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                                                                   EXHIBIT 10.10

              CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN
               PORTIONS OF THIS DOCUMENT. SUCH PORTIONS HAVE BEEN
                REDACTED AND MARKED WITH ASTERISKS (**). THE NON-
               REDACTED VERSION OF THIS DOCUMENT HAS BEEN SENT TO
               THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                   AN APPLICATION FOR CONFIDENTIAL TREATMENT.

                                LICENSE AGREEMENT

            This License Agreement ("Agreement") is entered into effective as of
the 17th day of October, 1996, between Indiana University Foundation, a
not-for-profit Indiana corporation with offices at Showalter House, P.O. Box
500, Bloomington, IN 47402 (hereinafter referred to as "LICENSOR") and Praecis
Pharmaceuticals, Inc., a Delaware corporation with offices at One Hampshire
Street, Cambridge, MA 02139 (hereinafter referred to as "LICENSEE").

                                   WITNESSETH:

            WHEREAS, LICENSOR, by agreement with The Trustees of Indiana
University, is the owner of proprietary rights in intellectual property
resulting from research at Indiana University (hereinafter referred to as "IU");

            WHEREAS, Roger Roeske (hereinafter referred to as "INVENTOR") while
an employee of IU created the "Inventions" as described and attached hereto as
Exhibit A.

            WHEREAS, LICENSOR is the owner of said patent applications and
know-how related to LHRH antagonist compounds as claimed in United States Patent
Application number 08/480,494 filed June 7, 1995 and foreign, PCT application
number PCT/US96/09852 filed June 7, 1996 included in Exhibit A.

            WHEREAS, the parties recognize that the research of the INVENTOR
demonstrated preliminary evidence of usefulness of the Inventions on a
commercial basis, and further recognize that technical knowledge, production
scale-up, market development, and state and federal regulatory approval of the
Inventions shall be required for commercialization;

            WHEREAS, LICENSEE desires to acquire a license to the INVENTIONS and
related technologies and know-how

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                                       2

in order to engage in further product development and sales activities related
to LICENSEE's activity in the biomedical products field, including but not
limited to, oncology and reproductive endocrinology treatments, including but
not limited to cancer (prostate and breast), reproductive endocrinology
(endometriosis, uterine fibroid, female and male fertility), polycystic ovarian
disease, precocious puberty; and

            WHEREAS, LICENSEE has exercised the option granted to LICENSEE under
the Option Agreement Dated June 13, 1995.

            Now, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, and other good valuable consideration, the receipt
of which is hereby acknowledged, the parties agree as follows.

                                    ARTICLE I
                                   Definitions

            1.1 "Invention Rights" shall mean the patented process, patent
applications, disclosures of inventions, technology and know-how involving the
use of certain LHRH antagonist compounds. The technologies are disclosed in
Exhibit A and summarized as follows:

                  (a) United States Patent Application number 08/480,494 filed
June 7, 1995 and foreign, PCT application number PCT/US96/09852 filed June 7,
1996.

                  (b) the existing technical know-how related to the patent
applications and the underlying research.

            1.2 "Patent Rights" shall mean:

                  (a) Subject matter within the scope of any valid claim of
LICENSOR to any patent or patent application relating to the Inventions;
including, without limitation, any continuations, continuations-in-part,
provisionals, divisions, derivations, foreign counterparts, patents of addition,
reissues, renewals, or extensions thereof.

                  (b) Subject matter within the scope of any valid claim of a
LICENSOR owned or controlled patent or patent applications of the Inventor which
dominates the subject matter of the Inventions: including, without limitation,
any continuations, continuations-in-part,

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provisionals, divisions, derivations, foreign counterparts, patents of addition,
reissues, renewals, or extensions thereof.

            1.3 "Licensed Products" shall mean the therapeutic and/or
prophylactic product or part thereof which is manufactured or sold in whole or
in part directly or indirectly by LICENSEE that are covered by any one valid
claim in Patent Rights or include any Invention Rights.

            1.4 "Technical Information" shall mean all present and future
technical information and know-how which relates to the Inventions and shall
include, without limitation, all information relating to the Inventions, the
Patent Rights and the Licensed Products and useful for the development and
commercialization of the Inventions.

            1.5 "Licensee" shall mean Praecis Pharmaceuticals, Inc. or any
Affiliate or assignee thereof.

            1.6 "Improvements" shall mean all improvements including but not
limited to revisions, modifications and enhancements developed by LICENSEE
and/or Sublicensee independently of LICENSOR with respect to any technology,
patent applications, and/or patents related to Invention Rights, Patent Rights,
Technical Information or Licensed Products.

            1.7 "Licensed Patents" shall mean Patent Rights.

            1.8 "Licensor" shall mean Indiana University Foundation.

            1.9 "Affiliate" shall mean any corporation, subsidiary, firm,
partnership or other entity, whether de jure or de facto, which directly or
indirectly owns, is owned by or is under common ownership with a party to this
Agreement to the extent of at least fifty percent (50%) of the equity having the
power to vote on or direct the affairs of the entity and any person, firm,
partnership, corporation, or other entity actually controlled by, controlling,
or under common control of a party to this Agreement.

            1.10 "License Fee" shall mean all amounts collected from a
Sublicensee of LICENSEE, in lieu of royalty and in pursuant to any sublicense
granted by

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LICENSEE to such sublicensee with respect to any Patent Rights and/or
Inventions.

            1.11 "Net Sales" shall mean the gross receipts from sales of
Licensed Products less all (i) transportation charges, including insurance; (ii)
sales and excise taxes and duties paid or allowed by any selling party, together
with any other governmental charges or taxes imposed upon the production,
importation, use, or sale of any Licensed Products; (iii) normal and customary
trade, quantity, and cash discounts allowed; and (iv) allowances or credits to
customers or on account of rejection or return of any Licensed Products subject
to royalty under this Agreement or on account of retroactive price reductions
affecting such Licensed Products.

            1.12 "Sublicense" shall mean the conveyance of rights to any Third
Party to use the Inventions or any part thereof, for its purpose of developing
its own product, in return for any option fee, License Fees or other "front-end
payment" and/or royalties based upon said Third Party's Net Sales.

            1.13 "Sublicensee" shall mean any Third Party to whom or which
LICENSEE has granted a Sublicense.

            1.14 "Third Party" shall mean any person or entity other than
LICENSOR, IU, LICENSEE and its Affiliates.

            1.15 "License Year" shall mean the twelve-month period beginning on
the first day of the month after execution of this Agreement, and each
anniversary of such date thereafter.

            1.16 "Development Costs" shall mean, with respect to any Licensed
Products sold by a Sublicensee which is covered in whole or in part by a
Sublicense, any internal or out-of-pocket charges, costs or expenses incurred by
LICENSEE in connection with research and development activities related to such
Licensed Products.

                                   ARTICLE II
                           Assignment of Patent Rights

            2.1 Ownership of Intellectual Property. LICENSOR, by virtue of its
contractual relationships with IU and the Patent Policy of IU, is the sole and
exclusive owner of all Inventions and Invention Rights covered by this
agreement.

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                                       5

                                   ARTICLE III
                                Grant of License

            3.1 License. LICENSOR hereby grants a license to LICENSEE:

                  (a) an exclusive, worldwide license under the Invention Rights
and/or Patent Rights, together with an express right to grant sublicenses to
Affiliates or Third Party, to make, have made, further develop, research,
improve, use, process, offer for sale, import, sell, and distribute products
embodying Invention Rights and/or Patent Rights;

                  (b) a first right to acquire an exclusive license, on
substantially the same terms as this Agreement with respect to any LHRH related
compounds developed by Inventor.

This grant of rights is subject to the rights of the United States Government,
if any, that arise out of United States Government sponsorship of research that
led to Invention. LICENSEE agrees during the period of exclusivity of this
license in the United States that any Licensed Products produced for sale in the
United States will be manufactured substantially in the United States. If
manufacturing of any product, substantially in the United States, is not
commercially feasible, LICENSOR will use best efforts to cooperate with LICENSEE
in obtaining a waiver of the United States manufacturing requirement from the
United States Government.

            3.2 Reservation. LICENSOR hereby reserves an irrevocable,
nontransferable, royalty-free license to make, further develop, improve and use
but not to have made or commercialize the subject matter of Patent Rights and
Improvements thereon and Technical Information for research and educational
purposes to be conducted at facilities owned and/or operated by IU.
Notwithstanding the reservation contained in this paragraph 3.2, LICENSOR hereby
acknowledges that its right to use the Patent Rights, Improvements and Technical
Information for research and educational purposes is limited by the
confidentiality provisions contained in Article VII below. LICENSOR agrees to
submit to LICENSEE copies of publications related to allow LICENSEE to make
appropriate patent filings with respect to such Invention Rights prior to any
such publication or other distribution of Invention Rights, thirty (30) days
prior to submission for publication or other distribution.

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                                   ARTICLE IV
                             Payments and Royalties

            4.1 Initial Fee. In exchange for the exclusive license granted under
this agreement LICENSEE agrees to pay to LICENSOR an initial fee of fifty
thousand U.S. dollars ($50,000.00) upon execution of this Agreement. This
commitment is designed to partially reimburse the Licensor and IU for the costs
of the research leading to the Invention Rights licensed hereunder. ** (**) of
this Initial Fee, all payments under the Option Agreement and all patent-related
fees and expenses may be credited toward future fees, (including License Fees)
the Milestone Payments referred to in paragraph 4.2, and/or royalties payable to
IUF; however, such credit for fees and/or royalty, in any period, for any
country, shall not exceed ** of the fees or royalty due IUF for such period in
respect of such country, provided that any unused credit may be carried forward
to subsequent periods.

            4.2 Milestone Payments. LICENSEE shall pay three (3) Milestone
Payments, reduced by credits allowed under paragraph 4.1 as follows:

                  (a) ** U.S. dollars ($**) upon **;

                  (b) ** U.S. dollars ($**) upon **; and

                  (c) ** U.S. dollars ($**) upon **.

            4.3 Royalty. LICENSEE shall pay a ** percent (**%) royalty to
LICENSOR on all Net Sales of Licensed Products covered by paragraph 1.3,
commencing with first commercial sale where Licensed Products are not sold in
combination with depot formulation and ** percent (**%) royalties where Licensed
Products are sold in combination with depot formulation.

            4.4 Accrual of Royalties. Royalties shall accrue when Licensed
Products are sold or otherwise transferred by LICENSEE to a Third Party, and
Licensed Products shall be considered sold when LICENSEE invoice is issued.
LICENSEE shall make payments to LICENSOR in accordance with the requirements of
Article VIII.

            4.5 Sublicense License Fees and Royalties. LICENSEE shall pay to
LICENSOR the following:

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                  (a) *** percent (***%) royalties on Net Sales of Licensed
Products by Sublicensee commencing with first commercial sale where Licensed
Products are not sold in combination with depot formulation and *** percent
(***%) royalties where Licensed Products are sold in combination with depot
formulation. Sublicensee shall not pay royalties on the Net Sale of any Licensed
Products by a Sublicensee that is paying LICENSEE License Fees, in lieu of
royalty payments; and

                  (b) *** percent (***%) of License Fees received by LICENSEE
after deduction of documented and reasonable Development Costs with respect to
Licensed Products covered by such Sublicense, provided that no amount shall be
payable under this clause 4.5(b) until the earlier of the following:

                  (c) LICENSEE's cessation of development activities with
respect to the specific Licensed Products indication pursuant to the terms of
the Sublicense under which a License Fee was paid; or

                  (d) the first commercial sale of the specific Licensed
Products indication covered by such Sublicense.

                                    ARTICLE V
                        Additional Covenants of LICENSEE

            5.1 Market Development. LICENSEE agrees to diligently pursue the
development, scale-up, manufacturing and marketing of the Licensed Products in
the United States and such countries as it shall determine is economically and
practically desirable in a manner that is consistent with manufacture, scale-up,
development and marketing efforts for similar products by businesses comparable
to LICENSEE in size and resources.

            5.2 Performance Standards. LICENSEE agrees to comply with the
following Licensed Products performance standards and time periods:

                  (a) LICENSEE shall use commercially reasonable efforts to
submit and prosecute Licensed Products approval requests with the government
agencies having jurisdiction over Licensed Products. LICENSOR and IU hereby
agrees to provide LICENSEE with all existing data, reports and interpretation of
data as LICENSEE may

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request in order to aid it in securing government approval.

                  (b) LICENSEE agrees to prepare and submit to LICENSOR
semi-annual progress reports, the first of which shall be submitted within
thirty (30) days following the end of the first full one-hundred-eighty (180)
day period of this Agreement.

                  (c) upon obtaining required regulatory approvals, to use
commercially reasonable efforts to exercise reasonable business practices to
make Licensed Products available on world-wide basis.

                  (d) Licensee's development program will serve to identify
appropriate milestones against which to gauge due diligence (Exhibit C);
provides that the failure of LICENSEE to meet such milestones within the time
periods contemplated by Exhibit C shall not constitute a material breach of this
License Agreement (and accordingly, LICENSOR shall not be entitled to terminate
this License Agreement due to such failure), unless LICENSEE shall have failed
to use commercially reasonable efforts (consistent with development, scale-up,
manufacture and marketing efforts for similar products by businesses comparable
to LICENSEE in size and resources) to meet such milestone within such time
periods. If LICENSOR believes that a report provided to LICENSOR pursuant to
paragraph 5.2(b) does not reflect such commercially reasonable efforts and gives
notice to such effect to LICENSEE of such a report, LICENSEE shall, within sixty
(60) days of receipt of such notice, address in writing the concerns raised by
LICENSOR in its notification. If LICENSOR remains dissatisfied, the matter shall
be resolved by mediation.

