent (50%) or more of the then voting
         rights of the Company but this will not, for the avoidance of doubt,
         include the completion of the Merger as defined in the draft Listing
         Particulars relating to the issue of new Company shares dated 14th July
         2003."

Your signature below will constitute your agreement to the terms set out above.

<PAGE>

.......................................         .............................

SIGNED FOR BRITISH BIOTECH PLC                 DATE

.......................................         .............................

SIGNED BY SIMON STURGE                         DATE

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

Anthony Weir
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

                                                                21st March 2003

Dear Anthony,

This letter varies the terms of your service agreement with British Biotech PLC
dated 24th June, 1999. The changes to your service agreement set out below are
conditional on Completion as defined in the Undertaking relating to the offer by
British Biotech PLC for RiboTargets Holdings PLC dated 21st March 2003. All of
the provisions in your service agreement will remain the same with the exception
of the following changes which will all be effective from Completion (as defined
above):

1.       Your salary will increase from Pound Sterling165,000 per annum to Pound
         Sterling180,000 per annum.

2.       British Biotech PLC may in its absolute discretion award to you a
         non-pensionable annual cash bonus of up to a maximum of 50% of your
         base salary dependent upon the achievement of performance targets which
         will be notified to you by the Board of Directors of British Biotech
         PLC in due course.

3.       The following paragraph shall be added to Clause 20 of your service
         agreement as a new Clause 20.5:

         "The Company has the right to suspend any of the Director's duties and
         powers during any period after notice of termination of the agreement
         has been given by the Company or the Director. In particular, the
         Company may exercise this right where the Director resigns from the
         Company's employment in circumstances where it is reasonable for the
         Company to believe that he is or is about to become concerned in, or
         about to commence, a business which is, or is likely to be, competitive
         with any part of the business of the Company or any Associated or
         Subsidiary Company with which the Director was substantially engaged or
         concerned in the 12 months before the suspension started. Throughout
         any such period of suspension the Director's salary, pro rata bonus at
         a rate equivalent to the average bonus paid to him over the past three
         years and benefits to which he is entitled under this agreement shall
         continue to be paid or provided by the Company. At any time during such
         period the Director will, at the request of the Board, immediately
         resign, without claim for compensation, his office as a director of the
         Company and any directorship or other office held by him in the Company
         or any Associated or Subsidiary Company. The period for which the
         restriction in Clause 14.1 applies shall be reduced by any other period
         over which the Company exercises its powers to suspend any of the
         Director's duties and powers under Clause 20.5."

<PAGE>

Your signature below will constitute your agreement to the terms set out above.

/s/  Timothy Edwards
................................                      ........................

SIGNED FOR BRITISH BIOTECH PLC                       DATE

/s/  A J Weir
................................                      ........................

SIGNED BY ANTHONY WEIR                               DATE

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

Anthony Weir
c/o Thames Court
Watlington Road
Oxford
OX4 6LY

                                                                 16th July 2003

Dear Anthony,

This letter varies the terms of your service agreement with British Biotech plc
dated 24th June, 1999 (which has already been varied by a letter dated 21st
March, 2003) by replacing clause 19 of your service agreement with the following
wording:

"CHANGE OF CONTROL

19.1     The Director shall be entitled at any time within six months after a
         Change in Control of the Company to terminate his employment by giving
         to the Company not less than 30 days prior notice in writing. Upon such
         termination or upon termination without notice by the Company during
         such six month period the Director shall be entitled to receive a
         payment forthwith by way of liquidated damages equal to 12 (twelve)
         times the Director's then monthly basic salary. The parties hereto
         agree that the sum set out in this sub-clause is a genuine pre-estimate
         of the Director's loss.

19.2     For the purposes of Clause 19.1 "Change of Control" of the Company
         shall take place on the date on which one person or a group of persons
         acting in concert holds, directly or indirectly, any shares in the
         Company which carry fifty per cent (50%) or more of the then voting
         rights of the Company but this will not, for the avoidance of doubt,
         include the completion of the Merger as defined in the draft Listing
         Particulars relating to the issue of new Company shares dated 14th
         July, 2003."

<PAGE>

Your signature below will constitute your agreement to the terms set out above.

/s/  P J Fellner                                       17/07/03
-------------------------------                 --------------------------

SIGNED FOR BRITISH BIOTECH PLC                  DATE

/s/  A J Weir                                          17/07/03
-------------------------------                 --------------------------
SIGNED BY ANTHONY WEIR                          DATE

<PAGE>

                                SERVICE AGREEMENT

                                DATED 2nd JULY 2003

                             (1) BRITISH BIOTECH PLC

                                 (2) MR WORRALL

                                 ALLEN & OVERY

                                     London

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>

CLAUSE                                                                PAGE
------                                                                ----
<S>                                                                   <C>
1.       Definitions...................................................2
2.       Appointment...................................................2
3.       Duties........................................................2
4.       Other Activities..............................................3
5.       Place of Performance..........................................3
6.       Remuneration..................................................3
7.       Expenses......................................................4
8.       Car...........................................................4
9.       Hours of Work/Holiday.........................................4
10.      Sickness/Injury...............................................4
11.      Pension/Life Insurance/Medical Insurance......................5
12.      Grievances/Disciplinary Decisions.............................5
13.      Confidentiality...............................................5
14.      Protection of Interests of the Company........................6
15.      Inventions....................................................6
16.      Publicity.....................................................7
17.      Liquidation/Amalgamation......................................7
18.      Default.......................................................8
19.      Termination...................................................8
20.      Change of Control.............................................9
21.      Additional Particulars........................................9
22.      Term and Termination..........................................9
23.      Continuing Terms..............................................9
24.      Notices.......................................................9
25.      Entire Agreement.............................................10
</TABLE>

                                       1
<PAGE>

THIS AGREEMENT is made the          day of July 2003

BETWEEN:

(1)      BRITISH BIOTECH PLC (registered number 2304992) whose registered office
         is situated at Watlington Road, Oxford OX4 6LY (THE COMPANY); and

(2)      PETER WORRALL c/o Vernalis Group plc, Oakdene Court, 613 Reading Road,
         Winnersh, Wokingham, Berkshire RG41 5UA (THE DIRECTOR).

NOW IT IS HEREBY AGREED as follows:

1.       DEFINITIONS

         In this Agreement the following expressions shall have the following
         meanings:

         SUBSIDIARY means any company which for the time being is a subsidiary
         company (as such expression is defined by Section 736 of the Companies
         Act 1985 as amended by Section 144 of the Companies Act 1989) of any
         other company;

         ASSOCIATED COMPANY means any company which for the time being is a
         holding company (as such expression is defined by Section 736 of the
         Companies Act 1985 as amended by Section 144 of the Companies Act 1989)
         of the Company or any subsidiary of any such holding company;

         THE BOARD means the Board of Directors of the Company;

         TERMINATION DATE means the date on which the employment of the Director
         under this Agreement shall terminate for whatever reason irrespective
         of whether the Company shall have been in breach of this Agreement.

2.       APPOINTMENT

2.1      The Director shall be appointed Corporate Development Director of the
         Company (which shall be deemed to be his job title for the purposes of
         this Agreement and of the Employment Rights Act 1996) unless amended by
         a letter in writing from the Company.

2.2      The appointment may be terminated by either party giving to the other
         not less than 12 calendar months prior notice in writing.

2.3      The Director has been appointed a Director of the Company and will
         remain so during the period of his employment by the Company.

2.4      This Agreement shall not take effect until the date on which the offer
         by the Company to acquire the entire issued share capital of Vernalis
         Group plc (VERNALIS) announced on or about 3rd July 2003 becomes or is
         declared to be unconditional in all respects (COMPLETION).

3.       DUTIES

         During the continuance of his engagement hereunder the Director shall:

         (a) be responsible for the integration of the businesses of Vernalis
             and the Company and for the Company's corporate development
             activities;

                                       2
<PAGE>

         (b) perform such duties and exercise such powers, authorities and
             discretions consistent with his role of Corporate Development
             Director as the Company's Chief Executive Officer or the Board
             shall from time to time delegate to him on such terms and
             conditions and subject to such restrictions as the Chief Executive
             Officer or the Board may from time to time reasonably impose;

         (c) use his best endeavours to promote the interests of the Company and
             those of its Subsidiary and Associated Companies for the time being
             and shall during normal business hours unless prevented by illness
             or other incapacity devote the whole of his time, attention and
             abilities to the business and affairs of the Company and its
             Subsidiary and Associated Companies, if any, for the time being;

         (d) in the discharge of such duties and in the exercise of such powers
             observe and comply with all relevant resolutions, regulations and
             directions from time to time made or given by the Board.

         (e) act as an officer of any Subsidiary or Associated Company or hold
             any other appointment or office as nominee or representative of the
             Company or any Subsidiary or Associated Company as directed by the
             Board.

4.       OTHER ACTIVITIES

         The Director shall not during the continuance of this Agreement without
         the consent of the Board (such consent not to be unreasonably withheld
         or delayed) directly or indirectly engage in any other business or be
         concerned or interested (within the meaning contained in Part VI of the
         Companies Act 1985) in the share capital of any other business save
         that he may be interested (defined as aforesaid) as a holder or
         beneficial owner of not more than five per cent. (5%) of any class of
         stock shares or debentures which are listed on any publicly quoted
         market.

5.       PLACE OF PERFORMANCE

         The Director's duties hereunder shall be performed at the Company's
         head office or at such other place as the Chief Executive Officer or
         Board shall from time to time reasonably direct and further the Chief
         Executive Officer or Board shall be at liberty to appoint the Director
         to serve any of its Subsidiary or Associated Companies if any for the
         time being (without further remuneration unless otherwise agreed) in
         his capacity as Corporate Development Director.

6.       REMUNERATION

         As remuneration for his services hereunder the Director shall be
         entitled to a basic salary payable at the rate of two hundred and
         thirty thousand pounds sterling (Pound Sterling230,000) per annum
         (exclusive of any bonus award, pension contribution or share option
         grant which may from time to time be made by the Board) payable in
         equal monthly instalments (and proportionately for any lesser period
         each monthly instalment being deemed to accrue rateably from day to
         day) on the last day of every calendar month in arrears. Such
         remuneration shall be inclusive of any fees payable to him as a
         Director or other officer of the Company or of its Subsidiary or
         Associated Companies if any for the time being. The salary payable
         hereunder shall be variable upwards by decision of the Board and
         subject to review during the month of April 2004 and at least once in
         each financial year thereafter. The Company may in its absolute
         discretion award to the Director a non-pensionable annual cash bonus of
         up to a maximum of 50 per cent. of base salary dependant upon the
         achievement of performance targets which will be notified to the
         Director by the Board of Directors of British Biotech plc.

