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                                                                   Exhibit 10.12

UIC                                                 Intellectual Property Office

                           EXCLUSIVE LICENSE AGREEMENT

                              for UIC's technology

                     Betulinic Acid as Anti-Melanoma (CN43)
             Semi-Synthesis of Betulinic Acid and Derivatives (CQ15)
                Use of Betulinic Acid for Cancer Treatment (CQ16)
         Treatment and Prevention of Human Melanoma with Betulinic Acid
                               Derivatives (CQ17)

                                TABLE OF CONTENTS

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PREAMBLE
ARTICLES:
    <S>              <C>
    I                DEFINITIONS
    II               GRANT
    III              DUE DILIGENCE
    IV               PAYMENTS
    V                REPORTS AND RECORDS
    VI               PATENT PROSECUTION
    VII              INFRINGEMENT
    VIII             PRODUCT LIABILITY
    IX               EXPORT CONTROLS
    X                NON-USE OF NAMES
    XI               ASSIGNMENTS
    XII              TERMINATION
    XIII             PAYMENTS, NOTICES AND OTHER COMMUNICATIONS
    XIV              MISCELLANEOUS PROVISIONS
</Table>

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UIC                                                 Intellectual Property Office

This Agreement is entered into this second day of December, 1999 ("Effective
Date") by and between THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS, a
body corporate and politic of the State of Illinois through its Office of The
Vice Chancellor for Research, Intellectual Property Office, 1737 West Polk
Street, Chicago, Illinois 60612 and on behalf of the Chicago campus and units
reporting to it (hereinafter "UNIVERSITY") and Advanced Life Sciences, a
corporation of the State of Illinois with principal offices at 12305 S.
New Avenue, Suite E, Lemont, IL, 60439, (hereinafter "LICENSEE").

                                   WITNESSETH

WHEREAS, in the course of research conducted under UNIVERSITY auspices, John M.
Pezzuto, Tapas K. DasGupta, Darrick S.H.L. Kim, Mary Lou Schmidt, Konrad Marc
Kuzmanoff, and Lydia Ling-Indeck, of UNIVERSITY, (the "INVENTOR(S)"), have
produced inventions entitled "Betulinic Acid as Anti-Melanoma" (CN43), and/or,
"Semi-Synthesis of Betulinic Acid and Derivatives" (CQ15), and/or, "Use of
Betulinic Acid for Cancer Treatment" (CQ16), and/or, "Treatment and Prevention
of Human Melanoma with Betulinic Acid Derivatives" (CQ17) (collectively called
the "INVENTION");

     WHEREAS, pursuant to assignments by the INVENTORS to UNIVERSITY of all
their right, title and interest in and to the INVENTION and any patents
resulting therefrom, UNIVERSITY is the owner of the INVENTION and the
corresponding Patent Rights, and has the right to grant licenses under said
Patent Rights;

     WHEREAS, UNIVERSITY desires to have the Patent Rights utilized in the
public interest and is willing to grant a license to its interest thereunder;

     WHEREAS, LICENSEE seeks to commercially develop the Patent Rights through a
thorough, vigorous and diligent program of exploiting the Patent Rights whereby
public utilization shall result therefrom; and

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto agree as follows:

                             ARTICLE I - DEFINITIONS

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

     1.1    "LICENSEE" shall mean Advanced Life Sciences.

     1.2.   "Affiliate" shall mean any person, firm, corporation or other
entity controlling, controlled by, or under common control with a party hereto.
The term "control" wherever used throughout this Agreement shall mean ownership,
directly or indirectly, of more than 50% of the

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equity capital. Other than LICENSEE, any corporation, company, partnership,
joint venture, firm, individual or other entity which does not come within this
definition shall be a "Non-Affiliate".

     1.3    "Patent Rights" shall mean all of the following UNIVERSITY
intellectual property:

            (a)  the United States patent applications entitled " Method and
                 Composition for Selectively Inhibiting Melanoma Using Betulinic
                 Acid", filed in the United States Patent Office on March 3,
                 1995, and assigned Serial Number 08/407,756; "Methods of
                 Manufacturing Betulinic Acid", filed in the United States
                 Patent Office on March 27, 1997, and assigned Serial Number
                 08/826,217; "Method and Composition for Selectively Inhibiting
                 Melanoma Using Betulinic Acid", filed in the United States
                 Patent Office on May 16, 1997, and assigned Serial Number
                 08/858,011; "Method and Composition for Treating Cancers",
                 filed in the United States Patent Office on May 16, 1997, and
                 assigned Serial Number 08/857,413, and all foreign patent
                 applications based on this U.S. application;
            (b)  United States and foreign patents issued from this application,
                 and divisionals and continuations of this application;
            (c)  claims of U.S. and foreign continuation-in-part applications,
                 and of the resulting patents, which are directed to subject
                 matter specifically described in the U.S. patent applications
                 Serial Numbers as listed herein;
            (d)  any reissues or re-examinations of patents described in (a),
                 (b), or (c), above.

     1.4    A "Licensed Product" shall mean any product or part thereof
developed by or on behalf of LICENSEE which:

            (a)  is covered in whole or in part by an issued, unexpired claim or
                 a pending claim contained in the Patent Rights in the country
                 in which any product is made, used or sold; or
            (b)  is manufactured by using a process which is covered in whole or
                 in part by an issued, unexpired claim or a pending claim
                 contained in the Patent Rights in the country in which any such
                 process is used or in which any such product is used or sold.

     1.5    A "Licensed Process" shall mean any process which is covered in
whole or in part by an issued, unexpired claim or a pending claim contained in
the Patent Rights in any country in which such process is practiced.

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     1.6    "Net Sales" shall mean LICENSEE's or Affiliate's billings for sales
of Licensed Products or Licensed Processes produced hereunder less the sum of
the following:

            (a)  discounts allowed in amounts customary in the trade;
            (b)  sales, tariff duties and/or use taxes directly imposed and with
                 reference to particular sales;
            (c)  outbound transportation prepaid or allowed;
            (d)  amounts allowed or credited on returns; and
            (e)  bad debts and uncollectible receivables.

     No deductions shall be made for commissions paid to individuals whether
they be with independent sales agencies or regularly employed by LICENSEE of
Affiliates and on its payroll, or for cost of collections. Licensed Products
shall be considered "sold" when billed or invoiced.

     1.7    "Sublicense" shall mean the right to make, use or sell Licensed
Products or Licensed Processes, other than by outright sale to any non-Affiliate
(including any non-Affiliated distributor).

     1.8    "FIELD OF USE" shall mean the use of the INVENTION in the field of
human therapeutics.

     1.9    "TERRITORY" shall mean the use of the INVENTION in the area of the
World.