            5.3 Use of Improvements by LICENSOR. LICENSEE agrees to grant to
LICENSOR and IU on a royalty-free, nonexclusive license, to use for research and
educational purposes only, and without the right to Sublicense, to any and all
Improvements.

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                                   ARTICLE VI
                              Covenants of LICENSOR

            6.1 Technical Information. Promptly upon execution of this
Agreement, LICENSOR shall deliver to LICENSEE all (a) Technical Information and
all marketing information pertaining to the Inventions, the Patent Rights and
the Licensed Products in its possession or with respect to which it has control.
LICENSOR shall promptly report to LICENSEE any information or facts of serious
or unexpected reactions related to any application of the Inventions.

            6.2 Prototype Tests and Governmental Approvals. At LICENSEE's
request, and subject to LICENSOR's concurrence with said request, which will not
be unreasonably withheld LICENSOR through IU shall assist LICENSEE in the design
and/or conduct of prototype evaluation and such other testing and review
procedures as may be necessary in order to obtain requisite federal, state and
foreign governmental regulatory agency approval with respect to the use,
manufacture or sale of any Licensed Products. LICENSEE shall provide adequate
financial support for tests conducted by LICENSOR through IU, such support shall
be the subject of a budget approved by both parties.

            6.3 Invention Agreements. LICENSOR represents and warrants to
LICENSEE that the Inventor and all personnel that have worked on the development
of the Inventions have assigned all rights with respect thereto to LICENSOR
pursuant to duly executed Invention Agreements. LICENSOR agrees to cause any
personnel that may hereafter be assigned to perform research with respect to the
Inventions, the Patent Rights or the Licensed Products pursuant to this
Agreement or any research agreements to assign rights to it pursuant to the IU
Patent Policy and all such rights shall be deemed to be automatically included
within the scope of the license granted hereby, without further action or
consideration.

            6.4 Research Materials. LICENSOR agrees to provide, as available and
mutually agreed upon, during the term of this Agreement, LICENSEE with research
quantities of materials relating to Inventions. The material will be provided by
IU to LICENSEE with a fee to reimburse IU for its distribution costs. The terms
of this material transfer from IU to LICENSEE will be mutually agreed upon under
a separate Uniform Biological Material

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Transfer Agreement (UBMTA) in substantially the form of Exhibit D.

            6.5 Referrals. LICENSOR shall use its best efforts to refer to both
LICENSEE and the second Licensee any and all prospects having an interest in the
Invention Rights.

                                   ARTICLE VII
                                 Confidentiality

            7.1 Confidentiality. LICENSOR and LICENSEE agree to maintain as
confidential any information which may be disclosed by the other and is
designated in writing as confidential. Such information shall not be considered
confidential if the recipient can show that such information is: 1) generally
known or readily available to the public; 2) was already known to LICENSOR or
LICENSEE from other sources at the time of the receipt thereof without a breach
of any obligation of confidentiality; 3) becomes available to the public
independent of LICENSOR or LICENSEE; 4) is disclosed to LICENSOR or LICENSEE by
a Third Party having legal rights to information and not bound by this Agreement
or 5) is subsequently and independently developed by an employee of LICENSOR or
LICENSEE who had no knowledge of the information disclosed by LICENSOR or
LICENSEE. Notwithstanding any of the foregoing, any confidential information
disclosed by either party to the other shall be maintained in confidence five
(5) years from the date of such disclosure unless mutually agreed otherwise.

                                  ARTICLE VIII
                              Payments and Reports

            8.1 Semi-Annual Payments. Payments of royalties from LICENSEE to
LICENSOR hereunder shall be made by LICENSEE to LICENSOR on a semi-annual basis,
not later than ninety (90) days after the last day of each semi-annual period
for as long as such obligations continue under this Agreement. Payments shall be
accompanied by reports which shall set forth units sold and a calculation of the
amounts owed to LICENSOR on a country-by-country basis for the applicable
semi-annual period. Late payment shall bear interest at the maximum rate
allowable by Indiana Usury Law; however, said rate shall not exceed the prime
rate plus two percent (2%).

            8.2 Exchange Rate. All Payments hereunder shall be made in U.S.
dollars in the United States. In

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the event LICENSEE receives payment for Licensed Products in currency other than
U.S. dollars, payments payable to LICENSOR shall be computed using the official
rate of exchange as reported in The Wall Street Journal prevailing on the date
the payment to LICENSEE is actually collected from the Third Party.

            8.3 Single Royalty Liability. LICENSEE and its Affiliates shall be
liable for one royalty with respect to any given Licensed Products or product
embodying any part of the Invention Rights.

            8.4 Deduction for Taxes. Any tax paid or required to be withheld by
LICENSEE on any Net Sales for which Payments are payable to LICENSOR under this
Agreement shall be deducted from the total amount of Payments otherwise due.
LICENSEE shall secure and send to LICENSOR proof of any such taxes withheld and
paid by LICENSEE or its sublicensees.

                                   ARTICLE IX
                           Record Keeping and Auditing

            9.1 Records. LICENSEE shall maintain full, true and accurate records
containing all information which may be necessary for a determination of the
various amounts to be paid to LICENSOR under the terms of this Agreement. Said
records shall be maintained for no less than four (4) years from the date of
creation and shall be open and available upon reasonable notice during regular
business hours for review by LICENSOR or any independent certified public
accountant, retained and paid for by LICENSOR for the purpose of verifying
LICENSEE's compliance with its payment obligations hereunder. This includes the
right to inspect LICENSEE documentation of reasonable Development Costs deducted
under paragraph 4.5. In the event LICENSEE has failed to pay royalty due
LICENSOR, and such deficit exceeds five percent (5%) or five hundred dollars
($500.00), whichever is greater, for any one (1) year time period, LICENSEE
agrees to pay all reasonable and documented audit expenses.

                                    ARTICLE X
                                Patent Protection

            10.1 Prosecution of Patent Applications. Upon full execution of this
Agreement, LICENSEE agrees to continue to prosecute, at its own expense, the
applications for United States Letters Patent identified in

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Exhibit A. With respect to any given patent application filed in the United
States and arising out of research evaluations conducted pursuant to this
Agreement, LICENSEE shall further file and diligently prosecute corresponding
foreign applications and maintain any patent issuing therefrom, in such
additional countries throughout the world as set forth in Exhibit B, always
attempting to obtain the best available claim coverage, at LICENSEE's own
expense.

            10.2 LICENSOR decides not to file. In the event LICENSEE decides not
to file and/or diligently prosecute the application for Letters Patent
identified in Exhibit A, LICENSEE shall notify LICENSOR at least thirty (30)
days prior to taking, or not taking, action and LICENSOR may, at its election
and expense, but without obligation on its part, undertake such actions, and in
that event, LICENSEE shall give up all rights to such patent or patent
application and shall do all other acts reasonably required by LICENSOR to
exercise LICENSOR's rights under this paragraph 10.2.

            10.3 Disclosure of Patent Prosecution Information. LICENSOR and
LICENSEE shall disclose to each other the complete texts of all patent
applications filed by LICENSOR and LICENSEE included in the Patent Rights.

            Prior to taking any action with respect to the United States or any
foreign Patent Office or with respect to any other governmental or regulatory
body having jurisdiction over the subject matter of this Agreement, LICENSEE
shall present to LICENSOR and shall afford LICENSOR the opportunity to make such
comments as it may deem desirable to the texts of all patent applications
intended to be filed by LICENSEE which relate to the Inventions or the Patent
Rights. LICENSEE shall also afford LICENSOR the prior right to review and
comment on all information received or prepared by LICENSEE concerning the
institution or possible institution or any interference, opposition,
re-examination, reissue, revocation, nullification or any official proceeding
involving Patent Rights anywhere in the world. LICENSEE shall keep LICENSOR
fully informed of the course of all patent prosecution or other proceedings and
shall permit LICENSOR the full right to participate in such proceedings at its
own expense.

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            10.4 Patent Infringement Notification. LICENSOR and LICENSEE shall
promptly inform each other in writing of any alleged infringement of which it
shall have notice committed by a Third Party regarding any patents within the
Patent Rights and each shall provide the other with any available evidence of
such infringement. Within thirty (30) days after receipt of the notice of
alleged infringement, LICENSOR and LICENSEE shall meet and mutually agree on a
procedure for resolving the alleged infringement.

            10.5 LICENSOR's Option Regarding Infringement. If within four (4)
months after the notice of alleged infringement specified in paragraph 10.4
above, LICENSEE shall have been unsuccessful in resolving the alleged
infringement in a manner mutually acceptable to LICENSOR and LICENSEE, then
LICENSOR shall have the right, but shall not be obligated, to prosecute at its
own expense any infringement of the Patent Rights, and LICENSOR may, for such
purposes, use the name of LICENSEE as party plaintiff; provided, however, that
such right to bring an infringement action in LICENSEE's name shall remain in
effect only so long as the license granted herein remains exclusive. Without
LICENSEE's prior written consent, LICENSOR will not consent to any settlement,
consent judgment or other voluntary disposition of such suit if the same
involves any liability of, or admission of culpability of LICENSEE.

            10.6 LICENSEE's Option Regarding Infringement. In the event that
LICENSEE shall undertake the enforcement and/or defense of the Patent Rights by
litigation, LICENSOR shall allow LICENSEE to withhold up to fifty percent (50%)
of the royalties from royalty payments due to LICENSOR from Net Sales in the
country in which the litigation occurs, and may apply the same toward
reimbursement of its expenses, including reasonable attorneys' fees, in
connection therewith.

            Any recovery of damages by LICENSEE for any such suit shall be
applied first in satisfaction of any unreimbursed expenses and legal fees of
LICENSEE and LICENSOR relating to the suit, and next toward reimbursement of
LICENSOR for any royalties past due or withheld and applied pursuant to this
Article X. The balance remaining from any such recovery shall be retained by
LICENSEE.

            10.7 Cooperation During Infringement Proceedings. In any
infringement suit either party may insti-

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tute to enforce the Patent Rights pursuant to this Agreement, the other party
hereto shall, at the request and expense of the party initiating such suit,
cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information,
samples, specimens, and the like.

                                   ARTICLE XI
                                   Sublicenses

            11.1 Authority to Sublicense. The terms and conditions under which
LICENSEE may grant sublicenses under the Patent Rights shall rest solely in
LICENSEE's discretion as long as the relevant requirements set forth in this
Agreement are met.

            11.2 Required Provisions. LICENSEE shall include as a provision in
the Sublicense Agreement that if LICENSEE enters into an arrangement of
creditors and/or bankruptcy that one (1) week prior to such arrangement of
creditors and/or bankruptcy that any and all Sublicensees have the right to be
notified by LICENSEE of such arrangement and/or bankruptcy and such Sublicenses
shall further state that any and all license fees owed directly to LICENSEE
shall thereafter be paid directly to LICENSOR at the same royalty rate set forth
in any and all existing Sublicensee Agreements.

            11.3 Accounting. LICENSEE shall provide LICENSOR an accounting of
all License Fees and royalties received from Sublicensees. Such accounting shall
accompany the Semi-Annual Report as provided in paragraph 8.1.

            11.4 Sublicense Agreements. LICENSEE agrees to deliver to LICENSOR a
true and correct copy of each and every sublicense entered into by LICENSEE
within thirty (30) days after execution thereof and shall promptly advise
LICENSOR in writing of any modification (and supply a copy of same) or
termination of each sublicense. Upon termination of this Agreement, LICENSEE's
rights in all sublicenses shall be determined according to paragraph 12.5.

                                   ARTICLE XII
                              Term and Termination

            12.1 Term. This Agreement and LICENSEE's obligations shall be in
effect until the date of the last to expire of Licensed Patents and shall remain
in effect

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unless terminated earlier in accordance with the provisions of this Article XII.
In the event that this Agreement terminates at the date of the last to expire
Licensed Patents, then LICENSEE shall not be precluded from continuing to make,
have made, further develop, improve, use and sell Licensed Products, and use of
the Technical Information. Such request for continuation shall be presented to
LICENSOR by LICENSEE in writing and continuation shall be by mutual consent.
LICENSOR agrees that consent shall not be unreasonably withheld.

            12.2 Voluntary Termination. LICENSEE shall have the right to
terminate this Agreement upon giving LICENSOR ninety (90) days prior to written
notice to that effect.

            12.3 Termination for Breach. In the event that LICENSEE shall at any
time fail to make required payments or otherwise materially breach the terms of
this Agreement, LICENSOR shall notify LICENSEE of such breach and shall indicate
that it intends to terminate this Agreement unless such breach is corrected or
terminated. LICENSEE shall have ninety (90) days following its receipt of such
notice to correct such breach. In the event of unforeseen delay, justification
for delay shall be presented to LICENSOR by LICENSEE and termination shall be
delayed to some agreed time if it is determined that diligence by LICENSEE
existed.

            12.4 Payment of Accrued Royalties. The termination of this Agreement
for any reason shall be without prejudice to LICENSOR's right to receive all
amounts payable and unpaid at the date of the termination of this Agreement.

            12.5 Survival of Sublicenses. Any sublicense granted by LICENSEE
pursuant to this Agreement prior to any termination of this Agreement shall
survive the termination of this Agreement. Upon termination of this Agreement
for any reason during the term of any Sublicenses, LICENSEE shall assign to
LICENSOR all of LICENSEE's rights in such Sublicenses and LICENSOR shall assume
all obligations of LICENSEE under any such Sublicense.