                                       3
<PAGE>

7.       EXPENSES

         The Company shall pay to the Director all reasonable travelling
         entertainment and other expenses incurred by him in the performance of
         his duties under this Agreement. The Director shall, on being so
         required, provide the Company with vouchers or other evidence of actual
         payment of such expenses.

8.       CAR

         The Director will receive a non pensionable cash car allowance of Pound
         Sterling12,600 per annum.

9.       HOURS OF WORK/HOLIDAY

9.1      The Director shall perform such hours of work as may from time to time
         be reasonably required of him and shall not be entitled to receive any
         additional remuneration for work outside his normal hours which said
         normal hours shall for statutory purposes be deemed to be from 9.00 am
         to 5.30 pm Monday to Thursday inclusive and 9.00 am to 4.15 pm on
         Friday.

9.2      The Director shall be entitled during every calendar year to a minimum
         of thirty (30) working days holiday in addition to bank or public
         holidays in the UK, or to such longer holidays as shall from time to
         time be agreed by the Board, during which his remuneration hereunder
         shall continue to be payable. Holidays shall be taken at such times as
         the Director and the Company's Chief Executive Officer shall consider
         most convenient having regard to the requirements of the Company's
         business. Holiday entitlement during the calendar year in which the
         Director's employment commences and ceases will be based on his length
         of service in the calendar year in question and will be proportionate
         to the whole year's entitlement. Up to five days holiday may be carried
         forward to the next holiday year but no further. On termination of
         employment the Director will be made a payment in respect of accrued
         but untaken holiday for that holiday year.

10.      SICKNESS/INJURY

10.1     In the event that the Director shall at any time be prevented by
         illness or other incapacity from properly performing his duties
         hereunder (and shall if required furnish the Board with evidence
         satisfactory to them of such incapacity) he shall be entitled to
         receive his full salary for the first six (6) months and one half of
         his full salary for the next consecutive period of six (6) months
         during which such incapacity shall continue;

10.2     Any salary received by the Director pursuant to the foregoing Clause
         10.1 shall be inclusive of any payment which the Company is required to
         make in respect of Statutory Sick Pay. The Director shall keep the
         Company informed of the amount of any National Health Insurance
         sickness or injury benefits to which he is entitled (whether or not
         these are received) and which are not covered by Statutory Sick Pay and
         a deduction of the amount of such benefit will be made by the Company
         from any salary payable under the Clause 10.1;

10.3     Notwithstanding the provisions of Clause 2.2 of this Agreement, if the
         Director shall continue so incapacitated for a longer period than
         twelve (12) consecutive months or if he shall be so incapacitated at
         different times for more than twelve (12) months in any one period of
         eighteen (18) consecutive months then and in either of such cases the
         Company shall be entitled forthwith to terminate the engagement of the
         Director by notice in writing and thereupon the Director shall have no
         claim against the Company in respect of such termination. The length of
         the said notice to be given to the Director hereunder shall be the
         minimum period permitted by statute and dependent upon his length of
         service. The Company may not exercise its power to terminate the
         engagement of the Director under this

                                       4
<PAGE>

         clause 10.3 if the Director is, at the relevant time, in receipt of
         benefits under the income protection cover referred to in clause 11.4
         below.

11.      PENSION/LIFE INSURANCE/MEDICAL INSURANCE

11.1     The Director shall be informed in writing whether a contracting out
         certificate is in force in respect of the employment of the Director.

11.2     The Director shall be entitled to receive a total monthly contribution
         payable by the Company into one or more appropriate pension schemes
         established by the Company, or into a personal pension scheme nominated
         by the Director, at a rate of 19% of a basic salary variable upwards by
         decision of the Board. Alternatively, at the Director's option and on
         such terms as may be agreed with the Company, the Company shall pay the
         Director an additional monthly cash allowance in lieu of all or part of
         any pension contributions by the Company less tax and National
         Insurance, provided this does not result in any additional cost to the
         Company. For the avoidance of doubt, this allowance shall not be taken
         into account in relation to the calculation of any salary related
         benefits.

11.3     While this Agreement continues a lump sum benefit shall be payable on
         the Director's death to such beneficiaries identified by the Director
         in any expression of his wishes delivered to the Company before his
         death. The benefit is equal to four times the Director's basic annual
         salary at his death.

11.4     The Director (and his spouse and dependant children living in the UK)
         shall be entitled to receive private health care. The Director shall
         also be entitled to income protection cover equivalent to 3/4 of basic
         salary (minus the State Incapacity Benefit). These benefits will be
         subject to the terms of the insurance or other arrangements under which
         the benefits are provided.

12.      GRIEVANCES/DISCIPLINARY DECISIONS

         Without prejudice to any rights he may have under this Agreement or
         operation of law should the Director have any question or grievance or
         be dissatisfied with any disciplinary decision concerning his
         employment hereunder, he should refer it to the Board whose decision
         shall be final and binding.

13.      CONFIDENTIALITY

13.1     In respect of Confidential Information of the Company or any Subsidiary
         or Associated Company, the Director will not, unless authorised to do
         so by the Board or by the Company's Chief Executive Officer or by a
         Court of competent jurisdiction, during the continuance of his
         employment or for a period of five (5) years thereafter:

         (a) use Confidential Information for his own benefit or the benefit of
             any other person; or

         (b) disclose Confidential Information to any person; or

         (c) through any failure to exercise all reasonable care and diligence
             cause any disclosure of Confidential Information to any person.

13.2     Confidential Information shall include any information relating to
         research and development projects, inventions, processes, practical
         experience and methodology, technical and scientific data,
         specifications and formulae (whether or not patented or patentable)
         developed or acquired and owned or used by the Company any Subsidiary
         or Associated Company for the

                                       5
<PAGE>

         subject of research, production programmes, lists or details of
         transactions of, or related to, the Company any Subsidiary or
         Associated Company with customers, commercial relationships (including
         collaboration agreements) of, or related to, the Company any Subsidiary
         or Associated Company, finances, business developments and future
         business strategy of, or related to, the Company any Subsidiary or
         Associated Company which the Company has designated as confidential
         from time to time. Confidential Information shall not include
         information which is in the public domain otherwise than by virtue of
         breach of obligations to the Company or any Subsidiary or Associated
         Company.

13.3     The Company may from time to time notify the Director of any additional
         categories of information with regard to the businesses or activities
         of the Company, Subsidiary or Associated Company which it regards as
         confidential and which will be the subject to the restrictions in this
         Clause.

14.      PROTECTION OF INTERESTS OF THE COMPANY

14.1     Until the expiration of 12 months from the termination of the Agreement
         the Director will not directly or indirectly solicit or entice away or
         endeavour to entice away from the Company, any Subsidiary or Associated
         Company any person employed by the Company or that Subsidiary or
         Associated Company in any executive, sales, marketing, research, or
         technical support capacity as at the date of the termination of this
         Agreement in order to procure that such a person be engaged or employed
         by any other company.

14.2     After the termination of this Agreement or, if later, the date of his
         ceasing to be a Director of the Company, the Director will not
         represent himself or permit himself to be held out as being in any way
         connected with or interested in the business of the Company; and after
         the termination of this Agreement he will not represent himself or
         permit himself to be held out as being in any way connected with the
         business of any Subsidiary or Associated Company, except if and for so
         long as he remains a director or an employee of that Subsidiary or
         Associated Company.

15.      INVENTIONS

15.1     If at any time during the continuance of his employment the Director
         whether alone or with any other person, makes, discovers or develops
         any invention, product, process or idea which relates to or affects, or
         is capable of being used or adapted for use in or in connection with,
         the business or any product, process or intellectual property right of
         the Company or any Subsidiary or Associated Company, the invention,
         product, process, or idea will be the absolute property of the Company
         (except to the extent, if any, provided otherwise by Section 39 of the
         Patents Act 1977).

15.2     The Director will promptly and fully disclose to the Company any and
         all inventions, products, processes, and ideas relating in any way to
         the actual or projected products, business or affairs of the Company or
         any Subsidiary or Associated Company and made or discovered wholly or
         partly by the Director during the period of the Director's employment
         by the Company.

15.3     All other intellectual property including original work, industrial and
         artistic designs, copyrights, trade marks and Confidential Information,
         relating to the business of the Company, any Subsidiary or Associated
         Company composed, written, made, designed, or discovered by the
         Director in the course of his employment with the Company shall belong,
         exclusively to the Company.

                                       6
<PAGE>

15.4     The Director will, at the request and expense of the Company, do all
         things and sign all documents deemed by the Company necessary or
         appropriate:

         (a) to confirm or vest in the Company or any nominee of the Company all
             rights, interest and title in and to the Company's inventions and
             the intellectual property referred to in Clause 15.3;

         (b) to procure for the Company or its nominees, patent, design,
             copyright, trade mark or other protection for the Company's
             inventions and the intellectual property referred to in Clause 15.3
             in the United Kingdom of Great Britain and Northern Ireland and in
             such territories as the Company may in its absolute discretion from
             time to time direct; and

         (c) to assign to the Company or its nominees the right to make
             application for patent, design, copyright, trade mark or other
             protection for the Company's inventions and the intellectual
             property referred to in Clause 15.3 under the laws of territories
             outside the United Kingdom of Great Britain and Northern Ireland
             and/or under any treaty or international convention and to claim
             for such applications whatever priority rights may be lawful.

15.5     Except insofar as the provisions of the Patents Act 1977 apply, the
         Director's employment by the Company and the remuneration received as
         one of its employees shall constitute his sole right of compensation
         for the performance of his obligations herein contained.

15.6     If the Director ceases to be employed by the Company and enters the
         employment of any Associated Company or of any company which purchases
         the whole or part of any of the businesses of the Company or any such
         Associated Company, the Company may assign its rights under this Clause
         to such Associated Company or purchaser in which event Clauses 15.1 to
         15.7 of this Agreement shall (save for the enforcement by the previous
         employer of its rights hereunder) thenceforth be construed as if the
         expression the Company means such new employer.

