Document:

exv10w2

Exhibit 10.2

NETEZZA CORPORATION

Second Amended and Restated Executive Retention Agreement

     THIS SECOND AMENDED AND RESTATED EXECUTIVE RETENTION AGREEMENT by and between Netezza
Corporation, a Delaware corporation (the “Company”), and Jitendra Saxena (the “Executive”) is made
as of March 12, 2009 (the “Effective Date”).

     WHEREAS, the Company and the Executive originally entered into this Executive Retention
Agreement on March 21, 2007, and amended and restated it on December 24, 2008;

     WHEREAS, the Executive resigned as an executive officer of the Company as of January 31, 2009
but remains an employee of the Company; and

     WHEREAS, in light of the Executive’s revised role with the Company, the Company and the
Executive now desire to amend and restate this Agreement further to limit the benefits provided
hereunder.

     NOW, THEREFORE, for good and valuable consideration, the Company and the Executive hereby
agree as follows.

     1. Key Definitions.

     As used herein, the following terms shall have the following respective meanings:

          1.1 “Change in Control” means an event or occurrence set forth in any one or more of
subsections (a) through (c) below (including an event or occurrence that constitutes a Change in
Control under one of such subsections but is specifically exempted from another such subsection)
and that also constitutes a “change of control” within the meaning of Section 409A of the United
States Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section
409A”):

               (a) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 30% or more
of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company
Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company
entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that for purposes of this subsection (a), the following
acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the
Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security
exercisable for, convertible into or exchangeable for common stock or voting securities of the
Company, unless the Person exercising, converting or exchanging such security acquired such
security directly from the Company or an underwriter or agent of the Company), (ii) any acquisition
by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the

 

Company or any corporation controlled by the Company, or (iv) any acquisition by any
corporation pursuant to a transaction which complies with clauses (i) and (ii) of subsection (c) of
this Section 1.1; or

               (b) such time as the Continuing Directors (as defined below) do not constitute a majority of
the Board (or, if applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of the Board (i) who was a member
of the Board on the date of the execution of this Agreement or (ii) who was nominated or elected
subsequent to such date by at least a majority of the directors who were Continuing Directors at
the time of such nomination or election or whose election to the Board was recommended or endorsed
by at least a majority of the directors who were Continuing Directors at the time of such
nomination or election; provided, however, that there shall be excluded from this
clause (ii) any individual whose initial assumption of office occurred as a result of an actual or
threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents, by or on behalf of a person other than the Board;
or

               (c) the consummation of a merger, consolidation, reorganization, recapitalization or statutory
share exchange involving the Company or a sale or other disposition of all or substantially all of
the assets of the Company in one or a series of transactions (a “Business Combination”), unless,
immediately following such Business Combination, each of the following two conditions is satisfied:
(i) all or substantially all of the individuals and entities who were the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring
corporation is referred to herein as the “Acquiring Corporation”) in substantially the same
proportions as their ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, respectively; and (ii) no Person
(excluding any employee benefit plan (or related trust) maintained or sponsored by the Company or
by the Acquiring Corporation) beneficially owns, directly or indirectly, 30% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of
the then-outstanding securities of such corporation entitled to vote generally in the election of
directors (except to the extent that such ownership existed prior to the Business Combination).

          1.2 “Change in Control Date” means the first date on which a Change in Control occurs.
Anything in this Agreement to the contrary notwithstanding, if (a) a Change in Control occurs, (b)
the Executive’s employment with the Company is terminated prior to the date on which the Change in
Control occurs, and (c) it is reasonably demonstrated by the Executive that such termination of
employment (i) was at the request of a third party who has taken steps reasonably calculated to
effect a Change in Control or (ii) otherwise arose in connection with or in anticipation of a
Change in Control, then for all purposes of this

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Agreement the “Change in Control Date” shall mean the date immediately prior to the date of
such termination of employment.

          1.3 “Cause” means a good faith finding by the Company that:

               (a) the Executive has breached any of his or her material legal or contractual obligations to
the Company (other than as a result of incapacity) which breach (i) has not been cured by the
Executive within 10 business days following written notice by the Company to the Executive
notifying him or her of such breach and (ii) would have a material adverse effect on the Company;
or

               (b) the Executive has engaged in gross or persistent misconduct with respect to the Company;
or

               (c) the Executive has been convicted of or pleaded guilty or nolo contendere to (i) any
misdemeanor relating to the affairs of the Company which is injurious to the Company or (ii) any
felony.

          1.4 “Good Reason” means the occurrence, without the Executive’s written consent, of
any of the following:

               (a) a material reduction of the Executive’s annual base salary, provided that the reduction is
at least 15%;

               (b) a significant diminution in the Executive’s authority and duties, such that the
Executive’s employment duties and responsibilities are no longer of an executive nature; or

               (c) the relocation of the Executive’s principal place of employment to a location that is more
than 30 miles further away from the Executive’s residence than is the Executive’s current principal
place of employment.

     Any termination by the Executive for Good Reason shall be communicated by means of a written
notice delivered by the Executive to the Company within 90 days of the initial existence of the
occurrence or condition on which the Executive bases his claim for Good Reason. If the condition
is capable of being corrected, the Company shall have 30 days during which it may remedy the
condition. If the condition is fully remedied within such time period, the Company shall not owe
the amounts otherwise required to be paid under this Agreement. If the condition is not
corrected, the Executive must leave employment within one year after the Company fails to cure the
condition giving rise to the Executive’s claim for Good Reason.

     2. Term of Agreement. This Agreement, and all rights and obligations of the parties
hereunder, shall take effect upon the Effective Date and shall continue in effect until the
fulfillment by the Company of all of its obligations under Sections 4 and 5.2.

     3. Employment Status; Notice of Termination of Employment.

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          3.1 Not an Employment Contract. The Executive acknowledges that this Agreement does
not constitute a contract of employment or impose on the Company any obligation to retain the
Executive as an employee and that this Agreement does not prevent the Executive from terminating
employment at any time.

          3.2 Notice of Termination of Employment.

               (a) Any termination of the Executive’s employment by the Company or by the Executive (other
than due to the death of the Executive) shall be communicated by a written notice to the other
party hereto (the “Notice of Termination”), given in accordance with Section 7. Any Notice of
Termination shall: (i) indicate whether the termination is for Cause or Good Reason, (ii) to the
extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination for Cause or Good Reason and (iii) specify the Date of Termination (as
defined below). The effective date of an employment termination (the “Date of Termination”) shall
be the close of business on the date specified in the Notice of Termination (which date may not be
less than 10 days or more than 90 days after the date of delivery of such Notice of Termination),
in the case of a termination other than one due to the Executive’s death, or the date of the
Executive’s death, as the case may be.

               (b) The failure by the Executive or the Company to set forth in the Notice of Termination any
fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any
right of the Executive or the Company, respectively, hereunder or preclude the Executive or the
Company, respectively, from asserting any such fact or circumstance in enforcing the Executive’s or
the Company’s rights hereunder.

               (c) Any Notice of Termination for Cause given by the Company must be given within 90 days of
the occurrence of the event(s) or circumstance(s) which constitute(s) Cause.

     4. Benefits to Executive.

          4.1 No Severance Benefits. If the Executive voluntarily terminates his or her
employment with the Company, or the Executive’s employment with the Company is terminated by the
Company, then the Company shall pay the Executive (or his or her estate, if applicable), in a lump
sum in cash within 30 days after the Date of Termination, the sum of (i) the Executive’s base
salary through the Date of Termination, (ii) any accrued bonus which the Executive is entitled to
receive as of the Date of Termination, (iii) the amount of any compensation previously deferred by
the Executive (together with any accrued interest or earnings thereon) and any accrued vacation
pay, in each case to the extent not previously paid.

