Document:

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          Confidential Materials omitted and filed separately with the
        Securities and Exchange Commission. Asterisks denote omissions.

                                                                    EXHIBIT 10.7

                                LICENSE AGREEMENT

     This LICENSE AGREEMENT is made and entered into this 21st day of March,
1997 by and between Biogen, Inc. ("Biogen"), a Massachusetts corporation, with
principal offices located at 14 Cambridge Center, Cambridge, Massachusetts
02142, and The Medicines Company, a Delaware corporation, with principal offices
located at One Cambridge Center, Cambridge, Massachusetts 02142 ("TMC").

                                  INTRODUCTION

     1.   Biogen is the owner of certain patents and other proprietary rights
related to HIRULOG(R) bivalirudin and related hirudin-based peptide analogs, and
has conducted clinical trials using HIRULOG(R) bivalirudin for the treatment of
percutaneous transluminal coronary angioplasty, acute myocardial infarction and
other diseases.

     2.   TMC is a biopharmaceutical company which is committed to the
development and commercialization of prescription pharmaceutical products.

     3.   TMC desires to obtain an exclusive right and license in and to
Biogen's technology, patent rights and proprietary know-how related to
HIRULOG(R) bivalirudin and other hirudin-based peptides to develop and
commercialize products based on such technology, patent rights and know-how
worldwide.

     4.   Biogen is willing to grant a license to TMC on the terms and
conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

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     SECTION 1 - DEFINITIONS

     As used in this Agreement, the following terms, whether used in the
singular or plural, shall have the following meanings:

     1.1  "AFFILIATE", as applied to either party, shall mean any corporation,
partnership, joint venture or other legal entity which controls, is controlled
by or is under common control with such party. For purposes of this definition,
the term "control" shall mean (a) in the case of corporate entities, direct or
indirect ownership or control of at least fifty percent (50%) of the outstanding
equity entitled to vote for directors, and (b) in the case of non-corporate
entities, direct or indirect ownership of at least fifty percent (50%) of the
equity interest with the ability to otherwise control the management of the
entity.

     1.2  "AMI" shall mean acute myocardial infarction.

     1.3  "AMI TRIAL" shall have the meaning set forth in Section 4.2.

     1.4  "BIOGEN PATENT RIGHTS" shall mean all patents and patent applications
throughout the Territory, covering or relating to Biogen Technology, including
any substitutions, extensions, reissues, reexaminations, renewals,
continuations, continuations-in-part, divisionals and supplemental protection
certificates, which Biogen owns or Controls. Biogen Patent Rights existing as of
the Effective Date are set forth in APPENDIX A to this Agreement.

     1.5  "BIOGEN TECHNOLOGY" shall mean all Technology which Biogen owns or
Controls as of the Effective Date and which is reasonably useful in order to
research, develop, make, use, sell or seek approval to market Product.

     1.6  "CARDIOLOGY INDICATIONS" shall mean all therapeutic, prophylactic and
diagnostic applications in humans related to the management of coronary vessel
disease, including INTER ALIA, PTCA, AMI and unstable angina. Cardiology
Indications shall not include INTER ALIA,

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arrhythmia, not of ischemic etiology, embolic or hemorraghic stroke or any
medical condition resulting from an abnormality of venous circulation.

     1.7  "COMMERCIAL DEVELOPMENT ACTIVITIES" shall mean pre and post
Product-launch clinical studies that are not required for regulatory approval of
Product in the Major Markets, pharmacoeconomic studies and sponsored educational
programs for health care professionals at which clinical and/or pharmacoeconomic
data related to Product are presented.

     1.8  "CONFIDENTIAL INFORMATION" shall mean all information and materials,
including without limitation, trade secrets and other proprietary information
and materials (whether or not patentable) regarding a Party's Technology,
products, business plans or objectives.

     1.9  "CONTROL" shall mean possession of the ability to grant a license or
sublicense, as provided herein, without violating the terms of any agreement or
other arrangement with any third party.

     1.10 "CSL" shall mean CSL Limited (formerly Commonwealth Serum Laboratories
Limited) or any successor in interest to the rights of CSL Limited under the CSL
Agreement.

     1.11 "CSL AGREEMENT" shall mean a certain License and Supply Agreement
between Biogen and CSL, dated as of September 30, 1991.

     1.12 "DISTRIBUTOR" shall mean a person or entity in a country who (i)
purchases Product or bulk Peptide from TMC or one of its Affiliates, and (ii)
assumes responsibility for a portion of the promotion, marketing, sales and
customer service effort related to Product in that country, and (iii) under an
implied or express sublicense, sells Product in that country. The term
Distributor shall not include a person or entity who provides a contract sales
force to serve, in whole or in part, as TMCs sales force with respect to sales
by TMC. For purposes of this Agreement, CSL shall be considered a Distributor of
TMC based on the current CSL Agreement,

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and, to the extent that the CSL Agreement is modified, shall be considered a
Distributor if it meets the criteria set forth in this definition. Without
limiting the generality of the foregoing, Biogen acknowledges that TMC currently
intends to contract with Innovex for sales support, and agrees that Innovex
shall not be considered to constitute a Distributor by virtue of such sales
support.

     1.13 "EFFECTIVE DATE" shall mean the date of this Agreement.

     1.14 "EXISTING NON-CARDIOLOGY INDICATIONS" shall mean those indications,
set forth in Appendix E, that (a) are not Cardiology Indications and (b) as to
which Biogen had data from human clinical trials as of the Effective Date.

     1.15 "FDA" shall mean the United States Food and Drug Administration.

     1.16 "FTE" shall mean a full-time equivalent person year consisting of a
total of one thousand eight hundred eighty (1,880) hours per year of work
carried out by a Biogen employee.

     1.17 "FIELD" shall mean all therapeutic, prophylactic and diagnostic
applications in humans.

     1.18 "FIRST COMMERCIAL SALE" shall mean in each country of the Territory
with respect to each Product, (i) the first sale of the Product by TMC or any of
its Affiliates, Sublicensees or Distributors to a third party in such country in
connection with the nationwide introduction of the Product by TMC, its
Affiliates, Sublicensees or Distributors following marketing and/or pricing
approval by the appropriate governmental agency for the country in which the
sale is made, or (ii) when governmental approval is not required, the first sale
in such country in connection with the nationwide introduction of the Product in
that country.

     1.19 "HRI" shall mean Health Research, Inc. or any successor in interest to
the rights of Health Research Inc.'s under the HRI Agreement.

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     1.20 "HRI AGREEMENT" shall mean a certain License Agreement between Biogen
and HRI, dated as of June 6, 1990, as amended.

     1.21 "IND" shall mean an Investigational New Drug application, as defined
under the United States Federal Food, Drug and Cosmetic Act, as amended.

     1.22 "MAA" shall mean an application for regulatory approval to sell
Product in the European Union and similar in purpose to an NDA in the United
States.

     1.23 "MAJOR MARKETS" shall mean the United States, the United Kingdom,
Germany, France, Italy, Spain and the Benelux region.

     1.24 "NDA" shall mean a New Drug Application or Product License Application
or equivalent filing filed for Product with the FDA.

     1.25 "NET SALES" shall mean the gross amount invoiced (not dependent on
whether such invoices have been actually paid) on sales of Product by TMC and
its Affiliates and Distributors to third parties, less the following items, as
determined from the books and records of TMC or its Affiliates or Distributors,
provided that such items do not exceed reasonable and customary amounts in the
country in which such sale or other disposition occurred: (i) freight, insurance
and other transportation charges, if billed separately; (ii) amounts repaid or
credited by reason of returns, rejections, defects, recalls or because of
retroactive price reductions; (iii) sales taxes, excise taxes, value-added taxes
and other taxes (other than income taxes) levied on the invoiced amount, (iv)
import and export duties; (v) cash, trade and quantity discounts actually given
or made; and (vi) rebates paid pursuant to government regulations. A sale of
Product by TMC to an Affiliate or Distributor for resale of the Product by such
Affiliate or Distributor shall not be considered a sale for the purpose of this
provision, but the resale of such Product by the Affiliate

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or Distributor to a third party who is not an Affiliate or Distributor of TMC
shall be a sale for purposes of this Agreement.

     For purposes of this Agreement, "sale" shall mean any transfer or other
distribution or disposition, but shall not include transfers or other
distributions or dispositions of Product, at no charge, for pre-clinical,
clinical or regulatory purposes or to physicians or hospitals for promotional
purposes, provided such transfer, distribution or disposition is not made in
exchange for lower prices on other TMC products or for other noncash
consideration. In the event that consideration in addition to or in lieu of
money is received for the sale of Product in an arms-length transaction, the
fair market value of such consideration shall be included in the determination
of Net Sales for such sale. To the extent that Product is sold in other than an
arms-length transaction, Net Sales for such sale shall be the average sales
price of Product if sold in an arms-length transaction during the applicable
royalty reporting period in the country in which the non-arms-length transaction
occurred.

     In the event that Product is sold in the form of a combination Product
containing one or more active ingredients or components in addition to Product,
Net Sales for the combination Product shall be determined by multiplying actual
Net Sales of the combination Product (determined by reference to the definition
of Net Sales set forth above) during the royalty payment period by the fraction
A/A+B where A is the average sale price of Product when sold separately in
finished form and B is the average sale price of the other active ingredients or
components when sold separately in finished form in each case during the
applicable royalty reporting period in the country in which the sale of the
combination Product was made, or if sales of both the Product and the other
active ingredients or components did not occur in such period, then in the most
recent royalty reporting period in which sales of both occurred. In the

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          Confidential Materials omitted and filed separately with the
        Securities and Exchange Commission. Asterisks denote omissions.

event that such average sale price cannot be determined for both Product and all
other active ingredients or components included in the combination Product, Net
Sales for purposes of determining payments under this Agreement shall be
calculated by multiplying the Net Sales of the combination Product by the
fraction C/C+D where C is the standard fully-absorbed cost of the Product
portion of the combination and D is the sum of the standard fully-absorbed costs
of all other active components or ingredients included in the combination
Product, in each case, as determined by TMC using its standard accounting
procedures consistently applied. In no event shall Net Sales of a combination
Product be reduced to less than [**] of actual Net Sales of such combination
Product (determined by reference to the definition of Net Sales set forth above)
by reason of any adjustment provision set forth in this paragraph.

     1.26 "NEW NON-CARDIOLOGY INDICATIONS" shall mean those indications that are
neither Existing Non-Cardiology Indications nor Cardiology Indications.

     1.27 "PEPTID" shall mean one or more of the hirudin-based peptide analogs
described in APPENDIX B to this Agreement.

     1.28 "PRODUCT" shall mean the finished form of a product that comprises,
contains or is Peptide and which or the manufacture, use or sale of which (i) is
covered by a Valid Claim of any Biogen Patent Rights in the country where such
Product is manufactured, used or sold and/or (ii) embodies any of the Biogen
Technology.

     1.29 "PTCA" shall mean percutaneous transluminal coronary angioplasty.

     1.30 "SEMILOG PROCESS" shall mean the joint biological /synthetic process
for producing Peptide.

     1.31 "SUBLICENSEE" shall mean any third party expressly licensed by TMC to
make, use and sell Product, but not including any Affiliate or Distributor of
TMC.

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     1.32 "TECHNOLOGY" shall mean all information, data, concepts, formulas,
methods, procedures, designs, compositions, plans, applications, specifications,
techniques, processes, technical data, know-how, samples, biological materials,
inventions, discoveries and the like which a party owns (in whole or in part) or
Controls.

     1.33 "TECHNOLOGY TRANSFER" shall mean the transfer of Biogen Technology to
TMC, in accordance with Section 3.

     1.34 "TECHNOLOGY TRANSFER PLAN" shall have the meaning set forth in
Section 3.1

     1.35 "TERRITORY" shall mean all countries of the world.

     1.36 "TMC PATENT RIGHTS" shall mean all patents and patent applications
throughout the Territory, covering or relating to TMC Technology, including any
substitutions, extensions, reissues, reexaminations, renewals, continuations,
continuations-in-part, divisionals and supplemental protection certificates,
which TMC owns or Controls at any time.

     1.37 "TMC TECHNOLOGY" shall mean all Technology which TMC owns or Controls
as of the date of termination of this Agreement and which is reasonably useful
in order to discover, research, develop, make, use, sell or seek approval to
market Product.

     1.38 "UCB INFORMATION" shall mean information related to the manufacturing
of Peptide contained in the Chemistry, Manufacturing and Control (CMC) sections
of Biogen's existing INDs for Peptide, and stability data generated by UCB on
Peptide.

     1.39 "VALID CLAIM" shall mean (i) a claim of a pending patent application
which claim shall not have been canceled, withdrawn, abandoned or rejected by an
administrative agency from which no appeal can be taken or which shall not have
failed to issue as a patent within seven (7) years of the earliest claimed
priority date or (ii) a claim of an issued and unexpired patent which has not
lapsed or become abandoned or been declared invalid or unenforceable by a

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court of competent jurisdiction or an administrative agency from which no appeal
can be or is taken.

     SECTION 2 - GRANT AND ASSIGNMENTS.

     2.1  LICENSE GRANT. Biogen hereby grants to TMC, and TMC hereby accepts
from Biogen, a royalty-bearing right and license under Biogen Technology and
Biogen Patent Rights to make, have made, import, use, offer to sell and sell
Product in the Territory in the Field. The license granted to TMC under this
Section 2.1 shall be exclusive subject only to the rights granted to CSL under
the CSL Agreement and any rights retained by HRI under the HRI Agreement.

     2.2  SUBLICENSE RIGHTS.

          (a)  TMC shall be entitled to extend the license granted to it under
Section 2.1 to any of its Affiliates and to grant sublicenses to its rights for
all indications in each country of the Territory other than the United States
and the countries of the European Union, provided that TMC shall obtain Biogen's
consent prior to granting any sublicense in Canada or Japan which such consent
Biogen agrees not to unreasonably withhold. TMC shall also be entitled to grant
sublicenses to the rights granted to it under Section 2.1 in the United States
and the countries of the European Union for New Non-Cardiology Indications,
provided that TMC shall obtain Biogen's consent prior to granting any such
sublicense which such consent Biogen agrees not to unreasonably withhold. All
Affiliates and Sublicensees, to whom TMC has extended or sublicensed its rights
under Section 2.1 shall agree to be bound by all of the applicable terms and
conditions of this Agreement. TMC shall advise Biogen of any extension of TMC's
rights to its Affiliates and shall provide copies to Biogen of each sublicense
promptly after such extension or sublicense becomes effective. TMC shall not
have the right to grant sublicenses to its rights

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under Section 2.1 in the United States or any of the countries of the European
Union with respect to Cardiology Indications or Existing Non-Cardiology
Indications.

          (b)  TMC shall use commercially reasonable efforts to ensure that its
Affiliates and Sublicensees to whom TMC has extended or sublicensed its rights
under Section 2.1 shall comply with all applicable terms of this Agreement and
shall make all payments of compensation due and make all reports due under this
Agreement by reason of sales of Product by such Affiliates and/or Sublicensees.

          (c)  TMC shall use commercially reasonable efforts to ensure that all
Sublicensees to whom TMC grants rights to make, use and sell Product in New
Non-Cardiology Indications in the United States and the countries of the
European Union market Product solely for use in New Non-Cardiology Indications.

     2.3  ASSIGNMENT OF AGREEMENTS. Concurrently with execution of this
Agreement, the parties shall execute (i) an Assignment of License in the form
set forth in APPENDIX C hereto under which Biogen assigns to TMC, and TMC
accepts assignment of, all of Biogen's rights and obligations under the HRI
Agreement, and (ii) an Assignment of License and Supply Agreement in the form
set forth as APPENDIX D hereto under which Biogen assigns to TMC, and TMC
accepts assignment of, all of Biogen's rights and obligations under the CSL
Agreement.