15.7     There are no inventions or discoveries now owned wholly or partly by
         the Director which were made at a time when the Director was not
         employed by the Company, other than as disclosed in writing to the
         Company.

16.      PUBLICITY

         The Director shall not knowingly or recklessly at any time make any
         untrue statement in relation to the Company or any Subsidiary or
         Associated Companies and in particular shall not after the termination
         of this Agreement wrongfully represent himself as being employed by or
         connected with the Company or any Subsidiary or Associated Companies.

17.      LIQUIDATION/AMALGAMATION

         If before the expiration of this Agreement the employment of the
         Director hereunder shall be terminated by reason of the liquidation of
         the Company for the purpose of amalgamation or reconstruction or as
         part of any arrangement for the amalgamation of the undertaking of the
         Company not involving liquidation the Director shall be offered
         employment with the amalgamated or reconstructed company on terms not
         less favourable than the terms of this Agreement.

                                       7
<PAGE>

18.      DEFAULT

         If the Director shall be guilty of any serious misconduct or any
         serious or (after due warning) persistent breach or non-observance of
         any of the conditions of this Agreement or shall neglect fail or refuse
         to carry out the duties properly assigned to him hereunder or shall
         become bankrupt or compound with his creditors, the Company shall be
         entitled summarily to terminate his employment hereunder without notice
         and the Director shall have no claim against the Company in respect of
         such termination notwithstanding anything contained elsewhere in this
         Agreement provided always that if any such act of misconduct or such
         breach or non-observance is capable of being remedied, the Director
         shall first be offered a reasonable opportunity to remedy the same
         prior to termination as aforesaid and, if and when so remedied, the
         employment of the Director hereunder shall continue without
         interruption.

19.      TERMINATION

19.1     This Agreement may be terminated by mutual agreement between the
         parties at any time or by either party giving 12 months notice in
         writing to the other.

19.2     On the termination of his employment for whatever reason the Director
         will promptly:

         (a) resign (if he has not already done so) from all offices held by him
             in the Company and any Subsidiaries or Associated Companies; and

         (b) deliver up to the Company all technical information, lists of
             customers, correspondence, documents and other property (including
             any car) relating to the business of the Company, any Subsidiary or
             Associated Company which may be in his possession or under his
             control; and

         (c) The Director irrevocably authorises the Company in his name and on
             his behalf to execute all documents and to all things necessary to
             effect the resignations referred to in Clause 19.2 in the event of
             his failure to do so.

19.3     Any termination of the employment of the Director will be without
         prejudice to his continuing obligations under this Agreement.

19.4     The Company has the right to suspend any of the Director's duties and
         powers during any period after notice of termination of the Agreement
         has been given by the Company or the Director. In particular, the
         Company may exercise this right where the Director resigns from the
         Company's employment in circumstances where it is reasonable for the
         Company to believe that he is or is about to become concerned in, or
         about to commence, a business which is, or is likely to be, competitive
         with any part of the business of the Company or any Associated or
         Subsidiary Company with which the Director was substantially engaged or
         concerned in the 12 months before the suspension started. Throughout
         any such period of suspension the Director's salary, pro rata bonus at
         a rate equivalent to the average bonus paid to him over the past three
         years and benefits to which he is entitled under this Agreement shall
         continue to be paid or provided by the Company. At any time during such
         period the Director will, at the request of the Board, immediately
         resign, without claim for compensation, his office as a director of the
         Company and any directorship or other office held by him in the Company
         or any Associated or Subsidiary Company. The period for which the
         restriction in Clause 14.1 applies shall be reduced by any other period
         over which the Company exercises its powers to suspend any of the
         Director's duties and powers under Clause 19.4.

                                       8
<PAGE>

20.      CHANGE OF CONTROL

20.1     The Director shall be entitled at any time within six months after a
         Change in Control of the Company to terminate his employment by giving
         to the Company not less than 30 days prior notice in writing. Upon such
         termination or upon termination without notice by the Company during
         such six month period the Director shall be entitled to receive a
         payment forthwith by way of liquidated damages equal to 12 (twelve)
         times the Director's then monthly basic salary. The parties hereto
         agree that the sum set out in this sub-clause is a genuine pre-estimate
         of the Director's loss.

20.2     For the purposes of Clause 20.1 "Change of Control" of the Company
         shall take place on the date on which one person or a group of persons
         acting in concert holds, directly or indirectly, any shares in the
         Company which carry fifty per cent (50%) or more of the then voting
         rights of the Company and a Change of Control shall be deemed to have
         taken place upon Completion.

21.      ADDITIONAL PARTICULARS

         The following additional particulars are given for the purposes of the
         Employment Rights Act 1996:

         (a) the employment of the Director by the Company will begin on
             Completion but the Director's previous employment with Vernalis
             Group plc shall be treated as part of his continuous employment.
             Accordingly, the date of the Director's continuous employment is
             1st September 1993.

         (b) except as otherwise provided by this Agreement, there are no terms
             or conditions of employment relating to hours of work or to normal
             working hours or to entitlement to holidays (including public
             holidays) or holiday pay or to incapacity for work due to sickness
             or injury or to pensions or pension schemes.

22.      TERM AND TERMINATION

         This Agreement shall remain in full force and effect until such time as
         the Director's employment by the Company as defined in Clause 2.1 shall
         terminate for any reason, whereupon this Agreement will terminate.

23.      CONTINUING TERMS

         The expiration or determination of this Agreement howsoever arising
         shall not operate to affect such of the provisions hereof as in
         accordance with their terms are expressed to operate or have effect
         thereafter and shall be without prejudice to any right or action
         already accrued to either party in respect of any breach of this
         Agreement by the other party.

24.      NOTICES

         Any notice to be given hereunder shall be in writing and be
         sufficiently served, in the case of the Director, by being delivered
         either personally to him or sent by registered post addressed to him at
         his usual or last known place of abode or, in the case of the Company,
         by being delivered at or sent by registered post or recorded delivery
         addressed to the Company's Chief Executive Officer, or General Counsel
         at the Company's Registered Office and any such notice if so posted
         shall be deemed served three days following that on which it was posted
         and in proving such service it shall be sufficient to prove that the
         notice was properly addressed and dispatched.

                                       9
<PAGE>

25.      ENTIRE AGREEMENT

         The terms of this Agreement constitute the entire agreement and
         understanding between the parties hereto and they supersede and replace
         all prior negotiations, agreements, arrangements or understandings
         (whether implied or express, orally or in writing) relating to the
         employment of the Director between the Company and the Director or
         between Vernalis Group plc and the Director all of which will cease to
         have effect from Completion.

IN WITNESS whereof the parties hereto have executed this Agreement as a Deed
the day and year first above written.

BRITISH BIOTECH PLC                    )
executed this Agreement as a           )
Deed in the presence of:               )
                                            Director   /s/   P J Fellner

                                            Director  /s/   Simon Sturge

Executed as a Deed by                  )
PETER WORRALL                          )
in the presence of:                    )   /s/  Peter Worrall

                                           /s/  Amanda Worrall, XXXXXXXXXX

                                       10

<PAGE>
                                                                 BRITISH BIOTECH

1 July 2003

Mr Peter Worrall
Vernalis Group plc
Oakdene Court
613 Reading Road
Winnersh
Wokingham
Berkshire
RG41 5UA

Dear Peter

This letter is to confirm the proposed option grant to be made to you by British
Biotech plc ("BRITISH BIOTECH") subject to the conditions set out in this
letter.

As Chairman of the remuneration committee of British Biotech, I will put
forward, for approval by the remuneration committee of British Biotech at its
next meeting on or around 15 July 2003, that you should be granted an option
under and in accordance with the rules of the British Biotech Discretionary
Share Option Plan (the "PLAN") over such number of British Biotech shares whose
market value, at the time of grant, is as close as possible to (but not greater
than) two times your base salary of Sterling Pound230,000 (the "OPTION").

Subject to the approval of the remuneration committee of the grant of the
Option, the exercise of the Option will be conditional upon the satisfaction
of a performance target, to be agreed by the remuneration committee of British
Biotech and set out on the grant of the Option. The remuneration committee will
also be considering some changes to the rules of the Plan and the Option will
be granted subject to the rules at the time of grant. In particular, British
Biotech retains the flexibility to treat the Option as an Equity Settled Stock
Appreciation Right meaning it could, at its discretion, provide you with shares
in British Biotech up to a value equivalent to the gain on the Option at
exercise, rather than receiving an exercise price from you and providing the
full value of the shares underlying the Option.

The grant of the Option is subject to approval by the remuneration committee of
British Biotech, to the offer by British Biotech for the entire issued share
capital of Vernalis Group plc becoming or being declared unconditional in all
respects ("COMPLETION") and to your appointment as Corporate Development
Director of British Biotech.

The intention is that the Option should be granted to you as soon as reasonably
practicable following Completion.

Yours sincerely

/s/ Keith Merrifield

Keith Merrifield
Chairman of the remuneration committee
British Biotech plc
<PAGE>

                               BRITISH BIOTECH PLC
                         WATLINGTON ROAD OXFORD OX4 6LY
                                TEL 01865 748747
                   REGISTERED IN ENGLAND AND WALES NO.2304992

                                                                  2nd July 2003

Dear Peter,

I am writing to clarify certain aspects of the bonus arrangements referred to in
clause 6 of your service agreement with British Biotech Plc (the "COMPANY").

In respect of the current bonus year which runs from 1st May to 30th April the
Company will set performance targets for you as soon as reasonably practicable
following Completion (as defined in your service agreement with the Company).
Your maximum potential bonus will be calculated on a pro-rata basis, judged
against your achievement of the performance targets which the Company has set.

Whilst you do not have any contractual right to receive a pro-rata bonus payment
should your employment terminate before the date on which any bonus is paid, I
can confirm that in the past, the Company has paid a pro-rata bonus up to the
termination date where employment is terminated before the bonus payment date. A
pro-rata bonus payment would, of course, only be made in these circumstances if
any relevant performance targets have been or are likely to be achieved.