          4.2 Stock Acceleration. If the Executive’s employment is terminated by the Company
without Cause or by the Executive for Good Reason following a Change in Control, then all stock
options, restricted stock or other equity awards subject to vesting that are held by the Executive
as of such employment termination shall become vested in full effective immediately prior to such
employment termination.

          4.3 Taxes.

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               (a) Notwithstanding any other provision of this Agreement, except as set forth in Section
4.3(b), in the event that the Company undergoes a “Change in Ownership or Control” (as defined
below), the Company shall not be obligated to provide to the Executive a portion of any “Contingent
Compensation Payments” (as defined below) that the Executive would otherwise be entitled to receive
to the extent necessary to eliminate any “excess parachute payments” (as defined in Section
280G(b)(1) of the Internal Revenue Code of 1986, as amended (the “Code”)) for the Executive. For
purposes of this Section 4.3, the Contingent Compensation Payments so eliminated shall be referred
to as the “Eliminated Payments” and the aggregate amount (determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-30 or any successor provision) of the Contingent Compensation
Payments so eliminated shall be referred to as the “Eliminated Amount.”

               (b) Notwithstanding the provisions of Section 4.3(a), no such reduction in Contingent
Compensation Payments shall be made if (i) the Eliminated Amount (computed without regard to this
sentence) exceeds (ii) 110% of the aggregate present value (determined in accordance with Treasury
Regulation Section 1.280G-1, Q/A-31 and Q/A-32 or any successor provisions) of the amount of any
additional taxes that would be incurred by the Executive if the Eliminated Payments (determined
without regard to this sentence) were paid to him or her (including, state and federal income taxes
on the Eliminated Payments, the excise tax imposed by Section 4999 of the Code payable with respect
to all of the Contingent Compensation Payments in excess of the Executive’s “base amount” (as
defined in Section 280G(b)(3) of the Code), and any withholding taxes). The override of such
reduction in Contingent Compensation Payments pursuant to this Section 4.3(b) shall be referred to
as a “Section 4.3(b) Override.” For purpose of this paragraph, if any federal or state income
taxes would be attributable to the receipt of any Eliminated Payment, the amount of such taxes
shall be computed by multiplying the amount of the Eliminated Payment by the maximum combined
federal and state income tax rate provided by law.

               (c) For purposes of this Section 4.3 the following terms shall have the following respective
meanings:

                    (i) “Change in Ownership or Control” shall mean a change in the ownership or effective control
of the Company or in the ownership of a substantial portion of the assets of the Company determined
in accordance with Section 280G(b)(2) of the Code.

                    (ii) “Contingent Compensation Payment” shall mean any payment (or benefit) in the nature of
compensation that is made or made available (under this Agreement or otherwise) to a “disqualified
individual” (as defined in Section 280G(c) of the Code) and that is contingent (within the meaning
of Section 280G(b)(2)(A)(i) of the Code) on a Change in Ownership or Control of the Company.

               (d) Any payments or other benefits otherwise due to the Executive following a Change in
Ownership or Control that could reasonably be characterized (as determined by the Company) as
Contingent Compensation Payments (the “Potential Payments”) shall not be made until the dates
provided for in this Section 4.3(d). Within 30 days after each date on which the Executive first
becomes entitled to receive (whether or not then due) a Contingent Compensation Payment relating to
such Change in Ownership or Control, the

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Company shall determine and notify the Executive (with reasonable detail regarding the basis
for its determinations) (i) which Potential Payments constitute Contingent Compensation Payments,
(ii) the Eliminated Amount and (iii) whether the Section 4.3(b) Override is applicable. Within 30
days after delivery of such notice to the Executive, the Executive shall deliver a response to the
Company (the “Executive Response”) stating either (A) that he or she agrees with the Company’s
determination pursuant to the preceding sentence, or (B) that he or she disagrees with such
determination, in which case he or she shall set forth (i) which Potential Payments should be
characterized as Contingent Compensation Payments, (ii) the Eliminated Amount, and (iii) whether
the Section 4.3(b) Override is applicable. If and to the extent that any Contingent Compensation
Payments are required to be treated as Eliminated Payments pursuant to this Section 4.3(d), then
the Payments shall be reduced or eliminated, as determined by the Company, in the following order:
(A) any cash payments, (B) any taxable benefits, (C) any nontaxable benefits, and (D) any vesting
of equity awards, in each case in reverse order beginning with payments or benefits that are to be
paid the farthest in time from the date that triggers the applicability of the excise tax, to the
extent necessary to maximize the Eliminated Payments. In the event that the Executive fails to
deliver an Executive Response on or before the required date, the Company’s initial determination
shall be final. If the Executive states in the Executive Response that he or she agrees with the
Company’s determination, the Company shall make the Potential Payments to the Executive within
three business days following delivery to the Company of the Executive Response (except for any
Potential Payments which are not due to be made until after such date, which Potential Payments
shall be made on the date on which they are due). If the Executive states in the Executive
Response that he or she disagrees with the Company’s determination, then, for a period of 60 days
following delivery of the Executive Response, the Executive and the Company shall use good faith
efforts to resolve such dispute. If such dispute is not resolved within such 60-day period, such
dispute shall be settled exclusively by arbitration in Boston, Massachusetts, in accordance with
the rules of the American Arbitration Association then in effect. Judgment may be entered on the
arbitrator’s award in any court having jurisdiction. The Company shall, within three business days
following delivery to the Company of the Executive Response, make to the Executive those Potential
Payments as to which there is no dispute between the Company and the Executive regarding whether
they should be made (except for any such Potential Payments which are not due to be made until
after such date, which Potential Payments shall be made on the date on which they are due). The
balance of the Potential Payments shall be made within three business days following the resolution
of such dispute. Subject to the limitations contained in Sections 4.3(a) and (b) hereof, the
amount of any payments to be made to the Executive following the resolution of such dispute shall
be increased by the amount of the accrued interest thereon computed at the prime rate announced
from time to time by Silicon Valley Bank, compounded monthly from the date that such payments
originally were due.

               (e) The provisions of this Section 4.3 are intended to apply to any and all payments or
benefits available to the Executive under this Agreement or any other agreement or plan of the
Company under which the Executive receives Contingent Compensation Payments.

     5. Disputes.

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          5.1 Settlement of Disputes; Arbitration. All claims by the Executive for benefits
under this Agreement shall be directed to and determined by the Board and shall be in writing. Any
denial by the Board of a claim for benefits under this Agreement shall be delivered to the
Executive in writing and shall set forth the specific reasons for the denial and the specific
provisions of this Agreement relied upon. The Board shall afford a reasonable opportunity to the
Executive for a review of the decision denying a claim. Any further dispute or controversy arising
under or in connection with this Agreement shall be settled exclusively by arbitration in Boston,
Massachusetts, in accordance with the rules of the American Arbitration Association then in effect.
Judgment may be entered on the arbitrator’s award in any court having jurisdiction.

          5.2  Expenses. The Company agrees to pay as incurred, to the full extent permitted by
law, all legal, accounting and other fees and expenses which the Executive may reasonably incur as
a result of any claim or contest by the Company, the Executive or others regarding the validity,
enforceability or applicability of any provision of this Agreement, plus in each case interest on
any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Code.

     6. Successors.

          6.1 Successor to Company. This Agreement shall be binding upon the Company and its
successors and assigns (including the resulting or acquiring company in a Business Combination).
In the event of a Business Combination (and provided that, in the case of a Business Combination
structured as the sale or other disposition of all or substantially all of the assets of the
Company, the Executive accepts employment with the Acquiring Corporation effective on or about the
Change in Control Date), all references in this Agreement to the Company shall instead be deemed to
refer to the Acquiring Corporation.

