Document:

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                                                                   Exhibit 10.30

[*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
    BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
    EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
    1933, AS AMENDED.

AZ AND CK CONFIDENTIAL

                       COLLABORATION AND LICENSE AGREEMENT

         THIS COLLABORATION AND LICENSE AGREEMENT (this "AGREEMENT") is made and
entered into as of the 15th day of December, 2003 (the "EFFECTIVE DATE") by and
between Cytokinetics, Inc. a Delaware corporation, having a place of business at
280 East Grand Avenue, South San Francisco, CA 94080 ("CK") and AstraZeneca AB,
a company incorporated in Sweden under no. 556011-7482 with offices at S-151 85
Sodertalje, Sweden ("AZ"). CK and AZ are each referred to herein by name or as a
"PARTY" or, collectively, as "PARTIES."

                                    RECITALS

         A.       WHEREAS CK has developed Cytometrix(TM)* cellular phenotyping
technologies for compound profiling (the "CM SYSTEM," as further defined below);

         B.       WHEREAS AZ is performing internal projects aimed at the
discovery and development of novel therapeutic products; and

         C.       WHEREAS CK and AZ wish to collaborate on a research program
utilizing AZ and CK's knowledge, skills, and proprietary technology to develop a
module of the CM System for use as an in vitro predictor of hepatotoxicity.

         NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as
follows:

                            ARTICLE I - DEFINITIONS

         Unless otherwise specifically provided in this Agreement, the following
capitalized terms shall have the following meanings as used in this Agreement:

         1.1      "AFFILIATE" means, with respect to a Person, any Person that
Controls, is Controlled by or is under common Control with such first Person.
For purposes of this Section 1.1 only, "CONTROL" means (a) to possess, directly
or indirectly, the power to direct the management or policies of a Person,
whether through ownership of voting securities or by contract relating to voting
rights or corporate governance, or (b) to own, directly or indirectly, fifty
percent (50%) or more of the outstanding voting securities or other ownership
interest of such Person; provided

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   *Cytometrix(TM) is a trademark of Cytokinetics, Inc

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AZ AND CK CONFIDENTIAL

that, if local law in any country other than the United States requires a
maximum percentage of local ownership such that the maximum percentage that may,
under such local law, be owned by foreign interests is less than fifty percent
(50%), "CONTROL" means to own the maximum ownership percentage that may, under
such local law, be owned by foreign interests.

         1.2      "APPLICABLE LAW" means the applicable laws, rules and
regulations, including any rules, regulations, guidelines or other requirements
of regulatory authorities that may be in effect from time to time.

         1.3      "AZ BACKGROUND TECHNOLOGY" means any and all Technology
Controlled by AZ as of the Effective Date or during the Research Term
(regardless of when disclosed) and described on EXHIBIT 1.3, or included as AZ
Background Technology pursuant to Section 3.5. The AZ Background Technology
excludes (i) any and all Collaboration Technology and Collaboration Knowledge,
and (ii) any and all Technology provided to CK hereunder by or on behalf of AZ
consisting of General Methods.

         1.4      "AZ COMPOUND" means each Compound intended or provided for use
in the Research Program hereunder by or for AZ, in each case identified by an AZ
Compound identifier listed on EXHIBIT 1.4 and identified therein as Public or
Proprietary, including additional AZ Compounds added pursuant to Section 3.2 and
excluding Compounds removed as Proscribed Compounds pursuant to Section 3.2.

         1.5      "AZ COMPOUND DATA" means data proprietary to AZ and
conclusions derived by or for AZ from such data (other than Collaboration
Technology), existing as of the Effective Date or during the Research Term,
comprised of data and information that describes or otherwise relates to an AZ
Compound and (i) described in, included or required to be provided to CK under
Section 3.2 or the Research Plan, or (ii) otherwise disclosed by AZ to CK in
accordance with this Agreement.

         1.6      "AZ FACILITY(IES)," when used in the singular, means the
primary location at which AZ performs the Research Program, as designated and
updated in accordance with Section 2.3 from time to time; and when used in the
plural, means any and all of AZ's facilities, also as designated and updated in
accordance with Section 2.3 from time to time.

         1.7      "AZ IMPROVEMENTS" means Improvements that are made during the
Pilot License Term that are adaptations or modifications to the Cytometrix(TM)
Hepatotoxicity Module required solely for purposes of achieving compatibility of
the Cytometrix(TM) Hepatotoxicity Module with AZ's information technology or
bioinformatics infrastructure.

         1.8      "AZ KNOWLEDGE" means Technology provided to CK by or on behalf
of AZ during the Research Term for use in the Research Program, which in each
case is not AZ Background Technology, Collaboration Technology, AZ Compounds or
AZ Compound Data.

         1.9      "CHANGE OF CONTROL" means an event in which (i) any Person,
other than the shareholders of a Party as of the Effective Date of the
Agreement, acquires or becomes the beneficial owner of more than fifty percent
(50%) of the voting securities of that Party, (ii) a

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AZ AND CK CONFIDENTIAL

Party enters into a merger, consolidation or other similar transaction with
another Person or Persons and is not the surviving entity in such transaction,
or (iii) a Party sells to any Person(s) in one or more related transactions all
or substantially all of its consolidated total assets. The public or private
sale of equity securities by the current shareholders of a Party in a single or
related series of transactions shall not constitute a Change in Control unless
as a result of such sale or sales one Person or group of Persons acting in
concert attains control of that Party or acquires or becomes the beneficial
owner of more than fifty percent (50%) of the voting securities of that Party or
such entity into which that Party has merged or consolidated.

         1.10     "CK BACKGROUND TECHNOLOGY" means any and all Technology
Controlled by CK as of the Effective Date or during the Research Term
(regardless of when disclosed) and consisting of the CM System, embodied in CK's
proprietary standard operating procedures described on EXHIBIT 1.10, or included
as CK Background Technology pursuant to Section 3.5. The CK Background
Technology excludes (i) any and all Collaboration Technology and Collaboration
Knowledge, (ii) any and all Technology primarily related to the Prohibited
Field, and (iii) Technology provided to AZ hereunder by or on behalf of CK
consisting of General Methods.

         1.11     "CK COMPOUND" means each Compound intended or provided for use
in the Research Program hereunder by or for CK, in each case identified by a CK
Compound identifier listed on EXHIBIT 1.11 and identified therein as Public or
Proprietary, including additional CK Compounds added pursuant to Section 3.2,
and excluding CK Compounds removed as Proscribed Compounds pursuant to Section
3.2.

         1.12     "CK COMPOUND DATA" means data proprietary to CK and
conclusions derived by or for CK from such data (other than Collaboration
Technology), existing as of the Effective Date or during the Research Term,
comprised of data and information that describes or otherwise relates to a CK
Compound, and (i) described in, included, or required to be provided to AZ under
the Research Plan, or (ii) otherwise disclosed by CK to AZ in accordance with
this Agreement.

         1.13     "CK FACILITY" means the primary location at which CK performs
the Research Program, as designated and updated in accordance with Section 2.2
from time to time.

         1.14     "CK KNOWLEDGE" means Technology provided to AZ by or on behalf
of CK during the Research Term for use in the Research Program, which in each
case is not CK Background Technology, Collaboration Technology, Collaboration
Knowledge, CK Compounds or CK Compound Data.

         1.15     "CM SYSTEM" means that certain Technology Controlled by CK as
of the Effective Date or during the Research Term consisting of the
Cytometrix(TM) cellular phenotyping technologies system employing
high-throughput fluidics, automation, microscopy, imaging analysis and advanced
bioinformatics to automate cellular phenotyping, as described in more detail on
EXHIBIT 1.15.

         1.16     "COLLABORATION KNOWLEDGE" means all Technology conceived
and/or reduced to practice or otherwise generated through activities performed
under or in the scope of the

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AZ AND CK CONFIDENTIAL

Research Program to the extent consisting of General Methods. For clarity,
Collaboration Knowledge excludes all Technology developed in the course of the
Exempt Activities.

         1.17     "COLLABORATION TECHNOLOGY" means all Technology conceived
and/or reduced to practice or otherwise generated through activities performed
under or in the scope of the Research Program, solely by either AZ or CK or
jointly by the Parties, excluding Collaboration Knowledge and excluding any
Technology developed in the course of the Exempt Activities.

         1.18     "COMPOUND" means a unique chemical entity.

         1.19     "COMPOUND DATA" means the AZ Compound Data or the CK Compound
Data, as applicable, and similar data generated pursuant to the Research
Program.

         1.20     "CONTRACT YEAR" means a year of 365 days (or 366 days in a
leap year) beginning on the Effective Date and ending one (1) year thereafter
and so on year-by-year. "CONTRACT YEAR ONE" means the first such year; "CONTRACT
YEAR TWO" means the second such year, and so on, year-by-year.

         1.21     "CONTROL" means, with respect to any item of Technology, or a
particular Compound, or the related Intellectual Property Rights thereto, the
possession of the right, whether directly or indirectly, and whether by
ownership, license or otherwise, to disclose, deliver, assign, or grant a
license, sublicense or other right to or under such applicable Technology,
Compound or related Intellectual Property Rights, of the scope and as provided
for herein, without any of the following: (i) violating the terms of any
agreement or other arrangement with any Third Party existing as of the Effective
Date; (ii) the granting Party being required to pay any royalty or other
consideration to any Third Party that would not have been required had the
applicable right or license not been provided under this Agreement; or (iii)
violating any law, regulation, rule, code, order or other requirement of any
federal, state, foreign, local, or other government body or the need for any
additional permits, payments, authorizations, or approvals under any such law,
regulation, rule, code, order or requirement.

         1.22     "CYTOMETRIX(TM) HEPATOTOXICITY MODULE" or "CHM" means that
certain module of the CM System developed in the course of performance and scope
of the Research Program, and directed to in vitro predictions of hepatotoxicity
(i.e., in vitro image-based assays that can be used to support selection of
chemical entities for drug discovery and development that may have a lower
intrinsic potential to cause liver toxicity).

         1.23     "DELIVERABLES" means certain identified items required to be
delivered or provided by one Party to the other pursuant to the Research
Program, as set forth in EXHIBIT 1.23.

         1.24     "EFFECTIVE DATE" means the date as set forth in the preamble
to this Agreement.

         1.25     "EXEMPT ACTIVITIES" means, with respect to the specific Party
identified on EXHIBIT 1.25, the corresponding activities set forth on EXHIBIT
1.25.

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AZ AND CK CONFIDENTIAL

         1.26     "FIELD" means the use of imaging-based cellular phenotyping,
together with the use of analysis for the in vitro prediction of hepatotoxicity
to support drug discovery and development. For the avoidance of doubt, "FIELD"
excludes, without limitation, (i) any and all [*] applications (i.e., the direct
or indirect [*]), (ii) [*] applications (i.e., the direct or indirect [*]
whether by [*], [*], [*] or otherwise), (iii) any and all [*], [*] or similar
applications, or uses as a commercial service (e.g., as a service bureau or on
behalf of any Third Party) or product, and (iv) the use of the CM System or any
other Cytometrix(TM) cellular phenotyping and/or analysis technologies or
similar technologies (other than the Cytometrix(TM) Hepatotoxicity Module) to
investigate and engage in activities related to discovery and validation of any
[*] and/or [*].

         1.27     "FTE" means the equivalent of one researcher employed by CK or
AZ having the requisite skills to fulfill CK's or AZ's obligations under this
Agreement and devoting the equivalent hours of a full time employee. For
purposes of this Agreement, "full time" shall mean 1880 hours per year as
determined in accordance with the applicable Party's regular project hour
reporting system.

         1.28     "FULL LICENSE" has the meaning set forth in Section 5.7.

         1.29     "FULL LICENSE TERM" means the period of time during which the
Full License is in effect, beginning as of the date the Full License is first
effective.

         1.30     "GENERAL METHODS" means (a) methods or techniques for (i) cell
culture, (ii) cell plating and conditions therefor, (iii) automation, (iv)
automated image acquisition, (v) variable exposure of cells to treatment, and
(vi) automated addition of treatment and stains; and (b) general knowledge of
use to practitioners of toxicological studies or cellular phenotyping and
analysis.

         1.31     "IMPROVEMENT" means any improvement, adaptation, modification
or upgrade arising during the Pilot License Term and/or the Full License Term.

         1.32     "INTELLECTUAL PROPERTY RIGHTS" means any and all intellectual
property rights in, to, or arising out of any (i) Patents; (ii) trade secrets;
(iii) know-how (iv) copyrights, copyright registrations, or any national or
regional application therefor, in any territory, or any other right
corresponding thereto throughout the world, including moral rights; or (v) any
other intellectual property or proprietary right anywhere in the world,
including rights in or to any data bases, data collections (including knowledge
databases) or software (including any source code or object code form).

         1.33     "JOINT RESEARCH COMMITTEE" or "JRC" means the committee
established pursuant to Section 2.4 herein.

         1.34     "JOINT STEERING COMMITTEE" or "JSC" means the committee
established pursuant to Section 2.5 herein.

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AZ AND CK CONFIDENTIAL

         1.35     "PATENT" means any and all rights under any of the following,
whether existing now or in the future: (i) all national, regional and
international patents and patent applications, including provisional patent
applications, utility model, design registration, certificate of invention,
patent of addition or substitution, or other governmental grant for the
protection of inventions or industrial designs anywhere in the world, including
any reissue, renewal, re-examination or extension thereof; and (ii) any
application for any of the foregoing, including any international, provisional,
divisional, continuation, continuation-in-part, or continued prosecution
application.

         1.36     "PERFORMANCE CRITERIA" means the functional criteria for
performance of the Cytometrix(TM) Hepatotoxicity Module, as set forth in EXHIBIT
1.36, as may be revised by the JRC or by mutual written agreement of the
Parties.

         1.37     "PERSON" means an individual, sole proprietorship,
partnership, limited partnership, limited liability partnership, corporation,
limited liability company, business trust, joint stock company, trust,
incorporated association, joint venture or similar entity or organization,
including a government or political subdivision, department or agency of a
government.

         1.38     "PILOT LICENSE" has the meaning set forth in Section 5.6.1.

         1.39     "PILOT LICENSE TERM" is the period during which the Pilot
License is effective, (A) commencing on the earlier of (i) the date after the
last day of the Research Term or (ii) the date that the prototype Cytometrix(TM)
Hepatotoxicity Module, installed at the CK Facility and used in connection with
CK's infrastructure and instrumentation, first meets the Performance Criteria
therefor, as determined pursuant to Section 3.4, and then (B) continuing until
the earlier of (x) the date that the Cytometrix(TM) Hepatotoxicity Module,
installed at the AZ Facility and used in connection with AZ's infrastructure and
instrumentation, first meets the Performance Criteria therefor, as determined
pursuant to Section 3.4, or (y) the first anniversary of the date of
commencement (as described in clause (A) above) of the Pilot License Term,
subject to extension by mutual written agreement of the Parties.

         1.40     "PRINCIPAL SCIENTIST" means the AZ Principal Scientist or the
CK Principal Scientist, as applicable, as each is defined in Sections 2.3.2 and
2.2.2, respectively.

         1.41     "PROHIBITED FIELD" means any and all research, development or
commercialization activities directed toward any [*] or products for any such
applications.

         1.42     "PROPRIETARY" means (i) with respect to a Compound, that the
Party providing such Compound hereunder Controls Patents which specifically
recite and specifically, but not solely generically, claim the making,
possession, use, sale, import or export of such Compound or has maintained, as a
trade secret, the composition of matter of such Compound, and (ii) with respect
to Compound Data, such data has been maintained as a trade secret by the
providing Party.

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  omitted portions.

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AZ AND CK CONFIDENTIAL

         1.43     "PROSCRIBED COMPOUND" means:

                  1.43.1   with respect to an AZ Compound, a Compound that is
marked with the development flag in the [*] system. The development flag shall
be applied only to a Compound meeting any of the following criteria: (i) the
Compound is being actively developed; (ii) the Compound is commercially
sensitive to AZ; or (iii) the Compound is an isomer of a Compound described in
clause (i) or (ii). In marking with a development flag any Compound that is an
AZ Compound hereunder, AZ shall apply the same criteria in a manner consistent
with current internal policy and past practice as it does with other Compounds
under similar circumstances.

                  1.43.2   with respect to a CK Compound, a Compound that has
been designated as having restricted use within CK. Such restricted use applies
only to a Compound meeting any of the following criteria: (i) the Compound is
being actively developed; (ii) the Compound is commercially sensitive to CK; or
(iii) the Compound is an isomer of a Compound described in clause (i) or (ii).
In designating a Compound as having restricted use, CK shall apply the same
criteria in a manner consistent with current internal policy and past practice
as it does with other Compounds under similar circumstances.

         1.44     "PUBLIC" means (i) with respect to a Compound, such Compound
is not Proprietary, and (ii) with respect to AZ Compound Data or CK Compound
Data, such data is not Proprietary.

         1.45     "RESEARCH PLAN" means the document attached hereto as EXHIBIT
1.45 outlining the Research Program, the budget for the Research Program, and
each Parties' undertakings and obligations, including allocation of FTEs by CK
and AZ, in relation thereto.

         1.46     "RESEARCH PROGRAM" has the meaning described in Section 2.1
hereof.

         1.47     "RESEARCH TERM" means the period beginning on the Effective
Date and continuing for two (2) years thereafter, as may be extended in
accordance with Section 2.7 or by mutual written agreement of the Parties.

         1.48     "TERM" means the period beginning on the Effective Date and
continuing until the earlier of the date upon which this Agreement expires by
its terms, is terminated in accordance with Article VIII, or extended by mutual
written agreement of the Parties.

         1.49     "TECHNOLOGY" means any and all of the following, including
tangible copies and embodiments thereof:

                  1.49.1 information and materials (including Compounds)
relating to the subject matter of this Agreement and including data such as test
data (including pharmacological, toxicological and clinical test data) and image
data and in vitro and in vivo data;

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AZ AND CK CONFIDENTIAL

                  1.49.2 experimental methods and techniques, including those
that are part of or related to assays and cell cultures, screens, models,
practices, and know-how, techniques, trade secrets, and inventions (whether or
not patented or patentable);

                  1.49.3 instrumentation, including selection and arrangement of
instrumentation and setup or calibration settings;

                  1.49.4 computer software and code, and related technology,
including flow diagrams, designs, assemblers, applets, compilers, algorithms,
routines, design tools and user interfaces, in source code or object code form;
and

                  1.49.5 antibodies, markers, cells and cell lines;

         in each case (i) to the extent and for so long as such subject matter
or materials are not generally available in the public domain or otherwise from
a Third Party without restriction, except as a result of a Party's activities in
violation of the terms or conditions of this Agreement, or (ii) to the extent
and for so long as there are protectable Intellectual Property Rights subsisting
in or encompassing those materials.

         1.50 "THIRD PARTY" means any Person other than CK or AZ and the
Affiliates of either.

                         ARTICLE II - RESEARCH PROGRAM

         2.1 RESEARCH PROGRAM.

                  2.1.1    GENERALLY. CK and AZ agree to conduct a collaborative
research program with the specific goal of creating the Cytometrix(TM)
Hepatotoxicity Module for use in the Field as an in vitro predictor of
hepatotoxicity (the "RESEARCH PROGRAM"). The Research Program shall be conducted
solely in accordance with the Research Plan then in effect unless otherwise
mutually agreed in writing by the Parties or through the JRC in accordance with
Section 2.4.4.

                  2.1.2    DILIGENT EFFORTS. Each Party shall apply the same
diligent efforts with respect to the Research Program as each, respectively,
expends for its own high priority discovery technology programs. Without
limiting the foregoing, each Party shall apply diligent efforts toward the
performance of activities under the Research Program and allocate personnel and
other resources as reasonably necessary to successfully complete those
activities within the timeframes set forth in the Research Plan then in effect.

                  2.1.3    CONTRIBUTIONS. Each Party shall contribute to the
Research Program the items identified in Article III.

         2.2 CK FACILITIES AND CK PRINCIPAL SCIENTIST.

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AZ AND CK CONFIDENTIAL

                  2.2.1    CK shall provide the facilities, equipment, and
manpower that are reasonably necessary or useful to carry out the work
undertaken by CK under the Research Program at 280 East Grand Avenue, South San
Francisco, CA 94080 (the "CK FACILITY"). CK shall have the right to change the
location of the CK Facility upon reasonable advance written notice to AZ.

                  2.2.2    The principal scientist designated by CK (the "CK
PRINCIPAL SCIENTIST") shall be responsible for all Research Program activities
undertaken by CK and shall supervise the work of all personnel engaged by CK in
the Research Program. The CK Principal Scientist shall serve as the primary
contact for AZ on all matters related to the Research Program. The CK Principal
Scientist is [*]. CK may change the CK Principal Scientist, but only to a
similarly qualified individual and only on providing AZ with prior written
notice. Notwithstanding any change in the identity of the CK Principal
Scientist, CK shall continue to be responsible for performing the activities
undertaken by it under the Research Program and any consent or agreement by AZ
pursuant to this Section 2.2.2 shall not be deemed to be a waiver of any right
or remedy AZ may have in relation to any failure of CK to conduct such
activities.

         2.3 AZ FACILITIES AND AZ PRINCIPAL SCIENTIST.

                  2.3.1    AZ shall provide the facilities and equipment that
are reasonably necessary or useful to carry out the work undertaken by AZ under
the Research Program at [*] (the "AZ FACILITIES"). To the extent AZ is
authorized to use the Collaboration Technology or CK Background Technology at
more than one facility controlled by AZ, AZ shall designate in writing to CK
each such facility at which it is using the Collaboration Technology or CK
Background Technology. AZ shall provide prompt written updates of changes in the
location of any AZ Facility and AZ shall have the right to change the locations
of the AZ Facilities upon reasonable advance written notice to CK; provided that
after CK's delivery of the Cytometrix(TM) Hepatotoxicity Module such changes
shall only be effective upon CK's written approval.

                  2.3.2    The principal scientist designated by AZ (the "AZ
PRINCIPAL SCIENTIST") shall be responsible for all Research Program activities
undertaken by AZ and shall supervise the work of all personnel engaged by AZ in
the Research Program. The AZ Principal Scientist shall serve as the primary
contact for CK on all matters related to the Research Program. The AZ Principal
Scientist is [*]. AZ may change the AZ Principal Scientist, but only to a
similarly qualified individual and only on providing CK with prior written
notice. Notwithstanding any change in the identity of the AZ Principal
Scientist, AZ shall continue to be responsible for performing the activities
undertaken by it under the Research Program, and any consent or agreement by CK
pursuant to this Section 2.3.2 shall not be deemed to be a waiver of any right
or remedy CK may have in relation to any failure of AZ to conduct such
activities.