     SECTION 3 - TECHNOLOGY TRANSFER AND SUPPLY OF MATERIAL

     3.1  TECHNOLOGY TRANSFER PLAN. As soon as reasonably practical after the
Effective Date, the parties shall meet to agree on a plan for Technology
Transfer (the "Technology Transfer Plan"). The Technology Transfer Plan shall
specify the Technology Transfer activities to be performed and the amount of
time to be devoted to such activities. The parties shall review and update the
Technology Transfer Plan, on a monthly basis, until the earlier to occur of (i)
completion of Technology Transfer or (ii) the end of the Technology Transfer
period, as set forth

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in Section 3.2. Biogen shall not be required to devote time or perform
activities in connection with Technology Transfer beyond the time and activities
shown on the Technology Transfer Plan unless both parties agree on an update to
the Technology Transfer Plan.

     3.2  LIMITATION ON TECHNOLOGY TRANSFER. Notwithstanding anything in this
Agreement to the contrary, Biogen shall not be obligated to devote more than the
equivalent of 2.8 FTEs, in the aggregate, to Technology Transfer or, in the
event that Biogen has devoted an equivalent of 2.8 FTEs to Technology Transfer,
to perform Technology Transfer after the date which is four (4) months from the
Effective Date. The parties shall use their best efforts to complete Technology
Transfer within four (4) months from the Effective Date. If Biogen has devoted
an equivalent of 2.8 FTEs to Technology Transfer and Technology Transfer has not
been completed by the end of such four (4) month period, the parties may extend
the Technology Transfer period by mutual agreement.

     3.3  COSTS OF TECHNOLOGY TRANSFER. TMC shall pay Biogen's fully-burdened
costs associated with Technology Transfer, provided that the activities and the
time spent performing the activities for which the costs are to be paid are
reflected in the Technology Transfer Plan, as updated from time to time, or TMC
has specifically requested the additional time or activities. Biogen shall bill
TMC for Biogen's fully-burdened costs related to Technology Transfer on a
monthly basis. TMC shall pay all Biogen invoices within thirty (30) days of
receipt.

     3.4  ASSIGNMENT OF REGULATORY FILINGS AND OTHER PRODUCT-RELATED
INFORMATION.

     Biogen hereby assigns to TMC all of Biogen's right, title and interest in
(a) its existing INDs and equivalent regulatory filings in the Territory related
to Product and (b) subject to Section 5, any and all regulatory and clinical
information related to Product that Biogen owns or Controls as of the Effective
Date. Biogen and TMC shall jointly manage the transition of

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Biogen's INDs or equivalent regulatory filings to TMC under this Section in such
a way as not to harm the existing relationship of either party with the relevant
regulatory authorities. Biogen may elect, or TMC may request, to have one or
more of Biogen's employees participate in meetings between TMC and regulatory
authorities regarding assignment of Biogen's INDs or equivalent regulatory
filings to TMC, PROVIDED that Biogen's right to elect to participate in any such
meeting shall terminate on December 31, 1997. TMC shall pay all of Biogen's
costs associated with the assignment of INDs or equivalent regulatory filings to
TMC, including the costs incurred by Biogen in sending Biogen representatives to
meetings with regulatory authorities at the request of TMC.

     3.5  SUPPLY OF MATERIAL.

          (a)  As soon as reasonably practical after the Effective Date but in
any event within ninety (90) days after the Effective Date, Biogen shall deliver
to TMC Biogen's existing inventory of Peptide as described in APPENDIX F (the
"Biogen Inventory"). In addition, Biogen shall, at TMC's request, provided such
request is made prior to September 18, 1997 (the "Completion Option Period"),
initiate completion of processing by UCB Bioproducts S.A. (collectively "UCB")
of approximately 30kg of Peptide intermediates (expressed in equivalent bulk
drug substance quantities) stored at UCB as of the Effective Date under the
terms of a Supply Agreement between Biogen and UCB, dated as of March 21,1997
(the "Supply Agreement") (a copy of which has been provided to TMC, and shall
deliver to TMC the resulting material (the "UCB Material"). TMC understands and
agrees that "processing", as the term is used in this Section, of the 30kg of
Peptide intermediates by UCB shall mean completion of the manufacturing of such
portion of the 30kg of Peptide intermediates as UCB, in consultation with Biogen
and TMC, determines is viable for further production (the "Unfinished Peptide")
using

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the manufacturing process specified in Biogen's most recent IND for Peptide on
file with the FDA as of the Effective Date. In the event that UCB reports to
Biogen that any portion of the 30kg of Peptide intermediates is not viable,
Biogen shall use reasonable efforts to confirm UCB's determination. "Processing"
shall also include delivery by UCB with each batch of Peptide of a release
certificate and access for Biogen and/or TMC to review the relevant batch
records. "Processing" shall specifically not include (i) any analytical
process-related or other validation work, (ii) qualification of plant, equipment
or utilities, (iii) work towards a supplemental IND, NDA or any other regulatory
filing, (iv) any other work requested by regulatory authorities in connection
with a regulatory filing, (v) any work associated with filing or inspection of
the documentation or facilities by TMC or the regulatory authorities, or (vi)
any supporting activities including further development work (process-related
and analytical-related), stability standard or reference standard establishment
or requalification (collectively "Ancillary Services"). At or prior to
initiation of the completion of processing of the Unfinished Peptide under the
terms of this Agreement, TMC shall meet with UCB to negotiate the terms, if any,
under which UCB would be willing to provide, and TMC would be willing to accept,
Ancillary Services in connection with the Peptide manufactured by UCB. Biogen
represents that UCB is obligated to complete processing of the Unfinished
Peptide if the request is made during the Completion Option Period whether or
not TMC accepts Ancillary Services from UCB at the end of the negotiation
described in the preceding sentence. Upon delivery to Biogen by TMC during the
Completion Option Period of a request to have UCB complete processing of the
Unfinished Peptide, TMC, UCB and Biogen shall meet to agree upon a delivery
schedule for the resulting Peptide. Biogen represents that UCB has agreed to
deliver the Peptide resulting from processing of the Unfinished Peptide within
at least eighteen (18) months of receipt of the processing

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          Confidential Materials omitted and filed separately with the
        Securities and Exchange Commission. Asterisks denote omissions.

request. Biogen shall use commercially reasonable efforts to enforce the Supply
Agreement after consultation with TMC.

          (b)  As part of Technology Transfer, Biogen shall provide to TMC
copies of quality control release test results existing as of the Effective Date
related to the Biogen inventory. Biogen shall perform additional HPLC tests on
the Biogen Inventory only at TMC's request and expense in accordance with the
Technology Transfer Plan.

          (c)  Biogen represents that Peptide delivered to TMC as part of the
Biogen Inventory was stored under the conditions set forth in APPENDIX F.

          (d)  TMC shall reimburse Biogen for the amount due to UCB for delivery
of the UCB Material, up to BEF [**]. TMC shall also reimburse Biogen for
any storage costs for the Biogen Inventory and the UCB Material incurred by
Biogen after the Effective Date. In addition, TMC shall reimburse Biogen for all
freight, storage, duties, taxes and insurance costs incurred in connection with
delivery of the Biogen Inventory and the UCB Material to TMC, including but not
limited to those costs incurred in shipping the Biogen Inventory to and from
Europe and storing the Biogen Inventory in Europe. All payments to be made by
TMC to Biogen under this paragraph shall be made within thirty (30) days of
receipt of each invoice therefor from Biogen.

     SECTION 4 - DUE DILIGENCE.

     4.1  INVESTMENT. TMC shall use commercially reasonable efforts to expend at
least $20 million (not including amounts spent on or as part of the AMI Trial)
in connection with pre-launch and post-launch commercialization activities
related to Product for the PTCA and AMI indications within [**] years of the
later of the date of approval of a NDA for Product in the PTCA indication and
the date of approval of a NDA for Product in the AMI indication.
Commercialization activities may include Commercial Development Activities.

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          Confidential Materials omitted and filed separately with the
        Securities and Exchange Commission. Asterisks denote omissions.

     4.2  DILIGENCE. TMC shall use commercially reasonable efforts (defined, for
purposes of this Agreement, as those efforts consistent with the efforts that
would be exerted by a mid-size biopharmaceutical company in the development and
sale of its own products) to develop and commercialize Product in each of the
Major Markets. TMC shall develop Product for use in the treatment of PTCA and
AMI. Without limiting the generality of the foregoing, TMC shall use
commercially reasonable efforts to meet the following diligence milestones:

          (a)  Commence a phase III clinical trial of Product in the AMI
               indication (the "AMI Trial") by December 31,1998.

          (b)  File an NDA for Product in the PTCA indication by December 31,
               1998.

          (c)  File an NDA for Product in AMI indication by [**].

          (d)  File an MAA for Product in AMI indication by [**].

          (e)  Commence marketing and sales of Product in the United States in
               each indication (i) within six (6) months of receipt of a license
               from the FDA to market and sell Product in such indication, if no
               approvable letter is issued with respect to such indication or
               (ii) within four (4) months of receipt of the applicable FDA
               license, if an approvable letter is issued with respect to such
               indication.

     4.3  AMI TRIAL. TMC shall use a lead investigator for the AMI Trial who is
a nationally recognized expert in cardiology. TMC shall provide to Biogen a
draft of the protocol for the ANH Trial, and Biogen shall have the right to
review and comment on such protocol. The parties acknowledge and agree that the
phase III study design for the AMI Trial will be a mortality trial substantially
based on Biogen's phase II results with Peptide and streptokinase. TMC shall be
the sponsor of the AMI Trial for purposes of 21 C.F.R. section 312 et. seq. TMC

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shall review the protocol for the AMI Trial with the FDA, and shall use
reasonable efforts to obtain the FDA's advice that the protocol is reasonable
for obtaining marketing approval of Product in the AMI indication.

     4.4  CONSEQUENCES OF FAILURE TO SATISFY DILIGENCE OBLIGATION

          (a)  If at any time Biogen believes that TMC has not satisfied its
diligence obligations under Section 4.1 and 4.2, then Biogen shall so notify
TMC. Within fifteen (15) days of the date of such notice, the parties shall meet
to discuss TMC's performance. If TMC is able to demonstrate to Biogen's
satisfaction that TMC used commercially reasonable efforts to meet its diligence
obligations, the parties shall negotiate in good faith to set new milestones
which are reasonable in light of any difficulties or any unforeseen events which
TMC may have encountered. If TMC is unable to demonstrate to Biogen's
satisfaction that TMC used commercially reasonable efforts to meet its diligence
obligations and if TMC does not agree with Biogen's assessment, the parties
shall enter into binding arbitration, under the terms of Section 14.7, within
ten (10) days of the meeting between the parties held under this Section,
PROVIDED, that the arbitrators selected by the parties pursuant to Section 14.7
to arbitrate any issue that arises under this Section 4.4(a) shall each be an
expert in the field of drug development in the United States.

          (b)  In the event that TMC agrees with Biogen's determination that TMC
failed to satisfy its diligence obligations under Section 4.1 or 4.2 or an
arbitration panel convened under paragraph (a) of this Section 4.4 determines
that TMC failed to satisfy its diligence obligations under Section 4.1 or 4.2,
Biogen shall have the right and option to terminate this Agreement for material
breach by TMC under Section 10.2.

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     4.5  JAPAN DILIGENCE. In the event that TMC informs Biogen in writing that
it does not intend to develop, register, manufacture, market or sell, or
sublicense a third party to develop, register, manufacture or sell, Product in
Japan, and TMC's reasons for choosing not to enter Japan are not related to
potential parallel import or pricing issues or regulatory or patent obstacles
outside of TMC's control, Biogen shall have the right and option to (i)
terminate the license set forth in Section 2.1 as to Japan only on sixty (60)
days prior written notice to TMC and (ii) to exercise its rights under Section
10.5.

     4.6  TRANSDERMAL PRODUCT. No later than December 31, 1998, TMC shall submit
to Biogen a development plan for the transdermal application of Product (the
"Transdermal Plan"). The Transdermal Plan shall include commercially reasonable
milestones for development and commercialization of a transdermal Product. In
the event TMC does not use commercially reasonable efforts to meet the
milestones set forth in the Transdermal Plan, Biogen shall have the right to
terminate this Agreement as to the transdermal application of Product.

     4.7  STATUS REPORTS. Within forty-five (45) days of the end of each
calendar quarter, TMC shall provide to Biogen a written report describing in
reasonable detail the status of development and commercialization activities
related to Product, including the nature of the development and
commercialization activities undertaken by TMC and its Sublicensees and
Distributors, if any, during the preceding quarter, the results obtained and the
goals and plans for the next quarter. After Product launch, the status report
provided to Biogen under this Section shall include rolling four-quarter sales
forecasts for Product. TMC shall furnish to Biogen copies of final study reports
from clinical trials related to Product as soon as such reports are available.
At Biogen's request from time to time, TMC shall provide to Biogen verbal
updates on the status of development and commercialization efforts.

                                      -17-

<PAGE>   18

     SECTION 5 - CONFIDENTIALITY

     5.1  TREATMENT OF CONFIDENTIAL INFORMATION. Each party agrees that it shall
maintain the Confidential Information of the other party in strict confidence
and shall not disclose any such Confidential Information to a third party or use
such Confidential Information for any purpose other than as contemplated under
this Agreement. Each party agrees to exercise reasonable precautions to prevent
and restrain the unauthorized disclosure or use of the Confidential Information
of the other party by any of the receiving party's directors, officers, agents
or employees. TMC acknowledges and agrees that all regulatory and clinical
information assigned to TMC under Section 3.4 (b) shall, except as provided in
Section 5.2, continue to be Confidential Information of Biogen for purposes of
this Section 5.

     5.2  EXCEPTIONS.

          The provisions of Section 5.1 shall not apply to Confidential
Information which:

          (i)  was known to the receiving party prior to its disclosure by the
disclosing party;

          (ii) either before or after the date of disclosure to the receiving
party becomes generally known to the public by some means other than a breach of
this Agreement;

          (iii) is subsequently disclosed to the receiving party by a third
party having a lawful right to make such disclosure and who is not under an
obligation of confidentiality to the disclosing party;

          (iv) is independently developed by or for the receiving party without
reference to or reliance upon the Confidential Information received from the
disclosing party;

          (v)  is required by law, rule, regulation or bona fide legal process
to be disclosed, provided that the receiving party takes all reasonable steps to
restrict and maintain the confidentiality of such disclosure and provides
reasonable notice to the disclosing party; or

                                      -18-

<PAGE>   19

          (vi) is approved for release by the parties.

          The non-disclosure and non-use obligations under Section 5.1 shall
terminate as to any Confidential Information twelve (12) years after receipt of
such Confidential Information by the receiving party.

     5.3  PERMITTED DISCLOSURES. Notwithstanding anything to the contrary
contained in Section 5.1, TMC may disclose the Confidential Information of
Biogen licensed to TMC under Section 2.1 or assigned to TMC under Section 3.4,
other than the UCB Information, to third parties who (i) need to know the same
in order for TMC to secure regulatory approval for the sale of Product or (ii)
need to know the same in order to work towards the commercial development of
Product or to manufacture Product or (iii) need to know the same in order to
determine whether to enter into a sublicense agreement with TMC with respect to
the manufacture, use and/or sale of Product PROVIDED that such parties, other
than regulatory authorities, are bound by obligations of confidentiality and
non-use at least as stringent as those set forth in this Section 5. In addition,
TMC may disclose Confidential Information of Biogen (other than UCB Information
or any other Confidential Information of Biogen as to which Biogen would be
required to obtain the consent of a third party with respect to further
disclosure) to potential investors who have a need to know the same in order to
assess the status of their investment in TMC or to determine whether to invest
in TMC, provided that (i) the information to be disclosed is of a type
customarily disclosed to investors and (ii) the investors to whom the
information is disclosed are bound by obligations of confidentiality and non-use
with respect to such information at least as stringent as those set forth in
this Section 5.