                               ARTICLE II - GRANT

     2.1    UNIVERSITY hereby grants to LICENSEE an exclusive worldwide right
and license in the FIELD OF USE and in the TERRITORY, including the right to
sublicense, to make, have made, use, lease and sell products, processes and
other applications which is or are covered by, embodied in, or derived from the
INVENTION, and/or the Patent Rights until the end of the last to expire patent
of the Patent Rights or until this Agreement shall be terminated, as hereinafter
provided, whichever occurs first, and subject to the rights reserved or observed
in Section 2.2 below.

     2.2    Notwithstanding any other provisions of this Agreement, it is agreed
that UNIVERSITY shall retain the right to practice the licensed Patent Rights
for its own non-commercial teaching and research activities.

     2.3    LICENSEE hereby agrees that every sublicensing agreement to which it
shall be party and which shall relate to the rights, privileges and license
granted hereunder shall contain a statement describing the date upon which
LICENSEE'S exclusive rights, privileges and license hereunder shall terminate.

     2.4    LICENSEE agrees that any sublicenses granted by it shall provide
that the obligations to UNIVERSITY of Article III, Sections 3.1 and 3.2(c), V,
VII, VIII, IX, X, XII, and

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XIV of this Agreement shall be binding upon the sublicensee as if it were a
party to this Agreement. LICENSEE further agrees to attach copies of these
Articles to sublicense agreements.

     2.5    LICENSEE agrees to forward to UNIVERSITY a copy of any and all fully
executed sublicense agreements, and further agrees to forward to UNIVERSITY
annually a copy of such reports received by LICENSEE from its sublicensees
during the preceding twelve (12) month period under the sublicenses as shall be
pertinent to a royalty accounting under said sublicense agreements.

     2.6    If LICENSEE receives from sublicensees anything of value in lieu of
cash payments based upon payment obligations of any sublicense under this
Agreement, LICENSEE shall pay UNIVERSITY royalty income based on the fair market
value of such payment, unless UNIVERSITY waives in writing such payment
obligation.

     2.7    The license granted hereunder shall not be construed to confer any
rights upon LICENSEE by implication, estoppel or otherwise as to any technology
not included in the Patent Rights.

                           ARTICLE III - DUE DILIGENCE

     3.1    LICENSEE and its sublicensees shall use their best efforts to bring
Licensed Products or Licensed Processes to market through a thorough, vigorous
and diligent program for exploitation of the Patent Rights.

     3.2    In addition, LICENSEE shall adhere to the following milestones:

            (a)  LICENSEE shall deliver to UNIVERSITY, within six months of the
                 date of execution of this Agreement, its detailed business,
                 research and development plan including relevant schedules of
                 capital investments needed to implement the plan, financial,
                 equipment and facility plans, number and kind of personnel and
                 time planned for each phase of development of the Patents
                 Rights for a three year period. Similar reports shall be
                 provided to UNIVERSITY annually to relay update and status
                 information on LICENSEE's business, research and development
                 progress, including projections of activity anticipated for the
                 next reporting year.

            (b)  LICENSEE shall be responsible for diligently and promptly
                 taking all reasonable steps to secure all required and/or
                 necessary governmental approvals to sell, exploit, or market
                 any and all Licensed Products. LICENSEE shall advise
                 UNIVERSITY, through annual reports to be provided after
                 December 31 of each year pursuant to Section 5.2 below, of its
                 program of development for and status of obtaining said
                 approvals. In the event UNIVERSITY, after full examination of
                 each such report,

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                 determines that the LICENSEE is not taking reasonable steps to
                 secure all required and/or necessary governmental approvals as
                 specified above, UNIVERSITY shall notify LICENSEE. If LICENSEE
                 fails to so satisfy UNIVERSITY, then UNIVERSITY shall give
                 notice of same and may terminate this Agreement pursuant to
                 Section 12.3 below.

            (c)  LICENSEE shall initiate at its expense, Phase I clinical trials
                 within three months of the approval of an Investigational New
                 Drug application (IND) by the U.S. Food and Drug Administration
                 (FDA).

     3.3    LICENSEE's failure to perform in accordance with Sections 3.1 and
3.2 above shall be grounds for UNIVERSITY to terminate this Agreement pursuant
to Section 12.3 below.

                              ARTICLE IV - PAYMENTS

     4.1    For the rights, privileges and licenses granted hereunder, LICENSEE
shall pay to the UNIVERSITY, in the manner hereinafter provided, until the end
of the last to expire patent of the Patent Rights or until this Agreement shall
be terminated, as hereinafter provided, whichever occurs first:

            (a)  a nonrefundable license issue fee of Fifteen Thousand Dollars
                 ($15,000), payable immediately upon signing this Agreement;
            (b)  a royalty in an amount equal to six percent (6%) of the Net
                 Sales by LICENSEE or any Affiliate of the Licensed Products or
                 Licensed Processes;
            (c)  a royalty of six percent (6%) of Net Sales made by Sublicensee
                 and twenty percent (20%) of all income, other than Net Sales
                 based income, paid by Sublicensee to LICENSEE;
            (d)  milestone payments as follows: (i) Ten Thousand Dollars ($
                 10,000) upon the filing of an IND; (ii) Twenty Five Thousand
                 ($25,000) upon the filing of a New Drug Application (NDA) from
                 the FDA for each Licensed Product for which LICENSEE receives a
                 NDA; (iii) One Hundred Thousand Dollars ($100,000) upon receipt
                 of a NDA from the Food and Drug Administration for each
                 Licensed Product for which LICENSEE receives a NDA; and
            (e)  during the term of this agreement, LICENSEE agrees to pay
                 UNIVERSITY annual Minimum Royalty Payments, starting after the
                 first sale of LICENSED PRODUCTS in the amount of Five Thousand
                 Dollars ($5,000) per Royalty Year.
            (f)  LICENSEE shall reimburse UNIVERSITY for patent costs pursuant
                 to ARTICLE VI, section 6.3, herein.

     4.2    No multiple royalties shall be payable because any Licensed Product,
its manufacture, use, lease or sale are or shall be covered by more than one of
the Patent Rights

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patent applications or Patent Rights patents licensed under this Agreement, or
to be covered in more than one subsection of Section 4.1 hereof.

     4.3    Royalty payments shall be paid in United States dollars in Chicago,
Illinois, or at such other place as UNIVERSITY may reasonably designate
consistent with applicable laws and regulations. If any currency conversion
shall be required in connection with the payment of royalties hereunder, such
conversion shall be made by using the exchange rate prevailing at the Chase
Manhattan Bank (N.A.) on the last business day of the calendar quarterly
reporting period to which such royalty payments relate.

                         ARTICLE V - REPORTS AND RECORDS

     5.1    LICENSEE shall keep full, true and accurate books of account
containing all particulars that may be necessary for the purpose of showing the
amounts payable to UNIVERSITY hereunder. Said books of account shall be kept at
LICENSEE's principal place of business or at the principal place of business of
the appropriate Division of LICENSEE to which this Agreement relates. For the
term of this Agreement, upon receipt of thirty (30) days prior written notice,
LICENSEE shall allow UNIVERSITY or its agents to inspect such books and records
for the purpose of verifying LICENSEE's royalty statement or compliance in other
respects with this Agreement.

