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                                                                   EXHIBIT 10.12

        SAIC/ NANOSYS MASTER MARKETING AND BUSINESS DEVELOPMENT AGREEMENT

This Master Marketing Agreement ("Agreement"), is entered into as of the later
of the dates set forth at the end of this Agreement (the "Effective Date"), by
and between Nanosys, Incorporated, a corporation duly organized under the laws
of the State of Delaware and having its principal place of business at 2625
Hanover Street, Palo Alto, California ("Nanosys"), and Science Applications
International Corporation, a corporation duly organized under the laws of the
State of Delaware and having its principal place of business at 10260 Campus
Point Drive, San Diego, California 92121, through its Advanced Systems Group
("SAIC"). Nanosys and SAIC may hereinafter be referred to individually as a
"Party" or collectively as the "Parties".

WHEREAS, SAIC is recognized as a leader in the information technology and
systems integration field with technologies and expertise that includes, but is
not limited to, systems design and engineering, database architecture, software
development, and large project management;

WHEREAS, Nanosys is recognized as a leader in the development of nanotechnology
materials and nanotechnology enabled modules, systems and processes;

WHEREAS, the Parties, from time to time, have collaborated in order to bid for
and to perform under contracts and grants awarded by various agencies of the
United States government; and

WHEREAS, Nanosys and SAIC mutually desire to establish a preferred marketing
relationship with each other in order to identify and pursue additional
contracts and awards with the United States government ("Opportunities")
relating to nanoscience and nanotechnology as a team, to further both their
businesses;

NOW THEREFORE, in consideration of the mutual terms and conditions set forth
herein, the Parties hereby agree as follows:

1.       Scope of the Agreement. This Agreement is a master agreement that
         commits the Parties to work together for their mutual benefit to
         identify and advise each other as to specific Opportunities to market
         and advertise their respective services and products in accordance with
         the following terms, and as provided by Attachment A. SAIC will perform
         activities in the following areas: systems integration; joint prototype
         development; and marketing. Nanosys will perform activities in the
         following areas: nanotechnology materials and nanotechnology-enabled
         module development; joint prototype development; and marketing support.
         Each Opportunity that is to be jointly pursued by the Parties shall be
         defined and described in written, mutually agreed-upon exhibits
         attached hereto (each a "Marketing Exhibit"). Each Marketing Exhibit
         shall specify the particular Opportunity, the complementary products
         and/or services to be marketed, the prospective customer base, and the
         scope of effort required of each Party. Each Marketing Exhibit shall,
         when executed, become an addendum to this Agreement. The first
         Marketing Exhibit shall be titled "Marketing Exhibit No. 1," and
         additional Marketing Exhibits shall be numbered sequentially.

         (a)      The obligations of the Parties under this Agreement are
                  non-exclusive. `Either Party may, at any time and for any
                  reason, enter into similar arrangements with any other entity
                  with respect to the same or similar areas or Opportunities set
                  forth in the Marketing Exhibits or for any other business
                  purposes. However, notwithstanding the foregoing, for any
                  given Opportunity for which: (1) the Parties have
                  complementary technology and/or intellectual property for
                  addressing such Opportunity; (2) a Party chooses not to pursue
                  such Opportunity on its own, or with a partner entity or
                  organization that is already a Strategic Commercial Partner of
                  such Party at the time the Party chooses to pursue such
                  opportunity; (3) a Party does not already have a proposal
                  submitted for such Opportunity; (4) a Party has not had such
                  Opportunity presented to such Party by a third party; and (5)
                  resources for pursuing such Opportunity are supported
                  Resources pursuant to Section 2 of this Agreement; then each
                  Party agrees to offer to the other Party the first opportunity
                  to enter into a Marketing

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                  Exhibit for such Opportunities contemplated to be pursued by
                  such Party. In the event that a Party desires to pursue an
                  Opportunity on its own, it shall notify the other Party to
                  allow the other Party an opportunity to present information
                  supporting the JOINT pursuit of such Opportunity by the
                  Parties hereto. The Party being offered the first opportunity
                  to enter into a Marketing Exhibit or to present information
                  supporting the joint pursuit of an Opportunity, shall
                  communicate any acceptance of such offer to the other Party
                  within a reasonable time, which time is not to exceed ten(10)
                  business days, unless otherwise agreed to by the Parties in
                  writing. If the offer of first opportunity or to present
                  information for joint pursuit is rejected, or not accepted
                  within such reasonable time, either Party is then free to
                  pursue the Opportunity on its own or with any other person or
                  entity. Further, commencing upon the execution of a Marketing
                  Exhibit and continuing during the effectiveness of any
                  definitive agreement relating thereto, the Parties agree that
                  they shall not participate in any effort to prepare or submit
                  a separate proposal relating to the specific technology,
                  application and customer of the Opportunity identified in the
                  Marketing Exhibit. Strategic Commercial Partner shall mean a
                  partner entity or organization with which the Party has a
                  fully executed commercial development agreement.

         (b)      Except as set forth in this Agreement or a Marketing Exhibit
                  executed hereunder, each Party will bear all costs, risks and
                  liabilities incurred by it arising out of its obligations and
                  efforts under this Agreement and any such Marketing Exhibit.
                  Unless otherwise specified in this Agreement or a Marketing
                  Exhibit, neither Party shall have any right to any
                  reimbursement, payment or compensation of any kind from the
                  other Party for activities pursuant to this Agreement or a
                  Marketing Exhibit.

         (c)      This Agreement, including all Marketing Exhibits, sets forth
                  the provisions and conditions pursuant to which the Parties
                  may identify and advise each other of a mutually beneficial
                  Opportunity.

         (d)      Each Party shall designate one or more duly authorized
                  representatives to interact with the other for purposes of
                  this Agreement. Initially, [*** Redacted] and [*** Redacted]
                  shall be the representatives of Nanosys and [*** Redacted] and
                  [*** Redacted] shall be the representatives of SAIC. Each
                  Party's representative(s) may select and submit to the other
                  for its consideration such Opportunities that the Party
                  believes may be of mutual interest and the representatives
                  shall jointly determine whether to pursue such Opportunity
                  together. If the Parties determine to pursue an Opportunity
                  jointly, the representatives shall determine jointly the
                  appropriate marketing strategy; including planning for
                  directing the timing and use of the Resources described in
                  Section 2 which efforts shall be reflected in a Marketing
                  Exhibit hereto. At least one representative of each Party
                  shall meet and confer periodically with at least one
                  representative of the other as necessary, either in person or
                  by telephone, to discuss prospective Opportunities and
                  performance with respect to existing Marketing Exhibits
                  (including, but not limited to the Parties obligations under
                  Section 2 below). The Parties agree that the representatives
                  shall meet at agreed-upon intervals but not less than once in
                  any calendar quarter. Subject to the provisions of section
                  1(a) above relating to the Parties' actions commencing upon
                  execution of a Marketing Exhibit and continuing during the
                  effectiveness of any definitive agreement relating thereto, if
                  either Party's representative determines that it is not in
                  that Party's best interest to initiate or continue an
                  Opportunity jointly, either Party is free to pursue such
                  Opportunity, using its sole efforts or in conjunction with any
                  other person or entity.

         (e)      In those circumstances where the Parties' marketing efforts
                  identify a specific Opportunity, and the Parties decide to
                  pursue the Opportunity jointly as set forth in a Marketing
                  Exhibit, then the Parties agree to enter into good faith
                  negotiations to execute an appropriate definitive agreement
                  for the particular Opportunity. Generally, it is anticipated
                  that Nanosys would primarily apply its nanoscience and
                  nanotechnology development expertise and be the

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

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                  preferred provider of any nanotechnology-based modules to the
                  Opportunity, and SAIC would primarily apply its system
                  integration expertise to the Opportunity. Each such definitive
                  agreement shall contain terms and conditions that are
                  customary for a teaming agreement, including, but not limited
                  to, allocating responsibility for preparation of proposals and
                  determining the structure of the proposal effort. Each such
                  definitive agreement shall set forth additional mutually
                  agreed-upon terms and conditions with respect to the rights
                  and obligations of the Parties with regard to that specific
                  Opportunity.

2.       Mutual Commitment to Fund the Initiative.

         (a)      The Parties agree that, in order to initially support the
                  marketing activities associated with the Opportunities
                  anticipated to be identified in Marketing Exhibits, the work
                  of approximately [*** Redacted] full time employee equivalents
                  ("FTEs", the FTEs and associated costs are collectively
                  referred to as the "Resources") will be necessary to
                  specifically support the marketing activities associated with
                  the Opportunities. The effort of each individual supporting an
                  Opportunity will be dedicated at a percentage agreed upon by
                  the representatives of each party authorized by this
                  Agreement. The Resources needed will include technical and
                  marketing resources. The Parties agree that Nanosys shall be
                  responsible for providing Resources equivalent to [***
                  Redacted] FTEs and SAIC shall be responsible for providing
                  Resources equivalent to [*** Redacted] FTEs.

         (b)      SAIC agrees, during the Initial Term, as defined in Section
                  3(a), to fund the cost of the Resources of both Parties set
                  forth in Section 2(a). Such costs are expected to be burdened
                  actual expenses, not including any fees or profit, and are
                  invoiced monthly in accordance with 2f, below. The funding
                  support will be subject to quarterly reviews, as stated in
                  1(d) above. The maximum Resources funded by SAIC under this
                  section during the Initial Term of this Agreement, and that
                  have not been reimbursed under section 2(c)(iii), are not to
                  exceed $2.2 M, (It is currently estimated that $1.6 M will be
                  allocated to Nanosys and $0.6 M to SAIC), unless otherwise
                  agreed to by the Parties. Resources reimbursed under section
                  2(c)(iii) may, during the Initial Term, be reused to fund
                  additional Resources if mutually agreed by the Parties. Unless
                  specifically agreed upon by the Parties in writing, the work
                  performed by the representatives of the Parties in carrying
                  out their periodic review responsibilities under Section 1(d),
                  shall not be included in the amounts funded by SAIC. Among the
                  tasks to be performed by the Parties' FTEs are support for
                  preparation of proposals for contracts and awards,
                  demonstrations, and marketing presentations.