     5.4  UCB INFORMATION. Notwithstanding anything herein to the contrary, TMC
shall not use the UCB Information for any purpose other than supporting the
regulatory filings for

                                      -19-

<PAGE>   20
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

Peptide assigned to TMC by Biogen under Section 3.4 ("Existing Regulatory
Filings"), and shall not disclose the UCB Information to any third party other
than regulatory authorities. TMC shall return to UCB all documents containing
UCB Information in TMC's possession in the event that maintaining UCB
Information is no longer required for purposes of supporting the Existing
Regulatory Filings, and shall take all reasonable steps to return promptly to
UCB any UCB Information in the possession of the FDA which might be returned to
TMC (except as otherwise required by the FDA) and to inform the FDA that
communication of such UCB Information to any third party requires UCB's express
written consent.

     SECTION 6 - PAYMENT OBLIGATIONS.

     6.1  LICENSE FEE. In consideration of the rights granted by Biogen, TMC
shall pay to Biogen a nonrefundable, noncreditable license fee of $[**] on
the Effective Date.

     6.2  MILESTONE PAYMENTS. TMC shall make each of the following
nonrefundable, noncreditable payments to Biogen within thirty (30) days of the
first achievement of each of the following milestones:

              Event                                   Payment
              -----                                   -------

          (a) First Commercial Sale of Product        $[**]
              in the United States for treatment
              in AMI

          (b) First Commercial Sale of Product        $[**]
              in Europe for treatment in AMI

     6.3  ROYALTIES.

          (a)  TMC shall pay to Biogen earned royalties on Net Sales of Product
sold by TMC and/or its Affiliates and/or its Distributors at the following
rates:

                                      -20-

<PAGE>   21
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

       Annualized Net Sales                      Royalty Rate
       in a Calendar Year in Territory           On Net Sales of Product
       -------------------------------           -----------------------

       Less than or equal to $[**]               [**]

       Greater than $[**] but less               [**]
       than or equal to $[**]
       Greater than $[**] but less               [**]
       than or equal to $[**]
       Greater than $[**] but less               [**]
       than or equal to $[**]
       Greater than $[**]                        [**]

          (b)  Notwithstanding anything in this Agreement to the contrary, sales
by Sublicensees shall be included as TMC sales solely for purposes of
determining the royalty rate applicable to sales by TMC and/or its Affiliates
and/or its Distributors.

          (c)  The applicable royalty rate for a given calendar year shall be
based on the rate determined by reference to total Net Sales during the year,
and shall be applied retroactively to the first dollar of such Net Sales in such
calendar year. Adjustment payments shall be made as necessary in accordance with
Section 6.7.

          (d)  The obligation to pay royalties and a percentage of Sublicense
Royalty Income (as defined in Section 6.5) shall continue, on a
country-by-country basis, from the date of the First Commercial Sale of Product
in a country until the later of (i) [**] years after the date of the
First Commercial Sale of such Product in such country or (ii) the date on which
the Product or its manufacture, use or sale is no longer covered by a Valid
Claim of any Biogen Patent Rights in such country.

                                      -21-

<PAGE>   22
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

     6.4  ROYALTY OFFSET.

          (a)  Subject to paragraph (d) of this Section 6.4, the royalty rates
set forth in Section 6.3 shall be reduced, on a country-by-country basis, by
[**]with respect to Net Sales of any Product in any calendar year if (i) neither
such Product nor its use or sale is covered during any part of such year by a
Valid Claim of a Biogen Patent Right in such country and (ii) third parties
selling Comparable Products, as defined below, have, in the aggregate, during
such year [**] or more of the volume-based market share in such country. For
purposes of this Section, "Comparable Product" shall mean a product which, if
sold on the Effective Date by a third party in the United States without a
license from Biogen, would infringe a Valid Claim of Biogen Patent Rights
related to Product existing as of the Effective Date.

          (b)  Subject to paragraph (c) and (d) of this Section 6.4, in the
event that TMC, in order to manufacture, use or sell Product in a country in the
Territory, reasonably determines that it must make a royalty payment to one or
more third parties (a "TMC Third Party Payment") to obtain a license or similar
right to manufacture, use or sell Product in such country, TMC may reduce the
royalty payment due Biogen under Section 6.3 on sales of Product, on a
country-by-country basis, by the amount of such TMC Third Party Payments paid on
such sales up to a [**] reduction in the applicable royalty rate set forth in
Section 6.3. The offset available under this paragraph (b) shall not apply to
royalty payments made or due under the HRI Agreement.

          (c)  Subject to paragraph (d) of this Section 6.4, with respect to any
sales as to which TMC is paying royalties at the [**] royalty rates under
Section 6.3, TMC may, in addition to other offsets available under paragraphs
(a) and (b) above, reduce the royalty payment due Biogen under Section 6.3 by
the amount of any payments made by TMC to HRI

                                      -22-

<PAGE>   23
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

under the HRI Agreement on such sales, but not more than the amounts that would
be payable to HRI at the rates in effect under the HRI Agreement on the
Effective Date.

          (d)  Until the later of (i) the date of receipt of marketing approval
for Product from the FDA for the AMI indication or (ii) the [**] anniversary of
the date of the First Commercial Sale of Product in any country in the PTCA
indication, TMC may offset against the royalty payment due to Biogen (A) any
costs incurred by TMC after the First Commercial Sale of Product for PTCA in
development or commercialization of Product for the AMI indication, provided
that the costs are incurred as part of [**] approved by Biogen, which approval
shall not be unreasonably withheld, and (B) any costs incurred by TMC in
connection with [**] which agreement shall not be unreasonably withheld, and
provided further that in no event (1) shall the amount offset under this
paragraph exceed [**] in the aggregate or (2) shall the amount of royalties
actually paid to Biogen under Section 6.3 for any royalty payment period be less
than [**] of Net Sales. Notwithstanding anything in this Agreement to the
contrary, TMC shall not be entitled to any offset under this paragraph (d) in
any calendar year in which Net Sales calculated in the manner set forth in
Section 6.3 are greater than [**]. TMC shall offset its costs under this
paragraph against royalties due for the calendar year in which the costs are
incurred and shall not carry over such costs to offset royalties for any other
calendar year. Notwithstanding anything herein to the contrary, TMC shall not be
entitled to apply the offsets available under any other paragraph of this
Section 6.4 (and shall not carry-over any such offsets) in any period in which
TMC is applying its offset for development costs as set forth in this paragraph
(d).

                                      -23-

<PAGE>   24
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

     6.5  SUBLICENSE ROYALTY INCOME. TMC shall pay to Biogen [**] of all royalty
income ("Sublicense Royalty Income") received by TMC from its Sublicensees with
respect to sales of Products.

     6.6  OFF-LABEL SALES BY SUBLICENSEES. In the event that Biogen can
reasonably demonstrate a loss in earned royalties from TMC as a result of
off-label sales by any of TMC's Sublicensees, TMC shall reimburse Biogen for
Biogen's loss of earned royalties up to the amount actually received by TMC from
such Sublicensee for such off-label sales.

     6.7  QUARTERLY PAYMENTS AND EFFORTS. Royalty payments and payments on
Sublicense Royalty Income shall be made quarterly (i) within ninety (90) days
following the end of the first calendar quarter of Product sales with respect to
Sublicense Royalty Income received and Net Sales on sales made during such
quarter, (ii) within sixty (60) days following the end of each of the second,
third and fourth calendar quarters of Product sales with respect to Sublicense
Royalty Income received and Net Sales on sales made during such quarter, and
(iii) within forty-five (45) days following the end of each calendar quarter
thereafter with respect to Sublicense Royalty Income received and Net Sales on
sales made during such quarter. Every payment shall be accompanied by a report
setting forth for the relevant quarter the following information:

          (a)  Net Sales by TMC and its Affiliates and Distributors, by country;

          (b)  Sales by Sublicensees by country (for purposes of calculating the
royalty rate);

          (c)  Quantity of Product sold, by country, by TMC, its Affiliates,
Distributors and Sublicensees;

          (d)  Sublicense Royalty Income received by TMC; and

                                      -24-

<PAGE>   25

          (e)  Total amount payable to Biogen.

          Since Net Sales in each calendar year to be used to finally determine
the applicable royalty rate for such year will not be known until the end of
such year, in order to make the quarterly payments specified under this Section
6.7, TMC shall use a royalty rate which is determined by annualizing the
year-to-date Net Sales. As changes in the royalty rate determined using
annualized Net Sales occur from one calendar quarter to the next calendar
quarter within the same calendar year, in addition to the payment for the
calendar quarter, TMC shall make the necessary adjustment in such calendar
quarter reflecting the change in the royalty rate applied to Net Sales in the
preceding calendar quarter or quarters. Within thirty (30) days of the end of
each calendar year, TMC shall calculate the actual royalty rate to which Biogen
is entitled based on the actual Net Sales for the year. In the event Biogen has
not received its full royalty amount for the year, TMC shall promptly make a
balancing payment to Biogen in the amount of the deficit. In the event TMC has
paid Biogen more than its full royalty amount for the year, Biogen shall
promptly reimburse TMC in the amount of the excess.

          6.8  FORM OF PAYMENT. All payments to be made under this Agreement
shall be made in United States dollars by check or wire transfer, at Biogen's
option.

          6.9  FOREIGN EXCHANGE. For purposes of computing Net Sales for Product
sold in currency other than United States Dollars, such currency shall be
converted into United States Dollars using the spot purchase rate published in
the Wall Street journal (New York Edition) for the last day of the calendar
quarter for which Net Sales are being calculated.

          6.10 TAXES. Any taxes required to be withheld by TMC under the laws of
any foreign country for the account of Biogen shall be promptly paid by TMC for
and on behalf of Biogen to the appropriate governmental authority, and TMC shall
furnish Biogen with proof of payment of

                                      -25-

<PAGE>   26

such tax within thirty (30) days following payment. Any such tax actually paid
on Biogen's behalf shall be deducted from royalty payments due Biogen. TMC
agrees to make all lawful and reasonable efforts to minimize such taxes to
Biogen.

          6.11 INTEREST ON PAYMENTS PAST DUE. Any amounts due under this
Agreement that are not paid when due shall bear interest at the lesser of (i) an
annualized rate of two percent over the prime rate then in effect at BankBoston,
or (ii) the highest rate permitted by applicable law.

          6.12 BOOKS AND RECORDS. For a period of three (3) years next following
each calendar year, TMC shall keep, and shall use commercially reasonable
efforts (which shall include obtaining and enforcing a contractual commitment)
to cause each of its Affiliates, Distributors and Sublicensees to keep, full,
true and accurate books and records containing all particulars relevant to its
sales of Products during such year in sufficient detail to enable Biogen to
verify the amounts payable to Biogen under this Agreement. Biogen shall have the
right, not more than once during any calendar year, to have the books and
records of TMC or any of its Distributors or Sublicensees related to the sales
of Products audited by a qualified nationally-recognized, independent accounting
firm of Biogen's choosing, during normal business hours upon reasonable notice,
for the sole purpose of verifying the accuracy of the amounts paid to Biogen
under this Agreement, PROVIDED, HOWEVER, that Sublicensees or Distributors who
refuse to submit to an audit on behalf of Biogen despite TMC's commercially
reasonable efforts (which shall include enforcing a contractual commitment) to
obtain their consent to such audit shall not be bound by the audit obligation
set forth in this sentence. In the event that an audit shows that TMC has
underpaid Biogen by five percent (5%) or more, then TMC shall pay for all costs
of such audit, otherwise the costs of such audit shall be borne by Biogen. In
all cases, TMC shall pay to Biogen any underpaid compensation promptly and with
interest at an annualized rate of

                                      -26-

<PAGE>   27

the prime rate then in effect at BankBoston, plus two percent (2%), and Biogen
shall promptly pay to TMC any overpaid compensation. All information and data
reviewed in any audit conducted under this Section shall be used only for the
purpose of verifying amounts due to Biogen under this Agreement and shall be
treated as Confidential Information of TMC subject to the terms of this
Agreement.

     SECTION 7 - PATENTS.

     7.1  PROSECUTION AND MAINTENANCE. During the term of this Agreement, TMC
shall have responsibility for prosecuting, maintaining and defending the Biogen
Patent Rights, and in doing so shall use a level of effort and professional
representation consistent with the level of effort and professional
representation a mid-size biotechnology company would use to prosecute, maintain
and defend its own patent rights. Notwithstanding anything herein to the
contrary, TMC shall obtain Biogen's written consent prior to (i) instituting any
reissue or reexamination proceedings with respect to any Biogen Patent Rights
that are issued patents as of the Effective Date, or (ii) making any strategic
decision in any opposition, nullity, reissue or reexamination proceedings
involving any Biogen Patent Rights that are issued patents as of the Effective
Date, which Biogen consent shall not be unreasonably withheld. TMC shall bear
all of the costs of prosecution, maintenance and defense of the Biogen Patent
Rights incurred after the Effective Date. TMC shall keep Biogen regularly
informed of the status of the Biogen Patent Rights. TMC shall provide copies to
Biogen of all filings and correspondence with the patent offices, administrative
boards or courts which TMC sends or receives in connection with prosecution,
maintenance and defense of the Biogen Patent Rights. As soon as practical after
the Effective Date, Biogen shall provide to TMC a copy of Biogen's existing
files on the Biogen Patent Rights. Biogen undertakes to promptly and fully
cooperate in, and to provide all information and data and sign any documents
reasonably necessary and requested by TMC for the prosecution,

                                      -27-

<PAGE>   28

maintenance and defense of the Biogen Patents Rights. If TMC decides to abandon
or to allow to lapse any Biogen Patent Right, TMC shall inform Biogen at least
ninety (90) days prior to the effective date of such decision and Biogen shall
be given the opportunity to prosecute such Biogen Patent Right which such Biogen
Patent Right shall no longer be subject to this Agreement. Upon termination of
TMC's responsibility for prosecuting and maintaining any Biogen Patent Rights,
TMC shall promptly deliver to Biogen all files related to the Biogen Patent
Rights, and shall take all action and execute all documents reasonably necessary
for Biogen to resume prosection.

     7.2  INFRINGEMENT.

          (a)  TMC and Biogen shall each promptly inform the other in writing of
any infringement of the Biogen Patent Rights of which such party has notice and
provide the other with any available evidence of infringement.

          (b)  In the event TMC, alone or with an Affiliate or Sublicensee,
wishes to take action in a suit to enforce any Biogen Patent Rights against
infringement, TMC may take action and, at its option and expense, join Biogen as
a plaintiff. In determining whether to bring an action to enforce any Biogen
Patent Rights, TMC shall act in a commercially reasonable manner, giving due
consideration to the threat represented by the infringement and the potential
risk to the Biogen Patent Rights involved. If within six (6) months after having
been notified by Biogen of any alleged infringement or providing notice to
Biogen of an alleged infringement, TMC has been unsuccessful in persuading the
alleged infringer to desist and has not brought, and/or is not diligently
prosecuting an infringement action, or if TMC notifies Biogen at any time prior
thereto of its intention not to bring suit against any alleged infringer, Biogen
may take action and, at its option, join TMC as a plaintiff in any suit.

                                      -28-

<PAGE>   29

          (c)  The party which institutes any suit to protect or enforce a
Biogen Patent Right shall have sole control of that suit and shall bear the
reasonable expenses of the other party, not including legal fees incurred by the
other party, in providing any assistance and cooperation as is requested
pursuant to this Section. The party initiating or carrying on such legal
proceedings shall keep the other party informed of the progress of such
proceedings and such other party shall be entitled to counsel in such
proceedings but at its own expense.

          (d)  Any award paid by third parties (whether by way of settlement or
otherwise) as the result of any proceedings initiated by TMC under this Section
7 shall first be applied to reimbursement of the unreimbursed legal fees and
expenses incurred by either party and then the remainder shall be divided
between the parties as follows:

          (i) If the amount is based on lost profits, (x) TMC shall receive an
          amount equal to the damages the court determines it has suffered as a
          result of the infringement, less the amount of any royalties (and/or
          payments on Sublicense Royalty Income) that would have been due to
          Biogen on sales of Product lost by TMC and/or its Affiliates,
          Distributors and Sublicensees as a result of the infringement had they
          made such sales; and (y) Biogen shall receive an amount equal to the
          royalties (and/or payments on Sublicense Royalty Income) that it would
          have received if such sales had been made by TMC and/or its
          Affiliates, Distributors and Sublicensees; and

          (ii) As to awards other than those based on lost profits, 3/4 to TMC
          and 1/4 to Biogen.