            12.6 Sales of Licensed Products Inventory. Upon termination of this
Agreement, other than pursuant to paragraph 12.1, LICENSEE shall notify LICENSOR
of the amount of Licensed Products LICENSEE and its various distributors then
have on hand, the sale of which would,

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but for such termination, be subject to royalty, and thereafter LICENSEE and its
various distributors shall be permitted to sell such quantities of Licensed
Products, and LICENSEE shall pay LICENSOR the applicable royalty in the manner
required hereby.

            12.7 Assignment of Patent Rights Upon Termination. In the event this
Agreement is terminated for any reason other than the expiration of Licensed
Patents, LICENSEE hereby agrees to reassign to LICENSOR any ownership rights in
patents acquired by it by virtue of this Agreement.

            12.8 Survival of Covenants. Expiration or termination of this
Agreement for any reason shall terminate all outstanding obligations and
liabilities between the parties arising from this Agreement except those
described in paragraph 5.3 and Article VII.

            12.9 Partial Termination. Termination of this Agreement with respect
to any particular country or territory shall not affect this Agreement with
respect to any other country or territory.

            12.10 Additional Termination Rights. This Agreement may be
terminated by LICENSOR at its option and without prejudice to any other remedy
to which it may be entitled at law or in equity, or elsewhere under this
Agreement, by giving written notice of termination to LICENSEE in the event that
LICENSEE (a) shall become "Insolvent" (as such term is defined in the Bankruptcy
Code of the United States of America, as amended from time-to-time), (b) shall
fail to pay its debts generally as they become due, (c) shall voluntarily seek,
consent, or acquiesce in the benefits of any bankruptcy or similar debtor-relief
laws, or (d) shall become a party to or is made the subject of any proceeding
provided for by any debtor-relief law that could suspend or otherwise alter
LICENSOR's rights under this Agreement.

                                  ARTICLE XIII
                          Representations and Indemnity

            13.1 LICENSOR Representations. LICENSOR hereby represents to
LICENSEE as follows:

                  (a) LICENSOR has sole and exclusive ownership rights in and to
the Invention Rights, the Patent Rights, and the Technical Information granted
to LICENSEE;

<PAGE>
                                       17

                  (b) LICENSOR has the full right, power, and authority to
assign, free and clear of any liens, claims or encumbrances of any kind,
ownership and grant the license set forth in Articles II and III;

                  (c) There are no outstanding agreements, assignments, or
encumbrances inconsistent with the provisions of this Agreement.

                  (d) LICENSOR has no knowledge of any infringement or of any
pending or threatened claim relating in any manner to the Inventions, the Patent
Rights or the Licensed Products;

                  (e) LICENSOR has no knowledge of or reason to believe that any
of the Patent Rights are invalid or unenforceable or that their exercise would
infringe the patent rights of any Third Party.

                  (f) LICENSOR MAKES NO OTHER REPRESENTATION OR WARRANTY,
EXPRESS OR IMPLIED, NOR DOES LICENSOR ASSUME ANY OBLIGATIONS WITH RESPECT TO THE
INFRINGEMENT OF PATENTS OF OTHERS ARISING AS A RESULT OF LICENSEE'S ACTIVITIES
UNDER THIS AGREEMENT.

            13.2 LICENSEE's Representations and Indemnity. LICENSEE agrees to
indemnify and hold LICENSOR, IU, and their Trustees, Directors, officers and
employees harmless from and against any and all claims, demands, losses or
causes of action related in any way to marketing, commercialization or other
rights granted under this Agreement, except to the extent that such claims,
demands, losses or causes of action result (a) from negligent or intentional
actions or misrepresentations on the part of LICENSOR and/or IU, or (b) from
patent infringement claims involving the Invention Rights, the Patent Rights or
the Licensed Products.

            13.3 Cooperation in Defending Claims. In the event of the
institution of any suit by a Third Party against LICENSOR and/or IU or LICENSEE
or its sublicensees for patent infringement involving the manufacture, use,
sale, distribution or marketing of Licensed Products, the party sued shall
promptly notify the other party in writing. LICENSOR and LICENSEE shall assist
one another and cooperate in any such litigation at the other's request without
expense to the requesting party; provided, however, that LICENSOR and LICENSEE
shall each recover its costs of litigation from any recovery, award or
settlement as provided in paragraph 10.7.

<PAGE>
                                       18

                                   ARTICLE XIV
                       Third Party and Compulsory Licenses

            14.1 Third Party Licenses. Without limitation of paragraph 4.3 (and
the royalty reduction provided therein), in the event that LICENSEE deems it
necessary to pay royalties to any Third Party on account of making, having made,
using or selling Licensed Products by virtue of Third Party having rights under
a patent, or to know-how where no patents are applicable, which dominate the
rights granted to LICENSEE hereunder, LICENSEE shall give written notice thereof
to LICENSOR and LICENSOR and LICENSEE shall renegotiate in good faith a lowering
of the royalty rates required to be paid under this Agreement.

            14.2 Compulsory License. In the event that a governmental agency in
any country or territory, except as referred to in Article III hereunder, grants
or compels LICENSOR to grant a license to it or to any Third Party for any
Licensed Products, LICENSEE shall have the benefit in such county or territory
of the terms granted to such Third Party to the extent that such terms are more
favorable than those of this Agreement.

                                   ARTICLE XV
                                 Export Controls

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

                                   ARTICLE XVI
                                   Use of Name

<PAGE>
                                       19

            16.1 Use of Name. No advertising or publicity concerning the subject
matter of this Agreement and having or containing any reference to LICENSOR, IU
or any inventor or other employee of either shall be made use of by either party
hereto unless and until the same shall have been first submitted to and shall
have received the approval of the authorized representative of the parties
hereto, appointed pursuant to Paragraph 17.1 hereof, which approval shall not be
unreasonably withheld, provided that LICENSEE shall be entitled to refer to
LICENSOR, IU and this Agreement in disclosure or similar documents used in
connection with financing transactions and that LICENSOR and/or IU shall review
and approve all such language, such approval not to be unreasonably withheld.

                                  ARTICLE XVII
                                  Miscellaneous

            17.1 Notices or Other Communications. Any payment, notice or other
communication required or permitted to be made or to be given to either party
under this Agreement shall be sufficiently made or given three business days
after the date of mailing if sent to such party by certified first class U.S.
mail, postage prepaid, the date of transmission (or the next business day
thereafter if such date is not a business day) by telecopier (to the respective
numbers set forth below) with answer back to confirm or upon receipt if
personally delivered (including by reputable overnight carrier) at the address
as shall be designated by written notice given to the other party.

If to LICENSOR:

            Attn: Vice President, Office of Technology Transfer
            Advanced Research & Technology Institute
            Indiana University
            501 North Morton, Suite 111
            Bloomington, IN 47404
            telecopier number: (812) 855-3757

If to LICENSEE:

            Attn: Director of Business Development
            Praecis Pharmaceuticals, Inc.
            One Hampshire Street
            Cambridge, MA 02139
            telecopier number: (617) 494-8414

<PAGE>
                                       20

            In the event of a change of address, the party changing must notify
the other party.

            17.2 Assignability. Licensee may assign or otherwise transfer this
Agreement and the License granted hereby and the rights acquired by it to and
only to the assignee or transferee of Licensee's entire business or of that part
of Licensee's business to which the License granted hereby relates, provided,
however, that such assignee or transferee agrees in writing to be bound by the
terms and conditions of this Agreement. Licensee will give IU Foundation thirty
days prior notice of such assignment and transfer and if IU Foundation raises no
reasonable objection in writing to such assignment or transfer within fifteen
days after IU Foundation receives such notice, then IU Foundation will be deemed
to have approved such assignment or transfer so long as the assignee or
transferee agrees in writing to be bound by the terms and conditions of this
Agreement. If Licensee sells or otherwise transfers its entire business or that
part of its business to which the license granted hereby relates and the
assignee or transferee does not agree in writing to be bound by the terms and
conditions of this Agreement within fifteen days of such sale or transfer, IU
Foundation will have the sole right to terminate this License by providing
written notice of termination to such transferee or assignee.

            17.3 Governing Law. This Agreement and its effects are subject to
and shall be construed and enforced within the internal laws of the State of
Indiana and the United States of America.

            17.4 Entire Agreement and Amendments. This Agreement embodies the
entire understanding of the parties and supersedes and replaces any and all pre-
existing agreements or understandings between LICENSEE and LICENSOR and/or IU
relating to the subject matter hereof. No amendment or modification of this
Agreement shall be valid or binding upon LICENSEE or LICENSOR unless made in
writing and signed on behalf of each of the parties by their respective duly
authorized representative.

            17.5 Specific Performance. Each of the parties hereto acknowledges
and agrees that its respective rights and opportunities arising out of the
obligations under this Agreement are of a unique nature. To the extent permitted
by the laws and constitution of the State of Indiana, in order to preclude any
dispute regarding the determinability of damages resulting from a

<PAGE>
                                       21

failure or breach in performance by any party hereto, each of the parties hereby
agrees that they shall be entitled to sue in equity for specific performance or
to obtain any injunction against continued or future violations of this
Agreement, and each of the parties to this Agreement expressly waives the
defense that a remedy in damages would be adequate.

            17.6 Waiver. A waiver by any party hereto as to any particular
breach of this Agreement shall not constitute or be considered a waiver of any
similar breach thereafter.

            17.7 Headings. The headings of the paragraphs are inserted for
convenience of reference and not for interpretation of this Agreement.

            17.8 Multiple Counterparts. This Agreement is executed in duplicate
and each executed duplicate is deemed an original.

            17.9 Pre-existing Agreements. LICENSOR and LICENSEE represent that
there are no other outstanding agreements relating to the Inventions set forth
in paragraph 1.1.

            IN WITNESS WHEREOF, each party hereto has executed this Agreement as
of the day and year first above written.

INDIANA UNIVERSITY FOUNDATION           PRAECIS
PHARMACEUTICALS, INC.

By /s/ Walter L. Koon, Jr.              By /s/ Marc A. Silver
   ---------------------------------       -------------------------------------
   Walter L. Koon, Jr.
   Senior Vice President,               Title Vice President
     Investments                              ----------------------------------

Date January 30, 1997                   Date February    , 1997
     -------------------------------         -----------------------------------

<PAGE>
                                       22

                                    EXHIBIT A

                       Patent(s) and Patent Application(s)

    United States patent Application number 08/480,494 filed June 7, 1995 PCT
              application number PCT/US96/09852 filed June 7, 1996

<PAGE>
                                       23

                                    EXHIBIT B

                 List of Countries in Which to File for Patents

                                     Europe
                                     Canada
                                      Japan
                                    Australia

<PAGE>
                                       24

                                    EXHIBIT C

                 Pharmaceutical Peptides, Inc. Development Plan

               [NOT INCLUDED AS AN EXHIBIT TO ORIGINAL AGREEMENT]
<PAGE>

                                    EXHIBIT D

                 Uniform Biological Material Transfer Agreement
                              Non-Profit to Profit

I.    Definitions:

      1.    PROVIDER: Organization providing the ORIGINAL MATERIAL. (Name and
            address).

      2.    PROVIDER SCIENTIST: (Name and address).

      3.    RECIPIENT: Organization receiving the ORIGINAL MATERIAL (Name and
            address).

      4.    RECIPIENT SCIENTIST (Name and address):

      5.    ORIGINAL MATERIAL (Description of the material being transferred):

      6.    MATERIAL: ORIGINAL MATERIAL, PROGENY, and UNMODIFIED DERIVATIVES.
            The MATERIAL shall not include: (a) MODIFICATIONS, or (b) other
            substances created by the RECIPIENT through the use of the MATERIAL
            which are not MODIFICATIONS, PROGENY, or UNMODIFIED DERIVATIVES.

      7.    PROGENY: Unmodified descendant from the MATERIAL, such as virus from
            virus, cell from cell, or organism from organism.

      8.    UNMODIFIED DERIVATIVES: Substances created by the RECIPIENT which
            constitute an unmodified functional subunit or product expressed by
            the ORIGINAL MATERIAL. Some examples include: subclones of
            unmodified cell lines, purified or fractionated subsets of the
            ORIGINAL MATERIAL, proteins expressed by DNA/RNA supplied by the
            PROVIDER, or monoclonal antibodies secreted by a hybridoma cell
            line.

      9.    MODIFICATIONS: Substances created by the RECIPIENT which
            contain/incorporate the MATERIAL.

      10.   COMMERCIAL PURPOSES: The sale, lease, license, or other transfer of
            the MATERIAL or MODIFICATIONS to a for-profit organization.
            COMMERCIAL PURPOSES shall also include uses of the MATERIAL or
            MODIFICATIONS by any organization, including RECIPIENT, to perform
            contract research, to screen compound libraries, to produce or
            manufacture products for general sale, or to conduct research
            activities that result in any sale, lease, license, or transfer of
            the MATERIAL or MODIFICATIONS to a for-profit organization. However,
            industrially sponsored academic research shall not be considered a
            use of the MATERIAL or MODIFICATIONS for COMMERCIAL PUR-

                                                                              25
<PAGE>

            POSES per se, unless any of the above conditions of this definition
            are met.

      11.   NONPROFIT ORGANIZATION(S): A university or other institution of
            higher education or an organization of the type described in section
            501(c)(3) of the Internal Revenue Code of 1954 (26 U.S.C. 501(c))
            and exempt from taxation under section 501(a) of the Internal
            Revenue Code (26 U.S.C. 501(a)) or any nonprofit scientific or
            educational organization qualified under a state nonprofit
            organization statute. As used herein, the term also includes
            government agencies.

II.   Terms and Conditions of this Agreement.

      1.    The PROVIDER retains ownership of the MATERIAL, including any
            MATERIAL contained or incorporated in MODIFICATIONS.