         (c)      In consideration of SAIC's agreement to fund the Resources
                  (including SAIC Resources) described in paragraph (b) above,
                  the Parties agree that all United States government contract
                  revenue, including the subcontract(s) from one Party to the
                  other Party, ("Contracts") arising out of or resulting from
                  work performed under this Agreement shall be allocated in
                  accordance with the following priority schedule, with funds
                  received under any Contract first being applied to the highest
                  priority category until all costs thereunder are reimbursed,
                  before applying any remaining funds to the next level of
                  priority, etc.:

                           i.       First priority: Reimbursement of reasonable
                                    costs, not including any fee or profit,
                                    incurred in performance of the Contract.

                           ii.      Second priority: Reimbursement of costs, on
                                    a pro-rata basis between Nanosys and SAIC,
                                    not including any fee or profit, incurred
                                    under this Agreement that are incurred in
                                    the performance of the Contract but not
                                    billable to the Contract, and

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

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                           iii.     Third priority: Reimbursement of costs
                                    incurred by SAIC in funding the initial Term
                                    of the Agreement under Section 2(b) above.
                                    Such reimbursement will be accomplished
                                    through allocation of fees earned from such
                                    Contracts not allocated under either of the
                                    first or second priorities, above, where
                                    100% of such funds will be applied to the
                                    reimbursement until satisfied and the
                                    balance will be allocated between the
                                    parties at a to-be negotiated rate dependent
                                    upon the relative contributions and
                                    responsibilities of the parties for a given
                                    Contract.

                  Unless otherwise agreed by the Parties in writing, Nanosys
                  shall reimburse SAIC net 30 days after receipt of payment
                  from its prime customer under the applicable Contract.

         (d)      With the exception of income taxes imposed on the Parties,
                  each Party agrees to pay all sales, use, value added, personal
                  property or other taxes of any type that are imposed by any
                  governmental authority on the payments due by such Party to
                  the other Party under this Section 2. Any payment or part of a
                  payment due under this Agreement that is not paid when due
                  shall bear interest at the rate of 1.5% per month, or at the
                  highest rate allowed by law, whichever is less, from its due
                  date until paid.

         (e)      Each Party shall have the right, at its sole expense, to
                  inspect the books and records of the other Party for the
                  purpose of verifying the amounts funded by SAIC and that
                  Nanosys has complied with the payment obligations of this
                  Section 2. Such inspections may be made not more than
                  semi-annually, on not less than fifteen (15) days prior
                  written notice to the other Party, during regular business
                  hours.

         (f)      To fund the Nanosys Resources, SAIC ASG will implement a
                  purchase order with Nanosys which will be incrementally
                  funded, against which Nanosys will submit monthly
                  invoices in accordance with the terms of the purchase order.
                  Invoices will be paid net 30 days. A proper invoice may be
                  in Nanosys standard commercial format but must include, at a
                  minimum, detailed costs for the period covered by the invoice
                  and accumulated costs. Detailed costs are defined as hours by
                  individual labor categories, fully burdened labor and other
                  fully burdened expenses such as are described in general in 2a
                  above and not including any fee or profit.

         To provide participation insight to Nanosys, SAIC ASG will prepare
         financial statements on an SAIC "financial-period" basis , to be made
         available to Nanosys, by the 5th working day after the close of the
         four-week accounting period for which the financial statement is
         prepared.. Financial statements will identify current and cumulative
         total costs for Labor and ODC's as defined in paragraphs 2(a) and 2(b)
         above.

3.       Term and Termination.

         (a)      This Agreement shall have an initial term of twenty-four (24)
                  months commencing on the Effective Date (the "Initial Term").
                  Following the Initial Term, this Agreement may be extended
                  only by the written, signed, mutual agreement of both Parties
                  for an additional period of twelve (12) months (each, a
                  "Renewal Term"), which such written mutual commitment shall be
                  executed at least ninety (90) days prior to the end of the
                  Term immediately preceding such Renewal Term. For purposes of
                  this Agreement, the Initial Term and any Renewal Terms shall
                  be known as the Term.

         (b)      Either Party may terminate this Agreement as of the last day
                  of each calender quarter including and after the first
                  anniversary of the Effective Date, provided that such
                  termination must be communicated to the other party in writing
                  at least ninety (90) days prior to such termination date.

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         (c)      Upon the termination or expiration of this Agreement, each
                  Party will destroy or return to the other Party all drawings,
                  specifications, manuals and other printed or reproduced
                  material (including information stored on machine readable
                  media) provided by the disclosing Party to the receiving Party
                  and shall use commercially reasonable efforts to destroy all
                  backup copies of such information made by the receiving Party
                  or its employees, wherever located. The obligations of this
                  section do not apply to any materials and/or information of
                  the disclosing Party that is necessary for the perfection
                  and/or enforcement of any rights to Intellectual Property
                  developed under this Agreement that is owned in whole or in
                  part by the receiving Party. Any Confidential Information
                  retained by the receiving Party hereunder shall remain subject
                  to the provisions of the Non-Disclosure Agreement attached a
                  Exhibit A.

         (d)      The Parties acknowledge that termination or expiration of this
                  Agreement shall terminate each Marketing Exhibit executed
                  hereunder, unless the Parties expressly agree to the contrary
                  in writing. However, any definitive agreements entered into
                  between the Parties as a result of their efforts hereunder
                  shall not be terminated upon the termination or expiration of
                  this Agreement and shall survive according to their terms.
                  Additionally, the obligations of paragraph 2(c) shall survive
                  any termination.

4.       Intellectual Property.

         (a)      The Parties shall each retain ownership of and all right,
                  title and interest in and to their respective pre-existing
                  Intellectual Property (as that term is defined in Article 4(c)
                  below), and no license or right to use therein, whether
                  express or implied, is granted by this Agreement or as a
                  result of the work performed by either Party hereunder or in
                  pursuit hereof. To the extent the Parties wish to grant to the
                  other rights or interests in pre-existing Intellectual
                  Property, separate license agreements on mutually acceptable
                  terms will be executed.

         (b)      For all Intellectual Property developed under this Agreement
                  by the Parties (hereinafter referred to as "Collaboration
                  Intellectual Property"), all Nanotechnology Related
                  Collaboration Intellectual Property shall be solely owned by
                  Nanosys, regardless of inventorship. For purposes of this
                  Agreement, "Nanotechnology Related Collaboration Intellectual
                  Property" is Intellectual Property in [*** Redacted]
                  nanomaterials having at least [*** Redacted] of
                  [*** Redacted], including [*** Redacted] of such materials,
                  composites including such materials, nano to macro world
                  interface technology for such materials, and the fabrication
                  and processing of such materials. All non-Nanotechnology
                  Related Collaboration Intellectual Property such as systems,
                  use, and applications shall be owned according to U.S. laws of
                  intellectual property inventorship and ownership with
                  Collaboration Intellectual Property that is solely conceived
                  by the employees, agents or contractors of one Party being
                  solely owned by that Party with all rights appurtenant
                  thereto, and with non-Nanotechnology related Collaboration
                  Intellectual Property that is jointly conceived by the
                  employees, agents or contractors of both Parties being jointly
                  owned, with all joint rights appurtenant thereto and without
                  obligation to obtain consent or account to the other Party to
                  exploit, license or transfer jointly owned Intellectual
                  Property.

         (c)      As used herein the term "Intellectual Property" shall mean
                  patents, copyrights, trade marks, trade names, inventions
                  (whether or not patentable), works of authorship, trade
                  secrets, techniques, know-how, ideas, concepts, algorithms and
                  all other forms of intellectual property rights. As used
                  herein the term "pre-existing Intellectual Property" means any
                  Intellectual Property previously conceived, developed or
                  reduced to tangible medium as demonstrated by written
                  documentation.

5.       Warranty Disclaimer and Limitation of Liability. Neither Party makes
         any warranties whatsoever to the other Party, express or implied, with
         regard to the products or services of that Party or any matter relating
         to this Agreement and any Marketing Exhibits, and each Party
         specifically disclaims all such

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

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         warranties and conditions, including any warranty of title,
         merchantability, and fitness for a particular purpose. In no event
         shall either Party be liable to the other for any punitive, exemplary,
         special, indirect, incidental or consequential damages (including, but
         not limited to, lost profits, lost revenues, lost business
         opportunities, loss of use or equipment down time, and loss of or
         corruption to data) arising out of or relating to this Agreement or any
         Marketing Exhibit, regardless of the legal theory under which such
         damages are sought, and even if the Parties have been advised of the
         possibility of such damages or loss. The liability of either Party to
         the other for any claims, liabilities, actions or damages arising out
         of or relating to this Agreement or any Marketing Exhibit, howsoever
         caused and regardless of the legal theory asserted, including breach of
         contract or warranty, tort, strict liability, statutory liability or
         otherwise, shall not, in the aggregate, exceed the amount of
         out-of-pocket costs incurred by the other Party in connection with the
         specific Marketing Exhibit or opportunity under which such claim arose.