Yours sincerely,

/s/  Simon Sturge

SIMON STURGE

<PAGE>

                                SERVICE AGREEMENT

                                DATED 2nd JULY 2003

                             (1) BRITISH BIOTECH PLC

                                (2) DR HUTCHISON

                                 ALLEN & OVERY

                                     London

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
CLAUSE                                                                      PAGE
------                                                                      ----

<S>                                                                          <C>
1.       Definitions..........................................................2
2.       Appointment..........................................................2
3.       Duties...............................................................2
4.       Other Activities.....................................................3
5.       Place of Performance.................................................3
6.       Remuneration.........................................................3
7.       Expenses.............................................................4
8.       Car..................................................................4
9.       Hours of Work/Holiday................................................4
10.      Sickness/Injury......................................................4
11.      Pension/Life Insurance/Medical Insurance.............................5
12.      Grievances/Disciplinary Decisions....................................5
13.      Confidentiality......................................................5
14.      Protection of Interests of the Company...............................6
15.      Inventions...........................................................6
16.      Publicity............................................................7
17.      Liquidation/Amalgamation.............................................7
18.      Default..............................................................8
19.      Termination..........................................................8
20.      Change of Control....................................................9
21.      Additional Particulars...............................................9
22.      Term and Termination.................................................9
23.      Continuing Terms.....................................................9
24.      Notices..............................................................9
25.      Entire Agreement....................................................10
</TABLE>

                                       1
<PAGE>

THIS AGREEMENT is made the          day of  July 2003

BETWEEN:

(1)      BRITISH BIOTECH PLC (registered number 2304992) whose registered office
         is situated at Watlington Road, Oxford OX4 6LY (THE COMPANY); and

(2)      JOHN HUTCHISON c/o Vernalis Group plc, Oakdene Court, 613 Reading Road,
         Winnersh, Wokingham, Berkshire RG41 5UA (THE DIRECTOR).

NOW IT IS HEREBY AGREED as follows:

1.       DEFINITIONS

         In this Agreement the following expressions shall have the following
         meanings:

         SUBSIDIARY means any company which for the time being is a subsidiary
         company (as such expression is defined by Section 736 of the Companies
         Act 1985 as amended by Section 144 of the Companies Act 1989) of any
         other company;

         ASSOCIATED COMPANY means any company which for the time being is a
         holding company (as such expression is defined by Section 736 of the
         Companies Act 1985 as amended by Section 144 of the Companies Act 1989)
         of the Company or any subsidiary of any such holding company;

         THE BOARD means the Board of Directors of the Company;

         TERMINATION DATE means the date on which the employment of the Director
         under this Agreement shall terminate for whatever reason irrespective
         of whether the Company shall have been in breach of this Agreement.

2.       APPOINTMENT

2.1      The Director shall be appointed Development Director of the Company
         (which shall be deemed to be his job title for the purposes of this
         Agreement and of the Employment Rights Act 1996) unless amended by a
         letter in writing from the Company.

2.2      The appointment may be terminated by either party giving to the other
         not less than 12 calendar months prior notice in writing.

2.3      The Director has been appointed a Director of the Company and will
         remain so during the period of his employment by the Company.

2.4      This Agreement shall not take effect until the date on which the offer
         by the Company to acquire the entire issued share capital of Vernalis
         Group plc (VERNALIS) announced on or about 3rd July 2003 becomes or is
         declared to be unconditional in all respects (COMPLETION).

3.       DUTIES

         During the continuance of his engagement hereunder the Director shall:

         (a) be responsible for the development of the Company's product
             development portfolio;

                                       2
<PAGE>

         (b) perform such duties and exercise such powers, authorities and
             discretions consistent with his role of Development Director as the
             Company's Chief Executive Officer or the Board shall from time to
             time delegate to him on such terms and conditions and subject to
             such restrictions as the Chief Executive Officer or the Board may
             from time to time reasonably impose;

         (c) use his best endeavours to promote the interests of the Company and
             those of its Subsidiary and Associated Companies for the time being
             and shall during normal business hours unless prevented by illness
             or other incapacity devote the whole of his time, attention and
             abilities to the business and affairs of the Company and its
             Subsidiary and Associated Companies, if any, for the time being;

         (d) in the discharge of such duties and in the exercise of such powers
             observe and comply with all relevant resolutions, regulations and
             directions from time to time made or given by the Board.

         (e) act as an officer of any Subsidiary or Associated Company or hold
             any other appointment or office as nominee or representative of the
             Company or any Subsidiary or Associated Company as directed by the
             Board.

4.       OTHER ACTIVITIES

         The Director shall not during the continuance of this Agreement without
         the consent of the Board (such consent not to be unreasonably withheld
         or delayed) directly or indirectly engage in any other business or be
         concerned or interested (within the meaning contained in Part VI of the
         Companies Act 1985) in the share capital of any other business save
         that he may be interested (defined as aforesaid) as a holder or
         beneficial owner of not more than five per cent. (5%) of any class of
         stock shares or debentures which are listed on any publicly quoted
         market.

5.       PLACE OF PERFORMANCE

         The Director's duties hereunder shall be performed at the Company's
         head office or at such other place as the Chief Executive Officer or
         Board shall from time to time reasonably direct and further the Chief
         Executive Officer or Board shall be at liberty to appoint the Director
         to serve any of its Subsidiary or Associated Companies if any for the
         time being (without further remuneration unless otherwise agreed) in
         his capacity as Development Director.

6.       REMUNERATION

         As remuneration for his services hereunder the Director shall be
         entitled to a basic salary payable at the rate of one hundred and
         eighty thousand pounds sterling (Pound Sterling180,000) per annum
         (exclusive of any bonus award, pension contribution or share option
         grant which may from time to time be made by the Board) payable in
         equal monthly instalments (and proportionately for any lesser period
         each monthly instalment being deemed to accrue rateably from day to
         day) on the last day of every calendar month in arrears. Such
         remuneration shall be inclusive of any fees payable to him as a
         Director or other officer of the Company or of its Subsidiary or
         Associated Companies if any for the time being. The salary payable
         hereunder shall be variable upwards by decision of the Board and
         subject to review during the month of April 2004 and at least once in
         each financial year thereafter. The Company may in its absolute
         discretion award to the Director a non-pensionable annual cash bonus of
         up to a maximum of 50 per cent. of base salary dependant upon the
         achievement of performance targets which will be notified to the
         Director by the Board of Directors of British Biotech plc.

                                       3
<PAGE>

7.       EXPENSES

         The Company shall pay to the Director all reasonable travelling
         entertainment and other expenses incurred by him in the performance of
         his duties under this Agreement. The Director shall, on being so
         required, provide the Company with vouchers or other evidence of actual
         payment of such expenses.

8.       CAR

         The Director will receive a non pensionable cash car allowance of
         Pound Sterling12,600 per annum.

9.       HOURS OF WORK/HOLIDAY

9.1      The Director shall perform such hours of work as may from time to time
         be reasonably required of him and shall not be entitled to receive any
         additional remuneration for work outside his normal hours which said
         normal hours shall for statutory purposes be deemed to be from 9.00 am
         to 5.30 pm Monday to Thursday inclusive and 9.00 am to 4.15 pm on
         Friday.

9.2      The Director shall be entitled during every calendar year to a minimum
         of thirty (30) working days holiday in addition to bank or public
         holidays in the UK, or to such longer holidays as shall from time to
         time be agreed by the Board, during which his remuneration hereunder
         shall continue to be payable. Holidays shall be taken at such times as
         the Director and the Company's Chief Executive Officer shall consider
         most convenient having regard to the requirements of the Company's
         business. Holiday entitlement during the calendar year in which the
         Director's employment commences and ceases will be based on his length
         of service in the calendar year in question and will be proportionate
         to the whole year's entitlement. Up to five days holiday may be carried
         forward to the next holiday year but no further. On termination of
         employment the Director will be made a payment in respect of accrued
         but untaken holiday for that holiday year.

10.      SICKNESS/INJURY

10.1     In the event that the Director shall at any time be prevented by
         illness or other incapacity from properly performing his duties
         hereunder (and shall if required furnish the Board with evidence
         satisfactory to them of such incapacity) he shall be entitled to
         receive his full salary for the first six (6) months and one half of
         his full salary for the next consecutive period of six (6) months
         during which such incapacity shall continue;

10.2     Any salary received by the Director pursuant to the foregoing Clause
         10.1 shall be inclusive of any payment which the Company is required to
         make in respect of Statutory Sick Pay. The Director shall keep the
         Company informed of the amount of any National Health Insurance
         sickness or injury benefits to which he is entitled (whether or not
         these are received) and which are not covered by Statutory Sick Pay and
         a deduction of the amount of such benefit will be made by the Company
         from any salary payable under the Clause 10.1;

10.3     Notwithstanding the provisions of Clause 2.2 of this Agreement, if the
         Director shall continue so incapacitated for a longer period than
         twelve (12) consecutive months or if he shall be so incapacitated at
         different times for more than twelve (12) months in any one period of
         eighteen (18) consecutive months then and in either of such cases the
         Company shall be entitled forthwith to terminate the engagement of the
         Director by notice in writing and thereupon the Director shall have no
         claim against the Company in respect of such termination. The length of
         the said notice to be given to the Director hereunder shall be the
         minimum period permitted by statute and dependent upon his length of
         service. The Company may not exercise its power to terminate the
         engagement of the Director under this

                                       4
<PAGE>

         clause 10.3 if the Director is, at the relevant time, in receipt of
         benefits under the income protection cover referred to in clause 11.4
         below.

11.      PENSION/LIFE INSURANCE/MEDICAL INSURANCE

11.1     The Director shall be informed in writing whether a contracting out
         certificate is in force in respect of the employment of the Director.

11.2     The Director shall be entitled to receive a total monthly contribution
         payable by the Company into one or more appropriate pension schemes
         established by the Company, or into a personal pension scheme nominated
         by the Director, at a rate of 19% of a basic salary variable upwards by
         decision of the Board. Alternatively, at the Director's option and on
         such terms as may be agreed with the Company, the Company shall pay the
         Director an additional monthly cash allowance in lieu of all or part of
         any pension contributions by the Company less tax and National
         Insurance, provided this does not result in any additional cost to the
         Company. For the avoidance of doubt, this allowance shall not be taken
         into account in relation to the calculation of any salary related
         benefits.

11.3     While this Agreement continues a lump sum benefit shall be payable on
         the Director's death to such beneficiaries identified by the Director
         in any expression of his wishes delivered to the Company before his
         death. The benefit is equal to four times the Director's basic annual
         salary at his death.

11.4     The Director (and his spouse and dependant children living in the UK)
         shall be entitled to receive private health care. Subject to the
         Director passing a medical examination and the Company being able to
         obtain income protection cover on satisfactory terms, the Director
         shall also be entitled to income protection cover equivalent to 3/4 of
         basic salary (minus the State Incapacity Benefit). These benefits will
         be subject to the terms of the insurance or other arrangements under
         which the benefits are provided.