      2.    The RECIPIENT retains ownership of: (a) MODIFICATIONS (except that,
            the PROVIDER retains ownership rights to the MATERIAL included
            therein), and (b) those substances created through the use of the
            MATERIAL or MODIFICATIONS, but which are not PROGENY, UNMODIFIED
            DERIVATIVES or MODIFICATIONS (i.e., do not contain the ORIGINAL
            MATERIAL, PROGENY, UNMODIFIED DERIVATIVES). If either 2(a) or 2(b)
            results from the collaborative efforts of the PROVIDER and the
            RECIPIENT, joint ownership may be negotiated.

      3.    The RECIPIENT and the RECIPIENT SCIENTIST agree that the MATERIAL:

            (a)   is to be used solely for research purposes;

            (b)   will not be used in human subjects, in clinical trials, or for
                  diagnostic purposes involving human subjects without the
                  written consent of the PROVIDER;

            (c)   is to be used only at the RECIPIENT organization and only in
                  the RECIPIENT SCIENTIST's laboratory under the direction of
                  the RECIPIENT SCIENTIST or others working under his/her direct
                  supervision; and

      4.    The RECIPIENT and the RECIPIENT SCIENTIST agree to refer to the
            PROVIDER any request for the MATERIAL from anyone other than those
            persons working under the RECIPIENT SCIENTIST's direct supervision.

      5.    (a)   The RECIPIENT and/or the RECIPIENT SCIENTIST shall have the
                  right, without restriction, to distribute substances created
                  by the RECIPIENT through the use of the ORIGINAL MATERIAL only
                  if those substances

                                                                              26
<PAGE>

                  are not PROGENY, UNMODIFIED DERIVATIVES, or MODIFICATIONS.

            (b)   Without written consent from the PROVIDER, the RECIPIENT
                  and/or the RECIPIENT SCIENTIST may NOT provide MODIFICATIONS
                  for COMMERCIAL PURPOSES. It is recognized by the RECIPIENT
                  that such COMMERCIAL PURPOSES may require a commercial license
                  from the PROVIDER and the PROVIDER has no obligation to grant
                  a commercial license to its ownership interest in the MATERIAL
                  incorporated in the MODIFICATIONS. Nothing in this paragraph,
                  however, shall prevent the RECIPIENT from granting commercial
                  licenses under the RECIPIENT's intellectual property rights
                  claiming such MODIFICATIONS, or methods of their manufacture
                  or their use.

      6.    The RECIPIENT acknowledges that the MATERIAL is or may be the
            subject of a patent application. Except as provided in this
            Agreement, no express or implied licenses or other rights are
            provided to the RECIPIENT under any patents, patent applications,
            trade secrets or other proprietary rights of the PROVIDER, including
            any altered forms of the MATERIAL made by the PROVIDER. In
            particular, no express or implied licenses or other rights are
            provided to use the MATERIAL, MODIFICATIONS, or any related patents
            of the PROVIDER for COMMERCIAL PURPOSES.

      7.    If the RECIPIENT desires to use or license the MATERIAL or
            MODIFICATIONS for COMMERCIAL PURPOSES, the RECIPIENT agrees, in
            advance of such use, to negotiate in good faith with the PROVIDER to
            establish the terms of a commercial license. It is understood by the
            RECIPIENT that the PROVIDER shall have no obligation to grant such a
            license to the RECIPIENT, and may grant exclusive or non-exclusive
            commercial licenses to others, or sell or assign all or part of the
            rights in the MATERIAL to any third party(ies), subject to any pre-
            existing rights held by others and obligations to the Federal
            Government.

      8.    The RECIPIENT is free to file patent application(s) claiming
            inventions made by the RECIPIENT through the use of the MATERIAL but
            agrees to notify the PROVIDER upon filing a patent application
            claiming MODIFICATIONS or method(s) of manufacture or use(s) of the
            MATERIAL.

      9.    Any MATERIAL delivered pursuant to this Agreement is understood to
            be experimental in nature and may have hazardous properties. The
            PROVIDER MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY
            KIND, EITHER EXPRESSED OR IMPLIED. THERE ARE NO EXPRESS OR IMPLIED
            WARRANTIES OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE,
            OR THAT

                                                                              27
<PAGE>

            THE USE OF THE MATERIAL WILL NOT INFRINGE ANY PATENT, COPYRIGHT,
            TRADEMARK, OR OTHER PROPRIETARY RIGHTS.

      10.   Except to the extent prohibited by law, the RECIPIENT assumes all
            liability for damages which may arise from its use, storage or
            disposal of the MATERIAL. The PROVIDER will not be liable to the
            RECIPIENT for any loss, claim or demand made by the RECIPIENT, or
            made against the RECIPIENT by any other party, due to or arising
            from the use of the MATERIAL by the RECIPIENT, except to the extent
            permitted by law when caused by the gross negligence or willful
            misconduct of the PROVIDER.

      11.   This Agreement shall not be interpreted to prevent or delay
            publication of research findings resulting from the use of the
            MATERIAL or the MODIFICATIONS. The RECIPIENT SCIENTIST agrees to
            provide appropriate acknowledgement of the source of the MATERIAL in
            all publications.

      12.   The RECIPIENT agrees to use the MATERIAL in compliance with all
            applicable statutes and regulations, including Public Health Service
            and National Institutes of Health regulations and guidelines such
            as, for example, those relating to research involving the use of
            animals or recombinant DNA.

      13.   This Agreement will terminate on the earliest of the following
            dates:

            (a)   When the MATERIAL becomes generally available from third
                  parties, for example, through reagent catalogs or public
                  depositories, or

            (b)   on completion of the RECIPIENT's current research with the
                  MATERIAL, or (c) on thirty (30) days written notice by either
                  party to the other:

                  (i)   If termination should occur under 13(a), the RECIPIENT
                        shall be bound to the PROVIDER by the least restrictive
                        terms applicable to the MATERIAL obtained from the
                        then-available sources; and

                  (ii)  If termination should occur under 13(b) above, the
                        RECIPIENT will discontinue its use of the MATERIAL and
                        will, upon direction of the PROVIDER, return or destroy
                        any remaining MATERIAL. The RECIPIENT, at its
                        discretion, will also either destroy the MODIFICATIONS
                        or remain bound by the terms of this agreement as they
                        apply to MODIFICATIONS; and

                                                                              28
<PAGE>

                  (iii) In the event the PROVIDER terminates this Agreement
                        under 13(c) other than for breach of this Agreement or
                        for cause such as an imminent health risk or patent
                        infringement, the PROVIDER will defer the effective date
                        of termination for a period of up to one year, upon
                        request from the RECIPIENT, to permit completion of
                        research in progress. Upon the effective date of
                        termination, or if requested, the deferred effective
                        date of termination, RECIPIENT will discontinue its use
                        of the MATERIAL and will, upon direction of the
                        PROVIDER, return or destroy any remaining MATERIAL. The
                        RECIPIENT, at its discretion, will also either destroy
                        the MODIFICATIONS or remain bound by the terms of this
                        agreement as they apply to MODIFICATIONS.

      14.   Paragraphs 6, 9, and 10 shall survive termination.

      15.   The MATERIAL is provided at a cost of ______ dollars ($____.00) to
            reimburse the PROVIDER for its preparation and distribution costs.

      16.   The PROVIDER and RECIPIENT acknowledge that MATERIAL is being
            provided to recipient in connection with an option agreement between
            Indiana University Foundation (IUF) and RECIPIENT effective date
            June    , 1995 (hereinafter referred to as "Option Agreement") or a
            license agreement between IUF and RECIPIENT entered into pursuant to
            the Option Agreement (hereinafter referred to as "License
            Agreement"). It is understood and agreed that the provisions of this
            agreement shall be subject to the Option Agreement or the License
            Agreement, as applicable, and in the event of any conflict or
            inconsistency between the terms of this Agreement and the

                                                                              29
<PAGE>

AGREED:

PROVIDER: Organization providing the ORIGINAL MATERIAL:

Organization:
             -------------------------------------------------------------------

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

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

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

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

Authorized Official:

Name:
     ---------------------------------------------------------------------------
Title:
      --------------------------------------------------------------------------
Signature:                                             Date:
          ---------------------------------------------     --------------------

Provider's Scientist:

Name:
     ---------------------------------------------------------------------------
Title:
      --------------------------------------------------------------------------
Signature:                                             Date:
          ---------------------------------------------     --------------------

RECIPIENT: Organization receiving the ORIGINAL MATERIAL:

Organization:
             -------------------------------------------------------------------

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

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

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

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

Authorized Official:

Name:
     ---------------------------------------------------------------------------
Title:
      --------------------------------------------------------------------------
Signature:                                             Date:
          ---------------------------------------------     --------------------

Recipient's Scientist:

Name:
     ---------------------------------------------------------------------------
Title:
      --------------------------------------------------------------------------
Signature:                                             Date:
          ---------------------------------------------     --------------------

                                                                              30
<PAGE>

                                    Amendment

This Amendment ("Amendment"), effective as of the date last written below,
amends the license agreement between Indiana University Foundation, now assigned
to Indiana University's Advanced Research and Technology Institute, Inc.
(hereinafter referred to as "LICENSOR"), and Praecis Pharmaceuticals, Inc.
(hereinafter referred to as "LICENSEE") dated October 17, 1996 ("Agreement").

Provisions Replaced. The following provisions replace the corresponding
provisions of the Agreement in their entirety.

            "1.11 'Net Sales' shall mean the amount calculated by subtracting
            from Adjusted Gross Sales a lump sum deduction of *** (***%) percent
            of Adjusted Gross Sales for those sales related deductions which are
            not accounted for on a product-by-product basis."

            "Adjusted Gross Sales" shall mean the gross sales amount invoiced by
            LICENSEE, its Affiliates, or sublicensees for the Licensed Products
            to Third Party purchasers less, to the extent such amounts are
            included in the amount of gross sales invoiced, deductions of
            returns (including withdrawals and recalls), rebates (price
            reductions, including Medicaid or performance based and similar
            types of rebates e.g. chargebacks or retroactive price deductions),
            volume (quantity) discounts, discounts granted at the time of
            invoicing, sales taxes and other taxes directly linked to the gross
            sales amount as computed on a product-by-product basis in
            LICENSEE's, its Affiliate's or sublicensee's sales statistics for
            the countries concerned.

                                   "ARTICLE IV
                             Payments and Royalties

      4.01 Initial Fee. In exchange for the exclusive license granted under this
agreement LICENSEE agrees to pay to LICENSOR an initial fee of *** U.S. dollars
($***) upon execution of this Agreement.

                                                                              31
<PAGE>

      4.02. Milestone Payment. LICENSEE shall pay Milestone Payments as follows:

            (a)   two hundred and fifty thousand dollars ($250,000) within
                  thirty (30) days of the execution of this Amendment;
            (b)   two hundred and fifty thousand dollars ($250,000) upon ***;
            (c)   ***;
            (d)   ***;
            (e)   ***;
            (f)   ***; and
            (g)   ***.

      4.03 Royalty. LICENSEE shall pay to LICENSOR the following royalties:

            (a)   for the first *** dollars ($***) in Net Sales per year:
                  (i)   *** (***%) of Net Sales where Net Sales are not sold in
                        combination with depot formulation; and
                  (ii)  *** (***%) of Net Sales where Net Sales are sold in
                        combination with depot formulation; and
            (b)   for Net Sales above *** dollars ($***) per year:
                  (i)   *** (***%) of Net Sales where Net Sales where Net Sales
                        are not sold in combination with depot formulation; and
                  (ii)  *** (***%) of Net Sales where Net Sales are sold in
                        combination with depot formulation.

                                                                              32
<PAGE>

      4.04 Accrual of Royalties

            Royalties shall accrue when Licensed Products are sold or otherwise
            transferred by LICENSEE to a Third Party, and Licensed Products
            shall be considered when LICENSEE invoice is issued. LICENSEE shall
            make payments to LICENSOR in accordance with the requirements of
            Article VIII.

      10.5

      In any event, for so long as the license granted hereunder remains
      exclusive. LICENSEE or its Affiliates or its sublicensee shall have ninety
      (90) days after the notice of the alleged infringement specified in
      paragraph 10.04 above to initiate prosecution at its own expense of the
      alleged infringement of the Patent Rights. In such case, LICENSEE shall,
      before initiation of such prosecution by LICENSEE or its Affiliates or its
      sublicensee, provide prior written notice to LICENSOR. At LICENSEE's
      request, LICENSOR shall immediately (1) become party to the suit and
      LICENSEE or its Affiliate or its sublicensee may use the name of LICENSOR
      as a party plaintiff, or (2) at LICENSOR's option, assign the Patent Right
      to LICENSEE.

      If, after ninety (90) days after the notice of alleged infringement
      specified in paragraph 10.04 above, LICENSEE or its Affiliate or its
      sublicensee shall not have initiated prosecution at its own expense of the
      alleged infringement of the Patent Rights, then LICENSOR shall have the
      right, but shall not be obligated, to prosecute at its own expense the
      alleged infringement of the Patent Rights. In such case, LICENSOR shall,
      before the filing of such suit by LICENSOR, provide prior written notice
      to LICENSEE. At LICENSOR's request, (1) LICENSEE shall immediately become
      a party to the suit and/or cause its Affiliate or sublicensee to become a
      party to the suit, and (2) LICENSOR may use the name of LICENSEE as a
      party plaintiff and/or LICENSEE shall cause its Affiliate or its
      sublicensee to allow LICENSOR to use the name of its Affiliate or
      sublicensee as a party plaintiff.