          (e)  Any award paid by third parties (whether by way of settlement or
otherwise) as the result of any proceedings initiated by Biogen under this
Section 7 shall first be

                                      -29-

<PAGE>   30

applied to reimbursement of the unreimbursed legal fees and expenses incurred by
either party and then shall be divided between the parties, 1/4 to TMC and 3/4
to Biogen.

     7.3  COOPERATION. In any suit as either party may institute or control to
enforce the Biogen Patent Rights pursuant to this Agreement, the other party
agrees, at the request and expense of the party initiating or controlling the
suit, to cooperate in all respects, to have its employees testify when requested
and to make available relevant records, papers, information, samples, specimens,
and the like.

     7.4  THIRD PARTY CLAIM. In the event that a third party at any time
provides written notice of a claim to, or brings an action, suit or proceeding
against a party or such party's Affiliates, Distributors or Sublicensees,
claiming infringement of its patent rights or unauthorized use or
misappropriation of its Technology based upon an assertion or claim arising out
of the development, manufacture, use or sale of Products, such party shall
promptly notify the other party of the claim or the commencement of such action,
suit or proceeding, enclosing a copy of the claim and/or all papers served.

     SECTION 8 - REPRESENTATIONS, WARRANTIES AND COVENANTS.

     8.1  CORPORATE ACTION. Each party represents and warrants to the other
party that: (i) it is free to enter into this Agreement; (ii) in so doing, it
will not violate any other agreement to which it is a party; and (iii) it has
taken all corporate action necessary to authorize the execution and delivery of
this Agreement and the performance of its obligations under this Agreement.

     8.2  COMPLIANCE WITH LAW. Each party covenants and agrees that in
conducting activities contemplated under this Agreement, it shall comply with
all applicable laws and regulations.. Without limiting the generality of the
foregoing, TMC covenants and agrees that in conducting activities in connection
with the manufacture, use or sale of Product, TMC shall comply with all
applicable laws and regulations.

                                      -30-

<PAGE>   31

     8.3  RIGHT TO LICENSE. Biogen represents and warrants to TMC that Biogen is
the owner or licensee of the Biogen Technology and Biogen Patent Rights and has
the right and ability to grant the licenses granted under this Agreement. In
addition, Biogen covenants and agrees that it will not enter into any agreement
or other arrangement with any third party following the Effective Date that
would limit TMC's right and ability to exploit the rights granted by Biogen to
TMC under this Agreement.

     8.4  DISCLAIMERS. THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS
SECTION AND IN SECTION 3.5 ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND
WARRANTIES NOT EXPRESSLY SET FORTH HEREIN. WITHOUT LIMITING THE GENERALITY OF
THE FOREGOING STATEMENT, BIOGEN DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR
IMPLIED, WITH RESPECT TO BIOGEN TECHNOLOGY, BIOGEN PATENT RIGHTS, THE BIOGEN
INVENTORY AND THE UCB MATERIAL, INCLUDING, WITHOUT LIMITATION, ANY
REPRESENTATIONS OR WARRANTIES AS TO WHETHER PRODUCT CAN BE SUCCESSFULLY
DEVELOPED OR MARKETED, REGARDING THE ACCURACY, PERFORMANCE, UTILITY,
RELIABILITY, TECHNOLOGICAL OR COMMERCIAL VALUE, COMPREHENSIVENESS,
MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WHATSOEVER OF THE BIOGEN
TECHNOLOGY, BIOGEN PATENT RIGHTS, BIOGEN INVENTORY OR UCB MATERIAL OR AS TO THE
VALIDITY OF THE BIOGEN PATENT RIGHTS OR THAT THE MANUFACTURE, USE, MARKETING OR
SALE OF PRODUCTS BY TMC OR ANY OF ITS AFFILIATES, DISTRIBUTORS OR SUBLICENSEES
WILL NOT CONSTITUTE AN INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF ANY
THIRD PARTY. NEITHER BIOGEN

                                      -31-

<PAGE>   32

NOR TMC SHALL BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL
DAMAGES ARISING OUT OF THIS AGREEMENT WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER LEGAL THEORY.

     SECTION 9 - INDEMNIFICATION.

     9.1  INDEMNIFICATION BY TMC. TMC shall defend, indemnify and hold harmless
Biogen and its Affiliates and their respective employees, agents, officers,
shareholders and directors and each of them (the "Biogen Indemnified Parties")
from and against any and all liability, damage, loss, cost or expense of any
nature (including reasonable attorneys fees and expenses of litigation) incurred
or imposed upon the Biogen Indemnified Parties or any one of them in connection
with any claims, suits, actions, demands, proceedings, causes of action or
judgments resulting from or arising out of (i) the development, design, testing,
production, manufacture, sale, use or promotion of Product by TMC or any of its
Affiliates, Sublicensees, or Distributors or any of their respective agents or
employees; (ii) any other activities carried out by TMC or any of its
Affiliates, Sublicensees or Distributors or any of their respective agents or
employees, including any failure to comply in any material respect with
applicable laws or regulations, or (iii) breach by TMC of any term of this
Agreement, except to the extent any such claim results or arises from breach of
this Agreement by Biogen or the negligence or willful misconduct of Biogen or
any its Affiliates or any of their respective employees, agents, officers or
directors.

     9.2  INDEMNIFICATION BY BIOGEN. Biogen shall defend, indemnify and hold
harmless TMC and its Affiliates and their respective employees, agents,
officers, shareholders and directors and each of them (the "TMC Indemnified
Parties") from and against any and all liability, damage, loss, cost or expense
of any nature (including reasonable attorneys fees and expenses of litigation)
incurred or imposed upon the TMC Indemnified Parties or any one of

                                      -32-

<PAGE>   33

them in connection with any claims, suits, actions, demands, proceedings, causes
of action or judgments resulting from or arising out of the breach of this
Agreement by Biogen or the negligence or willful misconduct of Biogen or any its
Affiliates or any of their respective employees, agents, officers or directors.

     9.3  CONDITIONS TO INDEMNIFICATION. An indemnified party shall give prompt
notice to the indemnifying party (either TMC or Biogen, as the case may be) of
any claim for which the indemnified party may seek indemnification under Section
9.1 or 9.2 and, provided that the indemnifying party is not contesting the
indemnity obligation, shall permit the indemnifying party to control any
litigation relating to such claim and disposition of any such claim, provided
that the indemnifying party shall act reasonably and in good faith with respect
to all matters relating to the settlement or disposition of any claim as the
settlement or disposition relates to the indemnified party, and the indemnifying
party shall not settle or otherwise resolve any claim without prior notice to
the indemnified party. The indemnified party shall cooperate with the
indemnifying party in its defense of any claim for which indemnification is
sought under this Section.

     9.4  INSURANCE. At such time as Product is being marketed, TMC shall obtain
and shall thereafter maintain, at TMC's sole cost and expense, product liability
insurance for Product naming Biogen as an additional insured. The amount of the
insurance coverage obtained under this Section shall be at least $10 million,
combined single limit, for each single occurrence of bodily injury and/or
property damage and the like. TMC shall provide to Biogen copies of each
insurance policy obtained under this Section and all renewals of such policies.

     SECTION 10 - TERMINATION.

     10.1 TERM. Except as otherwise specifically provided herein and unless
sooner terminated pursuant to Sections 10.2 or 10.3, this Agreement and the
licenses and rights granted

                                      -33-

<PAGE>   34

hereunder shall remain in full force and effect until TMC's obligations to pay
compensation hereunder terminates in accordance with Sections 6.3 and 6.5. Upon
expiration of TMC's obligation to pay royalties and/or a percentage of
Sublicense Royalty Income under Sections 6.3 and 6.5 with respect to a specific
country as to which TMC's license is then in effect, the license shall be deemed
to be fully paid and TMC shall thereafter have a royalty-free right to use the
Biogen Patent Rights and Biogen Technology to make, have made, use, import,
offer to sell and sell Product in such country.

     10.2 TERMINATION FOR BREACH. In addition to any other available remedies,
either party shall have the right to terminate this Agreement in the event of a
material breach of this Agreement by the other party, provided that the breach
is not cured within ninety (90) days after written notice thereof is received
from the non-breaching party.

     10.3 TERMINATION FOR CONVENIENCE. TMC shall have the right to terminate
this Agreement for any reason upon ninety (90) days prior written notice to
Biogen.

     10.4 SURVIVAL OF RIGHTS AND OBLIGATIONS. Termination or expiration of the
Agreement for any reason shall be without prejudice to any rights which shall
have accrued to the benefit of either party prior to such termination or
expiration, including damages arising from any breach hereunder. In addition,
Sections 5, 6.12, 9, 10.6, 13, 14 and the last sentence of Section 7.1 shall
survive any such termination or expiration.

     10.5 CONSEQUENCE OF TERMINATION AS TO JAPAN. Upon termination under Section
4.5 of the rights and licenses granted to TMC in Japan but not the entire
Agreement, (i) TMC shall have no further right or license under this Agreement
in Japan, and (ii) TMC shall grant to Biogen and its Affiliates and sublicensees
a permanent and irrevocable right of access and reference to all regulatory
submissions, including regulatory approvals, applicable to Product in Japan, and
shall

                                      -34-

<PAGE>   35

notify the applicable regulatory authorities of such right no later than thirty
(30) days thereafter. If any right of access and reference granted under the
preceding sentence is not sufficient to permit Biogen or its sublicensees to
file an application for regulatory approval and receive regulatory approval for
the sale of Product in Japan, TMC shall within sixty (60) days of receipt of
notice from Biogen to that effect, provide Biogen with the complete data package
that TMC used in such regulatory submissions, or if none, in regulatory
submissions in United States in order to allow Biogen or its Affiliates or
sublicensees to conduct clinical trials or file for regulatory approval for the
sale of Product in Japan, provided that such data package shall be considered
Confidential Information of TMC and shall be subject to Section 5. At the time
of any termination of the license granted to TMC in Japan under Section 4.5, TMC
and Biogen shall negotiate in good faith a commercially reasonable royalty to be
paid to TMC for use of TMC-generated data and access to TMC's regulatory filings
related to Product.

     10.6 CONSEQUENCES OF TERMINATION OF AGREEMENT. If TMC terminates this
Agreement under Section 10.3 or if Biogen terminates this Agreement under
Section 10.2, TMC shall, at TMC's expense, return to Biogen all Biogen
Technology furnished to TMC by Biogen, including any unused Biogen Inventory and
UCB Material, and shall transfer to Biogen all TMC Technology generated in
connection with the Product development and commercialization program. In the
event Biogen terminates this Agreement under Section 10.2, TMC shall grant to
Biogen an exclusive, royalty-free license, with the right to grant sublicenses,
to all TMC Patent Rights and TMC Technology related to Product. If TMC
terminates this Agreement under Section 10.3, TMC shall grant to Biogen an
exclusive license, with the right to grant sublicenses, to TMC Technology and
TMC Patent Rights in consideration for which Biogen shall, as its sole
obligation to TMC, pay royalties to TMC on sales of Product (i) in indications
other than

                                      -35-

<PAGE>   36

Cardiology Indications if the manufacture, use or sale of the Product in such
indication is covered by a claim of a TMC Patent Right other than a claim to an
improvement to Peptide or the Semilog Process or (ii) in any indication if
marketing approval for Product in such indication was based on phase III
clinical data generated by TMC, at a royalty rate to be negotiated in good faith
by the parties at the time of termination based on the parties' relative levels
of investment in the Product and taking into consideration any damage or delay
to the development and commercialization of Product caused by TMC's termination
of this Agreement. Upon termination of this Agreement other than by TMC under
Section 10.2, TMC shall, at TMC's expense, grant to Biogen an irrevocable right
of reference or assign to Biogen, as requested by Biogen, TMC's rights in any
regulatory filings related to Product and shall assign to Biogen any trademarks,
together with all goodwill associated therewith, used in connection with
Product. Upon termination of this Agreement for any reason, TMC shall assign to
Biogen, at no cost to Biogen, (i) any regulatory filings and data and
information originally assigned by Biogen to TMC, (ii) all of TMC's rights in
the CSL Agreement and the HRI Agreement, and (iii) all of TMC's rights to the
HIRULOG trademark, together with all goodwill associated therewith, provided
that if this Agreement has been terminated by TMC under Section 10.2, Biogen
shall reimburse TMC for its out-of-pocket costs of assigning the trademark,
together with all goodwill associated therewith, and regulatory filings to
Biogen. Upon termination of this Agreement for any reason, the licenses granted
to TMC under Section 2.1 of this Agreement shall terminate and the parties shall
have no further rights or obligations under this Agreement except as set forth
in Section 10.4. Any matter related to termination with respect to which the
parties cannot agree will be referred to binding arbitration pursuant to Section
14.7. Notwithstanding anything in this

                                      -36-

<PAGE>   37
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

Section 10.6 to the contrary, neither party shall be prevented from initiating a
claim for damages due to a breach of this Agreement by the other party.

     SECTION 11 - NO HIRE.

     TMC shall not knowingly hire as an employee or employ directly as a
consultant any person who is an employee of Biogen at the time of the employment
offer from TMC or who has been an employee of Biogen within four (4) years of
the date of the employment offer from TMC. Breach of this Section 11 by TMC
shall be considered a material breach by TMC of this Agreement. In the event of
any breach by TMC of this Section 11, Biogen shall have the right to terminate
this Agreement for material breach under Section 10.2, or, in lieu of
terminating this Agreement, may elect the following remedy as payment of
liquidated damages: (i) immediate payment to Biogen by TMC of [**] and (ii) an
increase of [**] in the royalty rates applicable to Net Sales of Product under
Section 6.3 and the rate applicable to Sublicense Royalty Income under Section
6.5 of this Agreement. Election of the liquidated damages remedy by Biogen shall
not be deemed a waiver and shall not in any way limit Biogen's right to
terminate this Agreement for any subsequent breach of this Section or any
material breach of any other provision of this Agreement.

     SECTION 12 - TRADEMARKS, PATENT MARKING AND LITERATURE.

     12.1 HIRULOG TRADEMARK.

          (a)  Biogen hereby assigns to TMC all of Biogen' s rights, title and
interest in and to the HIRULOG trademark in the Territory, together with all
goodwill associated therewith. Biogen shall execute all documents reasonably
requested by TMC to effect the foregoing assignment. TMC shall promptly
reimburse Biogen for all costs and expenses incurred by Biogen in connection
with assignment of the HIRULOG trademark, together with all goodwill associated
therewith, to TMC.

                                      -37-

<PAGE>   38

          (b)  TMC shall maintain and prosecute the HIRULOG trademark in the
Territory using efforts and professional representation consistent with the
level of effort and professional representation as would be applied by a
mid-size biopharmaceutical company in prosecuting and maintaining its own
trademarks. TMC shall bear all of the costs of prosecution and maintenance of
the HIRULOG trademark after the Effective Date. TMC shall provide copies to
Biogen of all filings of trademark applications and all notices of grants which
TMC sends or receives related to the HIRULOG trademark. If TMC decides to
abandon the HIRULOG trademark or allow the HIRULOG trademark to lapse in any
country, TMC shall inform Biogen at least ninety (90) days prior to the
effective date of such decision and, at Biogen's request, shall take all
reasonable action, at Biogen's expense, to assign the HIRULOG trademark,
together with all goodwill associated therewith, back to Biogen in such country.

     12.2 PATENT MARKING. At Biogen's request, TMC shall mark, and shall require
its Affiliates or Sublicensees to mark, any and all forms of Product and Product
packaging with an appropriate patent marking identifying the issued patents of
the Biogen Patent Rights which cover the Product.

     12.3 PROMOTIONAL LITERATURE. At Biogen's request, TMC shall describe its
relationship with Biogen in TMC's promotional literature and advertising related
to Product. Biogen shall have the right to review any such description prior to
use.