12.      GRIEVANCES/DISCIPLINARY DECISIONS

         Without prejudice to any rights he may have under this Agreement or
         operation of law should the Director have any question or grievance or
         be dissatisfied with any disciplinary decision concerning his
         employment hereunder, he should refer it to the Board whose decision
         shall be final and binding.

13.      CONFIDENTIALITY

13.1     In respect of Confidential Information of the Company or any Subsidiary
         or Associated Company, the Director will not, unless authorised to do
         so by the Board or by the Company's Chief Executive Officer or by a
         Court of competent jurisdiction, during the continuance of his
         employment or for a period of five (5) years thereafter:

         (a) use Confidential Information for his own benefit or the benefit of
             any other person; or

         (b) disclose Confidential Information to any person; or

         (c) through any failure to exercise all reasonable care and diligence
             cause any disclosure of Confidential Information to any person.

13.2     Confidential Information shall include any information relating to
         research and development projects, inventions, processes, practical
         experience and methodology, technical and scientific data,
         specifications and formulae (whether or not patented or patentable)
         developed or

                                       5
<PAGE>

         acquired and owned or used by the Company any Subsidiary or Associated
         Company for the subject of research, production programmes, lists or
         details of transactions of, or related to, the Company any Subsidiary
         or Associated Company with customers, commercial relationships
         (including collaboration agreements) of, or related to, the Company any
         Subsidiary or Associated Company, finances, business developments and
         future business strategy of, or related to, the Company any Subsidiary
         or Associated Company which the Company has designated as confidential
         from time to time. Confidential Information shall not include
         information which is in the public domain otherwise than by virtue of
         breach of obligations to the Company or any Subsidiary or Associated
         Company.

13.3     The Company may from time to time notify the Director of any additional
         categories of information with regard to the businesses or activities
         of the Company, Subsidiary or Associated Company which it regards as
         confidential and which will be the subject to the restrictions in this
         Clause.

14.      PROTECTION OF INTERESTS OF THE COMPANY

14.1     Until the expiration of 12 months from the termination of the Agreement
         the Director will not directly or indirectly solicit or entice away or
         endeavour to entice away from the Company, any Subsidiary or Associated
         Company any person employed by the Company or that Subsidiary or
         Associated Company in any executive, sales, marketing, research, or
         technical support capacity as at the date of the termination of this
         Agreement in order to procure that such a person be engaged or employed
         by any other company.

14.2     After the termination of this Agreement or, if later, the date of his
         ceasing to be a Director of the Company, the Director will not
         represent himself or permit himself to be held out as being in any way
         connected with or interested in the business of the Company; and after
         the termination of this Agreement he will not represent himself or
         permit himself to be held out as being in any way connected with the
         business of any Subsidiary or Associated Company, except if and for so
         long as he remains a director or an employee of that Subsidiary or
         Associated Company.

15.      INVENTIONS

15.1     If at any time during the continuance of his employment the Director
         whether alone or with any other person, makes, discovers or develops
         any invention, product, process or idea which relates to or affects, or
         is capable of being used or adapted for use in or in connection with,
         the business or any product, process or intellectual property right of
         the Company or any Subsidiary or Associated Company, the invention,
         product, process, or idea will be the absolute property of the Company
         (except to the extent, if any, provided otherwise by Section 39 of the
         Patents Act 1977).

15.2     The Director will promptly and fully disclose to the Company any and
         all inventions, products, processes, and ideas relating in any way to
         the actual or projected products, business or affairs of the Company or
         any Subsidiary or Associated Company and made or discovered wholly or
         partly by the Director during the period of the Director's employment
         by the Company.

15.3     All other intellectual property including original work, industrial and
         artistic designs, copyrights, trade marks and Confidential Information,
         relating to the business of the Company, any Subsidiary or Associated
         Company composed, written, made, designed, or discovered by the
         Director in the course of his employment with the Company shall belong,
         exclusively to the Company.

                                       6
<PAGE>

15.4     The Director will, at the request and expense of the Company, do all
         things and sign all documents deemed by the Company necessary or
         appropriate:

         (a) to confirm or vest in the Company or any nominee of the Company all
             rights, interest and title in and to the Company's inventions and
             the intellectual property referred to in Clause 15.3;

         (b) to procure for the Company or its nominees, patent, design,
             copyright, trade mark or other protection for the Company's
             inventions and the intellectual property referred to in Clause 15.3
             in the United Kingdom of Great Britain and Northern Ireland and in
             such territories as the Company may in its absolute discretion from
             time to time direct; and

         (c) to assign to the Company or its nominees the right to make
             application for patent, design, copyright, trade mark or other
             protection for the Company's inventions and the intellectual
             property referred to in Clause 15.3 under the laws of territories
             outside the United Kingdom of Great Britain and Northern Ireland
             and/or under any treaty or international convention and to claim
             for such applications whatever priority rights may be lawful.

15.5     Except insofar as the provisions of the Patents Act 1977 apply, the
         Director's employment by the Company and the remuneration received as
         one of its employees shall constitute his sole right of compensation
         for the performance of his obligations herein contained.

15.6     If the Director ceases to be employed by the Company and enters the
         employment of any Associated Company or of any company which purchases
         the whole or part of any of the businesses of the Company or any such
         Associated Company, the Company may assign its rights under this Clause
         to such Associated Company or purchaser in which event Clauses 15.1 to
         15.7 of this Agreement shall (save for the enforcement by the previous
         employer of its rights hereunder) thenceforth be construed as if the
         expression the Company means such new employer.

15.7     There are no inventions or discoveries now owned wholly or partly by
         the Director which were made at a time when the Director was not
         employed by the Company, other than as disclosed in writing to the
         Company.

16.      PUBLICITY

         The Director shall not knowingly or recklessly at any time make any
         untrue statement in relation to the Company or any Subsidiary or
         Associated Companies and in particular shall not after the termination
         of this Agreement wrongfully represent himself as being employed by or
         connected with the Company or any Subsidiary or Associated Companies.

17.      LIQUIDATION/AMALGAMATION

         If before the expiration of this Agreement the employment of the
         Director hereunder shall be terminated by reason of the liquidation of
         the Company for the purpose of amalgamation or reconstruction or as
         part of any arrangement for the amalgamation of the undertaking of the
         Company not involving liquidation the Director shall be offered
         employment with the amalgamated or reconstructed company on terms not
         less favourable than the terms of this Agreement.

                                       7
<PAGE>

18.      DEFAULT

         If the Director shall be guilty of any serious misconduct or any
         serious or (after due warning) persistent breach or non-observance of
         any of the conditions of this Agreement or shall neglect fail or refuse
         to carry out the duties properly assigned to him hereunder or shall
         become bankrupt or compound with his creditors, the Company shall be
         entitled summarily to terminate his employment hereunder without notice
         and the Director shall have no claim against the Company in respect of
         such termination notwithstanding anything contained elsewhere in this
         Agreement provided always that if any such act of misconduct or such
         breach or non-observance is capable of being remedied, the Director
         shall first be offered a reasonable opportunity to remedy the same
         prior to termination as aforesaid and, if and when so remedied, the
         employment of the Director hereunder shall continue without
         interruption.

19.      TERMINATION

19.1     This Agreement may be terminated by mutual agreement between the
         parties at any time or by either party giving 12 months notice in
         writing to the other.

19.2     On the termination of his employment for whatever reason the Director
         will promptly:

         (a) resign (if he has not already done so) from all offices held by him
             in the Company and any Subsidiaries or Associated Companies; and

         (b) deliver up to the Company all technical information, lists of
             customers, correspondence, documents and other property (including
             any car) relating to the business of the Company, any Subsidiary or
             Associated Company which may be in his possession or under his
             control; and

         (c) The Director irrevocably authorises the Company in his name and on
             his behalf to execute all documents and to all things necessary to
             effect the resignations referred to in Clause 19.2 in the event of
             his failure to do so.

19.3     Any termination of the employment of the Director will be without
         prejudice to his continuing obligations under this Agreement.

19.4     The Company has the right to suspend any of the Director's duties and
         powers during any period after notice of termination of the Agreement
         has been given by the Company or the Director. In particular, the
         Company may exercise this right where the Director resigns from the
         Company's employment in circumstances where it is reasonable for the
         Company to believe that he is or is about to become concerned in, or
         about to commence, a business which is, or is likely to be, competitive
         with any part of the business of the Company or any Associated or
         Subsidiary Company with which the Director was substantially engaged or
         concerned in the 12 months before the suspension started. Throughout
         any such period of suspension the Director's salary, pro rata bonus at
         a rate equivalent to the average bonus paid to him over the past three
         years and benefits to which he is entitled under this Agreement shall
         continue to be paid or provided by the Company. At any time during such
         period the Director will, at the request of the Board, immediately
         resign, without claim for compensation, his office as a director of the
         Company and any directorship or other office held by him in the Company
         or any Associated or Subsidiary Company. The period for which the
         restriction in Clause 14.1 applies shall be reduced by any other period
         over which the Company exercises its powers to suspend any of the
         Director's duties and powers under Clause 19.4.

                                       8
<PAGE>

20.      CHANGE OF CONTROL

20.1     The Director shall be entitled at any time within six months after a
         Change in Control of the Company to terminate his employment by giving
         to the Company not less than 30 days prior notice in writing. Upon such
         termination or upon termination without notice by the Company during
         such six month period the Director shall be entitled to receive a
         payment forthwith by way of liquidated damages equal to 12 (twelve)
         times the Director's then monthly basic salary. The parties hereto
         agree that the sum set out in this sub-clause is a genuine pre-estimate
         of the Director's loss.

20.2     For the purposes of Clause 20.1 "Change of Control" of the Company
         shall take place on the date on which one person or a group of persons
         acting in concert holds, directly or indirectly, any shares in the
         Company which carry fifty per cent (50%) or more of the then voting
         rights of the Company and a Change of Control shall be deemed to have
         taken place upon Completion.

21.      ADDITIONAL PARTICULARS

         The following additional particulars are given for the purposes of the
         Employment Rights Act 1996:

         (a) the employment of the Director by the Company will begin on
             Completion but the Director's previous employment with Vernalis
             Group plc shall be treated as part of his continuous employment.
             Accordingly, the date of the Director's continuous employment is
             4th August 1997.