      Without LICENSEE's prior written consent, LICENSOR will not consent to any
      settlement, consent judgement or other voluntary disposition of such suit
      if the same involves any liability of, or admission of culpability of
      LICENSEE or its Affiliate or its sublicensee.

      Without LICENSOR'S prior written consent, LICENSEE will not consent to any
      settlement, consent judgment or other voluntary disposition of such suit
      if the same involves any liability of, or admission of culpability of
      LICENSOR or its Affiliate or its sublicensee.

                                                                              33
<PAGE>

      Provision Added. The following provision added to the Agreement.

            "10.8 Notwithstanding anything to the contrary, should a party or
            its Affiliate or sublicensee receive a certification pursuant to the
            Drug Price Competition and Patent Restoration Act of 1984 (Public
            Law 98-417) as amended, or its equivalent in a country other than
            the United States of America, with respect to a Patent Right, then
            (1) such party shall immediately provide the other party with a copy
            of such certification and the date on which such party, its
            Affiliate or sublicensee received such certification ("Certification
            Date"), and (2) LICENSEE, or its Affiliate or its sublicensee, will
            have the first right to immediately bring a suit for infringement of
            the Patent Right, at its expense. In such case, LICENSEE shall,
            before the filing of such suit by LICENSEE or its Affiliate or its
            sublicensee, provide prior written notice to LICENSOR. At LICENSEE's
            request, LICENSOR shall immediately (1) become party to the suit and
            LICENSEE, or its Affiliate or sublicensee may use the name of
            LICENSOR as a party plaintiff, or, (2) at LICENSOR's option, assign
            the Patent Right to LICENSEE.

      Should a period of thirty (30) days after the Certification Date pass
      without LICENSEE or its Affiliate or sublicensee initiating suite, then
      LICENSOR shall be free to immediately bring suit for patent infringement
      in its name, at its expense. In such case, LICENSOR shall, before the
      filing of such suit by LICENSOR, provide prior written notice to LICENSEE.
      At LICENSOR's request, (1) LICENSEE shall immediately become a party to
      the suit and/or cause its Affiliate or sublicensee to become a party to
      the suit, and (2) LICENSOR may use the name of LICENSEE as a party
      plaintiff and/or LICENSEE shall cause its sublicensee to allow LICENSOR to
      use the name of its Affiliate or sublicensee as a party plaintiff."

      All other terms and conditions shall remain in full force and effect.

            IN WITNESS WHEREOF, the parties hereto have hereunto set their hands
      and seals and duly executed this Amendment as of the day and year set
      forth below.

Advanced Research and Technology Institute, Inc.   Praecis Pharmaceuticals, Inc.

BY: /s/ Douglas Wilson                             By: /s/ Marc A. Silver
    -------------------------                          -------------------------
NAME:  Douglas Wilson                              NAME:  Marc A. Silver
TITLE: President                                   TITLE: Vice President
DATE:                                              DATE:  June 3, 1998

                                                                              34<PAGE>

                                                                   EXHIBIT 10.11

              CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN
               PORTIONS OF THIS DOCUMENT. SUCH PORTIONS HAVE BEEN
            REDACTED AND MARKED WITH ASTERISKS (**). THE NON-REDACTED
                  VERSION OF THIS DOCUMENT HAS BEEN SENT TO THE
                 SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
                   AN APPLICATION FOR CONFIDENTIAL TREATMENT.

                                LICENSE AGREEMENT

                                     Between

                   PHARMACEUTICAL APPLICATIONS ASSOCIATES LLC
                         C. DONALD WILLIAMS, M.D.C.G.P.
                              ROBERT MURDOCK, R.Ph.

                                       and

                      PRAECIS PHARMACEUTICALS INCORPORATED

                           Dated as of: April 15, 1999
<PAGE>

                                TABLE OF CONTENTS

WITNESSETH.................................................................    1

DEFINITIONS................................................................    2

GRANT OF LICENSE...........................................................    7

DEVELOPMENT AND COMMERCIALIZATION..........................................   10

CONSIDERATION..............................................................   12

PATENT PROSECUTION.........................................................   17

THIRD-PARTY INFRINGEMENT...................................................   19

PRODUCT LIABILITY..........................................................   21

REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION............................   21

ASSIGNMENT.................................................................   25

TERM AND TERMINATION.......................................................   26

INFORMATION................................................................   29

PUBLICATIONS...............................................................   32

NOTICES AND OTHER COMMUNICATIONS...........................................   33

DISPUTE RESOLUTION.........................................................   34

MISCELLANEOUS PROVISIONS...................................................   36

EXHIBIT A (U.S. Patent Application No. 3742-901-2-IPROV
and related filings).......................................................  A-1

EXHIBIT B ( List of Individuals and Entities)..............................  B-1

                                        i
<PAGE>

                                LICENSE AGREEMENT

            This Agreement is made and entered into as of the 15th day of April,
1999, (the "Effective Date") by and between Pharmaceutical Applications
Associates LLC, a limited liability company organized and existing under the
laws of the State of [ ] and having its principal office at 402 East Yakima
Avenue, Suite 330, Yakima, Washington 98901-2760 (hereinafter referred to as
"PAA"), C. Donald Williams, M.D.C.G.P. and Robert Murdock, R.Ph., each of whom
is a member of PAA (collectively, the "PAA Principals"), and PRAECIS
PHARMACEUTICALS INCORPORATED, a corporation organized and existing under the
laws of the State of Delaware and having its principal office at One Hampshire
Street, 5th Floor, Cambridge, Massachusetts 02139-1532 (hereinafter referred to
as "Licensee").

                                   WITNESSETH

            WHEREAS, PAA is the sole owner of the Technology (as later defined
herein), and has the right to grant the licenses granted herein with respect to
the Technology;

            WHEREAS, Licensee wishes to acquire certain exclusive license rights
with respect to the Technology for the purpose of developing and commercially
exploiting the Technology, upon the terms and conditions hereinafter set forth;

            WHEREAS, PAA is the sole owner of the Patent Application (as later
defined herein), and has the right to grant the licenses granted herein with
respect to the

<PAGE>

Patent Rights, the Licensed Products and the Licensed Processes (each as later
defined herein), upon the terms and conditions hereinafter set forth; and

            WHEREAS, Licensee desires to obtain a license to the Patent Rights,
the Licensed Products and the Licensed Processes, upon the terms and conditions
hereinafter set forth.

            NOW, THEREFORE, in consideration of the premises and the
representations, warranties and agreements contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

                                 1 - DEFINITIONS

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

            1.1 An "Affiliate" of a party shall mean a company or other entity
which controls, is controlled by, or is under common control with such party. A
corporation or other entity shall be regarded as in control of another
corporation or entity if it owns or directly or indirectly controls more than
fifty percent (50%) of the voting stock or other ownership interest of the other
corporation or entity, or if it possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies of the corporation
or other entity or the power to elect or appoint fifty percent (50%) or more of
the members of the governing body of the corporation or other entity.

                                       2
<PAGE>

            1.2 "Developments" shall mean any findings, discoveries, inventions,
additions, modifications, formulations or changes made by or on behalf of either
party during the term of this Agreement which relate to the Technology, any
Licensed Product or any Licensed Process including, without limitation, new or
improved formulations or methods of administration, improvements in clinical
efficacy, improved side effect profiles, new medical indications for any
Licensed Product and improvements in the manufacturing process for any Licensed
Product; provided that Developments shall not include any of the foregoing as to
which Licensee is the owner pursuant to Section 3.3 hereof.

            1.3 "Net Sales" shall mean gross invoiced price for Licensed
Products sold by Licensee or its Affiliates to a Third Party, after deduction of
(i) all customary trade and quantity discounts actually allowed, (ii) allowance
for credits and returns, and (iii) sales, purchase or turnover taxes (if any).
In the event a Licensed Product is sold in combination with one or more
components which are not Licensed Products, Net Sales, for purposes of
determining royalties on such combination sale, will be calculated by
multiplying Net Sales of the combination by the fraction A/(A+B), in which A is
the gross invoiced price of the Licensed Product if sold separately and B is the
invoiced price of the other components in the combination if sold separately. If
the Licensed Products and the other components in the combination are not sold
separately, then Net Sales will be calculated based upon the gross invoiced
price of the combination less (x) the foregoing discounts, allowances and
taxes, if any, and (y) the direct cost of manufacturing the

                                       3
<PAGE>

components that are not Licensed Products. For purposes of this definition as
used throughout this Agreement, and as used in this Section 1.3, any Sublicensee
which sells Licensed Products shall be deemed an Affiliate of Licensee and not a
Third Party. For the avoidance of doubt, subject to the immediately preceding
sentence, Net Sales includes sales of Licensed Products by any Sublicensee to a
Third Party. Unless otherwise required by United Stated generally accepted
accounting principles, "Net Sales" of a Licensed Product shall be recognized on
the earlier of the date of issuance of an invoice in respect of such sale, or
the date of shipment of such Licensed Product, to a Third Party, in either case
by Licensee, its Affiliates or any Sublicensee.

            1.4 "Technology" shall mean and collectively include (i) any and all
inventions, formulas, methods, know-how, plans, processes and products, whether
patentable or not or confidential or not, developed, conceived, discovered or
reduced to practice by or on behalf of PAA, any PAA Principal or their
respective Affiliates, on or before the Effective Date, including, without
limitation, any and all of the foregoing relating to the Patent Application, and
(ii) all tangible work in progress and tangible research materials, including,
without limitation, notebooks, samples, experimental and test results, technical
and non-technical data and specifications, characteristics and designs, whether
patentable or not or confidential or not, relating to the foregoing.

            1.5 "Patent Application" shall mean the United States Patent
Application, together with its related continuations-in-part and counterpart
foreign patent filings, as listed on Exhibit A attached hereto.

                                       4
<PAGE>

            1.6 "Patent Rights" shall mean any and all rights arising from any
and all of the following:

            (a)   United States and foreign patents and/or patent applications
                  derived from or arising out of the Technology, PAA
                  Developments or Work Product (as defined in Section 3.3)
                  including, without limitation, the Patent Application;

            (b)   United States and foreign patents issued from the applications
                  described in (a) above and from divisions, continuations and
                  continuations-in-part of such applications; and

            (c)   any reissues, re-examinations or extensions of the patents and
                  applications described in (a) or (b) above.

            1.7 "Licensed Product" shall mean any product or part thereof in the
Field of Use which (i) is covered in whole or in part by a Valid Claim in the
country in which any such product or part thereof is made, used, sold or
imported; or (ii) embodies, incorporates, is based upon or derived from, or is
manufactured using a Licensed Process.

            1.8 "Licensed Product Launch" in a country shall mean the first
commercial sale (i.e., not for development purposes or in connection with the
obtaining of regulatory approval) of Licensed Product in such a country by
Licensee, its Affiliates, or any Sublicensee to a Third Party subsequent to
regulatory approval of such sale in such country.

            1.9 "Licensed Process" shall mean any method, formula, formulation,
plan or process (including manufacturing process) in the Field of Use (i) which
is covered in whole or in part by a Valid Claim in the country in which such
method, formula,

                                       5
<PAGE>

formulation, plan or process is used or practiced or (ii) which embodies,
incorporates or is based upon or derived from the Technology or the PAA
Developments.

            1.10 "Field of Use" shall mean the management or treatment of any
type of pain or muscular or skeletal discomfort arising from any cause,
including without limitation trauma, diseases such as diabetes, herpes zoster,
arthritis, osteoporosis, cancer, chemotherapy or chemical injury.

            1.11 "Third Party" shall mean any person or entity other than PAA, a
PAA Principal, Licensee and their respective Affiliates, subject, however, to
Section 1.3.

            1.12 "Valid Claim" means a claim within a Patent Right contained in
any (i) unexpired and issued patent that has not been dedicated to the public,
disclaimed, revoked or held invalid by a final unappealable decision or
unappealed decision of a court of competent jurisdiction, or (ii) pending patent
application which has been on file with the applicable patent office for seven
(7) years or less from the date on which the patent application was filed.

            1.13 "IND" shall mean an Investigational New Drug Application or
foreign equivalent.

            1.14 "Sublicensee" shall mean any direct or indirect grantee of any
or all rights granted to Licensee hereunder.

            1.15 "PAA Developments" shall mean any and all Developments created
by or on behalf of PAA.

                                       6
<PAGE>

            1.16 "Licensee Developments" shall mean any and all Developments
created by or on behalf of Licensee.

            1.17 As used herein, unless the context clearly indicates otherwise,
(i) the singular includes the plural and the plural includes the singular; and
(ii) the conjunctive includes the disjunctive and the disjunctive includes the
conjunctive.

                              2 - GRANT OF LICENSE

            2.1 PAA hereby grants to Licensee a worldwide, exclusive (even as
against PAA, subject to Section 2.2) license, with the right to grant
sublicenses, to use the Technology and Developments, to practice under the
Patent Rights, and to make, have made, use, have used, develop, have developed,
offer for sale, sell, have sold, market, have marketed, import and have
imported, Licensed Products, and to use or practice the Licensed Processes, in
each case in the Field of Use. Without limitation of the foregoing, each party
acknowledges and agrees that Licensee shall have the exclusive right for the
duration of the license rights granted pursuant to this Agreement to engage in
development activities with respect to the Technology or any Licensed Product
or Licensed Process, in each case in the Field of Use, and that neither PAA nor
any PAA Principal or their respective Affiliates will engage in any such
development activity, except pursuant to Section 3.3 hereof or a separate
agreement in writing between the parties.