         2.4 THE JOINT RESEARCH COMMITTEE. Promptly after the Effective Date,
the Parties shall establish a Joint Research Committee (the "JRC") as set forth
in this Section 2.4. The JRC will

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exist until the end of the Pilot License Term. Each Party shall keep the JRC
informed of its progress and activities within the Research Program.

                  2.4.1    MEMBERSHIP. The JRC shall be comprised of an equal
number of representatives from each of AZ and CK, initially three (3) from each
of AZ and CK, including one lead representative from each Party (who may be but
is not required to be the CK Principal Scientist for CK and the AZ Principal
Scientist for AZ) and any ad hoc members as requested by either Party and
approved by the other Party in writing. For CK, the lead representative is [*];
for AZ, the lead representative is [*]. A Party may replace its lead
representative or other representatives to the JRC with other similarly
qualified individuals by providing advance written notice to the other Party.

                  2.4.2    MEETINGS. The JRC shall meet regularly during the
Research Term and the Pilot License Term, including face-to-face meetings to be
held at least quarterly, telephone or videoconference calls to be held at least
monthly, with additional regular e-mail and telephone exchanges among the
members. The JRC shall create and agree on written minutes for each meeting of
the JRC. The Parties shall alternate responsibility for chairing the meetings.
Each Party shall bear the expenses of its JRC members related to such members'
participation on the JRC and attendance at JRC meetings.

                  2.4.3    RESPONSIBILITIES.

                           (a) The JRC shall have responsibility for: (i)
reviewing and coordinating the Research Program, and for expediting work
progress under the Research Plan currently in effect; (ii) overseeing,
reviewing, recommending the direction of, and allocating resources under the
Research Program; (iii) preparing the Research Plan for each Contract Year
(other than Contract Year One); (iv) adapting and revising the Research Plan, if
appropriate; (v) approving any use of a Third Party's Technology or Intellectual
Property Rights in connection with the Research Program; (vi) tracking and
recording Compound Data provided under Section 3.2 or otherwise generated
pursuant to the Research Program; (vii) monitoring performance of the Research
Program, including comparing its progress to established goals and revising the
Performance Criteria as may be required or appropriate from time to time,
including to address removal of Proscribed Compounds or Proscribed Compounds
pursuant to Section 3.2.4 or 3.2.5; and (viii) carrying out other
responsibilities or making any other decisions as are expressly allocated to the
JRC under this Agreement.

                           (b) The Parties, through the JRC, shall discuss and
consider a proposal to expand the Research Program to include [*] activities
with respect to AZ Compounds and CK Compounds. Such discussions shall commence
no more than [*] months after the Effective Date. If such proposal is approved
by the Parties following the recommendation of the JRC, then the Research Plan
and this Agreement will be revised to reflect such expansion, which may include
modification of the Field to include [*]. If such expansion is not approved,
then the Parties, through the JRC, shall discuss and consider a proposal to
extend the licenses to AZ Compound Data and AZ Compounds to permit CK to conduct
[*] at its own expense outside the Research Program.

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AZ AND CK CONFIDENTIAL

                  2.4.4    DECISION MAKING. The JRC shall endeavor to reach
consensus on all matters brought before it. Decisions of the JRC must be made
with participation of at least two (2) representatives of each Party and by
unanimous vote of each participating representative. Decisions will be included
in the written minutes of a meeting, with such written minutes approved by all
Persons present at such a meeting of the JRC. In the event the JRC is unable to
resolve an outstanding matter, such matter shall be referred for resolution in
good faith by the Joint Steering Committee (JSC) as described in Section 2.5.

         2.5 THE JOINT STEERING COMMITTEE. Promptly after the Effective Date,
the Parties shall establish a Joint Steering Committee (the "JSC") as set forth
in this Section 2.5. The JSC will exist throughout the term of this Agreement.

                  2.5.1    MEMBERSHIP. The JSC shall be comprised of two (2)
representatives from each of AZ and CK. For AZ, the representatives are [*] and
[*]. For CK, the representatives are [*] and another individual to be selected
by CK by written notice to AZ. Each Party may replace its representatives on the
JSC at any time by providing written notice to the other Party. Replacements
must have comparable seniority, responsibility and knowledge or experience.

                  2.5.2    MEETINGS. The JSC shall meet at least once annually
during the Research Term, and as necessary from time to time during the
remainder of the Term, including face-to-face meetings, telephone or video
conference calls. The location and other logistics of any meeting will be
determined by the JSC. The JSC shall create and agree on written minutes for
each meeting of the JSC. Each party shall bear the expenses of its JSC members
related to such members' participation on the JSC and attendance at JSC
meetings.

                  2.5.3    RESPONSIBILITIES. The JSC shall have responsibility
to oversee and review the Research Program and to arbitrate decision making as
described below.

                  2.5.4    DECISION MAKING. Decisions of the JSC shall be made
by unanimous vote, with each Party having a single vote irrespective of the
number of representatives actually in attendance at a meeting. Decisions will be
included in the written minutes of a meeting, with such written minutes approved
by all persons present at such a meeting of the JSC. If the Parties are unable
to reach resolution within [*] days following the date the matter in dispute is
first brought to the attention of the JSC, that matter shall be resolved in
accordance with Section 10.2.

         2.6 RESEARCH PLAN.

                  2.6.1    INITIAL RESEARCH PLAN. The initial Research Plan,
which covers the Research Program during Contract Year One, is attached as
EXHIBIT 1.45. The Parties acknowledge and agree that such initial Research Plan
sets forth the goals and objectives of the Research Program and the broad terms
of the Parties' respective undertakings to achieve those goals and objectives.
The Parties further acknowledge and agree that the Research Plan will be
supplemented and otherwise amended by the JRC from time to time during the
Research Term

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for each stage of the Research Program to identify and define the specific
undertakings of the Parties required to implement the Research Program.

                  2.6.2    NEW RESEARCH PLANS. At least three (3) months prior
to the end of each Contract Year during the Research Term, the JRC shall meet to
establish the Research Plan for the upcoming Contract Year. The JRC shall
establish such Research Plan no later than thirty (30) days prior to the end of
the then-current Contract Year.

                  2.6.3    REVISED RESEARCH PLANS. In addition to new Research
Plans, the JRC shall review each Research Plan on an ongoing basis and may make
changes thereto in accordance with the procedures in Section 2.4.4.

                  2.6.4    REQUIREMENTS OF THE RESEARCH PLAN. Unless otherwise
agreed by each Party, the Research Plan must be consistent with the terms in
Article III and this Agreement generally.

         2.7 EXTENSION OF RESEARCH TERM. [*] days prior to the expiration of the
initial Research Term, the JRC shall discuss the possibility of extending the
Research Program and correspondingly the Research Term. In such event, if the
Parties do not reach agreement on an extension of the Research Term prior to the
expiration of the initial Research Term, then the expiration date for the
initial Research Team will be extended for [*] days, in order to continue
negotiation of the terms and conditions for an extension of the Research Term,
if any.

         2.8 INFORMATION AND REPORTS. During the Research Term, each Party shall
provide to the other, through the JRC, a written report summarizing the progress
of its activities and performance of the Research Program, and including data
and information pertaining to assays, protocols and procedures developed for use
with the Cytometrix(TM) Hepatotoxicity Module, and other information and
Technology as otherwise provided in the applicable Research Plan. Unless
otherwise agreed, such reports shall be due thirty (30) days after the end of
each calendar quarter and after the end of the Research Term. Upon the written
request of a Party, the other Party shall provide that requesting Party with raw
data generated by or on behalf of such other Party within the Collaboration
Technology and Collaboration Knowledge, to the extent not previously provided
hereunder. Without limiting the foregoing, each Party shall disclose to the
other Party, any and all Collaboration Technology and Collaboration Knowledge,
including any discoveries or inventions made by such Party in the scope of the
Research Program or pursuant to carrying out the Research Program, with
significant discoveries or advances being communicated as soon as practical
after such Collaboration Technology or Collaboration Knowledge is developed.

              ARTICLE III - CONTRIBUTIONS TO THE RESEARCH PROGRAM

         3.1 FTES. In its conduct of its activities under the Research Program
and unless otherwise mutually agreed in writing or determined by the JRC, each
Party shall assign the number of FTEs to the Research Program as follows: CK
shall commit [*] FTEs during each Contract Year to perform activities under the
Research Program in accordance with the

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Research Plan then in effect, and AZ shall commit [*] FTEs during the Research
Term to perform activities under the Research Program in accordance with the
Research Plan then in effect. For clarity, AZ has agreed to fund during each
Contract Year of the Research Term [*] of the FTEs committed by CK, as described
in Section 6.1.

         3.2 COMPOUNDS AND COMPOUND DATA.

                  3.2.1    AZ shall identify the AZ Compounds to be used in the
Research Program, and shall provide to CK the AZ Compounds in reasonable
quantities, but at least [*] for each AZ Compound. For each AZ Compound, AZ
shall provide the information, to the extent such information exists on the
Effective Date, contemplated by the version of EXHIBIT 1.4 attached to this
Agreement as of the Effective Date (which information, it is understood, may be
different for Proprietary and Public AZ Compounds). In addition to the
information on EXHIBIT 1.4, for each AZ Compound, AZ shall provide compound
purity and analytical and quality control data and procedures, to the extent
such information exists on the Effective Date. AZ is not required to provide [*]
for any Proprietary AZ Compounds. During the Research Term, AZ may include
additional Compounds as AZ Compounds upon written notice to CK or by mutual
written agreement of the Parties. For each such AZ Compound, AZ shall provide
the AZ Compound Data on EXHIBIT 1.4 and the other AZ Compound Data required
pursuant to this Section 3.2.1, to the extent such information exists at the
time such AZ Compound is added.

                  3.2.2    CK shall identify the CK Compounds to be used in the
Research Program, and make available for use in the Research Program, the CK
Compounds in reasonable quantities, but at least [*] for each CK Compound. For
each CK Compound, CK shall provide the information, to the extent such
information exists on the Effective Date, contemplated by the version of EXHIBIT
1.11 attached to this Agreement as of the Effective Date (which information, it
is understood, may be different for Proprietary and Public CK Compounds). In
addition to the information on EXHIBIT 1.11, for each CK Compound, CK shall
provide compound purity and analytical and quality control data and procedures,
to the extent such information exists on the Effective Date. CK is not required
to provide [*] for any Proprietary CK Compounds. During the Research Term, CK
may include additional Compounds as CK Compounds upon written notice to AZ or by
mutual written agreement of the Parties. For each such CK Compound, CK shall
provide the CK Compound Data on EXHIBIT 1.11 and other CK Compound Data required
pursuant to this Section 3.2.2, to the extent such information exists at the
time such CK Compound is added.

                  3.2.3    Each Party's rights with respect to the Compounds and
Compound Data delivered under this Agreement are as set forth in Section 5.3.

                  3.2.4    AZ may remove any Proprietary AZ Compound from use in
the Research Program, upon written notice to CK, if that Proprietary AZ Compound
becomes or is named a Proscribed Compound. EXHIBIT 1.4 shall be amended
accordingly and such Compound no longer shall be an "AZ Compound" for purposes
of this Agreement. Upon CK's receipt of notice that a Compound is a Proscribed
Compound and is being removed as an AZ Compound,

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CK shall, in AZ's sole discretion and at AZ's direction and expense, return or
destroy those removed Proscribed Compounds.

                  3.2.5    CK may remove a Proprietary CK Compound from use in
the Research Program, upon written notice to AZ, if that Proprietary CK Compound
becomes or is named a Proscribed Compound. EXHIBIT 1.11 shall be amended
accordingly and such Compounds no longer shall be "CK Compounds" for purposes of
this Agreement. Upon AZ's receipt of notice that a Compound is a Proscribed
Compound and is being removed as a CK Compound, AZ shall, in CK's sole
discretion and at CK's direction and expense, return or destroy those removed
Proscribed Compounds.

                  3.2.6    For clarity, nothing herein shall be deemed to create
an obligation on behalf of either Party to provide the other Party with
Compounds after the expiration of the Research Term, except that on an ongoing
basis after termination or expiration of the Research Term, AZ shall provide
Proprietary AZ Compounds to CK in specific amounts under the conditions
described in this Section 3.2.6 for the purpose of enabling CK to [*]. AZ shall
provide Proprietary AZ Compounds on the limited basis described herein in
accordance with the restrictions set forth in Section 3.2.7, Section 5.3 and
other reasonable and customary terms, provided the amount of payment for those
Proprietary AZ Compounds shall not exceed AZ's documented direct and reasonably
allocable indirect costs in obtaining such Compounds for any reason.

                  3.2.7    AZ's obligations under Section 3.2.6 shall extend for
no longer than [*] years after the date of expiration or termination of the
Research Term, but shall cease immediately upon termination of this Agreement
under Section 8.2.1 for CK's material breach or upon termination of this
Agreement under Section 8.2.3 for lack of feasibility.

                  3.2.8    AZ represents and warrants that no AZ Compound on
EXHIBIT 1.4 is, as of the Effective Date, a Proscribed Compound. CK represents
and warrants that no CK Compound on EXHIBIT 1.11 is, as of the Effective Date, a
Proscribed Compound.

         3.3 DELIVERABLES. CK shall deliver or otherwise make available to AZ
the Deliverables, as defined in EXHIBIT 1.23. The timing, form and manner of
delivery are set forth on the Research Plan, including which of the software
components of the Cytometrix(TM) Hepatotoxicity Module or other Deliverables
will be delivered in source code form and which in object code form. The
Research Plan also sets forth the infrastructure and instrumentation required
for use of the Cytometrix(TM) Hepatotoxicity Module, and objectives for
development, delivery and functionality of the Cytometrix(TM) Hepatotoxicity
Module, including parameters for expandability and flexibility.

         3.4 EVALUATION OF CYTOMETRIX(TM) HEPATOTOXICITY MODULE. After the
prototype Cytometrix(TM) Hepatotoxicity Module is installed at the CK Facility
and used in connection with CK's infrastructure and instrumentation, and then
again after the Cytometrix(TM) Hepatotoxicity Module is installed at the AZ
Facility and used in connection with AZ's infrastructure and instrumentation,
the Parties jointly shall perform mutually agreed testing and other evaluation

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procedures to determine whether the Cytometrix(TM) Hepatotoxicity Module meets
the Performance Criteria. If the Parties disagree as to whether the Performance
Criteria have been met, then the Parties shall cooperate to resolve any
disagreement. Where resolution is within the scope of the then-existing Research
Plan, the Parties shall cooperate to resolve the disagreement first under
Section 2.4 through the JRC, then under Section 2.5 through the JSC, and then
pursuant to Section 10.2. Where resolution is outside the scope of the
then-existing Research Plan, the Parties shall cooperate to resolve the
disagreement under Section 2.5 through the JSC, and then pursuant to Section
10.2.

                  3.5 TECHNOLOGY AND DELIVERY. AZ shall use diligent efforts to
make available for disclosure and delivery to CK, and CK shall use diligent
efforts to make available for disclosure and delivery to AZ, any and all
Technology that is (a) Controlled by the disclosing Party, (b) known to the
disclosing Party's personnel responsible for the Research Program or to
individuals that report to such personnel, and (c) is either reasonably required
or known to be useful to undertaking the activities under the Research Program
or performing the obligations required and activities contemplated under this
Agreement, whether such Technology arises out of Exempt Activities or otherwise
(such Technology, "RELEVANT TECHNOLOGY"). Relevant Technology includes AZ
Knowledge, CK Knowledge, AZ Background Technology and CK Background Technology.
Notwithstanding the foregoing, Relevant Technology shall exclude a Party's
Technology to the extent that disclosure of that Technology would materially
compromise an ongoing drug discovery or development program conducted by or on
behalf of that Party. Relevant Technology shall be disclosed in accordance with
this Section 3.5 below. Such disclosure shall occur within [*] months from the
time the disclosing Party's personnel responsible for the Research Program or
individuals that report to such personnel become aware of such Relevant
Technology.

                  3.5.1    If a disclosing Party deems Relevant Technology to be
AZ Background Technology or CK Background Technology, as applicable, then prior
to disclosing that Relevant Technology to the other Party hereunder, the
disclosing Party shall provide to the JRC a summary of that Relevant Technology,
in sufficient detail to determine whether that Relevant Technology is AZ
Background Technology or CK Background Technology, as applicable. The JRC will
confirm that such Relevant Technology is AZ Background Technology or CK
Background Technology; provided that it is not required to do so to the extent
the Relevant Technology consists of General Methods; and provided further and
notwithstanding the foregoing that the JRC is required to agree that Relevant
Technology is AZ Background Technology or CK Background Technology to the extent
it consists of a type of Technology already similar to that within CK Background
Technology or AZ Background Technology.

                  3.5.2    If the JRC confirms that Relevant Technology is AZ
Background Technology or CK Background Technology, as applicable, then the Party
to receive such Technology hereunder shall promptly notify the disclosing Party,
within [*] business days after confirmation by the JRC, if it does not wish
to receive such Relevant Technology; and provided further that AZ may not
decline to receive Relevant Technology to the extent that Relevant Technology is
reasonably necessary for the CHM to meet the Performance Criteria. The Parties
may agree that certain Technology should be disclosed in a different form or
manner

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(e.g., in object code rather than in source code), as appropriate. Exhibit 1.3
or Exhibit 1.10, as applicable, shall be amended to include such additional AZ
Background Technology or CK Background Technology.

                  3.5.3    If the JRC does not confirm such Relevant Technology
as AZ Background Technology or CK Background Technology and the receiving Party
has declined to receive such Relevant Technology, then the disclosing Party has
no obligation to disclose such Relevant Technology, and if the disclosing Party,
at its option, discloses such Technology, then it will be deemed AZ Knowledge or
CK Knowledge, as appropriate.

                      ARTICLE IV - EXCLUSIVITY OF EFFORTS

         4.1 EXCLUSIVITY OF EFFORTS. Except for the Exempt Activities, during
[*], neither AZ nor CK shall collaborate or otherwise cooperate with any Third
Party to, and neither AZ nor CK shall, perform research or development
specifically directed to the Field, other than under the Research Program. For
the avoidance of doubt, during [*], nothing herein shall restrict either Party
in any way from [*]. It is understood that even if the foregoing exclusivity
provision terminates or expires, each Party shall continue diligently to
endeavor to fulfill all of its obligations hereunder during the remainder of the
term of the Agreement, including those obligations directed at enabling the
Cytometrix(TM) Hepatotoxicity Module to meet the Performance Criteria.

         4.2 PERMITTED ACTIVITIES. Nothing herein shall be deemed to prevent or
restrict AZ's or CK's rights to undertake and perform the Exempt Activities and
CK's right to develop and commercialize the CM System for any and all
applications outside of the Field. Likewise, nothing herein shall be deemed to
prevent or restrict either Party's right to develop or commercialize methods of
or systems for in vitro prediction of hepatotoxicity when those methods or
systems are outside of the Field; provided that the Party is complying with its
obligations hereunder with respect to Confidential Information and Intellectual
Property Rights of the other Party.

                    ARTICLE V - OWNERSHIP AND LICENSE GRANTS

         5.1 OWNERSHIP.

                  5.1.1    AZ OWNERSHIP. AZ owns and shall own all right, title
and interest in and to the AZ Background Technology, AZ Compounds, AZ Compound
Data, AZ Knowledge and all Intellectual Property Rights therein. As between the
Parties, AZ has the exclusive right, at its sole discretion and expense, to
apply for, register, maintain and enforce Patents and other

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Intellectual Property Rights as it deems appropriate with respect to any of the
AZ Background Technology, AZ Compounds, AZ Compound Data and AZ Knowledge.

                  5.1.2    CK OWNERSHIP. CK owns and shall own all right, title
and interest in and to the CM System, CK Compounds, CK Compound Data, CK
Background Technology, CK Knowledge and all Intellectual Property Rights
therein. Further, CK owns and shall own all right, title and interest in and to
the Collaboration Technology and Collaboration Knowledge, and in and to the
Cytometrix(TM) Hepatotoxicity Module, and all Intellectual Property Rights
therein. Accordingly, AZ hereby assigns to CK any and all right, title and
interest in and to the Collaboration Technology, Collaboration Knowledge, and
the Cytometrix(TM) Hepatotoxicity Module, together in each case with all
Intellectual Property Rights therein that AZ may acquire as a result of its
performance of the Research Program or activities under the Pilot License (1)
except that AZ shall not assign those Improvements (and the Intellectual
Property Rights therein) owned by AZ pursuant to Section 5.1.3, and (2) the
foregoing assignment is subject to the licenses granted by CK to AZ under
Sections 5.4.2, 5.4.3, 5.5, 5.6 and 5.7. As between the Parties, CK has the
exclusive right, at its sole expense, to apply for, register, maintain and
enforce Patents and other Intellectual Property Rights as it deems appropriate
with respect to any of the CK Background Technology, CK Knowledge, CK Compounds,
CK Compound Data, Cytometrix(TM) Hepatotoxicity Module, Collaboration
Technology, Collaboration Knowledge and Improvements owned by CK under Section
5.1.3. AZ agrees to execute documents, render such reasonable assistance, and
take such other reasonable action at CK's expense as CK may reasonably request
to apply for, register, perfect, confirm, and protect the rights it assigns to
CK under this Section 5.1.2.

                  5.1.3    IMPROVEMENTS. Without limiting Section 5.1.2, (i) all
AZ Improvements are owned by AZ (subject to the licenses granted to CK under
Section 5.1.4), and (ii) all other Improvements to the Cytometrix(TM)
Hepatotoxicity Module arising during the Pilot License Term, whether created
jointly or solely by one of the Parties, are owned by CK. Accordingly, AZ hereby
assigns to CK any and all right, title and interest in and to any Improvements
owned by CK pursuant to this Section 5.1.3. AZ agrees to execute documents,
render such reasonable assistance, and take such other reasonable action at CK's
expense as CK may reasonably request to apply for, registered, perfect, confirm
and protect the rights it assigns to CK under this Section 5.1.3. After the end
of the Pilot License Term, Improvements to the Cytometrix(TM) Hepatotoxicity
Module made by CK shall be owned by CK and Improvements to the Cytometrix(TM)
Hepatotoxicity Module made by AZ shall be owned by AZ. For avoidance of doubt,
neither Party has any right, license or access to Improvements made by the other
Party after the end of the Pilot License Term.

                  5.1.4    LICENSE TO AZ IMPROVEMENTS. AZ agrees to grant and
hereby grants CK a worldwide, perpetual, irrevocable, non-exclusive right and
license, including the right to grant and authorize sublicenses, under AZ
Intellectual Property Rights in AZ Improvements.

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         5.2 LICENSES TO BACKGROUND TECHNOLOGY.