         (b) except as otherwise provided by this Agreement, there are no terms
             or conditions of employment relating to hours of work or to normal
             working hours or to entitlement to holidays (including public
             holidays) or holiday pay or to incapacity for work due to sickness
             or injury or to pensions or pension schemes.

22.      TERM AND TERMINATION

         This Agreement shall remain in full force and effect until such time as
         the Director's employment by the Company as defined in Clause 2.1 shall
         terminate for any reason, whereupon this Agreement will terminate.

23.      CONTINUING TERMS

         The expiration or determination of this Agreement howsoever arising
         shall not operate to affect such of the provisions hereof as in
         accordance with their terms are expressed to operate or have effect
         thereafter and shall be without prejudice to any right or action
         already accrued to either party in respect of any breach of this
         Agreement by the other party.

24.      NOTICES

         Any notice to be given hereunder shall be in writing and be
         sufficiently served, in the case of the Director, by being delivered
         either personally to him or sent by registered post addressed to him at
         his usual or last known place of abode or, in the case of the Company,
         by being delivered at or sent by registered post or recorded delivery
         addressed to the Company's Chief Executive Officer, or General Counsel
         at the Company's Registered Office and any such notice if so posted
         shall be deemed served three days following that on which it was posted
         and in proving such service it shall be sufficient to prove that the
         notice was properly addressed and dispatched.

                                       9
<PAGE>

25.      ENTIRE AGREEMENT

         The terms of this Agreement constitute the entire agreement and
         understanding between the parties hereto and they supersede and replace
         all prior negotiations, agreements, arrangements or understandings
         (whether implied or express, orally or in writing) relating to the
         employment of the Director between the Company and the Director or
         between Vernalis Group plc and the Director all of which will cease to
         have effect from Completion.

IN WITNESS whereof the parties hereto have executed this Agreement as a Deed
the day and year first above written.

BRITISH BIOTECH PLC                   )
executed this Agreement as a          )
Deed in the presence of:              )
                                          Director   /s/  Simon Sturge

                                          Director   /s/   P J Fellner

Executed as a Deed by                 )   /s/   J Hutchison          2/7/03
JOHN HUTCHISON                        )
in the presence of:                   )   /s/   D Porter, XXXXXXXXXX

                                       10

<PAGE>
                                                                 BRITISH BIOTECH

1 July 2003

Mr John Hutchinson
Vernalis Group plc
Oakdene Court
613 Reading Road
Winnersh
Wokingham
Berkshire
RG41 5UA

Dear John,

This letter is to confirm the proposed option grant to be made to you by
British Biotech plc ("BRITISH BIOTECH") subject to the conditions set out in
this letter.

As Chairman of the remuneration committee of British Biotech, I will put
forward, for approval by the remuneration committee of British Biotech at its
next meeting on or around 15 July 2003, that you should be granted an option
under and in accordance with the rules of the British Biotech Discretionary
Share Option Plan ("PLAN") over such number of British Biotech shares whose
market value, at the time of grant, is as close as possible to (but not greater
than) two times your base salary of L180,000 (the "OPTION").

Subject to the approval of the remuneration committee of the grant of the
Option, the exercise of the Option will be conditional upon the satisfaction of
a performance target, to be agreed by the remuneration committee of British
Biotech and set out on the grant of the Option. The remuneration committee will
also be considering some changes to the rules of the Plan and the Option will
be granted subject to the rules at the time of grant. In particular, British
Biotech retains the flexibility to treat the Option as an Equity Settled Stock
Appreciation Right meaning it could, at its discretion, provide you with shares
in British Biotech up to a value equivalent to the gain on the Option at
exercise, rather than receiving an exercise price from you and providing the
full value of the shares underlying the Option.

The grant of the Option is subject to approval by the remuneration committee of
British Biotech, to the offer by British Biotech for the entire issued share
capital of String Group plc becoming or being declared unconditional in all
respects ("COMPLETION") and to your appointment as Development Director of
British Biotech.

The intention is that the Option should be granted to you as soon as reasonably
practicable following Completion.

Yours sincerely,

/s/ Keith Merrifield
-----------------------
Keith Merrifield
Chairman of the remuneration committee
British Biotech plc
<PAGE>

                               BRITISH BIOTECH PLC
                         WATLINGTON ROAD OXFORD OX4 6LY
                                TEL 01865 748747
                   REGISTERED IN ENGLAND AND WALES NO.2304992

                                                                  2nd July 2003

Dear John,

I am writing to clarify certain aspects of the bonus arrangements referred to in
clause 6 of your service agreement with British Biotech Plc (the "COMPANY").

In respect of the current bonus year which runs from 1st May to 30th April the
Company will set performance targets for you as soon as reasonably practicable
following Completion (as defined in your service agreement with the Company).
Your maximum potential bonus will be calculated on a pro-rata basis, judged
against your achievement of the performance targets which the Company has set.

Whilst you do not have any contractual right to receive a pro-rata bonus payment
should your employment terminate before the date on which any bonus is paid, I
can confirm that in the past, the Company has paid a pro-rata bonus up to the
termination date where employment is terminated before the bonus payment date. A
pro-rata bonus payment would, of course, only be made in these circumstances if
any relevant performance targets have been or are likely to be achieved.

Yours sincerely,

/s/   Simon Sturge

SIMON STURGE

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

17th July, 2003

Dr P Read
c/o Thames Court
Watlington Road
Oxford OX4 6LY

Dear Dr Read

I am writing subsequent to the meeting of the Board Committee dealing with the
Vernalis Group plc Merger (see below) on 2nd July 2003 at which the Board
considered a proposal to appoint you as a non-executive director of British
Biotech plc (which it is proposed will be re-named Vernalis Group plc)(the
"Company") conditional on the Merger (as defined in the draft Listing
Particulars relating to the issue of new British Biotech plc shares dated 14th
July 2003) becoming or being declared unconditional in all respects.

This letter outlines the basis of your proposed appointment.

1.       Your appointment is for a fixed term of three years with effect from
         the date of completion of the Merger (as defined above). At the end of
         the fixed term, in accordance with the Combined Code, the Board of the
         Company will review your appointment and a further term of office may
         be agreed.

2.       The office of non-executive director will be held in accordance with
         the Company's articles of association as varied from time to time.
         Nothing in this letter will be taken to exclude or vary the Company's
         articles of association as they apply to you as a director of the
         Company. In particular, you will:

         (a) retire from office, but be eligible for reappointment at the next
             annual general meeting; and

         (b) subsequently be subject to the retirement of directors by rotation
             provisions in the Company's articles of association.

3.       You are entitled to resign your position at any time, in accordance
         with the Company's articles of association, although the Company would
         normally expect at least one month's prior notice.

<PAGE>

4.       As a director, you will be expected to attend meetings of the Company's
         Board and of any Committees of the Board to which you may be appointed.
         At present there are six regular meetings of the Board of Directors
         each year, which will normally be held in Winnersh or Cambridge on
         dates agreed by the Board. These meetings normally commence at 10.00am
         and run until 3.00pm or 4.00pm. The nature of the Company's business
         necessitates additional meetings from time to time and, if required,
         these will be arranged at times convenient to a majority of the
         directors.

5.       You will receive a fee of Pound Sterling33,000 per annum, which fee
         covers any and all preparation and attendance by you at full Board
         meetings or Committee Board meetings. If you carry out the role of
         chairman of the Remuneration or Nominations and Corporate Governance
         Committees you will be paid an additional fee of Pound Sterling5,000
         per annum. If you carry out the role of chairman of the Audit Committee
         you will be paid an additional fee of Pound Sterling7,500 per annum.

6.       In addition to your fees, the Company will reimburse out-of-pocket
         expenses properly and reasonably incurred by you in the performance of
         your duties including travel costs for attendance at meetings. I would
         ask that, wherever feasible, your claims for all out-of-pocket expenses
         are submitted with supporting documentation in accordance with the
         company's policy and practice.

7.       As the Company is a publicly quoted company, all directors and their
         connected persons are subject to the rules on insider dealing and, in
         particular, to the requirements of the "Model Code" contained in The
         Listing Rules. Full details of these requirements and any other
         responsibilities related to your directorship can be explained by Tony
         Weir, Finance Director.

8.       During your appointment you will have access to confidential
         information regarding the businesses and financial affairs of the
         Company and its subsidiaries. You must not, either during your
         appointment or afterwards, disclose to anyone or otherwise make use of
         this confidential information, except in the proper performance of your
         duties or as may be required by law or by any competent regulatory
         body. This does not apply, however, to any information already in the
         public domain or which forms part of your own skill and knowledge.

9.       Your appointment will terminate on whichever is the earlier of:

         (a) the date of expiry of the term specified in paragraph 1; and

         (b) the date of your ceasing to be a director for any reason pursuant
             to the Company's articles of association or any other applicable
             rule or law.

10.      The Company will obtain director's and officer's liability insurance
         for your benefit and maintain the cover in force for so long as you are
         a non-executive director of the Company.

<PAGE>

I should be grateful if you would sign and return a copy of this letter to
indicate your consent to serve as a director of the Company.

Yours sincerely

/s/   P J Fellner
-----------------
Peter Fellner
CHAIRMAN

Accepted.

/s/   P Read
-----------------
P Read

19th July 2003
-----------------
Dated

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

17th July, 2003

Mr G Kennedy
c/o Thames Court
Watlington Road
Oxford OX4 6LY

Dear Mr Kennedy

I am writing subsequent to meeting of the Board Committee dealing with the
Vernalis Group plc Merger (see below) on 2nd July 2003 at which the Board
considered a proposal to appoint you as senior independent non-executive
director and deputy chairman of British Biotech plc (which it is proposed will
be re-named Vernalis Group plc) (the "Company") conditional on the Merger (as
defined in the draft Listing Particulars relating to the issue of new British
Biotech plc shares dated 14th July 2003) becoming or being declared
unconditional in all respects.

This letter outlines the basis of your proposed appointment.

1.       Your appointment is for a fixed term of three years with effect from
         the date of completion of the Merger (as defined above). At the end of
         the fixed term, in accordance with the Combined Code, the Board of the
         Company will review your appointment and a further term of office may
         be agreed.