            2.2 PAA and each PAA Principal hereby agrees not to grant any other
license with respect to the Technology, the Patent Rights, the Licensed Products
or the Licensed Processes, except that PAA may grant (i) non-conflicting
licenses (with the

                                       7
<PAGE>

right to grant sublicenses) having terms consistent with this Agreement in the
Technology, Patent Rights and PAA Developments, in each case outside the Field
of Use and (ii) licenses (without the right to grant sublicenses) to each of the
PAA Principals, to use the Technology and PAA Developments and to practice under
the Patent Rights, to use Licensed Products, and to use or practice the Licensed
Processes, in each case in the Field of Use solely for the therapeutic treatment
of individual patients (current or future) in the ordinary course of such PAA
Principal's clinical practice substantially as currently conducted; provided,
however, that (x) Licensee shall have no obligation to provide PAA or any PAA
Principal with any Licensed Products or any documentation or other materials
relating to the Technology, Licensed Products, Licensed Processes or
Developments, except as expressly set forth herein and (y) neither PAA nor any
PAA Principal shall in connection with the exercise of the rights granted under
subsection (ii) represent that it is in any manner affiliated or associated with
Licensee or any Affiliate or Sublicensee and (z) neither PAA nor any PAA
Principal shall in connection with the rights granted under subsection (ii) make
use of any clinical data owned or developed by or on behalf of Licensee or its
Affiliates or Sublicensees. Any and all licenses (or sublicenses) granted
pursuant to this Section 2.2 shall be in writing and shall be submitted for and
subject to Licensee's prior review and written approval, which approval shall
not be withheld unless Licensee determines, in its reasonable judgment, that the
terms of such license (or sublicense) conflict with the terms of this Agreement.
The terms of any such license granted pursuant to clause (i) of this Section 2.2
shall require (and PAA or

                                       8
<PAGE>

the licensing PAA Principal, as applicable, shall enforce such requirement) that
any sublicense, if permitted by such license, shall be subject to prior review
by and written approval of Licensee as provided in this Section 2.2. Licensee
agrees to enter into a reasonable written confidentiality agreement prior to the
disclosure of a license or sublicense for review pursuant to this Section 2.2.

            2.3 PAA and each PAA Principal acknowledges and agrees that it has,
and will have, no rights of any kind with respect to any intellectual property
or work product of any kind owned or created by Licensee in connection with the
development of Licensed Products or otherwise, including without limitation any
Licensee Developments, except as separately agreed in writing by the parties.

            2.4 Each party shall retain all right, title and interest in, and no
license is granted hereunder with respect to, any trademarks, trade names, logos
or similar identifying marks used by it in connection with any Licensed
Products or Licensed Processes, except that Licensee may state that it is
licensed by PAA to the extent provided herein.

            2.5 Any and all sublicenses (including sublicenses granted by any
Affiliate of Licensee or any Sublicensee) granted pursuant to Section 2.1 hereof
shall be in writing and shall be consistent with the terms of this Agreement.
Copies of any and all such sublicenses shall be made available for review by
PAA, subject to PAA's entering into a confidentiality agreement on terms
reasonably satisfactory to Licensee (or the relevant Affiliate of Licensee or
Sublicensee) prior to any such review.

                      3 - DEVELOPMENT AND COMMERCIALIZATION

                                       9
<PAGE>

            3.1 Licensee, at its own cost and expense, shall use commercially
reasonable efforts to bring one or more Licensed Products to market through a
diligent clinical development and commercialization program; provided that
Licensee shall be deemed to have satisfied its obligations under this Section
3.1 if its uses efforts consistent with those which it would use for a product
owned by it which evidences substantially similar clinical and commercial
promise, taking into account Licensee's capital resources and other development
and commercialization commitments and programs.

            3.2 Licensee shall have the sole right, in its own name and at its
own expense, to make any and all regulatory filings and submissions relating to
the development and commercialization of Licensed Products or Licensed
Processes in the Field of Use, including without limitation any IND filings.

            3.3 During the term of this Agreement, PAA, through one or more PAA
Principals, shall provide reasonable consulting services as requested by
Licensee with respect to the Technology and the development of Licensed Products
and Licensed Processes. Such consulting services shall include, without
limitation, disclosing to Licensee all information known by or otherwise in the
possession of PAA or any PAA Principal with respect to any and all aspects of
the Technology, Developments, Licensed Products or Licensed Processes; provided,
however, that no PAA Principal shall be obligated to provide such consulting
services for more than two days in any one month. Such consulting services shall
be compensated at the rate of $** per day or $** per half day, plus
reimbursement for reasonable, documented travel (coach class) and lodging

                                       10
<PAGE>

expenses. The parties agree that Licensee shall own all right, title and
interest in and to any and all inventions, discoveries, intellectual property
and work product resulting from the performance of such consulting services
(including any of the foregoing conceived or discovered by PAA, any PAA
Principal or their respective Affiliates, but excluding intellectual property
claimed in the Patent Application as in effect on the Effective Date or
otherwise disclosed in writing to Licensee by PAA on or prior to the Effective
Date) (collectively, the "Work Product"). For the avoidance of doubt, to the
extent that any Patent Rights arise from the Work Product, Licensee shall pay
royalties as set forth in Article 4 based upon Net Sales of Licensed Products
covered by a Valid Claim that is within such Patent Rights. Licensee shall
grant, and hereby does grant, to PAA a perpetual, non-exclusive, worldwide,
royalty-free, unlimited license, including the right to grant sublicenses, in
Licensee's rights in the Work Product outside the Field of Use. PAA and each PAA
Principal shall execute and deliver to Licensee such instruments of assignment,
releases or other documents as Licensee may request to effect or confirm
Licensee's ownership of the Work Product.

                                4 - CONSIDERATION

            4.1 In order to induce PAA to enter into this Agreement, and in
consideration of the rights and license granted hereunder, subject to the
further provisions of this Article 4, Licensee shall pay or cause to be paid
royalties to PAA during the term of this Agreement as follows:

            (a)   a license issuance fee of ** ($**), which shall be deemed
                  earned and due immediately upon the Effective Date;

                                       11
<PAGE>

            (b)   **% of annual Net Sales up to $**;

            (c)   **% of annual Net Sales between $** and $**;

            (d)   **% of annual Net Sales in excess of $**.

            4.2 The royalty percentages set forth in Section 4.1 shall each be
reduced by ** (so that **% shall instead be **%, **% shall instead be **% and
**% shall instead be **%) at any time and in any country in which Licensee's,
its Affiliates, or any Sublicensees' making, having made, using, having used,
offering for sale, selling or having sold, marketing or having marketed or
importing or having imported a Licensed Product in such country without a
license or sublicense, as applicable, would not infringe a Valid Claim in that
country or a Valid Claim in the country where such Licensed Product is made or a
Valid Claim in the country where such Licensed Product is sold or used. In
addition, Licensee shall be entitled to reduce any royalties owed by it pursuant
to Section 4.1 by an amount equal to the sum of (i) any royalty or other
payments required to be paid by Licensee to any Third Party in order to use,
develop, manufacture or sell any Licensed Product or use or practice the
Technology or any Licensed Process as contemplated hereunder, whether in
connection with settlement of a third-party claim of infringement or otherwise,
and (ii) any and all damages, costs and expenses (including, without limitation,
reasonable attorneys' fees) incurred by Licensee in connection with the defense
of any claim that the intellectual property licensed by it from PAA hereunder
infringes any Third Party's rights, to the extent that such costs are not paid
to Licensee pursuant to the indemnification obligation set forth in Section 8.3
below. Notwithstand-

                                       12
<PAGE>

ing the foregoing, Licensee shall not be entitled to reduce royalties owed
pursuant to Section 4.1 as provided for in this Section 4.2 by more than **
percent (**%) in any quarter, with any amounts by which Licensee would have been
entitled to reduce royalties owed hereunder but for the reaching of such limit
("Unutilized Amounts") being carried forward to future reporting periods. Within
thirty (30) days after the expiration of Licensee's royalty obligation with
respect to a particular country pursuant to Section 4.4, PAA shall reimburse
Licensee in an amount equal to the cumulative Unutilized Amounts for such
country.

            4.3 (i) Royalty payments hereunder are due and payable and shall be
made quarterly, in arrears, within sixty (60) days after the end of each
calendar quarter in which the royalty accrues. All royalty payments shall be in
United States funds. The exchange rate applied, if applicable, shall be the
exchange rate published in the Wall Street Journal on the last business day of
the calendar quarter in which the royalty accrued. Royalty payments shall be
made to PAA by wire transfer to a bank account designated in writing, and shall
be accompanied by mailing to PAA a report, certified to be true and correct by
an officer of Licensee, setting forth, in reasonable detail, the basis on which
such royalty payment was calculated.

      (ii) Royalties in respect of any Net Sales shall accrue at the time of
recognition of such Net Sales as provided in Section 1.3. In no event shall a
royalty be paid on an individual unit of Licensed Product more than once.

                                       13
<PAGE>

      (iii) Licensee shall be responsible for payment to PAA of royalties
accruing on Net Sales by an Affiliate or Sublicensee regardless of whether such
Affiliate or Sublicensee meets its royalty and other obligations, if any, to
Licensee.

      (iv) Licensee agrees to pay interest to PAA on the amount of any
underpayment of royalties from the date payment was due until the date payment
is made. The applicable interest rate will be the average prime rate as
published in the Wall Street Journal plus three percent (3%) during such time.

      (v) In the event Licensee asserts any monetary claim against PAA or any
PAA Principal, PAA hereby agrees and acknowledges that Licensee shall have the
right to set off against any royalty payment when due any amount claimed by
Licensee against PAA or such PAA Principal.

            4.4 The duration of payment of royalties under this Article 4 in any
country shall continue for the longer of (i) ten (10) years from Licensed
Product Launch in that country or (ii) the date of the last to expire Valid
Claim which, except for the license granted hereby, would be infringed by
Licensee making, having made, using, having used, offering for sale or selling
or having offered for sale or sold, marketing or having marketed, or importing
or having imported, Licensed Product in that country. In the case of trade
secrets deemed to be Valid Claims pursuant to Section 5.2, the duration of
payment of royalties shall be as set forth in clause (i) of this Section 4.4.
Licensee's license granted hereunder shall continue in full force and effect and
shall be fully paid up

                                       14
<PAGE>

and royalty free in any country where royalty obligations as provided for in
this Section 4.4 have expired.

            4.5 (i) Licensee shall at all times during the term of this
Agreement keep accurate books of account, and maintain supporting documents,
which show the royalties to which PAA is entitled under this Agreement
(including royalties based upon Net Sales by Affiliates of Licensee and by
Sublicensees). Said books of account and supporting documentation, which shall
be retained by Licensee for at least two (2) years after any termination of this
Agreement, shall be open for audit and inspection during the term of this
Agreement and for a period of two (2) years after any termination of this
Agreement upon reasonable prior written notice by an independent certified
public accountant chosen by PAA and reasonably acceptable to Licensee, at PAA's
expense (except as hereinafter provided with respect to the expense of an audit
and inspection). Such certified public accountant shall have the right to audit
and inspect the books of account and supporting documentation of Licensee in
order to ensure compliance with Licensee's royalty obligations hereunder and
shall, upon execution of a confidentiality agreement on terms reasonably
acceptable to Licensee, have the right to make copies and extracts of said books
of account and supporting documentation and to prepare a written report
(including any such copies or extracts) detailing the results of the audit and
inspection and deliver such written report to PAA and PAA's financial advisors
and attorneys. Audits and inspections shall not take place more than once in
each calendar year and shall be limited

                                       15
<PAGE>

to royalty obligations accruing not more than three (3) years prior to the date
of the audit and inspection.

      (ii) In the event that an audit and inspection reveals that Licensee has
underpaid any royalty due PAA under this Agreement, PAA shall provide Licensee
with written notice of such underpayment and, in addition to any other available
remedy PAA may have, Licensee shall forthwith remit such underpayment to PAA in
the manner prescribed in subsection (i) of Section 4.3 with interest calculated
in accordance with subsection (iv) of Section 4.3. In the event that an audit
and inspection reveal that Licensee has under paid royalties due under this
Agreement by an amount exceeding ten percent (10%) in any twelve (12) month
period, PAA shall provide Licensee with written notice thereof, and in addition
to Licensee's obligation to remit payment in accordance with the preceding
clause (iv) and in addition to any other available remedy PAA may have, the cost
of such audit and inspection shall be payable by Licensee.

            4.6 In the event that Licensee elects, in its sole discretion, to
file an IND in its own name with respect to a Licensed Product, Licensee shall
pay to PAA the sum of ** dollars ($**) within sixty (60) days of such filing.

                             5 - PATENT PROSECUTION

            5.1 During the term of this Agreement, Licensee shall have the sole
initial right (i) to file such United States and/or foreign patent applications
covering patentable inventions included within the Technology or any
Developments created by or on behalf of PAA as Licensee shall, in its sole
discretion, deem advisable, (ii) to prosecute and

                                       16
<PAGE>

defend all patent applications referred to in clause (i), and (iii) to maintain
in force any patents resulting from such applications. Licensee shall bear all
costs associated with the foregoing filing, prosecution, defense and
maintenance incurred after the Effective Date. Without limitation of the
foregoing, Licensee shall prosecute with reasonable diligence and at its sole
expense the Patent Application, except that Licensee shall not be obligated to
prosecute any divisional resulting from the Patent Application if such
divisional does not include at least one claim with substantial application in
the Field of Use, as determined by Licensee in its reasonable discretion.