                  5.2.1    AZ GRANT TO CK. AZ agrees to grant and hereby grants
CK a non-exclusive, worldwide, royalty-free right and license, under AZ
Intellectual Property Rights in AZ Background Technology, to use AZ Background
Technology solely for the purposes of CK performing the Research Program during
the Research Term. Upon completion of the Research Program and CK delivering to
AZ the items required to be provided under the Research Plan, and upon the
Cytometrix(TM) Hepatotoxicity Module, as installed at the CK Facility, meeting
the Performance Criteria, AZ agrees to grant and hereby grants to CK a
non-exclusive, worldwide, royalty-free, perpetual right and license, limited to
the Field, under AZ Intellectual Property Rights in AZ Background Technology,
for CK to practice AZ Background Technology in the production, use and
modification of the Cytometrix(TM) Hepatotoxicity Module and Improvements
thereof. For [*] years following the expiration of the Research Term, CK's
license under this Section 5.2.1 shall be restricted solely for internal
research purposes, which internal research purposes include CK's use of the
Cytometrix(TM) Hepatotoxicity Module in its research collaborations with any
collaborator when required to advance the research collaboration or CK's
internal drug discovery and development programs; provided that the
Cytometrix(TM) Hepatotoxicity Module is not the predominant component of the
relationship between CK and such collaborator and provided further that in any
research collaboration the Cytometrix(TM) Hepatotoxicity Module is used for
activities such as to inform lead generation or to triage hits and leads rather
than solely for activities such as screening entire libraries of compounds. For
the avoidance of doubt however, such internal research use shall expressly
exclude exploitation of the Cytometrix(TM) Hepatotoxicity Module as a commercial
product or service (e.g., as a service bureau), except as expressly provided
above. In connection with such internal research purposes, CK may authorize
collaborators and others to access and use of the AZ Background Technology at
CK's facility. After the first [*] years after the Research Term, CK is free to
sublicense its rights under this Section 5.2.1 without restriction.

                  5.2.2    CK GRANT TO AZ. CK agrees to grant and hereby grants
AZ a non-exclusive, worldwide, royalty-free right and license, outside the
Prohibited Field and limited to the Field, under CK Intellectual Property Rights
in CK Background Technology, to use CK Background Technology solely for the
purposes of AZ performing the Research Program during the Research Term. To the
extent that CK Background Technology is software and is delivered to AZ in
object code form, AZ shall not reverse engineer or otherwise attempt to derive
source code from that software.

         5.3 LICENSES TO COMPOUNDS AND COMPOUND DATA.

                  5.3.1    AZ GRANT TO CK.

                           (a) AZ agrees to grant and hereby grants CK a
non-exclusive, worldwide, royalty-free license under AZ Intellectual Property
Rights in AZ Compounds and AZ Compound Data in the Field (a) during the Research
Term, solely in connection with CK's performance of the Research Program and in
accordance with the Research Plan, (b) during and after the Research Term, to
perform purity analysis, and (c) after the Research Term (1) for CK to

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[*] thereof, and (2) as expressly provided in Section 7.3. CK agrees that
although it may perform purity analysis as set forth above, neither it nor any
of its employees, agents or assigns shall [*], the AZ Compounds proprietary to
AZ without the prior written consent of AZ. For [*] years following the
expiration of the Research Term, CK's license under this Section 5.3.1 shall be
restricted solely for internal research purposes. For purposes of this
Agreement, internal research purposes include CK's use of the Cytometrix(TM)
Hepatotoxicity Module in its research collaborations with any collaborator when
required to advance the research collaboration or CK's internal drug discovery
and development programs; provided that the Cytometrix(TM) Hepatotoxicity Module
is not the predominant component of the relationship between CK and such
collaborator and provided further that in any research collaboration the
Cytometrix(TM) Hepatotoxicity Module is used for activities such as to inform
lead generation or to triage hits and leads rather than solely for activities
such as screening entire libraries of compounds. For the avoidance of doubt
however, such internal research use shall expressly exclude exploitation of the
Cytometrix(TM) Hepatotoxicity Module as a commercial product or service (e.g.,
as a service bureau), except as expressly provided above. In connection with
such internal research purposes, CK may authorize collaborators and others to
access and use of the AZ Compounds and Compound Data at CK's facility. After the
first [*] years after the Research Term, CK is free to sublicense its rights to
the AZ Compound Data for the purpose of [*] thereof under this Section 5.3.1(a).

                           (b) CK shall maintain written records regarding the
use of AZ Compounds and AZ Compound Data, and upon reasonable advance written
notice and during regular business hours, CK shall permit AZ or its authorized
designee to access CK Facilities, and to review required documentation to
determine compliance with the terms of this license.

                  5.3.2    CK GRANT TO AZ. CK agrees to grant and hereby grants
AZ a non-exclusive, worldwide, royalty-free license, but excluding all
activities in the Prohibited Field, under CK Intellectual Property Rights in CK
Compounds and CK Compound Data in the Field (a) during the Research Term, solely
in connection with AZ's performance of the Research Program and in accordance
with the Research Plan, (b) during and after the Research Term, to perform
purity analysis, and (c) after the Research Term (1) for AZ to [*] thereof, and
(2) as expressly provided in Section 7.3. AZ agrees that although it may perform
purity analysis as set forth above, neither it nor any of its employees, agents
or assigns shall [*], the CK Compounds proprietary to CK without the prior
written consent of CK.

                  5.3.3    PUBLIC COMPOUNDS AND PUBLIC COMPOUND DATA. The
Parties acknowledge that, with respect to any CK Compound or AZ Compound that is
designated as Public on EXHIBIT 1.11 or EXHIBIT 1.4 (as applicable) (together
with corresponding CK Compound Data or AZ Compound Data), nothing in this
Agreement will be construed to restrict either Party in any manner from using,
disclosing, reproducing, or obtaining from other sources such Compounds or such
data and information.

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         5.4 KNOWLEDGE LICENSES.

                  5.4.1    AZ KNOWLEDGE. AZ grants CK an automatic, worldwide,
non-exclusive, royalty-free, perpetual and irrevocable license to use, reproduce
and otherwise exploit AZ Knowledge. The license granted in this Section 5.4.1
includes the right to disclose such AZ Knowledge to, and authorize further
disclosure and use by, Third Parties in connection with ongoing discovery,
development, collaboration and marketing or other activities. Disclosure to
Third Parties must be under appropriate terms and conditions including
restrictions equivalent to any in this Section 5.4.1 and, to the extent any AZ
Knowledge also is AZ's Confidential Information, confidentiality provisions
substantially equivalent to those in this Agreement.

                  5.4.2    CK KNOWLEDGE. CK grants AZ an automatic, worldwide,
non-exclusive, royalty-free, perpetual and irrevocable license, to use,
reproduce and otherwise exploit CK Knowledge, solely for applications outside
the Prohibited Field. The license granted in this Section 5.4.2 includes the
right to disclose such CK Knowledge to, and authorize further disclosure use by,
Third Parties in connection with ongoing discovery, development, collaboration
and marketing or other activities. Disclosure to Third Parties must be under
appropriate terms and conditions including restrictions equivalent to any in
this Section 5.4.2 and, to the extent any CK Knowledge also is CK's Confidential
Information, confidentiality provisions substantially equivalent to those in
this Agreement.

                  5.4.3    COLLABORATION KNOWLEDGE. During and after the
Research Term, CK grants AZ an automatic, worldwide, non-exclusive,
royalty-free, perpetual and irrevocable license, to use, reproduce and otherwise
exploit Collaboration Knowledge, solely for applications outside the Prohibited
Field. The license granted in this Section 5.4.3 includes the right to disclose
such Collaboration Knowledge to, and authorize further disclosure use by, Third
Parties in connection with ongoing discovery, development, collaboration and
marketing or other activities by or on behalf of AZ. Disclosure to Third Parties
of Collaboration Knowledge licensed under this Section must be under appropriate
terms and conditions including restrictions equivalent to any in this Section
5.4.3 and, to the extent any such Collaboration Knowledge also is CK's
Confidential Information, confidentiality provisions substantially equivalent to
those in this Agreement.

         5.5 COLLABORATION TECHNOLOGY LICENSES.

                  5.5.1    CYTOMETRIX(TM) HEPATOTOXICITY MODULE MEETS
PERFORMANCE CRITERIA. Upon the Cytometrix(TM) Hepatotoxicity Module meeting the
Performance Criteria at the AZ Facility (as determined pursuant to Section 3.4),
CK agrees to grant and hereby grants to AZ a worldwide, perpetual,
non-transferable (except in accordance with Section 10.4), non-exclusive right
and license, outside the Prohibited Field, under CK Intellectual Property Rights
in Collaboration Technology. The rights granted in this Section 5.5.1 do not
extend to the use, development or exploitation of Collaboration Technology in
the Field, which restriction is for a period not to exceed [*] years following
the Pilot License Term (subject to earlier termination of the foregoing
restriction pursuant to Section 8.3.2(b) for termination of the Agreement under
Section 8.2.1).

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                  5.5.2    OPTION FOR LICENSES WHEN CYTOMETRIX(TM)
HEPATOTOXICITY MODULE FAILS TO MEET PERFORMANCE CRITERIA OR AGREEMENT IS
TERMINATED PURSUANT TO SECTION 8.2.3. If either (1) the Parties determine that
the Cytometrix(TM) Hepatotoxicity Module has not met the Performance Criteria
(as determined pursuant to Section 3.4) or (2) this Agreement is terminated
prior to the end of the Pilot License Term pursuant to Section 8.2.3 (Lack of
Feasibility), then AZ may, at its option, obtain a license to Collaboration
Technology as set forth in this Section 5.5.2. Upon the occurrence of either of
the conditions outlined above, AZ may provide notice to CK of its desire to
obtain such a license, and the Parties will negotiate in good faith an amount to
be paid for the license, but not to exceed US$[*]. Upon payment of such
amount, CK agrees to grant and hereby grants to AZ a worldwide, perpetual,
non-exclusive, non-transferable (except in accordance with Section 10.4),
irrevocable right and license under CK Intellectual Property Rights in
Collaboration Technology, solely for applications outside the Prohibited Field.

         5.6 PILOT LICENSE AND SUPPORT.

                  5.6.1    PILOT LICENSE. Upon the Cytometrix(TM) Hepatotoxicity
Module meeting the Performance Criteria at the CK Facility, CK agrees TO grant
and hereby grants AZ, during the Pilot License Term, a worldwide, non-exclusive,
non-transferable (except in accordance with Section 10.4), royalty-free right
and license in the Field (but excluding all activities or applications in the
Prohibited Field), under CK Intellectual Property Rights in CK Knowledge, CK
Background Technology and Collaboration Technology, to use the Cytometrix(TM)
Hepatotoxicity Module, together with any Improvements owned by CK, solely for
its own internal research at the AZ Facility (the "PILOT LICENSE"). To the
extent that a software component of the Cytometrix(TM) Hepatotoxicity Module is
delivered in object code form, the license granted extends only to the object
code form and not the source code form of that software, and AZ shall not, and
shall not permit any Third Party to, reverse engineer or decompile, or otherwise
attempt to derive source code from that software component. To the extent that a
software component of the prototype version of the Cytometrix(TM) Hepatotoxicity
Module is delivered in source code form, AZ shall not modify that software
component and the use and disclosure thereof is subject to the requirements of
Section 7.1; however, it is understood that AZ may compile such source code to
create the object code derivative thereof.

                  5.6.2    SUPPORT. CK shall provide technical support as set
forth on EXHIBIT 5.6.2 with respect to the Cytometrix(TM) Hepatotoxicity Module.
For clarity, CK has no support obligations other than as expressly set forth on
that EXHIBIT 5.6.2.

         5.7 AZ FULL LICENSE TO CYTOMETRIX(TM) HEPATOTOXICITY MODULE.

                  5.7.1    LICENSES. Upon the Cytometrix(TM) Hepatotoxicity
Module meeting the Performance Criteria at the AZ Facility, and upon payment by
AZ of the Milestone Payment under Section 6.2 and the Annual License Renewal
Fees thereafter, CK agrees to grant and hereby grants AZ, during the Full
License Term, a worldwide, non-exclusive, non-transferable (except in accordance
with Section 10.4), royalty-free right and license in the Field (but excluding
all activities or applications in the Prohibited Field), under CK Intellectual
Property

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
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Rights in CK Knowledge, CK Background Technology and Collaboration Technology,
(i) to use the Cytometrix(TM) Hepatotoxicity Module, and any Improvements (to
the extent such Improvements are in the Field, owned by CK, and in existence as
of the first day of the Full License Term), for its own internal research and
development program at any and all AZ Facilities, (ii) to make and distribute a
reasonable number of copies of the Cytometrix(TM) Hepatotoxicity Module,
including a reasonable number of backup copies thereof in connection with the
exercise of the rights set forth in clause (i) above, and (iii) to create
derivative works of the Cytometrix(TM) Hepatotoxicity Module only for the
purpose of maintaining and supporting AZ's authorized use thereof and to the
extent those derivative works are within the scope of the Deliverables described
in EXHIBIT 1.23 and of the following activities: refining the model by including
extra compounds, modifying existing assays, and incorporating additional assays
(the foregoing licenses in clauses (i) through (iii) above together are the
"FULL LICENSE"). To the extent that a software component of the Cytometrix(TM)
Hepatotoxicity Module is delivered in object code form, the license granted
extends only to the object code form and not the source code form of that
software, and AZ shall not, or permit any Third Party to, reverse engineer or
decompile, or otherwise attempt to derive source code from that software
component.

                  5.7.2    RECORDS. AZ shall maintain records regarding the use
of the Cytometrix(TM) Hepatotoxicity Module, and upon reasonable advance written
notice and during regular business hours, AZ shall permit CK or its authorized
designee to access AZ Facilities, and to review required documentation to
determine compliance with the terms of this license.

         5.8 NO IMPLIED LICENSES. Each Party acknowledges that the rights and
licenses granted under this Article V are limited to the scope expressly granted
herein, and all rights not so granted are hereby expressly reserved. Nothing in
this Agreement shall limit in any respect the right of either Party to use its
own Technology to conduct research and development with respect to and
commercialize products or technologies outside the Field. Consistent with the
foregoing, it is understood that licenses to Collaboration Technology and
licenses to Collaboration Knowledge do not include or incorporate any right or
license to CK Background Technology; exploitation of Collaboration Technology or
Collaboration Knowledge may require a license to the underlying subject matter.
It is further understood that licenses to Collaboration Technology and licenses
to Collaboration Knowledge do not extend to the Cytometrix(TM) Hepatotoxicity
Module; exploitation of Collaboration Technology or Collaboration Knowledge that
is not independent of the Cytometrix(TM) Hepatotoxicity Module may require a
separate license to such Cytometrix(TM) Hepatotoxicity Module for use thereof.

                             ARTICLE VI - PAYMENTS

         6.1 RESEARCH PROGRAM FUNDING.

                  6.1.1    FTE FUNDING. Each Party shall assume responsibility
for its own costs and expenses for its conduct of activities under the Research
Program with the sole exception that AZ shall fund, quarterly in advance, during
the Research Term (whether or not the Pilot License Term has begun), [*] of the
[*] FTEs to be committed by CK for the performance of the Research Program, at
the FTE rate set forth below. In total, subject to any

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Additional Items, the annual FTE funding to be provided by AZ to CK under this
Section 6.1.1 shall not exceed US$[*], unless otherwise separately agreed by the
Parties in writing.

                  6.1.2    The FTE rate is [*] dollars (US$[*]) per year, which
includes all employee-related compensation, including salaries, wages, bonuses,
benefits, profit sharing, stock option grants, and FICA costs, travel, meals and
entertainment (except in connection with reimbursed travel described below),
training, recruiting, relocation, operating supplies, postage, communications
expense, professional dues, depreciation, repairs and maintenance, rent and
lease, utilities, taxes, facilities and space costs, and computer service
charges. The FTE rate excludes the cost of items identified as Additional Items
as described in Section 6.1.2. AZ shall have no obligation to fund FTEs after
the Research Term. During the Pilot License Term, the direct out-of-pocket
expenses of travel and lodging incurred by CK personnel while required to be on
site pursuant to the Research Program will be reimbursed by AZ to CK; provided
that the CK employees are away from the facility at which those personnel
typically work and the duration of the trip is for an extended period of time
(i.e., more than three (3) working days). AZ shall reimburse CK for such direct
out-of-pocket expenses incurred by CK that are within the AZ travel guidelines
within sixty (60) days after receipt by AZ of a correct invoice with supporting
documentation from CK that identifies the name of the employee, the date of the
trip(s) taken and the total dollar amount incurred with sufficient detail to
determine amounts incurred for transportation, meals, lodging, and related
incidentals.

                  6.1.3    ADDITIONAL EXPENSES. From time to time, the JRC may
identify additional items or subject matter required to carry out the Research
Program, including additional licenses under Intellectual Property Rights of
Third Parties, extraordinary equipment or specialized reagents or any other
external costs (each such item an "ADDITIONAL ITEM"). In each instance, the JRC
will apportion the cost of Additional Items according to the following
principles: (i) if the Additional Item will be consumed fully during the
Research Term and will be used only for work in the Field, the expense will be
borne equally by CK and AZ; (ii) if the Additional Item will not be fully
consumed during the Research Term, or will be used during the Research Term
outside the Field by either CK or AZ, the expense will be apportioned between CK
and AZ in a manner that equitably reflects the relative value to the Research
Program of such Additional Item and for applications outside of the Research
Program for the Party(ies) that will have rights thereto. For clarity, neither
Party shall have any obligation to reimburse the other Party with respect to
amounts incurred by the other Party with respect to any Additional Item, except
as agreed by the JRC. Unless otherwise mutually agreed, during the Research
Program, CK shall be the contracting Party with respect to any such Additional
Items and shall directly pay for any such Additional Items. If there are cost
apportionment concerns regarding Additional Items during the Pilot Program,
responsibility for such costs shall be resolved by the JRC. All equipment
acquired during the Pilot Phase at the AZ facility shall become the property of
AZ.

         6.2 MILESTONE PAYMENT. Upon completion of the Research Program, after
CK has delivered to AZ the items required to be provided under the Research
Plan, and upon the Cytometrix(TM) Hepatotoxicity Module, as installed at the AZ
Facility, meeting the Performance Criteria (as determined pursuant to Section
3.4), a milestone payment of [*] USD dollars

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(US$[*]) ("MILESTONE PAYMENT") will become due and payable. AZ shall pay the
Milestone Payment within thirty (30) days following receipt of an invoice from
CK, generated in accordance with the foregoing.

         6.3 LICENSE RENEWAL FEES.

                  6.3.1    On each of the first [*] annual year anniversaries of
the date on which the Full License is first effective, AZ shall pay to CK an
annual license renewal fee of [*] dollars (US$[*]) ("ANNUAL LICENSE RENEWAL
FEE") for continuance of the Full License, within thirty (30) days after CK's
invoice. On each of the [*] through [*] annual year anniversaries of the date on
which the Full License is first effective, AZ has the option to (i) pay to CK
the annual license renewal fee of [*] dollars (US$[*]) for continuance of the
Full License, within thirty (30) days after CK's invoice or the end of a
Contract Year, or (ii) cease payments and terminate the Full License. Upon
either (i) a CK Change of Control event that arises due to CK's merger with,
acquisition by, or other similar transaction with a pharmaceutical company with
annual sales in excess of US$1 billion that occurs at any time during the Full
License, or (ii) payment of the [*] such annual license renewal fee in
accordance with this Agreement, the Full License granted to AZ pursuant to
Section 5.7 shall become fully paid up and perpetual.

                  6.3.2    To the extent CK licenses the use of the
Cytometrix(TM) Hepatotoxicity Module to any Third Party for an amount that is
leSS than the amount owed by AZ under Section 6.3.1, AZ's obligation to pay to
CK an Annual License Renewal Fee of US$[*] shall be reduced to the equivalent or
less than the lowest amount that such Third Party is obligated to pay.

         6.4 TAXES. CK will be responsible for paying any and all taxes and
assessments relating to any income or other consideration that CK derives from
this Agreement. All payments made by AZ to CK under this Agreement shall be made
without any deduction or withholding for or on account of any taxes. Withholding
taxes, if any, must be paid by AZ to the relevant taxing authority on behalf of
CK.

         6.5 TOTAL OBLIGATION. The Annual License Renewal Fees and the Milestone
Payment payable by AZ to CK pursuant to this Agreement, taken together with the
funding to be provided by AZ to CK and other amounts payable pursuant to this
Article 6, represent all of AZ's financial obligations to CK hereunder. CK shall
not be entitled to any additional compensation or remuneration from AZ under
this Agreement. The foregoing will not be construed as a limit on fees due for
termination, damages for breach, or obligations of indemnity.

                         ARTICLE VII - CONFIDENTIALITY

         7.1 CONFIDENTIAL INFORMATION.  Except to the extent expressly
authorized by this Agreement or otherwise  agreed in writing,  the Parties agree
that, for ten (10) years after the expiration of the Research Term, the
receiving  Party shall keep  confidential  and shall not publish or  otherwise
disclose or use for any purpose  other  than  as  provided  for  in  this
Agreement  any   Confidential Information of the other Party. "CONFIDENTIAL
INFORMATION" means (i) any

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AZ AND CK CONFIDENTIAL

prototypes provided by CK under this Agreement or in connection with the
Research Program; (ii) information disclosed in tangible form that is marked
"confidential" or with other similar designation to indicate its confidential or
proprietary nature; and (iii) information disclosed orally, where such
information is either (A) of the type usually considered confidential or
proprietary in the biopharmaceutical industry or (B) otherwise indicated to be
confidential or proprietary by the disclosing Party at the time of the initial
disclosure thereof and confirmed in writing as confidential or proprietary by
the disclosing Party within thirty (30) days after such disclosure.
Notwithstanding the foregoing, Confidential Information shall not include
information that, in each case as demonstrated by written documentation:

                           (a) was already or becomes lawfully known to the
receiving Party, other than under an obligation of confidentiality, at the time
of disclosure;

                           (b) can be demonstrated by documentation or other
competent proof to have been in the receiving Party's or its Affiliates'
possession prior to disclosure by the disclosing Party;

                           (c) is subsequently received by the receiving Party
or its Affiliates from a Third Party who is not bound by any obligation of
confidentiality with respect to that information;

                           (d) is generally made available to Third Parties by
the disclosing Party without restriction on disclosure;

                           (e) was generally available to the public or
otherwise part of the public domain at the time of its disclosure to the
receiving Party or became generally available to the public or otherwise part of
the public domain after its disclosure and other than through any act or
omission of the receiving Party in breach of this Agreement; or

                           (f) was developed by the receiving Party without
reference to any information or materials disclosed or provided by the
disclosing Party.