     5.2    LICENSEE, within thirty (30) days after March 31, June 30, September
30, and December 31 of each year, shall deliver to UNIVERSITY true and accurate
reports, giving such particulars of the business conducted by LICENSEE and its
sublicensees during the preceding six-month period under this Agreement as shall
be pertinent to a royalty accounting hereunder. These shall include at least the
following, to be itemized per Licensed Product and Licensed Process:

            (a)  number of Licensed Products and Licensed Processes commercially
                 used, manufactured and sold, rented or leased;
            (b)  total billings for Licensed Products and Licensed Processes
                 commercially used, sold, rented or leased;
            (c)  deductions applicable as provided in Paragraph 1.6.
            (d)  total royalties due;
            (e)  names and addresses of all sublicensees of LICENSEE;
            (f)  total royalty income from all revenues subject to sublicensees'
                 royalties.
            (g)  total sublicensing fee income;
            (h)  total royalties due UNIVERSITY for royalties received from
                 sharing of income from sublicensees; and
            (I)  annually, the LICENSEE's certified financial statements for the
                 preceding twelve (12) months including, at a minimum, a Balance
                 Sheet and an Operating Statement, including full reporting of
                 insurance coverage obtained, as required by Section 8.2 below.

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     5.3    With each such report submitted, LICENSEE shall pay to UNIVERSITY
the royalties due and payable under this Agreement. If no royalties shall be
due, LICENSEE shall so report.

     5.4    On or before the ninetieth (90th) day following the close of
LICENSEE's fiscal year, LICENSEE shall provide UNIVERSITY with LICENSEE's
compiled financial statements as provided to its shareholders for the preceding
fiscal year including, at a minimum, a Balance Sheet and an Operating Statement.

                            ARTICLE VI - PATENT COSTS

     6.1    UNIVERSITY shall diligently prosecute and maintain the Patent Rights
using counsel of its choice, in consultation with LICENSEE. The UNIVERSITY shall
provide LICENSEE with copies of all relevant documentation so that LICENSEE may
be informed and appraised of the continuing prosecution, and LICENSEE agrees to
keep this documentation confidential.

     6.2    UNIVERSITY shall use its best efforts to amend any patent
application to include claims reasonably requested by LICENSEE and required to
protect the Licensed Products contemplated to be sold under this agreement.

     6.3    LICENSEE shall be responsible for and pay a total of Fifty Thousand
Dollars ($50,000) for past costs and expenses incurred by UNIVERSITY for the
preparation, filing, prosecution, issuance, and maintenance of the Patent
Rights. LICENSEE shall pay UNIVERSITY for such past costs as follows: ten
thousand dollars ($10,000) upon license issuance and ten thousand dollars
($10,000) on the first, second, third and fourth anniversary dates of the
Effective Date. LICENSEE shall be responsible and pay for the preparation,
filing, prosecution, issuance, and maintenance of foreign Patent Rights incurred
by UNIVERSITY after October 14, 1999 and during the term of this Agreement. Such
payments shall be due within thirty (30) days of receipt of invoice from
UNIVERSITY.

                           ARTICLE VII - INFRINGEMENT

     7.1    UNIVERSITY as owner of the Patent Rights shall control activities
related to enforcing the Patent Rights. LICENSEE as the exclusive commercial
user of the Patent Rights shall assume primary responsibility for enforcing the
Patent Rights within relevant commercial markets in the FIELD OF USE. In
exercising these responsibilities, LICENSEE shall promptly contact alleged third
party infringers and take all reasonable steps to persuade such third parties to
desist from infringing the Patent Rights, including initiating and prosecuting
an infringement action if necessary, or defending a challenge to the validity of
the Patent Rights. LICENSEE also shall notify UNIVERSITY of each instance of
alleged infringement and shall keep UNIVERSITY informed of all stages of Patent
Rights enforcement. LICENSEE may not use the name of UNIVERSITY as party
plaintiff without prior written consent of UNIVERSITY. All costs of any action
to enforce the Patent Rights taken by LICENSEE shall be borne by

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LICENSEE and LICENSEE shall keep any recovery of damages derived therefrom, the
excess of such recovery over such costs shall be included in LICENSEE's Net
Sales. No settlement, consent judgment or other voluntary final disposition of
the suit may be entered into without the consent of UNIVERSITY, which consent
shall not unreasonably be withheld.

     7.2    During the term of this Agreement, UNIVERSITY shall have the right,
but shall not be obligated, to assume from LICENSEE the primary responsibility
of enforcing the Patent Rights or any individual case of alleged or actual
infringement. In such case UNIVERSITY shall notify LICENSEE in writing of its
intention to exercise this right, which will become effective within sixty (60)
days of LICENSEE's receiving such written notice. UNIVERSITY agrees to keep
LICENSEE informed of all stages of its enforcing. UNIVERSITY may use the name of
LICENSEE as party plaintiff. All costs of any action to enforce the Patent
Rights taken by UNIVERSITY shall be borne by UNIVERSITY and UNIVERSITY shall
share with LICENSEE any recovery of damages derived therefrom on a pro rata
basis per costs incurred by UNIVERSITY and LICENSEE respectively in such
policing activity.

     7.3    In the event LICENSEE does not enforce the Patent Rights per section
7.1 above, UNIVERSITY shall inform LICENSEE in writing of same. UNIVERSITY may
terminate this Agreement within sixty (60) days of receipt by LICENSEE of such
notice pursuant to Article 12.3 below.

     7.4    In any infringement suit as either party may institute to enforce
the Patent Rights against third parties pursuant to this Agreement, the other
party hereto shall, at the request and expense of the party initiating such
suit, cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information,
samples, specimens, and the like.

     7.5    LICENSEE, during the exclusive period of this Agreement, shall have
the sole right in accordance with the terms and conditions herein to sublicense
any alleged infringer in the FIELD OF USE for future use of the Patent Rights,
with any royalty or up-front fees to be shared with UNIVERSITY as per Clause
4.1(c) above.

     7.6    Each party shall promptly notify the other in writing in the event
that a third party shall bring a claim of infringement against UNIVERSITY or
LICENSEE, either in the United States or in any foreign country in which there
are Patent Rights. If the alleged infringement is so substantial as to threaten
the competitive position of LICENSEE and/or LICENSEE is temporarily enjoined
from exercise of its license hereunder, and if UNIVERSITY elects not to defend
against such claim and not to obtain a license to permit LICENSEE to exercise
its license free of such claim, then LICENSEE may in its own name and at its
sole expense defend such claim and may compromise, settle or otherwise pursue
such defense in such a manner and on such terms as LICENSEE shall see fit.
UNIVERSITY, at its own expense and through counsel of its selection may become a
party to such defense and/or settlement and compromise. In any event, UNIVERSITY
shall have the right to defend, at its own expense, any such third party

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claim or action and to settle or compromise the same in such manner as its shall
see fit. LICENSEE may participate in such litigation or claim on its behalf at
its own expense.