     SECTION 13 - PUBLICITY

     The parties agree that the public announcement of the execution of this
Agreement shall be in the form of a press release mutually agreeable to the
parties. Each party shall be entitled to make or publish any public statement
concerning this Agreement consistent with the press release or as otherwise
mutually agreed by the parties. The terms of this Agreement which are not
divulged in the approved press release may not be disclosed except to a
government agency

                                      -38-

<PAGE>   39

as required by law. In any disclosure made to a government agency under the
preceding sentence, the disclosing party shall request confidential treatment of
the sensitive terms and conditions such as financial terms of this Agreement,
and shall provide such confidential treatment request to the other party for
review and comment.

     SECTION 14 - GENERAL PROVISIONS.

     14.1 ASSIGNMENT. Neither party shall have the right to assign this
Agreement without the prior written consent of the other party, except that
either party without the consent of the other party may assign this Agreement to
an Affiliate or to a successor in interest or transferee of all or substantially
all of the assets of such party. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors in interest
and permitted assignees. Any such successor or permitted assignee of a party's
interest shall in writing expressly assume and agree to be bound by all of the
terms and conditions of this Agreement. No assignment shall relieve the assignor
of any of its obligations under this Agreement.

     14.2 FORCE MAJEURE. Neither party shall be liable to the other party for
any failure or delay in performance of any obligation under this Agreement if
the failure is caused by fire, explosion, flood, earthquake, strike or lockout,
embargo, civil commotions, riots, wars, or any similar cause beyond such party's
reasonable control, provided that the party claiming this exception has exerted
all reasonable efforts to avoid or remedy such event and provided such event
does not extend for more than six (6) months.

     14.3 INDEPENDENT PARTIES. The relationship between Biogen and TMC is that
of independent contractors. Biogen and TMC are not and shall not be deemed to be
joint venturers, partners, principal and agent, master and servant, employer or
employee, and have no relationship other than as independent contracting
parties. Neither party shall have the authority

                                      -39-

<PAGE>   40

to bind or obligate the other party in any manner except as may be expressly
provided herein or authorized in writing.

     14.4 ENTIRE AGREEMENT. This Agreement sets forth the entire agreement and
understanding between the parties as to the subject matter hereof and all prior
agreements negotiations, representations and understandings, including a certain
letter of intent dated February 7,1997, are superseded hereby. No amendments,
modifications or supplements to this Agreement may be made, except by means of a
written document which is signed by authorized representatives of both parties.

     14.5 SEVERABILITY. If any provision of this Agreement is found by a court
to be void, invalid or unenforceable, the same shall either be reformed to
comply with applicable law or stricken if not so conformable, so as not to
affect the validity or enforceability of this Agreement, except if the principal
intent of this Agreement is frustrated by such reformation or deletion in which
case this Agreement shall terminate.

     14.6 GOVERNING LAW. This Agreement shall be construed and enforced in
accordance with the laws of the Commonwealth of Massachusetts without reference
to its choice-of-law principles.

     14.7 DISPUTE RESOLUTION. Any dispute arising out of or relating to this
Agreement or to a breach thereof, including its interpretation, performance or
termination, may be submitted by a party for resolution by binding arbitration.
The arbitration shall be conducted by three (3) arbitrators. Each party shall
select one arbitrator to serve on an arbitration panel to decide the issue. The
arbitrator selected by a party shall not be a past or present employee of or
consultant to such party or of any Affiliate or Sublicensee of such party. The
arbitrators selected by the parties shall, within ten (10) days of their
selection, select a third member to serve on the panel.

                                      -40-

<PAGE>   41

If the arbitrators selected by the parties cannot, within ten (10) days of their
selection, agree on a third member, the parties shall request that the American
Arbitration Association ("AAA") select the third member who shall not be a past
or present employee of or consultant to either party or of any Affiliate or
Sublicensee of either party. Each party shall then have thirty (30) days from
the date the panel is complete to submit to the panel and to the other party a
written statement presenting such party's position on the issue. The panel
shall, within thirty (30) days after receipt of both parties statements, hold a
joint meeting on the issue at which each party will have an opportunity to make
a presentation and to respond to the other party's presentation. Within fifteen
(15) days of the conclusion of the meeting, the panel shall render its decision
in writing. The decision of the panel shall be final and binding on the parties.
Each party shall bear its own costs in connection with the arbitration
proceedings, including the costs of the arbitrator selected by it. The costs of
the third arbitrator will be shared equally. The arbitration shall be held in
the Commonwealth of Massachusetts and conducted under the rules of the AAA,
except as otherwise expressly provided in this Section.

     14.8 HEADINGS. The headings in this Agreement have been included for
convenience only, and shall not be used to construe the meaning of this
Agreement.

     14.9 WAIVER. Failure of a party to enforce its rights under this Agreement
shall not constitute a waiver of that right or the ability to later assert that
right relative to the particular situation involved or to terminate this
Agreement as a result of any subsequent default or breach.

     14.10 NOTICES. Any notices given pursuant to this Agreement shall be in
writing and shall be deemed delivered upon the earlier of (i) when received at
the address set forth below, or (ii) three (3) business days after mailed by
certified or registered mail postage prepaid and properly addressed, with return
receipt requested, (iii) one (1) business day after being sent by a

                                      -41-

<PAGE>   42

reputable nationwide overnight courier service, or (iv) when sent, if sent, by
facsimile, as confirmed by certified or registered mail or by overnight courier.
Notices shall be delivered to the respective parties as indicated:

         If to Biogen:

               Biogen, Inc.

               14 Cambridge Center
               Cambridge, MA 02142
               Telephone: (617) 679-2000
               Fax: (617) 679-2617

                          with a copy to Vice President - General Counsel

         if to TMC:
               The Medicines Company
               One Cambridge Center
               Cambridge, MA 02142
               Telephone: (617) 225-9099
               Fax: (617) 225-2397

                          with a copy to President

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

     IN WITNESS, WHEREOF, the parties have executed this Agreement as of the
date set forth above.

BIOGEN, INC.                              THE MEDICINES COMPANY

By: /s/ James R. Tobin                    By: /s/ Clive A. Meanwell
    -----------------------------             -------------------------------
    James R. Tobin                            Clive A. Meanwell
    President and                             President and
    Chief Executive Officer                   Chief Executive Officer

                                      -42-<PAGE>   1
                                                                    EXHIBIT 10.8

            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

                  DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

     This Development and Commercialization Agreement (the "Agreement"),
effective the 16th day of August, 1999 (the "Effective Date"), is between
GyneLogix, Inc. ("Licensor"), with principal offices at 280 South Taylor Ave.,
Suite 100, Louisville, Colorado, and The Medicines Company (the "Licensee"),
with principal offices at One Cambridge Center, Cambridge, Massachusetts 02142.

BACKGROUND

     1.  Licensor owns certain Proprietary Property, including certain Patent
Rights and Know-How, relating to a novel Lactobacillus crispatus strain known as
CTV-05 and all technology related to its fermentation, stabilization and
manufacture, details of which are more fully described in APPENDIX A to this
Agreement.

     2.  Licensee desires to license the Proprietary Property in order to
develop, obtain regulatory approval, manufacture, use and sell products falling
within the scope of the Proprietary Property.

     3.  Licensor is willing to grant Licensee a license to the Proprietary
Property subject to the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, Licensor and Licensee, intending to be legally bound,
hereby agree as follows:

1.  DEFINITIONS.  As used in this Agreement, the following terms shall have the
meanings set forth below:

     1.1 "AFFILIATE" means any person, corporation, firm, partnership or entity,
which directly or indirectly owns, is owned by, or is under the common ownership
of a party to this Agreement to the extent of greater than fifty percent (50%)
of the equity of the owned entity, having the power to vote on or direct the
affairs of the owned entity, or any person, corporation, firm, partnership, or
other entity actually controlled by, controlling or under common control with a
party to this Agreement.

     1.2 "COMBINATION PRODUCT" means any pharmaceutical product that is
comprised of a Royalty-Bearing Product and at least one other active ingredient.

     1.3 "CONFIDENTIAL INFORMATION" means all Know-How or other information,
including, without limitation, proprietary information and materials (whether or
not patentable) regarding a party's technology, products, business information
or objectives, which is designated as confidential in writing by the disclosing
party, whether by letter or by the use of an appropriate stamp or legend, prior
to or at the time any such material, trade secret or other information is
disclosed by the disclosing party to the other party. Notwithstanding the
foregoing to the contrary, materials, know-how or other information which is
orally, electronically or visually disclosed by a party, or is disclosed in
writing without an appropriate letter, stamp or legend, shall constitute
Confidential Information of a party (a) if the disclosing party, within thirty
(30) days after such disclosure, delivers to the other party a written document
or documents

<PAGE>   2

describing the materials, know-how or other information and referencing the
place and date of such oral, visual, electronic or written disclosure and the
names of the persons to whom such disclosure was made, or (b) such information
is of the type that is customarily considered to be confidential information by
persons engaged in activities that are substantially similar to the activities
being engaged in by the parties pursuant to this Agreement. Confidential
Information shall not include information encompassed by the exceptions as set
forth in Section 7.1.

     1.4 "CTV-05" means (a) a novel Lactobacillus crispatus strain having ATCC
Deposit No. 202225, and (b) the underlying stabilization and preservation
technologies applying specifically to such novel Lactobacillus crispatus strain
and generally to Lactobacilli, all as more fully described in Appendix A to this
Agreement.

     1.5 "CTV-05 PRODUCTS" means products or processes that are based upon or
derived from CTV-05 or any Improvements thereto.

     1.6 "FIELD" shall mean the ex vivo and in vivo diagnosis, monitoring,
prevention and treatment of all diseases, conditions and disorders which affect
human females.

     1.7 "IMPROVEMENTS" shall mean any product or process enhancement owned or
controlled, in whole or in part, by Licensor, or to which Licensor has any right
of use or right of exploitation, relating to CTV-05, including enhancements
relating to the manufacture, formulation, ingredients, preparation, means of
delivery, dosage or packaging thereof.

     1.8 "KNOW-HOW" means any technical information related to the preparation
or development of CTV-05 Products owned or controlled in whole or in part, by
Licensor, or to which Licensor has any right of use or right of exploitation.

     1.9 "ROYALTY-BEARING PRODUCT" shall mean any CTV-05 Product whose
manufacture, use or sale is covered by a Valid Claim of any of the Patent
Rights.

     1.10 "NET SALES" means, with respect to a Royalty-Bearing Product, the
gross amount received by Licensee and/or its Affiliates on sales of
Royalty-Bearing Products to unrelated third parties, less the following
deductions:

     (a) Trade, cash and quantity discounts actually allowed and taken directly
with respect to such sales;

     (b) Tariffs, duties, excises, sales taxes or other taxes imposed upon and
paid directly with respect to the production, sale, delivery or use of the
Royalty-Bearing Product (excluding national, state or local taxes based on
income);

     (c) Amounts repaid or credited by reason of rejections, defects, recalls or
returns or because of chargebacks, refunds, rebates or retroactive price
reductions; and

     (d) Freight, insurance and other transportation charges incurred in
shipping a Royalty-Bearing Product to third parties (to the extent such charges
are invoiced to such third parties).

                                       2

<PAGE>   3

In the event the Royalty-Bearing Product is sold as part of a Combination
Product (as defined below), the Net Sales from the Combination Product, for the
purposes of determining royalty payments, shall be determined by multiplying the
Net Sales of the Combination Product (as defined in the standard Net Sales
definition), during the applicable royalty reporting period, by the fraction,
A/A+B, where A is the average sale price of the Royalty-Bearing Product when
sold separately in finished form and B is the average sale price of the other
active ingredient included in the Combination Product when sold separately in
finished form, in each case during the applicable royalty reporting period or,
if sales of both the Royalty-Bearing Product and the other active ingredient did
not occur in such period, then in the most recent royalty reporting period in
which sales of both occurred. In the event that such average sale price cannot
be determined for both the Royalty-Bearing Product and all other active
ingredient included in the Combination Product, Net Sales for the purpose of
determining royalty payments shall be calculated by multiplying the Net Sales of
the Combination Product by the fraction of C/C+D where C is the fair market
value of the Royalty-Bearing Product and D is the fair market value of all other
pharmaceutical active ingredient included in the Combination Product. In such
event, the Joint Steering Committee (as defined below), in accordance with
Section 3.4.2, shall in good faith make a determination of the respective fair
market values of the Royalty-Bearing Product and all other pharmaceutical active
ingredient included in the Combination Product, and provide Licensor with data
to support such determination. Licensor shall have the right to review such
determination and supporting data, and to notify Licensee if it disagrees with
such determination. If Licensor does not agree with such determination and if
the parties are unable to agree in good faith as to such respective fair market
values, then such matter shall be referred to the chief executive officers of
the parties.

     1.11 "PATENT RIGHTS" means those patents or patent applications listed on
Appendix B to this Agreement; and any patents or patent applications which cover
CTV-05 Products which are owned or controlled, in whole or in part, by Licensor
or to which Licensor has any right of use or right of exploitation. Included
within the definition of Patent Rights are any continuations,
continuations-in-part, divisions, patents of addition, foreign counterparts,
reissues, renewals or extensions thereof.

     1.12 "PROPRIETARY PROPERTY" shall mean all Patent Rights, Know-How and
other intellectual property rights, including trademarks, owned by Licensor
covering and relating to CTV-05 Products.

     1.13 "SUBLICENSEE PROCEEDS" means payments received by Licensee or its
Affiliates with respect to sales of Royalty Bearing Products by sublicensees.
Sublicensee Proceeds shall not include license fees, milestone payments,
research and development funding and equity investments received from
sublicensees.

     1.14 "VALID CLAIM" means a claim of any unexpired United States or foreign
patent which shall not have been donated to the public, disclaimed, nor held
invalid or unenforceable by a court of competent jurisdiction in an unappealed
or unappealable decision.

2.   LICENSE GRANT, ASSIGNMENT AND TECHNOLOGY TRANSFER.
     -------------------------------------------------

                                       3

<PAGE>   4

     2.1  GRANT OF LICENSE.  Licensor grants Licensee an exclusive worldwide
license under the Proprietary Property, including Improvements, to develop,
make, market, use, import and sell CTV-05 Products in the Field, subject to the
terms and conditions of this Agreement, including the right to grant
sublicenses. Licensee shall notify Licensor in writing of any sublicense it
grants within thirty (30) days of the execution of a sublicense agreement and
shall obtain the written commitment of such sublicensee to abide by all
applicable terms and conditions of this Agreement. Additionally, Licensee will
make reasonable efforts to notify Licensor in advance of the execution of
sublicensee agreement provided that the failure to provide such advanced notice
will not be deemed a breach of this Development and Commercialization agreement.

     2.2  KNOW-HOW TRANSFER.  Upon execution of this Agreement, but in no event
later than thirty (30) days following the Effective Date of this Agreement,
Licensor shall disclose and transfer as requested by Licensee all Know-How that
is necessary or useful to the development, regulatory approval and
commercialization of CTV-05 Products for use in the Field. Without limiting the
generality of the foregoing, Licensor shall provide to Licensee full copies of
all data and documentation related to the CTV-05 Products and their manufacture,
and shall deliver and/or make available to Licensee all finished product,
together with quality control data, in the possession of Licensor or its
Affiliates as of the Effective Date. Thereafter, Licensor will promptly disclose
and transfer to Licensee Know-How as requested by Licensee from time to time
during the term of this Agreement.

     2.3  ACCESS TO PERSONNEL.  Licensor shall provide Licensee with cooperation
and reasonable access to its technical and scientific staff in order to permit
the timely, orderly and complete transfer of the Know-How and to permit the
Licensee to exploit the rights granted hereunder. Such staff shall include, but
not be limited to, Dr. Gerald Chrisope. Licensor and Licensee agree that Dr.
Chrisope is an invaluable resource with considerable expertise in the
Proprietary Property. Licensor agrees to continue to employ Dr. Chrisope
(together with his scientific and administrative support infrastructure
(including laboratory personnel) in place as of the Effective Date) for 24
months and agrees to ensure that Dr. Chrisope and such personnel will be
available to work on the projects contemplated by the Development Plan on a full
time basis for 24 months. Notwithstanding the foregoing, Dr. Chrisope, with the
agreement of the Joint Steering Committee, may adjust personnel in a manner
deemed appropriate and to accommodate contemplated scale up and manufacturing
activities.