         7.2 PERMITTED DISCLOSURES. Notwithstanding Section 7.1 above, each
Party may disclose Confidential Information of the other Party as follows:

                           (a) to Third Parties (and to Affiliates) under
appropriate terms and conditions including confidentiality provisions
substantially equivalent to those in this Agreement in connection with obtaining
financing and other business activities, such Confidential Information permitted
under this subsection to be disclosed shall be limited to general descriptions
of the activities, technology and findings under this Agreement (including
associations), and shall exclude hepatotoxicity profiles, other than
toxicophoric centers, associated with chemotypes;

                           (b) as is reasonably necessary to exercise the rights
and licenses granted or reserved herein (including the right to grant
sublicenses);

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AZ AND CK CONFIDENTIAL

                           (c) to the extent such disclosure is reasonably
necessary in filing for, registering or maintaining Intellectual Property Rights
in accordance with Section 5.1;

                           (d) as required by law or regulation (including
applicable securities regulations); provided, however, that if a Party is
required by law or regulation to make any such disclosure of the other Party's
Confidential Information it will, except where impracticable for necessary
disclosures, give reasonable advance notice to the other Party of such
disclosure requirement will use its reasonable efforts to secure confidential
treatment of such Confidential Information required to be disclosed; or

                           (e) to the extent mutually agreed to by the Parties.

         7.3 RESTRICTIONS ON DISCLOSURE OF DATA SETS. Notwithstanding anything
to the contrary in this Agreement, AZ agrees that it shall treat as CK's
Confidential Information data sets generated by AZ using the CK Compounds.
Likewise, CK agrees that it shall treat as AZ's Confidential Information data
sets generated by CK using the AZ Compounds. However, CK may disclose those data
sets to CK collaborator(s) under appropriate obligations of confidentiality no
less protective than those for CK's own information. In addition, either Party
may use and disclose such data sets without restriction (a) as aggregated
information and data sets, whether about the proprietary or public AZ Compounds
or CK Compounds, as applicable for purposes of describing the utility of the
Cytometrix(TM) Hepatotoxicity Module and the general nature of the activities
under this Agreement; and (b) individual data sets about public AZ Compounds or
CK Compounds, as applicable, in each case so long as that Party does not
disclose specific [*], other than [*], that could be associated with specific
[*].

         7.4 PRESS RELEASE; CONFIDENTIALITY OF TERMS OF AGREEMENT. Neither Party
shall disclose to any Third Party the terms of this Agreement without the prior
written consent of the other Party, except (a) to advisors and existing and
potential investors on a need to know basis under circumstances that reasonably
ensure the confidentiality thereof, (b) to Third Parties to the extent necessary
to comply with the terms of licenses from Third Parties with respect to a
Party's Confidential Information, (c) to the extent required by law or a court
or other governmental body; provided that in such situation the Party wishing to
disclose the terms gives reasonable advance written notice to the non-disclosing
Party of the proposed disclosure and the reason for such disclosure and uses
reasonable efforts to secure confidential treatment of such disclosed
information. Notwithstanding the foregoing, following the Effective Date, the
Parties shall issue a press release, substantially in the form of EXHIBIT 7.4,
to announce the execution of this Agreement, together with a corresponding
Question & Answer outline for use that has been approved in advance by both
Parties for the purpose of responding to inquiries about the Agreement;
thereafter, each of AZ and CK may each disclose to Third Parties the information
contained in such press release and Question & Answer outline without the need
for further approval by the other. In addition, with the advance review and
prior written approval of the other Party in each instance, each Party is
authorized to issue additional press releases when amounts such as milestone
payments or licensing fees become due under this Agreement.

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    the Commission. Confidential treatment has been requested with respect to
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         7.5 PUBLICATION. Each Party acknowledges the other Party's interest in
publishing the results of the Research Program, obtaining valid patent
protection, and protecting business interests and trade secrets. Consequently,
if (i) CK, its employees, agents or consultants wish to make a publication
related to the CK Compounds or the AZ Compounds (it is understood that CK will
not disclose the identity of the AZ Compounds or other Confidential Information
of AZ without AZ's prior written consent), or (ii) AZ, its employees, agents or
consultants wish to make a publication regarding the use of the Cytometrix(TM)
Hepatotoxicity Module or CM System in any manner, with or without the CK
Compounds (it is understood that AZ will not disclose Confidential Information
of CK without CK's prior written consent), in each case, such Party shall
deliver to the other Party a copy of the proposed written publication or an
outline of an oral disclosure at least thirty (30) days prior to submission for
publication or presentation. The reviewing Party may (a) propose modifications
to the publication for patent reasons or business reasons, (b) delete any trade
secrets or Confidential Information of such Party included in that publication,
or (c) request a reasonable delay in publication or presentation to protect
know-how and patentable subject matter. Once a particular public disclosure has
been approved, either Party may disclose the information contained therein in
subsequent disclosures.

         7.6 OUTSOURCING OF IT TECHNOLOGY SERVICES.

                  7.6.1    RIGHT TO OUTSOURCE. Without limiting the foregoing
confidentiality provisions, during the Pilot License Term and the Full License
Term, AZ shall have the right to appoint a Third Party ("OUTSOURCER") to provide
information technology "outsourcing" services to AZ and its Affiliates that
relates to the subject matter of this Agreement ("OUTSOURCE SERVICES") for the
purposes of enabling AZ to perform under the Agreement or enabling AZ to use
Technology and or information licensed under this Agreement, only on behalf of
AZ and for the purposes permitted under this Agreement. Outsource Services
include loading any software licensed under the Agreement onto equipment owned
or controlled by the Outsourcer, located either at the AZ Facility, an
Outsourcer's premises or at the CK Facility. In connection with an Outsourcer
providing Outsource Services, CK shall permit the Outsourcer to access, operate
and use such software on its equipment in its performance of the Outsource
Services, and shall otherwise permit the Outsourcer, in its performance of the
Outsource Services, to do anything that AZ or its Affiliates are not precluded
from doing under the Agreement that are reasonably connected to the Outsource
Services, such as accessing, operating and using items supplied or licensed
under the Agreement, and receiving and using services provided under the
Agreement.

                  7.6.2    COOPERATION WITH OUTSOURCER. AZ shall provide to CK a
copy of its agreement with any Outsourcer, to the extent relevant to either
Party's activities, rights or obligations under this Agreement. CK shall
reasonably cooperate with any authorized Outsourcer in the Outsourcer's
performance of the Outsource Services. In order to provide Outsource Services to
AZ under this Agreement, it may be necessary for Outsourcer to have access to CK
Confidential Information. Outsourcer shall be bound by terms of confidentiality
no less restrictive than those contained in this Agreement as applied to AZ.

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                       ARTICLE VIII- TERM AND TERMINATION

         8.1 TERM; EXPIRATION. This Agreement will commence upon the Effective
Date and unless terminated as provided in this Article VIII shall continue in
full force and effect until [*] months following payment by AZ of the [*] Annual
License Renewal Fee pursuant to Section 6.3.

         8.2 EARLY TERMINATION.

                  8.2.1    MATERIAL BREACH. At any time during the Term, if a
Party materially breaches this Agreement and does not cure that material breach
within thirty (30) days after written notice from the non-breaching Party, then
upon further written notice the non-breaching Party may terminate this
Agreement. If within thirty (30) days following notice of breach from the
non-breaching Party, the Party allegedly in breach initiates a dispute
resolution procedure in good faith and as permitted under this Agreement for
resolution of the dispute for which termination is being sought and is
diligently pursuing such procedure (including any litigation or arbitration
following therefrom), then termination is effective only if at the conclusion of
the dispute resolution procedure, the initiating Party notifies the other Party
in writing that the termination shall take effect. The non-breaching Party may,
however, withhold or suspend performance of its obligations during the pendency
of such dispute resolution procedure, without being considered to be in breach
of its obligations hereunder, and without liability for having so withheld or
suspended performance. Notwithstanding anything to the contrary in this Section
8.2.1, however, if the breach is a failure to pay amounts due under Sections 6.2
or 6.3, then the licenses granted to AZ by CK shall not continue during pendency
of the dispute.

                  8.2.2    [INTENTIONALLY LEFT BLANK.]

                  8.2.3    MUTUALLY FOR LACK OF FEASIBILITY. If the Parties
mutually determine that installing and implementing the Cytometrix(TM)
Hepatotoxicity Module in a manner that meets the Performance Criteria is not
scientifically or commercially feasible, or if the Parties mutually determine,
after installing the Cytometrix(TM) Hepatotoxicity Module at the AZ Facility,
that it has material deficiencies that cannot reasonably be remedied, then by
mutual written agreement the Parties may terminate this Agreement.

                  8.2.4    BY AZ FOR ITS CONVENIENCE DURING LATER FULL LICENSE
TERM. During the [*] through [*] years of the Full License Term and not before,
and provided that AZ is in compliance with its obligations under this Agreement
and has paid all amounts previously due, for any reason or no reason, AZ may
terminate this Agreement by providing written notice of non-renewal at least
thirty (30) days prior to the date on which the annual renewal license fee would
be due.

                  8.2.5    BY AZ FOR ITS CONVENIENCE PRIOR TO [*] YEAR OF THE
FULL LICENSE TERM. At any time after the Research Term and prior to the [*] year
of the Full License Term, for any reason or for no reason, AZ may terminate this
Agreement by providing written notice at least ninety (90) days prior to such
termination.

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                  8.2.6    BY EITHER PARTY FOR INSOLVENCY. At any time during
the Term, if either Party is subject to an Insolvency Event (defined below),
then the other Party may terminate this Agreement upon thirty (30) days prior
written notice to the other Party. For purposes of the foregoing, an "Insolvency
Event" is any of the following: (i) making a general assignment for the benefit
of creditors; (ii) filing an insolvency petition in bankruptcy (other than a
petition for reorganization); (iii) petitioning for or acquiesces in the
appointment of any receiver, trustee or similar officer to liquidate or conserve
its business or any substantial part of its assets; (iv) commencing under the
laws of any jurisdiction any proceeding involving its dissolution or liquidation
or any other similar proceeding; (v) ceasing to carry on the whole or
substantially the whole of its business or that part of its business to which
this Agreement relates; or (vi) becoming a party to any proceeding or action of
the type described above in (iii) or (iv) and such proceeding or action remains
undismissed or unstayed for a period of sixty (60) days.

         8.3 CONSEQUENCES OF EXPIRATION OR TERMINATION.

                  8.3.1    SURVIVAL. In all events of expiration or termination
the provisions of Articles I (Definitions), VII (Confidentiality), and X
(Miscellaneous), and Sections 2.8(Information and Reports), 4.2 (Permitted
Activities), 5.1 (Ownership) (including 5.1.4 (License to AZ Improvements), 5.4
(Knowledge Licenses), 5.7.2 (Record Keeping), 5.8 (No Implied Licenses), 6.4
(Taxes), 8.3 (Consequences of Expiration or Termination), 9.2 (Warranty
Disclaimer) and 9.3 (No Liability) shall survive. In addition, the Full License
under Section 5.7 survives in any event if it has become fully paid-up pursuant
to the last sentence of Section 6.3 (License Renewal Fee).

                  8.3.2    OTHER CONSEQUENCES. The following are in addition to
any Sections that survive under Section 8.3.1. Sections or rights not noted as
surviving terminate on termination of the Agreement. In each case, on
termination each Party promptly shall return to the other Party any Technology
or Confidential Information of the other Party, except to the extent the
licenses granted pursuant to this Agreement to such Technology or Confidential
Information survive.

                           (a) In the event of expiration pursuant to Section
8.1 (Term; Expiration), Section 3.2.6 and Section 3.2.7 (Compounds) survive for
the period indicated therein, licenses to Background Technology (Section 5.2)
and Compounds and Compound Data (Section 5.3) survive, all licenses to
Collaboration Technology under Section 5.5.1 survive, CK may retain the physical
AZ Compounds and AZ Compound Data in its possession, and each Party shall retain
identical copies of the images and derived data generated during the Research
Term.

                           (b) In the event of termination by AZ under Section
8.2.1 (Material Breach by CK): (i) AZ has no further requirement to pay FTE
costs, the Milestone Payment, the Annual License Renewal Fees or any other
amounts not already due and owing; (ii) the licenses from CK to AZ for CK
Background Technology (Section 5.2) and CK Compounds and CK Compound Data
(Section 5.3) survive and AZ may retain the physical CK Compounds and CK
Compound Data in its possession; (iii) CK shall return to AZ all AZ Compounds in
its possession, and, for avoidance of doubt, AZ has no obligation to provide AZ
Compounds under

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Section 3.2.6; (iv) the license from CK to AZ for Collaboration Technology
(under either Section 5.5.1 or Section 5.5.2, as appropriate) survive; (v) where
such termination occurs prior to the end of the Pilot License Term, CK will be
deemed to have granted a license to the components or portions of the
Cytometrix(TM) Hepatotoxicity Module installed at AZ Facilities, on the same
terms as Section 5.7, but without payment of further fees; (vi) where such
termination occurs during the Full License Term, the license granted to the
Cytometrix(TM) Hepatotoxicity Module to AZ continues in accordance with its
terms without additional payment of fees; (vii) CK shall deliver to AZ all
images and derived data generated during the Research Term in its possession;
and (viii) the restriction under the last sentence of Section 5.5.1 no longer
applies.

                           (c) In the event of termination by CK under Section
8.2.1 (Material Breach by AZ): (i) AZ shall pay, in each case to the extent not
yet paid, any remaining FTE costs, the Milestone Payment, and the unpaid balance
of the first [*] Annual License Renewal Fees; (ii) the licenses from AZ to CK
for AZ Background Technology (Section 5.2) and AZ Compounds and AZ Compound Data
(Section 5.3) survive and CK may retain the physical AZ Compounds and AZ
Compound Data in its possession; (iii) AZ's obligation to provide Proprietary AZ
Compounds under Section 3.2.6 and Section 3.2.7 continues for the time
indicated, regardless of whether or not the Research Term has been completed;
(iv) in the event that such termination occurs prior to the end of the Research
Term, AZ's obligations with respect to exclusivity of efforts (Section 4.1)
continue for an additional [*] month period; and (v) AZ shall deliver to CK all
images and derived data generated during the Research Term in its possession.

                           (d) [INTENTIONALLY LEFT BLANK.]

                           (e) In the event of termination under Section 8.2.3
(Mutually for Lack of Feasibility): (i) AZ shall pay remaining unpaid FTE costs
(if any); (ii) the licenses from AZ to CK for AZ Background Technology (Section
5.2), and AZ Compounds and AZ Compound Data (Section 5.3) survive and CK may
retain the physical AZ Compounds and AZ Compound Data in its possession; (iii)
the license from CK to AZ for Collaboration Technology (under either Section
5.5.1 or Section 5.5.2, as appropriate) survive; (iv) the Cytometrix(TM)
Hepatotoxicity Module (including backups thereof) shall be removed from any AZ
Facilities in which it has been installed, and all licenses granted to AZ
thereunder shall terminate; and (v) each Party shall retain identical copies of
the images and derived data generated during the Research Term.

                           (f) In the event of termination or non-renewal by AZ
under Section 8.2.4 (AZ Convenience During Later Full License Term): (i) the
license from CK to AZ for Collaboration Technology under Section 5.5.1 survives;
(ii) the licenses from AZ to CK for AZ Background Technology (Section 5.2) and
AZ Compounds and AZ Compound Data (Section 5.3) survive, and CK may retain the
physical AZ Compounds and AZ Compound Data in its possession; and (iii) the
Cytometrix(TM) Hepatotoxicity Module (including backups thereof) shall be
removed from any AZ Facilities in which it has been installed, and all licenses
granted to AZ thereunder shall terminate; and (v) each Party shall retain
identical copies of the images and derived data generated during the Research
Term.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

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AZ AND CK CONFIDENTIAL

                           (g) In the event of termination or non-renewal by AZ
under Section 8.2.5 (AZ Convenience Prior to [*] Year of the Full License
Term): (i) AZ shall pay, in each case to the extent not yet paid, any remaining
FTE costs, the Milestone Payment, and the unpaid balance of the first [*]
Annual License Renewal Fees; (ii) the license from CK to AZ for Collaboration
Technology under Section 5.5.1 survives; (iii) the licenses from AZ to CK for AZ
Background Technology (Section 5.2) and AZ Compounds and AZ Compound Data
(Section 5.3) survive, and CK may retain the physical AZ Compounds and AZ
Compound Data in its possession; (iv) AZ's obligation to provide AZ Compounds
under Section 3.2.6 continues and Section 3.2.7 survives; (iv) the
Cytometrix(TM) Hepatotoxicity Module (including backups thereof) shall be
removed from any AZ Facilities in which it has been installed, and all licenses
granted to AZ thereunder shall terminate; and (v) each Party shall retain
identical copies of the images and derived data generated during the Research
Term.

                           (h) In the event of termination by either Party under
Section 8.2.6 (Insolvency): (i) licenses already granted (to and from the
insolvent Party) continue in accordance with their terms and subject to payment
of related fees; (ii) each Party shall pay for services already provided; and
(iii) each Party shall retain identical copies of the images and derived data
generated during the Research Term.

         8.4 ACCRUED LIABILITY. Termination or expiration of this Agreement for
any reason shall not release either Party hereto from any liability that at the
time of such termination or expiration has already accrued to the other Party
prior to such time including any and all damages arising from any breach
hereunder. Such termination or expiration will not relieve a Party from accrued
payment obligations or from obligations that are expressly indicated in this
Agreement to survive termination or expiration of this Agreement.

         8.5 TERMINATION NOT SOLE REMEDY. Termination is not the sole remedy
under this Agreement and, whether or not termination is effected, all other
remedies will remain available except as agreed to otherwise herein.

                    ARTICLE IX - WARRANTY AND INDEMNIFICATION

         9.1 REPRESENTATIONS AND WARRANTIES. Each Party hereby represents and
warrants and covenants as follows:

                           (a) it is duly organized and validly existing under
the laws of the jurisdiction of its incorporation and has full corporate power
and authority to enter into this Agreement and is in good standing with all
relevant governmental authorities;

                           (b) this Agreement is a legal and valid obligation
binding upon such Party and enforceable in accordance with its terms; and
accordingly, it has taken all corporate actions necessary to authorize the
execution and delivery of this Agreement and the performance of its obligations
under this Agreement;

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                      -31-

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AZ AND CK CONFIDENTIAL

                           (c) the execution, delivery and performance of the
Agreement by such Party does not conflict with any agreement, instrument or
understanding, oral or written, to which it is a party or by which it is bound,
nor violate any law or regulation of any court, governmental body or
administrative or other agency having jurisdiction over it;

                           (d) it has not, and during the term of the Agreement
will not, grant any right to any Third Party relating to its respective
Technology in the Field which would conflict with the rights granted to the
other Party hereunder;

                           (e) it has the requisite rights to grants the
licenses set forth under this Agreement; and further, to the best of its
knowledge, as of the Effective Date there is no pending litigation or claim, and
no basis for such claim, challenging its right to grant the rights herein; and

                           (f) the execution, delivery and performance of this
Agreement will not result in a violation of, or be in material conflict with, or
constitute a material default, under any agreement in existence as of the
Effective Date between CK and Third Parties and that CK is not party to any
agreements that limit or in any other way affect or impair AZ's rights or
obligations under this Agreement, including but not limited to CK's rights and
obligations under that certain agreement between CK and GlaxoSmithKline dated
June 20, 2001.

         9.2 WARRANTY DISCLAIMER. EXCEPT FOR ANY EXPRESS WARRANTY SET FORTH
WITHIN THIS AGREEMENT, ALL COMPOUNDS, THE CM SYSTEM, THE CYTOMETRIX
HEPATOTOXICITY MODULE, TECHNOLOGY AND OTHER MATERIALS PROVIDED BY THE PARTIES
HEREUNDER ARE PROVIDED "AS IS" AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE
LAW THE PARTIES HEREBY DISCLAIM AND EXCLUDE ANY AND ALL REPRESENTATIONS,
WARRANTIES, CONDITIONS OR OTHER TERMS, WHETHER WRITTEN OR ORAL, EXPRESSED OR
IMPLIED, INCLUDING ANY REPRESENTATION OR WARRANTY OF QUALITY, PERFORMANCE,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE.

         9.3 NO LIABILITY WITH RESPECT TO COMPOUNDS AND COMPOUND DATA. TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, NEITHER PARTY SHALL BE LIABLE TO THE
OTHER PARTY, OR ANY OF ITS EMPLOYEES OR AGENTS, WHETHER FOR BREACH OF CONTRACT,
NEGLIGENCE OR OTHERWISE, WITH REGARD TO THE PROVISION OF COMPOUNDS OR COMPOUND
DATA, EXCEPT FOR A BREACH OF ITS OBLIGATIONS TO DELIVER AND LICENSE SUCH
COMPOUNDS OR COMPOUND DATA UNDER THIS AGREEMENT IN ACCORDANCE WITH THE TERMS
HEREOF.

         9.4 INDEMNITY.

                  9.4.1    INDEMNIFICATION BY CK. In addition to any other
remedy available to AZ, CK shall indemnify, defend and hold harmless AZ, its
Affiliates and its and their respective agents, employees, officers and
directors (the "AZ INDEMNITEES") from and against any and all

                                      -32-

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AZ AND CK CONFIDENTIAL

liability, claims, demands, causes of action, damage, loss, cost or expense
(including reasonable attorneys' fees) arising out of Third Party claims or
suits to the extent resulting from: (i) CK's performance of, or failure to
perform, its obligations under this Agreement; or (ii) breach by CK of any of
its representations and warranties under Section 9.1 above, provided, however,
that CK's obligations pursuant to this Section 9.4 shall not apply to the extent
such claims or suits result from the negligence or willful misconduct of any of
the AZ Indemnitees.

                  9.4.2    INDEMNIFICATION BY AZ. In addition to any other
remedy available to CK, AZ shall indemnify, defend and hold harmless CK, its
Affiliates and its and their respective agents, employees, officers and
directors (the "CK INDEMNITEES") from and against any and all liability, claims,
demands, causes of action, damage, loss, cost or expense (including reasonable
attorneys' fees) arising out of Third Party claims or suits to the extent
resulting from: (i) AZ's performance of, or failure to perform, its obligations
under this Agreement; or (ii) breach by AZ of any of its representations and
warranties under Section 9.1 above; provided, however, that AZ's obligations
pursuant to this Section 9.4 shall not apply to the extent such claims or suits
result from the negligence or willful misconduct of any of the CK Indemnitees.