6.       Confidentiality. In the performance of this Agreement and any Marketing
         Exhibits executed hereunder, certain information may be exchanged
         between the Parties that is proprietary and confidential in nature.
         This proprietary and confidential information is exchanged solely for
         the purposes set forth in this Agreement and any such Marketing
         Agreement. This proprietary and confidential information shall remain
         the property of the disclosing Party and shall be subject to the terms
         and conditions of the Non-Disclosure Agreement attached hereto as
         Exhibit A. Prior to any transfer of materials under this Agreement, the
         Parties agree that they will execute a Materials Transfer Agreement
         that will be separately agreed to by the Parties.

7.       Export Control. The Parties to this Agreement shall comply with all
         applicable United States export and foreign import laws, rules, and
         regulations in the performance of the Parties' responsibilities and
         obligations under this Agreement. Without limiting the generality of
         the foregoing, the Parties shall not disclose any U.S.-origin products,
         know-how, technical data, documentation, or other products or materials
         furnished to it pursuant to this Agreement, to any person or in any
         manner which would constitute a violation of the export control
         regulations of the United States then in effect.

8.       Disputes. Any controversy, claim or dispute ("Dispute") arising out of
         or relating to this Agreement shall be resolved by binding arbitration
         in accordance with the Commercial Arbitration Rules of the American
         Arbitration Association then in effect. Before commencing any such
         arbitration, the Parties agree to enter into negotiations to resolve
         the Dispute. If the Parties are unable to resolve the Dispute by good
         faith negotiation within Sixty (60) days of entering into such
         negotiations, then either Party may refer the matter to arbitration.
         The arbitration shall take place in the County of San Diego, State of
         California. The arbitrator(s) shall be bound to follow the provisions
         of this Agreement in resolving the dispute, and may not award any
         damages which are excluded by this Agreement. The decision of the
         arbitrator(s) shall be final and binding on the Parties, and any award
         of the arbitrator(s) may be entered or enforced in any court of
         competent jurisdiction. Any request for arbitration of a claim by
         either Party against the other relating to this Agreement must be filed
         no later than one (1) year after the date on which this Agreement
         expires or terminates, or such claim shall be time barred.

9.       Notices. All notices, certificates, acknowledgments or other written
         communications (hereinafter referred to as "Notices") required to be
         given under this Agreement shall be in writing and shall be deemed to
         have been given and properly delivered if duly mailed by certified or
         registered mail to the other Party at its address as follows, or to
         such other address as either Party may, by written notice, designate to
         the other. Additionally, Notices sent by any other means (i.e.,
         facsimile, overnight delivery, courier, and the like) are acceptable
         subject to written confirmation of both the transmission and receipt of
         the Notice.

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Larry Bock                                    Janet V. LaFever
President and CEO                             Vice President for Administration
Nanosys, Incorporated                         Science Applications
2625 Hanover Street                           International Corporation
Palo Alto, CA 94304                           1710 SAIC Drive, M/S 2-3-1
Telephone (650) 331-2105                      McLean, VA 22102
Fax       (650) 331-2101                      Telephone 703-676-4031
e-mail    lbock@nanosysinc.com                Fax       (703)-676-2298
                                              e-mail    Janet.v.lafever@saic.com

10.      Assignment. This Agreement may not be assigned, novated or otherwise
         transferred by operation of law or otherwise by either Party without
         the prior written consent of the other Party, which consent shall not
         be unreasonably withheld. Any change of control of a Party shall be
         deemed an assignment of this Agreement that does not require the prior
         written consent of the other Party. For purposes of this Agreement,
         "change of control" means any merger, consolidation, sale of all or
         substantially all of the assets or sale of a substantial block of
         stock, of a Party. Any such assignment, novation or transfer by one
         Party not in accordance with this provision shall be a material breach
         of this Agreement and shall be grounds for immediate termination
         thereof by the non-breaching Party, in addition to any other remedies
         that may be available at law or in equity to the non-breaching Party.

11.      Waiver or Modification. This Agreement may be modified, or part(s)
         hereof waived, only by an instrument in writing specifically
         referencing this Agreement and signed by an authorized representative
         of the Party against whom enforcement of the purported modification or
         waiver is sought.

12.      Relationship of Parties. The Parties are acting as independent
         contractors in all respects with regard to this Agreement. Nothing
         contained in this Agreement shall be deemed or construed to create a
         partnership, joint venture, agency, or otherwise as participants in a
         joint or common undertaking. Nothing in this Agreement shall be deemed
         to give either Party any power to direct or control any activities of
         the other, including marketing activities, or any power to bind or
         obligate the other. No employee of one Party shall be deemed an
         employee of the other.

13.      Publicity. Neither Party may issue a press release or make any
         disclosure to any other person or entity regarding the existence of or
         the subject matter of this Agreement without the prior written consent
         of the other Party, which consent shall not be unreasonably withheld.
         Notwithstanding the foregoing, either Party may reasonably disclose the
         terms of this Agreement to the extent necessary to comply with any laws
         or government regulations, provided that the Party that is required to
         disclose the Agreement gives the other Party notice of such required
         disclosure and takes reasonable steps to minimize the extent of such
         disclosure.

14.      Applicable Law. This Agreement shall be governed by and construed under
         the laws of the State of California, without regard to its laws
         relating to conflict or choice of laws.

15.      Entire Agreement. This Agreement, including any and all Exhibits
         attached hereto, which are hereby incorporated by reference,
         constitutes the entire agreement and understanding between the Parties
         and supersedes and replaces any and all prior or contemporaneous
         proposals, agreements, understandings, commitments or representations
         of any kind, whether written or oral, relating to the subject matter
         hereof.

16.      Multiple Copies or Counterparts. This Agreement may be executed in one
         or more counterparts, each of which shall be deemed an original, but
         all of which together shall constitute one and the

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<PAGE>

         same instrument. This Agreement shall not be effective until the
         execution and delivery between each of the parties of at least one (1)
         set of the counterparts.

17.      Headings. The headings and titles of the various sections of this
         Agreement are intended solely for convenience of reference and are not
         intended to define, limit, explain, expand, modify or place any
         construction on any of the provisions of this Agreement.

IN WITNESS WHEREOF, the Parties represent and warrant that this Agreement is
executed by duly authorized representatives of each Party as set forth on the
date indicated below.

                                        SCIENCE APPLICATIONS
NANOSYS, INCORPORATED                   INTERNATIONAL CORPORATION

/s/     Larry Bock                      /s/   Janet V. LaFever
________________________________        ________________________________________

        Larry Bock                            Janet V. LaFever
________________________________        ________________________________________
Name                                    Name
        President and CEO                     Vice President for Administration
________________________________        ________________________________________
Title                                   Title

                                              9 July 03
________________________________        ________________________________________
Date                                    Date

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<PAGE>

                                  ATTACHMENT A

                             AREAS OF RESPONSIBILITY

1.       SAIC is anticipated to perform activities in the area of systems
         integration.

2.       Nanosys is anticipated to perform activities in the areas of
         nanotechnology and module development.

3.       SAIC and Nanosys are anticipated to jointly perform activities in the
         areas of prototype development and marketing support.

4.       Nanosys agrees to make its facilities, equipment, materials, etc.,
         available at no additional cost above Nanosys' fully burdened FTE rate,
         as reasonably needed to support the joint prototype development and
         marketing support activities.

5.       SAIC agrees to make its procurement and contract preparation and
         administration infrastructure, and its facilities, equipment materials,
         etc., available at no additional cost above SAIC's fully burdened FTE
         rate, as reasonably needed to support the joint prototype development
         and marketing support activities.

6.       The Advanced Systems Group will promote its relationship with Nanosys
         within SAIC and act as a liaison to encourage and facilitate the
         development of additional Marketing Exhibits among Nanosys and other
         organizations within SAIC. Nanosys will reasonably support such
         additional efforts.

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                             MARKETING EXHIBIT NO. 1

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                                    EXHIBIT A

                            NON-DISCLOSURE AGREEMENT

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NOTE: Each Party has a hardcopy of the signed NDA.

     SAIC STANDARD NON-DISCLOSURE (CONFIDENTIALITY) AGREEMENT (PAGE 1 OF 3)

                            NON-DISCLOSURE AGREEMENT
                             PROPRIETARY INFORMATION

This is an Agreement, effective 4 June 2003 between Science Applications
International Corporation, a Delaware Corporation (hereinafter referred to as
"SAIC") and Nanosys Inc., a Delaware Corporation (hereinafter referred to as
"Nanosys"). It is recognized that it may be necessary or desirable to exchange
information between SAIC and Nanosys regarding inorganic semiconductor
nanomaterials and their applications for the purpose of using the information to
discuss potential marketing areas and for marketing the opportunities identified
under the SAIC/Nanosys Master Marketing Agreement. With respect to the
information exchanged between the parties subsequent to this date, the parties
agree as follows:

(1) "Proprietary Information" shall include, but not be limited to, performance,
sales, financial, contractual and special marketing information, ideas,
technical data and concepts originated by the disclosing party, not previously
published or otherwise disclosed to the general public, not previously available
without restriction to the receiving party or others, nor normally furnished to
others without compensation, and which the disclosing party desires to protect
against unrestricted disclosure or competitive use, and which is furnished
pursuant to this Non-Disclosure Agreement and appropriately identified as being
proprietary when furnished.