          6.2 Successor to Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s duly authorized personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the Executive should
die while any amount would still be payable to the Executive or his or her family hereunder if the
Executive had continued to live, all such amounts, unless otherwise provided herein, shall be paid
in accordance with the terms of this Agreement to the executors, personal representatives or
administrators of the Executive’s estate, as appropriate.

     7. Notice. All notices, instructions and other communications given hereunder or in
connection herewith shall be in writing. Any such notice, instruction or communication shall be
sent either (i) by registered or certified mail, return receipt requested, postage prepaid, or (ii)
prepaid via a reputable nationwide overnight courier service, in each case addressed to the
Company, at 26 Forest Street, Marlborough, Massachusetts 01752, and to the Executive at the address
set forth below his or her name on the signature page hereto (or to such other address as either
the Company or the Executive may have furnished to the other in writing in accordance herewith).
Any such notice, instruction or communication shall be deemed to have been delivered five business
days after it is sent by registered or certified mail, return receipt requested, postage prepaid,
or one business day after it is sent via a reputable nationwide overnight courier service. Either
party may give any notice, instruction or other communication

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hereunder using any other means, but no such notice, instruction or other communication shall
be deemed to have been duly delivered unless and until it actually is received by the party for
whom it is intended.

     8. Miscellaneous.

          8.1 Employment by Subsidiary. For purposes of this Agreement, the Executive’s
employment with the Company shall not be deemed to have terminated solely as a result of the
Executive continuing to be employed by a wholly-owned subsidiary of the Company.

          8.2 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

          8.3 Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the internal laws of the Commonwealth of Massachusetts, without
regard to conflicts of law principles.

          8.4 Waivers. No waiver by the Executive at any time of any breach of, or compliance
with, any provision of this Agreement to be performed by the Company shall be deemed a waiver of
that or any other provision at any subsequent time.

          8.5 Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original but both of which together shall constitute one and the same
instrument.

          8.6 Tax Withholding. Any payments provided for hereunder shall be paid net of any
applicable tax withholding required under federal, state or local law.

          8.7 Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supersedes all prior agreements,
promises, covenants, arrangements, communications, representations or warranties, whether oral or
written, by any officer, employee or representative of any party hereto in respect of the subject
matter contained herein; and any prior agreement of the parties hereto in respect of the subject
matter contained herein is hereby terminated and cancelled. This agreement supplements and
modifies the vesting provisions in any current or future stock option, restricted stock or equity
award agreement between the Executive and the Company; provided that if any such agreement has
acceleration-of-vesting provisions that are more favorable to the Executive than the terms of this
agreement, such more favorable provisions shall apply.

          8.8 Amendments. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Executive.

          8.9 Executive’s Acknowledgements. The Executive acknowledges that he or she: (a) has
read this Agreement; (b) has been represented in the preparation, negotiation, and execution of
this Agreement by legal counsel of the Executive’s own choice or has voluntarily declined to seek
such counsel; (c) understands the terms and consequences of this Agreement;

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and (d) understands that the law firm of WilmerHale is acting as counsel to the Company in
connection with the transactions contemplated by this Agreement, and is not acting as counsel for
the Executive.

[Remainder of page intentionally left blank.]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first set forth above.

	 	 	 	 	 	 	 
	 	 	NETEZZA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James Baum 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James Baum	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	JITENDRA SAXENA	 	 
	 
	 	 	 	/s/ Jitendra Saxena 	 	 
	 	 	 	 	 
	 	 	Address: 47 Flanagan Drive	 	 
	 

	 	 	 	        Framingham, MA 01701	 	 

10exv10w9

EXHIBIT 10.9

 

CONFIDENTIAL TREATMENT

EPIX
Medical, Inc. has requested that the marked portions of this document be
accorded confidential treatment pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934.

 

EXECUTION COPY

 

INTELLECTUAL PROPERTY AGREEMENT

 

This “Agreement” made this 17th day of November,
2003 by and between Dr. Martin R. Prince (hereinafter, “Prince”), an individual
residing at *****, and EPIX Medical, Inc., a corporation duly organized under
the laws of the State of Delaware and having a principal place of business at 71
Rogers Street, Cambridge, Massachusetts USA (hereinafter “EPIX”).

 

RECITALS

 

Prince is recognized for his expertise in clinical
magnetic resonance imaging and magnetic resonance angiography and as the
inventor of contrast-enhanced magnetic resonance angiography
techniques.

 

Prince and Dr. James F.M. Meaney (hereinafter
“Meaney”), an individual residing at *****, are the inventors of certain
inventions relating to bolus chase magnetic resonance angiography.

 

Prince represents that he is the owner of, and has
the right to grant the discharges, releases, promises and covenants not to sue
under intellectual property pertaining to magnetic resonance imaging and
magnetic resonance angiography that is the subject of this Agreement.

 

EPIX, by itself and/or through its Affiliates,
desires to obtain discharges, releases, promises and covenants not to sue under
the above-described intellectual property rights to enable them to develop and
commercialize contrast agents used in magnetic resonance imaging and magnetic
resonance angiography on the terms set forth herein.

 

Prince desires to grant such discharges, releases,
promises and covenants not to sue on the terms set forth herein.

 

1

 

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the promises
and mutual covenants set forth herein, the parties agree as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1                                
“Effective Date” means the date first set forth above.

 

1.2                                
“Royalty Start Date” means the date of the first Sale of an MR Contrast
Agent Product.

 

1.3                                
“Affiliate(s)” means any entity which is or becomes directly or
indirectly controlled by EPIX, control being defined as (i) the direct or
indirect ownership of at least 50% of the stock entitled to vote upon election
of directors or persons performing similar functions, or (ii) direct or indirect
ownership of the maximum percentage of such stock permitted by local laws or
regulations in those countries where fifty percent (50%) ownership by a foreign
entity is not permitted.

 

1.4                                
“CE-MRA” means contrast-enhanced MR angiography.

 

1.5                                
“MR” means magnetic resonance imaging and magnetic resonance
angiography.

 

1.6                                
“MR Contrast Agent(s)” means any contrast agent used in, or capable of
use in CE-MRA procedures.

 

1.7                                
“MR Imaging System(s)” means any magnetic resonance
transmission/receiving system, inclusive of all hardware (for example, without
limitation, imaging coils) and software components, that is capable of
performing CE-MRA procedures.

 

1.8                                
“MR Injection Product(s)” means any pump, tubing set, or like apparatus
that is designed for or advertised to be used in CE-MRA procedures to
administer, inject or infuse contrast agent(s) to a patient. 
Notwithstanding the foregoing, a syringe that is pre-filled with the MR Contrast
Agent Product is not an MR Injection Product.

 

1.9                                
“MR Contrast Agent Product” means a product containing the MR Contrast
Agent currently designated by EPIX as MS-325.  Expressly excluded from this
definition are all other MR Contrast Agents, and MR Imaging Systems or any MR
Injection Products, no matter how Sold, provided, used or disposed of.

 

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1.10                          
“Prince MR Intellectual Property” means any invention, improvement, trade
secret, patent, patent application, copyright and other intellectual property
rights to which Prince is able to grant the discharge, release, promise and
covenant not to sue herein as of the Effective Date or thereafter during the term of this
Agreement, which relate to the manufacture, use, importation, advertisement,
offer to Sell, or Sale of any MR Contrast Agent Product.

 

1.11                          
“Prince Patents” means the patents and patent applications included
within the Prince MR Intellectual Property, including, without limitation, the
patents and patent applications listed in Exhibit A and any and all
applications, continuation applications, continuation-in-part applications,
divisional applications, reissue applications, reexamination applications,
foreign counterparts or other statutory rights arising from or based on such
applications, anywhere in the world.

 

1.12                          
“Third Party(ies)” means any entity which is neither a party to this
Agreement nor an Affiliate of such a party.