            5.2 If Licensee determines not to file any such patent application
after request by PAA, or not to prosecute any such patent application or to
maintain any such patents, Licensee shall timely provide PAA with written notice
of such determination, in which event PAA shall have the right to file or
prosecute such application or maintain such patents entirely at its own expense,
unless Licensee has a reasonable basis for such determination (including,
without limitation, Licensee's preference for keeping the relevant Technology or
Development a trade secret). Licensee's written notice of such determination
shall state the reasonable basis. If the reasonable basis is Licensee's
preference for keeping the relevant Technology or Development a trade secret,
the trade secret shall be identified in the written notice and such Trade Secret
shall become a Valid Claim for purposes of this Agreement. It shall be
unreasonable for Licensee to prefer to keep any Technology or Development a
trade secret if such Technology or Development is not material to the Field of
Use.

                                       17
<PAGE>

            5.3 Each party shall (i) timely advise the other in writing of its
intentions with respect to the filing, prosecution and maintenance of patent
applications and patents as set forth above in order to allow the other the
opportunity to comment thereon, which comments the party shall consider in good
faith, and (ii) at its own expense, provide the other with reasonable assistance
to facilitate the filing, prosecution and maintenance of patent applications and
patents as set forth above, and shall execute all documents which the other
party reasonably deems necessary or desirable therefor. Without limitation of
the foregoing clause (ii), PAA shall, within seven (7) days of the Effective
Date, cause to be delivered to Licensee all prosecution file history and other
documents relating to the Patent Application.

                          6 - THIRD-PARTY INFRINGEMENT

            6.1 Each party shall inform the other promptly in writing if it
becomes aware of any (i) applications for a patent or issued patent that may
conflict with either party's intellectual property rights hereunder or (ii) acts
of infringement or unfair competition by any third party involving such
intellectual property rights, and shall provide the other with any evidence
thereof in its possession or control.

            6.2 During the term of this Agreement, Licensee shall have the
right, but not the obligation, to prosecute and to settle any and all
infringement actions involving the Technology, Developments and/or the Patent
Rights in the Field of Use, provided that if the settlement, consent judgment or
other voluntary final disposition of any such action would affect the rights of
PAA outside the Field of Use, PAA's consent to such settlement

                                       18
<PAGE>

shall be required, such consent not to be unreasonably withheld. In furtherance
of the foregoing right, PAA hereby agrees that PAA will, at Licensee's request
and expense, join as a party plaintiff in any such infringement action. Licensee
shall keep PAA reasonably informed of the litigation strategy and of the status
of the litigation in any such infringement action and consider in good faith
PAA's comments. The entire cost of any such infringement action prosecuted by
Licensee shall be borne by Licensee, and Licensee shall keep any damages and
costs recovered in connection therewith.

            6.3 If within six (6) months after having been notified of any
alleged infringement, Licensee shall have been unsuccessful in persuading the
alleged infringer to desist and shall not have brought and shall not be
diligently prosecuting an infringement action, or if Licensee shall notify PAA
at any time prior thereto of its intention not to bring suit against any such
alleged infringer in the Field of Use, then, and in those events only, PAA shall
have the right, but not the obligation, to prosecute at its own cost and expense
any infringement action involving the Patent Rights, and PAA may, for such
purposes, join Licensee as a plaintiff as necessary to maintain standing. No
settlement, consent judgment or other voluntary final disposition of any such
action may be entered into without the consent of Licensee, which consent shall
not be unreasonably withheld. PAA shall keep any damages and costs recovered in
connection with its prosecution of an infringement action pursuant to this
Section 6.3.

            6.4 In any action brought by either party in accordance with the
foregoing, the other party shall, at the request and expense of the party
bringing such suit,

                                       19
<PAGE>

cooperate in all respects, including, to the extent possible, by having its
employees testify when requested and making available relevant records, papers,
information, samples, specimens, and the like.

                              7 - PRODUCT LIABILITY

      Licensee shall at all times during the term of this Agreement and
thereafter indemnify, defend and hold harmless PAA, its members, stockholders,
directors, officers, employees and Affiliates, and each PAA Principal
(collectively, "Indemnified Persons") against all claims, proceedings, demands
and liabilities of any kind whatsoever, including legal expenses and reasonable
attorneys' fees, arising out of (i) the death of or injury to any person or
persons or out of any damage to property resulting from Licensee's, or any
Affiliate's or Sublicensee's use of the Technology or Developments, practicing
under the Patent Rights, making or having made, using or having used, offering
for sale or selling or having sold, marketing or having marketed or importing or
having imported, any product, or using or practicing any process, except where
attributable to the gross negligence or willful misconduct of any Indemnified
Person.

               8 - REPRESENTATIONS AND WARRANTIES; INDEMNIFICATION

            8.1 PAA and each of the PAA Principals, jointly and severally,
represent and warrant to Licensee as follows:

                  (i) Except to the extent licensed to Licensee hereby, as of
      the Effective Date PAA owns the entire right, title and interest in and to
      all intellectual property licensed to Licensee hereunder (the entire
      right, title

                                       20
<PAGE>

      and interest of each of the PAA Principals therein having been duly,
      validly and effectively assigned to PAA pursuant to instruments of
      assignment, copies of which have previously been delivered to Licensee),
      and PAA has all required right, power and authority to grant the licenses
      granted hereunder.

                  (ii) To the best knowledge of PAA and each of the PAA
      Principals, the Technology, Patent Rights and any PAA Developments in
      existence as of the Effective Date do not and will not infringe any third-
      party intellectual property rights when used in accordance with this
      Agreement.

                  (iii) Except as set forth on Exhibit B hereto, there are no
      outstanding options, licenses or agreements of any kind, as of the
      Effective Date, between PAA, any PAA Principal or any Affiliate thereof
      and any Third Party relating to the Technology, the Patent Rights or any
      Licensed Product or Licensed Process.

                  (vi) To the best knowledge of PAA and each of the PAA
      Principals, as of the Effective Date, there is and has been no
      unauthorized use, infringement or misappropriation of any of PAA's
      intellectual property rights in the Technology or the Patent Rights by
      any person or entity.

                  (v) To the best knowledge of PAA and each of the PAA
      Principals, as of the Effective Date, (A) all data describing clinical
      obser-

                                       21
<PAGE>

      vations relating to the Technology or any Licensed Product or Licensed
      Process prepared by or on behalf of PAA or any PAA Principal and
      previously delivered to Licensee are true and correct in all material
      respects, and (B) Licensee has been provided with all material information
      in the possession or control of PAA, any PAA Principal or any Affiliate
      thereof which is reasonably believed by them to be material to Licensee
      entering into this Agreement, and such information does not knowingly
      contain any untrue statement of material fact or knowingly omit to state
      any material fact.

            8.2 Each party represents and warrants to the other parties that (i)
it has the full right, power and authority to enter into this Agreement and to
perform its obligations hereunder, (ii) the execution of this Agreement and the
performance of its obligations hereunder does not and will not conflict with or
result in a breach (including with the passage of time) of any other agreement
to which it is a party, and (iii) this Agreement has been duly executed and
delivered by such party and constitutes the valid and binding agreement of such
party, enforceable against such party in accordance with its terms.

            8.3 PAA and the PAA Principals, jointly and severally, on the one
hand, and Licensee, on the other, shall indemnify and hold harmless the other
against any loss, damages or expense (including, without limitation, reasonable
attorneys' fees) resulting

                                       22
<PAGE>

from any breach of this agreement by such party, including without limitation
any of the representations and warranties of such party contained herein.

            8.4 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, PAA,
ITS MEMBERS, DIRECTORS, OFFICERS, EMPLOYEES, AND AFFILIATES AND EACH PAA
PRINCIPAL MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANT
ABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS CLAIMS,
ISSUED OR PENDING, AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT
DISCOVERABLE OR THAT THE SUBJECT MATTER LICENSED HEREIN CAN BE SUCCESSFULLY
COMMERCIALIZED.

            8.5 IN NO EVENT SHALL A PARTY BE LIABLE HEREUNDER FOR INCIDENTAL OR
CONSEQUENTIAL OR PUNITIVE DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR
INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER THE PARTY SHALL BE
ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE
POSSIBILITY OF SUCH DAMAGES.

            8.6 PAA and the PAA Principals, jointly and severally, represent and
warrant to, and covenant and agree with, Licensee, that (i) PAA has in place
with each PAA Principal, and will require as a condition of employment of each
PAA employee, agreements assigning to PAA all rights to inventions and other
intellectual property which relate to the Technology and any Developments,
Licensed Product or Licensed Process as are created or discovered by each such
PAA Principal or PAA employee, in the case of each PAA Principal, while a member
of PAA, and, in the case of each PAA employee, while employed by PAA, and (ii)
neither PAA nor any PAA Principal has entered, or will enter, into any agreement
inconsistent with the foregoing.

                                       23
<PAGE>

                                 9 - ASSIGNMENT

            Neither party may assign this Agreement or its rights and
obligations hereunder without the prior, written consent of the other party,
such consent not to be unreasonably withheld; provided, however, that (i) the
foregoing shall not limit or impair in any manner Licensee's right to grant
sublicenses as provided herein, (ii) Licensee may assign this Agreement or its
rights hereunder to an entity which acquires, by sublicense or otherwise, rights
to Licensed Products (provided that in such event Licensee shall continue to be
obligated to perform Licensee's obligations hereunder), and (iii) Licensee or
PAA may assign this Agreement and its rights hereunder to an entity which
acquires or acquires control of its entire business or that part of its business
to which this Agreement relates, whether pursuant to a merger, consolidation,
stock purchase, recapitalization, asset sale or otherwise (provided that in any
such event, Licensee or the successor entity or PAA or the successor entity in
such transaction shall continue to be liable to perform Licensee's or PAA's
obligations hereunder, as the case may be. This Agreement shall inure to the
benefit of and be binding upon the parties and their respective heirs,
executors, administrators, successors and permitted assigns. Notwithstanding any
assignment or anything in the foregoing to the contrary, PAA shall be and remain
solely liable under Section 3.3 hereof.

                                       24
<PAGE>

                            10 - TERM AND TERMINATION

            10.1 The term of this Agreement shall commence on the Effective Date
and, unless sooner terminated as provided in this Article 10, shall expire on a
country-by-country basis on the expiration of Licensee's royalty payment
obligations as provided in Section 4.5.

            10.2 Licensee shall have the right to terminate this Agreement on a
country-by-country basis or in its entirety at any time (for any reason or no
reason) by providing PAA with at least sixty (60) days prior written notice of
termination, such termination to become effective at the expiration of such
sixty (60) day period or such later date as may be specified in such notice.

            10.3 In the event a material breach of this Agreement (including,
without limitation, a material breach of any representation or warranty
contained in Article 8 hereof) by PAA or any PAA Principal on the one hand, or
Licensee on the other, the non-breaching party shall have the right to
terminate this Agreement by providing written notice of such termination to the
breaching party, but only if (i) the non-breaching party shall first have
provided the breaching party with written notice of such breach, specifying the
nature of such breach ("Breach Notice"), (ii) either (A) such breach, by its
nature, cannot be cured within ninety (90) days after receipt of such Breach
Notice or (B) if such breach is curable within such ninety (90) day period, the
breaching party fails to cure such breach within such ninety (90) day period and
(iii) such breach, either alone or in

                                       25
<PAGE>

combination with other uncured breaches as to which Breach Notice has been
given, materially impairs the value of the Agreement as a whole to the
non-breaching party.

            10.4 In the event of termination of this Agreement by Licensee under
Section 10.2 or by PAA under Section 10.3 or 10.8, (i) all licenses granted by
PAA to Licensee hereunder shall terminate, and (ii) at the request of PAA,
Licensee shall assign to PAA all regulatory filings, regulatory approvals and
clinical data owned and controlled by Licensee, and shall deliver to PAA all
documentation in its possession, relating to Licensed Products, Licensed
Processes or any Technology, or, to the extent such assignment is not legally
permissible, Licensee shall grant PAA the right to access, use and cross
reference such filings, approval and data. In the event of termination of this
Agreement by Licensee under Section 10.2, then PAA shall pay Licensee a royalty
upon any sales of Licensed Product which are made by or on behalf of PAA, its
Affiliates or any licensee or sublicensee (or sub-sublicensee) thereof after the
effective date of such termination. The amount of such royalty shall be
consistent with industry standards and shall be determined by mutual agreement
of PAA and Licensee after good faith negotiations; provided, however, that if
PAA and Licensee are unable to reach mutual agreement thereon, the matter shall
be submitted to arbitration generally in accordance with the procedures set
forth in Article 13 of this Agreement, and the arbitrator shall base his/her
decision on the following factors: (i) the value of any assigned filings,
approvals and/or data to the development and commercialization of the Licensed
Product; and (ii) the

                                       26
<PAGE>

relative contributions of the parties to the development and commercialization
of the Licensed Product.

            10.5 In the event of termination of the Agreement by Licensee under
Section 10.3, the rights and licenses granted by PAA to Licensee under this
Agreement shall, at Licensee's option, remain in effect, except that such rights
and licenses shall be on a royalty-free basis.

            10.6 Upon termination of this Agreement for any reason, nothing
herein shall be construed to release either party from performance of any
obligation incurred or liability or payment accrued prior to the effective date
of such termination, and such termination shall be without prejudice to any
remedy that any party may have in addition to those rights as provided under
this Agreement. Articles 7 and 8, this Article 10, Article 11 and Articles 12
through 14 (with respect to such Articles 12 through 14, solely to the extent
applicable to provisions, rights or obligations which survive termination) shall
survive any such termination. Licensee and any permitted Sublicensees may,
however, after the effective date of any such termination, sell any and all
Licensed Products in inventory, and complete and sell any and all Licensed
Products in the process of manufacture, at the effective date of such
termination for a period of one year after the effective date of such
termination, subject to payment of royalties to PAA as herein provided.