(2) In order for proprietary information disclosed by one party to the other to
be protected in accordance with this Non-Disclosure Agreement, it must be: (a)
in writing; (b) clearly identified as proprietary information at the time of its
disclosure by each page thereof being marked with an appropriate legend
indicating that the information is deemed proprietary by the disclosing party;
and (c) delivered by letter of transmittal to the individual designated in
Paragraph 3 below, or his designee. Where the proprietary information has not
been or cannot be reduced to written form at the time of disclosure and such
disclosure is made orally and with prior assertion of proprietary rights
therein, such orally disclosed proprietary information shall only be protected
in accordance with this Non-Disclosure Agreement provided that complete written
summaries of all proprietary aspects of any such oral disclosures shall have
been delivered to the individual identified in Paragraph 3 below, within 20
calendar days of said oral disclosures. Neither party shall identify information
as proprietary which is not in good faith believed to be confidential,
privileged, a trade secret, or otherwise entitled to such markings or
proprietary claims.

(3) In order for either party's proprietary information to be protected as
described herein, it must be submitted in written form as set forth in Paragraph
2 above to the individuals identified below:

SCIENCE APPLICATIONS                           NANOSYS INC.
INTERNATIONAL CORPORATION

<TABLE>
<S>              <C>                           <C>             <C>
Name:            Martin Fritts, Ph.D.           Name:           Stephen Empedocles, Ph.D.
Title:           Senior Scientist               Title:          Director of Business Development
Address          2111 Eisenhower Avenue         Address:        Corporate Headquarters
                 Suite 303                                      2625 Hanover Street
                 Alexandria, VA 22314                           Palo Alto, CA 94304
Telephone No:    703-842-2606                   Telephone No:   650-776-8530
FAX No:          703-842-2618                   FAX No:         650-745-1273
</TABLE>

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                 Page 12 of 14
                                    7/7/2003
<PAGE>

     SAIC STANDARD NON-DISCLOSURE (CONFIDENTIALITY) AGREEMENT (PAGE 2 OF 3)

(4) Each party covenants and agrees that it will, notwithstanding that this
Non-Disclosure Agreement may have terminated or expired, keep in confidence, and
prevent the disclosure to any person or persons outside its organization or to
any unauthorized person or persons, any and all information which is received
from the other under this Non-Disclosure Agreement and has been protected in
accordance with paragraphs 2 and 3 hereof; provided however, that a receiving
party shall not be liable for disclosure of any such information if the same:

         A.       Was in the public domain at the time it was disclosed, or
                  ____________

         B.       Becomes part of the public domain without breach of this
                  Agreement, or

         C.       Is disclosed with the written approval of the other party, or

         D.       Is disclosed after three years from receipt of the
                  information, or

         E.       Was independently developed by the receiving party, or

         F.       Is or was disclosed by the disclosing party to a third party
                  without restriction, or

         G.       Is disclosed pursuant to the provisions of a court order.

         As between the parties hereto, the provisions of this Paragraph 4 shall
supersede the provisions of any inconsistent legend that may be affixed to said
data by the disclosing party, and the inconsistent provisions of any such legend
shall be without any force or effect.

         Any protected information provided by one party to the other shall be
used only in furtherance of the purposes described in this Agreement, and shall
be, upon request at any time, returned to the disclosing party. If either party
loses or makes unauthorized disclosure of the other party's protected
information, it shall notify such other party immediately and take all steps
reasonable and necessary to retrieve the lost or improperly disclosed
information.

(5) The standard of care for protecting Proprietary Information imposed on the
party receiving such information, will be that degree of care the receiving
party uses to prevent disclosure, publication or dissemination of its own
proprietary information.

(6) Neither party shall be liable for the inadvertent or accidental disclosure
of Proprietary Information if such disclosure occurs despite the exercise of the
same degree of care as such party normally takes to preserve its own such data
or information.

(7) In providing any information hereunder, each disclosing party makes no
representations, either express or implied, as to the information's adequacy,
sufficiency, or freedom from defect of any kind, including freedom from any
patent infringement that may result from the use of such information, nor shall
either party incur any liability or obligation whatsoever by reason of such
information, except as provided under Paragraph 4, hereof.

(8) Notwithstanding the termination or expiration of any Teaming Agreement
executed in conjunction with this Agreement, the obligations of the parties with
respect to proprietary information shall continue to be governed by this
Non-Disclosure Agreement.

                                 Page 13 of 14
                                    7/7/2003
<PAGE>

     SAIC STANDARD NON-DISCLOSURE (CONFIDENTIALITY) AGREEMENT (PAGE 3 OF 3)

(9) This Non-Disclosure Agreement contains the entire agreement relative to the
protection of information to be exchanged hereunder, and supersedes all prior or
contemporaneous oral or written understandings or agreements regarding this
issue. This Non-Disclosure Agreement shall not be modified or amended, except in
a written instrument executed by the parties.

(10) Nothing contained in this Non-Disclosure Agreement shall, by express grant,
implication, estoppel or otherwise, create in either party any right, title,
interest, or license in or to the inventions, patents, technical data, computer
software, or software documentation of the other party.

(11) Nothing contained in this Non-Disclosure Agreement shall grant to either
party the right to make commitments of any kind for or on behalf of any other
party without the prior written consent of that other party.

(12) The effective date of this Non-Disclosure Agreement shall be the date
stipulated at the beginning of this Agreement.

(13) This Non-Disclosure Agreement shall be governed and construed in accordance
with the laws of the State of California.

SCIENCE APPLICATIONS                                               NANOSYS INC.
INTERNATIONAL CORPORATION

<TABLE>
<S>                     <C>                                        <C>                     <C>
Signature: _____________________________

Name:                                                              Name:
                        Janet V. LaFever

Title:                  Deputy Group Director of Contracts         Title:

Address:                1710 SAIC Drive, M/S 2-3-1                 Address:                2625 Hanover Street
                        McLean, VA 22102                                                   Palo Alto, CA 94304

Telephone No:           (703) 676-4031                             Telephone No:

FAX No:                 (703) 676-2298                             FAX No.
</TABLE>

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                  Page 14 of 14
                                    7/7/2003<PAGE>
                                                                   EXHIBIT 10.14

                        COOPERATIVE DEVELOPMENT AGREEMENT

         This Cooperative Development Agreement (the "Agreement") is entered
into as of December 15, 2003 (the "Effective Date") by and between Nanosys Inc.
("Nanosys"), a Delaware corporation with a place of business at 2625 Hanover
Street, Palo Alto, California 94304 and Intel Corporation ("Intel"), a Delaware
corporation with a place of business at 2200 Mission College Boulevard, Santa
Clara, California 95052.

                                    RECITALS

Whereas:

         A.       Intel has expertise with respect to memory devices and the
development, design, and manufacture thereof, and Nanosys has expertise with
respect to the design and synthesis of nanomaterials and the development of
nanotechnology-enabled systems.

         B.       Intel and Nanosys desire to enter into an agreement to
cooperate to investigate the feasibility of using [*** Redacted] in memory
devices.

                                    AGREEMENT

NOW, THEREFORE, the parties agree as follows:

         1.       DEFINITIONS. In this Agreement, the following words and
expressions shall have the following meanings:

                  1.1 "Background IP" of a party means any and all intellectual
property rights that such party either (i) owned, controlled, or had rights with
respect to prior to the Effective Date; or (ii) develops, or acquires ownership,
control, or rights with respect to, during the term of this Agreement but which
is not Collaboration IP.

                  1.2 "CNDA" means the parties' October 11, 2002 Corporate
Non-Disclosure Agreement #5085138.

                  1.3 "Collaboration" means the research and development work
set forth in Exhibit A hereto.

                  1.4 "Collaboration Commencement Date" means the date of
commencement of the Collaboration under Section 2.1 below.

                  1.5 "Collaboration IP" shall mean (i) all Intellectual
Property rights in Collaboration Technology, which Intellectual Property rights
were created by the parties' Listed Representatives (solely or jointly) in the
course of working on the Collaboration and (ii) all Intellectual Property of
either party conceived or created by or for either party ("Party") prior to the
termination or

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.
<PAGE>

expiration of the Collaboration based on the other party's Confidential
Information disclosed to such Party in connection with the Collaboration.

                  1.6 "Collaboration Right" means any patent, patent right (or
similar right under foreign law), utility model, copyright or mask work right
issued or registered as a result of a Filing.

                  1.7 "Collaboration Technology" means (i) any and all
Technology that either party's Listed Representatives conceive (solely or
jointly) in the course of working on the Collaboration, and (ii) any and all
Technology conceived (solely or jointly) prior to the termination or expiration
of the Collaboration by or for either party ("Party") based on Confidential
Information of the other party disclosed to such Party in connection with the
Collaboration, but, in each case, excluding Technology resulting from
University/Government Activities.

                  1.8 "Confidential Information" is defined in the CNDA, as set
forth in Section 6 below.

                  1.9 "Conventional Processes" means standard semiconductor
manufacturing processes (where "standard" semiconductor manufacturing processes
may include Intel proprietary semiconductor manufacturing processes) and
reasonable incremental improvements (e.g. standard  processes)
thereof, including those resulting in one or more features of [*** Redacted] of
[*** Redacted], and the resultant devices fabricated using such standard
semiconductor manufacturing processes (but excluding such resultant devices
incorporating Deposited Nanomaterials).

                  1.10 "Deposited Nanomaterials" means shape or size controlled
[*** Redacted], such as [*** Redacted], and [*** Redacted], having at least one
cross sectional dimension of less than 500 nanometers and such that the size
related properties of the nanomaterials are advantageous to their function, that
are subsequently [*** Redacted] as such nanomaterials [*** Redacted]

                  1.11 "Exclusivity Date" means the earlier of (i) the
Collaboration Commencement Date or (ii)  March 31, 2004.

                  1.12 "Exclusivity Period" means the period from the Effective
Date until the earlier of (i) March 31, 2006, (ii) the Exclusivity Expiration
(as defined in Section 3.3 below), or (iii) any termination of this Agreement.