 

1.13                          
“EPIX Licensee(s)” means any entity that is authorized by EPIX to Sell
the MR Contrast Agent Product to a customer/user in any country of the
world.  Currently, the only EPIX Licensees are Berlex Laboratories, Inc.
(hereinafter “Berlex”), a company having its principal place of business at 340
Changebridge Road, Montville, New Jersey, and Schering AG (hereinafter
“Schering”), a company having its principal place of
business at Müllerstrasse
178, D-13342 Berlin, Germany.

 

1.14                          
“Sell” means to sell, lease, or otherwise transfer or convey an MR
Contrast Agent Product.  A commercially reasonable number of units of MR
Contrast Agent Product that are provided, free of charge, to Third Parties as
samples for promotional purposes shall be deemed not to have been Sold for
purposes of determining the royalty payable hereunder.  “Sold”, “Sale”, and
other forms of “Sell” shall have the same meaning.

 

1.15                          
“Net Sales” means the gross amount invoiced or otherwise charged a
customer by EPIX (or its Affiliates) or EPIX Licensees for a MR Contrast Agent
Product Sold by EPIX (or its Affiliates) or EPIX Licensees in any country of the
world, less the following amounts: (a) insurance, transportation, taxes, customs
brokers fees and customs duties provided such deductions are paid by EPIX (or
its Affiliates) or EPIX Licensees and listed on the invoice; (b) allowances or
credits to customers in the ordinary course of business in connection with the
sale of an MR Contrast Agent Product on account of outdating, recall, market
withdrawal, rejection, or return of such MR Contrast Agent Product, (c) credited
allowances to such independent

 

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customers for such MR Contrast Agent Product which
were spoiled, damaged, out-dated or returned; (d) freight and insurance costs
charged to such customers; (e) quantity and promotional discounts actually
allowed and taken; (f) sales, use, value added, and other taxes or governmental
charges (such as customs duties) incurred in connection with the sale,
exportation or importation of the MR Contrast Agent Product in finished packaged
form; (g) charge back payments and/or rebates or other fees provided to
distributors, wholesalers, or other purchasers and managed health care
organizations or federal, state and local governments, their agencies,
purchasers and reimbursers, including reimbursements to social security
organizations; and (h) volume-related customer program costs which are required
by the customer and which are independent of marketing initiatives.

 

The parties recognize that (a) customers may
include persons in the chain of commerce, who enter into agreements with a
seller as to price even though title to the MR Contrast Agent Product does not
pass directly from the seller to such customers, and even though payment for
such MR Contrast Agent Product is not made by such customers directly to the
seller; and (b) in such cases chargebacks paid by EPIX (or its Affiliates) or
EPIX Licensees to or through a Third Party (such as a wholesaler) can be
deducted by EPIX (or its Affiliates) or EPIX Licensees  from gross revenue
in order to calculate Net Sales.  Any deductions listed above which involve
a payment by EPIX (or its Affiliates) or EPIX Licensees shall be taken as a
deduction against aggregate sales for the quarter in which the payment is
made.

 

Net Sales will be accounted for in accordance with
international accounting standards consistently applied. In any instance where
the calculation of Net Sales according to international accounting standards
differs materially from GAAP such that the result of such calculation under
international accounting standards would cause EPIX (or its Affiliates) or EPIX
Licensees to improperly account for such revenue under GAAP, EPIX will provide
Prince with any and all information requested by Prince regarding the
calculation of Net Sales to enable Prince to comply with GAAP in recognizing
revenue from such Net Sales.

 

Where a MR Contrast Agent Product is transferred
by EPIX (or its Affiliates), through one or more Affiliates or EPIX Licensees
for Sale to a customer/user, only the Sale to such customer/user shall be
included in the Net Sales.  For example, where a MR Contrast Agent Product
is transferred by (i) EPIX to Berlex or Schering (whether through one or more
Affiliates of EPIX) for Sale to a customer/user, or (ii) Mallinckrodt to EPIX or
Berlex or Schering for Sale to a customer/user, only the Sale to such
customer/user shall be included in the Net Sales.

 

4

 

 

Notwithstanding the foregoing, the Net Sales for
any calendar quarter shall be no less than the net sales of MR Contrast Agent
Product by EPIX Licensees for the corresponding calendar quarter as reported (i)
by EPIX Licensees to EPIX (or its Affiliates) or (ii) by EPIX in publicly
available documentation (such as, for example, the Quarterly and/or Annual
Reports).

 

Given the worldwide scope of this Agreement, the
impracticality of monitoring by EPIX of the movement of the MR Contrast Agent
Product through international markets and the impracticality of establishing a
value for pro-rata use in CE-MRA (if any), it is agreed and recognized that
paying royalties on all Sales of MR Contrast Agent Product, as a whole, is fair
and reasonable, representing a balance between the concerns and interests of
both parties and resulting in a convenience for EPIX.

 

1.16                          
“Third Party Price” means the average amount paid by all Third Parties
for the MR Contrast Agent Product in arms-length transactions during the
calendar quarter corresponding to the royalty period of any royalty report,
provided there are substantial Sales of such MR Contrast Agent Product to Third
Parties during the royalty period.  In the event of a dispute regarding
whether there have been such substantial Sales, the parties agree to first meet
and negotiate in good faith with the expectation of determining a Third Party
Price.

 

1.17                          
“Confidential Information” means any information disclosed by one party
to the other, pursuant to this Agreement, which is in written, graphic, machine
readable or other tangible form and is marked
“Confidential”, “Proprietary” or
in some other manner to indicate its confidential nature.  Confidential
Information may also include oral information disclosed by one party to the
other provided that such information is designated as confidential at the time
of disclosure and reduced to a written summary by the disclosing party, within
thirty (30) days after its oral disclosure, which is marked in a manner to
indicate its confidential nature and delivered to the receiving party. 
Notwithstanding the foregoing limitations, all sales and similar reports and
records provided by EPIX to Prince hereunder, or to which Prince or its designee
may gain access pursuant to Article 4, are hereby deemed to be Confidential
Information of EPIX.

 

5

 

 

ARTICLE 2

DISCHARGE, RELEASE, AND COVENANT

 

2.1                                
Subject to the terms and conditions of this Agreement, Prince hereby
discharges, releases, promises and covenants not to sue, threaten to sue or
otherwise disturb EPIX, and its Affiliates, and any EPIX Licensee,
subcontractor, supplier, distributor, vendor, reseller, purchaser, or user of
the MR Contrast Agent Product, acquired directly or indirectly from EPIX (or its
Affiliates) or an EPIX Licensee in any country in the world, for any claim or
cause of action based upon (i) the Prince MR Intellectual Property and (ii) the
manufacture, use, Sale, advertisement, offer for Sale, importation, lease, or
otherwise transfer or disposition of the MR Contrast Agent Product, whether such
claim or cause of action is presently known or unknown.  This covenant not
to sue is personal in nature and limited to EPIX, its Affiliates, any
successor(s) to EPIX, and any EPIX Licensee, subcontractor, supplier,
distributor, vendor, reseller, purchaser, or user of the MR Contrast Agent
Product.

 

2.2                                
Prince hereby grants to EPIX, and its Affiliates and any EPIX Licensee, a
non-exclusive, license, without the right to sublicense, under U.S. Patent *****
to make, have made, use, offer to Sell, Sell, import, export and otherwise
transfer the MR Contrast Agent Product during the term of this Agreement. 
Nothing in this Agreement shall be
construed as expressly, impliedly, or otherwise granting a license, of any kind
or type, under the Prince Patents other than U.S. Patent *****.