     7.7    In the event LICENSEE is permanently enjoined from exercising its
license rights granted hereunder pursuant to an infringement action brought by a
third party, or if both LICENSEE and UNIVERSITY elect not to undertake the
defense or settlement of such a claim of alleged infringement for a period of
six months from notice of such claim or suit, then LICENSEE sole remedy shall be
to terminate this Agreement with respect to the infringing patent claims
following thirty (30) days' written notice to UNIVERSITY and in accordance with
the terms of Article XI hereof.

                ARTICLE VIII - INDEMNIFICATION. PRODUCT LIABILITY

     8.1    LICENSEE shall at all times during the term of this Agreement and
thereafter, indemnify, defend and hold UNIVERSITY, its trustees, officers,
employees and affiliates, harmless against all claims and expenses, including
legal expenses and reasonable attorneys' fees, arising out of the death of or
injury to any person or persons or out of any damage to property and against any
other claim, proceeding, demand, expense and liability of any kind whatsoever
resulting from the production, manufacture, sale, use, lease, consumption or
advertisement of the Licensed Product(s) and/or Licensed Process(es) or arising
from any obligation of LICENSEE hereunder.

     8.2    For the term of this Agreement, upon the commencement of production,
sale, or transfer, whichever occurs first, of any Licensed Product or Licensed
Process, LICENSEE shall obtain and carry in full force and effect liability
insurance which shall protect LICENSEE and UNIVERSITY in regard to events
covered by Section 8.1 above, the nature and extent of which insurance coverage
shall be commensurate with usual and customary industry practices, as determined
by LICENSEE's good faith assessment.

     8.3    Except as otherwise expressly set forth in this Agreement,
UNIVERSITY MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND,
EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND VALIDITY OF PATENT RIGHTS
CLAIMS, ISSUED OR PENDING.

                          ARTICLE IX - EXPORT CONTROLS

     It is understood that UNIVERSITY is subject to United States Laws and
regulations controlling the export of technical data, computer software,
laboratory prototypes and other commodities (including the Arms Export Control
Act, as amended and the Export Administration Act of 1979), and that its
obligations hereunder are contingent on compliance with applicable United States
export laws and regulations. The transfer of certain technical data and
commodities may require a license from the cognizant agency of the United States
Government and/or written assurances by LICENSEE that LICENSEE shall not export
data or

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commodities to certain foreign countries without prior approval of such agency.
UNIVERSITY neither represents that a license shall not be required nor that, if
required, it shall be issued. LICENSEE shall be responsible for compliance with
any and all applicable United States or foreign export or import laws and
regulations.

                          ARTICLE X - NON-USE OF NAMES

     LICENSEE shall not use the names of the University of Illinois nor any of
its employees, nor any adaptation thereof, in any advertising, promotional or
sales literature without prior written consent obtained from UNIVERSITY in each
case, except that LICENSEE may state that it is licensed by UNIVERSITY under one
or more of the patents and/or applications comprising the Patent Rights and, if
appropriate, that research related to the Patent Rights is ongoing at
UNIVERSITY.

                             ARTICLE XI - ASSIGNMENT

     11.1   This Agreement may not be assigned by LICENSEE without prior written
consent from UNIVERSITY and this consent shall not be unreasonably withheld.

     11.2   Notwithstanding the foregoing prohibition, LICENSEE may without
UNIVERSITY's consent, merge into, consolidate with, or transfer substantially
all of its assets ("substantially" being respectively EIGHTY PERCENT (80%) or
more thereof) as an entirety to any corporation, so long as the successor
surviving corporation in any such merger, consolidation, transfer or
reorganization assumes in writing the obligations of this Agreement. Such
merger, consolidation, transfer or reorganization shall not in any way be a
breach of this Article XI, nor be any default under this Agreement.

                            ARTICLE XII - TERMINATION

     12.1   UNIVERSITY may terminate this Agreement if LICENSEE becomes
insolvent or, a petition in bankruptcy is filed against LICENSEE and is
consented to, acquiesced in or remains undismissed for ninety (90) days; or
makes a general assignment for the benefit of creditors, or a receiver is
appointed for LICENSEE, and LICENSEE does not return to solvency before the
expiration of a thirty (30) day period.

     12.2   Should LICENSEE fail to pay UNIVERSITY license fees, royalties and
patent expenses due and payable hereunder for more than sixty (60) days,
UNIVERSITY shall have the right to terminate this Agreement on thirty (30) days
written notice, unless LICENSEE shall pay UNIVERSITY within the ninety (90) day
period, all such license fees, royalties and patent expenses and interest due
and payable. Upon the expiration of the thirty (30) day period, if LICENSEE
shall not have paid all such royalties and interest due and payable, the rights,
privileges and license granted hereunder shall terminate, unless LICENSEE's
failure to pay arises from a bonafide dispute concerning royalties due, in which
case either of the parties may elect to pursue the alternative disputes
resolution provided by Section 12.6 below.

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     12.3   Upon any material breach of this Agreement by LICENSEE, other than
those occurrences set out in Sections 12.1 and 12.2, including any faliure to
perform due diligence under Article III hereinabove, which shall always take
precedence in that order over any material breach or default referred to in this
Section 12.3, UNIVERSITY shall have the right to terminate this Agreement and
the rights, privileges and license granted hereunder by ninety (90) days' notice
to LICENSEE. Such termination shall become effective unless LICENSEE shall have
cured any such breach prior to the expiration of the ninety (90) day period.

     12.4   LICENSEE shall be entitled to terminate this Agreement upon ninety
(90) days advance written notice to UNIVERSITY, in the event of UNIVERSITY's
material breach of any of the provisions of this Agreement, which breach is not
cured (if capable of being cured) within this ninety (90) day period, or if
conditions of Section 7.3 apply.

     12.5   Upon termination of this Agreement for any reason, nothing herein
shall be construed to release either party from any obligation that matured
prior to the effective date of such termination. LICENSEE must return to
UNIVERSITY all materials containing Licensed Product; provided, however, that
LICENSEE shall have the right for one year thereafter to dispose of all Licensed
Products then in its inventory, and shall pay royalties thereon, in accordance
with the provisions of Article IV and shall submit the related reports as
required by Article V, as though this Agreement had not terminated.

     12.6   Other than any claim arising from LICENSEE's failure to pay license
fees or patent expenses due under this contract, any controversy or bonafide
disputed claim arising between the parties to this Agreement, which dispute
cannot be resolved by mutual agreement shall, by the election of either party,
be resolved by submitting to dispute resolution before a fact-finding body
composed of one or more experts in the field, selected by mutual agreement
within thirty days of written request by either party. Said dispute resolution
shall be held in Chicago or at such other place as shall be mutually agreed upon
in writing by the parties. The fact-finding body shall determine who shall bear
the cost of said resolution. In the event that the parties cannot mutually agree
within said thirty (30) days on the dispute resolution body, the parties will
apply the procedural rules of a mutually agreeable forum.