                  1.13 "Field of Interest" means memory devices based on
[*** Redacted] used primarily as [*** Redacted] (e.g. this would not include
[*** Redacted] devices, [*** Redacted], or [*** Redacted]).

                  1.14 "Filing" means any application for or registration of a
patent, patent right (or similar right under foreign law), utility model,
copyright or mask work right with respect to Collaboration Technology.

                  1.15 "Intel's Exclusive Field" means (i) compositions,
devices, articles and methods involving or involved in memory and logic devices,
but only if such compositions, devices,

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -2-

<PAGE>

articles or methods are outside of Nanosys' Exclusive Field, and in each case
excluding Conventional Processes, and (ii) all Conventional Processes other than
Conventional Processes used in conjunction with Deposited Nanomaterials. For the
avoidance of doubt, (i) Conventional Processes used in conjunction with
Deposited Nanomaterials are not in Intel's Exclusive Field nor in Nanosys'
Exclusive Field and (ii) devices incorporating Deposited Nanomaterials are in
Nanosys' Exclusive Field.

                  1.16 "Intellectual Property" shall mean patents (and similar
rights under foreign law, and applications therefor), trade secrets, copyrights
and mask works.

                  1.17 "Listed Representatives" of a party means, at any time,
that party's employees, agents, and contractors then working on the
Collaboration on behalf of that party, as such individuals are identified by
that party by written notice to the other party. A party's notice of Listed
Representatives shall be in effect until a subsequent such notice by that party
modifying the list. Each party shall at all times in good faith maintain an
accurate list of Listed Representatives. At commencement, Intel's Listed
Representatives shall include [*** Redacted], and Nanosys' Listed
Representatives shall include [*** Redacted].

                  1.18 "Nanosys' Exclusive Field" means compositions, devices,
articles and methods involving or involved in Deposited Nanomaterials, but
excluding Conventional Processes.

                  1.19 "Nanosys Facility" means and includes Nanosys' operations
at 2625 Hanover Street in Palo Alto, CA, any ancillary engineering facilities
owned or controlled by Nanosys, and any successor facilities owned or controlled
by Nanosys during the term of this Agreement..

                  1.20 "Nanosys IP" shall mean Nanosys' Intellectual Property
Rights including Background IP and Collaboration IP.

                  1.21 "Technology" means any and all developments, ideas,
designs, inventions, information, know-how, and technology.

                  1.22 "University/Government Activities" means any and all
research, development, and other activities performed either (i) with any
university (or other educational institution) funding or any government or
government agency (U.S. or otherwise) funding, (ii) in collaboration with any
university (or other educational institution) or with any government or
government agency (U.S. or otherwise), or (iii) with a primary purpose of
obtaining government funding.

         2.       COLLABORATION WORK.

                  2.1 Each party shall use its commercially reasonable efforts
to perform its Collaboration obligations as set forth in Exhibit A. It is
understood and agreed that the Collaboration is in the nature of research, that
successful completion of the research is not assured, and that, so long as a
party uses its commercially reasonable efforts as set forth in the preceding
sentence, that party will not be in default for any failure to achieve any
particular result or to complete any particular deliverable. The parties shall
commence the Collaboration December 15, 2003, provided that on one or more
written notices to Nanosys received by Nanosys at least fifteen

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -3-

<PAGE>
[*** Redacted] prior to the date when the Collaboration is then scheduled to
commence (provided that if this Agreement is signed by Intel after November 30,
2003, Intel shall be entitled to provide the initial such notice on the date of
such signature, but only if such signature date is on or before December 10,
2003), Intel shall be entitled to delay commencement of the Collaboration to any
date on or before March 31, 2004. Delays resulting in commencement of the
Collaboration after December 31, 2003 shall be subject to the payments in
Section 3.2 below. It is understood and agreed that commencement of the
Collaboration may not be delayed past March 31, 2004.

                  2.2 Nanosys agrees to allocate to the Collaboration at least
[*** Redacted] full-time equivalent individuals during the first quarter of the
Collaboration, at least [*** Redacted] full-time equivalent individuals during
the second quarter of the Collaboration, at least [*** Redacted] full-time
equivalent individuals during the third quarter of the Collaboration, and at
least "X" full-time equivalent individuals (FTEs) during the fourth quarter of
the Collaboration, where "X" is a number between [*** Redacted] and
[*** Redacted], inclusive, chosen by Intel by written notice to Nanosys at least
[*** Redacted] days prior to the beginning of such fourth quarter. If Intel
fails to provide such notice, "X" will be deemed to equal [*** Redacted].

                  2.3 It is the parties' mutual intent that most of the work and
deliverable creation under this Agreement to investigate [*** Redacted] memory
feasibility shall occur at the Nanosys Facility. Nanosys shall host Intel's
Listed Representatives on a mutually agreed upon basis, such agreement not to be
unreasonably withheld, on site at the Nanosys Facility to work on this project
and get deeply involved in complementary collaborative activities (e.g., device
integration and characterization, but not the synthesis of Deposited
Nanomaterials). Information on the design and modeling of Deposited
Nanomaterials, as well as [*** Redacted], [*** Redacted], and [*** Redacted]
related to Deposited Nanomaterials, shall be provided to Intel's Listed
Representatives, but in each case only as reasonably required for device
integration and characterization for the purpose of the Collaboration, including
but not limited to, making an informed decision about the complexity of
integrating Deposited Nanomaterials with Conventional Processes. Nanosys' Listed
Representatives may also be invited to work at Intel's facilities, for
circumstances including but not limited to, using a metrology tool that may not
be available at the Nanosys Facility. The parties shall adhere to the following
guidelines in connection with Listed Representatives working at the site of the
other party: (a) all employees of one party visiting the other party's facility
shall comply with the rules and regulations applicable at that facility as
communicated to such employees, and each party retains the right to reasonably
refuse admittance for violation of these rules; (b) the hosting party shall
maintain reasonable firewall procedures so that employees of a visiting party
are not exposed to the confidential information of a third party; (c) each party
shall maintain reasonable firewall procedures so that third parties at a party's
site are not exposed to the confidential information of the other party or
non-public information about the status of this Collaboration; and (d) in the
case of Nanosys only, cubicle space, secure Internet access, and badge access
shall be made available for use by Intel's Listed Representatives when such a
person or persons are working on site at the Nanosys Facility.

                  2.4 Except as set forth in Section 5, any and all materials
supplied by one party to the other party shall be used by the recipient only to
perform its Collaboration obligations.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -4-

<PAGE>

                  2.5 Except as set forth in Section 3 below, each party shall
bear its own costs and expenses in carrying out the Collaboration.

                  2.6 Except for University/Government Activities, each party
agrees to work exclusively with the other party in the Field of Interest during
the Exclusivity Period.

                  2.7 The following persons ("Collaboration Managers") shall be
appointed to direct the conduct of the parties with respect to the
Collaboration:

                       (a)  For Intel:          Eric Hannah
                                                Sector Director, Intel Research
                                                Intel Corporation
                                                2200 Mission College Blvd.
                                                Mail Stop RN6-661
                                                Santa Clara, CA 95052
                                                Phone:  408-765-4441
                                                Fax:    408-765-6271
                                                E-mail: eric.hannah@intel.com

                       (b)  For Nanosys:        Calvin Y.H. Chow
                                                Chief Executive Officer
                                                Nanosys Inc.
                                                2625 Hanover Street
                                                Palo Alto, CA 94304
                                                Phone: (650) 331-2102
                                                Fax: (650) 331-2101
                                                E-mail: cchow@nanosysinc.com

The Collaboration Managers shall have the authority to approve in writing
changes to Exhibit A, including, as applicable, specifications, scope of work,
and milestones. The Collaboration Managers shall have no other authority to
amend this Agreement. Each party may change its Collaboration Manager on written
notice to the other party, provided that the replacement Collaboration Manager
is at a similar level of authority at the party making the replacement, or as
otherwise agreed by the parties.

                  2.8 If either party desires to propose changes to the
Collaboration, it shall notify the other party in writing of such proposal and
the reasons for such proposal. The other party will give each such proposal its
prompt attention. If Intel and Nanosys agree to any such change, the change
shall be evidenced by a written confirmation signed by the Collaboration
Managers of both parties. Such a written confirmation shall amend the terms of
Exhibit A.