 

2.3                                
Nothing contained in this Agreement shall be construed as:

 

(a)          a warranty
or representation by Prince as to the validity, enforceability, and/or scope of
any one of the Prince Patents; or

 

(b)        
imposing on Prince any obligation to institute legal action for
infringement of any one of the Prince Patents, or to defend a legal action
brought by a Third Party in relation to any one of the Prince Patents; or

 

(c)          imposing on
Prince any obligation to file application(s) or other intellectual property
registration(s) related to the Prince MR Intellectual Property, or to secure or
maintain in force any one of the Prince Patents; or

 

(d)        
imposing on Prince any obligation to furnish any technical information or
know-how.

 

6

 

 

ARTICLE 3

COMPENSATION AND RELATED
OBLIGATIONS

 

3.1                                
In consideration of the license, discharges, releases, promises and
covenants not to sue granted herein, EPIX agrees to pay Prince:

 

(a)          ***** ($
*****), the payment being due and payable within two (2) weeks of the Effective
Date of the Agreement; and

 

(b)        
commencing with the Royalty Start Date, a royalty equal to ***** percent
(*****%) of Net Sales.

 

3.2                                
In the event that the MR Contrast Agent Product is Sold during a calendar
quarter under circumstances where the selling price is not established on an
arms-length basis, Net Sales shall be calculated using the Third Party Price of
such MR Contrast Agent Product.  If there is no Third Party Price for such
MR Contrast Agent Product, the parties shall immediately determine an
appropriate royalty base for such MR Contrast Agent Product.  In the event
that a resolution is not reached, the dispute shall be resolved according to the
resolution procedure of paragraph 13.2.

 

3.3                                
In further consideration of the license, discharges, releases, promises
and covenants granted herein, EPIX agrees to provide to Prince, or another
designated in writing by Prince, ***** Dollars ($*****) worth of MR Contrast
Agent Product per year calendar commencing on the earlier of (i) the day that
the FDA issues final approval of the use of MR Contrast Agent Product for a
CE-MRA procedure or indication, or (ii) the day the MR Contrast Agent Product
becomes commercially available, and continuing each calendar year thereafter
until expiration or termination of the Agreement.  The number of Doses to
be provided for each calendar year
will be determined by dividing ***** by the Third Party Price per Dose as of the
first day of such year.  EPIX will provide Prince with an invoice promptly
after the first day of the year setting forth the number of Doses to be
delivered to Prince during such year and the method by which the number of doses
was determined, including without limitation, the Third Party Price per
Dose.  Such Doses shall be deemed not to have been Sold for purposes of
determining the royalty payable under this Agreement.  One (1) dose of MR
Contrast Agent Product is equal to the largest commercially available volume of
MR Contrast Agent Product, within a container, for administration to one (1)
patient.  For example, where the largest commercially available volume of
MR Contrast Agent within a container for administration to one (1) patient is a
vial or syringe containing one hundred milliliters

 

7

 

 

(100ml) of MR Contrast Agent Product, one dose of
MR Contrast Agent Product is one hundred milliliters (100ml).

 

3.4                                
EPIX shall deliver the MR Contrast Agent Product referenced in paragraph
3.3 of this Agreement to a place in North America as designated by Prince within
ninety (90) days of written notice.  Each dose shall be delivered to Prince
in accordance with industry “best practices” and shall be packaged in a separate
container in the same manner and material(s) (for example, without limitation,
vial or syringe) as commercially available to bona fide customers/users. 
In the event that the MR Contrast Agent Product is available in more than one
type or form of container, Prince shall have the option, at his sole discretion,
to designate the type or form of container.  To facilitate storage of such
MR Contrast Agent Product, Prince may, at his sole discretion, specify delivery
of the MR Contrast Agent Product of paragraph 3.3 in prorated amounts at monthly
or quarterly intervals.

 

3.5                                
Notwithstanding paragraph 3.3, in the event that Prince, in any calendar
year, requests delivery of fewer Doses than were indicated on the invoice
provided to Prince by EPIX for such calendar year, then the difference between
the number of Doses indicated on the invoice and the number of Doses actually
requested in that calendar year shall be added to the number of Doses available
to be requested by Prince in a subsequent year under the conditions of paragraph
3.4.  Further, in the event that the last year of the term of this
Agreement is not a full calendar year, EPIX shall deliver to Prince, under the
same terms and conditions as set forth in paragraphs 3.3 and 3.4, a pro-rated
amount of MR Contrast Agent Product plus any increase based on a carry over of a
non-requested amount from previous year(s).

 

3.6                                
Prince shall not Sell directly or indirectly (for example, through
another) the MR Contrast Agent Product provided by EPIX to Prince pursuant to
paragraphs 3.3 - 3.5 of this Agreement.  Notwithstanding the foregoing, MR
Contrast Agent Product of paragraphs 3.3 - 3.7 that is used in a CE-MRA
procedure by Prince, or his employers or employees, which is invoiced and/or
charged to a Third Party, shall not be considered as Sold to such Third Party
for the purposes of this paragraph 3.6 nor for the purposes of determining the
royalty payable under this Agreement.

 

3.7                                
Prince agrees to comply with all applicable laws and regulations
pertaining to the use, handling, storage, disposal, administration, billing,
recordkeeping and sale of the MR Contrast Agent Product provided by EPIX
hereunder.  Without limiting the generality of the foregoing, Prince will
properly disclose accurate pricing information relating to the MR Contrast Agent
Product in any costs claimed or charges made to

 

8

 

 

federal health care programs in accordance with
the provisions of 42 USC Section 1320a-7b and 42 CFR
Section 1001.952(h) if and as may be appropriate thereunder.

 

3.8                                
Notwithstanding anything contained in this Agreement to the contrary, it
shall not be a breach of this Agreement in the event that Prince, or his
employers or employees, use the MR Contrast Agent Product of paragraphs 3.3 -
3.7 for CE-MRA procedures and/or to practice the techniques covered by the
Prince Patents.

 

ARTICLE 4

PAYMENTS & ACCOUNTING

 

4.1                                
EPIX and its Affiliates shall keep complete and accurate records relating
to the Sale of the MR Contrast Agent Product during the term (as determined by
paragraph 6.1).  These records shall be retained for a period of at least
three (3) years from the date of payment, notwithstanding the expiration or
other termination of this Agreement.  Prince, through his designated
independent accounting firm, shall have the right to examine and audit, not more
than once a year unless the preceding audit revealed a discrepancy exceeding
***** percent (*****%) of the total royalties due for the period under audit,
and during normal business hours, all such records and such other records and
accounts as may contain, under recognized accounting practices, information
bearing upon the amount of royalties payable to Prince under this
Agreement.  In no event will Prince audit any given reporting period more
than once.  Prompt adjustment shall be made by EPIX to compensate for any
underpayment of royalties hereunder, together with interest thereon, calculated
in accordance with Paragraph 4.4.  Should the amount of any such
underpayment exceed ***** percent (*****%) of the total royalties due for the
period under audit, then upon request by Prince, EPIX shall pay for the cost of
the audit.  If any ***** (*****) consecutive audits reveal underpayments of
royalties in excess of ***** percent (*****%), Prince shall be entitled to
immediately terminate this Agreement on notice to EPIX at any time within ninety
(90) days after such ***** such audit.  Should such audit disclose an
overpayment of royalties hereunder, such overpayment shall be taken as a credit
against future royalties, and in the event that there are no future royalties,
Prince shall promptly issue a refund thereof.