                  9.4.3    NOTIFICATION OF CLAIM; CONDITIONS TO INDEMNIFICATION
OBLIGATIONS.

                           (a) As a condition to a Party's right to receive
indemnification under this Section 9.4, it shall: (i) promptly notify ("CLAIM
NOTICE") the other Party as soon as it becomes aware of a claim or suit for
which indemnification may be sought pursuant hereto (provided that the failure
to give a Claim Notice promptly shall not prejudice the rights of an indemnified
Party except to the extent that the failure to give such prompt notice
materially prejudices the indemnifying Party; however, in no event shall the
indemnifying Party be liable for any loss that results from any delay in
providing the Claim Notice); (ii) cooperate with the indemnifying Party in the
defense of such claim or suit, at the expense of the indemnifying Party,
including providing reasonable information, including, but not limited to,
copies of all papers and official documents received in respect of any such
loss; and (iii) if the indemnifying Party confirms in writing to the indemnified
Party its intention to defend such claim or suit within ten (10) days of receipt
of the Claim Notice, permit the indemnifying Party to control the defense of
such claim or suit, including without limitation the right to select defense
counsel; provided that if the indemnifying Party fails to (x) provide such
confirmation in writing within the ten (10) day period or (y) diligently and
reasonably defend such suit or claim at any time, its right to defend the claim
or suit shall terminate immediately in the case of (x) and otherwise upon twenty
(20) days' written notice to the indemnifying Party without cure and the
indemnified Party may assume the defense of such claim or suit at the sole
expense of the indemnifying Party and may settle or compromise such claim or
suit without the consent of the indemnifying Party. In no event, however, may
the indemnifying Party compromise or settle any claim or suit in a manner which
admits fault or negligence on the part of any indemnified Party or that
otherwise materially affects such indemnified Party's rights or requires any
payment by an indemnified Party without the prior written consent of such
indemnified Party. Subject as expressly provided above, the indemnifying Party
will have no liability under this Section 9.4 with respect to claims or suits
settled or compromised (including by admission) without its prior written
consent.

                                      -33-

<PAGE>

AZ AND CK CONFIDENTIAL

                           (b) Each Claim Notice shall contain a description of
the claim and the nature and amount of the loss claimed (to the extent that the
nature and amount of such loss is known at such time).

                            ARTICLE X - MISCELLANEOUS

         10.1     GOVERNING LAW. The interpretation and construction of this
Agreement and any dispute arising from the performance or breach hereof shall be
governed by and construed and enforced in accordance with, the laws of the State
of New York, United States of America, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of
this Agreement to the substantive law of another jurisdiction.

         10.2     DISPUTE RESOLUTION. Prior to initiating any proceeding before
a court or arbitrator, or in another tribunal, all outstanding matters arising
under this Agreement must be submitted to the JSC for good faith negotiation as
described in Section 2.4, and then for resolution pursuant to Section 2.5.
Matters not resolved under Section 2.5 will be referred to the Chief Executive
Officer for CK, and Executive Vice President, Head of Global Discovery Research
for AZ (collectively the "SENIOR MANAGEMENT") for resolution. Any final decision
mutually agreed to by Senior Managements of the Parties shall be in writing and
shall be conclusive and binding on the Parties. If resolution cannot be reached
by the Senior Management within thirty (30) days from the date the matter in
dispute is first brought to the attention of the Senior Management, the dispute
is subject to arbitration under Section 10.3.

         103      ARBITRATION. Except as set forth in Sections 2.4 and 2.5, any
dispute arising out of or relating to the negotiation, interpretation, breach or
performance of this Agreement shall be settled by binding arbitration in
accordance with the rules of arbitration indicated below. The number of
arbitrators shall be three (3), of whom each Party shall appoint one (1). The
two arbitrators so appointed will select the third and final arbitrator. The
place of arbitration shall be San Francisco, California. The language used in
the arbitration proceedings shall be English. The proceedings, including any
outcome, shall be confidential. The arbitration shall be governed by the United
States Arbitration Act 9 U.S.C. Sections 1-16 to the exclusion of any
inconsistent state laws and judgment on the award rendered by the arbitration
may be entered by any court having jurisdiction. Nothing in this Article X will
preclude either Party from seeking interim or provisional relief from a court of
competent jurisdiction, including a temporary restraining order, preliminary
injunction or other interim equitable relief, concerning a dispute either prior
to or during any arbitration if necessary to protect the interests of such Party
or to preserve the status quo pending the arbitration proceeding.

         10.4     ASSIGNMENT. This Agreement shall not be assignable by either
Party to any Third Party hereto without the written consent of the other Party
hereto; except that either Party shall always have the right, without such
consent, (a) to perform any or all of its obligations and exercise any or all of
its rights under this Agreement through any of its Affiliates, and (b) on
written notice to the other Party, assign any or all of its rights and delegate
any or all of its obligations hereunder to any of its Affiliates or to any
successor in interest (whether by merger, acquisition, asset purchase or
otherwise) to all or substantially all of the business to which this

                                      -34-

<PAGE>

AZ AND CK CONFIDENTIAL

Agreement relates. Any permitted successor of a Party or any permitted assignee
of all of a Party's rights under this Agreement that has also assumed all of
such Party's obligations hereunder in writing shall, upon any such succession or
assignment and assumption, be deemed to be a party to this Agreement as though
named herein. All validly assigned rights of a Party shall inure to the benefit
of and be enforceable by, and all validly delegated obligations of such Party
shall be binding on and be enforceable against, the permitted successors and
assigns of such Party, provided that such Party, if it survives, shall remain
jointly and severally liable for the performance of such delegated obligations
under this Agreement. Any attempted assignment or delegation in violation of
this Section 10.4 shall be void.

         10.5     PERFORMANCE WARRANTY. AZ hereby warrants and guarantees the
performance of any and all rights and obligations by its Affiliate(s).

         10.6     DEBARMENT. To the extent required by applicable law, neither
Party shall use, in any capacity, in connection with the performance of its
obligations under this Agreement, any person debarred or subject to debarment or
otherwise disqualified or suspended from performing the Research Program or
otherwise subject to any restrictions or sanctions by any other governmental or
regulatory authority or professional body with respect to the performance of the
Research Program. Accordingly, to the extent applicable, a Party shall
immediately notify the other Party in writing if any person who is performing
under this Agreement is or becomes debarred or if any action, suit, claim,
investigation, or other legal or administrative proceeding is pending or, to the
best of the Party's knowledge, threatened, that would make any person performing
hereunder a person that is debarred or would preclude the Party from performing
its obligations under this Agreement.

         10.7     FORCE MAJEURE. Except with respect to payment of money, no
Party shall be liable to the other for failure or delay in the performance of
any of its obligations under this Agreement for the time and to the extent such
failure or delay is caused by earthquake, riot, civil commotion, war, terrorist
acts, strike, flood, or governmental acts or restriction, or other cause that is
beyond the reasonable control of the respective Party. The Party affected by
such force majeure will provide the other Party with full particulars thereof as
soon as it becomes aware of the same (including its best estimate of the likely
extent and duration of the interference with its activities), and will use
commercially reasonable efforts to overcome the difficulties created thereby and
to resume performance of its obligations as soon as practicable. If the
performance of any such obligation under this Agreement is delayed owing to such
a force majeure for any continuous period of more than one hundred eighty (180)
days, the Parties hereto will consult with respect to an equitable solution,
including the possibility of the mutual termination of this Agreement.

         10.8     NOTICES. All notices, requests and communications hereunder
shall be in writing and shall be personally delivered or sent by facsimile or
e-mail transmission (receipt confirmed), mailed by registered or certified mail
(return receipt requested), postage prepaid, or sent by international express
courier service, and shall be deemed to have been properly served to the
addressee upon receipt of such written communication, to following addresses of
the Parties, or such other address as may be specified in writing to the other
Party hereto:

                                      -35-

<PAGE>

AZ AND CK CONFIDENTIAL

   IF TO CK,

        ADDRESSED TO:     CYTOKINETICS, INC.
                          280 East Grand Avenue
                          South San Francisco, CA 94080-4808
                          Attention: Robert Blum, Senior Vice President, Finance
                          and Corporate Development, and Chief Financial Officer
                          Telephone: (650) 624-3000
                          Telecopy: (650) 624-3010
                          E-mail: rblum@cytokinetics.com

        WITH A COPY TO:   WILSON SONSINI GOODRICH & ROSATI, PC
                          650 Page Mill Road
                          Palo Alto, CA 94304-1050
                          Attention: Kenneth A. Clark, Esq.
                          Telephone: 415-493-9300
                          Telecopy: 415-493-6811
                          E-mail: kclark@wsgr.com

   IF TO AZ,

        ADDRESSED TO:     ASTRAZENECA AB
                          R&D Headquarters
                          S-151 85 Sodertalje, Sweden
                          Attention: Jan Lundberg
                          Executive Vice President, Discovery Research
                          Telephone: [*]
                          E-mail: [*]

        WITH A COPY TO:   ASTRAZENECA AB
                          LEGAL DEPARTMENT
                          S-151 85 Sodertalje, Sweden
                          Attention: Johannes Linde
                          Associate General Counsel
                          Telephone: [*]
                          Telecopy: [*]

         10.9     WAIVER. Neither Party may waive or release any of its rights
or interests in this Agreement except in writing. The failure or 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
similar subsequent failure to perform any such term or condition. No waiver by
either Party of any condition or term in any one or more instances shall be
construed as a continuing waiver of such condition or term or of another
condition or term.

         10.10    SEVERABILITY. If any provision hereof should be held invalid,
illegal or unenforceable in any jurisdiction, the Parties shall negotiate in
good faith a valid, legal and

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      -36-

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AZ AND CK CONFIDENTIAL

enforceable substitute provision that most nearly reflects the original intent
of the Parties and all other provisions hereof shall remain in full force and
effect in such jurisdiction and shall be liberally construed in order to carry
out the intentions of the Parties hereto as nearly as may be possible. Such
invalidity, illegality or unenforceability shall not affect the validity,
legality or enforceability of such provision in any other jurisdiction. In the
event a Party seeks to avoid a provision of this Agreement by asserting that
such provision is invalid, illegal or otherwise unenforceable, the other Party
shall have the right to terminate this Agreement upon thirty (30) days' prior
written notice to the asserting Party, unless such assertion is eliminated and
the effect of such assertion cured within such thirty (30)-day period. Any
termination in accordance with the foregoing sentence shall be deemed a
termination pursuant to Section 8.2 and the Party who made such assertion shall
be deemed the breaching Party.

         10.11    DAMAGES EXCLUSION AND LIMITATION. EXCEPT WITH RESPECT TO
DAMAGES OR OBLIGATIONS ARISING OUT OF UNAUTHORIZED EXPLOITATION OF THE OTHER
PARTY'S INTELLECTUAL PROPERTY RIGHTS OR BREACH OF ARTICLE VII, IN NO EVENT WILL
EITHER PARTY OR ANY OF ITS RESPECTIVE AFFILIATES BE LIABLE TO THE OTHER PARTY OR
ANY OF ITS AFFILIATES FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL,
EXEMPLARY, OR PUNITIVE DAMAGES, WHETHER IN CONTRACT, WARRANTY, TORT, NEGLIGENCE,
STRICT LIABILITY OR OTHERWISE, INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS OR
REVENUE OR CLAIMS OF CUSTOMERS OF ANY OF THEM OR OTHER THIRD PARTIES FOR SUCH
DAMAGES. The forgoing applies to obligations and damages under Article IX.

         10.12    ENTIRE AGREEMENT. This Agreement sets forth all the covenants,
promises, agreements, warranties, representations, conditions and understandings
between the Parties hereto and supersedes and terminates all prior agreements
and understanding between the Parties with respect to the subject matter hereof,
including that certain Mutual Non-Disclosure Agreement between the Parties dated
January 29, 2003 (the "NDA"), as amended on July 9, 2003, and on August 11,
2003. Notwithstanding the foregoing, all information exchanged between the
Parties pursuant to the NDA shall be deemed Confidential Information of the
Party that disclosed it thereunder and shall be subject to the terms of this
Article VII. There are no covenants, promises, agreements, warranties,
representations conditions or understandings, either oral or written, between
the Parties with respect to the subject matter hereof other than as set forth
herein. No subsequent alteration, amendment, change or addition to this
Agreement shall be binding upon the Parties hereto unless reduced to writing and
signed by the respective authorized officers of the Parties.

         10.13    INDEPENDENT CONTRACTORS. Nothing herein shall be construed to
create any relationship of employer and employee, agent and principal,
partnership or joint venture between the Parties. Each Party is an independent
contractor. Neither Party shall assume, either directly or indirectly, any
liability of or for the other Party. Neither Party shall have the authority to
bind or obligate the other Party and neither Party shall represent that it has
such authority.

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         10.14    HEADINGS. Headings used herein are for convenience only and
shall not in any way affect the construction of or be taken into consideration
in interpreting this Agreement.

         10.15    COUNTERPARTS AND FACSIMILE SIGNATURES. This Agreement may be
executed in two counterparts, each of which shall be deemed an original, and all
of which together, shall constitute one and the same instrument. This Agreement
may be executed as counterparts and the signature page delivered by facsimile.
The Parties agree that such execution and facsimile delivery shall have the same
force and effect as delivery of an original document with original signatures,
and that each Party may use such facsimile signatures as evidence of the
execution and delivery of this Agreement by both Parties.

              [The remainder of this page left intentionally blank]

                                      -38-

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AZ AND CK CONFIDENTIAL

         IN WITNESS WHEREOF, this Agreement is executed by the authorized
representatives of the Parties as of the Effective Date.

ASTRAZENECA AB                         CYTOKINETICS, INC.

By: /s/ Per From                       By: /s/ James Sabry
   ---------------------------            ---------------------------
Name: Per From                         Name: James Sabry

Title: President & CEO                 Title: President and CEO

                                      -39-

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AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.3

                            AZ BACKGROUND TECHNOLOGY

                                      [*]

*  Certain information on this page has been omitted and filed separately with
   the Commission. Confidential treatment has been requested with respect to the
   omitted portions.
<PAGE>

AZ AND CK CONFIDENTIAL

                            EXHIBIT 1.4: AZ COMPOUNDS

         The heading in each column indicates whether the information in that
column should be provided for Public Compounds, Proprietary Compounds, or both.
Information identified with *** is to be provided as of the Effective Date.

<TABLE>
<CAPTION>

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

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<CAPTION>

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<CAPTION>

</TABLE>

--------
(1) Such an identifier must be unique, but need not be the identifier used
    internally at the providing Party.

(2) If Compound is Proprietary, then in addition to the target class, identify
    whether the molecular target is the same.

(3) Reported as an EC50.

(4) Reported as a curve, not as an EC50.

*  Certain information on this page has been omitted and filed separately with
   the Commission. Confidential treatment has been requested with respect to the
   omitted portions.
<PAGE>

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<TABLE>
<CAPTION>

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*  Certain information on this page has been omitted and filed separately with
   the Commission. Confidential treatment has been requested with respect to the
   omitted portions.

                                      -2-

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<TABLE>
<CAPTION>

            1                   2                3                 4              5              6              7
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</TABLE>
                                     -3-
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<TABLE>
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*  Certain information on this page has been omitted and filed separately with
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                                      -7-
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                                      -8-
<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.10

                            CK BACKGROUND TECHNOLOGY

         CK Background Technology comprises the Technology disclosed in the
following patents and patent applications.

<TABLE>
<CAPTION>
            APPLN. NO. /    FILING
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<S>         <C>            <C>        <C>                                             <C>
1008        [*]            [*]        [*]                                             Pending

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</TABLE>

* Certain information on this page has been omitted and filed separately with
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<PAGE>

AZ AND CK CONFIDENTIAL

<TABLE>
<CAPTION>
            APPLN. NO. /    FILING
CASE NO.     (PUB. NO.)      DATE                 TITLE / SUBJECT MATTER                 STATUS / NOTES
---------------------------------------------------------------------------------------------------------
<S>         <C>            <C>        <C>                                               <C>
1011.1EP       [*]            [*]        [*]                                            Pending

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</TABLE>

* Certain information on this page has been omitted and filed separately with
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                                      -2-

<PAGE>

AZ AND CK CONFIDENTIAL

<TABLE>
<CAPTION>
            APPLN. NO. /     FILING
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</TABLE>

* Certain information on this page has been omitted and filed separately with
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                                      -3-

<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.11

                                  CK COMPOUNDS

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

(1) Such an identifier must be unique, but need not be the identifier used
    internally at the providing Party.

(2) If Compound is Proprietary, then in addition to the target class, identify
    whether the molecular target is the same.

(3) Reported as an EC50.

(4) Reported as a curve, not as an EC50.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>

AZ AND CK CONFIDENTIAL

<TABLE>
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* Certain information on this page has been omitted and filed separately with
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                                      -2-
<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.15

                                    CM SYSTEM

The CM System is an automated cell biology platform designed to quantify
cellular phenotypes. Cytokinetics has developed the CM System for use across the
drug discovery process, including target identification and validation, primary
and secondary compound screening, mechanism-of-action studies and compound
attrition management.

The components of the current CM System can be broken down as follows:

         -        Culture and plating of cells

         -        Automated addition of treatments and stains

         -        Variable exposure of cells to treatment

         -        Automated image acquisition

         -        Cell-by-cell image analysis

         -        Quantitative cell-by-cell biological analysis

         -        Statistical analysis to generate compound "fingerprints" and
                  compound classifications

All the experimental data, including images, compound fingerprints and
classifications are available for interpretation and decision support.

                            [CM SYSTEM FLOW DIAGRAM]

CELL CULTURE

A variety of cell lines and primary cell types are used in the CM System. The
phenotype of interest is generally dependent on the cell type. By quantitatively
comparing the response to a treatment across a variety of cell types, a fuller
understanding of the effect of the treatment can be obtained. The cell types
employed in the CM System have been selected for relevance to particular
therapeutic problems, for biological diversity, for responsiveness in CM
profiling experiments, and for reproducibility.

TREATMENT

The CM System can be used to quantify the effects of chemical compounds, or a
variety other treatments, such as antibodies, toxins and transfected siRNAs, on
the chosen cell types. The process of defining the CM experiment and the
resulting required treatment plate format is handled in the in the CM System
LIMS.

<PAGE>

AZ AND CK CONFIDENTIAL

AUTOMATED PLATE PREPARATION

The CM System automation includes the plating of cells, incubation with
treatment and staining of the cells. Quantitative reproducibility of assay
results requires consistent fluidics. The CM System LIMS include data system
interfaces for all fluidics operations.

IMAGING

High-quality imaging provides the primary data for the CM System. Imaging data
are automatically stored to computer disk for analysis.

IMAGE ANALYSIS

Proprietary image analysis algorithms are used to segment images into individual
cells and organelles. A large number of morphological and intensity-related
features are extracted from each image. The CM System uses a scalable
distributed computing architecture designed to take advantage of additional
networked computers as computation demands increase. All results are stored in
the CM System experiment database.

DATA ANALYSIS

CM System data analysis quantifies compound "fingerprints" in three phases:

         -        sub-cellular measurements

         -        biological features

         -        compound fingerprints

The process of generating compound fingerprints uses the image features, such as
object area, intensity, shape, texture, etc., and experimental process
parameters, e.g. drug, concentration, cell line, time point, etc., to generate
so-called biological features. Examples of biological features from
Cytokinetics' cell-cycle work include Mitotic Index, G1 phase, S phase, and
Golgi apparatus classification. Treatment fingerprints are the CM System
representation of the cellular phenotype and are generated from multidimensional
analysis of the biological features. Compound groups are assembled when a group
of compound phenotypes is compared and compounds with similar fingerprints are
assembled.

VISUALIZATION

CM System data can be reviewed at many levels, including visualizing compound
fingerprints, reviewing biological analysis and viewing the original
experimental images. Various biological reports and analyses are generated
allowing access to information and analyses at any of the three levels:

         -        Compound Fingerprint Analyses

                                      -2-
<PAGE>

AZ AND CK CONFIDENTIAL

         -        Standardized and Ad Hoc Biological Reports

         -        Biological Experimental Data

The highest level is the compound fingerprint analyses, examples of which are
Principal Component Analysis (PCA) Plots and Trellis Plots. The former are
three-dimensional representations of the higher-dimensional dose-response data,
the latter are representations of the fingerprint data at a given dose.
Standardized and ad hoc biological reports, include cell-cycle analysis and
dose- and time-response curves. Biological experimental data constitute the
primary level and include all the data collected during the CM System
experiment, such as the treatment name and concentration, cell type, marker,
imaging parameters, extracted features, and exposure time.

An exemplary use of the CM System in compound profiling has the following
hierarchy of data:

                   [TYPES OF DATA GENERATED BY THE CM SYSTEM]

              FIGURE 1: Types of data generated by the CM System.

                                      -3-
<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.23

                                  DELIVERABLES

This Exhibit 1.23 defines the Deliverables for the Research Program.

CELL CULTURE

The [*] for preparing and handling the [*] used in the CHM will be [*]. Initial
implementation will be at [*] on [*]. In accordance with the Research Plan, the
[*] will be subsequently [*] at [*] using [*]. The [*] will be [*].

TREATMENT PREPARATION

The CHM [*] and the associated [*] will be [*] for initial implementation at [*]
within [*]. Acknowledging that [*] has its own [*] and [*], [*] will provide to
[*] of the [*], including the definition of the [*] and the [*] enabling [*] to
[*] for use on [*].

AUTOMATED PLATE PREPARATION

The [*] will include [*], [*], and [*]. The [*] for [*] will be [*] and [*]. The
[*] will include both [*] and [*] for all necessary [*]. Again, acknowledging
that [*] has its own [*] and [*], [*] will provide to [*] on the [*], enabling
[*] to [*] for use on [*].

IMAGING

The [*] will be generated at [*] using an [*] or comparable [*] and [*]. The
data will be [*] for subsequent [*] and [*]. The [*], [*] and [*] for [*] and
[*] to specific locations to support the [*] will be [*], documented [*] for
usage on [*] and [*].

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

<PAGE>

AZ AND CK CONFIDENTIAL

IMAGE ANALYSIS

The parties will develop CHM [*] characterizing [*], [*], [*]. Those [*] will be
[*], [*] and [*] at [*] during the [*]. [*] and [*] will be stored in the [*].
[*] will [*] the [*] and [*] and [*] of the [*] as part of the CHM.

DATA ANALYSIS

The parties will [*], [*] and [*] CHM [*] analogous to
[*], as appropriate to [*]. [*] will document and provide to [*] for
[*] for use at [*]
as part of the CHM. [*] will [*] of this [*] on [*] and [*] at [*] on the [*].

VISUALIZATION

The parties will [*] via [*], [*], [*] and [*]. The [*] CHM [*] and [*] will be
[*] and [*] to [*] for usage at [*] as part of the CHM. [*] will [*] the [*] of
this [*] on [*] and [*] at [*] on [*] as part of the CHM.

OVERALL CHM PROCESS - [*]

In addition, an [*] which [*] the [*], [*] and [*] for [*] and [*] the [*] and
to [*] of the [*]) will be [*] and [*] to [*] so that [*] can implement
necessary [*] within [*] on [*] a part of the CHM.

INFORMATION EXCHANGE DURING THE RESEARCH TERM

In the course of the [*], a [*] of [*] will need to be [*]. The [*] of the [*],
[*], the [*] and of the [*], the [*] and the [*], will be [*] at [*]. [*] will
require [*] to the [*].