     2.4  REGULATORY SUBMISSIONS.  Licensor shall transfer or cause the transfer
of all regulatory submissions and approvals relating to the CTV-05 Products and
its manufacture to Licensee. Licensor agrees to take all steps reasonably
necessary to effect such transfer as of the Effective Date, including taking
such actions as may be necessary to cause the National Institutes of Health
("NIH") to transfer the IND relating to CTV-05 Products to Licensee or to permit
Licensee to have exclusive reference rights to such IND and full and continuing
access to all related data within 30 days of the Effective Date.

3.   DUTIES OF LICENSEE.
     ------------------

     3.1  GENERAL.  Licensee shall use its commercially reasonable efforts,
which for the purposes of this Agreement shall mean efforts consistent with the
usual practice followed by a medium-sized biopharmaceutical company in pursuing
the development, commercialization and

                                       4

<PAGE>   5

marketing of pharmaceutical products of similar market potential, at its own
expense, to develop and commercialize CTV-05 Products in accordance with a
development plan to be provided by the Licensee and approved by the Joint
Steering Committee and thereafter updated on an annual basis (the "Development
Plan").

     3.2  SPECIFIC LICENSEE RESPONSIBILITIES.  Without limiting the generality
of Section 3.1, Licensee shall assume the following responsibilities relating to
the development and commercialization of the CTV-05 Products:

          3.2.1  PRE-CLINICAL AND CLINICAL DEVELOPMENT.  Licensee shall be
solely responsible for the pre-clinical and clinical development of CTV-05
Products. Following review by the Joint Steering Committee, the continuation of
any preclinical or clinical trial shall be at the sole discretion of the
Licensee, including any trials currently under discussion with NIH. Licensee
shall bear the financial responsibilities for the funding of all pre-clinical
and clinical trials, either directly or through strategic partnerships.

          3.2.2  MANUFACTURING.  The Licensee shall be solely responsible for
the manufacture of CTV-05 Products, including, without limitation, the selection
of the manufacturer and the development of manufacturing processes and
commercial scale-up. Licensee shall bear the financial responsibility (including
all capital investments required) associated with the manufacturing of CTV-05
Products. Funding of these activities will be either directly or through
strategic partnerships.

It is the current expectation and desire of the parties that the CTV-05 Products
be manufactured at the Boulder, CO facility of the Licensor. A manufacturing
agreement shall be duly negotiated by both parties not later than completion of
proof of concept trial. Both parties also recognize that technical, regulatory,
legal, environmental and/or commercial issues may necessitate, or that Licensee
may find it more advantageous, that all or a portion of the manufacturing of
these products be carried out at an alternate site(s) and could potentially
involve the services of third parties. Final decisions regarding the choice of
manufacturer(s) and manufacturing site(s) will be the sole responsibility of the
Licensee. In the event that Licensee determines not to manufacture CTV-05
Products at the Licensor's Boulder facility, Licensor and Licensee recognize
that further process development work on CTV-05 Products, or other products of
mutual interest agreed by Licensor and Licensee, if needed, may continue at the
Boulder facility. The decision to continue funding the Boulder facility under
such circumstances, in part or in whole, shall be decided by the Joint Steering
Committee in accordance with Section 3.4.2.

          3.2.3  REGULATORY MATTERS.  Following review by the Joint Steering
Committee, the Licensee shall be solely responsible for all determinations
relating to regulatory issues and all filings and interactions with regulatory
authorities. Licensee shall bear the financial responsibilities for all
regulatory matters, either directly or through strategic partnerships.

          3.2.4  SALES AND MARKETING.  Licensee shall be solely responsible for
all sales and marketing activities relating to CTV-05 Products, including
advertising, sales training, exhibitions, seminars and other promotional
activities. Licensee shall bear the financial responsibilities for all sales and
marketing activities, either directly or through strategic partnerships.

                                       5

<PAGE>   6
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

     3.3  REPORTS.  Licensee shall report to Licensor on the status and progress
of Licensee's efforts to develop and commercialize CTV-05 Products at such times
as Licensor may reasonably request (not to exceed three per calendar year).

          3.3.1  COMPOSITION; RESPONSIBILITIES.  The parties shall establish a
joint steering committee (the "Joint Steering Committee"), comprised of two (2)
representatives of Licensor and two (2) representatives of Licensee. Each party
shall make its designation of its representatives prior to the Effective Date.
The Joint Steering Committee shall meet within forty-five (45) days after the
Effective Date and, thereafter, on a quarterly basis during the period in which
CTV-05 Products are in clinical development (or on a more frequent basis if
reasonably requested by Licensee) for purposes including, but not limited to (i)
reviewing the Development Plan for CTV-05 Products, (ii) reviewing and approving
amendments to the Development Plan, and (iii) reviewing and approving annual
budgets for operating expenses of the Boulder Facility for the development of
CTV-05 Products. The location of such meetings of the Joint Steering Committee
shall alternate between Licensor's principal place of business and Licensee's
principal place of business, or as otherwise agreed by the parties. All travel
and related expenses of Licensor's representatives in connection with such
meetings shall be paid by Licensee. The Joint Steering Committee may also meet
by means of a telephone conference call. Each party may change any one or more
of its representatives to the Joint Steering Committee at any time upon notice
to the other party. Each party shall use reasonable efforts to cause its
representatives to attend the meetings of the Joint Steering Committee. If a
representative of a party is unable to attend a meeting, such party may
designate an alternate to attend such meeting in place of the absent
representative. In addition, each party may, with the consent of the other
party, invite non-voting employees, consultants or scientific advisors, to
attend the meetings of the Joint Steering Committee to, among other things,
review and discuss the Development Plan and its results.

          3.3.2  DECISION MAKING.  The goal of all decision making shall be to
achieve consensus. Decisions of the Joint Steering Committee shall be made by
the majority vote of all of the members of the Joint Steering Committee. If the
Joint Steering Committee is unable to reach agreement on any matter within
fifteen (15) days after the matter is first referred to it, such matter shall be
referred for resolution to the chief executive officers of the parties. If such
officers are unable to resolve a matter referred to them under this Section
within three (3) days thereafter, the final determination shall be made by
Licensee acting in its sole discretion.

4.   FINANCIAL PROVISIONS.
     --------------------

     4.1  MILESTONE PAYMENTS.  In partial consideration of the exclusive license
granted by Licensor pursuant to this Agreement, Licensee shall pay to Licensor,
the following milestone payments:

     (a) [**] within thirty (30) days of the execution of this Agreement,
(without any credit for any prior payments made to Licensor) or if later, upon
the receipt of the written contractual agreement of the NIH to co-manage and
co-fund (in equal parts) the proof of concept trial by TMC.

                                       6

<PAGE>   7
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

 (b) [**] upon successful completion of a Phase II/Proof of Concept Trial of any
CTV-05 Product and the decision by Licensee or its sublicensee to proceed with
Phase III clinical trials of such CTV-05 Product; and

     (c) [**] upon the issuance by the U.S. Patent and Trademark office of the
first patent covering substantially all of the claims included in the patent
application described in Appendix B to this Agreement, the test of which shall
be all claims included in Appendix B relating to strain and use of strain in the
Field and the decision by TMC to go forward with the development of product.

     Each of the foregoing milestones shall be payable only once upon the first
achievement of the applicable event, and shall be non-refundable and
non-creditable. Milestone payments for 4.3(a), (b) and (c) shall be paid within
thirty (30) days of the achievement thereof.

     For purposes of this Section 4.3(b), "Phase II/Proof of Concept Trial"
shall mean a test or study using an extensive patient base which is required to
provide definitive evidence of efficacy and safety to proceed with a Phase II
dose ranging trial and/or Phase III trial for a CTV-05 Product including, but
not limited to tests and studies which are required by the regulatory
authorities pursuant to regulations, guidelines or otherwise necessary for the
filing of a New Drug Application with the U.S. Food and Drug Administration.

     4.2  PAYMENT OF CERTAIN EXPENSES.  Commencing on the Effective Date,
Licensee shall assume financial responsibility for the continued operation of
the Boulder Facility for the development of CTV-05 Products in accordance with
the Development Plan. Licensee's financial responsibility hereunder shall
terminate at such time as no further development under the Development Plan is
ongoing at the Boulder facility. Licensor represents that the current average
monthly operating expenses for the Boulder Facility is not more than [**], as
set forth more fully on APPENDIX C to this Agreement. Any actions or decisions
that would materially alter the current operating expenses for activities as
described in Section 3.2.2, including expenses, such as additions to personnel,
acquisition of equipment and changes in operations, shall be subject to the
Joint Steering Committee's prior written approval. If Licensee does not approve
of any such action or decision, Licensor may implement such action or decision
at its own expense, and Licensee shall not be responsible for reimbursing
Licensor for such incremental expenses unless such actions or decisions are
later determined by the Joint Steering Committee to be warranted. Licensee
acknowledges that additional costs will be required during prototyping and later
scale-up and manufacturing. Prior to the beginning of each calendar year,
Licensor shall provide a budget for such calendar year relating to the operation
of the Boulder Facility to the Joint Steering Committee at least ten (10) days
prior to next meeting of the Joint Steering Committee. Licensor shall invoice
Licensee monthly for the operating expenses of the Boulder Facility for the
development of CTV-05 Products, setting forth in reasonable detail the amounts
expended in various operating expense categories, PROVIDE THAT no monthly
invoice may exceed $[**] unless the Joint Steering Committee has previously
agreed in writing upon such excess expense. Licensee shall pay such invoices
within thirty (30) days after receipt, PROVIDED THAT Licensee may dispute
particular expenses by providing written notice to Licensor within such 30-day
period. In such event, Licensee may withhold the disputed portion of the invoice
and remit the balance to Licensor. Any such dispute shall be submitted to the
Joint Steering Committee for discussion and resolution. Licensor shall keep
complete and accurate records of

                                       7
<PAGE>   8
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

the latest three (3) years of operating expenses of the Boulder Facility.
Licensee shall have the right at its expense, through its own personnel, a
certified public accountant or like person reasonably acceptable to Licensor, to
examine such records during the term of this Agreement and for six (6) months
after its termination. If the review reflects an overpayment of expenses to
Licensor, such overpayment shall be promptly remitted to Licensee. If the
overpayment is equal to or greater than [**] of the amount that was otherwise
due, Licensor shall pay Licensee for the expense of such audit. Licensee shall
have no further obligation to assume financial responsibility for the Boulder
Facility upon termination of this Agreement or as otherwise provided for in this
Section 4.2.

     4.3  ROYALTIES; SUBLICENSE PAYMENTS.  As additional consideration for the
exclusive license granted by Licensor pursuant to this Agreement, Licensee
shall:

     (a) pay to Licensor royalties on Net Sales of Royalty-Bearing Products by
Licensee and its Affiliates in an amount equal to:

     [**] of Net Sales of Royalty-Bearing Products on calendar-year annual Net
Sales of up to US$[**] million;

     [**] of Net Sales of Royalty-Bearing Products on calendar-year annual Net
Sales in excess of US$[**] million and up to US$[**] million; and

     [**] of Net Sales of Royalty-Bearing Products on calendar-year annual Net
Sales in excess of US $[**] million; and

     (b) pay to Licensor [**] of Sublicensee Proceeds received by Licensee from
its sublicensees, with respect to sales of Royalty-Bearing Products.

     For the sake of clarity, assuming Licensee has Net Sales of Royalty-Bearing
Products of $[**] million in a calendar year and receives $[**] million from a
sublicensee based on sales of Royalty-Bearing Products by such sublicensee in a
calendar year, Licensee shall pay to Licensor royalties totaling $[**] million
([**] of the first $[**] million in Net Sales, [**] of the next $[**] million
in Net Sales and [**] of the remaining $[**] million in Net Sales) and
sublicense fees totaling $[**] million ([**] of the $[**] million received by
Licensee from its sublicensee).

     4.4  EXPIRATION AND NON GRANT OF PATENT.  Royalty and sublicense payment
obligations due under this Agreement shall expire on a country-by-country basis
in each country effective at such time as there no longer exists in such country
a Valid Claim of any Patent Right covering the Royalty-Bearing Products in such
country. Upon expiration of such royalty and sublicense payment obligations in
any country, Licensee shall have a perpetual, fully paid up, exclusive right and
license under the Know-How in such country. However, in acknowledgement of
GyneLogix's proprietary know-how it is envisioned that TMC shall upon expiration
of said patents, on a country-by-country basis pay to GyneLogix [**] markup over
direct costs on CTV-05 products manufactured by GyneLogix, the details of which
will be specified in a manufacturing agreement to be signed by both parties. In
the event that Patent Rights, as outlined in Appendix B, are not granted to
GyneLogix and TMC outsources manufacture of a Royalty-Bearing Product to a third
party, TMC will in consideration of GyneLogix proprietary expertise transferred
by GyneLogix to third party, pay to GyneLogix not more than [**]

                                       8

<PAGE>   9

of net profit margin enjoyed by said third party contract manufacturer to be
negotiated on a country by country basis as necessary. Said net profit margin in
the absence of third party cost basis will be established by mutual agreement
between TMC and GyneLogix. In the event of a disagreement with regard to said
net profit margin, TMC and GyneLogix will abide by the opinion of an expert
industry consultant to be chosen by the CEO's of both companies.

     4.5  THIRD PARTY PATENT PAYMENTS.  In the event that Licensee is obligated
to make payments to non-affiliated third parties ("Third Party Patent Payments")
to obtain licenses to patented technology which, in the reasonable judgment of
the Steering Committee, are required in connection with the development and
commercialization of Royalty-Bearing Products, then Licensee may deduct said
third party payments from payments otherwise due under Sections 4.3(a) and
4.3(b), it being understood that if such third party patent payments exceed
payments under 4.3(a) and 4.3(b) Licensee may not seek payment from Licensor for
such excess.

     4.6  ROYALTIES PAYABLE ONLY ONCE.  The obligation to pay royalties is
imposed only once with respect to the same unit of a Royalty-Bearing Product.
Except as specifically provided in this Agreement, it is understood and agreed
that there shall be no deductions from the royalties payable under this
Agreement.

     4.7  SALES TO AFFILIATES AND SUBLICENSEES.  Sales of Royalty-Bearing
Products between Licensee and its Affiliates or permitted sublicensees, or among
such Affiliates and permitted sublicensees, shall not be subject to royalties
under Section 4.3, but in such cases the royalties shall be calculated on the
Net Sales by such Affiliates to a third party or Sublicensee Proceeds received
by Licensee, as the case may be.

     4.8  ROYALTY REPORTS AND PAYMENTS.  Within fifty (50) days after the close
of each calendar quarter, Licensee shall deliver to Licensor a true accounting
of all Royalty-Bearing Products sold by Licensee and its Affiliates and
sublicensees during such quarter and shall at the same time pay all royalties
and sublicensee payments due. Such accounting shall show sales on a
country-by-country and Royalty-Bearing Product-by-Royalty-Bearing Product basis.

     4.9  RECORDS; AUDITS.  Licensee shall keep and require its Affiliates and
sublicensees to keep complete and accurate records of all sales of
Royalty-Bearing Products under the licenses granted herein. Licensor shall have
the right at its expense, through a certified public accountant or like person
reasonably acceptable to Licensee, to examine such records during regular
business hours during the term of this Agreement and for six (6) months after
its termination; provided, however, that such examination shall not take place
more often than once a year, and shall not cover such records for more than the
preceding three (3) years and provided further that such accountant shall report
to Licensee only as to the accuracy of the royalty statements and payments. In
the event that any such audit reveals that Licensee has paid less than the
royalty payments then due, Licensee shall promptly remit the shortfall to
Licensor and shall pay the Licensor for the expense of such audit in the event
that such shortfall is greater than ten percent (10%) of the royalty payments
then due. In the event that any such audit reveals that Licensee has paid more
than the royalty payments then due, Licensor shall promptly remit the
overpayment amount to Licensee.