            ARTICLE XIII - PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

     Any payment, notice or other communication pursuant to this Agreement shall
be sufficiently made or given on the date of mailing if sent to such party by
certified first class mail, postage prepaid, addressed to it at its address
below or as it shall designate by written notice given to the other party:

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     In the case of UNIVERSITY:

          The University of Illinois at Chicago
          Intellectual Property Office, OVCR (M/C 672)
          310 AOB, 1737 West Polk Street
          Chicago, IL 60612-7227
          Attn: Director

     In the case of LICENSEE:

          Advanced Life Sciences
          12305 S. New Avenue
          Lemont, IL 60439
          Attn: Michael Flavin, Ph.D.
                President

                     ARTICLE XIV - MISCELLANEOUS PROVISIONS

     14.1   This Agreement shall be construed, governed, interpreted and applied
in accordance with the laws of the State of Illinois, U.S.A., except that
questions affecting the construction and effect of any patent shall be
determined by the law of the country in which the patent was granted.

     14.2   The parties hereto acknowledge that this Agreement sets forth the
entire Agreement and understanding of the parties hereto as to the subject
matter hereof, and shall not be subject to any change or modification except by
the execution of a written instrument subscribed to by the parties hereto.

     14.3   The provisions of this Agreement are severable, and in the event
that any provisions of this Agreement shall be determined to be invalid or
unenforceable under any controlling body of the law, such invalidity or
unenforceability shall not in any way affect the validity or enforceability of
the remaining provisions hereof.

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

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

                                       13
<Page>

UIC                                                 Intellectual Property Office

     14.6   This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be an original and all such
counterparts shall together constitute but one and the same agreement.

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

THE BOARD OF TRUSTEES OF THE UNIVERSITY OF ILLINOIS

<Table>
<S>                                                   <C>
By   /s/ Craig S. Bazzani                             Date 12/2/99
   ----------------------------------                     ------------
  Craig S. Bazzani, Comptroller

                                                                   APPROVED
By /s/ Michele M. Thompson                            Date 12-2-99
   ----------------------------------                     ------------
  Michele M. Thompson, Secretary
                                                                   /s/ Jill A. Tarzian Sorensen    12-2-99
                                                                   ----------------------------    -------
                                                                   Jill A. Tarzian Sorensen         Date
                                                                   Director
                                                                   Intellectual Property Office
FOR ADVANCED LIFE SCIENCES

By   /s/ Michael T. Flavin                            Date 12/6/99
   ----------------------------------                     ------------

Printed Name   MICHAEL T. FLAVIN
             ------------------------

Its       PRESIDENT
   ----------------------------------
   (Official Title)
</Table>

                                       14<Page>

                                                                   Exhibit 10.13

                                   ASSIGNMENT

          WHEREAS BAXTER INTERNATIONAL INC., formerly BAXTER TRAYENOL
LABORATORIES, INC. (BAXTER), a Delaware corporation having offices at One Baxter
Parkway, Deerfield, Illinois 60015, is the sole owner of the following Invention
Records:

          Invention Record No. 86-3497 entitled "Chemical Synthesis of a
          Potential Thromboxane Receptor Antagonist"

          Invention Record No. 87-3578 entitled "Prevention or Treatment of
          Adult Respiratory Distress Syndrome with Combinations of Ibuprofen and
          2,3-Diacetoxybenzoic Acid"

          WHEREAS, Michael T. Flavin (FLAVIN), residing at 9026 North Menard
Avenue, Morton Grove, Illinois 60053, is desirous of acquiring the entire right,
title and interest in and to said Invention Record.

          NOW THEREFORE, BE IT KNOWN, that for and in consideration of the sum
of One Dollar ($1.00) and other valuable consideration, the receipt of which is
hereby acknowledged BAXTER has sold, assigned, transferred and set over, and by
these presents does hereby sell, assign, transfer, and set over, unto said
FLAVIN, the entire right,

                                       1-
<Page>

title and interest in and to Invention Records No. 86-3497 and 87-3578 and in
and to all patents and patent applications based thereon, and all extensions,
renewals and reissues thereof, including without limitation of generality, any
and all chooses in action as fully and entirely as the same would have been held
and enjoyed by BAXTER if this Assignment had not been made.

          IN WITNESS WHEREOF, BAXTER INTERNATIONAL INC. has caused this
Assignment to be signed by its duly authorized officer and attested on this 2nd
day of February, 1989.

                                                        BAXTER INTERNATONAL INC.

                                                     By:  /s/ Patrick J. Fortune
                                                         -----------------------

State of Illinois

County of Lake

          On this 2nd day of Feb, 1989, before me, a Notary Public, appeared
Patrick J. Fortune to me personally known to be the same person whose name
subscribed to the foregoing instrument, and acknowledged that he executed said
instrument as a free and voluntary act and for the uses and purposes therein
expressed.

                                                     /s/ Shirley A. Horton
                                                    ------------------------
                                                         Notary Public

                                                   "OFFICIAL SEAL"-Lake County
                                                         SHIRLEY A. HORTON
                                                Notary Public. State of Illinois
                                                  My Commission Expires 1/24/92

                                       -2-
<Page>

                     PATENT ASSIGNMENT AND LICENSE AGREEMENT

          The parties to this agreement are: Baxter International Inc., formerly
Baxter Travenol Laboratories, Inc., having offices at One Baxter parkway,
Deerfield, Illinois 60015 (collectively referred to as "BAXTER"); and Michael T.
Flavin, an Individual residing at 9026 North Menard Avenue, Morton Grove,
Illinois 60053 ("FLAVIN"). The effective date ("EFFECTIVE DATE") of this
Agreement is the date of the last signature of the parties.

                                   Background

          FLAVIN formerly was a full-time employee of BAXTER. BAXTER and FLAVIN
wish to have BAXTER'S rights in the TECHNOLOGY, Invented by FLAVIN and others,
assigned to FLAVIN with the intent that the TECHNOLOGY may be further developed
and sold by FLAVIN in the market place as a product.

          NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1.        Definitions. For the purpose of this Agreement, the following words
and phrases shall be deemed to have the following meaning when used in all
capital letters.

          1.1     TECHNOLOGY shall mean Baxter Invention Record No. 86-3497
entitled "Chemical Synthesis of a Potential Thromboxane Receptor Antagonist"
(Attachment 1) and Baxter Invention Record No. 87-3578 entitled "Prevention or
Treatment of Adult Respiratory Distress Syndrome with Combinations of Ibuprofen
and 2,3-Diacetoxybenzoic Acid" (Attachment 2).

          1.2     NET SALES shall mean SELLING PARTY's gross Invoice price for
PRODUCTS sold or otherwise disposed of hereunder, less the sum of: discounts
allowed in amounts customary in the trade; returns; allowances; and
transportation charges.