                  2.9 If the Collaboration is completed successfully (i.e.,
neither party has terminated this Agreement under Section 10, and the parties
agree that the subject technology is promising and warrants pursuing further),
then it is the parties' intent that, at Intel's request, the parties will
negotiate, in good faith, during the Exclusivity Period to enter into a
follow-on development agreement (the "Development Agreement") to further develop
and commercialize the technology

                                                                             -5-

<PAGE>

which is the subject of this Agreement If Intel requests such a negotiation,
then, for the duration of the Exclusivity Period, Nanosys agrees that Nanosys
will not enter into any discussions regarding the subject of the Collaboration
with any third party. The parties further intend that any such Development
Agreement would reflect that, if the development and commercialization of this
technology are successful, and Intel has a good-faith intent to use the
Collaboration Materials in anticipation of a high-volume manufacturing ramp,
then:

                           (a)      It is the parties' mutual intent that the
parties would negotiate in good faith a supply agreement that reasonably assures
the supply of Deposited Nanomaterials and any related Nanosys enabling
technology or rights to Intel (for use in the Field of Interest, the
"Collaboration Materials"). Upon Intel's request to commence such negotiations,
the parties would negotiate diligently and in good faith to reach agreement.
Further, if at the expiration of the Development Agreement the parties have not
reached agreement, notwithstanding their diligent and good faith efforts, then
Nanosys would not enter into any supply agreement, within six (6) months after
the expiration of the Development Agreement, to supply Collaboration Materials
to any third party, in the Field of Interest, on terms which are more favorable
to that third party than the terms last offered by Nanosys to Intel during this
negotiation. In the first instance, the parties would use reasonable efforts to
qualify Nanosys as a supplier to Intel of the Collaboration Materials. Nanosys
acknowledges that, in order to be selected as an Intel qualified supplier,
Nanosys must demonstrate supply capability (in areas including, but not limited
to, cost, quality, and availability). Nanosys further acknowledges that the
supply agreement would include a "most favored customer" provision which
guarantees that, at any time, Nanosys' price to Intel for Collaboration
Materials is no higher than the price charged by Nanosys to any third party for
Collaboration Materials, in the Field of Interest, on similar terms and
conditions. Further, if the parties enter into a supply agreement, the supply
agreement will include provisions to help ensure a reliable supply of
Collaboration Materials to Intel, which may include (i) safety stock and (ii) if
Nanosys is unable to reasonably provide Intel with the Collaboration Materials,
then upon notice from Intel, Nanosys' would take prompt action to arrange for
such supply, which may include designating a subcontractor, subject to Intel's
consent of such subcontractor (which shall not be unreasonably withheld), to
manufacture such quantity of Collaboration Materials that cannot be obtained
from Nanosys, providing such subcontractor agrees to pay Nanosys a reasonable
royalty and agrees to reasonable confidentiality, intellectual property
protection, and commercial provisions. Nanosys agrees to fully reasonably
cooperate with Intel and the chosen subcontractor in the transfer of technology
and sufficient collaborative engineering resources necessary to allow the
subcontractor to produce Collaboration Materials for Intel's intended use as
soon as practicable after Intel's request. Nanosys reserves the right to seek
any and all legal recourse against the subcontractor if confidentiality or other
provisions of the agreement between Nanosys and the subcontractor are violated.

                           (b)      It is the parties' mutual intent that, if
the parties have not entered into a supply agreement as set forth in Section
2.9(a), notwithstanding their diligent and good faith efforts, then upon Intel's
request within [*** Redacted] after the expiration of the Development
Agreement, Nanosys would designate a contract manufacturer, subject to Intel's
consent of such contract manufacturer (which would not be unreasonably
withheld), to manufacture Collaboration Materials, licensing such contract
manufacturer to applicable Nanosys intellectual property on reasonable and
non-discriminatory terms, provided that such contract manufacturer agrees to pay
Nanosys a reasonable royalty and agrees to reasonable confidentiality,
intellectual property

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -6-

<PAGE>
protection, and commercial provisions. Nanosys shall fully and reasonably
cooperate with Intel and the chosen contract manufacturer in the transfer of
technology and sufficient collaborative engineering resources necessary to allow
the contract manufacturer to produce Collaboration Materials for Intel's
intended use as soon as practicable after Intel's request. Nanosys reserves the
right to seek all legal recourse against the contract manufacturer if
confidentiality or other provisions of the license between Nanosys and the
contract manufacturer are violated. If Nanosys fails to enter into a license
with a contract manufacturer as contemplated in this Section 2.9(b) within
[*** Redacted] after Intel's request to Nanosys, then Nanosys would be deemed
not to be entering the business of high-volume supply of Collaboration
Materials.

                           (c)      The parties further intend that if Nanosys
chooses not to enter into the business of supply of Collaboration Materials, and
Nanosys does not license the necessary enabling technology to a third party
manufacturer as provided in Section 2.9(b) above, then Nanosys would provide to
Intel a royalty-bearing, capped fee, worldwide, perpetual, non-exclusive license
under Nanosys IP, to have made Collaboration Materials and to make, have made,
use, sell, offer to sell and import, products using or incorporating
Collaboration Materials.

         3.       PAYMENTS TO NANOSYS.

                  3.1 Intel shall pay to Nanosys the following payments at the
following times:

<TABLE>
<CAPTION>
           TIME OF PAYMENT                                  AMOUNT OF PAYMENT
----------------------------------------                ------------------------
<S>                                                     <C>
Collaboration Commencement Date                             $   [*** Redacted].

Three (3) months after the Collaboration                    $   [*** Redacted].
Commencement Date

Six (6) months after the Collaboration                      $   [*** Redacted].
Commencement Date

Nine (9) months after the Collaboration                     $  [*** Redacted]*.
Commencement Date
</TABLE>

* $[*** Redacted] per FTE, according to the number of FTEs chosen by Intel,
pursuant to Section 2.2 above, for the fourth quarter of the Collaboration.

For the avoidance of doubt, the latter two payments (of $[*** Redacted] and
([*** Redacted])) will not be due if Intel terminates this Agreement under
Section 10.2 below.

                  3.2 For each month (or portion thereof) that Intel delays the
Collaboration Commencement Date, pursuant to Section 2.1 above, to a date after
December 31,2003, Intel shall pay to Nanosys [*** Redacted] dollars
($[*** Redacted]) (prorated on a day for day basis for partial months). Such
payment shall be due and payable within thirty (30) days after Intel's notice of
delay. (By way of example only, if upon execution of this Agreement Intel
notified Nanosys of a Collaboration Commencement Date delay to January 15,
2004, Intel would pay Nanosys $[*** Redacted] within thirty (30) days after such
notice date. If on December 15,2003 Intel then notified Nanosys of a further
delay

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -7-

<PAGE>

in the Collaboration Commencement Date, until March 10, 2004, Intel would
pay to Nanosys an additional $[*** Redacted] by January 14, 2004 (i.e., in
this example, a total of $[*** Redacted]).)

                  3.3 As of the Effective Date, the "Exclusivity Expiration"
shall be fifteen (15) months after the Exclusivity Date.

                           (i)      Intel shall be entitled to extend the
Exclusivity Expiration by three (3) months, to eighteen (18) months after the
Exclusivity Date, by written notice to Nanosys no later than fourteen (14)
months after the Exclusivity Date, and payment to Nanosys of [*** Redacted]
dollars ($[*** Redacted]). This payment shall be due and payable no later than
fifteen (15) months after the Exclusivity Date.

                           (ii)     If Intel has extended the Exclusivity
Expiration pursuant to paragraph (i) hereinabove, then Intel shall be entitled
to further extend the Exclusivity Expiration by an additional three (3) months,
to twenty-one (21) months after the Exclusivity Date, by written notice to
Nanosys no later than seventeen (17) months after the Exclusivity Date, and
payment to Nanosys of [*** Redacted] dollars ($[*** Redacted]). This payment
will be due and payable no later than eighteen (18) months after the Exclusivity
Date.

                           (iii)    If Intel has extended the Exclusivity
Expiration pursuant to paragraph (ii) hereinabove, then Intel shall be entitled
to further extend the Exclusivity Expiration by an additional three (3) months,
to twenty-four (24) months after the Exclusivity Date, by written notice to
Nanosys no later than twenty (20) months after the Exclusivity Date, and payment
to Nanosys of [*** Redacted] dollars ($[*** Redacted]). This payment will be due
and payable no later than twenty-one (21) months after the Exclusivity Date.

Amounts paid by Intel pursuant to this Section 3.3 may, at Intel's option, be
credited to any payment of Intel to Nanosys under any development collaboration
by the parties, in the Field of Interest, entered into prior to termination of
the Exclusivity Period.

         4.       OWNERSHIP.

                  4.1 Each party shall retain its ownership of its Background
IP. No rights are granted pursuant to this Agreement with respect to any
Background IP.

                  4.2 Subject to the licenses set forth in Section 5 below,
Nanosys shall own all Collaboration IP. Subject to the licenses set forth in
Section 5 below, Intel irrevocably hereby agrees to, and hereby does, transfer,
convey and assign to Nanosys all of Intel's right, title, and interest in the
Collaboration IP, including without limitation all Intellectual Property rights
with respect thereto. Intel agrees to execute such documents, render such
assistance, and take such other action as Nanosys may reasonably request to
apply for, register, perfect, confirm, and protect Nanosys' rights in the
Collaboration IP. Subject to Sections 5, 6, and 7 below, ownership of
Collaboration Technology shall vest in Nanosys the exclusive right to determine
whether and how the Collaboration IP is to be protected and exercised throughout
the world.

         5.       LICENSES.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -8-

<PAGE>

                  5.1 Subject to the terms and conditions of this Agreement,
Nanosys agrees to grant, and hereby grants, to Intel a worldwide, nonexclusive
(except as set forth in Section 5.1(i) hereinbelow), nontransferable (except as
set forth in Section 11.7 below), royalty free license, only under Collaboration
IP, to design, develop, make, have made, use, import, offer to sell, and sell or
distribute any product or item and to practice any method or process, provided
that:

                           (i)      this license shall be exclusive (including
as to Nanosys) for use of the Collaboration IP in Intel's Exclusive Field, and

                           (ii)     no license is granted by Nanosys for use of
any Collaboration IP in Nanosys' Exclusive Field.

                  5.2 Intel shall have the right to grant sublicenses (and
authorize the granting of further sublicenses) under the license granted to it
in Section 5.1 above.

                  5.3 No party shall be obligated to provide any Technology or
deliverable in connection with the licenses granted in this Section 5; all
deliverables under this Agreement are specified exclusively in Exhibit A.

                  5.4 Notwithstanding this Section 5 or Section 2.4, nothing in
this Agreement shall be construed as preventing Intel or Nanosys employees from
using [*** Redacted] of the Confidential Information of the other party,
provided that such use of [*** Redacted] shall not grant to Intel or Nanosys any
implied license to any of the other party's [*** Redacted]. [*** Redacted] means
information in [*** Redacted] which is [*** Redacted]. An [*** Redacted] if the
[*** Redacted] the information for the purpose of [*** Redacted].