[*] will be [*] as [*], [*] and [*] for [*] in [*]. The [*] will be

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                      -2-

<PAGE>

AZ AND CK CONFIDENTIAL

provided for use with [*]. [*] is responsible for acquiring its own [*].

[*]

[*]

ACCESS TO [*] EMPLOYED DURING THE RESEARCH TERM OF THE COLLABORATION

[*]

[*]

THE CYTOMETRIX(TM) HEPATOTOXICITY MODULE: [*] DELIVERED TO AZ FOR IDENTIFICATION
OF HEPATOTOXICITY IN [*] DURING THE [*]

[*] of the [*], [*], [*], [*] and [*] for the overall [*] and the [*] will be
delivered to [*] during the [*]. [*] will be [*] on the [*] and [*] of the CHM
per the [*].

[*] and [*] with [*] for [*], [*] and [*] will be delivered. The [*] will
constitute the [*] of the Cytometrix(TM) Hepatotoxicity Module, from [*] to [*]
of a [*]. [*] on the [*] and [*] will be provided.

[*]

[*]

[*]

[*]

[*]

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                      -3-
<PAGE>

AZ AND CK CONFIDENTIAL

[*]

THIRD PARTY PRODUCTS INCLUDED IN THE DELIVERABLES

[*]

INFORMATION EXCHANGE

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

ALGORITHMS USED AS PART OF THE RESEARCH PLAN

[*]
[*]

[*]

[*]

CYTOMETRIX(TM) HEPATOTOXICITY MODULE

Hardware systems:

All computers are to be Intel(R) Pentium(R) series, operating systems are to be
Microsoft(R) Windows(R) 2000 or above.
(Memory, processor requirements TBD)

Applications Software:

[*]

[*]

[*]

[*]

[*]

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       -4-
<PAGE>

AZ AND CK CONFIDENTIAL

[*]

[*]

[*]

[*]

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                      -5-
<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.25

                                EXEMPT ACTIVITIES

AZ: With respect to AZ, Exempt Activities means the:

[*]

[*]

CK: With respect to CK, Exempt Activities means the:

[*]

[*]

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

<PAGE>
AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.36

                              PERFORMANCE CRITERIA

[*]

[*]

[*]

[*]

[*]

*Certain information on this page has been omitted and filed separately with the
 Commission. Confidential treatment has been requested with respect to the
 omitted portions.

<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 1.45

                                  RESEARCH PLAN

                                REVISION HISTORY

<TABLE>
<S>                  <C>           <C>                <C>
[*]                  [*]           First Draft        2 pages
Cytokinetics

[*]                  [*]           Version 1.0
AstraZeneca

[*]                  [*]           Version 1.7
AstraZeneca

[*]                  [*]           Version 1.8
Cytokinetics

[*]                  [*]           Version 1.9
Cytokinetics

[*]                  [*]           Version 2.0
Cytokinetics

WSGSR                [*]           Version 2.1        Editing and consistency
                                                      with main body of
                                                      Agreement
</TABLE>

*Certain information on this page has been omitted and filed separately with the
 Commission. Confidential treatment has been requested with respect to the
 omitted portions.

<PAGE>

AZ AND CK CONFIDENTIAL

                                TABLE OF CONTENTS

<TABLE>
<S>                                                      <C>
1.       Introduction                                    1

         1.1    Discovery Problems                       1

         1.2    Approach                                 1

         1.3    Project Aims                             2

2        Project Organisation                            2

         2.1    Roles and Responsibilities               2

         2.2    Meetings Plan                            2

         2.3    Communication Formats                    2

3.       Respective Contributions                        3

4.       Project Plan                                    7

         4.1    Project Phases                           7

         4.2    Collaboration Deliverables               9
</TABLE>

                                      -i-

<PAGE>

AZ AND CK CONFIDENTIAL

ARTICLE I         INTRODUCTION

1.1      DISCOVERY PROBLEMS

Section 1.01 Candidate Drugs (CDs) that fail to make it to market are both
common and expensive. It has been estimated that that less than 10% of CDs
result in a marketable product with each late stage failure incurring
significant costs. Approximately 50% of these failures can be attributed to
toxicological problems. There will be a greater need for early stage profiling
in the future as high throughput screening increases the number of active
compounds per target. Clearly, improved early stage toxicity profiling will aid
the selection of CDs less likely to fail in the development phase and allow a
more informed decision about which active compounds should be progressed.

1.2      APPROACH

Section 1.02 [*]

Section 1.03 [*]

Section 1.04 [*]

*Certain information on this page has been omitted and filed separately with the
 Commission. Confidential treatment has been requested with respect to the
 omitted portions.

<PAGE>

AZ AND CK CONFIDENTIAL

1.3      PROJECT AIMS

The project aim is to utilise the expertise and knowledge within both companies
to develop a high content biology platform for hepatotoxicity profiling of
compounds. At the end of the collaboration the platform would be available for
use in both companies in their own R&D programmes.

To share between AZ and CK [*] and AZ proprietary toxicological data.

[*]

ARTICLE II        PROJECT ORGANISATION

2.1      ROLES AND RESPONSIBILITIES - TO BE APPOINTED

2.2      MEETINGS PLAN

         Weekly telephone conference calls/NetMeeting will be held between AZ &
         CK scientists to discuss detailed scientific progress and issues.

         Monthly video conference calls of project management team

         Quarterly visits, alternating between AZ and CK will be held.

         All meetings are to be scheduled at the outset of each project phase,
         agendas to be circulated at least 2 days before weekly meetings, and 1
         week before monthly and quarterly.

2.3      COMMUNICATION FORMATS

         All documents will follow the defined project format (attach templates)
         in MS Word for Windows v2000 or MS PowerPoint for Windows v2000. Up to
         date project plan will be available to all parties in MS Project for
         Windows v2000. MS Project will be used for GANT charts.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                      -2-

<PAGE>

AZ AND CK CONFIDENTIAL

ARTICLE III       RESPECTIVE CONTRIBUTIONS

         FTE commitments are man-years for the complete lifetime of the project
- nominally [*] months.

<TABLE>
<CAPTION>
                           AZ                                   CK
------------------------------------------------------------------------------------------------
<S>                        <C>                                  <C>
[*]                           [*] FTE                              [*] FTE
----------------------------------------------------------
[*]                           [*]                                  [*]

                              [*]                                  [*]

                              [*]                                  [*]

                              [*]

                              [*]
----------------------------------------------------------
[*]                           [*]                                  [*]

                              [*]                                  [*]
------------------------------------------------------------------------------------------------
[*]                           [*]
------------------------------------------------------------------------------------------------
</TABLE>

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                      -3-

<PAGE>

AZ AND CK CONFIDENTIAL

<TABLE>
<S>                        <C>                                  <C>
[*]                        [*] FTE                              [*] FTE

                           [*]                                  [*]

                           [*]

                               [*]

                               [*]

                               [*]

                               [*]

                               [*]

                               [*]

                               [*]
------------------------------------------------------------------------------------------------
[*]                        [*] FTE

                           [*]

------------------------------------------------------------------------------------------------
[*]                        [*] FTE                              [*] FTE

                           [*]                                  [*]

                                                                [*]
------------------------------------------------------------------------------------------------
</TABLE>

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                    -4-

<PAGE>

AZ AND CK CONFIDENTIAL

<TABLE>
<S>                        <C>                                  <C>
[*]                        [*]FTE                               [*]FTE
                           [*]                                  [*]
                           [*]                                  [*]
                                                                [*]
------------------------------------------------------------------------------------------------
[*]                                                             [*]FTE
                                                                [*]
-----------------------------------------------------------------------------------------------
[*]                        [*]FTE                               [*]FTE
                           [*]                                  [*]
                                                                [*]
------------------------------------------------------------------------------------------------
[*]                        [*]FTE                               [*]FTE
                           [*]                                  [*]
                                                                [*]
                                                                [*]
                                                                [*]
                                                                [*]
------------------------------------------------------------------------------------------------
</TABLE>

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       -5-

<PAGE>

AZ AND CK CONFIDENTIAL

<TABLE>
<S>                       <C>                                   <C>
     [*]                                                        [*] FTE
                                                                [*]

------------------------------------------------------------------------------------------------
     [*]                  [*] FTE                               [*] FTE
                          [*]                                   [*]
                          [*]                                   [*]
                          [*]

------------------------------------------------------------------------------------------------
     [*]                  [*] FTE                               [*] FTE
                          [*]                                   [*]
                          [*]
                          [*]
                          [*]
                          [*]
                          [*]

------------------------------------------------------------------------------------------------
     [*]                  [*] FTE [*]                            [*] FTE [*]
                          [*]
                          [*]

------------------------------------------------------------------------------------------------
</TABLE>

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to
  the omitted portions.

                                       -6-

<PAGE>

AZ AND CK CONFIDENTIAL

ARTICLE IV        PROJECT PLAN

4.1      PROJECT PHASES
         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

         [*]

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to
  the omitted portions.

                                      -7-

<PAGE>

AZ AND CK CONFIDENTIAL

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

*    Certain information on this page has been omitted and filed separately with
     the Commission. Confidential treatment has been requested with respect to
     the omitted portions.

                                      -8-

<PAGE>

AZ AND CK CONFIDENTIAL

4.2      DELIVERABLES FOR RESEARCH PROGRAM:

         The Deliverables for the Research Program are defined in Exhibit 1.23
of the Agreement.

                                      -9-

<PAGE>

AZ AND CK CONFIDENTIAL

                                  EXHIBIT 5.6.2

                                     SUPPORT

DURING THE [*] WILL:

-    Perform installation of the [*] at [*]. Given prior preparation, by [*], of
     the required [*] on the [*] at a [*] this effort is estimated to take [*]
     to complete.

-    Supply [*] with a [*] and [*] for its own use in the event of [*] during
     the [*].

-    Train [*] on [*].

-    Supply [*] with [*] for the [*] as defined in Deliverables Exhibit 1.23.

-    Prepare [*] as necessary and [*] to [*] with [*].

IN THE EVENT OF [*], WHETHER DURING THE [*] OR [*], [*] WILL:

-    Expect that [*] will [*] from the [*] and [*] supplied by [*] during the
     [*] at [*].

-    Answer [*] via phone, video conference or email regarding [*] or [*] to [*]
     of the CHM.

-    In the event, that the [*] do not result in a [*] at [*], [*] will on a
     [*], [*] to the [*] and [*] a [*] of the CHM.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.
<PAGE>

                                   EXHIBIT 7.4

<TABLE>
<S>                                                                                <C>
Contacts:

CYTOKINETICS, INC.                                                                 ASTRAZENECA (MEDIA ENQUIRES)
Robert I. Blum                                                                     Steve Brown, +44 (0) 207 304 5033
SVP, Finance and Corporate Development, and CFO                                    Scott Young, +1.781.839.4589
(650) 624-3000                                                                     Kellie Rivest, +1.781.839.4151

BURNS MCCLELLAN, INC.
E. Blair Clark (investors) or Justin Jackson (media)
(212) 213-0006
</TABLE>

FOR IMMEDIATE RELEASE

                      CYTOKINETICS AND ASTRAZENECA ANNOUNCE
       TECHNOLOGY DEVELOPMENT COLLABORATION FOCUSED ON PREDICTIVE TOXICITY

       ALLIANCE LEVERAGES CYTOMETRIX(TM) CELLULAR PHENOTYPING TECHNOLOGIES

SOUTH SAN FRANCISCO, CA AND LONDON, UK, DEC. 18, 2003 - Cytokinetics, Inc., and
AstraZeneca Pharmaceuticals announced today that the two companies have entered
into an exclusive collaboration to develop automated imaging-based cellular
phenotyping and analysis technologies for the in vitro prediction of
hepatotoxicity. The companies have agreed to commit internal resources and
combine efforts aimed at addressing an important inflection point in the
pharmaceutical discovery and development process. Under the terms of the
agreement, AstraZeneca will fund technology development activities at
Cytokinetics over a two-year research term. The agreement further provides for a
milestone payment and annual licensing fees to be paid to Cytokinetics upon the
Cytometrix(TM) Hepatotoxicity Module successfully achieving certain agreed upon
performance criteria.

"Under this collaboration, we have the potential to develop new technologies
that may systematically and reliably predict toxic and non-toxic
pharmacophores," stated Jay Trautman, Ph.D., Cytokinetics' Vice President of
Technology. "AstraZeneca has decades of molecular toxicology and pathology
experience. By combining this expertise with Cytokinetics' validated cellular
phenotyping technologies, we have an opportunity to together bring forward an
application module of the Cytometrix(TM) technologies that may deliver
productivity gains for each of our later stage discovery and pre-clinical
development processes."

AstraZeneca's Vice President and Global Head of Safety Assessment, Peter
Moldeus, Ph.D., stated, "Complications associated with toxicity are a major
challenge for the pharmaceutical industry, as these toxicities often result in a
project's failure after substantial investments have already been made.
Diminishing the risks associated with toxicity by identifying a compound's
off-target liabilities earlier could significantly increase our development
success. We believe that Cytokinetics' Cytometrix(TM) cellular phenotyping
technologies have potential to help AstraZeneca remain at the forefront of
research in this area."

CYTOMETRIX(TM) TECHNOLOGIES

The collaboration will leverage Cytokinetics' proprietary platform,
Cytometrix(TM) cellular phenotyping technologies, which are routinely utilized
in Cytokinetics' screening processes to analyze both on-target and off-target
effects of candidate compounds. Cytometrix(TM) cellular phenotyping technologies
utilize cell-based assays to create digital phenotypic profiles ("fingerprints")
representative of diverse molecular mechanisms of drug action. Cytometrix(TM)
fingerprints detail information on the potency and specificity of a compound or
drug-related toxicities. Cytokinetics presently employs Cytometrix(TM) cellular
phenotyping technologies to eliminate compounds of mixed mechanism, allowing the
company to focus its medicinal chemistry and pharmacology resources more
selectively on higher quality chemical series. This collaboration with
AstraZeneca is designed to develop a new Cytometrix(TM) technologies application
called the Cytometrix(TM) Hepatotoxicity Module for the in vitro prediction of
hepatotoxicities downstream of screening.

                                    - more -

<PAGE>

Cytokinetics and AstraZeneca Collaboration Press Announcement
December 18, 2003
Page 2

ABOUT CYTOKINETICS

Founded in 1998 and privately held, Cytokinetics is dedicated to the discovery,
development and commercialization of a novel class of therapeutics resulting
from its leadership position in the emerging field of cytoskeletal pharmacology.
The cytoskeleton is a complex, dynamic framework that impacts all aspects of
cell function including cell division, cell motility, intracellular transport,
muscle contractility and regulation of cellular organization. Cytokinetics' R&D
efforts aim to address pharmaceutical needs in cancer, cardiovascular and
infectious diseases and feature proprietary Cytometrix(TM) cellular phenotyping
technologies designed to industrialize cell biology for increased speed and
productivity in drug discovery and development. Cytokinetics and GlaxoSmithKline
have entered into a broad strategic collaboration to discover, develop and
commercialize novel small molecule therapeutics targeting mitotic kinesins for
applications in the treatment of cancer and other diseases. Cytokinetics and
GlaxoSmithKline are conducting Phase I studies with the first novel anti-cancer
drug candidate emerging from the collaboration and intend to expand clinical
development upon completion of these studies. Additional information about
Cytokinetics can be obtained at www.cytokinetics.com.

ABOUT ASTRAZENECA

AstraZeneca is a major international healthcare business engaged in the
research, development, manufacture and marketing of prescription pharmaceuticals
and the supply of healthcare services. It is one of the top five pharmaceutical
companies in the world with healthcare sales of over $17.8 billion and leading
positions in sales of gastrointestinal, oncology, cardiovascular, neuroscience
and respiratory products. AstraZeneca is listed in the Dow Jones Sustainability
Index (Global and European) as well as the FTSE4Good Index. Worldwide,
AstraZeneca has six major research and development sites and four discovery
sites employing more then 11,000 people in six countries including Canada,
France, India, Sweden, United Kingdom and the United States. For more
information, please visit www.astrazeneca.com/research.

                                      # # #<PAGE>
                                                                   Exhibit 10.31

[*] CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
    BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
    EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES EXCHANGE ACT OF
    1933, AS AMENDED.

                             COLLABORATION AGREEMENT

THIS COLLABORATION AGREEMENT (the "Agreement") is made and entered into as of
the last execution date by a Party to this Agreement ("Effective Date") by and
between EXELIXIS, INC., a Delaware corporation having a principal place of
business at 170 Harbor Way, P.O. Box 511, South San Francisco, California
94083-0511 ("Exelixis"), and CYTOKINETICS, INC., a Delaware corporation having a
place of business at 280 East Grand Avenue, South San Francisco, California
94080 ("Cytokinetics"). As used herein, references to Cytokinetics and Exelixis
shall also include their respective Affiliates.

                                   BACKGROUND

        A.     Cytokinetics is engaged in the research, development and
               commercialization of biotechnology and pharmaceutical products;

        B.     Exelixis is engaged in the research, development and
               commercialization of biotechnology, pharmaceutical, agrochemical
               and agricultural products and has developed novel proprietary
               methods for the generation of compound libraries;

        C.     Cytokinetics desires to obtain, and Exelixis desires to supply,
               certain of such compounds for screening and further evaluation
               and development by each Party, all on the terms and conditions
               set forth below.

NOW, THEREFORE, for and in consideration of the covenants, conditions, and
undertakings hereinafter set forth, it is agreed by and between the Parties as
follows:

          1.      DEFINITIONS.

                  1.1      "AFFILIATE" shall mean an entity which controls, is
controlled by or is under the common control with a Party. An entity shall be
regarded as in control of another entity for purposes of this definition if it
owns or controls more than fifty percent (50%) of the shares of the subject
entity entitled to vote in the election of directors (or, in the case of an
entity that is not a corporation, for the election of the corresponding managing
authority).

                  1.2      "COLLABORATION" shall mean a collaborative
relationship between a Party and a third party(ies), the subject of which is the
research, discovery, development, manufacturing and/or commercialization of
Pharmaceuticals.

                  1.3      "COMPOUND" shall mean each chemically distinct
compound that is synthesized by Exelixis that fulfills fee Quality Control
Criteria on a per Plate basis and is delivered to Cytokinetics in accordance
with Section 3.4.

                  1.4      "COMPOUND PATENT" shall mean patents and patent
applications covering the composition, use, or method of preparation, of any
Compound, filed after the date of synthesis of such Compound hereunder, whether
foreign or domestic, all patents arising from such applications, and all patents
and patent applications based on, or claiming or corresponding to the priority
dates, of

                                       -1
<PAGE>

any of the foregoing and any renewals, reissues, extensions, (or other
governmental actions that provide exclusive right to the owner thereof in the
patented subject matter beyond the original expiration date), substitutions,
confirmations, registrations, revalidations, reexaminations, additions,
continuations, continued prosecutions, continuations-in-part or divisions of or
to any of the foregoing, including, without limitation, supplementary protection
certificates or the equivalent thereof.

                  1.5      "CONFIDENTIAL INFORMATION" shall have the meaning as
set forth in Article 5.

                  1.6      "DESIGN CRITERIA" shall mean the criteria for the
design and/or synthesis of the Compounds as established by the JRC pursuant to
Section 3.2.

                  1.7      "DRUG PRODUCT" shall mean a composition of matter
used in the treatment, prevention or diagnosis of disease, state or condition,
which composition of matter is (i) a Compound, or (ii) derived from the use of a
Compound as [*] of such composition of matter.

                  1.8      "DRUG PRODUCT USE" shall mean use solely to research,
develop and/or commercialize a Drug Product, internally or as part of a
Collaboration, including the right to have any of the foregoing conducted on a
Party's (including Collaboration partners') behalf by a third party.

                  1.9      "EXELIXIS BACKGROUND TECHNOLOGY" shall mean Exelixis
Patent Rights and Exelixis Know-How.

                           1.9.1    "EXELIXIS PATENT RIGHTS" shall mean (i)
patents and patent applications, whether foreign, or domestic, that claim, or
are necessary or useful to exploit (A) a Compound or composition-of-matter
containing such Compound or a method of use thereof or (B) a process developed
prior to the Effective Date and/or under the Research Program, in each case, for
the synthesis of Compounds (or analogs or derivatives thereof as provided in
Section 4.2.2), and (ii) any divisions, continuations, continuations-in-part,
reissues, reexaminations, or extensions to the extent the same have an earliest
effective filing date prior to the date described in (i) above, and any (iii)
substitutions, confirmations, registrations, or revalidations of any of the
foregoing, in each Case, which are owned or controlled by Exelixis (solely or
jointly), to the extent Exelixis has the right to license or sublicense the
same.

                           1.9.2    "EXELIXIS KNOW-HOW" shall mean synthetic
protocols developed prior to the Effective Date and/or under the Research
Program, in each case, which are necessary or useful for the synthesis of the
Compounds (or analogs or derivatives thereof as provided in Section 4.2.2), and
any technical information, know-how, process, procedure, composition, method,
formula, technique, software, design, drawing or data directly relating to the
Compounds or necessary or useful for the manufacture, use or exploitation
thereof.

                  1.10     "INTERNAL RESEARCH USE" shall mean use solely for
research and/or pharmaceutical lead discovery purposes, internally or as part of
a Collaboration, including the right to have any of the foregoing conducted on a
Party's (including Collaboration partners') behalf by a

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       -2
<PAGE>

third party; provided, it is understood and agreed that such use shall exclude
the right to develop and/or commercialize the Compounds.

                  1.11     "PARTY" OR "PARTIES" shall mean individually
Exelixis, Cytokinetics or an Affiliate of the same, and collectively, Exelixis,
Cytokinetics and their Affiliates.

                  1.12     "PLATE" shall have the meaning as set forth in
Appendix B.

                  1.13     "PROGRAM COMPOUND INFORMATION" shall mean data,
methods, results, conclusions, information and/or deliverables generated in
connection with the design and/or production of the Compounds under the Research
Program that are necessary for a person trained in the art of compound synthesis
to make the Compounds, including without limitation, Design Criteria, structure,
composition, results from Quality Control Criteria analysis of each Compound by
[*], methods of synthesis, synthons, and non-commercially available building
blocks relating to the Compounds.

                  1.14     "QUALITY CONTROL CRITERIA" OR "QCC" shall mean the
quality control criteria established by the Parties as described in Appendix B,
as may be amended by the JRC from time to time.

         2.       RESEARCH PROGRAM.

                  2.1      GENERAL. Cytokinetics and Exelixis will conduct a
research program on a collaborative basis with the principal goal of producing a
high throughput screen library consisting of up to a total of [*] ([*])
Compounds (the "Research Program"). The Research Program shall be conducted in
accordance with the Design Criteria as established by the JRC, unless otherwise
agreed by the Parties in writing. Each Party agrees to keep the other Party
informed of its progress and activities within the Research Program. The
scientific scope of the Research Program is further described in Appendix A,
attached hereto, as may be amended in writing by the JRC from time to time under
Section 3.2.

