THIS  MODIFICATION  AND EXTENSION OF LEASE  AGREEMENT made this 1st day
March, 2,002 between Innovation  Partners,  Ltd, a Florida Limited  Partnership,
Successor in Interest to ECHELON  INTERNATIONAL  CORPORATION  ("Landlord")  and,
IXION BIOTECHNOLOGY, INC., hereinafter called ("Tenant").

         The parties hereto entered into a Lease  Agreement  dated September 18,
1998 and a First Amendment of Lease Agreement dated August 15, 2000 and a Second
Amendment  of Lease  Agreement  dated  October  1, 2000 and a  Modification  and
Amendment of Lease Agreement affecting property described therein.

         The parties desire to modify and extend the Lease Agreement in order to
reflect an increase  in the amount of square  footage to be covered by the Lease
with the corresponding increase in rent.

         In consideration of the mutual covenants  contained herein, the parties
agree as follows.

     1.   The  leased  premises  covered  by the  Lease  are  more  particularly
          described on Exhibit "A" attached hereto.

     2.   The Lease expiration date is hereby extended to October 31, 2005.

     3.   The number of square feet included in the leased  premises and covered
          by the Lease is  increased  from 11,079  square feet to 12,221  square
          feet.

     4.   The  Gross  Annual  Rent  shall  be  as  follows:  5/1/02  -  10/31/02
          $15,816.00/month   11/1/02  -  10/31/03   $16,211.41/month  11/1/03  -
          10/31/04 $16,616.70/month 11/1/04 - 10/31/05 $17,032.12/month

     (Note:  the  above  schedule  does not  include  any  sales  tax or use tax
     assessed  on rental nor any  charges  due for tenant  electricity  usage in
     areas that are not separately  metered and billed directly to tenant by the
     utility company.)

     5.   In all other  respects  the terms and  conditions  of the Lease  dated
          September 18, 1998, and the subsequent  Amendments  stated above shall
          remain  unchanged and in full force and effect,  except as modified or
          amended by this agreement.

Witnesses:                                  INNOVATION PARTNER'S LTD
                                By Alachua Innovation Inc, it's General Partner

--------------------                        ---------------------------
                                            Title:_President- Phillip L. Hawley

Date:______________________


                                            IXION BIOTECHNOLOGY, INC.

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                                            Title:_____________________
                                            Date:________________