                  5.5 For purposes of this Section 5.5, the following
definitions apply:

         "Applicable Intel Patents" means those claims of Intel patents which
claim inventions conceived by Intel during the 24 months following the
termination or expiration of the Collaboration, which inventions were based on
Nanosys' Confidential Information.

         "Applicable Nanosys Patents" means those claims of Nanosys patents
which claim inventions conceived by Nanosys during the 24 months following
the termination or expiration of the Collaboration, which inventions were based
on Intel's Confidential Information.

         "Applicable Intel Sublicensable Patents" means those claims of Intel
patents which claim inventions conceived by Intel during the 12 months
following the termination or expiration of the Collaboration, which inventions
were based on Nanosys' Confidential Information.

         "Applicable Nanosys Sublicensable Patents" those claims of Nanosys
patents which claim inventions conceived by Nanosys during the 12 months
following the termination or expiration of the Collaboration, which inventions
were based on Intel's Confidential Information.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                             -9-

<PAGE>

                           (a)      Subject to the terms and conditions of this
Agreement, Nanosys agrees to grant, and hereby grants, to Intel a worldwide,
nonexclusive, nontransferable (except as set forth in Section 11.7 below),
royalty free license, only under the Applicable Nanosys Patents, to design,
develop, make, have made, use, import, offer to sell, and sell or distribute any
product or item and to practice any method or process, provided that this
license shall be limited to use within Intel's Exclusive Field and the Field of
Interest. Intel shall have the right to grant sublicenses (and authorize the
granting of further sublicenses) under the license granted to it in this Section
5.5(a), as provided in Section 5.5(b) below.

                           (b)      Under the licenses granted under Section
5.5(a) above, but only under Applicable Nanosys Sublicensable Patents, and only
outside of the Field of Interest, Intel shall have the right to grant
sublicenses (and authorize the granting of further sublicenses).

                           (c)      Subject to the terms and conditions of this
Agreement, Intel agrees to grant, and hereby grants, to Nanosys a worldwide,
nonexclusive, nontransferable (except as set forth in Section 11.7 below),
royalty free license, only under the Applicable Intel Patents, to design,
develop, make, have made, use, import, offer to sell, and sell or distribute any
product or item and to practice any method or process, provided that this
license shall be limited to use within Nanosys' Exclusive Field and the Field of
Interest. Nanosys shall have the right to grant sublicenses (and authorize the
granting of further sublicenses) under the license granted to it in this Section
5.5(c), as provided in Section 5.5(d) below.

                           (d)      Under the licenses granted under Section
5.5(c) above, but only under Applicable Intel Sublicensable Patents, and only
outside of the Field of Interest, Nanosys shall have the right to grant
sublicenses (and authorize the granting of further sublicenses).

         6.       CONFIDENTIAL INFORMATION.

                  6.1 The CNDA shall apply to this Agreement, provided that, for
purposes of this Agreement:

                           (i)      "Confidential Information" shall also
include information disclosed as a result of access to the other party's
premises or property, which information relates to any information in tangible
form subject to clause (i) of Section 1 of the CNDA, whether such disclosure or
access occurs prior to, concurrent with, or following the disclosure of such
information in tangible form.

                           (ii)     In Section 2 of the CNDA, "a need to know"
means a need to know for the purposes of this Agreement.

                           (iii)    The third sentence of Section 6 of the CNDA
shall not apply to this Agreement; rather, the Termination and Survival sections
of this Agreement shall govern the disposition of Confidential Information.

                           (iv)     If the CNDA is terminated, the terms and
conditions of the CNDA shall continue to apply to disclosures in connection with
this Agreement.

                                                                            -10-

<PAGE>

                  (v) In addition, each party shall be entitled to disclose the
other party's Confidential Information to the extent such disclosure is required
by the order or requirement of a court, administrative agency, or other
governmental body; provided, that the party required to make the disclosure
shall provide at least fifteen (15) days (or such lesser period as may apply if
the party required to make the disclosure received fewer than fifteen (15) days
notice of the disclosure obligation), advance written notice thereof to enable
the other party to seek a protective order or otherwise prevent such disclosure.

         7.       INTELLECTUAL PROPERTY PROTECTION.

                  7.1 Nanosys IP. Nanosys shall have the sole right at its
expense to prepare, file and prosecute Filings related to any Collaboration
Technology, subject to Section 7.2 below.

                  7.2 Protection of Collaboration Technology. The parties shall
confer on (i) protection of Collaboration Technology (other than Collaboration
Technology developed solely by Nanosys) through Filings and/or through
maintenance of the Collaboration IP as a trade secret, and (ii) preparation,
filing, prosecution and maintenance of Filings and Collaboration Rights related
to Collaboration Technology (other than Collaboration Technology developed
solely by Nanosys). Nanosys shall be responsible for all Filing(s) in all
jurisdictions for Collaboration IP. Provided however, if only Intel wants to
protect a Collaboration development through a Filing on that development, then
Intel shall be entitled to do so, at its sole expense, and in such a case shall
be deemed sole owner of the affected Collaboration Right and Filing. In such
event, Intel shall be deemed to have granted to Nanosys a nonexclusive (except
as set forth hereinbelow), irrevocable, perpetual, fully paid, royalty free
license, with right to sublicense (and authorize the granting of further
sublicenses), only under such Collaboration Right, without restriction,
including to practice any process or method, and to design, develop, make, use,
have made, offer to sell, and sell or distribute any product or item, provided
that (A ) this license shall be exclusive (including as to Intel) for use of the
Collaboration Right in Nanosys' Exclusive Field and (B) no license is granted by
Intel for use of the Collaboration Right in Intel's Exclusive Field.

                  7.3 Infringement Prosecution.

                           (i)      Nanosys shall have the sole right to
prosecute claims of infringement or misappropriation of Collaboration IP, where
such infringement or misappropriation is primarily in Nanosys' Exclusive Field.
In each such case, Intel shall, at Nanosys' expense, take all actions reasonably
requested by Nanosys in such prosecution, subject to indemnification by Nanosys
of Intel for any liability to third parties resulting from such participation.

                           (ii)     Intel shall have the sole right to prosecute
claims of infringement or misappropriation of Collaboration IP where such
infringement or misappropriation is primarily in Intel's Exclusive Field. In
each such case, Nanosys shall, at Intel's expense, take all actions reasonably
requested by Intel in such prosecution (which may include participation as a
named plaintiff, subject to indemnification by Intel of Nanosys for any
liability to third parties resulting from such participation as a plaintiff).

                                                                            -11-
<PAGE>

                  7.4 Further Assurances. At any time or from time to time on
and after the date of this Agreement, each party shall at the request of the
other party (i) execute, and deliver or cause to be delivered, all such
consents, documents or further instruments of license, assignment, and transfer,
and (ii) take or cause to be taken all such other actions, in each case at the
other party's expense and as the other party may reasonably deem necessary or
desirable in order for the other party to obtain the full benefits of Section
4.2 and this Section 7 and the activities contemplated thereby.

         8.       WARRANTY DISCLAIMER.

         NEITHER NANOSYS NOR INTEL MAKES ANY WARRANTY OF ANY KIND, WHETHER
EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. WITHOUT
LIMITING THE FOREGOING, ALL DELIVERABLES AND OTHER ITEMS ARE PROVIDED BY EACH
PARTY "AS IS," AND ALL LICENSES GRANTED BY EACH PARTY ARE GRANTED "AS IS."

         9.       LIMITATION OF LIABILITY.

         NEITHER PARTY SHALL HAVE ANY LIABILITY FOR COSTS OF SUBSTITUTE PRODUCTS
OR SERVICES, OR FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL OR INDIRECT
DAMAGES OR LIABILITIES, INCLUDING WITHOUT LIMITATION SUCH DAMAGES OR LIABILITIES
FOR LOSS OF REVENUE, LOSS OF BUSINESS, FRUSTRATION OF ECONOMIC OR BUSINESS
EXPECTATIONS, LOSS OF PROFITS, OR COST OF CAPITAL, REGARDLESS OF THE FORM OF THE
ACTION, WHETHER IN CONTRACT OR OTHERWISE, EVEN IF ANY REPRESENTATIVE OF A PARTY
HERETO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL
EITHER PARTY'S LIABILITY UNDER THIS AGREEMENT EXCEED THE AMOUNTS PAID OR PAYABLE
BY INTEL TO NANOSYS UNDER THIS AGREEMENT, provided that, as to Intel, this shall
be in addition to Intel's obligation to pay such amounts. These limitations,
however, shall not apply to either party's liability, if any, (i) for
contribution or indemnity with respect to liability to third parties for
personal injury, death, or damage to tangible property, (ii) exceeding the scope
of the licenses in Section 5 (Licenses), (iii) breach of Section 6 (Confidential
Information), or (iv) infringement of the other party's intellectual property
rights.

         10.      TERM AND TERMINATION.

                  10.1 Term. This Agreement shall commence as of the Effective
Date and shall continue until the expiration of the Exclusivity Period, unless
earlier terminated as set forth herein.

                  10.2 Q2 Checkpoint. Intel shall be entitled to terminate this
Agreement, for its convenience, on notice to Nanosys at any time within ten (10)
days after completion of the "Q2 Formal Review Meeting" milestone in Exhibit A.