            10.7 In the event of termination of this Agreement by Licensee
pursuant to Section 10.3, any and all sublicenses to which a Sublicensee is a
party and which is in

                                       27
<PAGE>

effect as of the effective date of such termination shall continue in full force
and effect, provided that such Sublicensee timely pays all royalties on Net
Sales by such Sublicensee directly to PAA and continues to comply with the other
terms of such sublicense. In the event of termination of the Agreement by either
party for any other reason, any Sublicensee hereunder not then in default shall
have the right to seek a license under reasonable terms and conditions from PAA,
which license PAA agrees to negotiate in good faith.

            10.8 In the event that Licensee does not file an IND within three
(3) years of the Effective Date of this Agreement, PAA shall have the right to
terminate this Agreement upon thirty (30) days written notice to Licensee.

            10.9 In the event that Licensee alleges in a proceeding in a court
or tribunal of competent jurisdiction or in an arbitration that any patent or
patent claim within the Patent Rights is invalid or unenforceable, PAA shall
have the right to terminate this Agreement upon thirty (30) days written notice
to Licensee.

                                11 - INFORMATION

            11.1 As a result of the exercise of the rights and performance of
the obligations under this Agreement, each party (the "disclosing party") may
disclose to the other party (the "receiving party"), or the receiving party may
obtain access to, proprietary and confidential information of the disclosing
party.

            11.2 Information shall be considered proprietary and confidential
only if (i) it is in written or other tangible form and is marked as being the
confidential informa-

                                       28
<PAGE>

tion of the disclosing party or (ii) if disclosed verbally, it is reduced to
written form, marked as the confidential information of the disclosing party,
and transmitted to the receiving party within one week of the verbal disclosure
(individually and collectively, "Information").

            11.3 Each party acknowledges the confidential character of the
Information and agrees that the Information is the valuable property of the
disclosing party. The receiving party agrees not to use any Information for any
purpose or disclose Information to any Third Party (other than a party's
officers, directors, members, employees, stock holders, attorneys, financial
advisors and other representatives), except as permitted by or in the
performance of this Agreement.

            11.4 PAA further agrees to take reasonable measures which are
designed to ensure the continued secrecy of Information disclosed by it to
Licensee hereunder, subject to the exceptions contained in clauses (i) and
(ii)(A) of Section 11.5; provided that for purposes of this Section 11.4, (1)
the exception contained in clause (i)(C) of Section 11.5 shall apply only if
such Information entering into the public domain was not the result of action by
PAA or a PAA Principal or was in accordance with Section 12 and (2) references
in clause (ii)(A) of Section 11.5 to the "receiving party" shall be deemed to
refer to PAA.

            11.5 The acknowledgments, agreements, and restrictions set forth in
the preceding provisions of this Article 11 shall not (i) apply to any
Information which (A) was rightfully in the receiving party's possession, as
evidenced by written records, prior

                                       29
<PAGE>

to the date of this Agreement (other than by disclosure from the disclosing
party), without similar restrictions, (B) was disclosed to the receiving party
by a Third Party (without actual knowledge of the receiving party that such
disclosure was in breach of a duty of confidentiality of such Third Party), (C)
entered into the public domain without a breach of this Agreement, or (D) the
receiving party determines in good faith must be disclosed to comply with law or
an order or request of a governmental body, or (ii) (A) prevent Licensee or PAA,
upon and subject to the terms of this Agreement, from preparing, filing,
prosecuting or maintaining any patent applications or its resulting patents
related to the Technology, Licensed Products or Licensed Processes, (B) prevent
Licensee, its Affiliates or any Sublicensee (1) from disclosing Information to
persons or entities working on their behalf or to governmental agencies, to the
extent Licensee or such other persons or entities reasonably believe is required
or desirable to secure any government approval for the development, manufacture,
marketing or sale of any Licensed Product, or (2) upon imminent approval or
actual approval for registration by a governmental agency in a country of a drug
application for any Licensed Product, from disclosing Information to the extent
reasonably necessary to promote the use, marketing or sale of Licensed Product
in that country or (C) prevent Licensee or its Affiliates from disclosing
Information which Licensee determines in good faith is required by law or
reasonably necessary in connection with any financing, strategic transaction,
acquisition or disposition involving Licensee or any Affiliate thereof.

                                12 - PUBLICATIONS

                                       30
<PAGE>

      During the term of the Agreement, the following restrictions shall apply
with respect to disclosure by PAA or any PAA Principal or Affiliate (the
"Publishing Party") in any publication or presentation, in oral or written form,
of information or data relating to the Technology (collectively,
"Publications"):

            (a)   The Publishing Party shall provide Licensee with a copy of any
                  proposed Publication at least forty-five (45) days prior to
                  submission for publication (or presentation) so as to provide
                  Licensee with the opportunity to recommend any changes it
                  deems necessary to continue to maintain the confidentiality
                  of information or data disclosed by Licensee to the Publishing
                  Party in accordance with the requirements of this Agreement.
                  The incorporation of such recommended changes shall not be
                  unreasonably refused; and

            (b)   If Licensee notifies the Publishing Party ("Notice") within
                  thirty (30) days of receipt of the copy of the proposed
                  Publication that such Publication, in its reasonable judgment
                  (i) contains an invention for which Licensee desires to (and
                  is hereunder entitled to) pursue patent protection, or (ii)
                  could be expected to have a material adverse effect on the
                  commercial value of the information or data contained therein,
                  of any Information disclosed to Licensee hereunder or of any
                  aspect of the Technology disclosed to Licensee or licensed
                  hereunder, the Publishing Party shall prevent such

                                       31
<PAGE>

                  publication (or presentation) or delay such publication (or
                  presentation) for a reasonable period of time as specified by
                  Licensee. In the case of inventions, such delay shall be for a
                  period of time sufficient to permit the timely preparation and
                  filing of a patent application or applications on the
                  invention, and in no event less than one hundred eighty (180)
                  days from the date of Notice. Any dispute or disagreement
                  under this subsection (b) may be submitted to arbitration in
                  accordance with the procedures set forth in Article 14 hereof.

                      13 - NOTICES AND OTHER COMMUNICATIONS

      Any notice or communication (including invoices) required to be given
hereunder shall be in writing and shall be considered properly given (a) on the
date delivered or sent if personally delivered against written receipt, (b) on
the date of receipt if sent by certified or registered mail, or (c) on the date
of receipt if sent by overnight mail or reputable over night courier, as
follows:

            If to PAA or any PAA Principal:

                  PHARMACEUTICAL APPLICATIONS ASSOCIATES, LLC
                  402 East Yakima Avenue, Suite 330
                  Yakima, Washington 98901-2755
                  Attn: C. Donald Williams
                  Facsimile: (509) 454-3295

or such other address (and/or facsimile number) that PAA may advise in writing
in accordance with this Article 12;

                                       32
<PAGE>

            If to Licensee:

                  PRAECIS PHARMACEUTICALS INCORPORATED
                  1 Hampshire Street
                  Cambridge, Massachusetts 02139
                  Attn.: Vice President of Corporate Development
                  Facsimile: (617) 494-8414

or such other address (and/or facsimile number) that Licensee may advise in
writing in accordance with this Article 12.

                             14 - DISPUTE RESOLUTION

            14.1 Unless otherwise explicitly set forth in this Agreement, in the
event that the parties are unable to resolve any dispute, controversy or claim
arising out of, or in relation to this Agreement, or the breach, termination or
invalidity thereof (collectively "Issue"), the parties shall first refer such
Issue to the respective Chief Executive Officers of Licensee and PAA. In the
event that such Issue cannot be resolved by these individuals after a good
faith discussion to resolve the Issue, then either party may initiate
arbitration in Boston, Massachusetts in accordance with this subsection under
the guidelines of the American Arbitration Association ("AAA") and the
commercial rules then in effect for AAA, except as otherwise provided for
herein.

            14.2 A party shall notify the other in writing should it intend to
initiate arbitration. The parties shall select, by mutual agreement, one
arbitrator within a time period of thirty (30) days after receipt of such
notice. Should no arbitrator be chosen within the above period, the AAA shall
appoint the arbitrator within thirty (30) days after the end of such period.

                                       33
<PAGE>

            14.3 Unless otherwise agreed to by the parties, the arbitrator shall
make such decision based on the following factors in descending order of
importance: (a) consistency with the provisions of this Agreement; (b)
consistency with the intent of the parties as reflected in this Agreement; and
(c) customary and reasonable provisions included in comparable agreements. The
decision of the arbitrator will be binding upon the parties without the right of
appeal, and judgment upon the decision rendered by the arbitrator may be entered
in any court having jurisdiction thereof.

            14.4 The parties shall share equally the reasonable documented cost
of such arbitration proceeding. Each party shall be responsible for its own
costs and expenses in any such arbitration proceeding.

                          15 - MISCELLANEOUS PROVISIONS

            15.1 This Agreement shall be construed, governed, interpreted and
applied in accordance with the laws of The Commonwealth of Massachusetts,
without giving effect to its conflicts of law principles, except that questions
affecting the construction and effect of any patent shall be determined by the
law of the country in which the patent was granted.

            15.2 The parties hereto acknowledge that this Agreement (including
its Exhibits) sets forth the entire Agreement and understanding of the parties
with respect to the subject matter hereof, and shall not be subject to any
change or modification except by the execution of a written instrument
subscribed to by Licensee and PAA.

                                       34
<PAGE>

            15.3 The invalidity or enforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement, each of which shall remain in full force and effect. In
addition, any such invalid or unenforceable provision shall be deemed amended or
replaced with a provision that is valid and enforceable which achieves, to the
fullest extent possible, the original objectives and intent of the parties as
reflected in the offending provision.

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

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

            15.6 Nothing herein shall be deemed to constitute either party as
the agent or representative of the other party. Each party shall be an
independent contractor, not an employee or partner of the other party. Each
party shall be responsible for the conduct of activities at its own facilities
and for any liabilities resulting therefrom. Neither party shall be responsible
for the acts or omissions of the other party, and neither party will have
authority or represent to have authority to speak for, represent or obligate the
other party in any way without prior written authority from the other party.

                                       35
<PAGE>

            15.7 No party will disclose the terms or conditions of this
Agreement to any Third Party (other than a party's officers, directors, members,
employees, stockholders, attorneys, financial advisors and other
representatives) or issue any press release relating to the terms and conditions
of this Agreement for any purpose, without the prior written consent of the
other party except as required by law (including without limitation upon order
or request of any regulatory agency or commission of competent jurisdiction);
provided that such consent will not be unreasonably withheld and shall not be
required for any such disclosure by Licensee which Licensee determines in good
faith is required by law or reasonably necessary in connection with any
financing, strategic transaction, acquisition or disposition involving Licensee.
The restriction on disclosure contained herein shall not apply to any
information which is essentially identical to that contained in a previous
disclosure authorized hereunder.

            15.8 In the event that PAA shall become insolvent, shall make an
assignment for the benefit of creditors, or shall have a petition in bankruptcy
filed for or against it (which, in the case of an involuntary petition, is not
dismissed or stayed within sixty (60) days after such petition is filed), all
rights and licenses granted under or pursuant to this Agreement by PAA to
Licensee are, and shall otherwise be deemed to be, for purposes of Section
365(n) of Title 11, US Code (the "Bankruptcy Code"), licenses of rights to
"intellectual property" as defined under Section 101(60) of the Bankruptcy Code.
The parties agree that Licensee, as a licensee of such rights under this
Agreement,

                                       36
<PAGE>

shall retain and may fully exercise all of its rights and elections under the
Bankruptcy Code, subject to the continued performance of its obligations under
this Agreement.

            15.9 The waiver by a party of a breach or a default of any provision
of this Agreement by the other party shall not be construed as a waiver of any
succeeding breach of the same or any other provision, nor shall any delay or
omission on the part of a party to exercise or avail itself of any right, power
or privilege that it has or may have hereunder operate as a waiver of any right,
power or privilege by such party.

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

            15.11 Each of the parties hereto covenants and agrees that at all
times hereafter it will execute, acknowledge and deliver all such instruments
and documents which may be necessary, or with the other party may reasonably
request, to effectuate the rights and perform the obligations contemplated by
this Agreement.

                                       37
<PAGE>

            IN WITNESS WHEREOF, the parties have duly executed this Agreement as
of the day and year first written above.

                                        PRAECIS PHARMACEUTICALS
                                        INCORPORATED

                                        /s/ Mark A. Silver
                                        ----------------------------------------
                                        Mark A. Silver
                                        Vice President of Corporate Development

                                        /s/ William L. Kubasek
                                        ----------------------------------------
                                        William L. Kubasek
                                        Director of Business Development

                                        PHARMACEUTICAL APPLICATIONS
                                        ASSOCIATES LLC

                                        /s/ C. Donald Williams
                                        ----------------------------------------
                                        By:  C. Donald Williams
                                        Its: President

                                        /s/ C. Donald Williams
                                        ----------------------------------------
                                        C. Donald Williams, M.D., C.G.P.

                                        /s/ Robert Murdock
                                        ----------------------------------------
                                        Robert Murdock, R.Ph.

                                       38
<PAGE>

                                                                       EXHIBIT A

        U.S. Patent Application No. 3742-901-2-IPROV and related filings.

                                       A-1
<PAGE>

                                                                       EXHIBIT B

PAA has entered into Confidentiality Agreements with each of the following
individuals and entities:

            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **
            **

PAA has not entered into any license agreements relating to the Technology, the
Patent Rights, or any Licensed Product or Licensed Process.

                                       B-1

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