 

4.2                                
Within forty-five (45) days after the end of each calendar quarter, or,
in the event there is/are EPIX Licensee(s), within fifteen (15) days following
the receipt of sales

 

9

 

 

data from the EPIX Licensee of the Sales of the MR
Contrast Agent Product by such EPIX Licensee for such quarter, EPIX shall pay to
Prince, by electronic transfer, the royalties payable hereunder for such
quarter.  Concurrently therewith, EPIX shall furnish to Prince: (1) in the
event there is/are EPIX Licensee(s), a true and correct copy of each EPIX
Licensee royalty report to EPIX (or its Affiliates), including, without
limitation, all sales data of the MR Contrast Agent Product Sold by such EPIX
Licensee, and (2) a statement, in suitable form, showing (i) the volume of the
MR Contrast Agent Product Sold, (ii) the Sales in U.S. Dollars of the MR
Contrast Agent Product Sold during such quarter, (iii) the amount of royalty
payable thereon, and (iv) the number of units of MR Contrast Agent Product that
are provided, free of charge, to Third Parties as samples for promotional
purposes, as described in paragraph 1.13 of this Agreement.  It is agreed
that a suitable form of the statement is attached as Exhibit B.  If no MR
Contrast Agent Product subject to royalty has been Sold, that fact shall be
shown on such statement.

 

4.3                                
All royalty and other payments to Prince hereunder, including those of
paragraphs 3.1(a) and 3.1(b), shall be made by electronic transfer, in U.S.
Dollars, directly to the following account or another designated in writing by
Prince:

 

Martin R.
Prince

*****

 

4.4                                
All royalty and other payments to Prince hereunder shall be in U.S.
Dollars. The calculation of payments which refer to Net Sales in countries other
than United States shall be based upon EURO and converted into U. S. Dollars.
Therefore, where payments are based upon Net Sales in countries other than the
United States and the member states of the European Currency Union, the amount
of such Net Sales expressed in the currency of such country shall be converted
into EURO at the exchange rate of the last business day of the applicable
calendar quarter. The applicable exchange rate shall be the EURO Foreign
Exchange Reference Rate published by the European Central Bank, Frankfurt /
Main. If no EURO Foreign Exchange Reference Rate is determined for the relevant
currency, the Parties shall agree upon another reference rate. Finally, the
payable EURO amount shall be converted into US Dollars at the EURO Foreign
Exchange Reference Rate’ published by the European Central Bank, Frankfurt /
Main, on the last business day of the applicable calendar quarter.  Late
payment of royalties hereunder shall be subject to interest, ***** (or the
maximum allowed by applicable law, if less).  The amount of interest shall
be calculated from the royalty due date to the date of electronic
transfer.  Failure to make ***** (*****) consecutive royalty payments in
a

 

10

 

 

timely fashion shall be grounds for immediate
termination.

 

4.5                                
All payments made by EPIX under this Agreement shall be without deduction
for taxes, assessments, currency exchange fees or other charges of any kind or
description.  Any payment made by EPIX to Prince under this Agreement shall
not be refunded or refundable to EPIX (or any other entity) for any reason
whatsoever, except in the case of administrative or accounting errors, such as
mistakes in typing, calculation or other clerical oversight.

 

4.6                                
Payment of royalties due under this Agreement to any person, firm or
entity, other than Prince, including without limitation, any escrow fund or
escrow agent, unless requested or permitted by Prince, or ordered by any court,
administrative agency or other government body of competent jurisdiction, shall
constitute a material breach of this Agreement.  In the event that,
pursuant to an order by a court, administrative agency or other government body
of competent jurisdiction, EPIX pays such royalties due under this Agreement to
a person, firm or entity, other than Prince, EPIX shall (a) provide notice to
Prince no less than sixty (60) days before such payment, (b) provide Prince with
any and all materials from such court, administrative agency or other government
body ordering such payment, and (c) demonstrate such court, administrative
agency or other government body ordering such payment is or has
jurisdiction.  All royalties not subject to such order, shall be paid to
Prince and payment of such royalties to any person, firm or entity, other than
Prince, shall constitute a material breach of this Agreement.

 

4.7                                
Prince agrees to provide to EPIX documentation demonstrating that Prince
pays taxes in the United States.  In the event that, after the Effective
Date of this Agreement, a country imposes any withholding tax on account of
applicable laws or regulations that require taxes to be withheld on royalty
payments made by EPIX under this Agreement, EPIX shall deduct such taxes from
the payment, provided EPIX notifies Prince, in writing, sixty (60) days before
any such deduction.  EPIX shall (a) timely pay the deducted taxes to the
competent tax authority and (b) notify Prince within thirty (30) days of the
payment made to the competent tax authority.  EPIX agrees to assist Prince
in any intervention necessary to exempt such fee and royalty payments from tax,
and EPIX agrees to make all necessary filings, and take such other actions, as
are necessary to minimize the tax rate.  EPIX shall promptly send to Prince
the official certificate of such payment to enable Prince to support a claim for
a foreign tax credit with respect to any such taxes so withheld and paid against
income taxes which may be levied by the United States government.

 

11

 

 

ARTICLE 5

EQUITY COMPONENT

 

5.1                                
In further consideration of the license, discharges, releases, promises
and covenants not to sue granted herein, EPIX agrees to issue and deliver to
Prince, on January 2, 2004, One Hundred Thirty-Two Thousand (132,000)
shares of its common stock, $0.01 par value per share, pursuant to a Stock
Purchase Agreement executed concurrently herewith.

 

ARTICLE 6

TERM AND TERMINATION

 

6.1                                
This Agreement shall commence on the Effective Date and shall continue
until the expiration of the last-to-expire patent within the Prince Patents,
unless earlier terminated as provided herein.  Upon a termination of this
Agreement, except as otherwise provided in Paragraph 6.3, all rights and
obligations of the parties shall immediately terminate.

 

6.2                                
Either party shall have the right to terminate this Agreement following
any material breach or default in performance under this Agreement by the other
Party upon sixty (60) days prior written notice by certified mail to the
breaching party specifying the nature of the breach or default.  Unless the
breaching party has either cured or taken such steps as may be reasonably
expected to cure the breach or default prior to the expiration of such sixty
(60) day period, the non-breaching party, at its sole option, may terminate this
Agreement upon written notice to the breaching party.  Termination of this
Agreement shall become effective upon receipt of such notice by the breaching
party.  Notwithstanding the foregoing, the discharges, releases, promises
and covenants not to sue granted herein are contingent upon payment by EPIX of
the royalties set forth in Articles 3 and 4, and the satisfaction of the product
delivery and equity obligations of EPIX set forth in Articles 3 and 5.  In
the event that EPIX fails to satisfy its obligation(s), or become(s) unable to
satisfy its required obligation(s), for reasons attributable to EPIX (excluding
events such as, without limitation, force majeure), Prince may, upon written
notice to EPIX, and EPIX’s failure to remedy within sixty (60) days of receiving
such notice, terminate this Agreement and revoke all discharges, releases,
promises and covenants not to sue granted herein.

 

12

 

 

6.3                                
The provisions of paragraphs 2.3, and the provisions of Articles 2, 4, 6,
8, 10, 11 and 13, with respect to any MR Contrast Agent Product Sold prior to
the date of expiration or termination, shall survive any expiration or
termination of this Agreement for any reason; and all provisions, other than
those specified immediately above, shall immediately terminate upon any
termination or expiration of this Agreement.

 

ARTICLE 7

NOTICE

 

7.1                                
All notices and other communications required or permitted hereunder
shall be in writing and shall be mailed by first class air mail (registered, if
available), postage prepaid, or otherwise delivered by hand, by messenger or by
telecommunication, addressed to the addresses set forth below or at such other
address furnished with a notice in the manner set forth herein.  Such
notices shall be deemed to have been effective when delivered or, if delivery is
not accomplished by reason of some fault of the addressee, when tendered. 
All notices shall be in English.

 

In the case of EPIX, notices and other
communications shall be addressed to:

 

EPIX Medical,
Inc.