2.       The offices of senior independent non-executive director and deputy
         chairman will be held in accordance with the Company's articles of
         association as varied from time to time. Nothing in this letter will be
         taken to exclude or vary the Company's articles of association as they
         apply to you as a director of the Company. In particular, you will:

         (a) retire from office, but be eligible for reappointment at the next
             annual general meeting; and

         (b) subsequently be subject to the retirement of directors by rotation
             provisions in the Company's
                  articles of association.

3.       You are entitled to resign your positions at any time, in accordance
         with the Company's articles of association, although the Company would
         normally expect at least one month's prior notice.

<PAGE>

4.       As a director, you will be expected to attend meetings of the Company's
         Board and of any Committees of the Board to which you may be appointed.
         At present there are six regular meetings of the Board of Directors
         each year, which will normally be held in Winnersh or Cambridge on
         dates agreed by the Board. These meetings normally commence at 10.00am
         and run until 3.00pm or 4.00pm. The nature of the Company's business
         necessitates additional meetings from time to time and, if required,
         these will be arranged at times convenient to a majority of the
         directors.

5.       The fee payable by the Company to you will be Pound Sterling55,000 per
         annum which fee covers any and all preparation and attendance by you at
         full Board meetings or Committee Board meetings. If you carry out the
         role of chairman of the Remuneration or Nominations and Corporate
         Governance Committees you will be paid an additional fee of Pound
         Sterling5,000 per annum. If you carry out the role of chairman of the
         Audit Committee you will be paid an additional fee of Pound
         Sterling7,500 per annum.

6.       In addition to your fees, the Company will reimburse out-of-pocket
         expenses properly and reasonably incurred by you in the performance of
         your duties including travel costs for attendance at meetings. I would
         ask that, wherever feasible, your claims for all out-of-pocket expenses
         are submitted with supporting documentation in accordance with the
         company's policy and practice.

7.       As the Company is a publicly quoted company, all directors and their
         connected persons are subject to the rules on insider dealing and, in
         particular, to the requirements of the "Model Code" contained in The
         Listing Rules. Full details of these requirements and any other
         responsibilities related to your directorship can be explained by Tony
         Weir, Finance Director.

8.       During your appointment you will have access to confidential
         information regarding the businesses and financial affairs of the
         Company and its subsidiaries. You must not, either during your
         appointment or afterwards, disclose to anyone or otherwise make use of
         this confidential information, except in the proper performance of your
         duties or as may be required by law or by any competent regulatory
         body. This does not apply, however, to any information already in the
         public domain or which forms part of your own skill and knowledge.

9.       Your appointment will terminate on whichever is the earlier of:

         (a) the date of expiry of the term specified in paragraph 1; and

         (b) the date of your ceasing to be a director for any reason pursuant
             to the Company's articles of association or any other applicable
             rule or law.

10.      The Company will obtain director's and officer's liability insurance
         for your benefit and maintain the cover in force for so long as you are
         a non-executive director of the Company.

<PAGE>

I should be grateful if you would sign and return a copy of this letter to
indicate your consent to serve as a director of the Company.

Yours sincerely

/s/  P J Fellner
-------------------
Peter Fellner
CHAIRMAN

Accepted.

/s/  G Kennedy
-------------------
G Kennedy

21st July 2003
-------------------
Dated

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

17th July, 2003

Ms C Ferguson
c/o Thames Court
Watlington Road
Oxford OX4 6LY

Dear Ms Ferguson

I am writing subsequent to the meeting of the Board Committee dealing with the
Vernalis Group plc Merger (see below) on 2nd July 2003 at which the Board
considered a proposal to appoint you as a non-executive director of British
Biotech plc (which it is proposed will be re-named Vernalis Group plc) (the
"Company") conditional on the Merger (as defined in the draft Listing
Particulars relating to the issue of new British Biotech plc shares dated 14th
July 2003) becoming or being declared unconditional in all respects.

This letter outlines the basis of your proposed appointment.

1.       Your appointment is for a fixed term of three years with effect from
         the date of completion of the Merger (as defined above). At the end of
         the fixed term, in accordance with the Combined Code, the Board of the
         Company will review your appointment and a further term of office may
         be agreed.

2.       The office of non-executive director will be held in accordance with
         the Company's articles of association as varied from time to time.
         Nothing in this letter will be taken to exclude or vary the Company's
         articles of association as they apply to you as a director of the
         Company. In particular, you will:

         (a) retire from office, but be eligible for reappointment at the next
             annual general meeting; and

         (b) subsequently be subject to the retirement of directors by rotation
             provisions in the Company's articles of association.

3.       You are entitled to resign your position at any time, in accordance
         with the Company's articles of association, although the Company would
         normally expect at least one month's prior notice.

<PAGE>

4.       As a director, you will be expected to attend meetings of the Company's
         Board and of any Committees of the Board to which you may be appointed.
         At present there are six regular meetings of the Board of Directors
         each year, which will normally be held in Winnersh or Cambridge on
         dates agreed by the Board. These meetings normally commence at 10.00am
         and run until 3.00pm or 4.00pm. The nature of the Company's business
         necessitates additional meetings from time to time and, if required,
         these will be arranged at times convenient to a majority of the
         directors.

5.       You will receive a fee of Pound Sterling33,000 per annum, which fee
         covers any and all preparation and attendance by you at full Board
         meetings or Committee Board meetings. If you carry out the role of
         chairman of the Remuneration or Nominations and Corporate Governance
         Committees you will be paid an additional fee of Pound Sterling5,000
         per annum. If you carry out the role of chairman of the Audit Committee
         you will be paid an additional fee of Pound Sterling7,500 per annum.

6.       In addition to your fees, the Company will reimburse out-of-pocket
         expenses properly and reasonably incurred by you in the performance of
         your duties including travel costs for attendance at meetings. I would
         ask that, wherever feasible, your claims for all out-of-pocket expenses
         are submitted with supporting documentation in accordance with the
         company's policy and practice.

7.       As the Company is a publicly quoted company, all directors and their
         connected persons are subject to the rules on insider dealing and, in
         particular, to the requirements of the "Model Code" contained in The
         Listing Rules. Full details of these requirements and any other
         responsibilities related to your directorship can be explained by Tony
         Weir, Finance Director.

8.       During your appointment you will have access to confidential
         information regarding the businesses and financial affairs of the
         Company and its subsidiaries. You must not, either during your
         appointment or afterwards, disclose to anyone or otherwise make use of
         this confidential information, except in the proper performance of your
         duties or as may be required by law or by any competent regulatory
         body. This does not apply, however, to any information already in the
         public domain or which forms part of your own skill and knowledge.

9.       Your appointment will terminate on whichever is the earlier of:

         (a) the date of expiry of the term specified in paragraph 1; and

         (b) the date of your ceasing to be a director for any reason pursuant
             to the Company's articles of association or any other applicable
             rule or law.

10.      The Company will obtain director's and officer's liability insurance
         for your benefit and maintain the cover in force for so long as you are
         a non-executive director of the Company.

<PAGE>

I should be grateful if you would sign and return a copy of this letter to
indicate your consent to serve as a director of the Company.

Yours sincerely

/s/  P J Fellner
-------------------
Peter Fellner
CHAIRMAN

Accepted.

/s/   Carol Ferguson
--------------------
C Ferguson

21 July 2003
--------------------
Dated

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

21st March 2003

Mr K Merrifield
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

Dear Mr Merrifield

Conditional on Completion as defined in the Undertaking relating to the offer by
British Biotech PLC for RiboTargets Holdings PLC dated 21st March 2003 you will
continue to act as a non-executive director of British Biotech PLC (the
"Company") on the terms as set out in this letter.

1.       Your appointment is for a fixed term of three years with effect from
         the date of Completion. At the end of the fixed term, in accordance
         with the Combined Code, the Board of British Biotech PLC will review
         your appointment and a further term of office may be agreed.

2.       The office of non-executive director will be held in accordance with
         the Company's articles of association as varied from time to time.
         Nothing in this letter will be taken to exclude or vary the Company's
         articles of association as they apply to you as a director of the
         Company. In particular, you will:

         (a) retire from office, but be eligible for reappointment at the next
             annual general meeting; and

         (b) subsequently be subject to the retirement of directors by rotation
             provisions in the Company's articles of association.

3.       You are entitled to resign your position at any time, in accordance
         with the Company's articles of association, although the Company would
         normally expect at least one month's prior notice.

4.       As a director, you will be expected to attend meetings of the Company's
         Board and of any Committees of the Board to which you may be appointed.
         At present there are six regular meetings of the Board of Directors
         each year, held normally in Oxford on dates agreed by the Board. These
         meetings normally commence at 10.00am and run until 3.00pm or 4.00pm.

<PAGE>

         The nature of the Company's business necessitates additional meetings
         from time to time and, if required, these will be arranged at times
         convenient to a majority of the directors.

5.       With effect from Completion the fees which shall be payable by the
         Company to non-executive directors are Pound Sterling30,000 per annum,
         which fee covers any and all preparation and attendance by you at full
         Board meetings or Committee Board meetings. If you carry out the role
         of chairman of the Remuneration or Nominations and Corporate Governance
         Committees you will be paid an additional fee of Pound Sterling5,000
         per annum. If you carry out the role of chairman of the Audit Committee
         you will be paid an additional fee of Pound Sterling7,500 per annum.

6.       In addition to your fees, the Company will reimburse out-of-pocket
         expenses properly and reasonably incurred by you in the performance of
         your duties including travel costs for attendance at meetings. I would
         ask that, wherever feasible, your claims for all out-of-pocket expenses
         are submitted with supporting documentation in accordance with the
         company's policy and practice.

7.       As the Company is a publicly quoted company, all directors and their
         connected persons are subject to the rules on insider dealing and, in
         particular, to the requirements of the "Model Code" contained in The
         Listing Rules. Full details of these requirements and any other
         responsibilities related to your directorship can be explained by Tony
         Weir, Finance Director.

8.       During your appointment you will have access to confidential
         information regarding the businesses and financial affairs of the
         Company and its subsidiaries. You must not, either during your
         appointment or afterwards, disclose to anyone or otherwise make use of
         this confidential information, except in the proper performance of your
         duties or as may be required by law or by any competent regulatory
         body. This does not apply, however, to any information already in the
         public domain or which forms part of your own skill and knowledge.

9.       Your appointment will terminate on whichever is the earlier of:

         (a) the date of expiry of the term specified in paragraph 1; and

         (b) the date of your ceasing to be a director for any reason pursuant
             to the Company's articles of association or any other applicable
             rule or law.