<Page>

          1.2.1   No deductions shall be made for commission paid or cost of
collections.

          1.2.2   For the purpose of computing royalties hereunder, PRODUCTS
shall be regarded as sold when they are billed out, or if not billed out, when
they have been shipped, or otherwise delivered to the purchaser, except where
such PRODUCTS are shipped by the SELLING PARTY on consignment or memorandum, in
which event the earned royalty shall be payable to the other party when the
PRODUCTS are sold by the consignee and billed by the SELLING PARTY.

          1.2.3   Anything herein to the contrary notwithstanding, the NET SALES
with respect to all sales, transfers, or consignments made by the SELLING PARTY
to any purchaser which otherwise does not deal at arms-length with the SELLING
PARTY, shall be computed on an amount equal to the price at which the SELLING
PARTY, at the time of such sales, transfers or consignments, would invoice the
same or similar items to purchasers dealing at arms-length with the SELLING
PARTY. Where such PRODUCTS are not currently being offered for sale by the
SELLING PARTY, the NET SALES of PRODUCTS otherwise disposed of, shall be
computed as the average selling price at which product of similar kind and
quality, sold in similar quantities, are then currently being offered for sale
by other manufacturers.

          1.3     PRODUCTS shall mean (1) any Thromboxane receptor antagonist
made by a synthesis based on that described in Invention Record No. 86-3497, and
(2) any treatment containing Ibuprofen and 2,3 Diacetoxybenzoic Acid or other
substances suggested in Invention Record no. 87-3578.

          1.4     BAXTER shall mean Baxter International Inc. and any entity
that Baxter International Inc. owns or controls at least twenty percent (20%) of
the voting stock of the entity.

          1.5     FLAVIN shall mean Michael T. Flavin and any entity that
Michael T. Flavin owns or controls at least twenty percent (20%) of the voting
stock of the entity.

          1.6     SELLING PARTY shall mean either FLAVIN or BAXTER when selling
goods for which a royalty is owed under this agreement.

                                       -2-
<Page>

2.        Rights Granted.

          2.1     Patent Assignment. BAXTER hereby assigns all right, title and
interest in the TECHNOLOGY to FLAVIN. Assignment of the TECHNOLOGY will be
further evidenced by the execution by BAXTER of an assignment attached hereto as
Attachment 3. This assignment will be executed by BAXTER upon the receipt of a
fully executed copy of this Agreement.

          2.2     License Back. FLAVIN hereby grants BAXTER a nonexclusive
license under any patents and patent applications owned by FLAVIN which protect
a chemical synthesis. Thromboxane receptor antagonist, or treatment based on the
TECHNOLOGY, to make, have made, use and sell PRODUCTS throughout the world in
exchange for one and one-half percent (1 1/2%) of the NET SALES of any PRODUCT
thereof sold, or otherwise transferred by BAXTER to third parties where the
PRODUCT falls within the claims of an issued patent owned by FLAVIN.

                  2.2.1   The following provisions apply where BAXTER is paying
a royalty under this agreement. If BAXTER is charged with infringment by a third
party for the manufacture or sale of a PRODUCT for which BAXTER is paying
royalties, BAXTER may deduct the expense of defending or settling such charge
from the royalties paid to FLAVIN. If BAXTER's sales of the product for which it
is paying a royalty are impaired by the infringement of the patents by a third
party and FLAVIN does not file suit within six (6) months of learning of such
infringement, BAXTER may reduce its royalty payment to one percent (1%). Either
FLAVIN or BAXTER may file suit against any third party infringer of the patents
under which BAXTER is paying a royalty. The parties shall share in the proceeds
of the suit in the same percentages with which they funded the lawsuit. FLAVIN
agrees to lend his name, at BAXTER's expense, to any lawsuit filed by BAXTER for
infringement of the patents based the TECHNOLOGY.

                                       -3-
<Page>

2.3       BAXTER shall give FLAVIN Sixty (60) days prior written notice of its
intent to make, have made, use and sell PRODUCTS.

          2.4     Right of First Refusal. Prior to signing a binding agreement
with any third party, FLAVIN shall offer to BAXTER the right to enter into an
agreement with BAXTER on terms and conditions no less favorable than those last
offered the third party.

3.        Consideration

          3.1     Royalty Payment. In consideration for the assignments granted
by BAXTER to FLAVIN, FLAVIN shall pay BAXTER three percent (3%) of NET SALES of
any PRODUCT thereof sold, or otherwise transferred by FLAVIN to third parties,
including PRODUCT sold to BAXTER.

4.        Reports, Records, Payments.

          4.1     Records. FLAVIN and BAXTER shall Keep full, true and accurate
books of account containing all particulars which may be necessary for the
purposes of showing the amount payable to the other party by way of royalty.
Such books of account shall be kept at the parties' addresses as listed on the
first page of this Agreement or at such other location as is later designated by
the parties in writing in the manner described in paragraph 10. Such books and
the supporting data shall be open at all reasonable times, for three (3) years
following the end of the calendar year to which they pertain, to the inspection
of a public accountant retained by the other party at the other party's expense
for the purpose of verifying the royalty statements or compliance in other
respects with the Agreement.

          4.2     Payment. Within sixty (60) days after June 30 and December 31
of each year, FLAVIN shall deliver to BAXTER a true and accurate report, giving
such particulars of the business conducted by FLAVIN during the preceding six
months under this Agreement as are pertinent to a royalty accounting. The first
such accounting period

                                       -4-
<Page>

may be somewhat shorter depending on the date of execution by the parties. The
report shall Include at least the following:

                  the total number of royalty bearing PRODUCTS sold or otherwise
                  disposed of by FLAVIN;
                  the average NET SALES price for the period; and total
                  royalties due.

          4.2.1.  After receiving the grant of a patent which protects a
chemical synthesis, Thromboxane Receptor antagonist or treatment based on the
TECHNOLOGY, FLAVIN shall notify BAXTER in writing to notify of them of the duty
to pay royalties under Paragraph 2.2 for any PRODUCT falling within the claims
of the patent. If BAXTER is conducting any business that is pertinent to a
royalty accounting, BAXTER shall deliver to FLAVIN a true and accurate report of
the BAXTER PRODUCTS and NET SALES in the manner outlined in Paragraph 4.2.

          4.2.2   FLAVIN and BAXTER shall pay to the other party the royalties
due and payable under this Agreement at the times of submission of the reports
required by the preceding paragraphs. If no royalties are due at the times
required, it shall be so reported.

          4.2.3   BAXTER and FLAVIN shall designate from time to time, the place
and entity to which payments are to be made as required herein. Unless otherwise
notified, payments to FLAVIN shall be made to him at the address on page one and
payments to BAXTER shall be directed to:

                  Attention: Parenterals Division Patent Counsel
                  Baxter Healthcare Corporation
                  One Baxter Parkway
                  Deerfield, Illinois 60015

          4.3.4   Taxes. All taxes imposed as a result of the existence of this
Agreement or the performance of the parties hereunder shall be borne and paid by
the party required to do so by applicable law.