71 Rogers
Street

Cambridge, MA
02142-1118

ATTN: President

Telephone:
617-250-6000

Facsimile:
617-250-6031

 

In the case of Prince, notices and other
communications shall be addressed to:

 

Dr. Martin R.
Prince

*****

 

In the case of Meaney, notices and other
communications shall be addressed to:

 

Dr. James F.M.
Meaney

*****

 

13

 

 

ARTICLE 8

WARRANTIES

 

8.1                                
Prince warrants and represents that:

 

(a)          he has full
authority to enter into this Agreement and to grant the discharges, releases,
promises and covenants not to sue;

 

(b)        
he owns all right title and interest in and to the Prince Patents except
as disclosed on Exhibit A; and

 

(c)          as of the
effective date of the Agreement, Exhibit A contains a complete list of all
issued patents and pending patent applications relating to MR, which Prince has
authority to license and grant the discharges, releases, promises and covenants
as provided herein.

 

ARTICLE 9

TRANSFERABILITY

 

9.1                                
In the event of any change in ownership, direction or control of EPIX,
the terms of this Agreement shall be binding upon and inure to the benefit of
the respective successor(s) and assignee(s).

 

9.2                                
In the event Prince sells, assigns, licenses or otherwise conveys the
Prince MR Intellectual Property to a Third Party, Prince agrees that, as a
pre-condition to the validity of such sale, assignment, license or conveyance,
Prince will require that: (a) such Third Party discharge, release, promise and
covenant not to sue, threaten to sue or otherwise disturb EPIX, and its
Affiliates, and any EPIX Licensee, subcontractor, supplier, distributor, vendor,
reseller, purchaser, or user of the MR Contrast Agent Product, acquired directly
or indirectly from EPIX (or its Affiliates) or an EPIX Licensee in any country
in the world, for any claim or cause of action based upon (i) the Prince MR
Intellectual Property and (ii) the manufacture, use, Sale, advertisement, offer
for Sale, importation, lease, or otherwise transfer or disposition of the MR
Contrast Agent Product, whether such claim or cause of action is presently known
or unknown, (b) EPIX will receive advance written notice of such sale,
assignment, license or conveyance, and (c) EPIX will be made an express third
party beneficiary of the Third Party’s discharge, release, promise and
covenant

 

14

 

 

not to sue described in this paragraph. 
Prince agrees that any sale, assignment, license or conveyance made in violation
of this paragraph shall be void ab
initio.

 

ARTICLE 10

INDEMNITY

 

10.1                          
EPIX shall defend, indemnify and hold Prince harmless from and against
all actions, claims, proceedings and demands (including, without limitation,
loss, death, injury, illness or damage, whether personal or property, special,
direct, indirect, or consequential, including consequential financial loss)
asserted by Third Parties that may be brought against him and that arise out of
the development, manufacture, use, sale, importation or other commercialization
efforts (including, without limitation, advertisements and marketing) relating
to the MR Contrast Agent Product by EPIX, its Affiliates or EPIX
Licensees.  If Prince, after learning of actions, such claim, proceeding
and demand from a Third Party, fails to provide prompt notice to EPIX of any
claims that are subject to this indemnity obligation after Prince learns of such
claims, then EPIX’s indemnity obligation shall be limited to the extent such
failure causes actual prejudice to the rights and defenses which otherwise would
have been available to EPIX.

 

10.2                          
Prince shall defend, indemnify and hold EPIX harmless from and against
all successful actions, claims, proceedings and demands (including, without
limitation, loss, death, injury, illness or damage, whether personal or
property, special, direct, indirect, or consequential, including consequential
financial loss) asserted by a federal, state or local governmental authority of
competent jurisdiction that may be brought against EPIX and that arise out of
the breach by Prince of his obligations under paragraph 3.7 hereof.  If
EPIX, after learning of actions, such claim, proceeding and demand from a Third
Party, fails to provide prompt notice to Prince of any claims that are subject
to this indemnity obligation after EPIX learns of such claims, then
Prince’s
indemnity obligation shall be limited to the extent such failure causes actual
prejudice to the rights and defenses which otherwise would have been available
to Prince.

 

10.3                          
If a Party (the “Indemnitee”) seeks indemnity from the other Party (the
“Indemnitor”) for a claim under paragraphs 10.1 or 10.2, the Indemnitee shall:
(i) fully and promptly notify the Indemnitor upon learning of such claim or
potential claim from a Third Party, (ii) permit the Indemnitor to assume control
of the defense of such

 

15

 

 

claim, (iii) cooperate with the Indemnitor in such
defense, (iv) not compromise or settle any such claim and (v) take all
reasonable steps to mitigate any loss or liability in respect of such claim
after learning of such claim or potential claim from a Third Party.

 

10.4                          
The obligation to defend and indemnify set forth above in paragraphs 10.1
and 10.2 shall be a continuing obligation separate and independent of other
obligations, and shall survive the expiration or termination of this
Agreement.

 

10.5                          
Except as provided in paragraphs 10.1 and 10.2, neither party shall be
liable to the other for any special, indirect, or consequential damages,
including consequential financial loss arising out of this Agreement, or its
performance.

 

10.6                          
Prince disclaims and shall have no obligation of defense, contribution,
or indemnity with respect to any actual or alleged infringement of any
intellectual property right owned by a Third Party with respect to the MR
Contrast Agent Product.  Prince shall have no liability arising out of any
such actual or alleged intellectual property infringement.

 

ARTICLE 11

CONFIDENTIALITY

 

11.1                          
The parties agree that the terms of this Agreement are confidential and shall not be
disclosed, except as required by the rules of any stock exchange or applicable
laws and regulations, or by operation of law or a court, administrative agency,
or other governmental body, or by EPIX to its Affiliates and EPIX Licensee(s),
without prior written permission from the other party.  The parties may
disclose the fact that they have entered into an agreement regarding the Prince
MR Intellectual Property, without more.  However, neither party may
represent that the Agreement is a license, but may represent that it is a
continuing discharge, release, promise and covenant not to sue EPIX, its
Affiliates, and any successor(s) to EPIX, and any EPIX Licensee, distributor,
vendor, reseller, purchaser or user of the MR Contrast Agent Product.

 

11.2                          
Notwithstanding paragraph 11.1, Prince may provide a copy of the
Agreement to: (a) Meaney, provided Meaney agrees to the confidentiality terms
set forth in the Agreement, and (b) the employer of Prince and/or Meaney, if
required to do so for purposes of determining potential conflicts of
interest.  Any copy of this Agreement

 

16

 

 

provided to such employer shall have the financial
terms of Articles 3 and 4 redacted therefrom.

 

11.3                          
Notwithstanding paragraph 11.1, EPIX may provide a copy of the Agreement
to potential successor(s) and/or assign(s) of all or a major part of the assets
of EPIX.

 

ARTICLE 12
MEET AND
CONFER REGARDING
ISSUES OR DISPUTES PERTAINING TO THIS
AGREEMENT

 

12.1                          
The parties agree to meet at least every eighteen (18) months to discuss
any issues that may arise regarding the Agreement.  Such meeting shall be
at a time mutually agreed upon by the parties, and may be via telephone or video
conference, or at a location to be mutually agreed upon by the parties.

 

12.2                          
In the event a dispute arises between the parties regarding rights or
obligations under this Agreement, the parties agree to first meet to discuss the
matter and seek resolution before undertaking litigation or legal action of any
kind.

 

ARTICLE 13

MISCELLANEOUS

 

13.1                          
This Agreement shall be construed, and the legal relations between the
parties shall be determined in accordance with the law of the State of New York,
without regard to any principles of conflict laws.

 

13.2                          
The parties agree to resolve any dispute or claim that arises out of this
Agreement in any competent federal or state court: (i) located in the state
where Prince then resides if initiated by EPIX (unless Prince resides in
Louisiana, in which event the case shall be brought in Texas) and (ii) located
in the Commonwealth of Massachusetts if initiated by Prince.  The parties
agree not to challenge or otherwise oppose the jurisdiction of the applicable
court over any such dispute or claim.