                                       9

<PAGE>   10

     4.10  TAX WITHHOLDINGS.  Any tax paid or required to be withheld by
Licensee by the Internal Revenue service or other taxing authorities on account
of royalties or other amounts payable to Licensor under this Agreement shall be
deducted from the payments otherwise due. Licensee shall secure and send to
Licensor written proof of any such taxes withheld and paid by Licensee or its
sublicensees for the benefit of Licensor.

     4.11  PAYMENT CURRENCY; BLOCKED PAYMENTS.  All royalties due under this
Agreement shall be payable in U.S. Dollars. In the event that, by reason of
applicable laws or regulations in any country, it becomes impossible or illegal
for Licensee or its Affiliates or sublicensees, to transfer, or have transferred
on its behalf, royalties or other payments to Licensor, such royalties or other
payments shall be deposited in local currency in the relevant country to the
credit of Licensor in a recognized banking institution designated by Licensor
or, if none is designated by Licensor within a period of thirty (30) days, in a
recognized banking institution selected by Licensee or its Affiliates or
sublicensees, as the case may be, and identified in a notice in writing given to
Licensor.

     4.12  CURRENCY CONVERSIONS.  Monetary conversions from the currency of a
country in which Royalty-Bearing Products are sold, into U.S. Dollars shall be
made at the exchange rate at which the applicable currency can be sold for U.S.
Dollars, as reported in THE WALL STREET JOURNAL at closing on the last business
day of the calendar quarter for which the royalties are being paid. Under all
circumstances Licensor shall bear the currency exchange risk for the conversion
of royalties being paid hereunder.

5.   REPRESENTATIONS AND WARRANTS
     ----------------------------

     5.1  REPRESENTATIONS OF AUTHORITY.  Licensor and Licensee each represents
and warrants to the other that it has full right, power and authority to enter
into this Agreement and to perform its respective obligations under this
Agreement. Licensor represents and warrants to Licensee that it has the right to
grant to Licensee the license granted pursuant to this Agreement.

     5.2  CONSENTS.  Licensor and Licensee each represents and warrants that all
necessary consents, approvals and authorizations of all government authorities
and other persons required to be obtained by such party in connection with
execution, delivery and performance of this Agreement have been and shall be
obtained.

     5.3  NO CONFLICT.  Licensor and Licensee each represents and warrants that
notwithstanding anything to the contrary in this Agreement, the execution and
delivery of this Agreement and the performance of such party's obligations
hereunder (a) do not conflict with or violate any requirement of applicable laws
or regulations and (b) do not and will not conflict with, violate or breach or
constitute a default or require any consent under, any contractual obligations
of such party, except such consents as shall have been obtained prior to the
Effective Date.

     5.4  EMPLOYEE OBLIGATIONS.  Licensor and Licensee each represents and
warrants that all of its employees, officers, and consultants have executed (and
any future employees, officers and consultants will execute) agreements or have
existing obligations under law requiring, in the case of employees and officers,
assignment to such party of all inventions made during the

                                       10

<PAGE>   11

course of and as the result of their association with such party and obligating
the individual to maintain as confidential such party's Confidential Information
as well as confidential information of a third party which such party may
receive, to the extent required to support such party's obligations under this
Agreement.

     5.5  INTELLECTUAL PROPERTY.  Licensor represents and warrants that, to its
knowledge, except as disclosed in writing by Licensor to Licensee, (a) the
development and commercialization of CTV-05 Products does not and will not
infringe or conflict with the rights of any third party in respect of Know-How
or issued patents or published patent applications owned by such third party,
and (b) Proprietary Property that is expected to be utilized by Licensee in the
development and commercialization of CTV-05 Products is not being infringed by
any third party. Licensor represents and warrants that there is no claim or
demand of any person pertaining to, or any proceeding which is pending or, to
the knowledge of Licensor, threatened, that challenges the rights of Licensor in
respect of Proprietary Property Licensor represents and warrants that it is the
record owner of the Proprietary Property, which is free and clear of all liens,
claims and encumbrances.

     5.6  NO WARRANTIES.  EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, THE
PARTIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF ANY KIND EITHER
EXPRESS OR IMPLIED, INCLUDING WHETHER ROYALTY-BEARING PRODUCTS WILL BE
SUCCESSFULLY DEVELOPED HEREUNDER, AND IF DEVELOPED, WILL HAVE COMMERCIAL UTILITY
OR MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

6.   PATENTS, KNOW-HOW, INVESTIONS AND INFRINGEMENT
     ----------------------------------------------

     6.1  OWNERSHIP.  Licensor shall retain sole title to the Know-How and the
Patent Rights as presently existing and as developed or invented by Licensor or
on its behalf during the term of this Agreement. Licensee shall have sole title
to any Improvements developed or invented solely by Licensee or on its behalf
during the term of this Agreement. Licensor and Licensee shall jointly own any
Improvements developed or invented by both parties or on their behalf during the
term of this Agreement. The determination of inventorship shall be made in
accordance with relevant patent laws; in the event of a dispute regarding
inventorship or ownership that the parties are unable to resolve, mutually
acceptable outside patent counsel not regularly employed by either party shall
be retained to resolve such dispute.

     6.2  PATENT RESPONSIBILITIES.  Licensee shall, at its own cost and expense,
assume the responsibilities for preparing, filing, prosecuting and maintaining
patent applications and patents included within the Patent Rights or
Improvements licensed hereunder with patent counsel of its choosing. Within 30
days after the Effective Date, Licensor shall forward to Licensee or its
designee, at Licensee's expense, all documentation, including copies of file
histories and cited prior art, required for Licensee to assume such
responsibility. Licensor agrees to execute such documents and take such actions
as may be reasonably necessary to enable Licensee to undertake such
responsibilities. If Licensee shall decide not to file, prosecute or maintain
any of the Patent Rights in any country, Licensee shall so inform Licensor in a
prompt fashion (i.e., at least thirty (30) days prior to any filing deadline)
and Licensor shall have the right to assume the filing, prosecution and/or
maintenance thereof in such country at its own expense.

                                       11

<PAGE>   12

6.3  THIRD PARTY INFRINGEMENT.
     ------------------------

          6.3.1  NOTIFICATION.  Each party shall promptly inform the other party
of any suspected infringement or misappropriation by any third party of any
Proprietary Property. Licensee shall, within 120 days of the first notice under
this Section 6.3.1, inform Licensor whether or not Licensee intends to institute
suit against such third party. Licensor need not take any steps toward
instituting suit against any such third party until Licensee has informed
Licensor of its intention pursuant to the previous sentence.

          6.3.2  JOINT SUIT.  If Licensee notifies Licensor that it desires to
institute suit against such third party with respect to infringement, and
Licensor notifies Licensee within 30 days after receipt of such notice that
Licensor desires to institute suit jointly, the suit shall be brought jointly in
the names of both parties. In consultation with the Joint Steering Committee,
the Licensee shall control the prosecution of such suit, and all costs thereof
shall be shared between the parties as the interests of the parties were
affected by the infringement, including reference to the relative monetary
injury suffered by each party. Recoveries, if any, whether by judgment, award,
decree or settlement, shall, after the reimbursement of each of the parties for
their shares of the joint costs in such action, be shared between the parties as
the interests of the parties were affected by the infringement, including
reference to the relative monetary injury suffered by each party.

          6.3.3  LICENSEE SUIT.  If Licensee notifies Licensor that it intends
to institute suit against such third party with respect to infringement, and
Licensor decides not to join in such suit, as provided in Section 6.3.2,
Licensee may bring such suit on its own and shall in such event bear all costs
of, and shall exercise all control over, such suit. Licensee may, at its
expense, bring such action in the name of Licensor and/or cause Licensor to be
joined in the suit as a plaintiff. Recoveries, if any, whether by judgment,
award, decree or settlement, shall belong solely to Licensee. Any expenses
incurred by Licensor as a result of being added to such suit by Licensee shall
be paid for and/or reimbursed promptly by Licensee.

          6.3.4  LICENSOR SUIT.  If Licensee notifies Licensor that it does not
intend to institute suit against such third party, Licensor may institute suit
on its own. Licensor shall bear all costs of, and shall exercise all control
over, such suit. Licensor may, at its expense, bring such action in the name of
Licensee and/or cause Licensee to be joined in the suit as a plaintiff.
Recoveries, if any, whether by judgment, award, decree or settlement, shall
belong solely to Licensor. Any expenses incurred by Licensee as a result of
being added to such suit by Licensor shall be paid for and/or reimbursed
promptly by Licensor.

          6.3.5  ABANDONMENT OF SUIT.  Should any party commence a suit under
the provisions of this Section 6.3 and thereafter elect to abandon the same, it
shall give timely notice to the other party, which may, if it so desires, be
joined as a plaintiff in the suit (or continue as such if it is already one) and
continue prosecution of such suit, provided, however, that the sharing of
expenses and any recovery of such suit shall be as agreed upon between the
parties.

     6.4  CLAIMED INFRINGEMENT.  In the event that a third party at any time
provides written notice of a claim to, or brings any action, suit or proceeding
against a party or such party's Affiliates or sublicensees claiming infringement
of its patent rights or unauthorized use or

                                       12

<PAGE>   13

misappropriation of its technology based upon an assertion or claim arising out
of the practice of the Proprietary Property in the development, manufacture, use
or sale of Royalty-Bearing Product(s), such party shall promptly notify the
other party of the claim or commencement of such action, suit or proceeding,
enclosing a copy of the claim and/or all papers served relating thereto. In such
instance, Licensee (or a sublicensee, if so provided in the applicable
sublicense agreement) shall have the right to defend such claim, action, suit or
proceeding, at Licensee's (or such sublicensees) sole cost and expense, and
shall keep Licensor informed of the status and progress of the resolution of
such matter. Licensee may, after notification to Licensor, withhold up to 50% of
the payments otherwise due Licensor hereunder and may apply such withheld
amounts to reimbursement of the expenses incurred in defending any such action,
claim or proceeding, provided that any damages recovered by Licensee in any such
action, claim or proceeding shall first be applied to the reimbursement of any
such withheld amounts. The parties hereto shall negotiate in good faith any
adjustment to the provisions of this Agreement in the event that the final
result of such claim, action, suit or proceeding has any negative effect on the
development, manufacture, use or sale of Royalty-Bearing Product(s) hereunder.

     6.5  PATENT INVALIDITY CLAIM.  If a third party at any time asserts a claim
that any Patent Right is invalid or otherwise unenforceable (an "Invalidity
Claim"), whether as a defense in an infringement action brought by Licensee or
Licensor pursuant to Section 6.3 or in an action brought against Licensee or
Licensor under Section 6.4, the parties shall cooperate with each other in
preparing and formulating a response to such Invalidity Claim. Neither party
shall settle or compromise any Invalidity Claim without the consent of the other
party, which consent shall not be unreasonably withheld.

     6.6  PATENT TERM EXTENSIONS.  The parties shall cooperate, if necessary and
appropriate, with each other in gaining patent term extension wherever
applicable to Patent Rights covering Royalty-Bearing Products. The Parties
shall, if necessary and appropriate, use reasonable efforts to agree upon a
joint strategy relating to patent extensions. All filings for such extension
shall be made by the party which is the assignee of the patent, PROVIDED,
HOWEVER, that in the event that such party elects not to file for an extension,
such party shall (i) inform the other party of its intention not to file and
(ii) grant the other party the right to file for such extension.

7.   CONFIDENTIALITY
     ---------------

     7.1  CONFIDENTIAL INFORMATION.  All Confidential Information disclosed by a
party to the other party during the term of this Agreement shall not be used by
the receiving party except in connection with the activities contemplated by
this Agreement, shall be maintained in confidence by the receiving Party (except
to the extent reasonably necessary for the conduct of clinical trials of CTV-05
Products, regulatory approval of CTV-05 Products or for the filing, prosecution
and maintenance of Patent Rights), and shall not otherwise be disclosed by the
receiving party to any other person, firm, or agency, governmental or private,
without the prior written consent of the disclosing party, provided that such
information shall not be deemed Confidential Information to the extent that the
Confidential Information (as determined by competent documentation):

     (a) was known or used by the receiving party prior to its date of
disclosure to the receiving party; or

                                       13

<PAGE>   14

     (b) either before or after the date of the disclosure to the receiving
party is lawfully disclosed to the receiving party by sources other than the
disclosing party rightfully in possession of the Confidential Information; or

     (c) either before or after the date of the disclosure to the receiving
party becomes published or generally known to the public (including information
known to the public through the sale of products in the ordinary course of
business) through no fault or omission on the part of the receiving party or its
sublicensees; or

     (d) is independently developed by or for the receiving party without
reference to or reliance upon the particular Confidential Information; or

     (e) is required to be disclosed by the receiving Party to comply with
applicable laws, to defend or prosecute litigation or to comply with
governmental regulations, provided that the receiving Party provides prior
written notice of such disclosure to the disclosing Party and takes reasonable
and lawful actions to avoid and/or minimize the degree of such disclosure.

     7.2  EMPLOYEE AND ADVISOR OBLIGATIONS.  Licensor and Licensee each agree
that they shall provide Confidential Information received from the other party
only to their respective employees, consultants and advisors, and to the
employees, consultants and advisors of such party's affiliates, who have a need
to know and have an obligation to treat such information and materials as
confidential.

     7.3  TERM.  All obligations of confidentiality imposed under this Article 7
shall expire five (5) years following termination or expiration of this
Agreement.

     7.4  PUBLICATIONS.  The parties acknowledge that scientific lead time is a
key element of the value of the development program for the CTV-05 Products and
further agree that scientific publications must be strictly monitored to prevent
any adverse effect of the premature publication of results of the development
program for the CTV-05 Products. The parties shall establish a procedure for
publication review and approval and each party shall first submit to the other
party an early draft of all such publications, whether they are to be presented
orally or in written form, at least sixty (60) days prior to submission for
publication. Each party shall review each such proposed publication in order to
avoid the unauthorized disclosure of a party's Confidential Information and to
preserve the patentability of inventions. If, as soon as reasonably possible but
no longer than sixty (60) days following receipt of an advance copy of a party's
proposed publication, the other party informs such party that its proposed
publication contains Confidential Information of the other party, then such
party shall delete such Confidential Information from its proposed publication.
If as soon as reasonably possible but no longer than sixty (60) days following
receipt of an advance copy of a party's proposed publication, the other party
informs such party that its proposed publication could be expected to have a
material adverse effect on any Patent Rights or Know-How of such other party,
then such party shall delay such proposed publication sufficiently long to
permit the timely preparation and first filing of patent application(s) on the
information involved.

7.5  PUBLIC ANNOUNCEMENTS.
     --------------------

                                       14

<PAGE>   15

          7.5.1 GENERAL. Any announcements or similar publicity with respect to
the execution of this Agreement (including the timing and the contents of such
announcements or similar publicity) shall be determined by the Licensee, acting
in its sole discretion. The parties agree that any such announcement will not
contain confidential business or technical information and, if disclosure of
confidential business or technical information is required by law or regulation,
will make reasonable efforts to minimize such disclosure and obtain confidential
treatment for any such information which is disclosed to a governmental agency
or group. Each party agrees to provide to the other party with a copy of any
public announcement as soon as reasonably practicable under the circumstances
prior to its scheduled release. Except under extraordinary circumstances, each
party shall provide the other with an advance copy of any press release at least
five (5) business days prior to the scheduled disclosure. Each party shall have
the right to expeditiously review and recommend changes to any announcement
regarding this Agreement or the subject matter of this Agreement, provided that
such right of review and recommendation shall only apply for the first time that
specific information is to be disclosed, and shall not apply to the subsequent
disclosure of substantially similar information that has previously been
disclosed. Except as otherwise required by law, the party whose press release
has been reviewed shall remove any information the reviewing party reasonably
deems to be inappropriate for disclosure.

          7.5.2 LICENSEE DISCLOSURE RIGHTS. Notwithstanding the provisions of
Section 7.5.1, (a) Licensee shall have the right to disclose the existence and
financial and other terms of this Agreement to potential investors, lenders and
corporate partners and (b) Licensee shall have the right to issue a press
release and related public relations materials relating to the execution of this
Agreement and the CTV-05 Product, PROVIDED THAT Licensee shall provide a copy of
such release and materials to Licensor in advance of such issuance, for
Licensor's review.