                                       -5-
<Page>

          4.3.5   Late Payments. In the event that either party fails to make
any payment to the other party under this Agreement when due, interest shall
accrue on the overdue amount for the period from the due date of such payment
until the date that such payment is made at an annual rate of three percent (3%)
above the prime rate listed in the "Money Rates" column of the WALL STREET
JOURNAL as in effect during such period; and such Interest shall be payable
simultaneously with the overdue amount, or, at BAXTER's option, upon earlier
demand by it. The accrual of such Interest shall not be deemed to be in lieu of
other remedies for breach of contract available to the party to whom royalties
are owed.

5.        Patent Prosecution.

          FLAVIN shall file and prosecute in FLAVIN's name and at his expense
patent applications as he deems to be desirable. FLAVIN agrees to consult with
BAXTER prior to abandoning any applications or patents based on the TECHNOLOGY
by giving BAXTER prior written notice thereof and granting to BAXTER a right of
refusal for continuing such application or patent at BAXTER's expense.

6.        Product Purchase.

          6.1     Private Label. At BAXTER's request, FLAVIN will private label
PRODUCTS for BAXTER with any label copy supplied by BAXTER at BAXTER's expense.

          6.1.1   If a trademark, tradename or logo owned or used by BAXTER is
used in connection with the PRODUCTS, the labeling shall state "Distributed by
Baxter International Inc."

          6.1.2   Each use of a trademark, tradename or logo owned or used by
BAXTER on or in connection with the PRODUCTS shall inure to the benefit of
BAXTER. Except as provided in this section, FLAVIN shall not use any trademark,
tradename or logo used or claimed by BAXTER or any confusingly similar
trademark, tradename or logo during or after the term of this Agreement.

                                       -6-
<Page>

          6.2     Most Favored Terms. FLAVIN agrees to give its first priority
to filling BAXTER purchase orders for PRODUCTS. If FLAVIN sells to third parties
at a lower price, or under more favorable terms and conditions than it is
selling to BAXTER, FLAVIN shall make such price, or terms and conditions,
available to BAXTER at the same or similar purchase volumes.

7.        Confidential Information.

          7.1     FLAVIN Information. Baxter agrees to maintain as confidential
Invention Records 86-3497 and 87-3578 to the same extent that it maintains the
confidentiality of its own Invention Records. Any information received from
Flavin, including Information and designs disclosed by FLAVIN to BAXTER, other
than information covered by a separate written agreement, may be used by BAXTER
and disclosed by BAXTER to third parties.

          7.2     BAXTER Information. FLAVIN acknowledges that as a former
full-time employee of BAXTER that he has been exposed to confidential
information of BAXTER. FLAVIN shall not use or divulge to others such
confidential information.

          7.3     Exceptions to Confidentiality. For the purpose of Paragraphs
7.1 and 7.2, information known to the party receiving the confidential
information (Receiving Party) shall not be considered confidential if it: is or
becomes publicly known through no wrongful act of the Receiving Party; or is
received from a third party without similar restriction and without breach of
this Agreement; or is furnished by the party disclosing the confidential
information (Disclosing Party) to a third party without a similar restriction on
the third party's rights; or is approved for release by written authorization of
the Disclosing Party. For the purposes of this paragraph, FLAVIN shall be
considered the Disclosing Party and BAXTER the Receiving Party only with respect
to Invention Records 86-3497 and 87-3578.

                                       -7-
<Page>

8.        Employment

          8.1     BAXTER Employees. During the term of this Agreement and for a
period of one year thereafter, FLAVIN shall not employ any other BAXTER employee
for work relating in any way to the PRODUCTS without BAXTER's prior written
consent.

9.        Termination.

          9.1     Term. This Agreement shall terminate on the day of expiration
of the last to expire of any patent which issues based on the TECHNOLOGY, or if
no patent issues, this Agreement shall terminate ten (10) years after the
EFFECTIVE DATE of this Agreement.

          9.2     Material Breach.

          9.2.1   BAXTER may terminate this Agreement for any material breach by
FLAVIN of this Agreement, by giving ninety (90) days written notice to the other
party if such breach shall, as of the expiration of said ninety (90) day period,
remain uncured.

          9.2.2   FLAVIN may terminate this Agreement for any material breach by
BAXTER of this Agreement, by giving ninety (90) days written notice to the other
party if such breach shall, as of the expiration of said ninety (90) day period,
remain uncured.

          9.3     Bankruptcy. BAXTER may terminate this Agreement effective
immediately upon the giving of notice, if FLAVIN shall file a petition in
bankruptcy, or shall be adjudicated a bankrupt, or shall take advantage of the
insolvency laws of any state, territory or country, or shall be voluntarily or
involuntarily dissolved, or shall have a receiver, trustee, or other court
officer appointed for its property. If any of the above-described events occur,
all assignments granted by BAXTER under this Agreement shall immediately revert
to BAXTER.

                                       -8-
<Page>

10.       Notices and Other Communications.

          All notices provided for in this Agreement shall be given in writing
and shall be effective when either served by personal delivery or five (5) days
after mailing, return receipt requested, postage prepaid, at the addresses
listed below.

          If to BAXTER:

          Baxter Healthcare Corporation
          One Baxter Parkway
          Deerfield, Illinois 60015

          Attention: General Counsel

          If to FLAVIN:

          9026 North Menard Avenue
          Morton Grove, Illinois 60053

11.       Miscellaneous Provisions.

          11.1    Governing Law. This Agreement shall be governed by and
construed in accordance within the laws of the State of Illinois.

          11.2    Merger and Amendment. This Agreement constitutes the entire
understanding of the parties with respect to the subject matter of this
Agreement and merges all prior communications, understandings, and agreements.
It shall not be modified except by a subsequently dated written amendment of the
Agreement, signed on behalf of the parties by their duly authorized
representatives.

          11.3    Severability. If any provision of this Agreement shall be held
by a court of competent jurisdiction to be contrary to law or public policy, the
remaining provisions shall remain in full force and effect.

          11.4    Waiver. No term or provision hereof shall be deemed waived and
no breach consented to or excused, unless such waiver, consent or excuse shall
be in writing and signed by the party claimed

                                       -9-
<Page>

to have waived or consented. Should either party consent, waive or excuse a
breach by the other party, such shall not constitute a consent to, waiver of, or
excuse of any different or subsequent breach whether or not of the same kind as
the original breach.

          11.5    Assignment of Agreement. BAXTER may assign or otherwise
transfer this Agreement and the license granted hereby and the rights acquired
by it hereunder so long as such assignment is of part of a transfer of sale of
that part of BAXTER's business to which this Agreement relates. FLAVIN nay not
assign his rights or obligations under this Agreement to a third party without
prior written consent of BAXTER.

          11.6    Force Majeure. Neither party shall be liable for damages for
any delay or failure of delivery arising out of causes beyond their reasonable
control and without their fault or negligence.

          11.7    Headings. The section headings contained herein are for the
purpose of convenience only and are not intended to define or limit the contents
of such sections.