                  2.2      LIBRARY. Exelixis shall diligently utilize its
combinatorial Chemistry expertise and apply its related technologies, as
directed by the JRC, to generate the Compounds on behalf of the Parties.
Exelixis shall be responsible for all components of library production,
analytics, informatics and formatting.

                  2.3      NOVEL COMPOUNDS. Exelixis and Cytokinetics shall each
use their respective diligent efforts to design Compounds that are not covered
by any Exelixis or Cytokinetics intellectual property either (i) existing as of
the Effective Date and excluded from the Research Program or (ii) arising
outside of the Research Program during the Term (as defined in Section 8.1) that
is owned, assigned and/or licensed by Exelixis or Cytokinetics. Without limiting
the foregoing, each Party shall use its diligent efforts to not (i) design
and/or synthesize any Compounds under this Agreement that have been, or are in
the process of being, designed and/or synthesized under any other
collaboration(s) it has with a third party, and/or (ii) design and/or synthesize
any other compounds under any other collaboration(s) it has with a third party
that have been, or are in the process of being, designed and/or synthesized as a
Compound under this Agreement.

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  omitted portions.

                                       -3
<PAGE>

                  2.4      PERSONNEL. In accordance with Section 5.1, Exelixis
may disclose to employees and personnel of Exelixis (each, a "Research Program
Personnel"), on a need to know basis under circumstances that ensure the
confidentiality thereof, information within the Program Compound Information,
including any Cytokinetics Confidential Information, Design Criteria, and/or
Quality Control Criteria included therein, solely to conduct their designated
activities under the Research Program. Exelixis may disclose to third parties
who are under contractual relationship with Exelixis to synthesize scaffolds
and/or generic structures (each a "Exelixis Third Party Supplier") information
within the Program Compound Information (but excluding Design Criteria, Quality
Control Criteria, specific structures or compositions of the Compounds to be
produced hereunder, or results from Quality Control Criteria analysis of the
Compounds by [*]) to the extent necessary for such Exelixis Third Party
Supplier to perform its activities as described hereunder. Any Exelixis Third
Party Supplier performing such activities shall be under a confidentiality
agreement with Exelixis on terms no less restrictive than the confidentiality
provisions of this Agreement.

                  2.5      NO CONFLICTING ACTIVITIES. During the Term of this
Agreement, Exelixis shall not, and shall ensure that the Research Program
Personnel shall not, conduct the Research Program in conjunction with any other
projects being conducted at, or on behalf of, Exelixis that would (a) conflict
with any of the provisions of this Agreement, or (b) preclude Exelixis from
complying with the provisions hereof. In addition, Exelixis shall not enter into
agreements with Exelixis Third Party Suppliers that conflict with any of the
provisions of this Agreement and shall use diligent efforts to ensure compliance
with the confidentiality provisions, documentation requirements and intellectual
property rights provisions of this Agreement.

                  2.6      RECORDS. In connection with the performance of the
Research Program, Exelixis shall ensure that the Research Program Personnel who
perform such services shall maintain laboratory notebooks, records and data
("Records") in accordance with good laboratory and research practices.

                  2.7      REPORTS. Exelixis shall promptly provide to the JRC
documentation as to the Compounds, Program Compound Information, Records,
methods, results, conclusions, information and/or other deliverables made,
conceived, reduced to practice or otherwise generated in connection with this
Agreement ("Reports"). All Reports, Records, including any required laboratory
notebooks, records and data pursuant to any research services conducted under
the Research Program, shall be [*] by [*] and [*], shall be treated in all
respects as [*] Confidential Information of [*] and [*], and [*] shall have the
right to disclose, use and exploit such information in conjunction with its
disclosure, use and exploitation of the Compounds and Program Compound
Information in accordance with Article 4. The JRC shall deliver to Cytokinetics
such documentation from time to time and Without request by Cytokinetics.

                  2.8      FURTHER ASSURANCES. Exelixis shall provide to
Cytokinetics documentation reasonably requested by Cytokinetics in order to
assist Cytokinetics in determining whether any Compounds, Program Compound
Information, Plates, Records, Reports, and/or other deliverables comply fully
with this Article 2, Article 3 and Appendices A and B.

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  omitted portions.

                                       -4
<PAGE>

         3.       RESEARCH PROGRAM OVERVIEW.

                  3.1      JOINT RESEARCH COMMITTEE. Promptly after the
Effective Date, the Paries shall establish a six (6) member committee (the
"Joint Research Committee" or "JRC") composed of three (3) representatives from
each Party to manage the Research Program. Each representative of the JRC shall
have one (1) vote. All decisions of the JRC shall be made by unanimous vote. In
the event a unanimous decision can not be reached, then either Party may, by
written notice to the other Party, have such issue referred to the [*] of
Cytokinetics and Exelixis, [*] and [*], respectively, for resolution by good
faith negotiations within thirty (30) days after such notice is received.
Minutes of the JRC shall be taken, and shall, at a minimum, record all decisions
made. Such minutes shall be approved by both Parties. Each Party may replace its
appointed JRC representatives at any time upon written notice to the other
Party.

                  3.2      JRC RESPONSIBILITIES. The JRC shall be responsible
for planning, overseeing, reviewing and coordinating the work being done under
the Research Program, including; (i) making decisions regarding the specific
details of templates and Compounds for synthesis, including without limitation
the Design Criteria for the Compounds; (ii) evaluating progress against
timelines established by the JRC for the Research Program, including without
limitation the design, quality assurance testing and delivery of Compounds;
(iii) establishing and monitoring the schedule for delivery of Compounds; (iv)
establishing, maintaining and updating on an ongoing basis a database record of
the design of each of the Compounds and each Party's contribution to such
design, as further described in Section 4.3.2; (v) recording and approving
meeting minutes; and (vi) having the authority to accept or reject any Plates
and/or Compound(s) synthesized that failed the Quality Control Criteria
established by the Parties as set forth in Appendix B attached hereto, as may
be amended in writing by the JRC from time to time.

                  3.3      MEETINGS. The JRC shall meet quarterly, or as more or
less often as otherwise mutually agreed by the Parties, at such locations as the
Parties agree. It is understood that such meetings shall be held at least
quarterly in person, otherwise by telephone, in writing or by electronic mail.
The JRC shall provide monthly written updates to each Party as to the progress
of the Research Program.

                  3.4      DELIVERABLES.

                           3.4.1    COMPOUNDS. Exelixis shall deliver to
Cytokinetics, in accordance with the timelines as established by the JRC, the
number of unique Compounds as set forth in Table 1 below, such Compounds to be
delivered in Plates in accordance with the provisions of Appendices A and B:

Table 1:

<TABLE>
<CAPTION>
Year      No. Of Compounds
----      ----------------
<S>       <C>
[*]             [*]
[*]             [*]
[*]             [*]
[*]             [*]
[*]             [*]
Total:          [*]
</TABLE>

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  omitted portions.

                                       -5
<PAGE>
The JRC shall use diligent efforts to establish the Design Criteria for the
Compounds, and schedule the synthesis thereof, such that the Plates will be
delivered to Cytokinetics on a regular basis, with the goal of making such
deliveries [*], but in no event [*] (with goal of each such delivery equaling
approximately [*] if [*] (and [*] if [*]) of the total amount of Compounds
scheduled to be delivered in such year), or, as may be mutually agreed by the
Parties, on an alternative schedule.

Exelixis shall deliver Plates to Cytokinetics promptly following the synthesis
and quality assurance testing of the Compounds formatted thereon; provided,
Exelixis shall use diligent efforts to complete such synthesis, quality
assurance testing, and delivery of Plates within [*] ([*]) months after the JRC
has established the Design Criteria of the Compounds formatted thereon. In the
event Exelixis is unable to maintain such scheduled synthesis, quality assurance
testing, and/or deliveries it shall provide Cytokinetics with prompt written
notice thereof.

                           3.4.2    PLATE FORMAT. All Compounds shall be
formatted according to Appendix A; provided, that if requested by Cytokinetics,
Exelixis may deliver a format that consists of [*] ([*]) compounds per
Plate. Other formats proposed by Cytokinetics shall be reviewed and agreed in
writing by the JRC. Any additional final custom formatting for Cytokinetics'
purpose shall be performed at Cytokinetics.

                           3.4.3   ACCEPTANCE/REJECTION/RESYNTHESIS/REPLACEMENT
OF PLATE(S). All Plates that fulfill the Quality Control Criteria set forth in
Appendix B and are delivered to Cytokinetics shall be deemed accepted ("Accepted
Plates"). Plates that do not fulfill Quality Control Criteria will be reviewed
by the JRC and accepted, rejected or designated for re-synthesis by the JRC. If
a Plate is accepted by the JRC, the compounds on such Plate shall be considered
to have met the Quality Control Criteria and shall be deemed Compounds. If a
Plate is rejected, upon agreement with the JRC, the entire Plate may be
resynthesised. The re-synthesis of Plates shall not involve either reformatting
of compounds, removal or replacement of compounds. Exelixis shall promptly
notify the JRC of the existence of any excess template material. Any excess
template material shall [*] the Parties and made available to each of the
Parties within a reasonable time after the JRC's receipt of such notification
from Exelixis. With respect to Plates, and/or compounds synthesized by Exelixis
under the Research Program which are rejected by the JRC, the JRC shall
determine whether such Plates and/or compounds, including any related Program
Compound Information, shall be destroyed and/or [*] between the Parties. It is
understood and agreed, that neither Party shall have the right to disclose, use
and/or exploit such rejected Plates and/or compounds, including any related
Program Compound Information, except as expressly authorized by the JRC in
writing. In the event that the Plate(s) delivered to Cytokinetics contain
Compound(s) that do not substantially match with the Program Compound
Information supplied by Exelixis, Cytokinetics shall notify Exelixis within [*]
thereof, and Exelixis shall promptly replace such Plate(s) with Plate(s) of
Compounds substantially matching such Program Compound Information, [*] to
Cytokinetics. Notwithstanding the above, Exelixis shall not be responsible for
losses resulting from, relating to or arising from (i) acts or omissions or the
gross negligence or willful misconduct of Cytokinetics or (ii) damage to Plates
or Compounds that occur after delivery to Cytokinetics.

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  omitted portions.

                                       -6
<PAGE>

                           3.4.4    PROGRAM COMPOUND INFORMATION. At the time of
delivery of each Plate, Exelixis shall deliver to Cytokinetics Program Compound
Information substantially relating to each Compound contained on such Plate.
Exelixis and Cytokinetics will diligently work to define a suitable electronic
format, and subject to electronic file format compatibility, Exelixis shall make
the Program Compound Information available in electronic files for batch
registration as set forth in Appendix B.

                           3.4.5    OTHER DELIVERABLES. Without limiting the
foregoing, Exelixis shall deliver to Cytokinetics the deliverables set forth on
Appendix A in accordance with the time schedules set forth therein.

         4.       OWNERSHIP AND USE OF MATERIALS AND INFORMATION AND LICENSES.

                  4.1      COMPOUNDS AND [*]. All right, title and interest in
and to the Compounds and [*] shall be jointly owned by Cytokinetics and
Exelixis, shall be treated in [*] Confidential Information of [*], and each
Party shall have the right to disclose, use and exploit such Compounds and [*]
in accordance with the rights and licenses granted in this Article 4. Each Party
shall have a worldwide, [*], assignable, fully paid-up, royalty free, [*] right,
with the right to grant and authorize sublicenses subject to Section 4.1 (i) and
(ii) below, under such right, title and interest to disclose, use and exploit
the Compounds and [*], including the right to resynthesize such Compounds, for
(i) Internal Research Use, and (ii) Drug Product Use, [*]; provided, in each
case, [*] shall have the right to sell, license, sublicense, lend, lease, assign
or otherwise transfer the Compounds and/or [*] to any third party, except (a)
for contract research, contract development, contract manufacturing or
Collaboration purposes or (b) as a Drug Product. The Parties expressly
understand and agree that no rights or licenses are granted by [*] to [*] under
this Section 4.1, whether by implication, estoppel or otherwise, except as
expressly set forth in this Section 4.1. [*] shall have the right to research,
develop, make, have made, import, have imported, use, sell and offer for sale
analogs and derivatives of the Compounds without limitation, but no rights or
licenses are granted, or obligations imposed, [*] pertaining to such analogs and
derivatives. Subject to the confidentiality provisions contained herein, [*]
shall also have the right to practice and use [*] with such analogs and
derivatives.

                  4.2      LICENSE TO EXELIXIS BACKGROUND TECHNOLOGY.

                           4.2.1    COMPOUNDS. For each Compound on an Accepted
Plate and its corresponding Program Compound Information, Exelixis hereby grants
to Cytokinetics a worldwide, nonexclusive, royalty-free, fully-paid-up, [*],
sublicenseable subject to Section 4.2.1(i) and (ii) below, right and license,
under the Exelixis Background Technology to practice and use all intellectual
property rights therein with respect to such Compound and Program Compound
Information, including the right to resynthesize such Compounds, for (i)
Internal Research Use, and (ii) Drug Product Use; provided, Cytokinetics shall
not have the right to license or sublicense the Exelixis Background Technology
to any third party, except as it relates to its practice and use of the

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       -7
<PAGE>

Compounds and/or Program Compound Information (a) for contract research,
contract development, contract manufacturing or Collaboration purposes, or (b)
as a Drug Product.

                           4.2.2    ANALOGS AND DERIVATIVES OF COMPOUNDS. In
addition, Exelixis hereby grants to Cytokinetics a worldwide, nonexclusive,
royalty-free, fully-paid-up, [*], sublicenseable (as provided below), right and
license, under the Exelixis Background Technology to practice and use all
methods of synthesis developed prior to the Effective Date and/or under the
Research Program, in each case, to research, develop, make, have made, import,
have imported, use, sell and offer for sale analogs and derivatives of such
Compounds and Program Compound Information for the same uses described in
Section 4.2.1 (i) and (ii) above, except such uses, including sublicensing
rights, shall apply to such analogs and derivatives rather than such Compounds.

                  4.3      PATENTS AND PATENT APPLICATIONS.

                           4.3.1    COMPOUND PATENTS. It is anticipated that
each Party may independently file Compound Patents claiming Compounds when
utility has been established for such Compounds by or on behalf of a Party. Each
Party hereby grants to the other Party a worldwide, perpetual, irrevocable,
assignable, fully paid-up, royalty-free, non-exclusive license, (with the right
to sublicense to third parties pursuant to a Collaboration), under its Compound
Patents to practice and use any and all methods of use and compositions of
matter claims contained therein obtained on the Compound(s), including the right
to resynthesize such Compound(s), in each case, solely for Internal Research
Use. Notwithstanding the foregoing, it is understood that a patent claim of a
Compound Patent may encompass many compounds in addition to the Compound(s), and
that no license or other intellectual property right is granted to the other
Party in respect of such additional compounds encompassed by the claims,
including any methods of use or compositions of matter thereof, that are not
Compound(s).

                           4.3.2    NOVEL COMPOUNDS: INVENTORSHIP AND COMPETING
FILINGS.

                                    (a)      DESIGN CRITERIA. The JRC shall,
with respect to each Compound designed and/or synthesized under the Research
Program, mutually determine in good faith whether the chemical identity of such
Compound was designed solely by Cytokinetics, solely by Exelixis, or jointly.
After this mutual determination is made, the JRC shall document the full names
of each Party's personnel responsible for the design of such Compound in
question in a suitable database or other permanent record to which both Parties
and their counsel shall have access. The Parties acknowledge that their
determination of design under this Section 4.3.2 will be made in the absence of
any knowledge concerning the specific utility of such Compounds. Accordingly,
any determination made under this Section 4.3.2 shall be limited to design,
alone, and shall not, per se, be construed as a determination of inventorship of
such Compounds in question.

                                    (b)      INVENTORSHIP AND COMPETING FILINGS.

                                             (i)    The timing and strategy of
filing Compound Patents shall be at the sole discretion of the Party wishing to
file ("the Applicant Party"); provided both Parties agree not to file any
Compound Patent claiming one (1) or more Compounds until utility has been in

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       -8
<PAGE>

good faith reasonably established for such Compounds by or on behalf of such
Party. The Applicant Party shall be under no obligation to discuss or disclose
any portion of any Compound Patents to the other Party (the "Non-Applicant
Party"), except, and only to the extent, as may be required by law to enable the
Non-Applicant Party to perform its obligations under this Section 4.3.2. Subject
to the foregoing, in no event shall the Applicant Party be required to disclose
additional subject matter of the patent claims in such Compound Patents, such as
specific uses recited or generic structures that encompass the Compound(s)
and/or other compounds claimed. If an employee of the Non-Applicant Party is
determined to be an inventor on a claim covering a Compound within a Compound
Patent of the Applicant Party, then the Non-Applicant Party hereby assigns and
agrees to assign its rights (subject to Section 4.3.2(b)(ii) below), and shall
use its best efforts to ensure that such employee inventors assign their rights,
of inventorship and ownership in such claim to the extent such claim is
specifically directed to such Compound (but not to any other compounds covered
in such claim), obtained by virtue of holding said rights under a duty to
assign, to the Applicant Party, and to take all reasonable steps necessary, at
the Applicant Party's expense, to perfect such assignment. It is understood and
agreed that such claims on novel Compounds assigned under this Section 4.3.2
shall be subject to the licenses set forth in Section 4.3.1, including any
rights and restrictions contained therein.

                                             (ii)   For the avoidance of doubt,
it is understood by the Parties that both may file Compound Patents on the same
Compound(s) with the same or substantially the same utility, and that under this
set of circumstances, the national patent laws in each country where competing
filings are made shall be applied in and by the respective patenting authorities
to determine questions of priority and patentability and shall determine the
ownership of the competing claims. Each Party further agrees to cooperate, and
shall use [*] efforts to ensure that its employee inventors cooperate, with
the other in making any declarations, oath, assignments and the like necessary
to perfect such filings. With respect to any information disclosed by a Party to
the other Party pursuant to this Section 4.3.2, notwithstanding anything to the
contrary in this Agreement, the receiving Party acknowledges that it shall have
no right to use or disclose such information of the disclosing Party without the
disclosing Party's prior written consent.

                                    (c)      SUBSEQUENT DISCLOSURES. With
respect to any further disclosures that may be required in order to prosecute
and maintain claims already assigned under this Section 4.3.2, the assigning
Party (the "Assignor") agrees to cooperate with the Party to whom such claims
have been assigned (the "Assignee"), and to take all [*] steps necessary to
perfect such assignment, including without limitation to use [*] efforts to
ensure that each of its employee inventors on such claims cooperates with the
Assignee on such further disclosures. On a case-by case basis, the Parties shall
discuss and agree upon a mechanism by which such employee inventors of the
Assignor on such claims may communicate and cooperate directly with the
Assignee, including without limitation, having such employee inventors enter
into a separate confidentiality agreement (which covers only such further
disclosures) directly with the Assignee.

                           4.3.3    PROSECUTION OF PATENTS. Each Party shall be
solely responsible, at Its own expense and discretion, for prosecuting,
maintaining, enforcing and defending patents solely owned by such Party,
including without limitation those patent claims assigned to it by the other
Party pursuant to Section 4.3.2.

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                       -9
<PAGE>

         5.       CONFIDENTIAL INFORMATION.

                  5.1      CONFIDENTIALITY. Each Party agrees to maintain, for a
period of ten (10) years from the date of disclosure, as confidential and not
use for any purpose or disclose to any third party (except to (i) Exelixis
Third Party Suppliers under Section 2.4, (ii) third party contractors from
academic and contract research and/or development organizations authorized to
conduct activities for a Party (including its Collaboration partners) under
Article 4, and (iii) Collaboration partners, in each case, on a need to know
basis under circumstances that ensure the confidentiality thereof), all
information disclosed by one Party to the other Party under this Agreement,
whether in writing or presented, stored or maintained in or by electronic,
magnetic or other means, and marked "Confidential" at the time of such
disclosure, or if disclosed orally, confirmed in writing and marked as
"Confidential" within thirty (30) days following such oral disclosure, including
without limitation all such information relating to the business, plans and/or
technology of the Parties hereto, including, but not limited to technical
information, including inventions, discoveries, methods, plans, processes,
specifications, characteristics, raw data, equipment design, know-how, show-how,
experience and trade secrets; developmental, marketing, sales, operating and
performance information; computer programming techniques; computational
chemistry data or processes; information relating to the design of chemical
structures and compounds, synthetic protocols, analytical data and procedures,
including but not limited to, the Research Program, the Compounds and/or Program
Compound Information for drug discovery and/or parallel synthesis directed to
therapeutic, diagnostic, prophylactic, prognostic, agrochemical or agricultural
applications; and all record-bearing media containing or disclosing the
foregoing information and techniques, including written business plans, patents
and patent applications, grant applications, notes and memoranda (collectively
"Confidential Information").

                  5.2      EXCLUSIONS. Notwithstanding the foregoing, the
Parties' obligations of confidentiality shall not apply to any information
contained within the Confidential Information, to the extent such information:

                           (a)      was known to the receiving Party at the time
of receiving such information, as evidenced by its contemporaneous written
records;

                           (b)      is now, or hereafter becomes, through no act
or failure to act on the part of the receiving Party, generally known or
available in the public domain;

                           (c)      is the subject of a written permission to
disclose provided by the disclosing Party;

                           (d)      is independently developed by or for the
receiving Party without access to, or knowledge of, the disclosing Party's
Confidential Information as evidenced by its contemporaneous written record; or

                           (e)      is hereafter furnished to the receiving
Party by a third party, as a matter of right and without restriction on
disclosure.

                                      -10
<PAGE>

                  5.3      RESTRICTIONS ON USE OF CONFIDENTIAL INFORMATION.
Notwithstanding the provisions of Section 5.1 above, each Party may disclose the
other Party's Confidential Information (i) solely to the extent necessary to
exercise the rights granted, and obligations assigned, to it hereunder (provided
it uses reasonable efforts to protect such information commensurate with the
efforts used to protect its own most sensitive information of a similar nature),
(ii) as reasonably necessary to prosecute or defend litigation; in connection
with financings, securities offerings, or merger or acquisitions; to provide
information to tax or other governmental authorities, (iii) or to the extent
such disclosure is reasonably necessary to comply with applicable governmental
laws, regulations, or orders (provided that, if a Party is required to make any
such disclosure of the other Party's Confidential Information, it will, to the
extent it may legally do so, give reasonable advance notice to the latter Party
of such disclosure and will use its reasonable efforts to secure confidential
treatment of such information prior to its disclosure (whether through
protective orders or otherwise)).