8.   INDEMNIFICATION
     ---------------

     8.1  LICENSEE INDEMNIFICATION.  Licensee shall indemnify, defend and hold
harmless Licensor and its officers, directors, Affiliates, employees and agents
from and against all third party costs, claims, suits, expenses (including
reasonable attorneys' fees) and damages arising out of or resulting from any
willful misconduct or negligent act or omission by Licensee related to the
subject matter of this Agreement or the distribution, sale, use by or
administration to any person of any CTV-05 Products, or that arises out of any
defect in the manufacture or the labeling, advertising, or sales of CTV-05
Products by Licensee or its sublicensees (except where such cost, claim, suit,
expense or damage arose or resulted from (a) the infringement of the CTV-05
Product(s) on the rights and/or patents of third parties, or (b) any willful
misconduct or negligent act or omission by Licensor), provided that Licensor
gives reasonable notice (no later than thirty (30) days after its receipt of
such claim) to Licensee of any such claim or action, tenders the defense of such
claim or action to Licensee and reasonably assists Licensee at Licensee's
expense in defending such claim or action and does not compromise or settle such
claim or action without Licensee's prior written approval (which approval shall
not be unreasonably withheld).

     8.2  LICENSOR INDEMNIFICATION.  Licensor shall indemnify, defend and hold
harmless Licensee and its officers, directors, Affiliates, employees, agents and
sublicensees from and against all third party costs, claims, suits, expenses
(including reasonable attorney's fees) and

                                       15

<PAGE>   16

damages arising out of or resulting from any willful misconduct or negligent act
or omission by Licensor relating to the subject matter of this Agreement (except
where such cost, claim, suit, expense or damage arose or resulted from (a) the
infringement of the CTV-05 Products on the rights and/or patents of third
parties, or (b) any willful misconduct or negligent act or omission by Licensee
or its sublicensees), provided that Licensee gives reasonable notice (no later
than thirty (30) days after its receipt of such claim) to Licensor of any such
claims or action, tenders the defense of such claim or action to Licensor and
assists Licensor at Licensor's expense in defending such claim or action and
does not compromise or settle such claim or action without Licensor's prior
written approval (which approval shall not be unreasonably withheld).

     8.3  SEPARATE LEGAL COUNSEL.  In any action subject to the indemnification
provisions hereof, if the defendants in any such action include both Licensor
and Licensee and any party concludes that there may be legal defenses available
to it which are different from, additional to, or inconsistent with, those
available to the other(s), that party shall have the right to select separate
counsel to participate in the defense of such action on its behalf and such
party shall thereafter bear the cost and expense of such separate defense.

8.4  INSURANCE.
     ---------

          8.4.1 LICENSEE INSURANCE. Licensee shall maintain and will continue to
maintain product liability insurance coverage appropriate to the risks involved
in the development and marketing of CTV-05 Products, as reviewed by the Joint
Steering Committee, but not less than US$2 million, and will no more than
annually present evidence to Licensor that such coverage is being maintained if
so requested in writing by Licensor. Licensee shall have the option of
self-insuring for such coverage, on the condition that it provide Licensor upon
request with an audited financial statement that evidences its ability to
self-insure for an amount reasonably satisfactory to Licensee.

          8.4.2  LICENSOR INSURANCE.  Licensor shall maintain and will continue
to maintain workers' compensation, general liability and other insurance with
respect to the Boulder Facility, including insurance against loss, damage, fire,
theft, public liability, environmental liability and other risks, in an amount
of at least US$2 million, and will no more than annually present evidence to
Licensee that such coverage is being maintained if so requested in writing by
Licensee.

9.   EARLY TERMINATION
     -----------------

     9.1  TERMINATION FOR BREACH.  Upon any material breach of this Agreement by
either party (in such capacity, the "Breaching Party"), the other party (in such
capacity, the "Non-Breaching Party"), may terminate this Agreement by providing
sixty (60) days' written notice to the Breaching Party, specifying the material
breach. The termination shall become effective at the end of the sixty (60) day
period unless (a) the Breaching Party cures such breach during such sixty (60)
day period or (b) if such breach is not susceptible to cure within sixty (60)
days of the receipt of written notice of the breach, the Breaching Party is
diligently pursuing a cure (unless such breach, by its nature, is incurable, in
which case the Agreement may be terminated immediately) and effects such cure
within an additional sixty (60) days after the end of the initial sixty (60) day
cure period.

                                       16

<PAGE>   17

     9.2  LICENSEE TERMINATION RIGHT.  Licensee shall have the right to
terminate this Agreement for convenience at any time upon sixty (60) days prior
written notice to Licensor. Following such termination, neither Licensee nor its
sublicensees shall have any rights to distribute, manufacture, sell or otherwise
distribute any CTV-05 Products in the Field.

9.3  EFFECT OF TERMINATION.
     ---------------------

          9.3.1  PAYMENT.  Upon the early termination of this Agreement by
Licensor pursuant to Section 9.1, or termination of this Agreement by Licensee
pursuant to Section 9.2, Licensor shall have the right to retain any sums
already paid by Licensee, and Licensee shall pay all sums accrued hereunder
which are then due.

          9.3.2  TERMINATION BY LICENSEE FOR BREACH.  Upon the early termination
of this Agreement by Licensee pursuant to Section 9.1, the rights and licenses
granted to Licensee under this Agreement shall not be affected, provided
Licensee continues to comply with its obligations hereunder for the term
thereof.

          9.3.3  TRANSFER OF DATA AND FILINGS.  Upon termination of this
Agreement by Licensor pursuant to Section 9.1, or termination of this Agreement
by Licensee pursuant to Section 9.2, Licensee will transfer to Licensor all
clinical data, patent and regulatory filings and government market approvals and
all other data developed by Licensee relating to the CTV-05 Products.

     9.4  SURVIVAL OF PROVISIONS.  In addition to the other provisions
concerning the survivability of terms and conditions hereof, under all
circumstances, the provisions of Sections 6, 7, 8, 9, and 12 hereof shall
survive the expiration or early termination of this Agreement.

10.  EFFECT OF BANKRUPTCY ON LICENSES

     All rights and licenses granted under or pursuant to any section of this
Agreement are and shall otherwise be, deemed to be, for purposes of Section
365(n) of the Bankruptcy Code, licenses of rights to "intellectual property" as
defined under Section 101(35A) of the Bankruptcy Code. The parties shall retain
and may fully exercise all of their respective rights and elections under the
Bankruptcy Code. Upon the bankruptcy of any party, the non-bankrupt parties
shall further be entitled to a complete duplicate of (or complete access to, as
appropriate) any such intellectual property, and such, if not already in its or
their possession, shall be promptly delivered to the nonbankrupt parties, unless
the bankrupt parties elect to continue, and continues, to perform all of its or
their obligations under this Agreement. All technology and know-how that may be
developed by Licensee during the term of this Agreement that relates in any way
to CTV-05 Products shall be and remain the property of Licensor.

11.  OTHER AGREEMENTS
     ----------------

     11.1  FINANCIAL STATEMENTS.  Licensor warrants that it will provide annual
financial statements to Licensee in accordance with US GAAP within 90 days of
the end of each fiscal year.

                                       17

<PAGE>   18

     11.2  NON-COMPETE.  During the term of this Agreement, neither Licensor nor
Dr. Chrisope shall, without the prior written consent of Licensee, engage in any
research, development or commercialization activities in the Field involving
lactobacilli or any products or processes that are based upon or derived from
lactobacilli, except in accordance with the Development Plan.

12.  MISCELLANEOUS PROVISIONS
     ------------------------

     12.1  DISPUTE RESOLUTION.  With the specific exception of those matters
permitted or required to be decided by the joint Steering Committee, by the CEO
of the Licensee, or by the Licensee as outlined in section 3 and elsewhere in
this Agreement ("Excluded Matters"), if one of the parties hereto declares that
a dispute between the parties has arisen related to or arising from this
Agreement, such dispute shall, in the first instance, be the subject of good
faith negotiations between the parties to resolve such dispute. Should the
negotiations not lead to a settlement of the dispute within thirty (30) days
after a party declares that the dispute has arisen, either party may submit the
issue to binding arbitration. Such arbitration shall take place in Boston,
Massachusetts if submitted by Licensor and in Denver, Colorado if submitted by
Licensee and shall be conducted by a single arbitrator appointed by the Boston
or Denver office, as the case may be, of the American Arbitration Association
and in accordance with the commercial arbitration rules of the American
Arbitration Association. The arbitrator shall be a person who has had experience
in pharmaceutical licensing and shall be given full power to hear and finally
determine and dispose of all disputes (other than Excluded Matters) between the
parties that may arise from or that are related to this Agreement. The
arbitrator will use his best efforts to deliver a ruling in writing no later
than thirty (30) days after the hearing (which will be held within 30 days of
the appointment of the arbitrator hearing) and the decision will be binding on
the parties. Judgment upon the decision rendered may be entered in any court
having jurisdiction or application may be made to such court of a judicial
acceptance of the award and an order of enforcement, as the case may be. Each
party shall pay its own attorney's fees. All other fees and expenses payable
with respect to the arbitration proceedings shall be paid in the manner
determined by the arbitrator. Notwithstanding the foregoing, nothing in this
Section 12.1 shall be construed as limiting in any way the right of a party to
seek injunctive relief with respect to any actual or threatened breach of this
Agreement, which breach would cause irreparable harm to the party seeking such
relief, from a court of competent jurisdiction.

     12.2  GOVERNING LAW.  This Agreement shall be construed and the respective
rights of the parties hereto determined according to the substantive laws of the
Commonwealth of Massachusetts notwithstanding the provisions governing conflict
of laws to the contrary, except matters of intellectual property law which shall
be determined in accordance with the national intellectual property laws
relevant to the intellectual property in question.

     12.3  ASSIGNMENT.  Neither party may assign this Agreement in whole or in
part without the consent of the other, except if such assignment occurs in
connection with the sale or transfer of all or substantially all of the business
and assets of such party to which the subject matter of this Agreement pertains.

     Notwithstanding the foregoing, any party may assign its rights (but not its
obligations) pursuant to this Agreement in whole or in part to an Affiliate of
such party.

                                       18
<PAGE>   19

     12.4  AMENDMENTS.  This Agreement constitutes the entire agreement between
the parties with respect to the subject matter hereof, and supersedes all
previous arrangements with respect to the subject matter hereof, whether written
or oral. Any amendment or modification to this Agreement shall be made in
writing signed by both parties.

     12.5  NOTICES.
           -------

           Notices to Licensor shall be addressed to:

           GyneLogix, Inc.
           280 South Taylor Avenue
           Suite 100
           Louisville, CO ________

           Attention:  ___________________________
           Facsimile No:  (____) _________________

           With a copy to:

           Joseph E. Kovarik, Esq.
           Sheridan Ross P.C.
           1700 Lincoln Street, Suite 3500
           Denver, CO 80203

           Telephone No. (303) 863-2977
           Facsimile No. (303) 863-0223

           Notices to Licensee shall be addressed to:

           The Medicines Company
           One Cambridge Center
           Cambridge, MA 02142

           Attention:  President
           Facsimile No.: (___) __________________

           with a copy to:

           Hale and Dorr LLP
           60 State Street
           Boston, MA 02109
           Attention:  Steven D. Singer, Esq.
           Facsimile No.:  (617) 526-5000

     Any party may change its address by giving notice to the other party in the
manner herein provided. Any notice required or provided for by the terms of this
Agreement shall be in writing and shall be (a) sent by registered or certified
mail, return receipt requested, postage prepaid, (b)

                                       19

<PAGE>   20

sent via a reputable overnight courier service, or (c) sent by facsimile
transmission, in each case properly addressed in accordance with the paragraph
above. The effective date of notice shall be the actual date of receipt by the
party receiving the same.

     12.6  FORCE MAJEURE.  No failure or omission by the parties hereto in the
performance of any obligation of this Agreement shall be deemed a breach of this
Agreement or create any liability if the same shall arise from any cause or
causes beyond the control of the parties, including, but not limited to, the
following: acts of God; acts or omissions of any government; any rules,
regulations or orders issued by any governmental authority or by any officer,
department, agency or instrumentality thereof; fire; storm; flood; earthquake;
accident; war; rebellion; insurrection; riot; and invasion and provided that
such failure or omission resulting from one of the above causes is cured as soon
as is practicable after the occurrence of one or more of the above-mentioned
causes.

     12.7  INDEPENDENT CONTRACTORS.  It is understood and agreed that the
relationship between the parties hereunder is that of independent contractors
and that nothing in this Agreement shall be construed as authorization for
either Licensor or Licensee to act as agent for the other.

     12.8  NO STRICT CONSTRUCTION.  This Agreement has been prepared jointly and
shall not be strictly construed against any party.

     12.9  HEADINGS.  The captions or headings of the sections or other
subdivisions hereof are inserted only as a matter of convenience or for
reference and shall have no effect on the meanings of the provisions hereof.

     12.10  NO IMPLIED WAIVERS; RIGHTS CUMULATIVE.  No failure on the part of
Licensor or Licensee to exercise, and no delay in exercising, any right, power,
remedy or privilege under this Agreement, or provided by statute or at law or in
equity or otherwise, shall impair, prejudice or constitute a waiver of any such
right, power, remedy or privilege or be construed as a waiver of any breach of
this Agreement or as an acquiescence therein, nor shall any single or partial
exercise of any such right, power, remedy or privilege preclude any other or
further exercise thereof or the exercise of any other right, power, remedy or
privilege.

     12.11  SEVERABILITY.  If any provision hereof should be held invalid,
illegal or unenforceable in any respect in any jurisdiction, then, to the
fullest extent permitted by law, (a) 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 as nearly as may be possible
and (b) such invalidity, illegality or unenforceability shall not affect the
validity, legality or enforceability of such provision in any other
jurisdiction. To the extent permitted by applicable law, Licensor and Licensee
hereby waive any provision of law that would render any provision hereof
prohibited or unenforceable in any respect.

     12.12  EXECUTION IN COUNTERPARTS.  This Agreement may be executed in
counterparts, each of which counterparts, when so executed and delivered, shall
be deemed to be an original, and all of which counterparts, taken together,
shall constitute one and the same instrument.

                                       20

<PAGE>   21

     IN WITNESS WHEREOF, the parties have executed this Agreement, individually
or by their duly authorized officers, as appropriate, on the date first written
above.

GYNELOGIX, INC.                            THE MEDICINES COMPANY

By: /s/ Gerald L. Chrisope                 By: /s/ Clive A. Meanwell
   -----------------------------------        ----------------------------------
Name: Gerald L. Chrisope                   Name: Clive A. Meanwell
     ---------------------------------          --------------------------------
Title: President and CEO                   Title: President and CEO
      --------------------------------           -------------------------------

For purposes of Section 11.2 hereof,

/s/ Gerald L. Chrisope
--------------------------------------
Gerald Chrisope

                                       21

<PAGE>   22
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

APPENDIX A

CTV-05
------

a. LACTOBACILLUS CRISPATUS strain CTV-05, as deposited in American Type Culture
   Collection, Accession No. 202225;

b. any additional LACTOBACILLUS species and/or strains possessed, owned or
   controlled by Licensor as of the Effective Date which has similar beneficial
   attributes or utility within the Field and that is described in U.S. patent
   application Serial No. [**], and any Know-How and any Improvements thereof as
   of the Effective Date, including without limitation all information contained
   in any SOP or FDA document owned, submitted or controlled by Licensor which
   relates to the Field.

<PAGE>   23
            Confidential Materials omitted and filed separately with
      the Securities and Exchange Commission. Asterisks denote omissions.

APPENDIX B

PATENT RIGHTS

1.       PATENT RIGHTS
         -------------

         U.S. Patent Application No. [**]

         PCT Patent Application No. [**]

<PAGE>   24

APPENDIX C

BOULDER FACILITY BUDGET

(To Be Supplied)

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