                  10.3 Termination Due to Bankruptcy, etc. In the event a party:
(i) becomes insolvent; (ii) voluntarily files or has filed against it a petition
under applicable bankruptcy or insolvency laws which such party fails to have
released within thirty (30) days after filing;

                                                                            -12-

<PAGE>

(iii) proposes any dissolution, composition or financial reorganization with
credit ors or if a receiver, trustee, custodian or similar agent is appointed or
takes possession with respect to all or substantially all property or business
of such party; or (iv) such party makes a general assignment for the benefit of
creditors; then the other party may terminate this Agreement by notice to the
non-terminating party.

                  10.4 Termination Due to Breach. Either party shall have the
right to terminate this Agreement if the other party is in material breach of
any material term or condition of this Agreement and fails to remedy such breach
within thirty (30) days after receipt of written notice of such breach given by
the non-breaching party. To terminate this Agreement, the nonbreaching party
must provide further written notice of such termination to the breaching party
prior to a cure of the breach.

                  10.5 Survival. Neither the termination nor expiration of this
Agreement shall relieve either party from its obligations to pay the other any
sums accrued hereunder. Upon the termination or expiration of this Agreement,
(i) Intel shall promptly return to Nanosys all Nanosys Confidential Information
and (ii) Nanosys shall promptly return to Intel all Intel Confidential
Information. The parties agree that their respective rights, obligations and
duties under Sections 1, 2.9, 4 (Ownership), 5 (Licenses), 6 (Confidential
Information), 7 (Intellectual Property Protection), 8 (Warranty Disclaimer), 9
(Limitation of Liability), 10.5 (Survival), and 11 (Miscellaneous) shall survive
any termination or expiration of this Agreement.

         11.      MISCELLANEOUS.

                  11.1 Announcement. On or after the Effective Date, Nanosys
shall be entitled to issue a press release pertaining to this Agreement, upon
written consent from Intel to the content of the press release.

                  11.2 Notices. All notices, requests, demands and other
communications given or made in accordance with the provisions of this Agreement
shall be in writing and shall be deemed to have been given (i) three days after
mailing when mailed (by registered or certified mail, postage paid, only), (ii)
on the date sent when made by facsimile transmission with confirmation of
receipt (with hard copy to follow by registered or certified mail, postage paid,
only), and (iii) on the date received when delivered in person or by courier,
provided that notices and communications with respect to administrative and
project matters (e.g., changes in meeting times and dates, program
specifications, and specific program development activities) (but not legal
matters or matters pertaining to or establishing rights under this Agreement),
may be provided by e-mail and will be deemed given when sent. All notices shall
be provided to the address set forth below or such other place as such party may
from time to time designate in writing. Each party may alter its address set
forth below by notice in writing to the other party, and such notice shall be
considered to have been given three (3) days after the sending thereof:

               If to Nanosys:         Nanosys Inc.
                                      2625 Hanover Street
                                      Palo Alto, California 94304
                                      Fax:(650)331-2101

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                            -13-

<PAGE>

                                      Attn: Calvin Y.H. Chow
                                      E-mail: cchow@nanosysinc.com

               with a copy, for matters pertaining to intellectual property, to:

                                      Nanosys Inc.
                                      2625 Hanover Street
                                      Palo Alto, California 94304
                                      Fax: (650) 331-2101
                                      Attn: Matt Murphy
                                      E-mail: mmurphy@nanosysinc.com

               If to Intel:           Intel Corporation
                                      2200 Mission College Blvd.
                                      Santa Clara, CA 95052
                                      ATTN: General Counsel

                  11.3 Amendment; Waiver. This Agreement may be amended,
modified or supplemented only by a writing that is signed by duly authorized
representatives of both parties and that specifically identifies the provision
or provisions of this Agreement being amended, modified or supplemented. No term
or provision hereof will be considered waived by either party, and no breach
excused by either party, unless such waiver or consent is in writing signed on
behalf of the party against whom the waiver is asserted. Without limiting the
foregoing, no consent by either party to, or waiver of, a breach by either
party, whether express or implied, will constitute a consent to, waiver of, or
excuse of any other, different, or subsequent breach by either party.

                  11.4 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 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.

                  11.5 Governing Law. This Agreement shall be governed by and
construed under the laws of the United States and the State of California, not
including its conflict of law provisions.

                  11.6 Force Majeure. Except for the payment of sums accrued,
neither party will be liable for any failure or delay in performance under this
Agreement due to fire, explosion, earthquake, storm, flood or other weather,
unavailability of necessary utilities or raw materials, war, insurrection, riot,
act of God or the public enemy, law, act, order, proclamation, decree,
regulation, ordinance, or instructions of government or other public
authorities, or any other event beyond the reasonable control of the party whose
performance is to be excused. If, however, a party's performance is prevented
for sixty (60) days, then the other party shall be entitled to terminate this
Agreement on written notice to the party suffering the force majeure at any time
prior to resumption of performance by the party suffering the force majeure.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

                                                                            -14-

<PAGE>

                  11.7 Assignment. Neither party may transfer or assign this
Agreement, whether by operation of law or otherwise, without the prior written
consent of the other party and any attempt to do so without such consent will be
void. This Agreement will bind and inure to the benefit of the parties and their
respective permitted successors and permitted assigns. Notwithstanding anything
in this Agreement, however, either party may assign this Agreement without the
other party's prior written consent to a successor to all or substantially all
of its assets pertaining to the Collaboration (e.g., the surviving entity in a
merger or consolidation in which it participates or to a purchaser of all or
substantially all of its assets pertaining to the Collaboration), so long as
such surviving entity or purchaser shall assume (expressly in writing or by
operation of law) the performance of all of the terms of this Agreement.

                  11.8 No Third Party Beneficiaries. No person or entity other
than Intel and Nanosys will have any rights or obligations pursuant to this
Agreement.

                  11.9 Relationship of the Parties. The parties to this
Agreement are independent contractors. There is no relationship of agency,
partnership, joint venture, employment, or franchise between the parties and
this Agreement is negotiated at arm' s length with both sides represented by
counsel of their choice. Neither party has the authority to bind the other or to
incur any obligation on its behalf. Any such act will create a separate
liability in the party so acting to any and all third parties affected thereby.

                  11.10 Counterparts. This Agreement may be executed in two
counterparts, each of which shall be deemed an original, but both of which
together shall constitute one and the same instrument. If this Agreement is
executed in counterparts, no signatory hereto shall be bound until both the
parties named below have duly executed or caused to be duly executed a
counterpart of this Agreement.

                  11.11 Confidentiality of Agreement. Subject to Section 6.1(v)
and Section 11.1, each party agrees that the existence of and the terms and
conditions of this Agreement shall be treated as confidential, provided,
however, that each party may disclose the terms and conditions of this
Agreement: (i) as required by any court or other governmental body; (ii) as
otherwise required by law; (iii) to legal counsel of the parties; (iv) in
connection with the requirements of a public offering or securities filing; (v)
in confidence, to accountants, banks, and financing sources and their advisors;
(vi) in confidence, in connection with the enforcement of this Agreement or
rights under this Agreement; or (vii) in confidence, in connection with a merger
or acquisition or proposed merger or acquisition, or the like.

                  11.12 Authority. Each party represents and warrants to the
other party at the Effective Date (i) that it has the legal right, power, and
authority to enter into this Agreement and to fully perform its obligations
under this Agreement, and (ii) that the performance of such obligations will not
conflict with any agreements, contracts or other arrangements to which it is a
party or by which it is bound.

                  11.13 Entire Agreement. This Agreement, including all Exhibits
to this Agreement, together with the CNDA (as set forth in Section 6 above),
constitutes the entire agreement between the parties relating to this subject
matter and supersedes all prior or simultaneous representations,

                                                                            -15-

<PAGE>

discussions, negotiations, letters of intent, and agreements, whether written or
oral, with respect to the subject matter hereof.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the dates set forth below effective as of the Effective Date.

NANOSYS INC.                              INTEL CORPORATION

By: /s/ CALVIN CHOW                       By: /s/ PATRICK P GELSINGER
    -----------------------------             -----------------------------
Print Name: CALVIN CHOW                   Print Name: PATRICK P GELSINGER
Title: CEO                                Title: Sr VP / CTO

                                                        LEGAL  OK
                                                        ----------
                                                        p  12/8/03

                                                                            -16-

<PAGE>

                                    EXHIBIT A

                  Collaboration Statement of Work (SOW) Summary

         Construction of [*** Redacted] devices (similar to the concept figure
below) to evaluate key technical areas required for a [*** Redacted] memory unit
and to project the performance limits of the technology.

                                 [*** Redacted]

         Device will have an [*** Redacted] and will be utilized to evaluate:

         -        [*** Redacted] and [*** Redacted].

         -        [*** Redacted] characteristics (e.g. [*** Redacted], etc.)

         -        [*** Redacted] - including [*** Redacted] characteristics.

         -        Effects of [*** Redacted], and [*** Redacted] modifications.

         -        Variations of [*** Redacted].

         -        [*** Redacted] (e.g. [*** Redacted])

         -        Variations of processing means.

         and to construct a model for [*** Redacted] of a [*** Redacted] or [***
Redacted] device.

In Q1 and Q2, the project would focus on modeling and generating/testing
[*** Redacted] in order to reconcile the validity of the model. Q3 and Q4 would
focus on a [*** Redacted] to better select [*** Redacted]. The [*** Redacted]
work would be done on [*** Redacted] devices in a [*** Redacted]. A more
detailed plan of activities will be generated by the Collaboration team upon
Commencement of the Collaboration.

*** Confidential treatment requested pursuant to a request for confidential
treatment filed with the Securities and Exchange Commission. Omitted portions
have been filed separately with the Commission.

<PAGE>
The parties will hold a Q2 Formal Review Meeting no later than two weeks
after the end of Q2.

                                                                             -2-

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