10.      The Company will obtain appropriate director's and officer's liability
         insurance for your benefit and maintain the cover in force for so long
         as you are a non-executive director of the Company.

I should be grateful if you would sign and return a copy of this letter to
indicate your consent to serve as a director of British Biotech PLC.

Yours sincerely

/s/  pp  A J Weir
----------------------
Peter Fellner
CHAIRMAN

<PAGE>

Accepted.

/s/   K Merrifield
----------------------
K Merrifield

21 March 2003
----------------------
Dated

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

17th July, 2003

Mr K Merrifield
c/o Thames Court
Watlington Road
Oxford OX4 6LY

Dear Mr Merrifield

I am writing to confirm that with effect from the Merger (as defined in the
draft Listing Particulars relating to the issue of new British Biotech plc
shares dated 14th July 2003) becoming or being declared unconditional in all
respects, the basic level of fees payable by British Biotech plc (the "COMPANY")
to you as a non-executive director of the Company will increase from Pound
Sterling30,000 per annum to Pound Sterling33,000 per annum. Additional fees
relating to the chairmanship of committees will remain unchanged.

Yours sincerely

/s/  P J Fellner
---------------------
Peter Fellner
CHAIRMAN

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

21st March 2003

Mr I Kent
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

Dear Mr Kent

I am writing subsequent to our Board meeting on 3rd March 2003 at which the
Board considered a proposal to appoint you as a non-executive director of
British Biotech PLC (the "Company") conditional on Completion as defined in the
Undertaking relating to the offer by British Biotech PLC for RiboTargets
Holdings PLC dated 21st March 2003. This letter outlines the basis of your
proposed appointment.

1.       Your appointment is for a fixed term of three years with effect from
         the date of Completion. At the end of the fixed term, in accordance
         with the Combined Code, the Board of British Biotech PLC will review
         your appointment and a further term of office may be agreed.

2.       The office of non-executive director will be held in accordance with
         the Company's articles of association as varied from time to time.
         Nothing in this letter will be taken to exclude or vary the Company's
         articles of association as they apply to you as a director of the
         Company. In particular, you will:

         (a) retire from office, but be eligible for reappointment at the next
             annual general meeting; and

         (b) subsequently be subject to the retirement of directors by rotation
             provisions in the Company's articles of association.

3.       You are entitled to resign your position at any time, in accordance
         with the Company's articles of association, although the Company would
         normally expect at least one month's prior notice.

4.       As a director, you will be expected to attend meetings of the Company's
         Board and of any Committees of the Board to which you may be appointed.
         At present there are six regular meetings of the Board of Directors
         each year, held normally in Oxford on dates agreed by the Board. These
         meetings normally commence at 10.00am and run until 3.00pm or 4.00pm.

<PAGE>

         The nature of the Company's business necessitates additional meetings
         from time to time and, if required, these will be arranged at times
         convenient to a majority of the directors.

5.       The fees currently payable by the Company to non-executive directors
         are Pound Sterling30,000 per annum, which fee covers any and all
         preparation and attendance by you at full Board meetings or Committee
         Board meetings. If you carry out the role of chairman of the
         Remuneration or Nominations and Corporate Governance Committees you
         will be paid an additional fee of Pound Sterling5,000 per annum. If you
         carry out the role of chairman of the Audit Committee you will be paid
         an additional fee of Pound Sterling7,500 per annum.

6.       In addition to your fees, the Company will reimburse out-of-pocket
         expenses properly and reasonably incurred by you in the performance of
         your duties including travel costs for attendance at meetings. I would
         ask that, wherever feasible, your claims for all out-of-pocket expenses
         are submitted with supporting documentation in accordance with the
         company's policy and practice.

7.       As the Company is a publicly quoted company, all directors and their
         connected persons are subject to the rules on insider dealing and, in
         particular, to the requirements of the "Model Code" contained in The
         Listing Rules. Full details of these requirements and any other
         responsibilities related to your directorship can be explained by Tony
         Weir, Finance Director.

8.       During your appointment you will have access to confidential
         information regarding the businesses and financial affairs of the
         Company and its subsidiaries. You must not, either during your
         appointment or afterwards, disclose to anyone or otherwise make use of
         this confidential information, except in the proper performance of your
         duties or as may be required by law or by any competent regulatory
         body. This does not apply, however, to any information already in the
         public domain or which forms part of your own skill and knowledge.

9.       Your appointment will terminate on whichever is the earlier of:

         (a) the date of expiry of the term specified in paragraph 1; and

         (b) the date of your ceasing to be a director for any reason pursuant
             to the Company's articles of association or any other applicable
             rule or law.

10.      The Company will obtain appropriate director's and officer's liability
         insurance for your benefit and maintain the cover in force for so long
         as you are a non-executive director of the Company.

I should be grateful if you would sign and return a copy of this letter to
indicate your consent to serve as a director of British Biotech PLC.

Yours sincerely

/s/   A J Weir
--------------------
pp  Peter Fellner
CHAIRMAN

<PAGE>

Accepted.

/s/   I Kent
--------------------
I Kent

21 March 2003
--------------------
Dated

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

17th July, 2003

Mr I Kent
c/o Thames Court
Watlington Road
Oxford OX4 6LY

Dear Mr Kent

I am writing to confirm that with effect from Merger (as defined in the draft
Listing Particulars relating to the issue of new British Biotech plc shares
dated 14th July 2003) becoming or being declared unconditional in all respects,
the basic level of fees payable by British Biotech plc (the "COMPANY") to you as
a non-executive director of the Company will increase from Pound Sterling30,000
per annum to Pound Sterling33,000 per annum. Additional fees relating to the
chairmanship of committees will remain unchanged.

Yours sincerely

/s/   P J Fellner
-------------------
Peter Fellner
CHAIRMAN

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

21st March 2003

Mr E Williams
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXX

Dear Mr Williams

Conditional on Completion as defined in the Undertaking relating to the offer by
British Biotech PLC for RiboTargets Holdings PLC dated 21st March 2003 you will
continue to act as a non-executive director of British Biotech PLC (the
"Company") on the terms as set out in this letter.

1.       Your appointment, which was effective from 26 January, 2001, will
         terminate on 25 January, 2004 at which time in accordance with the
         Combined Code, the Board of British Biotech PLC will review your
         appointment and a further term of office may be agreed.

2.       The office of non-executive director will be held in accordance with
         the Company's articles of association as varied from time to time.
         Nothing in this letter will be taken to exclude or vary the Company's
         articles of association as they apply to you as a director of the
         Company. In particular, you will:

         (a) retire from office, but be eligible for reappointment at the next
             annual general meeting; and

         (b) subsequently be subject to the retirement of directors by rotation
             provisions in the Company's articles of association.

3.       You are entitled to resign your position at any time, in accordance
         with the Company's articles of association, although the Company would
         normally expect at least one month's prior notice.

4.       As a director, you will be expected to attend meetings of the Company's
         Board and of any Committees of the Board to which you may be appointed.
         At present there are six regular meetings of the Board of Directors
         each year, held normally in Oxford on dates agreed by the Board. These
         meetings normally commence at 10.00am and run until 3.00pm or 4.00pm.

<PAGE>

         The nature of the Company's business necessitates additional meetings
         from time to time and, if required, these will be arranged at times
         convenient to a majority of the directors.

5.       With effect from Completion the fees which shall be payable by the
         Company to non-executive directors are Pound Sterling30,000 per annum,
         which fee covers any and all preparation and attendance by you at full
         Board meetings or Committee Board meetings. If you carry out the role
         of chairman of the Remuneration or Nominations and Corporate Governance
         Committees you will be paid an additional fee of Pound Sterling5,000
         per annum. If you carry out the role of chairman of the Audit Committee
         you will be paid an additional fee of Pound Sterling7,500 per annum.

6.       In addition to your fees, the Company will reimburse out-of-pocket
         expenses properly and reasonably incurred by you in the performance of
         your duties including travel costs for attendance at meetings. I would
         ask that, wherever feasible, your claims for all out-of-pocket expenses
         are submitted with supporting documentation in accordance with the
         company's policy and practice.

7.       As the Company is a publicly quoted company, all directors and their
         connected persons are subject to the rules on insider dealing and, in
         particular, to the requirements of the "Model Code" contained in The
         Listing Rules. Full details of these requirements and any other
         responsibilities related to your directorship can be explained by Tony
         Weir, Finance Director.

8.       During your appointment you will have access to confidential
         information regarding the businesses and financial affairs of the
         Company and its subsidiaries. You must not, either during your
         appointment or afterwards, disclose to anyone or otherwise make use of
         this confidential information, except in the proper performance of your
         duties or as may be required by law or by any competent regulatory
         body. This does not apply, however, to any information already in the
         public domain or which forms part of your own skill and knowledge.

9.       Your appointment will terminate on whichever is the earlier of:

         (a) the date of expiry of the term specified in paragraph 1; and

         (b) the date of your ceasing to be a director for any reason pursuant
             to the Company's articles of association or any other applicable
             rule or law.

10.      The Company will obtain appropriate director's and officer's liability
         insurance for your benefit and maintain the cover in force for so long
         as you are a non-executive director of the Company.

I should be grateful if you would sign and return a copy of this letter to
indicate your consent to serve as a director of British Biotech PLC.

Yours sincerely

/s/   A J Weir
---------------------
pp  Peter Fellner
CHAIRMAN

<PAGE>

Accepted.

/s/   E Williams
---------------------
E Williams

March 21, 2003
---------------------
Dated

<PAGE>

                               BRITISH BIOTECH PLC

        REGISTERED OFFICE: THAMES COURT, WATLINGTON ROAD, OXFORD OX4 6LY

                   REGISTERED IN ENGLAND AND WALES NO. 2304992

17th July, 2003

Mr E Williams
c/o Thames Court
Watlington Road
Oxford OX4 6LY

Dear Mr Williams

I am writing to confirm that with effect from the Merger (as defined in the
draft Listing Particulars relating to the issue of new British Biotech plc
shares dated 14th July 2003) becoming or being declared unconditional in all
respects, the basic level of fees payable by British Biotech plc (the "COMPANY")
to you as a non-executive director of the Company will increase from Pound
Sterling30,000 per annum to Pound Sterling33,000 per annum. Additional fees
relating to the chairmanship of committees will remain unchanged.

Yours sincerely

/s/   P J Fellner
--------------------
Peter Fellner
CHAIRMAN

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