                  5.4      NONDISCLOSURE OF TERMS. Each of the Parties agrees
not to disclose to any third party the terms of this Agreement without the prior
written consent of the other Party hereto, except to such Party's attorneys,
advisors, investors, potential investors or acquirers or partners and others on
a need to know basis under circumstances that reasonably ensure the
confidentiality thereof, or to the extent required by law.

         6.       PAYMENTS.

                  6.1      INITIAL PAYMENT. Cytokinetics shall pay Exelixis an
upfront fee of (i) [*] ($[*]) upon signing of the Agreement, and (ii) [*] ($[*])
upon delivery of the first [*] ([*]) Compounds hereunder (collectively, the
"Upfront Fee"), which Upfront Fee is intended to [*] the Compounds to be
delivered to Cytokinetics during the [*] of the Research Program. Exelixis shall
invoice Cytokinetics for the first payment on the Effective Date, and the second
payment upon the delivery of the first [*] ([*]) Compounds. Cytokinetics shall
pay such invoices [*] of receipt. The [*] shall be [*] of Compounds by
Cytokinetics. It is understood and agreed that Exelixis' right to receive and
retain such payment is contingent upon Exelixis' obligation to deliver to
Cytokinetics that number of Compounds (including their substantially related
Program Compound Information) that correspond to such payments.

                  6.2      PAYMENT SCHEDULE. In consideration  of Exelixis
providing Compounds to Cytokinetics, Cytokinetics shall pay Exelixis at the rate
of [*] U.S. Dollars ($[*]) per Accepted Plate, based upon a rate of [*] U.S
Dollars ($[*]) per Compound and [*] ([*]) Compounds per Plate up to a [*] of
[*] ([*]) Compounds. All Accepted Plates shall be delivered promptly to
Cytokinetics. Exelixis shall invoice Cytokinetics for each Accepted Plate at the
rate provided herein within [*] days after the first business day of each
calendar quarter.

                  6.3      DELIVERY TERMS. All deliveries shall be F.O.B.
Exelixis shipping dock at the address located at the front of this Agreement,
and Cytokinetics shall assume all shipping and

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                                      -11

<PAGE>

insurance charges for delivery of such Compounds, which shall be billed directly
to Cytokinetics from the carrier, unless otherwise agreed by the Parties.

                  6.4      PAYMENT TERMS. Subject to the acceptance of Compounds
by Cytokinetics as set forth in Section 3.4.3, payments by Cytokinetics to
Exelixis shall be due within [*] upon receipt of invoice from Exelixis;
provided, it is understood and agreed that Cytokinetics shall have no obligation
to make any payments to Exelixis, until such time as the [*] is [*] of the first
[*] ([*]) of such Compounds by Cytokinetics.

         7.       REPRESENTATIONS AND WARRANTIES.

                  7.1      Each of the Parties hereby represents and warrants,
as of the Effective Date, as follows;

                           (a)      It is a corporation or entity duly organized
and validly existing under the laws of the state or other jurisdiction of its
incorporation or formation.

                           (b)      It has the full corporate power and
authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby.

                           (c)      All corporate acts and other proceedings
required to be taken to authorize such execution, delivery and consummation have
been duly and properly taken and obtained.

                           (d)      This Agreement has been duly executed and is
a legal and valid obligation binding upon such Party and enforceable in
accordance with its terms.

                           (e)      It has not previously granted, and during
the Term (as defined in Section 8.1) will not make any commitment or grant any
rights which are in conflict with the rights and licenses granted to other Party
herein.

                  7.2      Each of the Parties hereby agrees to promptly notify
the JRC of any change in its business which would be reasonably expected to
materially delay or impair its ability to perform its obligations hereunder, so
that the JRC may discuss and agree upon a reasonable resolution that addresses
any POTENTIAL harm caused to the other Party by such anticipated delay or
impairment.

         8.       TERM; TERMINATION.

                  8.1      TERM. The term of this Agreement shall commence on
the Effective Date and, unless earlier terminated as provided in this Article 8,
continue in full force and effect until [*] ([*]) years from the Effective Date,
as may be extended by Cytokinetics pursuant to Section 8.3 (the "Term").

                  8.2      [*] TERMINATION. Commencing upon the [*] of the
Effective Date, this Agreement may be terminated [*], with [*], at any time for
any reason upon ninety (90) days prior written notice [*]. Without limiting the
foregoing [*], upon any such notice of termination under this

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  the Commission. Confidential treatment has been requested with respect to the
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Section 8.2, the Parties shall agree upon and issue a joint press statement
[*].

                  8.3      EXTENSION OF DELIVERY SCHEDULE OF COMPOUNDS.
Cytokinetics [*] may extend the overall timeline for design, development and
delivery of the Compounds (as summarized in Section 3.4.1-Table 1, for Years
[*]), and, concurrent with such extension, extend the Term of this Agreement up
to an additional [*], upon ninety (90) days prior written notice to Exelixis.
Notwithstanding the above, the number of Compounds to be delivered by Exelixis
to Cytokinetics in Year [*] shall be [*] ([*]) Compounds, and upon mutual
agreement of the Parties, Cytokinetics may [*] the number of Compounds to be
delivered by Exelixis in any given year, but such [*] shall not be [*] ([*])
Compounds per year.

                  8.4      TERMINATION FOR MATERIAL BREACH. Ether Party may
terminate this Agreement for any material breach of this Agreement by the other
Party, if such breach is not cured within sixty (60) days after the breaching
Party receives written notice of such breach by the nonbreaching Party. Such
termination shall be effective upon expiration of such sixty (60) day period.

                  8.5      EFFECTS OF TERMINATION.

                  8.5.1    ACCRUED RIGHTS. Termination of this Agreement shall
not affect the rights and obligations of the Parties that accrued prior to the
effective date of such termination.

                  8.5.2    CONFIDENTIAL INFORMATION. Upon request, each Party
agrees to destroy any copies of Confidential Information of the other Party
whenever the work hereunder for which they have been supplied is completed,
discontinued or otherwise terminated, other than any Confidential Information
contained within the Compounds and/or Program Compound Information, Reports
and/or Records. Notwithstanding the above, the Parties expressly agree that one
(1) complete set of Confidential Information may be retained solely for
evidentiary purposes.

                  8.5.3    MATERIALS. Upon any termination of this Agreement,
other than for uncured failure to make payments due by Cytokinetics in
accordance with Sections 6.1, 6.2, and/or 8.5.4, Exelixis shall cooperate fully
and timely with Cytokinetics regarding the transfer to Cytokinetics of
Cytokinetics' [*] Plates, Compounds (including any partial or completed
compounds paid for by Cytokinetics), templates, starting materials,
intermediates, synthons and building blocks relating to such Compounds
(including any partial or completed compounds paid for by Cytokinetics) and
necessary or useful for the synthesis thereof, Program Compound Information,
Reports and Records.

                  8.5.4    COSTS AND PAYMENTS.

                           (a)      Upon notice of any termination of this
Agreement prior to expiration of its Term, Exelixis shall stop all further work
under the Research Program, and use its best efforts to cancel any cancelable
costs. Notwithstanding anything to the contrary in this Agreement, Cytokinetics
shall have no obligation to make any payments to Exelixis for any Compounds
delivered after notice of such termination that fail to meet the QCC.

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

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                           (b)      If [*] under Section 8.2, Cytokinetics shall
pay Exelixis (i) in [*] for any compounds [*] for synthesis by the JRC [*];
provided, such compounds meet the QCC or are accepted by the JRC as Compounds
(or if the IRC is no longer in existence, by mutual agreement of the Parties),
and are delivered to Cytokinetics, with their substantially relating Program
Compound Information, within [*] ([*]) months after such submission for
synthesis by the JRC, and (ii) [*] of all actual, reasonable, documented,
non-cancelable costs incurred by Exelixis prior to the effective date of such
termination, to the extent such costs were approved by the JRC (or if incurred
after the effective date of such termination, to the extent such costs are [*]
and are necessary to synthesize and deliver such Compounds), and subject to
Exelixis using [*] to cancel all cancelable costs. Within thirty (30) days of
delivery of the last of the Compounds in accordance with this Section 8.5.4(b),
Exelixis shall provide Cytokinetics with an invoice setting forth the amount
owed for such Compounds ([*]), its actual, reasonable, documented,
non-cancelable costs incurred by Exelixis for the conduct of the Research
Program prior to the effective date of such termination, and such costs incurred
by Exelixis and [*] after the effective date of such termination and prior to
the effective date of delivery of the last of the Compounds (and to the extent
any amounts remain from any moneys previously paid by Cytokinetics to Exelixis,
the outstanding balance in such account).

                           (c)      If Exelixis terminates this Agreement
pursuant to Section 8.4 due to Cytokinetics' material breach, Cytokinetics
agrees to pay Exelixis (i) in [*] for any compounds that meet the QCC or are
accepted by JRC as Compounds, and are delivered to Cytokinetics, with their
substantially relating Program Compound Information, prior to the effective date
of termination, and (ii) [*] of all actual, reasonable, documented,
non-cancelable costs incurred by Exelixis prior to the effective date of
termination, to the extent such costs were approved by the JRC and subject to
Exelixis [*] to cancel all cancelable costs. Within thirty (30) days of any such
termination, Exelixis shall provide Cytokinetics with an invoice setting forth
the amount owed for such Compounds ([*]), and its actual, reasonable,
documented, non-cancelable costs incurred by Exelixis for the conduct of the
Research Program prior to the effective date of such termination (and to the
extent any amounts remain from any moneys previously paid by Cytokinetics to
Exelixis, the outstanding balance in such account).

                           (d)      If Cytokinetics terminates this Agreement
pursuant to Section 8.4 due to Exelixis' material breach, without limiting any
remedies Cytokinetics may have at law, Cytokinetics agrees to pay Exelixis in
[*] for any compounds that meet the QCC or are accepted by JRC as Compounds, and
are delivered to Cytokinetics, with their substantially relating Program
Compound Information, prior to the effective date of termination. Within thirty
(30) days of any such termination, Exelixis shall provide Cytokinetics with an
invoice setting forth the amount owed for such Compounds ([*]) (and to the
extent any amounts remain from any moneys previously paid by Cytokinetics to
Exelixis, the outstanding balance in such account).

                           (e)      Subject to delivery to Cytokinetics of the
materials and information listed in Section 8.5.3, and verification by
Cytokinetics of Exelixis' invoice, within

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

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thirty (30) days after receipt of adequate documentation therefor, the Parties
shall settle, in accordance with this Section 8.5.4, any such outstanding
amounts. If there is a balance owed to Exelixis, Cytokinetics shall make a
payment to Exelixis (and/or Exelixis may retain from moneys previously paid by
Cytokinetics) for such Compounds and, except for termination of this Agreement
due to Exelixis' material breach, such Exelixis' costs. Following settlement of
such outstanding amounts, if there is a balance remaining in Exelixis' accounts
from any moneys previously paid by Cytokinetics to Exelixis, Exelixis shall
refund such amounts to Cytokinetics.

                  8.6.     SURVIVAL. The provisions of Articles 4, 5, 7, 9, 10,
11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 and Sections 6.1, 8.5 and 8.6
shall survive termination or expiration of this Agreement for any reason. Upon
any termination of this Agreement, neither Party shall have any ongoing
obligation to the other Party, except as expressly provided herein.

         9.       PUBLICITY. The Parties shall issue a mutually agreed-upon
joint press release to announce the signing of this Agreement; thereafter,
Exelixis and Cytokinetics may each disclose to third parties the information
contained in such press release without the need for further approval by the
other.

         10.      PUBLIC PRESENTATIONS. The Parties acknowledge that they,
independently or jointly, may wish to make a Public Presentation of information
and data generated in the course of the Research Program. The term "Public
Presentation" shall mean the submission for publication of any manuscript,
abstract or other form of public presentation, including, without limitation,
posters, doctoral theses, slides and texts of oral presentations, and texts of
any transmission through any electronic media, e.g. any computer access system
such as the Internet, World wide Web, etc.

The Party wishing to make a Public Presentation (the "Publishing Party") shall
provide to the other Party (the "Non-Publishing Party") a complete copy of its
proposed publication at least thirty (30) days prior to the date of its intended
submission for publication, and agrees, upon request, not to submit any such
abstract or manuscript for publication until (i) the Non-Publishing Party is
given a reasonable period of time to secure patent protection for any material
in such proposed publication which it believes to be patentable, and (ii) to
remove, at the Non-Publishing Party's reasonable request, any Confidential
Information of the Non-Publishing Party and/or any [*] contained within such
proposed publication. Both Parties understand that a reasonable commercial
strategy may require delay of publication of information contained within a
Public Presentation for filing of patent applications. Neither Party shall have
the right to publish or present Confidential Information of the other Party or
any [*] in any Public Presentation without the other Party's prior written
consent. Subject to the foregoing, at the Non-Publishing Party's reasonable
request, the Publishing Party shall remove the [*]  and Non-Publishing Party's
Confidential Information from such proposed publication. The Publishing Party
agrees to provide the Non-Publishing Party with a final copy of the proposed
publication prior to its disclosure.

Nothing contained in this Article 10 is intended to grant any right or license
to either Party to commercialize or file patent applications on any information
of the Publishing Party that is included in such Public Presentation. Any
disputes between the Parties regarding delaying a Public Presentation to permit
the filing of a patent application shall be referred to the JRC.

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

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         11.      INDEMNIFICATION.

                  11.1     INDEMNIFICATION. Each Party agrees to be responsible
and assume liability for its own acts, gross negligence, and/or willful
misconduct, including those of its employees, Affiliates, independent
contractors and other agents, to the full extent permitted by law, and shall
indemnify and hold the other Party, and its employees, Affiliates, directors and
agents, harmless from and against any third party claims or liabilities
(including, without limitation, reasonable attorney's fees) arising from any
such acts or gross negligence, and/or willful misconduct; provided, however,
that the Party entitled to indemnification pursuant to this Article 10 shall
cooperate with the indemnifying Party in defending against any such claims or
liabilities and shall not settle any such claim without the prior consent of the
indemnifying Party, which consent shall not be unreasonably withheld.

                  11.2     PROCEDURES. A Party (the "Indemnitee") that intends
to claim indemnification under this Article 11 shall promptly notify the other
Party (the "Indemnitor") in writing of any claim, complaint, suit, proceeding or
cause of action in respect of which the Indemnitee intends to claim such
indemnification (for purposes of this Section 11.2, each a "Claim"), and the
Indemnitor shall have sole control of the defense and/or settlement thereof;
provided that the Indemnitee shall have the right to participate, at its own
expense, with counsel of its own choosing in the defense and/or settlement of
such Claim. The indemnification under this Article 11 shall not apply to amounts
paid with respect to settlement of any Claim if such settlement is effected
without the consent of the Indemnitor, which consent will not be unreasonably
withheld or delayed. The failure to deliver written notice to the Indemnitor
within a reasonable period of time after the commencement of any such claim,
suit or proceeding, if prejudicial to its ability to defend such action, shall
relieve such Indemnitor of any liability to the Indemnitee under this Article
11, but the omission to so deliver written notice to the Indemnitor shall not
relieve the Indemnitor of any liability to any Indemnitee otherwise than under
this Article 11. Without limiting the foregoing, the Indemnitee shall keep the
Indemnitor fully informed of the progress of any Claim for which it intends to
claim, indemnification under this Article 11.

         12.      FORCE MAJEURE. Except with respect to the payment of monies
due hereunder and the responsibility to maintain the confidentiality of
Confidential Information and the obligations of non-disclosure and non-use
thereof, neither Party shall be considered in default in the performance of any
obligation hereunder to the extent that the performance of such obligation is
prevented or delayed by fire, flood, explosion, strike, war, insurrection,
embargo, government requirement, civil or military authority, natural disaster
or any other event, occurrence or condition which is not caused, in whole or in
part, by that Party and which is beyond the reasonable control of that Party.

         13.      DISCLAIMER.

                  13.1     EACH PARTY ACKNOWLEDGES THAT THE COMPOUNDS AND
PROGRAM COMPOUND INFORMATION WHICH WILL BE PRODUCED PURSUANT TO THE RESEARCH
PROGRAM ARE EXPERIMENTAL AND THEIR PROPERTIES ARE NOT COMPLETELY KNOWN. EACH
PARTY SHALL BEAR FULL RESPONSIBILITY FOR SAFE HANDLING, STORAGE, TRANSFER AND
USE OF ANY COMPOUNDS AND PROGRAM COMPOUND INFORMATION IN ITS POSSESSION.

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                  13.2     EACH PARTY AGREES TO ACT IN ACCORDANCE WITH ALL
IMPORT/EXPORT LAWS AND ENVIRONMENTAL AND DRUG LAWS AND REGULATIONS AND ALL OTHER
LAWS AND REGULATIONS APPLICABLE TO THE USE AND POSSESSION OF THE COMPOUNDS AND
PROGRAM COMPOUND INFORMATION.

                  13.3     EXCEPT AS EXPRESSLY SET FORTH HEREIN, COMPOUNDS AND
PROGRAM COMPOUND INFORMATION PROVIDED HEREUNDER. ARE PROVIDED "AS IS" AND
WITHOUT WARRANTY OR CONDITIONS OF ANY KIND, EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, OR
FITNESS FOR A PARTICULAR PURPOSE.

                  13.4     WITHOUT LIMITING THE PARTIES' RESPECTIVE
INDEMNIFICATION OBLIGATIONS UNDER ARTICLE 11, IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES INCURRED BY THE
OTHER PARTY, INCLUDING LOST PROFITS OR ANTICIPATED REVENUES OR PROFITS RELATING
TO THE SAME), ARISING FROM OR RELATING TO THIS AGREEMENT OR THE SUBJECT MATTER
HEREOF, WHETHER BASED IN CONTRACT, TORT (INCLUDING WITHOUT LIMITATION
NEGLIGENCE) OR OTHERWISE, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF
ESSENTIAL PURPOSE OR ANY LIMITED REMEDY PROVIDED HEREIN.

         14.      GOVERNING LAW. The validity and interpretation of this
Agreement and the legal relations of the Parties under this Agreement shall be
governed by the laws of the State of California, without reference to its
conflict of laws principles.

         15.      ASSIGNMENT. This Agreement shall not be assignable by either
Party without the prior written consent of the other Party; except that Exelixis
or Cytokinetics may assign, at their discretion, the Agreement without such
consent (i) to an Affiliate, or (ii) to a third party pursuant to merger,
acquisition, consolidation, reorganization or sale of all or substantially all
of its assets to which this Agreement relates; provided that, such assignee or
transferee has agreed in writing to be bound by the terms and conditions of this
Agreement. Any attempted assignment contrary to this Article 15 shall be void.
Subject to the foregoing, this Agreement shall be binding upon and inure to the
benefit of the Parties, their successors and assigns.

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

         17.      INDEPENDENT CONTRACTOR. For the purposes of this Agreement and
all services to be provided hereunder, each Party shall be, and shall be deemed
to be, an independent contractor and not an agent or employee of the other
Party. Neither Party shall have authority to make any statements,
representations or commitments of any kind, or take action, which shall be
binding on the other Party, except as may be explicitly provided for herein or
authorized by the other Party in writing.

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         18.      SEVERABILITY. If any one or more provisions of this Agreement
shall be found to be illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby, provided the surviving agreement materially
comports with the parties' original intent.

         19.      WAIVER. Waiver or forbearance by either Party or the failure
by either Party to claim a breach of any provision of this Agreement or exercise
any right or remedy provided by this Agreement or applicable law, shall not be
deemed to constitute a waiver with respect to any subsequent breach of any
provision hereof.

         20.      NOTICES. Any notice, payment or report required or permitted
to be given under this Agreement shall be deemed to have been sufficiently given
if mailed by first class certified or registered airmail addressed to the
Parties as follows:

              Exelixis - U.S. Postal Service:
                     Exelixis, Inc.
                     170 Harbor Way
                     P.O. Box 511
                     South San Francisco, California 94083-0511 USA
                     Attention: Vice President, Corporate Technology Development

              Exelixis - Other Mail Delivery Carrier:
                     Exelixis,Inc.
                     169 Harbor Way
                     South San Francisco, California 94080 USA
                     Attention: Vice President, Corporate Technology Development

              Cytokinetics:
                     Cytokinetics, Inc.
                     280 East Grand Avenue
                     South San Francisco, California 94080
                     Attention: Senior Vice President, Finance and Corporate
                                Development
                                Chief Financial Officer

         21.      ENTIRE AGREEMENT. This instrument contains the entire
agreement between the Parties hereto as to the subject matter hereof. The
provisions of the Confidential Disclosure Agreement, entered into on February
12, 2001, is expressly superseded and terminated hereby, and any confidential or
proprietary information disclosed thereunder shall be subject to the terms of
this Agreement. No verbal agreement or representation between the Parties hereto
either before, during or after execution of this Agreement shall affect or
modify any of the terms or obligations herein. No amendment or modification of
any term, provisions or conditions of this Agreement shall be binding or
enforceable unless in writing and signed by each of the Parties. This Agreement
may be executed in counterparts, each of which taken together shall be
considered part of the entire document.

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The undersigned represent that they are duly authorized to execute this
Agreement.

CYTOKINETICS, INC.                             EXELIXIS, INC.

BY: /s/ Robert I. Blum                         By: /s/ Glen Y. Sato
    -------------------------                      ----------------------------

Name: Robert I. Blum                           Name: Glen Y. Sato

Title: ______________________                  Title: CFO and VP, Legal Affairs

Date: 12/28/01                                 Date: 12/28/01

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                                   APPENDIX A

                                RESEARCH PROGRAM

1) LIBRARY SCOPE & SIZE;

A library of [*] compounds based on [*] will be designed jointly by Cytokinetics
and Exelixis and subsequently synthesized by Exelixis.

2) LIBRARY CONSTRUCTION:

[*] compounds will be derived from [*] libraries of [*] compounds. Each of the
[*] libraries will be derived from [*] of [*] and a [*] of [*] per [*] (each, a
"Library"). The details and identity of [*] component for the [*] will be
determined by the JRC. Approximately [*] of each compound will be prepared and
quality controlled by [*]. [*]. For [*] compounds per plate, a [*] of [*] per
Plate will be transferred to Cytokinetics (that is, [*]). Following delivery of
the [*] Plate within a Library, Exelixis shall deliver to Cytokinetics a [*] of
[*] of each [*] used in such Library. Cytokinetics shall own all right, title
and interest in such delivered [*], and shall have the right to use and exploit
such [*] without limitation or obligation to account to Exelixis to the extent
allowed under Section 4 of the Agreement.

3) EXELIXIS COMPOUND PLATE FORMAT:

Exelixis formats screening plates in a [*] plate format with [*], i.e., a total
of [*] compounds per plate.

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  omitted portions.

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                                   APPENDIX B

                            QUALITY CONTROL CRITERIA

[*]

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

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[*]

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  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

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                                      -23

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