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

BAXTER INTERNATIONAL INC.

By:          /s/ Patrick J Fortune                 Date:    January 24, 1989
             ------------------------------             ------------------------
Type Name:       Patrick J Fortune
             ------------------------------
Title:           Corporate Vice President
             ------------------------------

MICHAEL T. FLAVIN

   /s/ Michael T. Flavin                           Date:        1/6/89
------------------------------                          ------------------------

                                      -10-
<Page>

                            AMENDED PATENT ASSIGNMENT
                              AND LICENSE AGREEMENT

     This Agreement between Baxter International Inc. (hereinafter "BAXTER") and
Michael T. Flavin (hereinafter "FLAVIN") is an amendment to the Patent License
and License Agreement between BAXTER and FLAVIN executed by BAXTER on
January 24, 1989 (hereinafter "the Original Agreement").

     WHEREAS

     A.   Pursuant to the Original Agreement BAXTER assigned to FLAVIN all
right, title and interest in certain TECHNOLOGY to FLAVIN, subject to payment of
royalties if FLAVIN made, used or sold products that utilize the TECHNOLOGY.

     B.   FLAVIN in turn granted BAXTER a royalty bearing nonexclusive license
under the TECHNOLOGY, gave BAXTER a right of first refusal with respect to
further agreements concerning the TECHNOLOGY, and made BAXTER a preferred
customer with respect to products utilizing the TECHNOLOGY that are made or sold
by FLAVIN.

     C.   Since the Original Agreement was executed, FLAVIN has been conducting
business as MediChem Research, Inc. (hereinafter "MediChem").

     D.   MediChem and FLAVIN have inquired if BAXTER would wish to support
development of the TECHNOLOGY with MediChem.

     E.   BAXTER has determined that it does not have a present interest in
developing the TECHNOLOGY.

     F.   In order to facilitate FLAVIN'S efforts to interest others in
developing the TECHNOLOGY, BAXTER is willing to give up certain of its rights to
the TECHNOLOGY under the Original Agreement.

     G.   Although the Original Agreement provides for payment of a royalty to
BAXTER if FLAVIN manufactures or sells products that use the TECHNOLOGY, it does
not expressly address the situation where FLAVIN has licensed the TECHNOLOGY to
a third party.

     NOW THEREFORE, the parties wish to amend the Original Agreement, as
follows:

     I.   Paragraphs 2.2, 2.2.1, 2.3 and 2.4 of the Original Agreement are
deleted.

     II.  Section 3, Consideration is changed to read:

<Page>

Baxter/Flavin
Amended Patent Assignment
  and License Agreement
Page -2-

          3.1     Royalty Payment. In consideration for the assignments granted
by BAXTER to FLAVIN, FLAVIN shall pay BAXTER three percent (3%) of NET SALES of
any PRODUCT thereof sold or otherwise transferred by FLAVIN, or by a licensee of
FLAVIN'S in which FLAVIN has an ownership interest, to third parties, including
PRODUCT sold to BAXTER.

          3.2.    FLAVIN shall pay to BAXTER 50% of any consideration paid to
FLAVIN or to a licensee in which FLAVIN has an ownership interest by a third
party for the conveyance of any right or license to manufacture, use or sell
PRODUCT.

          3.3     If a payment made to FLAVIN or to a licensee in which FLAVIN
has an ownership interest, is for sale of the ongoing business of making, using
or selling PRODUCT, then the payment to BAXTER shall be 50% of the fair market
value of the right or license to manufacture, use or sell PRODUCT that is
conveyed as part of the sale. In the event that BAXTER and FLAVIN are unable to
agree to the fair market value of the right or license, it shall be determined
by binding arbitration by a single arbitrator appointed in accordance with the
rules of the American Arbitration Association.

     III  Section 4, Reports, Records, Payments is changed to read:

          4.1     Records. FLAVIN shall keep full, true and accurate books of
account containing all particulars which may be necessary for the purposes of
showing the amount payable to BAXTER. Such books of account shall be kept at
FLAVIN'S address as listed on the first page of this Agreement or at such other
location as is later designated by FLAVIN in the manner designated in paragraph
10. Such books and the supporting data shall be open at all reasonable times,
for three (3) years following the end of the calendar year to which they
pertain, to the inspection of a public accountant retained by BAXTER at BAXTER'S
expense for the purpose of verifying the statements or compliance in other
respects with the Agreement.

          4.2     Payment. Within sixty (60) days after June 30 and December 31
of each year, FLAVIN shall deliver to BAXTER a true and accurate report, giving
such particulars of the business conducted by FLAVIN during the preceding six
months under this Agreement as are pertinent to a royalty accounting. The first
such accounting period may be

<Page>

Baxter/Flavin
Amended Patent Assignment
  and License Agreement
Page -3-

somewhat shorter depending on the date of execution by the parties. The report
shall include at least the following:

          the total number of royalty bearing PRODUCTS sold or otherwise
          disposed of; the average NET SALES PRICE for the period; total
          royalties due; and any other payments that may be due for the
          conveyance of any right or license to manufacture, use or sell
          PRODUCT.

                  4.2.1   FLAVIN shall pay to BAXTER the royalties and other
payments due and payable under this Agreement at the times of submission of the
reports required by the preceding paragraphs. If no royalties or other payments
are due at the times required, it shall be so reported.

                  4.2.2   BAXTER shall designate from time to time the place and
entity to which payments are to be made as required herein. Unless otherwise
notified, payments to BAXTER shall be directed to:

          Attention:     IV Therapy Division Counsel
                         Baxter Healthcare Corporation
                         One Baxter Parkway
                         Deerfield, Il 60015

          4.3     Taxes. All taxes imposed as a result of the existence of this
Agreement or the performance of the parties hereunder shall be borne and paid by
the party required to do so by applicable law.

          4.4     Late Payments. In the event that FLAVIN fails to make any
payment to the other party under this Agreement when due, interest shall accrue
on the overdue amount for the period from the due date of such payment until the
date that such payment is made at an annual rate of three percent (3%) above the
prime rate listed in the "Money Rates" column of the WALL STREET JOURNAL as in
effect during such period; and such interest shall be payable simultaneously
with the overdue amount, or, at BAXTER'S option, upon earlier demand by it. The
accrual of such interest shall not be deemed to be in lieu of other remedies for
breach of contract available to the party to whom royalties are owed.

     IV.  Section 6. Product Purchase is deleted.

<Page>

Baxter/Flavin
Amended Patent Assignment
   and License Agreement
Page -4-

     V.   Unless expressly changed by this Amendment, all other provisions of
the Original Agreement shall remain in effect.

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

BAXTER INTERNATIONAL INC.

By:    /s/ [ILLEGIBLE]
    ---------------------------

                                                    Date:  January 27, 1994
                                                          --------------------
Title: Sr. Vice President
       ------------------------

Michael T. FLAVIN

     /s/ Michael T. Flavin
-------------------------------

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