 

13.3                          
If any paragraph, provision, or clause thereof in this Agreement shall be
found or be held to be invalid or unenforceable in any jurisdiction in which
this Agreement is being performed, the remainder of this Agreement shall be
valid and enforceable

 

17

 

 

and the parties shall negotiate, in good faith, a
substitute, valid and enforceable provision which most nearly effects the
parties’ intent in entering into this Agreement.

 

13.4                          
This Agreement contains the entire and only agreements between the
parties respecting the subject matter hereof and supercedes and cancels all
previous negotiations, agreements, commitments and writings in respect
thereto.  This Agreement may not be amended, supplemented, released,
discharged, abandoned, changed or modified in any manner, orally or otherwise,
except by an instrument in writing of concurrent or subsequent date signed by a
duly authorized officer or representative of the parties.

 

13.5                          
EPIX represents that all corporate action necessary for the
authorization, execution and delivery of this Agreement by such party and the
performance of its obligations hereunder has been taken.  EPIX further
represents that the definition of “Net Sales” as set forth on Exhibit C attached
hereto is a true and complete copy of the definition of “Net
Sales” taken from
the Strategic Collaboration Agreement between EPIX and Schering AG dated
June 9, 2000.

 

13.6                          
This Agreement may be executed in two (2) or more counterparts, all of
which, taken together, shall be regarded as one and the same instrument. 
Execution may be completed through the exchange of executed facsimile copies
hereof.

 

13.7                          
The parties hereto are independent contractors.  Nothing contained
herein or done in pursuance of this Agreement shall constitute either party the
agent of the other party for any purpose or in any sense whatsoever, or
constitute the parties as partners or joint ventures.

 

13.8                          
The failure of either party to enforce at any time the provisions of this
Agreement, or the failure to require at any time performance by the other party
of any of the provisions of this Agreement, shall in no way be construed to be a
present or future waiver of such provisions, nor in any way affect the right of
either party to enforce each and every such provision thereafter.  The
express waiver by either party of any provision, condition or requirement of
this Agreement shall not constitute a waiver of any future obligation to comply
with such provision, condition or requirement.

 

[Signature page
follows.]

 

18

 

 

IN WITNESS WHEREOF, each
of the parties hereto has caused this Agreement to be executed in duplicate by
its duly authorized officer or representative.

 

 

	
      EPIX MEDICAL, INC.
	
      MARTIN R. PRINCE

	
       
	
       

	
      By:
	
      /s/ Peyton J. Marshall
	
       
	
      By:
	
      /s/ Martin R. Prince

	
       
	
       
	
       
	
       
	
       
	
       

	
      Name:
	
      Peyton J. Marshall
	
       
	
      Date:
	
      November 15, 2003
	
       

	
       
	
       
	
       
	
       

	
      Title:
	
      Chief Financial Officer
	
       
	
       

	
       
	
       
	
       

	
      Date:
	
      November 17, 2003
	
       
	
       

	
       
	
       

	
       
	
       

	
      Read and understood:
	
       

	
       
	
       

	
      James F. M. Meaney
	
       

	
       
	
       

	
      By:
	
      /s/ James F. M. Meaney
	
       
	
       

	
       
	
       
	
       
	
       

	
      Date:
	
       November 15, 2003
	
       
	
       

																	

 

19

 

 

EXHIBIT A

 

U.S. Patents:

 

*****

*****

*****

*****

*****

*****

*****

*****

*****

***** **

*****

*****

*****

*****

 

U.S. Applications:

 

*****

*****

*****

*****

*****

*****

*****

*****

 

European Patents:

 

*****

*****

*****

*****

 

European Applications:

 

*****

*****

 

Canadian Application:

 

*****

 

** Prince does not own all right, title and
interest in this patent

 

20

 

 

EXHIBIT B

 

Product: MS-325

 

Period
                  

 

Exchange Rate (end of calendar quarter) 
                             

 

	
      Country
	
       
	
      Sales
	
       
	
      Amount
	
       
	
      Royalty
	
       
	
      Royalty Due
	
       

	
       
	
       
	
      Volume (L)
	
       
	
      Sold ($US)
	
       
	
      Rate
	
       
	
      ($US)
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      United
      States:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      Europe:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      Asia:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      Australia:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      Other
      countries:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      Total royalty
      payable
Amount to be remitted:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
       

	
      Total Royalty Due:
	
       
	
       
	
       
	
       
	
       
	
       
	
       
	
      ($US)
	
       

 

21

 

 

EXHIBIT
C

 

“Net Sales“ means the invoiced sales price per
unit for each of the Licensed Products billed by a Party or its Affiliates or
any distributor or either who is not an Affiliate, or, to the extent permitted
in Section 3.1.2 hereof, by permitted sublicensees of Schering to
independent customers, less actual (a) credited allowances of such independent
customers for such Licensed Products which were spoiled, damaged, out-dated or
returned; (b) freight and insurances Costs charged to such customers, (b)
freight and insurance costs charged to such customers; (c) quantity and
promotional discounts actually allowed and taken; (d) sales, use, value added,
and other taxes or governmental charges (such as customs duties) incurred in
connection with the sale, exportation or importation of the Licensed Products in
finished packaged form; (e) charge back payments and/or rebates or other fees
provided to distributors, wholesalers, or other purchasers and managed health
care organizations or federal, state and local governments, their agencies,
purchasers and reimbursers, including reimbursements to social security
organizations; and (f) volume-related customer program costs which are required
by the customer and which are independent of marketing initiatives.  The
transfer of any Licensed Product by a Party or one of its Affiliates to another
Affiliate of such Party shall not be considered a sale; in such cases, Net Sales
shall be determined based on the invoiced sales price by the Affiliate to its
customer, less the deductions allowed under this Section.

 

The Parties recognize that (a) Scherings customers
may include persons in the chain of commerce, who enter into agreements with
Schering as to price even though title to the Licensed Product does not pass
directly from Schering to such customers, and even though payment for such
Licensed Product is not made by such customers directly to Schering; and (b) in
such cases chargebacks paid by Schering to or through a Third Party (such as a
wholesaler) can be deducted by Schering from gross revenue in order to calculate
Net Sales. Any deductions listed above which involve a payment by Schering shall
be taken as a deduction against aggregate sales for the quarter in which the
payment is made.

 

Net Sales will be accounted for in accordance with
international accounting standards consistently applied. In any instance where
the calculation of Net Sales according to international accounting standards
differs materially from GAAP such that the result of such calculation under
international accounting standards would cause EPIX to improperly account for
such revenue under GAAP, Schering will provide EPIX with any and all

 

22

 

 

information requested by EPIX regarding the
calculation of Net Sales to enable EPIX to comply with GAAP in recognizing
revenue from such Net Sales.

 

Schering agrees that, without obtaining the prior
approval of EPIX (which approval shall not be unreasonably withheld), it will
not sell a combination of products and/or services which include one or more
Licensed Products, (i) for a single price, or (ii) on other terms of purchase
not separately identifying a price per product.  Schering agrees that
records of the deductions referred to above for each Licensed Product shall be
maintained in a manner that allows audit of such deductions pursuant to
Section 7.11.

 

Schering agrees that it will not offer customers
discounted prices for any Licensed Product (i) for the purpose of inducing the
customer to purchase other products or services of Schering without obtaining
the prior approval of EPIX (such approval not to be unreasonably withheld) as to
the fair apportionment of sales value to Licensed Product and any related Costs;
or (ii) for reasons other than the good faith sale of Licensed Product at a
reasonable, mutually beneficial profit margin in view of the circumstances
applicable to the relevant market.

 

23

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